Organic Revenue Growth

FY 2025

mid-single-digit range "

mid-single-digit range " "

no change

Adjusted EBITDA Margin

FY 2025

24% "

24% " "

no change

Capital Expenditures

FY 2025

7% to 8% of revenue "

7% to 8% of revenue " "

no change

Effective Tax Rate

FY 2025

26% (vs 16.9% in FY 2024) "

26% (vs 16.9% in FY 2024) " "

no change

Tariff Uncertainty and Demand Pull-Forward Effects

In Q3 2024, executives referenced tariff uncertainty in the context of a consistent business environment and noted a surge in demand in certain segments; in Q1 2025, pull‐forward activity was highlighted—especially in Consumer—due to anticipated tariff impacts and then a normalization beginning. " " " "

In Q2 2025, the company emphasized that while tariff uncertainty continued to influence customer behavior, the demand pull‐forward effects had largely normalized, with customers expected to resume typical responses as certainty returned. " " "

There is a shift from tariff‐induced surge and pull‐forward effects in earlier periods to normalization and a more balanced outlook as market certainty returns.

Pricing Strategy and Margin Enhancement Initiatives

In Q3 2024, the discussion focused on value‐based pricing using tools like Oracle CPQ and highlighted organic revenue growth supported by both price and volume; in Q1 2025, pricing initiatives and operating leverage were noted as key drivers for margin expansion and revenue contributions. " " " " "

In Q2 2025, pricing strategy was reinforced with the ongoing implementation of a CPQ system and the launch of a Pricing Center of Excellence, while margin enhancement continued through operational leverage and strategic investments. " "

There is continued refinement of pricing practices with new technology integration, supporting steady margin improvement and growth performance.

Implementation of CPQ System and Pricing Center of Excellence

In Q3 2024, the Oracle CPQ system had been fully implemented with a global Salesforce instance and an emphasis on training the sales team; Q1 2025 did not mention this system explicitly " [N/A].

In Q2 2025, the company revisited this initiative as a comprehensive transformation of pricing processes involving embedded analytics and process changes to drive value‐based pricing. "

The topic has re-emerged in the current period with deeper integration and transformation despite its previous implementation, showing a renewed emphasis on pricing process refinement.

Global Expansion, Lab Investments, and Disciplined M&A Activity

In Q3 2024, global expansion was demonstrated by investments in battery labs across regions and a disciplined acquisition (TesTneT) to support new strategic areas; in Q1 2025, expansion moved into HVAC testing and additional lab capacity with strategic capital expenditures. " " " "

In Q2 2025, global expansion continued with the launch of a European Advanced Battery Testing Lab, further lab capacity enhancements in multiple regions, and a continued disciplined approach to M&A to optimize the portfolio. " " "

There is a consistent and broadening global growth strategy that builds on previously established expansion efforts, with a clear focus on lab investments and targeted M&A activity.

Industrial Segment Growth Driven by Megatrends

In Q3 2024, the Industrial segment was highlighted for strong organic revenue growth driven by electrification, energy transition, digitalization, and the emergence of data center needs; in Q1 2025, moderate growth was noted with capacity expansion aligned to these megatrends. " " " "

In Q2 2025, the Industrial segment reported accelerated revenue and margin improvements—with investments in new lab facilities and a clear emphasis on energy, automation, and emerging digital trends—further reinforcing the company’s positioning in these areas. " " " "

The focus on megatrends has become more pronounced and financially impactful over time, showing increasing strategic investment and performance improvement.

Advisory and Software Segment Performance Challenges

In Q3 2024, performance challenges were noted with underperformance in EBITDA and a modest decline in advisory services despite some software strengths; in Q1 2025, the software side experienced robust organic growth while advisory remained lumpy due to market headwinds. " " " "

In Q2 2025, the segment continued to show a mixed picture—with steady but moderated software growth and persistent challenges on the advisory front contributing to a slight decline in adjusted EBITDA margins. "

The challenges remain persistent for the advisory side even as software performance shows a gradual improvement, indicating a need for continued transformation in the segment.

Consumer Market Volatility and Deceleration Concerns

In Q3 2024, the Consumer segment delivered strong organic growth (around 9.2%) driven by a surge in demand for new product offerings; in Q1 2025, robust growth—partly influenced by tariff-related pull-forward effects—was anticipated to moderate in the following quarter. " " " "

In Q2 2025, the company acknowledged a normalization in consumer growth, with softer-than-expected order volumes early in the quarter and the pull-forward effect having subsided, leading to more balanced performance. " " " "

The initially buoyant consumer performance driven by macro factors is now stabilizing, reflecting a transition from short-term volatility to a normalized market outlook.

Global Macroeconomic and Geopolitical Risks

In Q3 2024, this topic was not mentioned; in Q1 2025, the company introduced discussions on uncertainties in the macro and geopolitical environment while emphasizing business resilience and monitoring key indicators. " " "

In Q2 2025, the company continued to monitor these risks closely, highlighting a diversified business model and maintained full-year guidance despite the dynamic geopolitical and economic environment. " " "

The topic has gained prominence since Q1 2025, with a cautious but confident approach to balancing risk management amid global uncertainties.

Decline of Sustainability Regulation and Commercial Real Estate Concerns in Advisory

In Q3 2024, there was no discussion on these issues; in Q1 2025, emerging headwinds were noted in the Advisory segment, with sustainability regulation shifts and commercial real estate concerns impacting renewables and healthy buildings offerings. "

In Q2 2025, these concerns persisted as the decline in sustainability regulation (notably around CSRD) and pressures in the commercial real estate market continued to affect advisory services. "

Newly emerged challenges in regulatory and commercial real estate areas have continued into the current period, posing ongoing headwinds for the Advisory segment.