Financial Data and Key Metrics Changes - EPS for the third quarter was $4.21, representing a 7% increase year-over-year [4] - Operating cash flow grew by 8% to $2.9 billion, with free cash flow generation of $1.7 billion [4][14] - Sales reached $8.6 billion, up 3% from the previous year and 1% sequentially, with underlying sales increasing by 2% year-over-year [12][14] - The backlog remains strong at $10 billion, securing long-term EPS growth [4] Business Line Data and Key Metrics Changes - Consumer-related end markets, accounting for about one-third of global sales, showed stable growth, particularly in healthcare and food and beverage [5] - Electronics, representing 9% of sales, was the fastest-growing end market with 6% growth driven by high-end chip production [6] - Industrial end markets, which make up about two-thirds of sales, faced challenges, with chemicals and energy up 1% due to inflationary price increases, but base volumes were down [8][9] Market Data and Key Metrics Changes - The U.S. market showed resilience, particularly in metals and manufacturing, while Europe continued to face demand challenges [7][9] - In APAC, manufacturing volumes remained steady, with China leveling off and India showing strong growth [9] - The overall industrial activity in Europe remains soft, with no immediate catalysts for improvement [50] Company Strategy and Development Direction - The company is focused on maintaining a recession-resistant model, emphasizing productivity and efficiency while targeting high-quality growth [10] - There is a strong emphasis on capital management, with $4.2 billion invested in the business and $5.3 billion returned to shareholders [14] - The company anticipates continued growth in electronics and is exploring opportunities in steel and metals due to recent tariffs [23][44] Management's Comments on Operating Environment and Future Outlook - Management expressed caution regarding the outlook, noting the difficulty in identifying near-term catalysts for industrial activity improvement [15] - The company has navigated an industrial recession for over two years and is prepared to take mitigating actions if conditions worsen [16] - There is confidence in the competitiveness of customers and the potential for a rebound in the chemical sector over time [72] Other Important Information - The company expects fourth-quarter EPS guidance to be between $4.10 and $4.20, reflecting a 3% to 6% growth [15] - The tax rate for the fourth quarter is anticipated to be higher than the current run rate due to timing effects [15] Q&A Session Summary Question: Regarding the backlog and new projects - The backlog is at a record level of $7 billion, and the company is on track to maintain this by year-end despite project startups [19] Question: Opportunities in the U.S. steel market - The company is seeing potential expansion opportunities in the U.S. steel and metals sector due to tariffs [23] Question: Outlook for 2026 - The company will provide guidance for next year in February, but the backlog is expected to support continued EPS growth [28] Question: Pricing trends and macroeconomic conditions - Pricing has remained stable year-over-year, with helium and rare gases being a drag on overall pricing [33][34] Question: Impact of European capacity closures - The company does not expect significant impacts from European capacity rationalization due to strong contractual protections [78] Question: Growth in the electronics sector - The semiconductor industry is expected to grow at a rate of 9% to 11% over the next five years, with increased gas intensity in advanced nodes [93][95]