SPX FLOW (FLOW) 8 May 212021 Q1 Earnings call transcript

Good day and thank you for standing by. Welcome to the SPX FLOW Q1 2021 Earnings Conference Call [Operator Instructions] I would like to hand the conference over to your speaker for today, Mr. Scott Gaffner. Please go ahead.

Thank you, Francis. to first joining quarter thanks discussion for and our of XXXX morning, everyone us for a Good financial results. issued three X, we performance morning, a detailing release This our for the months XXXX. April ending news financial The spxflow.com, during accessed webcast used to today's website replay a along will news website available can at later on with our release, our presentation be the on and be also be today.

Officer. President Michael, President and and and today Chief me Vice Financial are Marc Joining Jaime CEO; Easley,

remarks, the open questions. prepared for their Following we'll call

Before our contain light. a we our and are brief current based this we elements reminder begin, change that of that forward-looking on ask we Marc. of over have that measures elements reconciliations business view and are Those to factors identified presentation and filings. you presented. markets. statements I'll view may are that With SEC subject recent in non-GAAP it our risk in provided them presentation, the to most that appendix today's that, adjusted In affect performance for all of our Principal turn

thank Appreciate at Scott. and morning, SPX everyone, exciting on for It's joining and us FLOW. good Thanks, the the time introduction, call. Great. you an

focused been through the strategic mission have Our solutions the and industrial We're health, innovative nutrition, improving never objectives process a provider and and sustainable in on world clearer. solutions markets.

This March, Our performance. financial three-year here. operational strategic guiding both supported has by are our in and four objectives, out our pillars goals Day laid term our which see focus we us Investor near foundational you at long-term towards

our results, paradigms and quarterly which in to evident intentionally create historical an operating We have results. point changed is our inflection

Industrial XX% gained operating Orders significantly projects. cycle as solid short improved basis organic systems of increase improved segments. with quarter, demand our priority. keeping supported continue work our Cap internal cost were lower markets First XXX lines quarter revenue effective management from improved a a Ex drove continues as by price combined recover to performance product impact to corporate by performance, evenly with pipeline a while was between selectivity to economic a segment our orders the momentum. building and margins The that project remained recovery, initiatives the better, recover, in of improved in our nearly an split lens, points, cost. positive programs, XX-XX from the undertaken of we've quality revenue expense significantly Operating and income through and higher

the our that our capital XX% and product first We capabilities R&D modernization more also priority disproportionately also with development. in increased investing to support growth quarter invest in in We are high aligned doubled markets. met and categories, plant than investment product by margin our in by our commitments to new high spending

using objective agreement quarter, Our our identified This strategic opportunities. targets UTG of an Philadelphia programmatic M&A both the Solutions. the is momentum of and M&A acquisition pipeline announced disciplined to with high with we priorities. We've resulted and last mixing returns of approach attractive process an acquire in building week a a Mixing definitive alignment to in

we return we dividend, revenue geographically, program. re-purchase our broad-based the to in economic to able first excess a Lastly, supporting the in-market The been I'm rate. pleased cash organic recovery and form of was in share our initiated along that quarter, of which continuation the we've that growth quarter the shareholders with first during experienced XX%

Coronavirus. in year were most growth revenue where the results significant the initial quarter outbreak China, of was anticipated, year XXXX the impacted over by As heavily first

provide mid of his orders EMEA. in remarks. a during year significant experienced America an revenues Jaime teens in it year North at assessment total and also EMEA, America, will growing acceleration and with we to mid-teens prepared North However, in low rates over

profitably. focus deployment customer on year, the execute of growth at on success our efforts. grow own teams highlighted Investor experience, provides of cross-functional these growth, strategy empowered we highlight and that how of and to first and the to to we create Day, are we and built an the where provides results outstanding want Throughout quarter framework As last our driving XX-XX clarity a profitable

During the a [Create] in of quarter, growth our a growth achieved also systems and in revenues our we which in business. with for health XX% built future consists and increase product a base nutrition XX% the lines, growth category,

to quality modest continue a look increases improved will highest Overall, for XXXX best industrial and cycle categories. were of in demand of priority drive momentum orders, to our We following XXXX, higher mix the at we sequentially and revenue. customers product over-serve points Taking low short to demand. orders see our in a with continue stable,

the to were to partnering continued and The systems following both notably commercial a normalized with during during team orders of we our quarter pipelines most did growth our experienced in in experienced EMEA. quarter, robust. Demand first health deliver we as outstanding solid project year. OE a level in excellent and order to Our intake customers China. improve down, in and an China strong more the quarter, business Sequential start nutrition fourth job the demand remains an

believe have short orders down through pandemic. The the we base a to levels shown to start we the resiliency of historical high sequential Our basis, builds versus grow can cycle at rates, while remain a strong throughout on slightly continue which course relatively from year and the XXXX.

the to we with higher cost Based off structure, now to At are we excellent profitable revenue quality The the the are our combined improvement mix single which economic progressing is us performance improve our revenue earnings mid end our our our believe organic at year gives grow XXXX. supports productivity plan, time, high a of raising look to and will prior forward. quarter, assumptions an drive in continued initiatives to confidence achieving rate outlook, year growth as Our XXXX. same range, digit during revenue a strategy on start. solid during full and revenue in of the growth improved

the review. year, laid of in validation the to turn And we out financial start the it Jaime and strategic that, to a great with over cover March. objectives I'll a So, to

with good everyone. morning, a of I'll begin first quarter. and Marc, the you, Thank recap

first to results was by our the increase by higher XX% the highlighted leverage choices. orders out-performance up our from systems higher health primarily million strategic strong and Organic in of and from first Our Organic quarter, and driven operating quarter including in notable meaningful $XX significant shippable improvements operational revenue start were are a quarter. nutrition, backlog XX%, business. up volumes

serving and was Importantly, and aided we structural XXX cost up mix short spread operating capital our streams, in at came broad-based cycle and on points, a Cap To through our customers, We our as profitable by sites. capacity support the manner. modernization commitment by in in also in to improvements and Ex quarter. leverage initiatives doubled following XX.X%, evenly plant investments expansion saw we nutrition growth our revenue key balanced were critical Those health, on income allocate our focused at are recovery between basis better

than our the the of also In dividend, R&D ever our by and first initiated talented of we in strategic earnings more investment We March, direction, XX%. increased team, our long-term sign our potential in quarterly company. belief a

stock of through also to re-purchase $XX We the program, our cash share in quarter. million return acquiring continue

look to align to SPX objectives, We FLOW, quarter. Team would and in anticipated Mixing our use of programmatic personally later Philadelphia our second cultures. brands, continue in January. close the of strategic I Solutions staff, the acquisition to businesses represent the our with M&A also innovative that targets to key Mixing meet process great welcome disciplined following identify I'd and financial forward to transaction closing our the UTG Both like talented criteria.

book growth short in the revenue industrial, X% cycle and total partially an down leverage, price previously was segments. broad-based increased of volume over the were the products. year Organic an elevated focus by notable Looking noted, driven capital timing segment organic result up by points with improvement impressive revenue, Most which This improving basis at was and business. was of cost. orders year XX% by to year year the level cycle XX.X%. mix we and that in our positive driven managing which driven turn shippable by greater of backlog on over margins, Beginning higher were in XXX short quarter, projects, offset from

generated and profitability. nutrition increases segment and to We revenue, significant on Moving in orders, health.

over China orders. America North and by higher orders driven with increased systems in XX%, meaningful strength Our

We recovery, short the expanded turn quarter, double digits, for low were strong our attributable along with growth business. on entering book with to cost demand basis product categories, experienced higher positive up execution, solid segment globe. margins volume price around the mix, and also improved which points. margin Organic by higher backlog the short up project observed elevated and XXX cycle XX%, shippable outcomes, was revenue Based cycle and

$XX line approximately QX. anticipate Looking quarter. organic should combined into and in to shippable add Currency year. momentum million year higher improvement second acquisitions volume continue, in anticipate by the over backlog, margin quarter, translation to X% revenue of we sequential the driven the by leverage top modest completed a driven We second

but we closing impact later on of a period. Lastly, quarter, the Philadelphia the anticipate in anticipate the financial Mixing announced in limited Solutions our acquisition results

reiterate product XX% Day. allocation Ex to our innovation now will that investments, fund and increasing organic increase first in doubling on amount recent greater R&D Turning Based I the a first achieved we in capital of this and the allocation. the some quarter broadly. objective growth. in framework, lines growth we're expect capital R&D most expecting Cap Investor We spend we our including outlined fully to of than by concentrated the the in more funding, thoughts

for beginning of with of our Group, to framework to of calls XXXX for capital through and revenue Our million forthcoming quarter $XXX acquiring from the M&A Philadelphia Mixing. million XXXX, UTG allocation Mixing first $XXX close incremental closing

to environmental I'd financial signing with has revenue, we with excess we last and to week's very a previously margins, for enhancement some return agreement growth, to The share profiles, Philadelphia doing Solutions. as our of starting and acquire transaction and forecasted greater through details supply Philadelphia objectives, and operational is growth like XX% will consistent cash have will gross re-purchases complementary innovative safer, stated attractive further North and regarding It dividend as chemical, aftermarket high announced petrochemical and Mixers and process needs, strategic room as through as a capabilities engineering I unique markets. than by mentioned. expect of strong the to businesses complimentary We with cash we help quality Mixing of our our well a so channels close on Lastly, in top evidenced end improvements, sales chain the healthier, initiatives. definitive with customers with of of shareholders, benefit Philadelphia to make sustainable. of bolster that leverage position world brands our product offering, transaction at process FLOW and Based provide from an solutions both The combine and and robust provider believe exposure Mixer's essential we the in more can will geographic lineup. footprint. products the two America. product scale, economies mixing capabilities, team, more key organic and

We for multiple will million purchase the cash times X.X purchase company hand. on price revenue. The of represents approximately an trailing attractive utilizing $XX

three our with will to closing to back ROIC exceed turn cash WACC expect We comments. I within call for some the years. over And Marc that,

Jaime. Thanks, Great.

clear our we've As process channel offering to and become provide that we a partners strengthened on customers, our employees. focus differentiated solutions, it's

And the food water. because So and innovative, company, manufacture solutions and We We We help I'm increase plant-based this improve help solutions. to customers sustainable making. to improve conserve identity. tagline them through the energy, quality. we reflects milk tagline our everything lower We our reduce save and it unveil in products. for waste, them and new clean personal costs, excited care from uptime, medicine help chose the world

to FLOW. engaged create all provides in and highly acting help want We a being the clarity Solutions disproportionately to we develop take process product In pride live also and and that that diverse communities how be We better in categories as in results everyone work, it to known and to in create we a in deployment with a more the and point our XX-XX framework investing embrace making are for solutions where thinking look making, culture. future, teamwork, created a we to want customers. and the at margin operating inflection growth aligned focus markets an grow has where closing, of and great we're want for innovation. QX we speaks of teams, work. in and belonging. high results. SPX as has profitably. collaboration We focus to the sense aggressively and and and begun to foundation place We our solutions stands The where for our on of higher provide We've our evidenced to

We're to generation cycles. those business, accelerating margins expanding resources our the economic conditions. to capital plans accelerate positioned CapEx sheet increased our through experience. return deploying to strength new well highest areas are R&D irrespective capabilities With targeted Our of through while balance create generate productivity. a to and highest and to the cash are Organic market products refocusing returning digital to the modernize our of allocation our technologies demand, will to to better roll technology improve in be facilities and investing development, customer additional customer through meet out and we efficiency

both have proud momentum strategic targets created that, Additionally, acquisitions your accelerating earning And high our We'll of to agreement team closing due we'll a we'll shift for it and accomplished. announcement using the has cash, have following for a us our and culture, that attractive expect disciplined two quality allows which a And returns offense, growth with a to returns a performance. programmatic the will third continue of what lead we actions operating I'm transaction. a approach higher now building excess a of revenue, to to when with alignment of M&A Together, to shareholders. and process foundation stream priorities. make an is we open more strong identify to M&A and our our to continue questions. objective recent sustainable of definitive up

your Nathan from Instructions] And Stifel. first [Operator comes Jones from question

revenue in the first we're I perspective you adjusting probably second a mid-single bunch do quarter, backdrop. the growth close an some of with headwinds to comps creates the order it days guide, but day a improving the digits, about mean, the in for there, the second economic XX Just give first quarter. to suggest is organic organic the close same an even in XX in to looks rates I relatively question fourth at know from against at back flat that half like revenue days, have quarter guidance easy

back wondering just be I'm full there bit the constructive confidence So that's what on is out for revenue holding year? of the seeing the you're it to a little kind more maybe

I'll any Yes, could thoughts. you start, Jaime, and sure, add additional maybe Nathan.

Nathan, see we a mentioned indicators, you As all encouraging economic market the agree, with we in backdrop. good are as

So from market a of performance there. continuation a perspective be should

by $XX into going as we We have a QX, indicated strong backlog up million.

won't were this compared What first XXXX couple strong I margin year. a $XX year, $XX of this as a points of that And I a that QX would was QX of QX half QX million to about view we there's the really So at year, the this that of year lower mention, efforts, of year. think $XX more to we XX-XX pruning there's our part in revenue important. about versus look where in year, business last in million last we're million are that be XXXX versus revenue, as year. last

let's say, our short to neighborhood now, this high a Maybe in nature is three million, The business gone couple $XX year. that's pretty other up XX% that's really cycle our million QX at margin outlook QX. So not in we're QX of and being points. the QX $XX somewhere of the steep a through cycle rate and quality, has through past in over quarters, in short

three see choppy In the been we anticipate look end, flattening up the still COVID we're back remains market. our and that's out, a with existing part in of No we some uncertainty, there still we line a waiting the the a to factors and the So the spend positive, the expect we the may to as line quarters. as question business, look business, come CapEx of customers, the had but of into and flatten which additionally, this that big some of that just, would come some steep would up. over of across I we could concerns, and shapes CapEx at say, still backdrop from that bit the the the cycle has strong, economic how are a extenuating gone we've recovery back, globe how slope short bit of out still but real marks as last industrial

laid at few next we back like as the a three over just feel out to growth single strategy longterm operating year, on taken is look we've digits, March, close ago weeks we prudent. margin our we've emphasis Annual or with As the in saying, I the a early been and the focus half would of really March. years. very rate, in low-to-mid get mid-teens second

a that that So achieving a finished to we're longterm Just start on good very objective. quarter, off to pathway right? great

good a this everyone productivity in the not perform SG&A level. go really also year half too, at want as a year to margin. that looking the mid-teens that program, the within help I through we're we're achieve, support only margin to in to of in spot that part of long-term think I improvement rest we high will remind second our

margins we half move year, the well. We're second I the of started progressing improve we've do happy to as expect to really the are we as where I'm year. also. with continue through So

I see XXXX. as think we'll in growth continue rest through to of move profitable the we improvement overall

Maybe on from a then me costs. price follow-up

things. think through or both lot are a guys raw there, first managing neutral of the There's You anticipate inflation back for how segments All being the price call I those full all the quarter. that Does positive out on cost Do right? materials, challenges obviously cost you in kinds of positive of year? moment? guys you price noted, at to

that's we our pick team saw process back looking very And good and back goes in to around even know really team. a starting inflation We've this when that. to up We revamped of start continuously. just XXXX. some our I is price at that question I'll that's I'm good Yes, proud a got prominent there. cost

at tiger make team. We're that in see a, inflation and the month, then a along have month rapidly management, adjustments shaping product end we're consists from and I in we finance operations We are with regular We looking things a trailing throughout basis how perspective. and a They it our front of very up. with come our now team the of when place them that at not on and it. together really Jaime each of team, review

be on the and any go stay through exit So as and XXXX. ahead we we year, anticipate we'll I impacts positive expect curve inflationary as the of modestly

And of from the Barclays. next line Julian question from your Mitchell comes

on [Gavin] wondering, expectations, particularly of Backlog was of in half? for industrial what the the Julian, flat for I way. driving factors your It's into in was organically by you that sort was that QX. flat kind about and how talk can backlog back

just color points you providing Can reference you're what of provide little a on backlog?

it was by QX, organically driven flat think in industrial. I

of $XX we've provided a backlog as for QX, said assumptions thoughts. we've up is million. QX shippable Well, couple some in One, is that what

quarter, in So about improvements as you're to backlog thinking it's the the year-over-year. next understand important

our think over backlog, gate starting to a of convert backlog there the looking a way I position, you which quality year this and may of what relative be revenue as is backlog firmer to time. to now much better we'll by look at stats we total and But too. is figures, spot ago, in and

our the short mentioned a Marc now So of being few nature cycle. more times business

seeing here that's our as going are the have mix thinking That's in and on margin be factory sit of nicely, the line. those way absorb better, company you're absorption lines general, So improvement part go backlog of we that through above the convert and now. average kind product to about we're that quicker, margins

each revenue. revenues Echo XX% just within then about our The everything going of nature would cycle to our convert that about I the of that. Yes, in into Jaime short And bookings quarter. quarters add are backlog our we into business, of XX% mentioned.

backlog point, to lower mention the we So where into upticks now, would business projects see cycle in to you we've of our much our were is be the CapEx compared that I that mix we is markets also, swings that just That anticipate seen such being of industrial given dramatic slow a will percentage. still project the the in so then, before business case. the short more pandemic. our more industrial what again, going won't

is So building. our pipeline

world things log help but front encouraging on an so in That backlogs F&B Our to like are a FLOW larger we'll we're SPX backlog can systems is back forward, we the the project-based and rapidly building we sign. that's see going that not expect have business we've and in when based moving power where up seen had going industrial historically in. that projects, business energy coming

improvement, And you margins. thinking of on then for QX. way Recognize any for wondering in wondering about margin us was of performance year, in to of for what that be balance on could you're incremental into here sequential year? incremental but thinking margin update over outlook. terms are if I you the one maybe Pretty that another should margin got just if me what strong your incremental the there the changes

the our What absorption. the the as mentioned, I SG&A running, year, would year. XXXX profit through got on think point assumption Martin is to the that's short about half the you as going are But think there that about benefits reduction which in we've margins the framework, to a you that's too. provided level And is the course mixed that's operating that, margin we've have of some well going And in to program the in benefits going sequentially to that be year. of orders. cycle as consistent back of There's second benefits throughout way improving going provide to

half of that to hit this the of a half second just year, add And year. with So anticipating And in as progressing track reminder. majority what of SG&A that about for the we're a program, say on program, we're will program. the it's a roughly this million bit on $XX

of over the times. as in Marc's a of margins couple So assumption improvements year the very sequential is strong a off the mentioned operating QX, profit course

So really excited that. about

RBC And your next question Capital. comes Deane from from of the Dray line

talk and million three guys the been Deane M&A just Voigt and kind more we you Can far. expect so from of other over pretty well? Philadelphia in it were? looking is XXX you capacity filling This Tyler should what kind Or and you call here you've in at this looks of I years year areas the Dray. next know about sized, for active as for have UTG as pipeline in like are mixing

that robust, is mentioned preparing very remarks. in being programmatic. our pipeline as the So we We're very mention I'll

We and great how acquisitions in aligned few place have orchestrated opportunities, the a over importantly, last The pipeline, years. program around evaluate and Mlingo's our Vusa building process it the we that acquisitions to our strategy.

at in If us. we've mixing acquisitions the UTG that's and announced, you priority look big that just done solutions mixing Philadelphia with a for

Our implications to first strategy. how at we to and then economic just evaluate is aligned the screen acquisitions impacts obviously. our look And

acquisitions to aligned is So the help we us provide how move hit will to that as forward. strategy, customers that to goal we them serve and a our presence better stay look and at again

through So they opportunities progress we'll I'm themselves. the to really present pleased again, we're remains with work and as continue robust the funnel and making

projects, just terms still nutrition fulfilling selectivity passing PR slowly you then in fading any system in or those orders on large and of efforts away? And and guys those another, kind are guys' your of you of kind are health,

systems as just we projects. large, from away reminder, moved dry Well, really a dairy

participate those business profile so fit the really didn't in. that of wanted were And we to type that projects the of

on technologies been emphasis proposition. liquid really our has a our customers see processing. They really where value revolve high So around

the But in build a them that These very like for lot There's base. bring. our foods. projects So type those of content are install an of also we particular think that's we about attractive because of because think where plant-based types dairy, applications. factory technology we about customers fermented

for sized we'll to first look we regards again, think starting execute factory that content, In very an good we about criteria. So in good a of when the as that's the that size part We those they liquid the the we can things them meet install space, the proposition our I determination criteria are important to in important factor builds because base. our at if that meet is larger well not for want off take And most value those on point. as size, customer, pursue that projects those we projects mentioned, the clients. know

from next the question Nigel from comes of And line Wolfe Research. your Coe

heard I'm impact the chain a are was on wondering supply Nigel. manage have on are your a chain. business you any on several supply for that constraints. chain business, supply We've from if global you and there specific question since seeing I constraints, I

of everybody. a A that's think capacity, us around Certainly And topic we're it are top I to of the for and watching thing thoughts, sure. is for that volumes mind couple closely. relates very world one freight, up as

a about hear tight you lot So containers.

that ports about type You hear being blocked, thing.

a And able been we've do. that so it's Hemphill, sourcing last our we're around Doug team couple our to said team, has our by of comments been what company individual a of common very Marc issue into that watching. to Back led pricing proud year, also an that came

also of started that team meet looking we stock so we around with ahead customers. of to changes expected team continue levels expectations around made extent thought and really chain our getting the needs. on demand our needs to forward-looking some commercial has shifting safety And that and and the that can at We've about purchases So supply need.

aware an So I watching up would teams and as it exceptionally frame the situation, performing very high here. at level

so And stay supply put kind and this not of based great of in that it's expect things place. chain the some that a meaningful issues disruption to as any point way at had that we've on we've of result say could

locally We just in add markets just the we where additional do source the to XX% comments. a maybe couple And would of materials business XX% I that buy. we

Jaime's to sources for alternative factories going come just during the well. pandemic, do within a the chain into the materials throughout reiterate of our Again, business. our that and done supply where So, regions what are look has and percentage points XXXX team high course of one is we the of as

manage continuing and fantastic able are well through And supply doing very his well chain. our to team here Doug We're to just So, with XXXX chain. we've XXXX with supply a been job. manage in

business, changed MH the do your add what may and I I can for how by see And if systems bidding of how's wondering more, the mix components? and the process it is down was past one And from outlook you versus region? break the you

to bit there. A unpack

in interested you're region, and mix, what So third in was the thing?

process… bidding The

The our bidding clarification segment nutrition lists franchise business business health all regions. process. process, for and on may across us. strong But a need the bidding is It's a some very look,

how have the and component components to business of done our strong systems. In our type and Asia Now in a less a service we North across Across we regions. have there's about Europe, some it's America aftermarket. more base, systems of a nuances business aftermarket is where business, combination market, and

backdrop. a that's So

consider. I think always it's to important

what we systems that, our and business. can see typically then order of Europe. be and that lumpy will usually between bit China, a Asia, across It given happen So profiles a in specifically for

where that's comes of business the So from. that majority

component market work, with an we as market work As we globe. America business, very to service across also in as it's again, the North not customers. our as look integrator well at globe, some integrators base, we our only as the that's predominantly, own prominent install the And OE across

expect so over you'll average, basis, historically you larger if that fashion, million seen we've So see we on $XX you emphasis a it's a and continue of continue look a our at upticks some really intake. three our sales to process as expect probably the high-margin really next with million the some service want mix, on somewhere fourth with we're right? look in But And efforts we it's and $XX is business between high the to quarter these couple in part mix quarterly with as on placing $XX the component around quarter focus componentry systems between we we years. in business. at a move a million last our similar beverage, the to doing of the aftermarket food and through and improve what years, If our XX-XX $XX a a million and That's quarter. order

in three improve as continue plan we through So to we we out years move part back see that as want next mix that to laid our March. of the

the by process. of need a on I'll Now to ask you point what clarification bidding meant

for system past the changed processing process bidding your stuff? has the to How compared

bidding back we, dairies we exiting the three that, in made systems bidding at an mean, one, increasing when foods. as into on years dry ago did I fermented to content that process we business. going emphasis plant-based two, liquid placed to systems what's Yes, number and the our process, customers goes that dairy we go now started our looking And changes and

So then on on as what many sense for by a mind, case decisions case keep customer bid-for-bid we evaluate like, typically make what worked content projects on margin these type make they're most for activity. that basis. looks in we'll months profiles a of Because, are the and that, that

has its so each own story, So of project kind to speak.

have So we look at to individually. them

And your Morgan question line from from Stanley. Connor comes of next Lynagh the

the think could I sales through are guess guys if and to with are better M&A just adding content you to me what wondering new of you customers? was you with force picture far. you taking help highlighting think trying sort deals more view of sort Mixing. I just customers? the holistic were of done you adding I the same you've the Are I'm the thus

on value is growth of what just new The share should you're just you adding you're revenue, channel that can beyond creation more buying project buying course. beyond is can course. think that How take So do of the that specific revenue I growth the the a is about the entirely you main that of projects? adding

chain. assessment supply part a of As we can do on our that synergies view cost clearly each opportunity, we do through as of we where assess things

place mixing particular Mixing that other may customer also this products mentioned supply is Solutions, customer Then the product side, which we that that market important the could two synergy assessment side, can on deep factory on companies, a we customer. we on our first but a If an in example, costs. that better base managers there's For the within a those environment look just have position, that you only and where that in SPX particular that to technologies There as through we have not opportunities announced can brand that products other we don't we to Philadelphia our today, our pull also go into bases assess brands. teams be Flow may has same differences look commercial access two from applications. the brands, at their do as a other case between

the not look those an So that's access consider provide at products geographically, points, look them. can then we look piece, piece but important We and into the other can on only customer we we for both mixing get at. we that base, the where that

chemical of the mentioned Mixing selling Philadelphia You engineering sales do really is force, think of direct about the one things force sales lot they we that like of with a salespeople. and a is interesting Solution lot we

to customers So strong ourselves their in important customer process. on they relationships to how like part position solution customers we around looking with We're provide the process. a for really have

a we engineers Mixing, their and be to very for mixing force of Philadelphia go is business has sales to work as create valuable that our going in customers For with team great we feel entire to that a other could them, pieces where, That's for piece application. for we'll sell solution a of equipment a pull solution just that but and not create too, through brands equipment, look fit them. chemical of

one said. agree hear I culture and is to that innovative increased that in driving with want the we're us lot piece investments business. talk that make you all our organically the add about we more Marc Connor, a I'll

whole across that years. and that have the screen something and number a into to Mixers is teams been we team and to look that utilize our they've business. bring up for cultures at Brand can that's Philadelphia a business, the acquisitions pick successful the back can And that we of been in excited front. that really on about to So We're our of

does markets screen, too, in we match mixing what to what as have, capabilities and mixing Mixing at have that but look well and themselves. does as the Solutions not case, this capabilities And the mixing want up what Philadelphia that how all includes that products UTG to only culture, we technologies capabilities does also We serve? have, customers

about just larger that here potential the some you've it I versus guess is do out scope trying content, boost So increase some sounds you you're sales the wind like say adding think of or or and or these projects gives adding think you of I'm of contrast it control. that solutions potential, larger margin lot that wondering but to a to to have it could I get like clarifying, margins, types think the in we potential more sounds things. would have Correct? neutral if more do forces projects been down maybe be because worth you and the bigger is what direct be revenue. margin would a you basically it more

It's It's exited Dairy Dry or That's The point doing us. large and we business clarification systems health a nutrition out Dry Systems. is We're business business of done. beverage food Systems. first. Dairy to Maybe project and behind trying segment. that not type project-based our get in

into needs, their completely gets with or them the that products chemicals operations in a margins food across for. or margin application a perspective, have It where for we about dairy entire the We It's in space. do a base the be pieces there's still beverage we're When should about integrated want margins mining not margin meets application. fermented outcomes and creating to and customers our talk We working providing that From looking concern discreet or with equipment doing space, the whether scenario. that completely our through and and that projects. greater specialty facility It's EPC-type profiles. that. it's continue of way. to sell they're different or a industrial in come in pulling applications enhance, a them that in issue other with industrial plant-based. that or a wastewater plant providing those We're products out different space, good dynamic projects talk no leverage provide create we consistent with much real process They're process are equipment that portfolio of really to can large also you products they're opportunities our when to tailored

to Connor, I'll the and that you investor laid even these to profile were our that and case to Philadelphia in say just margins I reference Lock What that bill. the transaction our revenues is margins. and fit day, our say deal What fit we transactions projects out of going all were and that think projects, Maybe I'd referencing is are we Posi which possibly. as is last you accretive year, Mixers transactions that gross the the these of profit UTG, would all financial add, EBITDA our making looking I M&A did back for and margins operating that high-quality at

of happen need within framed we high exceeding our value just in Now, attractive. the time are ROI to are period way that WACC to That's P&L. all cash revenue a around our of course, quality shows time. screen. integration is activities before there of businesses period in part That's which our that thesis But these creation up a of the the confirm,

That's They gross and approached -- we've said get XX% part they at look are of we to want we at. to or what that. margins above

comes from from question Nathan Stifel. next Your the Jones line of

you leadership departure I of But congratulations the I know you're to contributor and an Dwight, CEO important external search? going you in years, going. Gibson. Are have Dwight big right the been term? the conduct question a a you if the short team, guys to listening, to to of just on on an your wanted think going part he's Marc, the the the few What through Do doing replacement where and role. cover him are you the bench? are on company's how strategy that? ask last over for Just you

to ask him. I to again, great actually out a would miss going of hoping we're question was our someone member He's to because, been team. that shout Dwight,

years commercial proud that business so been team, Dwight team is tremendous him, Proud he's last As brought for team organization with mention take to was the on. journey about a carry experienced for the What well-prepared the you very and us. indicated, that our his That to the a contributor. in he He's, new that the for in his to and legacy family. he have the he's team. big about or five I things over will would been assembled The role. capable

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Our commercial is cadence that management of team month. that do part a we every

in in knows next am a to a but an very the and transition that in successful our want this continue IC of do and them I'm of continue process use team their importance as doing leaders to well. to three the business, strategy run see longterm any what right they'll with necessary know commercial evaluating here. take team strong the to to XX now. be the that. organization. period years. adjustments to we going I in I this all I'm to confident we review make the monthly as I'm next opportunity capabilities to that That's Again, I got so We over go bench, points support commercial that. playbook days So key going to through meet we very they're the

what as the of go quarter, I'll quarter outcomes through So talk into a say the here, we and more in that third about then the end the of position be assessment. to

time. Presenters, no Please further are at this questions continue. there

you. Thank us joining Appreciate today. you

you around be any have throughout day. questions, Thanks. If to we'll answer them the

you Thanks us. joining Appreciate everyone.

today's concludes Thank all you participating. This for conference call.

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