Test & Measurement

Faced weaker demand and backlog reduction; synergy benefits noted; recovery shifted to second half of 2025. " " " " " " " " " " " " " " "

Expected mid-single-digit sales growth and high single-digit order growth in 2025; segment EBITDA margin at 24% aided by $100M synergies. " " " " "

Consistently mentioned with improving outlook and continued synergy execution.

Discrete automation

Experienced softness with orders down mid-single digits, slower recovery expected; signs of positivity by Q4 or early 2025. " " " " " " " " " "

Orders turned positive in Q4; recovery expected in 2025. " " " "

Bearish sentiment improving as orders turn positive later than initially forecast.

Semiconductor market

Listed as a weak spot delaying T&M recovery, with optimism for turnaround in 2025. " " " " " " "

One of four T&M markets showing good momentum; appears to have bottomed, supporting H2 2025 recovery. " "

Sentiment shifting from weak to improving as bottoming signals emerge.

Chemical market

Varied performance: strong in Q2, weaker in Q3, and anticipated to pick up globally. " " " "

Continues to be weaker in China; potential recovery expected in 2025, especially in the Middle East. " " "

Mixed mentions but with an expectation of improving demand next year.

Process & hybrid markets

Consistently strong, driven by energy, LNG, sustainability, and capital investments; mid-single-digit order growth persisted each quarter. " " " " " " " " " "

Grew mid-single digits for the year; active in LNG, decarbonization, life sciences; expecting moderated but sustained growth. " " "

Stable strength across all quarters, supported by secular drivers.

Aerospace & Defense (ADG)

Generally strong due to government spending; noted as a bright spot within T&M. " " No mention in Q1. "

Among three T&M markets with favorable momentum; contributes to H2 2025 recovery. "

Consistent positivity within T&M, continuing to offset weakness elsewhere.

Industrial automation

Faced discrete market challenges; process and hybrid businesses performed better; delayed recoveries in factory automation segments. " " " " " "

Emphasized software-defined automation strategy; alignment with AspenTech for enterprise control solutions. "

Continued focus on software integration despite slower discrete recovery.

China market outlook

Reported sluggish performance across most segments; recovery timing pushed out, especially for T&M. " " " " "

-3% in 2024; chemical and discrete both weak, with expected low to mid-single-digit growth in 2025. " " "

Sentiment remains cautious but forecasts modest rebound next year.

Operating leverage & margin

Ranged from mid-30s to high-40s; improved gross margins above 50%; synergy actions drove higher profitability. " " " " " " " " " "

FY24 leverage at 47% (ex-T&M); 26% adj. segment EBITDA margin; mid-40s leverage expected in 2025. " " "

Sustained margin expansion with synergy-driven leverage.

Free cash flow

Strong FCF performance each quarter; year-end targets consistently raised due to higher earnings and improved working capital. " " " " " " "

$2.9B in FY24 (16.6% margin), up 23% y/y; guiding $3.2–3.3B in FY25. " " "

Persistent improvement with robust returns to shareholders.

Acquisition synergies

NI synergy guidance increased during the year; AspenTech synergy focus on integrated software solutions for sustainability, process industries. " " " " " " " " " "

National Instruments: $100M realized in 2024, targeting $200M over three years. AspenTech: integration for cost efficiencies, neutral EPS impact in 2025. " " " " " "

Accelerated cost synergy actions; continued integration efforts.

Backlog levels & order funnel

Generally strong backlog with seasonal fluctuations; $7.4B in Q3, also stable in Q2–Q1; funnel repeatedly expanded with substantial project wins. " " " " " " " " "

Backlog at $7.2B entering FY25, T&M at $400M. Large project funnel at $11.2B, driven by LNG, life sciences, sustainability. " " " "

Stable backlog with growing large-project pipeline.

Sustainability & decarbonization

Consistent references to biofuels, hydrogen, carbon capture, and broader energy transition projects across quarters. " " " " " " " "

Major focus on carbon capture (e.g., Orthos North Sea) and other energy transition segments. " "

Continual emphasis as a top growth driver.

Regional project activity

Similar outlook: Middle East LNG momentum, Europe energy and sustainability, North America life sciences projects; stable or growing each quarter. " " " " " " " " " "

Middle East spurred by LNG and chemicals; North America strong in power/life sciences, paused LNG awards; Europe invests in energy transition. " " " " "

Robust across geographies driven by large-scale projects and sustainability.

Energy security & digital transformation

Cited in Q1 and Q2 as macro drivers supporting growth, particularly in LNG, process industries, and digital solutions. " " " " " "

Highlighted as secular trends driving automation and MRO demand; focus on digitalization for plant efficiency. "

Reaffirmed as core themes underpinning multi-year growth.

MRO business

Consistently near mid-60s mix; slightly softer in North America in Q3 but generally robust. " " " " " " " "

Stable at ~64% of sales, driven by capital/MRO investments in multiple verticals. "

Remains a steady base of revenue with modest fluctuations.