Group 1 - Shore Bancshares, Inc. (SHBI) has a Zacks Rank 1 and its current year earnings estimate increased by 7.1% over the last 60 days [1] - Shore's shares gained 15.1% over the last three months, outperforming the S&P 500's 10% advance [1] - Worthington Enterprises, Inc. (WOR) has a Zacks Rank 1 with a current year earnings estimate increase of 16.2% over the last 60 days [2] - Worthington's shares gained 27.4% over the last three months, significantly outperforming the S&P 500's 10% advance [2] - Greif, Inc. (GEF) holds a Zacks Rank 1 and its current year earnings estimate increased by 6.9% over the last 60 days [3] - Greif's shares gained 18% over the last three months, also outperforming the S&P 500's 10% advance [3] - All three companies possess strong momentum characteristics, with Shore and Worthington having Momentum Scores of A, while Greif has a Momentum Score of B [1][2][3]

Core Insights - ITT Corporation is experiencing growth across its segments, particularly in the Industrial Process, Connect and Control Technologies, and Motion Technologies segments, driven by strong demand and strategic acquisitions [1][2][7]. Segment Performance - The Industrial Process (IP) segment is benefiting from solid momentum in short-cycle business within energy and industrial markets, with growth in demand for parts, services, and valves [1]. - The Connect and Control Technologies (CCT) segment is supported by increased sales of components and connectors in defense and industrial markets, bolstered by the acquisition of kSARIA [1][2]. - The Motion Technologies (MT) segment is expected to perform well due to strong demand for brake components, specialized sealing solutions, and damping technologies in OEM and rail transportation markets [1]. Acquisitions and Growth - Acquisitions contributed 6.3% to ITT's sales in Q1 2025, with significant deals including kSARIA and Svanehøj, enhancing capabilities in defense, aerospace, and marine markets [2][7]. - The acquisition of Micro-Mode Products in May 2023 expanded ITT's product portfolio and customer base, particularly for long-term defense programs [2]. Financial Performance - In Q1 2025, ITT paid out dividends of $28.7 million and repurchased shares worth $100 million, with a 10% increase in the quarterly dividend rate announced in February 2025 [3]. - ITT's sales rose 6.3% in Q1 2025, driven by strength across its segments, although higher costs and foreign exchange translation negatively impacted revenues [7][9]. Cost Challenges - The company has faced rising operating costs, with a 9.6% year-over-year increase in cost of sales in 2024 due to higher raw material and labor costs [8]. - Sales and marketing expenses rose 18.2% year-over-year in 2024, continuing into Q1 2025 with a 6.2% increase [8].

Company Overview - IDEX is a manufacturer of highly engineered components, providing innovative solutions for challenging applications[8] - In 2024, IDEX reported revenue of $3.3 billion, adjusted EBITDA of $874 million, and free cash flow of $603 million[10] - The company operates through three segments: Health & Science Technologies (HST), Fluid & Metering Technologies (FMT), and Fire & Safety/Diversified Products (FSDP)[9, 10] Segment Performance (2024) - Health & Science Technologies (HST) had sales of $1.3 billion, representing approximately 39% of total segment sales, with an adjusted EBITDA margin of 27%[9, 22] - Fluid & Metering Technologies (FMT) had sales of $1.233 billion with an adjusted EBITDA margin of 33%[30] - Fire & Safety/Diversified Products (FSDP) had sales of $0.7 billion, about 23% of total segment sales, with an adjusted EBITDA margin of 29%[9, 22] Financial Performance & Growth - IDEX deployed approximately $3 billion in capital on M&A in the last 5 years[41, 66] - The company is targeting higher-growth markets and accelerating commercial & operational integration across platforms[37] - In 2024, the adjusted diluted EPS attributable to IDEX was $7.89[58, 74] Financial Flexibility - In 2024, the free cash flow was $603 million, representing a 101% conversion rate[10, 60, 61]

Group 1 - Dover Corporation has completed the acquisition of SIKORA AG, which will be integrated into Dover's MAAG operating unit within the Pumps & Process Solutions segment [1] - Dover is a diversified global manufacturer with annual revenue exceeding $7 billion, operating through five segments: Engineered Products, Clean Energy & Fueling, Imaging & Identification, Pumps & Process Solutions, and Climate & Sustainability Technologies [2] - The company employs approximately 24,000 people and is recognized for its entrepreneurial approach, collaborating with customers to innovate and redefine possibilities [2]

Core Viewpoint - Baker Hughes has announced the sale of its Precision Sensors & Instrumentation (PSI) product line to Crane Company for approximately $1.15 billion, aligning with its strategy of portfolio optimization and capital reallocation [1][3][4]. Group 1: Transaction Details - The PSI product line includes brands such as Druck, Panametrics, and Reuter-Stokes, which specialize in sensor-based technologies for various industries [2]. - The sale includes all assets of the PSI business, encompassing intellectual property, manufacturing facilities, and resources, with approximately 1,600 employees involved [2]. - The transaction is expected to close by the end of 2025 or early 2026, pending regulatory approvals [5]. Group 2: Strategic Implications - This divestiture is part of Baker Hughes' focus on enhancing its core competencies in rotating equipment, asset performance management, flow control, and decarbonization [3][4]. - The CEO of Baker Hughes emphasized that the transaction reflects the quality of the PSI product lines and their potential under Crane's management, reinforcing the company's commitment to long-term shareholder value [4]. Group 3: Advisory and Background - Evercore is serving as the financial adviser for Baker Hughes in this transaction [5]. - Baker Hughes operates globally, providing energy technology solutions and has a history of over 100 years in the industry [6].

Financial Performance & Outlook - NN achieved net sales of $449 million and an adjusted EBITDA of $48 million, resulting in an adjusted EBITDA margin of 10.6%[9] - The company's 2025 outlook includes net sales between $430 million and $460 million, and adjusted EBITDA between $53 million and $63 million[35] - NN China's sales are $75 million with >20% EBITDA margins, while NN's China JV sales are ~$125 million with >25% EBITDA margins[34] Business Segments & Strategy - Auto sector accounts for 48% of NN's FY2024 net sales, while Industrial, Electrical, and Other sectors account for 25%, 17%, and 10% respectively[11] - NN has secured ~$160 million in new business wins in the first 2 years, with $25.6 million YTD as of May 2025[12] - The company is targeting $65 million in new wins per year as part of its new wins program[31] - NN's prospecting pipeline is approaching 2x the company's size, indicating significant potential for new wins[7] Global Operations - NN has a global manufacturing platform with 24 facilities in 6 countries and a 49% ownership in a China Joint Venture machining plant with more than $120 million in sales annually[12] - Approximately 65% of NN's revenue comes from North America, 10% from South America, 10% from Europe, and 15% from Asia[14] - NN's China operations have won >$50 million in new business and are on track to double in size[34] Growth Initiatives - NN is targeting organic sales growth to $600 million, or $650 million with M&A, by 2028[38] - The company plans to launch 120 programs in 2025 with $55 million in peak annual sales value[38] - NN is pursuing a sales growth & pivot program with a $740+ million overall pipeline[31]

Financial Data and Key Metrics Changes - Nordson's Q2 fiscal 2025 sales were $683 million, a 5% increase from $651 million in Q2 fiscal 2024, driven by an 8% increase from the Atrion acquisition, offset by a 2% organic sales decrease and less than 1% unfavorable currency translation [12][13] - Gross profit was $374 million, maintaining a consistent 55% of sales, with EBITDA adjusted for restructuring and integration costs at $217 million, or 32% of sales, reflecting a 7% increase year-over-year [12][13] - Net income totaled $112 million, or $1.97 per share on a GAAP basis, with adjusted earnings per share at $2.42, a 3% increase from the prior year [14] Business Line Data and Key Metrics Changes - Industrial Precision Solutions (IPS) sales decreased 8% to $319 million, with an EBITDA of $114 million, or 36% of sales, down 12% year-over-year due to lower sales volume [14][16] - Medical and Fluid Solutions sales increased 20% to $203 million, driven by the Atrion acquisition, with EBITDA of $77 million, or 38% of sales, a 22% increase from the prior year [17][18] - Advanced Technology Solutions (ATS) sales rose 18% to $161 million, with EBITDA of $40 million, or 25% of sales, a 43% increase year-over-year [19] Market Data and Key Metrics Changes - The company experienced solid order entry and backlog growth of 5% since the last quarter, particularly in electronics, precision agriculture, and select medical product lines [24] - The industrial systems segment showed sequential improvement compared to the first quarter, although automotive demand remains a headwind [38] Company Strategy and Development Direction - Nordson is focusing on divesting select product lines within its medical contract manufacturing business to concentrate on higher-value growth opportunities within the medical and fluid solutions segment [10] - The company is executing a balanced capital deployment strategy, including share repurchases totaling $85 million and $44 million in dividends, while maintaining a debt leverage ratio of 2.4 times [9][20] - The NBS Next framework is being utilized to assess the strategic fit of product lines and enhance operational efficiencies [10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in managing current tariff levels without significant impact on results, while monitoring potential effects on end market demand [22][93] - The outlook for Q3 fiscal 2025 sales is projected to be between $710 million and $750 million, with adjusted earnings forecasted between $2.55 and $2.75 per diluted share [27] - Management highlighted the resilience of Nordson's business model and its ability to adapt to market uncertainties, emphasizing ongoing investments in innovation and customer relationships [28][113] Other Important Information - The company reported a free cash flow generation of $103 million during the quarter, resulting in a 92% conversion rate on net income [20] - Nordson's integration of Atrion is performing above expectations, contributing positively to sales and margins [8][36] Q&A Session Summary Question: Trends for the rest of the year and major verticals - Management noted solid order entry in ATS, driven by investments in computing power, and expressed optimism about growth sustainability in the segment [34][35] Question: Size of contract manufacturing divestiture and future actions - The divestiture represents roughly 4% of year-to-date sales in the medical segment, with no other ongoing actions currently planned [43][44] Question: Consistency of growth in ATS segment - Management acknowledged the inherent volatility in ATS but indicated strong order entry patterns and confidence in organic growth [51][55] Question: Status of destocking in interventional medicine - Destocking is reducing in severity, with expectations for gradual recovery to normal demand growth rates [60][62] Question: Margin performance in ATS amid customer behavior volatility - Management indicated that while margins may fluctuate, structural changes have raised the baseline margin performance in the segment [68][69] Question: Impact of tariffs on financial performance - Current tariff levels are manageable, with minimal impact on Q2 results, and the company is monitoring potential effects on end market demand [90][93] Question: Growth drivers in ATS and semiconductor markets - Approximately 50% of ATS business is driven by semiconductor and high-performance computing, up from 20-30% a few years ago [96]

Core Insights - ITT Inc. is experiencing growth driven by strong demand in its short-cycle business within the energy and industrial markets, particularly in the Industrial Process and Connect and Control Technologies segments [1][2] Group 1: Business Performance - The Motion Technologies segment is expected to perform well due to strong demand for brake components, sealing solutions, shock absorbers, and damping technologies in OEM and rail transportation markets [2] - ITT anticipates organic sales growth of 3-5% for 2025 compared to the previous year [2] - Acquisitions are a key strategy for ITT, with the acquisition of kSARIA Parent, Inc. in September 2024 enhancing its connectivity solutions for defense and aerospace markets [3] - The acquisition of Svanehøj for approximately $395 million in January 2024 expanded ITT's offerings in the marine pumps industry, contributing 6.3% to sales in Q1 2025 [4] Group 2: Shareholder Value - ITT is focused on increasing shareholder value through dividends and share repurchases, paying out $28.7 million in dividends and repurchasing $100 million in shares in Q1 2025 [5] - Total dividend payments in 2024 were $104.7 million, with share repurchases amounting to $104.5 million, and a 10% increase in quarterly dividend rate was announced in February 2025 [5] Group 3: Cost and Expense Challenges - The company has faced rising operating costs, with a 9.6% year-over-year increase in cost of sales in 2024 due to higher raw material and labor costs [9] - Sales and marketing expenses rose 18.2% year-over-year in 2024, with a continued increase of 6.2% in Q1 2025, while general and administrative expenses increased by 19.3% [10] Group 4: Currency Impact - ITT's international operations expose it to foreign currency risks, with a $16 million revenue reduction in Q1 2025 attributed to foreign currency translation [11] Group 5: Market Performance - Over the past year, ITT's stock has gained 10.5%, outperforming the industry growth of 7.7% [8]

Core Viewpoint - Nordson Corporation is set to release its second-quarter fiscal 2025 results, with expectations of mixed performance due to various market challenges and recent acquisitions [1][6]. Group 1: Earnings Expectations - The consensus estimate for Nordson's fiscal second-quarter revenues is $673.6 million, reflecting a 3.5% increase from the previous year [6]. - The adjusted earnings estimate is $2.36 per share, indicating a 0.9% decrease compared to the same quarter last year [6]. - The company has a history of earnings surprises, averaging a 2.9% beat, although the last quarter's earnings missed the consensus estimate by 1% [1][6]. Group 2: Segment Performance - The Industrial Precision Solutions segment is expected to show weak results, with revenues projected at $323 million, a 12% decrease from the prior year [2]. - The Medical and Fluid Solutions segment is likely to be impacted by decreased demand due to destocking, while the Advanced Technology Solutions segment may face challenges from softness in electronics processing and x-ray product lines [3]. - The overall cost of sales is anticipated to rise due to high input costs, which may negatively affect profit margins [3]. Group 3: Acquisitions and Growth Opportunities - The acquisition of Atrion Corporation is expected to enhance Nordson's medical offerings in infusion and cardiovascular therapies, potentially supporting overall results [5]. - The acquisition of ARAG Group in August 2023 is anticipated to strengthen Nordson's capabilities in precision dispensing technology and expand its presence in the precision agriculture market [5]. Group 4: External Factors - Nordson's international operations expose it to risks from adverse currency fluctuations, which may impact performance [4].

Wolfe Research Global Transportation & Industrials Conference May 22, 2025 Safe Harbor and Non-GAAP Disclosures Safe Harbor This presentation contains "forward-looking statements"intended to qualify for the safe harbor from liability established by the Private Securities Litigation Reform Act of 1995. In addition, the accompanying webcast may include, and officers and representatives of ITT may from time to time make and discuss, projections, goals, assumptions, and statements that may constitute "forward-l ...