Summary of Baylin Technologies (BYLT.F) Conference Call - August 21, 2025 Company Overview - Baylin Technologies operates in the wireless technology sector, focusing on radio frequency (RF) technology, with three main business units: satellite connectivity, infrastructure and antennas, and embedded antennas [2][3] Core Business Insights - The company does not manufacture antennas for satellite connectivity but produces high-power gear essential for satellite communications, including applications for major events like the Super Bowl and NASA missions [4][5] - A significant order of $3 million for a U.S. Department of Defense application is expected, with more orders anticipated as part of a long-term relationship [6][7] - The company has differentiated itself from competitors like Starlink by focusing on high-power applications, which adds resilience and competitive differentiation [9][10] Product Development and Innovation - Baylin has simplified its manufacturing process by retiring complex legacy products and introducing a common component architecture, leading to margin expansion and operational efficiency [13][14] - The company has launched several innovative products, including the world's thinnest DAS antenna and a multibeam antenna for high-density environments, which have been well-received in the market [16][19][22] - The embedded antenna group is focused on high-quality RF solutions for complex environments, with notable clients like Axon for critical communication products [29][30] Market Dynamics and Growth Strategy - The company aims to achieve $100 million in revenue and $10 million in operating EBITDA by 2026, with expectations of reasonable growth in core businesses [33][57] - There is a strong pipeline of opportunities in the satellite business, particularly due to increased defense spending in Europe [56][34] - Baylin is focusing on organic growth, margin expansion, and potential inorganic growth through acquisitions that add shareholder value [36][39] Financial Performance and Projections - The infrastructure business has seen significant growth, with gross margins exceeding 60%, even amidst challenges like tariffs [27][53] - The company anticipates a lower backlog in the satellite division but expects a strong growth year in 2026 based on current market conditions [56][57] - The management emphasizes a lean operational structure to enhance profitability and is optimistic about the future growth trajectory [64][66] Competitive Advantages - Baylin has secured multiple patents for its multibeam technology, providing a competitive edge in the market [61][62] - The modularity of their high-power amplifiers allows for operational continuity, which is a unique advantage in the industry [60] Conclusion - Baylin Technologies is positioned for growth through innovation, strategic market focus, and operational efficiency, with a clear roadmap to achieve its financial targets by 2026 [33][57]

Financial Data and Key Metrics Changes - For Q2 2025, the company reported revenue of $1.53 billion, a 13.5% increase from $1.35 billion in Q2 2024, with 11.5% of this growth being organic [18] - Adjusted EBITDA rose to $205 million, reflecting a 20% growth compared to $170 million in the prior year, with adjusted EBITDA margins expanding by 80 basis points to 13.4% [19][28] - Net income increased significantly to $68 million from $5 million year-over-year, driven by higher sales and expanding margins [19] Business Line Data and Key Metrics Changes - Engine Services revenue increased by $139 million to $1.35 billion, representing an 11.5% growth, driven by strong aftermarket activity and production ramp-up on growth programs [20] - Component Repair Services revenue grew by 31% year-over-year to $178 million, with adjusted EBITDA growing 50% and achieving a record margin of 29% [22] Market Data and Key Metrics Changes - Commercial aerospace sales grew by 14% year-over-year, with strong demand for CF34, LEAP, CFM56, and turboprop platforms [6] - Business aviation sales increased by 9%, while military sales grew by 12% due to contributions from the AeroTurbine acquisition [7] Company Strategy and Development Direction - The company is focused on expanding its LEAP program, enhancing CFM56 and CF34 capacity, and improving capabilities in component repair services [9] - The company aims to maintain a disciplined approach to capital allocation, combining organic investments with strategic M&A opportunities [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong demand environment and the ability to navigate supply chain challenges, with expectations for continued revenue growth and margin expansion [30][27] - The company has increased its 2025 revenue guidance to between $5.875 billion and $6.025 billion, reflecting strong performance in Engine Services [27] Other Important Information - The company expects free cash flow for 2025 to be in the range of $155 million to $175 million, with a significant cash flow expected in the second half of the year [24] - The company’s leverage improved to 2.99 times net debt to EBITDA, down from 5.4 times in 2024 [26] Q&A Session Summary Question: Thoughts on revenue cadence in Engine Services - Management confirmed that revenue growth expectations remain strong, particularly for the CF34 program, and expressed confidence in the second half guidance [35][36] Question: Margin dilution from new programs - Management indicated that while margins expanded by 80 basis points, they would have been higher without the ramp programs, and profitability is expected to improve as revenue increases [38][39] Question: Growth dynamics for LEAP, CFM56, and CF34 - Management explained that LEAP is being carefully ramped up for precision, while CF34 is expected to see increased work due to aging engines coming due for major overhauls [45][46] Question: Engine exchange program details - Management clarified that the engine exchange program involves a one-time investment for an exchange engine, which is then overhauled and reused, maintaining an asset-light structure [47][56] Question: M&A pipeline and organic growth opportunities - Management stated that the M&A pipeline remains robust, with a focus on disciplined capital deployment, while also highlighting strong organic growth opportunities [86][89]

Financial Data and Key Metrics Changes - The company reported a 6.4% increase in total revenues to $294 million for Q2 2025 compared to Q2 2024, with a 9.8% increase in adjusted EBITDA to $151 million [11][12] - Adjusted EPS improved to $0.20, an increase of $0.01 from Q2 2024 [12] - The net leverage ratio improved to 3.5 times from 3.7 times in 2024, indicating progress towards the long-term goal of 2 to 3 times [16][21] Business Line Data and Key Metrics Changes - Sterigenics experienced a 10.5% year-over-year revenue growth, driven by increased customer demand and strong volume performance [5][13] - Nordion's revenue increased by 2.9% to $42 million, with a segment income margin decrease of 145 basis points to 55.3% due to supplier mix timing [14] - Nelson Labs reported a revenue of $57 million, a decline of 3.3%, but segment income increased by 13.9% to $20 million, with margin expansion driven by core lab testing volume improvements [15] Market Data and Key Metrics Changes - The company raised its 2025 revenue growth outlook to a range of 4.5% to 6% from the previous 4% to 6% [7][18] - The foreign currency impact is now expected to be neutral for the full year, compared to previous assumptions of a headwind [17] - Nearly 60% of full-year revenue is expected to occur in the second half of the year, with Q4 2025 revenue anticipated to decline mid-teens compared to Q4 2024 due to Cobalt 60 shipment timing [18] Company Strategy and Development Direction - The company continues to invest in its businesses to support organic growth and reduce leverage, reinforcing its commitment to disciplined financial management [5][21] - The focus remains on enhancing core lab testing and optimizing operations to improve margins, particularly in Nelson Labs [19][66] - The company is well-positioned to capitalize on opportunities arising from changes in customer supply chains due to tariff adjustments [52][56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the outlook for the rest of the year, highlighting strong execution and customer care [99] - The company is not seeing significant destocking in the market and expects continued volume growth across multiple categories [88] - Management remains cautious about potential maintenance-related downtime impacting growth in the second half of the year [62][92] Other Important Information - The effective tax rate applicable to adjusted net income is projected to be in the range of 31.5% to 33.5%, reflecting recent U.S. tax law changes [20] - Capital expenditures for 2025 are now expected to be in the range of $170 million to $180 million, down from a previous outlook of $190 million to $210 million [20][21] Q&A Session Summary Question: Did you see any sort of pull forward dynamic in Sterigenics? - Management indicated that there was no material pull forward due to tariffs, and volumes were progressing as expected [25] Question: Can you parse out the performance between medtech and bioprocessing? - Management noted that both segments performed well, with bioprocessing showing significant growth supported by facility expansions [28] Question: What are the drivers of margin improvement in Nelson Labs? - Management attributed margin improvement to labor productivity optimization, favorable service mix, and consistent pricing [35] Question: How do you view the competitive implications of the updated ETO regulations? - Management feels well-positioned and plans to continue investing in compliance and emissions controls [38] Question: What is the expected growth rate for Nelson Labs in 2026? - Management refrained from providing specific guidance for 2026 but emphasized a focus on core lab volume growth [65]

Financial Data and Key Metrics Changes - The second quarter recorded a 17% increase in gross contact revenue, a 15% increase in net service billing, over 8% organic net service billing growth, and almost 51% growth in adjusted EBITDA [5][6] - Gross revenue and net revenue reached $122 million and $108 million respectively, with adjusted EBITDA of $20.2 million and a margin of $18.7 million, marking record-setting figures [6][7] - Adjusted EBITDA margin increased by 250 basis points year-over-year and is projected to be around 17% for the year [10][11] Business Line Data and Key Metrics Changes - Organic growth in net revenue was positive across all verticals, strongest in transportation at 21%, followed by natural resources and imaging at 19%, power utilities and energy at 5%, and building infrastructure at 4% [14][15] - The backlog at the end of Q2 was nearly $87 million, a 25% increase compared to last year and a 5% increase from Q1 [15] Market Data and Key Metrics Changes - The company is experiencing strong demand in transportation, renewables, and energy transmission, with record bookings well balanced across markets [5][6] - The influence of the data center market is growing, leading to increased demand for power generation, transmission, and consumption [22][23] Company Strategy and Development Direction - The company is focusing on capturing a larger share of the data center market by moving data centers into the power market sector and expanding service offerings through acquisitions [23][26] - A commitment of $25 million for innovation investment through the Bowman Innovation Growth Fund aims to enhance digital and data service offerings and create efficiencies [18][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the remainder of 2025 and early 2026, expecting a similar growth pattern to the previous year with momentum building through the second and third quarters [28] - The recent "One Big Beautiful" bill is expected to accelerate investment decisions and project pipelines, particularly in renewable energy [84][85] Other Important Information - The company maintains a healthy balance sheet with low leverage of 1.6 times trailing four quarters adjusted EBITDA and $108 million in net debt [15][16] - Cash flow from operations year-to-date is $16.3 million, reflecting a nearly 50% adjusted EBITDA conversion rate [16] Q&A Session All Questions and Answers Question: Can you talk about the Transportation segment and growth areas? - The company is seeing strong synergies from recent acquisitions and increased public spending, leading to wins in construction management and engineering services [30][31] Question: Can you provide more color on the Power and Utilities segment? - Energy transmission is significant for the company, with recent wins in power transmission and applications from the acquisition of Surdex [32] Question: Can you discuss operational capacity and areas of investment? - The company is focused on managing labor increases and investing in innovation to leverage workforce efficiency [34] Question: Can you elaborate on the updated outlook for the year? - The updated view implies improving margins in the second half, despite some inflationary pressure on labor [38][40] Question: How has the acquisition pace affected the organic business? - The slower acquisition pace has allowed the company to focus on organic growth and efficiencies, with plans to continue pursuing larger deals [57][58] Question: What is the impact of the One Big Beautiful bill on project pipelines? - The bill is expected to accelerate investment decisions and project activity, particularly in renewable energy [84][85] Question: What is driving growth in natural resources? - Growth is driven by the acquisition of Certex and increased work in high altitude orthoimetry and geospatial services [87]

Financial Performance - Revenue increased by 35.3% to $234.5 million in 2Q25 compared to 2Q24[12] - YTD25 revenue increased by 25.5% to $412.4 million compared to YTD24[14] - Net income improved by $28.5 million to $18.4 million in 2Q25[19] - Consolidated Adjusted EBITDA increased by 69.8% to $39.6 million in 2Q25[26] - Consolidated Adjusted EBITDA as a percentage of revenue increased by 340 bps to 16.9% in 2Q25[26] Strategic Priorities and Guidance - The company increased expected FY25 revenue range, expecting 17% growth over FY24[11] - The company increased expected Consolidated Adjusted EBITDA range, expecting 19% growth over FY24[11] - The company expects organic growth at or above 7% to 9% range in 2025[29] Segment Performance - Assessment, Permitting & Response segment revenue increased to $103.9 million in 2Q25[65] - Measurement & Analysis segment revenue increased to $62.8 million in 2Q25[68] - Remediation & Reuse segment revenue increased to $67.8 million in 2Q25[76]

Core Insights - QuidelOrtho Corporation (QDEL) reported adjusted earnings per share (EPS) of $0.12 for Q2 2025, reversing a loss of $0.07 from the previous year and exceeding the Zacks Consensus Estimate of breakeven [1][6] - The company experienced a revenue decline of 3.6% year-over-year, totaling $613.9 million, but this figure surpassed the Zacks Consensus Estimate by 0.4% [2][6] - QDEL's shares rose nearly 12.8% in after-market trading, although they have decreased 46.8% year-to-date compared to a 4.9% increase in the industry [3] Revenue Breakdown - Respiratory revenues fell to $46.7 million, down 19.5% year-over-year, while Non-Respiratory revenues were $567.2 million, down 2% [2] - Revenue contributions from various business units included Labs at $369.7 million (up 4.4%), Immunohematology at $132.3 million (up 4.3%), and Donor Screening at $13.3 million (down 61.2%) [7][8] Geographical Performance - North America revenues were $310.7 million, reflecting an 11.3% decline, while EMEA revenues increased by 7.6% to $87.3 million [9][10] - Revenues from China were $83.4 million (up 2.2%), and Other regions contributed $132.5 million (up 6.7%) [10] Margin and Cost Management - Adjusted gross margin improved by 150 basis points to 45.7%, with adjusted operating margin increasing by 420 basis points to 9.8% [6][12] - Adjusted operating profit rose by 67.7% year-over-year to $60.2 million, while adjusted selling, marketing, and administrative expenses decreased by 5.9% [11][12] Financial Position - QuidelOrtho ended Q2 2025 with cash and cash equivalents of $151.7 million, up from $127.1 million at the end of Q1 [13] - Total debt increased to $2.61 billion from $2.49 billion in the previous quarter [13] Guidance and Future Outlook - The company reaffirmed its 2025 revenue guidance of $2.60 billion to $2.81 billion, with a consensus estimate of $2.72 billion [15][16] - QDEL anticipates stable growth across most business lines, particularly in Labs and Immunohematology, with expected COVID-19 revenues between $110 million and $140 million [17][21] - Management expects a gross tariff impact of $20–$25 million in 2025, reduced from previous estimates due to effective mitigation strategies [20]

Core Insights - Utz Brands reported Q2 2025 GAAP revenue of $366.7 million, exceeding analyst expectations by $4.57 million, while Non-GAAP earnings per share were $0.17, missing estimates by $0.01 [1][2] - The company experienced a 2.9% year-over-year increase in GAAP revenue, driven by a 5.4% organic growth in branded salty snacks, which represent 88% of total sales [5][6] - Despite revenue growth, escalating costs constrained margins, leading to a significant 60.2% decline in net income compared to the previous year [2][7] Financial Performance - Non-GAAP EPS for Q2 2025 was $0.17, down 10.5% from $0.19 in Q2 2024 [2] - Adjusted EBITDA decreased by 2.0% to $48.7 million, while adjusted gross profit margin improved to 39.8%, up 2.2 percentage points year-over-year [2][7] - Selling, distribution, and administrative costs rose to $119.5 million, representing 32.6% of sales, up from 29.4% in Q2 2024 [7] Business Strategy - The company focuses on geographic expansion and investment in its "Power Four" product families, aiming to enhance operational efficiency and distribution [4][5] - Utz's retail sales increased by 3.3% in a category that saw a 1.5% decline, indicating strong consumer demand for its branded products [6] - The company is consolidating its supply network, closing a facility in Grand Rapids, Michigan, to drive productivity savings [8] Future Outlook - Management raised the organic net sales growth forecast for FY2025 to at least 2.5%, while adjusting the adjusted EBITDA growth guidance to a range of 7% to 10% [11] - The outlook for adjusted earnings per share was lowered to 7% to 10% growth due to increased capital expenditures and rising interest expenses [11] - The company aims to reduce its net leverage ratio to around 3 times by the end of FY2025, down from 4.1 times currently [12]

Financial Data and Key Metrics Changes - The company reported a 16% growth in revenue for the combined brokerage and risk management segments, with 5.4% organic growth and a reported net earnings margin of 17.3% [5] - Adjusted EBITDAC margin increased by 307 basis points year-over-year to 34.5%, with adjusted EBITDAC growth of 26% [5] - GAAP earnings per share were $2.11, while adjusted earnings per share were $2.95 [5] Segment Data and Key Metrics Changes - The Brokerage segment experienced a reported revenue growth of 17% and organic growth of 5.3%, with adjusted EBITDAC margin expanding by 334 basis points to 36.4% [6][24] - The Risk Management segment, Gallagher Bassett, saw a revenue growth of 9% with organic growth of 6.2% and an adjusted EBITDAC margin of 21% [16][28] Market Data and Key Metrics Changes - In the global property and casualty (PC) insurance market, property renewal premiums decreased by 7%, while casualty lines increased by 8% overall [10][11] - For clients generating less than $100,000 in revenue, renewal premiums were up 3%, while those generating more than $100,000 saw a decrease of 2% [11] Company Strategy and Development Direction - The company aims to maintain its competitive edge through niche expertise, extensive data analytics, and global resources [16] - The full-year 2025 brokerage segment organic growth is projected to be in the range of 6.5% to 7.5% [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's positioning despite market headwinds, noting solid client business activity and no signs of a significant economic downturn [14] - The company anticipates continued job growth in the U.S., albeit at a slower pace than in 2024, and is prepared to guide employers through challenges in health insurance [15] Other Important Information - The company completed nine new mergers in the second quarter, representing approximately $290 million in estimated annualized revenue, with a pipeline of around 40 term sheets signed or being prepared [18][19] - The company has about $14 billion in available cash and no outstanding borrowings, positioning it well for further M&A activities [35] Q&A Session Summary Question: Timing of HSR information submission to DOJ - Management confirmed they have completed responding to the DOJ's second request and are optimistic about closing the transaction in the third quarter [39] Question: Outlook for brokerage growth in the second half - Management indicated that the 5% brokerage outlook assumes continued pricing trends and potential benefits from the benefits business being pushed to the back half of the year [40][41] Question: Property pricing trends and guidance - Management clarified that they did not incorporate a 20-30% decrease in property pricing into their guidance, stating that the reported numbers are not reflective of such declines [46][47] Question: M&A activity and integration planning - Management expressed confidence in the integration of Assured Partners, stating they are ready to proceed with integration planning despite previous suspensions of some work streams [71][73] Question: Casualty line pricing expectations - Management noted that casualty rates are expected to continue increasing, with specific lines such as general liability and commercial auto showing steady growth [81] Question: E&S market trends - Management acknowledged an increase in submissions and growth in the excess and surplus market, indicating a mixed but generally positive outlook [88]

Financial Data and Key Metrics Changes - In Q2 2025, the company reported $1 billion in orders, a 16% increase overall and a 13% increase organically, driven by strong performance across all businesses and acquisitions [7] - Quarterly revenue exceeded $970 million, up 7% overall and 4% organically, with all segments contributing [7] - Operating income grew more than twice the organic sales growth rate, and operating margin expanded over 100 basis points excluding M&A impacts [7] - Adjusted EPS grew by 10% or 16% when excluding the WorldVerlin divestiture [8] - Free cash flow reached $214 million year-to-date, with a free cash flow margin of 14% in Q2 [9] Business Line Data and Key Metrics Changes - Industrial Process (IP) orders grew by 22%, with notable strength in Gulps Pumps and Svanohoi, where orders exceeded their full year 2024 revenue in the first half of 2025 [10] - Connect and Control (CCT) saw a 9% organic growth driven by Defense and Commercial Aerospace, with total orders increasing by 36% [11] - Motion Technologies (MT) Friction team won 49 new electrified platform awards, with Friction OE growing 7% organically [12][13] - IP revenue grew 5% organically, while CCT grew 4% organically, and MT Friction OE outperformed global auto production by over 500 basis points [24][26] Market Data and Key Metrics Changes - The company reported a book-to-bill ratio of 1.1, resulting in an ending backlog of nearly $2 billion, up 34% year-over-year and 9% sequentially [13] - The automotive market production was up 2.6% in Q2, with expectations for the full year to be flat or slightly positive [42] - The company outperformed in all three regions (Europe, China, North America) and across all powertrain types (internal combustion, hybrid, EV) [43] Company Strategy and Development Direction - The company focuses on organic growth and margin expansion, complemented by M&A activities [6] - The 2030 financial targets include more than 5% organic revenue growth and approximately 10% total growth annually, with margins expected to reach 23% [22] - The company is actively pursuing acquisition targets, with a disciplined framework for deal selection and integration [21][82] Management's Comments on Operating Environment and Future Outlook - Management raised the full-year adjusted EPS outlook to $6.45, reflecting strong first-half performance and improved visibility for the second half [16][31] - The company expects continued growth in the Project business in IP, firm demand in Aerospace and Defense, and outperformance in Friction OE and Rail [31] - Management noted that the funnel remains healthy, with only minor shifts in order timing, indicating confidence in future performance [40] Other Important Information - The company repurchased $500 million of shares year-to-date, reducing the weighted average share count by 3% [9] - The estimated gross tariff costs for 2025 have been reduced to approximately $25 million, half of the previous estimate, with no material impact expected [32][122] Q&A Session Summary Question: Thoughts on capital equipment and project hesitancy - Management noted strong order performance with only minor shifts in timing, indicating no major concerns in the market [39][40] Question: Auto landscape outlook - The automotive production forecast for 2025 is slightly positive, with the company outperforming across all regions and powertrain types [42][43] Question: CCT orders and market growth - CCT orders grew significantly, driven by aerospace and defense, with strong share gains noted [52][54] Question: FX impact on Motion Technologies margins - The depreciation of the dollar against the euro has negatively impacted transaction margins, despite positive translation effects [56] Question: Strength in Svanahoy business - The outperformance is attributed to strong execution and product differentiation, with expectations for continued growth [63][65] Question: Pricing actions and tariff exposure - The company has successfully mitigated tariff impacts through pricing and productivity actions, with no material income impact expected [122]

Financial Performance - VSE achieved record revenue of $272 million in Q2 2025, a 41% increase year-over-year, driven by strong performance in aviation distribution and MRO businesses [16][18] - Adjusted EBITDA increased by 52% to $43 million, with an adjusted EBITDA margin of 16%, reflecting a 110 basis point improvement from the prior year [16][18] - Adjusted net income reached $20 million, with adjusted net income per diluted share of $0.97, marking increases of 149% and 106% respectively [16][19] Business Segment Performance - Aviation segment revenue also increased by 41% to $272 million, with distribution revenue up 50% and MRO revenue up 27% [20] - Organic revenue growth in the aviation segment was approximately 13% when excluding recent acquisitions [20] - The company is focusing on higher margin product lines, leading to a reduction in less profitable used serviceable material (USM) revenue by about 20% on a run rate basis [11][20] Market Environment - The aviation aftermarket showed resilience, with a rebound in activity in May and June after initial softness due to tariff uncertainties [15] - Engine-related MRO and distribution revenue now represents over 50% of total aviation revenue, indicating strong demand in this segment [15] Company Strategy and Development Direction - VSE completed the sale of its fleet segment, transitioning to a pure play aviation aftermarket company, and is now focused on higher growth and higher margin opportunities [6][25] - The company is prioritizing integration of recent acquisitions, including Turbine Weld and Kaelstrom, to unlock efficiencies and enhance customer value [26] - VSE is also capturing cost synergies from acquisitions, with $4 million in identified cost savings already being realized [12][26] Management Commentary on Operating Environment and Future Outlook - Management expressed confidence in continued strength in the aviation aftermarket, particularly in the engine segment, and anticipates revenue growth of 35% to 40% for the full year 2025 [22][15] - The company is raising its full-year adjusted EBITDA margin guidance to 16.5% to 17%, reflecting a higher margin product mix [22] Other Important Information - VSE secured a new $700 million credit facility, providing financial flexibility to support growth initiatives [7] - The company generated approximately $6 million in free cash flow during the quarter, an improvement of about $28 million compared to the previous year [24] Q&A Session Summary Question: Can you discuss organic growth expectations for the second half of the year? - Management indicated that organic growth is expected to be in the low to mid-teens, with engine markets outperforming component markets [32][34] Question: What are the synergies from recent acquisitions? - Management noted that synergies from Kaelstrom are being realized ahead of schedule, contributing to strong margins [36][62] Question: How sustainable is the free cash flow generation? - Management expects strong improvement in free cash flow in the second half of the year, driven by better working capital management [42] Question: What is the strategy for the USM business? - The company is shifting the USM business to focus on higher margin product lines and integrating it with repair capabilities [45][84] Question: What are the opportunities in the hydraulics market? - Management sees potential in the hydraulics market, emphasizing faster turnaround times and quality in supporting OEM authorized work [73] Question: What is the outlook for engine aftermarket demand? - Management believes that engine aftermarket demand will continue to outpace component demand in the near to mid-term due to supply chain constraints [77]