Financial Data and Key Metrics Changes - First quarter revenue grew by 8.2% year over year in constant currency to $5.1 billion, driven by the Belcan acquisition and organic growth in Health Sciences and Financial Services [6][25] - Adjusted Operating Margin improved by 40 basis points year over year to 15.5%, on track to achieve full year guidance of 20 to 40 basis points of expansion [8][33] - Adjusted EPS grew 10% year over year, marking the sixth consecutive quarter of year over year growth [8][25] Business Line Data and Key Metrics Changes - Health Sciences revenue increased over 11% year over year in constant currency, with broad-based growth across payer, provider, and life sciences [7][28] - Financial Services segment grew 6.5% year over year in constant currency, with healthy discretionary spending as clients invested in cloud and data modernization [7][28] - Products and Resources segment growth was driven by Welch, but faced weak demand due to discretionary spending pressures [29] Market Data and Key Metrics Changes - North America revenue grew 10% year over year in constant currency, driven by Belcan and large deals [30] - Europe revenue increased by 3% year over year in constant currency, supported by life sciences and financial services clients [31] - The Rest of the World saw a 7% year over year increase in constant currency, driven by large deals in Communications, Media, and Technology [32] Company Strategy and Development Direction - The company is investing heavily in AI-powered software-led engineering, integrating expertise in embedded software and IoT with capabilities from recent acquisitions [10][19] - Strategic imperatives include amplifying talent, scaling innovation, and accelerating growth, with a focus on AI and embedded engineering [16][19] - The company aims to build resilience and durability by developing leadership and talent, strengthening operational discipline, and rebooting innovation [9][10] Management's Comments on Operating Environment and Future Outlook - The macro environment changed sharply in early April, leading to elevated uncertainty, but the company sees opportunities related to productivity and efficiency [9][26] - Management remains optimistic about capturing demand in Financial Services and believes the current environment presents opportunities for cost optimization [27] - The company expects revenue growth of 5% to 6.5% year over year in constant currency for the second quarter of 2025 [35][36] Other Important Information - The company had four large deals in the first quarter, including a mega deal valued at over $500 million [8][26] - Free cash flow for the first quarter was $393 million, with plans to redeploy proceeds from the sale of an office complex in India [35] - The company plans to return approximately $1.7 billion to shareholders in 2025, including $1.1 billion in share repurchases and $600 million in dividends [39] Q&A Session Summary Question: Insights on bookings and pipeline shifts - Management noted that productivity gains from leveraging AI are leading to new deals and opportunities for consolidation, particularly in financial services [43][44] Question: Impact of April slowdown on decision-making - Management indicated that the slowdown is primarily seen in the Products and Resources segment, while Financial Services remains strong [56][57] Question: Comfort level regarding backlog coverage - Management expressed confidence in the backlog coverage, with a book-to-bill ratio of 1.3x and healthy demand in applications, AI, and cybersecurity [76] Question: Gross margin trends and expectations - Management highlighted that cost discipline will drive operating margin outcomes, with utilization and productivity improvements being key factors [78] Question: Sustainability of current growth and market position - Management emphasized the need for consistency in performance and expressed confidence in sustaining growth through a broad-based portfolio and strong market position [85][86]

Financial Data and Key Metrics Changes - Net sales for Q4 2024 were $1.4 billion, up 1% on a constant currency basis, while full-year sales were $5.4 billion, down 1% at constant currency [36] - Adjusted EBITDA for Q4 was $271 million, down 1% year-over-year, with a full-year adjusted EBITDA of $1.11 billion, relatively flat compared to the prior year [36][39] - Adjusted EPS for Q4 was $0.75, down 15% year-over-year, while full-year adjusted EPS was $3.14, down 1% primarily due to higher tax expenses [37][38] Business Line Data and Key Metrics Changes - Food sales for Q4 were $923 million, up 5% on an organic basis, driven by volume growth in all regions [40] - Protective business net sales for Q4 were $450 million, down 7% from the prior year, with adjusted EBITDA of $67 million, down 26% [42] - Food adjusted EBITDA for Q4 was $208 million, up 7% with a margin of 22.5%, while protective adjusted EBITDA margin was significantly lower due to volume declines [41][42] Market Data and Key Metrics Changes - The Americas region saw a constant dollar growth of 1%, driven by food strength, while EMEA and APAC also reported similar growth rates [43] - The protective segment is expected to face challenges in the first half of 2025, with a projected full-year decline of approximately 2% [48] Company Strategy and Development Direction - The company aims to further unlock potential in each business segment, targeting mid-single-digit earnings growth and high cash flow conversion over the long term [14][15] - A focus on deleveraging the balance sheet to three times is planned, with a return to balanced capital allocation including disciplined M&A and shareholder returns [15] - The company is shifting its culture to become high-performing and accountable, with an emphasis on customer focus and operational excellence [16][17] Management's Comments on Operating Environment and Future Outlook - Management acknowledged increased volatility in the macro environment due to global trade uncertainties, input costs, and foreign exchange movements [17][33] - The food business is expected to continue its growth trajectory, while the protective segment is anticipated to stabilize and inflect in volumes in the second half of 2025 [29][30] - Management expressed confidence in the company's ability to navigate challenges and drive returns for stakeholders [33][54] Other Important Information - The company plans to close two plants by the end of the year to optimize its footprint [31] - Free cash flow for the year totaled $454 million, with a net leverage ratio of 3.6 times, down from a peak of 4.1 times [44][45] - Full-year 2025 free cash flow is expected to be approximately $400 million, reflecting strong cash generation despite higher restructuring payments [51] Q&A Session Summary Question: Are there parts of the protective business that will significantly drag on volumes? - Management indicated that the industrial portfolio is expected to continue underperforming, with some bright spots in shrink films and fulfillment [58][60] Question: Can you discuss the potential impacts of tariffs? - Management noted that most of the business is domestic production, minimizing potential tariff impacts, but adjustments in the supply chain may be necessary [65][66] Question: What are the initial priorities for the new CEO? - The focus will be on accelerating customer focus, stabilizing the protective business, and enhancing cost takeout initiatives [71][75] Question: What is the outlook for the protective segment in 2024? - The protective segment is expected to face challenges in the first half, with a potential inflection in volumes in the second half [80][84] Question: How is the company addressing pricing pressures? - Management acknowledged slight inflation in resin prices and competitive pressures, but they expect to take modest price increases [87][102] Question: What is the expected growth for automation revenue? - Automation remains a critical part of the business, with expectations for growth driven by new placements and innovations in equipment [111][112]