Financial Performance - Revenue reached $3.4 billion[8], while the company experienced a consolidated segment loss of $439 million[44], impacted by a $653 million charge related to the Santos litigation[45] - Adjusted EBITDA was $161 million[44] and diluted adjusted EPS was $0.68[44] - New awards totaled $3.3 billion[9], with 99% being reimbursable[9] - Backlog reached $28.2 billion[10], with 82% being reimbursable[10] Segment Results - Urban Solutions reported a segment profit of $61 million[17], with new awards of $1.8 billion[17] and a backlog of $20.5 billion[14, 17], representing 73% of the total backlog[17] - Energy Solutions experienced a segment loss of $533 million[30], including the $653 million court ruling related to the Santos project[30], with new awards of $222 million[30] and a backlog of $5.121 billion[28] - Mission Solutions reported a segment profit of $34 million[38], with new awards of $1.3 billion[38] and a backlog of $2.6 billion[36, 38] NuScale Investment - A major monetization milestone was achieved with the conversion of the remaining 111 million shares[7] - Monetization of Class A shares is expected to begin in November and finish in the second quarter of 2026[7] Outlook - The company expects 2025 new awards to reach $13 billion[57] - The company anticipates operating cash flow between $250 to $300 million[54] - The company projects adjusted EBITDA between $510 to $540 million and adjusted EPS between $2.10 to $2.25[56]

Financial Data and Key Metrics Changes - In Q3 2025, adjusted gross profit grew by 15.2% year-over-year, with adjusted basic EPS reaching BRL 6.90 per share, up 37% year-to-date [3][5] - Adjusted net income increased by 18% year-over-year, driven by pricing policy adjustments, strategic use of client deposits, and a lower effective tax rate [5][6] - Consolidated ROE expanded by 8 percentage points year-over-year to 24%, while financial services ROE from continuing operations increased to 33% [6][10] Business Line Data and Key Metrics Changes - Total revenue and income grew by 16% year-over-year, reaching BRL 3.6 billion, with adjusted gross profit from continuing operations at BRL 1.6 billion, growing 12% year-over-year [6][7] - The payments business for MSMBs saw an active client base growth of 17% year-over-year, reaching 4.7 million clients, with MSMB TPV growing 11% year-over-year to BRL 126 billion [7][8] - The banking operation's active client base increased by 22% year-over-year to 3.5 million clients, with client deposits growing by 32% year-over-year [8][9] Market Data and Key Metrics Changes - The average daily deposit base increased by 40% year-over-year, with time deposits now accounting for 84% of total deposits [9] - The total credit portfolio grew by 27% sequentially, reaching BRL 2.3 billion, with NPLs over 90 days at 5.03% [10][11] Company Strategy and Development Direction - The company aims to return excess capital through buybacks or dividends when immediate investment opportunities are not available, having returned 74% of identified excess capital to investors [4] - The focus remains on enhancing the value proposition to clients, evolving product offerings, and scaling credit [34][35] Management's Comments on Operating Environment and Future Outlook - Management acknowledged ongoing macroeconomic challenges but expressed confidence in the company's ability to deliver consistent value to clients and shareholders [3][5] - The company expects gradual deceleration in TPV growth due to industry dynamics and a weaker macro environment, but remains focused on profitability rather than market share at any cost [34][35] Other Important Information - The effective tax rate was reported at 15.3% in Q4, down from 18.6% in Q3 2024, with expectations for mid to high teens in the long term [14][99] - The company is experiencing operational leverage and efficiency gains, particularly in customer service and logistics, but does not expect current cost levels to be the new normal [68][70] Q&A Session Summary Question: On prepayment business spreads and sustainability - Management indicated that they are not at all-time high spreads and that earnings growth will be driven by credit portfolio growth and operational efficiency [17][26] Question: Competitive environment and pricing trends - Management noted that while there are new entrants in the market, overall players remain rational, and they do not expect significant pressure on spreads [32][36] Question: Organizational redesign progress - Management reported significant progress in transitioning to a fully functional organization, enhancing strategy and client offerings [43][44] Question: Credit portfolio maturity and cost of risk - Management expects cost of risk to remain in the mid-teens, with NPLs projected to grow as the portfolio matures [47][50] Question: Revenue composition changes - Management explained that the movements between transaction revenue and financial income are due to rebalancing and the flexibility of their bundled offerings [51][52] Question: Asset quality and specific client issues - Management clarified that a specific client issue had a minor impact on NPLs, which has since normalized [73][74] Question: Future guidance and tax rate expectations - Management plans to reassess long-term guidance after evaluating year-end performance, with an effective tax rate expected to remain in the mid to high teens [95][99]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported consolidated total revenue of $203 million, with an adjusted EBITDA of $174 million, resulting in an adjusted EBITDA margin of 85% [16][17] - Free cash flow increased by 15% year-over-year to $123 million [17] Business Line Data and Key Metrics Changes - Oil and gas royalty production reached a record of approximately 36,300 barrels of oil equivalent per day, marking a 9% sequential increase and a 28% year-over-year increase [4][17] - Water sales revenue hit a record of $45 million, representing a 74% sequential growth and a 23% year-over-year growth [4] - Produced water royalty revenues amounted to $32 million, reflecting a 5% sequential growth and a 16% year-over-year increase [4] Market Data and Key Metrics Changes - The company noted that despite weak benchmark oil and gas prices, production volumes benefited from robust activity in specific subregions [5] - The average lateral lengths for wells year-to-date in 2025 are approximately 7% longer than last year and 23% longer compared to 2019 [5] Company Strategy and Development Direction - The company is focused on consolidating high-quality Permian assets, taking advantage of the current low commodity price environment to acquire additional royalties and surface acreage [9][14] - Investments in water infrastructure have established the company as a competitive player in the Permian, allowing it to maintain and grow market share [8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the long-term demand for oil, despite current low prices, citing structural declines in other shale basins [10][12] - The company believes it is well-positioned to capitalize on future price increases due to its strong cash flow margins and a robust balance sheet [13][16] Other Important Information - The company announced a three-for-one stock split of its common stock, expected to be completed in December 2025 [19] - The company closed on a $500 million credit facility, enhancing liquidity and providing flexibility for growth opportunities [12][20] Q&A Session Summary Question: What is a good run rate for the business, and how much of your water sales are recycled barrels versus water from source? - Management indicated that they are working to minimize volatility in water sales and are focused on maximizing recycled water usage [25][26] Question: Can you provide details on the royalty acquisition announced? - Management stated that the acquisition is expected to provide a strong growth outlook and is operated by well-capitalized operators [22][24] Question: How does the company view its position in the power and data center market? - Management expressed confidence in their position, noting that they have significant available land and are in discussions for potential opportunities [22][24] Question: What is the outlook for the water resources business? - Management acknowledged recent volatility but emphasized efforts to stabilize and maximize recycled water production [25][26] Question: How does the company characterize the competitive landscape in the Permian? - Management noted ongoing opportunities in the pipeline and expressed optimism about future acquisitions across various regions [30][31]

Financial Data and Key Metrics Changes - Net sales for the quarter were $126.8 million, up from $122.3 million in the corresponding period in 2024, representing a year-over-year growth [2] - Diluted earnings per share (EPS) were $0.10, compared to $0.28 in the same period last year [2] - The company reported a pre-tax loss of $2.1 million in Q3 2025, primarily due to acquisition and operating costs at the new facility in Hebron, Kentucky, and increased material and technology costs [2][3] - For the nine months ended September 27, 2025, net sales totaled $395 million, with a diluted EPS loss of $0.48, compared to $389.9 million in sales and $1.15 EPS in the same period in 2024 [3] Business Line Data and Key Metrics Changes - New product sales accounted for $41 million, or 34% of net firearm sales, indicating strong demand for innovative products [9] - The company rationalized and repositioned several product lines, which adversely impacted operational results for the nine months ended September 27, 2025 [3] - The Hebron facility, acquired in July, is expected to enhance production capacity for modern sporting rifles, contributing to future sales growth [8] Market Data and Key Metrics Changes - NICS checks, often used as a market proxy, are down approximately 4% year-to-date compared to 2024, indicating a challenging market environment [1] - The availability of used firearms at retail continues to influence market dynamics [1] Company Strategy and Development Direction - The company is focused on operational efficiency and profitability through a comprehensive assessment of operations and product portfolio [7] - Strategic initiatives include product line rationalization, SKU consolidation, and realigning manufacturing to maximize efficiency [8] - The company aims to maintain a strong, debt-free balance sheet while investing in core product innovation and returning capital to shareholders [12] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about top-line growth and the importance of product innovation in a challenging economic market [1][9] - The company is positioned for sustained growth with a strong pipeline of new products and a disciplined approach to capital allocation [11][12] Other Important Information - The company generated $13 million in cash from operations in Q3 and $39 million in the first nine months of 2025 [4] - Capital expenditures for the year are expected to total $35 million, focusing on new product introductions and expanded manufacturing capabilities [4] Q&A Session Summary Question: What is putting downward pressure on gross profit margin? - Management indicated that the pressure is primarily due to costs associated with the new Hebron facility, which incurred $1.4 million in costs without generating revenue [15][16] Question: Update on the Hebron facility's production status? - Management confirmed that they are on pace to begin production with firearms by year-end [18] Question: Insights on sales price and product mix? - Management noted that heavy LCP orders and shipments were significant drivers in the quarter, and the Glenfield expansion is seen as an opportunity to enter a new price point [20][21] Question: Pressure from rising input prices? - Management reported that input prices have been fairly flat, with some advance purchasing helping mitigate costs [22] Question: Positioning of the Glenfield line and potential cannibalization? - Management clarified that Glenfield targets a new market segment at a lower price point, thus not cannibalizing existing Marlin sales [27][28] Question: Update on the reintroduction of the Red Label shotgun? - Management stated that the reintroduction is part of the strategy to become a full-line firearms manufacturer and is not directly related to any shareholder influence [35][36] Question: Any updates on the Beretta situation? - Management expressed appreciation for Beretta's investment and indicated openness to engage in discussions while maintaining the company's focus on U.S. manufacturing [39]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $71 million, or $1.42 per diluted share, with adjusted net income of $57 million, or $1.15 per diluted share, and adjusted EBITDA of $108 million [5][15] - The company announced a combined dividend of $0.86 per share, marking the fifth consecutive quarter with a payout ratio of at least 75% [5][6] - Total liquidity at the end of Q3 was $985 million, with $413 million in cash and $572 million in undrawn revolver capacity [10][18] Business Line Data and Key Metrics Changes - The Lightering business generated approximately $9 million in revenue in Q3, contributing nearly $1 million in EBITDA [16] - TCE revenues from crude and products have been evenly balanced over the past year, with no fresh charters executed in Q3 [15][8] Market Data and Key Metrics Changes - Oil demand growth remains healthy at 1 million barrels per day for this year and next, with OPEC+ increasing production [11][12] - Tankers on order represent 14% of the fleet, with a significant number of removal candidates expected as the fleet ages [13][14] Company Strategy and Development Direction - The company continues to execute a balanced capital allocation strategy, focusing on fleet renewal and returning cash to shareholders [6][24] - The company aims to maintain a healthy balance sheet while adapting to industry conditions, with nearly $600 million in undrawn credit capacity [24][25] Management Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for seaborne transportation, with solid demand fundamentals supporting the tanker market [10][11] - The geopolitical intensity affecting tankers remains strong, with sanctions impacting trade routes and cargo flows [12][11] Other Important Information - The company sold five vessels in Q3 for proceeds of $67 million and plans to sell three more in Q4 for about $37 million [7][8] - The company has a strong financial position with net debt under $400 million, representing a low net loan to value of 13% [10][19] Q&A Session Summary Question: Market conditions and VLCCs - The fourth quarter has shown stronger rates, with VLCCs leading the way, benefiting midsize tankers as they return to normal trading patterns [30][31] Question: Crude and product rates - MR performance has been strong, with earnings of $29,000 per day in Q4, attributed to geopolitical factors and reduced diesel exports from Russia [32][34] Question: Crude inventory levels and offshore storage - Current oil on the water is high, but onshore inventories are not yet elevated, with a flat forward oil curve indicating limited offshore storage incentives [39] Question: S&P market and asset divestment - The company is seeing increased asset values and will continue to judiciously upgrade the fleet while divesting older vessels [40]

Financial Data and Key Metrics Changes - In Q3 2025, adjusted EBITDAre was $319 million, a decrease of 3.3% year-over-year, while adjusted FFO per share was $0.35, down 2.8% compared to Q3 2024 [4][5] - Year-to-date, adjusted EBITDAre and adjusted FFO per share increased by 2.2% and 60 basis points, respectively, compared to 2024 [4] - Comparable hotel total RevPAR improved by 80 basis points compared to Q3 2024, driven by better-than-expected transient demand and higher rates [5][6] Business Line Data and Key Metrics Changes - Comparable hotel EBITDA margin declined by 50 basis points year-over-year to 23.9%, primarily due to increased wages and benefits [5][24] - Transient revenue grew by 2%, with double-digit growth at resort properties, particularly in Maui, San Francisco, New York, and Miami [6][21] - Group room revenue decreased approximately 5% year-over-year, attributed to renovation disruptions and the Jewish holiday calendar shift [7][22] Market Data and Key Metrics Changes - Maui experienced a 20% RevPAR growth, driven by increased occupancy and strong out-of-room spending [6][7] - Total group revenue pace in Maui is up 13% for 2026, indicating continued recovery momentum [7] - San Francisco's total group revenue pace for 2026 is up over 20%, with group rate pacing up 10% [56] Company Strategy and Development Direction - The company is focusing on capital allocation decisions that enhance long-term shareholder value, including transformational renovations and strategic asset sales [10][11] - A second agreement with Marriott for transformational renovations at four properties is expected to enhance long-term performance [11] - The company aims to leverage its investment-grade balance sheet and diversified portfolio to outperform in the current environment [16][27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued recovery of leisure travel and the affluent consumer's prioritization of premium experiences [58] - The company raised its full-year 2025 guidance for comparable hotel RevPAR and total RevPAR to approximately 3% and 3.4%, respectively, reflecting strong performance [15][24] - Management noted that the bifurcation of the consumer market is likely to benefit upper-upscale and luxury hotels [16] Other Important Information - The company collected $5 million in business interruption proceeds for Hurricanes Helene and Milton, totaling $24 million for the year [9] - Capital expenditure guidance for 2025 is set at $605-$640 million, including significant investments for redevelopment and repositioning projects [13][26] - The company has a strong liquidity position with $2.2 billion available, facilitating strategic capital allocation decisions [27] Q&A Session Summary Question: Can we expect more asset trading in the market based on current performance? - Management indicated they will be opportunistic with capital allocation regarding dispositions and acquisitions, highlighting successful asset sales this year [33][34] Question: How are you selecting hotels and markets for investment? - The company screens assets to determine capital allocation, focusing on transformational renovations that reposition properties for better performance [42][44] Question: What are the expectations for group booking pace in 2026? - Group revenue pace for 2026 is up 5%, with strong performance expected in key markets like San Francisco and Maui [49][56] Question: How is the company managing wage and benefits increases? - Wage rate growth is expected to be lower in 2026, with New York being the only major market with upcoming labor contract negotiations [82] Question: What are the tailwinds for growth potential in 2026? - The absence of major storms on the Gulf Coast and strong performance from properties like The Don CeSar are expected to contribute positively to growth [88][90]

Financial Data and Key Metrics Changes - Net income for Q3 2025 was $71 million, or $1.42 per diluted share, with adjusted net income of $57 million, or $1.15 per diluted share, excluding gains on vessel sales [5][17] - Adjusted EBITDA for the third quarter was $108 million [5][17] - The company ended Q3 with total liquidity of $985 million, including $413 million in cash and $572 million in undrawn revolver capacity [11][20] Business Line Data and Key Metrics Changes - The lightering business generated approximately $9 million in revenue in Q3, contributing nearly $1 million in EBITDA after expenses [18] - TCE revenues from crude and products have been evenly balanced over the past year [17] Market Data and Key Metrics Changes - Oil demand growth remains healthy at 1 million barrels per day for this year and next [12] - Tankers on order represent 14% of the fleet that will deliver over the next four to five years, with a significant number of removal candidates expected as the fleet ages [14][15] Company Strategy and Development Direction - The company continues to execute a balanced capital allocation strategy, focusing on fleet renewal and returning cash to shareholders [5][16] - The company has extended its $50 million share repurchase program to the end of 2026 [5] - The company aims to maintain a healthy balance sheet while capitalizing on favorable market conditions [16][25] Management Comments on Operating Environment and Future Outlook - Management believes demand fundamentals are solid, supporting a constructive outlook for seaborne transportation [11] - The geopolitical intensity affecting tankers remains strong, with sanctions impacting trade routes and cargo flows [13] - The company expects to continue generating significant free cash flows and returning cash to shareholders [23][25] Other Important Information - The company sold five vessels in Q3 for proceeds of $67 million and plans to sell three additional older vessels in Q4 for about $37 million [7][9] - The company has nearly $600 million in undrawn credit capacity to support growth [25] Q&A Session Summary Question: Market conditions and tanker rates - The fourth quarter has shown stronger rates across all segments, with VLCCs leading the way, benefiting midsize tankers as well [31][32] Question: Crude inventory levels and offshore storage - There is currently a lot of oil on the water, but heightened inventories onshore have not yet been observed, and the forward oil curve is flat [40] Question: Opportunities in the S&P market - The company is seeing increased opportunities to divest older assets as asset values pick up, while continuing to upgrade the fleet [41]

Financial Data and Key Metrics Changes - The company reported revenue of $851.6 million for Q3 2025, a 4.4% increase compared to the same quarter last year [5][20] - Adjusted EBITDA was $173 million, down from $194.3 million in the prior year period, reflecting lower volumes and increased expenses [5][20] - Same facility volume growth was 1.3%, which was approximately 100 basis points below internal expectations [5][6] - Adjusted EBITDA guidance for 2025 was reduced to $650-$660 million from a previous range of $675 million-$700 million [6][24] Business Line Data and Key Metrics Changes - Same facility revenue grew 3.7% year over year, driven by a 2.3% increase in revenue per patient day and a 1.3% growth in patient days [20] - The company faced increased pressure on volumes, particularly in the Medicaid segment, impacting overall performance [6][30] Market Data and Key Metrics Changes - The company added 83 beds to existing facilities in Q3, bringing the year-to-date total to 274 beds added through expansions [22] - The company expects to add 500-700 beds in 2026, following the addition of over 1,700 beds in 2024 and 2025 [8][23] Company Strategy and Development Direction - The company is focusing on optimizing growth investments and its existing portfolio to improve financial performance amid increasing headwinds [7][12] - A comprehensive portfolio and capital allocation review led to a pause on several development projects that no longer projected acceptable returns [11][39] - The company aims to ensure a portfolio that meets patient demand while maximizing returns on investments [12][46] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increasing headwinds in the operating environment, particularly regarding pressures on managed care companies and Medicaid funding uncertainty [6][7] - The company remains confident in its strategy to deliver strong clinical outcomes and expects to see benefits from recent investments in quality and technology [26][52] Other Important Information - The company expects full-year 2025 startup losses to be in the range of $60 million-$65 million, with a modest decrease anticipated in 2026 [21][24] - Legal expenses related to government investigations were $39 million in Q3, down 28% from the previous quarter, with expectations for continued moderation [22][43] Q&A Session Summary Question: Can you provide more color on the challenges with payers, particularly in Medicaid? - Management noted that payer friction is more pronounced in Medicaid-heavy markets, with increased scrutiny on discharge criteria and more frequent utilization reviews [30][31] Question: How should we think about the durability of bad debts and denials as we move into 2026? - Management indicated that Q4 is seasonally slow, and while some pressures may persist, they expect a reduction in startup losses and other costs in 2026 [33][34] Question: Can you clarify the CapEx reduction and its implications for future bed openings? - The company plans to reduce CapEx by at least $300 million in 2026 while still opening multiple large facilities, as much of the capital for these projects has already been spent [39][41] Question: What is the expected impact of the five facility closures on EBITDA? - Management anticipates a mid-single-digit tailwind in 2026 from the closures, with a focus on ensuring returns on capital [45][46] Question: Can you provide insight into the $22 million in Medicaid supplemental benefits? - The company highlighted that Florida is a key state for these benefits, which could provide a significant run rate going forward [49]

Financial Data and Key Metrics Changes - Gross revenue less network fees reached $589 million, up 61% year over year, while adjusted EBITDA was $292 million, reflecting a 56% increase [3][14] - Excluding the impact of Global Blue, gross revenue less network fees grew 19% year over year, with organic growth at 18% [4][15] - Adjusted free cash flow was a record $141 million, with a conversion rate of 48% [18] Business Line Data and Key Metrics Changes - Subscription and other revenue was $119 million in Q3, up 16% compared to the same period last year, driven by market-leading vertical software solutions [15] - Blended spreads on payment volume remained stable at 62 basis points, with expectations for full-year spreads to exceed 60 basis points [14][15] Market Data and Key Metrics Changes - In Asia, same-store sales were negative 11% in Q3 but showed recovery in October [5] - Global Blue contributed $156 million to gross revenue less network fees and $68 million to EBITDA, despite headwinds in the Asia-Pacific market [17] Company Strategy and Development Direction - The company aims for 30% plus gross revenue less network fee growth over the medium term, supported by attractive capital allocation opportunities [4] - The acquisition of Bambora, a $90 billion payment gateway, is expected to enhance customer acquisition and product capabilities [12][37] - The company is focused on deleting non-core business lines and enhancing revenue quality through strategic divestitures [11][15] Management's Comments on Operating Environment and Future Outlook - Management noted volatility in same-store sales, particularly in the restaurant and hospitality sectors, but emphasized the company's diversified and scaled operations [5][6] - The competitive landscape remains unchanged, with the company holding leading positions in various verticals [6][7] - Management expressed optimism about the potential of AI applications to enhance operational leverage and decision-making [17] Other Important Information - The board authorized a new $1 billion stock repurchase program, the largest in the company's history, to take advantage of current valuation levels [13][20] - The company reaffirmed its full-year 2025 guidance, expecting volume to range from $207 billion to $210 billion, representing 26%-27% year-over-year growth [22][23] Q&A Session Summary Question: What are the implications of Jared getting nominated to NASA? - Management indicated that it could simplify the company's structure and share class, with Jared remaining the largest shareholder [30] Question: Can you provide more context around the $90 billion gateway opportunity with Bambora? - Management highlighted the potential for revenue synergies and the importance of converting existing customers to a consolidated payment solution [33][36] Question: How does the company view organic growth moving forward? - Management confirmed that the 18% organic growth excludes acquisition impacts and aligns with medium-term guidance [41][80] Question: What is the company's philosophy on guidance? - Management emphasized a cautious approach to guidance, reflecting the current macroeconomic environment and industry volatility [51][56] Question: How does the company plan to utilize the new share buyback authorization? - Management stated that the current valuation presents an attractive opportunity for share repurchases without compromising other investment priorities [67][70]

Financial Data and Key Metrics Changes - Third quarter sales reached $3.1 billion, reflecting a 6% organic growth year-over-year [5][12] - Operating EBITDA was $840 million, an increase of 6% year-over-year, resulting in an operating EBITDA margin of 27.3% [5][12] - Adjusted EPS for the quarter was $1.09, flat compared to the previous year, primarily due to a higher tax rate [14] Business Line Data and Key Metrics Changes - **Industrials Co.**: Net sales of $1.8 billion, up 5% year-over-year, with 4% organic growth [14][16] - **Electronics Co.**: Net sales of $1.3 billion, an increase of 11% year-over-year, driven by 10% organic growth [17] - Organic growth in healthcare and water technologies was in the high single digits, while diversified industrials saw low single-digit growth [15][16] Market Data and Key Metrics Changes - North America and Asia-Pacific regions experienced 7% organic growth, while Europe saw a 6% increase year-over-year [13] - The healthcare and water business is expected to grow at about 5% organic growth on average [31] Company Strategy and Development Direction - The company is focused on driving above-market organic growth and building a robust business system [7][11] - A disciplined capital allocation model was emphasized, including a quarterly dividend of $0.20 per share and a $2 billion share repurchase authorization [6][11] - The company aims for medium-term targets of 3%-4% organic growth, 150-200 basis points of margin expansion, and 8%-10% EPS growth from 2026 to 2028 [11][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving medium-term targets, with expectations of continued growth in healthcare and water sectors [31][92] - The construction market is anticipated to improve, with expectations of flat performance in the shelter business next year [82][93] Other Important Information - The successful completion of the CUNY separation was highlighted, with $4.2 billion received to reduce debt [18] - The company is actively pursuing M&A opportunities, particularly in healthcare and water sectors [41][53] Q&A Session Summary Question: Can you provide insight on the timing benefit in sales? - The timing benefit was customer-driven, as orders were accelerated into Q3 due to a planned blackout period for the separation [29] Question: What are the expectations for 2026? - The company expects healthcare and water to grow at about 5% organic growth, while the diversified industrials segment is projected to be flat [31][92] Question: What is the plan for the balance sheet? - The pro forma debt is expected to be around $3.25 billion, with a target to stay below 2 times net debt to EBITDA [39] Question: Can you elaborate on the RO acquisition in China? - The acquisition was primarily to add capacity and enhance local production capabilities, not to introduce new technology [97] Question: How is the healthcare business performing? - The healthcare business is expected to see mid to high single-digit growth, with strong performance in medical packaging and biopharma [80]