Financial Data and Key Metrics Changes - Total sales grew 6.9% year over year to $1.4 billion, with core sales increasing by 5.1% driven by both volume and price increases [13][14] - Adjusted EPS grew 11% year over year to $0.99, exceeding the high end of guidance by $0.04 [15][24] - Free cash flow generation was strong, with $258 million generated in the third quarter, a 20% increase year over year [15][20] Business Line Data and Key Metrics Changes - Water Quality segment sales were $856 million, up 7% year over year, with core sales growing 5.3% [16][17] - PQI segment sales grew 6.9% year over year to $548 million, with core sales increasing by 4.6% [17][18] - Recurring revenue grew high single digits year over year, comprising 62% of total sales [14][15] Market Data and Key Metrics Changes - In North America, which accounts for 50% of total business, core sales grew 6.9%, led by high single-digit growth in PQI and mid-single-digit growth in Water Quality [9][10] - Core sales in high growth markets increased by 4.3%, with notable growth in the Middle East, Latin America, and India [12] - Core sales into China grew low single digits in both segments, performing as expected [34] Company Strategy and Development Direction - The company raised its full year adjusted EPS guidance to a range of $3.82 to $3.85 per share, indicating confidence in continued growth [5][24] - The capital allocation strategy is focused on acquisitions, with a pipeline of opportunities in both water quality and product quality innovation [5][22] - The company emphasizes sustainability, having published its annual sustainability report and achieved significant milestones in environmental contributions [6] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macro environment, highlighting the essential need for technology solutions in clean water and safe food [25] - The company expects continued mid-single-digit core sales growth for the full year, with favorable currency rates contributing positively [22][23] - Management noted that the pricing strategy has effectively offset tariff impacts, and they remain vigilant in monitoring the operating environment [31][32] Other Important Information - The company achieved over 100% free cash flow conversion, reflecting strong operational execution [5][15] - The water quality segment saw strong demand for water analytics and treatment solutions, particularly in industrial markets [11][17] Q&A Session Summary Question: Clarification on tariffs and government shutdown impacts - Management indicated that pricing actions have effectively offset tariff impacts, and there has been no material impact from the government shutdown [30][32] Question: Comments on demand pace in China - Management noted that demand in China is performing as expected, with no significant changes in total sales [34] Question: Durability of strength in water quality business - Management highlighted strong double-digit growth in data center-related sales, indicating a strategic priority for the company [41][42] Question: Expectations for PQI margins and pricing - Management acknowledged that while tariffs have impacted margins, they expect to see improvements as they lap the tariff effects in 2026 [45][46] Question: Growth in high-growth markets - Management reported strong growth in high-growth markets, particularly in Latin America and India, driven by infrastructure development [89][90] Question: Recurring revenue growth drivers - Management stated that both equipment and consumables are growing strongly, with software-based businesses also contributing to recurring revenue [91][92]