Financial Performance - The company reported net sales of $1.157 billion in 3Q 2025, a 2.7% increase year-over-year (YOY)[13] - Organic sales increased by 0.6% YOY[6] - Adjusted EBITDA was $202 million, representing a 17.4% margin, a 50 bps increase YOY[6, 13] - Adjusted EPS was $1.37, an 11% increase YOY[6] - Free cash flow was $164 million[6] Segment Performance - Engineered Bearings segment net sales were $766 million, a 3.4% increase YOY[23] - Engineered Bearings adjusted EBITDA was $144 million, with a 18.8% margin[23] - Industrial Motion segment net sales were $391 million, a 1.3% increase YOY[28] - Industrial Motion adjusted EBITDA was $75 million, with a 19.0% margin[28] Outlook - The company reaffirmed its 2025 EPS outlook at the midpoint, with an updated range of $5.20-$5.30[6, 36] - Free cash flow for 2025 is expected to be approximately $375 million[35] - Full-year 2025 sales are expected to decrease by 0.75% at the midpoint[36] Capital Allocation - The company paid its 413th consecutive quarterly dividend of $0.35 per share[6, 32] - Net debt to adjusted EBITDA ratio was 2.1x[6, 8]

Financial Data and Key Metrics Changes - The company reported adjusted operating margin of 10.2% on revenue of $2.7 billion for Q3 2025, leading to adjusted earnings per share (EPS) of $3.20, an increase of 9.2% year-over-year [6][14] - Consolidated sales decreased by $53 million, or 2%, compared to the same quarter last year, primarily due to lower sales volume in the Access segment [14] - Adjusted operating income was $274 million, down slightly from the prior year, reflecting lower volume [14] Business Line Data and Key Metrics Changes - The Access segment achieved adjusted operating income margins of 11% on sales of $1.1 billion, with sales down $254 million, or nearly 19% year-over-year, due to weaker market conditions in North America [15][16] - The Vocational segment saw strong sales growth, achieving an adjusted operating income margin of 15.6% on $968 million in sales, up $154 million, or nearly 19% from last year [16] - The Transport segment's sales increased by $48 million to $588 million, with delivery vehicle revenue growing by $114 million to $146 million, representing approximately one quarter of transport segment revenue [16][17] Market Data and Key Metrics Changes - The company noted that end market activity in the Access segment remains healthy, but customers are cautious with capital expenditures due to tariffs and the economic environment [7][9] - The vocational segment recorded strong orders of $1.1 billion, led by Pierce fire trucks and AeroTech products, indicating robust demand [11] Company Strategy and Development Direction - The company is focused on a local-for-local strategy in the Access equipment sector to manage tariff impacts and maintain competitiveness [48] - The long-term vision includes doubling adjusted EPS to a range of $18-$22 per share by 2028, with ongoing efforts to streamline production and improve efficiency [20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the dynamic environment in 2025, including tariff impacts and sustained higher interest rates, but expressed confidence in managing these challenges while delivering solid results [20] - The updated full-year adjusted EPS guidance is now in the range of $10.50-$11.00, reflecting lower revenue expectations for the Access and Transport segments [19] Other Important Information - The company repurchased approximately 666,000 shares for $91 million during the quarter, bringing year-to-date repurchases to $159 million [15] - Free cash flow for the quarter was strong at $464 million, compared to $272 million in the same quarter last year [15] Q&A Session Summary Question: Access segment demand outlook for 2026 - Management indicated that while there is hesitancy in the near term, long-term demand drivers remain strong, with ongoing discussions with customers about 2026 expectations [27][30] Question: Impact of tariffs on costs - The estimated tariff impact for the year is $30 million-$40 million, with expectations for pricing adjustments in 2026 to mitigate these costs [33][34] Question: Competitive landscape in Access equipment - Management believes their local manufacturing strategy positions them well against competitors, particularly those outside the U.S., and they are focused on driving improvements for customers [48][49] Question: Warranty costs and their implications - Warranty costs in Q3 were attributed to one-time issues related to defense sector vehicles, and management does not expect this to be an ongoing issue [54][55] Question: NGDV production challenges - Management confirmed that while there are challenges in ramping up production, they are targeting full-rate production by the end of the year [73][76]

Economic Developments - The Bank of Canada (BOC) lowered its target for the overnight interest rate by 25 basis points to 2.25%, marking the second consecutive rate cut due to ongoing economic weakness and the impact of U.S. trade policies [2][10] - The BOC revised its 2025 growth forecast down to 1.2% from 1.8%, with 2026 growth projected at 1.1% and 2027 at 1.6%, primarily due to tariffs and weaker demand [3][10] - The BOC anticipates annualized Q3 GDP growth at 0.5% and Q4 at 1.0%, with inflation expected to remain around 2% despite core inflation measures being sticky around 3% [4][3] Corporate News - Nvidia (NVDA) became the world's first $5 trillion company, with shares surging over 5% due to strong demand for AI chips and significant orders totaling $500 billion [5][10] - Korean Air announced a purchase of 103 new Boeing (BA) aircraft valued at $36.2 billion and a separate deal for GE Aerospace (GE) engines worth $13.7 billion, alongside selecting L3Harris Technologies (LHX) for new aircraft development [6][10] - Caterpillar (CAT) shares rallied by 12%, marking the largest gain since 2009, while Fiserv (FI) experienced a record drop of 44% at market open [7][10] Market Sentiment - Kraft Heinz (KHC) CEO expressed concerns over "one of the worst U.S. consumer sentiments in decades," indicating broader economic anxieties affecting consumer spending [7][10]

Financial Data and Key Metrics Changes - The company reported third quarter sales of $911 million, a 2.2% year-over-year increase, aligning with previous guidance of low single-digit growth [10] - Activewear sales increased by 5.4%, driven by a favorable product mix and higher net prices [10] - Adjusted operating margins improved to 23.2%, reflecting an 80 basis point year-over-year increase, resulting in record adjusted diluted EPS of $1.00, up 17.6% from the previous year [5][15] Business Line Data and Key Metrics Changes - Sales in the hosiery underwear category decreased by 22% year-over-year, attributed to a timing shift of shipments and broader market weakness [11] - The Comfort Colors brand performed well, celebrating its 50th anniversary, and contributed to overall sales growth [7] - The company introduced new brands such as All Pro and Champion, which are expected to drive further growth [6] Market Data and Key Metrics Changes - International sales declined by $4 million, or 6.1% year-over-year, primarily due to ongoing demand softness across markets [11] - Sales to North American distributors remained solid, supported by sustained momentum from national account customers [10] Company Strategy and Development Direction - The company is focused on executing its Gildan Sustainable Growth (GSG) strategy, leveraging a large-scale, low-cost, vertically integrated manufacturing network [8] - The proposed acquisition of Hanesbrands is expected to close late this year or early 2026, with anticipated run-rate synergies of at least $200 million [8] - The company is capitalizing on its largest innovation pipeline in history, with more product launches planned for 2025 and 2026 [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to deliver strong financial performance despite a fluid macroeconomic environment [5] - The outlook for 2025 includes revenue growth in the mid-single digits and an increase in adjusted operating margins by approximately 70 basis points [18] - Management noted that the market remains stable, with expectations for growth in the innerwear category in Q4 [24][46] Other Important Information - The company generated approximately $189 million in free cash flow in the first nine months of 2025, with $200 million generated in the third quarter [16] - The company ended the quarter with net debt of about $1.7 billion, maintaining a leverage ratio of 2x net debt to trailing twelve months Adjusted EBITDA [16] Q&A Session Summary Question: Can you discuss the weakness in the Underwear business and market share? - Management noted that the innerwear business faced delays in floor sets by large retailers and inventory management issues due to tariffs [23] - They expect a return to growth in Q4, with a stable market outlook [24] Question: What is driving the change in free cash flow guidance? - The change is attributed to transaction costs related to the Hanesbrands acquisition and timing issues with working capital [29] Question: How is the Fleece business trending with changing weather? - The Fleece business is performing well, with sales meeting expectations as the season progresses [38] Question: What is the competitive landscape like regarding tariffs? - Management indicated that there is uncertainty in the market, but they are well-positioned to optimize their supply chain and capitalize on opportunities [40] Question: Can you comment on inventory levels and tariff costs? - Inventory levels are slightly higher due to tariff costs, but the company is well-positioned for availability and control of working capital [81] Question: How will the Hanesbrands acquisition impact organic growth? - The company anticipates net sales to grow at a rate of 3%-5% CAGR over the next three years post-acquisition [85]

Eight years ago, I came to this very summit. I was here. Does anybody remember.I don't know. I remember. Does anybody remember what I said.Yeah, there's a few hands up there. It must have been a great speech. Three people that it's not too many people.But, uh, there's no reason to because you saw whatever I said I did. And for the first time, I laid out the principle that economic security is national security. Economic security, that's for South Korea, that's for any country.But economic security is in fac ...

Everyone was scared of interest rates, China, and the tariff man, but it looks like those three things are going to align and push stocks and bitcoin higher into the end of the year. ...

Core Insights - Carillon Eagle Small Cap Growth Fund's third-quarter 2025 investor letter indicates a sustained upward rally in equity markets, driven by AI acceleration, reduced inflationary impacts from tariffs, and prospects for interest rate cuts from the U.S. Federal Reserve [1] - The Russell 2000® Growth Index increased by 12.19% in the quarter, slightly underperforming the Russell 2000 Value Index, which rose by 12.60% [1] Company Highlights - Zurn Elkay Water Solutions Corporation (NYSE:ZWS) is identified as a key stock in the fund's portfolio, with a one-month return of -1.65% and a 52-week gain of 28.22% [2] - As of October 28, 2025, Zurn Elkay's stock closed at $46.03 per share, with a market capitalization of $7.712 billion [2] - The company has outperformed broader non-residential construction trends and has effectively navigated tariff challenges, as noted in its recent earnings report, which exceeded investor expectations [3] - Recent product launches and favorable legislative trends are expected to positively impact Zurn Elkay's core institutional end markets, providing growth momentum [3] Market Position - Zurn Elkay Water Solutions Corporation is not among the 30 most popular stocks among hedge funds, with 24 hedge fund portfolios holding the stock at the end of the second quarter, down from 26 in the previous quarter [4] - While Zurn Elkay is recognized for its potential, certain AI stocks are considered to offer greater upside potential and less downside risk [4]

By Linda Pasquini and Helen Reid (Reuters) -Adidas' third-quarter sales dipped 5% in North America, hit by a weak dollar, while its CEO said on Wednesday that U.S. retailers remained cautious over the unclear impact of President Donald Trump's tariffs on American consumers. Adidas' shares were down 5% by 1215 GMT, despite its global revenues growing 3% to a quarterly record of 6.63 billion euros ($7.73 billion). The company said a strong euro dealt a 300 million euro hit to its sales. Adjusting for the ...

South Korea reaches agreement on a trade deal with the US that will lower tariffs. Follow live updates. https://t.co/WGWN4ijsNu https://t.co/jsogHDKvoh ...

South Korea reaches agreement on a trade deal with the US that will lower tariffs. Follow live updates. https://t.co/dzrpRkUwp7 https://t.co/d8Y5s1bX7h ...