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Analyst
Jeff Sprague
Period: Reporting periods mapped to calendar 2024 Q3 – 2026 Q2 (8 quarters).
- Questions
- 214on tracked calls
- Challenge rate
- 13%28 of 214 questions
- Companies
- 23questioned at least once
- Reporting periods
- 8with questions
These figures cover the whole profile: every tracked question, all reporting periods.
How to read these numbers
Challenge rate is the share of questions that pushed back, pressed for specifics or questioned management’s assumptions. It describes how questions were asked on the calls tracked here; it does not measure whether any view turned out to be right.
Rounding. Rates are rounded to whole percentages, so a small share can show as 0% even when some questions were challenging. The count beside each rate is exact; “none of N questions” means no question was challenging.
No questions recorded. “—” means there is nothing to calculate: no questions were recorded for that period on the calls tracked here. It does not mean there was no activity.
Fewer than 3 questions. A company-level rate is withheld when fewer than 3 questions were recorded for that company; the questions are still counted everywhere else.
Small samples. Profiles with fewer than 10 questions are marked Limited sample.
Reporting periods. Questions are grouped by the calendar quarter each company’s fiscal reporting period maps to, not by the date of the call. Periods without a calendar mapping are listed separately under their fiscal label.
Questions asked
Grouped by company, most questions first. Open a company to read its questions, newest reporting period first.
Showing 214 of 214 questions from 23 companies
HUBBHubbell Incorporated17 questions · 7 reporting periods · 2 of 17 challenging
Calendar 2026 Q2
So kind of wondering there if there is some kind of inventory restock after kind of the destock you have gone through
Show response
Bakker gave the first-half and second-half transmission growth split and attributed quarterly noise to project timing, addressing both parts.
just thinking about sort of the implicit margin expansion in the back half that is part of the guide here
Show response
Capozzoli confirmed the phasing is front-loaded into Q3 on IEPA tariff refund timing and reaffirmed back-half margin expansion.
Calendar 2026 Q1
There's obviously been a little bit of concern that all the generation spending may eat into T&D spending
Show response
No crowding out observed in projects or orders. Utilities continually increasing CapEx budgets acknowledging need to invest across all areas. Both generation and T&D investment required simultaneously.
Is that $1.5 billion TAM all incremental relative to your prior view on the market?
Show response
$1.5B 765 kV opportunity is incremental to existing high-single-digit transmission growth. Represents approximately 7,000 miles with higher Hubbell content per mile. Expected to drive approximately 1 point of additional growth. Off-ramp substations add further opportunity.
Calendar 2025 Q4
Can you just give us a little bit more color on what you're seeing in orders, kind of the complexion across the business?
Show response
Order momentum from September inflection continued through Q4 and into 2026. Driven by actual orders in book-to-bill model, not backlog drawdown. Built some backlog in T&D businesses. Materials are fungible between CapEx and OpEx so hard to separate.
Are you suggesting Q1 would be sort of outside the recent normal of sort of 19% to 20% of the year?
Show response
Q1 expected to be strong year-over-year but within roughly normal seasonal percentage of full year. Cautioned against over-reliance on percentage-of-year math given sensitivity to tenths of a point.
I thought we might be done talking about it declining in the third quarter, but, you know, we're still heading south.
Show response
Large project backlog consumed through 2025 without new large project refills. Business stabilized at lower base with book-to-bill at or near one. Modest growth expected from here with some tough Q1 comps to lap.
Calendar 2025 Q3
Could you elaborate a little bit more on the September, October order strength?
Show response
September-October order acceleration was broad-based across all T&D products. Telecom and meters return to growth off lower bases with modest expectations (yellow up arrows). Tariff-related budget assessment by customers may have delayed the timing.
one could certainly make a case on simple arithmetic that this exit rate for utility would actually point to maybe double-digit utility growth in 2026.
Show response
Management acknowledged exit rate math supports potentially very strong 2026 but chose prudent approach to plan resources around long-term mid-single-digit guidance. Q4 benefits from easy comps and seasonal patterns.
Is this tax rate sustainable into '26?
Show response
Lower tax rate driven by one-time international acquisition restructuring. Tax rate expected to normalize in 2026.
Calendar 2025 Q2
I'm just wondering if that is your view of what the underlying market is growing, and we should view that as sort of a steady-state growth rate from here?
Show response
Management confirmed mid-single-digit distribution growth reflects true underlying demand with a mix of MRO replacement and grid hardening. Second-half benefits from easier comps.
can you share with us what the tariff impact embedded in your results are, how much pricing you're getting against that?
Show response
Two points of price realized in H1, slightly ahead of tariffs in Q2. More tariff costs expected in Q3 with more price to follow. Market accepted increases on tariff logic with prices sticking well.
Putting aside comps, do you actually see a pickup in activity there, project or otherwise that would create a situation where we could expect some growth out of that business in 2026?
Show response
Three quarters of sequential flatness establishes a stable base. Pipeline supports low to mid-single-digit growth from the new lower base going into 2026.
Calendar 2025 Q1
do you expect just then a shift within their budgets between price and volume?
Show response
Management acknowledged tension between price absorption and volume but noted pressure to complete hardening and load growth work, plus portfolio breadth across CapEx and OpEx.
you're suggesting a negative outcome here relative to your plan is a year that looks like $16.85, $17.35. $0.50 on the top and bottom
Show response
Management confirmed $0.50 downside sensitivity applies to both ends of EPS range but emphasized it is a sensitivity analysis, not embedded in guidance.
Calendar 2024 Q4
what percent of your COGS might be exposed to Mexican, Canadian, Chinese tariffs if things do happen
Show response
Chinese tariff exposure dramatically reduced after divesting residential and C&I lighting. Mexico is number two after US for COGS sourcing; preparing pricing and productivity offsets.
I just wonder, if you could really speak to your level of visibility
Show response
Management provided granular IOU vs public market breakdown showing IOUs still working through excess while munis/co-ops returned to mid-single-digit growth.
MMM3M Company14 questions · 7 reporting periods · 2 of 14 challenging
Calendar 2026 Q2
an algorithm of roughly two times macro, do you view that as sort of a sustainable model for 3M going forward?
Show response
Bill attributed the outperformance to internal commercial and innovation excellence rather than macro, and expects momentum to build into 2027.
Madison not included in the guide, although it's closed. Is there some peculiarity we need to work through
Show response
Anurag kept guidance apples-to-apples, said Madison is immaterial to EPS, and reiterated a roughly 20% tax rate for the year.
Calendar 2026 Q1
maybe you could give us a little more perspective on the pre-buy, the size of it, if you could
Show response
Brown acknowledged some pre-buy but said it's hard to discern exact amount. Guided price for year around 1.3 points including 50bps oil-based uplift.
do you mean each quarter will be a faster growth quarter than the one that preceded it, even though the comps are getting tougher
Show response
Brown confirmed sequential acceleration expected through the year despite tougher comparisons.
Calendar 2025 Q4
did we start soft here in January and, you know, do you see things sort of kind of picking up off a low base
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Bill confirmed solid 2025 exit rate, with IPI softening in US/China but industrial businesses expected to remain solid into 2026.
how much of that pivot is sort of addition by subtraction versus sort of investment focus growing
Show response
Bill confirmed ~60% of revenue is in priority verticals and 80% of R&D now aligned there, with structural portfolio changes ahead.
Calendar 2025 Q3
I just wonder if you could give us a sense of is this the beginning of a 2 or 3-year very large project
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Bill described structured, non-big-bang improvement program targeting margin expansion beyond 25% by 2027, with series of actions over time.
the upside to the top line view here, I know you can't probably perfectly parse it apart, but really isn't a
Show response
Bill attributed 50bps of Q3 upside to self-help and 20bps to discrete Q4-to-Q3 shift; pricing 70bps/year as guided, with 20bps for tariff offset.
Calendar 2025 Q2
Just maybe your philosophy on sort of metering the best investments. I get it the macro is not great
Show response
Bill said $175M growth investment this year across ad/merch, sales, R&D (+150 people), with prudent metering to let up more if macro improves into 2H and 2026.
Maybe just pivot from the growth side to the cost side and what you're working on there.
Show response
Bill split $500M productivity roughly half G&A, half supply chain (~2% gross/net), citing cost per quality down, procurement savings, and 4-wall cost controls.
Calendar 2025 Q1
back to the tariffs, appreciate that kind of build-up to what the gross impact was. That's some great color
Show response
Bill outlined sourcing/logistics changes (bonded facilities, FTZs, point-to-point), discretionary cost actions, and surgical price; $0.20-$0.40 net offset with ~50-50 cost/pricing split at high end.
Interesting commentary about the March exit rate but obviously kind of post liberation day
Show response
Bill cited minimal pre-buy of $10M from Q2 into Q1, Q1 order rates up 2%+, backlog up low teens, April SIBG continuing March momentum, TEBG and CBG slightly softer.
Calendar 2024 Q4
to what degree sort of the operational execution -- product development has actually impacted the top-line
Show response
Bill said Class III products have light year-one sales, shifting to higher octane Class IV in 2025 with double-digit launch growth; added 50 people in Q4 plus 100 moved into R&D development; launches built into 2-3% guidance.
within that $0.70 to $1 -- $0.70 to $1 bridge item, Anurag, you could give us a little bit of granularity
Show response
Anurag broke down $550M margin improvement: $200M volume leverage/35% incrementals, $200M restructuring tailwind, $150M net productivity (offset by $100M PFAS stranded); FX headwind $125M; nets to 160bps margin expansion.
OTISOtis Worldwide14 questions · 7 reporting periods · 2 of 14 challenging
Calendar 2026 Q2
Is that indicative of just the higher level of training, or what's really sort of the root of that?
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Judy tied the productivity drag to aging equipment driving more complex, material-heavy comprehensive maintenance plus significant inflation in non-Otis spare parts.
Is it really you're seeing just more elasticity to price now as you're moving through this?
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Judy denied price elasticity or ISP share loss, attributing the reversal to residual churn on multi-year North America contracts signed before the service excellence push.
Calendar 2026 Q1
maybe a pivot to we maintain that sort of winds a little bit with kind of the nagging concern many of us have about ISPs
Show response
Judy: we maintain is digitally native (since 2017), operates in 4+ countries, integrates ML/AI for customer centricity. Complements Otis ONE for non-Otis units (~20M unit addressable market). Will operate independently for broader market access. 8-9 years of integrated tech development, not just bolted-on GenAI.
You had that 60 bps gain in the Q4 service margin. You're -- on an as-reported basis, you're comfortable with Q4 2026 exceeding Q4 2025 even with that gain?
Show response
Judy confirmed confidence in Q4 2026 exceeding Q4 2025 service margins despite asset sale comp. Drivers: backlog execution (repair + mod), pricing compound effect through year, Middle East inflation pass-through, maintenance sales recovery in H2. Cristina (attributed to Judy in transcript) detailed building blocks.
Calendar 2025 Q4
could you also just address kinda where OE versus service margins are
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Cristina confirmed China remains highest margin region due to restructured cost base. China service margins expanding as mod grows (mod margins at similar level to NE). Directionally: NE margins high, service margins lower but getting better.
I was wondering if you could just dial us in a little bit more precise on China just to sort of level set the base
Show response
Judy detailed: 2025 market ~370K units (-13%). 2026 expected -8% (Q1-Q2 ~-10%, exit ~-5%). China strategy transformed: Service now 47% of China sales in Q4 (vs mid-teens at spin), China 11% of total Otis revenue. Watching March meetings for signals on involution, mod bond continuation, property market stimulus.
Calendar 2025 Q3
on the new equipment side, can you kind of do a similar kind of geographic rundown for us on price?
Show response
NE pricing up low-single ex-China; China down ~10% in Q3 but stabilizing. Some pre-2025 US backlog remains so small tariff carry into 2026. China H2 market down 10% vs 15% H1; Otis expects mid-single decline in H2 orders.
You noted price continues to be up on the Service side. I would suspect there's still a meaningful geographic difference China versus rest of the world
Show response
Service pricing +3pts: Americas mid-single, EMEA low-single (tough compare), APAC low-single. China Service portfolio grew for 16th straight quarter of teens growth, approaching 500K of 2.5M units. China mod orders +150%+ on bond stimulus.
Calendar 2025 Q2
I think we've got 2 quarters in a row here now where Service revenue growth organically is equal to portfolio growth, where historically revenues outperformed portfolio growth
Show response
Judy explained repair snap-back from 1% to 6% (will keep accelerating), mod revenue temporarily at 5% due to major project timing (backlog up 16%), NA mod orders up 50%. Expects full-year service to reach 5% with H2 acceleration.
Calendar 2025 Q1
are you just assuming you can't or contractually, you can't reprice backlog, or are there some counteractions that you are taking there
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Judy noted commercial discussions ongoing with key accounts showing flexibility but too early to count on repricing. Gave most realistic estimate with current tariff levels.
Is that a gross or it sounds like you're giving us a net number, net of your kind of counteractions. Can you give us a sense of what the gross headwind is
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Cristina detailed $100M annualized China tariff impact, total in-year estimate $60M with mitigation. Judy added they manage job-by-job and experienced de minimis tariffs in Q1.
Calendar 2024 Q4
What are you thinking for New Equipment price in 2025? I think you gave us just the volume outlook
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Cristina confirmed China NE price-cost expected roughly neutral in 2025 with a few points of price decline offset by cost reductions. Commodity positions being locked in.
Could you just address China conversion? I see you shared the 51% with us in the slides. We got global at 66%. So I think that kind of means ex-China you run a 90%-ish sort of conversion
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Judy confirmed ~90% ex-China conversion. In China, more than half of portfolio is connected with Otis ONE creating stickiness. Brand consolidation under one umbrella will increase coverage and improve post-warranty conversion.
I think it drifted down a little bit. I had like 94% in '22 and 93.5% in '23 and I think we're at 92.5% here now. Just kind of what's going on there?
Show response
Judy reframed: some retention decline is voluntary portfolio quality management, noting net churn remains neutral. Higher quality units with better profit contribution replacing lower-quality ones.
IRIngersoll Rand13 questions · 7 reporting periods · 1 of 13 challenging
Calendar 2026 Q2
is there any sort of common thread in what is now being released and previously held up
Show response
Vicente cited energy efficiency and rising power prices shortening payback, plus freeing up of engineering/EPC capacity, as drivers of long-cycle release.
Calendar 2026 Q1
Does that mean you haven't sorted it all yet, and you're still kind of working through it
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Vik confirmed all tariff changes worked through individually. Net effect of tariff changes, disinflationary movements, and proactive internal mitigation are relatively neutral on full year basis.
is the visibility actually improving
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Vicente confirmed improving visibility in Life Sciences with double-digit organic order growth. API production reshoring in U.S. creating real funnel. Had session with one of largest biopharma companies this week on specific technology collaboration.
Calendar 2025 Q4
Can you just clarify what, if anything, is in the guide from a capital deployment standpoint
Show response
Vik confirmed share count reflects only annualization of 2025's $1B buybacks. M&A in guide only includes 2025 carryover and Synomics. Interest expense and other items consistent with 2025 levels.
Are you not seeing any actual pickup in short-cycle pockets, whether it is tools or small compressors
Show response
Vicente confirmed short-cycle momentum from Q4 orders continuing into January 2026. Vik added volume expected to improve H2 vs H1, approaching flattish by year-end. No meaningful recovery baked in; improvement would be upside.
Calendar 2025 Q3
there some other kind of short-cycle versus long-cycle backlog conversion dynamic that we should be thinking about
Show response
Vik confirmed multiple pricing actions taken through the year, not just one. Short-cycle business has typical cadence and lead times. Backlog growth means pricing comes through later than expected but will catch up in 2026.
Can you just tell us what the gross headwind is and what the incremental impact of the 232s in August were
Show response
Vik confirmed in-year tariff cost moved from approximately $80 million to slightly over $100 million. Requisite pricing actions taken but timing lag to revenue realization. Expected to catch up moving into 2026.
Calendar 2025 Q2
how do you think about like managing kind of potentially larger, more complex M&A down the road
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Vicente noted ILC Dover still expected to reach mid-single-digit ROIC by year 3. Referenced playbook of 70+ transactions, reps and warranties backed by insurance with claim filed. Emphasized bolt-on strategy around Life Sciences platform.
anything in just the nature of these longer-cycle projects that stand out regionally, vertical market, different flavors
Show response
Vicente highlighted water/wastewater infrastructure and reshoring in countries like India. Acknowledged macro uncertainty is masking MQL conversion rates but demand is real end-market demand that will convert over time.
Calendar 2025 Q1
Can you -- if you haven't already, can you just provide a little bit more color on how much you think of it as kind of price versus kind of cost
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Vicente explained April actions were pure price, May actions mix of price and surcharges. Cost mitigation (supply chain relocation, factory moves) not yet in guide but actively being worked.
the tone of demand that you're seeing there and sort of any evidence of backlash against US companies or anything of that nature
Show response
Vicente reported China team optimistic, viewed as local company. No anti-US backlash observed. Blower/vacuum share gains and localization investments continuing.
Calendar 2024 Q4
would you actually commit additional capital to these air and defense-related businesses? Is there stuff in your pipeline
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Vicente was direct that no A&D M&A is in the funnel. Framed A&D as optionality for space economy learning and cross-selling opportunities.
that's sort of excluding any wraparound effect from what you did in 2024, and would just be the annualized impact
Show response
Vicente confirmed the 400-500bps M&A target is fully incremental to current guidance, excluding any 2024 deal wraparound.
LIILennox International13 questions · 7 reporting periods · 5 of 13 challenging
Calendar 2026 Q2
Is it overly optimistic to think that HCS margins are up on a year-over-year basis in the back half?
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Michael and Alok landed on flattish to slightly down HCS margins in the back half and confirmed that sits within the guidance range.
Do we still have a little bit more work to do on channel inventory as it relates to Lennox
Show response
Alok answered plainly that channel inventory is normalized with no further destocking ahead.
can you just give us some insight on how you think margins progress over the balance of the year in HCS?
Show response
Michael framed a better second-half year-over-year margin headwind on low-single-digit volume growth, 35% incrementals and a point or two of price.
Calendar 2026 Q1
How would you parse kind of the inflation headwind between the tariff changes and just kind of the general inflation going on
Show response
CFO said approximately 70% hedged on commodity exposure with remaining 30% flowing through. Balance of inflation increase is mostly tariffs. Supply chain and manufacturing mitigation efforts take time but are actively being pursued.
Do you sense in the channel that there was sort of pre-buy in front of inflation or there's been some early heat in some places
Show response
CEO firmly denied any pre-buy activity, noting April tariff announcements caught the industry by surprise. Restock described as normal seasonal behavior. Warranty registration data confirms channel inventory at normal levels, especially in one-step.
Calendar 2025 Q4
Is there an active pipeline? Should we anticipate more in 2026? What are your thoughts there
Show response
CEO confirmed active pipeline with focus on similar or slightly smaller bolt-on deals where Lennox can leverage its stores network and national accounts. Integration of Durodyne/Subco is the near-term priority. More deals expected over next couple of years.
Just on repair versus replace, stabilizing, that is sort of a thesis at this point, or do you think there's actual evidence of that
Show response
CEO said stabilization view is supported by proprietary research and dealer conversations, beyond just a hypothesis. CFO added that 410A gas costs and technician complexity costs are rising significantly, which should push economics toward system replacement.
Calendar 2025 Q3
is there not scope to more severely cut production in Q4 and just clear this up more quickly
Show response
CEO explained Q4 production is shifting to furnaces, limiting ability to cut further. Headcount already down 1,000+ with WARN notices filed. Going further would crimp ability to restart for 2026. Plans to produce slower in Q1 to normalize by Q2.
how big is that tier for you now, in 2025? Like, how much of your business would you characterize as operating in kind of the lowest possible price point
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CEO distinguished between lowest SEER (70% of business) and true value tier (no-frills, limited warranty) which has grown from about 10% to approaching 20%. Expects it to remain in that range as higher-feature products maintain majority share.
Calendar 2025 Q2
Just on the inflation number you're giving us, the 6%, that's on total COGS and total SG&A. And then investments in productivity numbers you gave us are separate and apart from that
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CFO confirmed 6% inflation applies to total cost base including COGS and SG&A, with investments and productivity gains as separate line items on top of that.
it also looks to me like you're "getting more price than you need, and congratulations if you can do that. But as you try to toggle price you need versus price you can get
Show response
CEO pushed back, noting pricing is managed at the ZIP code level using AI-based tools. Consumer price elasticity depends on dealer-to-consumer markup which dilutes OEM price changes. Withdrew majority of tariff surcharge as tariffs moderated.
Calendar 2025 Q1
your sequential inventories to me don't look too different than what's normal. So I just kind of want to understand the view on the Q2 destock
Show response
CEO explained channel distributors (30% of sales) still hold 410A inventory they'll deplete in Q2, potentially pausing 454B orders as they try to sell through lower-cost legacy product.
Calendar 2024 Q4
your inventories relative to sales, right, were a lot lower than normal here in the fourth quarter
Show response
CFO confirmed remaining 410A inventory will be sold through early Q1 and depleted by Q2. BCS inventory is building to support emergency replacement positioning.
PHParker Hannifin13 questions · 8 reporting periods · 1 of 13 challenging
Calendar 2026 Q2
Was there something that proved to be a real catalyst in a couple of key end markets?
Show response
Attributed the international 3-month order strength (+24%) to electronics and in-plant against an easy 0% prior-year comp, with Asia Pacific leading.
Calendar 2026 Q1
Is there any indication in orders of a shift between OE and aftermarket?
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Jennifer provided detailed Q3 breakdown: 51% OEM vs 49% aftermarket. Strong orders in both areas with commercial OEM leading. Teams delivering margin expansion despite the higher OEM mix.
The organic growth in Q4 will be the slowest of the year against the easiest comp of the year
Show response
Jennifer directly refuted any slowdown concern. Q4 aero forecast raised from 7.5% to approximately 9%. Cited record backlog and strong orders as evidence that the fourth year of double-digit aero growth is on track.
Calendar 2025 Q4
it looks to me if it was even flat sequentially here in Q2, then we're starting to get to backlog in Industrial also inflecting higher. Is that sort of what you see
Show response
Jenny confirmed industrial backlog grew from Q1 to Q2, remains in mid-20s weeks. This marks an inflection after Q1 decline, with industrial backlog now nicely up versus prior year reflecting the orders-sales gap.
orders have outpaced sales now for 8 quarters, which I've never seen that long of a run. So maybe you could just speak to, is it reasonable to think that those do reconnect
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Jenny acknowledged Parker is now a longer-cycle business with multiyear aerospace/defense orders in both segments. Conversion timing is customer-driven. Todd added the persistent gap provides better visibility, allows level-loading operations, and drives consistency, a positive structural shift from portfolio transformation.
Calendar 2025 Q3
can you just kind of give us a little color on at the margin rate it comes in at the work you're doing to integrate it
Show response
Todd disclosed Curtis margins at high teens to low 20s, slightly dilutive to company margins but EPS accretive. $235M added to sales guide. Integration underway with dedicated leader and team.
get a sense of defense versus commercial mix and how that's playing and if that's changed versus your initial view
Show response
Jenny confirmed defense outlook unchanged from initial guide at mid-single-digit growth for both OEM and MRO.
Calendar 2025 Q2
your comment alluded to the fact that maybe the softness here in Q4 was because you got some chunky orders in Q3
Show response
Jenny explained Q3 had strong long-cycle orders in HVAC, power gen, and A&D that didn't repeat in Q4. EMEA turned slightly positive with energy strong. Order dollars were flat sequentially.
maybe you could just speak a little bit more to Curtis, kind of where the margin profile is on a Parker comparable basis, what kind of improvement you can get
Show response
Jenny said margins initially dilutive with full synergies expected within 3 years, similar to LORD and Meggitt deals. Curtis has grown mid to high single digit over past 5-10 years. EPS accretive in year one.
Calendar 2025 Q1
it sounds like you're not really looking at making any significant footprint changes that just sort of surprises me right, like I wouldn't think you want to eat $375 million
Show response
Jenny explained mitigation is a collection of pricing, supply chain, and cost actions. Not just switching suppliers but leveraging global capacity, dual sourcing, and ongoing operational improvements.
Calendar 2024 Q4
could give a little bit more color on just the pattern -- organic pattern of industrial revenues Q3 and Q4 to close out the year
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Jenny provided specific Q4 organic growth targets for each segment and acknowledged the guide assumes a recovery pushed out one quarter.
when you kind of addressed to the strength in industrial long cycle, is this the aero stuff that sits inside industrial
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Jenny directly identified aerospace/defense within industrial plus HVAC and semicon as drivers, noting these help Asia Pacific order increases.
Calendar 2024 Q3
can you just give us the other three pieces of Aero if you haven't already
Show response
Parmentier broke down Aerospace: commercial OEM +3% with the guide cut to low single digits, commercial MRO +32%, and defense MRO raised to low double digits.
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CARRCarrier Global12 questions · 6 reporting periods · 2 of 12 challenging
Calendar 2026 Q2
are you looking at any Residential incremental capacity in the US Any footprint shift there
Show response
Gitlin gave timing, candidate states, and confirmed long-lead equipment already ordered; noted the new site is data-center focused with residential expansion separate.
did we see any sort of the two step bullwhip effect in this quarter or are your volumes pretty close to
Show response
Gitlin separated the back-half math explicitly: 20% sales growth of which 10 points is destocking absence, mid single digit movement and mid single digit price.
Calendar 2026 Q1
back to resi, kind of good to see this sort of initial evidence of things kind of normalizing and the like. Could you just elaborate a little bit more
Show response
Dave provided comprehensive resi outlook: pent-up demand from 4M housing deficit, field inventories down 35%, Q1 movement better than feared. Cautious tone given macro uncertainty.
with 2% more price, the organic growth is unchanged. So maybe just kind of talk a little bit about maybe the price volume kind of trade-off
Show response
Patrick explained the rounding effect, prior guide was slightly below $22B, now slightly above with pricing, both rounding to $22B. 75% of price increase is Section 232 related.
Calendar 2025 Q3
looking at your consolidated inventories, they're up sequentially in the quarter, typically down
Show response
Goris detailed $500M consolidated inventory increase, $350M from resi (sudden volume decline + purposeful parts build). Gitlin added field inventory down 12% YoY at Q3 end, down ~20% as of today, targeting -30% by year-end. Movement down ~30% in October, expected -mid-20s for Nov/Dec.
Where do you guys stand on what's going on in the repair versus replace dynamic
Show response
Gitlin acknowledged repair vs replace likely happening but hard to dimensionalize. Parts up due to purposeful share-of-wallet initiatives. Distributors do not report outsized discrete part sales indicative of widespread repair trend.
Calendar 2025 Q2
It looks and feels like maybe things are getting better there, but the margin guide has actually come down
Show response
Gitlin cited Germany underperformance vs rest of Europe (higher-margin region), floor-standing boiler decline, and within-RLC mix issues. Cost synergies on track to meet or exceed $200M by end of next year. Aggressive discretionary overhead cuts positioning for margin drop-through as volume recovers.
Can you just share with us kind of what the total price capture was beyond just what you did on tariffs
Show response
Goris confirmed ~2 points of total price each quarter and for full year, inclusive of both regular and tariff-related increases, excluding 454B mix-up benefit.
Calendar 2025 Q1
give us some examples of maybe the incremental things you did to offset whatever that residual was
Show response
Gitlin cited dual sourcing flexibility, manufacturing localization reducing China-for-export, factory productivity, footprint optimization, and G&A tightening as key mitigation levers.
what do you attribute the rush for subsidy applications?
Show response
Gitlin noted Q1 subsidy applications of ~65,000 vs ~9,000 prior year, highest Q1 in five years. New coalition government committed to continuing 30-70% subsidy rates.
Calendar 2024 Q4
What do you think the kind of realized prices on the 454 units on an all-in basis?
Show response
Gitlin walked through the full algorithm: flat/down volume, low single digit base price, 454B mix-up of ~7%, reaching high single digit total.
Can we just drill a little bit more into resi and what you saw in the quarter
Show response
Gitlin provided specific prebuy quantification and distributor inventory data with movement trends through January.
ALLEAllegion11 questions · 6 reporting periods · 3 of 11 challenging
Calendar 2026 Q2
shed a little more light on sort of the nature and scope of the restructuring that you're doing in Europe?
Show response
Stone and Wagnes said restructuring mixed acquisition-synergy capture with demand-driven cost cuts, quantified at roughly $10 million annual benefit at full Q4 run rate.
Calendar 2026 Q1
Europe is probably most prone to seeing collateral economic damage first from what's going on. Is there any visible change in tone there
Show response
John confirmed European demand consistent with February guide. Electronics performing well, acquisitions on track. Middle East exposure negligible. Markets not strong but stable.
I've seen companies before have these snafus and they don't catch it up, right, because you fail to deliver so somebody else fill that void
Show response
John confirmed customer orders retained (not lost to competitors), backlog supports recovery, more ERP implementations planned but doesn't anticipate repeat problems.
Calendar 2025 Q3
Just thinking about kind of the margin entitlement of what you've acquired, where you might be on integrating these assets? Are they all truly being integrated or any of them sort of stand-alone?
Show response
John confirmed rapid integration across all deals with revenue and cost synergies. Disciplined around geography, strategy, and right-to-win markets.
is there a way to just step back and sort of collectively say, you gave us the dollars deployed, right, on a year-to-date basis, kind of what the average multiple has been?
Show response
John disclosed high single-digit EBITDA for mechanical, higher for electronics/software. Mike noted ELATEC is lion's share of total and its multiple was in the press release.
Calendar 2025 Q2
how do you square that relative to the weak ABI and these folks like Sherwin-Williams missing and things like that
Show response
John attributed disconnect to mix of verticals (institutional strong, office recovering), disrupted traditional indicators post-pandemic, and share gains from better operational execution.
I would imagine deals are negative to margin rate and price cost parity on surcharge is negative to margin rate. So is that uplift in solid-looking margin performance all mix
Show response
Mike confirmed mix drove margin performance. Acquisitions accretive internationally but not material for Americas. Peso FX tailwind also helped.
Calendar 2025 Q1
the comment about specifications, How good of a leading indicator have you seen that over time
Show response
John acknowledged spec-to-revenue timing varies widely by project size. Not linear but useful internal gauge of activity. Large projects can take years.
would it be reasonable to assume that 're really looking at sort of an upside revenue case, but maybe some pressure on margins
Show response
Mike confirmed tariff offset is dollar-neutral not rate-neutral. Higher revenue denominator means margin rate could compress even as dollars are covered.
Calendar 2024 Q4
the price-cost productivity investment equation. I think it's the first time that's flipped negative maybe since you've reported it
Show response
Mike directly explained the negative PPII was due to rebate accrual timing, not core pricing weakness, and confirmed 2025 will see pricing/productivity in excess of inflation.
the sourcing of steel or other metals, steel, and aluminum. Anything you could add there on where you're sourcing for your US plants
Show response
John confirmed steel/aluminum tariff impact is negligible since non-res is largely US-sourced and produced.
DDDuPont11 questions · 6 reporting periods · 0 of 11 challenging
Calendar 2026 Q2
Can you just give us something to anchor on in terms of thinking about contribution to sales or product vitality?
Show response
Koch anchored innovation on a ~35% vitality index and faster development cycles, but did not size the upside.
Calendar 2025 Q4
maybe just a little bit more color on what you're seeing really in the core industrial parts of the portfolio. How orders are trending? And what do you think is going on with channel inventories
Show response
Koch noted industrial order pickup driven by aerospace (low double-digit improvement, ~3-4% of revenue) and broad short-cycle recovery across Industrial Technologies businesses.
what's going on on the inflation side of the equation? What sort of kind of price is embedded in the outlook
Show response
Koch confirmed 3% organic growth is predominantly volume-driven. No significant raws/logistics/utilities headwinds expected. Productivity initiatives expected to drive gross margin improvement YoY.
Calendar 2025 Q3
maybe give us some initial thoughts on sort of these exit rates that we're looking at here in Q4
Show response
Koch confirmed Healthcare & Water tracking to medium-term target of ~5% organic. Shelter still down ~1% in H2 but if it normalizes to flat, that alone provides nice lift into 2026. No material changes from Investor Day targets set 6 weeks prior.
this timing benefit, is this something you did or kind of pushed on behalf of your customers, so they wouldn't somehow be disrupted
Show response
Franzen explained the timing shift was customer-driven ahead of a system blackout for Qnity separation legal entity repipe, not DuPont-initiated. No change to full-year organic growth expectations.
Calendar 2025 Q2
how we should read that across. One could maybe guess that New Jersey was so big and complicated and there was so much going on that AFFF considerations were really way down the pecking order
Show response
Koch confirmed NJ AFFF portion at ~5% of total, consistent with the 3-7% framework. Breen added only one more site-state (NC) remains; all others are AFFF-only.
I would assume we're kind of through the inventory liquidations that have been weighing on those end markets. But can you give some color on that?
Show response
Koch confirmed destocking fully lapped in both RO and medical packaging. Both healthcare and Water expected to continue outsized growth in H2.
Calendar 2025 Q1
could I start there? Jon, I was just wondering if you could just walk us through sort of the exemption process, how many kind of different exemptions do you need or do you have?
Show response
Kemp framed exemptions as the smallest of four mitigation categories, with procurement and supply-chain optimization doing the heavy lifting.
does that imply that you're sourcing from Europe now, or trying to source from Europe now, or somewhere else into China to get around the need for exemptions?
Show response
Kemp explained most China production already sources non-US materials, with limited cases requiring alternative supplier qualification.
Calendar 2024 Q4
I feel that's a pretty hard lock on November 1. And maybe any update on just kind of the cost to separate and the kind of stand up stand-alone costs associated with Electronics?
Show response
Franzen confirmed timeline is locked, separation costs slightly under $700M with Water retained, and dissynergies reduced from $60M to ~$40M.
would that also encompass sort of the stranded cost? That $40 million, is that sort of the public company cost for new ElectronicsCo separate and apart from sort of stranded
Show response
Franzen explained dissynergies are primarily public company costs, stranded costs expected immaterial based on day-one readiness work.
EMREmerson Electric11 questions · 6 reporting periods · 1 of 11 challenging
Calendar 2026 Q2
is this even increasingly long-dated sort of project activity?
Show response
Lal said conversion pace is steady with a 3-4 year funnel worked actively; award levels consistent quarter to quarter.
Calendar 2026 Q1
if we did not have this war going on, there would probably be a lot more Test and Measurement questions
Show response
CFO highlighted semis and A&D leading growth. Automotive segment hit bottom, expected to grow low single digits. Double-digit T&M growth sustainable for next couple quarters.
the economic impacts are not contained. We have Europe becoming less competitive from an energy cost standpoint
Show response
CEO acknowledged second-order impacts like feedstock pricing and electricity curtailments in Southeast Asia but has not assumed broader economic deterioration beyond the region.
Calendar 2025 Q4
the weak verticals and do you see stabilization? I'm thinking chem probably most notably
Show response
Krishnan confirmed continued flat Europe, particularly chemicals in Benelux/Germany. China outlook turned more bearish, now expecting low single digit decline for the year. Automotive soft in both regions. Some green shoots in China T&M and power.
the drop in sequential margins Q1 to Q2 on what should be
Show response
Baughman attributed Q2 margin pressure to software renewal dynamic increasing from $45M to $65M sequentially, plus unfavorable mix and absence of TotalEnergies benefit from prior year.
Calendar 2025 Q2
dollar sales were actually up in the quarter sequentially and dollar profits were down sequentially. So can we just unpack that a little bit?
Show response
Intelligent Devices margin down 1.1pp due to tariffs (expected) and FX balance sheet mark-to-market (unexpected). Ex both items, up 20bps.
how would you kind of characterize vertical markets that might be driving that? Is it broad based? Is it concentrated in a few areas
Show response
Recovery broad across all segments and world areas. Portfolio business most encouraging as indicator. Asia led recovery, followed by North America, then Europe.
Calendar 2024 Q4
Could you just be a little more specific on Mexico? Maybe the size of your COGS down there and what parts of your business are most highly exposed?
Show response
Karsanbhai confirmed tariff readiness with price and surcharge plans but declined to share specific COGS details.
Your commentary on discrete is collectively legacy, Emerson discrete plus test and measurement. Is there any distinction to be drawn
Show response
Confirmed discrete commentary is collective. Semiconductor strength encouraging, offset by factory automation and automotive weakness.
Calendar 2024 Q3
does that apply equally in your view in terms of both legacy Emerson discrete and T&M? Or do you see them on a little bit different schedules?
Show response
Karsanbhai expects legacy discrete and T&M to recover in parallel, both benefiting from easier comps.
I just want to clarify, obviously, you're not going to own it for the full fiscal year. A month that's already passed
Show response
Baughman declined to specify close timing but noted AspenTech seasonality is back-half weighted, which helps the neutral EPS target.
TTTrane Technologies11 questions · 6 reporting periods · 0 of 11 challenging
Calendar 2026 Q2
in Europe, ex Middle East, there's a pickup that you're starting to see, is that primarily data center
Show response
Addressed both regions, naming India, Malaysia and Thailand as where Asia growth and channel investment are going.
Any significant difference in just the kind of level of activity, your volumes in your one-step versus 2-step channel?
Show response
Short but responsive; confirmed no channel divergence and pointed back to sell-in versus sell-through parity.
Calendar 2025 Q4
what you absorbed on tariffs in 2025 what the wraparound might be, and then also just this, you know, pretty dramatic, you know, metal spike
Show response
CFO detailed 2025 tariff cost slightly above $140M. 2026 incremental about $50M from full-year wrap. All-in approximately $200M cost to price for. Copper and aluminum about 50% hedged. Steel pricing locked six months. Proven track record staying ahead of inflation.
Calendar 2025 Q3
are we starting to bump up against just the ability for the supply chain, the construction community, whatever to put this stuff in the ground
Show response
CEO characterized Q4 delivery deferrals as normal timing noise with customer-requested delays into 2026, not indicative of supply chain bottlenecks.
the improvement in corporate, the pickup in other, do those continue into 2026?
Show response
CFO confirmed M&A amortization headwind of ~$0.20 should decrease in 2026 but not go to zero. Tax rate expected at 20% for full year.
Calendar 2025 Q2
do your expectations for the balance of the year imply that you remain margin accretive on inflation?
Show response
CFO clarified Q2 tariff impact was almost immaterial. Overall price vs inflation is positive, but tariff-specific pricing targets margin-neutral dollars, not margin accretion.
I would have thought mix itself was maybe 10-ish. Can you just give us a little bit more color on kind of the mix effect
Show response
CFO combined price and mix at low double digits for H2 without isolating the 454B mix component separately.
Calendar 2025 Q1
do you see any fundamental sourcing advantage from Mexico vis-à-vis your competitors?
Show response
CEO confirmed 85-90% USMCA compliance from Mexico plant. Not using tariffs as a profit center, pricing dollar-for-dollar only.
that also looks like kind of a macroeconomic recession signal. It's been a long time since we had a normal recession
Show response
CEO not forecasting recession but detailed trigger-based scenario planning system. Americas trailer market at 28K would be 15-year low; replacement market alone is 35K.
Calendar 2024 Q4
how did the two-step channel perform in the quarter versus your internal channels as we kind of think about all the pre-buy
Show response
CEO clarified pre-buy was through IWDs, split roughly 50/50 between Q3 and Q4, with majority of impact expected in Q1 2025.
I think you include everything in backlog regardless of how far out it reaches. Maybe you could just give a little color on kind of the backlog staging
Show response
CFO confirmed majority of $6.75B backlog (90% Commercial HVAC, mostly applied) will turn within 12 months, with a small amount pushing to 2026.
VRTVertiv Holdings Co11 questions · 7 reporting periods · 2 of 11 challenging
Calendar 2026 Q2
just on the comment that the pipeline is actually accelerating. I assume that's all hyperscale
Show response
Gio described both faster sales cycles and larger pipeline size, broad-based across hyperscalers, colo, and enterprise.
Calendar 2026 Q1
could you maybe just address kind of the field organization, the ability for service to grow at this pace. How the margin complexion
Show response
Gio described a local field presence with mobile teams for large deployments, heavy investment in growing the services population, and strong lifecycle capture potential.
labor-related services. We don't think about operating leverage, right? It's man hours or people hours, but there's kind of other more sophisticated services
Show response
Craig said services incremental margins are expected to be in the 30% to 35% range, similar to overall company incremental margins.
Calendar 2025 Q4
have things really changed on the ground in terms of the permitting bottlenecks and the like
Show response
EMEA improvement is not from permitting easing but from accelerating investment realization and pipeline conversion. Nordics specifically moving well. On China, weakness attributed to general market conditions not anti-Western dynamics. Vertiv operates as a Chinese player in China and is silicon agnostic.
Calendar 2025 Q3
Your apparent confidence that it does, in fact, get better 2026 sounds like a long way away
Show response
Acknowledged slower timeline for EMEA recovery. Cited data sovereignty requirements for local inference capacity, extremely low vacancy rates, and increased vibrancy in customer conversations. Restructuring ensures organization readiness for AI infrastructure acceleration.
Calendar 2025 Q2
could you just maybe address, a little scare through the market a couple of weeks ago on AWS delivering some kind of
Show response
Characterized hyperscaler co-engineering as normal market behavior. Emphasized deep lab relationships and engineer collaboration. Stated Vertiv scales with hyperscale customers and this is not anomalous.
do you have kind of the commercial leverage to fully recover tariffs
Show response
Deflected the tariff pricing question to answer the AWS liquid cooling question instead. Tariff recovery commercial dynamics were not directly addressed.
Calendar 2025 Q1
perhaps you or David could just tell us what is the total gross tariff related pressure
Show response
Refused to disclose gross tariff dollar amount. Reiterated pricing and supply chain as two roughly equal countermeasure buckets.
the shape of the balance sheet and a zero in the share repurchase column and the cash flow statement
Show response
Cited market uncertainty and blackout period timing as reasons for no buybacks. Mentioned active M&A pipeline. Reiterated opportunistic approach to repurchases.
Calendar 2024 Q4
your total available market, right, the three to three and a half million per megawatt
Show response
Confirmed $2.75-$3.5M per megawatt capture range from November, noting movement depends on region, design, and application type.
can you give us a sense of kind of the exposures, maybe size those for us
Show response
Declined to disclose specific manufacturing sourcing percentages. Only offered that US plant count exceeds Mexico, deflecting to preparedness messaging.
DOVDover Corporation10 questions · 6 reporting periods · 1 of 10 challenging
Calendar 2026 Q2
That 0.1 to 0.5 you are talking about, is that on a Dover consolidated basis
Show response
Richard confirmed the impact is consolidated and acknowledged late deliveries but said he was not aware of losing market share.
Calendar 2026 Q1
the strength in orders there and on the top line, is that pretty level loaded between the CO2 and the heat exchange or heat pump-related pieces of the portfolio. Could you just elaborate on that a ...
Show response
Rich confirmed broad-based strength across DCST: heat exchangers adding capacity, CO2 systems adding production lines (plant near full), refrigeration recovery strong but causing margin dilution from delayed facility consolidation; expects margin inflection in H2.
the supply constraints that you're talking about are Dover internal, not kind of supply chain inputs. And I guess I sort of get that right? You've been waiting for growth. You probably kept your bo...
Show response
Rich clarified constraints are not from underinvestment, no capacity was removed, but from operating in markets with few competitors where customers order ahead to reserve slots; ramping cost margin dollars in Q1.
Calendar 2025 Q3
Is this the totality of sort of what you foreshadowed for us on the Q2 call? Or are there sort of other actions in place that could then even be additive to this?
Show response
Rich confirmed $40M is the current update as promised; expects the number to increase as year closes, question is only timing between 2026 and 2027 realization.
Calendar 2025 Q2
you're saying the wraparound actions from last year's work is a $30 million benefit this year. And at this point on the stuff that you're working on this year, you see at least $30 million next yea...
Show response
Rich confirmed at least $30M in 2026 from current restructuring projects, likely bigger; timing uncertainty centers on complex footprint consolidations (building new factories).
your prior revenue forecast of 2% to 4% assumed no FX, I believe, right? And the 4% to 6% now has one point of FX in it, is that correct?
Show response
Rich confirmed revenue guide increase from 2-4% to 4-6% includes 1pt FX benefit, using year-to-date average rates carried forward for H2.
Calendar 2025 Q1
I'm trying to get a sense of, you know, what you're doing new incremental, to offset tariffs versus what you already had in flight?
Show response
Rich explained pricing is deployed to cover tariff costs, with some instances where Dover's lower import exposure vs competitors creates share-gain opportunity.
how you exited the quarter and did you see any sort of behavior change anywhere from your customer base you know, kind of post the April 2 announcements?
Show response
Rich confirmed order and shipment rates accelerated through Q1; the guidance trim is a sentiment adjustment not based on tangible customer cancellation data.
Calendar 2024 Q4
that guide that you're talking about is really only accounting for cash on hand. It doesn't look like you're giving yourself any credit for just a very solid free cash flow
Show response
Brad confirmed guidance is inclusive of expected cash flow generation, but capital deployment timing creates variability between interest income and segment performance.
Demand trends are giving us a solid green pie, but we're growing low single digit
Show response
Rich explained the textile/fashion business is now de minimis and not modeled for snapback; core Marketing & Coating margin accretion continues to drive value.
AMEAmetek8 questions · 3 reporting periods · 1 of 8 challenging
Calendar 2025 Q2
I wonder if you could just talk about that a little bit more in terms of the integration plan. I believe you see a lot more synergies there than typical AMETEK playbook
Show response
FARO expected to add couple of pennies in 2025. Mid-teens cost synergies. EBITDA target doubles from ~15% to ~30% in 3 years. Compared to Zygo acquisition (9% revenue CAGR, 5x EBITDA growth in 10 years).
it sounds, as you said, order is firming up. Is that translated to the top line at Paragon yet?
Show response
Paragon EBITDA margins now at 30%+ (in line with AMETEK). Destocking fully over. Largest order increase in entire company. Meaningful margin runway still ahead.
Calendar 2025 Q1
can you share - sorry if I missed it, what price was in the quarter?
Show response
Positive price-cost spread in Q1. Full year organic outlook unchanged but implicitly assumes slightly more price offset by slightly less volume.
we've gotten some inbound questions just about your research exposure and those risk and anything that along those lines
Show response
Research ~10% of sales, largely international. Some delays with government customers but relatively modest impact at this point.
China specifically, what is it that you're looking to overcome there on that 145%?
Show response
145% China import exposure is fairly small within the $100M total, mainly from recently acquired businesses. Bulk of AMETEK already decoupled from China sourcing.
We should just assume that's very high incremental margin business, though, right? I would guess that throws $0.10 or more of sort of variance
Show response
Confirmed at-risk China shipments are high-margin, high-end instrumentation products with limited global alternatives. ~$0.10+ EPS swing potential.
Calendar 2024 Q4
can you give us an idea of kind of maybe order of magnitude of margin improvement you're looking for there?
Show response
Confirmed substantial margin improvement expected, well in excess of AMETEK's 20-30bp overall target, but did not quantify exactly.
could you give us a little bit more of an update on Paragon? You mentioned orders were firming up here as we exited the year
Show response
Zapico confirmed ~$420M revenue run rate for Paragon, expects it to grow faster than AMETEK overall especially in H2.
ETNEaton Corporation8 questions · 5 reporting periods · 2 of 8 challenging
Calendar 2026 Q2
your guide, right, for Electrical Americas actually assumes relatively flat sequential revenues
Show response
Dave explained margins improve on lower premium/overtime costs, more experienced operators and capital-driven cost-out, not just volume.
Calendar 2025 Q3
this 25% margin that you're pointing to, is that their organic margin?
Show response
Paulo confirmed 25% is Boyd's existing margin with no synergies baked in. After synergies (primarily purchasing power), effective multiple drops to high single digits.
Calendar 2025 Q2
it sounds like all the growth really was in data center in the quarter. Can you just maybe speak to that?
Show response
Paulo clarified data center data excludes distributed IT, with utilities up high single digits, short-cycle turning positive, and machinery OEM orders up nearly 30%.
how much Fibrebond backlog came into the backlog number that you shared with us today
Show response
Paulo confirmed 17% backlog growth is organic plus $1.2B from Fibrebond, with Fibrebond integration already blurring standalone tracking.
Calendar 2025 Q1
Could you share with us what the gross tariff impact is that you're wrestling with here
Show response
Paulo declined to quantify the exact tariff impact due to the dynamic environment but confirmed three-lever mitigation: cost management, supply chain, and pricing on dollar-for-dollar basis.
how quickly can you sort of action kind of organic initiatives there or start to tuck in with some of the bolt-ons
Show response
Paulo outlined self-help operational improvements, Dubai manufacturing investment for regional project business, continued APAC JV success, and openness to bolt-on deals.
Calendar 2024 Q4
what could you share with us about your view of what can be done to kind of improve the margins in Electrical Global
Show response
Paulo outlined restructuring benefits and volume-driven productivity gains for 2025, with long-range segment targets coming at March Investor Day.
Just wonder if you could give us a sense of how much data center is now in the mega project number that you're sharing with us today
Show response
Yan Jin confirmed data centers represent roughly 17% of mega project count, with Craig noting strong growth in the $25M-$1B project tier as well.
FTVFortive8 questions · 4 reporting periods · 0 of 8 challenging
Calendar 2025 Q3
It looks like you're sort of guiding segment-level margins, I don't know, kind of flat-ish in Q4 on a year-over-year basis
Show response
Okerstrom confirmed broadly in the zone. Year-on-year expansion expected from corporate costs. Some gross margin pressure in IOS from mix, largely offset below the line.
can you just elaborate a little bit more? You said there were some one-timers in the quarter
Show response
Two primary one-timers: increased software development capitalization for unreleased products, and incentive compensation adjustments. Both hit segments and corporate. Q4 OpEx expected to step back up as growth investments deploy while maintaining cost discipline.
Calendar 2025 Q2
maybe you could just tell us what you're expecting for the annual tax rate, so we don't get too far out of whack
Show response
Annual tax rate 14-16%. Q3 high teens, Q4 single digits from discrete items.
what are you implying for IOS then? Dollar sales roughly equivalent in Q3 and then a seasonal pickup in Q4?
Show response
IOS following total Fortive pattern: core growth pickup in Q3, back half broadly consistent with first half. AHS margins down slightly in Q3 from tariff impact, then Q4 rebound.
Calendar 2025 Q1
Is the number you're sharing with us today the annualized rate or the in-year rate?
Show response
In-year 2025 impact of $200M at midpoint, with 80% offset expected. Assumes full tariff rates return after July 9 reprieve, which is the conservative approach.
the US exports to China are those Fortive finished goods to Chinese customers where actually maybe that $90 million to $95 million isn't really a cost item
Show response
US-to-China exports are manufactured products for Chinese customers, less than 2% of revenue. Classified as tariff cost, not demand destruction. Manufacturing can relocate.
Calendar 2024 Q4
just on China, think you said down mid single digit. I think that was a twenty twenty five estimate. Can you just kind of level set us
Show response
China down high-single-digit in 2024, expected down mid-single in 2025. High-growth markets ex-China continuing to grow well as an offset.
we just have the number? Like, how many days are we talking about here? Sounds like it's two ish
Show response
Two days worth about $8M impact, mostly in consumables (about half of healthcare) plus services in Gordian and software. Not significant for distribution.
JCIJohnson Controls7 questions · 5 reporting periods · 1 of 7 challenging
Calendar 2026 Q2
where do you stand on the sustainability of this demand, and do we have sustainable demand
Show response
CEO gave his view that AI adoption is in the very early innings at single-digit-percent usage and expressed optimism that demand for data center output will keep growing.
Calendar 2025 Q4
the portfolio review, Joakim, that I would assume that's still ongoing, but it also looks like the retail business did not close yet
Show response
Strategic review ongoing with board alignment on direction. No specific comment on retail transaction. Closed disposition of residential monitoring security systems business.
a little bit of more detail on you know, where you sit sort of the technology path, the forward planning, understanding what's coming down the pike
Show response
Co-development with NVIDIA and hyperscalers at JADEC innovation center. Reference designs published for AI factory thermal architectures. Significant product roadmap beyond current launches.
Calendar 2025 Q3
are there some clearly targeted actions that support that? Or are you counting on sort of a stronger revenue recovery
Show response
Combination of pricing discipline, better targeting of efforts, and business system deployment. Not reliant on any single large factor. Proof already in execution.
what the target-rich environment might be on free cash flow and how that might unfold over the next year or 2
Show response
Inventory management is the primary future FCF lever, enabled by lean/business system reducing reliance on inventory for growth. Receivables management already strong.
Calendar 2025 Q2
where the most significant opportunities are on the free cash flow side? Should we view this 100% plus sort of a catch-up on low-hanging fruit?
Show response
AR/collection improvements drove the breakthrough. Lean will reduce CapEx needs and inventory over time. Lead time reduction will decouple CapEx from growth.
Calendar 2024 Q3
what's taking the tax rate down to 12%? And Marc, I think some of the global changes
Show response
Marc detailed non-operating items: corporate expense flat on IT/cyber investment and stranded costs, continuing-ops tax rate stepping from about 11% to 12%, and pay-as-you-go buybacks.
VLTOVeralto6 questions · 3 reporting periods · 0 of 6 challenging
Calendar 2026 Q2
Do you see that being led by equipment or consumables? Can you maybe unpack that a little bit?
Show response
CFO walked through all three PQI building blocks (digital workflow ACV bookings, marking and coding comps, color validation funnels) and called the recovery broad-based.
when you look at your price capture, it actually is very solid, in my opinion, for a business that's not metals-intensive
Show response
CEO confirmed balanced price read-through on both consumables and equipment, with consumables slightly higher given the captive nature of those products.
Calendar 2026 Q1
I was wondering if you could just elaborate a little bit more on kind of the cost program, sort of the catalyst behind it
Show response
CEO described cost optimization as natural evolution after 3-year post-spin journey: first innovation/R&D engine, then capital allocation flywheel, now structural cost efficiency. Leveraging enterprise functions while maintaining decentralized operating model.
you didn't mention any benefits in 2026. We should expect this gearing up in '26 for things to flow in '27 and '28?
Show response
CFO confirmed actions predominantly in Q4 2026. No benefit baked into 2026 guidance. Roughly 50% of run rate savings in 2027 and full run rate in 2028.
Calendar 2025 Q1
is there like a real list of sort of no-regrets footprint changes that you make here?
Show response
CFO confirmed footprint changes are strategic long-term moves, not tactical arbitrage. Trojan US factory was already planned; tariffs accelerated timeline. Multiple similar initiatives underway.
Do you see, for example, kind of electronic sources of supply where you can divert out of China to other places
Show response
CEO clarified asset-light means no heavy capital needed to move lines. Centralized strategic sourcing team leverages collective spend on circuit boards, chemicals, plastics, optics. CFO noted suppliers have more flexibility now than during first tariff round.
ROKRockwell Automation5 questions · 3 reporting periods · 1 of 5 challenging
Calendar 2026 Q2
put a finer point on what the price cost headwind was in Q3 and specifically what you were expecting in Q4?
Show response
Rothe declined to quantify the Q3 price/cost headwind but reaffirmed price/cost turns positive year-over-year in Q4 against still-rising inflation.
Calendar 2025 Q3
if you and Schlumberger are picking up your ball and going home, there shouldn't be a charge
Show response
Christian explained the balance sheet carrying value required impairment recognition upon dissolution. Assets, liabilities, employees, and P&L all being divided between companies with transactional costs. Future state expected to be margin-beneficial.
is that 100-ish a pretty good run rate going forward?
Show response
Christian confirmed ~$100M as baseline. Delta from prior year driven by asbestos/environmental removal and lower implementation costs on cost reduction activities as they become embedded in segments.
Calendar 2024 Q4
I think you said you expect Asia Pacific to be the weakest region for the year even though EMEA is starting off weaker
Show response
Blake expected Europe to recover via machine builder normalization. China faces structural challenges with mild deflation. India bright long-term but no heroic growth expected this year.
is that a reported number, an organic number? Maybe you could be a little bit more precise
Show response
Christian confirmed it is a reported number and noted they felt it was notable that orders were back over $2 billion, hence the disclosure.
ITWIllinois Tool Works4 questions · 2 reporting periods · 0 of 4 challenging
Calendar 2025 Q3
it sounds like you've got a fair amount of visibility on Test & Measurement improving in the fourth quarter
Show response
Chris cited normal Q4 seasonal uplift for T&M. Q3 CapEx slowdown was spillover from Q2 tariff uncertainty. Semi decelerated from Q2 green shoots but still growing.
this is the 11th quarter in a row of organic revenue declines and the margins are still going up in the business
Show response
Chris credited portfolio quality, operating in the most attractive parts of the market, and strong business model execution. Confident margins will expand further when revenue recovers.
Calendar 2024 Q4
are you seeing any, like, unusual change in order patterns? People trying to, you know, get in front of maybe just the expiration of this thirty-day cooling-off period
Show response
Michael said too early to tell on tariff-related order changes. Emphasized produce-where-we-sell strategy and assets in all geographies to serve customers.
should we just kinda be thinking about it I don't know. Secular 1% headwind on PLS indefinitely
Show response
Michael said normal PLS maintenance rate is ~0.5%. 2024 was higher due to Specialty Products repositioning. Too early to say if 1% is the new normal. PLS provides strategic clarity that enables CBI.
HONHoneywell International Inc.3 questions · 2 reporting periods · 0 of 3 challenging
Calendar 2026 Q2
maybe just a little color on where you get after those, how quickly you might be able to capture some of those?
Show response
Vimal described combined offerings in hydrogen, sustainable aviation fuel and gas processing, plus services/software attach on JM's installed base, as the driver of sales synergies beyond the cost-synergy-only headline.
I'm wondering if this is more of the same kind of quarter-to-quarter volatility or there's sort of differences in timing
Show response
Vimal said the licensing technologies differ (JM in hydrogen, methanol, ammonia versus UOP's refining, petrochemicals, LNG), but catalyst trends are convergent with no wide differences.
Calendar 2026 Q1
Something wonky in your calendar you're calling June 29, Q3. I'm wondering on the PSS sale, if you could give us a little bit of color on whether or not there's tax leakage
Show response
Mike confirmed no tax leakage on PSS/WWS sales. On Quantinuum, Mark Macaluso cited restrictions on sharing further details beyond the Wednesday release.
IEXIDEX Corporation3 questions · 1 reporting period · 0 of 3 challenging
Calendar 2025 Q2
can you just level set us on what you've accomplished year-to-date, what remains to be done in the back half of the year
Show response
Interim CFO detailed three buckets: $42M platform optimization at run rate ($20M YTD, $11M in Q2), $20M cost containment hitting run rate this quarter ($4M achieved), and baseline productivity dependent on volume ramp in H2.
Can you just aggregate that for us what was your price capture in Q2
Show response
Interim CFO confirmed Q2 price just under 3%, combining traditional annual increases plus tariff-related pricing. Expects slight acceleration as tariff pricing realizes full benefit going forward.
are you expecting some cash flow benefits from the change in R&D deductibility
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Interim CFO confirmed OBB supportive of incremental cash. Also noted state and foreign tax law changes causing Q3 tax rate bump with lower Q4 implied rate.
SWKStanley Black & Decker1 question · 1 reporting period · 1 of 1 challenging
Calendar 2025 Q1
a little surprising actually, fairly surprising that Mexico is only one third USMCA compliant. I wonder if you could kind of go through why that is, how quickly you can rectify that
Show response
Nelson explained USMCA non-compliance stems from historical cost-benefit decisions during NAFTA-to-USMCA transition, now being operationalized. Hallinan clarified rest of world uses current 10% policy rate.
Challenge rate by company
Every company this analyst questioned, most questions first. A company-level rate is shown from 3 questions; below that it is withheld.
| Company | Questions | Challenge rate |
|---|---|---|
| HUBB Hubbell Incorporated | 17 | 12%2 of 17 questions |
| MMM 3M Company | 14 | 14%2 of 14 questions |
| OTIS Otis Worldwide | 14 | 14%2 of 14 questions |
| IR Ingersoll Rand | 13 | 8%1 of 13 questions |
| LII Lennox International | 13 | 38%5 of 13 questions |
| PH Parker Hannifin | 13 | 8%1 of 13 questions |
| CARR Carrier Global | 12 | 17%2 of 12 questions |
| ALLE Allegion | 11 | 27%3 of 11 questions |
| DD DuPont | 11 | 0%none of 11 questions |
| EMR Emerson Electric | 11 | 9%1 of 11 questions |
- HUBBHubbell Incorporated · 17 questions12%2 of 17 questions
- MMM3M Company · 14 questions14%2 of 14 questions
- OTISOtis Worldwide · 14 questions14%2 of 14 questions
- IRIngersoll Rand · 13 questions8%1 of 13 questions
- LIILennox International · 13 questions38%5 of 13 questions
- PHParker Hannifin · 13 questions8%1 of 13 questions
- CARRCarrier Global · 12 questions17%2 of 12 questions
- ALLEAllegion · 11 questions27%3 of 11 questions
- DDDuPont · 11 questions0%none of 11 questions
- EMREmerson Electric · 11 questions9%1 of 11 questions
Show all 23 companies
| Company | Questions | Challenge rate |
|---|---|---|
| TT Trane Technologies | 11 | 0%none of 11 questions |
| VRT Vertiv Holdings Co | 11 | 18%2 of 11 questions |
| DOV Dover Corporation | 10 | 10%1 of 10 questions |
| AME Ametek | 8 | 13%1 of 8 questions |
| ETN Eaton Corporation | 8 | 25%2 of 8 questions |
| FTV Fortive | 8 | 0%none of 8 questions |
| JCI Johnson Controls | 7 | 14%1 of 7 questions |
| VLTO Veralto | 6 | 0%none of 6 questions |
| ROK Rockwell Automation | 5 | 20%1 of 5 questions |
| ITW Illinois Tool Works | 4 | 0%none of 4 questions |
| HON Honeywell International Inc. | 3 | 0%none of 3 questions |
| IEX IDEX Corporation | 3 | 0%none of 3 questions |
| SWK Stanley Black & Decker | 1 | —Rate withheld: fewer than 3 questions |
- TTTrane Technologies · 11 questions0%none of 11 questions
- VRTVertiv Holdings Co · 11 questions18%2 of 11 questions
- DOVDover Corporation · 10 questions10%1 of 10 questions
- AMEAmetek · 8 questions13%1 of 8 questions
- ETNEaton Corporation · 8 questions25%2 of 8 questions
- FTVFortive · 8 questions0%none of 8 questions
- JCIJohnson Controls · 7 questions14%1 of 7 questions
- VLTOVeralto · 6 questions0%none of 6 questions
- ROKRockwell Automation · 5 questions20%1 of 5 questions
- ITWIllinois Tool Works · 4 questions0%none of 4 questions
- HONHoneywell International Inc. · 3 questions0%none of 3 questions
- IEXIDEX Corporation · 3 questions0%none of 3 questions
- SWKStanley Black & Decker · 1 question—rate withheld: under 3 questions
Activity by reporting period
Questions recorded for each calendar quarter that companies’ reporting periods map to (not the call date), with the challenge rate for that period. Periods inside the range with no questions are shown as “No questions recorded”.
| Calendar period | Questions | Challenge rate | Companies |
|---|---|---|---|
| 2024 Q3 | 4 | 0%none of 4 questions | 3 |
| 2024 Q4 | 36 | 6%2 of 36 questions | 18 |
| 2025 Q1 | 33 | 12%4 of 33 questions | 17 |
| 2025 Q2 | 36 | 25%9 of 36 questions | 18 |
| 2025 Q3 | 32 | 13%4 of 32 questions | 17 |
| 2025 Q4 | 21 | 14%3 of 21 questions | 11 |
| 2026 Q1 | 25 | 12%3 of 25 questions | 13 |
| 2026 Q2 | 27 | 11%3 of 27 questions | 18 |
- 2024 Q34 questions · challenge rate 0% (none of 4 questions) · 3 companies
- 2024 Q436 questions · challenge rate 6% (2 of 36 questions) · 18 companies
- 2025 Q133 questions · challenge rate 12% (4 of 33 questions) · 17 companies
- 2025 Q236 questions · challenge rate 25% (9 of 36 questions) · 18 companies
- 2025 Q332 questions · challenge rate 13% (4 of 32 questions) · 17 companies
- 2025 Q421 questions · challenge rate 14% (3 of 21 questions) · 11 companies
- 2026 Q125 questions · challenge rate 12% (3 of 25 questions) · 13 companies
- 2026 Q227 questions · challenge rate 11% (3 of 27 questions) · 18 companies
Topics
Topics tagged on this analyst’s questions.
- Demand78
- Margin46
- Revenue Growth39
- Trade Tariffs39
- Pricing32
- M&A27
- Cost Pressure24
- Supply Chain16
- Competitive Dynamics15
- Inventory14
Show all 21 topics
- Geographic Expansion14
- Guidance Reliability13
- Capital Allocation13
- Capex Investment10
- Macroeconomic9
- Innovation & R&D6
- Regulation Policy6
- Cloud & AI5
- Subscriber Growth4
- Product Launch1
- Fx1