Scott Graham

Zapico expressed high excitement, cited progressing integration/regulatory approval, a close expected in 2H, and growing confidence in the 10-12% cost synergy.

CEO attributed the 110bps core margin gain to ~40% incrementals in both groups, EMG/Paragon (+290bps), $160M productivity, and positive price/cost.

Zapico walked through all subsegments: Process up mid-teens (organic low single digits, guide raised to low-to-mid-single digits), Power up low single digits with record orders, Automation up high single digits.

Would welcome defense M&A but don't need it to grow. A&D ~18% of sales, defense slightly larger than commercial. Abaco computing, Rotron/Ear cooling, power systems for UAVs all competitive. European defense expansion creating additional opportunities. Strategy: niche technologies with strong positions.

30% vitality includes data center product reconfiguration from defense, but broadly bottom-up across all businesses. Engineering capability producing strong product development. Technology road maps give confidence entering strengthening market with right products.

AMETEK averaged 4% organic growth over Zapico's 9-year CEO tenure. Well positioned for growth across all businesses as industrial economy recovers from 2+ years of sub-50 PMIs.

Process positives: medtech (Rauland), food (MOCON ~3-4% of sales). Neutral: oil & gas. Negatives: semiconductor and research/academia markets.

Positive price/cost spread in Q2 expected to continue for the year. Pricing increases described as selective. Confident tariff and inflation costs will be offset.

Valuations modestly lower but not bargain-level. Net debt/EBITDA at 0.7x provides significant capacity. Willing to be opportunistic on both M&A and buybacks during dislocation.

Defense expected to grow in H2 with optimism around congressional funding. Aftermarket diversified between U.S. and international, providing offset if one market softens.

Anderson explicitly declined to quantify the pre-buy and redirected to the prepared-remarks phasing commentary; Shafer separately covered the wholesale competitive dynamics.

Pushed back on 'jump ball' characterization, described ongoing channel dynamics that intensify when market growth slows, and noted reactions to share movements typically resolve over time.

Clarified the water management pivot is not abandoning water treatment, and the acquisition pipeline has been visible for some time given overlapping go-to-market channels in the plumbing space.

Chuck noted August was sharply down, September also weak on residential. October orders show no resiliency especially in wholesale channel tied to new construction. Supports the flat-to-slightly-down outlook.

Steve identified two drivers: China outlook lowered to down 10% and U.S. residential softened from flat to flat-to-slightly-down on housing weakness.

Steve firmly stated no pricing rollback. Q2 tariff impact was minimal due to timing; full tariff and steel cost impact hits in H2 where pricing is needed to offset.

Steve reiterated the assessment is about understanding full range of alternatives, not a predetermined outcome. Internal improvements continue in parallel.

Chuck framed it as consumer confidence rather than housing specifically, noting wealth tied to real estate and the premiumization dynamic that benefits AOS products.

Kevin confirmed proactive replacement still tracking at elevated post-COVID levels. Replacement is 85-88% of business, providing stability.

Steve confirmed 4% March 2024 carryover. Kevin deflected on future price increase timing, pointing to historical track record of offsetting inflation over time.

Norwitt named instrumentation, factory automation, electrification, battery, heavy equipment, alternative energy and safety as strong, alongside 18% organic growth.

Norwitt detailed strong double-digit growth in instrumentation, electrification, oil and gas, lighting, medical, heavy equipment, factory automation. Minor softness only in marine and RMT.

Norwitt emphasized broadest technology offering and scaled capacity. Trexon expands value-add interconnect capabilities. International defense insulated by operating as local companies in 40+ countries with no expats, operates as French company in France, UK company in UK.

Norwitt emphasized long-term relationship-based M&A approach across all end markets. Interconnect market estimated at over a quarter trillion dollars with significant room to grow.

Lampo attributed margin expansion to both higher technology organic products and acquisition profitability improvement but did not quantify the split.

Norwitt said pipeline remains robust but not necessarily changed by macro uncertainty. Cited 15 acquisitions in 9 quarters and Amphenol's reputation as acquirer of choice.

Norwitt explained that both EV and ICE vehicles drive content growth through electronics expansion, and Amphenol is largely drivetrain-agnostic.

Core growth tracking toward upper end of 2-3% range with Fluke being ~40% of business. See no ceiling for Fluke on multiyear basis. Committed to making great business even more extraordinary from profitable growth perspective.

Productivity remains as strong as ever but now being deliberately reinvested in growth. 50-100bps framework is intentional to create space for growth investment. President's Kaizen Week next week. Productivity baked into framework alongside deliberate growth investment.

Soroye confirmed strong outlook for FAL with no ceiling on growth. All three operating brands strengthening. Expects strong year of continued acceleration. Will deliver on financial framework and potentially more.

Consumables, services, and software all growing steadily. Pressure concentrated in capital equipment where revenue recognition is more concentrated per transaction. Capital got progressively better Q2→Q3→Q4. Getting better weekly. Customers love their products.

Q4 price was 3%, gross margins expanded 10 bps. $20M restructuring funded in Q4 with benefits layering in gradually, about a penny of benefit in Q1.

Balance sheet supports larger-scale acquisitions. Pipeline focused on T&D, data center, and light industrial with both bolt-ons (growing larger) and larger deals available. $168M Q1 share buyback at sub-$500 average. Capital allocation hierarchy: CapEx first, then M&A, then buybacks.

No significant supply chain constraints. Minor disruption from Middle East aluminum sourcing redirected to alternative qualified global suppliers. No constraints in chips, metals, or component parts. Supply chain holding up well to support customer demand.

Substation is early in investment cycle, bolstered by Systems Control and DMC acquisitions expanding scale and scope. Attractive market both with and without data center driver. Some data center projects directly adjacent to substations but broader utility grid interconnection investment also driving demand. Aging infrastructure adds another layer.

Did not walk away from specific business but pivoted strategy away from large IOU technology adoption (proven difficult) back to strong muni/co-op core. Cost restructured, margin expected to improve. Business fits portfolio but portfolio review is ongoing. Small percentage of overall utility segment.

CFO confirmed both industrial and commercial businesses within Flow delivered strong top-line and margin expansion.

CFO confirmed Q1 benefited from carryover pricing. Price increases implemented in Q2 last year create tougher comps going forward.

CEO outlined four investment categories: demand generation through dealer channel, sales excellence/coverage, marketing and value propositions, and technology/innovation. All have digital lens. Prioritized in pool, commercial water, and C&I businesses.

CEO clarified: April significant increases (75%), May modest if needed, June more modest. Phased approach allows reaction to changing tariff landscape.