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    Mike Harrison • Seaport Research Partners

    Mike Harrison's questions to Innospec Inc (IOSP) leadership

    Mike Harrison's questions to Innospec Inc (IOSP) leadership • Q2 2025

    Question

    Mike Harrison from Seaport Research Partners inquired about the Performance Chemicals segment, specifically the drivers of margin pressure, including the mix of lower-margin products and the impact of rising oleochemical costs. He also asked about the sustainability of the exceptionally strong margins in Fuel Specialties and sought guidance on the overall earnings outlook for Q3.

    Answer

    President and CEO Patrick Williams explained that the Performance Chemicals margin pressure was partly due to a market shift to commoditized products but emphasized it was primarily an internal issue of pricing discipline that the company needs to fix. He confirmed rising oleochemical costs are a major driver and expects the margin lag to persist into Q3, with improvement likely in Q4. For Fuel Specialties, Williams attributed the strong margins to price discipline, favorable product mix, and growth in non-fuel applications, but noted that while margins will remain high, they will likely moderate from Q2's peak. He projected that in Q3, Fuel Specialties might come off slightly, Oilfield Services would be flat to slightly up, and Performance Chemicals would not improve until Q4.

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    Mike Harrison's questions to Valvoline Inc (VVV) leadership

    Mike Harrison's questions to Valvoline Inc (VVV) leadership • Q3 2025

    Question

    Mike Harrison of Seaport Research Partners asked for quantification of the pure pricing component of average ticket growth and inquired about the nature of the eight store acquisitions in the quarter, as well as the pipeline for smaller deals amidst the pending Breeze transaction.

    Answer

    CFO J. Kevin Willis acknowledged a large franchisee's pricing action but highlighted premiumization and NOCR as larger growth opportunities. CEO Lori Flees added that while pricing is a contributor, no pervasive company-wide actions have been taken for new costs. Regarding acquisitions, she explained that six stores were a strategic transfer from a franchisee, and the other acquired stores were from multiple smaller operators. She confirmed Valvoline continues to pursue smaller acquisitions with strong returns.

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    Mike Harrison's questions to Huntsman Corp (HUN) leadership

    Mike Harrison's questions to Huntsman Corp (HUN) leadership • Q2 2025

    Question

    Mike Harrison of Seaport Research Partners asked for an explanation for why European MDI is being imported into North America and inquired about the outlook for the MTBE joint venture in the second half.

    Answer

    Chairman, President & CEO Peter Huntsman expressed confusion about the European MDI imports, stating he couldn't imagine the rationale but confirmed it was happening. Regarding the MTBE joint venture, he indicated it would be a 'struggle' to see much improvement in the second half of the year.

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    Mike Harrison's questions to Quaker Chemical Corp (KWR) leadership

    Mike Harrison's questions to Quaker Chemical Corp (KWR) leadership • Q2 2025

    Question

    Mike Harrison from Seaport Research Partners inquired about the drivers behind the 5% above-market growth, its sustainability, the factors causing margin weakness in Asia Pacific, and the expected earnings cadence for the second half of the year.

    Answer

    CEO Joseph Berquist attributed the growth to broad-based share gains, especially in Asia Pacific and with advanced solutions, stating confidence in sustaining a 2-4% above-market rate. He explained that Asia Pacific margins were impacted by new business incentives, product mix, and oleochemical costs, but expects modest improvement. Berquist and CFO Tom Coler projected a stronger second half driven by new business, cost actions, and acquisitions, without assuming market improvement, noting Q4 would likely not be sequentially higher than Q3 due to seasonality.

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    Mike Harrison's questions to Avient Corp (AVNT) leadership

    Mike Harrison's questions to Avient Corp (AVNT) leadership • Q2 2025

    Question

    Mike Harrison of Seaport Research Partners requested more color on the specific growth drivers within the healthcare business and the typical qualification timeline for new materials. He also asked about current trends in China and potential warning signs for the second half.

    Answer

    President, CEO & Chairman Ashish Khandpur detailed that healthcare growth is strong (17% in Q2), driven by medical devices (e.g., glucose monitors), medical supplies (catheters), and drug delivery systems. He noted qualification timelines can range from 2-6 years for FDA-regulated products. Regarding China, Khandpur pointed to pressure on the Color business due to government-led "supplier structural reform," which is tightening credit. This is being offset by growth in the SEM business tied to high-performance computing and AI.

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    Mike Harrison's questions to FMC Corp (FMC) leadership

    Mike Harrison's questions to FMC Corp (FMC) leadership • Q2 2025

    Question

    Mike Harrison of Seaport Research Partners asked for more details on the pheromones offering, the upcoming commercial pilot, and the long-term viability of the $1 billion revenue target by 2030.

    Answer

    Chairman and CEO Pierre Brondeau stated that a full-scale commercial pilot for pheromones is launching in the second half of 2025. He emphasized that the results from this pilot will be critical in assessing the realism of the $1 billion revenue target for 2030. A more definitive, fact-based update on this long-term outlook will be available after the current season's campaign concludes at year-end.

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    Mike Harrison's questions to Materion Corp (MTRN) leadership

    Mike Harrison's questions to Materion Corp (MTRN) leadership • Q2 2025

    Question

    Mike Harrison of Seaport Research Partners questioned if temporary factors drove the high Electronic Materials margins and if strength outside China was a positive mix factor. He also asked for an update on the new and old Precision Clad Strip facilities and inquired about the sustainability and drivers of the turnaround in the Precision Optics business.

    Answer

    CFO Shelly Chadwick confirmed that regional mix is a significant factor for Electronic Materials margins and that business outside of China tends to be a positive mix item. CEO Jugal Vijayvargiya clarified that the new Precision Clad Strip facility is fully equipped and ready for increased orders, while the legacy facility continues to produce for other markets. Regarding Precision Optics, he attributed the strong sequential improvement to leadership changes and structural cost actions, stating the goal is to continue this momentum and return the business to its historical 20%+ EBITDA margin levels over time.

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    Mike Harrison's questions to Stepan Co (SCL) leadership

    Mike Harrison's questions to Stepan Co (SCL) leadership • Q2 2025

    Question

    Mike Harrison from Seaport Research Partners inquired about quantifying one-time impacts in the Surfactants business, the margin pressure from raw material inflation, the timing of price recovery, and the effects of the new collective bargaining agreement at the Millsdale site.

    Answer

    Luis Rojo, President, CEO & Director, clarified that a $6 million impact included Pasadena startup costs, an environmental reserve, and a recoverable EPA fine. He highlighted significant raw material inflation, noting that recent price increases should help recover margins in the second half. Rojo explained the new collective bargaining agreement is a routine four-year event and mentioned an associated inventory build impacted cash flow.

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    Mike Harrison's questions to Stepan Co (SCL) leadership • Q4 2024

    Question

    Mike Harrison asked for details on the drivers behind the positive 5% price/mix in the Surfactants segment and its outlook for 2025. He also requested help establishing a normalized 2025 EBITDA baseline by clarifying the impact of numerous 2024 one-time items, and specifically questioned the expected Q1 impact from the Pasadena facility ramp-up.

    Answer

    President and CEO Luis Rojo attributed the strong Surfactant price/mix to high-single-digit growth with higher-margin Tier 2 and Tier 3 customers, as well as strong performance in the oilfield market. While declining to provide specific EBITDA guidance, Rojo noted that over $30 million in one-time negative events from 2024 should not repeat. He confirmed the Pasadena facility's pre-operating costs will continue in Q1 but will be offset by revenue and savings in the second half of 2025.

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    Mike Harrison's questions to Ecolab Inc (ECL) leadership

    Mike Harrison's questions to Ecolab Inc (ECL) leadership • Q2 2025

    Question

    Mike Harrison of Seaport Research Partners asked about the elevated cash balance on the balance sheet and whether it was expected to remain high.

    Answer

    Scott Kirkland, CFO, explained the Q2 cash balance was temporarily inflated by a $500M bond offering ahead of a ~$525M debt maturity in July. While cash remains high, he stated the company values the optionality it provides for disciplined investment in the business and opportunistic M&A, noting the net leverage of 1.7x is below their long-term target of ~2.0x.

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    Mike Harrison's questions to Ecolab Inc (ECL) leadership • Q4 2024

    Question

    Mike Harrison asked if moving the Healthcare business into the Institutional segment was merely a reporting change or if it involved deeper operational integration.

    Answer

    Christophe Beck, Chairman and CEO, confirmed the move formalizes an operational strategy that has been underway. After divesting the surgical business, the final step was to leverage Institutional's scale to better serve hospitals by combining food service and infection prevention. He noted the future focus for Healthcare will be on instrument reprocessing, a business model that aligns well with Institutional's strengths.

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    Mike Harrison's questions to Minerals Technologies Inc (MTX) leadership

    Mike Harrison's questions to Minerals Technologies Inc (MTX) leadership • Q2 2025

    Question

    Mike Harrison of Seaport Research Partners inquired about growth dynamics in the Household and Personal Care segment, the drivers of strong Q2 operating income in Engineered Solutions, and the company's capacity for M&A.

    Answer

    Chairman & CEO Douglas Dietrich and Group President D.J. Monagle detailed mixed conditions in Household and Personal Care, noting strong growth in specialty products but slower, more competitive conditions in pet care, which are being addressed with promotions and capacity expansions. CFO Erik Aldag and Dietrich explained that Engineered Solutions' Q2 outperformance was due to strong productivity and cost management, while the Q3 guidance reflects macro uncertainty and higher tariff costs. Dietrich confirmed the company's strong balance sheet provides flexibility for M&A.

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    Mike Harrison's questions to RPM International Inc (RPM) leadership

    Mike Harrison's questions to RPM International Inc (RPM) leadership • Q4 2025

    Question

    Mike Harrison of Seaport Research Partners asked about the key drivers of the Q4 outperformance, recent demand trends, whether inflation is primarily tariff-driven, and for guidance on FY26 depreciation, amortization, and CapEx.

    Answer

    Chairman & CEO Frank Sullivan attributed the strong Q4 to new product introductions in Consumer, double-digit growth in developing markets, and strong unit volume growth in PCG and CPG, viewing Q3 as a weather-related aberration. He estimated tariffs account for a significant portion of inflation. VP of IR & Sustainability, Matthew Schlarb, provided FY26 guidance of ~$200M for D&A and $220M-$240M for CapEx.

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    Mike Harrison's questions to Sherwin-Williams Co (SHW) leadership

    Mike Harrison's questions to Sherwin-Williams Co (SHW) leadership • Q2 2025

    Question

    Mike Harrison of Seaport Research Partners asked for more detail on the raw material baskets driving expected deflation in the second half and questioned if there was a risk of competitors cutting prices.

    Answer

    SVP of IR Jim Jaye identified petrochemicals like solvents and some resins as sources of deflation, while tariffs are causing pressure on packaging and certain pigments. He and CEO Heidi Petz dismissed concerns about price cuts, noting a major competitor actually raised prices mid-season and reiterating Sherwin-Williams' focus on value and pricing discipline.

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    Mike Harrison's questions to Sherwin-Williams Co (SHW) leadership • Q2 2025

    Question

    Mike Harrison from Seaport Research Partners asked for details on the raw material baskets driving expected deflation in the second half and questioned the risk of competitors cutting prices in response.

    Answer

    SVP of Investor Relations James Jaye specified that deflation is expected in petrochemicals like solvents and some resins, while tariffs are causing pressure on applicators and certain pigments, leading to a flat outlook for the year. CEO Heidi Petz added that they are seeing competitors do the opposite—raising prices—and Sherwin-Williams will maintain its pricing discipline.

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    Mike Harrison's questions to H.B. Fuller Company (FUL) leadership

    Mike Harrison's questions to H.B. Fuller Company (FUL) leadership • Q2 2025

    Question

    Mike Harrison asked about monthly volume trends during Q2 and into June, seeking specifics on the timing of the pause in China exports. He also explored packaging trends, questioning if the strength in flexible packaging and weakness in end-of-line packaging was due to a market shift from cardboard to flexible formats.

    Answer

    President & CEO Celeste Mastin described Q2 volumes as consistently flat to slightly negative month-over-month, with some weakening in the Building Adhesives segment in May. She noted the China electronics pause occurred later in Q2 and may persist for another month or two. While acknowledging the shift to flexible packaging, she attributed H.B. Fuller's outperformance primarily to share gains driven by its ability to provide regulatory and supply chain solutions, and confirmed flexible packaging adhesives are more demanding, higher-value applications.

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