Core Viewpoint - The industrial sector is positioned as a strong investment opportunity in 2026, particularly as tech stocks face volatility. Companies like Air Products, Ecolab, and Linde are highlighted for their robust performance and growth potential amidst steady industrial demand [1]. Company Summaries Air Products and Chemicals (APD) - Air Products reported Q1 revenue of $3.10 billion and adjusted EPS of $3.16, exceeding estimates of $3.04, with a year-over-year earnings growth of 10% [1]. - The company secured contracts with NASA exceeding $140 million and is advancing low-emission ammonia projects, showcasing its leadership in hydrogen and carbon capture technology [1]. - Management's guidance for fiscal 2026 indicates adjusted EPS of $12.85-$13.15, reflecting confidence in project execution [1]. Ecolab (ECL) - Ecolab achieved record fiscal 2025 sales of $16 billion, with a 15% growth in Q4 adjusted EPS [1]. - The company serves critical functions in water treatment and hygiene across 170+ countries, contributing to 3% organic sales growth and a 140 basis points increase in operating margin to 18.5% in Q4 [1]. - Ecolab's digital transformation initiatives are expected to yield $325 million in annualized savings by 2027, with high-growth segments like Ecolab Digital growing 24% [1]. Linde (LIN) - Linde generated fiscal 2025 sales of $34.0 billion and an adjusted operating profit of $10.1 billion, achieving a 29.5% operating margin [1]. - The company maintains a $10.0 billion project backlog, indicating strong future growth visibility [1]. - Linde returned $7.4 billion to shareholders in 2025 and is investing in hydrogen infrastructure and carbon capture solutions, positioning itself favorably for energy transition trends [1]. Industrial Sector Performance Summary - The industrial sector has shown steady growth, with companies like Air Products, Ecolab, and Linde demonstrating operational excellence and consistent cash generation from essential products [2]. - These companies have pricing power and return capital consistently, making them attractive investments in a market characterized by non-discretionary industrial demand [2].

Core Viewpoint - Birchtech Corp. is actively participating in major water and wastewater industry conferences to promote its innovative water treatment solutions and establish its presence in the water remediation sector [1][5][6]. Conference Participation - Birchtech will exhibit at the WaterPro Conference from September 15-17, 2025, in New Orleans, Louisiana, at Booth 528 [2]. - The company will also participate in the WEF Technical Exhibition & Conference (WEFTEC 2025) from September 27 to October 1, 2025, in Chicago, Illinois, at Booth 3353 [3]. Product and Service Promotion - At these conferences, Birchtech's staff will promote the Design Center's Analytical Services, which help utilities assess contaminant levels and determine effective water treatment solutions [4]. - The company emphasizes its media-agnostic approach, allowing it to provide tailored solutions based on operational needs, contaminant types, and regulatory requirements [4]. Market Engagement - CEO Richard MacPherson highlighted the importance of these conferences for connecting with potable water utilities, engineering firms, and service providers [5][6]. - WEFTEC is noted as the world's leading water quality conference, attracting over 20,000 water professionals and potential customers [6]. Company Overview - Birchtech Corp. specializes in activated carbon and water treatment technologies, focusing on sustainable solutions for air and water purification [7]. - The company is recognized for its patented SEA sorbent technologies aimed at capturing mercury emissions and is developing innovative water purification technologies targeting forever chemicals like PFAS and PFOS [7].

Financial Data and Key Metrics Changes - Total sales grew 6.4% year over year to $1.37 billion, with core sales growth of 4.8% driven by broad-based volume gains across both segments [21][22] - Adjusted earnings per share increased 9.4% year over year to $0.93, exceeding guidance due to better-than-expected sales volumes [14][23] - Free cash flow generation was strong at $323 million, an increase of $83 million year over year, reflecting effective cash management [30][31] Business Line Data and Key Metrics Changes - Water Quality segment sales reached $825 million, up 6.2% year over year, with core sales growth of 5% driven by strong demand for water analytics and treatment solutions [24][26] - PQI segment sales grew 6.8% year over year to $546 million, with core sales growth of 4.6% supported by recurring revenue and equipment shipments [27][29] Market Data and Key Metrics Changes - Core sales growth in Western Europe was 6.3%, led by double-digit growth in water quality, while North America saw core sales growth of 5.6% [14][16] - High growth markets experienced over 6% core sales growth year over year, with notable performance in Latin America and India [20] Company Strategy and Development Direction - The company raised its full-year adjusted earnings per share guidance to a range of $3.72 to $3.80, reflecting stable demand and positive macroeconomic conditions [10][32] - The capital allocation strategy remains focused on acquisitions, with a commitment to invest in emerging technology-oriented businesses [11][31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating a dynamic macroeconomic environment, citing strong secular growth drivers in water quality and essential goods [36][37] - The company anticipates continued strong performance in the second half of the year, supported by robust demand and effective execution of its business model [36][58] Other Important Information - The company announced a €20 million commitment to invest in Emerald Technology Ventures Global Water Fund II, enhancing its innovation and technology development efforts [11] - Adjusted operating profit margin for the quarter was 23.7%, with expectations for margin expansion in the second half of the year [22][33] Q&A Session Summary Question: Can you provide more details on core water quality growth by region? - Management indicated that their water quality business is resilient to fluctuations in government funding, driven by secular trends such as water reuse and sustainability goals [44][45] Question: What is the impact of tariffs and pricing on PQI margins? - Management explained that margin compression was due to acquisitions, timing of pricing actions, and investments, with expectations for gradual improvement in the second half of the year [48][51] Question: How is the company positioned in the UK water utility market? - Management expressed confidence in capitalizing on opportunities in the UK, leveraging direct sales to customers to identify and act on local opportunities [105][106]

Financial Data and Key Metrics Changes - Total sales grew 6.9% year over year to over $1.3 billion, with core sales growth at 7.8% driven by broad-based volume gains across both segments [25][26] - Adjusted operating profit margin expanded 50 basis points year over year to 25%, an all-time high, with adjusted earnings per share growing 13% year over year to $0.95 [11][27] - Free cash flow increased by 39% year over year to $142 million, primarily driven by growth in earnings [32] Business Line Data and Key Metrics Changes - Water Quality segment sales increased 6% year over year to $794 million, with core sales growth of 7.4% driven by strong demand for water treatment solutions [28][29] - PQI segment sales grew 8.3% year over year to $538 million, with core sales growth also at 8.3%, led by volume growth of 6.7% and price increases contributing 1.6% [30][31] Market Data and Key Metrics Changes - Sales growth in Western Europe was robust at nearly 11%, with double-digit growth in both segments [13] - North America saw sales growth of approximately 8%, with high single-digit growth in both segments, particularly in water quality [16][17] Company Strategy and Development Direction - The company is actively deploying countermeasures to mitigate changes in the global trade and tariff landscape, including strategic pricing roadmaps and shifts in manufacturing footprint [9][19] - The recent acquisition of AquaFetus for $20 million is expected to enhance the company's UV treatment portfolio and expand its ability to serve European customers [12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating the dynamic macroeconomic environment, citing the essential nature of their products and the durability of their business model [8][38] - The company reaffirmed its full-year 2025 adjusted EPS guidance of $3.6 to $3.7 per share, with expectations of low to mid-single-digit core sales growth [34][36] Other Important Information - The company has a strong financial position with gross debt of $2.6 billion and cash on hand exceeding $1.2 billion, resulting in a net leverage of 1.1 times [33] - The company completed its second CEO Kaizen week, focusing on continuous improvement and operational excellence [22][23] Q&A Session Summary Question: Can you provide more color on the sequencing of tariff mitigation? - Management indicated confidence in mitigating tariffs, with gross exposure estimated at 3.5% of sales, and emphasized ongoing optimization efforts [44][45] Question: Have you seen any changes in customer confidence based on demand indicators? - Management reported strong demand remains for the PQI business, with no indications of softening in order patterns [47][48] Question: Can you discuss price elasticity in relation to consumables versus equipment? - Management noted a surgical approach to pricing, with 80% of sales tied to essential goods, indicating a sticky relationship with customers [55][57] Question: How do you view the impact of tariffs on competitive positioning? - Management expressed optimism about leveraging their asset-light manufacturing model to gain market share amid market dislocations [91][92] Question: What are the implications of the recent EPA announcement regarding PFAS? - Management remains excited about opportunities in PFAS analysis and treatment, with no immediate impact on forecasts [60]