Hubbell Incorporated ($HUBB)

All right. We'll move on -- after Jamie's scintillating fireside chat. We'll move on with Hubbell. Joe Capozzoli, CFO; and Greg Gumbs, who runs the Hubbell Utility Solutions business. So a great one-two punch here from finance and a real growth business right now in utility.

Maybe just -- Joe, maybe just talk about the near term. You guys are mostly U.S., but I'm kind of just getting the Middle East vibe from every company and what you guys are seeing, if there's anything on the radar from that perspective? And then just kind of a standard update on anything you're seeing quarter-to-date in fundamentals.

Sure. Very, very heavy U.S. presence, as you pointed out there and limited exposure to the Middle East, a little bit of supply that comes out of there, aluminum, the shipping lanes impact us and ocean freight, things of that nature of tentacles, but it's pretty limited for us overall. Generally...

Are there -- mic, maybe you want to get a little closer to the mic.

Yes. Can you guys hear us? Okay. Great.

So...

Is that better, Scott?

Yes, sir.

Okay.

Overall, strong fourth quarter exited 2025. We had seen a really nice inflection in our incoming orders, primarily in our utility T&D business, which delivered a strong fourth quarter, was a good setup to begin this year. And we've seen some really nice momentum from that incoming order rate, utility T&D, data center, light industrial, that momentum has carried on nicely into the first quarter. So overall, a nice solid start to the year and very much in line with how we had provided our outlook about a month ago. I'd say not a whole lot is new since then, given a little bit of incremental inflation that we saw in the beginning of the year, metals, we talked about some of the geopolitical conflict and a little bit of inflation there. But overall, nothing that we can't manage. We did go out with a first quarter announced price increase that will kick in, in the second quarter and something that will be very important for us just in managing price/cost productivity over the course of the year.

What's the magnitude of that price increase? And is that kind of your normal -- well, I guess, normal is a relative term these days, but it's what -- how does that cadence compare to what you've done in the past?

I would say it's consistent with the multiple waves of price increases that we rolled out last year as we were addressing inflation. We came into the year with about 2 points of wraparound price. And with some more of that inflation settling in, in the first quarter, maybe there's another point or so that we add to that to the year. So overall, we feel pretty good about navigating this year.

And is that incremental price, do you target that to be margin neutral, dollar neutral? Just remind us, I mean, the accounting has changed a little bit. So how does that filter in ultimately to margins and the bottom line?

So we're going after dollar neutral or better, and that typically mathematically will have a little bit of a drag on the margin, but we're very focused on the dollars.

And as far as the other parts of the portfolio outside of T&D, just general industrial economy, what are you seeing there? Normal seasonality, a little bit better, a little worse? What -- how do you -- how does the general economy outside of the growth areas feel to you?

It's been solid for us, in particular, across -- broadly across industrial. Light industrial is a little better for us as we define it versus heavy industrial. Heavy industrial has been soft for a couple of years. A lot of that exposure is in steel mill, heavy industrial, transportation, pockets of oil and gas, mining and minerals, things of that nature. That's been a little soft, and we are anticipating that to continue to be soft. But our light industrial side is -- has been pretty solid. It's been solid for a couple of years now and some tailwinds from some mega projects and reshoring, things of that nature, they continue. So we're pretty positive on the light industrial side.

As we move into the rest of the year, do you view the year as being kind of normal seasonality off of the first quarter? Or are there any kind of seasonal fluctuations we should keep an eye on given maybe timing of projects in T&D or data center or things like that?

Yes. Generally, I would say it's more normal seasonality off of the first quarter. There are some minor pockets where we're continuing to add capacity, where we've got areas of high visibility, demand and growth and we continue to bring new capacity online. And as that capacity comes online, you naturally have a little more volume coming on the back half of the year in support of that capacity. A few projects in the back half of the year, but it's not anything that's really going to tilt that normal seasonality in a meaningful way.

And I understand the first quarter is maybe a little bit better than normal seasonality given the order strength coming out of the fourth quarter? Or are you planning the first to be in line?

Yes. I think the first quarter will be largely in line. We typically see a flattish revenue sequential from 4Q to 1Q, and that's very much what we're anticipating here. That will present a nice year-over-year growth for the first quarter, and we would continue to grow off of that base.

What's the rough year-over-year in the first quarter again?

High singles.

Cool. Organic high singles. Towards the higher end of the full year range, high singles. Okay. Sounds good. So let's talk about where all the action is on the utility side. Talk about the different parts of the business and how those orders are kind of differentiated currently.

Yes. As Joe alluded to, we rounded the bases in fourth quarter with relatively good inflection in orders. Last year, we kind of went through the whole destocking. We lived through a bit of that on the utility side of the business. For T&D, I would say we've continued in the first quarter with orders inflecting up to the right, very strong. So super bullish on the T&D side. I'd say grid automation is still a bit flattish largely on the back of Aclara and meters. So we're still living through a bit of a project roll-off cycle in the meters business, but that's coming to an end, say, into the end of Q1 into Q2. And so we'll start seeing that turn to modest growth in the back half of the year. But all in all, I mean, across all the businesses, Joe and I were just talking about it this morning, we're seeing order strength continue off of a good finish in the fourth quarter.

Can we expect the book-to-bill broadly for utility systems to remain above 1 in '26?

Yes. When you break it down in parts of the business, I'd say Aclara is probably right at 1. The core T&D franchise is above 1 right now. And we'll see how things play out. It's still early innings, but we feel really good about what we're hearing and what we're seeing in terms of our book-to-bill rates coming in.

Can you maybe talk about the differences between the transmission and substation stuff and then the more distribution-related MRO side? I know that's the distribution-related MRO has kind of gone through some waves. It doesn't -- it's not quite getting the love from a budget perspective as they really spend a lot on the T and the D especially. Maybe talk about if there is still bifurcation there.

Yes. From our point, super strong on book-to-bill MRO coming out of the gates this year. We don't see any sign of that slowing down at this point. Like I said, we've kind of gotten all of the inventory normalization out of our system. And so we really like what we're seeing right now in terms of order inflection on the book-to-bill side for MRO. T&D, I would say on the transmission and substation side of the business, high double digits high single to double digits. We're seeing really good inflection in the project cycle of the business. A lot of big transmission projects coming through the pipeline, and we're well positioned on all fronts in that category.

High double digits or high single digits, low double digits...

High single...

High single digits.

Okay. Because high double digits -- for these data center numbers, high -- we get crazy with high double digits. It could be a big number. That's interesting. You're definitely more bullish on the MRO side than maybe I was expecting. What's happening there? Are they now shifting some budget back there on the OpEx side? Or what is -- what's driving it?

We think it's really a result of what we had anticipated last year, which was at some point, there was going to be a snapback once the inventories got cleared in the channel, and that's really playing out the way we anticipated it.

Wow, okay. So like a bit of a -- not a restock, but like a bit of a resumption of that buying that's snapping in. And you said that's a first quarter phenomenon?

That is a first quarter phenomenon, yes. And we're hoping it carries through.

Yes. No, that sounds super positive.

So off to a good start. We saw that inflection back in the fourth quarter. That's been nice momentum. I think our full year guide in the distribution and MRO was more like mid-singles. And we'll see how that continues to pace as the year progresses. But overall, as Greg noted.

Way to keep the expectations low and snap right in, keep the expectations low. He's smiling over there. On the Aclara side, you maybe sound a little bit more confident on the timing of those orders picking up. Is there something that's kind of happened in the budgets there or anything specific to Aclara?

Yes, I think just zooming -- backing off a little bit and talking about Aclara, we went through a little bit of a lull in that business for the last couple of years. And I'd say we've taken a lot of time during that period to kind of reposition the business to go after that down market, co-ops and munis. On the meter side, we're really well positioned when that replacement cycle kicks in. And quite frankly, we repivoted the strategy and redirected a lot of our MRO spend or our R&D spend towards projects in that sweet spot of the business where we feel like we've got the right to win and play, and we're seeing that come through in our pipeline. So we're seeing our order pipeline start to fill back up, but I would say you're going to see modest growth coming from Aclara in the back half of year.

And for the year, that can still grow moderately?

Yes, we think it can.

Okay. And is there enough behind that to kind of exit rate at a mid-single-digit rate into next year, you think?

Yes.

Okay. Can you just talk about the new product that we saw at DistribuTECH? I think that was related to Aclara. There's some...

So there's a couple of things. One...

Yes, there's some innovation there that I thought was pretty interesting.

Yes, LineDefender, which is a lateral protection device. We're already booking well ahead of our capacity in that product line. So when that product line hits the street, it's already booked out in terms of orders. And then on the software side, Aclara 360, that's an edge software package that we're selling to collect meter data and run some analytics on the grid. That package is all software related on the Aclara side of the business, we're seeing a lot of interest from the market there.

So a little bit of innovation on that side as well as a bit of a pickup should be pretty positive. And then the perpetual question on telecom. Are we seeing any pickup there? Are we just kind of like bumping along the bottom?

Actually I'm pretty bullish on telecom as well. We still think there's quite a bit of broadband spend that's going to happen. We're still -- we're not banking on it in terms of our plan, but we see BEAD funding coming through in the back half of the year as well. Similar to Aclara, we repositioned the Enclosures business when we went through that lull when all the telecoms customers kind of hit the brakes and stalled buying and ended up overbuying and buying a lot of inventory. We've cleared that through the system. We've gotten really well positioned in that business, and we're seeing that order inflect as well. Their orders are up double digits year-over-year off of lower compares. And we're being very selective about what we go after in the telecom space. So we like the business. It's contributing. It's accretive to the rest of the portfolio. And our Enclosures business, broadly speaking, in utility, telecom and civil construction is doing very well right now.

So is there anything right now in this portfolio that we didn't cover that's not getting incrementally better or accelerating? Doesn't sound like there's much.

I'd say all the businesses are getting incrementally better, still modest to flattish growth coming out of the Aclara side of the business.

Right. And maybe telecom as well, although it's off a low base, maybe that's a little better. Are there any bottlenecks with these projects on the T&D, the larger project side that you're seeing out there?

No. When we talk to customers and some of the EPCs that we're partnering with, the feedback has been speed and execution. It's all about quality. They're not really grappling hard on price. So we feel very well positioned there. We're specified in many cases. So if there's upside to be had, as long as those projects get funded and get deployed, we're going to be going to be in the ring.

And are you expanding -- sorry, go ahead.

Yes, I was just going to add, and it's probably where you were going on capacity, just in some of those areas where we've got higher growth pockets of the portfolio and as we continue to add capacity, naturally, growth comes with you've got to manage your way through it and you're bringing a whole supply chain along. And so just pockets of transmission and substation as we grow those businesses, just managing our way through growth. And it's not unnatural to deal with pockets of supply chain constraints or supplier delivery realignment schedules to keep up with our demand. And there's pockets of that, that's happening out there, but nothing that's really slowing us down in a meaningful way with normal growth.

When it comes to your capacity, is there any of like floor space being added? Or is it mostly if you have to crank it up, you're just add a line here and add a line there, hire a few people. What's the nature of your capacity additions?

A lot of our capacity additions are on existing roof line and our existing footprint. That tends to be our approach to adding capacity. We're adding new mold machines. We're adding new presses. Sometimes you're adding people to man those machines. We do have pockets where there's higher growth within switching and fusing, within transmission and substation, where we are adding on roofline to existing facilities. But I'd say that tends to be -- you're adding 60,000 feet here, 100,000 feet there versus 0.5 million square feet greenfield locations. That's -- there's none of that really...

Right. There are a few people out there that are adding 1.5 million. It's pretty crazy. And obviously, you guys are a different type.

And aside from just buildings and equipment, what I see is a little bit of a congestion in terms of hiring and onboarding in some of the high-growth areas. So that's one area we've been navigating through. But it's really access to labor is probably the biggest thing keeping us up in the high-growth areas of the business.

Yes. That makes sense. Can we -- so CapEx broadly kind of flat as a percentage of sales going forward?

Yes, flattish as a percentage of sales. I think we'll probably be up about 10% to 20% versus last year, but in and around the 3% of sales range is where we'd like to pace that.

Got it. And then just on the operating margin at utility. Obviously, it's been pretty strong. How do you expect that to trend this year? And any real moving parts around the -- I think the long-term guidance for the company like 50 bps a year?

Yes. So operating margin, you're right to point out that our outlook contemplates 50 bps of expansion at the midpoint. That's going to lean a little heavier towards utility, a little higher than 50 bps electrical, a little lower. And that does also contemplate some investments that we're strategically placing in both segments, a little more R&R investment that you'll see coming through in electrical and a little more growth-oriented support over in utility.

Is there a mix dynamic that we should consider in the utility growth? Like what's kind of the hierarchy of the richest mix stuff?

I'd say the core T&D franchise as that volume picks up, that mix is constructive to the outlook. With modest growth on Aclara, that helps as well because that's a lower-margin business. So overall, I think with the T&D inflection that we're seeing, that's very constructive to our margin outlook.

And is there anything that kind of flips in the second half, whether it's price cost normalizing? I mean you guys are a different accounting now, so it's not as volatile. Or should it be pretty steady progression over the course of the year?

I would say steady progression. The one thing that would pick up in the back half, typically the way we planned it out is our productivity initiatives. Those typically kick in, in the second half of the year. You're working on those projects in Q1, Q2, you start to see the benefits in the back half. So that will also be constructive to expansion.

We also think the accounting change of last year is much more constructive to how we run the business. It's much more constructive to how our channel absorbs price increases and the timing in which all of cost inflation and price recovery comes together. So -- but we don't feel like there's going to be much of an impact in terms of timing of price cost over the course of the year.

Right. Okay. Anything we didn't talk about on utility that we should hit on?

No, I can't think of anything other than with regard to Aclara, one of the reasons we're bullish about the outlook there, we just announced a very large meter deal. in the Philippines. I don't know if you saw that.

I'm not sure we picked that one up.

Yes. That's worth 10 million endpoints over the course of the next 10 years. So that's a big deal for -- in terms of front load...

What's the value for something like that?

I don't know that we put numbers out given the size of the endpoint count. But just suffice it to say, it's meaningful, and it's going to help us with regard to our front load for that business.

A nice steady piece of international business over the next decade.

Yes. Is that -- how international is that business? Like what's the percentage outside the U.S.? I thought it was highly U.S.

Relatively low. We've got a strategic partnership with Meralco. So we've done business with them for a long time in the Philippines.

Got it. So that's kind of a Hubbell-specific hotspot that you guys are leveraging.

It is.

Yes.

And it's been in the base. It's been in the run rate.

Got it. Okay. That's great. And it sounds like Aclara from a portfolio perspective, I think we had Gerben out last fall, and we kind of played a little ping-pong on strategic value of Aclara in your portfolio. It sounds like it is definitively a keeper for now as it improves.

Yes, in its current setup, we like what's coming down the pipeline, and we think it's going to be additive, not subtractive to the portfolio.

Okay. Yes, makes sense. Sounds super positive on the utility side. Where do you think we are in the spending cycle? What inning do you think we're in? I mean, I guess for MRO, we're kind of early. And then for the T, the more project side, where are we on in that spending cycle in your mind?

I think we're early on both of them.

Okay. Got it. All right. Easy enough. On to electrical, the rest of the portfolio. The renewables business is for many have been pretty weak. How is that looking for you guys?

Yes. It's not -- we're not dissimilar to others. The majority of our utility -- our renewables exposure is in utility scale solar. And over the last couple of years, it's been growing. It's been a little flattish last year. Obviously, policy has not been particularly friendly under this administration versus the prior. So we are seeing some of that cool off. We do talk regularly with our customers and the projects that are in the pipeline right now, and there's still a healthy amount of work that's in the pipeline running out. But overall, in the longer term, I think we see utility scale solar being an important component to source of generation to satisfy low growth in demand. So we think it's going to be there longer term, but to what degree is kind of still TBD. But overall, well positioned to support and service, but I think we're not an outlier from some of the others you're talking about in that space.

Anything you do in and around battery storage and where would that be in the portfolio?

Yes, not much in there.

Okay. Got it. And the other businesses, I mean, you mentioned light industrial, a little bit better than heavy industrial, but you also have some construction exposure, some non-resi exposure, seeing anything there outside of data center, which we'll get to in a second?

Yes, not seeing a whole lot of uptick in nonres. Nonres has been flattish to low singles for us, and that's kind of contemplated in our '26 outlook. Conversations with the channel and with customers have been getting more and more bullish. But we're just not -- we're not seeing yet in a meaningful way in our incoming order rate. So we'll continue to remain cautious but optimistic, ready to service that demand if and when it comes. For us, within nonres, think about commercial, hotel, it's -- there's some transportation. There's some warehousing that runs through there. And on the institutional side is more like it's university and education, it's health care and there's some government. So been a little flattish for us. But again, we're well positioned once that picks up.

A decent amount of the innovation we talked about is it utility and putting data center aside. Anything electrical that stands out innovation-wise that you think is exciting and could be an incremental growth driver over and above the end markets?

There's a lot of singles that are queued up. The portfolio, I think on both sides has a really attractive portfolio over the next couple of years coming out. A lot of it is dedicated to some of these high-growth areas. Data center, I know we'll talk about that shortly. We've brought out a lot of new products in the renewable space and in some of our high-growth verticals. So overall, really pleased. New products are contributing roughly 1 point of incremental revenue for our portfolio, and we think that could grow in the future. But overall, we're pleased with the NPI program.

On the data center side, I think it's like a $250 million business in '25. Can you just split it down between the longer cycle modular kind of PCX business and then the other components that you sell in there. And they're obviously all growing fast, but like what are the differences between the trajectory in those 2?

So the -- they're split about half and half. The long-cycle modular power skid distribution business is largely that longer cycle business. We're booked out through 2026 with orders and capacity, and we're taking orders for 2027. And that business has been growing nicely for us, and we've got more visibility to that growth that it's locked and loaded in the backlog, and we're delivering against it. The other half is on the shorter cycle book-and-bill side, and that's primarily within our Burndy business, our wiring device business, where they're providing grounding systems, they're providing higher amperage pin and sleeve products and other connectors that you'll find in the data center. So again, that's been growing nicely for us as well. Short cycle, a quick turn in the book and ship side. So limited visibility to what the back half of the year or even into Q2 is going to look like. But overall, we continue to add capacity to service that demand.

And do you need to -- I guess, if you're booked out through '26, will you need to add more capacity to kind of grow in '27? I mean I'm sure we're talking about some pretty strong double-digit rates, the high double-digit rates, 30% to 40% in these businesses. Is that?

We can handle the growth in '27, we get beyond '27, and we're working through how and where to add that capacity out in '28 and beyond for the year.

Okay. And is that the right kind of rate of growth for this $250 million of revenues, like 30%, 40%-ish?

It depends. We'll see what comes. And they've been growing 30-ish plus or minus over the last couple of years, and we'll see what plays out.

And then I just wanted to pivot back to utility on data center. How much of the demand that you're seeing today do you think is directly whether it's a substation that has to be refurbed and upgraded because there's a data center right there, maybe you're doing even a little bit of on-site stuff you never would have really done. Like what -- how much of the business that you're seeing today in HUS do you think is directly related to hooking up data centers?

I'd say it's low. I'd say that's an area we're focused on right now, but I'd say it's probably less than 10%.

Yes.

If you think of substation that's probably 60-40 new versus MRO and a big chunk of that new projects would be data center related.

Yes. So just to repeat it, 60-40 for substation is new versus MRO and a decent amount of the new would be data center related.

Support data center.

Yes. And that would be for the substation business. Yes. Okay. Everybody got that? Well, we can connect afterwards then. As far as the margins are concerned in Electrical, you said a little bit below. I mean, they had a great run on margins. Are we now at kind of a more normalized rate of conversion in that business? Or is there still a lot of like low-hanging fruit, blocking and tackling related margin opportunity?

I think the low-hanging fruit has been picked, but I also believe that we are in the middle innings of that margin expansion story, and we've got room to continue to run. I think the best way to think about it is within the context of our long-term financial framework, think about our mid-single-digit organic growth, think about 25% to 30% incrementals running through electrical. And as we continue to drive more project work, restructuring, there could be a little bit more that comes on top.

Okay. And the inflation, just to kind of put a finer point, I think you said inflation was mid-single digit exiting '25. You're saying it may be a little bit higher than that. So you're going to get a little more price? Or are we still in kind of the corridor of what you had said for guidance. There's no real change in that.

Largely within the corridor of guidance. Last year, full year was mid-singles for which we covered with price and productivity. Our guidance was built off of, again, mid-singles, and we'll cover that with price and productivity. A little more inflation to start the year here in the first 90 or so days. And so we think we'll get a little more price and a little more cost inflation, but it doesn't change that -- the math there.

Okay. As far as the balance sheet is concerned, you guys do some episodic M&A. Any change in strategy there? How is the pipeline? And where are you guys looking to add from an M&A perspective?

Pipeline remains very healthy and active. We continue to look at those high-growth areas of our business, I think transmission, substation, light industrial, data center, grid interconnect are kind of our core areas of where we're targeting M&A. The pipeline is comprised of a mixture of small bolt-ons as well as some larger opportunities there. And timing of those is always uncertain as they progress. So we feel really good about the pipeline. M&A does remain a top priority for us as it relates to capital deployment. And our balance sheet, as you know, is very well positioned to do a combination of small and larger deals. So we're excited about those opportunities. Valuation has obviously clicked up over the last couple of years. We've also seen the quality of the companies in our portfolio or in the pipeline are also a little higher, higher in terms of growth, higher in terms of margin. So there is some justification of the premium multiples that we're seeing. But overall, we'll continue to be disciplined in our approach, but M&A remains a top priority.

I was a bit surprised with these substation assets that you guys bought and then nVent, I think, bought one as well, that the multiples were actually like reasonable there. I would have thought that right now with the growth ahead of everyone that those would have been a lot higher. What -- how do I kind of reconcile that those lower multiples? What -- I mean, they were like low double digit, which is kind of heard of.

I think the growth -- a lot of that growth is buyer has to go get it. Buyer has to go build and service capacity to go get it. So it's not like if they're coming online with tons of capacity that can swallow that growth over the next 5 to 10 years, you got to go add space.

Got it. So that's kind of the synergy as you guys coming in and driving the growth to make it an even lower multiple, which is pretty impressive. Is there a view that the HUS is really kind of getting all the love from a growth perspective right now? So you want to keep things balanced and maybe there are some opportunities and where other people are zagging you guys can zig and go to a little more on the electrical side or you're really kind of reinforcing the growth areas?

I think we are reinforcing the growth areas, but I also believe they are on both sides. Yes, the last several years, you've seen a lot of acquisitions over on the utility side. You've seen some dispositions and portfolio management on the electrical side. But as we go forward, I think you could see M&A on both fronts.

Yes. Do you -- is there an aim to keep it balanced or it's really whatever pitch, you're going to hit whatever pitch is coming your way?

Whatever is in the pipeline that looks really attractive and will be a good fit for our business.

Okay. Any questions out there? Scott? Scott? Yes. No, I was talking to you. How are you guys leveraging AI at the company? Is there any initiatives there, product development, back office? We just -- we're asking all the companies about how they're applying it.

Yes. Very early innings on the AI side. First was evaluating this technology and what can it do for us like realistically. And that was a lot of work we put into that last year. Second was establishing a secure environment for which we can put the right guardrails up to deploy this from a data security standpoint, and that's been completed. Right now, we've adopted a couple of enterprise AI solutions that are embedded within our existing technology stack. I think Microsoft Copilot, some of the other key areas of technology that we invest in our ERP and other areas are bringing embedded AI into the solution. So we've been introducing those to our organization and training our organization, training our knowledge workers to adopt these tools to deploy them to their day-to-day work, and that's underway. And then we've been piloting some larger use cases to see if we can really put some of these capabilities to work. So starting with just a handful of use cases last year in the back half, proving them out, and we're starting to expand the use cases across our business. So we'd call it more of a marathon here than a 40-yard dash, but the marathon is underway, and we've started to invest in that in our business.

And anything really stand out as something that you've noticed that people are either using more of or where there's been like an interesting productivity angle any kind of early successes or wins?

Yes. One of our early use cases was turning quotes around much quicker using AI. And so where it used to take us weeks to turn quotes around and a lot of research and a lot of back and forth, we can do that work in a matter of hours. So turning quotes around very quickly is super helpful to our customers and helping us take business off the street. So again, things like that, Greg, would you add anything to your business?

Yes I think on the electrical side, they ran a competitive benchmarking, competitive analysis tool where cross-referencing using AI to a competitor's part number to our part number. They launched that on the electrical side of business. We're looking at a use case right now on chemical analysis for our MOB blocks to continue to improve and evolve the technology on the MOB block. And I'd say broadly, the organizations, if you look at our adoption rates of Copilot, which is kind of the entry level of AI, you're seeing adoption rates across the company climb, and you're seeing really good utilization out of that.

I think an IR avatar could be good. Can't -- hard to recreate that guy.

Yes.

Definitely cannot.

Not doable.

He is the best. He is the best.

We try.

Any else out there? Yes.

Just talking about [indiscernible] earlier on the price cost cadence. So just we have said expect strong start from a margin perspective based on an easier comp. And we did highlight second quarter of last year was a harder margin comp because of the accounting change. And so that's factored in the outlook as well and it kind of more normal in the second half.

And just remind us of what you had said on cadence for the year from a -- whether it was a percent of EPS or percentage anything you guys had said on the call, just cadence?

Yes, I think a normal seasonal year, right? And if you look at where consensus settled in so far for the early part of the year, I think that's consistent with how we were building the outlook, so.

Okay. Great. Guys, thanks a lot. Thanks for all the clarity and the numbers. Appreciate it.

Appreciate it.