Financial Data and Key Metrics Changes - Total sales for Q3 were $753 million, largely flat compared to the prior year, with adjusted EPS increasing high single digits to $0.78 [13][18] - Adjusted free cash flow of $94 million was achieved, representing an 82% conversion rate, with year-to-date adjusted free cash flow exceeding $275 million, approximately 12% of sales [13][18] - The company raised the midpoint of its full-year guidance, now expecting sales of just over $3.03 billion, with core sales growth of 2% to 2.5% [18][19] Business Line Data and Key Metrics Changes - Environmental & Fueling Solutions reported core growth of approximately 2%, with North America dispenser sales increasing mid-single digits [14] - Mobility Technologies saw core sales grow approximately 5%, driven by low double-digit growth in Retail Solutions and a return to growth in Car Wash [16] - Repair Solutions experienced a 7% decline in sales due to ongoing macroeconomic pressures, although signs of stabilization were noted [17] Market Data and Key Metrics Changes - Demand in the convenience retail end market remained constructive, contributing positively to the quarter's performance [5] - The car wash business returned to growth a quarter ahead of expectations, driven by the adoption of the cloud-based Patheon solution [6] - The company anticipates mid-single-digit adjusted operating profit growth and approximately 10% adjusted EPS growth for the year [8] Company Strategy and Development Direction - The company is focused on its Connected Mobility strategy, which aims to deliver integrated solutions that combine hardware, software, connectivity, and services [9] - The strategic framework is built on three pillars: accelerating organic growth, optimizing core operations, and effective capital deployment [10] - The company is committed to continuous improvement and operational excellence, with a focus on unlocking self-help opportunities and driving innovation [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and tariff pressures while maintaining growth [21] - The outlook for 2026 is positive, with expectations for better operating margin performance driven by productivity improvements and increased R&D efficiency [11] - The company is optimistic about capturing incremental share gains in key end markets, particularly in convenience retail [11] Other Important Information - The company completed $70 million in share repurchases during the quarter, totaling $175 million year-to-date [18] - Two non-core assets were divested, generating $60 million in proceeds on a pro forma annualized basis [18] - The company is managing its cost structure effectively and expects solid margin expansion in the upcoming year [20] Q&A Session Summary Question: Insights on order trends and longer cycle aspects of the portfolio - Management noted that changes at the company have led to longer selling cycles for digital solutions, with a good order book year-over-year [27][28] Question: Q4 sales and margins by segment - Q4 sales are expected to be relatively flat year-on-year, with Mobility Technologies and Environmental & Fueling Solutions showing low to mid-single-digit growth [34] Question: General outlook on retail fueling - Management expressed a constructive view on the convenience retail market, highlighting the company's leadership position and expected growth in 2026 [36][37] Question: Clarification on Mobility Technologies margins - Margins in Mobility Technologies are expected to see a 50 basis point expansion in Q4, despite a tough comparison from the previous year [34] Question: Customer reception to price increases in Repair Solutions - Management indicated that they have successfully passed on tariff-related costs to customers, with a focus on sourcing regionally to mitigate impacts [77][78] Question: Cash conversion expectations - The company slightly lowered its cash conversion target to 95% for the full year, citing tax rate changes and working capital growth [79][81]

Financial Data and Key Metrics Changes - First quarter sales reached $741 million, exceeding guidance by nearly $20 million, with adjusted EPS increasing 4% to $0.77, above the guidance range of $0.71 to $0.74 [15][16] - Adjusted operating profit margin decreased by 40 basis points year-over-year but increased by 30 basis points compared to the full year 2024 [15][16] - Free cash flow of $96 million increased over 20% year-over-year, reflecting an 83% conversion to adjusted net income [16] Business Line Data and Key Metrics Changes - Environmental and Fueling Solutions achieved core growth of approximately 1%, or up 11% on a two-year stack basis, with strong demand for both above-ground and underground retail fueling equipment [17] - Mobility Technologies saw core sales increase nearly 13% year-over-year, driven by strong performance at Invenco, which grew over 20% for the third consecutive quarter [18] - Repair Solutions experienced a decline in sales due to a timing shift of Matco Expo from Q1 to Q2, with expectations of mid-single-digit declines for the year [20][47] Market Data and Key Metrics Changes - The convenience retail and fueling market, which accounts for about two-thirds of sales, has historically grown above GDP and has shown resilience during downturns [7][13] - Channel checks indicate that larger national and regional operators are confident in their capital expenditure plans, with no evidence of price delays or deferrals [13][56] Company Strategy and Development Direction - The company is focused on its connected mobility strategy, which positions it at the forefront of customers' digital transformation journeys [5] - A $500 million share repurchase authorization was approved, reflecting confidence in the business and a commitment to returning capital to shareholders [8][21] - The company is actively managing tariff exposures and has diversified its supply chain to reduce reliance on China [9][10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the convenience retail and fueling markets, with expectations of continued growth despite macroeconomic uncertainties [7][24] - The company is taking a cautious view of second-half demand, embedding contingency into its guidance while maintaining a positive outlook for the full year [23][24] - Management highlighted the importance of controlling internal factors and executing on strategic initiatives to optimize core operations [12][26] Other Important Information - The company has significantly strengthened its global supply chain agility and resiliency over the past four years [9] - The estimated tariff impact for the year is approximately $50 million, with ongoing efforts to mitigate these costs through supply chain optimization and price adjustments [10][11] Q&A Session Summary Question: Evidence of contingency in the second half of the year - Management noted no demand destruction observed, with resilient markets and effective management of tariff impacts through price adjustments [30][32] Question: Mobility Tech sales growth and margin outlook - Management expects good margin expansion for Mobility Tech year-on-year, with margins projected to increase close to 100 basis points for the full year [42] Question: Environmental and fueling solutions project hesitancy - Management reported confidence in customer capital planning, with no signs of hesitancy in moving forward with projects [54][56]