Tony Bancroft • GAMCO Investors

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Chairman, President & CEO Stephen Oswald responded with a 'go, go, go' mentality, stating the long-term strategy is to continue building the portfolio with a higher mix of engineered products and aftermarket content. He emphasized that this is a 'ten year play' that also involves continuous cost reduction and value pricing within its niche contract manufacturing business, with a new long-term vision to be presented in the future.

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President, CEO & Chair Lynn Bamford identified Defense Electronics as the highest priority for M&A, where the company can leverage its global reach and expertise for bolt-on acquisitions. Other priority areas include major naval and aircraft safety systems and commercial nuclear. She noted that commercial aerospace and industrial are lower priorities, emphasizing a focus on differentiated technology and the benefit of diversification in being selective.

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CEO Lynn Bamford responded that while the company remains open to larger acquisitions, any potential deal must be balanced against the management bandwidth required to execute on the significant organic growth opportunities already in front of them, particularly in commercial nuclear and defense electronics. This need to focus on execution slightly shades her thinking but does not take larger deals off the table.

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EVP & CFO Rich Maue provided a direct response, stating that there is no change to the expected timeline. He confirmed that the company still anticipates the PSI transaction to close at the end of the year, around January 1.

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Chairman, President and CEO Max Mitchell expressed optimism, stating that while it's anyone's guess, he believes the issues will get resolved. He emphasized that the global environment is too important for trading partners to disrupt long-term and that a resolution will be very positive for everyone moving forward.

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Chairman, President and CEO Max Mitchell affirmed that the company's strategic planning considers all scenarios, including larger opportunities. While emphasizing that any deal must make strategic sense and be integrable, he stated they have looked at larger assets and would not rule out using equity as currency for the right opportunity. He concluded that they will continue to explore all avenues, including larger synergistic deals, to drive shareholder value.

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CFO Rich Maue confirmed there is no change to the long-term financial targets for A&E and PFT. CEO Max Mitchell added that the M&A funnel is 'very full' and activity has 'never been higher,' supporting the scaling strategy. Regarding Engineered Materials, he reiterated that the business is not strategic and that the company 'will not miss the next cycle' to sell it when the timing is right.

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Co-CEO Victor Mendelson emphasized an opportunistic approach, seeking great businesses even in adjacent spaces. Co-CEO Eric Mendelson added that HEICO's decentralized structure and deep expertise allow it to evaluate and integrate acquisitions effectively, making it an attractive home for sellers who want to continue building their business.

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CEO John Casella affirmed that the company will stick to its core competency in the solid waste sector along the Eastern Seaboard, where it has a pipeline of about $500 million in opportunities, and is not currently considering transformational deals. Executive Ned Coletta added that while the company has $900 million in available liquidity for its near-term pipeline, it remains opportunistic about funding structures, including equity, for the right deals.

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CEO John Casella affirmed that Casella will stick to its core competency and is not pursuing transformational deals, instead focusing on its $500 million pipeline of opportunities along the Eastern Seaboard. Executive Ned Coletta noted the company has $900 million in available liquidity for its near-term pipeline but remains opportunistic about using a mix of debt and equity for the right deals. Casella reiterated that nothing transformational is currently being considered.

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CEO John Casella responded that while the company's primary strategy remains focused on tuck-in acquisitions along the Eastern seaboard, they would not rule out a larger opportunity if one became available. He and President Ned Coletta emphasized that their core focus is on enhancing their integration capabilities and maintaining a unified company culture through significant investments in training facilities and programs to support their substantial growth in headcount.

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CEO Jon Vander Ark outlined a multi-faceted growth strategy based on gaining share in the Recycling & Waste and Environmental Solutions markets, supplemented by a third growth engine in sustainability innovation. He emphasized that growth will come from organic initiatives, pricing, and M&A. While the business is recession-resilient, he acknowledged that the macro environment is the primary external factor they monitor, but they remain committed to investing through the cycle.

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CEO Jon Vander Ark stated that while the company evaluates all opportunities, its strategy is not dependent on a large, transformational deal. He emphasized that the primary focus remains on driving value through small- to medium-sized acquisitions and strong organic execution, though they would consider a large opportunity if one arose.

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