Financial Data and Key Metrics Changes - Organic sales decreased by 0.9%, with positive pricing of 1% offset by a volume decline of 1.9% [4][10] - Adjusted EBITDA for the quarter was $171 million, up 3% year-on-year, with an EBITDA margin of 19.1%, an increase of 110 basis points year-on-year [4][11] - Adjusted earnings per share (EPS) was $1.26, reflecting a 12% increase compared to the third quarter of 2024 [12] - Revenue was down 2.8% year-on-year, with currency having a positive impact of 1% [10] Business Line Data and Key Metrics Changes - HHC (Health and Hygiene) organic revenue decreased by 3.1%, with EBITDA up 2% year-on-year and EBITDA margin at 16.9% [5][6] - Engineering Adhesives (EA) organic revenue increased by 2.2%, with EBITDA up 14% and EBITDA margin expanding to 23.3% [6][7] - Building Adhesive Solutions (BAS) organic sales decreased by 1%, with EBITDA increasing by 3% to $41 million and EBITDA margin at 17.7% [7][8] Market Data and Key Metrics Changes - Americas organic revenue was up 1% year-on-year, driven by EA's high single-digit increase [8] - EIMEA (Europe, India, Middle East, and Africa) organic revenue declined by 2% year-on-year, with EA flat and HHC and BAS down modestly [8] - Asia-Pacific organic revenue decreased by 4% year-on-year, primarily due to significant volume decline in solar [8] Company Strategy and Development Direction - The company is focused on enhancing its portfolio, driving efficiencies, and repositioning for growth and margin expansion [3][16] - Management remains cautious due to a globally subdued economic backdrop and expects volume growth to remain elusive [3][9] - The company aims for a greater than 20% EBITDA margin target and is tightening its guidance for the year [3][13] Management's Comments on Operating Environment and Future Outlook - Management noted a widespread slowing economic environment, with customer demand appearing uneven and less predictable [9] - The company anticipates a slow growth environment with continued economic challenges [9][15] - Management emphasized the importance of operational efficiency and customer service amid economic volatility [15][16] Other Important Information - The company is preparing for an Investor Day on October 20, where updates on strategic plans and M&A strategy will be provided [17] - Adjusted gross profit margin was 32.3%, up 190 basis points year-on-year, driven by pricing and raw material cost actions [10] Q&A Session Summary Question: Details behind the reduction in cash flow guidance - Management explained that the increase in working capital, specifically inventory, is driving the decrease in cash flow expectations due to ongoing footprint consolidation actions [19][20] Question: Performance in Engineering Adhesives - Management highlighted strong performance in EA, particularly in automotive and electronics, with a return to double-digit organic growth in electronics [24][25] Question: HHC volume decline versus EA performance - Management noted that EA is performing stronger than the market, while HHC volumes reflect a decline in consumer demand across major regions [32] Question: Outlook for solar business - Management discussed the challenges in the solar market, particularly with silicon sealants, and indicated a focus on higher-margin product lines [34][35] Question: Pricing trends for segments in Q4 - Management indicated a supportive pricing environment across all GBUs, with expectations for continued price increases in Q4 [60]