Financial Data and Key Metrics Changes - Year-to-date organic orders increased by 2%, with a book-to-bill ratio of 1.04 times [4] - Adjusted EBITDA for Q3 was $545 million, with an adjusted EBITDA margin of 27.9% [8] - Adjusted EPS for the quarter was $0.86, up 2% year-over-year [9] - Free cash flow for Q3 was $326 million, approximately flat year-over-year [9] - Total liquidity stood at $3.8 billion, with leverage increasing modestly to 1.8 times [10] Business Line Data and Key Metrics Changes - In the ITS segment, Q3 orders were up 7%, with a book-to-bill of 0.99 times [11] - PST segment orders increased by 11% year-over-year, with organic orders up 7% [13] - Adjusted EBITDA for PST was $128 million, up 8% year-over-year, with a margin of 30.8% [13] Market Data and Key Metrics Changes - Orders in the Americas, Europe, the Middle East, and India, Africa were up high single digits, while Asia-Pacific saw mid-single-digit growth [12] - The company noted a positive trend in organic orders across all regions except for the vacuum and blower business [22] Company Strategy and Development Direction - The company remains focused on disciplined M&A, having closed 14 transactions year-to-date, with nine additional transactions under letters of intent [5] - The acquisition of DayBerry Plastics enhances capabilities within life sciences applications [6] - The company aims to achieve adjusted EBITDA margins of 30% by 2027 [11] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic market environment and highlighted a robust backlog heading into 2026 [23] - The company anticipates a full year of 2025 with a book-to-bill ratio finishing at or slightly above one [23] - Management acknowledged the impact of tariffs on margins but remains optimistic about long-term growth opportunities in sectors like life sciences and clean energy [24][45] Other Important Information - The midpoint of adjusted EBITDA guidance for the full year was modified to $2.075 billion due to tariff impacts [15] - The adjusted tax rate is expected to be roughly 23.5%, with net interest expense around $220 million [16] Q&A Session Summary Question: Market perspective and momentum into 2026 - Management noted continued organic order growth and positive trends across regions, with a focus on controlling controllable factors [21][22] Question: Margin commentary and expectations for 2026 - Management expects margin expansion in 2026, though it may be muted in the first half due to ongoing tariff impacts [26] Question: Tariff headwinds and pricing dynamics - The gross headwind from tariffs is now slightly over $100 million, with pricing actions taken to offset these costs [39] Question: Clean energy market performance - Management indicated that clean energy remains a good end market, with expectations for improved performance in 2026 [45] Question: Competitive dynamics and pricing strategies - Management confirmed that pricing will remain sticky, and they are focused on maintaining price increases despite tariff fluctuations [60]