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CEO Anthony Hatoum confirmed that increasing private label penetration is a main driver of same-store sales growth and expects this trend to continue. CFO Eduardo Pizzuto clarified that the rise in lease expenses is driven by store growth, new in-store equipment, and equipping the four new distribution centers with cold and frozen rooms, confirming there are no upfront payments affecting the run rate.

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Executive Kamal Hatoum stated that gross margin dynamics are unchanged, driven by scaling benefits with normal quarterly volatility, and the company is not facing pricing pressure. He explained that personnel expense increases from wage inflation and pre-training for new stores are largely diluted by strong sales growth.

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Executive Kamal Hatoum responded that sustained same-store sales growth is driven by continuous improvements in the value proposition of their product portfolio. He confirmed that growth comes from both new clients (increased ticket count) and larger basket sizes, even with deflationary pressures from private labels. This implies a significant increase in the number of units sold per transaction. While not providing a specific forecast, he expressed confidence that as long as the value proposition improves, strong growth metrics will be maintained.

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Executive Kamal Hatoum explained that same-store sales growth was primarily driven by a strong increase in the number of transactions, followed by a healthy increase in average ticket size, despite flat year-over-year item prices. On gross margin, he reiterated that the company does not target a specific percentage but optimizes SKU-by-SKU for volume and peso profit, advising analysts to model a flat margin over time. He also noted that store openings fluctuate monthly and the focus remains on annual guidance.

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CFO Shashank Patel confirmed the $6 million benefit was a timing issue from selling lower-cost inventory. CEO Robert Pagano stated the data center business was about 2% of sales last year and is now growing at a high double-digit rate. For Nexa, he described a flexible model combining an upfront installation cost with an annual recurring fee for monitoring, upgrades, and support.

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CFO Shashank Patel attributed the conservative second-half guide to caution around potential demand destruction from tariff-related price increases. CEO Robert Pagano added concerns that strong Q2 demand could be a pull-forward from the second half. Regarding long-term margins, Pagano stated the company's goal remains to drive 30 to 50 basis points of margin expansion annually through productivity, new products, and pricing to value.

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Founder, Chairman & CEO Richard Cohen explained the density increase comes from a cantilever design that eliminates support posts and a tine system that allows for more shelves per level. Regarding cost, he stated Symbotic is value-pricing the new system, expecting to save customers money on space while achieving higher margins for itself. CFO Carol Hibbard added that stock-based compensation will likely continue at the current trend for the next few quarters due to talent acquisition and the ASR acquisition.

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CFO Carol Hibbard affirmed they are certain that contracts allow for tariff costs to be passed through, noting their primary exposure is from Europe. CEO Rick Cohen explained that the ASR technology is like a new app on the same iOS, using the same basic software platform. He highlighted the potential to combine all three modules in one building or use ASR as a modified e-commerce solution, which is generating significant customer interest.

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CFO Carol Hibbard reported that deficiency remediation controls have been deployed with encouraging test results, though full remediation will take several quarters. CEO Rick Cohen addressed M&A, stating that recent acquisitions have been small and strategic, involving known teams, and that the integration of the larger Walmart robotics business is expected to be smooth due to its proximity and talent.

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President & COO Paul McAndrew responded that the company worked closely with customers to adjust pricing after China-related tariffs were reduced and has not seen a meaningful change in demand or order patterns. On infrastructure funding, CEO Marietta Zakas reiterated that no significant benefits are expected in fiscal 2025, noting that fund allocation has been slow. However, she stressed the bill's importance in raising awareness for needed investments, which remain primarily funded at the local level. McAndrew added that future capital spending in 2026-2027 will target efficiency and capacity at their mature iron foundries.

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CEO Marietta Zakas explained that the guidance includes benefits from both volume and price, with price realization expected in the low to mid-single-digit range. She anticipates volume growth in iron gate valves and hydrants but noted headwinds from lapping a strong prior year. Zakas also clarified that the guidance does not assume a meaningful impact from the infrastructure bill. President and COO Paul McAndrew added that while they see increasing activity related to the bill, it is not yet material.

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CEO Marietta Zakas explained the guidance reflects carryover pricing, some volume growth, and minimal assumed benefit from the infrastructure bill, balanced by external uncertainty and a modest headwind from normalizing service brass backlogs. CFO and CLO Steven Heinrichs detailed that the noncash goodwill impairment and warranty charge were both related to technology products, specifically meters, within the Water Management Solutions segment. Zakas added the go-forward plan involves a more targeted commercial approach for the metering business.

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CEO Bill Burns explained that Elo expands Zebra's addressable market by $8 billion into customer-facing and self-service solutions like point-of-sale and kiosks. He highlighted that Zebra's global reach and service capabilities will scale Elo's business, noting customer overlap in retail but new strengths in quick-serve restaurants. Burns described the full-year guidance as 'balanced,' reflecting resilient demand and a strong pipeline while acknowledging customer caution amid trade policy uncertainty.

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CFO Nathan Winters said the team is actively working with semiconductor suppliers to assess mitigation options ahead of any policy changes. CEO William Burns and CFO Nathan Winters both clarified that the rapid implementation of tariffs limited significant pre-buying and that underlying demand trends have been in line with expectations, suggesting no major demand distortion.

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CEO William Burns explained the conservative guide reflects current market uncertainty impacting visibility, which is causing customers to finalize budgets slowly. CFO Nathan Winters stated that 2025 free cash flow will see less benefit from working capital improvements than 2024, which had a significant inventory reduction, but still implies over 90% conversion.

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CFO Nathan Winters reported that nearly 50% of finished goods production is now outside China, though the component supply chain remains largely there. Regarding seasonality, he affirmed that a historical pattern is expected to return. He noted Q4 includes several large deployments, so a sequential step-down into Q1 would align with typical business cycles.

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CEO Matt Moschner described the logistics growth as balanced and multi-pronged, including new facilities but also significant traction from scaling 2D and 3D vision for process improvements in existing fulfillment networks. On OneVision, Moschner stated that while they are not ready to detail a new pricing model, it is currently sold as a complementary part of a technology bundle to solve more advanced vision applications, leveraging the existing go-to-market approach.

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CFO Dennis Fehr attributed the OpEx decline to disciplined cost management and a favorable FX impact, emphasizing a continued focus on leveraging the expense base for profitable growth. CEO Robert Willett addressed the vision question, stating that while embedded vision remains preferred by customers for its performance and security, Cognex is actively investing in cloud connectivity to 'supercharge' its embedded systems, leveraging its strengths in both areas.

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CEO Olumide Soroye argued that hospitals will increasingly focus on profitable, complex procedures requiring advanced reusable devices, which benefits Fortive. Regarding M&A, he stated that all potential deals, including software, are subject to the same rigorous financial and strategic criteria, with a focus on proprietary deals at accretive prices.

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CEO Olumide Soroye argued against a shift to single-use, explaining that hospitals will likely focus on high-profitability procedures that require advanced, reusable instruments needing sophisticated sterilization. Regarding M&A, he stated that all potential acquisitions, including software, are subject to the same rigorous strategic and financial criteria. He emphasized a focus on proprietary deal cultivation to acquire assets at prices compatible with Fortive's valuation and return objectives.

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President and CEO James Lico detailed that Tektronix has a flexible global manufacturing footprint, allowing them to mitigate tariffs by shifting production. For AHS, Lico clarified that the 2.5% growth was in line with expectations, as it translates to the mid-single-digit range when adjusting for the impact of fewer business days in the quarter.

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President and CEO James Lico stated that while the EA business adds some EV exposure, he believes Tektronix's overall exposure is relatively in line with peers based on multi-year performance comparisons. Regarding Q4 PT margins, Lico and Executive Elena Rosman attributed the contraction to lower volumes in higher-margin businesses, including Tektronix, and some unfavorable business mix.

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President and CEO James Lico stated that a significant recovery in the EV-related EA business is not expected until late 2025 or 2026. He emphasized Fluke's durability, with its industrial business still growing, and projected that Tektronix's positive order inflection could begin to benefit revenue in late Q1 or early Q2 2025.

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President & CEO R. Scott Rowe described a strategy of open and frequent communication, reassuring employees that core operations were unaffected. SVP & CFO Amy Schwetz added that the M&A approach is a consistent extension of the company's 3D strategy. Regarding Mogus, Rowe expressed confidence in reaching the $200M revenue target as delayed projects materialize. Schwetz stated there are no structural barriers to FCD margin recovery and that past restructuring has positioned the segment for improvement.

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President and CEO Robert Rowe addressed the 3D strategy, noting that while the mix is evolving, demand for carbon capture and LNG remains robust, offsetting shifts in other areas. CFO Amy Schwetz explained the guidance range reflects different scenarios: the low end assumes some demand destruction and tariff timing mismatch, while the high end assumes continued strong execution and bookings. CEO Rowe reiterated confidence in delivering the guided 18-25% EPS growth for the year.

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CFO Amy Schwetz clarified that corporate costs are expected to be neutral in 2025 compared to 2024, with recent elevated levels driven by higher performance-based incentive compensation due to strong company results. President and CEO Scott Rowe reported that the LNG pump commercialization is progressing well, with a market launch anticipated in the second half of 2025. He also noted that aftermarket revenue related to this new technology is already being generated.

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CEO Scott Rowe stated that while Flowserve is partnered with SMR consortiums, he does not foresee SMRs becoming a meaningful part of the portfolio for the next decade. CFO Amy Schwetz noted that the company periodically reviews offloading its asbestos liability but currently believes it is well-managed internally.

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CEO Stephan von Schuckmann stated that while portfolio cleansing is a continuous process, much of the significant work was done last year. He highlighted a return to outgrowth in China, with 90% of new business wins coming from top local OEMs and leading NEV players, which should materialize into revenue later in the year.

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Chief Financial Officer Brian Roberts confirmed the auto production cuts are a headwind but noted the Sensing Solutions business has a solid foundation. He attributed the margin confidence primarily to operational productivity, procurement efficiencies, and benefits from restructuring actions taken in the second half of 2024.

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Chief Financial Officer Brian Roberts attributed the 2024 outperformance to the strength of Sensata's ICE portfolio, which provides confidence regardless of the ICE/EV penetration mix. He noted that while China remains a challenge, more normal outgrowth should return in H2 2025. Regarding European EVs, Roberts stated that Sensata is designed into next-generation platforms, but the launches are more likely a 2026-2027 event, which will then improve content per vehicle.

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Executive Martha Sullivan explained that Sensata is strategically focusing on Chinese local OEMs that have global aspirations, where the company's innovation and global footprint are valued. She noted that this approach leverages existing technologies rather than requiring unique investments. Regarding her return, she highlighted a renewed clarity on Sensata's strengths and a sense of urgency to drive performance.

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President & CEO R. Adam Norwitt clarified that the AI business is broad and not overly concentrated, with exposure across the entire ecosystem from web-scale providers to chip companies. He noted that while long-term growth is expected, quarter-to-quarter performance may see some lumpiness and not every quarter will show sequential growth.

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CEO Adam Norwitt acknowledged the difficulty of having perfect visibility but reiterated that the company can only judge by the data it sees. He pointed to the fact that IT Datacom customers are asking for more products than can be supplied, which contradicts the idea of a pull-in. He also noted that sales to distribution, a key channel to watch, only saw modest low-single-digit sequential growth, showing no anomaly.

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CEO R. Norwitt described the core entrepreneurial culture of agility. In down markets, teams are encouraged to 'plant seeds' and find new applications for their technologies. In booming markets, teams work exceptionally hard but always manage with 'one foot on the gas and one on the brake,' staying prepared for cycles, a discipline proven by the company's historical resilience.

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CEO Terrence Curtin explained that the tariff cost impact was lower than expected, at about 1.5% of sales with minimal earnings impact, due to policy changes and mitigation efforts. He noted that pricing actions were mainly in the Industrial segment to offset this. Going forward, he stated that overall pricing trends, excluding surcharges, will be primarily driven by material costs, which the company is watching closely.

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CEO Terrence Curtin acknowledged that broad uncertainty and supply chain concerns can be a distraction for customers. However, he noted that TE actually saw automation orders pick up in the U.S. during the quarter. The company's cautious guidance reflects a desire to see this momentum sustain before changing its outlook, given the macro environment.

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CEO Terrence Curtin confirmed that Industrial Equipment is currently stabilizing, and while a future ramp is hoped for, current models should reflect stability. For the Medical business, he stated the decline was a one-time inventory correction by customers and that sequential improvement is expected, supported by an already improved book-to-bill ratio of well above 1.

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CEO Terrence Curtin responded that all known factors, including potential labor disruptions, are incorporated into the company's guidance. He reiterated the expectation for global auto production to be down in Q1 at a similar rate as Q4, with weakness in the West, particularly Europe, being a significant contributor to that decline, while Asia is expected to be the driver of growth.

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President and CEO John L. Stauch acknowledged the risk of foreign competition but noted it is not yet a significant factor, particularly at the high end where Pentair's automated product ecosystem creates customer stickiness. He clarified that the KBI acquisition was a defensive move for the Everpure brand made *before* acquiring Manitowoc, and the combined scale of Everpure and Manitowoc now makes a captive service arm less critical.

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CEO John Stauch confirmed the price actions are general increases, not temporary surcharges, and are not designed to be reversed. He and CFO Bob Fishman highlighted the new phased approach allows for more agility. Regarding tariff exclusions, Stauch believes the impact of them expiring is not meaningful but acknowledged the overall situation remains highly fluid and has already exceeded their 'worst-case' planning scenarios.

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President and CEO John Stauch reported that while revenue is still small, the uptake of PFAS products has been strong, particularly in commercial and hospitality. Regarding industrial projects, he stated that if delays extend for several more quarters, they would be considered out of the funnel, but the current issue is more a moderation of growth than a major headwind.

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President and CEO Neil Hunn explained the key learning from ProCare was to act faster on challenges and not wait. EVP & CFO Jason Conley added that diligence and integration plans are now more rigorous. For Subsplash, Hunn detailed a favorable market with a large, underpenetrated TAM, a significant digitization wave, and Subsplash's position as a leading technology platform with a strong value proposition that drives increased donations for its customers.

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EVP and CFO Jason Conley explained that the guidance was raised by utilizing some margin and interest contingency from the prior forecast, along with the Q1 beat. President and CEO Neil Hunn clarified that the Deltek headwind is broader than just DOGE, encompassing general government budget uncertainty, which they view as a short-term issue, not a structural one.

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President and CEO Neil Hunn explained that while it's hard to mathematically quantify AI's impact in 2024, there is a clear 'halo effect' driving increased bookings at businesses like Aderant and Deltek. Regarding Deltek, he noted it's early, but potential policy changes requiring more contractor accountability and system modernization could play to Deltek's strengths, and recent bookings have remained robust.

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President and CEO Neil Hunn explained that while order duration at Neptune is shortening from 12-18 months to 6-9 months as lead times normalize, the actual order volume on an account-by-account basis remains healthy. Regarding the election, Hunn stated that Roper's businesses are generally apolitical and not significantly impacted, noting that for Deltek, government spending always occurs, and only the nature of the spend changes with administrations.

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CEO Eric Ashleman acknowledged a push-out in the recovery for core semiconductor equipment but highlighted a positive tailwind from the MRO-facing side of the business, including contributions from Mott. CFO Abhi Khandelwal confirmed that the H2 ramp in the HST segment is now supported by the Mott backlog and other growth areas, effectively replacing the previously expected semi ramp. On branding, Mr. Ashleman described a hybrid model where they present as a unified platform (e.g., IDEX Health & Science) while retaining the valuable equity of individual product brands.

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CFO Abhishek Khandelwal confirmed the Q4 projects were specifically highlighted in the Q3 earnings call as a key driver of the sequential Q4 ramp. CEO Eric Ashleman clarified the semiconductor outlook: while the MRO business shows positive growth, the larger tool equipment business faces a customer-specific inventory adjustment in H1 that will reverse in H2. For life sciences, he projected a net positive outlook, with low-to-mid-single-digit growth in core fluidics and optical filters offsetting some softness in genomics, which is more exposed to government funding uncertainty.

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CFO Abhi Khandelwal confirmed the Q4 project shipments were specifically included in the guidance provided during the Q3 call. CEO Eric Ashleman clarified the semiconductor outlook involves a near-term dip in H1 due to a specific customer inventory adjustment, but with positive MRO trends and long-term bookings. For life sciences, he anticipates a net positive year with low-to-mid single-digit growth in core fluidics and optical filters offsetting some weakness in government-funded genomics areas.

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CEO Eric Ashleman clarified that Muon is not entirely a semiconductor business, as it also serves med-tech and other adjacencies, and is being integrated into a broader applied material science strategy with Mott. He also confirmed that the life science demand improvement was primarily in the analytical instrumentation space, where IDEX has a stronger presence compared to bioprocessing.

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CEO Eric Ashleman clarified that Muon is not solely a semiconductor business, as it also serves med-tech and other markets, and its advanced work is not always tied to current production cycles. He also specified that the life science demand growth is primarily from the analytical instrumentation space, where IDEX has a more significant presence compared to bioprocessing.

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CFO Bill Grogan clarified that the sequential margin improvement from Q4 was partly due to one-time items in the fourth quarter, such as incentive true-ups, that had suppressed the margin then. He stated that confidence in the second-half order recovery is based on visibility into the commercial funnel and the expectation that customers will work through existing channel inventory and return to more normal ordering patterns.

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Executive Chairman and President Suso Zamora indicated that Auna is assessing a capacity expansion in Peru, likely at Clinica Delgado, for a potential 2027 inauguration. For OncoMexico, he confirmed Auna is actively closing agreements with service providers in Guadalajara, Mexico City, and Tijuana to establish a national footprint, with potential for deeper integration in the future.

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CEO Morten Wierod stated that the strategy is to grow high-margin business lines faster and use M&A to expand the portfolio into more profitable areas. He cited the recent acquisitions of Födisch Group and DTS as examples of adding businesses with margins significantly higher than the current PA average. He concluded there are 'quite a few steps to take still before we hit any target or ceiling.'

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CEO Jenny Parmentier confirmed that the industrial backlog in dollar terms was steady at $4.2 billion, implying similar order intake. To differentiate delays from cancellations, she said the company analyzes the backlog weekly and monitors for signals like additional plant shutdowns and changes in customer production schedules. She noted that unlike in past cycles, they are currently seeing delays rather than cancellations.

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CEO Luca Savi stated that ITT's outperformance stems from differentiation and operational excellence, such as on-time delivery driving share gains. CFO Emmanuel Caprais added that order growth was broad-based across all end markets. Regarding M&A, Savi confirmed the pipeline is active and the company has bandwidth for more deals. Caprais explained that the free cash flow guidance was held steady due to working capital timing, specifically a slower-than-anticipated reduction in inventory.

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SVP and CFO Sameer Ralhan defended the Water Quality margin, noting the profit fall-through was near 30% and in line with their long-term algorithm, attributing any softness to growth investments. He guided long-term CapEx to 1-2% of sales. President and CEO Jennifer Honeycutt explained the TraceGains/Esko combination allows for cross-pollination between enterprise and mid-market customers, with the go-to-market approach varying by customer and region.

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