Financial Data and Key Metrics Changes - Adjusted EPS for the quarter was $1.49, reflecting a 6.5% core sales growth driven by aerospace and process flow technologies [4][20] - Core FX neutral backlog increased by 29% year over year, reaching over $1 billion, while core FX neutral orders were up 19% compared to last year [21][24] - Adjusted operating profit increased by 15%, supported by strong net pricing and productivity [20] Business Line Data and Key Metrics Changes - Aerospace and Electronics segment sales reached $258 million, a 12% increase, with total aftermarket sales up 18% [24] - Process Flow Technologies delivered sales of $319 million, up 7%, with core sales growth of 3% [25] - Adjusted segment margin for Aerospace and Electronics was a record high of 26.3%, up from 23.8% last year [24] Market Data and Key Metrics Changes - Aerospace and defense markets are experiencing strong demand, with Boeing ramping up production and solid procurement spending in defense [13][16] - The chemical market is showing softness, particularly in Europe, but other segments like cryogenics and wastewater are growing [48][49] Company Strategy and Development Direction - The company announced the acquisition of Precision Sensors and Instrumentation businesses from Baker Hughes, aiming to enhance its technology portfolio [5][11] - The company is optimistic about deploying further capital for acquisitions, with a robust pipeline of opportunities [6][11] - The strategy focuses on leveraging existing strengths and pursuing new business opportunities to ensure sustainable growth [16][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising the full-year adjusted earnings outlook to a range of $5.5 to $5.8 billion, up from the previous range of $5.3 to $5.6 billion [7][28] - The macroeconomic environment remains unpredictable, but strong execution and a solid backlog provide confidence for future performance [7][16] Other Important Information - The company is in a net cash position, with leverage expected to be around 1x net debt to EBITDA after the PSI transaction [22] - Tariff impacts are anticipated to be offset through pricing and productivity measures, with a gross cost increase of approximately $30 million for the year [22][23] Q&A Session Summary Question: Can you discuss the areas of strength in the Aerospace and Electronics business? - Management noted broad-based strength across both commercial and military sectors, with significant orders in air defense and communication platforms for future years [32][34] Question: What is driving the expected drop in A&E margins in the second half? - The mix shift towards commercial OEM and challenging year-over-year comparisons in the aftermarket are expected to impact margins [35][36] Question: How is the GTF program performing in the aftermarket? - The GTF aftermarket revenues are growing at around 15% this year, with expectations of 30% growth next year, although it currently represents less than 5% of commercial aftermarket sales [39][40] Question: Can you provide insights on the cadence of PFT orders? - Orders were up 4% year over year, with stable market conditions, although some softness was noted in the chemical market [46][48] Question: What is the expected impact of the R&D tax changes? - A modest improvement in free cash flow is expected, but nothing significant, estimated to be less than 5% of total free cash flow [57] Question: How confident is the company in achieving the 10% ROIC from the PSI acquisition? - Management expressed high confidence in improving margins and achieving the targeted ROIC through operational efficiencies and strong aftermarket demand [78][79] Question: Are there any signs of project cancellations in the chemical market? - No significant cancellations are observed, but some projects are being pushed to the right due to customer demand uncertainties [94][96]

Financial Data and Key Metrics Changes - Adjusted EPS was $1.49, driven by a 6.5% core sales growth, reflecting strength in aerospace and process flow technologies [4][21] - Adjusted operating profit increased by 15%, driven by strong net price and productivity [21] - Core FX neutral backlog increased by 29% year-over-year, driven by strength in Aerospace and Electronics [21] - Core FX neutral orders were up 19% compared to last year, also driven by Aerospace and Electronics [21] Business Line Data and Key Metrics Changes - Aerospace and Electronics segment sales were $258 million, up 12% in the quarter, with a record backlog of over $1 billion [24] - Total aftermarket sales increased by 18%, with commercial aftermarket sales up 9% and military aftermarket up 37% [24] - Process Flow Technologies delivered sales of $319 million, up 7%, with core sales growth of 3% [25] Market Data and Key Metrics Changes - Aerospace and defense markets continue to see strong demand, with Boeing ramping up production and solid procurement spending in defense [14] - The cryogenics business reached a record high backlog driven by strong demand in space launch and other segments [18] - Chemical market remains stable but soft, with lower CapEx expenditures from customers [48] Company Strategy and Development Direction - The company announced the acquisition of Precision Sensors and Instrumentation businesses from Baker Hughes, aiming to enhance its technology portfolio [5][13] - The company is optimistic about deploying further capital on acquisitions over the next several quarters [6] - The company plans to integrate the acquired businesses into its existing segments to drive growth and operational efficiency [12][73] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in raising the full-year adjusted earnings outlook to a range of $5.5 to $5.8, up from the previous range of $5.3 to $5.6 [6][28] - The macroeconomic environment remains unpredictable, but strong execution and a solid backlog provide confidence for future performance [6][14] - Management noted that while the commercial aftermarket growth may moderate, they expect continued above-market growth in the aerospace and electronics segment [15][19] Other Important Information - The company is in a net cash position and expects leverage to remain below its targeted range after the PSI transaction [22] - Tariff impacts are anticipated to be offset through pricing and productivity measures [22][76] - The company is focused on maintaining its margin profile despite potential headwinds from tariffs [76] Q&A Session Summary Question: Can you discuss the areas of strength in the Aerospace and Electronics business? - Management noted broad-based strength across both commercial and military sectors, with significant orders in air defense and communication platforms for future years [33][34] Question: What is driving the expected drop in A and E margins in the second half? - Management indicated a mix shift towards commercial OEM and challenging comparisons in the aftermarket, leading to a cautious outlook on margins [36][39] Question: How is the GTF program performing in the aftermarket? - The GTF aftermarket revenues are growing at around 15% this year, with expectations of 30% growth next year, although it currently represents less than 5% of commercial aftermarket sales [40][41] Question: Can you provide insights on the cadence of PFT orders and market trends? - Management reported stable market conditions with some softness in the chemical sector, while areas like cryogenics and wastewater are experiencing growth [46][48] Question: What is the expected impact of the R&D tax changes? - Management anticipates a modest improvement in free cash flow due to R&D capitalization and accelerated depreciation, but nothing significant [60] Question: How does the company plan to improve margins in the PSI acquisition? - Management expressed confidence in achieving significant margin improvements through operational efficiencies and leveraging existing strengths in the acquired businesses [83][85] Question: What is the outlook for the nuclear segment post-PSI acquisition? - The company is well-positioned to capitalize on replacement and new nuclear plant restarts, with strong market opportunities in radiation sensing [113][114]

Financial Data and Key Metrics Changes - Adjusted EPS for Q1 2025 was $1.39, reflecting a 7.5% core sales growth driven by Aerospace and Electronics and Process Flow Technologies [5][28] - Core orders increased by 16% in the quarter, primarily due to strength in Aerospace and Electronics [5][28] - Adjusted operating profit rose by 18%, supported by volumes, solid net pricing, and productivity [28] Business Line Data and Key Metrics Changes - Aerospace and Electronics segment sales reached $249 million, a 10% increase, with a record backlog of $960 million, up 21% year-over-year [29][30] - Total aftermarket sales in Aerospace and Electronics increased by 20%, with commercial aftermarket sales up 19% and military aftermarket up 24% [29] - Process Flow Technologies delivered sales of $309 million, up 9%, with core sales growth of 5% and a 5% contribution from recent acquisitions [30][31] Market Data and Key Metrics Changes - The Aerospace market remains strong, with Boeing ramping up production and solid procurement spending in defense [16][30] - Core sales growth for Aerospace and Electronics is anticipated to be mid to high single digits for the year, leveraging a 35% to 40% growth rate [17][30] - Process Flow Technologies is positioned to outgrow markets across cycles, focusing on higher growth end markets such as chemicals and pharmaceuticals [20][21] Company Strategy and Development Direction - The company aims to continue driving above-market growth through both organic means and acquisitions, with a strong balance sheet and $1.5 billion in M&A capacity [10][23] - The strategic focus includes investing in technology and new product development while maintaining operational excellence [21][27] - The company is actively pursuing new business opportunities and has a robust pipeline of potential acquisitions across various segments [24][108] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging stronger from current economic challenges, reaffirming the full-year adjusted EPS outlook of $5.3 to $5.6 [6][27] - The company is prepared to adapt to changes in the economic environment, including inflationary pressures and supply chain dynamics [6][15] - Management highlighted the importance of maintaining a flexible and accountable operational structure to navigate uncertainties [15][27] Other Important Information - The company has not seen a slowdown in M&A activity despite macroeconomic challenges, indicating a strong pipeline of potential deals [24][87] - Recent leadership conferences focused on reinforcing best practices and driving growth initiatives across the organization [25][26] - The company expects to manage through potential demand fluctuations without losing sight of long-term goals [21][27] Q&A Session Summary Question: Can you clarify the updated guidance and the contribution of price to sales? - Management expects about 3% overall price contribution, more heavily weighted to Process Flow Technologies [38] Question: Are there any notable items in the defense package that could drive growth? - Management sees broad exposure across defense platforms and anticipates strong demand in munitions and aircraft [44][45] Question: What is the growth split between volume and price in Aerospace and Electronics? - The growth split was roughly 50/50 between volume and price [51] Question: Are there any concerns about supply chain disruptions affecting project deliveries? - Management does not foresee significant disruptions, although some lead time extensions may occur [78] Question: How is the company managing tariff impacts on costs? - The estimated tariff impact is around $60 million for the year, which the company expects to mitigate substantially [95][96] Question: What is the outlook for the chemical market within Process Flow Technologies? - The company anticipates some project activity in the Americas to shift to the right, with softening demand in Europe [98]

Financial Performance - Q1 2025 - Sales increased by 9.3% from $510.2 million in Q1 2024 to $557.6 million in Q1 2025[8] - Operating profit increased by 24.4% from $81.3 million in Q1 2024 to $101.1 million in Q1 2025[8] - Earnings per share from continuing operations increased by 31.4% from $1.02 in Q1 2024 to $1.34 in Q1 2025[8] - Adjusted EBITDA increased by 15.4% from $100.4 million in Q1 2024 to $115.9 million in Q1 2025[8] Segment Performance - Aerospace & Electronics sales increased by 10.2% from $225.9 million in Q1 2024 to $248.9 million in Q1 2025[10] - Aerospace & Electronics backlog increased by 21.3% from $791.8 million in Q1 2024 to $960.1 million in Q1 2025[10] - Process Flow Technologies sales increased by 8.6% from $284.3 million in Q1 2024 to $308.7 million in Q1 2025[12] 2025 Guidance - The company expects revenue between $2.23 billion and $2.27 billion for FY 2025[19] - The company anticipates adjusted segment operating profit between $500 million and $515 million for FY 2025[19] - The company projects core sales growth in the range of 4-6% for FY 2025[21]

Financial Data and Key Metrics Changes - Adjusted EPS for the first quarter of 2025 was $1.39, reflecting a 7.5% core sales growth driven by Aerospace and Electronics and Process Flow Technologies [6][27] - Core orders increased by 16% in the quarter, primarily due to strength in Aerospace and Electronics [6][27] - Adjusted operating profit rose by 18%, supported by volumes, solid net pricing, and productivity [27] Business Line Data and Key Metrics Changes - Aerospace and Electronics segment sales reached $249 million, a 10% increase, with a record backlog of $960 million, up 21% year-over-year [28][29] - Total aftermarket sales in Aerospace and Electronics increased by 20%, with commercial aftermarket sales up 19% and military aftermarket up 24% [28] - Process Flow Technologies delivered sales of $309 million, up 9%, with core sales growth of 5% and a 5% contribution from recent acquisitions [29] Market Data and Key Metrics Changes - The Aerospace market remains strong, with Boeing ramping up production and solid procurement spending in defense [16][27] - Core sales growth for Aerospace and Electronics is anticipated to be mid to high single digits for the year, leveraging a 35% to 40% margin [17] - In the Process Flow Technologies segment, notable wins included a $5.7 million project for a Saudi Arabian mining company [21] Company Strategy and Development Direction - The company aims to continue growing through adversity, focusing on strategic execution and innovation [6][10] - There is a strong emphasis on maintaining a robust balance sheet with over $1.5 billion in M&A capacity, indicating ongoing acquisition activity [22][23] - The company is committed to long-term core sales growth of 4% to 6% through cycles, supported by solid aftermarket and operating leverage [26] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in emerging stronger from current economic dislocations, despite uncertainties in the macroeconomic environment [7][8] - The company reaffirmed its full-year 2025 adjusted EPS outlook in the range of $5.3 to $5.6, reflecting current economic conditions [7][8] - Management highlighted the importance of adapting to changes in demand and maintaining focus on long-term goals [20][26] Other Important Information - The company has a robust pipeline of potential acquisitions and has not seen any slowdown in M&A activity [22][92] - Management noted that supply chain disruptions have stabilized since last year, with no significant changes expected [80] - The company is actively engaged in new product development and technology roadmaps to support growth initiatives [25][26] Q&A Session Summary Question: Can you provide clarity on updated guidance and the contribution of price to sales? - Management expects about 3% overall price contribution, more heavily weighted to Process Flow Technologies [37] Question: What is the growth split between volume and price in Aerospace and Electronics? - The growth was roughly 50% from volume and 50% from price [50] Question: Are there any major commercial OE long-term agreements that repriced this quarter? - No major repricing occurred this quarter [53] Question: How is the company managing supply chain risks? - Supply chain disruptions have returned to normal rates, with no significant changes expected [80] Question: What is the outlook for the chemical market within Process Flow Technologies? - The company anticipates some project activity in the Americas to shift to the right, with softening demand in Europe [102]