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    Ken Newman • KeyBanc Capital Markets

    Ken Newman's questions to Applied Industrial Technologies Inc (AIT) leadership

    Ken Newman's questions to Applied Industrial Technologies Inc (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 Inc (SYM) leadership

    Ken Newman's questions to Symbotic Inc (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 Zebra Technologies Corp (ZBRA) leadership

    Ken Newman's questions to Zebra Technologies Corp (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 WW Grainger Inc (GWW) leadership

    Ken Newman's questions to WW Grainger Inc (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 WW Grainger Inc (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 Inc (WCC) leadership

    Ken Newman's questions to Wesco International Inc (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 Cognex Corp (CGNX) leadership

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

    Ken Newman's questions to Distribution Solutions Group Inc (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 Inc (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 TriMas Corp (TRS) leadership

    Ken Newman's questions to TriMas Corp (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 Inc (HRI) leadership

    Ken Newman's questions to Herc Holdings Inc (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 MSC Industrial Direct Co Inc (MSM) leadership

    Ken Newman's questions to MSC Industrial Direct Co Inc (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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