ITT Inc. (ITT) Earnings Call Transcript & Summary

Thanks so much for joining us. I'm Andrew Obin. I cover multi-industrials in the U.S. And with us, we have the management team from ITT. We are big fans of ITT. We think this is one of the most capable managements in our coverage universe and deep operating experience and really have their hands -- their fingers on the pulse of what's happening, great operators. And we have Luca Savi, company's CEO and President; and we have Emmanuel Caprais, Senior VP and CFO. And I think Emmanuel, you're going to read some disclosures, and I think we're going to go through a couple of slides, and then we're going to jump into Q&A. Thank you.

Thank you, Andrew, and good morning. Our presentations and comments may contain forward-looking statements, which are based on our best view of the world and our businesses as we see them today. These assumptions and expectations can change, and we ask that you view them in that light. We encourage you to review the latest risks and uncertainties in our Form 10-K and other SEC filings available on our website. Thank you.

Good morning, and thank you, Andrew, for having us here. I'm going to spend a couple of minutes on a few slides, and then we'll go straight into Q&A. So ITT, we are an engineering and a manufacturing company of components, components that are used in harsh environment across different industries. You're talking about automotive, rail, aero, defense, general industrial, energy. We have historically outperformed the market we are playing in. And the way we outperform is really through differentiation in execution and innovation. If you look at the last 5, 6 years, we created a lot of value for our shareholders. And that value has really been based on organic growth and margin expansion. And only recently, we started doing more and more M&A. Now when you look at our businesses is we have 3, we call them value center, 3 line of businesses. One is Motion Technologies, where we are making brake pad for vehicles, for cars and the shock absorbers. Shock absorbers are mainly used in rail. Then we have our flow business, our pumps and valves. And here, we have pumps, centrifugal pumps that are used in general industrial, in pulp and paper, in mining, in energy as well as twin screw pumps that are used also in the traditional energy, but also in the energy transition for green energy, talking about carbon capture or stopping gas flaring. And then CCT, our connectors and components technology value center, where we make valves and components for aero and defense and connectors. These are really our 3 main businesses. When you look at 2024, it was a good year for us. You can see it from the numbers, was 7% organic growth, 11% in total. We had good orders. The long-term target at ITT level that was -- we were supposed to reach by 2026, we eclipsed it in 2024, so 2 years ahead [ out ] of plan, and we will continue to improve the margin in the years to come. And that was also important from a portfolio point of view because we shifted our portfolio. We divested Wolverine, our gasket and shims business that was purely automotive and we invested in 2 companies, kSARIA, Interconnected, [ play in defense, ] mainly U.S. market and Svanehøj, a cryogenic pump in the marine industry, deploying roughly $900 million of capital. When you look at 2025, I think that the value creation through organic growth and margin expansion will continue. And because we will continue to differentiate from the competition always through execution and innovation. And we add to that our M&A in terms of the M&A is getting more and more momentum. And when you look at our pipeline of M&A, it is still good and active. When you look at the Q1, the orders are up. I think that the sales are tracking. We continue to improve our margin, and we will have Motion Technologies that will hit 20% operating margin in 2024 -- 2025 and in Q1. The EPS is in line with consensus and the good cash flow that we are generating will be used to repay the debt as well as to buy back share. And with that, let's move to Q&A.

Sure. Just maybe just for first quarter, you're not making any changes to the first quarter outlook, right? Okay. So maybe I will jump because we're here, and I've been asked this question. So I'm just -- just maybe you started talking about overview of demand trends that maybe expand where are you seeing particularly -- just give us an overview because that's at the top of everybody's mind. Where are you seeing structural tailwinds and where you're seeing structural headwinds?

Sure. So as I said at the beginning, we are playing in different markets. So when you look at our connectors and our components, the aero and defense market, this is definitely a tailwind. So because of everything that's happening in the world, our defense market, we are -- is growing nicely. And also aero will be with the recovery of Boeing that we see more for us impacting the second half of 2025. So that definitely is a tailwind. When we look at our project business in IP and our short cycle in IP, the short cycle is staying at a very robust level. 2024 was good for us and not just because of price, but it was a growth in volume. And when we look at 2025, we see the short cycle staying at an elevated level. And the project business is still very healthy. So we are growing on the project side as well. When we move in Motion Technologies, the rail business is healthy as well, and there are structural tailwinds on that one across all the different regions. And the headwind that we see in our portfolio is really in the automotive market. We see automotive is still a challenging market in 2025. We expect to continue to outperform like we've done it for the last 5 years, but that probably is the structural headwind that we see in 2025.

And maybe just a little bit more detail on short-cycle trends across pump and short cycle industrial. And specifically, if you look at the latest PMI data and lots of debate about it, people didn't like the order number. But if you sort of look at it, right, you can see construction is a headwind, maybe consumer-driven business is a headwind, as you've alluded, auto is a headwind. But within industrials, there's a number of fairly broad-based positive activity. How would you characterize what you're seeing versus the latest PMI data. Does it surprise you? What trends have you seen in the first quarter? Just maybe unpack the industrial verticals a little bit more?

So when we look at our distribution, because for us, short cycle is closely aligned with our distribution business, both in industrial process and also in Connect and Control Technologies. So when we look at our distribution business, not showing tremendous growth, we're pretty -- remaining pretty strong and remaining at elevated levels. We do not see particularly high level of inventory at our distributors and demand, so point-of-sale information from our distributors is showing pretty strong trends. Keep in mind, Andrew, that we have been focused over the past few years in gaining market share. And this has been happening in Connect and Control Technologies with our Connector business, where we've been expanding our SKU offering as well and so putting more product on the shelves of distributors as well as in the IP and the spare parts, where we've been drastically reducing our lead times in order to be able to be there for our customers with spare parts faster than anybody else. And as a result, we're maintaining 95% plus on-time delivery metrics with our customers for spare parts, which is allowing us to gain a lot of market share.

Got you. And do you think just -- you've asked my question already, but in terms of your distributor business, any sense that there was a prebuy because it's another big debate, prebuy ahead of the tariffs -- what's your view of what your channel has done?

We didn't see any of that. And nor our distributors talk to us about that.

Yes. No, that's -- and maybe, obviously, you're going to get this question, but just to maybe size your exposure to the announced tariffs. Is there a tariff impact embedded '25 guide? The usual stuff, how much of it is covered by USMCA, and what's the action plan? I know you and I have this debate.

So when you look at tariffs, I would say our first thing, our strategy has always been to be in the market for the market. So for instance, our plants in Europe are serving the European plants, our plants in China serving China and Asia and our plant in North America serving North America. So that is overall our strategy. On top of that, last year in 2024, we divested our Wolverine business, which was the one that was impacted the most from tariffs in the past. That was a portfolio strategy, but that was also good I think from -- when you think because what was happening with the strategy that would have impacted us heavily in 2025. So with the portfolio that we have today, how have we been impacted? So different for the different businesses. So if we start with IP, for example, IP will be exposed mainly to the tariffs from China because what is happening in the flow is you tend to import castings from China or India. These are the best quality castings and machine, the best quality supplier and the best service that you can have. So that will continue to be the way. Now there will be a tariff and the action to ensure that we mitigate the impact is really a commercial action. So that will -- this is -- it will be a pass-through on that front. And we have already taken action and we already communicated with our customers and with our distributors. And it's not going to modify our supply chain strategies because those are the best suppliers and the best service. When you look at Motion Technologies, the impact could be on the Mexico plant because we have a plant in Mexico that serves North America. Now the majority of our contracts are Ex Works. So the customer will pick up at our shipping, so we will not be exposed to that. And the few contracts that are not ex Works, we are certified USMCA. So with the tariff that are -- the way that they are structured today, no impact there. But in order to be ahead of the game, we've already talked to some of our customers just in case the rule change in terms of this will be a pass-through as well. Then it's CCT. When you look at CCT, we have our connector business and our major plant is in Nogales, Mexico, just across the border. And together with many of the other connectors company, -- and in these cases as well, we got the majority of our products USMCA approved. And we've already spoke to all our customers in terms of if the regulations will change, there will be commercial actions to take place. So I think that when you look at overall the impact of tariff, we have action in place to cover and to mitigate if things deteriorate from what they are today.

I think capital allocation is an important skill for multi-industrials. You have been ramping your M&A in recent years, Svanehøj and kSARIA. So a couple of things. A, what are the big lessons learned from getting more active in M&A? And then the follow-up, should we expect the company to continue doing more M&A? Or do you just need to take a pause to integrate the announced acquisitions?

Okay. So now first of all, when we look at the value creation, as I said at the beginning, a lot of the value creation that you've seen in the last 5 years has been organic, organic growth and margin expansion. And we have just started building the muscle on the M&A with the acquisition of Habonim, which is a valve company based out in Israel, Svanehøj, cryogenic pumps based in Denmark and kSARIA interconnect solution, mainly defense business out of the U.S. All these acquisitions have been successful. Just to give you an example of Habonim. Habonim, we purchased Habonim at an EBITDA multiple of 12. When you look at the actual, it's something less than 8. So a great success. I mean the lesson learned across all these 3 is that when you buy a company that has got a strong position in the market and all 3 had a strong management team and you're able to retain the management team, and we haven't lost any member of the management team in these 3 companies, I would say the chances of success are much higher. And all 3, granted kSARIA is just early, but have been a success today. I would say on the other side, lesson learned, I would say probably in some area, on some key KPI, probably we should align with our ITT of looking at things earlier. So to give you an example, we are very focused on safety. our framework is SQDC, safety, quality, delivery and cost. And I would say that, for example, the safety performance of Svanehøj was not up to the standard that we were used to. And therefore, an earlier alignment when it comes to some important indicators was a lesson learned that we had in that case. Now on the second part of the question, do we need to pause? No, I think that just because this -- exactly because these company are successful, they've got a good market leadership position, strong management team, I would say that we are able to go and make more acquisitions. Financially, we do not have any constraint. But also from a managerial point of view, no constrain as well.

And who integrates the deal? Is it the business unit team? Or is it the corporate team that sort of goes in?

It's the business unit team. And -- but at the same time, I would say, is an integration that goes both ways. So just to give you an example, I mean, Svanehøj working capital of Svanehøj is.

7%, 8%.

7%, 8%. So we must learn from Svanehøj, right? Because if you look at our working capital in IP, it's around between 23, 24. So we need to learn from Svane how to do it. But it's the business unit that goes through the integration process.

And maybe as you've pointed out, I think you're really good at bringing your capabilities to your customers and clearly, a terrific track record of organic growth. Can you maybe talk about the key R&D projects that ITT is excited about to keep driving this organic outperformance?

Sure. Let me talk about 2. One is the EMD, the embedded motor drive in IP and the other one is the geopolymer on the brake pad business. So if you look at the EMD, the embedded motor drive. I mean, when you look at the pumps and you have the motor with pumps, the motor is always, always rough. And if you want to save energy, what has happened in the last 20, 30 years is you put a variable speed drive so that you run the motor at 50% of the speed, 80% of the speed depending on what you need. But when you look at these variable speed drive application, you always need a clean room. You always need space. And therefore, the variable speed drive are used only in 20% of the cases when instead of the 100% where you will save energy, et cetera, because you don't have the space or because it's incredible dirty, if you go to pulp and paper environment, it's dirty. You can't have a variable speed drive there. So what we have done at ITT, we have invented a motor called embedded motor drive together with the university here in the U.K. and we own the patents. And practically, you can swap a normal motor with a new motor, a little bit bigger, but with this variable speed drive practically in it. So we will launch this product. We have already the prototype. We have the industrial prototype that have been tested in the market with our customers for more than 1.5 years. And we will launch this product in Q2 of this year. We're already producing the product. We are -- there is a contract manufacturer, a motor manufacturer that is producing this motor for us. And we will go to the market with this, as I said, in Q2. I'm extremely excited about it because, first of all, it increases our addressable market. We are not in the motor manufacturing. And now we are opening the markets we are addressing. And this is going to be a huge opportunity. And think about it not just as a motor for everything that rotates like pump or fan or a mixer, but also think about the synergy that you have. I mean, if you want one of these motor, maybe you need to buy a good pumps as well. So extremely excited about that. And then the geopolymer on the brake pads. When you make a brake pad, you prepare the mix, you go through a line and there is a press and then there is an oven, an oven where practically you bake these brake pads. And this oven consumes a lot of energy, but make the brake pad performing the way it's supposed to be. And you have this oven because the mix that you have in the brake pad has an organic binder, something organic that keeps all the mix together. We have invented a mix with an inorganic binder, which allows us to eliminate the oven in the production line. This means that in a line that usually is a CapEx of $12 million, $15 million, you eliminate the oven. $1.5 million, $2 million of CapEx out of the way. But it's not just a CapEx thing. From an operational point of view, there is a lot of energy and a lot of cost and consumption of energy. So you are making this product also more cost competitive. We own the patent. We are the only one that have this. And this product has been tested for the last couple of years in as an aftermarket in China. You test in the aftermarket before putting on the OE because you want to show -- you want to know exactly how it works before putting on a project or a platform. We're already talking to 2 OEMs in Europe to test this with -- as an OE platform in a couple of pilots. And this will be a game changer in the braking as well as like the MDE is in flow.

I remember sort of you explaining me the importance of material science within your sort of product strategy. I think it was one of the first things you taught me when you started. And actually, I really appreciate it. Maybe Asia Pacific previously didn't highlight as a platform for growth back in '22. Can you describe what the formula is here for growth. I think, where are you expanding? Now it's a little bit tricky because [ 80% ] of your Asia business is in Motion Tech. And it's just been a machine, part of my pun, but I think one of the topics that was supposed to highlight at this conference, a potential for China exposure and maybe explain to investors why you have been able to deliver what you have been able to deliver in Motion Tech in China, but also what are the plans to scale up IP and CC&T there? So I guess 3 questions. What's happening in China macro, what has enabled you to outperform in Motion Tech and what happens to the rest of the company in China?

So when you look at our Asia Pacific business, we have -- we are exposed across all the 3 value centers. We have a plant in Shenzhen for the Connector business. We have a Motion Technologies plant, brake pads and shock absorbers in Wuxi, China. And then we have a pump factory in Korea. And all these 3 plants are top notch, are some of the best plants that we have in the world. When you're talking about the performance, the fundamentals is safety. In terms of quality, in terms of the delivery, in terms of cost. So top performance. As you said, 80% of our business in Asia is Motion Technologies, is automotive and rail. Think about it. China is the largest automotive market in the world, but also the largest rail market in the world. So we got a great market share in terms of what we talk about high-speed train and rail in China as well as good market share in the vehicles, in cars for the brake pads. Last year, we closed the market share in brake pads above 30%, around 31% when we opened the plant in 2014. So until 2014, our market share was 0. So incredible success. I mean what we have been differentiating ourselves there is the same rule as we differentiate through execution and through innovation. And the management team there was quite enlightened in 2014 when we opened because they started working with the Chinese OEMs. This must be obvious today. But when you were in 2014, working with the Chinese OEM was not an obvious choice. And that working with the Chinese OEMs proved a very good strategic move. Today, 65% of what we are making in China are for the Chinese OEMs. So we are winning with the winners. And the reason why we keep on winning is simply execution. Think about it, more than 99.9% of on-time delivery. And this has been consistent every single month, every single quarter for the last 5, 6 years, despite COVID, despite the supply chain hit. Despite everything that has happened in the last 5, 6 years, we delivered with that on-time delivery. In terms of quality, we measure quality in PPBs, in parts per billion. So it's a few hundred PPBs, which means that -- and none of our competitors is able to match that level of performance. They are in up to 20, 50 PPMs in parts per million. So that differentiation, those flawless launches that the team is able to execute enable us to keep on winning market share there and to outperform the market.

And maybe what is happening? I mean, I think automotive market in China, but maybe comment what are you seeing about this recovery in China and the ability to scale up your other platforms in China outside of Motion Tech?

Sure. So when you look at our performance in China has been incredibly good. If you look at automotive and rail, those markets, they're very resilient. So if you look at -- if you got rail, rail keeps on expanding. I mean, if you go to Shanghai and you take the train out of Shanghai going to Wuxi and you get out of on Chao train station, you can see the high-speed train depot on your right and all these incredible high-speed train and plenty of that. And in 2026, that we come out with the 450 kilometers an hour high-speed train, and we're the only shock absorber that today is certified to go on the train. I'm sure there will be another one at least. But as of today, we're the only one. So the investment will keep on happening, and that is good for us. On auto, auto was a very resilient market when you look at production in China in 2024. That was thanks to the incentive scheme that were put in place by the Chinese government in terms of you scrap your old car and get the new as well as the export. So very resilient market and continue to be in that way, it looks also for 2025. Now when it comes to expanding our skid promotion technologies, the other plants, our Shenzhen plant in connectors is performing incredibly well as well as our pump factory in Korea, according to many of our customers in the U.S. is one of the best pumps factory that they've seen in their lives. So more and more to come on those businesses, too.

Good. And I know you're going to host your '25 Investor Day in May, and Mark is not here. So maybe you could give us a little bit of preview of what you're going to talk going into the event?

Yes, sure. So it's going to be a great event. And so what we intend to showcase is obviously, show how we differentiate, as Luca mentioned, through execution, through innovation, through M&A, but also through our people. And specifically on our people, we intend to expose people of the ITT management team to the broader public because it's important that they know who are there to deliver the numbers, right? We have another exciting event where we're going to showcase all the innovation that we have. And then so Luca talked about the EMD, which is going to be branded as VIDAR and you're going to -- everybody is going to be able to see and touch this device, this motor. We're going to talk about geopolymers also. So it's going to be a great way for everyone to understand what's in the hopper in order to fuel further future growth. And then we're going to release new targets, new long-term targets because as we mentioned, we already have achieved 2 years ahead of schedule, our targets that we set in 2022. And so it's important to -- for each of our business to come up with new ambitious targets for the next few years.

So maybe in the remaining time, talk a little bit more about the businesses. So in the Industrial Process business, right, your core margins ex [indiscernible] have showed material expansion exiting '24 with legacy margins north of 24%. So what sort of productivity investments have you made? What's been driving the strong performance? And how much opportunity is there in the core business?

So if you look at Industrial Process, as you mentioned, we were able to maintain our IP margins above -- largely above 20% despite the dilutive impact of [indiscernible]. And so here, there was a lot of work that has been done. Obviously, the share gains that we've been having, both in projects and short cycles are converting into revenue, and this is driving a lot of revenue increase, but also margin expansion because this is very profitable business. We've been working also on driving lean through the rest of our factories. Luca mentioned that Korea is one of the best-in-class factories, and we're trying to really replicate that. We have Saudi also, which is extremely, extremely good with 99% on-time delivery, almost perfect quality. And then so we're moving all those IP plants to that type of standard. This is resulting obviously in efficiencies. We've been working also in addressing cost structure items. So we've been looking for efficiencies where we can to reduce our fixed costs while we're expanding our revenue. And then lastly, I would say, for us, because we have leadership in several of our product lines, we're trying to understand, we're trying to test how much we can push price also. And then price in IP has been a meaningful contributor of margin expansion, and I think it will continue to be one.

I know you sort of commented on it, but what are you seeing in terms of IP orders and specifically breakout projects and short-cycle activity?

So when we look at short cycle, as I mentioned a little bit earlier, the distribution piece is doing pretty well. It looks like our -- the inventory at distributors are under control. So we continue to see good activity on the baseline pumps and spare parts are maintained at a high level of activity. So short cycle looks like it's healthy for us, and we don't see any reason for this to not continue. And then when you look at projects, so a few things. For projects, we continue to see expansion from an order standpoint. But also, we continue to see a really healthy funnel of projects. When we look at the different projects that have passed the budget phase, this is -- it's not growing by 20% as it used to be, but it's staying really at a high level of activity. So it gives us a lot of work in terms of quotation and also a lot of opportunity to continue to gain share.

And maybe just a little bit more market detail. Any markets that are accelerating and any markets that are slowing?

So we talked about automotive. Automotive, so automotive, the only thing I would add to what Luca said is that it's true that it's declining mainly in Europe and in North America, but inventories are not super high. So for us, the demand is not good for sure but we're not running further risk by having destocking events that's imminent. So for the automotive, we'll see how it plays out. We continue to outperform, which is, I think, the bottom line here. The markets are going to do what the market do. But for us, it's important to continue to outperform. And then I would say defense, as we discussed, has been strong, and it will continue to be strong. Aerospace for the moment is not driving growth. But this is something that we think will be addressed probably in the second half of this year. We are -- on Boeing, for instance, we're not seeing orders. The teams are telling us that they should -- we should start seeing orders in the second quarter and then start to deliver in the third and the fourth quarter. For us, the Boeing exposure is around $10 million a quarter. So it's a meaningful piece. But for the moment, we have other tailwinds that we can compensate that headwind with.

Excellent. And then maybe on Motion Tech in more detail, starting to ramp up high-performance facility in thermally. Is it termally or thermally?

Thermally.

And it's an entirely new market. So when does production start to accelerate? And when does it start to become margin accretive?

Sure. So when we talk about high performance, historically, we never addressed this market. We're talking about the high-performance vehicles. So the top of the range, we're talking about the BMW, the Daimler, the Porsche, the Audi. And the reason why we never addressed this is because usually, this is low volume, high mix. And when you look at one of our strength, our differentiation, was being a standardized process that worked very well with a high volume, low mix. What the team has been able to do here is to use the same machine. So we didn't change. We didn't jeopardize the standardization, but they came up with a different solution from material flow that was able to produce with the same machines, a low-volume high-mix batches. And so this -- we took the board to the site in October. The site was completed. The machines are installed. We have started producing already the brake pads for our customer. We are launching platform now in Q1. Now this is ramping up. So you will see in 2025 will be practically immaterial. But when it comes to '26 and '27, you will start seeing an impact. The impact is not so much on the volume side as much on the margin because as you can expect in this low-volume, high-performance brake pads, you're talking about brake pads from a price point of view are a multiple of a normal brake pad. So margins are expected to be higher, but the volume in terms of revenue is going to be shorter. So I will expect in the second half of '26 and in '27, you will start seeing the impact of that.

And just going a little bit more. You have over 50% market share in Europe. China and North American business have been scaled up very nicely, I think, over 30% global market share in friction at the end of '24. So what's the plan to continue taking market share globally? You've been relentless?

Yes. And listen, I think that there is still room to grow. So if you talk about the high performance, that was a market where our market share was 0, right? Now we start addressing, and there is no reason why in the next, I would say, probably 5 years, we can get to a similar market share of what we have in Europe today. China is 31% in 2024. North America was between 28%, 29% market share in 2024. So there is still room to grow. And the recipe, I know it sounds boring, but it's still the same, to continue to perform, to have a perfect execution, perfect flawless launches for our customers, quality in PPBs that differentiate from our competition, on-time delivery, 99.95% or higher that differentiate ourselves from the competition. And if we keep on performing this way, we will keep to outperform the market, like we have done it for the last 10 years.

Excellent. What's the attach rate for aftermarket? And do you have any plans to accelerate growth in the aftermarket business?

So when you look at automotive, we are mainly an OE player. So 75% of our market is OE, 25% is aftermarket. And when you talk about the aftermarket, we mainly play in the European market. So I think that as it stands today, we are sticking with this plan. We are looking at China as a potential aftermarket business, and we are exploring different ways of working on that front there, but no major plans there as of today.

Maybe going to CCT. I think European defense is a big topic particularly today. Do you have enough European defense exposure to move the needle over the next 24 months?

I would say, yes, there is a lot of talking about European defense growing, and it will happen, of course. It has to happen. Now having said that, if you really want to be substantially have an impact is U.S. defense where you can really have the focus. So we are working to increase our defense business in Europe. But I would say the U.S. portion is really what is material and makes the difference. When you look at Europe, the play will be with the connector business and use some of our products from North America also here in Europe as well as with our shock absorbers. The shock absorbers that we are making in Berlin, in Holland are used for military vehicles here in Europe and the most successful platforms of European vehicles have tend to use our KONI shock absorbers.

Got you. And maybe in the remaining minute, maybe a little bit talk about kSARIA acquisition. What kind of revenue synergies are there?

When you look at kSARIA, kSARIA is when you look at our M&A, M&A focus is in flow, pumps and valves and connectors. And this is why we bought Habonim, [indiscernible] and kSARIA. KSARIA's interconnect solution, mainly defense, mainly North American business. And when you look at the synergies, is in many cases, the customers were coming to us our connector business and asking us for solutions with fiber cable, et cetera. And we were not able to address that. So we're not able to answer our customers because we didn't have a solution. Now with kSARIA, [indiscernible] we see this fiber cabling and this cabling with different connectors at the very end and not always are ITT connectors. So there is a synergy there in terms of the programs where we already qualified, it will be an easy swap. For the program that we are not qualified, we can qualify if it makes sense. And therefore, we have a synergy in terms of putting more of our ITT canon connectors in kSARIA.

Excellent. Well, we are out of time. This has been fantastic. Thanks so much.

Thank you very much.

Thank you, Andrew.