Financial Data and Key Metrics Changes - Consolidated revenues increased by 5.2% year-over-year, with organic growth of 7.6% [7][16] - Adjusted EBITDA grew by 22.9% year-over-year, with an adjusted EBITDA margin of 22.8%, up 320 basis points [8][17] - Adjusted net income for Q1 was $80 million, a 31.1% increase from $61 million in the same quarter last year [17] Business Line Data and Key Metrics Changes - Industrial segment revenues rose by 4.4% to $308 million, or 8.1% on an organic basis, driven by ongoing certification services and certification testing [18] - Consumer segment revenues were $304 million, up 6.3% year-over-year, or 7.7% on an organic basis, with strong demand across all service offerings [19] - Software and Advisory segment revenues increased by 4.5% year-over-year to $93 million, with organic growth of 5.6% [21] Market Data and Key Metrics Changes - Growth was observed across all geographic regions, with North America showing particular strength in both industrial and consumer segments [61] - The automotive electromagnetic compatibility laboratory in Japan is expected to address a growing market projected to reach $2.7 billion by 2030 [11] Company Strategy and Development Direction - The company is focusing on capacity expansions in HVAC testing facilities and developing a global fire science center of excellence [9][10] - Strategic investments are being made to align with megatrends such as global energy transition and digitalization [6][30] - The company aims to pursue strategic M&A opportunities to enhance margins and earnings [27] Management's Comments on Operating Environment and Future Outlook - Management reaffirmed the full-year 2025 outlook despite increased macroeconomic uncertainties, expecting mid-single-digit organic revenue growth [25][26] - The company is monitoring key performance indicators closely to navigate potential risks and opportunities [14] Other Important Information - The effective tax rate for 2025 is expected to be approximately 26%, up from 16.9% in 2024 due to new tax regulations [27] - Free cash flow for Q1 was $103 million, up from $84 million in the prior year [24] Q&A Session Summary Question: Impact of tariffs on product redesign and manufacturing - Management noted that customers have been making decisions regarding tariffs for several years, with some already shifting manufacturing locations [34] Question: M&A strategy in uncertain macro backdrop - The company continues to engage in conversations about various acquisition opportunities globally, emphasizing the importance of CapEx as a growth accelerator [36] Question: Anticipated impact of tariffs on guidance - Management affirmed guidance, indicating confidence based on current business visibility and order book [41] Question: Moderation in new product launches - There has been no meaningful impact on innovation, with management maintaining close relationships with customers regarding their product development plans [42] Question: Margin expansion context - Strong operational execution across segments contributed to significant margin improvement, particularly in the Industrial segment [46] Question: Growth by geography - North America, especially in industrial sectors, continues to show strong demand, with notable growth also in Asia [61]

Q1 2025 Financial Highlights - Revenue grew by 5.2%, with organic revenue growth of 7.6%[8] - Adjusted Net Income increased by 31.1%[8] - Adjusted EBITDA increased by 22.9%, with Adjusted EBITDA margin up by 320 bps[8] - Free Cash Flow generated was $306 million for the last twelve months ended March 31, 2025[8] Q1 2025 Revenue Breakdown - Industrial segment revenue increased by 4.4% (8.1% organic) to $308 million[20, 40] - Consumer segment revenue increased by 6.3% (7.7% organic) to $304 million[24, 40] - Software and Advisory segment revenue increased by 4.5% (5.6% organic) to $93 million[27, 40] Q1 2025 Adjusted EBITDA - Adjusted EBITDA increased by 22.9% to $161 million, with a margin of 22.8%[13] Q1 2025 Adjusted Net Income - Adjusted Net Income increased by 31.1% to $80 million, with a margin of 11.3%[16] Full-Year 2025 Outlook - The company is affirming its 2025 outlook, which includes mid-single-digit constant currency organic revenue growth[34, 36] - Adjusted EBITDA margin organic improvement to approximately 24%[36] - Capital expenditures are expected to be 7% to 8% of revenue[36]