Scott Davis

on the 75F, what are you buying here? You buying the technology? You buying an installed base

Can you go into a little bit more detail? Kind of the mix versus price cost, the challenges that you had there

I would imagine you're pretty much sold out on data center and applied for '26. So when you get a new order in, what you say, in the month of May

Do you guys think we're close to a bottom in China? It's been kind of sloppy for a while

how far below normal do you think channel inventories are in CSA resi?

I'm sure it's not perfect, but I'm just trying to get a sense of that how that orders flows through through revenues

Is there actual structural cost out that we can count on lingering not just into '26, but going forward?

does that impact your ability to get the price that you wanted to get for 2026

will we eventually see productivity on the gross margin line? Or is it more explicitly kind of SG&A productivity

do you think about productivity kind of in traditional ways, like 2% per year, holding headcount flat?

can you talk about where you are today, kind of where you want to be and kind of a realistic time frame

Where are we with stranded costs in the quarter and for the year

you guys have been implementing 80/20. Where are we in that process? And what kind of impact has that had on your top line?

30% seems like a pretty robust number, but I don't really have any context to what that's been historically

How do we cadence that into 2026? Is it more back-end loaded, or do you see real green shoots here early in the year

what is kind of the plan and target there? And will there be -- I saw the buyback announcement, but will there be other deals like spectrum

can you just talk about what you're trying to achieve on that front? I don't have a great sense of where you are today and as it relates to lean

The 1% price, would I assume that's mostly just due to the tieback weakness and some price you have to kind of give up in that business

will there be an effort to capture price to offset the tariff impacts then as well

I wanted just to see if you could give us the tariff numbers broken down into the two businesses

would there be a long-term plan to try to locate that? In China, is there IP protections?

can you size that for us at all? And kind of give us a sense of what kind of growth rates you've seen there?

how do you think about incrementals in 2025 and the sustainability kind of puts and takes of costs coming back?

can we get a little bit of an early read on it? Would you be willing to give us maybe the growth rate

I want to back up a little bit and go into the academic and the government outlook. Is there pent-up demand there?

Congrats. Can you talk about raw materials, just resins, cost?

can you help us understand a little bit of the postmortem other than just the margin impact

have you seen a sizable reload as the cases have picked up

Things seem to be more stable in the last couple of quarters. It's nice to see that

Have they changed over the last few years, just given the tariff and cost inflation dynamics

Is the structural cost out part of the story? Is that behind us now?

is this a case of where kind of, you know, AI spend is crowding out perhaps some of the opportunities

Presumably assets have re-rated lower in the M&A world, although, we -- it's -- we don't have a lot of data points there yet

how do you guys think about the algorithm of kind of long-term growth there versus kind of the reality that maybe the pricing environment

What does AI do for you guys at - it could be broader than just Cepheid

where does Abcam and Aldevron, however, you pronounce it,, where do they sit versus the deal model

Is the EPA mandate that pushing the CO2 stuff out to the right, is that changing anything for your customers?

what do you think the entitlement the new entitlement kinda through cycle growth rate is of this portfolio you have now?

Can you guys give some context to your data center exposure and kind of terms maybe around content per megawatt or opportunity per megawatt?

would you be willing to share the actual growth rate in the thermal connectors? That you had in the quarter?

the other kind of second derivative of all this chaos is potentially M&A valuations getting a bit lower. Is that something you're kind of

is the refrigeration story just about CO2 in 2025? Or is it really also just about pent-up demand

But what kind of lead times are you looking at now? Are you taking orders well into

we lost about a point in the Middle East, and it sounds like you expect to get about a half of that point back

on the opportunity out there in Venezuela and there's to be just a lot of old aging equipment in there that needs a refresh

And are those installs profitable? I mean, how do you -- is it more of a loss leader and then you make money over time

What do you feel like you can do with the asset now that you fully control the outcome that you really couldn't do before?

Paulo, I think you just crossed a year as CEO. Any reflections?

your competitive position in the landscape for solid-state transformers or on the medium voltage side

Are you at the point where you may need to upsize that '26 CapEx number given the order book?

Where do we stand right now with channel inventories? Are they back to kind of more normal levels?

can you get to 40% gross margin once that capacity scales up and ERP spend kind of trails down

are you actually accelerating some plans to build local to local in light of the tariff announcements?

where are we now? I mean, I'm sure transformers are still a pretty long ways out

the $900 million in CapEx, how much of that is growth versus maintenance?

are new products having a tangible impact on top line growth or sometimes see it in price

are there limitations meaning particular businesses that you would not want to bolt-on to

what kind of a tailwind do you think bolt-ons are?

is the $2.90 to $3.00 more a function of you feel like you've got that kind of visibility

Can you get us up to speed on the outlook there and what you're seeing?

how big of a distraction was it to the organization with the spin and the management change kind of at the similar time

how much of that business has just been kind of pushed to the right versus perhaps some real air pockets in demand there?

You mentioned localizing production. Just wanted to kind of explicitly understand what you mean by that

the the new realistic kinda long term growth rate are. I mean, we know what what you thought they were when you did the deals

can you just help us kind of size or at least help us understand the opportunity within the data center?

when you look at your M&A pipeline, is it kind of evenly split between your segments?

do you guys use a vitality index or anything internally and any kind of way to kinda compare the acceleration

I wanted to talk a little bit about price because forever Honeywell was kind of a 1% to 2% price company

I can't remember a quarter with 22% order growth. I know you gave some per segment granularity

you previously said that was kind of 1% to 2% tailwind accretion in '25, I believe, somewhere in that ballpark

what are the hurdles? Specifically, what are you guys looking for to be able to get that to an IPO-ready situation

I just wanted to clarify kind of the cadence of, you know, you got the cost side of tariffs and you have price

If there was a way to kind of rank it by segment, or give us a little color by segment of where the bigger impacts are

What are you thinking timing to name the management teams of the pieces? And will there be an external search for aerospace

you've got $0.52 of below-the-line items and you've got $0.33 of profit contribution from M&A

The M&A pipeline, have valuations come down at all? I know in some areas, they have and some they haven't.

Give us a sense of how you measure it and how you kind of think about the contra account, meaning any cannibalization

up 18% and even up 9% patents are that's pretty big growth. Do you have to spend more to get to that 3%?

you didn't mention M&A at all in the prepared remarks. And is that kinda off the table for '26, or you didn't mention it just because it's more opportunistic?

I'm just kind of amazed that you can increase margins in a down volume environment. I mean, it just doesn't happen very often

How do the hyperscalers think about working with you guys and your peers?

the services order is still a little sluggish. Is there some timing issues there or any dynamic

the 7 lighthouse sites projected in 2 years, I think you're starting with a couple of lighthouse sites now. How does that kind of

since you were there recently, you could just tell us what you're seeing on the ground because clearly we're seeing a broad set of different results

the entrance into CDUs, is the goal here to kinda bundle this into a total solution that, you know, it I would imagine it's still a separate purchase order right now

have you pretty much unwound any remaining matrix within the management, within the structure of the organization?

Have you changed compensation structures meaningfully down into the organization, Joakim?

do you have a better sense, Joakim now of what the -- how you can accelerate growth in Fire & Security

Do you expect those value streams to kind of lead you down the path of SKU rationalization or is that a separate kind of hurdle?

how do you plan to kind of launch lean or deploy lean, I should say an organization this large?

has it changed over time, meaning are the orders a little bit longer duration now than they used to be?

Is there an opportunity for that to scale across more hyperscalers and how do you think about that?

I'd kind of given up on China, but it sounds like China could potentially be a growth engine for you guys again.

you mentioned your factory footprint is down like 10%. Is there another 10%?

Are customer inventories low and there's a little bit of a restock occurring? Or are they balanced?

what is the pricing strategy right now? I mean, it kind of when just listening to the prepared remarks

just as we exited 2025, where is your sense of where your customer inventory levels were or are?

every CEO at 3M has talked about new products, but you seem to be delivering and actually getting results

can 3M actually be a above -- historically, it's been kind of 2%, 3% growth company. Can it be a 4%, 5%, 6%

I mean, historically, when you think about some of your customers have been tough to get price with auto

can you talk about the new product plan? And I guess, kind of more specifically teasing out

is just you feel like you're more or less exposed than your kind of average competitor to the tariff risk

3M is a global company, but it's a very American brand, at least that's the perception. Have you seen any

perhaps you could just frame kind of what you're trying to change with the sales organization

What are the final hurdles left to close the Filtration Group and CIRCOR? Any major hurdles?

is it an increasing -- are you able to drive price kind of in time? I know with -- in some of your products, it runs through distribution, that's less of a challenge sometimes

The time line you give to close Filtration Group kind of 6 to 12 months so you could drive a bus for that. But what are the major gating factors

it's been a few years since you closed Meggitt and, obviously, that's such a great deal for you guys. But Curtis seems like an interesting deal too

Is that an indication that you expect M&A to continue to be more of kind of the smaller bolt-on type stuff? Or am I reading too much into that

I'm trying to kind of picture how 85 different P&Ls kind of manage something that's such a big, complex global issue

M&A, just again, I know you still talk about having a pretty strong pipeline. But any additional color on what we might expect to see whether larger deals, mid-sized

is there any way to kind of tease out what kind of how much operational improvements have really helped you guys, even if you can't quantify it

Any kind of weird stuff out there as it relates to either buying ahead of tariffs or buying ahead of price increases or anything else

what do you see out there in the M&A environment? And is your enthusiasm or, I should say, confidence in getting deals done in higher than it was

Are the tariff price increases actually separate and they come off as soon as tariffs come up?

I haven't heard you mention Plex in a while. Where are we on the deal model on that asset?

are you comfortable sizing it for us and helping us understand kind of what that TAM may look like for your products?

What does that mean as it relates to kind of content intensity and differences? I mean, how meaningful is that change for Rockwell?

are the distributors still a little bit cautious and not restocking yet?

just maybe a little bit more detail. Do you think people will underspend their budgets, or are they just pushing back to the back half of the year?

is getting Process up to Discrete margins something that is more a function of volumes?

what was kind of the postmortem of why it didn't work out?

are you behind the investment curve and you have to catch up. The other is, are you playing offense? So how do you guys look at it?

how big of a deal are the tariff -- I mean so many of those guys are in Europe or even Canada coming down into the US

What are your customers -- I know you're selling to a lot of different end markets, but so maybe perhaps more -- a little bit more discrete and hybrid focused here

21,000 sounds like a lot. I know you sell a lot of stuff, so maybe it's not. But in context, it sounds like a lot

would you expect that there's a little bit of a positive bias to that guidance? Is that fair to say?

you implied that maybe the election caused some noise. Do you see a restock happening imminently is that something that seems possible?

the last time we had tariffs come in, what were the customer responses? Were they more likely to pre-buy and kind of buildup in particular distributors, build up inventory?

are you assuming the Subsplash should be somewhere around segment average EBITDA margin year 5-ish

what do you think your core growth rate or kind of entitlement growth rate has changed kind of, I don't know, just say, 2022 to 2026

it sounds like tariffs are a big kind of nothing burger for you guys and seems somewhat isolated to Verathon. Is that a fair statement?

The poor activity that we're seeing just seems like it could be hitting an air pocket, maybe in 2Q or later in 2Q

Would you consider issuing equity, Neil, if the opportunity set were wide enough, where it would make sense?

do you guys think about that, like how that fill rate should be internal versus external or if there's some optimal

Can you talk a little bit about the ramp you expect in your FAU optical business?

the $150 million bump up, when does that get shipped out?

I just wanted to confirm that. But more importantly, I just wanted to address the scaling of those revenues. How is -- can you walk us through the kind of linkage between the capacity adds and the ...

Can we mark-to-market that forecast? And just as importantly, where are you on kind of the scale impact there where you can get to or above kind of company average margins?

is that business now fully ramped and scaled, meaning like profitability at or above company levels? How do you think about that?

there's another kind of concern that people have, and that is an anti-American sentiment in the supply chain that perhaps certain regions may favor local suppliers

how do you think about incremental leverage in TS when we get a recovery? Do you have costs that need to come back proportional to that recovery

should we expect a little bit of improvement in incremental margins kind of going forward?

did inventories get too low, did we overcorrect and now we need to correct up the other direction?

What particular markets -- I'm assuming that continued just given the orders up 160% has to be pretty broad-based

are you guys operating full out in your factories and your applied facilities right now? Are you fully capacitized

whether orders are broadening out amongst your end markets, you know, like office education, etcetera, or are they narrowing and more of that incremental order strength is in fact data center

Is that -- is there any of that, that's leaking into '27?

What's new in that design? It looked like to me, it almost implied that you guys are making the CDU

your incrementals sequentially went up from kind of 25% to 32%. Was that mostly just a mix?

Has the entire market adjusted? I mean I know your U.S. competitors have followed suit with pricing terms and credit

are your contracts flexible enough to allow surcharges or other mitigation? How does that kind of logistically work?

how has the market responded? Have others come in and been rational? Or have folks come in and kind of fill that white space

Do you measure internally the number of energy audits that you do kind of each quarter? And is there such a thing as kind of thinking about that

can you use AI now to do a digital twin meaningfully faster than you could in the past? Are we there?

you guys in past quarters have kind of talked about this cost-out plan.

how we can think about the TAM in those businesses or opportunities or how big of a potential tailwind

have you seen anything in Videojet in April that would lead you to be a little bit concerned about the customer confidence

help us understand how the mechanics behind mitigation and kind of the timing and when you would expect to be fully offsetting the tariffs

the timing shifts in 2Q revenues, the supply chain congestion comment. Can you give us a little bit more detail on that?

What kind of productivity levels can you run when you try -- I mean, you're adding capacity, obviously, quickly

Can you talk about the prefab market, like how important this market is? Or is there any way to think about a TAM?

is there any incentive perhaps for folks to make an order before the end of the year in 2025 or price or otherwise or getting ahead in the queue

could you give us a little bit more color on perhaps the margin structure of services versus equipment, the growth rate

can just talk a little bit about root cause. Are these the standard things of kind of premium freight and overtime labor

How do you see the mitigation efforts you know, from slide five? How do you see that phasing in through 2025

just switching gears to M&A and potential things to do with your balance sheet,

and I am just kind of curious to hear your view on how it evolves as it scales.

Your balance sheet is starting to look a little bit too good.

there's a certain point where eighty-twenty goes from being a headwind to a tailwind, meaning that you're doing better with the customers that matter the most

your net debt to EBITDA, 0.4x, I think you mentioned. The -- pegs the kind of question on priorities in the next 12 months.

you led in with culture, processes and structure. What do you specifically mean by structure?

the water solutions and service segment, is that is that a little bit too lumpy for us to start picking on quarters

balance sheet still really under levered and you've had a, you know, you've had a lot of market disruptions

Is it fair to assume that the 80/20 headwind is about two points. Does that sound kind of ballpark?

when you joined on-time deliveries was kind of -- went through kind of a dark day, had to get to the other side of it