PH – Quick Take – Live from the Truist Securities Industrials & Services Conference

研报英文原文证据摘录

PH – Quick Take – Live from the Truist Securities Industrials & Services Conference

revenue by the end of year three

post close. After closing these deals, PH will be a ~$25B revenue business in a ~$150B total

motion control market (i.e. still fragmented) and management believes it still has capacity

for acquisitions (although will remain disciplined as always) with management time/attention

5 Page Document a bigger constraint versus balance sheet capacity.

Seeing broad-based industrial improvement and expect order growth to soon

Reasons for this report translate to the top line: PH has seen six consecutive quarters of positive Industrial

order growth with broad-based strength across OEM vs distribution and longer-cycle versus

✓ Truist Securities Hosted Event Takeaways shorter-cycle, especially in the two most recent quarters (where PH saw 6-7% order growth

✓ Quick Reaction to Newsflow/Volatility in both Industrial segments) which PH expects will continue in fiscal 4Q. While top line

growth has lagged order growth (~2-3% YTD in both Industrial segments), PH expects order

strength to soon translate to revenue growth and expects to see continued revenue growth,

margin expansion, earnings growth, and free cash flow growth in FY2027 after an expected

record FY2026. In International, Europe is still soft while APAC has been promising (strong

organic growth last few quarters which PH expects will continue) while LatAm is stagnant

although represents a LSD% of total sales. PH does not believe oil / energy cost volatility

is a concern as the company is able to effectively mitigate / manage similar to past issues

like tariffs, labor inflation, etc. Overall PH continues to expect to deliver ~35% normalized

incremental margins over time including in FY2027.