Net Sales

+1.7% (from $800.5M in Q1 2024 to $814.3M in Q1 2025)

Modest sales growth indicates that price capture and/or modest volume gains helped push revenues higher despite challenging conditions, reflecting continuity from prior strategies that offset previous market headwinds. " "

Net Income

–21% (from $121.3M in Q1 2024 to $95.4M in Q1 2025)

The significant decline in net income is driven by a combination of lower operating income and the steep rise in operating expenses, including a substantial increase in interest expense, which magnified the decline seen in the previous period. " "

Operating Income

–12% (from $161.2M in Q1 2024 to $142.0M in Q1 2025)

A decrease primarily due to higher operating costs and margin pressures—despite modest revenue gains, cost increases (from both cost of sales and SG&A expenses) have eroded earnings, continuing trends observed in the prior period. " "

Interest Expense

+71% (from $9.4M in Q1 2024 to $16.1M in Q1 2025)

A sharp increase caused by heightened debt levels used to finance strategic acquisitions, placing additional interest burden on the company; this follows prior period debt-financing that has now materialized as a major expense driver. " "

Basic EPS

–21% (from $1.60 in Q1 2024 to $1.26 in Q1 2025)

The drop in EPS reflects the combined effect of lower net income and increased financing costs, mirroring the operational and cost pressures noted in earlier periods; it emphasizes the dampening impact of rising interest expense and operating cost inflation on shareholder earnings. " "

Operating Cash Flow

–32% (from $156.6M in Q1 2024 to $105.7M in Q1 2025)

Cash flow from operations fell sharply due to increased working capital requirements—such as higher inventories and receivables—and timing issues in customer deposits and project deliveries which were less favorable than in the prior period, further exacerbated by the lower operating income. " "

Balance Sheet – Total Assets

+15% (from $5,889.4M in Q1 2024 to $6,795.1M in Q1 2025)

The rise in total assets is mainly attributable to acquisition-related growth (reflected in higher goodwill and related assets) as well as organic balance sheet expansion through increased current assets such as receivables and inventories, building on trends established in the previous period. " "

Organic Revenue

Q2 2025

3% to 4% decline "

Flat to 2% "

raised

Adjusted EBITDA Margin

Q2 2025

24.1% to 24.5% "

26.5% to 27% "

raised

Adjusted EPS

Q2 2025

$1.60 to $1.65 "

$1.95 to $2.05 "

raised

Organic Growth

FY 2025

1% to 3% " "

1% to 3% "

no change

Adjusted EPS

FY 2025

$8.10 to $8.45 "

$8.10 to $8.45 "

no change

Tariff Impact

FY 2025

no prior guidance

$100 million annualized; $60–65 million recognized in 2025 "

no prior guidance

Cost Management and Pricing Power

In Q4 2024, discussions focused on operational productivity, platform optimization, and achieving a price/cost spread with targeted savings (e.g. $80 million benefits). " " In Q2 2024, cost management was highlighted through improved gross margins and productivity despite challenges. "

Q1 2025 details proactive cost management with a targeted additional $20 million in savings to address potential 3–4% volume declines and emphasizes incremental pricing increases to offset tariffs. " " " " "

Recurring with expanded focus. The earlier emphasis on productivity is now accompanied by more quantitative targets and proactive scenario planning.

Order Trends

Q4 2024 highlighted strong organic order growth across segments with blanket orders boosting visibility. " In Q2 2024, orders experienced mixed dynamics with cyclicality and slight declines in some segments. " "

Q1 2025 reports record-level orders with sequential and year-over-year increases, confirming continued strength and portfolio shaping. " " " "

Recurring with improved sequential performance. The consistent focus on orders is now reinforced by record levels and enhanced visibility into future shipments.

Demand Uncertainty

In Q4 2024, macroeconomic and geopolitical factors, including election-related policy uncertainty, drove an “uncertain optimism” and caution in project spending. " " In Q2 2024, customers delayed projects due to economic and political uncertainty. " "

Q1 2025 continues to confront policy-driven uncertainty and customer hesitancy—especially for larger projects—while proactively mitigating risks with cost savings targets. " " " "

Recurring with continued caution. Although uncertainty remains, Q1 2025 depicts proactive measures to counterbalance potential demand declines.

Strategic Integration

Q4 2024 emphasized building scale through thematic integration, horizontal organization, and delayering initiatives to drive productivity. " " " In Q2 2024, integration was noted as part of a broader strategy accompanying well-aligned acquisitions. " "

Q1 2025 discusses strategic integration that enhances collaboration between groups (e.g. Performance Pneumatics with Airtech and Mott’s technology) to drive sustainable growth and innovation. "

Recurring with emphasis on synergy. The focus on integration is evolving into creating scalable, synergistic benefits without added bureaucracy.

Mott Acquisition

In Q4 2024, the acquisition of Mott was portrayed as a landmark deal with significant financial impacts and EPS accretion. " " " " Q2 2024 presented Mott as a strategic fit that strengthens capabilities and organic growth. " "

Q1 2025 highlights the success of the Mott acquisition through a $40 million multiyear contract and recurring revenue from consumables in semiconductor MRO, mitigating sector headwinds. " " " "

Recurring with positive post-acquisition performance. Early challenges have given way to tangible contract wins and enhanced strategic value.

Tariff Impact and Pricing Pressure

In Q4 2024, tariffs were mentioned as a risk mitigated by localized sourcing and a built-in price/cost spread, though figures were not detailed. " " Q2 2024 did not provide explicit tariff figures but noted price capture and spreads. "

Q1 2025 offers a detailed view with tariffs expected to have a $100 million annualized impact, adding 5–6% inflation on costs offset by 3–4% price increases, showcasing robust mitigation strategies. " " " " "

Recurring with greater emphasis. The topic now features quantitative metrics and sharper pricing actions compared to earlier, reflecting a more proactive stance.

Semiconductor Business Outlook

Q4 2024 projected a second-half recovery with inventory adjustments and long-term growth prospects. " " " Q2 2024 reported project delays and deferrals in semiconductor orders, with optimism for 2025 progress. " " "

In Q1 2025, the outlook is mixed; headwinds persist in wafer fabrication while MRO-oriented contributions and Mott’s support help stabilize the business. " "

Recurring with an evolving mix. The outlook has shifted from a reliance on large orders to a stabilization driven by recurring revenue in MRO segments.

Health & Science Technologies (HST)

Q4 2024 showed strong organic order growth and delivered significant projects despite flat sales, whereas Q2 2024 noted an 11% organic sales decline and challenges in Life Sciences & Analytical Instrumentation. " " "

Q1 2025 reveals a modest sales decline (–1%) but a 3% increase in organic orders and robust adjusted EBITDA margins, indicating early signals of recovery. " "

Recurring with improved signals. Although challenges remain, performance metrics in Q1 2025 hint at a turnaround relative to earlier mixed results.

Fluid & Metering Technologies (FMT)

Q4 2024 indicated low single-digit organic growth in orders and flat full‐year sales, with cyclical pressures from agriculture and semiconductor equipment. " " Q2 2024 reported a 4% decline in orders with flat sales and margin pressure from cost challenges. " "

Q1 2025 shows further declines with a 4% drop in organic sales and a 3% drop in orders, accompanied by an 80 basis point decrease in adjusted EBITDA margin. "

Recurring with persistent challenges. The segment continues to face cyclical and market pressures with slightly deteriorating margins and performance compared to previous periods.

Economic and Geopolitical Uncertainty

In Q4 2024, uncertainties linked to U.S. elections and global trade policies were described as “uncertain optimism,” with mitigation through localized operations. " " " Q2 2024 highlighted delays in project approvals and pullbacks in spending due to these uncertainties. " "

Q1 2025 continues to deal with economic and geopolitical uncertainty—the tariff impact is quantified and proactive cost and inventory measures are in place to address these risks. " " " "

Recurring with continued caution. While uncertainty persists, Q1 2025 demonstrates a proactive approach to mitigate impacts more directly than in earlier periods.