Jeffrey Zekauskas • JPMorgan Chase & Co.

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Bruce Bodine, CEO, and Jenny Wang, EVP of Commercial, explained that a general 10% tariff on most phosphate origins has reduced U.S. imports by about 20% year-to-date, supporting the domestic market. Wang further clarified that the direct cost impact on Mosaic's raw materials is minimal, as its sulfur and ammonia are primarily sourced domestically or from tariff-exempt regions like Canada.

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President and CEO Bruce Bodine clarified that Mosaic's ammonia purchases have not incurred tariff impacts. He explained this is due to ammonia's exempt status in the U.S., strategic supply contracts, and the company's own tariff-free production, which limits market exposure to less than 20% of its needs.

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Luciano Pires, EVP and CFO, acknowledged that shortfalls in production volume and sales led to the cash flow deficit in 2024. He affirmed that for the upcoming year, the company expects operating cash flow to be sufficient to cover the minimum dividend and CapEx, with some excess cash anticipated.

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President and CEO Bruce Bodine stated there is no evidence of Russia or Belarus curtailing potash shipments; in fact, data shows Belarusian shipments have been consistent. Regarding China, Jenny Wang, EVP of Commercial, explained that total P2O5 production is increasing. This growth is being consumed domestically for industrial uses like LFP batteries and glyphosate, as well as for increased local fertilizer consumption, which is why exports have fallen despite higher overall production.

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EVP & CFO Greg Cameron explained that the 45Q credits will be accrued in EBITDA starting in Q3, with cash benefits realized almost immediately through reduced estimated tax payments. CEO W. Anthony Will clarified that with conventional SMR technology, only process-related CO2 (about two-thirds of the total) can be captured, and much of that is used downstream to make urea, explaining the near 1-to-1 capture ratio for available CO2.

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CEO Tony Will acknowledged the gas cost headwind but highlighted strong pricing and operational performance. He estimated CF's own CapEx would be around $750-$800 million in 2026. Regarding CO2, he stated they are in active dialogue with partner ExxonMobil on storage solutions, with plans to begin sequestration in the second half of 2025.

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EVP & COO Christopher Bohn expressed confidence in their partner Exxon's ability to secure permits for sequestration in H2 2025. Regarding geopolitics, management argued that Russian product is already flowing and curtailed European plants are unlikely to restart, making a peace resolution less impactful on supply dynamics. CEO W. Will added that resulting stock volatility creates opportunities for share repurchases.

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EVP & COO Christopher Bohn clarified the project is for CCS (Class VI permit), not EOR, and reiterated confidence in the 2025 timeline based on partner ExxonMobil's multiple pathways. CEO Tony Will explained that while ATR and SMR have comparable capital costs, ATR technology yields significantly more tonnage and captures more CO2, making its return profile more attractive.

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EVP & President - Global Retail Jeff Tarsi addressed the question, explaining that global fertilizer margins were flat year-over-year, partly due to a strategic reduction in lower-margin volumes in Brazil. He expressed satisfaction with the performance in a competitive environment and noted that crop protection margins were better than expected. He anticipates margin improvement in the second half from a better mix of proprietary nutritionals.

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Executive Jeff Tarsi attributed the Q1 crop protection performance difference to timing and mix, expecting it to normalize in Q2. Executive Christopher Reynolds stated that Canpotex has begun engagement with China and India against a backdrop of strong market fundamentals and no inventory buildup. CFO Mark Thompson clarified that the retail business is not directly impacted by nitrogen tariffs due to its robust supply chain, which sources from its upstream business and other domestic producers.

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CEO Kenneth Seitz explained the decline in locations is a strategic 'network optimization' effort, not a sign of shrinking business. The company is consolidating smaller, less productive storefronts into modern, high-throughput facilities to better serve larger, consolidated farm operations. Executive Jeff Tarsi added that for crop protection in 2025, they expect to claw back some business lost to weather last year and have penciled in historical margin levels. He noted they are in a strong inventory position after driving down stock levels year-over-year.

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CEO Kenneth Seitz provided a direct breakdown, stating that the majority of the guidance change was related to the ongoing challenges in Brazil. He specified that the impact from the wet spring in North America contributed to approximately one-third of the total adjustment.

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EVP Robert King explained that the impact from tariffs has been minimal due to a multi-year strategy of increasing multi-sourcing to improve supply chain resiliency. EVP & CFO David Johnson stated that year-end inventories are expected to be around flat to slightly down compared to the prior year.

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Judd O'Connor, EVP, Seed business unit, stated that essentially zero commercial corn hybrids sold in the U.S. are imported, as over 90% of production is local, making tariffs on them insignificant. CFO David Johnson explained the wider cash flow range is due to the high variability of Q4 collections, which depend heavily on the cash-credit mix determined late in the year. He noted Q1 cash flow was strong, providing confidence in their full-year target.

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CFO Michael Deveau explained that while major currencies like the Euro are favorable, headwinds from certain emerging market currencies create a net negative impact. CEO J. Erik Fyrwald confirmed Food Ingredients is more capital intensive but does not foresee carving it up significantly, viewing it as a standalone entity where collaboration with IFF would continue regardless of the strategic outcome.

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CEO Erik Fyrwald responded that with the Pharma divestiture complete, the focus is on executing the transformation of the Food Ingredients business to improve profitable growth. He confirmed that strategic options for the segment will be evaluated later this year and into next. CFO Michael DeVeau reiterated full-year guidance for CapEx at ~6% of sales and free cash flow of ~$500 million, which includes a ~$350 million tax impact from the divestiture.

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SVP & CFO Shane Hostetter explained that the large figures in the state's announcement, like the $1.2 billion remediation fund, are backstops for future work, much of which is already covered in ongoing operational cash flow. President & CEO Denise Dignam added that these figures represent a high-end range established to finalize the settlement. Regarding CapEx, Shane Hostetter noted the current $250 million is lower than recent history and, while not providing a specific range, suggested future spending may be slightly higher but will remain strategically focused.

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CFO Shane Hostetter attributed the high inventory to a confluence of factors, including building stock ahead of planned maintenance, TSS quota-related items, and select purchases in TT. He affirmed a focus on optimizing working capital in 2025. Regarding cash flow, he confirmed the expectation is to at least cover CapEx and dividends to provide confidence in balancing growth and shareholder returns, but did not provide a specific quantitative target.

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President, CEO & Director Dustin Semach explained the wide guidance range reflects conservatism due to low visibility and market volatility, particularly around tariffs. On the second point, he clarified there are no procurement difficulties; rather, certain specialty resins sourced from tariff-impacted regions cannot be easily substituted, requiring mitigation through limited pricing actions.

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President and CEO Dustin Semach attributed the margin improvement directly to the success of ongoing productivity and cost takeout initiatives. He highlighted that the company is on track for its $90 million cost takeout target for the year, with a significant portion of these savings impacting cost of goods sold through production optimization, better scheduling, and supplier negotiations.

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Chairman & CEO Daniel Fisher provided color on category performance, noting CSD/energy strength in Europe and energy drink strength in North America, which is offsetting softness in beer. Regarding North American profitability, he expressed optimism for the 18-month trajectory but cited near-term uncertainty due to sustained high growth rates, product mix, and tariff-related supply chain challenges.

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CFO Howard Yu explained that the CapEx ramp is tied to the timing of the new Northwest facility, with spending expected to increase in the second half of the year. CEO Daniel Fisher added that the inventory increase was a normal seasonal build after a soft end to the prior year, positioning the company for stronger expected volumes.

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CFO Howard Yu and CEO Daniel Fisher clarified that the restructuring charges included plant closures in Brazil and Washington, a closure in Europe, and severance costs related to corporate rightsizing after the aerospace business sale. Fisher attributed the cup business's struggles to two main factors: high inflation weakening consumer demand for a premium-priced sustainable product and complexities in the downstream recycling infrastructure.

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President, CEO & Director Sean Keohane and EVP & CFO Erica McLaughlin addressed the questions. Keohane attributed the 9% YoY volume decline in the Americas to tariff uncertainty and macro weakness, with South America being weaker due to prior contract losses. He confirmed the Altamira acquisition is attractive, with no change to its tariff-free status under USMCA. On corporate costs, McLaughlin cited successful cost reduction initiatives, a mix of structural and timing-based savings. Keohane explained that the multi-year volume weakness in the Americas was primarily driven by elevated tire imports, but noted that the situation is starting to stabilize.

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CEO and President Sean Keohane estimated a rough 60/40 volume split between North and South America, respectively, noting that the sharp decline in South America is expected to persist due to tire imports. He stated that pricing is largely flat under annual contracts in the West, while Asia Pacific spot market pricing is holding steady. Regarding energy centers, Keohane mentioned the impact was flat year-over-year in Q2 but anticipates a mid-single-digit million-dollar headwind in the second half due to lower energy price forecasts.

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CEO and President Sean Keohane attributed the U.S. demand weakness to accelerating Asian tire imports but noted the region remains competitive for tire manufacturing long-term. While not commenting on specific contract outcomes, he stated the company's guidance assumes margin improvement in Reinforcement Materials. For Battery Materials, 2024 volumes and profits (ex-investment) were up, with future growth expected as the market bifurcates between the West and China. Regarding European energy, he noted that while cogen can benefit from high gas prices, a downward trend in the oil forward curve may pressure profits in 2025.

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CFO Agustin Izquierdo attributed the weak first-half cash flow to a working capital build and specific tax payments, noting that Q2 was positive and that cash generation is typically stronger in the second half. He reaffirmed the full-year 80% cash conversion target. EVP Kim Foley reiterated that consecutive monthly price increases are historically uncommon without a major supply event.

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CEO Peter Vanacker stated that good progress is being made on the review, with an update expected by mid-year. He described the process as a 'portfolio upgrade' aimed at creating a more focused and profitable European business centered on circular and low-carbon solutions. He reiterated a previous comment that after all global portfolio actions are complete, the company's mid-cycle EBITDA margin is expected to improve from a historical 18% to over 21%.

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CEO Peter Vanacker and CFO Michael McMurray both expressed confidence in the company's ability to continue growing its dividend. Vanacker cited 'fantastic cash flow generation' and a focused portfolio. McMurray highlighted the 'phenomenal shape' of the balance sheet, disciplined capital allocation, and a recent reduction in planned CapEx, stating the company is confident in its ability to 'responsibly grow our dividend in the future.'

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CFO Michael McMurray indicated the North American outlook is largely unchanged, but Europe's earnings power is likely lower due to energy costs and regulations. EVP Kim Foley added that variables like China's stimulus and EU rationalization are critical. CEO Peter Vanacker stressed the company's portfolio is transforming to be more cost-advantaged, shifting from 60% to 70% advantaged assets post-restructuring.

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Chairman, President & CEO Peter Huntsman confirmed Huntsman's rates are not dissimilar to the industry's low to mid-80s average. He specified that North American plants are running in the mid-80s, while European facilities are operating at approximately 80% utilization.

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CEO Peter Huntsman explained that while Huntsman is still pushing for price increases, the primary goal is margin expansion, which can also be achieved through falling raw material costs. He noted that weak volumes have made implementing price hikes more difficult. CFO Phil Lister addressed the inventory build, attributing it to planned turnarounds and stating that levels should decrease in Q2. For the full year, Lister hopes working capital will be a use of cash, as that would imply a booming economy, but the focus remains on improving the cash conversion cycle.

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CEO Peter Huntsman explained the Performance Products decline is primarily due to lower profitability at the European maleic facility, a situation he does not expect to continue. For Polyurethanes, he projected low single-digit volume growth, around 5% YoY for Q1, driven by market recovery. CFO Phil Lister added this growth is consistent with the trend seen in 2024.

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EVP and CFO Phil Lister confirmed the $35 million dividend impacted free cash flow and stated that while RMB 300 million remains to be liquidated in 2025, it will not be recorded as a dividend. Chairman, CEO and President Peter Huntsman addressed MDI volumes, anticipating a typical seasonal decline of 10-15% globally for Q4, contingent on year-end inventory destocking.

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CFO Matt White attributed the strong European EBIT growth to a combination of favorable currency effects (FX), continued pricing opportunities, and productivity initiatives, which offset negative volumes. Regarding helium, CEO Sanjiv Lamba noted Linde's exposure is much smaller than its competitor's, with flat volumes and high single-digit price declines, which he does not see as a significant concern.

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Matt White, CFO, explained that 2024 'other income' was elevated by a large insurance claim and that 2025 should be more aligned with historical levels. He attributed the SG&A decline to currency effects (about 25%), benefits from the Q4 restructuring, and a significant year-over-year reduction in incentive compensation accruals due to performance against targets.

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CFO Matt White explained that the cash flow was impacted by the unwinding of the engineering portfolio, which created a large non-cash-generative outflow; he expects OCF and EBITDA growth to align more closely in 2025. CEO Sanjiv Lamba stated that the record $7B+ sale of gas backlog demonstrates market share gains in large projects, while in other areas, network density is a more critical metric of leadership than market share.

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CFO Matt White clarified that the environment is disinflationary, not deflationary, and that pricing remains positive year-over-year and sequentially in the base merchant and packaged gas businesses. He attributed the overall flat sequential result to timing effects of contract anniversaries and slightly declining prices for helium, which is priced on global supply/demand.

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Chairman and CEO Mark Costa attributed the AFP price increase to cost pass-through contracts in the Care Chemicals business. For Fibers, he identified a ~$20 million headwind from tariffs impacting the Naya textile business. CFO and EVP William McLain addressed cash flow, explaining that working capital is a net headwind for the full year. He views the ~$1 billion cash from operations as a solid platform to build from in 2026, with potential for higher cash earnings and further working capital optimization.

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EVP and CFO William McLain responded that the company has more direct control over cash flow levers like working capital, providing a narrower range of outcomes versus the accounting complexities of an earnings estimate amid high uncertainty. Board Chair and CEO Mark Costa clarified the $30 million Q2 impact is primarily from lost volume, as customers with sufficient inventory delay purchases to await a potential resolution on tariffs.

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Executive Vice President and CFO William McLain explained that the flat operating cash flow forecast is due to higher cash taxes largely offsetting expected EBITDA growth. Board Chair and CEO Mark Costa clarified that, contrary to the question's premise, the CI and specialty segments often move in opposite directions, creating a natural hedge in the portfolio where commodity strength can balance periods of margin pressure in specialties and vice versa.

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CFO Willie McLain clarified that the incremental EBIT from the methanolysis plant is neutral on a year-over-year basis in 2024. CEO Mark Costa described the pricing as a premium over existing products like Triton and PET. He noted that customers are diverse and fragmented, spanning applications from reusable water bottles and appliances to cosmetics and power tools, driven by corporate sustainability goals and the opportunity to create new, more sustainable products.

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CFO & SVP - Finance Dean Richardson estimated a quarterly depreciation increase of approximately $25 million. He advised against using the GAAP-required pro forma disclosure, as it is based on OCI's historical data and does not reflect the current business reality.

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CEO John Romano explained that while Q3 EBITDA is expected to be relatively flat, a significant lift in Q4 is anticipated from a high-margin 'other product' sales opportunity. CFO John Srivisal added that cost improvements will also contribute. Romano highlighted competitive pricing in Europe while noting volume growth opportunities in India due to favorable duties.

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CFO John Srivisal clarified that the primary Q1 working capital use will be accounts receivable due to higher sales, and inventory is expected to be a source of cash for the full year. CEO John Romano described a mixed pricing environment, with some ongoing competitive pressure but also upward price traction in Brazil and parts of Europe due to duties. He reiterated an expected 1-2% overall price decline in Q1 before a recovery in the second half.

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CEO John Romano stated European prices were relatively flat from Q2 to Q3 despite some mix shifts and competitive activity. He specified that China exports about 100,000 tons annually to Brazil's 180,000-ton market. Zircon price pressure stems from a mix shift to lower grades, weaker demand in China, and resulting competitive activity. He estimated the global TiO2 market is 'slightly up to flattish' for the year.

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CEO Eduardo Menezes confirmed the company is still targeting a 10% loss rate for ammonia dissociation, noting it's a balance of capital and efficiency, with project timing in Europe dependent on final regulations. CFO Melissa Schaeffer addressed the helium impact, stating it created a 55-60 cent EPS headwind for the full year, equivalent to a 4-5% impact, and that teams are actively managing pricing and volume.

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CEO Eduardo Menezes explained that the remaining hydrogen production from the Louisiana project is equivalent to one standard SMR, a volume the company can readily absorb into its extensive Gulf Coast pipeline system. Executive Melissa Schaeffer clarified that the $100 million in savings is a direct P&L impact, with an additional ~$40 million in savings from capitalized engineering resources that will reduce future capital costs rather than appearing on the income statement.

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Chief Financial Officer Melissa Schaeffer quantified the nonrecurring helium sale's benefit as a $0.10 contribution to total company EPS for the quarter. She described the current helium market as "long," particularly in Asia due to new Russian supply, and noted the company is managing its network to ensure reliable supply.

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Chairman, President and CEO Seifi Ghasemi responded that the company listens to all investors and that their feedback is consistent: focus on the core business and invest responsibly in clean hydrogen, which he affirmed the company is doing. He confirmed that Air Products is working to have the NEOM facility fully loaded with customer contracts in 2027, ahead of the 2030 start for the TotalEnergies agreement.

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President & CEO Adam Greenlee stated that speculating on 2026 would be premature as the bankruptcy process is ongoing, but the current base case assumes the second-half 2025 impact continues. He and SVP & CFO Kim Ulmer confirmed the $20 million free cash flow reduction is directly attributed to the two discrete EBIT items, with foreign currency impacts netting out to zero.

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CEO Adam Greenlee explained that while the company works to minimize resin price pass-through lags, a slight lag does exist in the DSC segment, meaning falling propylene prices would be a small benefit. He stated that the Weener business performed very well on a pro forma basis, growing both volume and profit versus the prior year and coming in slightly ahead of Silgan's internal expectations.

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CEO Adam Greenlee explained the restructuring charge was part of the company's multiyear $50 million cost-savings program and related to the closure of two plants. He and EVP Bob Lewis confirmed that Weener's Q4 performance was slightly ahead of their acquisition model on volume and profit, with free cash flow slightly lower due to immediate growth investments.

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President and CEO Adam Greenlee stated that while he could not disclose specific details, the contract renewal is a long-term (7-10 year) exclusive supply relationship with economics very similar to the prior agreement, primarily focused on supporting the customer's growth in pet food. SVP and CFO Kimberly Ulmer confirmed that without the reserve reversal, the tax rate would have been in the normal 25% range.

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CFO Vince Morales confirmed that PPG expects cash from operations to grow year-over-year. CEO Timothy Knavish addressed the profit question by explaining that the company made a "conscious decision" to increase growth-focused OpEx in the Performance Coatings segment to invest in its future, which tempered short-term profit drop-through but is intended to sustain long-term momentum.

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CFO Vince Morales confirmed that cash from operations is tracking ahead of the prior year and is expected to show year-over-year growth for the full year. Chairman & CEO Timothy Knavish addressed the margin question by explaining that the company made a 'conscious decision' to increase growth-focused OpEx investments in Aerospace, Protective & Marine, and Refinish to sustain their strong momentum, which tempered the immediate margin drop-through.

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CEO Timothy Knavish stated that a strong majority of the business is Protective. He noted that while PPG participates in and has seen strength in China shipbuilding, the company's biggest strength in Marine has been in aftermarket dry docks. CFO Vince Morales added that PPG also has a strong presence in Korea, providing a hedge if shipbuilding activity shifts from China.

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Chairman and CEO Timothy Knavish estimated cash proceeds at approximately $450 million. He explained that auto OEM price declines are tied to index contracts with 6-12 month lags and will flatten as they lap prior raw material cost changes. SVP and CFO Vince Morales added that Performance Coatings' volume growth for the quarter would have been almost identical without the divested business.

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Christophe Beck, Chairman & CEO, stated that improving pricing in Water is not a challenge, as the division is historically strong in value pricing. He clarified the segment's overall growth was muted by cyclical weakness in Paper and Basic Industries, which constitute only 15% of the division. The remaining 85%, including high-growth areas like high-tech, is performing very well.

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Christophe Beck, Chairman and CEO, attributed the Water OI decline to a difficult year-over-year comparison in Europe, which had a 200% OI increase in the prior year. Regarding costs, he corrected the premise, stating that Ecolab's overall basket of 10,000 raw materials is up, not down. He explained that while procurement efficiencies provided a net benefit previously, delivered product cost is now trending towards a low-to-mid-single-digit increase, which is part of the value-based discussion with customers.

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Christophe Beck, Chairman and CEO, addressed the questions by stating that while segment-specific volumes are not disclosed, both Industrial and Institutional performance was good. He clarified the 20% OI margin target for 2027 does *not* include the future benefit from lower amortization, which will be additive. He described the Pest Elimination issue as unfortunate, insurance-cost-related accidents involving employees.

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CEO Christophe Beck clarified that Q3 volume growth was just over 3% for Institutional & Specialty and just over 1% for Industrial. Regarding the margin target, he stated that the company can reach 20% OI margin in the next three years even with its current 4-5% growth trajectory, driven by the powerful 12-15% annual EPS growth model which includes pricing, productivity, and initiatives like One Ecolab.

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President and CEO Ken Lane distinguished between a general import tariff, which is typically passed on to the domestic market price, and a targeted retaliatory tariff against the U.S., which would be more disruptive. CFO Todd Slater clarified the cash tax outlook, stating Olin expects to pay approximately $175 million for the full year 2025, with about $30 million remaining to be paid in the second half of the year.

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CFO Todd Slater, on behalf of the team, declined to comment on specific M&A but reiterated that Olin's investment focus is on water treatment and PVC. He noted a positive future development in Europe is a new cost structure agreement with Dow that will benefit the Epoxy business starting in Q1. Regarding wind, he confirmed it's an important and growing business for Olin, with low double-digit year-over-year growth expected, fitting well with the strategy to expand in formulated solutions.

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CEO Kenneth Lane outlined his forward-looking strategy, focusing on optimizing Olin's core businesses to achieve over $250 million in cost reductions by streamlining the asset footprint. He affirmed the continuation of a value-first commercial approach and disciplined operating rates, highlighting the company's 'coiled spring' potential for a market recovery and growth options in PVC, bleach, and Winchester.

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President and CEO Kenneth Lane declined to comment on specific M&A activities but reiterated that the focus is on small, accretive bolt-on acquisitions like White Flyer. For Q3 pricing, Lane stated the slight decline in the PCI index was due to mix effects from Hurricane Beryl, with caustic pricing firming and chlorine stable. He clarified that the Winchester weakness was volume-related, not price-related, and a price increase is planned for January.

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CEO & President Scott A. Richardson stated that tariffs are not impacting the China tow business as it's handled through a joint venture. He confirmed that VAM and acetic acid operations in China are still above breakeven, noting a strategic pivot towards downstream products like emulsions. Richardson also mentioned that some U.S. material, either directly or through swaps, is sold into certain regions in Asia.

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CEO Scott Richardson explained that Celanese is relatively agnostic to oil prices due to its flexible operating model, where feedstock benefits are offset by other factors like lower dividends. He noted the primary concern tied to lower oil prices is potentially weaker demand. Regarding volumes, Richardson reported a strong March and April in Engineered Materials but a less-than-normal seasonal pickup in acetyls, with the notable exception of acetate tow, which saw a significant rebound.

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CEO Scott Richardson stated he has known Scott Sutton for a long time and is thrilled he joined the Board, citing his track record in accelerating cash generation and deleveraging. Regarding the M&M acquisition, Richardson confirmed that EBITDA has increased since the transaction, as synergies have outweighed margin degradation. He acknowledged margin compression in some product lines but noted it's a critical focus area to reverse this trend in the second half of the year.

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CEO Lori Ryerkerk asserted that long-term business expectations remain strong and the dividend cut was a prudent, cost-effective measure to accelerate deleveraging. CFO Chuck Kyrish projected that 2025 cash costs for restructuring and new cost actions would be similar to 2024 levels.

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Chairman & CEO Frank Sullivan estimated that revenue growth would be about half from acquisitions and half organic, suggesting EBIT could follow a similar split. He explained that lower COGS growth was driven by improved conversion costs from MAP initiatives and a favorable product mix. He gave an example of how a shift between material sales and contracting services in the roofing business can significantly impact gross margin.

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Chairman and CEO Frank Sullivan explained that fiscal 2024's winter was unusually mild, making the more normal winter of fiscal 2025 a difficult comparison. He stated that while tariffs on items like fasteners from China are an issue of price and negotiation, not yet shortages, U.S. steel manufacturers have been 'predatory' in raising prices ahead of tariffs, causing inflation.

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CEO Frank Sullivan attributed the lower gross margin principally to an unfavorable business mix, specifically the growth of the lower-gross-margin services business within the Construction Products Group. He clarified that while MAP focuses on operational efficiency, SG&A is managed separately with a strategic focus on investing for growth where appropriate.

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CEO Jim Fitterling stated that a decision on the Alberta project will be made later in the year, with affordability and a return to core earnings growth being key prerequisites. CFO Jeff Tate addressed working capital, explaining that the first-half use was due to heavy maintenance and new project startups, and he expects the working capital position to improve in the second half of the year.

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Chair and CEO James Fitterling stated he does not expect to take a charge related to the Linde contract for the project delay. CFO Jeff Tate explained that Q1 corporate expense was unusually low due to non-recurring credits and the full-year guide is more accurate. He also noted that Q2 cash from operations would see similar working capital use as Q1 due to turnarounds.

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CEO James Fitterling addressed the capacity question by highlighting that the new Alberta facility will produce differentiated Zero Scope 1 and 2 emissions products, for which there is customer demand. He conceded that industry-wide capacity reductions in high-cost Europe are likely. CFO Jeff Tate explained the cash flow variance was partly due to an intentional inventory build in Q4 to prepare for heavy Q1 turnaround activity.

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James Fitterling, Chair and CEO, confirmed that the new polyethylene capacity is on track for 2025. Regarding the Fort Saskatchewan project, he stated that advantaged ethane costs will make its ethylene cost among the best in the world. While the hydrogen production process has higher costs, these are offset by CO2 sequestration benefits and the premium for selling zero-emission products, resulting in expected returns equal to or higher than Dow's best U.S. asset.

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Chair, President & CEO Heidi Petz attributed the opportunity to Sherwin-Williams' stable, differentiated strategy amidst significant competitive turbulence. SVP of Investor Relations Jim Jaye explained the store count reduction was a strategic shift from company-owned stores to dealers in Brazil, and the price decline was due to unfavorable price/mix shifts, particularly in Latin America.

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CEO Heidi Petz attributed the opportunity to Sherwin-Williams' differentiated and stable strategy amidst competitive turbulence. SVP of Investor Relations James Jaye explained the Consumer Brands store count reduction was due to a strategic shift from company-owned stores to dealers in Brazil, and the price decline was a result of unfavorable geographic and product mix.

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Executive Heidi Petz addressed the builder perspective, noting their primary tariff concerns are steel and aluminum for items like HVAC and garage doors. Executive Allen Mistysyn declined to give a directional comment on April sales but reiterated that demand drivers like household formation persist despite high mortgage rates. He emphasized that 'life goes on,' supporting underlying housing needs.

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SVP & CFO Allen Mistysyn stated that Q1 weather impacts are expected and within guidance. Regarding Consumer Brands, he explained that the large margin gains in the first three quarters were due to fixed cost absorption adjustments that were annualized in Q4. The smaller Q4 margin increase was driven by good cost control on lower sales volumes.

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Executive Allen Mistysyn explained the SG&A timing reflected a second-half view and that Consumer Brands' margin benefited from improved fixed cost absorption and operational efficiencies in the Global Supply Chain unit. Executive Heidi Petz added that the Q3 SG&A spend was an opportunistic acceleration of investments, enabled by stronger-than-expected gross margins.

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President & CEO Timothy Donahue clarified that when viewed in context with receivables and inventory, trade working capital was roughly flat, with the increase largely related to aluminum inflation. Regarding restructuring, SVP & CFO Kevin Clothier noted the cash portion of the H1 charge was about $10-15 million and is baked into projections. Donahue added that the company has no knowledge of any further considerable restructuring needs at this time.

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CEO Timothy Donahue advised that beverage can customers would not build inventory due to their optimized just-in-time systems. On margins, he noted the food can business benefited from the absence of a metal repricing headwind that existed last year. For beverage cans, he expressed hope the margins are sustainable, pointing out that they expanded despite higher aluminum costs, driven by high utilization and strong operational performance. He highlighted the significant year-over-year margin improvement in the Americas Beverage segment.

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President and CEO Timothy Donahue suggested taking the detailed margin question offline, but noted that Q3 margins were better than 9-month margins, indicating improvement with expanding volume. Regarding beverage can volumes, he confirmed that absolute volumes were higher in Q3 than in Q2, which is typical seasonality. He also pointed out that the Q3 2024 North American growth of 5% was against a very strong comparison of 12-13% growth in Q3 2023.

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CFO Carl Anderson confirmed a sequential EBITDA increase is guided for Q2, but noted it is tempered by tariff cost headwinds that will be more fully mitigated in the second half. CEO Chrishan Anthon Villavarayan added that the Mobility segment continues to perform well, with outperformance in China and Brazil driving an expected full-year margin north of 16%, despite broader market challenges.

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CFO Carl Anderson confirmed that improving working capital is key, with a normalization of the abnormally low Days Payables Outstanding (DPO) from Q4 being a significant piece of the story. CEO Chris Villavarayan estimated that such tariffs would impact about 5-6% of Axalta's revenue and add roughly $3,000 to the cost of a car, but noted that OEMs have been planning mitigation strategies for months.

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M. Bender, EVP and CFO, stated that industry PVC operating rates were in the 80s as inventory built for the construction season. He clarified that while PVC prices rose in February and March, price resets at the end of the prior year impacted the quarterly average. He also noted that chlorine demand remained strong, and caustic soda saw some price increases in Q1.

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EVP and CFO Steve Bender provided the 2024 vs. 2023 figures: PEM volume was up 6% while price was down 12%; HIP volume was up 8% while price was down 6%. Bender specified that within PEM, the primary pressure on EBIT came from the chlorovinyls chain, particularly on the vinyls side, rather than the chlor-alkali (ECU) side.

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CFO John Willis projected full-year free cash flow in the $150 million to $200 million range, noting uncertainty from tariffs and working capital needs. General Manager Alessandra Faccin confirmed a price increase for Intermediates was announced in March, but the environment remains challenging. Willis and CEO Guillermo Novo explained that inventory is intentionally elevated to manage tariff risks and support manufacturing optimizations, with levels expected to normalize in coming quarters.

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CEO Guillermo Novo clarified the total turnaround impact was about $25 million, with a $5 million overrun primarily affecting the VP&D plants, which impacts Life Sciences and Personal Care. He noted Intermediates pricing is stable but faces volume headwinds. He also explained the $30 million restructuring program is designed to offset lost gross profit from divestitures, not just stranded costs, and they are on track to achieve it.

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President and CEO Celeste Mastin explained that solar revenue will remain weak for the year due to a strategic repositioning toward higher-margin applications, which will improve profitability. EVP and CFO John Corkrean estimated the solar EBITDA drag from a ~$20M revenue decline. Mastin noted about 20% of the raw material portfolio is inflationary, largely impacting HHC. Corkrean added that costs are flat sequentially and estimated full-year nonrecurring charges at $40M-$50M. Mastin described the U.S. economy as slowing, while Europe's HHC segment was strong due to share gains and easier comps, offsetting weakness in construction.

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CEO Celeste Mastin indicated that more M&A is likely in 2025, consistent with their typical $250-$300 million annual allocation. She identified waxes, oils, and hydrogenated hydrocarbon resins as key inflationary raw materials. The packaging weakness was most notable in 'case and carton seal' applications. CFO John Corkrean confirmed the deferred tax outflow was a one-time item related to a China dividend. The question on European warehouses was deferred.

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CEO Celeste Mastin and CFO John Corkrean explained the guidance reduction was entirely due to lower-than-expected volume, which slowed down in the second half of Q3. Corkrean detailed that acquisitions contributed about $7 million to EBITDA in Q3. He clarified that the sequential gross margin change was due to the price/raw material dynamic shifting from a tailwind to a headwind, as previously forecast. He expects Q4 gross margin to tick up slightly on higher seasonal volume. For solar, he noted volumes were flat in Q1, down mid-teens in Q2, and down over 35% in Q3.

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CFO Neal Sheorey clarified that the EBITDA ranges are derived by applying the observed market prices to Albemarle's specific book of business. He acknowledged the spodumene price percentage can fluctuate but 10% was a recent observation. He also confirmed that 'full Talison sales volumes' assumes all partners take their full allocation, which is the current situation.

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CEO Corning Painter asserted that higher tariffs would be a net positive for Orion because its local-for-local production model would benefit from reduced tire imports. He characterized the Thai duties as an incremental step toward normalizing import levels. To explain pricing leverage despite weak demand, Mr. Painter cited global factors, such as customer dissatisfaction with imported carbon black in Europe, supply chain reliability concerns, and a successful change in Orion's commercial negotiation strategy for 2025.

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