SPX (SPXC) 8 May 222022 Q1 Earnings call transcript

Thank you for standing by. And welcome to the SPX Corporation's First Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. After the speaker presentation, there will be a question-and-answer session. [Operator Instructions]. to Clegg, conference and Vice like speaker to Communications. now Paul today, President, would hand over the your I Investor Relations Please go ahead.

With Officer. and was market Chief good for Officer; quarter and today and results everyone. our Executive release Gene me Chief close. containing Harris, us. first Financial are President you, after call press on issued our Thank Lowe, today Jamie the A afternoon, joining Thanks our

remarks. as earnings You discussion Investor to a available can website and GAAP well with presentation until the along encourage presentation find this our Relations A disclosure the to I you in the our the link our prepared live in website slide slide of of webcast will and replay to and of on May of be webcast at a follow press release spx.com. XX. review as release our call section our our results during

As Safe comments a factors most reminder, portions including and recent pandemic. the to ongoing SEC provisions. our in COVID-XX also Harbor subject risk our the filings, and note forward-looking are related Please disclosures of our presentation to

will adjusted and will continued financial to focus comments comparisons of largely operations the results, results Our be only. today on

reconciliations figures appendix GAAP measures to You of in historical can to find the today's detailed adjusted their respective presentation.

items. investment Our adjusted related earnings certain favorable gain, items, and tax per nonservice discrete and expense excludes share strategic also amortization items other pension

the virtual to meetings And York Loop X. be call investors on Finally, the New turn Capital months, Gene. that, conducting we in at I'll over with the Conference will with over coming Investor including June

joining Good afternoon, Paul. everyone, Thanks, for thank you us. and

which for update provide the a impact guidance, our provide you full recent segment consolidated On to most of We'll also an the call quarter. first and with year on our acquisition. brief includes the our update we'll today, results

we the year, highlights our laid quarter. the overall some on We in that the February. to from expectations exceeding a last stronger-than-anticipated call Now start I'll the out touch of had during

but year, see expected, further second particularly seen we to the As throughout improvements continue improvements labor, quarter expect remainder challenges to the during of the in the production we've half. also and related and

is During the that guidance an on year Today, ITL, completed to to strategic strengthens value business ITL, excellent existing addition navigation of further we acquisition in or another International for builds our acquisition Lighting, Tower our that AtoN framework are our we creation with continued strategic age or and which updating believe on our the Measurement We & we platform. our execute to quarter, AtoN segment. Detection XX. March full

We track on of to year, for are midpoint our growth earnings range. the approximately full updated achieve XX% at the solid

guidance, Detection a to a in customer of rate year reminder, when case timing indicated on that the QX our and we impact the we As versus due low ULC Measurement & prior initiated business. be revenue project certain the would XXXX our of

improvement with ongoing for organic for summary, poised to years come. see continue constraints the several managing For transportation results and to continue and across our the availability initiatives, pleased markets, driving for key location of transportation due strong full our upside pipeline operational and driver our outperformance remains demand the and inspection is am some significant to and deliveries. Overall, M&A and earlier-than-anticipated impact expectations our performance. the quarter was value a SPX attractive platforms, positioning of production I year versus in our with and including future growth In continuous quarter, we our to capital

As always, to on I'd creation like value touch framework. our

areas of progress We make continue during to in number a QX.

utilities our platform, and our data significant of further quarter, offerings gaining particularly during where Location the the with in is progressed proposition & Our value traction Inspection digital other customers. initiative

critical initiatives remain processes our the our to initiatives labor CI Our current to which new have of last on our constraints for as of improvement, integration Several chain environment. or the the us over been navigate helped as acquisitions. current management and sourcing, CI, and two well supply continuous have throughput focused years

saw and we in to QX, the During of face benefit demand continued the of ability the initiatives customer meet these businesses our of challenges.

Our initiative our benefits traction also ESG initiatives. to gain many continues and CI with shares

year our a net in drove it recycling primary in As process savings tons an waste example, to pallets invested XXX and from costs crates. U.S. per when plant of input wood eliminate cooling

We to tons material. transform XXX stacking scrap year eco-friendly also worked party third with into a per of PVC

accretive AtoN in growth QX, to initiatives also of our the Technologies, It continue annualized value-added million $XX broader at advance as business, our to Measurement as parts ITL acquisition obstruction set including our adds margins. terrestrial Flash high-quality out of & lighting a services, with communications. monitoring strengthens with Detection lighting approximately building well segment further platform We our and ITL. of revenue and

market $XXX broad expertise our customers offer product scale, that With the welcome lighting into within SPX million win the helping we us family. value-added early are acquisition obstruction greater navigation roughly team Since AtoN business enhanced in ITL first our our end and We age transformed platform we XXXX, leader. have million our technology global end-to-end in our are solutions markets. pleased American North and to global presence to a very $XX

profile growth opportunities to to our we shareholders. and within ECS, we Cincinnati and deployment & customers, market acquisitions take to capital strategic Solutions segments, I'd business, our have like our margin highly four Fan to the Measurement additions early our the Transformer employees Since These to a and selling significant Before committed of benefit moving strategy. process review XXXX, and Detection creating moment Jamie's ITL. presence and on made our while results, discussion of HVAC our when expand

results. us experienced a Our Transformer was its Solutions profitable business for cyclicality in and

strategic redeploy discussed we higher into with the growth, to at of margin are was platforms. strategic our disposition, that goal aligned time businesses As more higher the capital our

approximately average segment this strategic a we we of redeployment the XX% monitor have basis, transformer's capital forma pro we of on income. As replaced believe

especially are that been acquire opportunities margins businesses we've reasonable with able higher to significantly pleased multiples. and growth at We

continue date transformation of progress in our to executing we are opportunities towards XXXX. strategic to excited about work the June and shared we the our of We that SPX as on targets XXXX very

Our to detail. remains front in to have of a acquisition I'll busy, continue capital we turn business and prospects strong development team financial deploy. over substantial our log now And to review the available call performance Jamie to and

Thank you, Gene.

our expectations. As internal of and our previously communicated $X.XX adjusted Gene exceeded noted, model EPS

the QX As our in were timing the a of quarter, constrained contact business. discussed last case of our in orders by and impact rate results project ULC

the rate. will segment the below prior line on XXXX. impact our Cincinnati X.X%. Sealite, compared interest adjusted X.X%. positioned reflect performance but a expected, while for had I later, year are X.X%, and Revenues year. review of to segment Revenues A performance, review revenues our and full with as In are margin our which year-on-year lower for the drivers, we from some overall pleased well a including to segment an items when addition results decreased Overall, Fan and ECS organic with the quarter stronger-than-anticipated tax we of increased accounted the our and in income decline acquisition for income the and higher costs corporate modest believe earnings,

Price expected. revenue modest for better by lower partially revenue, price This anticipated, headwind increases. was As decreased the margin offset cost to due Detection Measurement was & although organic a than quarter. it was

margins and full million with XXX the lower a reflect Segment we and basis cost a in the of year, combined drove acquisitions price income income For currently The be impact modest constraints in segment organic to lower $X.X HVAC, anticipate tailwind. blended decline overall revenue, margins. of organic decline revenue. and point in production a revenue,

quarter, XX%, Cincinnati for largely and our driven Let's of HVAC details increased acquisition Fan the In now our modest revenues segment a review increase. results. of our organic by segment the

revenue lower moderated Heat the While volume electrical income Adjusted overall across XXX due labor solidly partially decreased volume. by cooling. in grew end by revenue. revenue heating pricing largely pricing, growth and and markets, our strong our demand and on with moderate modestly offset and in supply million both $X.X strong to basis challenges, by in heating decline declined by revenue strong margin and in and segment impact primarily offset points. Organically, cooling with stronger is chain was revenue heating results

managing both a areas. X%. in a performance, critical year remains have acquisitions full in some were constraints while Measurement, ECS revenues Detection see Sealite drove declined mentioned, we organic these our & improvement factor to In revenues of As seen XX.X% increase, year-over-year. while and and The X.X% continue up

due also X% experienced impact U.S. translation headwind. a a dollar, higher-than-typical to the currency We strengthening

strong locator be performance exceeded delivery revenues. margins in anticipated Adjusted the As the case, to project points $X which Even contact QX we incremental income shipments while XXX margins. due the decreased timing the timing Comtech indicated early due the was our carry expectations particularly segment to revenue organic projects, for would and midyear. decreased revenue, ULC lower of projects transportation so, and to sales high initially due of basis of million, the lower decline for

the the quarters Measurement We we of demand year shipments. to Detection being expect year, segment to for and segment driver project continue see both we see results timing of continue and the year-on-year businesses. remaining rate primary our full project Overall, in the & For orders higher of significant income. run the

the the our now quarter. position Turning financial at to end of

million Notable associated liabilities. continue cash other to this we cash legacy and with inventory debt. included more quarter items various $XX operations our and strategic and with strong, remains reducing acquisition constraints of sheet supply chain ITL, balance managing Our to in investments have discontinued associated exposure a uses than

position free For in Overall, cash the to inorganic available initiatives. half strong with growth solid continue us the the a a place second to full balance our performance we year. of the of and liquidity sheet in cash and year, flow our continue anticipate organic bulk generated

reminder, authorization. million a a share we $XXX repurchase As have

when We our which the market share included allocation policy. place opportunistic have as of appropriate part on under program open may and engage in capital we repurchases a

Moving on to guidance.

full per our acquisition, year have we months reflect which share $X.XX to approximately based add on XXXX nine will updated EPS We to the anticipate ownership. guidance ITL

adjusted roughly our adjusted with EPS an range now guidance, exposure, represents amount by This share $X.XX XXXX offset our we to better of While increase compared $X.XX. prior from in current midpoint, the of removed of trends. have of included modest estimate the XX% guidance per We direct operational $X.XX. revenue at about a this $X.XX execution trained earnings

higher. approximately If As a million our $X.XX balance cash share be EPS sheet. on debt, per would we approximately our of $XXX midpoint cash to use repay have we the reminder,

As in always, you can appendix the modeling presentation. find considerations of our

have interest factors. closing review a for and turn of some Together, material on modest these other the his and will made our to end I costs, our net rate have Gene effect tax now results. no adjustments back We to call comments. markets

Thanks, Jamie.

chain, supply and including continue manage monitor risks, We regional cost restrictions. and pandemic to and inflation, effects of labor exacerbating tensions input geopolitical macro through the

seeing We boiler levels the pertain our our which steady. also HVAC, remain we our efficiency to market. on assessing proud growth. initiatives seeing future spending In timing and encouraged Paul. in new deliver platform to the end balance across we benefit We're pleased to AtoN labor benefit In risks. U.S. the strong related growth experienced for continued particularly order to our and our opportunities as macro acquisition These looking to cooling by non-resi needs. potential continue macro also products, setup of our and locator both lie point Detection of In customer capable, call to growth skilled growing I'm remains demand strength of while turn shareholders. demand team, our reach value ITL, remainder and about performance I'm our markets. and the in internal In a innovative in initiatives. as in And extends customers. positive comment by to demand strong strong solutions. creates for of on and our the now the continued our for strength I'll see to the or commercially in the board. provide and We're include the summary, indicators continue non-resi team offerings interest back Overall, they & to in our digital with am further encompasses shortage several residential from excited they Measurement, I'm recent year and infrastructure are focused execute trends and to level and a highly we activity, demand ahead sheet vigilant businesses. the and growing intelligence heating way of of which opportunities continues addressing QX I the communications also remaining has With AtoN better-than-expected over encouraged additional forward current create opportunities value the our that the for business,

we Operator, are go to Q&A. Thanks, ready to Gene.

the Damian first Karas come Instructions] from line from will question Our [Operator UBS. of

Your line open. is

evening, guys. good Hi,

Hey, Damian

out chain, little -- Gene, there? just more are you the you seeing there you're some you the struggle Could still Where mentioned improvement. seeing supply where seeing in of challenges bit still but talk signs about maybe you're a a improvement it is out versus that?

Yeah.

reorder There's host manage levers investing of Jamie, at what would I feel looking spent bit component market we what solutions, orders from is be I'd we've done safety that just data pulling want very in the one levers a Do managed, that say all is say of headwind time overall. here? the putting whole different seeing an of we to our I say in of stock, pulled. I'd been that analytics how from we engineering, of the think modest enormous with we've that high some of a improvement that and our are with some countermeasures would Shanghai. lockdown on our a at across what how little alternative But would have lot you color we we're and rates you combined terms be a level, the I'd taken give good right the this. we're some actions now that we've seeing China and in we've businesses. say in And of item amount a in place about internally

-- Gene. are seeing Yes, we Thanks, we some improvements. are modest Yeah.

in just there, If look with some back, chain cooling, labor really which some our I'll general we as felt prevalent you stainless and more well include our supply as components. heating in

have we side, hasn't D&M it really very the disruptions. well. caused On managed It any

that. we've operational to some steps Gene continue the that mentioned of kind We do taken. of

intentional stock. some about in. You in That balance safety of in inventory. on sheet some $XX of get ahead you'll to probably we coming potential Year-over-year, shortages we our that notice to million, areas -- was an investment some have $XX the try investment more million saw

We have from an not from have a disruption standpoint situations. lot availability of Russia-Ukraine

in China. mentioned You

experiencing We ocean slowness in are freight. some

we and go But our so our some again, than we're on to times modest diligent have times, And very to typically seeing, in the further be overall, case. order lead improvement. what that's out think be something would have I

it's at look a you year from If it ago, clearly challenged.

last in raised seen from issue have the some it QX call, at look first improvement you we If when there. we this

our And across making we also labor correlated, Damian, say I'd And somewhat the on lot some facilities. our side, are have been seeing of improvement impact. a countermeasures some

yeah, seeing So there also well. we're some improvement as modest

Ukraine. another back But you then at items by that time. costs up our last commodities days, go exception supply the significantly. -- look since we're if you are quite Russia cost, have about underlying invasion. impacted XX the that the look and been after still add, the might look pricing It's up thing first seeing in go commodity the chain, prevalent It's XX% in down, down. items doubled I Nickel and if over those if that you back And of year-over-year the some of are with quickly

Of course, up. is crude oil

So those XX is directly increase. some we're over some seeing come in encouraging. things the We're continued down other many which But last actually related. are seeing price days, prices areas,

a next That's good my helpful. to question. actually that's segue And

cost tailwind general there's, price to considering pressure the expecting actually which for is inflationary there. year, interesting you're that earlier mentioned out think, you think I be still a I

of in aggressive rest expecting alluded -- you're reflected costs that year? of kind Or is it I margin material updated have the of to costs pricing? through you to that what guidance? been you your And kind the maybe have So is actually think on just lower

say have would price, the been up it good for a the on got -- aggressive with We we've keep year, last to I hard I think price. we Yeah. some everybody, pressures, really but cost was of into cadence. of some

the with days the with power again, to often us We news substantially We've as up in reductions. price some the and baked pressure good products some better see costs, fact into XX was ordered. maybe in some as if go of is to customers gives seen there we some through factors have pricing availability our it. potential what up cover that guidance. taken pick looking again, point costs still That escalation but to base that's guidance. backlog we will. as year-over-year, the given over work commodity. even highly work cost the the because To risk engineered some We All backlog our said, marketplace, aggressive costs our backlog that through decline seeing of part some the well -- that is last of have especially some you been, on pricing have down, were our we're That about at

optimistic we're work still about of there's it, say but I'd So a lot to do.

get the I’ll Great. in for details. Thanks queue. back

Thank you.

from line Oppenheimer. from open. question next your Our Blair Blair come of Bryan Oppenheimer. right. Bryan, is line will All from Bryan the

will question of from come Sidoti. next line Ferazani the from Our Steve

begin. may You

good Hi, environment exposure, very infrastructure the about road into down particularly impact think maybe It of demand. how ask. demand you aftermarket to equation demand evening, wanted you construction rate Jamie. be anchoring? which I I'm But are and remains have to trying exposure, sounds where on non-resi on to know Gene, and like healthy. thinking you about the XXXX. in helps the appear significant a significant I environment rising risks

sure. take that. Steve, I'll Yeah,

would think I think, very about a say if our healthy I as you business, HVAC position. know, in you it's

of that, More is be million of and hospitals, business. that the of non-resi, data is than part this all $XXX $XXX commercial. million centers, that approximately a So would submarkets

the 'XX and XX% around the at about in in projections Index, growth look are latest 'XX. growth you Dodge If X%

there That Dodge indicators, positive. look the coal the be the architectural canary, mines the Additionally, more the ABI, would leading more also Index, Momentum some of the billings.

eyes good. So if we But feel I very we across our would Obviously, on say the overall, look have solid. keep our macro. I feel we to businesses, HVAC

as The the we're side, The channel of our overstocked, much other more hydronics boiler question we stocking understocked. good have there. wanting be we that demand at and on year. you XXXX is something product replacement. a keep to that always a big is the know, very to of channel position the this a business actually side, largely our is is there. eyes in portion for on our of pull-through sure make that, we our in good But the That's channel, ready like to chunk of And look is feel

I sit the and segment, what next when really So over HVAC X.X us. actually at front we're things are good the look years with how I of in seeing forming about feel

the it's overall is side, The very rate solid. would run On say I D&M healthy. very

are and supports 'XX. and up backlog would say see I projects I 'XX today beyond. well us strong Our And very our for sets what

out higher Some businesses, we infrastructure a some of and the impacts manifest. from bill And context, activity. starting larger some wins the see amount project we transportation also I'll -- have that of to some call specifically and have

actually I I when very at positive think I look feel So that's D&M, about where going.

with keep eyes I'll into caution recession, a all have of our to Now on. to we something everything were this slip if that's

our tend looked government when safety to at when COVID of be are As hit, products our regulations. products, know, mandated because are you we've by lot to a from recessions businesses in more resistant this also XXXX,

our are but businesses, the a less products across all there's That's And substantial not case discretionary. amount. of so the

headwinds. of some as reminder, a a our lot were first flat facing despite actually, the went of when So real earnings COVID, through we markets year

that eyes keeping we we if any that good. today, were to are happen. and impacts there economic where managing smartly And sit we is So if feel our on

there? question certainly prices as terms could that idea certain out or for that see the And I the if acquisitions framing there? environment for And then lower of use given What's pipeline. on do more there's you impact any Fantastic. in risks device maybe out the the

good Yeah. question. That's a

network really think our know, was pre, center, operation good strategy. really That XXth good XX monitoring fit. And got good been average our growth times That's we deals great XX.X ITL. deal. post. about times technology, They've our overall, strategic over feel you We capabilities. I X.X as a our closed has really

Detection we out $XXX below I $X.X larger strong I Measurement in today into build that incredibly these Detection if been We've think ago. particularly look much I -- we our changes we're disciplined neighborhood there. at of fairly in focused look right that. from in careful businesses, see now, you million and some here least feel at don't really billion. & very at businesses, us so with, front you if at years But higher get spin. as where seen balance are know, what at the sizes, pricing. the and in we've you see We good much, multiples. actually about That's We're our & of HVAC sitting our time about And of sheet. an Measurement it, platforms. sitting We're X.X about

there's the doors, have see is bolt-on attractive that say really there. we're is some a really there or our We really in we nice of in would quality, areas say & for opportunities front there. good I'd performing which cooling which building. -- Location And some And So of platform. continue opening be well. synergy did there actually engineered opportunities we our opportunity our Comtech business, amount then see I'd some We to last the seeing first I'd an we say Inspection air good adjacencies year, as us. activity and opportunity growth see where the opportunities

there. good, So innings in our we those feel the really we see us. front platforms like we're the early some say, feel three opportunities of value creation overall, be, and But I'd would of of model that in attractive we

color, for Gene. Thanks the Great.

Sure.

next come Seaport. from Liptak of line the from Walt Our will question

begin. may You

evening, Hey, thanks. guys. Good

Good evening.

macro right sounds would is the It I direction. the ask like in like going first about to So business. HVAC the

the or projects thoughts the Is belt, out that range? point, high that how guidance could So that part of queue towards up range? under three-four months the at there? Any filling the enough now our this there mid-range got enough you are be there, you about are we've macro feeling

And about? you're Is quality Cincinnati about you're talking specifically engineered what talking Fan? that or

-- I'm sounds the And the the the up? a like wondering, is, just the I'm us about talking million sales. projects end filling macro gets in million yes, that end maybe $XXX the right whole. are And sorry, the no. takes range? in guess No, HVAC how just what to HVAC is $XXX as segment to low that And us question going the guidance high of direction. of the I range? It what to

Yeah. EAQ, you'll demand And I don't we Why start feel side, backlog, good bookings profile our winning there? as past the the there I very, strong products. and would thought the of quarter. and are demand value we've them And newest say where we're demand on in the product engineered seeing I since air proposition said our very we in the as well line, see market. our about taken you very also our quality, over as

door. going not the us to be orders. is getting for the out It's going the I constraining be say would factor product to So

Paul, so And more to or color you want Jamie little ranges? on those give it take what a do for would kind of

chain as take might I slowing would lower -- But able the the in to say the labor productivity the economy range the us in we able to lot complete what supply really, labor labor us think the to and we'll said, being get those. be to difficulties the pool, macro end. so get of booked, end slightly. orders a do of I'd obviously low have a Gene to of is Yeah. But take

as I would the think going we us higher positive a in what same take the -- factors end direction. really to

move build some And availability, chain key see improvement, we can continue to I to were think I down towards direction, of labor we're some prices a some to of top-end. positive components see the our that think some with momentum would that in if supply us. with the also i.e., would continue that help we see move beginning if us

some costs, constraints of through perspective the from current that's current put was work is we have to got that but a now some the some One pricing back fall. pricing, we in do backlog margin place right have in that

potentially some upper us see would costs that end. clearly help move we as move So of our towards the down,

do that. Thanks And attribute to Great. that What to? And is the for sustainable second segment. second in that's half? Okay. D&M you quarter, switching locator something the growth the over

Yeah.

Location that & platform. I feel good think I Inspection, really about

more would that's, would As that's penetrating Measurement, radar dominant I XX% Shanstead platform ground very just as half say in have done of well or our our our brands, you than as locators, segment. which let's include say, really of -- know, Detection & our nicely.

and digital introduced solution last that we I double-digit think rolled that go the seeing well, I going customer. good cloud a We've amount very that I had If activity year also on year offering new there customers. our our brand, where offering other there we a it and even continuing done won and on think interest good good done moving they've and some CUES we to with really is really underground we're with digital. out customers. for they've largest innovation, we this robotics, That's digital strong And a very have faster. a of

opportunities So see us. we are the front of and about in I very good feel where there we overall,

Great. Okay.

could in would we Okay. If the that XXXX? do project there orders do you shipment And timing see you work a there's be? mentioned end the those D&M, also for the at of good the think year, projects. be come What funnel in, for

to but business. be say increased flattish demand that Comtech the of So year, then been of nice some run are, the if has say one would likely would a some seeing transportation it. I of. we is -- that $XX for we has can nice we're of of rate, would on look today, the the revenue be progressing those there. the say And business think tailwind then at in seeing I'd we've large the one, it's we That say, been and I sit that million -- called then projects, very be impact, more bigger of a number has have we there. of currently -- could our just transportation very $X seen for feel and -- I been the awarded been say. business. for activity good the call And we're a projects. where and ones on combination would verbal of to those, we're project about going We What more process be uptick million, nicely plus, a has we or would similarly, on our the you we're I those. in profile the this out and $X projects in let's see really XXXX midsized that be some megas, XXXX, of a But it'd terms what And that very several in we've larger these tick that booked And growth that million

is so tracking we're And something this as well. that

So yeah, us. very feel front as have a like feel that think 'XX, we the and to good be ahead 'XX we we about. going tailwind And us we to we then in XXXX, look for projects of actually for that's

Okay, fine.

Okay. Thank you.

of be follow-up UBS. Our Instructions] from the next Damian from Karas will line [Operator

begin. may You

Hey.

Just a follow-up few questions here.

started give you quarters, So or that building was recall could backlog calling you just I if out? working could the there. -- the out you an update few Have us you last still backlog. wondering down Maybe

I say working would we're sequentially. it Yeah.

here good. backlog XX% to example, our basis, on range, an which up out our taking As backlog organic was -- acquisitions, XX% is sequentially, an

get to backlog. we're some able So through

Coming profile our new with really order QX was in actually there. we the an that good our actually I sequentially orders. strong about us of demand into a business. feel the the side backlog order really flat pretty strong good in demand of moving And a quarter as is heating out makes example, base think replaced quarter news

And is I order book say good. so would

would down have do still labor working backlog rapidly we solid But it's we're productivity of are as from and we growing We the because demand the as components. like. not and on so some some I'd more production. constraints But well say

would add impact there amount Yeah. COVID And in January. a pretty of also one fair is I was thing

March and currently amount of backlog. if quarantining we in at challenges And disruptive. the So if April, and that rate you down more look run of and it look the at very working you we're are that there, of at February the tracking was some

believe there. actually a favorable we trend we're on So more

So end to make that I grow. did dent backlog. it winning we're But starting the still in think markets, we and are a in

-- still that's business it door. lot a progress So to bad. the but I And news, think good got you good win The you making get it that. accelerating is the out of towards are and news, we

you Got EPS. of it. deem pay the you carrot kind repurchase this million if mentioned appropriate. down $XXX you of on dangle then, And authorization debt, you And out Jamie, that's Makes $X.XX additional then of when share there the sense.

just guys, So the Stocks corrected appropriate is you a I'd good time? bit. ask when

the on When cash sheet. time? balance an net got You've would be appropriate

Yeah. That's a great question.

like we've have high. feel watching good about from We its lot look, the ourselves. it. that feedback off Stocks of a folks, and We been share XX%, repurchase a in has down stock XX% value

We -- have have a authorization. moved to only the not do we

it be. the execution closely, in some hit the we We've in price number place. all if open we'll and what And watch have mind in got we'll about We should those. market mechanisms that be targets our

what of I have particularly really We than have our that today, of that in here. has on our -- very we also some since more or But the balance be as as to price good say, focus power, billion really And with the we have disposition investments as of completion the I know, -- been vast investing growth. the program. think know, And in for you bulk And $X addition share our particularly but is we our allocation. think Damian, flywheel we really actually still our have allocation a portion attractive spin of I'd is our a segments. And will a it's portfolio very terms with logical capital think repurchases of sheet. to share growth, where I that logical think is capital you in of

Have again. a great evening. Thanks

You too, Damian.

Thanks, Damian.

not I'd for Paul I'm the remarks. questions further Clegg Thank you. back the in call to queue. turn showing any over like closing to

joining we for to next evening. look forward everybody, a Have you, us. Thank quarter. again catching up And Okay. you great

call. This conference today's you. concludes Thank

have Everyone, a disconnect. now day. may You good