Pentair (PNR) 30 Jan 242023 Q4 Earnings call transcript

Welcome to the Pentair Fourth Quarter 2023 Earnings Conference Call. [Operator Instructions] This event is being recorded. I would now like to turn the conference over to Shelly Hubbard, Vice President, Investor Relations. Please go ahead.

Thank you, Drew, and welcome to Pentair's Fourth Quarter 2023 Earnings Conference Call.

me and Stauch, Financial Bob with Chief President Officer. call Officer; Executive Fishman, the are our John and On our Chief

quarter release. On on as will we in and fourth outlined press today's performance full morning's provide this year call, our details

Investor during you can we Pentair differences provide reconciliation today's and call earnings find supplement to between website, is non-GAAP reference. of that which and will deck intended Relations financial GAAP our the our release On slide prepared measures and remarks a

non-GAAP measures provided should of these on impact The substitute in investors accordance included be for prepared events aid and the further measures financial items results. to are with in performance performance not addition the as understanding a to financial items company's have considered additional GAAP. They the or as superior financial clarifying in to the

difficult review uncertainties cause advise our results beyond of differ the to that events. let XX-Q expectations. will about projections which begin, future remind to many make current from me most to the carefully and can are of risk cautioned materially Form our factors listeners actual certain recent risks statements, risks are subject These we or which to forward-looking we and predict Before our predictions, uncertainties, Listeners these that We are you presentation statements and today, XX-K. Pentair. statements generally are and control in other during Form

thesis. the remarks, slide Slides overview will have order now we ask X, investment allow the XXXX, prepared in we queue we the after up as over our that X quarters as to call reenter turn a to brief an of will previous to to provides which John. opportunity to in we our X well to our included Following I deck questions note open through Pentair Similar questions. earnings in then ask everyone you questions. your call for will limit Please which

morning, good and Thank everyone. you, Shelly,

separation We Our record structure, and of first Ice. we with year nVent. of X focused our performance demonstrates and Water Flow, post with and X-segment growth Pool, water the power balanced year completed full in XXXX our finished Manitowoc portfolio the Solutions our strategy our

our needed moves wanted, it's where which enjoy along Solutions water water in segment, delivered ROS people Pool XX,XXX our extremely And with Water segment, water I'm of challenging employees posted execution year environment. their in where improves global enables segment, to water, volume significant it's Flow macroeconomic for despite and ROS. our removes Our proud not record a solid for record sales which headwinds. both which approximately a

with our of we continued XXXX, for As financial growth for records leveraging and enter we performance. profitability expectations portfolio are balanced new

about sharing X. on Additionally, more strategy Investor and we look our forward our March Day at outlook X-year to

QX XXXX. finished executive summary, the with We post the X. begin nVent Now with is XXXX strong comparables our with let's on of record separation to expansion. This specifically record the income of marking important QX and QX performance segment in in ROS ROS, note quarter consecutive seventh XXXX, Slide quarter fourth in

of Pool up $X.XX, income quarter, X%, X%, down Segment the and Adjusted the better-than-expected basis quarter. $XX increased fourth free million In included EPS and sales by slightly expanded generated were we which was ROS in X% cash points. XXX flow performance.

$X.XX. adjusted income billion, $X.X XXX we record flat. million, In record despite basis Executive adjusted mentioned XX%, previously titled nVent annual separation, EPS full to year of delivered record EPS points 'XX. and sales segment ROS record the segment full ending X $XXX up the expanding year ROS of post summary, a Slide move Let's year income, of 'XX, year for of XXXX sales was XX.X%, as and

setting segments, efficiencies significant X delivered sales drive Water across Transformation Flow operational all set record continue execution a the segments for new ROS records margin all annual in XXXX we Solutions and throughout expansion year. to new and X and each. across solid

further significant dividend the aristocrat of status generated year, for we as our free Lastly, cash flow solidifying [ increased our ]. $XXX and a consecutive XXth million dividend

Slide Balanced titled Water Let's turn Portfolio. XX to

move, We water $X segments, are helping through in a the over in world improve and X billion portfolio. with together, creating sustainably each enjoy our sales water XXXX balanced

on our financial the have working, in Our strategy we call and more results who now detail. pass I over is discuss shared have that to we will performance delivering been and the you. with Bob, Bob? expectations will

and everyone. John, morning, you, good Thank

be to volume. on significant on improve of Slide margin to and year-over-year. start full delivered progress performance despite continued sequentially X% discussing QX being We by Volume QX another XX. Let's titled year improvement XX, strong substantial sales performance. compared with driven expansion QX as also QX, Slide in in our will quarter Pool and I Pentair XXXX down earnings primarily

were down us slightly down QX all QX ship Core record recovering enabling backlog year's orders. to X%, which a than to lead chain, began supply segments X were times for when compared Sales as to better from we across more sales our global was improve last slightly guided.

a up by As to Adjusted year. Fourth on the was EPS segment environment. expanded points basis and into increased driven quarter initiatives. This X% normalized we we XXX primarily XXXX, was prior our income move $X.XX X% XX.X%. sales versus to transformation million year-over-year return expect more to see of $XXX operating improvement

full All record with in income volumes. and to offset grew significantly Pool year, records. Adjusted expanded expanded were solutions, the growth driven lower increased were and segments Water For core a which record XX% X%, Flow $X.XX. basis new at return set sales margins EPS by and XX.X%. X Segment to points by flat a sales sales billion on down XXX $X.X

a Glance. Slide XX, Flow at to labeled Turning

and continued see the sales since X% XXXX, records expanded can reach over You new rose Sales X-year financial in and XXXX. impressive ROS. basis XXX In points flow performance. to compounded margin annually

diversified nature We of the the by and sales solutions, view have also provided sales channel reflecting business. and a region, XXXX

first over we customer and We old, support technical brands, in have some X iconic XXX quality, rank service. and years

to turn XX, QX performance. labeled XXXX Flow Slide Please

addition Solutions a was our income to and to and X% seasonality Industrial XX. return Industrial have performance and million, XX Note Slide for quarter. in sales Flow, year a residential record In an Segment due decreased & grew renamed X% $XXX we basis return sales was fourth commercial unfavorable QX with XX.X% flat to Flow the mix up performance our fourth was the to on normal a segment residential XXXX Flow. Technologies be X%. will to quarter also up that more referencing record following Flow full quarter I QX, business. In points X% the from recently on to down

increased year due primarily Solutions. growth on sequentially by margin double-digit slow driven for transformation return Commercial income sales XX% and the to X%, XXX offsetting and than X% price XX.X%, points QX. Flow, Full more a in record Residential For down inflation. billion, $X.XX sales increased from grew segment improvements year, was to showing to Industrial and basis

Turning to at Slide XX, titled a Water Solutions Glance.

the see compounded X-year rate basis can growth over with record sales of XXX since and strong annual a points XX% financial XXXX. expansion You margin

and Our Manitowoc iconic brands include Ice. Everpure

helped XXXX. water Our X reduce need residential in products for the water bottles billion single-use solutions have

Water turn Please XXXX Performance. Slide QX Solutions XX, to labeled

return Solutions, In sales down Manitowoc initiatives a Ice X%, Residential timing record Water million sales of and within filtration. down new the XX.X%, were full offset partially In this Manitowoc transformation on to Ice. performance X% year which addition income XX% Water due sales were XXXX. for XX. reflects and on be of to X%, services basis Segment Solutions Residential, by In a QX Commercial were performance QX, from sequentially from XXX fourth following driven growth but will primarily year primarily productivity decreased referencing I Slide quarter down to grew points in QX million the record business, to QX also QX projects sales expanded the $XXX and in by sales significant $XX improvement our to XX%. our

XX%. Solutions Commercial Ice income and the XX%, Water the Manitowoc XX% of increased year driven sales increased XX% prior XX%, growth sales record. of return a grew in had For and year year, on points year. sales to Ice XXX growth Segment Manitowoc acquisition filtration. new full grew record the basis by versus with a sales

titled to Slide Glance. turn Please a XX, Pool at

the X-year up margins XXX to was or record grow XXXX. since Looking significantly points financial XX% line basis and performance, a Pool increase at able to the top

benefits business and break very and a large remodel fix. with from coming Pool sales installed from Our of base roughly XX%

turn to Performance. Please QX XX XXXX Pool labeled Slide

to be a $XXX improved XX. Pool by In million, to which on also X% the that by addition the QX. Pool was fourth performance Note price. Pool, referencing for in offset in I'll performance driven the year in XX-point significantly declined points sales to partially X of volume In volume, compared drop X-point QX, volume decline quarter full Slide

price XX%, income Segment decreased initiatives. basis For were on our in pool the increased to and XX%. by sales points XXX sales down year, XX% return transformation driven

we last driving expansion. provides Slide Please turn goal XX, quarter, illustration and of believe to of to Initiatives. this labeled slide a ultimate Transformation transformation margin our initiatives our good Similar

margins have deliver puts us out XX% of QX, we by began ROS targeting points of as XX.X% we we XX% 'XX XXX initiatives. XXXX, We of in believe expect end our to expanding In by the ROS on with over XXXX. read been XXXX, full and to the roughly as QX of fiscal basis end year compared to approximately and which fiscal transformation track transformation delivered

XX, Slide Runway. Please turn to labeled Transformation

of each a X reference the illustrate and the stages as each. the slide this kept of initiatives have nature of to various staggered We

We initiatives believe XXXX. are that well are pleased on executing going these to into we we note

XXX% labeled another generated in turn strong Sheet Flow. Please nearly In QX, Balance quarter. up million $XX reflecting to Slide and year-over-year, Cash we free flow, cash XX,

free XX% For our $XXX year-over-year. the up was year, nearly cash million, flow

in Xx, leverage Our down was net ratio QX. X.Xx from debt

Our rate than approximately and was billion, was X.X%. the total average less interest $X debt

which full Ice XX.X% was acquisition. from ROIC impact Our the the includes Manitowoc

focus high with higher potential capital We debt disciplined and for continue remain on being of reduction the share stewards to amid our to rate on environment the the good plan with target capital, teens focus interest we to continue buybacks. With ROIC.

XXXX and Moving (sic) XX Pentair XX to Year titled ], Outlook. [ QX Slide Full

introducing which of up year, up XX%. XX% our adjusted full of $X.XX represents to year-over-year $X.XX a we EPS the guidance range approximately For are to

Pentair in sales billion expect fiscal to up We be to approximately about $X.X -- XXXX be approximately up to X% X%. total or

residential. by up low Flow in single to expect be mid-single-digit industrial low commercial growth reflecting single-digit and sales our We low slightly digits, in decline businesses, offset a to

low expected approximately XXXX, aligns historical digits mid-single to sales expected to water year single XXXX are low the record to flat, and in residential full Pool commercial by year Solutions compound pre-pandemic. of 'XX down be full are sales rates expected be X% mid-single business. Commercial be annual performance sales driven digits essentially growth in which comping to digits. Water our up are to increase

and XXXX some primarily Pool we of that increase, We by do to price. XXXX expect not benefit in in sales headwinds to expect driven inventory repeat

growth We to aftermarket. remodeled XXXX macroeconomic to potential growth we market the environment, repair offset this expect new and in deferrals exists the the highly interest that and look being by in impact We regarding of the macroeconomic financing potential deliver still higher attractive us, for uncertainty mindful and be slightly a strong dynamics. while remains rates, Pool believe for of pools

of expect Pentair basis share XX% million. increase points. $X.XX tax segment standards a expect approximately rate income the count impact Also in inclusive global for net expansion XXX corporate is million, of a approximately XXX to tax of to per approximately and roughly share adjusted total approximately the of expense ROS $XXX million, $XX XX.X% we We to changes of which about million with XXX of roughly for an expense year, interest of full

expect approximately XXXX, deliver in a full very we EBITDA in $X of. proud year billion to are Lastly, we milestone

expect down to For we be X%. the sales X% approximately quarter, first to

backlogs in to businesses. we improved, of were large many normalized down supply were seasonality businesses more as ship chains our more orders. As we expect In last reminder, able in backlog working year, a QX and XXXX, our

segment quarter to adjusted net count X%, XX.X% a lower of income down approximately approximately interest $XX million. approximately an rate XXX share first expense flat corporate tax $XX be primarily sales to expense due expect We roughly of and of million, million, to with of

expansion, Ross drive sequentially We year-on-year. expect to and both QX

introducing also $X.XX of the approximately EPS We $X.XX. to quarter adjusted guidance are first for

to first For XXXX across the expect XXXX, are transformation we we driving seasonality historical our we operating to margin return see globally. segments to resume X a more time of norms expansion. seeing with all since in believe normalized a environment Thus,

year guide. quarter adjusted we adjusted lowest the be less be to of first XXXX, adjusted for expect segment half EPS and compared slightly full the of XX% full expected EPS sales, In to EPS than X our and as 'XX. is to remaining income, year QX quarters ROS the

on focused We of to funnels and have remain company. transformation in investing accelerate our the continued long-term growth

(sic) XX Slide to XXXX Turning titled ], [ Reflection. XX

a to of balanced we we drove allocation water margins execute strategy. delivered a and ended transformation year, result an with into stronger posted performance portfolio well accountability the capital Our and 'XX. initiatives. said exceeding well as a do. would and organization, what we going drove year We free even disciplined Manitowoc full record continued are year the We and positioned business our flow cash balance Ice We across sheet maintained believe expectations.

for I would please to over to which Q&A, have now closing few open remarks. call like questions. the John for the the turn will Drew, line operator after a

Instructions] first question comes with Brian from Sachs. Lee [Operator Goldman The

Grace is on This for Brian.

margin Kudos a execution. First margin. question on on

on the trajectory a question Just quick expansion margin here.

points while basis your your at year midpoint. here, guide guide So of math XXX like expansion basis like the imply kind imply if do XX point XQ I full the correct

margin how the expansion? about most moving we So the should And trajectory we think see margin the expansion segment year? should which

Yes.

take want Let I that inventory year's remind and hand everybody me correction until part, Bob. I'll Pool fully last just first to the it QX. didn't to happen just

back X our QX you look the And actually there. So at as before is Bob of we're the you'll compare see overall continued is guidance our just more from to Pool a EPS point performance handing up to full QX QX operating to exiting a the is guide, And compare I'll and that last perspective. of QX percentage it seasonality against if normal performance year. the our make quarter over

time back seeing reflection is are year-over-year to that last QX. And compares you're normal our contribution. seasonality we're a one the really Bob? therefore, in what harder, So

basis expansion ROS for of quarter Yes, your numbers. with full XXX I points the as would the in continue agree expansion will drive ROS year. first we approximately

the ROS significant also expect, you'd QX will As will in in be QX as largest QX. well quarter, out QX and we out with and year being expansion our play the close

And then question my Great. second on is Pool. more

year-over-year. of X% up -- about That's million like $XX your So revenue incremental.

X% believe -- driven do you is enough interest was have delta rates. talked in uncertainty give I that growth? I on buy And can think much the confidence by to you're Is macro, X% correct? I the second, early you how -- -- destocking called like like like that ]? about visibility -- Is activity [ million 'XX. $XXX in you about the around you you that talk growth the and that about cautious out high guide year-over-year does assume

X year-over-year X think that the think questions saying, inventory mean, you $XXX a Pentair just get but basis, $XXX is I reported everybody closer $XXX you'll for and want end subparts, $XXX several $XXX lot factors. down. of see to end to I I There's and all, you're -- million. if sales, QX to with the that of given to let have piece. of of reflects million if conclusion volume XXXX. first me QX if And take a on the I it's add is you it's given the can remind then the about We've On summarize exactly we from numbers million million what our price actually million, which about that.

cautionary on we're good on up Net-net, growth year sure, contribution. a as as people conversion we maybe us aftermarket new that for in And more expecting builds what's to for purchases with only interest the good of a rates not of is discretionary depending we But some are the One expecting that remodel little still in fundamentally to then the happen it's really we modestly. are. rate also half and pools. so expect pool level sure ROS the first where decline we're are going set

question Julian next comes Mitchell Barclays. with The from

the back sort profit could of XXX and around try for dialing XX what wanted you inflation circle to XXXX. sort embedded that maybe looking Just [ what's understand at of Slide numbers that was bridge to It give to full ] please? sort How about you're look of the so very and tailwind the thinking well, us bucket, number terms in. help rate in inflation $XX on of points are guide productivity, QX. exit 'XX assumption? number any when million at in for we and And year productivity, as finer we that yes, or So good in 'XX? Any

Yes, for Thank Julian. understand. you question, the

at in [ thinking look the we inflation. of ], will that context the XXXX we're As offset walks price

to X price volume. roughly compared that million is think of XXXX. saw That million points in we'll to of [ the I So that roughly our would negative inflation. we offsetting $XX grow mean That order of $XXX to $XX million ] the in midpoint guidance, have

years we very to grow. that about when a challenging really the are normalized bridge are more pleased environment, start That's and moving behind talk So revenue the you to we how us, can piece. we

the million drop million with over of, $XX move income $XX segment the That range get and call inflation. -- investments XX% in will ROS you to the you XXXX, it to When some points did it, XXX roughly compares that expansion. $XX to points We'll basis but drive call it, offset of million back through, that transformation includes price leaves that making business. income, X we of the of $XX the us of in into our also million

water all easier $XXX innovation Flow would $XXX helpful. in in improve of make drive to places we and included that's we net Pool, income that I that's to and and And XXXX the of drive as take hope guide million for you to opportunities number. $XX life around bridge like the dealers midpoint from million that the our as look million. and distributors, that's So commercial in

extremely just top quick outlook. on line And maybe a the follow-up That's helpful.

is better up get just that of clarity thinking X synchronized down improvement true year is year-on-year points. quarter from the So are the sort a that each you you points. Any start please? slightly through couple and line slightly segments year-on-year in moving about year? out of rate Is a sales couple in QX How full of The a up of kind on that, of to across slightly. all way it down

That's do really we view it. how

We a expect to growth is and return QX. big but expect our continue QX. quarter. Again, had in and in grow QX in we to largest still QX We then growth historically QX XXXX, we

comes with Stifel. Jones question next The from Nathan

with me the initiatives. Let start on follow-up transformation a

year, guys have out X, those savings savings next of talk you're X in I that kind generate to maybe the any pretty than think about good you the visibility X, start and to Just of going do over outlook? Can years. peak X realization you some level can of linearity you the the savings us when color longer-term transformation, there to off? on give more

we're transformation XXXX. in transformation Yes. When next I to we numbers in $XX And whether pricing, expect net we of mentioned, We're funnel, QX in couple at look the what or the just those over the roughly at We operations looking excellence. terms of was of a seeing pleased think org the and funnel it's the continue It type reading years. we're would $XX supports QX out. million XXXX. million with of both number as waves, the sourcing, various

think next for we of So runway the years, over for going couple to create it's us sure.

Water I my on follow-up then guess Quality And business. the

chain in Manitowoc Manitowoc Ice 'XX during the to challenges. a then had underlying think the some is that beyond? in growth and built bit a backlog headwind are that XXXX XXXX, of it for burned and maybe Is that supply tailwind for in quantify expectations what possible there I was off up

Yes.

with We QX. out. especially Let then enter QX grow Bob and in to close I phase XXXX, mean, Manitowoc, grew me I'll expect give normalized nicely think we the we and again QX in levels. just much still backlog some in more let in color I

levels. So I normal we're at think

this XX XX orders. a reminder, as was Just only days taking to business of

what that relative backlog more was Nathan, level used the nearer-term not wouldn't of some be backlog the in the dynamics So were, to large future.

And XXXX. So pleased about getting we the where and expected the term nicely obviously, with and couldn't more up revenue business and longer was synergies same this filtration the to more the business side lined a acquisition. gave we are. overall This it's Pentair, achieve the with on inclusive and Water what the it we Manitowoc Ice services we're They're the In great XXXX, be to numbers we contributed when those both had overall 'XX, side. of unit. of -- of filtration Solutions along synergies business

excited pleased the beyond. about are 'XX very and contribution in So where see we'll we and very

just is wins increase nice we would historically, when Ice mid-single-digit that's XXXX China I that a Yes. some XX% the backlog. and included look CAGR, grower they've the what down back working historically The in add at grown. in

take So breather look digits. low expect commercial we little that unit good will XXXX, the grow bit is of business mid-single to a we a actually down water business would to digits. that But as news single

some captured filtration coming of you're of seeing well services filtration. being synergies the but Ice So some benefit and as business from within acquisition, as the

more and I XXXX, overall, be performing mid-single-digit So could to pleased through that -- once continue with type how trajectory. not Ice be on back is we get

from question next comes The Baird. Halloran Mike with

piece. Easy the Can the we the round the improves context guessing that piece residential But just helpful. through out side Water some pressure. expecting I'm be would any Solutions still continue cadencing comp, on and year. on

easier it's global comps, they're the mike. inside businesses that of the most Yes, portfolio, also but

North of to while indicators in in compares where environment key comps and seeing Europe balancing that off are starts drive business. these usually but new movements, China America, definitely easier North we America lot off interest is and/or levels more we're some choppier which the China housing the we're business. we're that return in growth. more expect America. little anticipating now and a So growing propel bit outcomes not yet at do to North Europe, And rate a in But we're We're

closer but to down, flat. slightly probably So net-net, getting

Appreciate of be on assuming downside. basis down. earlier, pricing to clarify. wanted Makes said and you that was just as the clarification mean and up to John, slightly that. net is you expectation quick majority the a volume then and the I'm I as for a And sense. price volume

and Bob benefit that way to challenges. contribution market line to across And Pentair total the price the offset net it volume, with the the That's would a the shared would that portfolio. which be correct. With be respect in

The next Seaport question Research. comes from Scott Graham with

quickly. The in That like of quarter the side, second what was first does looks slippage. or -- there that this quarter on year? price fourth wondering order [ X I was just kind happened And on some quarter cost maybe there. Just the of reverse ]

Yes.

So I of a does reminder, couple some price buy. reflect our also QX dynamics in just mean there. of early as a

it's So price substantially versus were contribution in the half of to from quarter. largest first price year. we not signaling cost that, the that costs the much being we pretty Absent higher benefited price to than would get offsetting in much the closer having

So expect and in now to head said, offsetting throughout as XXXX. as it I forward, expectations came Bob we be you line think it with

The comes with from Jeff next Inc. Markets Capital question Hammond KeyBanc

I the break how just kind the And question in you're there guide. going then So buy, XQ? of have that go the maybe early think wondering within to market kind some it to XQ, more thinking of I'm you just XQ. speak you're fix, of to was -- on spread just about kind on I'm just if how

to normal QX fourth and as that levels the gets came But in buys Early QX. typically we spread Yes. between back again, do, more quarter.

how done. So it's in line with historically

what the little in early done. of was in terms we've bit QX than component fact, less historically probably In buy shipment a

going end to your I it lighting running. environment especially that of call more we concede what don't on will rate realistic. we not expect more I outlook. products some And Jeff, more the push how fix, it discretion, see could brake the our conservatism, some That's discretionary is the pumps pool be I interest off or I the discretionary, as on to don't your I'd X. that's those affect a on of say to cautious pad. like outlook. we filters right. probably in quarter call Clearly, know have heaters, not keep thoughtful what's would And that and just being consumer the high But the consumer needed just call a replaced Yes. some and/or

see that guide level ] having flat to versus that going again better take doesn't air and [ then and of fact if it's view the more a the the happen, [indiscernible]. growth higher to reset to think I maybe of taking optimistic we're that to to end lower a

be our view. So know. I would have just I we It's particular what clear, don't very in

question Next from Brett comes Mizuho. Linzey with

Wanted the allocation capital to come priorities. back to

potential decision? the leverage noted gating path, the that continued the I And You guess, would deleveraging be share to factor you'd what optimal repurchases? drive to for would willing repurchase. for be be but there the also what flex

Yes, share based assumed we to resumes and million assumptions the the have expense the $XXX dilution. gave, share offset that we into count, buyback of interest

flow we a start into QX is based quarter, So what's in negative typically, share free but the cash also our currently. would a is year later buyback assumptions

at to just moment. that's again, And the offset dilution

debt-to-EBITDA think is from a I we're where prudent. at

buyback or is value think way I look these particular incremental and I the M&A levels, best And reduction. we're going long-term for share action. which therefore, course what still one to at interest rate at of the to the focus think owner the create is on is debt

transformation Wave year? last to we XXXX? on measures model year. more Or segments And taken circle back the primarily and operational just it. this of I feathers the as then is X the actions from how that Curious that's wanted Got side planned are million in individual this 'XX you across doing and on $XX the

at Primarily, as a the the on year, looked packaging, motors, Wave and electronics, reminder, repair X side, maintenance, logistics. sourcing again, last Wave operations, X just

metals, resins, point ocean X. rate at goods. P&L and at its of looked Wave very the and moldings, the stages will that X into So start early Wave finished way we're purchased making where

some and out I will So operations. we've the We'll cadence see nice the a X got pricing X straddle start also in to Wave think and 'XX Wave from reading both and XXXX, there of the excellence 'XX. benefits

the On the different categories of excellence, [indiscernible]. out to all playbook the almost we've pricing and strategic now rolled

transformation So again, perspective. there good a from cadence

will leave everybody what And see working in be as information detail comes attends, sure it all ways those as Day expectations listens to we'll of and and more for got how make to us. connect the some we to we've Brett, to to Analyst segment well. go a lot

The Krill next with Bank. from comes Deutsche Andrew question

to that back I X midyear the for benefit you or know just price X%? net require to more kind And go I Or are these any to points pricing wondering, kind less I base X of company. about it segments wonder point put year? or some relative the -- So of the in increases, But through? said pricing. does those are of at more do

doesn't greatly the far It as at are this segments announced yes, the they across expectation. all stage. implemented and vary as And

Joe from Giordano next comes The question TD with Cowen.

basis, just growth lot So on the what kind the Like different business Can the obviously, a that? different how organic Water much already into with Manitowoc revenue like on the go an than synergies -- out 'XX. how backlog? for like year? [ was Solutions much of walkouts, [indiscernible] in like through especially there whole. you was like drove the reading looks X there points mass were buckets underlying priced Like versus of Water was Solutions, ] as the a How much filtration

just into Just if kind can for buckets break those large growth there. you of

Yes.

of it way then at and to services our we the we're into by especially had actually I in and through simplify headwind it's the business. key you accounts that slightly offset it. very ran mean, right in synergies our project Everpure was worked business of just QX. that a a nicely me with I seeing Manitowoc the traction, Manitowoc large services up in contributing and large just want But filtration year-over-year headwind of the mention and also great for that also install filtration XXXX, against now, working business there. look the a Let the which distributors beverages, and customer, if carbonated frozen through

with Kaplowitz question Andy comes next from Citigroup. The

give digits up you low a 'XX. Flow? exposed you into segment little think I businesses more us industrial have John, CapEx your could Industrial good businesses color QX. the look within single for in

So what about are businesses seeing commercial how are Flow? And you well? you in then there as thinking

Yes.

drives continued that we in important question. what play them. them. you a our in nice is productivity investment lot and thank for deliveries. I for very had we're of waste it seeing we've And steady the rates pretty steady do also order value we're sustainability It's because mean, So for for customers. key big the because And very, a turning

also right So for plan, the thing area a value the means doing it's for the really an good where customer. it

feel we've view steady a we positioned well like there, so we're XXXX. heading seen and order into And

benefited America mainly larger has continue see expansion, and centers, types call well. the to nicely continued On we trend what infrastructure that I side, projects XXXX, build-out as in our holding data North business up we enter cetera, et and the as commercial of warehouses, pump to from related

comes question Dray from Capital next Markets. RBC The Deane with

the flow Just for owner to the still renaming there there and it anything commercial the known the is, into the technology, industrial reading on for -- I'm much seems Pool. while is is are natural opportunities and focus but into cosmetic, separation? consider sense talking answering just of the is that residential, And there centers And in potential there follow my too want business? industrial business a more just anything maybe up question, as just is and to data about in it. point you'd so we're might Andy's this less read any you about And Pentair as be formerly forth. Flow? the And But today

bit industrial want a exercise. in actually we Flow -- formal naming We to as question, time XX.XX% but just with Yes. more branding didn't The you web a was a [indiscernible] thinking. relabeling our the represents know flow story this could a the do Analyst March, of where how presence we of just and We little Flow everything to have of the technologies. And tell Deane. at nomenclature. in I think I'm of on spend we'll I share Day appreciate

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and where world. you where and brands. today, than projects accepted we're capability $XXX But Flow couple in the million a around is, to strength wastewater a the build our think technology dealer and reminder, has side around water reuse the portfolio, when industrial of do as presence that's base out continually been continue that's that take our not So of we'll other to and residential we to that's our and of geared of generally advantage our

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cross-pollination how the their of [indiscernible]. really excited individual together So working are maximizing we also think technology and while is opportunities segments the about within really revenue what excited the about

comes question Steve JPMorgan. from next with The Tusa

can on you're roughly. quantify you number, how investments just just much -- throwing this there? in Just The productivity

and we experience help Not us some And invest digitization, game successful data I got upstream at to the talk into are then X of just thought and X distributors be projects Steve, Analyst they innovation our lot. in of And if million these you think biggest long about want or bringing we'll the I opportunities that around we've and about $XX changers continue Day. I of marketing, a our -- them that then in the to million data the have. haul. automating just the our X to excitement between could because areas further, innovation, capturing $XX sales be to dealers reinvestment and and really dealers

into. of realizing, these level the So good businesses are little we I'm a with ] investment and really back of to transformation [ pleased that bit we're add want

in thrown have should You AI there.

on opportunity. again... the missed number, so But that You

Steve. me, [indiscernible] for [indiscernible].

guess, I there? guess, through? than of productivity add a that's were I was thought million. Is though, was around something messaging number that bullish just the if coming Am that. the growth I messaging $XX some back you on way I thought just than missing million I productivity I higher conservatism more number, $XX like the there

conservatism. hate word the ever I Yes. using

funnel more. would upper realizing end suggest be definitely that think realize the the of could we we range, a have we I more. would And certainly at

the I on forecast. way positioning rates think well planned of here So now, we're this we year, balanced sit we see as the we're for we in haven't We movement definitive in any any rest don't in this. and think the right interest

would John like to This Stauch, concludes conference for the over our I turn Chief any back to President Officer, question-and-answer closing and Executive session. remarks.

some Well, to thank on you for joining I the reiterate call closing, today. key XX. Slide themes want In

XXXX. water to our in and First, expansion balanced initiatives transformation margin drive portfolio significant continue

execution company. profitability, in confidence expected strategy Second, and the with in growth we our and reflecting guidance initiated XXXX across sales

building our foundation further momentum have drive the in initiatives in expansion conclude value. are focused growth, long-term believe Third, shareholder and our with call. for transformation we XXXX solid gained does growth Drew, XXXX. expectations profitability execution to a solid margin and finally, And that strategy

Thank you. presentation. The for conference you concluded. today's Thank has attending now

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