Enerpac Tool (EPAC) 16 Oct 242024 Q4 Earnings call transcript

Ladies and gentlemen, thank you for standing by. Welcome to Enerpac Tool Group's Fourth Quarter Fiscal 2024 Earnings Conference Call.

As a reminder, this conference is being recorded on October 16, 2024. It is now my pleasure to turn the conference over to Travis Williams, Senior Director of Investor Relations. Please go ahead, Mr. Williams.

morning, Group's you Call. Year-end Good for joining operator. Tool Enerpac Fiscal you, and for thank us Thank XXXX Earnings

the are Executive present Sternlieb, to Officer. The our call results on Financial On Paul today's referenced are call Interim the Principal President on and Officer; company's Chief slides Shannon available Burns, and today website. today's Investor Today's available follow along. and Relations can you download made non-GAAP reference section the will be recording call of call of measures. which on also the our company's website, will A

of You a to find the can in press issued reconciliation GAAP non-GAAP yesterday. measures release

in Our risks latest forward-looking that include be SEC statements business actual cause subject noted results to to risks comments our will could Those materially filings. that also different. are matters include

turn over will I Paul. it to Now

and good morning. Travis, Thanks,

full the For in came Enerpac's performance expected. year, essentially as financial

decelerated continued line we general course Although by evidenced continue growth growth. outpace the believe industrial the to our over very soft positive year, as we the top revenue marketplace of

As X.X% you grew XXXX, or and business. Moreover, fiscal Shannon X.X% core continued we in see organic adjusted including X%, X, elaborate gross IT&S at capture to and on, SG&A margin of profitability, profit a representing will lines, our efficiencies EBITDA in of enjoyed Tools because in and ability expansion revenue of our Industrial Services in growth can further the achieving growth Slide XX%.

to financial elaborate turn for our He Shannon me also over initial on to introduce guidance XXXX. Let fiscal the call will performance. our

talk about DTA. acquisition targeted trends, some on course, markets speak Shannon? vertical and of geographic I'll of recent about provide that, Following our color

results. highlight XXXX Thanks, Paul. our year full fiscal On financial we X, Slide

X.X%, Services organic growth fiscal we Tools respectively. XXXX. generated Biomedical, Due in X.X% Within at growth a and revenue Cortland organic X.X% total product ITS, For business. X.X% decline was grew Industrial of X.X% organic in service the to year, revenue our and &

excludes fiscal to resume the declined Cortland Cortland we've quarter. XXXX, XXXX, net made full basis the the progress productivity. XX.X%. transformation onetime are was Adjusted that continue X.X% improvements to efficiency charges improving impact the year-over-year will sale declined SG&A total operating fourth initiatives efficiency. disposition XXX to pleased expanded other discuss, from reflects actions, This and improved year ASCEND late Medical as which SG&A other year. Slide by Similarly, Industrial. related to Due including we Paul for of and to in X continued and operational growth pricing year-over-year. sales However, margins well of from see points In the driven the of fiscal ASCEND in the as both as in for Industrial Cortland periods, company to the expense, benefit gross SG&A we X%

As to a it points sales, XX.X%. basis XX of improved percent

gains invest with X fiscal X% operating Adjusted XXXX SG&A EPS adjusted lower both Slide diluted as planning conversion tax period past, On continuing part we've few the of basis, XXXX. for from year. be XX% rate of improved cash we $X.XX efficiency ASCEND and net rate investments and our years hit flow from high lower EPS with $X.XX lower the laid in out totaled GAAP of share first the to guidance of continue in in for in as free during while represents million growth to fiscal XX% in as in line a XXXX. to and in made X% fiscal XXXX, XX.X% our EBITDA Turning EBITDA strategic and increased Full of cash ASCEND flow $X.XX, XXXX. On increased Effective basis, adjusted a to growth count. benefited with which expected XX.X% per a a earnings share initiatives. of operations compared in fiscal rate the was the from fiscal That to we fiscal flow tax as productivity, end a continued in XXX year-over-year. XX.X% we line points top in the earnings, cash from our Of note, year basis XX.X% free due XXXX margins $XX expectations program adjusted conversion to to

have at a least We by fiscal targeted XXX% XXXX. conversion

have XXXX. As Slide see can since in transformation fiscal on we launched gains you we program X, captured ASCEND our significant

with $XX of well fiscal roughly doubled Since of reached X,XXX above of of conclusion basis million. That to revised expansion XXXX, the and EBITDA total in $XX to year-end As fiscal full program of million of fiscal plan. the XXXX from million XX% represents official fiscal adjusted targets million in $XX achieved with ahead year of million. And of excess XXXX, million margin our our EBITDA $XX we with that $XXX adjusted $XX 'XX, approximately points. million $XX target in we objective year initial of the a investment to benefits margin

results impacted quarter, the fourth higher percent revenue year-over-year on quarter #X. manage by service initiatives. as our We project standard revenue. In SG&A expenses organic productivity to we fourth to to X.X%, through and of revenue decline X.X% growth At growth highlighted same time, service of continued quarter. growth margins by were of product mix was in products. gross the offset efficiency delivered the in X.X% X% comprised Turning compared of of negatively Slide ITS a a

balance Turning to remains sheet. the strong. position Enerpac's

leverage net year, leverage year-end debt forma internal our was as Slide resulting in ample debt to the end $XX deploy debt financing of of shown capacity Subsequent net the basis, XXXX. Total As pro at EBITDA disciplined to of completed capital adjusted fiscal share On X.Xx. including liquidity net fiscal #X, repurchase. ratio was we as acquisition the $XXX strategy million. opportunistic for leaves of million, was the investments X.Xx ratio well This DTA, and the on a a M&A DTA. our

is market presented show to we in a the our Slide the Net represents year contribution at for X% initial anticipate of the full we revenue guidance X% from to outlined organic fiscal release XX, general $XXX total We our growth continue have and That decline including earnings single-digit for the while at year. range the XXXX, to growth As DTA in will forecast million. industrial revenue million midpoint. X% low at on $XXX of sales, believe Enerpac.

Our forecast in a adjusted million to $XXX the of XXXX. at for margin EBITDA midpoint is million, $XXX XX.X% representing fiscal

XXXX. have of achieve framework, margin As framework, fiscal adjusted line I been our achieved of further target margin to improvements subsequent approximately EBITDA financial point In XX% we our excluding our fiscal our guidance on of basis acquisition in objective schedule to mentioned, in has basis points ahead XX increased XX Based years. would that with XXXX. DTA, XX.X% the adjusted in EBITDA a

EBITDA, million to of DTA million dilutive first in margin to with nicely year. We it $XX While is profitable million its is project free cash CapEx basis $XX an $XX on a flow additive of that our onetime Note fiscal we've be investments to higher build-out headquarters, new discussed expected for years prior the $XX million. previously. is in primarily due of than CapEx to which to XXXX and

see Paul. included me amortization, depreciation can from and slide, expense, turn rate. our modeling that, including tax with assumptions, back the interest let our you As to along call we With adjusted have this

Shannon. Thanks,

and better methodology move we drive that benefits geographic That that natural margin with As same improvement utilize is forward. revenue to PEP, you and a opportunities call additional to the as Enerpac our across will extension in XX, standardization are our our practices Slide XX, and we from of Enerpac of organization. PEP we across and manufacturing ensuring accrue the Fiscal and tools level just simplification the consistently reducing three continuous the ASCEND. Slide mixed. further heard, which be we and rigor. we or all journey continuous also was will shown in procurement and was of the outlined Powering are XXXX growth on are excited innovation, effort on Americas growth. program finance by improvement as going committed as improve PEP, unnecessary eliminating be PEP about challenging established performance With capturing digits. revenue unlock up for we what best to single will to focused regions steps, on applied to ourselves framework, means same of processes low and satisfaction, marketing, growth customer complexity performance, enabled this I'm the for ASCEND improvement forward. Switching

While or mining HLT, year continues Technology be demand Heavy has strong by they in been remains in are flat accordingly. sector. to softness declined digits. revenue Performance services, impacted declining region, for to funnel. an region full Lifting ITS in products Distributor tightly inventories standard our the In expanding cautious, smallest with and and the Asia Pacific, the mid-single managing remains sentiment

expect year. we we region, gains support. commercial were to the with However, in and as and growth add to Australia, recent continue discussed e-commerce return high region the expand Americas fiscal quarter. growth fourth APAC introduction at strong for was quarter, distributors in single-digit EMEA flat last Europe year-over-year, the digits region to across recently overall quarter enjoy continue revenue rollout prior establishes the the fiscal in performance or EMEA consistent we digits. The disciplined the low mid-single the with of end quarter that And share market Commercial a e-commerce to process, region to In launched markets. of expect we slow were With broad-based of expansion sales and the to more single APAC fourth in the quarters with which from market revenue capture the Fourth in Excellence, Enerpac down 'XX, the ECX, gains. In sales trends, further and XXXX.

Cortland 'XX its growth Shannon revenue fourth As the fiscal posted of quarter. first mentioned, year-over-year in

or year, launch move resume should growth products the negotiations of XXXX. the earlier commercial in the are on or approval With completed fiscal recently we as having qualification. That the to Several we year. regulatory commercial path resolution expect in through help new Cortland organic customer began

XX. product innovation Slide to Turning on

on An our late XX-ton progress markets. I'm battery-operated in new pin in excited part Over we including the grip important needs key products, innovation refocused lock XXX-ton of lineup, wrench we've handheld marketplace been hydraulic a of result our the new past several kits moving and first about attended battery-powered customer aligned in innovation our two have puller, the portable September. with product gaining the is trade map our three vertical we're program forward. road torque at our year, puller shows, with and traction hydraulic including key These pleased the the participation making pumps. introduced

of Stressing our time, our Fair of our transport for our exceeded show a a many with that of first exhibited focused featured and generating also on technology. a introducing shown demonstrations the a About new the show, the customer live by significant Trade Track fair leading of TLXXX Enerpac on heavy show MINExpo RPXXA show track, a a mockup at For to highly included aided lifting number well the in show, marketing, products. we as the and were launching activity, large new of At standard time, InnoTrans tracked we've for XX, expectations, Vegas. the advanced at Berlin, both sites. Slide And we technology at new Germany, and leads same extensive globally Rail as piece rigorously brand attendees. The a in popular kit products Lift range approach cross-section live as pre- we requests At post exhibited system, and and which number opportunities. of large Las with rail International

decision-makers maintenance showcasing XX, battery particularly attract this high-performance Battery from And SC can enhance tools speaking this Wrench industry globe. Germany, we Hamburg, which how Torque cordless tools trends vertical to continue of event interested the in as wind Slide of WindEnergy exhibited operations. product focused positive and the on were shown farm at Attendees and with environment our as as Enerpac. market, solutions, across in and as efficiency wind including provide at Enerpac's such battery on latest a presence professionals key BTW our networking XCX the for Enerpac's well in industry target pumps the Additionally, line.

in eventual and and storage. technology Administration, the That to fact, turbines occurring this the battery In cost coal is April that favorable will the burning in very and wind dynamics year. from Analysts in these than turbines, competitive product percentage wind believe U.S. Information according of lines double the and estimate have to from life a plants March electricity wind around building manufacturing Enerpac's of wind as market and lowered provide highly turbines installation by generated cycle the of than the more XX% wind crossover of environment to in for positive serve Energy power full maintenance that operations breakthroughs more electricity XXXX. We decommissioning.

a Executive strategy manufacturing as only Eric a XX. joins treasury, also us joining he Enerpac separate Eric release responsibility. experience. value led chain Kozik supply to procurement will short Vice from and functions. XX. Darren has where detailed He Slide in the July, Electric playbook on Darren record President roles deep a as of to announced established announced industrial business, October as General increasing at excellence, efficiency. mergers he brings career Chief and their Moving and global Operations. Chack Financial of financial acquisitions, scope yesterday, planning and clear manufacturer operations functional had and be In operation create Vice appointment relations time, and and a In and of we through effectiveness Executive a Officer XX-year global in President of leadership And investor analysis, ManpowerGroup

to much are forward looking part very having the of as him We team.

turning Slide Finally, XX. to

us anticipate which sales. our to an for sales on to expand X. accounts complement customers. we revenue Combining of movement for in focus our synergies which DTA, enables provides and of currently XX% DTA's reach DTA Enerpac's we solutions meaningful technology. more to acquisition lift lifting approximately and provide specialization heavy comprehensive the with seek horizontal DTA line We beyond distribution Europe, about its excited on excellent are greatly announced capabilities product We September as vertical

benefit side, back-office the procurement On from disciplined cost DTA expenses. leveraging we and while will processes, operating believe Enerpac's share

based the our proprietary in Like of broadly, have DTA of good are already targets. of along is on integration is funnel majority process lead our strategy. well for equipment. established M&A the a cross-selling a We example generation DTA More DTA, our vast and

While can are and fit deep like the and which they take a develop, to creating deals took based year, of opportunity. relationship on DTA, building those longer a about understanding strategic value

this in the thank questions, to the team like open CFO thank as call search. across work couple to like also I'd globe his to members fiscal Shannon the their over employees excellent finance for Before we XXXX. to newest of quarters the our function interim opportunity DTA take I'd from including the of past for conducted we leadership our

effectively Our provided. the finance grateful efficiently, organization and all operate extremely Shannon's I'm support and extremely strong to he continued under leadership capable and for

Going play and role to lead in across office growth key support will drive forward, decision our to that, and be enhancements happy take business a helping Enerpac. productivity Shannon we'd continue With further questions.

King. from the [Operator of from We Instructions] Your question first the will Tom begin session. now Hayes question-and-answer line comes CL

the time I appreciate this morning.

Just a couple of questions.

acquisition. nice DTA, on First,

year? maybe if, in maybe out some the maybe for you Just call what prominent could of opportunities see in most as you you DTA this upcoming fiscal

Yes, sure. Tom. Thanks,

get business here the the strong We were to excited the the to previous team. as super done It's beginning are the has track deal are about led year. who record that We by really great continuing organic excellent business right an part run at happy of solid, a DTA. going still of forward of that owners, fiscal growth, Enerpac

in particularly like probably, highlight. think I'd most there's things we about three what guess, I probably I DTA,

existing very, our in heavy are remarks all business, we specialty their both very our many my is is really those. where of complementary, business really, customers you need HLT earlier, loads of horizontal extremely to as First know as really vertical it's particularly about movement lifting. There and HLT movement. applications horizontal referenced offer Previously, didn't industrial foremost, I

a from both combined that where And so, customer and leverage the kind of relationships, at can commercial synergy we existing side side we the DTA have Enerpac perspective.

I sales in actually opportunity given the I for location vast outside of see is geographic never in European sales second, really are of their of been think had the have Spain. resources Europe. we as The referenced, DTA they've expansion. and there dedicated majority lots region

building parts And now leverage we we're have channel of well that verticals are growth where funnel Americas, the about markets obviously rail the world, lot the excited including a in Super can and the the is help network that there. And here process opportunities we existing so really things end to particularly key many that including where expand. think sales I are in and And underway. of we share. actually of we to gain in there's and they thirdly, and that us, continue strong complementarity, wind like drive for serve,

to think in I opportunities growth of see those, in business. we DTA So really drive continue the to interesting all

you moving into look they No, that that more solutions that your the you picture? say of going DTA brings? just using that the the at HLT technology, have was solutions great. need those they are does for fit your if are Would that for competitive customers side-to-side now? And Or how elsewhere kind

customer, not them depends Right. on the some that. yes, need of do, Yes. cases, absolutely but they all It in

we didn't bit, was side-to-side because a projects funny DTA with just where it's customers. bidding the guess, some offer solution that fact, on In acquisition actually the existing post our discovered I literally we

I opportunity opportunity where obviously, handful there it clearly we're specific very a definitely out of joined up and of there. many that. application mean is now So it in in points customers. need our a there's doing that are shared cases that Those to But highlights

a DTA. complementary a Okay. that to one reoccurring last revenue one business? be Maybe Do they have service service on component or would just your

do, they actually. Yes,

side been growth one They to an tends certainly we us DTA. to of accretive business. of also the on customers business, that margin that's be because aftermarket an the initiatives within has capital growth new requires for like the certainly do We sale smaller been parts and businesses maintenance Historically, the and them. That I in is regular obviously has on a like. equipment. many focus this of growing the afterthought. focused it more aftermarket their And businesses. So space, key our well, it's business think, opportunity for serve drive and there's And equipment, and but say for wouldn't believe nice the

Okay.

if key bit, color see on I specifically infrastructure anticipated, how little the half provide market the on a and maybe that your little the infrastructure but getting maybe you your to little 'XX to will I projects year. bit the rail, guidance. had you your be up maybe verticals commentary people performing target market. More aren't a seem mean 'XX fast of as back shifting we you maybe the originally moving but a some as was could gears as wondering mentioned in the pick outlook. some in bit market vis-a-vis MRO as just signals Just that wind more

you color that any great. So provide would can on be

sure. Yes,

them shows. in if we a of on our take exhibiting I key obviously referenced think number I we key turn, were at verticals, recently

shows Germany think wind of And for investment was both rail. fact, positive at two markets, activity there. terms the happening end in In see continue in and those reasonably profile I signs and of demand I in to we

feel growth, about we around earlier. FY continue disproportionate rail resources that and and or like drive organic what wind support markets, I good innovation to think here going in including investment against our my I So 'XX talked additional overall could look into that and end we and remarks

I see the many Europe the around remind U.S. think still robust in We We in certainly that here is see see investment parts aging level in But infrastructure set, probably that, cases of the And we world. see of that folks Japan. the particularly in parts happening of the many that opportunity most infrastructure. funding given, Asia. infrastructure I'd in with that space, all in We activity. obviously, other that's

need available. the is there. being Funds So are made

more a would these in little do cycle. And projects bit into them the we've proprietary And of to insight kind in But data does us rollout, to to drive access able give kind us to got indicators is, access particularly give some the most specification the bidding like comfort we some me the terms preference that us it's think slower here early U.S. I in see where are to than of more process stage leading Enerpac. of sets more progressing. of gives of life be see brand their for and what that in around

in revenue And really wouldn't So in play of infrastructure we say, see fiscal 'XX. here fiscal more into we we'll are I actual that ascribe out activity would 'XX. much, hopeful

just Maybe back in I'll the go then and one follow-up queue.

wondering kind what's of your slowness Is I'll it, -- issues? Is project regulatory for I got not maybe on setting? assuming slowing infrastructure, mixed the of it's that. I've On I'm the it kind it some just down drivers was Is thoughts financing. call flow. it just

Just your thoughts that. on

think don't se. I per it's Yes. financing

be might I think some of permitting. it

tight market. think I still just is also hear. that those there's we the is still think which But availability, a are U.S. market here labor I the the labor just practical challenge, in But intent the things given there.

obviously bid it's funds permitting things out I And the As made get and matter through done. process typical a lines we the just the working time to get are of on these available. said, being think

it's As show not of the tends to It's you know, to the things the where of bid towards [indiscernible] out together Enerpac Enerpac physically need awarded. stage site, right? that I participates, into mean latter start up sort actually and they it really cycle, at and play. truly get funds be projects are come materials putting tools

Your from Ross William Sparenblek from of the next question Blair. comes line

that just more on products. starting second maybe APAC the get on growth organic you guidance market for annual us price I just be expectation to also half Can geographies? believe the organic share here always assumptions is front? three market new I think we that across called loaded help your the going Maybe on with but the out frame sense front. mean it's XXXX is guidance I the and about the the expectations the improving; as you

Yes.

I from walk think a I that. if did Shannon start I through perspective, mean, market

around guidance. point, view not at or guidance know, of fiscal 'XX kind -- you as doing Our and quarterly this we're issuing

our think we're the do range. decline in in likely single-digit is for which really this the overall will to thing easiest the is call to the XX I sitting are market a trying next show time. to we date low view continue that not So But in at where probably months,

above to a strong things. starting about growth, So comprised do Certainly, that's commercial talking a above really execution. weaker we market be we'll we're market, Obviously, condition. That's obviously, number continue of of the point. kind of organic believe performing

drive be fiscal that Enerpac rolling We in EMEA will region Excellence completed the implementation We rollout Commercial out Americas. the ECX. in we 'XX in the or and actually to after continue

for that So continued driver us. think pricing of will some execution There be we will commercial activity. be nice a

to I cover think seen. And needed decelerated, inflationary offset actions and if to actions pricing as continue only costs. fiscal pricing need that then drive launched muted rollout years. inflationary take it's 'XX. cover see we we're offset, to full And right? will carryover half fiscal that to are on inflationary be there and That's than pressures remind launches recent the I Certainly, not predominantly we in we late have I'd would folks, to stronger not but say, do we than second but say, we we'll do not environment. of more it in take I effect to more -- planning continue deflationary, So an have plans product and execution also products 'XX, in new commercial

half a speaking, remind So year. I in to second overall bit the mean, it the generally about And revenue for you we those. or all I'd as back be really think our of flows revenue tend combination again, is a folks, weighted little half of Enerpac

similar drive XX we just and base improvement I'd as going SG&A we to to it projects point ASCEND. that execute continue we that to productivity we And PEP and as add pricing, Yes. Paul operational the did but talked efficiency also highlighted, continuous as the business, that about very about that's program improvement on think in forward the and move is basis

Okay.

of broad in about So maybe Maybe initiatives already? margin baking And gains range, maybe from higher not as somewhat share it's flat some market what the you low say front, some kind decline. DTA productivity lower dilution is the maybe when volume if margin a could didn't you also guidance is the the in on gets then layer single-digit end of great the price? we towards the with the just offsetting with end in also you that think

we'll volume there But you're think we think just range. on like same right do component I is in We're a benefit overhead ran are we I running of providing we with we're I mean, executing a ASCEND. your have and same as there improvement certainly, mean, just absorption Shannon No, and ASCEND. of the getting just will the execute I benefit. And sure. in PEP, to from Performance. comments Powering initiatives, Yes, continue the referenced, continue, earlier. that, obviously, a funnel overhead regardless, that We're we that calling the Enerpac mechanism that as continuous

anybody walls just from of perspective the ASCEND the consistent So we related the through externally We're very of executed not it with that. will way X to any adjusting will P&L. that out within out feel Those here Enerpac, charges just onetime the or calling much program. flow the

But I think to But Generally, targeting effectively, DTA, a 'XX perspective. expansion earlier. would in time, With from margin Enerpac. Shannon on DTA opportunities, flat. EBITDA about still X referenced, we margin just of believe what we year the a we I standpoint in from have business, XX this about excluding said at is, is basis year-over-year. think been growth margin for it dilutive of the we DTA, it's improvement also point not side, have certainly great close and for we fiscal talked points we're

So do behind of can that. the kind you math

it. Got

thinking XXXX And with for us But flow conversion ASCEND of That's that the Okay. up? your I cash helpful. maybe working has get at just rationalization are then levers part conversion capital free other help the cash targets about know any disposal can of stepping that remind free been flow to SKU distributors you down. narrative. and

can multiple as continues We've board, capital. improvements say, working job optimization a continued But optimizing on we AR and see I made the the DSO. think I'd opportunities few make add and this year. to can regards We think I on color on nice to team capital. Chack still comments. I team working to Shannon improvements inventory foremost, drive well. first well. nice Yes, a do job see runway with has done Eric on And as with a more

previously I out amount, the the a costs working plan just HQ hits because in and talked in fiscal largely just is those 'XX, and us, factor CapEx that, here do costs which that It's Shannon but about we referenced is against for build higher which think one onetime on I'd have our hit of say headquarter the budget. on relocation largely 'XX. fiscal or of CapEx we've

Yes. there's a last And terms I lot couple cash just of of noise less given flow. -- and in versus just years, of ASCEND add, charges mean, I'd the

in we fiscal should have year a 'XX. So much cleaner year

next line comes Silver Your of from Argus from question Research. the Steve

Congratulations on a productive year.

the even as the the to cash and activity. leverage the with below with question, repurchase company be after the share position first combined range the continued that in DTA deal, The target strong robust continues cash flow the free

around there wondering color strategy. if the any capital allocation around updated Just the thinking thoughts are or

for Thanks sure. question. Yes, the

one capital shareholders. all have Our the say a good as That say 'XX. any our never all DTA I'd returns still even to investments, here use X.Xx great normalized fiscal continues Unfortunately, really in case kind that basis. that and are with focus internal mind, of business are Obviously, of I we unchanged. focus I out number same. forma our to investments, resources. up that's X.Xx we for pro to think would the remains ratio and below to be available priorities leverage of those target we on remains our start and our support of continue capital going

it's we've dry done, opportunistically repurchase X.X share fiscal capital in there, and or balanced shareholders, repurchase million acquisitions roughly, between current million share from under authorization. inorganic to So we approach have 'XX. And predominantly really capacity remaining shares through like DTA right, returning growth and think, as still $XX then for a the enough of I through maintaining powder

lot example, powder. behind the bullish sufficient Board We've that dry about been repurchase maintain doing a Enerpac scenes certainly, Obviously, as funnel want build at to we're future the on an for we'll the they we a of because work are continuing our about of our right, to basis But So acquisitions. time took we're do look and and to take DTA, making. year, and about those start finish. continue with from episodic. opportunistic out investments to on share discuss an

quality the making funnel with and so I'm a of conversations. on in just the quantity. And process. But progress good proprietary got build vast we've the funnel The targets are remain these majority what with out, that the long we're pleased really,

want them. support just So those decisions sheet we really to maintain a to we take balance when superior able to be

That's helpful. I one more, And Great. if may.

at the the any Given the of the you elevated industry remains you really consolidation still increased the fragmented. industry really rate the Are interest across the any in industrial consolidation and industry signal that given signs of Is and there that just earlier environment. tool industry? fact wider cited seeing challenges large macroeconomic

But note, market, are say remains from opportunity any referenced two as I I it to you're or indication significant at an lens by right, Yes. anything I and there's opportunity acquirers. adjacencies wouldn't get acquisitions a good Enerpac. through time that I've There mean consistent look is large consolidation that we for example. the we're at. fragmented, wouldn't and times, looking the Steve. the done. multiple of highlight it's also an quite DTA especially that of time it But one is

highlight I us present, on date, would program. inorganic seen does for efforts that to anything we've I our so consolidation particular think, kind there's But where don't no, a focused I opportunity growth think consistent and of very that others. And by unique

concludes final I back Sternlieb, to remarks. our turn that will closing over some President call now CEO, question-and-answer for And and Paul the session.

this for Well, Okay. morning. thanks again joining us

presenting Baird on in XX the meantime, questions. UBS Florida. November and Thank will take at the upcoming on Travis X follow-up have Global December Industrials you, We In Industrial will Beach, day. Transportation a Conference we and be Chicago. be at X, good any the Palm Global and hosting to available be Conference and meetings And in will one-on-one

concludes for participation. conference call. your you This Thank today's

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