Question · Q3 2025
Shigeru Sakato followed up on the 80/20 initiatives discussed at Investor Day, specifically asking about opportunities to prune the portfolio on the edges and the company's strategy for morphing the portfolio towards more secular-based end markets.
Answer
Lori Koch, CEO, mentioned Beth Ferreira's deployment of the 80/20 framework in diversified industrials to improve margins. She also stated the goal to shift the portfolio from 50/50 (healthcare/water vs. diversified) to two-thirds/one-third in favor of secular-based, mid-single-digit growth markets, without specifying which businesses would be pruned.