Brady (BRC) Q4 2025 Earnings Call September 04, 2025 10:30 AM ET Company ParticipantsAnn Thornton - CFO & TreasurerRussell Shaller - President, Director & CEOConference Call ParticipantsSteve Ferazani - Senior Equity Analyst - Diversified Industrials & EnergyKeith Housum - MD & Research AnalystOperatorGood day, and thank you for standing by. Welcome to the Brady Corporation Q4 twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentat ...

Core Points - CSW Industrials announced the retirement of Robert Swartz from the Board of Directors effective immediately after the 2025 Annual Meeting, in line with the Company's Corporate Governance Guidelines [1] - Linda Livingstone, Ph.D., has been appointed as the Lead Independent Director following Mr. Swartz's retirement, highlighting the Board's commitment to leadership succession planning [1][3] Company Leadership - Robert Swartz was one of the inaugural directors and served as the Lead Independent Director since CSW Industrials became an independent public company in September 2015, significantly contributing to the Company's development [2] - Joseph B. Armes, Chairman and CEO, expressed gratitude for Mr. Swartz's ten years of service and welcomed Dr. Livingstone into her new leadership role, emphasizing her proven leadership qualities [3] Dr. Linda Livingstone's Background - Dr. Livingstone has been on the Board since September 2015 and is involved in the Compensation & Talent Development and Nominating & Corporate Governance Committees [4] - She is the President of Baylor University since June 2017 and has held various leadership roles in educational and athletic organizations, including the NCAA [4] Company Overview - CSW Industrials operates in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions, focusing on niche, value-added products known for performance and reliability [5] - The primary end markets served include HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transportation [5]

Core Points - CSW Industrials announced the retirement of Robert Swartz from the Board of Directors effective immediately after the 2025 Annual Meeting, in line with the Company's Corporate Governance Guidelines [1] - Linda Livingstone, Ph.D., has been appointed as the Lead Independent Director following Mr. Swartz's retirement, highlighting the Board's commitment to leadership succession planning [1][3] Company Leadership - Robert Swartz was one of the inaugural directors and served as the Lead Independent Director since CSW Industrials became an independent public company in September 2015, significantly contributing to the Company's development [2] - Joseph B. Armes, Chairman and CEO, expressed gratitude for Mr. Swartz's ten years of service and welcomed Dr. Livingstone into her new role, emphasizing her proven leadership [3] Dr. Linda Livingstone's Background - Dr. Livingstone has been on the Board since September 2015 and is involved in the Compensation & Talent Development and Nominating & Corporate Governance Committees [4] - She is the President of Baylor University since June 2017 and has held various leadership roles in educational and athletic organizations [4] Company Overview - CSW Industrials is a diversified industrial growth company operating in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions [5] - The Company provides niche, value-added products primarily serving markets such as HVAC/R, plumbing, electrical, general industrial, and rail transportation [5]

Financial Data and Key Metrics Changes - EnPro reported second quarter sales of $288.1 million, a 6% increase year-over-year, with adjusted EBITDA of $71.1 million, down 3.9% from the previous year [12][19] - Adjusted diluted earnings per share decreased to $2.3 from $2.8 last year, primarily due to factors affecting adjusted EBITDA performance [13] Business Line Data and Key Metrics Changes - Sealing Technologies sales increased by 1.9% to $187.5 million, driven by strength in aerospace and food and pharma markets, while adjusted segment EBITDA margin was 33.8%, down from 35.5% last year [14] - Advanced Surface Technologies (AST) saw a 14.5% increase in sales to $100.9 million, with adjusted segment EBITDA margin at 19.6%, down from 21.7% last year [15][16] Market Data and Key Metrics Changes - The company experienced strong performance in aerospace and food and pharma markets, while commercial vehicle OEM demand remained weak [6][19] - The overall semiconductor capital equipment spending was described as choppy, but there was growth in leading-edge precision cleaning solutions and optical coatings [15] Company Strategy and Development Direction - EnPro is focused on capturing opportunities in key markets such as aerospace, sustainable power generation, food and pharma, and compositional analysis, aiming for long-term profitable growth [7][10] - The company is implementing a multi-year strategy called EnPro 3.0, which emphasizes personal and profitable growth for employees [10][22] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the underlying demand for their products, particularly in aerospace and food and pharma markets, while acknowledging challenges in commercial vehicle OEM demand [19][40] - The company raised its full-year 2025 guidance, expecting sales growth between 5-7% and adjusted EBITDA in the range of $270 million to $280 million [19] Other Important Information - The balance sheet remains strong, with net debt of $364 million and a net leverage ratio of 1.4 times trailing twelve-month adjusted EBITDA [17] - Free cash flow for the first half of 2025 was $52.8 million, up from $35.5 million last year, driven by strong operating performance and working capital management [18] Q&A Session Summary Question: What was the impact of FX transaction headwinds in Sealing? - Management indicated that the impact was $1.9 million due to the weakening of the U.S. dollar, affecting expenses in non-functional currency denominations [30][31] Question: What is the outlook for AST's incremental margins in the second half? - Management expects that the FX headwinds experienced in Q2 will not continue at the same magnitude, and AST should leverage well going forward as revenue from growth investments materializes [36] Question: What is driving the improved growth rate in Sealing for the second half? - Management highlighted new programs and customer wins, particularly in the OEM commercial truck sector, and a strong backlog as factors contributing to the improved outlook [39][40] Question: How is the M&A market looking? - Management remains active in the M&A space, focusing on growth nodes in key markets and evaluating opportunities that meet their strategic and financial criteria [54][55]

Financial Data and Key Metrics Changes - Second quarter sales reached $3.3 billion, growing 2% on an organic basis [6][15] - Operating EBITDA was $859 million, an increase of 8% year over year, resulting in an operating EBITDA margin of 26.4%, up 120 basis points from the prior year [6][17] - Adjusted EPS for the quarter was $1.12, up 15% year over year [6][19] Business Line Data and Key Metrics Changes - Electronics Co. net sales were $1.2 billion, up 6% year over year, driven by an 8% increase in volume [20] - Industrials Co. second quarter net sales were $2.1 billion, up 1% year over year, with 2% volume growth partially offset by a 1% decline in price [21][22] - Healthcare and Water Technologies saw high single-digit organic sales growth, while diversified industrial sales were down low single digits due to construction market softness [22][46] Market Data and Key Metrics Changes - Asia Pacific delivered 4% organic sales growth year over year, with Europe up 2% and North America up 1% [16] - The electronics market remains mixed, with growth primarily driven by AI applications, while consumer markets are still relatively weak [56][57] Company Strategy and Development Direction - The company is focused on the upcoming spin-off of Qunity Electronics, scheduled for November 1, aiming to position both entities for growth [8][10] - The new DuPont will emphasize high-growth healthcare and water markets, with plans for potential acquisitions to bolster these segments [12][71] - The company is committed to maintaining a strong cash flow and operational efficiency while navigating the separation process [8][24] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strength in electronics driven by AI technology demand, while acknowledging ongoing weakness in the construction sector [7][24] - The company raised its full-year earnings guidance based on strong second-quarter performance, despite anticipated tariff impacts [23][24] - Management highlighted the importance of customer relationships and market positioning in driving future growth [71] Other Important Information - A settlement with the State of New Jersey regarding environmental claims was announced, with the company's portion amounting to $177 million on an NPV basis [8][41] - The company is actively pursuing M&A opportunities to enhance its healthcare and water portfolios [72] Q&A Session Summary Question: Insights on industrials and pricing impacts - Management clarified that the 1% price decline was primarily due to price adjustments following inflationary pressures, not specific to the healthcare or tieback sectors [30][31] Question: Comments on the recent settlement - Management expressed satisfaction with the settlement, noting that AFFF claims represented only 1% of the total settlement amount, aligning with previous estimates [39][41] Question: Growth in healthcare and water sectors - Both healthcare and water sectors experienced high single-digit growth, with expectations for continued outsized growth in the back half of the year [46][47] Question: Electronics market trends - Management noted that growth is primarily driven by AI applications, with expectations for gradual recovery in the broader electronics market [56][57] Question: Future M&A strategies - The focus remains on completing the spin-off of Qunity, while actively scouting for M&A opportunities in the healthcare and water sectors [72][73] Question: Tariff impacts and mitigation strategies - Over 90% of the tariff impact mitigation is attributed to supply chain movements, with some surcharges implemented to offset costs [132][133]

Core Points - Aalberts has repurchased 2,500 shares from July 14 to July 18, 2025, for a total of EUR 80,592.48, averaging EUR 32.24 per share [1] - The total shares repurchased under the buyback program up to July 18, 2025, amounts to 2,004,824 shares for EUR 59,799,126 [2] - The share buyback program is part of a larger initiative announced on February 27, 2025, with a total budget of EUR 75 million, set to conclude by October 24, 2025 [1][2] - The buyback is conducted within the authority granted by the Annual General Meeting on May 23, 2024, and adheres to the Market Abuse Regulation [3] Regulatory Compliance - The share buyback program complies with the technical standards set out in Regulation (EU) 596/2014 and Commission Delegated Regulation (EU) 2016/1052 [4]

Core Viewpoint - 3M is scheduled to release its earnings report on July 18, 2025, which is significant for traders employing event-driven strategies [2]. Earnings Performance - Over the past five years, 3M's stock has shown a balanced response to earnings releases, with 50% of cases resulting in a positive one-day return (median of 4.8%) and 50% in a negative return (median of -2.8%) [3][11]. - For the upcoming second quarter of 2025, consensus forecasts predict earnings of $2.01 per share on revenue of $6.05 billion, reflecting a 4.2% increase in earnings per share compared to $1.93 per share from the same quarter last year, despite a decrease in sales from $6.25 billion [4]. Market Position and Financials - 3M currently has a market capitalization of approximately $85 billion, with $25 billion in revenue generated over the past twelve months, operating profits of $4.9 billion, and a net income of $4.4 billion [5]. Trading Strategies - Traders may consider pre-earnings positioning based on historical probabilities, anticipating price movements, or post-earnings positioning to analyze immediate market responses before making trades [7]. - Understanding the correlation between short-term and medium-term returns post-earnings can guide trading decisions, particularly if a strong correlation exists between 1D and 5D returns [9].

Core Insights - 3M Company announced a settlement with the State of New Jersey regarding PFAS claims, which dates back to 2019 and originally focused on a site called Chamber Works [7]. Group 1: Company Overview - Bill Brown has been the CEO of 3M for a little over a year and has served as chairman for two and a half months [6]. - The company is actively addressing legal challenges related to environmental claims, specifically concerning PFAS [7]. Group 2: Industry Context - The PFAS claims are part of a broader trend in the industrial sector where companies are facing increasing scrutiny and legal challenges related to environmental impacts [7].

CSW Industrials is a diversified industrial growth company with industry-leading operations in three segments: Contractor Solutions, Specialized Reliability Solutions, and Engineered Building Solutions. The Company provides niche, value-added products with two essential commonalities: performance and reliability. The primary end markets we serve with our well-known brands include: HVAC/R, plumbing, electrical, general industrial, architecturally-specified building products, energy, mining, and rail transpor ...

Group 1 - Steel Partners Holdings L.P. has qualified to trade on the OTCQX Best Market, transitioning from the New York Stock Exchange [1][2] - The common and series A preferred units of Steel Partners Holdings L.P. are now trading under the symbols "SPLP" and "SPLPP" respectively [2] - Trading on the OTCQX Market provides companies with efficient and cost-effective access to U.S. capital markets, with streamlined requirements aimed at reducing costs and complexity [3] Group 2 - Steel Partners Holdings L.P. is a diversified global holding company with interests in various sectors including industrial products, energy, defense, supply chain management, banking, and youth sports [4] - OTC Markets Group Inc. operates regulated markets for trading 12,000 U.S. and international securities, with a focus on data-driven disclosure standards [5] - OTC Link Alternative Trading Systems (ATSs) provide essential market infrastructure for broker-dealers, enhancing access to U.S. financial markets [6]