Michael Pesendorfer

Michael Pesendorfer from Baird Equity Research asked about potential order pull-forwards in the semiconductor business, sought details on performance across the ATS portfolio, and questioned if the increased share repurchase authorization signaled a tougher M&A environment.

Answer

EVP & CFO Daniel Hopgood stated there was no direct evidence of customer order pull-forwards in ATS, highlighting broad-based demand. President & CEO Sundaram Nagarajan emphasized that the increased share repurchase authorization is consistent with their balanced capital allocation strategy and does not reflect a change in their M&A approach. He affirmed the M&A pipeline remains healthy and that the company will remain disciplined, citing the successful integration of Atrion.

Michael Pesendorfer, on behalf of Mike Hallum from Baird, asked about the scope of 80/20 initiatives, investment and platform potential for the Bradley acquisition, and the go-to-market strategy and sales cycle for the Nexa platform.

Answer

CEO Robert Pagano explained that 80/20 is a constant process across the company but is most significant in recent acquisitions. He confirmed investments are being made to streamline the Bradley business, which serves as a strong 'front of the wall' platform. For Nexa, he described a long (1-2 year) sales cycle involving pilots but expects it to accelerate as the platform proves its value and all smart products are migrated onto it.