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    Kenneth 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, with expertise in the Industrial Distributor and Equipment Rental sectors. He provides research coverage on companies such as Applied Industrial Technologies (AIT) and Rockwell Automation (ROK), and has set notable price targets for these firms, with a consistent track record of market-relevant ratings and forecasts. Ken began his career as an investment banking analyst at PNC Capital Markets before joining KeyBanc in 2014, initially as a research associate, and advancing to his current role through strong sector coverage and analytical performance. He holds a Bachelor of Business Administration with dual majors in finance and international business from Ohio University, and maintains FINRA licenses Series 7, 63, 52, 79, 86, and 87.

    Kenneth Newman's questions to Symbotic (SYM) leadership

    Kenneth Newman's questions to Symbotic (SYM) leadership • Q2 2025

    Question

    Kenneth Newman of KeyBanc Capital Markets Inc. followed up on the tariff issue, asking if suppliers are already pushing price increases and about the potential magnitude of the pass-through. He also questioned if EBITDA margin expansion is possible through SG&A leverage, even with weaker gross margins from tariff pass-throughs.

    Answer

    CFO Carol Hibbard confirmed that the tariff impact, primarily from Europe, will begin in Q3 and represents a single-digit percentage of a typical system's cost. She added that they are in discussions with suppliers to find offsets. Hibbard also affirmed their focus on SG&A leverage, noting that as they scale and realize synergies from acquisitions, they can improve operational efficiency and profitability.

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    Kenneth Newman's questions to Symbotic (SYM) leadership • Q1 2025

    Question

    Kenneth Newman of KeyBanc Capital Markets asked if systems gross margin could exceed 20% in the first half of the year and questioned the competitive implications of potentially cheaper AI model training.

    Answer

    CFO Carol Hibbard stated that breaking 20% systems gross margin in the first half is optimistic, particularly for Q2, citing the drag from ops gross margin and increased OpEx. CEO Rick Cohen addressed the AI question by emphasizing Symbotic's competitive moat, stating that with 1 billion annual transactions, the company's vast and unique dataset for training AI models keeps it far ahead of competitors, regardless of training cost reductions.

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    Kenneth Newman's questions to Symbotic (SYM) leadership • Q4 2024

    Question

    Kenneth Newman requested more color on the sizing of Q1 OpEx increases, specifically the split between tech innovation and EPC in-sourcing. He also asked about the potential gross margin impact from rising steel costs.

    Answer

    CFO Carol Hibbard clarified that EPC costs are part of COGS, not OpEx, and the Q1 OpEx increase is driven by R&D and SG&A to support scaling. Regarding steel, she explained that most contracts have pass-through clauses, which protect gross profit dollars but could nominally impact the gross margin percentage.

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

    Kenneth Newman's questions to ZEBRA TECHNOLOGIES (ZBRA) leadership • Q1 2025

    Question

    Kenneth Newman asked why the Q1 tariff impact was lower than expected and inquired about the breakdown of the full-year $70 million tariff impact between the two business segments.

    Answer

    CFO Nathan Winters attributed the lower Q1 impact to successful front-loading of purchases ahead of tariff effective dates and inventory capitalization timing. He clarified the full-year impact is relatively balanced between segments, though slightly more weighted to the AIT segment due to fewer product exemptions compared to the EVM segment.

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

    Kenneth Newman's questions to APPLIED INDUSTRIAL TECHNOLOGIES (AIT) leadership • Q3 2025

    Question

    Kenneth Newman of KeyBanc Capital Markets Inc. asked about the sustainability of the company's mid-to-high teens incremental margin target amid potential headwinds like LIFO expense. He also inquired about capital deployment priorities, particularly the balance between M&A and the newly announced share repurchase program.

    Answer

    President and CEO Neil Schrimsher reaffirmed the long-term mid-to-high teens incremental margin goal, citing the company's proven ability to manage through inflationary cycles. He stated that growth, through both organic investment and M&A, remains the primary capital allocation priority, but confirmed they will be active with buybacks. CFO David Wells added that with leverage at just 0.4x, the company has 'plenty of dry powder' for all capital deployment opportunities.

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    Kenneth Newman's questions to APPLIED INDUSTRIAL TECHNOLOGIES (AIT) leadership • Q2 2025

    Question

    Kenneth Newman requested clarification on January's sales trends, the company's long-term target for the business mix between Engineered Solutions and Service Centers, and the outlook for revenue growth in the automation and tech subsectors.

    Answer

    President and CEO Neil Schrimsher explained that January sales improved from down double-digits early in the month to up low-single-digits in the final weeks. He stated that while Engineered Solutions could grow to 50% of the business, a balanced 50-50 mix would be a good outcome. He also noted encouraging order rates in automation and tech. Executive Ryan Cieslak added that both segments would likely trend similarly in Q3, with Engineered Solutions potentially outperforming in Q4.

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    Kenneth Newman's questions to APPLIED INDUSTRIAL TECHNOLOGIES (AIT) leadership • Q1 2025

    Question

    Kenneth Newman asked for quantification of the hurricane impacts on October sales trends and for color on the monthly sales comps for November and December. He also inquired whether management believes Applied is gaining market share, given its outperformance relative to a competitor's weaker industrial demand.

    Answer

    President and CEO Neil Schrimsher stated it was difficult to quantify the hurricane's impact but acknowledged some customer disruption. Executive Ryan Cieslak provided color on comps, noting November's is similar to October's while December's is easier. Schrimsher attributed the company's strong performance to its strategic focus and execution, highlighting the trend of customers consolidating spend with more capable suppliers and the growing contribution from cross-selling initiatives.

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    Kenneth Newman's questions to TRIMAS (TRS) leadership

    Kenneth Newman's questions to TRIMAS (TRS) leadership • Q1 2025

    Question

    Kenneth Newman of KeyBanc Capital Markets asked if full-year segment guidance was maintained, inquired about potential headwinds beyond freight costs, and questioned the timeline for production shifts due to tariffs. He also probed the strong Q1 Aerospace organic growth versus the conservative annual outlook and asked about customer inventory levels and potential pre-buying activity.

    Answer

    President and CEO Thomas Amato confirmed that segment guidance is unchanged due to broad market uncertainty, particularly around tariffs. He stated that while the company incurred a one-time freight expense in Q1, similar costs are not expected, but relocating production could take over a year if needed. Regarding Aerospace, Amato attributed the conservative outlook to general uncertainty despite the strong start. He also noted no abnormal customer pre-buying activity and said the company would have more clarity on tariff impacts by the end of Q2.

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    Kenneth Newman's questions to TRIMAS (TRS) leadership • Q4 2024

    Question

    Kenneth Newman inquired about the quantifiable margin enhancement expected in 2025 for each business segment, the impact of tariffs on the Packaging business, and the company's strategic direction regarding its portfolio and the ongoing CEO search.

    Answer

    CFO Scott Mell provided specific margin enhancement targets for 2025: 100-150 basis points for Packaging, 150-200 bps for Aerospace, and 100-150 bps for Norris Cylinder. President and CEO Thomas Amato addressed tariffs, explaining that near-term mitigation involves commercial actions while long-term solutions could involve relocating manufacturing, a 12-18 month process. Regarding strategy, Mr. Amato stated the Board is assessing how to unlock maximum shareholder value from its high-quality business platforms. Mr. Mell added that the Board is actively working with Spencer Stuart on the CEO search.

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    Kenneth Newman's questions to TRIMAS (TRS) leadership • Q3 2024

    Question

    Kenneth Newman of KeyBanc Capital Markets inquired about labor risks in the Aerospace segment, the potential impact of the Boeing strike on inventory and orders, and the drivers for the anticipated Q4 margin improvement in the Packaging segment. He also asked about the company's portfolio strategy in light of a new major shareholder, the M&A pipeline, and the expected financial profile of the GMT Aerospace acquisition.

    Answer

    President and CEO Thomas Amato confirmed that with a new 3-year labor agreement at its single unionized aerospace facility, no further near-term labor disputes are expected. He noted that a backlog of orders should mitigate any immediate impact from the Boeing strike. The expected Q4 packaging margin improvement is attributed to eliminating operational inefficiencies from a rapid demand snap-back, not just volume absorption. Regarding portfolio strategy, Amato stated the board's review process is a normal course of business and has not changed. CFO Scott Mell added that the GMT acquisition is expected to be accretive to adjusted EPS, while Amato described the M&A pipeline as active for Packaging and more selective for Aerospace.

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

    Kenneth Newman's questions to UNITED RENTALS (URI) leadership • Q1 2025

    Question

    Kenneth Newman inquired about the trends observed in the smaller local accounts and the outlook for this segment for the rest of the year. He also asked how margins in the Yak matting business might be affected by fluctuations in spot lumber prices.

    Answer

    Executive Matthew Flannery noted that while the local market has the least visibility, their ground-up forecasting gives them confidence to stay within guidance ranges. He added that the company is better positioned with larger customers who have deeper pipelines in a slowdown. Executive William Grace commented on the Yak business, stating they have not experienced significant margin pressure from lumber prices and are comfortable they can maintain margins.

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    Kenneth Newman's questions to UNITED RENTALS (URI) leadership • Q4 2024

    Question

    Kenneth Newman noted the softer general rent growth in 2024 and asked if the 2025 guidance assumes a similar profile. He also asked about the magnitude of demand between national and local accounts and any corresponding rate differentials.

    Answer

    Executive Matthew Flannery confirmed the 2025 guidance assumes a growth profile for general rent versus specialty similar to 2024, emphasizing the flexibility of CapEx to meet demand where it arises. Executive William Grace added that no appreciable shift in business mix is expected. Regarding customer types, Flannery stated that while national accounts leverage their scale, the market is competitive across all segments and there are no significant dynamics to call out.

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    Kenneth Newman's questions to UNITED RENTALS (URI) leadership • Q3 2024

    Question

    Kenneth Newman sought clarification on the seemingly optimistic tone regarding local account demand stabilization and asked if any financial impact from recent hurricanes was embedded in the Q4 margin guidance.

    Answer

    Executive Matthew Flannery confirmed that optimism stems from their customer confidence index and the emotional lift from a pivot in interest rates, though the timing of this sentiment turning into projects is uncertain. Executive William Grace clarified that no material impact from hurricanes is included in the guidance, as any effect would be minor at their scale and likely a 2025 event.

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

    Kenneth Newman's questions to HERC HOLDINGS (HRI) leadership • Q1 2025

    Question

    Kenneth Newman asked if EBITDA flow-through normalized in March back to the 40-50% range. He also questioned the source of confidence in local market stability, suggesting it may have been down year-over-year in Q1.

    Answer

    CFO W. Humphrey confirmed it was fair to assume flow-through normalized in March as demand recovered. CEO Lawrence Silber expressed confidence in local market stability due to business diversification and the expansion of specialty offerings, and he stated that he did not believe local revenue was down year-over-year in Q1.

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    Kenneth Newman's questions to HERC HOLDINGS (HRI) leadership • Q4 2024

    Question

    Kenneth Newman asked for expectations on the cadence of core dollar utilization for 2025 and whether management believes the rental industry is currently overfleeted, especially in local markets.

    Answer

    CFO W. Humphrey stated the goal is to maintain dollar utilization by managing fleet mix, but acknowledged the challenge from slower local markets. CEO Lawrence Silber asserted that the industry is not overfleeted, citing discipline in disposals and rates from peers and OEMs, and attributed local market softness to a slowdown in new project starts, not excess supply.

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    Kenneth Newman's questions to HERC HOLDINGS (HRI) leadership • Q3 2024

    Question

    Kenneth Newman asked for a bridge explaining the drivers of the implied Q4 EBITDA margin expansion, questioning the contribution from hurricanes, volume, and cost actions. He also inquired if it was fair to assume fleet growth beyond replacement levels in 2025.

    Answer

    CFO W. Humphrey attributed the expected Q4 margin strength to cost actions taken in Q2, strong demand components, and a more favorable year-over-year comparison, noting the hurricane impact was still uncertain. CEO Lawrence Silber stated it was too early to guide 2025 fleet growth but confirmed that, at a minimum, the company would cover replacement CapEx, prioritizing mega projects and acquisition needs.

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

    Kenneth Newman's questions to MSC INDUSTRIAL DIRECT CO (MSM) leadership • Q2 2025

    Question

    Kenneth Newman questioned whether MSC was observing any pre-buying activity from customers ahead of tariff announcements, particularly in March. He also sought more detail on the performance and outlook for key end markets like automotive and aerospace.

    Answer

    CEO Erik Gershwind responded that the company has seen no evidence of outsized pre-buying activity to date. Regarding end markets, he noted that while heavy manufacturing was soft in Q2, it saw progressive improvement through the quarter and into March. He specified that automotive and heavy truck remain very soft, while the aerospace outlook is robust, though overall uncertainty has increased.

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    Kenneth Newman's questions to MSC INDUSTRIAL DIRECT CO (MSM) leadership • Q1 2025

    Question

    Kenneth Newman of KeyBanc Capital Markets asked for specifics on Q2 SG&A productivity savings, the outlook for OpEx leverage, and current demand trends from large OE automotive and aerospace customers.

    Answer

    CFO Kristen Actis-Grande detailed the expected productivity savings and provided a framework for modeling second-half OpEx. CEO Erik Gershwind described the end-market environment as generally soft, except for aerospace, and noted that lower sales per vending machine and implant program reflect customers tightening spending, despite some growing optimism for calendar 2025.

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

    Kenneth Newman's questions to WESCO INTERNATIONAL (WCC) leadership • Q4 2024

    Question

    Kenneth Newman sought clarification on whether the EPS guidance included a full year of preferred dividends and asked for the assumptions behind the Q1 organic growth guide, given the strong January start.

    Answer

    EVP and CFO David Schulz confirmed the EPS guidance assumes only a half-year of preferred dividend payments, as the company plans to redeem the stock in June. He explained the Q1 low-to-mid-single-digit organic growth guidance balances the strong January start against tougher comps in February and March and continued softness in the UBS segment during the first half of the year.

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    Kenneth Newman's questions to WESCO INTERNATIONAL (WCC) leadership • Q3 2024

    Question

    Kenneth Newman asked for the sequential margin outlook for the EES segment in Q4 and inquired about how the company prioritizes capital allocation between paying down its preferred debt and pursuing M&A.

    Answer

    CFO David Schulz stated that while CSS margins should improve sequentially, EES and UBS margins will face pressure from lower sales volumes, leading to an overall company adjusted EBITDA margin that is flat to slightly down in Q4 vs Q3. On capital allocation, he confirmed that value-accretive M&A is the top priority. The company will balance using cash for tuck-in acquisitions against warehousing cash for the upcoming preferred debt takeout, with the ability to leverage the balance sheet if needed.

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

    Kenneth Newman's questions to W.W. GRAINGER (GWW) leadership • Q4 2024

    Question

    Kenneth Newman asked for quantification of the impact from holiday timing on Q4 daily sales and whether January sales trends had normalized. He also requested a breakdown of the dollar SG&A spend for 2025 investment initiatives.

    Answer

    CFO Dee Merriwether quantified the Q4 sales impact as a ~50 basis point headwind from holiday timing, partially offset by a hurricane benefit. CEO D.G. Macpherson confirmed that January activity, outside of early weather disruptions, had returned to normal levels. Regarding SG&A, management declined to provide specific dollar amounts but noted incremental investments would focus on marketing and seller expansion.

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    Kenneth Newman's questions to FASTENAL (FAST) leadership

    Kenneth Newman's questions to FASTENAL (FAST) leadership • Q3 2024

    Question

    Kenneth Newman from KeyBanc Capital Markets questioned the minimum sales growth needed to achieve historical incremental margins and asked for color on end-market conditions, particularly in heavy manufacturing.

    Answer

    CFO Holden Lewis explained that revenue growth north of mid-single digits is still the level required to begin leveraging the P&L. CEO Dan Florness noted that while customer business has been weak, he sees a higher probability of stabilization in 2025. Holden Lewis specified that Ag, consumer durables, and pulp/paper remain weak, with some effects from the Boeing strike impacting aerospace.

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    Kenneth Newman's questions to MRC GLOBAL (MRC) leadership

    Kenneth Newman's questions to MRC GLOBAL (MRC) leadership • Q2 2024

    Question

    Kenneth Newman from KeyBanc Capital Markets asked for an update on the Gas Utilities destocking timeline, using a baseball analogy of which 'inning' the process is in. He also questioned how the margin profile for that business would recover and inquired about capital allocation plans given the company's strong balance sheet.

    Answer

    CEO Rob Saltiel estimated the destocking process is in the 'sixth or seventh inning,' with most of it complete but some lingering into 2025. He clarified that the Gas Utilities margin profile—slightly dilutive on gross margin but accretive on net margin—is not expected to change. Regarding capital allocation, Saltiel highlighted the company's unprecedented balance sheet strength and flexibility, stating that the board is actively considering options to benefit shareholders but did not disclose specific plans.

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

    Kenneth Newman's questions to DMC Global (BOOM) leadership • Q3 2023

    Question

    Kenneth Newman of KeyBanc Capital Markets inquired about the timing of Arcadia's demand decline in Q3 and trends into October. He also sought clarification on restructuring actions, questioning the status of the ERP system, the scope of sourcing initiatives, and their associated costs and payback. Finally, he asked if the new paint capacity contributed to overcapacity issues.

    Answer

    CEO Michael Kuta stated that Arcadia's demand was "fairly level" through Q3 and declined to comment on Q4 specifics. Executive Chairman James O'Leary clarified that the current actions are about "top grading" personnel, not formal restructuring, and that the ERP implementation "could have gone smoother." He noted the costs are part of doing business and not a discrete restructuring charge with a specific payback. Both O'Leary and Kuta confirmed that the new paint capacity was not the source of the absorption issues; the problem was concentrated in the high-end residential business.

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