HST Orders and Market Outlook
Q: Is there improvement in HST orders indicating market recovery?
A: Yes, HST orders grew 20% organically, with about half from blanket orders and half from straight demand. " Life sciences remain stable, and we're seeing sequential improvement in semiconductor markets, though not yet at an inflection point. " The segment posted the highest order number for the year and built some backlog, signaling optimism as we move away from baseline stability. "

Future Growth Expectations
Q: How do you view growth after market recovery and impact of portfolio reshaping?
A: With our portfolio increasingly weighted toward faster-growing markets, especially in HST which is becoming our largest segment, we expect to be a mid-single-digit organic grower plus. " Adding inorganic growth from acquisitions could take us to higher single-digit growth. " This should result in strong flow-through due to high-margin businesses, leading to double-digit earnings expansion. "

HST Margins and Acquisitions
Q: How will margins in HST be impacted by subsegments and acquisitions like Mott?
A: HST margins were down 40 basis points year-over-year on a 5% organic sales decline, demonstrating effective cost management. " With the Mott acquisition starting at low 20% EBITDA, we have a clear plan to generate 400 to 600 basis points of margin improvement in the next 12 to 18 months. " Coupled with future organic growth, we expect HST to become a low 30% EBITDA business. "

Energy Market Softness in FMT
Q: What dynamics are affecting energy markets in FMT, moving from stable to soft?
A: The softness is partly due to prior backlog normalization and partly market pressure. " We focus on downstream work in energy, and overhang from a really warm winter has affected the sector. " Going forward, overall health of the energy sector will influence CapEx deployment downstream, benefiting our business if conditions improve. "

Progress on Mott Acquisition
Q: Is the Mott acquisition integration ahead of schedule, potentially pulling forward accretion targets?
A: While it's early days, only six weeks into the acquisition, integration is progressing well. " The reality matches our expectations, and we're pleased with the fast integration of teams. " However, it's too soon to adjust accretion targets for 2025 versus 2026. "

Geographic Trends
Q: Are there meaningful differences in trends between domestic and international markets?
A: North America is leading significantly, driving much of our performance. " Europe shows reasonable stability but lags behind. " India is performing very well, though it's a smaller part of IDEX. " China trails but remains positive for us, as we take a selective approach in that market. " "

Supply Chain and Tariffs Preparedness
Q: How are you positioned if tariffs return, and how is supply chain resilience?
A: We're more localized in ideation and production, reducing cross-border dependencies. " While some base-level commodities involve cross-border shipments, much of our work is within country, which positions us well against potential tariff impacts. "

Buyer Behavior and Channel Inventory
Q: Has channel inventory liquidation run its course, affecting 2025 outlook?
A: Inventory dynamics in HST have improved, suggesting we're moving from stability toward growth. " While the rate of inflection remains uncertain, positive order patterns across the life sciences indicate a better position heading into 2025. "

EBITDA Bridge and Investments
Q: What's behind the $12 million resource investment and discretionary expense increase?
A: The $12 million headwind comprises one-third higher M&A spend due to the Mott acquisition, one-third related to timing of stock compensation, and the rest from discretionary spending on customer-facing travel and growth initiatives. "

Digital Transformation Efforts
Q: How are you evolving operations with the shift from analog to digital processes?
A: We're scaling digital initiatives, especially in FMT, enhancing customer interactions and leading in knowledge transfer automation. " In our fire and water businesses, we're integrating digital functionality to improve offerings and address industry challenges. "