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- **Revenue Growth**: 9% YoY to $582M, driven by Water (+11%), Energy (+15%), and Distribution (+3.4%).
- **Margin Expansion**: Gross margin +20bps, operating margin +80bps, with Distribution margin jumping to 8.3%.
- **Strategic Investments**: New pressure-boosting products, Turkey factory expansion, and $100M+ TAM acquisitions.
- **2026 Outlook**: Low-mid 30s% Energy Systems margin, international growth offsetting U.S. housing weakness.
- **Cash Position**: $102.9M cash, $1.4M shares repurchased YTD.

**【CEO Opening Remarks】**
- Q3 2025 revenue of $582 million (+9% YoY), driven by strong organic growth across all segments (Water Systems +11%, Energy Systems +15%, Distribution +3.4%).
- Gross margin improved 20bps to 35.9%, operating margin expanded 80bps to 14.6% due to cost discipline and volume leverage.
- Key initiatives: new pressure-boosting platform launches (VR Spec Pack, Inline Spec Pack, VersaBoost Pro), Turkey factory expansion, and strategic acquisitions.
- Resilience in challenging markets (e.g., U.S. housing starts down but Water Systems U.S./Canada +9%).

**【CFO Financial Commentary】**
- Adjusted EPS of $1.30 (+11% YoY), driven by higher sales and margin expansion.
- Segment performance:
  - **Water Systems**: $208.7M gross profit (+$7.4M YoY), 17.9% operating margin.
  - **Energy Systems**: $80M sales (+15% YoY), 31.8% operating margin (down 280bps due to tariffs and mix).
  - **Distribution**: $197.3M sales (+3% YoY), 8.3% operating margin (up 190bps YoY).
- Cash flow: $135M from operations, $1.4M shares repurchased YTD.
- 2025 guidance: $2.09B-$2.15B revenue, $4.00-$4.20 EPS (adjusted).

**【Q&A Highlights】**
- **End Market Outlook**: U.S. housing flat but international growth (Latin America, Middle East) expected to drive volume. Price realization to continue at 1-2% YoY.
- **Energy Systems Margin**: Q3 margin dip due to tariffs and mix, but 2026 outlook for low-mid 30s% with new price increases.
- **Acquisition Strategy**: Active deal pipeline, focusing on global expansion (e.g., Turkey, India) and $100M+ TAM opportunities.
- **Distribution Growth**: 8.3% margin expansion via cost control, new product launches, and service model improvements.
- **Tariff Impact**: Q3 Energy Systems tariffs ~$5M, partially offset by price increases starting Q4.

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