Financial Data and Key Metrics Changes - The company reported a 9.5% EPS growth at the midpoint, driven by margin expansion despite macroeconomic challenges impacting revenue [8][10] - Total return to shareholders for the year is approximately $2.2 billion, with $1 billion through share buybacks and $1.2 billion through dividends [10] Business Line Data and Key Metrics Changes - The new BD grew about 4% in Q3, with expectations for mid-single digit growth for the full year [11][12] - BD Interventional saw double-digit growth in UCC and strong mid-single digit growth across other businesses [30] - Aleris is gaining market share and is expected to continue contributing positively to growth [45][46] Market Data and Key Metrics Changes - The company anticipates a decline in China operations by high single digits this year, stabilizing thereafter as 90% of the portfolio will have gone through value-based procurement (VBP) by the end of next year [42][43] - The Biosciences segment is expected to see sequential growth improvements as it transitions to Waters [37] Company Strategy and Development Direction - The primary focus for the next twelve months includes completing the separation from the Life Science business, executing a commercial strategy, and continuing margin expansion through BD Excellence [6][8] - The company is committed to utilizing at least half of the $4 billion cash from the separation for share buybacks [9][10] - The innovation pipeline is robust, with new products expected to drive growth in biologic drug delivery and AI solutions [12][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges, emphasizing the importance of productivity improvements for customers facing tighter funding environments [73][75] - The company is taking a prudent approach to guidance for FY 2026, recognizing the dynamic macro environment while maintaining a mid-single digit growth outlook [58][60] Other Important Information - The company has completed a $1 billion share buyback for the year, contributing to a total capital return of $2.2 billion to shareholders [10] - The new AI-enabled Pyxis Pro system is expected to enhance medication management and improve operational efficiencies [47][50] Q&A Session Summary Question: What is the growth algorithm for the new BD? - The new BD is expected to grow mid-single digits, supported by a strong innovation pipeline and market positioning [11][12] Question: How does the company define similar margin profiles post-separation? - Management indicated that the operating margin post-separation would be similar, within 50 to 100 basis points [23][24] Question: What are the drivers for the acceleration in Q4 guidance? - The acceleration is driven by strong performance in BD Interventional and the organic growth of APM, which is expected to contribute over a point to growth [29][32] Question: How is the company addressing macroeconomic challenges? - The company is focusing on productivity improvements and forming partnerships with customers to navigate tighter funding environments [73][75] Question: What is the expected impact of pricing on growth? - Pricing is currently flattish but is expected to return as a tailwind as the company maintains pricing discipline globally [66]

Financial Data and Key Metrics Changes - Total revenues increased by 11% to $235.6 million and adjusted EBITDA increased by 3% to $86.5 million [17] - Adjusted EBITDA for Mobile Modular decreased by 1% to $53.1 million despite revenue growth [17] - Average fleet utilization decreased to 73.7% from 78.4% a year earlier [18] - Interest expense decreased by $5.2 million to $7.8 million due to lower average interest rates and debt levels [22] Business Line Data and Key Metrics Changes - Mobile Modular total revenues increased by 8% to $156 million, with rental revenues up by 5% and sales revenues up by 13% [17] - Portable Storage rental revenues decreased by 5% year over year but improved by 5% sequentially from the first quarter [8][20] - TRS RenTelco rental revenues grew by 7%, with average utilization improving to 64.8% from 56.5% a year ago [21] Market Data and Key Metrics Changes - The Architecture Billings Index (ABI) showed ongoing softness, but quote activity remained healthy [6] - Construction backlogs grew slightly in June, indicating improved activity levels [12] Company Strategy and Development Direction - The company is focused on expanding its modular solutions capabilities and geographic presence [13] - Two tuck-in acquisitions were completed to support modular growth strategy [11] - The company aims to enhance capabilities for larger and more complex modular building rentals and sales [14] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about economic conditions improving in the next two quarters [15] - The uncertain market conditions earlier in the year have not deteriorated significantly, with slight improvements observed [12] - The company upwardly adjusted its full-year financial outlook, expecting total revenue between $925 million and $960 million [23] Other Important Information - The company is investing in technology upgrades and strategic hiring to support long-term growth [72] - The benefit to free cash flow from new federal tax legislation is estimated to be between $10 million and $15 million [42] Q&A Session Summary Question: Can you provide more detail on the balance of third and fourth quarter EBITDA? - The company expects adjusted EBITDA to be broadly similar in Q3 and Q4, with a more balanced contribution of sales gross profit [28] Question: What is the visibility on the Mobile Modular segment? - Visibility is somewhat fluid due to current demand environment, with ongoing assessments of the pipeline [29] Question: How is the education business expected to perform this year? - The education business is expected to finish the year strong, with good order volume [31] Question: What factors could affect the current guidance range? - Sales activity can significantly impact the guidance, with a cautious approach taken for the second half of the year [35] Question: What is the impact of new federal tax legislation on free cash flow? - The estimated benefit to free cash flow is between $10 million and $15 million, though not a massive impact [42] Question: Can you provide an update on the pricing gap between current spot rates and existing rates? - The gap remains around 39% lower for existing rates compared to new shipments, with spot rates generally stable [47] Question: What is the outlook for portable storage demand? - There are encouraging signs of improvement, with increased quote volumes and unit shipments [48] Question: Can you discuss the geographical focus of new sales hires? - New hires are aimed at increasing geographic coverage and supporting both commercial and education business [52] Question: How is Enviroplex performing? - Enviroplex is performing well, with strong growth and improved margins, contributing positively to the overall performance [61]