Littelfuse, Inc. (LFUS) Q3 2026 Earnings Report, Transcript and Summary

Good day, everyone. And welcome to the Littelfuse Third Quarter 26 Earnings Conference Call. Today's call is being recorded. At this time, I will turn the call over to the Vice President of Investor Relations, David Lee Kelley. Please proceed.

Good morning, and welcome to the Littelfuse Third Quarter 26 Earnings Conference Call. With me today are Henderson, President and CEO Abhishek Khandelwal, Executive Vice President and CFO. This morning, we reported results for our third quarter, and a copy of our earnings release and slide presentation is available in the Relations section of our website. A webcast of today's conference call will also be available on our website. Please advance to Slide 2 for our disclaimers. Our discussions today will include forward-looking statements. These forward-looking statements may involve significant risks and uncertainties. Please review today's press release and our Forms 10-K and 10-Q for more detail about important risks that could cause actual results to differ materially from our expectations. We assume no obligation to update any of this forward-looking information. Also, remarks today refer to non GAAP financial measures. A reconciliation of these non GAAP financial measures to the most comparable GAAP measure is provided on our earnings release available on the Investor Relations section of our website. I will now turn the call over to Gregory.

Thank you, David, and thank you to everyone for joining us today. This morning, I will provide details on our third quarter results, including performance highlights across our end-markets. Then share progress against our strategic priorities before turning the call over to Abhishek to review our segment financials and fourth quarter outlook. Turning to the quarter, we delivered record net sales of $767 million Our Q3 results were impacted by a 1-time Dortmund contract amendment fee reduced semiconductor sales by $28.5 million which we will discuss in more detail shortly. Organic revenue growth accelerated to 22% year-over-year, driven by execution on our strategic priorities and demand strength across our markets. We also delivered significant margin expansion and 96% year-over-year earnings growth in the third quarter. This culminated in an adjusted earnings of $5.79, a record for the company. Finally, I wanted to highlight our free cash flow performance, which is up 66% year-to-date reinforcing our strong execution. Turning to performance across our end-market exposures. Computing, communications, and diversified industrials or CCDI delivered another quarter of strong growth. Data center was again a leading contributor as we continue to capitalize on our unique grid to chip capability and customer focused go to market model. Our data center backlog is expanding and we see traction in our opportunity pipeline and design wins. Across diversified industrials, we delivered broad based growth, led by demand for medical and aerospace and defense applications. We also continued to execute on strong orders from our broad market channel partners and the end customer POS remains very healthy across geographies and applications. Turning to energy and industrial infrastructure or EII, we saw broad based demand momentum, and Bassler Electric continues to perform well. Within industrial infrastructure, growth was led by industrial automation, heavy construction, and HVAC demand recovery. Within energy infrastructure, grid modernization and utility drove increased demand for our market leading protection solutions. Battery energy storage served as another key growth engine, where we are developing market leading protection architectures to support rapid power scaling. In transportation and logistics or TNL, commercial vehicle demand strengthened in the quarter. This was driven by our proactive go to market engagement and a market recovery across heavy truck, agriculture and material handling equipment. In passenger vehicles, revenue increased driven by strong execution as our teams are delivering content market share gains despite lower global vehicle production. Overall, our third quarter performance reinforces the strength of our end market diversity and technology positioning. Our growth also reflects our sharpened focus on high-growth opportunities and our go to market shift. As we continue to outperform our end markets. Heading into the fourth quarter, we are well positioned to maintain our operational momentum. Bookings were again a record in Q3 driven by growth across our businesses. And our book to bill remained well north of 1.0x. Now let me update you on the progress we are making across our strategic priorities. Starting with go to market, we continue to see strong customer engagement translate into a larger, higher value new business funnel. By engaging customers earlier in the design cycle, with more of our multi technology solutions, we are increasing both the breadth and value of our opportunity pipeline. As evidence of our traction year to date, the average dollar value per new business opportunity has increased by more than 20%, While third quarter design wins again grew double digits year over year. Together, these results reinforce our confidence in our long term organic growth targets. Now let's turn to our high-growth opportunities or HGOs. Early on, we also believe our sharpened focus on our 3 HGOs data center, grid and utility infrastructure, aerospace and defense is beginning to deliver tangible returns. Today, I wanted to specifically highlight our expanding aerospace and defense or A&D opportunity. While this high-growth market represents a small portion of revenue today, sales growth outpaced company average in Q3. AMD is an ideal market for our technology. Given its mission critical requirements and rapid transition towards high voltage DC architectures, During the quarter, we secured several key A&D design wins, including high reliability power semiconductor modules, for defense flight control system and specialized switching solutions for a commercial space customer. Long term, we believe a focused A&D growth strategy diversify our market exposure while providing strong and resilient profit contribution. Finally, turning to operational excellence. At our May Investor Day, we highlighted semiconductor products and transportation, where we see opportunities to enhance our long term growth while optimizing our portfolio and driving long term profitability enhancements. While early, we are seeing evidence of our progress towards our 2030 goals. Starting with semiconductors. We delivered significant revenue growth and improved profitability in the quarter. Was led by our protection franchise, which delivered record revenue and profitability while we see continued strong bookings momentum into year end. Long term, Our protection business remains well positioned as a market leader and key enabler of the long term electrification megatrend, across our markets. In power semiconductors, organic growth accelerated alongside improved margins. While early, we are executing our more focused power semiconductor strategy around higher power and higher value opportunities. We are delivering for our customers as our orders have accelerated. We remain disciplined in balancing power semi growth opportunities with active portfolio rationalization and footprint optimization. During the third quarter, we executed an amendment to a commercial supply agreement for our Dortmund facility. In exchange for a 1-time payment, this amendment accelerates the delivery of contracted volumes while eliminating restrictive covenants. This step materially improves the underlying economics of the Dortmund asset, and grants us significant strategic flexibility and optionality as we evaluate our broader power semiconductor footprint. Over time, we remain committed to better positioning our power semiconductor franchise for sustainable growth structural margin expansion, and enhanced long term returns. Turning to transportation. Our sharpened focus on our market leading customers, efficiencies, and scale is driving solid growth while we are seeing continued margin expansion as we scale our operations and simplify our cost structure. We believe our enhancements position us well to drive structural margin expansion in a muted underlying market environment. Taking a step back, we are encouraged by our third quarter results. Our teams are executing against attractive market demand converting and expanding customer opportunity pipeline,, and driving profitability enhancements across the portfolio. I want to thank our teams for their dedication to serving our customers and delivering value. With that, I will turn the call over to Abhishek.

Thank you, Gregory, and good morning, everyone. Today, I will walk you through our third quarter financial performance, before reviewing our fourth quarter outlook. Please turn to Slide 6 for details on our third quarter performance. All comparisons are versus the prior year unless noted otherwise. Reported net sales in the third quarter were a record $767 million, reflecting the $28.5 million 1-time Dortmund customer amendment fee. Which was not contemplated in our previous guidance. Organic growth contributed 22% The Bassler acquisition contributed approximately 6%. And foreign exchange was neutral. Adjusted EBITDA was $226 million, while adjusted EBITDA margin finished at 28.4% up 96 basis points. Adjusted diluted earnings per share were $5.79 up 96% versus the prior year, and a record for the company. The improvement reflects strong volume leverage, favorable mix, pricing, and operational execution. As a result of our operational excellence initiative, we expect to realize approximately 5 million in 2026 run rate savings. We continue to deliver progress towards our 2030 optimization goal of $50 million and see further opportunities into 2027. Operating cash flow was $230 million, and free cash flow was $216 million up 64%. Year to date, free cash flow was $409 million up 66% as we continue to drive strong conversion. We ended the quarter with $825 million of cash on hand and a consolidated net leverage ratio of 0.7 times. We also returned $20 million to shareholders through our third quarter dividend. Please turn to Slide 8 for our segment highlights. Starting with the electronics product segment. Reported electronics sales were $426 million, reflecting the $28.5 million 1-time Dortmund customer amendment fee. Organic sales increased 27%, with passive products up 30% and semiconductor products up 24%. Growth was broad based across data center, diversified industrial, transportation applications. Within semiconductor products, we observed continued strong protection demand and improved power demand. Excluding the 1-time amendment fee, adjusted EBITDA margin for the electronics segment was 33.1%, up 910 basis points versus the prior year. Reflecting volume leverage favorable price, product mix, and operational execution. While early, we are seeing the benefits of our more focused power semiconductor strategy. Looking ahead, we will continue to pair healthy end market demand with disciplined portfolio and footprint actions in our power semiconductor franchise. With the goal of driving improved long term profitability and returns. Moving to our transportation product segment on slide 9. Sales were $182 million up 7% both on a reported basis and organically. Commercial vehicle organic sales expanded 20% fueled by strong demand in heavy truck data center, and agricultural equipment. Passenger vehicle organic sales declined 5% reflecting lower global auto production and planned exits of legacy lower margin sensor lines. Adjusted EBITDA margin was 19.6% up 280 basis points. Strong commercial vehicle volume leverage and operational execution more than offset the impact of softer passenger vehicle demand. Turning to slide 10. Industrial segment sales were $158 million up 65%. Organic growth was 27% supported by strong data center, grid infrastructure, HVAC, and industrial automation demand. The Basler acquisition contributed approximately 38% to growth. Adjusted EBITDA margin was 25.2%, up 54 basis points, reflecting favorable volume leverage operational efficiencies, price, and mix. Turning to our outlook for the fourth quarter on Slide 11. We expect continued healthy demand across several of our key markets supported by strong backlog and customer engagement. Based on current market conditions, we expect fourth quarter net sales in the range of $750 million to $770 million At the midpoint, this represents approximately 28% growth versus the prior year. And better than typical seasonal sales. We expect fourth quarter adjusted diluted EPS to be in the range of $5.05 to $5.25 per share. Our guidance assumes an adjusted effective tax rate of approximately 24%. We remain focused on executing the value creation playbook we outlined at investor day. Driving 7 to 9% organic growth over time, expanding adjusted EBITDA margin toward 24% to 26%,, generating strong free cash flow deploying capital with discipline. Our third quarter performance reinforces our confidence in the strategic path toward our 2030 targets of 4.5 billion revenue 1.1 billion adjusted EBITDA, and more than $600 million of annual free cash flow. Thank you to the Littelfuse teams for their continued execution commitment to our customers. With that, operator.

Please open the call for Q&A We will now begin the question and answer session. To withdraw your question, press *1 again. We ask that you pick up your handset when a question to allow for optimum sound quality. You are muted locally, please remember to unmute your device. Please standby while we compile the Q&A roster. Your first question comes from the line of David Williams with Needham. Your line is open. Please go ahead.

Hey. Good morning, and congratulations on the really solid results here.

Thank you, David.

So maybe first, kind of think about the mechanics of the semi growth, and you kinda walked through some of that. But can you help us understand how much of this is maybe cyclical versus demand and perhaps maybe the repositioning of what you have done within those power semis. I am just trying to understand how much of this is really demand versus the operational changes that you have made within that business?

Yeah. Thank you, David. Yeah. So look. Semiconductors as part of our electronics segment had strong performance in the quarter. You know, you start with our protection semiconductor franchise, We had a record, revenue and profitability from this segment, and this is a very model profitability segment for us in general. And I would say 2 things. 1, we do have good market momentum. We actually had broad based growth in our protection semiconductor business across our markets. And second, I would say we also, are taking share. So we have some opportunities to take share. For example, in transportation, we outperformed the market. In the passenger car, and a lot of that was driven by of that anyway. Significant part of it was driven by our protection semiconductor business. That other franchises like our passives as well that were doing well in that business. So I would say that is the thing about protection semiconductor. And then in power semiconductors, we had also good performance. We do have volume growth, so we do see volume growth and momentum. And that is driving, obviously, volume in this business with a high fixed cost is driving good profitability improvement. But we are also starting to see benefits from our manufacturing optimization and our portfolio optimization. So it is early, but we have more focus. Luke we have said, we are focused much more now on high voltage, high power, high value applications. And we are deemphasizing parts of the portfolio where we have less value and differentiation. And it is early in the progress, but we are seeing some of that momentum. So semiconductor revenue and profitability growth did deliver also materially to the electronics segment profitability growth in the quarter. Yeah.

And, David, just to a couple of things. If you think about it at the highest level and kind of think about the year and the way the year played out, Q1, we saw an organic growth of 9%, and Q2 was 14%, and then Q3, we just posted 22% organic. Okay? So that is point 1. Point 2, I would say is if I think about our semiconductor business, our semiconductor products. Right? If I think about the organic progression throughout the year, in Q1, we posted 8%. Q2 was 15%, and then Q3 is 24%. So you are seeing sequential improvement. Based on kind of what Gregory was saying, which is the demand has improved and has improved sequentially throughout the year.

And 1 other thing because you asked a little bit about the cycle, just add that. You know, we see broad-based demand across our markets. We talked about diversified industrials and industrial, we are seeing broad based demand across our markets. And also, we are very focused on making sure that channel inventory is normal. We have strong POS growth in our channel as well. So we feel that there is still just broad based strength across the markets.

Okay. Fantastic. Thanks for all the color there. And then maybe just secondly on that, the kind of the pricing and the lead times, any color there on what you are seeing in terms of being able to raise pricing? And how are your lead times, as we kinda seem to be getting into a more constrained environment here? Thanks again for the help.

Yeah. Sure. Thank you. So look, we continue to be in an inflationary environment. I think we all know that where the commodities freight, fuel cost, etcetera. so we continue to be in an inflationary environment. And we are working to manage that as best as we can. It is an environment where we are passing price increases along to our customers as we need to based on that so that we can maintain, our business conditions We also have a lot of productivity activities to improve our cost structure as well. So I would say that is the environment that we continue to be in, from that perspective.

And, David, just. I will just say this. Somebody said this in 2025. We, you know, we made a commitment. We delivered on our commitment. Same thing in 2026, which is our intent is to be price cost neutral. Okay? At the end of the day, I mean, to Gregory's point, we are in an inflationary environment. Whether you think about pricing, whether you do it through surcharges, driving product to be in the factory, but our intent for 2026 is to be price cost neutral. in an effort to manage inflation.

And then to the second part of your question on lead times, you know, I would say our lead times are pretty normal across our business, but 1 thing we are seeing is customers booking farther out.

So it is. They are now booking outside of lead time, and so we have more bookings into next year. For example, at this time than we would normally. So we see customers booking farther out. But as of now, lead times are materially normal, I would say, in our business.

Thanks again, and, good luck into the fourth quarter, gentlemen.

Appreciate it. Thank you.

Your next question comes from the line of Christopher Glynn with Oppenheimer. Your line is open. Please go ahead.

Yeah. Thanks. Appreciate all the color today, and good times there. Congrats on the success that is ongoing.

Wanted to ask and build off the comment on sort of kind of customer dictated lead times there. Booking a little further out. Just in terms of them being more proactive about securing supply is, you know, is there any view they need to on their part, you think they need to get in line before others? Yeah. Thank you, Christopher. Look. I think, you know, from our perspective, our lead times are broadly normal. So we do not have a challenge, right, that they are needing to get in line and we have this backlog. But we. I will say we are just seeing a customer behavior where they are tending to book farther out. I think the whole ecosystem is planning a little more now because there is been a lot of growth and they continue to see a lot of growth. I think, you know, we do all hear about in the supply chain some constraints here and there. We are not largely having constraints in our supply chain, but I think there are some constraints in the supply chain that is making people book out. So our perspective, it is not for our business. We do not have people needing to get in line but they are tending to book farther out. And I think that is just maybe a little bit of a different customer behavior. The other thing I will say is that where bookings are good across our markets. So we are seeing broad strength across our markets and all of our markets have kind of a strong kind of bookings. that is the other thing I would add.

Yep. That makes sense. And you know, I realize you have you know, very crisp book to bill visibility at the distributor level. You know, but maybe it is a little a little more opaque as you kind of think about the end customers. Inventories and what they are pulling through distribution. So I think that is a little more of an art than as you try to evaluate that dynamic. Just curious how you think about that.

Just given the fact that we are just stacked quarter after quarter, but really robust and expanding book to bill, So 1 thing I will just. Yeah. On the other. On the question, I think you know, to be clear in our new go to market model, 1 of the 1 of the value propositions we have of our new go to market model is that we call on 2 thirds of our revenue customer direct. So we talked about this. that is about a thousand customers is about 2 thirds of our revenue. And we call on those customers direct. Now some of those customers choose to buy through distribution. We call on them direct, which means we are talking to the end customer about their end demand. And so we understand their platforms and what is going on. So this puts us in a better position that actually 2 thirds of our revenue we talk directly to the customer about the platforms we are in. And then there is the 1 third that is kind of the broad market through the channel where, yeah, it is more, you know, you have less visibility to the individual customers. So talking to that first top 2 thirds, I would say we do not see broadly customers hoarding inventory or building inventory either. There is a planning further out but we do not see kind of an inventory building phase broadly in the ecosystem. In the bottom third, we talk to our channel partners, and they also see breadth to the market. I mean, the 1 important thing we look in the bottom third is the number of new customers, the breadth of customers, number of design wins, and that also seems to be very healthy. So, that is what I would say. So we do not see that as much. And 1 of the changes in our go to market model is we are closer to more of our customers directly to understand what is going on. We think that is gonna help us. As we all navigate through this, you know, through this up cycle. Great.

Thanks for that color. I am just going a little department move to how should we think about the fixed cost savings with that? Was there any impact to adjust EPS from this action in the and should, you know, kind of adjust them to the range of this structural move have or is it 1 and done? No.

Christopher, it is not. So if you are going to think about the Investor Day and what we laid out, we had said, hey, we are going to walk away from 1 to 2 points of revenue as we look over the next 5 years in terms of you know, product-- product rationalization, and then that should generate about $50 million of incremental EBITDA over the next 5 years. So far, we have identified in 2026 is a $5 million savings in connection to that 50 million. We expect more to come through in 2027. And as we get more clarity in 2027, we will be transparent and laid out for you. Okay. Thanks.

Your next question comes from the line of Luke Junk with Baird. Your line is open. Please go ahead.

Yeah. Good morning. Thanks for taking questions. I apologize if any of these are repeats. I am juggling a lot of calls today. Gregory, maybe to start with just. It would be great if you can help us understand some of the factors animating your data center growth right now in terms of maybe seeing some initial high voltage uptake or maybe more interestingly, if you could talk through some of the impacts that you are seeing relative to all the work that you have done to align with customers from a co-engineering standpoint? Are you seeing some benefits in the low voltage portfolio today of all the work that you are doing to position into those high voltage sockets into the future?

Yeah. Thanks, Luke, and thank you, for the question. Yeah. So first starting, I think, just starting with data center, we are continuing to see large. Significant growth in data center. Data center was a leading growth driver for our performance in the quarter. And so that continues to be good. The vast majority of the revenue we ship today is still in the low voltage shipments. We are starting to see I would call it small volume, of the higher voltage platforms, but that is really yet to ramp meaningfully from our perspective. So I would say the growth we have had so far is all in the low voltage systems. Now if you go and look at our bookings and our backlog, we have strong backlog going into the next quarter. And like I talked about previously, that backlog being next year. And bookings and backlog and design wins, have more contribution from the higher voltage systems. So we continue to have momentum actually in both. I would say we have a increasing number of design wins around high voltage systems. We talked about the content expansion we have. So we expect that to continue to accelerate. But we continue to have design wins in both and we continue to have revenue in both. And so for us, it is really. I know there is a lot of questions in the market about how fast that is gonna really go and what percent will actually evolve. For us, we consider that we are gonna continue to have strong growth either way. And for example, you know, design wins again in the in the third quarter were 2x last year, and so we continue to see good, moment. Momentum across that. I will also just emphasize as well that our growth. You know, data center is a strong growth driver, but our growth in this electrification megatrend is broad. So we are seeing breadth across the other markets, which also gives us a strong view into next year. Thank you.

And then for my follow-up, maybe Gregory or Abhishek, you could both comment on this. Just thinking out loud here, comparing and contrasting now with electronic adjusted operating margins reaching the high 20s in the third quarter. Today, just thinking through some of the underlying dynamics versus what prior peak margin dynamics were like in this business, just maybe some of the key drivers behind incremental margins in electronics and importantly, how sustainable you think those drivers are going forward? Thank you.

Absolutely. Thanks, Luke. Thanks for the question. So first of all, if you kind of think about the performance in the quarter, tied to our Electronics segment, we saw 27% organic growth in electronics. Then if you kinda peel the onion a little bit, passive was up 30%. And as you would imagine, passive products, when they have organic growth of 30%, will see. you will flow through, and operating leverage in that business is super strong. Then lastly, if I think about our power semi, right, I just highlighted the $5 million or about the 50 that Gregory mentioned, that protection had the highest quarter in terms of revenue and profitability that also played a big role. In the electronics margin expansion of 910 basis points, right, that played out in the in the year so far. between transportation and power semis. As we start to streamline that, drive more operational execution there, start to look at you know, more product line rationalization, footprint optimization, we are going to see margin expansion in electronics over the longer haul. Okay. So that is that is how I would think about it. But at the highest level, if you think about Q3, it is volume leverage, it is operational execution, and when protection and passives grow, the operating leverage in that business is really, really strong.

Yeah. Maybe, Gregory, I would be curious to get you to chime in here as well because I think maybe there is a little bit of concern relative to where margins have been in this business in the past. High 20% to 30% margins in electronics were kind of a little bit of a cyclical high previously. It feels like this has more undergirding to it. Can you maybe just talk about qualitatively your margin expectations in this business, especially as you bring on the incremental high voltage content and, you know, think through some of these mixed factors especially. Thank you.

Yeah. Look. I think, you know, what is important, I think, is that we are increasingly focused on strategically capturing more value at our customers and more share at our customers And, also, our new go to market model is also very focused about making sure that we are optimizing across all the markets that we are in. Obviously, there is a lot of momentum right now in data center, but there is a lot of other good markets too. And we mentioned, for example, earlier that the content the dollar content per opportunity in our design wins is up 20%. Versus a year before. And, our design wins are also broadly across all of our markets up double-digits. So I do think that we are making progress on our relative market and share position, which is going to improve our relative performance, as we go through the cycle. So, you know, there is, you know, there is always going to be cycles in the business Right? But our view is that our goal is to be much more market focused and to outperform the markets and also make sure we are investing in the markets that are growing. So that is why I have not focused on the high growth markets. that is why we focus on markets that also have a lot of resilience, like aerospace and defense, for example, that have a little bit of different resilience than the normal cycle. So I think we feel strong about our 2030 model we put out there. We feel like we are making a lot of progress on the 2030 model, both from a top line and the bottom line performance. And to me, the most significant thing is we will be able to get more share at a top line and also have higher value solutions and higher voltage. So there is a lot of I would call them tailwinds in those directions. But in addition, like Abhishek mentioned, we have a lot of focus on the bottom line as well. I think, our goal is to have improved performance as we go through whatever cycles the business is in.

Understood. I will leave it there. Thank you.

Your next question comes from the line of David Williams with Needham. Your line is open. Please go ahead.

Hey. Thanks for letting me jump back in. Wanted to ask quickly on Bassler, and, that seemed to be performing very well. But just curious if you are seeing the benefits of the synergies that you thought you might have in that business, or is this mainly just the recovery and demand dynamics within that business? And maybe what are the opportunities for growth there? Maybe to outpace what your original expectations were when you made the acquisition?

Yeah. Thank you. So I will kind of start with kind of the strategic point of view and where we are, and then Abhishek can fill in some of the kind of details But I would say, we. We are we are seeing significant benefit from Basler to our market position, especially in the grid infrastructure and grid and data center, and those were 2 of our strong growth markets Those 2 were our strong growth organic markets. but also that significantly contributed to growth. So our new go to market model is actually benefiting us, and there are actually 2 ways, right? So 1, I would say that we are seeing more opportunity for Basler products in data center. Due to the relationships that Littelfuse has at the hyperscalers. Leveraging some of Bachelor's technology like the protective relay technology for next generation architecture. So we are talking to data center customers now about call it, n plus 2 architectures leveraging the Basler technology. Our go to market is benefiting us there. On the flip side, kind of the other way around, Basler had a good go to market in utility and grid space where Littelfuse did not have any direct sales coverage. And we are actually seeing good traction now for some Littelfuse product out. Some legacy Littelfuse product opportunities like arc-fault-- sorry, arc-fault Protection Solutions through to utility customers or some of our grid scale protection solutions into the grid. Where we did not have the customer relationships. So it is early, but we are seeing traction already from, I would call it, a customer opportunity pipeline, perspective that has not flowed through directly yet but will. Abhishek can maybe give a little bit more on the details of the synergy.

Yeah. And, David, as you can then think about what that all means in terms of what Gregory just described. So when we when we came out with the Basler guide the first time around, we said, hey. Look. Our top line is gonna be in the $130 million to a $135 million range. Clearly ahead of our synergy realization, and so our latest view for the year is 130 million to $140 million in top line. Then if you kind of think about the bottom line, when we announced that, we said, hey, we expect $0.01 to $0.05 of accretion and our current view for the year is about $0.25 to $0.30. So it is kind of building off of what Gregory's saying. Our synergy realization is ahead of schedule. And we feel really good about the asset and the acquisition that we did, both in the top line and the bottom line.

Great. Certainly appreciate the color.

If you would like to ask a question, please press *1. There are no further questions at this time. I will now turn the call back to CEO, Gregory N. Henderson, for closing remarks.

Okay. Thank you, and thank you all for joining us today. I would just like to, in closing, thank our global teams for a strong third quarter. We have good market momentum, but also strong execution across the business. And we feel confident on the progress we are making towards our 2030 targets. So thank you very much.

This concludes today's call. Thank you for attending. You may now disconnect.