Robert Brooks • Northland Capital Markets

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President and CEO Aaron Saak explained that the strategy centers on leveraging technology leadership and prestigious reference customers like the NFL to win new business directly. The sales process involves a 'land-and-expand' model focused on increasing share of wallet. Both Saak and SVP and CFO Christina Cristiano reiterated expectations for steady and consistent mid-single-digit growth for the segment, emphasizing its resilient, recurring revenue nature rather than projecting a dramatic acceleration.

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CEO Aaron Saak explained that the win was with a new luxury perfume customer, validating the strategy of selling a full suite of authentication solutions. He highlighted that the key driver was Crane NXT's unique and wide-moat technology leadership. The initial contract covers a few products with potential for expansion. He also described the online brand protection service as a software-driven process that uses AI-enabled algorithms to scrape websites, identify counterfeits, and facilitate their removal from online marketplaces.

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CFO Dana Armstrong attributed the strong gas sales to an ongoing Atlantic Basin deal and three additional cargoes. CEO Steven Kobos emphasized these were back-to-back deals with locked-in margins. On growth, Ms. Armstrong confirmed a strong appetite and ample capacity, with pro forma net leverage below 2.5x. Mr. Kobos stated that Excelerate is 'essentially tariff proof' and that trade deficits in other countries actually create tailwinds for LNG import infrastructure.

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COO David Liner stated that the current fleet's regasification capacity ranges from 500 MMcf/d to 1 Bcf/d and noted that reliability is generally above 99%. CCO Oliver Simpson clarified the LNG carrier is first needed to support existing supply deals, with the secondary benefit of having a conversion-ready asset to reduce future project timelines, rather than being tied to a specific customer's needs at present.

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COO David Liner explained that an FSRU conversion is notably faster than a newbuild, potentially a year less, and is ideal for smaller projects. He confirmed the strategy to acquire a carrier in 2025 and use it for trading while preparing for conversion. CCO Oliver Simpson added that the newbuild FSRU is a unique, uncontracted asset suited for high send-out needs and that the company is excited about its prospects, but did not comment on specific commercial discussions or EBITDA potential.

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EVP & COO Michael Skarke confirmed that Select has not seen any activity pullback to date, attributing this resilience to the quality of their assets, contracts, and the underlying geology. Regarding AV Farms, Founder, Chairman, President & CEO John Schmitz stated that the company is actively engaging with stakeholders, has letters of intent with potential customers, and is focused on finalizing contracts which will underpin the project's construction and development, keeping it on track with its previously announced earnings potential.

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EVP of Strategy Mike Lyons and CFO Chris George explained that Select brings 15+ years of operational expertise in water management, while its partners contribute senior water rights, storage assets, and real property. The opportunity arose from Select's long-standing presence in Colorado and recognizing a unique chance to consolidate scarce resources. For the Chemicals segment, CEO John Schmitz and CFO Chris George attributed market share gains to new product development tailored for produced water reuse and the challenges of longer laterals, supported by their in-basin Permian chemistry plant.

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CFO Chris George explained that over half of the consolidated EBITDA decline in Q4 is attributable to the high-margin Water Infrastructure facility downtime. COO Michael Skarke noted that the Chemical Technologies wins are primarily with E&P operators in the Permian, driven by a direct sales focus and product performance. George clarified the Q3 pull-forward was completions-related, specifically for a freshwater pipeline being converted to produced water use, done in coordination with customers. Skarke and George described the "integrated system" as interconnecting facilities to create a larger network, enabling better water balancing, increased utilization, and the ability to move water across a wider geographic area to meet demand from multiple customers.

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CEO Stephanie Disher stated that Atmus is well-positioned to support OEMs regardless of the outcome of the EPA's regulatory review, but it is too early to speculate on specific OEM design changes. CFO Jack Kienzler added that mitigation actions, including shipping lane reconfigurations and resourcing, have already been enacted to minimize customer impact before turning to price adjustments.

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CEO Steph Disher stated that a 'region-for-region' manufacturing strategy limits exposure, and pricing is the immediate lever for tariffs, as used for recent China tariffs. She noted the organic industrial product is in its infancy. For M&A, she clarified that the main challenge has been finding targets with the right strategic fit and scalability for Atmus, rather than valuation disagreements.

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CEO Stephanie Disher noted that nearly all international markets are seeing downside, with India being the strongest performer despite some softening and China expected to remain challenged. She confirmed that automation is a core part of their strategy and a key driver of margin expansion, along with purchasing efficiencies. On M&A, she described a disciplined process focused on three industrial verticals, stating that balancing strategic fit, growth, and returns takes time and that several opportunities are in due diligence.

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CEO Brady Murphy explained that while customers need to gain comfort with the evolving technology and regulatory framework, commercial discussions are accelerating. He cited positive legislative movements in Texas as evidence of regulatory support. Murphy confirmed the Evergreen well can be drilled and placed on standby until the processing facility is ready. Regarding the deepwater market, Murphy and VP Kurt Hallead noted its long-cycle nature insulates near-term projects from price volatility, with the 2025 schedule firm and new contracts being signed for 2026-2027.

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CEO Brady Murphy stated that the AOGC ruling is critical for project economics and that TETRA's royalty from Standard Lithium is already set at 2.5%. He explained that seeking external bromine supply offers flexibility for staging the Arkansas project's capital investment, rather than reflecting a change in the strong demand outlook. He confirmed the Brazil capacity expansion was a strategic move in anticipation of the market shifting to heavier brines, which the new contract win validates.

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Todd Gleason (executive) stated there was no material pull-forward of orders and that the strong trends have continued into Q2. He described the order mix as balanced, with notable strength in gas infrastructure and nuclear. On the Profire integration, Peter Johansson (executive) reported it is proceeding very well functionally, while Todd Gleason highlighted that Profire achieved record first-quarter bookings, underscoring the business's strength and positive cultural fit.

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Todd Gleason, CEO, clarified that the 2024 guidance miss was due to project timing dynamics rather than forecasting tool failures, but noted ongoing improvements like ERP consolidation. He expressed high confidence for 2025, driven by strong bookings and completed acquisitions. On manufacturing, Gleason stated Profire's assets are primarily for its own use, though other domestic facilities like Verantis' could be leveraged for other business lines if economically justified in the long term.

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CEO Todd Gleason stated it was premature to detail specific customer strategies for Profire before the deal closes but confirmed the $100M+ in October orders were roughly two-thirds diversified and one-third from a large energy project. CFO Peter Johansson highlighted that the WK acquisition adds expertise in high-temperature incineration of waste streams and brings new technologies that complement CECO's portfolio.

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CEO Brady Ericson clarified the supplier settlement was a one-time retro recovery in Q1 2024, creating a difficult year-over-year comparison, and noted the company is fully out of all TSAs. Regarding business wins, he stated the Brazil GDi program was over a year in development and will launch in 2-3 years, and described the wallet share gain as 'meaningful.' He explained that confidence in passing through tariff costs stems from ongoing discussions, existing agreements with customers, and collaborative efforts to mitigate the impact.

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CEO Brady Ericson and CFO Chris Gropp clarified that the $105 million in CapEx was for the full year, supporting new programs and commercial vehicle (CV) capacity expansion. Ericson confirmed the second aerospace win is with an existing customer and leverages PHINIA's high-precision manufacturing capabilities, which are a key differentiator. He also noted that recent CV wins included both on-highway and off-highway applications.

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Lynn Hutkin, VP of Financial Reporting and Investor Relations, detailed that the Connectivity segment is largely unimpacted by tariffs, while the Power and Magnetics segments have about 60% of their sales unaffected. She also confirmed that a decline in commercial air sales was the primary reason for the Connectivity segment's performance. CFO Farouq Tuweiq added that AI revenue is primarily driven by sales to next-generation, private GPU manufacturers with whom Bel has close development partnerships.

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Executive Farouq Tuweiq stated that while Bel will blend results, the core Power segment will be down YoY in Q1 due to prior-year supplier issues and recent pull-ins. He cautioned that significant defense-related cross-selling synergies with Enercon are unlikely in 2025 due to long sales cycles. Tuweiq and an Unknown Executive detailed the new sales strategy, which focuses on improved team alignment, better customer targeting, revised commission structures, and a greater emphasis on e-commerce channels.

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Executive Lynn Hutkin attributed the Power segment's sequential decline to normal Q3 seasonality in Europe and the previously discussed supplier trade restrictions. Executive Farouq Tuweiq confirmed that strong Q3 bookings, particularly in fuses and from AI customers, along with improving inventory levels and customer conversations, are driving confidence for a return to growth in 2025. Tuweiq also noted that replacing the lost supplier will take time due to customer requalification processes.

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Executive Daniel Bernstein confirmed the Power segment is a key beneficiary of AI, with new opportunities emerging and sequential growth expected. He noted that Bel's products are largely 'AI ready,' which may lead to the use of channel inventory first. Lynn Hutkin, an executive, provided space revenue figures, reporting $2.3M in Q2 and maintaining a $7M full-year forecast. Regarding the restricted supplier, Bernstein explained the company took a conservative view in its Q3 guidance, assuming zero revenue from that source while it works on requalifying new suppliers.

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CEO Bob Gerrity confirmed Vitesse's acquisition lens is broadening to include gas assets and opportunities outside the Bakken. President Brian Cree added that they adhere to a strict rate-of-return hierarchy and will not be 'aggressive,' but are confident in closing deals. CFO Jimmy Henderson described the $20 million figure as a placeholder. Gerrity also affirmed their 'Luminis' data platform is used to analyze deals across multiple basins. Cree explained the Lucero assets add flexibility and compete for capital against their non-op inventory, with plans to complete two DUCs in 2025.

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CEO Dusan Senkypl explained that growth in top metros stems from a targeted 'market management' strategy, which is still being optimized before a wider rollout. He credited active customer growth to platform stability and improved marketing, adding that the 2025 plan assumes continued acquisition improvement. CFO Jiri Ponrt noted that while a weaker economy could be a headwind, it also presents a tailwind as merchants seek to fill capacity and consumers look for value.

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Executive Dusan Senkypl stated that marketing ROI is generally near its target, with recent inefficiencies caused by platform changes and pre-election ad costs. Executives clarified that higher redemption rates reduce 'breakage' revenue (from unredeemed vouchers), which is recorded at 100% of the value, thus creating a headwind. Regarding SumUp, Senkypl confirmed it is a non-core asset, but any sale is complex and requires coordination with SumUp and sufficient market demand.

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CEO Rati Levesque stated that supply growth is driven by a 'growth playbook' targeting mid-to-high-value sellers. She confirmed retail-sourced items have a 5-7x higher average selling price due to high-value categories like jewelry and watches. She also noted buyer stickiness, especially among high-spenders. Regarding AI, initiatives like 'Smart Sales' and 'Athena' are being rolled out in 2025 to improve sales productivity, item processing speed, and data accuracy, which enhances the customer experience.

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CEO Rati Levesque emphasized the company's resilient business model, which is distinct from the primary market. She reiterated that the combination of value, luxury, and sustainability resonates strongly with consumers. Levesque pointed to the success of the 'growth playbook,' strong supply, robust demand metrics, and a diversified product mix as key differentiators that allow the company to thrive.

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CEO Kelly Loyd stated that potential M&A targets are similar in size to past acquisitions and the company would consider multiple deals if they are digestible and accretive, noting the current market sees better alignment between buyer and seller expectations. CFO Ryan Stash added that Evolution has a history of closing deals in close succession. Regarding SCOOP/STACK, COO J. Bunch explained that reporting delays can occur due to small working interests, but access to electronic data is improving this issue.

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CEO Kelly Loyd confirmed that SCOOP/STACK wells are performing approximately 65% above the acquisition type curve, attributing it to conservative underwriting. COO J. Bunch added that the geology in the area makes type curves difficult to predict. For Chaveroo, Bunch outlined CapEx of about $3.5 million per well with an expected gross output of 220 barrels of oil per day per well. CFO Ryan Stash explained that lower LOE costs were influenced by the temporary CO2 pipeline shutdown and a structural shift towards lower-cost shale production from SCOOP/STACK and Chaveroo.

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