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President & CEO Benjamin Gliklich stated there was no evidence of demand pull-forward in Q2, unlike the prior year's smartphone-related activity. He noted that while Power Electronics had a strong Q2, the growth rate might slow in the second half due to customer-specific production declines, though this would be offset by new customer ramps, and the long-term outlook remains strong.

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CEO Ben Gliklich explained that the growth in wafer-level packaging, particularly damascene copper, is driven by Korean customers ramping up HBM production for data centers. He expressed confidence in continued market outperformance due to strong penetration in fast-growing B2B vectors like data centers and low-orbit satellites, which are less tied to consumer electronic cycles.

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CEO Benjamin Gliklich confirmed a clear bifurcation in the PCB market, with ESI's outperformance driven by its strong position in high-growth, complex boards for IC substrates and servers. Regarding M&A, he stated the balance sheet is strong and they are actively seeking high-quality, tuck-in acquisitions at reasonable values, while also having capacity for share repurchases.

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CEO Benjamin Gliklich stated that ESI's existing footprint is adequate to meet demand, so significant CapEx increases are not needed, though they are scaling new products like Kuprion. He sees material shortages as a sign of robust demand rather than a pricing lever, noting margins are already healthy. Regarding power electronics, Gliklich confirmed an expected acceleration driven by both customer production ramps and new business wins across various OEM types, leading to a strong growth outlook.

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EVP and CFO Ian Cleminson stated that while the company is monitoring tariffs, its diversified supply chain provides flexibility, and the direct impact is low. He noted the main headwind in Performance Chemicals is customer caution, not direct costs. President and CEO Patrick Williams added that Oilfield cost actions include asset consolidation and personnel efficiencies, with benefits expected in Q3/Q4. For the yearly cadence, Ian Cleminson projected Fuel Specialties would be on target, Performance Chemicals would likely see Q2 performance similar to Q1, and Oilfield Services should see slight sequential improvement from Q2 onwards.

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Patrick Williams, President and CEO, confirmed a focus on growth outside Latin America for the Oilfield segment, highlighting progress in the Middle East, particularly with Saudi Aramco, which is expected to drive growth in 2025. Ian Cleminson, EVP and CFO, stated there was nothing unusual in Fuel Specialties' SG&A and noted that raw material costs are stabilizing, with price/mix volatility expected to settle sequentially. Patrick Williams concluded that Q4 EPS should be 'broadly in line' with Q3's $1.35, possibly 'a tad higher,' driven by sequential improvement in Oilfield.

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CFO Mary Meixelsperger clarified that transactions drove about one-third of the comp, but it was closer to a 50/50 split with ticket when adjusted for calendar shifts. Both Meixelsperger and CEO Lori Flees attributed SG&A deleverage to a planned "reset year" involving refranchising impacts and technology investments, expecting leverage to return as growth accelerates.

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CFO Mary Meixelsperger guided to a relatively flat year-over-year gross margin, as benefits from scale are expected to be offset by labor inflation and the margin drag from a growing base of immature stores. Regarding the refranchising, Meixelsperger pointed to the $71 million in proceeds disclosed in the Q4 cash flow statement but declined to provide a specific multiple, stressing that the deals are valued based on long-term returns from accelerated, capital-efficient network growth.

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CEO Bertrand Loy explained that while advanced logic and HBM customers are driving growth with a focus on purity, mainstream customers are indeed stretching filter lifetimes amid low utilization, creating a headwind. CFO Linda LaGorga added that while FX can have a manageable impact on margins during volatile periods, it is not a primary driver of the Q2 margin outlook.

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CFO Linda LaGorga advised that the 2025 margin cadence would follow a very similar pattern to 2024, accounting for Q2 equity award timing. CEO Bertrand Loy reported that silicon carbide revenue was flat in 2024 due to a soft market but remains a promising area where Entegris is well-positioned with a strong cost-of-ownership value proposition pending an industry recovery.

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CEO Chrishan Anthon Villavarayan agreed this is a positive long-term opportunity. He noted that rising used car prices make it more attractive for dealerships and resellers to repair vehicles before sale. He stated that Axalta has a 'really strong presence' in this channel and expects this business to grow as the market eventually stabilizes.

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CEO Chris Villavarayan expressed confidence in Axalta's position in China, citing strong partnerships with the largest local EV and ICE players, which he expects will lead any consolidation. Regarding the Dürr partnership, he described it as a union of two leaders that enables efficient, in-line two-tone coating and customization with negligible overspray, a significant sustainability and cost win for OEMs.

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President and CEO Dr. Ashish Khandpur explained that the consumer market weakness was concentrated in the U.S. and Canada, with double-digit declines in both staples and discretionary goods, a trend expected to continue in Q2. In EMEA, he highlighted strong performance and wins in healthcare, consumer (e.g., toys), defense, and energy infrastructure, which drove growth in the Color and Additives business.

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President and CEO Dr. Ashish Khandpur stated that the ERP project's risk, complexity, and cost had increased substantially, making it unviable. He noted that alternative, less costly systems can now deliver similar benefits more quickly. Regarding healthcare, he highlighted double-digit growth in 2024, driven by new business wins in drug delivery devices, remote monitoring systems, and some restocking of medical supplies.

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SVP and CFO Jamie Beggs stated that Latin America is primarily a packaging market where Avient has ample capacity, making M&A unnecessary for growth. She noted growth is driven by deploying existing technologies and near-shoring trends. Regarding capital allocation, she clarified the leverage target is closer to 2.5x net debt-to-EBITDA, and meaningful share repurchases are not a priority until that target is met, though offsetting dilution remains a possibility.

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CEO Peter Huntsman confirmed the Rotterdam turnaround impact was about $5 million in Q1 and is expected to be $10 million in Q2, consistent with prior guidance. He estimated the customer fire had a $3 million negative impact. CFO Phil Lister added that the maleic outage had a negligible margin impact due to the already thin margins in that European business. For Q2, Lister and Huntsman indicated the other planned turnarounds are relatively small, with the main focus remaining on the Rotterdam impact.

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Chairman, CEO and President Peter Huntsman identified the new business wins as being in OSB/wood, insulation, and the broader furniture/appliance markets. For the expansions, he stated the PU catalyst project in Hungary should be done by year-end, while the completed ultra-pure amines project is in its qualification phase, with revenues expected to begin in early 2025.

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President and CEO Joseph Berquist explained that the company can mitigate most direct tariff impacts on raw materials and finished goods due to its local-for-local manufacturing strategy, noting the primary concern is the harder-to-assess impact on end-market demand. Berquist detailed strategic shifts, including realigning leadership around product segments, simplifying the brand portfolio, and developing a multichannel approach with inside sales and e-commerce to better serve smaller customers and free up the direct sales force. CFO Tom Coler added that Q2 EBITDA is expected to be modestly higher than Q1, driven by normal seasonality, continued market share gains, and the contribution from the Dipsol acquisition.

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President and CEO Joseph Berquist stated that while the 37-38% gross margin range is the 'right ZIP code,' the company is also focusing on driving EBITDA margins to the high teens. He attributed Asia Pacific's strength to new business wins in metals and with BEV suppliers, which the company aims to replicate globally through enhanced customer intimacy. For 2025, he confirmed a 1-2% market growth assumption, favorable comps from H2 2024, and $15 million in-year savings. CFO Tom Coler added that foreign exchange is expected to be a low single-digit headwind to sales.

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CEO Andrew Tometich attributed the margin pressure to a lag effect in index-based pricing and the timing of SG&A expenses, which were partially offset by cost controls. He credited the Asia Pacific strength to broad-based organic new business wins. For Q4, he anticipates continued market softness and seasonality, though new business wins should provide an offset. CFO Tom Coler added that gross margins are expected to remain stable within the 37% to 38% range. For 2025, Mr. Tometich stated the company will focus on executing its strategy and controlling costs, positioning it to capitalize on any market improvements.

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General Manager Jim Minicucci explained that the biofunctionals weakness is concentrated in the high-end luxury and travel retail skincare segments. CEO Guillermo Novo clarified that the 'globalized' initiative's sales decline was driven by this softness in the 'core' business. He stressed that the 'new' business from recent capital investments is ramping up as planned and is not the source of the decline.

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CEO Guillermo Novo explained the primary concern regarding trade policy is the impact on global trade flows, not direct input costs, highlighting potential duties in Europe on Chinese HEC. He confirmed there was no significant pre-buying activity in Q1. He also noted a minor two-day weather-related shutdown at the Texas City plant, which they expect to offset with existing capacity.

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Dago Caceres, GM of Specialty Additives, outlined that the coatings market is stable in North America and Europe, with growth in the Middle East, Africa, and India. CEO Guillermo Novo specified that China constitutes 25% of the Coatings business. Novo clarified the Q4 operational issue was an isolated absorption problem at a U.S. plant during a productivity investment start-up and is now resolved. He confirmed that potential weakness in China and its impact on plant utilization are already factored into the fiscal 2025 guidance range.

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CEO Eduardo Menezes clarified that the $1.5 billion is an estimate for the 2029-2030 timeframe and that all projects must meet strict return hurdles and fit within the company's capital allocation framework. On merchant demand, he noted it was difficult to assess, with a possible pre-tariff inventory build now likely to be followed by a negative impact, particularly in the U.S. and China.

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CFO Vince Morales noted that pricing in Performance Coatings benefited from carryover in long-cycle businesses, with new pricing being introduced in Q2. CEO Timothy Knavish identified three drivers for Traffic Solutions' strength: momentum from 2024 share gains, pent-up demand from last year's wet weather, and a growing tailwind from infrastructure spending, all pointing to a strong Q2 and beyond.

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CEO Tim Knavish described Latin America as a 'rockstar performer' benefiting from strong GDP and near-shoring. In India, PPG leverages a joint venture with Asian Paints to combine its technology with local market strength. For China, he noted PPG is positioned in the right segments (auto, aero), grew each quarter in 2024, and is gaining share with domestic auto OEMs. He views the elongated recovery in China as a benefit for raw material sourcing.

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Chairman and CEO Timothy Knavish confirmed that aerospace is a top priority. He explained that the recent divestiture frees up capital and management resources to focus on high-growth businesses like aerospace. He stated that PPG is actively looking at long-term capacity additions in parallel with ongoing debottlenecking efforts, reflecting a bullish multiyear outlook.

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Christophe Beck, Chairman and CEO, explained that while the full-year earnings promise remains the same, the path to achieving it has changed due to the dynamic environment. CFO Scott Kirkland added that while FX has improved recently, it remains volatile, and the company still expects it to be a headwind for the full year, albeit potentially less than originally anticipated. They are managing many variables, and FX is just one component of a complex equation.

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CEO Christophe Beck stated there was no business impact in Q3 from the hurricanes. He credited the company's world-class, resilient supply chain, noting that producing 92% of sales locally has become a huge competitive advantage. He emphasized that while there is a human impact, the business has become very good at managing through these events, though he could not comment on potential future events.

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Executive Heidi Petz stated that Sherwin-Williams is leveraging the 'Valspar acquisition playbook' and will be 'very aggressive' in pursuing both top-line and operational synergies. While premature to detail specific investments, the focus is on efficiency. Executive Allen Mistysyn added that the company has an appetite to invest in businesses with above-market growth potential, as it has done in packaging and coil.

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CEO Heidi Petz responded that it is too early to determine the impact but emphasized that the company's focus on enhancing contractor productivity through technology, efficient delivery, and strong field support helps mitigate labor constraints regardless of their cause. She noted that reliability has become a key differentiator.

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Executive James Jaye expressed optimism, citing indicators like the LIRA index, which is expected to improve in mid-2025. He highlighted that the Residential Repaint business is already up mid-single digits in a flat market due to prior investments. Executive Heidi Petz added that the company is well-positioned to capitalize on a market recovery through its 'success by design' strategy.

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President and CEO Luis Rojo explained that the Pasadena site is in its early stages, producing 6 of a planned 60+ products, with a full contribution expected in H2 2025. He confirmed Q1 had $4 million in pre-operating expenses, which will lessen in Q2 before turning positive. Rojo clarified that the consumer product weakness is due to sluggish market demand, not an intentional shift. He stated the high-cost inventory in Polymers is clearing out in Q2, which should improve margins. Regarding tariffs, Rojo noted potential for reduced import competition in MCT and some Surfactants. He attributed distribution growth to a global strategy of acquiring new Tier 2/3 customers and underlying market growth.

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CEO Luis Rojo confirmed the agricultural business recovery is sustained, with 22% growth in Q3 and a positive outlook for Q4, stating the destocking trend has ended. He attributed European surfactant strength to similar positive agricultural trends. For the consumer segment, Rojo noted that while personal care was down, the core laundry and cleaning business grew 4%. He explained that the quarter's $53 million EBITDA was suppressed by a $3.3 million one-time fraud event and weak polymer volumes, implying the $60 million level is attainable as these headwinds subside.

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CFO Erik Aldag attributed the Q1 margin pressure primarily to lower volume, along with higher energy and logistics costs, and noted the Q2 2024 margin was a tough comparison due to high-margin equipment sales. He stated the 15% full-year margin target is achievable through volume recovery and the new cost savings program. CEO Douglas Dietrich confirmed MGO from China faces a tariff and is part of the strategic inventory build. Regarding Household and Personal Care, Dietrich acknowledged recent volatility but expressed confidence in a return to mid-single-digit growth, citing strong Q2 order patterns and long-term private label trends.

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CEO Douglas Dietrich confirmed the 3-5% sales growth outlook is organic and suggested the company could maintain its 8% compound annual EPS growth track, depending on product mix. CFO Erik Aldag noted that energy cost impacts were not major and that strong productivity and higher-margin projects in Environmental and Infrastructure drove the sequential margin improvement in Engineered Solutions. Aldag quantified the pricing headwind by noting that Specialty Additives volume grew 3% for the year while revenue grew only 1%.

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CFO Erik Aldag attributed the Q1 margin pressure primarily to lower volume leverage, along with about $2-3 million in higher energy costs and $1 million in unfavorable logistics costs. He noted the Q2 2024 margin was a tough comparison due to high-margin sales last year. CEO Douglas Dietrich addressed the MGO question, confirming it faces a 20% tariff from China and that MTI has been building inventory to mitigate impacts. Regarding the consumer business, Dietrich acknowledged recent volatility due to customer order shifts but stated the long-term growth thesis remains intact, citing strong Q2 order patterns that suggest a return to mid-single-digit growth.

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CEO Douglas Dietrich confirmed the 3-5% sales growth outlook is an organic figure and suggested EPS growth could align with the company's 8% CAGR. CFO Erik Aldag noted that while energy costs are slightly higher, they are not a major impact. Aldag attributed the strong Q4 Engineered Solutions margin to improvements in the environmental business and strong equipment sales. He also clarified that the price decline in Specialty Additives was due to contractual pass-throughs, reflected in the gap between 3% volume growth and 1% revenue growth.

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CEO Douglas Dietrich and Executive D.J. Monagle explained that the softness in Fabric Care was temporary, related to Asian customer order patterns, and is expected to reverse. They highlighted long-term strength driven by trends in dry detergents and renewable fuels. Executive Brett Argirakis noted that while the construction market has been depressed, they are optimistic for 2025 as interest rates fall and projects commence. Dietrich confirmed the business retains high incremental margins that will benefit the company as activity rebounds.

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CEO Douglas Dietrich and executive D.J. Monagle explained that the HPC segment's modest growth was due to a slower-than-typical summer for pet care, which is now rebounding, and temporary order timing shifts with Asian customers in Fabric Care. They affirmed long-term confidence, citing trends in renewable fuels and natural solutions. For Environmental & Infrastructure, Group President Brett Argirakis confirmed the business is depressed due to high interest rates impacting construction but noted significant optimism for 2025, as many projects are specified and waiting to launch. Douglas Dietrich added that this business has high incremental margins, which will significantly benefit profitability when activity resumes.

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Chairman and CEO Frank Sullivan confirmed that reshoring has been a benefit, particularly in technology, and that while the auto sector is slowing, the overall trend continues. He explained that most weather-delayed Q3 projects were pushed out, not canceled, but noted the challenging year-over-year comparison and that cold weather persisted through March.

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CEO Frank Sullivan explained that the flat Q3 outlook is primarily due to the return of a 'real winter' compared to a record-breaking, mild Q3 last year, which is interrupting momentum. He noted that confidence in residential stabilization comes from easing comps after a prolonged downturn and early signs of improvement in housing turnover, despite the current choppiness.

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Frank Sullivan, Chair and CEO, explained that underabsorption is occurring across many plants due to lower volumes, particularly in Consumer. He also cited strategic investments like the new Innovation Center and a Resin Center in Europe that add to depreciation and operating costs. Regarding infrastructure, he believes the dollars are committed and that both potential administrations would support onshoring and manufacturing, though the consequences of different policies on debt, taxes, and tariffs remain uncertain.

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President and CEO Celeste Mastin reported strong mid-to-high single-digit growth in China, driven by portfolio repositioning in HHC and significant share gains in electronics and EVs within the EA segment. She emphatically stated that the adhesive involved in the Cybertruck recall was not an H.B. Fuller product. She framed the incident as an opportunity that highlights the need for highly technical partners like H.B. Fuller, particularly in growing areas like exterior automotive trim and structural adhesives.

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CEO Celeste Mastin described a 'dramatic slowdown' in HHC during Q4, affecting 10 of 13 market segments, potentially due to customer inventory rationalization. She acknowledged that consumer shifts to lower-cost products can be a headwind. Regarding guidance, she stated the company is committed to the range, which already assumes a slightly negative volume environment, but noted that better-than-expected volume or interest rate cuts could provide upside.

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CEO Celeste Mastin attributed the Construction Adhesives success to restructuring, share gains in roofing (data centers, institutional buildings), and innovation like their new eco-friendly spray adhesive. She stated that she does not see evidence of restocking, but rather solid market demand. For 2025, Mastin and CFO John Corkrean outlined controllable factors including $10 million in remaining restructuring benefits, $20-25 million in EBITDA from recent acquisitions, and synergy capture, offset by wage inflation and variable comp rebuild.

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President and CEO Jugal Vijayvargiya explained the Precision Clad Strip decline is roughly 20% year-over-year, spread across 2025, due to a customer's inventory reduction initiative, with a return to growth expected in 2026. He noted the semiconductor recovery is driven by advanced nodes for AI and high-performance computing, offsetting weakness in power semi. VP and CFO Shelly Chadwick clarified the Precision Optics impairment was a non-cash, model-driven accounting adjustment reflecting a revised forecast following a major customer loss, but not the company's commitment to the business.

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President and CEO Jugal Vijayvargiya detailed the sale of the unprofitable Albuquerque architectural glass business (~$10M annual sales) and ongoing facility consolidations in Asia. VP and CFO Shelly Chadwick quantified cost takeouts at $15-20M, with over half being permanent, plus a temporary $5-6M incentive comp benefit. Vijayvargiya confirmed the defense business is strong, with bookings up significantly, and noted that the Precision Clad Strip inventory correction is expected to continue into the new year.

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President Ronaldo Pereira detailed that distributor consolidation in the region led to a loss of FMC's historical share with smaller retailers. In response, FMC is now investing in a new sales team with skills tailored to a direct-to-grower model, focusing on crops like soybean and corn. This strategic shift is enabled by new technologies like fluindapyr, which are highly relevant to these large growers and provide a compelling entry point.

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CEO Sanjiv Lamba stated that hard goods sales are down mid-single-digits, which he sees as a leading indicator reflecting the broader industrial weakness. He noted that large-ticket purchases are sluggish globally due to economic uncertainty. Regarding interest rates, he has not yet seen a bullish shift in U.S. consumer behavior; if anything, sentiment appears to be tightening slightly despite anticipation of future Fed cuts.

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