Financial Data and Key Metrics Changes - Organic revenue increased by 1.9% year on year, driven primarily by positive volume trends [6][12] - EBITDA was $114 million, which was at the high end of guidance, but declined year on year as expected, with an EBITDA margin of 14.5% [6][12] - Adjusted earnings per share (EPS) was $0.54, down compared to the same quarter in 2024, driven by lower operating income [13] - Net debt to EBITDA ratio increased to 3.5 times at the end of the first quarter, up from 3.1 times at the end of 2024 [14] Business Line Data and Key Metrics Changes - In HHC (Hygiene, Health, and Cleaning), organic revenue was up 4% year on year, with an EBITDA margin of 12.7%, down from last year due to higher raw material costs [7][8] - Engineering Adhesives saw a 2% decline in organic revenue, but EBITDA increased by 16%, with an EBITDA margin of 18.7% [9] - Building Adhesive Solutions (BAS) had a 2% increase in organic sales, with EBITDA also increasing by 2% year on year [10] Market Data and Key Metrics Changes - In the Americas, organic revenue was down 1% year on year, driven by declines in HHC and Engineering Adhesives, but BAS achieved over 8% organic revenue growth [10] - EIMEA (Europe, India, Middle East, and Africa) saw a 4% increase in organic revenue, driven by double-digit growth in HHC [11] - Asia Pacific experienced a 7% increase in organic revenue, primarily due to strength in China [11] Company Strategy and Development Direction - The company is focused on maintaining pricing discipline, driving market share gains, and managing costs effectively while optimizing its portfolio mix [5][18] - The strategic direction includes streamlining the cost structure and improving operational efficiency, with a target of achieving greater than 20% EBITDA margin [5][19] - The company is prioritizing share buybacks and has temporarily slowed the timing of M&A transactions due to market volatility [15][16] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to weak overall market demand and unpredictable geopolitical conditions [5] - The company expects to see a favorable net benefit from pricing and raw material actions for the remainder of the year [6] - Management is confident in their ability to adapt and execute in the current environment to deliver growth in organic sales and EBITDA [6][18] Other Important Information - The company is experiencing raw material cost inflation, with about 20% of the portfolio seeing increases [73] - The solar business is expected to remain weak throughout the year, but margins are anticipated to improve as the company repositions away from lower efficiency panels [70][71] Q&A Session Summary Question: What are the current operating conditions and customer management strategies? - Management noted that customers are cautious and not seeing prebuying trends, focusing instead on innovation and new product development [25][26] Question: Can you provide an update on market share and competitive environment? - Management confirmed gaining market share in multiple segments, particularly in HHC, and noted ongoing challenges in the solar market [31][32] Question: What is the outlook for pricing and EBITDA margins in HHC? - Management expects improving margins in HHC throughout the year, ideally reaching a 16% to 17% EBITDA margin range [39][41] Question: How is working capital impacting cash flow? - Management indicated that working capital needs are higher due to volume and pricing growth, but improvements are expected as the year progresses [42][44] Question: What is the outlook for the European and U.S. economies? - Management observed that the U.S. business is slowing, while the European market showed mixed results, with some segments accelerating [80][81] Question: How is the company positioned regarding tariffs and their impact? - Management stated that durable goods production will be more impacted by tariffs, but the company is well-positioned to manage costs in a low-volume environment [102] Question: Are there opportunities in the PFAS-free market? - Management confirmed that they have PFAS-free alternatives and are actively working with customers to capture market share in this area [105]

Financial Data and Key Metrics Changes - Organic revenue increased by 1.9% year on year, driven primarily by positive volume trends [7] - EBITDA was $114 million, which was at the high end of guidance, but declined year on year, with an EBITDA margin of 14.5% [8] - Adjusted earnings per share (EPS) was $0.54, down compared to the same quarter in 2024, driven by lower operating income [15] - Net debt to EBITDA ratio increased to 3.5 times at the end of the first quarter, up from 3.1 times at the end of 2024 [16] Business Line Performance Changes - In HHC, organic revenue was up 4% year on year, with EBITDA margin at 12.7%, down from last year due to higher raw material costs [10] - Engineering Adhesives saw a 2% decline in organic revenue, but EBITDA increased by 16%, with an EBITDA margin of 18.7% [11] - Building Adhesive Solutions (BAS) organic sales increased by 2% year on year, with EBITDA also increasing by 2% [12] Market Performance Changes - Americas organic revenue was down 1% year on year, driven by declines in HHC and Engineering Adhesives, but BAS achieved over 8% organic revenue growth [12] - EIMEA region saw a 4% increase in organic revenue, driven by double-digit growth in HHC [13] - Asia Pacific organic revenue increased by 7% year on year, primarily due to strength in China [13] Company Strategy and Industry Competition - The company is focused on maintaining pricing discipline, driving market share gains, and managing cost structures effectively [6] - The strategic plan includes optimizing the portfolio mix and streamlining manufacturing costs to achieve a greater than 20% EBITDA margin target [6] - The company is adapting to market dynamics and is confident in its ability to drive sustained growth in organic sales and EBITDA [20] Management's Comments on Operating Environment and Future Outlook - Management remains cautious due to weak overall market demand and unpredictable geopolitical conditions [6] - The company expects a favorable net benefit from pricing and raw material actions for the remainder of the year [9] - Management anticipates that the last three quarters of the year will see EBITDA margins closer to the 15% to 17% range as pricing improves [42] Other Important Information - The company repurchased 678,000 shares during the first quarter and plans to continue share buybacks opportunistically [16] - The company is temporarily slowing the timing of M&A transactions due to market volatility [17] - Full-year adjusted EBITDA is expected to be in the range of $600 million to $625 million, equating to growth of approximately 1% to 5% year on year [18] Q&A Session Summary Question: What are the current operating conditions and customer management through volatility? - Management noted that customers are cautious and not seeing pre-buying in the U.S. or globally [27] Question: Can you provide an update on market share and competitive environment? - Management confirmed gaining market share in HHC and noted ongoing challenges in the solar segment [33] Question: What is the outlook for pricing in HHC? - Management expects improving margins in HHC throughout the year, targeting a normalized EBITDA margin of 16% to 17% [40] Question: How is working capital impacting cash flow? - Management indicated that working capital needs are higher due to volume and pricing growth, but expects improvement throughout the year [44] Question: What is the outlook for demand in March and beyond? - Management observed a steady crawl of volume without significant push-outs due to trade uncertainties [52] Question: How is the company managing debt reduction versus share buybacks? - Management is prioritizing share buybacks while being cautious about M&A due to leverage concerns [56] Question: What trends are being observed in China? - Management reported mid to high single-digit growth in China, with strong performance in both HHC and Engineering Adhesives [60] Question: What is the expected impact of solar business repositioning? - Management expects continued revenue drag in the solar business but anticipates margin improvements [70] Question: How are raw material costs affecting different business segments? - Management noted that raw material costs are increasing, particularly impacting HHC, but expects to drive pricing and reallocate materials [73]