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    Ken Newman

    Vice President and Equity Research Analyst at KeyBanc Capital Markets

    Ken Newman is a Vice President and Equity Research Analyst at KeyBanc Capital Markets specializing in the industrial supply chain sector, with a focus on industrial distributors and equipment rental companies. He covers companies such as Rockwell Automation (ROK) and Applied Industrial Technologies (AIT), and has delivered a strong performance track record with an analyst success rate of 74.36% and an average return of 21.56%. Newman began his career as an investment banking analyst at PNC Capital Markets before joining KeyBanc in 2014 as a Research Associate, later rising to his current role. He holds a Bachelor of Business Administration from Ohio University and maintains FINRA Series 7, 63, 52, 79, 86, and 87 licenses.

    Ken Newman's questions to APPLIED INDUSTRIAL TECHNOLOGIES (AIT) leadership

    Ken Newman's questions to APPLIED INDUSTRIAL TECHNOLOGIES (AIT) leadership • Q4 2025

    Question

    Ken Newman of KeyBanc Capital Markets questioned the assumptions behind the low end of the organic sales guidance, sought clarity on margin trends by segment for fiscal 2026, and asked about the possibility of adjusting earnings for intangible amortization.

    Answer

    President & CEO Neil Schrimsher explained that the low end of the guidance reflects a prudent approach given macro and tariff uncertainty, with the midpoint assuming these headwinds abate in the second half. CFO David Wells clarified that Q4 AR provisioning primarily impacted the Service Center segment and expects margins to normalize. He noted Hydrodyne's mix impact on Engineered Solutions margins is improving. Regarding adjusted earnings, Wells stated a preference for maintaining consistent reporting and transparency rather than adding back intangible amortization.

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    Ken Newman's questions to Symbotic (SYM) leadership

    Ken Newman's questions to Symbotic (SYM) leadership • Q3 2025

    Question

    Ken Newman of KeyBanc Capital Markets asked for the sequential outlook for Systems gross margin from Q3 to Q4, considering the announced production schedule shifts. He also inquired about the potential to capitalize R&D expenses and the resulting impact on the structural free cash flow profile.

    Answer

    CFO Carol Hibbard stated the expectation is for Systems gross margin in Q4 to remain at a similar level to Q3, with software gross margins also holding around the 70% level. She clarified that a substantial portion of R&D is now being charged to the contracted ASR project, which contributed to the sequential reduction in reported R&D expense, and that this trend would continue.

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    Ken Newman's questions to DMC Global (BOOM) leadership

    Ken Newman's questions to DMC Global (BOOM) leadership • Q2 2025

    Question

    Inquired about Arcadia's gross margin outlook, the volume needed for margin recovery, the lag time for interest rate cuts to impact orders, and the price-cost dynamics across segments due to tariffs.

    Answer

    Arcadia's margins are highly dependent on volume due to its fixed cost structure and will remain challenged in the near term; a significant volume increase is needed for recovery. An interest rate cut could boost orders within one to two quarters. The company has successfully passed through tariff costs in Arcadia, but NobelClad faces volume challenges, and Dyna has experienced some margin compression.

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    Ken Newman's questions to DMC Global (BOOM) leadership • Q2 2025

    Question

    Ken Newman from KeyBanc Capital Markets asked about the expected gross margin performance for the Arcadia segment in Q3 following recent cost-cutting measures. He also questioned the potential lag time between an interest rate cut and a recovery in orders, and the price-cost dynamics across all business segments amid the current tariff environment.

    Answer

    CFO Eric Walter stated that Arcadia's margins are highly dependent on volume due to significant fixed costs and that performance will be 'touch and go' for the next few quarters. CEO James O'Leary estimated a lag of one to two quarters for commercial orders to recover after a rate cut, with a quicker response in residential. He detailed that Arcadia passes on tariff costs, NobelClad sees a volume impact, and DynaEnergetics has absorbed some margin pressure.

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    Ken Newman's questions to DMC Global (BOOM) leadership • Q1 2025

    Question

    Asked about the financial impact of a large completed project on the Arcadia segment's Q1 EBITDA and Q2 profitability, and inquired about supplier pricing trends and the company's own ability to implement price increases.

    Answer

    The company acknowledged the large California project's completion will impact Q2 results but did not quantify its Q1 contribution, confirming Arcadia's commercial business will remain profitable. They stated it is currently difficult to predict future pricing actions due to supply chain uncertainties.

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    Ken Newman's questions to DMC Global (BOOM) leadership • Q3 2024

    Question

    Ken Newman inquired about the demand trend at Arcadia during Q3 and into October. He also asked for clarification on the restructuring actions, including costs and payback, and questioned whether the recently added paint capacity contributed to the current overcapacity issues.

    Answer

    The executives responded that Arcadia's demand was relatively level but weak throughout Q3 and declined to comment on October trends. They clarified that current actions are about upgrading personnel rather than formal restructuring with associated cash costs. They explicitly stated that the new paint capacity did not cause the overcapacity issues; the problems stemmed from under-absorption in the high-end residential product factories.

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    Ken Newman's questions to ZEBRA TECHNOLOGIES (ZBRA) leadership

    Ken Newman's questions to ZEBRA TECHNOLOGIES (ZBRA) leadership • Q2 2025

    Question

    Ken Newman asked for the amount of pricing realized in Q2 from the annualized $40 million tariff mitigation plan and whether price-cost would normalize in the second half. He also inquired about Elo's supply chain, specifically its international manufacturing footprint and potential tariff exposure.

    Answer

    CFO Nathan Winters disclosed that a little less than $10 million in price was gained in Q2, slightly below expectations, and the goal remains to fully mitigate tariff impacts in 2026. He explained that Elo's supply chain is similar to Zebra's, using contract manufacturers in Southeast Asia, but with the key difference of an owned manufacturing facility in China for touch panels, which Zebra sees as a strategic asset to leverage.

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    Ken Newman's questions to W.W. GRAINGER (GWW) leadership

    Ken Newman's questions to W.W. GRAINGER (GWW) leadership • Q2 2025

    Question

    Ken Newman asked about the confidence that volumes won't react negatively to price increases and the drivers behind lower implied incremental margins for Endless Assortment in the back half.

    Answer

    CEO D.G. Macpherson stated that while general inflation will impact market demand, Grainger is not uniquely exposed as competitors are also raising prices. CFO Deidra Meriwether explained the lower incremental margin outlook for Endless Assortment is due to Zoro cycling tougher sales comps from a stronger back half in the prior year.

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    Ken Newman's questions to W.W. GRAINGER (GWW) leadership • Q2 2025

    Question

    Ken Newman of KeyBanc Capital Markets asked about the company's confidence that volumes won't react negatively to back-half price increases and questioned the drivers of potential deleverage in the Endless Assortment segment.

    Answer

    CEO D.G. Macpherson expressed confidence in realizing prices, stating that while inflation will likely mute overall market demand, Grainger is not uniquely exposed as competitors are also raising prices. CFO Deidra Meriwether reiterated that the moderation in Endless Assortment's growth and leverage is primarily due to Zoro cycling tougher year-over-year comparisons.

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    Ken Newman's questions to WESCO INTERNATIONAL (WCC) leadership

    Ken Newman's questions to WESCO INTERNATIONAL (WCC) leadership • Q2 2025

    Question

    Ken Newman sought clarification on pricing realization from supplier increases given WESCO's project mix, asked about the current status of price increase lead times, and inquired about the utility business's project vs. stock-and-flow mix and its expected margin cadence upon returning to growth.

    Answer

    EVP & CFO David Schulz confirmed that the realized price impact is about half of the announced supplier increases due to the project business mix and that WESCO is holding suppliers to contractual 60-90 day lead times. Chairman, President & CEO John Engel stated there was no meaningful mix shift to report in utility and reiterated that as sales recover, the segment's lean cost structure will deliver 'exceptional' operating leverage and 'handsome' margin expansion.

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    Ken Newman's questions to Distribution Solutions Group (DSGR) leadership

    Ken Newman's questions to Distribution Solutions Group (DSGR) leadership • Q2 2025

    Question

    Ken Newman's associate from KeyBanc Capital Markets asked about the impact of tariffs on pricing in the quarter and the price-cost outlook for the second half of the year. He also inquired about performance expectations for Jexpro Services in the back half, specifically whether a 20% incremental EBITDA margin remains a valid assumption.

    Answer

    EVP & CFO Ron Knutson stated that the company does not expect any margin compression from tariffs, as they manage it through proactive customer collaboration on pricing and sourcing, noting that only about 6% of product purchases come from China. Regarding Jexpro, Knutson expressed confidence in its second-half performance due to strong end-market trends and backlog visibility, though he did not quantify a specific incremental margin. Chairman & CEO J. Bryan King added that Jexpro's margins are also influenced by ongoing strategic investments in commercial capabilities and growth initiatives, as well as revenue mix, which can create noise in near-term contribution margins.

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    Ken Newman's questions to Distribution Solutions Group (DSGR) leadership • Q2 2025

    Question

    Ethan, on behalf of Ken Newman from KeyBanc Capital Markets, asked about the impact of tariffs on pricing in the quarter, whether price-cost was neutral, and the outlook for the second half. He also questioned expectations for Jexpro Services, given tougher comps, and the viability of a 20% incremental EBITDA margin.

    Answer

    EVP & CFO Ron Knutson stated that the company does not expect margin compression from tariffs due to proactive sourcing and customer management, noting that only about 6% of product purchases come from China. Regarding Jexpro, Knutson expressed confidence in its second-half performance due to strong end markets and backlog visibility. Chairman & CEO J. Bryan King added that ongoing investments in Jexpro's commercial capabilities could create some noise in contribution margins, but the underlying business momentum remains very strong.

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    Ken Newman's questions to Distribution Solutions Group (DSGR) leadership • Q4 2024

    Question

    Ken Newman of KeyBanc Capital Markets asked if the strong start to the year in the Lawson segment was due to holiday timing or potential customer pre-buying ahead of tariffs, and questioned the risk of tariffs impacting the Canadian business's margin targets.

    Answer

    Executive Ronald Knutson explained that the January sales lift was nearly double the normal seasonal rebound from December, indicating genuine momentum. Executive John King attributed the strength primarily to rebuilding the sales force, which allows for better customer coverage, rather than pre-buying. On tariffs, King stated the impact is not significant and that the Canadian margin improvement plan is based on internal cost-cutting and consolidation, not cross-border revenue synergies that would be at risk. Knutson added that the company has a proven history of working with customers to mitigate any margin impact from tariffs.

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    Ken Newman's questions to COGNEX (CGNX) leadership

    Ken Newman's questions to COGNEX (CGNX) leadership • Q2 2025

    Question

    Ken Newman of KeyBanc Capital Markets asked about the contribution of price to revenue growth and its sustainability amid tariffs. He also questioned if the high incremental EBITDA margin implied in the Q3 guide is a sustainable baseline for operating leverage going forward.

    Answer

    CFO Dennis Fehr stated that pricing has moved from a headwind to a more neutral factor, and that tariff impacts are being mitigated through supply chain work rather than just price increases. Regarding margins, Fehr noted that while leverage is strong, investors should be mindful of typical Q4 seasonality causing deleverage. He affirmed the company is on track for its long-term goal of achieving over 20% adjusted EBITDA for the full year 2026.

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    Ken Newman's questions to TRIMAS (TRS) leadership

    Ken Newman's questions to TRIMAS (TRS) leadership • Q2 2025

    Question

    Ken Newman of KeyBanc Capital Markets inquired about TriMas's long-term portfolio strategy, particularly the future of the Aerospace segment. He also asked about the drivers behind the implied moderation in Aerospace operating margins for the second half of 2025, the potential revenue from the 2026 Airbus contract, opportunities for self-help improvements in Packaging, and the normalized incremental margin for Aerospace during an up-cycle.

    Answer

    President & CEO Thomas Snyder stated the immediate focus is on maximizing the current portfolio through operational improvements, while a long-term strategic review continues. CFO Teresa Finley explained that the second-half Aerospace margin moderation is due to normal seasonality and some non-recurring Q2 customer benefits. Regarding the Airbus contract, Finley deferred specific guidance to 2026. Both executives acknowledged significant margin improvement opportunities in Packaging through standardization and process integration, particularly with recent acquisitions, though they did not provide a specific target. Finley confirmed the first-half incremental margin for Aerospace is a fair assumption for the current up-cycle.

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    Ken Newman's questions to HERC HOLDINGS (HRI) leadership

    Ken Newman's questions to HERC HOLDINGS (HRI) leadership • Q2 2025

    Question

    Ken Newman from KeyBanc Capital Markets Inc. asked for details on the $125 million cost synergy target, specifically the portion related to headcount and the timing of these reductions. He also inquired about the strategy to recapture market share lost during the H&E transition.

    Answer

    SVP & CFO Mark Humphrey confirmed a 'pretty good chunk' of synergies are from headcount and that the company is on track to achieve 50% of the run-rate target by year-end via a phased plan. SVP & COO Aaron Birnbaum stated that Herc has data on lost customers and is actively using its larger sales force to 'claw that back.'

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    Ken Newman's questions to UNITED RENTALS (URI) leadership

    Ken Newman's questions to UNITED RENTALS (URI) leadership • Q2 2025

    Question

    Ken Newman of KeyBanc Capital Markets inquired about the performance trend of smaller, local accounts from Q1 to Q2. He also asked if the new tax bill could be pulling forward construction timelines for power projects, particularly in renewables.

    Answer

    President & CEO Matthew Flannery stated that while local account activity improved seasonally, it has stabilized on a year-over-year basis, with future growth likely tied to macro stability and sentiment. On power projects, EVP & CFO William Grace noted that renewables are a small part of their overall power business. Both executives indicated they see a strong opportunity in power overall, regardless of generation source, and are not seeing a significant pull-forward or change in their plans based on the tax bill.

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    Ken Newman's questions to MSC INDUSTRIAL DIRECT CO (MSM) leadership

    Ken Newman's questions to MSC INDUSTRIAL DIRECT CO (MSM) leadership • Q3 2025

    Question

    Ken Newman from KeyBanc Capital Markets questioned if the outperformance of 'Made in USA' products was due to customer pull-forward ahead of price hikes and asked about the volume growth needed to achieve margin stability.

    Answer

    President & COO Martina McIsaac stated that the 'Made in USA' growth is a legitimate shift driven by cost-out programs, not a pre-buy. CEO Erik Gershwind deferred on specifying a volume target for margin growth, citing market uncertainty, but reaffirmed the company's long-term goal of 20%+ incremental margins over a cycle.

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    Ken Newman's questions to MSC INDUSTRIAL DIRECT CO (MSM) leadership • Q3 2025

    Question

    Ken Newman from KeyBanc Capital Markets questioned if the outperformance of 'Made in USA' products was due to customer pre-buying ahead of price hikes and asked about the volume growth needed to achieve the 20% incremental margin target.

    Answer

    President & COO Martina McIsaac stated that the 'Made in USA' product growth is not from pre-buying but from legitimate shifts driven by cost-out programs with customers seeking tariff alternatives. CEO Erik Gershwind reiterated the 20%+ incremental margin goal over a cycle but declined to give a specific volume threshold, pointing instead to leverage, productivity, and stable gross margins as key drivers.

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