Deane Dray

we're seeing a number of the industrial companies reporting this quarter some significant positive inflection

are you seeing anything at the margin in terms of buying hesitancy? You certainly don't see it in the orders

There were some unconfirmed media reports about a potential sizable deal you all are looking at

Maybe we can step back and Dave, do your typical run through the end markets key platforms?

What kind of conversion should we expect in 2026 of backlog?

Any comments about tariffs, the offset? And is that what's driving the softness in China as well?

Maybe we can start with the tour of your key platforms and regions and what stands out in particular. It looks like Paragon really had a strong quarter

could you also include the cadence of the months because we've heard reports recently where it was choppy month-to- month

any kind of callouts, positives or negatives within geographies and your particular verticals?

Can you just size for us China as a percent - China sourcing as a percent of COGS or just that data point helps us frame what kind of headwind

any changes in the replace versus repair trends that we have seen

Any surprises in the regional demand and your ability to supply sometimes that depending when you have

are you able to comment at all about the recent litigation against the resi HVAC manufacturers?

I was hoping you'd give us the update on services. How do you feel about the growth there and the outlook for the year?

Will there be any chance of stock outs?

does that change your expectations for the mix between water and air chillers?

most of these decisions on the destocking are being made by your independent dealers

just kind of take us through the rest of them. And anything on the government slowdown

take us through the verticals, K-12, anything stand out, positive or negative among the verticals?

could you give us an update on services in the quarter and expectations for the year?

I was hoping Patrick can take us through the free cash flow dynamics in the quarter

can you just expand on services. They did well this quarter, just the plan for the year?

I would like to drill down a bit on Quantum LEAP initiative, if we could

give us a sense of the setup on FX, the headwind?

Maybe just circling back on the heat exchangers, How do you land on 2x capacity as the right number?

was there anything different about the planning process this year? Is this strictly a bottom-up aggregation of each one of the businesses?

can you expand on the point about serialization software, kind of size what the opportunity is in some context, please?

how much like, I'll call it, project selectivity? Are you avoiding some lower-margin business and just being able to get a mix up

Can you size for us what it is today combined between the thermal connectors and heat exchangers, what percent of revenues?

on the 2 bolt-on deals, how do those come about where do they fit? What's kind of the attraction there?

do you feel like there's any sea change in terms of data center CapEx

Can you unpack the growth opportunity? How much do you think was the underlying market?

you called out it was 65% of your mix. In previous oil spikes

Could you just talk about the visibility? You called out plant modernization but also behind the meter

Any update on tariffs mitigation activity any color there?

have you really turned the corner here because this was an expectation that you would start to see this, and you did highlight some share gains

Is this an accounting change that was impacting the guide here? Or is it really like the timing of your contracts that are up for renewal?

Could you start with the decision to keep safety and productivity?

any comments on how January has gotten off?

you didn't talk about any sort of customer delays, push-outs, any hesitancy about committing on the approval process for projects

I'd like to put the spotlight, if I could, on your other nondata center electrical businesses

your early observations now that you're back at Eaton and where are your priorities and focus as CFO

directionally how much is hyperscale as a percent of your orders versus colo and enterprise

just my follow-up question was, where does the stand on the 800-volt DC transition

Can you talk about the number of projects you see today and your win rate?

How much capacity do they need to add? One of their key competitors announced they're doubling capacity

Can you remind us kind of like in size order of which products capacity is coming on?

how far do you think that backlog, how much does it come down and normalize based upon this new capacity?

where and else are there barriers to entry because this market is attracting lots of new competitors?

can we dive a little deeper into the implications on data center backlog going from 7 years to 9 years

those are not take-or-pay, just how are those set up? And whether there's been anything - how you're watching those play-out

can you talk about tariffs, potential impact, vulnerabilities, preparation you've gone through already?

could you just step back and kind of give us a sense of where is Fortive in the rollout of these AI features?

We are always interested in the sell-in versus sell-through inventory in the channel, so forth.

Can you just give us a sense of what the opportunity is?

ability to offset inflation and any tariff pressures at the margin?

What was price? How much of a contribution in the quarter?

if we could start there, please

kind of give us your thinking about the decision-making on doing buybacks

hoping to get some color on Fluke in the quarter

What were the businesses that were down in June? Was that deferred? And you think that will still the return in July?

anything on stranded costs? Is new Fortive already sized appropriately post spin?

growth investments. Can you size that? Where is it across the segments? And have you throttled any of those back?

at six percent, that puts Fortive in among the elite.

Can we just circle back on the prebuy impact for Zoro and MonotaRO? Can you size it for us?

What was the benefit to margin in the quarter from the two European exits, and what would be the benefit for the year?

Is there been any difference in behavior, demand, I mean, between federal, state, local

you can share some of the lessons. This was not the first time Grainger had tried to expand in Europe

would you be following a similar practice with the core Grainger offerings

I'd love to hear just a bit more detail on the algorithm, the approach here? Is it simplification

I would have thought China was much higher. And so has that changed meaningfully, let's say, in the last five years

was interested if you all have done anything differently in terms of sourcing volumes ahead of tariffs

is there anything in the way of M&A that might accelerate that

how about Grainger, just in terms of your product positioning, did you, in any way, kind of do some accelerated ordering

Can you talk about the implications because you did renegotiate a lower price.

Is there any risk of like force majeure here and any kind of disruptions like that?

Can you size for us what the Middle East rebuild opportunity is at this point? Maybe not just give us some dimensions and qualitative what areas you'd be active in?

on the impact of $100 oil to UOP, in particular, there's -- were pushouts of catalyst reloads. But you also said that the spreads remain favorable

there was a reference about pockets of weakness in Europe and China. Maybe just give us a sense of, from the geographies

the portfolio cleanups for PSS and warehouse. What can you tell us about the sales process?

any update on the process of looking at strategic alternatives for productivity solutions and services and warehouse automation

Can you comment on the growth opportunity in the sensor business?

Anything in the second half on price cost that you'd particularly want to highlight here

you boosted the EPS guide, but cap free cash flow guidance, the same

the credit ratings and leverage targets for automation you're saying look for strong investment-grade rate

is there anything specific that you have baked in or specifically not baking in for the 2025 guide

how about on HST, any blanket orders on some of the life science guys? That's been really choppy this quarter

if you could help us there in terms of what that order pattern tells you regarding the kind of short-cycle dynamics

You called out some strength in the water business in FMT. Just kind of give us a sense of where that demand is

we've seen some deals in the storm water space

we finally got a PMI above 50 after eleven months. You have such an array of bellwether businesses that are usually synced to the type of inflection in the macro

you're coming in with a fresh set of eyes. IDEX is one of the high-quality compounders

have you give us your insight into the tone of business? You mentioned some order hesitation

can you reference any of the bellwether businesses, in particular, and also the impact of government shutdown on the fire business

can you give us any calibration on the day rates? Just you said May was as expected, June declined, July, was it up or stabilized

Can you just refresh us where has the Life Sciences gone during this period

sellers have a way of being pretty sticky and remembering what their business was worth just a few months ago

Maybe you can expand on your earlier comment on strength in municipal water

what are the Bellwether businesses telling you? And related when we ask about blanket orders

I might have missed it in the 2025 assumptions. It are growth investments. That's always a lever that you have

Just can you give us a sense of the sustainability above to be in and around 100%?

it's a pleasant surprise that your guidance is a single point of 360, and you still have the back half of the year to go, that's pretty precise

there was some good news on the emergency replacement business and the reentry there

Did you change your return requirements this quarter in any way?

regarding the recent litigation against the resi HVAC manufacturers

do you track a new product vitality index or the contribution from the new products

you carried more inventory. So that would've worked against you. But looks like you really came through on the receivable side

that benchmark to try to keep it in a down market to know, a decremental 25% looks really well done. I just was curious. Are you managing to that number or is this more of an outcome

So what kind of efficiencies are you expecting to be realized in 2026? And maybe just kind of give us some examples

help us understand the magnitude of the free cash flow guidance cut that implies a pretty low 70% conversion

on Page 10 of the deck, you gave some hints about the opportunity to expand product and services in the portfolio

I was hoping you could give us a progress report on the emergency replacement initiative. I saw that you had added some inventory

when you talk about the two price increases, are those full pricing increases? Because the assumption is a surcharge gets rolled back

some of your competitors who had stockouts because they switched over earlier. How much of a surprise was that

some nice improvement in inventory days. Is that also sustainable, and do you have some targets that you can share?

can you reference any of the impact on memory chip pricing, availability, and how is that rippling through

that's a surprising number, up 7 on the last 8 weeks, given the pockets of macro pressure

where do you stand competitively? How quickly can you ramp on this? Is there any question of manufacturing capacity

can you talk about the timing, is this -- is it front-loaded? You want to try to get it done in the next

you could take us through the changes in your tariff assumptions the benefit of the pause that was implemented

in your answer, you just put the spotlight on China and there might have been an expectation

I wanted to circle back on the strategies for reinvigorating new product introductions

the plan for reducing inventory days. I mean, I know there's an immediate benefit for free cash flow

This feels a lot like the Manitowoc deal where you are buying a top brand with really good aftermarket

has there been any fallout from all of the 80/20 kind of disruptions on the customer side

you said there are still lots of opportunities in 80/20. Part of it is walk-away revenues, walking away from some customers, shutting down some product lines

can you expand on the point on some of the new product innovation and expansion of the TAM?

the one that jumps off the page is how you offset all of the China impact. And so just give us a sense of how you were able to work with the supply chain adjustments

I would love to hear what the contribution from new products were part of that price increase. And you didn't mention any early buy

could you give us some context of where those savings are coming from, kind of what buckets SG and A? And how much more is there to go there?

back on pool, there was no mention of an early buy. You know, you don't do that every year, but just, you know, is that not needed?

This is your outstanding quarter in free cash flow conversion. I mean it's just -- it's nearly 260% conversion

I just want to circle back on the divestiture of the commercial services

what's your expectation for the businesses? Any demand destruction that's happened from all the tariff uncertainty?

what was the impact there? And then there's in the release, you talk about also capping orders for customers

are we at sort of a normalized rate given demographics and regional? Is it -- does it reflect interest rate pressures or labor shortages

I'd really be interested in hearing how you look at buybacks on a capital allocation versus a CRI-accretive deal equivalent

if you could unpack the cost pressure dynamics for the Neptune business

Have you seen anything similar in terms of the industry dynamic or even any market share changes during the quarter?

How much of an impact is the spike in copper played? Is there a sticker shock?

I'd be interested in hearing your thoughts about how do you rank looking at absolute dislocations in some assets prices today versus what you perceive as where there might be a wider moat against AI

can you talk about the implications of making the investment in Convoy. You added that it's not profitable, but just the willingness to subsidize and make that investment

have they lost any of these orders? Or this is strictly delay at this point?

Just want to circle back on the DAT and Loadlink combination. It makes intuitive sense here, but could you flesh out like what the synergies are

has there been any change in the Board's thinking about potentially exiting some of the non-software businesses

does CentralReach, is it accretive to CRI on a total company basis? And at what point does that contribution become positive?

You don't typically get a business with this type of growth profile. Often, PE has public company aspirations for someone at a 20% growth plus

could you give us an update with any kind of specifics regarding the Transact integration with Seaboard

you did call out that $9 million of restructuring. Could you expand on that, like how many businesses, what's the payback?

get any kind of update on your ambitions in liquid cooling and whether you need to do any capacity expansion.

Can you give any comments or updates, insights into your investments in some of these liquid cooling start-ups?

the big build-outs are happening now, like the Middle East, I would be surprised if they are smaller orders

How did data center do in the quarter? So -- and what kind of growth rate are you expecting for the year

How does that vary by -- either by region or probably more by application?

the math on offsetting dollar for dollar will result in a margin hit, and that's something you've kind of - you're at piece with?

Any specifics there that you can share? And talk about your interest - ongoing interest in liquid cooling?

when I hear about tightening credit, that also makes me think that you actually turned down some customers, or maybe shying away from particular verticals

if you just step back, anything that surprised you in terms of the demand, the timing and there's always this nuance about competitive positioning

you've been opportunistic on some bolt-on acquisitions and the buybacks coming through

can we start with the core revenue guidance that's implied and you referenced it here this morning

How much do you attribute this upside to Veralto's higher bias or higher mix in OpEx versus CapEx? And then just on the CapEx side, give us an update on Trojan and quote activity.

what are you assuming for kind of the spending growth? And if you can separate what that CapEx growth would be versus OpEx

Given across both of your businesses and the level of automation, are you seeing any pinches in supply or pricing? And could you size that for us, if you could?

Just what's your expectations on muni CapEx? And just related, any differences in demand trends from your municipal customers versus the industrial -- broadly industrial, commercial power, electric...

Can you clarify about tariffs? You were -- there was a bit of a mismatch on the last quarter on the timing of pricing. So do you feel like you've caught up there and then anything about the governm...

Any specific comments about China, the pace of demand? There's been -- some of your peers have had some softness there.

Can you just talk about your go-to-market approach? Is there an opportunity to have a modular offering?

I was interested that you made a reference that you had made some investments in TraceGains

Do you have any high-level observations on the EPA announcement this week regarding PFOS

can you just talk about the difference between consumables, elasticity versus equipment?

I'm actually more interested in talking about the investment in Axine

Is it fair to say that that's the impact of the growth investments? Can you size that impact

was there any contribution from customer deposits on orders? I know that's something you all have been looking at

Are you expecting more regulation in liquid cooling. There's been a lot of discussion about that and what would the implications be?

I wanted to ask about the standard modular liquid cooling products. Just very interested in the level of customer take on this?

Love to put the spotlight on Applied Water in that revenue growth of 9%, nice upside there.

And maybe just step back and talk about the opportunities in the outsourced contracts?

Can we get -- I'd love to hear more about this outsourced contract and congratulations.

I'd like how you started off with using the word resilient. Can you give us a sense of the municipal demand outlook at this stage of the year?

As we do the calendar flip and as you start the phase two, maybe you can give us a two-year progress report

maybe you can have expand on the point of increasing the $80.20 walk away revenues in the second year

Would like to hear a bit about the government shutdown. We're getting a lot of questions about that.

can you just step back on 80/20 because there was such high expectations, and there are still high expectations about the fundamental changes

There's always some consternation about the energy meters, a non-smart water meter business. And it sounds and looks like there's some difference between some of the legacy energy meter projects ve...

Can we put the spotlight on these 2 deals? And I know they're smaller, but just the M&A strategy on these niche types of applications

Did you benefit in any way from customers prepositioning inventory? They pull forward and then similarly

Maybe we can start with the restructuring announcement. And just based upon your Analyst Day last year

just given the administration change, there's some anxiety about potential rollbacks of PFAS