Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.22 for Q3 2025, reflecting a decline in occupancy and rental income [16][18][20] - Same Property NOI decreased by 6% and 3.1% on a cash basis for the quarter, primarily driven by lower occupancy [21][23] - Occupancy at the end of the quarter was 90.6%, down 20 basis points from the prior quarter, with an apples-to-apples decline of 110 basis points [18][20] Business Line Data and Key Metrics Changes - Leasing volume for the quarter was solid at 1.2 million square feet, consistent with the five-quarter average [17] - Rental rate growth for lease renewals was 15.2% and 6.1% on a cash basis, at the high end of the guidance range [18] - 53% of leases are to investment-grade or large-cap tenants, with an average lease term of 9.5 years for the top 20 tenants [14][23] Market Data and Key Metrics Changes - The company noted a challenging life science supply and demand dynamic, impacting occupancy and rental income [16][20] - The mega campus platform, representing 77% of annual rental revenue, outperformed overall market occupancy by 18% in the three largest markets [20] - Institutional demand remains muted due to NIH issues and reimbursement challenges [15][39] Company Strategy and Development Direction - The company plans to reduce non-income-producing assets from 20% to 10-15% of gross assets [13] - Transitioning from substantial development to a build-to-suit model on mega campuses, with a focus on preserving capital [13][30] - The company aims to significantly reduce its land bank and is evaluating land dispositions to meet capital needs [25][29] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for the FDA to resume operations and for earlier-stage venture-backed companies to commit to space [38][39] - The company is navigating a difficult environment with high costs of capital and a government shutdown impacting the industry [9][11] - Despite challenges, management sees early signs of recovery in the biotech sector and remains optimistic about future demand [11][12] Other Important Information - The company recognized impairments of $323.9 million during the quarter, primarily from a Long Island City redevelopment property [28] - The guidance for FFO per share diluted as adjusted for 2025 was reduced by $0.25 to a midpoint of $9.01 per share [31] - The company has the longest average remaining debt maturity among S&P 500 REITs at 11.6 years, with $4.2 billion in liquidity [27] Q&A Session Summary Question: Update on occupancy expectations - Management indicated that 617,000 square feet of potential occupancy improvements are expected to deliver around May 1, 2026 [37] Question: Factors that could improve demand - Key factors include the reopening of the FDA, commitments from venture-backed companies, and a revitalization of the public biotech sector [38][39] Question: Development focus going forward - The company will focus more on build-to-suit leases and reducing the development pipeline, aiming for a land bank reduction from 20% to 10-15% [44][50] Question: Dividend policy and comfort level - The board will evaluate the dividend in the fourth quarter, considering retained cash flows and capital needs for the upcoming year [51][53] Question: Tenant activity and leasing dynamics - Demand varies by submarket, with some sectors showing strong interest while others remain muted due to high costs of capital and government shutdowns [78][79]

Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.22 for Q3 2025, with occupancy down 1.1% for the quarter, driven by challenging life science supply and demand dynamics [17][18] - Same Property NOI was down 6% and 3.1% on a cash basis for the quarter, primarily due to lower occupancy [22][24] - Adjusted EBITDA margins remained strong at 71%, consistent with the five-year average [24] Business Line Data and Key Metrics Changes - Leasing volume for the quarter was solid at 1.2 million square feet, in line with the five-quarter average, with 82% of leasing activity coming from existing tenant relationships [18] - Rental rate growth for lease renewals was solid at 15.2% and 6.1% on a cash basis, at the high end of the guidance range for the year [19] - Occupancy at the end of the quarter was 90.6%, down 20 basis points from the prior quarter [19][20] Market Data and Key Metrics Changes - The mega campus platform, representing 77% of annual rental revenue, outperformed overall market occupancy in the three largest markets by 18% [21] - The outlook for year-end occupancy was reduced by 90 basis points to a range of 90%-91.6% [21] - The company is facing a challenging environment with institutional demand still stuck due to NIH issues and reimbursement of indirect costs [16] Company Strategy and Development Direction - The company intends to transition from substantial development to a build-to-suit on mega campus-only development model, aiming to reduce non-income-producing assets from 20% to 10-15% [14][31] - The focus will be on reducing construction spend and preserving capital, with a significant component of land dispositions expected to help achieve strategic objectives [26][31] - The company plans to continue to meet market demands for tenants and dominate its space [16] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for the FDA to resume operations and for earlier stage venture-backed companies to commit to space to improve demand [39] - The company is navigating a difficult environment with a focus on maintaining a strong balance sheet and liquidity [12][28] - Management expressed optimism about the potential for recovery in the biotech sector, despite current challenges [11][27] Other Important Information - The company recognized impairments of real estate totaling $323.9 million during the quarter, primarily from an investment in Long Island City [29] - The guidance for FFO per share diluted as adjusted for 2025 was reduced by $0.25 to a midpoint of $9.01 per share, primarily due to lower investment gains and same property performance [32] Q&A Session Summary Question: Update on occupancy expectations - Management provided an update indicating about 617,000 square feet of potential occupancy benefits expected to deliver around May 1 of next year [38] Question: Factors that could improve demand - Key factors include the reopening of the FDA, commitments from earlier stage venture-backed companies, and a revitalization of the public biotech sector [39] Question: Development process and focus - The focus will shift more towards build-to-suit leases, with a significant reduction in the land bank expected over the coming years [45][51] Question: Dividend policy and comfort level - The board will evaluate future dividend levels based on various factors, including retained cash flows and capital needs for the upcoming year [52][54] Question: Tenant activity and leasing dynamics - Demand exists across various sectors, but the recovery in the XBI has not yet translated into increased leasing activity due to high costs of capital and a government shutdown [80]

Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.22 for Q3 2025, reflecting a decline due to lower occupancy and rental income adjustments [15][16] - Occupancy at the end of the quarter was 90.6%, down 20 basis points from the prior quarter, with a decline of 110 basis points on an apples-to-apples basis [18][19] - Same Property NOI decreased by 6% and 3.1% on a cash basis for the quarter, primarily driven by lower occupancy [20] Business Line Data and Key Metrics Changes - Leasing volume for the quarter was solid at 1.2 million square feet, consistent with the five-quarter average, including a significant build-to-suit lease [16][12] - Rental rate growth for lease renewals was strong at 15.2% and 6.1% on a cash basis, at the high end of guidance [17] - The company aims to reduce non-income-producing assets from 20% to 10-15% of gross assets [11] Market Data and Key Metrics Changes - The life science industry is experiencing a challenging supply and demand dynamic, with institutional demand hindered by NIH funding issues [13][16] - The company’s mega campus platform, representing 77% of annual rental revenue, outperformed overall market occupancy by 18% in key markets [18] Company Strategy and Development Direction - The company is transitioning from substantial development to a build-to-suit model, focusing on preserving capital and reducing construction spending [11][29] - The strategy includes evaluating land dispositions to reduce the size of the land bank and capitalized interest [23][28] - The company remains committed to its core life science real estate focus, leveraging its strong tenant base and high-quality assets [31] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for the FDA to resume operations and for earlier-stage venture-backed companies to commit to space to improve demand [36] - The company anticipates a challenging environment for the biotech sector, with a five-year bear market impacting public and private companies [24] - Future guidance for FFO per share diluted as adjusted for 2025 was reduced by $0.25 to a midpoint of $9.01, reflecting lower investment gains and occupancy [30] Other Important Information - The company recognized impairments of real estate totaling $323.9 million during the quarter, primarily from a redevelopment property in Long Island City [26] - The company has a strong balance sheet with over $4 billion in liquidity and the longest average remaining debt maturity among S&P 500 REITs at 11.6 years [10][25] Q&A Session Summary Question: Update on occupancy expectations - The company provided an update indicating potential occupancy benefits from 617,000 square feet of space expected to deliver around May 1, 2026 [35] Question: Factors for increased optimism in biotech market - Key factors include the reopening of the FDA, commitments from earlier-stage companies, and a resurgence in the public biotech sector [36] Question: Details on equity-like capital sources - The majority of capital for next year's plan will come from asset sales, with a focus on land and non-stabilized assets [38] Question: Development process and focus on build-to-suit leases - The company plans to focus more on build-to-suit leases and reduce the development pipeline, aiming to decrease non-income-producing assets [41][47] Question: Dividend policy and comfort level for payout ratio - The board will evaluate future dividend levels based on retained cash flows and capital needs for the upcoming year [49][51] Question: Tenant activity and leasing dynamics - Demand varies by submarket, with a mix of lab and tech tenants, but overall activity remains flat despite market improvements [66][70]

Financial Data and Key Metrics Changes - FFO per share diluted as adjusted was $2.22 for Q3 2025, reflecting a decline in occupancy and rental income [21][22][24] - Occupancy at the end of the quarter was 90.6%, down 20 basis points from the prior quarter, with a decline of 110 basis points on an apples-to-apples basis [24][25] - Same property NOI was down 63.1% on a cash basis for the quarter, primarily driven by lower occupancy [25][26] Business Line Data and Key Metrics Changes - Leasing volume for the quarter remained solid at 1,200,000 square feet, consistent with the five-quarter average [22] - Rental rate growth for lease renewals was 15.2% and 6.1% on a cash basis, at the high end of the guidance range [23] - 53% of leases are to investment-grade or large-cap tenants, with an average lease term of 9.5 years for the top 20 tenants [17] Market Data and Key Metrics Changes - The life science industry is facing a challenging supply and demand dynamic, with institutional demand still impacted by NIH issues [19][21] - The company noted that its mega campus platform, representing 77% of annual rental revenue, outperformed overall market occupancy by 18% [24] - The biotech sector is experiencing a bear market, which has lasted five years, but signs of recovery are beginning to emerge [13][29] Company Strategy and Development Direction - The company plans to transition from substantial development to a build-to-suit model, aiming to reduce non-income producing assets from 20% to 10-15% [15][16] - The focus will remain on mega campuses, which are expected to capture premium economics as demand improves [37] - The company intends to continue evaluating its development pipeline and may pause or curtail projects based on market conditions [28][34] Management's Comments on Operating Environment and Future Outlook - Management highlighted the need for the FDA to resume operations and for venture-backed companies to commit to space to improve demand [45] - The company anticipates a challenging environment for 2026, with various factors impacting earnings, including capitalized interest and realized gains [36] - Management expressed confidence in the intrinsic value of its mega campus assets, which are significantly above current trading prices [36][37] Other Important Information - The company recognized impairments of real estate totaling $323.9 million during the quarter, primarily related to a Long Island City redevelopment property [31] - The guidance for FFO per share diluted as adjusted for 2025 was reduced by $0.25 to a midpoint of $9.01 per share [35] - The company expects to provide detailed guidance for 2026 at its Investor Day on December 3 [36] Q&A Session Summary Question: Update on occupancy expectations - Management provided an update indicating potential annual rental revenue of $46 million from 617,000 square feet of assets expected to deliver around May 1 [44] Question: Factors that could improve optimism in the biotech market - Key factors include the reopening of the FDA, commitments from venture-backed companies, and a resurgence in the public biotech sector [45] Question: Details on capital sources for next year's plan - The majority of capital for next year's plan will come from asset sales, with a significant portion from land and non-stabilized assets [48] Question: Development focus going forward - The company will focus more on build-to-suit projects and aims to reduce its land bank from 20% to 10-15% over the coming years [60] Question: Dividend policy and payout ratio - The Board will evaluate future dividend levels based on various factors, including retained cash flows and capital needs for the next year [64]

Financial Data and Key Metrics Changes - FFO for the quarter was $1.08 per diluted share, including approximately $0.03 per share of one-time items [22] - Cash same property NOI growth for the third quarter was 60 basis points, with real estate tax appeals contributing to 150 basis points of growth [22] - Occupancy improved modestly, ending at 81%, up from 80.8% at the end of the second quarter [22] Business Line Data and Key Metrics Changes - Over 550,000 square feet of new and renewal leases were signed during the quarter, marking the highest third quarter of leasing activity in six years [5] - SOMA assets executed over 95,000 square feet of new and renewal leases this quarter, with tour activity up 170% year over year [6][8] - In life sciences, 84,000 square feet of leases were signed to date with established biotech companies, indicating strong demand [9][10] Market Data and Key Metrics Changes - Office demand in San Francisco reached a post-pandemic high of nearly 9 million square feet, up from approximately 7 million square feet last quarter [5] - The XBI index is up more than 20% year to date, reflecting strong performance from biotech companies [9] - Over 2 million square feet of sublease space has been taken off the market in San Francisco, indicating a sustained recovery [39] Company Strategy and Development Direction - The company is focusing on capturing growing demand across markets and ensuring assets are well-positioned to outperform [8] - Capital allocation strategy includes recycling capital with a focus on long-term cash flow and value creation [13] - The company is actively engaged in the Flower Mart project, exploring various development scenarios to maximize value [15] Management's Comments on Operating Environment and Future Outlook - Management noted improving workplace norms and a resurgence in leasing activity, particularly in the West Coast office and life science markets [4] - The company anticipates modest improvement in occupancy in the fourth quarter due to accelerated rent commencement activity [23] - Management expressed confidence in the leasing momentum continuing into 2026, driven by strong demand from various sectors [44] Other Important Information - The company completed the sale of a four-building campus in Silicon Valley for gross proceeds of $365 million and acquired Maple Plaza for $205 million [13] - The company raised its 2025 FFO outlook to a range of $4.18 to $4.24 per share, reflecting updated expectations [25] Q&A Session Summary Question: Thoughts on retention for expirations and occupancy commencement - Management indicated a remaining expiration pool in 2026 of about 970,000 square feet, with limited opportunities for additional renewals [31][32] Question: Competitive positioning in San Francisco - Management noted a shift in tenant preferences towards impactful space and highlighted strong demand from AI companies [36][38] Question: Update on KOP2 leasing activity - Management confirmed strong demand across various sectors, with a focus on biotech and life sciences [42][45] Question: Insights on Noy House lease and rent contribution - Management clarified that the Noy House lease would impact occupancy and emphasized efforts to minimize downtime [51][52] Question: KOP lease economics and tenant improvements - Management stated that rental rates are in line with original underwriting, though tenant improvement costs have increased [56][64] Question: Considerations for fourth quarter guidance - Management highlighted a difficult comp from the previous year due to recognized restoration fee income [67]

Financial Data and Key Metrics Changes - Ecolab reported consistent double-digit earnings growth despite macroeconomic uncertainties, with sales growth improving due to accelerating pricing, which increased to 3% from 2% in the previous quarter, while volumes rose by 1% [4][6] - The organic operating income margin reached a record 18.7%, reflecting a 110 basis points increase, with expectations for the full year 2025 operating income margin to reach 18% [15][16] - Adjusted diluted EPS midpoint for 2025 was increased to $7.53, with a range of $7.48 to $7.58 [15][16] Business Line Data and Key Metrics Changes - Pest Elimination achieved 6% organic sales growth, driven by the successful rollout of the Pest Intelligence platform [9][10] - Life Sciences sales growth improved to 6%, with double-digit growth in biopharma and pharma, despite capacity constraints in water purification [10][11] - Global High-Tech experienced rapid growth with sales up 25%, bolstered by the pending acquisition of Aveva Electronics, which is expected to double the size of this business [12][25] - Ecolab Digital maintained strong momentum with 25% sales growth, now having annualized sales of over $380 million [13] Market Data and Key Metrics Changes - The Institutional and Specialty segments saw organic sales growth of 4%, outpacing market trends, driven by the value delivered to customers [8][9] - The Food and Beverage segment also reported 4% organic sales growth, benefiting from the integration of hygiene and water solutions [9][76] - Basic Industries and Paper, which represent 15% of global sales, declined by 3%, impacting overall volume [5][14] Company Strategy and Development Direction - Ecolab's strategy focuses on breakthrough innovation and the One Ecolab enterprise growth strategy, which aims to unlock significant cross-sale opportunities across its customer base, representing a $65 billion growth opportunity [8][14] - The company is committed to returning its underperforming businesses, Basic Industries and Paper, back to growth by leveraging innovation and expanding customer relationships [14][30] - Ecolab aims to achieve a 20% operating income margin by 2027, with expectations for steady annual margin expansion [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to deliver sustained strong performance in Q4 and beyond, despite ongoing market challenges [17] - The company anticipates that the growth engines will become a more significant part of its business mix, potentially increasing from 20% to 30-40% in the coming years [50] - Management highlighted the importance of maintaining high customer retention rates and delivering significant value to customers through innovative solutions [32][70] Other Important Information - Ecolab ranked number nine on the Fortune AIQ 50 list, recognizing its preparedness for the age of AI [13] - The company is focused on leveraging digital technologies to enhance operational efficiency and customer experience [46] Q&A Session Summary Question: Update on Global High-Tech business and Aveva acquisition - Management discussed the growth potential in data centers and microelectronics, emphasizing the need for more power and ultra-pure water, which Ecolab specializes in [20][22][25] Question: Basic Industries and Paper returning to growth - Management noted that consolidation in the industry has impacted growth but expressed optimism about returning to a growth trajectory in the near future [28][30] Question: Pricing dynamics and tariff surcharge - Management indicated that pricing is becoming easier to implement due to the strong value proposition, with a target of maintaining pricing around 2-3% [32][54] Question: Water business top line and margin performance - Management reported 4% top line growth and 15% operating income growth in the water segment, excluding underperforming businesses [36] Question: Pest Elimination customer acquisition costs - Management stated that customer acquisition costs have not increased and that competition remains healthy, benefiting customers [84]

Five Star Bancorp (NasdaqGS:FSBC) Q3 2025 Earnings Call October 28, 2025 01:00 PM ET Company ParticipantsJames Beckwith - President and CEODavid Feaster - DirectorWoody Lay - VPHeather Luck - CFOConference Call ParticipantsAndrew Terrell - Managing Director and Research AnalystGary Tenner - Managing Director and Senior Research AnalystOperatorWelcome to the Five Star Bancorp third quarter earnings webcast. Please note this is a closed conference call, and you are encouraged to listen via the webcast. After ...

Financial Data and Key Metrics Changes - Ecolab reported consistent double-digit earnings growth despite macroeconomic uncertainties, with sales growth improving due to accelerating pricing, which increased to 3% from 2% in the previous quarter, while volumes rose by 1% [4][6] - The organic operating income margin reached a record 18.7%, reflecting a 110 basis points increase, with expectations for a full-year margin of 18% for 2025 [15][16] - Adjusted diluted EPS midpoint for 2025 was increased to $7.53, with a range of $7.48-$7.58 [15] Business Line Data and Key Metrics Changes - Pest Elimination achieved 6% organic sales growth, driven by the successful rollout of the Pest Intelligence platform [9][10] - Life Sciences sales growth improved to 6%, with double-digit growth in biopharma and personal care, although capacity constraints in water purification were noted [10][11] - Global High-Tech sales surged by 25%, with the pending acquisition of AVEVA expected to double the size of this business to nearly $900 million [12][25] - Ecolab Digital maintained strong momentum with 25% sales growth, now having annualized sales of over $380 million [13] Market Data and Key Metrics Changes - The Institutional and Specialty segments saw organic sales growth of 4%, outpacing market trends, driven by the value delivered to customers through One Ecolab [8][9] - The Food and Beverage segment also experienced a 4% organic sales increase, attributed to the integration of hygiene and water solutions [9][76] - Basic Industries and Paper, representing 15% of global sales, declined by 3%, impacting overall volume [5][14] Company Strategy and Development Direction - Ecolab's strategy focuses on breakthrough innovation and the One Ecolab enterprise growth strategy, which aims to unlock significant cross-sale opportunities across its customer base, representing a $65 billion growth opportunity [8][14] - The company is committed to returning its underperforming businesses, Basic Industries and Paper, to growth by leveraging innovation and expanding customer relationships [14][30] - Ecolab aims to achieve a 20% operating income margin by 2027, with expectations for steady annual margin expansion [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate macroeconomic challenges and deliver strong performance, with a focus on maintaining high retention rates and customer satisfaction [32][33] - The company anticipates continued growth in its core businesses, driven by strong secular tailwinds and the successful execution of its growth strategies [16][17] - Management highlighted the importance of leveraging digital technologies and AI to enhance operational efficiency and customer experience [13][46] Other Important Information - Ecolab ranked number nine on the Fortune AIQ 50 list, recognizing its preparedness for the age of AI [13] - The company is focused on sustainability, particularly in water usage and efficiency, which is critical for its high-tech and microelectronics customers [22][24] Q&A Session Summary Question: Update on Global High-Tech business and AVEVA acquisition - Management discussed the growth potential in data centers and microelectronics, noting that one data center opens every one to two weeks, with significant investments [20][21] - The acquisition of AVEVA is expected to enhance Ecolab's offerings in ultra-pure water solutions, positioning the company for double-digit growth in this segment [25] Question: Returning Basic Industries and Paper to growth - Management indicated that the consolidation in the paper industry is slowing, and they expect both businesses to return to growth in the next few quarters [29][30] Question: Pricing dynamics and tariff surcharge - Management noted that pricing is becoming easier to implement due to the strong value proposition, with a target of maintaining pricing around 2%-3% [32][53] Question: Water business top line and margin performance - Excluding Basic Industries and Paper, the water segment experienced 4% top line growth and 15% operating income growth [36] Question: Pest Elimination customer acquisition costs - Management stated that customer acquisition costs have not increased and that the company is successfully gaining large retail customers [84]

Kilroy Realty (NYSE:KRC) Q3 2025 Earnings Call October 28, 2025 01:00 PM ET Company ParticipantsSteve Sakwa - SMDBrendan Lynch - DirectorAnthony Paolone - Executive DirectorNick Yulico - MDDouglas Bettisworth - VP of Corporate FinanceOmotayo Okusanya - MDMichael Carroll - MDRob Paratte - EVP, Chief Leasing OfficerJohn Kim - MDCaitlin Burrows - VPJeffrey Kuehling - EVP, CFO and TreasurerEliott Trencher - EVP, CIOAngela Aman - CEOConference Call ParticipantsUpal Rana - Senior Equity Research Analyst US REITsJ ...

Financial Data and Key Metrics Changes - Ecolab reported consistent double-digit earnings growth despite macroeconomic uncertainties, with sales growth improving to 4% organic sales growth and mid-teens organic operating income growth [3][4][15] - Pricing accelerated to 3% this quarter, up from 2% in the previous quarter, driven by trade surcharges and value pricing [5][15] - The organic operating income margin reached a record 18.7%, with expectations to expand to 20% by 2027 [15][16] Business Line Data and Key Metrics Changes - Pest Elimination achieved 6% organic sales growth, supported by the successful rollout of the Pest Intelligence platform [9][10] - Life Sciences sales growth improved to 6%, driven by double-digit growth in biopharma and pharma, despite capacity constraints [10][11] - Global High-Tech experienced rapid growth with sales up 25%, bolstered by the pending acquisition of Aveva Electronics [11][12] Market Data and Key Metrics Changes - Institutional and Specialty businesses grew organically by 4%, outperforming market trends [8][9] - Food and Beverage segment also saw 4% organic sales growth, driven by the integration of hygiene and water solutions [9][70] - The underperforming businesses, Basic Industries and Paper, declined by 3%, impacting overall volume [4][14] Company Strategy and Development Direction - Ecolab's strategy focuses on breakthrough innovation and the One Ecolab enterprise growth strategy, which aims to unlock significant cross-sale opportunities [4][8] - The company is targeting a $65 billion growth opportunity, with $3.5 billion from its largest customers [8] - Ecolab is committed to returning its underperforming businesses to growth by 2026 through innovation and resource reallocation [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving double-digit EPS growth in 2026, despite ongoing market challenges [16][17] - The company anticipates continued strong performance in Q4 and beyond, supported by robust free cash flow and a strong balance sheet [17] - Management highlighted the importance of leveraging digital technologies and AI to enhance customer experience and operational efficiency [12][45] Other Important Information - Ecolab ranked number nine on the Fortune AIQ 50 list, recognizing its preparedness for the age of AI [12] - The company is focused on maintaining high retention rates and delivering significant value to customers through its pricing strategy [32] Q&A Session Summary Question: Update on Global High-Tech business and Aveva acquisition - Management discussed the growth potential in data centers and microelectronics, emphasizing the need for more power and water in these industries [19][22][23] Question: Basic Industries and Paper returning to growth - Management noted that consolidation in the industry has impacted growth but expressed optimism for recovery in the coming quarters [26][28][30] Question: Pricing dynamics and tariff surcharge impact - Management indicated that pricing is becoming easier to implement due to the strong value proposition, with a target of maintaining pricing around 2-3% [32][50][52] Question: Life Sciences segment performance and capacity additions - Management highlighted the accelerating growth trajectory in Life Sciences, with new capacities expected to come online in mid-2026 [54][56][58] Question: Update on One Ecolab initiative - Management confirmed progress with the top 35 customers and plans to expand efforts to additional customers in 2026 [40][42][66] Question: Pest Elimination business and customer acquisition costs - Management reported that customer acquisition costs have decreased due to successful technology offerings and strong demand [76][78][80]