Group 1 - Enerpac Tool Group's shares declined by 5.9% on June 27th despite a broader market increase [1] - The decline followed the company's financial report, indicating potential concerns among investors [1] Group 2 - Crude Value Insights provides an investing service focused on oil and natural gas, emphasizing cash flow and growth prospects [1] - The service includes a stock model account and in-depth cash flow analyses of exploration and production firms [2]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ——————————— FORM 10-Q ———————————— (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended May 31, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File No. 1-11288 ———————————— ENERPAC TOOL GROUP CORP. (Exact name of registrant as specified in its charter) ———————————— Wisconsin 39-0168610 (State of i ...

Financial Data and Key Metrics Changes - Enerpac's revenue increased by 6% year-over-year to $159 million in Q3 2025, marking record third-quarter revenue since the company's relaunch in 2019 [4][6] - Organic growth, adjusted for foreign exchange and the acquisition of DTA, was 2% [6] - Adjusted earnings per share rose by 9% to $0.51, driven by higher earnings, a lower effective tax rate, and a reduced share count [14] - Adjusted EBITDA increased by 3.4%, with the margin declining by 50 basis points year-over-year to 25.9% due to service project mix and the inclusion of DTA [13][14] - Gross profit margin declined by 140 basis points year-over-year to 50.4% [11] Business Line Data and Key Metrics Changes - The IT and S business saw a 1.5% organic revenue increase year-over-year, with product sales growing by 1% and services by 3% [6] - Cortland Biomedical reported a 19% growth, driven by strong performance in diagnostics, bioprocessing, and robotic surgery [8] Market Data and Key Metrics Changes - The Americas region experienced high single-digit organic growth, driven by demand in aerospace, infrastructure, and nuclear service sectors [9] - The APAC region achieved mid single-digit growth, particularly in heavy lifting technology, benefiting from major rail projects and solar farm opportunities [10] - The EMEA region faced a high single-digit decline, primarily due to a drop in the heavy lifting technology business, although infrastructure and defense markets showed strength [11] Company Strategy and Development Direction - The company is focused on advancing its innovation strategy and has invested in a new innovation lab to enhance R&D capabilities [20] - Enerpac aims to remain price cost neutral amidst tariff impacts and is actively managing expenses to align with market conditions [18][19] - The acquisition of DTA is seen as a strategic move to enhance Enerpac's heavy lifting technology offerings [21] Management's Comments on Operating Environment and Future Outlook - Management expressed caution entering Q4 due to increasing economic and geopolitical uncertainty but remains confident in outperforming industrial peers [5] - The company anticipates delivering towards the lower half of its fiscal 2025 revenue guidance due to current macroeconomic conditions [14] Other Important Information - The company recorded a restructuring charge of $5.9 million, primarily for severance, to right-size its cost structure [12] - Enerpac's net debt was $50 million, resulting in a net debt to adjusted EBITDA ratio of 0.4, indicating a strong balance sheet [15] Q&A Session Summary Question: Customer reactions to tariffs and macro uncertainty - Management noted that while customers are cautious, there have not been significant project cancellations, and underlying investment needs remain [25][26] Question: Revenue pull-forward in anticipation of tariffs - Management indicated there was some minor buying in anticipation of pricing actions, but nothing significant was observed [27] Question: Details on restructuring actions and anticipated cost savings - The restructuring was a response to global uncertainty, with a focus on automation and process standardization to improve efficiency [29][30] Question: Impact of pricing actions on revenue - Pricing actions taken in March and May began to show effects in Q3, with more significant impacts expected in Q4 [36] Question: North American performance drivers - Management highlighted strong performance in aerospace and other diversified end markets as key drivers of growth [38] Question: Outlook for the wind business amid renewable energy credit concerns - Management remains optimistic about the wind market, noting ongoing projects and favorable demand profiles [40] Question: M&A appetite in the current environment - Management confirmed continued focus on M&A as part of growth strategy, with active engagement in discussions with potential sellers [42] Question: Net impact of tariffs expected in Q4 and fiscal 2026 - Management aims to remain price cost neutral despite tariff impacts, with ongoing adjustments to pricing strategies [49] Question: DTA sales performance and guidance - Management expects DTA to come in slightly below original revenue guidance but noted strong order growth and successful cross-selling efforts [51][52] Question: Scalability of the new innovation lab - Management expressed excitement about the new lab's capabilities, which are expected to significantly reduce time to market for new products [60][61]

Financial Data and Key Metrics Changes - Enerpac's revenue increased by 6% year-over-year to $159 million in Q3 2025, marking record revenue since the company's relaunch in 2019 [5][7] - Organic growth, adjusted for foreign exchange and the acquisition of DTA, was 2% [7] - Adjusted EBITDA increased by 3.4%, with a margin decline of 50 basis points year-over-year to 25.9% [13] - Adjusted earnings per share rose by 9% to $0.51, driven by higher earnings and a lower effective tax rate [14] Business Line Data and Key Metrics Changes - The IT and S business saw a 1.5% organic revenue increase year-over-year, with product sales growing by 1% and services by 3% [7][8] - Cortland Biomedical reported a 19% growth, driven by strong performance in diagnostics, bioprocessing, and robotic surgery [8] - The Americas region experienced high single-digit organic growth, particularly in aerospace and infrastructure sectors [9] Market Data and Key Metrics Changes - The APAC region achieved mid single-digit growth, with notable strength in heavy lifting technology and major rail projects in Thailand, Japan, and The Philippines [10] - The EMEA region faced a high single-digit decline, primarily due to a drop in the heavy lifting technology business, although infrastructure and defense markets showed strength [11] Company Strategy and Development Direction - The company is focused on advancing its innovation strategy and has invested in a new innovation lab to enhance R&D capabilities [21] - Enerpac aims to remain price cost neutral amid tariff impacts and is actively managing expenses to align with market conditions [19][20] - The acquisition of DTA is expected to enhance Enerpac's product offerings and operational capabilities, with strong order growth anticipated [22][23] Management's Comments on Operating Environment and Future Outlook - Management expressed caution entering Q4 due to economic and geopolitical uncertainties but remains confident in outperforming industrial peers [6] - The company is monitoring customer reactions to tariffs and macroeconomic conditions, noting no significant project cancellations [28][29] - Future revenue guidance for fiscal 2025 remains at $610 million to $625 million, with expectations to deliver towards the lower half of the range [14] Other Important Information - Gross profit margin declined by 140 basis points year-over-year to 50.4%, attributed to service project mix and the inclusion of DTA [11][12] - Net debt stood at $50 million, with a net debt to adjusted EBITDA ratio of 0.4, indicating a strong balance sheet [15] - The company repurchased approximately 330,000 shares for $14 million during the quarter [16] Q&A Session Summary Question: Customer reactions to tariffs and macro uncertainty - Management noted that while customers are cautious, there have been no significant project cancellations, and underlying investment needs remain [28][29] Question: Revenue pull-forward in anticipation of tariffs - Management indicated there was some minor buying activity but nothing significant [30] Question: Details on restructuring actions and anticipated cost savings - Restructuring included severance and a noncash lease impairment charge, aimed at improving efficiency and cost structure [32][33] Question: Impact of pricing actions taken - Pricing actions were implemented in March and May, with expected positive impacts in the upcoming quarter [39] Question: North American performance drivers - Management highlighted diversified end markets, with aerospace and infrastructure contributing to high single-digit growth [40][41] Question: Outlook for the wind market - Management remains optimistic about the wind market, noting ongoing projects and favorable demand profiles [43][44] Question: M&A appetite in the current environment - Management confirmed continued focus on M&A as part of growth strategy, with active engagement in discussions [46][47] Question: Tariff impact on DTA's cross-selling ability - Management acknowledged that DTA products would be subject to tariffs but noted strong demand from US customers [57][58] Question: Context around the new innovation lab - The new lab is expected to significantly reduce time to market for new products, enhancing overall innovation capabilities [66][67]

Financial Performance - Q3 FY25 - Enerpac Tool Group's net sales for Q3 FY25 were $159 million, a 5.5% increase compared to $150 million in Q3 FY24[5] - Organic growth for Enerpac Tool Group was 2.0% in Q3 FY25[5] - Industrial Tools & Service (IT&S) net sales were $153 million in Q3 FY25, up 5.1% from $146 million in Q3 FY24, with organic growth of 1.5%[5] - Adjusted EBITDA was $41 million, a 3% increase year-over-year[12] - Adjusted EPS was $0.51, a 9% increase year-over-year[12] Segment Performance - Q3 FY25 - IT&S Product sales were $124 million, a 5.6% increase with 1.0% organic growth[5] - IT&S Service sales were $29 million, a 3.1% increase with 3.4% organic growth[5] - Other (Cortland Biomedical) sales were $5 million, an 18.7% increase[5] Profitability - Q3 FY25 - Gross margin was 50.4%, a decrease of 140 bps year-over-year[12] - Adjusted SG&A was 25.5% of sales, a decrease of 160 bps year-over-year[12] - Adjusted EBITDA margin was 25.9%, a decrease of 50 bps year-over-year[12] FY25 Guidance - The company expects to deliver towards the lower half of the range on Sales, Adjusted EBITDA, and Free Cash Flow[14] - Net sales are projected to be $610 million to $625 million, with 0-2% organic growth and 3-6% total growth[15] - Adjusted EBITDA is projected to be $150 million to $160 million[15] - Free cash flow is projected to be $85 million to $95 million[15]

Financial Performance - Consolidated net sales for Q3 fiscal 2025 were $158.7 million, a 5.5% increase from $150.4 million in the prior year[6] - Organic revenue growth was 2%, with IT&S organic growth of 1.5% and 18.7% growth at Cortland Biomedical[6] - Net earnings for Q3 were $22.0 million, compared to $22.6 million in the same period last year, with diluted EPS remaining at $0.41[9] - Adjusted EBITDA for Q3 was $41.0 million, up from $39.7 million year-over-year, with an adjusted EBITDA margin of 25.9%[9] - The company expects full-year net sales guidance of $610 million to $625 million, representing growth of 3% to 6%[13] - Net sales for the three months ended May 31, 2025, increased to $158,661 million, up from $150,389 million in the same period of 2024, representing a growth of 7.5%[25] - Gross profit for the nine months ended May 31, 2025, was $227,985 million, compared to $223,608 million for the same period in 2024, reflecting a slight increase of 1.7%[25] - Operating profit for the three months ended May 31, 2025, was $31,681 million, down from $33,363 million in the prior year, indicating a decrease of 5.0%[25] - Net earnings from continuing operations for the nine months ended May 31, 2025, were $64,668 million, compared to $58,798 million in 2024, showing an increase of 10.0%[25] - The diluted earnings per share from continuing operations for the three months ended May 31, 2025, was $0.41, consistent with the prior year[25] - The company experienced a year-over-year net sales growth of 3.9% for the fiscal year 2025 compared to fiscal year 2024[28] Cash Flow and Capital Management - Cash generated from operating activities for the first nine months of fiscal 2025 was $56.0 million, an increase of approximately $19 million from the prior year[11] - The cash balance as of May 31, 2025, was $140.5 million, up from $132.4 million a year earlier[12] - The net debt to adjusted EBITDA ratio improved to 0.4x as of May 31, 2025, down from 0.5x in the prior year[12] - Cash provided by operating activities for continuing operations was $56,030 million for the nine months ended May 31, 2025, compared to $39,544 million in 2024, an increase of 41.5%[27] - Cash used in financing activities for the nine months ended May 31, 2025, was $39,971 million, down from $51,404 million in the same period of 2024[27] - The company reported a net decrease in cash and cash equivalents of $26,588 million for the nine months ended May 31, 2025, compared to a decrease of $22,053 million in 2024[27] - Free Cash Flow is projected to be between $85 million and $95 million[39] Shareholder Actions - The company repurchased approximately 330,000 shares for a total of $14.0 million in Q3[12] Operational Developments - The company completed its relocation to a new headquarters in downtown Milwaukee, enhancing its R&D capabilities[14] - Capital expenditures for the nine months ended May 31, 2025, were $16,360 million, significantly higher than $4,970 million in the same period of 2024[27] - Capital expenditures are anticipated to be between $19 million and $24 million[39] Adjusted Financial Metrics - Adjusted operating profit for Enerpac Tool was $32,439 million, showing a decrease from $37,000 million in the previous quarter[29] - EBITDA from continuing operations was $31,097 million, compared to $36,035 million in the prior quarter, indicating a decline[30] - Adjusted EBITDA reached $34,874 million, down from $39,672 million in the previous quarter[30] - The adjusted operating profit margin for the Industrial Tools & Services segment was 28.1%, slightly down from 29.9% in the previous quarter[29] - Adjusted net earnings from continuing operations for FY2024 totaled $94.6 million, with adjusted diluted earnings per share at $1.72[35] Future Outlook - The company anticipates continued market expansion and product development in FY2025, with a focus on enhancing operational efficiency[36] - Adjusted diluted earnings per share from continuing operations for Q1 FY2025 are projected at $0.40, reflecting a stable outlook[35] - GAAP Operating Profit for Fiscal 2025 is projected between $135 million and $147 million[39] - Adjusted EBITDA is expected to range from $150 million to $160 million[39] - Cash provided by operating activities is estimated to be between $109 million and $114 million[39]

Core Insights - Enerpac Tool Group Corp. reported a total revenue growth of 6% and organic revenue growth of 2% for the third quarter of fiscal 2025, outperforming the soft industrial sector [3][5] - The company is maintaining its full-year guidance, expecting net sales between $610 million and $625 million, reflecting growth of 3% to 6% [12] Financial Performance - Consolidated net sales for the third quarter of fiscal 2025 were $158.7 million, up from $150.4 million in the prior-year period, marking a 5.5% increase [5][10] - Net earnings for the third quarter were $22.0 million, with diluted EPS remaining stable at $0.41 compared to the previous year [8][10] - Adjusted EBITDA for the third quarter was $41.0 million, an increase from $39.7 million year-over-year, with an adjusted EBITDA margin of 25.9% [8][10] Segment Performance - The Industrial Tools & Services (IT&S) segment saw a 5.1% increase in net sales, driven by organic growth and the acquisition of DTA [6] - Organic growth in IT&S product revenue was 1.0%, while service revenue increased by 3.4% [6] Cost Management - Selling, general and administrative expenses (SG&A) rose to $47.0 million, primarily due to restructuring charges of $5.9 million [7] - Adjusted SG&A expenses, excluding restructuring and M&A charges, decreased slightly to $40.4 million from $40.6 million in the prior year [7] Cash Flow and Capital Expenditures - The company generated $56.0 million in cash from operating activities in the first nine months of fiscal 2025, compared to $37.0 million in the same period last year [9] - Capital expenditures for the first nine months were $16.4 million, significantly higher than $5.0 million in the prior year [9] Balance Sheet and Shareholder Returns - As of May 31, 2025, the company had a cash balance of $140.5 million and a debt balance of $190.9 million, resulting in a net debt to adjusted EBITDA ratio of 0.4x [11] - Approximately $14 million was returned to shareholders through share repurchases during the third quarter [10] Strategic Initiatives - The company completed its relocation to a new headquarters in downtown Milwaukee, enhancing its collaborative environment and R&D capabilities [13]

Financial Performance - Net sales for the three months ended February 28, 2025, were $145.528 million, an increase of 5.9% compared to $138.437 million for the same period in 2024[13] - Gross profit for the six months ended February 28, 2025, was $148.083 million, up from $145.725 million in the prior year, reflecting a gross margin improvement[13] - Operating profit for the three months ended February 28, 2025, was $30.820 million, representing a 4.4% increase from $29.521 million in the same quarter of 2024[13] - Net earnings for the three months ended February 28, 2025, were $20.901 million, compared to $17.817 million for the same period in 2024, marking a 17.5% increase[14] - Earnings per share from continuing operations for the six months ended February 28, 2025, were $0.78, up from $0.67 in the same period of 2024[13] - Net earnings for the six months ended February 28, 2025, increased to $42,624 thousand, up from $35,555 thousand for the same period in 2024, representing a growth of 19%[20] - Total revenues for the six months ended February 28, 2025, were $290,724 thousand, an increase from $280,406 thousand in the prior year, marking a growth of 4%[30] - The basic earnings per share from continuing operations for the three months ended February 28, 2025, was $0.38, an increase from $0.33 for the same period in 2024[65] Assets and Liabilities - Total current assets decreased to $349.399 million as of February 28, 2025, from $372.258 million as of August 31, 2024[17] - Total liabilities decreased to $370.649 million as of February 28, 2025, compared to $385.349 million as of August 31, 2024[17] - As of February 28, 2025, the Company recorded long-term debt of $187.1 million, down from $189.5 million as of August 31, 2024[52] - The total shareholders' equity as of February 28, 2025, was $405.978 million, reflecting an increase from $391.979 million at the end of August 31, 2024[66] Cash Flow and Investments - Cash provided by operating activities from continuing operations was $16,108 thousand, compared to $12,065 thousand for the same period last year, reflecting a 33% increase[20] - Cash used in investing activities for the six months ended February 28, 2025, totaled $38,713 thousand, compared to $5,687 thousand in the prior year, reflecting a substantial increase[20] - The ending balance of cash and cash equivalents as of February 28, 2025, was $119,509 thousand, down from $153,693 thousand at the end of February 2024, representing a decrease of 22%[20] Acquisitions and Restructuring - The Company acquired DTA The Smart Move, S.A. for an initial purchase price of $27.2 million, with a potential earn-out of €12.0 million based on financial objectives, totaling a maximum purchase price of €36.0 million[46] - The acquisition of DTA generated net sales of $3.2 million and $6.4 million for the three and six months ended February 28, 2025, reported within the IT&S segment[50] - The ASCEND transformation program incurred total expenses of approximately $2.0 million and $5.6 million for the three and six months ended February 29, 2024, respectively, with total program costs reaching $74.7 million, including $18.6 million in restructuring charges[41] - The company recognized restructuring charges of $398,000 in the three months ended February 29, 2024, with no restructuring charges reported in the same period of 2025[13] Risk Factors - The company continues to face risks related to supply chain issues and geopolitical instability, which may impact future performance[9] Tax and Compliance - The effective income tax rate for the three months ended February 28, 2025, was 24.5%, a decrease from 29.3% in the prior-year period, primarily due to favorable tax impacts from stock compensation[69] - The Company was in compliance with all financial covenants under the credit facility at February 28, 2025, including a net leverage ratio not exceeding 3.75 to 1.00[54] Segment Performance - IT&S segment net sales for the three months ended February 28, 2025, were $140,716,000, an increase from $134,822,000 for the same period in the prior year, representing a growth of approximately 4.4%[71] - Operating profit for the IT&S segment for the six months ended February 29, 2024, was $76,728,000, compared to $72,900,000 for the same period in the prior year, indicating an increase of about 5.0%[71] Share Repurchase - The Company has repurchased a total of 30,411,708 shares for $853.4 million since the inception of its share repurchase program in fiscal 2012[63] - In the six months ended February 29, 2024, the Company repurchased and retired 1,094,231 shares for $30.1 million[64] - The maximum number of shares that may yet be purchased under the current repurchase program is 2,387,522 shares[64]

Financial Data and Key Metrics Changes - Organic sales grew 5% year-over-year, reflecting above-market growth despite a soft industrial sector [5][6] - EBITDA margins were 23.2% for the quarter, slightly down from the prior year due to mix impact, but still at top-tier levels [6][16] - Adjusted earnings per share increased to $0.39 from $0.36, an 8% increase year-over-year [16] Business Line Data and Key Metrics Changes - IT&S business revenue increased 4% organically year-over-year, with product sales up 4% and services up 3% [9] - Cortland Biomedical reported a growth of 33% in the other segment, rebounding from previous shipment delays [10] - Gross profit margins declined 110 basis points year-over-year to 50.5%, impacted by a higher growth in HLT business with lower margins [13][14] Market Data and Key Metrics Changes - High single-digit growth was achieved in the Americas, driven by share gains from the Enerpac Commercial Excellence (ECX) program [10][11] - APAC region also saw high single-digit growth, particularly in India and Singapore, while Australia faced challenges [12] - EMEA region experienced a low single-digit decline in sales, breaking a two-year growth pattern, but still outperforming the market [12] Company Strategy and Development Direction - The company maintains its full-year fiscal 2025 guidance, focusing on global brand leadership and customer-driven innovation [6][32] - The ECX program is being expanded to improve commercial effectiveness and sales funnel management [11][52] - The integration of DTA into the HLT business is progressing well, with cross-selling opportunities being leveraged [28][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the power generation and refinery sectors, with positive sentiment from customers [20][21] - The company remains cautious about macroeconomic uncertainties and potential tariff impacts on inflation and growth [32][56] - Infrastructure investments are expected to increase, particularly in Europe, with a favorable outlook from government spending packages [25][26] Other Important Information - The company repurchased approximately 220,000 shares totaling $10.2 million during the quarter [19] - Cash flow from operations was $16 million, up from $7 million in the previous year, with free cash flow slightly up year-over-year [18] Q&A Session Summary Question: Can you provide more color regarding the mix shift toward HLT and expectations for the back-half of the year? - Management noted strong growth in HLT, particularly in the U.S. and Europe, impacting gross margins due to the mix shift [36][37][38] Question: How is the DTA integration going relative to your expectations? - The DTA integration is progressing well, with positive customer response and order activity [40][41] Question: Can you provide more detail on the commercial excellence program and its impact on the Americas? - The ECX program has improved sales funnel management and visibility, contributing to broad-based growth in the Americas [48][52] Question: What are your thoughts on the potential impact of tariffs? - The company is in a favorable position regarding direct impacts from tariffs, with minimal imports from affected regions [55][56] Question: Can you provide updates on the M&A pipeline? - The M&A pipeline remains robust with active conversations and a focus on high-quality, complementary businesses [83][86]

Financial Data and Key Metrics Changes - Organic sales grew by 5% year-over-year, reflecting above-market growth despite a soft industrial sector [5][6] - EBITDA margins were reported at 23.2%, slightly down from the previous year due to mix impacts, but still at top-tier levels [6][16] - Adjusted earnings per share increased to $0.39, an 8% rise compared to $0.36 in the prior year [16] - Net debt stood at $73 million, resulting in a net debt to adjusted EBITDA ratio of 0.5% [17] Business Line Data and Key Metrics Changes - IT&S business revenue increased by 4% organically, with product sales up by 4% and services by 3% [9] - Cortland Biomedical reported a significant growth of 33% in the other segment, rebounding from previous shipment delays [10] - Gross profit margins declined by 110 basis points year-over-year to 50.5%, influenced by a higher growth in the HLT business, which has lower gross margins [13][14] Market Data and Key Metrics Changes - High single-digit growth was achieved in the Americas, attributed to share gains from the Enerpac Commercial Excellence (ECX) program [11] - The APAC region also experienced high single-digit growth, with notable industrial and construction growth in India and Singapore [12] - The EMEA region saw a low single-digit decline in sales, breaking a two-year growth pattern, but still outperforming the market under macro pressures [12] Company Strategy and Development Direction - The company is maintaining its full-year fiscal 2025 guidance, focusing on global brand leadership, targeted growth strategies, and customer-driven innovation [6][32] - The ECX program is being expanded to improve commercial effectiveness and sales funnel management [11][52] - The integration of DTA into the HLT business is progressing well, with cross-selling opportunities being leveraged [28][41] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the nuclear business in the U.S. and positive sentiment in the refinery and petrochemical sectors [20][21] - There is cautious optimism regarding the wind market, with strong domestic performance and growth opportunities in Europe and Asia [24][25] - The company remains vigilant about macroeconomic uncertainties and potential tariff impacts, but feels well-positioned to adapt [32][56] Other Important Information - Cash flow from operations was $16 million for the first half of fiscal 2025, compared to $7 million in the previous year [18] - The company repurchased approximately 220,000 shares of common stock totaling $10.2 million [19] - Enerpac's new headquarters in downtown Milwaukee is set to open soon, designed to meet the company's specific needs [32][90] Q&A Session Summary Question: Can you provide more color regarding the mix shift toward HLT and expectations for the back-half of the year? - Management noted strong growth in HLT, particularly in the U.S. and Europe, impacting gross margins due to the mix shift [36][37][38] Question: How is the DTA integration going relative to your expectations? - The DTA integration is progressing well, with positive customer responses and order activity [40][41] Question: Can you provide more detail on the commercial excellence program and its impact on the Americas? - The ECX program has improved sales funnel management and visibility, contributing to broad-based growth in the Americas [48][52] Question: What are your thoughts on the potential impact of tariffs? - The company is in a favorable position regarding direct impacts from tariffs, with negligible imports from Canada and Mexico [56][58] Question: Can you provide updates on the M&A pipeline? - The M&A pipeline remains robust with active conversations and a focus on high-quality, complementary businesses [84][86]