Zach Walljasper

Zach Walljasper, on behalf of Damian Karas from UBS Group AG, asked for clarification on the drivers of the revised EBITDA guidance (FX vs. operations) and questioned the company's pricing strategy in light of tariffs and customer feedback.

Answer

CFO Brooks Mallard clarified that the $15 million midpoint raise in EBITDA guidance was entirely related to a more favorable FX outlook. On pricing, he explained that actions were delayed due to tariff volatility but will result in a sequential bump from Q2 to Q3. He reiterated that the company expects to be dollar-neutral on tariffs by adjusting pricing and operational actions as needed.

Zach Walljasper, on behalf of Damian Karas at UBS Group, asked for a breakdown of the drivers behind the revised EBITDA guidance, specifically between FX and operational factors. He also inquired about the company's pricing actions in response to commodity costs and tariffs, and the resulting customer feedback.

Answer

CFO Brooks Mallard explained that the $15 million increase in the EBITDA guidance midpoint was entirely due to more favorable foreign currency trends. Regarding pricing, he noted that actions were delayed this year to align with tariff impacts and have been adjusted as the situation evolved. The goal remains to be dollar-neutral on tariffs, and the timing of price increases will create a sequential benefit from Q2 to Q3.

Zach Walljasper, on behalf of Damian Karas from UBS Group, asked for a breakdown of the revised EBITDA guidance between FX benefits and operational efficiency. He also inquired about the company's pricing actions in response to commodity costs and tariffs, and the resulting customer feedback.

Answer

CFO Brooks Mallard clarified that the $15 million increase in the EBITDA guidance midpoint was driven by more favorable foreign currency trends. On pricing, he explained that actions were timed to align with tariff impacts and that the company remains focused on being dollar-neutral on tariffs. He noted that pricing will provide a sequential bump from Q2 to Q3.

Zach Walljasper, on behalf of Damian Karas at UBS Group, asked for clarification on the drivers of the revised EBITDA guidance (FX vs. operations) and questioned the company's pricing strategy in light of commodity costs and tariffs.

Answer

CFO Brooks Mallard explained that the $15 million midpoint raise in EBITDA guidance was entirely due to more favorable foreign currency trends expected in the second half of the year. He added that pricing was implemented later than usual to align with tariff impacts, with the goal of remaining dollar-neutral on tariffs, which will result in a sequential pricing benefit from Q2 to Q3.

Zach Walljasper, on behalf of Damian Karas at UBS Group, asked for a breakdown of the revised EBITDA guidance between FX and operations. He also questioned the company's pricing strategy in light of commodity costs and tariffs.

Answer

CFO Brooks Mallard clarified that the $15 million midpoint raise in EBITDA guidance was entirely related to more favorable foreign currency trends expected in the second half of the year. On pricing, he explained that actions were delayed due to tariff volatility but will result in a sequential price increase from Q2 to Q3, ensuring the company remains dollar-neutral on the net tariff impact for the year.