SPX (SPXC) 2 Aug 232023 Q2 Earnings call transcript

Good day, and thank you for standing by. Welcome to the Q2 2023 SPX Technologies Earnings Conference Call. [Operator Instructions]. Please be advised today's conference call is being recorded. I would now like to hand the conference over to your speaker today, Paul Clegg, Vice President, Investor Relations and Communications. ahead. go please Paul,

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

Relations and a section as well in link to live You spx.com. of presentation the our can as of slide Investor find website at our earnings the call webcast release this a

encourage disclosure until the I of release and of X. August GAAP our with you follow the during website replay to A webcast press the will discussion prepared to review remarks. presentation slide be our results available and along our in on

and the in risk harbor forward-looking our reminder, subject and of filings. safe factors note As a SEC provisions. portions also recent comments are Please most presentation our to

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

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

share earnings strategic discrete changes, items. Our certain transformation expense per pension items, adjusted acquisition mark-to-market primarily costs, amortization tax and exclude non-service and

the be that, I'll and Virtual turn the Finally, with we in over Seaport with And Industrial Gene. York September. the coming conducting months, Conference the investors Jefferies Conference will at over at including August meetings Global in in to New call

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

guidance second consolidated update We'll an the for segment On also provide we'll the year with our on call today, quarter. XXXX. full on and update you results for an our provide

XXXX markets approximately HVAC strong strength $X.XX for performance outlook, adjusted to to of our was year-to-date segment. range execution, midpoint are performance full across outstanding. a EPS particularly were our by at driven results year the XX%. $X.XX our our This overall raising year-over-year QX we of strong reflecting guidance and Considering growth in demand and end Our

new result the our our segment. in which performance is durable creation quarter initiatives, driven this of of part have value a on in hard success Our level in margin work resulting HVAC improvements,

look As initiatives on see value to opportunities continue executing we to for ahead, shareholders. drive these we further significant

Turning to high-level results. our

the XX% performance operating HVAC and grew with segment. with of XXX both XX% HVAC & Measurement. contributions strong by from approximately organically we For grew our revenue Detection primarily margin reflecting basis of income strong the quarter, Adjusted year-on-year expansion, points

of feel ability I'm very our pleased and trends XXXX. and a to positioning our XXXX year-to-date with backlog, solid per $X progressing and strong confident our and remainder in adjusted for achieve updated share of continue I target performance EPS. performance, operational QX our our order guidance overall of the With excellent SPX towards to

you our always, progress on like As I'd to value and framework. creation update our

new cooling And on WaterGard, can continued During our QX, progress initiatives. business key optimization to significantly we water initiatives, usage a several water our SPX products. our called evaporative saving Marley which in cooling reduce and introduced make product system

condition AI-enabled our cooling the improvement, to of in of digital, wastewater we drive Olathe, new layout In of helps margin expand the operating and to for benefits plant Kansas, optimization GraniteNet performance. seeing facility and of significant customers Cues' software, inspecting water customer continuous our In levels continue automation adoption from investments efficiencies in is our assessing when which and assets. reach

work and while of team more efficiency our the customers' I'm of we ability progress. needs the very our hard pleased across have greater providing to our are continue our with supply and driving see our been shareholders. opportunities higher company with for returns numerous changes The to making improvements durable

financial and to guidance. to over our results Mark And now I'll turn the call review

with covered In for our earlier quarter historical from year-on-year XX% to are grew adjustment strong very QX, another was our results $X.XX. consistent The EPS It Gene. practice. SPX GAAP Thanks, Technologies. by adjusted Paul,

and company increased segments. Acquisitions year-on-year, a headwind. and HVAC X.X% organic similar in Detection growth our growth, with was revenues contributed & both Measurement including Total FX XX.X% XX.X% increases modest

Segment points, driven performance Price/cost tailwind. a income HVAC. operational million in grew by by $XX.X basis margin increased while XXX XX% remained a strong to million or $XX.X margin

segment, For the XX%, organic revenues grew year-on-year. by roughly quarter, grew while XX% in organic an driven revenue revenue was our basis, HVAC On Cooling, heating's flat.

increased Acquisitions FX which of million segment and and our by month basis a margin increased was full Segment drivers. in platform. XXX of contributed a number X.X%, income points. a has in growth The of and margin heating modest quarter our segment HVAC increase platform X included TAMCO ASPEQ of headwind. cooling income year-on-year in $XX.X

was by cooling strong to favorable backlog our of automation in execution more level and stable high This labor plant conditions. operational a continued continuous aided business, and our achieve chain by In supply facilitated we plant and a investments improvement. throughput

to By comparison, the and quarter, experienced labor year chain, supply in cooling headwinds drove prior lower than related typical margins. that price/cost

due channel year-on-year price/cost to income and primarily For segment heating, favorable mix. improved notably margin

Aspect segment TAMCO were our both margin. acquisitions addition, to and accretive HVAC In

from Bookings ended despite remained including an record $XXX sales, backlog HVAC $XX strong million, XX% On organic backlog quarter sequentially. acquisitions. million at basis, segment QX the was up

and Detection quarter, XX% segment, platforms, AtoN revenues were grew our the our all & year-on-year project from strong growth across revenues Measurement CommTech, key For with in organic Transportation drivers.

less XXX favorable margin by $X.X points declined mix. due million, sales increased income to Segment basis while

& Detection our margin. incremental project As in XXXX includes that sales platform than our content, have CommTech noted Measurement certain typical a in resulting previously, contain lower revenue we pass-through

constraining experience in limited is of a supply a one-off addition, that began QX, we disruption locator products. In chain number sales of to

million, during the timing normalization are confident quarter We sequentially have the a end of was to due to solution implemented down of project backlog and address half. issue X% $XXX at deliveries. this production Segment the second we in

experience environment to strong project sales. a we Overall, continue for

at the with cash Turning now and the of debt financial of We $XXX total to position our the ended quarter $XX quarter. of million end million.

reflects of completion sheet the balance the acquisitions quarter. X Our during

flow net Aspect, more the of we leverage we deployed us in our remains growth. X.Xx. the At target to for continue and majority at to in year-end we of this point, our lower X.X leverage second million X.Xx range to positioning QX investing of midpoint generate further of anticipate a of X.Xx our decline level in year, cash TAMCO half While or a to approximately the than the modest or typically by below $XXX as acquire

Moving our on to guidance.

approximately We we range midpoint. are segment, increasing our $X.XX. XXXX for at guidance revenue EPS of year-on-year new to reflects our growth XX%. to $X.XX In of adjusted the midpoint approximately a HVAC The of XX% anticipate growth

for of are approximately to HVAC margin a XX% with segment to XX%. raising We XX% range guidance income prior the compared

anticipated performance the in HVAC basis and HVAC a execution margin chain increase This demand strong revenue the margin combination and represents than easing year-on-year a The backlog, for XXX of continued labor high conditions. plant reflects solid and benefit supply of operational of level at strong more points. trends,

margin would in second of compared income XX.X% we sequentially our XX% In to our Due in and million both Detection QX. the approximately segment resulting $XXX earlier, of Measurement increase of to the favorable of now approximately QX less guidance, & to anticipate midpoint. mentioned $XXX With or anticipate half a margin a we segment, of income to expect X% respect constraint segment mix, cadence supply to with rise XX.X%. year-on-year the prior we range in a million revenue range at chain

certain items. with in However, primarily QX, QX expense acquisitions interest we to be timing associated of the EPS due would sequentially costs to and corporate expect adjusted lower than higher in

As highest year. is quarter QX EPS typical, adjusted of to expect we be the the

always, appendix you'll the modeling find As in presentation. considerations our to

closing our I'll comments. markets review back a over the of now turn and end call to his for Gene

supportive to our stable the demand remain products chain conditions market of In Across continue North cooling, HVAC been America HVAC Current level region. which us growing and Mark. improve more plant overall, in helping is our for segment to we supply efficiency Thanks, our have see and APAC labor, outlook. throughput. and

& and In our commercial regional In bookings environment strong. steady business, rate orders Measurement, for and while replacements. is some demand demand industrial driven overall, overall, our project with remained run by variations the remain residential heating Detection steady

and results with I'm our year-to-date. strong for pleased the quarter performance summary, In

profile. gains focused margins key helped initiatives Our on durable creation our drive our execution and value in growth has

for improvements I as execute significant road forward, opportunity map. our see Looking we further on

solid We also M&A generation pipeline. active to investing balance given strong well positioned for our growth sheet, and remain cash continue

and at to Paul. back feel updated approximately which in With reflects year-on-year confident full guidance, the our position the good I midpoint. growth And a call operational turn momentum, backlog with XX% year strong I'll that,

Thanks, we go are questions. Gene. Operator, to ready to

Instructions]. [Operator

Our question from comes Oppenheimer. first Bryan Blair from

Another I great quarter, guess.

Bryan. Thanks,

you the but in if side that your margin, curious or your contribution, can or offer whether the in could that deal some the little has hoping parse you lift is legacy was incremental ASPEQ, expectations continued $XX out thereof? if I call per in for HVAC on asset sales million or drivers, the increased the operations XXs whether or combination portfolio coming is detail We on in TAMCO guidance. so of again step-up which high-level now a know high more

Yes, run income made that. our applying think Bryan, and a system SPX our the back at through let's enterprise, And and at segment we've high margins been step at first look a we business level level because I'll the across positive it's impact.

they chain, labor, had that should lower XXXX, If what Last XX.X%, been. it with was year, were a thought are XX.X% bit supply you segment XX.X%. back, XX.X%. little income PPV, a was step of just we XXXX, margins lot our challenges We than there have

XX% is at where segment income And margin. today we sit

X in So steady XXX increase, points years. basis basically

that to believe is sound. our and our me says system, is strategy I working, I business what So it's do in believe think do I

specifically, is, to about XX% So thought if we drill down into we've think business. historically, way the as I the about that a XX% business HVAC

the was as right year, a had by Last up improvements of we talked XX%. again, the plant some lot layout XX.X%, But masked under these year, some a of at in of that and of think headwinds. lean we And ended we headwinds. we in about equipment automation we last made investments the lot had around

growth. things ended you look at in if operating couple where A XXXX where of XXXX. are have having leverage. we to improvement. driven We're One is So

that the impact I've for very sustainable. The that really automation, talked positive and investments and business, very, lean are in about productivity second is very the are making an investments

then about. brought those just acquisitions, which the The supply be basis target reduction ASPEQ had the and accretive pleased up items. points. third last add TAMCO, And structurally some year, of income segment labor we have of XXX did is we probably very of issues some think We our types we're those of would chain,

XX% the right So a forward, volumes we target today, XX% sit think that for when before, it was see. very looked XX% we Where going is we to XX% we the at we us thought target. to sustainable

significantly good business, we So the HVAC improved and that. and think about we feel we've structurally

be would how I that So that break down. [indiscernible]

see we so flow for expand color. at Should ranges, be over year, helpful have further as comprise XX% that high that platforms least going to the that that this I continue continue time suspect The the for deal continues, time. fine-tuning accretive forward very to the normalized of will end HVAC you'll That's being. scale,

you can curious incremental offer Just there? any color

Yes. of PPV with little being And we things I think are some headwind and a year. this this that one the of I year things positives in bit think year numbers some of were last a negative, saw -- our the

to look So at what's the I trying jumping is get to right when the question, you obvious point. think off you're

There points up points. margins that more anything we this add this improved Mark, good hundred several XXX structurally to type could you'd here? in be items like but anything one-off the those we to basis feel year's have segment of of very results, basis

Yes.

forward. mean, add we're to going from we a comes to I stable kind on up, in we comments, or believe believe cost think that's more price do it normalized a the and to be environment, I often a because Gene's going perspective case of

of look those key both X So ahead, the drivers sustaining maybe as you and really improving in margins.

that. It's the We're we're do be in to that. plant around of early We'll capital stages the to of some investing in that the continue going footprint.

that's see You'll in year. comments those should efficiency just a CapEx whether that required meaningful for our that -- we've going the And driving labor reducing increased plants, see in difference made you make really throughput. or to the that's it in

quantify improvement structural of being the factors X terms out to now is moderation -- in are much impact from mix to conservatism the contact you Very quarter there called D&M some already. headwinds. affecting near-term half how helpful. like Switching I supply the the and guess And some margin within the back obviously of constraints outlook? into and evidence the you the relative was Could pass-through compression of locators relative baked both negative seems chain in

out supply supply a in with of what a respect we isolated on is but both. heavily Bryan, would chain combination Yes. mean It's I kind this I is probably chain locator both. say issue of that weighted both product to combination the that really was to issue called nature. line, more of really it the temporary

I think to a it as one-off. you referred

expect project margins. year are to income we but from And called have past is dynamic That us lower that as not the benefited a the historical recur. has we something out than obviously, mix standpoint business that those an margins is this D&M slightly at projects, the in

next comes from William Blair. question De And our Maria from Lawrence

A Larry of questions few couple here. here.

it First, the have more have last price amount to does at, HVAC think than more volume? with -- over thought fair is still inflationary? price you XX% where break and me credit I And got a down for you you're price how Do room seems pricing in in growth, looking maybe you on to next that positive HVAC, power in the few go Or the in years? that we coming years. you think of

I why pricing power. on don't start Well,

you I businesses pricing we power in pricing think, of said, we believe some we we divested of the did the old power have that feel & our look and our transformer legacy if we business, not Detection we what businesses, do our Measurement. in our The really businesses. had portfolio at HVAC

our think we that, and sit are is we're a don't balanced where . our We markets. Having today, prices aligned said think coming in think And competitive We position. down. high too with are we we

the the question. on -- volume answer On I'll price

in a you more between fairly HVAC price. more So being heavily being for And that's in look the little was balanced weighted price, SPX weighted. it volume and of if volume D&M with price terms weighted at quarter, and total, more

guide probably that's XX-XX be and growth implied like more the more getting our If full with organic you volume, and to for look year It's at going look year. bit our this terms of the in organic on for you the is still you comparisons. guidance at price something the us as price later half -- get a into front a bit comparison weaker. the to in the in little price in little of where year, tighter year prior it's quarters, the full And

to want ask boilers. about I Okay.

seeing companies guys. seem case for in be you weakness boilers. doesn't the to Some are It

and guys are seeing why divergence you a not any why market are what seeing that just others So seeing? guys clues there's weakness you in and are kind of maybe the the

trade boilers, have strong very a band, position Yes. I I we mean think very in hydronics, our strong.

there's we have the this backlog and I to is products past Most position, year tremendous and think is our What been that areas. that X, demand, of working a order. tremendous what engineered is pretty over today the or backlog. seen are few through balanced one we of see

we information what So resi pretty where they're our boilers, have we it's here is we go do through and balanced, have they're go less whether is good balanced. see where for pretty today channel channels we about have And understocked. do a overstocked, whether we

And NPI share initiatives I last last The our been been healthy. year gains that's the X taking other, rolled was share. at non-resi successful, which The resi We Eco-Tech, believe very the do have of it's of on side. of year side, talked product the on the We course, year. residential side. out kind our

the or business taking believe tonnage. has well. their footprint, side, commercial On Patterson-Kelley share And non-resi our there some we as expanded their we're

like we're business, when I back feels hydronics it business, So say is normal. what look boiler at the I the would to

have factor as QX, of will like look it's a normal it QX like that market not the mountain business have shipping. as where of you're kind in towards that portion We're and our for a And booking the on size business does where usually a but sitting weather cooling market. residential of and determining we backlog, you

we seeing yes, what comfortable feel side. on with the we're boiler actually So

I I and or capital-intensive in seeing That's good out there If weakness more some -- world that more more on. big pass stuff, suppose, big X to industrial orders. just color. be Obviously, it sneak are in and projects I'll could then some tends around the hang up there's there

through economy weakness? there but to industrial Or the signs any troubling, around How don't get quarter? weakness are. trend out comfortable color of that's the be more anything, Anything you any the guys seeing we that did of seem some yet, orders can just others

I overall, segments. say, good. would across break Larry, it the we Yes. I'll feel down

cooling HVAC strong, -- a where there of is lot projects solutions the the we're we side, very On are seeing seeing business and are our well suited.

business batteries. also there EAM We're air some or activity engineered diversified If to at but our areas reshoring going seeing particular industrial. generally semiconductor, data look some centers, on, That strength be tends movement, be a would that's healthy. of I

substantial believe, pharma, One into amount institutional of I of the they a businesses medical, next way heavy pretty have year. in the all is going backlog,

the we boilers, booking some our the talked has business, the has in On solidly. about which been very actually heating heating business megatrends probably business, best electric of

the the it if say more We strong transportation projects. on transportation, I D&M they're to about AtoN add hitting would not much if I too we're want seeing switch little a run data? and side, year, our to but visibility. into And you'd add, particularly steady. also our to then you are see and this infrastructure down, Commtech, on but like next strong the limited break year, I numbers it looking the our The color talked projects very rate's elsewhere. Mark, business, we've bill, anything

Yes.

strong, put of really we're a to, I basis, of I segment, platform, think alluded I the the in look On you order very at Gene orders, entire company total HVAC high. mean, quarter-over-quarter, strong when kind Larry, but sequential positive been it the seeing they've as growth in across growth.

from comes next question Our from Ferazani Steve Sidoti.

in you question, is place, feel or last the which a is one it locators. environment, in slowing the up D&M, might follow to you've on typically, said environment recessionary particularly wanted economic Just a briefly Gene,

issue that now supply your locator right are change demand seeing you locators? like sounds only chain. is accurate? it But on kind And any Is of

I'd steady. rapidly. say is the some back it's that We're But growing say seeing No, wouldn't actually I no, we've had. locators anything. half what on we're optimistic recent of see the about don't wins it's I feeling year,

laying a are it's whether obviously, houses canary economic question through buildings you're because or can putting good whether think I coal activity because lines, whether the mine you locators so you're new much there, goes be building the gas in refurbing. or fiber,

I would it's add? to it I would touches but flattish, year. not So lot, -- you'd steady Mark, this high been like anything say but a holding [indiscernible] say,

I that's seen our think haven't X really and right. in it businesses, mean markets I of Yes, the global weakness the though, is world all more we participate around in. they that any

So...

Okay. is guiding for in start and not or run accurate down expectation you're the flow soon. paying Is anytime stronger just the that cash numbers, leverage But you debt half. your when second not? I noted When through . to

pay to Steve, we flow the that we that we throughout No, bank using free year debt debt outstanding. have down is It's prepayable. are All generate our all cash debt.

to So flow free down we will continue to leverage. use cash drive

come debt EBITDA. leverage increase denominator of from repayment of both from down in see and the course, you'll the an perspective, So

both working. you of kind [indiscernible] So get

any to if When us what think about the I rush debt on like that? in you term. looking in be Is is Okay. provide that wouldn't to to necessarily of read-through going on does acquisitions that pay the clue down down because near for there market debt now, you're kind the any pipeline pay

through read I anything wouldn't that. No, on

But of think use I capacity it to right context our in a best of down pay ability the of now capital support through transaction our our the think leverage the debt. and market. I to is

when capital right to So we've of access transaction got [indiscernible]. the plenty

Which is million. $XXX

Yes. Exactly.

standpoint, in a from we've million $XXX a we that's size. -- got have So liquidity revolver

away, there we're can you're maybe about Do what you target, seemed it assuming EPS, XXXX ago, a with like you to closer. closer get a now to years are plus, additional of you seems need far now lot When X getting get this getting on we acquisitions? -- you $X Or even have? couple the think But you your year. which

Yes. Steve, this Paul. is

update point, clearly this at looking think of couple this at here. we're we're I on options metrics construct. above or to And replace different So a

the make Our current guidance thinking February. to that do in the in of context that's most is sense going to XXXX

XX% I top is with guess maybe line. and at kind And then what on we to talked the at around the typically double about digits say another model associated have acquisitions. line you of we bottom have mid-single we grow that X% a where organically or

So we that. do

think So within is saying we're I we're feel way that I what safe that striking one we other. the like distance or think of

Perfect.

expense, have I quarter seems third in guidance, indicate be the aspect? corporate think the about a expense clearly in Can of you you it sense in costs integration in half. second like versus XQ it up. the very given half, the you corporate just large half But indicated expense us may particularly particularly on corporate give had some would a first your deal trending first lower you appendix, guidance with

Sure.

half year. an was on here, And comp the without the and about So corporate second million in the of $XX.X line expense our quarter the quarter. Steve, the first in first stock-based XX. basis, adjusted That's the in million $XX expense corporate with just talking I'm

So actually, actually a were was into expecting into XQ it some to up originally between of half, little will that going where go QX. the we're the QX anticipating bit. XQ costs we be and little second a It in

little be a XQ then best... higher. our And is typically will So that bit

Our Global. next question from comes from Seaport Walter Liptak

like too. far me did that away. And it seem XXXX, that from was Congratulations $X

up ask so on that with And about you but dead us? wanted supply progress. covered, questions the from -- size could I the wanted for but horse, a a with the third been beat was to push there lot quarter I sales? constraints, making to locator congratulations that wonder into the I second of on already all [indiscernible] if has the a

so well. impacted of in and by this of was Yes. at product resolved half will been largely back go obviously point, will that year it the we it's as but this that chain some year it next ship issue, supply Walt, that into

'XX. it it's -- sliding into So into be will sliding of part

maintain share it just any were out like push guess? I able wasn't to anything there that, Okay. And or and loss then -- you it

timing Related issue. a just it purely was to that,

then Okay. provide Great. I the in as And D&M, transportation. usually could funnel? Is city maybe wonder few projects that Is that talked you are more of think infrastructure-related? orders. you this about in big a just project that I details. if

is projects, we which couple these do X areas believe When very that's that year, Yes. over years. demand we are a looking seen X transportation, healthy the behavior. One for just talk I change area have the has say our that of we business made they in about prevalent. but most ahead next also would this the infrastructure bill in

are lot there. just a more activity We seeing

So I'd real say that's positive.

typically The in feel Commtech we that been into other in wins 'XX, we lot a steady. and business, We've projects is see 'XX, very looking 'XX, our those have good. of had

So I the the volume, say do X it's strongest been to think just portfolio in would I among and seen X project we've expanded X I've or nice these years what have our And see. we're years. yes, overall, offering, of

Karas from Damian question from comes UBS. next Our

basis there of few have take thought get a quarters, those expansion in year goals to after points us just being to XXX to basically you today. would margin Who from needing XXXX this

So played. very well

Appreciate it. you. Thank

Yes. Yes.

again I would you into with that say strength growth in sales got it's that XXXX? today curious, visibility demand you're Gene, you've got the you already So lining mean, think backlog the organic up such continued plus that you've seeing, do

to, but our orders, What about what backlogs, and I what probably would we're as is would 'XX Yes. we projects. seeing. our guidance, premature Mark say And alluded give our feel say, I good to it's

quarter, is backlogs cooling big a too portion the HVAC really quarter HVAC and at great look shipping a again. You went up great of had

there's mean even opportunities. more I and --

are we're And there very that think would to back opportunity feel growth very expect couple attractive years. I what a the I feel the on electric So we say is good really on on the next I -- side, there's It we the then heating there. the out there opportunity on the heat, to all cooling would attractive. of are hydronics about the over growth due boilers. that And normal more like and side, drivers

been I the we'll a we talked run strong, the what place over on holding to say in like the still we would keep D&M our then we've would it be Projects be were D&M radio that rate quarters. -- in couple strong. run And eye talked on and recession, first in see the have have We rate. particular, detection. of past would there we the see about our If about

But where what now. markets I as I that into seeing not I XXXX. sit feel seeing we today, I'm the like in we're So end go

Good And be about we shaping strong seasonal to HVAC always quarter. margin should hear. Historically, I'm the curious was for forward? how quarter going the fourth business the a thinking

cooling boiler due kind it the point? of less seasonality. this -- heating or think, of I has with But more at parity kind is at

that some with just for of like what's And the new look acquisitions, seasonality HVAC?

Yes.

heating somewhat we'll to the quarter. demand think, more fourth the I seasonal quarter be still Damian, towards fourth of the because we'll continue have in impact that

look this still the at fourth for of the year, we the you be the to largest. would quarter So example, quarters expect when shaping for

good run But rate the ASPEQ brought a think million. blend you the you $XXX And on I the guys basis, bit that do numbers seen on bring acquisitions, around point different. was is up your a a all little have rough

of at distribute wrong this that rate it's kind you point. evenly or it If run probably at across not quarters,

TAMCO is And And sense. than for annually. probably the there I more moment, make $XX million same thing think the would doing

the think So you're to case. there XQ to going margin those with still but puts takes respect quarter-to-quarter, performance in stronger have and I at of the seasonally a any looking -- you're businesses

of when as work schedule. highest in alot typically gets is well. cooling That's And QX

those new I this you the learned going thus of gone? the then Great. anything that performing Have didn't environment? could Okay. current business acquisitions deals in maybe you integration you into necessarily deal been just And year. about ask if your know and far how kind the has How has

a do I say, It like air models. to lot I But have. already I would what that integration would both of it's easier really an track feels is, there. Yes. TAMCO integrated say, plugged our one movement say right made being the Damian, in and engineered are deal we that's early. on progress into being there's would sense The that's

as we've what about, more we're some heat of electric together. and positive about We're time. very, would the view. them. X a businesses, both I say has And It Whereas great actually takes putting X complicated. But in we're our really taking ASPEQ, little very bit those businesses, talked is nothing changed that's

opportunities think also large, which heat we the now you air us sit, quite which our out really about very side very continued to business, for if Very has impactful movement, our of frankly, continue engineered like become for impactful has opportunities electric build scale. M&A the where us. as And the as become to well

work I results but yes, wood days. of The chop. are So a of positive, lot to of us and a ahead lot still think early

I'm conference no further the to at questions would turn this like Paul remarks. Clegg I back for showing closing to time.

Thank us and conferences. We for quarter at joining Take to visits look forward the the updating all you call over care. today. on next review you investor on

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

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