John Patrick

John Patrick asked about the slight increase in the pro forma EBITDA forecast, inquiring whether the surprise was due to volume or cost/efficiency improvements. He also sought more color on the M&A pipeline, specifically if there are many targets available or if it's scarce, following the reverse osmosis asset acquisition.

Answer

Antonella Franzen, Chief Financial Officer, attributed the pro forma EBITDA increase primarily to margin improvements and better operational performance flowing through from segment results. Lori Koch, CEO, described a robust M&A pipeline, deeper on the healthcare side due to fragmentation (CDMO, medical packaging) and less so in water due to consolidation, noting that most targets are private equity-owned, offering opportunistic acquisition potential.

John Patrick asked about the slight increase in the pro forma EBITDA forecast, seeking clarification on whether it was driven more by volume or cost/efficiency, and requested more color on the M&A pipeline.

Answer

CFO Antonella Franzen attributed the pro forma EBITDA increase primarily to margin improvement and better operational performance flowing through from segment results. CEO Lori Koch described a robust M&A pipeline, deeper in healthcare due to fragmentation, and opportunistic in water, with a focus on secular growth areas and private equity-owned targets.