Brian Drab

Jagdfeld said hyperscaler testing shows Generac at or better than competitive specs at certain nodes, with 40- to 45-week lead times versus 70 to 80 weeks elsewhere.

York confirmed HSB growth concentrated in H2 on easy comps (no season in H2 2025). Half of full-year growth from price (new product line + tariff carryover). Aaron noted Q2 is first test of new lead pool system; modeling historical close rates conservatively.

York quantified data center EBITDA margins at mid-teens in 2026 (ramp-up costs), improving to high-teens (17-18%) in 2027-2028 as scale builds. Aaron noted vertical integration opportunities could improve further via M&A.

Aaron confirmed engine supply (Baudouin) not a constraint due to massive recent investment. Alternator supply leverages existing C&I relationships. Physical space is primary constraint. Packaging downstream could be a bottleneck; lining up partnerships.

Aaron confirmed demand impact in line with guide. New 14kW/18kW units opened for order this week with additional 5-7% price increase for features plus tariff rebalancing. Larger nodes (20-28kW) pricing not yet set.

Aaron quantified China as two-thirds of $125M tariff exposure (~$83M). If tariffs drop to 50%, impact reduces proportionally. Continuing to reduce China dependence.

Aaron attributed telecom recovery to carrier network hardening after outages. Rental market waiting for refleeting cycle as fleets age; potential policy tailwinds from new admin.

Winters said the vast majority of Zebra's products use low-power LPDDR5, exactly where supplier capacity is moving, positioning the portfolio well as suppliers shift to next-generation memory. The team works with customers on the right memory size (6, 8, 12, 16 gig) for their use cases and future device needs over 2-3 years, noting meaningful price and capacity differences across types. It is an active, extensive coordination across sales, business units, and supply chain to match products to customer needs on timing and pricing.

Winters said Section 232 scope remains unclear. Monitoring with trade compliance team and leveraging relationships with largest semiconductor companies to assess country-of-origin implications. Will take necessary mitigation actions as details emerge, similar to prior tariff rounds.

Burns said machine vision declined overall despite software growth. Semiconductor manufacturing has stabilized (positive signal) but EV auto manufacturing buildout has slowed. Go-to-market diversification into new markets underway. RFID continues as a bright spot. Tablets and next-gen task management software are additional growth opportunities.

Winters said Q3 gross margin expected relatively flat sequentially with similar tariff impact, volume, and mix dynamics versus Q2.

Burns expressed confidence in health care with new wearable and voice devices launched at HIMSS. Government is smallest vertical but growing via RFID inventory tracking wins and European public safety device upgrades for 5G network migration. Elo adds self-service opportunities in health care.

Burns noted China exposure will fall to ~33% from 85% historically, with remaining production in Southeast Asia and high-single-digit Mexico exposure.

Burns expects fairly consistent and balanced growth across both segments for the full year, though quarterly variations may occur due to comps and deal timing.