Financial Data and Key Metrics Changes - Adjusted EBITDA rose to $1.24 billion, reflecting a 2% year-over-year increase, with consolidated adjusted EBITDA margins increasing by 20 basis points to 17.7% [4][23] - Revenue growth was 1%, with GAAP diluted earnings per share at $0.61 and adjusted earnings per share at $0.68 [23] - Free cash flow generated was $699 million, with an expected full-year free cash flow conversion of 45% to 50% [23][24] Business Line Data and Key Metrics Changes - Industrial & Energy Technology (IET) orders totaled $4.1 billion, with a record backlog of $32.1 billion, reflecting a 3% sequential growth [5][28] - IET revenue increased by 15% year-over-year to $3.4 billion, with segment EBITDA rising 20% to $635 million [28] - Oilfield Services and Equipment (OFSE) revenue was $3.6 billion, up 1% sequentially, with EBITDA of $671 million and margins declining by 30 basis points to 18.5% [29] Market Data and Key Metrics Changes - LNG demand increased by 6% this year, driven by strong storage injection in Europe, with record LNG contracting activity [15] - The macro environment remains resilient despite geopolitical challenges, with AI-driven investments contributing significantly to GDP growth [12][13] - Natural gas demand is expected to grow by over 20% by 2040, with global LNG increasing by at least 75% [14][17] Company Strategy and Development Direction - The company is focused on achieving a 20% adjusted EBITDA margin by 2028, with a target of at least $40 billion in IET orders over the next three years [35][36] - The acquisition of Chart Industries is seen as a significant milestone, expected to enhance technology offerings and create commercial synergies [21][27] - The company aims to leverage its technology portfolio to capitalize on growth in LNG, power generation, and new energy markets [20][38] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to navigate market volatility and maintain strong operational performance [20][36] - The outlook for 2026 suggests subdued activity in upstream spending, but long-term growth is anticipated, especially in offshore and international markets [14][34] - The company expects continued growth in gas infrastructure and power generation, with strong visibility into future orders [5][6] Other Important Information - The company returned $227 million to shareholders through dividends during the quarter [24] - A comprehensive evaluation of capital allocation and operations is underway in connection with the Chart Industries acquisition [21][63] - The integration planning for Chart Industries is focused on harmonizing systems and processes to realize anticipated cost synergies [27][70] Q&A Session Summary Question: Opportunities in Power Generation - Management highlighted strong demand across various power generation solutions, including distributed power and geothermal opportunities, with significant orders booked [42][43][44] Question: Financial Targets in Horizon 2 - The company is confident in achieving $40 billion in IET orders by 2028, supported by strong project visibility and a versatile technology portfolio [49][50][51] Question: Evaluation of Capital Allocation - The ongoing evaluation aims to enhance shareholder value and explore additional value creation opportunities, reflecting a disciplined approach to capital allocation [61][63] Question: Integration of Chart Industries - Integration planning is underway, focusing on systems integration and capturing cost synergies, with a strong alignment in company cultures [67][69]