Financial Data and Key Metrics Changes - The company reported FFO per share for Q1 2025 at $1.64, in line with forecasts [39] - The first quarter leasing volume was over 1,100,000 square feet, which is 25% higher than Q1 2024 and 33% higher than the previous four quarters [6][7] - The company narrowed its 2025 FFO guidance range to $6.80 to $6.92 per share, reflecting increased confidence in leasing activity [43][44] Business Line Data and Key Metrics Changes - The leasing activity included 467,000 square feet on vacant space and 561,000 square feet related to known expirations in 2025, indicating a focus on near-term exposure [20] - The development pipeline saw a significant increase in pre-leasing, with a jump from 50% to 62% pre-leased on the development pipeline [24] - The company signed a 160,000 square foot lease at 1050 Winter Street, contributing to the repositioning of the building [42] Market Data and Key Metrics Changes - The office sales volume in Q1 was $7.6 billion, down approximately 14% from the previous year, indicating market volatility [11] - Direct vacancy for premier workplaces is just over 13%, compared to 19% for the broader market, highlighting the strength of high-quality assets [11] - The overall mark to market on cash basis was up about 5%, with increases in Boston and flat conditions in New York [27] Company Strategy and Development Direction - The company is focusing on high-quality assets, with a strategy to pivot from life science development to office use in response to market demand [17][22] - New developments include a 70-unit multifamily project in Jersey City and a 930,000 square foot office project at 343 Madison, with significant interest from potential tenants [13][15] - The company is evaluating additional asset monetization opportunities, including the sale of land sites expected to generate approximately $250 million [15] Management's Comments on Operating Environment and Future Outlook - Management expressed concerns about potential impacts from tariffs and federal funding cuts, but noted that client demand has remained stable [7][10] - The company anticipates that leasing demand may slow if a recession occurs, but expects interest rates to decrease, which could benefit occupancy [10] - Management remains optimistic about future occupancy growth, with only 3.9% portfolio lease rollover in 2026 and 5.1% in 2027 [18] Other Important Information - The company completed over $4.2 billion in financing activity, demonstrating strong access to capital [7] - The company is actively engaged in the debt capital markets, with significant refinancing and new loans completed in Q1 [38][39] - The company is experiencing increased foot traffic and retail activity in certain areas, indicating a positive trend in local markets [10] Q&A Session Summary Question: Regarding 343 Madison, how is the company sizing up the start and pre-lease? - The company aims to pre-lease the building, targeting a yield of 8% and will make a decision on moving forward by July [46][50] Question: How confident is the company in the 4 million square feet leasing plan for 2025? - The company is more than halfway to its leasing goal and is confident in occupancy growth as many leases will commence in 2025 and 2026 [54][57] Question: What are the trends in the life science market? - The company has seen little new demand for lab space but is experiencing interest from life science organizations seeking office space [70][71] Question: What is the outlook for West Coast leasing activity? - The company notes strong activity from law firms and financial services, with smaller AI companies also looking for space [78][80] Question: How is the company addressing leverage and funding? - The company acknowledges a slight increase in leverage but expects it to moderate as developments come online and income increases [82][85]

Financial Data and Key Metrics Changes - The company recorded revenue of $1.4 billion for the first quarter, representing a 4% increase year-over-year, primarily driven by a 30% increase in used unit sales [13] - Adjusted EBITDA rose to $31.1 million compared to $8.2 million in the previous year, indicating significant operational improvement [14] - The company ended the quarter with approximately $179 million in cash, including about $158 million in the floorplan offset account [15] Business Line Data and Key Metrics Changes - Used vehicle gross margins improved to 18.6%, reflecting year-over-year growth as fresh inventory was aggressively brought back into the system [13] - The company opened nine new dealerships during the quarter, with five Lazydays locations becoming profitable in March, contrasting with previous cumulative EBITDA losses [11][12] Market Data and Key Metrics Changes - The company achieved a combined new and used unit market share of over 14% through February, indicating strong competitive positioning [10] - Used same-store unit sales were up in the high teens in April, while new unit sales increased in the high single digits [10] Company Strategy and Development Direction - The company aims to improve SG&A as a percentage of gross profit by 600 to 700 basis points, focusing on cost reduction and operational efficiency [5][14] - The management emphasized a commitment to selling more RVs, improving margins, and reducing costs, with a focus on profitability and market share growth [5][9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving growth in excess of low double digits in used units and low single digits in new units, despite some pressure on average selling prices (ASP) [9] - The company does not foresee significant fallout from tariff impacts on the RV industry, maintaining a positive outlook for demand and pricing stability [28][29] Other Important Information - The company has made strategic investments in its roadside assistance business to stabilize margins and drive earnings growth later in 2025 [13] - Management highlighted the importance of understanding consumer affordability and the potential for RV ownership as a cost-effective alternative for family vacations [41] Q&A Session Summary Question: ASP softness and promotional support from OEM partners - Management noted that ASP softness was not driven by excessive promotions and emphasized responsible inventory planning and collaboration with manufacturers [18][19] Question: Acceleration in same-store sales in April - Management attributed the acceleration to improved weather conditions and easier comparisons from the previous year, with confidence in maintaining low single-digit growth for the year [23][24] Question: Impact of tariffs on pricing - Management does not anticipate significant price increases before the model year changeover and believes any increases will benefit the used business [28][29] Question: Durability of balance sheet amid economic slowdown - Management reassured investors of a healthy balance sheet with significant cash reserves and plans to continue paying down debt [34][36] Question: Strength in business despite consumer confidence softness - Management highlighted the stable foundation of the RV market and the appeal of RV ownership as an affordable alternative for families [41] Question: Used business outperformance - Management credited effective sourcing strategies and record procurement efforts for the strong performance in the used segment [46] Question: Cost reduction actions and their impact - Management detailed the $35 million annualized cost reduction plan, emphasizing that most of the cuts have been implemented and will positively impact the bottom line [52][54] Question: Market consolidation and M&A outlook - Management indicated that consolidations are accretive to the bottom line and expressed a willingness to pursue opportunistic acquisitions while focusing on cash generation and deleveraging [72][78]

Financial Performance - Q2 2025 revenue was $716 million, a decrease of 9% compared to Q2 2024[9, 14] - Q2 2025 adjusted EBITDA was $99 million, a decrease of 19% compared to Q2 2024[14] - Q2 2025 adjusted EPS was $0.60, a decrease of 21% compared to Q2 2024[9, 15] - Net debt to adjusted EBITDA ratio was 3.4x as of March 31, 2025[34] Segment Performance - Advanced Process Solutions (APS) revenue decreased by 12% to $494 million in Q2 2025[20] - APS adjusted EBITDA decreased by 22% to $79 million in Q2 2025[20] - Molding Technology Solutions (MTS) revenue decreased by 2% to $222 million in Q2 2025[25] - MTS adjusted EBITDA decreased by 4% to $32 million in Q2 2025[25] Guidance and Outlook - Updated FY25 revenue guidance is $2.555 billion to $2.620 billion, a decrease of (20%) – (18%) year-over-year[35] - Updated FY25 adjusted EPS guidance is $2.10 to $2.45, a decrease of (37)% - (26)% year-over-year[35] - Direct tariff costs are estimated at approximately $15 million for the second half of FY25[9, 10]

Financial Performance - Sales and Revenues decreased by $1550 million, a 10% decrease, from $15799 million in 1Q 2024 to $14249 million in 1Q 2025[23, 24] - Operating Profit decreased by $940 million, a 27% decrease, from $3519 million in 1Q 2024 to $2579 million in 1Q 2025[27, 28, 29] - Adjusted Profit per Share decreased from $560 in 1Q 2024 to $425 in 1Q 2025[10, 19] - ME&T Free Cash Flow for 1Q 2025 was $02 billion, a decrease compared to 1Q 2024, primarily driven by lower profit[13, 14, 47, 48] Segment Performance - Construction Industries total sales decreased by $1240 million, a 19% decrease, and segment profit decreased by $740 million, a 42% decrease[32, 33] - Resource Industries total sales decreased by $309 million, a 10% decrease, and segment profit decreased by $131 million, an 18% decrease[35, 36] - Energy & Transportation total sales decreased by $113 million, a 2% decrease, while segment profit increased by $13 million, a 1% increase[38, 39, 40] - Financial Products total revenues increased by $16 million, a 2% increase, while segment profit decreased by $78 million, a 27% decrease[42, 43, 44] Future Outlook - The company expects 2025 full-year sales and revenues to be about flat compared to 2024, an improvement from previous expectations of a slight decrease[51] - The company expects 2Q 2025 sales and revenues to be similar to 2Q 2024[52]

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.56 for Q1 2025, down from $0.76 in Q1 2024 and $0.55 in the previous quarter [19] - Core earnings per share were $0.50, compared to $0.59 a year ago and $0.55 in the prior quarter, primarily due to a decline in portfolio yields [19][20] - The total portfolio at fair value increased to $27.1 billion from $26.7 billion in the previous quarter and $23.1 billion a year ago [21] Business Line Data and Key Metrics Changes - The company originated $3.5 billion in new investment commitments during Q1 2025, with approximately 60% coming from existing borrowers [26] - The weighted average yield on debt and other income-producing securities at amortized cost was 11.1% at the end of Q4 2024, down to 10.1% by the end of Q1 2025 [20] - The average debt to EBITDA ratio for portfolio companies was 5.7 times, the lowest since Q1 2020, indicating improved leverage [29] Market Data and Key Metrics Changes - New transaction activity in the liquid loan market dropped significantly as banks became more cautious, while the direct lending market remained stable [10][11] - The company noted increased volatility and widening spreads in secondary loan markets, with banks transitioning to a risk-off position [10][11] - The company has a significant amount of available capital totaling nearly $6.8 billion, positioning it well for new investments [14] Company Strategy and Development Direction - The company aims to capitalize on opportunities arising from market volatility, leveraging long-standing relationships to source deals [12][13] - The focus remains on service-oriented businesses that are more insulated from tariff impacts, with proactive engagement with portfolio companies to mitigate risks [15][17] - The company declared a quarterly dividend of $0.48 per share, marking the 63rd consecutive quarter of stable or increasing dividends [17][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating future market conditions, citing a strong investment team and a healthy portfolio [12][13] - The company anticipates a slower M&A environment but believes long-term drivers for M&A remain intact [11] - Management highlighted the importance of proactive communication with market participants to ensure readiness for new opportunities [12] Other Important Information - The company has a low non-accrual rate of 1.5% at cost, down from 1.7% in the previous quarter, indicating strong credit quality [29] - The company has a significant taxable income spillover estimated at $883 million or $1.29 per share available for distribution in 2025 [24] Q&A Session Summary Question: Impact of private BDCs on pricing and competitive position - Management noted that spreads have already begun to widen, indicating a shift in the market dynamics, and expressed confidence in outperforming competitors [35][36] Question: Analysis of tariff exposure - Management conducted a thorough analysis of portfolio companies' exposure to tariffs, finding a mid-single-digit percentage of companies potentially impacted [39][41] Question: Outlook on M&A deal volume - Management acknowledged the slowdown in M&A activity but emphasized their ability to capture market share in the current environment [45][47] Question: Strategies for managing rising costs of liabilities - Management highlighted their historical ability to maintain consistent ROE and mentioned potential strategies such as leveraging and utilizing spillover income [51][54] Question: Backlog and deal closure uncertainty - Management indicated that while there may be some uncertainty regarding the backlog due to market volatility, they remain optimistic about closing existing deals [75][77]

Financial Data and Key Metrics Changes - The company reported sales of $964 million in Q1 2025, a decrease of 2% year-over-year, and earnings of $0.95 per share, down 5% compared to the prior period [11][12] - North America segment sales were $749 million, also a 2% decrease, with segment earnings of $185 million, down 7% year-over-year [11][12] - The overall segment margin was 24.7%, a decrease of 120 basis points year-over-year, primarily due to lower water heater volumes and continued strategic investments [11][12] Business Line Data and Key Metrics Changes - North America water heater sales declined by 4% in Q1 2025, driven by lower volumes, while boiler sales increased by 10% compared to Q1 2024 [7][9] - North America water treatment sales saw slight growth, offsetting retail declines as the company shifted focus away from that channel [9] - Rest of the world segment sales were essentially flat at $227 million, with earnings increasing by 15% due to expense management [12][13] Market Data and Key Metrics Changes - In China, third-party sales decreased by 4% in local currency, reflecting ongoing economic weakness and soft consumer demand [7][10] - The company anticipates a 5% to 8% decrease in sales in China for 2025, with a focus on maintaining premium brand positioning despite market challenges [24][25] Company Strategy and Development Direction - The company is focused on managing costs and optimizing production schedules to ensure efficiency, particularly in response to tariff-related cost increases [8][21] - A significant initiative for 2025 includes leveling production across the year to enhance plant efficiencies [8] - The company is actively pursuing acquisitions and has a robust pipeline, with a planned share repurchase of $400 million for the full year [14][15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the volatile macro environment, emphasizing the stability provided by core water heater and boiler businesses [30][31] - The company is cautious about the near-term market outlook, particularly in China, where consumer confidence remains low [25][71] - The guidance for 2025 EPS remains unchanged at $3.60 to $3.90 per share, despite uncertainties related to tariffs and input costs [15][16] Other Important Information - The company repurchased approximately $121 million worth of shares in Q1 2025, front-loading part of its annual repurchase outlook [14] - The company opened a new commercial R&D testing lab in Lebanon, Tennessee, aimed at enhancing product development and engineering capabilities [29] - A. O. Smith was recognized as one of the world's most ethical companies for the second consecutive year, highlighting its commitment to ethical business practices [30] Q&A Session Summary Question: Demand destruction around pricing actions - Management indicated that pricing actions are expected to cover costs, with a stable replacement business providing some insulation against demand destruction [35][36] Question: Clarification on tariff exposure - The 6% to 8% tariff exposure includes costs related to imports, particularly from China, and is expected to impact the cost of goods sold [38][40] Question: Sequential demand expectations - Management expects a relatively normal seasonal demand pattern, with no significant changes anticipated in order rates [45][46] Question: Pricing actions and market dynamics - Pricing actions have been communicated to customers, and the company is working closely with them to manage the implications of tariffs and pricing changes [92][93] Question: China market outlook - The company is cautious about the Chinese market, focusing on consumer confidence as a key driver for recovery, rather than solely on the housing market [71][77]

Financial Data and Key Metrics Changes - Transocean reported an adjusted EBITDA of $244 million on contract drilling revenues of $906 million, resulting in an adjusted EBITDA margin of approximately 27% [9][23] - The company experienced a net loss attributable to controlling interest of $79 million, equating to a net loss of $0.11 per diluted share [23] - Cash flow from operating activities was $26 million, while free cash flow was negative $34 million due to $60 million in capital expenditures [23][24] - Total liquidity at the end of the first quarter was approximately $1.3 billion, including $263 million in unrestricted cash [25] Business Line Data and Key Metrics Changes - Contract drilling revenues exceeded guidance primarily due to higher utilization on the Transocean Spitzbergen and Transocean Endurance [23] - Average daily revenue was approximately $444,000, with operating and maintenance expenses at $618 million, which was within guidance [23][24] Market Data and Key Metrics Changes - The U.S. Gulf is expected to see up to six programs commence in the second and third quarters of 2026, with three expected to come from public tenders [15] - In Brazil, Petrobras is increasing its rig count and has released tenders for upcoming projects, indicating a strong market outlook [16] - The company anticipates growth in West Africa, with multi-year opportunities expected to arise in 2026 [60] Company Strategy and Development Direction - Transocean is focused on converting its $7.9 billion backlog into revenue and cash to create sustainable value for shareholders [22] - The company is committed to delivering safe, reliable, and efficient operations while optimizing performance and maximizing shareholder returns [6][22] - Management emphasized the importance of deepwater drilling and the strategic shift among European majors towards oil and gas investments [11][14] Management Comments on Operating Environment and Future Outlook - Management noted that market volatility has not materially impacted business operations, with no planned programs delayed or canceled [13] - The outlook for deepwater drilling remains positive, with projections indicating a 40% increase in deepwater investment by 2029 [14][86] - Management expressed confidence in the future of offshore drilling, citing strong fundamentals and increasing offshore drilling activity [21][88] Other Important Information - The company has identified approximately $100 million in cash cost savings for 2025, with a similar amount expected for 2026 [34][70] - There are no significant costs associated with achieving these savings, which primarily come from renegotiating contracts and utilizing local crews [72] Q&A Session Summary Question: Timing of contract announcements - Management expects several contract announcements throughout the year, particularly in the second half, with a focus on long-term awards [44] Question: Day rates for upcoming contracts - There may be near-term pressure on day rates for short-term work, but long-term contracts are expected to remain stable [46][47] Question: Implications of Shell awards from Noble - Management believes there are still opportunities with Shell, as they anticipate additional demand in the Gulf of Mexico [54] Question: Activity assumptions for West Africa - Management sees potential growth in West Africa, with expectations for multi-year opportunities starting in 2026 [60] Question: Cost savings details - Management confirmed $100 million in identified savings for 2025, with a similar expectation for 2026, primarily from operational efficiencies [70] Question: Status of idle and cold stacked vessels - The company is actively looking for opportunities for its idle vessels and continues to assess its cold stacked fleet [76][78]

Financial Data and Key Metrics Changes - The company reported GAAP net income per share of $0.60 for Q1 2025, down from $0.76 in Q1 2024 and $0.55 in the previous quarter [19] - Core earnings per share were $0.50, compared to $0.59 a year ago and $0.55 in the prior quarter, primarily due to a decline in portfolio yields [19][20] - The total portfolio at fair value increased to $27.1 billion from $26.7 billion in the previous quarter and $23.1 billion a year ago [21] Business Line Data and Key Metrics Changes - The company committed $3.5 billion in gross commitments during the first quarter, a 54% increase compared to the same period last year [9][10] - The weighted average yield on debt and other income-producing securities at amortized cost was 11.1% at the end of Q4 2024, down to 10.1% by the end of Q1 2025 [20] - The portfolio companies reported a 12% weighted average LTM EBITDA growth, up from 11% in the prior quarter [28] Market Data and Key Metrics Changes - New transaction activity in the liquid loan market dropped significantly as banks became more cautious, leading to increased volatility and widening spreads in secondary loan markets [10][11] - The direct lending market remained stable, with certain transactions shifting from the syndicated loan market to private credit solutions [11] Company Strategy and Development Direction - The company aims to leverage its strong liquidity and conservative balance sheet leverage to capitalize on potential investment opportunities in a potentially improving spread environment [10][14] - The focus remains on domestic service-oriented businesses, which are believed to be more insulated from the impacts of higher tariffs [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate future market conditions, citing a seasoned investment team and strong relationships in the market [12][13] - The company declared a quarterly dividend of $0.48 per share, marking the 63rd consecutive quarter of stable or increasing dividends [17][24] Other Important Information - The company has nearly $6.8 billion in total available liquidity, positioning it well for future investments [22] - The non-accrual rate at cost ended the quarter at 1.5%, down from the previous quarter, indicating strong portfolio health [29] Q&A Session Summary Question: Will private credit provide similar or lower pricing than banks? - Management noted that spreads have already started to widen, indicating a shift in the market dynamics [35][36] Question: What is the exposure to tariffs for portfolio companies? - The company conducted a thorough analysis and found a mid-single-digit exposure to companies importing from high-tariff countries, emphasizing that this is an exposure analysis, not an impact analysis [39][41] Question: How does the company plan to manage earnings against rising costs of liabilities? - Management highlighted the ability to adjust leverage and utilize spillover income to manage costs effectively [50][54] Question: Is there a trend in portfolio stress or sectors experiencing issues? - Management indicated that there are no significant trends observed in portfolio stress at this time [102] Question: What is the outlook for new investment opportunities? - Management expressed optimism about the potential for larger deals in the private credit market, indicating a readiness to pivot as market conditions change [84][85]

Financial Data and Key Metrics Changes - The company reported first quarter sales of $964 million, a decrease of 2% year over year, with earnings per share at $0.95, down 5% compared to the prior period [14][19] - North America segment sales were $749 million, also a 2% decrease, with segment earnings of $185 million, down 7% year over year [14][15] - The overall segment margin was 24.7%, a decrease of 120 basis points year over year, primarily due to lower water heater volumes and strategic investments [14][15] Business Line Data and Key Metrics Changes - North America water heater sales declined by 4% in the first quarter, driven by lower volumes, while boiler sales increased by 10% [9][11] - North America water treatment sales increased slightly, with growth in e-commerce and direct-to-consumer channels offsetting retail declines [11] - Rest of the world segment sales were essentially flat at $227 million, with earnings increasing by 15% due to expense management [15][16] Market Data and Key Metrics Changes - In China, third-party sales decreased by 4% in local currency, reflecting ongoing economic weakness and soft consumer demand [9][12] - The company expects sales in China to decrease by 5% to 8% in local currency for the full year [28] - The North American boiler sales are projected to increase by 35% in 2025, following a strong first quarter growth of 10% [30] Company Strategy and Development Direction - The company is focused on managing costs and optimizing production schedules to ensure efficiency, particularly in response to tariff-related cost increases [10][20] - A key initiative for 2025 is to level production across the year to enhance plant efficiencies [10] - The company is actively pursuing acquisitions and has a robust pipeline for potential opportunities [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the volatile macro environment and emphasized the importance of maintaining a strong balance sheet [34][35] - The company is cautious about the near-term market outlook, particularly in China, where consumer confidence remains low [28][83] - Management reiterated the commitment to strategic investments and cost management to maximize profitability during periods of cost volatility [35] Other Important Information - The company repurchased $121 million of its shares in the first quarter, front-loading a portion of its full-year repurchase outlook of $400 million [9][18] - The board approved a quarterly dividend of $0.34 per share [18] - The company opened a new commercial R&D testing lab in Lebanon, Tennessee, aimed at enhancing product development capabilities [33] Q&A Session Summary Question: Demand destruction around pricing actions - Management indicated that pricing actions are expected to cover costs, with a stable replacement business providing some stability [39] Question: Tariff exposure and cost components - The company clarified that the 6% to 8% tariff exposure includes direct impacts from imports, particularly from China, and is separate from steel inflation [42][44] Question: Pricing actions and market dynamics - Pricing actions have been announced and are already in the marketplace, with management working closely with customers to manage the implications of these changes [98] Question: Capacity and manufacturing in the U.S. - The company has sufficient capacity in its U.S. plants and is well-positioned to navigate the current market conditions without significant challenges [90] Question: Regulatory changes and their impact - Management is proceeding with preparations for upcoming regulatory changes, as they are currently law, and does not anticipate delays [94][95]

Financial Data and Key Metrics Changes - The company reported first quarter revenue of $169 million, exceeding expectations despite a $2 million foreign exchange headwind, representing a 10% increase year-on-year [29] - Organic revenue growth was 11%, and organic non-COVID revenue growth was 14%, indicating strong underlying performance [29][30] - Adjusted net income was $22 million, up 29% from the previous year, with adjusted fully diluted earnings per share increasing to $0.39 from $0.30 [33][35] Business Line Data and Key Metrics Changes - Organic revenue growth in the first quarter was driven by proteins, chromatography, and analytics, with proteins showing the highest growth [13] - Filtration revenues were slightly up, while capital equipment saw some softness due to timing, but a backlog supports growth in the latter half of the year [13][17] - Chromatography grew double digits, with orders increasing over 50%, marking the highest quarterly order intake in three years [24] Market Data and Key Metrics Changes - Biopharma revenues grew more than 20% year-on-year, supported by strong execution from strategic accounts [16] - North America represented 50% of total revenue, Europe 35%, and Asia Pacific 15%, with North America and Europe both up 13% [30] - China represented only 2% of total revenue, continuing to decline, but the company believes it can offset this due to strong performance in other regions [30][19] Company Strategy and Development Direction - The company is focused on executing its strategic plan for 2025, including the acquisition of the nine zero eight devices bioprocessing portfolio and launching new products [12][20] - The management emphasized the importance of a diversified customer base, with no single customer representing more than 6% of total revenue [14] - The company aims to leverage its global manufacturing network to mitigate tariff impacts and maintain strong growth [11][10] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro uncertainties but expressed confidence in the underlying trends and opportunities within the business [8][9] - The company expects revenue growth to accelerate throughout the year, with strong order trends indicating momentum [27] - Management remains optimistic about the mid to long-term outlook for new modalities, despite short-term challenges [63] Other Important Information - The company made investments in finance and quality to improve visibility and customer experience [21] - Adjusted gross profit was $91 million, with a gross margin of 53.7%, up nearly 450 basis points year-on-year [31] - The company expects adjusted income from operations to be between $95 million to $102 million for the full year [41] Q&A Session Summary Question: CDMO order trends and tariff impacts - Management noted no acceleration in orders due to tariffs, with strong order intake across all CDMO customers [50][51] Question: Tariff dynamics and revenue exposure - Management indicated minimal revenue exposure to tariffs, estimating less than 1% sales increase from surcharges [54][56] Question: Emerging modalities and FDA changes - Management remains optimistic about new modalities, with no significant disruptions reported from customers regarding FDA changes [64] Question: Small biotech customer trends - Orders from small biotech were flat, with a decline in sales to emerging markets, raising concerns about the health of that segment [80] Question: Impact of FDA's guidance on animal testing - Management has not heard any tangible impacts from FDA guidance on animal testing, with no significant changes reported by customers [99]