Margin Expansion
Q: Is ITS Q1 margin the right base?
A: Management is pleased with the solid gross margin expansion in ITS, driven by innovative value activities and restructuring benefits. Full-year margins are expected to expand more than 100 basis points, ahead of previous targets, but they foresee moderation in margin expansion levels as the year progresses.

Orders Outlook
Q: How are orders trending, especially in China?
A: Orders are expected to improve sequentially in Q2 but face challenging year-over-year comparisons due to strong prior-year results in China and large projects. April orders were in line with expectations, with China being a headwind, but EMEA and the Americas performing better. Management is encouraged by increased funnel activity and MQL trends across regions.

ILC Dover Acquisition
Q: What strategic opportunities does ILC Dover provide?
A: The acquisition of ILC Dover provides a strong life sciences platform and access to new customer bases. Products are transferable, allowing penetration into biopharma markets with existing technologies like peristaltic pumps. ILC Dover's expertise in containment and clean room facilities opens opportunities for revenue synergies, expanding the addressable market by approximately $10 billion. Management is excited about bolt-on potential in both life sciences and space sectors.

Large Project Orders
Q: What's the outlook for large project orders?
A: Large project orders are primarily affected by timing issues rather than market difficulties. While renewable natural gas and electric vehicle investments saw rapid growth early last year, current funnel activity remains strong. Management anticipates more projects coming through in EMEA due to reshoring and initiatives like the European Chips Act, as well as investments in the Middle East and India.

Life Sciences Improvement
Q: Are there signs of recovery in life sciences?
A: Management is seeing sequential order improvement in life sciences and is increasingly confident about growth prospects. Conversations with customers reveal interest in new applications and technologies, and recent biotech funding adds to the positive outlook.

M&A Pipeline
Q: What's the status of the M&A pipeline and future deals?
A: The M&A pipeline is strong, bolstered by ILC Dover's existing funnel for bolt-ons and tuck-ins, particularly in life sciences. Management continues to track larger acquisitions over $1 billion in purchase price and remains focused on strategic growth through both organic and inorganic means.

Sequential Revenue Growth
Q: Are revenues expected to grow sequentially in Q2?
A: Yes, management expects Q2 revenues to increase sequentially from Q1, with low single-digit organic revenue growth and continued EBITDA margin expansion. Factors include $15 million in orders pushed from Q1 to Q2 and consistent M&A contributions.

MQL Trends
Q: Can you expand on MQL trends and demand indicators?
A: MQL activity showed strong growth, with April MQLs up 14% year-over-year and 9% sequentially from March. The average duration from MQL to order is 6 to 8 weeks, indicating potential improvement in demand in the near term.

Geographical Trends
Q: How is China performing compared to other regions?
A: Despite tough year-over-year comparisons due to rapid expansion in prior periods, the core business in China remains solid with good momentum. Management is encouraged by growth initiatives in Southeast Asia, India, and investment activities in EMEA driven by reshoring and sector-specific acts like the European Chips Act.

ILC Dover Revenue Synergies
Q: What is the potential market size for ILC Dover synergies?
A: While specific revenue synergy figures haven't been disclosed, the acquisition expands the addressable market by approximately $10 billion. Opportunities arise from transferring existing pump technologies into biopharma and accessing new customer bases through ILC Dover's commercial footprint and clean room facilities.