Financial Data and Key Metrics Changes - The company reported a 14% increase in adjusted EPS to $9.61 for the quarter and a 16% increase for the full year, exceeding the raised guidance from the third quarter [5][6] - Organic growth reached 5% in the fourth quarter, marking the highest level of the year, with bookings up 10% in the quarter and 6% for the full year [4][12] - Segment EBITDA margins improved by 60 basis points to 24.8% in the quarter, driven by volume leverage and productivity initiatives [4] Business Line Data and Key Metrics Changes - Engineered Products revenue declined due to lower volumes in vehicle services, but margins improved by over 200 basis points due to cost management and product mix [7] - Clean Energy & Fueling segment saw a 4% organic growth, led by strong shipments in clean energy components and North American retail fueling software [7][8] - Imaging and ID segment grew 1% organically, maintaining a strong EBITDA margin of 28% despite some margin pressure from foreign currency translation [8] - Pumps and Process Solutions experienced an 11% organic growth, driven by demand in biopharma components and digital controls for energy infrastructure [9] Market Data and Key Metrics Changes - Climate and Sustainability Technologies posted a 9% organic growth, with significant demand for CO2 refrigeration systems and record shipments in the U.S. [9] - The company reported a book-to-bill ratio of 1.21 in the Climate and Sustainability Technologies segment, indicating a strong outlook for 2026 [9] Company Strategy and Development Direction - The company is focused on organic investment as the highest priority for capital spending, with a significant increase in capital spending in 2025 [12][14] - The acquisition strategy remains strong, with $700 million deployed across four strategic acquisitions in high-growth markets [14] - The company aims for double-digit EPS growth in 2026, supported by solid demand trends and a strong order book [6][19] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for 2026, with no individual end market presenting a material headwind based on current visibility [6][19] - The company anticipates solid volume leverage and carryover benefits from prior restructuring efforts, contributing to a positive setup for 2026 [19] - Management noted that the demand for single-use biopharma components remains strong, driven by production growth and a shift to single-use manufacturing methods [17] Other Important Information - Free cash flow in the fourth quarter was $487 million, representing 23% of revenue, with a full-year free cash flow result of 14% of revenue, an increase of nearly $200 million over the prior year [11] - The company is in a strong position to deploy capital for growth opportunities while maintaining balance sheet flexibility [6][14] Q&A Session Summary Question: What are the expectations for price cost management this year? - Management expects to manage raw material costs with a price increase of 1.5-2% embedded in the guidance [27][28] Question: Has anything changed in the economic outlook recently? - Management remains positive, citing strong organic growth and good backlog performance [30] Question: What is the expected operating leverage for the Clean Energy & Fueling segment? - Management indicated that the segment will benefit from prior restructuring, with margin enhancements expected to be back-end loaded [35] Question: What is the growth outlook for the retail fueling CapEx cycle? - Management noted that the growth is primarily a North American phenomenon, with increasing CapEx in retail fueling expected to drive returns [61] Question: How does the company view potential divestitures? - Management is currently comfortable with the portfolio but remains open to considering divestitures if they align with shareholder interests [121] Question: What is the expected contribution of backlog to 2026 revenues? - Management indicated that the backlog is strong, particularly in refrigeration, and will be a key factor in revenue performance [134]

Financial Data and Key Metrics Changes - The fourth quarter results showed organic growth of 5%, the highest level of the year, with revenue performance driven by strong trends in secular growth markets and improving retail conditions [3] - Adjusted EPS for the quarter was $9.61, up 14%, and 16% for the full year, indicating solid operational results [4] - Free cash flow in the fourth quarter was $487 million, or 23% of revenue, with full-year free cash flow at 14% of revenue, an increase of nearly $200 million over the prior year [10] Business Line Data and Key Metrics Changes - Engineered Products revenue declined due to lower volumes in vehicle services, but margins improved over 200 basis points due to cost management and product mix [5] - Clean Energy & Fueling saw a 4% organic growth driven by strong shipments and new orders, although margins were slightly down due to lower vehicle wash solutions [6] - Climate and Sustainability Technologies posted a 9% organic growth, with margins up 250 basis points, indicating strong demand for CO2 refrigeration systems [8] Market Data and Key Metrics Changes - Bookings were up 10% in the fourth quarter, with all five segments showing growth, indicating broad-based demand strength for 2026 [11] - The North American retail fueling market is expected to enter a new CapEx cycle, with strong demand for clean energy components [14] - Demand for brazed plate heat exchangers in North America is robust, particularly for liquid cooling applications in data centers [16] Company Strategy and Development Direction - The company is focused on organic investment as the highest priority for capital spending, with a significant increase in capital spending in 2025 [12] - The acquisition strategy remains strong, with $700 million deployed across four strategic acquisitions in high-growth markets [12] - The company aims for double-digit EPS growth in 2026, supported by solid demand trends and a strong order book [5][18] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for 2026, with no individual end market presenting a material headwind based on current visibility [4] - The company anticipates solid volume leverage on incremental revenue and carryover benefits from prior restructuring efforts [18] - Management remains optimistic about the overall economic environment, with strong bookings momentum and good production performance expected [25] Other Important Information - The company initiated a $500 million accelerated share repurchase program, highlighting its disciplined approach to capital deployment [4] - The balance sheet remains flexible, allowing the company to respond dynamically to market conditions [5] Q&A Session Summary Question: What are the expectations for price cost management this year? - Management expects to manage raw material costs with a price increase embedded in the guidance of 1.5-2% [22][24] Question: Has anything changed in the economic outlook recently? - Management has not seen any changes that would alter their positive view on the economy and business [25] Question: What is the expected operating leverage for DCEF and DCST segments? - Management indicated that DCEF will benefit from prior restructuring, while DCST saw a margin jump in Q4 and expects further improvements [30] Question: What is the growth outlook for 2026? - Management is guiding for 4% growth, which is considered conservative based on current visibility and backlog [36] Question: How is the retail fueling CapEx cycle developing? - The retail fueling market is experiencing a resurgence in North America, with expectations for accelerating demand [54] Question: What is the outlook for the natural gas power generation side? - The company supplies components for both large and small turbines, with significant follow-on CapEx expected in the back half of 2026 [87] Question: Are there any plans for divestitures? - Currently, the company is comfortable with its portfolio but remains open to considering divestitures if they align with shareholder interests [113]

Financial Data and Key Metrics Changes - Revenue increased by 5% in Q3 2025, driven by broad-based shipment growth and strong performance from recent acquisitions [3] - Adjusted EPS rose by 15% in the quarter and 17% year-to-date, with full-year adjusted EPS guidance increased from $9.35 to a range of $9.50 to $9.60 [4] - Consolidated EBITDA margin reached a record 26.1%, up 170 basis points year-over-year [3][4] Business Line Data and Key Metrics Changes - Engineered Products revenue declined due to lower volumes in vehicle services, but segment profit improved due to cost management and product mix [5] - Clean Energy & Fueling revenue grew 5% organically, supported by strong shipments in clean energy components and recent acquisition of SiteIQ [5] - Imaging & Identification revenue increased by 3% organically, with solid growth in marking and coding business [6] - Pumps & Process Solutions revenue rose by 6% organically, driven by growth in biopharma components and thermal connectors [6] - Climate & Sustainability Technologies experienced a 30% year-to-date decline, but showed signs of recovery with record volumes in CO2 refrigeration systems [7][8] Market Data and Key Metrics Changes - Shipments of door cases are at a 20-year low due to tariff uncertainties, but booking rates have accelerated, indicating potential volume improvement [8] - The company is benefiting from investments in power generation and electricity infrastructure, particularly in data center buildouts [10][11] Company Strategy and Development Direction - The company is focused on high ROI capital projects and targeted footprint optimization to drive productivity and capacity expansions [4] - Continued investment in high-growth markets, which now represent about 20% of the portfolio, is a priority for the company [13] - The company aims to leverage its balance sheet strength for value-creating acquisitions and capital return strategies [4][18] Management's Comments on Operating Environment and Future Outlook - Management expressed a constructive outlook for the remainder of 2025 and into 2026, despite macroeconomic uncertainties [4] - The company anticipates a recovery in certain capital goods end markets and expects strong performance in Clean Energy & Fueling and Imaging & Identification segments [16][17] - Management noted that no business within the portfolio is forecasting revenue declines for the next year, indicating a positive setup for 2026 [31][49] Other Important Information - Year-to-date free cash flow was $631 million, representing 11% of revenue, with expectations for further increases in Q4 [9] - The company is actively pursuing bolt-on acquisitions and has a healthy deal pipeline, with expectations to close on a couple of deals in the next 12 months [44] Q&A Session Summary Question: Improving bookings cadence and organic growth expectations for 2026 - Management acknowledged a year-over-year reduction in refrigeration impacting organic growth but noted that booking rates have accelerated, which should positively impact revenue in 2026 [23] Question: Thoughts on potential stock buyback - Management indicated that they believe their shares are undervalued and are likely to consider stock buybacks [26] Question: Update on Socora acquisition and deal pipeline - The Socora acquisition is outperforming expectations, and management has an interesting pipeline for potential acquisitions in the next 12 months [44] Question: Order to revenue conversion concerns - Management noted that while orders have been strong, conversion to revenue has been impacted by specific business challenges, but they expect better conversion moving forward [47][48] Question: Growth potential of specific segments - Management highlighted optimism for growth in fueling and clean energy components, with expectations for continued growth in refrigeration and biopharma segments [51]