Financial Data and Key Metrics Changes - The company reported third quarter revenue of $189 million, a year-over-year increase of 22%, with 18% organic growth excluding acquisitions and currency impacts [18][19] - Adjusted gross profit was $101 million, up 28% year-over-year, with an adjusted gross margin of 53.3%, reflecting a 260 basis point increase year-over-year [20][21] - Adjusted net income was $26 million, a $2 million year-over-year increase, with adjusted fully diluted earnings per share for the third quarter at $0.46 compared to $0.43 in the same period of 2024 [23][24] Business Line Data and Key Metrics Changes - Process Analytics led growth with over 50% growth, while Filtration and Capital Equipment both grew over 20% [6][7] - Consumable demand remained robust with greater than 20% growth, and total company orders grew over 20% year-over-year [7][8] - Filtration revenue grew over 20%, with significant contributions from Flat Sheet Cassettes and Fluid Management [13][14] Market Data and Key Metrics Changes - Biopharma revenues grew over 20% year-over-year, with emerging biotech revenue at its highest level in nearly three years [9][10] - Asia Pacific saw approximately 50% growth, while the Americas grew 20% and EMEA was up low double digits [9][20] - China revenue returned to growth in Q3, although orders were slightly down, with expectations for recovery in 2026 [20][35] Company Strategy and Development Direction - The company is focusing on digitization as a key strategic pillar, with plans to develop additional PAT-enabled solutions and leverage digital twins for process optimization [10][11] - A Strategic Account Strategy initiative has been successful, covering 20 large pharma and CDMO accounts, leading to increased cross-selling opportunities [12] - The company is working towards dual manufacturing for most of its portfolio by the end of next year, with a focus on capital equipment opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the recovery of small biotech and the overall health of the ecosystem, with strong order growth across all franchises [6][35] - The company is raising the midpoint of its organic growth guidance for 2025, reflecting broad strength across franchises and geographies [9][25] - Management highlighted the importance of continued investment in infrastructure and technology to support future growth while balancing cost efficiency [29][30] Other Important Information - The company expects adjusted effective tax rate for the year to be between 21%-22%, about 100 basis points lower than previous guidance [23][29] - Cash position at the end of Q3 was $749 million, up $40 million sequentially, driven by strong operating cash flow performance [24][29] Q&A Session Summary Question: Can you talk about the cadence of order momentum across the quarter? - Management noted that orders grew more than 20% in Q3, marking the sixth consecutive quarter of sequential order growth, with strong performance across all franchises [32][33] Question: Can you help reconcile the sales guidance increase versus narrowing EBIT margin? - Management indicated satisfaction with margin performance, highlighting that operating income was up about 20%, and noted the impact of one-time operating expenses and ongoing investments in infrastructure [38][39][41] Question: What do you make of customer conversations regarding onshoring activity? - Management expressed optimism about onshoring projects representing significant opportunities, with expectations for first orders in the second half of 2026 [46][47] Question: Can you clarify the revenue growth guidance for filtration? - Management confirmed that filtration revenue growth is expected at the lower end of the range, influenced by a tougher comparison in Q4 and specific project deliveries [50][51] Question: How should we think about the consumable pull-through for ATF product line? - Management refrained from providing specific revenue contributions but emphasized strong performance across various product lines, including ATF and analytics [71][74] Question: Can you provide an update on mid-sized CDMOs and protein launches? - Management reported strong growth from large-scale CDMOs, while protein revenue grew double digits, driven by chromatography resins and custom projects [82][83]