Ross Sparenblek

Ross Sparenblek inquired about the strong margin performance of VACCO in the quarter, asking if it was a one-time event and if it would be the largest margin contributor to A&D gross margins in 4Q. He also asked about the revised outlook for A&D margins, expecting them to converge with industrial margins. Additionally, he questioned RBC Bearings' industrial business outlook for 2026, comparing it to peers' low single-digit guidance, and asked about channel inventory balance and expected catch-up with elevated OEM build rates.

Answer

Chairman, President, and CEO Michael Hartnett stated that 4Q Aerospace gross margins are expected to be strong and better than Q3, driven by volumes and pricing, and will definitely expand. He clarified that A&D margins are expected to "chase up towards" industrial margins, closing the gap. For the industrial business in 2026, he expressed optimism for "high single digits as worst case," outperforming peers' low single-digit guidance, but refrained from providing full-year guidance.

Ross Sparenblek inquired about the strong margin performance of VACCO in the quarter, asking if it was a one-time event and if VACCO would be the largest margin contributor to Aerospace and Defense gross margins in Q4. He also asked about the convergence of A&D margins with industrial margins and RBC's industrial business outlook for 2026 compared to peers' low single-digit guidance, specifically regarding cyclicality, inventory, and OEM build rates.

Answer

CEO Michael Hartnett stated that A&D gross margins in Q4 are expected to be better than Q3, driven by volumes and pricing, and will definitely expand, chasing up towards industrial margins. He also projected RBC's industrial business to perform better than peers' low single-digit guidance for 2026, expecting high single-digit growth as a worst-case scenario, expressing optimism for the year ahead.

Ross Sparenblek of William Blair asked for the key variables in the FY26 defense growth guidance, sought details on industrial end-market dynamics, and questioned the reason for the sequential gross margin step-down in the Q1 outlook.

Answer

Executive Mike Hartnett stated the defense guidance range is primarily driven by the challenge of ramping capacity. Executive Robert Moffatt identified mining, cement, and logistics as the strongest industrial end markets. Executive Robert Sullivan explained the Q1 margin guidance is compared against an exceptionally strong prior-year quarter and remains above the full-year FY25 average.

Ross Sparenblek from William Blair asked for a breakdown of gross margins by segment, the outlook for Dodge synergies, growth in the Dodge warehouse business, and the recovery status of the semiconductor and oil and gas markets.

Answer

CFO Rob Sullivan provided the segment margins, stating Aerospace was 40.5% and Industrial was an exceptional 46.5%. CEO Dr. Michael Hartnett noted that Dodge synergies are ongoing and will continue for years, and that the Dodge warehouse business grew about 7% year-over-year. He also mentioned that semiconductor orders are starting to 'trickle back' but have not yet fully recovered.

Ross Sparenblek from William Blair inquired about the Dodge R&D strategy and new product timing, the performance of the Dodge warehousing business, margin expectations for the aerospace ramp, and the company's willingness to pursue market share gains with Boeing.

Answer

CEO Mike Hartnett projected that new products from Dodge would contribute a few million dollars this year and $5-10 million on an annualized basis next year. He noted the warehousing business is 'coming back slowly' and that they expect to be past the current Boeing issues next year. Hartnett affirmed that Boeing will survive and that RBC has 'a lot of low hanging fruit' and major projects with both major airframers.

Ross Sparenblek asked for a breakdown of sales and order growth between the Grid business and legacy Electronics. He then inquired about the drivers sustaining growth in the legacy Electronics segment, including specific end markets like EVs and aerospace/defense. He also sought clarification on how Standex plans to bridge to $270 million in fast growth sales for the second half, considering the Amran acquisition and capacity. In follow-up questions, he asked about the total capacity of Amran at acquisition versus current, and the 'right to win' for the Grid business in a fragmented market. Lastly, he asked for more detail on the mid-to-high single-digit organic growth range and potential risks or upsides.

Answer

CFO Ademir Sarcevic indicated that the Electronics segment's book-to-bill was over 1, with Grid at 1.2 and core at 1.03-1.04. CEO David Dunbar specified that Grid continues its growth trajectory, switches and sensors are growing in the upper single digits, and magnetics are lower, resulting in mid-single-digit organic growth for core Electronics. Mr. Dunbar attributed legacy growth to switches and relays, strong Asian activity, European pickup, and test and measurement equipment tied to electrification, grid, and data centers. For fast growth sales, Mr. Dunbar detailed contributions from Grid, defense, space, and EVs. Mr. Sarcevic noted that investments in Grid capacity expansion (Croatia, Mexico, Houston) would incur costs, impacting near-term margins but sustaining future growth. Regarding capacity, Mr. Dunbar stated Amran's capacity at acquisition was about $100 million, now increased by 50%, and will more than double in 3-5 years with new sites and lean efforts. He explained Amran's 'right to win' through privileged OEM relationships, faster prototyping, quicker delivery, quality, and cost advantage from India. For organic growth, Mr. Sarcevic believes the company has bottomed out, while Mr. Dunbar highlighted new products and fast growth markets overcoming general industrial weakness, with North America's performance being a potential risk.

Ross Sparenblek from William Blair asked for a breakdown of sales and order growth in the Electronics segment, differentiating between the Grid business and legacy operations. He also inquired about the drivers sustaining growth in the legacy Electronics business, such as EVs, aerospace, and defense, and whether an inflection point was being observed. Sparenblek then sought clarification on bridging the second-half forecast to $270 million in fast-growth sales, considering the Amran acquisition and potential capacity constraints in Grid. Finally, in a follow-up, he asked about the total capacity of Amran at acquisition versus current capacity and the "right to win" for the Grid business, and what factors could impact the mid-to-high single-digit growth outlook.

Answer

Ademir Sarcevic, CFO, reported Electronics' total book-to-bill over 1, with Grid at 1.2 and core at 1.03-1.04. David Dunbar, CEO, specified Grid's consistent growth, upper single-digit growth for switches and sensors, and lower growth for North American magnetics, placing core Electronics at mid-single digits organically. Dunbar confirmed an inflection in legacy Electronics, driven by strong Asia demand for switches and relays, a pickup in Europe, and growth in test and measurement tied to electrification, grid, and data centers. For fast-growth sales, Dunbar detailed that over half of the $270 million target is from Grid, with defense, space, EV, and renewable energy contributing the rest. Ademir Sarcevic, CFO, added that growth investments and capacity expansion in Grid (Croatia, Mexico, Houston) would incur costs, keeping margins strong but tempering increases. Dunbar clarified Amran's capacity was $100 million at acquisition, now 50% higher, and will more than double in 3-5 years. He attributed Grid's "right to win" to privileged OEM relationships, faster prototyping, quicker delivery, quality, and cost advantage from India, with expansion being customer-driven. Ademir Sarcevic, CFO, and David Dunbar, CEO, acknowledged a market bottoming out but cited North America's continued weakness as a potential risk to the growth outlook.

Ross Sparenblek asked about the drivers of organic order growth in the Electronics segment and its sustainability. He also inquired about the capacity expansion for Ameren, the drivers of Scientific segment margins, and the company's ability to improve free cash flow conversion.

Answer

CEO David Dunbar attributed the 16% YoY order growth in Electronics to OEM design wins and noted a record-high application funnel supports its sustainability. He confirmed Ameren's 15-20% growth is supported by capacity adds in Houston and the new Croatia site. CFO Ademir Sarcevic explained that Scientific margins are expected to hold as pricing and productivity offset tariff pressures and mix impact from a recent acquisition. Sarcevic also stated that free cash flow conversion is expected to be 'much, much better' in FY26 as the company improves collections processes and moves past one-time transaction costs.

Ross Sparenblek asked for an update on the electronics restocking phase, the current size of automotive and industrial exposure, the potential risk from NIH funding cuts in the Scientific segment, and the major programs associated with the McStarlite acquisition.

Answer

CEO David Dunbar stated that the destocking in Asia has bottomed out and is now showing strength, while North America is improving and Europe remains soft. He noted automotive is now about 15% of the Electronics business. CFO Ademir Sarcevic confirmed the analyst's sizing of the NIH funding risk and said the pharmacy business is at a trough, with active conversations for replacements underway. Dunbar confirmed McStarlite is a sole-source supplier on wide-body programs for both Boeing and Airbus.

Ross Sparenblek of William Blair & Company questioned the production capacity and historical margins of the Amran asset, the impact of European expansion on margin targets, the scale of the Scientific segment's pharmacy business decline, and the organic book-to-bill for the Electronics segment.

Answer

CEO David Dunbar stated that Amran's margins have ramped from the mid-30s to the 40% range and that the business has significant capacity to expand by adding second and third shifts. CFO Ademir Sarcevic noted the company's 23% margin target is achievable through Amran's contribution and productivity in the core business. Dunbar specified the Scientific pharmacy business has troughed at about $2 million annually from a peak of over $20 million. Sarcevic provided a breakdown of the Electronics book-to-bill, with the core business at 1.0x and Amran/Narayan at 1.2x, for a blended 1.02x.

Ross Sparenblek asked about the origin of the acquisition deal, the acquired companies' competitive advantages, monthly order trends in the Electronics segment, and the drivers of Electronics' margins with a timeline for returning to the mid-20% range.

Answer

CEO David Dunbar revealed the deal was sourced bilaterally after identifying the company as a fit for their fast-growth market strategy, highlighting its competitive edge in rapid prototyping and customer intimacy. CFO Ademir Sarcevic confirmed a strong uptick in Electronics orders supports a second-half recovery and noted that while the base business margins are expected to improve, a full outlook for the combined entity and a timeline to 25% margins will be provided next quarter.

Ross Sparenblek asked about the contribution of new products to the 2026 organic growth guide and the cadence of new product launches, as well as the long-term trajectory of R&D and the current backlog.

Answer

CEO Paul Sternlieb highlighted an ambitious innovation program, targeting nearly double the new product launches in fiscal 2026 compared to fiscal 2025, supported by increased R&D spend and a new innovation lab. He emphasized outperforming competitors in innovation pace. CFO Darren Kozikowski added that the higher end of the 1-4% organic growth guidance includes successful new product launches and market recovery. Paul Sternlieb also noted a multi-year innovation funnel and an uptick in backlog driven by strong order activity, particularly in the HLT business, which now includes DTA.

Ross Sparenblek asked about the current state of Enerpac Tool Group's backlog, its size relative to a normalized basis, and the factors contributing to the company's confidence in its steadily growing project funnels.

Answer

Paul Sternlieb, CEO of Enerpac Tool Group, explained that Enerpac is typically a book-to-bill business with shorter cycles, though the HLT segment (including DTA) has a 6-12 month backlog. He noted that the backlog has ticked up due to strong order activity and growth in orders outpacing revenue in the quarter, which increases confidence in the full-year outlook. Darren Kozik, CFO, added that the DTA acquisition is significantly helping the HLT business with more products and cross-sell opportunities.

Ross Sparenblek inquired about recent pricing actions in the U.S. and globally, the potential for intra-year price increases, what the company is hearing about U.S. infrastructure spending, and asked for new CFO Darren Kozik's initial impressions and priorities.

Answer

President and CEO Paul Sternlieb responded that Enerpac, as a price leader, announced low-single-digit price increases effective in January and would consider further action if warranted by tariffs. Regarding infrastructure, he noted that while proprietary data shows favorable activity, it has not yet materialized into meaningful orders for Enerpac, but the company is well-positioned to meet future demand. CFO Darren Kozik shared his positive initial impressions after two months, highlighting the company's culture of continuous improvement, the power of the Enerpac brand, and the strength of the leadership team.

Ross Sparenblek from William Blair sought clarity on the fiscal 2025 organic growth guidance, asking about underlying assumptions for market growth, pricing, and geographic performance. He also questioned the drivers of the adjusted EBITDA margin guidance, including the dilutive impact of the DTA acquisition, and inquired about the levers available to reach the 2026 free cash flow conversion target.

Answer

President and CEO Paul Sternlieb explained the guidance assumes a low single-digit market decline, which Enerpac expects to outperform through commercial execution, muted but necessary pricing actions, and new product launches, with a typical second-half weighting. He clarified that without the DTA acquisition, the company would have guided for a 50 basis point margin expansion. Interim PFO Shannon Burns added that the PEP continuous improvement program will also drive productivity. Regarding cash flow, Paul Sternlieb pointed to ongoing working capital optimization and inventory management as key levers, while noting that higher one-time CapEx for the new headquarters will be a factor in fiscal 2025.

Ross Sparenblek asked for clarification on the various factors impacting MSA Safety's gross margins, including the cross-currents of FX (transactional risk), general inflation, and the increasing impact of tariffs, and inquired about specific inflationary pressures. He later followed up on MSA Safety's price dynamics, inquiring about year-to-date pricing across segments and whether increases were broad-based or selective. He also sought clarification on the fire service pipeline's potential growth contribution into 2026 and the growth split between fixed and portable detection.

Answer

Julie Beck, Senior Vice President and CFO, explained that gross margins faced pressure from negative transactional FX, overall supply chain inflation (including wage inflation across tiers, electronic components, and metallics), and a more noticeable tariff impact in Q3 2025. Steve Blanco, President and CEO, outlined targeted price increases in H1 2025 (U.S.), summer (Asia), and October (broad-based), anticipating a return to a normal January 1 pricing cycle, alongside efficiency efforts. Ms. Beck noted that Q3 organic growth was primarily price-driven and projected sequential margin improvement from Q3 to Q4 due to pricing. Mr. Blanco explained that Q4 fire service pressure would shift into 2026, with overall demand remaining strong and 2026 expected to be consistent with 2024/2025, with a potential uptick in the latter half of the decade. He also specified double-digit growth for fixed detection and single-digit growth for portable detection, driven by connected solutions.

Ross Sparenblek inquired about the growth breakdown between fixed and portable gas detection, the sustainability of this momentum, and asked for clarification on several moving parts affecting the Q2 outlook, including a tariff-related pull-forward and a significant backlog comparison.

Answer

President and CEO Steven Blanco confirmed strong double-digit growth in both fixed and portable detection, driven by the ACCELERATE strategy and global energy segment demand, noting that high single-digit growth for the full year is achievable. Interim CFO Elyse Brody quantified the Q1 pull-forward at just under $10 million, highlighted the tough Q2 comparison due to a $40 million backlog conversion in the prior year, and confirmed a European ballistics order will support the International segment in the second half.

Ross Sparenblek inquired about the cadence of order firming into January, the potential for deferred SCBA orders ahead of the new NFPA standard, and the competitive dynamics of the large MSA+ connected worker order.

Answer

Steven Blanco, President and CEO, noted that after a slower December, the order pace in the new year has been solid, particularly in detection. He acknowledged caution around the NFPA standard change, stating that while some customers will wait for the new standard, a good base of business will not. Blanco also confirmed the large MSA+ order was a significant competitive conversion from a major energy customer in North America.

Ross Sparenblek of William Blair & Company asked about the drivers of end-market demand and order growth, the potential 2025 comp impact from large orders, the competitive pricing environment in international fire markets, and the unit run-rate for portable gas detection.

Answer

President and CEO Steven Blanco described overall demand as healthy and noted strong market share, particularly in international fire. SVP and CFO Lee McChesney clarified that strong Q3 order growth was broad-based and excluded the Air Force order booked in Q2. Regarding 2025, Blanco reiterated commitment to long-term targets. He also stated that in international fire, many customers prioritize functionality over price. For portable detection, he noted unit volumes are significantly higher than estimated, with growth accelerating in connected platforms.

Ross Sparenblek, on behalf of Brandon Vafniz at William Blair, asked about the sustainability of the strong growth in U.S. Pet Health, the role of innovation in that growth, and management's characterization of the underlying health and demand trends in the broader pet market.

Answer

President and CEO Jeffrey Simmons expressed high confidence in sustained U.S. Pet Health growth, attributing it to a multi-year strategy of building commercial capabilities, a dynamic sales force, and strong distributor relationships. He stated that while innovation is key, the team is also building out the entire portfolio. Simmons characterized the broader pet market as having a strong backdrop, supported by rising pet numbers, improving compliance, globalization, and the willingness of younger generations to spend, which insulates the industry from lower vet visits.

Ross Sparenblek of William Blair & Company, L.L.C. asked about the potential impact of SKU rationalization on the second-half organic revenue decline. He also sought clarity on the status of channel destocking across key end markets and questioned the drivers behind the implied 35% decremental margin in the second-half guidance, noting it was higher than historical levels.

Answer

President, CEO & Director Jag Reddy stated that channel inventories in construction and agriculture are largely aligned with end-user demand, with powersports having less than a quarter of destocking left. CFO Rachele Lehr addressed the margin question, attributing the high implied decremental margin to the significant volume decline impacting fixed cost absorption, but affirmed that margins are expected to normalize as volumes recover. Jag Reddy was not aware of a specific SKU rationalization impact and offered to follow up.

In a follow-up, Ross Sparenblek of William Blair & Company asked for an update on the $100 million new business target, including year-to-date progress and customer mix. He also probed the confidence level in achieving the 2026 revenue targets and inquired about the company's M&A priorities.

Answer

Executive Jagadeesh Reddy reported booking $35 million to $40 million in new business by the end of April, putting the company ahead of its $100 million annual target. He reaffirmed a line of sight to the low end of the 2026 revenue range, contingent on no major recession or EPA rule changes. Regarding M&A, Reddy outlined the top priorities as: 1) end-market diversification, 2) accretive margin profiles, and 3) geographic expansion within the U.S., particularly in the Southern states.

Ross Sparenblek then asked about the M&A pipeline and the prioritization of in-market diversification versus geographic reach or additional manufacturing capabilities.

Answer

CEO Jag Reddy stated that the priority for M&A is diversification, followed by accretive margin profile, and then geographic exposure within the US.

Ross Sparenblek of William Blair & Company, L.L.C. sought details on the new Olympus VMAX cooling solution, including its product configuration, expected sales mix between dry and adiabatic versions, and SPX's competitive positioning in the data center market.

Answer

President & CEO Gene Lowe clarified that the Olympus VMAX is a modular product available in both dry and adiabatic configurations, with both already launched. He estimated a potential sales mix of two-thirds adiabatic to one-third dry. Lowe asserted a strong competitive position based on modular design, proprietary high-uptime mechanical equipment, and upcoming CTI performance validation.

Ross Sparenblek of William Blair asked for clarification on the organic versus acquisition-related contribution to the Detection & Measurement (D&M) segment's strong order growth, questioned the underlying drivers for the CommTech platform's sustained performance, and sought an explanation for the slight reduction in the full-year D&M margin guidance despite a strong Q1.

Answer

Chief Financial Officer Mark Carano clarified that of the 56% sequential backlog growth in D&M, 34% was organic and 22% came from the KTS acquisition. President and CEO Eugene Lowe attributed CommTech's strength to its battlefield applications, such as drone tracking, and synergies from the KTS acquisition. Mark Carano explained the D&M margin guidance adjustment, noting that Q1 benefited from an unexpectedly high-margin software project, the benefit of which will be offset by tariff impacts and the timing of lower-margin projects through the rest of the year.

Ross Sparenblek inquired about demand dynamics between different HVAC cooling products, progress on absorbing the Springfield facility's capacity, and the drivers for the high and low ends of the HVAC margin guidance. He also asked about the heating business, noting the abnormally cold winter.

Answer

CEO Eugene Lowe described cooling demand as healthy and noted that for the Engineered Air Movement business, the primary challenge is meeting strong demand through production expansion. He confirmed the Springfield facility has ramped up rapidly with more room to grow. Executive Paul Clegg stated that hitting the low end of the HVAC margin range would be due to lower top-line growth and absorption. He also clarified that Q4 2024 was warm, but colder weather in January 2025 has led to stronger Q1 bookings for the heating business.

Ross Sparenblek inquired about the unexpected flat growth in the boiler business, questioning the impact of a slow start to the heating season and distributor inventory management on the Q4 outlook.

Answer

CEO Eugene Lowe explained that a slower start to the heating season and normalized lead times led distributors to manage inventory more prudently. He noted the business is 80% replacement and will ramp up with colder weather, adding that Q4 guidance accounts for this delayed start. Executive Paul Clegg specified that the flatness is more pronounced in the residential replacement market, while the commercial side remains stronger.

Ross Sparenblek of William Blair & Company, L.L.C. inquired about the sustainability of the current demand environment, asking for confirmation on expected sequential order improvement and whether the Q2 equipment order level represents a new run rate. He also questioned the drivers behind the recent strength in parts and consumables revenue and its potential sensitivity to a future capital equipment cycle. In a follow-up, he asked about the updated impact of tariffs compared to prior guidance, the outlook for SG&A as a percentage of sales, and the revenue mix of recent acquisitions.

Answer

EVP & CFO Michael McKenney confirmed expectations for a strong third and fourth quarter, particularly in the fiber processing product line. He attributed the strength in parts and consumables to the aging installed base rather than restocking, viewing the current revenue level as largely sustainable with a potential modest seasonal dip. President & CEO Jeffrey Powell added that as economic conditions improve and new capital equipment comes online, overall operating rates typically increase, which should support continued aftermarket demand. McKenney later clarified that the full-year tariff impact remains consistent with prior guidance at around $0.32 to $0.39 per share. He guided SG&A to be around 28% of sales and noted the recent acquisitions are more weighted towards capital equipment.

Ross Sparenblek of William Blair & Company inquired about the capital equipment order book, seeking clarity on the nature of project deferrals, the risk of further delays into 2026, and the overall strength of the project funnel. He also asked about the current maintenance cycle, the age of the installed base, and whether the company still anticipates 10-20% order growth for capital equipment in 2025.

Answer

President and CEO Jeffrey Powell explained that recent tariff uncertainty has caused a pause in capital project decisions, leading to delays rather than cancellations. He noted that these timing shifts could push revenue recognition into 2026. Powell emphasized that the project funnel remains strong, driven by pent-up demand from what he termed a 'capital equipment recession' over the past few years. He added that the record aftermarket parts business is a direct result of customers running older, 'tired' equipment, which will eventually necessitate new capital investments.

In a follow-up, Ross Sparenblek asked about margin sensitivities, specifically the current state of the parts and consumables restocking cycle and the primary focus for the 80/20 program in 2025. He also inquired about the internal assumptions for the parts versus capital mix in the 2025 guidance.

Answer

Jeffrey Powell, President and CEO, stated that the destocking cycle has played out and strong parts demand is now driven by aging equipment. He confirmed the 80/20 program is a continuous effort with several new company rollouts planned for 2025. Michael McKenney, Executive, added that recent acquisitions are a key driver of the higher parts mix and that the company projects a 67% parts and consumables mix for 2025, up from 66% in 2024.

Ross Sparenblek of William Blair requested the quarter-end backlog figure, clarification on order expectations, details on price versus volume in capital equipment, the mix of greenfield versus maintenance activity, and an update on regional utilization rates for the parts and consumables business.

Answer

Michael McKenney, Executive, reported the Q3 ending backlog at $285 million and confirmed that Q4 guidance implies further consumption of the backlog. CEO Jeffrey Powell noted that capital activity is mostly replacements and repairs, with the OSB market being an exception with some greenfield projects. He highlighted that the growing percentage of paper made from recycled fiber is a key driver for the parts business. Powell also provided regional utilization estimates, noting North America has held up best, Asia remains slow, and Europe is in between.

Ross Sparenblek asked for clarification on the potential one-time and ongoing dissynergies from the spin-off, the tax benefits compared to a sale, and the M&A pipeline and capital allocation priorities for the remaining company.

Answer

Executive Timothy FitzGerald stated that dissynergies are expected to be minimal due to Middleby's decentralized operating model and that the tax-free spin is intended to maximize long-term shareholder value. For the remaining company, he noted M&A will focus on the ice and beverage platform and technology, balanced with share repurchases. Executive Bryan Mittelman mentioned that specific costs would be detailed in future quarters.

Ross Sparenblek of William Blair asked for an update on deployment lead times and the mix of fixed-cost versus cost-plus contracts in the backlog, particularly regarding tariff pass-throughs.

Answer

CFO Carol Hibbard stated that lead times have not changed significantly recently, with current deployments averaging around 24 months, though the company sees a path to shortening this. She explained that contract types vary, but items like tariffs are typically pass-throughs. For long-term agreements, such as with Walmart and GreenBox, the contracts are already in place and not subject to change.

Ross Sparenblek asked for clarification on the new GreenBox facility in Georgia, questioning if it was for an existing customer, and inquired about the financing and CapEx implications of the GreenBox initiative.

Answer

CEO Richard Cohen clarified that the Georgia GreenBox is being built speculatively without an anchor tenant to serve as a multi-tenant facility, with active customer recruitment underway. He added that the recent uptick in CapEx is driven by both GreenBox infrastructure needs and continued R&D investments.

Inquired about the size and geographic source of the poultry order recovery, the reasons for JBT's outperformance vs. Marel, the status of regulatory approvals for the Marel merger, and the potential for upward revisions to synergy targets.

Answer

Poultry orders increased by $10-15M QoQ in North America, with strength also in Asia and Europe. JBT's focus on downstream equipment explains some difference from Marel. The only remaining regulatory approval is Australia, with a full green light expected by end of November. The company is sticking to its $125M synergy target for now, noting Marel's margin improvement will also be driven by volume recovery.