Michael Sison • Wells Fargo

Answer

CFO Michael Deveau confirmed that a sequential step-down is expected. He attributed it partly to normal business seasonality, as Q4 is historically the lowest margin quarter of the year. He also acknowledged that the decline reflects the previously discussed softening in volume performance expected in the second half.

Ask Fintool Equity Research AI

Answer

CEO Erik Fyrwald attributed the margin gains primarily to productivity initiatives and a strategic focus on selling higher-margin products and applications. He reaffirmed the company's commitment to delivering further margin improvements this year and achieving a target of above 15% through 2026.

Ask Fintool Equity Research AI

Answer

CFO Glenn Richter clarified the year-over-year comparison, noting the Q4 guide is roughly flat on a like-for-like basis. He explained the perceived decline is almost entirely due to a nearly $40 million year-over-year increase in incentive compensation in the quarter, as performance is materially above budget this year. CEO Jon Erik Fyrwald added that while they aren't seeing strong 'green shoots' from customers for 2025, IFF is focused on driving growth through innovation, which customers desire in slow markets.

Ask Fintool Equity Research AI

Answer

EVP & CFO Steven Bender noted that for PVC, July prices were flat, but an August nomination is in the market. For polyethylene, July prices were unsettled with nominations pending. Regarding seasonality, he explained that Q4 typically sees lower chlorine demand, which tightens caustic soda production, but the overall pricing environment will depend on feedstock costs and the success of price nominations.

Ask Fintool Equity Research AI

Answer

M. Bender, EVP and CFO, indicated that HIP should see seasonal growth in Q2 and Q3, supported by construction activity, which should also benefit the PEM segment sequentially. He confirmed that key feedstock costs like natural gas and ethane trended lower in April and May compared to their Q1 peaks, which should provide a positive tailwind for PEM.

Ask Fintool Equity Research AI

Answer

EVP and CFO Steve Bender reiterated that the 2025 HIP guidance is conservative and reflects a potential product mix shift but highlighted the business's strong historical performance. For PEM, Bender declined to provide direct EBITDA guidance but pointed to recent price nominations across key products as evidence of improving demand, suggesting a constructive outlook without specifying the magnitude of change.

Ask Fintool Equity Research AI

Answer

EVP and CFO Steve Bender stated that while October pricing had not settled, consultants suggest potential for modest price reductions in Q4 for PVC and polyethylene due to seasonality. He characterized the caustic market as stable. He estimated the combined impact of weather and slower housing starts on HIP EBITDA was in the 'mid-$40-ish million range'.

Ask Fintool Equity Research AI

Answer

CEO David Li attributed the pricing power in Performance Materials to the high value of its engineered carbon solutions. Regarding APT, Li noted that new leadership is in place and the segment is part of the ongoing portfolio review, with more details to come. CFO Mary Hall outlined future capital allocation priorities post-deleveraging as: 1) organic investments, 2) share repurchases, and 3) M&A, which is not a near-term focus.

Ask Fintool Equity Research AI

Answer

Interim CEO Luis Fernandez-Moreno emphasized that the EBITDA target is primarily driven by 'self-help' actions, including benefits from lower CTO costs, savings from the Performance Chemicals repositioning, and a stronger focus on execution. Regarding portfolio criteria, he stated that it was too early in his tenure to share specific metrics or strategic thoughts on what defines a core business for Ingevity.

Ask Fintool Equity Research AI

Answer

CFO Antonella Franzen asserted that with 40% of its portfolio in healthcare and water, IndustrialsCo performs like an industrial company. Jon Kemp, President of the Electronics division, stated that ~35% of their semi business is in advanced nodes and that the AI/HPC/data center segment, ~15% of the portfolio, grew over 20% in the quarter.

Ask Fintool Equity Research AI

Answer

CFO Antonella Franzen argued that the portfolio's composition, with 40% in stable healthcare and water, and its performance affirm its industrial nature. Jon Kemp, President of the Electronics division, stated that 35% of semi exposure is in advanced nodes and 15% of the portfolio is in AI/HPC, which grew over 20% in the quarter.

Ask Fintool Equity Research AI

Answer

Jon Kemp, CEO-elect of Qnity, identified semiconductor industry pure-plays as the best peer set, expressing confidence that long-term industry dynamics will support a strong valuation. On AI, he stated that we are in the 'very early days' of adoption, with hyperscalers increasing investment, which drives strong growth for Qnity's enabling technologies in data centers and advanced packaging.

Ask Fintool Equity Research AI

Answer

CEO Lori Koch and Executive Chairman Ed Breen highlighted the strong margin profile, lower earnings volatility, and the divestiture of the M&M business as key differentiators from chemical companies. Lori Koch added that advanced nodes represent about 40% of the semi portfolio and grow faster than the segment average, with AI-specific exposures growing 30%.

Ask Fintool Equity Research AI

Answer

CEO Lori Koch reiterated previous commentary, stating there were no significant changes to the 2025 outlook. She expects electronics growth to accelerate, driven by AI and new fabs, with a recovery still to come in memory markets. In W&P, she anticipates continued recovery in medical packaging and a more normalized demand environment for water, with no major changes from the outlook provided last quarter.

Ask Fintool Equity Research AI

Answer

CEO Peter Vanacker provided a segment-by-segment outlook, suggesting improvement in O&P Americas and Europe, with flat results expected for the I&D, APS, and Technology segments. He highlighted an $85 million tailwind in O&P Americas from reduced downtime. He did not directly comment on changes to the long-term mid-cycle EBITDA potential.

Ask Fintool Equity Research AI

Answer

CEO Peter Vanacker suggested that underlying Q1 EBITDA was about $100 million higher than Q4 after adjusting for roughly $200 million in non-recurring impacts from turnarounds and outages. While visibility is weak, he noted that demand for durable goods will eventually see a replenishment after a prolonged downturn. He pointed to the resilience of packaging and reaffirmed that this is the longest downturn of his career, making a precise trough difficult to predict.

Ask Fintool Equity Research AI

Answer

CEO Peter Vanacker identified the need for continued demand growth, particularly from a recovery in durable goods and construction, which would benefit both polyethylene and polypropylene. He also emphasized that the exit of the low-margin Refining business, which accounted for about 70% of the year-over-year EBITDA decline, will remove a significant headwind from consolidated results in 2025.

Ask Fintool Equity Research AI

Answer

Chairman, President & CEO Peter Huntsman stated that while some chemical closures in China are likely, he does not expect them in MDI due to the modern and competitive nature of those assets. He expressed confidence in an eventual recovery to normalized EBITDA, driven by market improvements and a more competitive internal cost structure.

Ask Fintool Equity Research AI

Answer

CEO Peter Huntsman stated that the key variable for Q2 margins is volume. He sees an opportunity for margin expansion in the U.S. through falling raw material costs, while Asian prices have recently stabilized after a drop. For a better second half, Huntsman emphasized that market certainty is needed to drive a recovery in volumes, which he believes will happen due to the disconnect between current orders and end-user demand. He believes earnings should improve materially from current levels.

Ask Fintool Equity Research AI

Answer

CEO Peter Huntsman expressed hope for a better Q2 than Q1, driven by construction seasonality and potential traction on MDI price increases. While not providing specifics on China, he implied margins are not at a high and stated that the region's primary need is a recovery in demand, potentially through economic stimulus.

Ask Fintool Equity Research AI

Answer

Chairman, CEO and President Peter Huntsman explained that meaningful leverage typically begins when global capacity utilization reaches the high 80s. He expressed optimism for margin expansion in early 2025, contingent on continued demand improvement, particularly in North American housing. He noted that recovery in North America and Asia might precede Europe due to a global dislocation of manufacturing.

Ask Fintool Equity Research AI

Answer

CEO Sanjiv Lamba highlighted space as a very attractive, double-digit growth opportunity, noting Linde supplies over four out of five U.S. launches and has invested nearly $1 billion in related infrastructure. He clarified that while these are long-term agreements with strong customer commitments, their commercial structure (lacking guaranteed fixed fees) prevents them from being classified as on-site projects in the backlog.

Ask Fintool Equity Research AI

Answer

CFO Matt White clarified the guidance includes a negative base volume assumption of 1-1.5% as a placeholder. CEO Sanjiv Lamba identified long-term growth drivers including secular trends like electronics, high-growth markets such as India and Mexico, and nascent markets like aerospace and quantum computing, all of which would be underpinned by an eventual cyclical recovery.

Ask Fintool Equity Research AI

Answer

CEO Sanjiv Lamba politely deferred providing a 2025 outlook, stating that the company is currently in its planning process. He promised a comprehensive view and detailed guidance for 2025 during the next earnings call in February.

Ask Fintool Equity Research AI

Answer

President, CEO & Chairman Ashish Khandpur provided a detailed market breakdown, expecting H2 to be similar to H1. He noted that weakness in consumer markets is offset by high-single-digit to double-digit growth in healthcare, defense, and telecom. He anticipates better volume in H2, especially for the SEM segment. Khandpur also explained that future EBITDA leverage will come from ongoing productivity initiatives (targeting 1.2% of sales annually) and a favorable mix shift towards more profitable growth vectors.

Ask Fintool Equity Research AI

Answer

SVP and CFO Jamie Beggs highlighted the portfolio's resilience, with strong growth expected in healthcare, defense, packaging, and composites, which should help it outperform. President and CEO Dr. Ashish Khandpur added that the company is focused on execution—delivering consistent growth, margin expansion, and cash generation—and believes this will eventually be recognized by investors.

Ask Fintool Equity Research AI

Answer

President and CEO Dr. Ashish Khandpur responded that more U.S. manufacturing would be a net positive by reducing FX exposure. CFO Jamie Beggs quantified the 2025 FX headwind at approximately $0.12 per share. Regarding Europe, Dr. Khandpur noted three consecutive quarters of organic growth and expects the region to perform better in 2025, supported by higher GDP projections.

Ask Fintool Equity Research AI

Answer

President and CEO Dr. Ashish Khandpur identified restocking in building & construction, healthcare, and packaging, especially in Latin America where customers build inventory to prevent supply disruptions. SVP and CFO Jamie Beggs noted that comparisons were also aided by significant destocking in 2023. Regarding culture, Dr. Khandpur highlighted a sharpened commercial focus, customized regional tactics, and a strategic shift to serve secular macro trends. He previewed that the Investor Day will detail how these elements connect to form the new strategy.

Ask Fintool Equity Research AI

Answer

CEO Eduardo Menezes confirmed continued activity in smaller, unannounced projects and highlighted significant investment in the electronics sector in Asia. He also noted ongoing projects to expand hydrogen and air separation capacity in the West. Menezes expressed confidence in Air Products' competitive advantage, particularly its cryogenic equipment manufacturing capabilities, which he intends to leverage fully.

Ask Fintool Equity Research AI

Answer

CEO Eduardo Menezes dismissed the simplified return math, explaining that depreciation life varies by project. While he would not disclose specific hurdle rates for competitive reasons, he stated that to achieve the company's overall Return on Capital targets, individual projects need to deliver IRRs higher than 10%.

Ask Fintool Equity Research AI

Answer

Chairman, President and CEO Seifi Ghasemi confirmed that going forward, the company will not make a final investment decision on any new clean hydrogen project without securing an anchor customer first, mirroring its core business model. He projected EPS growth of 9-10% for fiscal '25 and '26, with the potential for growth to be 'significantly higher than 10%' in '27 and '28 as the large-scale projects begin contributing to earnings.

Ask Fintool Equity Research AI

Answer

CEO Timothy Knavish projected that Refinish volumes would be soft in Q3 due to customer order patterns but should normalize in Q4, with a broader industry recovery not expected until 2026. CFO Vince Morales noted the buffering effect of the MoonWalk subscription model. Regarding Protective and Marine, Knavish expressed confidence in sustained strong growth through 2026, driven by PPG's advantaged technologies.

Ask Fintool Equity Research AI

Answer

Chairman & CEO Timothy Knavish projected a soft Q3 for Refinish due to distributor order patterns but expects normalization in Q4, with a broader industry recovery not anticipated until 2026. CFO Vince Morales highlighted the buffering effect of the MoonWalk subscription model. Regarding Protective and Marine, Knavish expressed high confidence in continued strong growth, driven by advantaged technologies in marine aftermarket and fire protection.

Ask Fintool Equity Research AI

Answer

CEO Timothy Knavish expressed confidence in the segment, highlighting double-digit growth in Aerospace and Protective & Marine, with sequential improvement expected in Traffic Solutions. CFO Vince Morales noted that while comps get more difficult in the second half, the businesses have shown strong growth on a two-year stack basis and those trends are expected to continue.

Ask Fintool Equity Research AI

Answer

CEO Tim Knavish stated that no additional divestitures are planned and that he likes the current portfolio. He described Performance Coatings as a high-performing, aftermarket-focused segment. He defended the Industrial segment's current margins, noting they are at a cyclical trough with significant volume leverage and self-help actions underway. He highlighted that the recent portfolio moves have already lifted the company's EBITDA margin by 220 basis points into the top tier.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Timothy Knavish stated that while it's early for specific 2025 guidance, PPG has positive momentum in Performance Coatings, sees stabilizing trends in Europe, and anticipates benefits from newly announced self-help initiatives. He noted that IHS projects marginally positive auto builds for next year. SVP and CFO Vince Morales added that the company's strong balance sheet provides flexibility for future shareholder value creation.

Ask Fintool Equity Research AI

Answer

President and CEO Chris Villavarayan estimated the average repair cost is around $4,700-$5,000 but emphasized Axalta's value proposition is not the coating cost (~4% of total) but the savings on labor (~40% of total). He explained that Axalta's products improve body shop efficiency, reducing labor time and material usage, which is a key driver for winning the 1,600 new body shops year-to-date even in a challenging environment.

Ask Fintool Equity Research AI

Answer

CEO Chrishan Anthon Villavarayan stated that positive industry volume growth was likely a pre-pandemic phenomenon, as the market has seen declines for many quarters. However, he stressed that Axalta's Refinish business has consistently grown sales and profits for at least 14 quarters through strong execution, M&A, and body shop wins, demonstrating its resilience independent of the broader market volume trends.

Ask Fintool Equity Research AI

Answer

CEO Chris Villavarayan identified both transitory factors (high insurance rates, consumer spending choices) and structural factors (distributor destocking) affecting the Refinish market. He noted that while body shop backlogs are normalizing, the company is forecasting a flat-to-down market to ensure they focus on outperformance. He also mentioned that severe weather could be an un-forecasted tailwind in subsequent quarters.

Ask Fintool Equity Research AI

Answer

President and CEO Ken Lane expressed confidence that Winchester's margins will recover because the current challenges are cyclical, not structural, though he noted destocking will likely continue through 2025. For the chemicals market, he pointed to encouraging signs of potential industry rationalization, particularly in China, where high-cost producers are losing cash. He asserted that Olin's strong balance sheet will enable it to navigate the trough effectively.

Ask Fintool Equity Research AI

Answer

President and CEO Kenneth Lane explained that Olin is indeed taking advantage in a disciplined way, primarily through its EDC position, which acts as a flywheel. As the lowest-cost EDC producer, Olin can participate in that market as higher-cost Asian players back off. This allows Olin to maintain a strong value approach for caustic in its preferred markets (the Americas) without pushing excess chlorine derivatives into the market just to produce more caustic.

Ask Fintool Equity Research AI

Answer

CEO Kenneth Lane responded that Olin will focus on controllables like costs and cash flow. He anticipates sequential improvement driven by a second-half recovery in the Winchester business, seasonal strength in the bleach business during warmer months, and continued pricing momentum in the Epoxy segment, despite it remaining in a 'deep hole.'

Ask Fintool Equity Research AI

Answer

President and CEO Kenneth Lane emphasized that in a continued trough, the focus remains on self-help measures like cost discipline and capital spending reductions to maximize cash flow, combined with their value-focused commercial strategy. Regarding the Investor Day, Lane was optimistic about the company's future but deferred sharing specifics on strategy, encouraging attendance to hear about the portfolio review and growth opportunities.

Ask Fintool Equity Research AI

Answer

CEO & President Scott A. Richardson confirmed the math, noting that underlying performance is improving due to cost savings and fewer turnarounds, but this is offset by a demand change of about $0.25. He expressed confidence in the company's increasing earnings power, citing a historically low Western Hemisphere cost structure in Acetyls and significant SG&A plus R&D efficiency gains in Engineered Materials, which position the company to capitalize on any demand recovery.

Ask Fintool Equity Research AI

Answer

CEO Scott Richardson was cautious about the second half, but noted that if demand remains stable, a run rate of around $2 per share exiting the year is possible, driven by self-help actions and other tailwinds. For the long term, he expressed strong belief in the earnings power of both the Acetyl Chain and Engineered Materials franchises, highlighting significant recovery potential, but refrained from giving a specific target, framing the $2 per quarter level as the first step.

Ask Fintool Equity Research AI

Answer

CEO Scott Richardson affirmed the value of the M&M acquisition, highlighting growth from the high-temp nylon portfolio in EV applications and elastomeric products in athletic apparel. For H2 2025 improvement, he outlined three key drivers: executing on the $50-$100 million complexity reduction in Engineered Materials, fully leveraging the acetyls optionality model, and reversing the recent margin compression across both the EM and Acetyls businesses.

Ask Fintool Equity Research AI

Answer

CFO Chuck Kyrish stated that the Q3 goodwill impairment test did not result in a write-down for the Engineered Materials unit, though a minor $34 million trade name impairment was recorded. CEO Lori Ryerkerk and COO Scott Richardson noted that while it is too early to forecast 2025, the company is focused on controllable actions like cost cuts and synergies to drive performance.

Ask Fintool Equity Research AI

Answer

Chairman & CEO Frank Sullivan stated that RPM anticipates generating 2 to 3 points of organic growth for the year, driven by solid performance in the Construction Products Group (CPG) and Performance Coatings Group (PCG). He added that the new three-segment structure will yield about $15 million in upfront expense reductions and create operational and revenue synergies, such as better collaboration between the Industrial Coatings Group and Carboline.

Ask Fintool Equity Research AI

Answer

Chairman and CEO Frank Sullivan expressed confidence in the company's ability to outperform, citing the repair and maintenance focus of its businesses. Regarding tariffs, he detailed a multi-faceted mitigation strategy including sourcing changes, vendor partnerships, and targeted price increases, stating the total impact is not material to RPM and will be mostly offset.

Ask Fintool Equity Research AI

Answer

CEO Frank Sullivan expressed confidence in Q4 growth, citing easier comps, new product introductions, and market outperformance in certain segments. For the longer term, he noted that while geopolitical uncertainty exists, a return to growth in Europe, stability in Latin America, and a platform approach to developing markets create significant upside potential.

Ask Fintool Equity Research AI

Answer

Frank Sullivan, Chair and CEO, stated that the company is so well-poised from its MAP initiatives that if it could generate 2-3% consolidated volume growth in the second half of the current fiscal year, it would reach a run rate of 42% gross profit and 16% EBIT by the fourth quarter. He emphasized that the original $8.5 billion revenue target is not needed to hit those margin goals, and if they had come close to that revenue number, they would have meaningfully exceeded the margin targets.

Ask Fintool Equity Research AI

Answer

COO Karen Carter explained that Q3 polyethylene margins are improving from a very low Q2 base, which was negatively impacted by an unexpected April price drop. She confirmed the new PolySeven train will provide uplift. CEO Jim Fitterling added that the Diamond Infrastructure Solutions partnership creates opportunities to offer land, power, and utilities to tech companies, leveraging Dow's existing scale and capabilities, though it is still in the early stages.

Ask Fintool Equity Research AI

Answer

Chair and CEO James Fitterling identified three drivers for potential second-half improvement: accretive earnings from three new growth projects coming online, normalizing energy costs after a Q1 spike, and the ramp-up of cost savings programs. He noted the primary uncertainty remains the impact of tariffs on global supply chains and demand, but highlighted Dow's geographic flexibility as a key advantage.

Ask Fintool Equity Research AI

Answer

CEO James Fitterling stated that the newly announced $1 billion cost reduction program is designed to support improved EBITDA in 2025. He noted that while pricing power remains a key variable, the company expects to benefit from volume growth from new projects and will take necessary actions to tighten the European market. Fitterling also emphasized a focus on careful cash management to protect the dividend.

Ask Fintool Equity Research AI

Answer

SVP of IR Jim Jaye highlighted outperformance by pointing out that Sherwin-Williams' new residential sales were up slightly while completions were down double-digits. Chair, President & CEO Heidi Petz suggested a mortgage rate "south of six" percent would be a positive catalyst, but stressed that consumer confidence and affordability are equally critical factors for a recovery.

Ask Fintool Equity Research AI

Answer

SVP of Investor Relations James Jaye pointed to Sherwin-Williams' positive growth in new residential and commercial, while market completions were down double-digits, as clear evidence of share gains. CEO Heidi Petz suggested a mortgage rate "south of six" percent would be a positive trigger, but stressed that consumer confidence and affordability are equally critical factors.

Ask Fintool Equity Research AI

Answer

Executive Allen Mistysyn clarified that the growth was 'predominantly price,' attributing the success to the effective rollout of the January 2025 price increase. He explained that a positive mix shift also contributed, as the higher-margin residential repaint segment grew faster than the commercial and property maintenance segments.

Ask Fintool Equity Research AI

Answer

SVP & CFO Allen Mistysyn pointed to several headwinds: higher interest expense from refinancing, the normalization of non-operating costs after gains in 2024, and incremental operating costs for the new headquarters. CEO Heidi Petz also highlighted macro headwinds from soft single-family starts and slowing multifamily completions.

Ask Fintool Equity Research AI

Answer

Executive Allen Mistysyn expects year-over-year margin improvement for all segments in Q4 but not necessarily margin expansion in architectural due to seasonality. For 2025, he anticipates moderating SG&A growth but will reinvest opportunistically. Executive Heidi Petz added that they expect the investments to deliver 'outsized volume growth' and a strong return for shareholders.

Ask Fintool Equity Research AI

Answer

CEO Guillermo Novo defended the long-term target by separating near-term market headwinds impacting the base business from long-term growth drivers. He expressed confidence that the 'globalized' and 'innovate' strategic pillars, supported by new investments in high-growth regions and technologies, will drive future growth and that the innovation pipeline provides significant upside potential, which will be detailed at the upcoming Innovation Day.

Ask Fintool Equity Research AI

Answer

CEO Guillermo Novo explained that Q1 is historically Ashland's weakest quarter and that the key volume period runs from March to September, with current order patterns appearing normal. He stated that full-year volumes are expected to be flattish to up. Dago Caceres, GM of Specialty Additives, added that North America should see sequential improvement, Europe is expected to be flat, and China remains challenging, while Latin America and MEA/India are performing well.

Ask Fintool Equity Research AI

Answer

CEO Guillermo Novo explained that the conservative outlook is driven by a prudent view on China's economy, which is expected to face a prolonged period of hyper-competition and oversupply. He noted that upside would materialize if China performs better than this cautious forecast. Novo stated that significant cost savings from restructuring are timed for fiscal 2026, which is when he expects EBITDA to return to the target range above $500 million. CFO Kevin Willis affirmed that the company has clear visibility into its $90 million optimization savings plan, with timing being the main variable.

Ask Fintool Equity Research AI

Answer

Mark Costa, Board Chair and CEO, suggested a potential recession's impact would be less severe than in 2022-23 because the manufacturing sector is already at low demand levels with minimal excess inventory. He highlighted mitigating factors like price/cost tailwinds and the EBITDA contribution from methanolysis. He confirmed the original H2 forecast assumed a return to low-to-mid single-digit volume growth for the AM and AFP segments.

Ask Fintool Equity Research AI

Answer

Board Chair and CEO Mark Costa attributed AFP's strong quarter to better-than-expected volume mix and favorable raw material cost flow-through. For Fibers, he explained that the market is normalizing from 'very tight' to 'low 90s' utilization due to inventory adjustments, a more modest situation than in 2015. He emphasized stable end-market demand and the company's focus on cost reduction and innovation to support the business long-term.

Ask Fintool Equity Research AI

Answer

CEO Mark Costa suggested 2025 growth would be uneven, with stable markets like personal care growing steadily, while interest-rate sensitive markets like housing and auto are more likely to see a back-half loaded recovery. He noted current Q4 caution among brands due to macro uncertainty. Costa declined to speculate on the election's impact on methanolysis demand, stating that while uncertainty exists, he does not see policy changes having a significant near-term impact on their stable markets.

Ask Fintool Equity Research AI

Answer

CEO Kent Masters confirmed that Albemarle continues to invest in and advance the Kings Mountain project. He stated that the multi-stage, long-term permitting process is currently 'on track' and that the company continues to pursue it.

Ask Fintool Equity Research AI