Core Viewpoint - Emerson reported strong third-quarter results for fiscal 2025, showcasing growth in net sales, earnings, and cash flow, while also providing an optimistic outlook for the remainder of the fiscal year [1][2][3]. Financial Performance - Net Sales for Q3 2025 reached $4,553 million, a 4% increase from Q3 2024's $4,380 million [1]. - Pretax Earnings increased significantly to $734 million in Q3 2025 from $455 million in Q3 2024, reflecting a margin improvement from 10.4% to 16.1% [1][36]. - GAAP Earnings Per Share (EPS) rose by 72% to $1.03 from $0.60 year-over-year [1][36]. - Adjusted EPS increased by 6% to $1.52 from $1.43 in the same period [1][36]. - Operating Cash Flow remained stable at approximately $1,062 million, while Free Cash Flow slightly decreased to $970 million from $975 million [1][36]. Outlook for Fiscal Year 2025 - The company anticipates net and underlying sales growth of approximately 3.5% for the full fiscal year [3][4]. - GAAP EPS is projected to be around $4.08, with adjusted EPS expected to be approximately $6.00, both reflecting an increase from previous guidance [3][4]. - Operating Cash Flow and Free Cash Flow expectations have been raised to approximately $3.6 billion and $3.2 billion, respectively [3][4]. Management Commentary - Emerson's President and CEO, Lal Karsanbhai, emphasized the company's strong performance and operational resilience, highlighting advancements in industrial software capabilities and the adoption of digital solutions [2]. Segment Performance - The following segments showed growth in Q3 2025: - Final Control: Sales increased by 7% [19]. - Measurement & Analytical: Sales grew by 3% [19]. - Intelligent Devices: Sales rose by 4% [19]. - However, the Safety & Productivity segment experienced a decline of 1% [19]. Geographic Sales Growth - Sales growth varied by region in Q3 2025: - Americas: 7% growth - Europe: 7% decline - Asia, Middle East & Africa: 2% growth [20].

Hayward (HAYW) FY Conference Summary Company Overview - Hayward is a leading pool equipment OEM specializing in pumps, filters, heaters, and control systems, with approximately 75% of sales tied to the aftermarket [2][4] - The company generates about 95% of its net sales from the pool industry, primarily residential, with 5% from commercial and industrial flow control [4] - North America accounts for about 85% of revenue, while Europe and the rest of the world contribute 15% [5] Financial Performance - Hayward's revenue is just over $1 billion, with a five-year CAGR of 7.5% [5][6] - Gross margins exceeded 50% last year, with an adjusted EBITDA CAGR of 10% over the same period [6] - The company has seen a shift towards 85% of net sales derived from existing pools due to a decline in new construction [7] Market Dynamics - The pool market is characterized by a large installed base, with 5.5 million in-ground pools in the U.S. and nearly 25 million globally, which continues to grow annually [10][11] - The average age of pools is approximately 23 years, indicating a strong aftermarket opportunity for upgrades and modernization [11] - Hayward has pricing power, as equipment costs represent only 10-15% of overall construction costs, allowing for annual price increases to offset inflation [12][13] Strategic Focus - The company emphasizes organic growth, margin expansion, and disciplined capital deployment as key strategic themes [15] - Gross margins have expanded by 600 basis points over the last five years, reaching 50.5% by the end of 2024 [16] - Hayward's strategy includes investing in innovation and technology, with a focus on smart connected products and automation [9][15] Product Innovation - Hayward is focusing on digital conversion, chemical conversion, and energy conversion as pivotal areas for growth [27] - The company has launched several new products, including a heat pump with cooling capabilities, an automation app for consumers, and a new lighting platform [32][33] - The OmniX system allows for retrofitting existing equipment with automation controls, creating a significant revenue opportunity [35] Distribution and Market Strategy - Approximately 75% of Hayward's products are sold through distribution channels, with the remaining 25% through direct sales [37] - The company has initiated "Hayward hubs" in high-volume markets to provide training and support for trade professionals [38] Competitive Advantages - Hayward's competitive advantages include strong brand recognition, a large installed base, and a commitment to sustainability with energy-efficient products [41] - The company has a proven ability to maintain gross margins over 50% due to innovative products and effective supply chain management [42][44] Conclusion - Hayward is well-positioned in the pool equipment industry, leveraging its strong aftermarket model, pricing power, and innovative product offerings to drive growth and shareholder value [41]