Good day and welcome to the nVent Electric Third Quarter 2024 Earnings Conference Call. All participants will be in listen-only mode. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I will now turn the conference over to Tony Riter, Vice President of Investor Relations. Please go ahead.

Thank you and welcome to nVent’s third quarter 2024 earnings call. On the call with me are Beth Wozniak, our Chair and Chief Executive Officer, and Sara Zawoyski, our Chief Financial Officer. They will provide details on our third quarter performance, an outlook for the fourth quarter and an update to our full year 2024 outlook. Please take note: as a result of the previously announced agreement to sell the thermal management business, the Company is reporting the results of this business as discontinued operations and has reclassified 2023 and 2024 results for all prior periods. In addition, guidance is now presented on a continuing operations basis. All results referenced throughout this presentation are on a continuing operations basis unless otherwise stated. Before we begin, let me remind you that any statements made about the Company's anticipated financial results are forward-looking statements subject to future risks and uncertainties, such as the risks outlined in today's press release and nVent's filings with the Securities and Exchange Commission. Forward-looking statements are made as of today and the Company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results. Today's webcast is accompanied by a presentation which you can find in the Investors section of nVent's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We will have time for questions after our prepared remarks. Please limit your questions to one question and one follow-up. Please turn to slide three and I will turn the call over to Beth.

Thank you, Tony, and good morning, everyone. It's great to be with you today to share our strong third quarter results. We continue to execute on our strategy for growth with a focus on high-growth verticals, new products and global expansion. In the third quarter we delivered record sales, up 9% both on a continuing operations and total basis. Total adjusted earnings and cash flows were strong, coming in better than expected and we continue to make investments to expand our data solutions business. Our portfolio transformation is underway with the announced sale of the thermal management business and we expect the sale of the business to close by early 2025. Our most recent acquisition, Trachte, is off to a good start, growing sales at strong double digits and is a great new platform for nVent. We believe these portfolio moves will make nVent a more focused and higher-growth electrical connection and protection leader and further position nVent with the electrification, sustainability and digitalization trends. Now onto Slide four for a summary of our third quarter performance. Sales in the quarter were up 1% organically led by infrastructure. Year-to-date new products have contributed over three points to sales growth and we've launched 77 new products. Adjusted operating income grew 4% year-over-year with return on sales down 120 basis points due to investments and mix. Adjusted EPS was $0.63. We generated an impressive $143 million of free cash flow, up over 30%. We're on track for another strong year. Looking at sales performance across our key verticals, infrastructure led the way up low double digits organically with data solutions growing double digits. Industrial was down low single digits, and commercial/residential declined mid-single digits with continued end-market softness. Turning to organic sales by geography, North America was up low single digits and Asia Pacific had strong broad-based growth. Europe declined low single digits. Lastly, organic orders in Q3 grew mid-single digits year-over-year. Looking ahead to Q4 from a vertical perspective, we expect infrastructure to have the strongest growth, particularly data solutions and power utilities. Industrial is expected to be flat and commercial/residential to remain soft. In addition, macro uncertainty remains with the upcoming elections and interest rates, which has some distributors cautiously managing inventory. Overall, I'm very proud of our nVent team and how we continue to execute and deliver for our customers and shareholders while transforming the portfolio. We're on track for another strong year. I will now turn the call over to Sara for further detail on our third quarter results and our updated outlook for 2024. Sara, please go ahead.

Thank you, Beth. We had a strong third quarter performance with both segments growing, better-than-expected earnings and record cash flow. Let's turn to Slide five to review our results, which as a reminder are all on a continuing operations basis. Sales of $782 million were up 9% relative to last year or up 1% organically. Volumes contributed approximately two points to growth and price was essentially flat. Acquisitions added $59 million to sales or eight points to growth — better than expected. Foreign exchange impact was neutral. Third quarter adjusted operating income was $168 million, up 4%. Return on sales was 21.5%, down 120 basis points year-over-year. This reflected tough prior year comps and corporate costs and electrical and fastening mix and higher investments this year. Inflation was roughly $25 million in the quarter. Q3 adjusted EPS was $0.63, down 3% due to higher interest and taxes as expected. We generated outstanding free cash flow in the quarter of $143 million, up 33% or 18% of sales, reflecting strong working capital performance. Now please turn to Slide six for a discussion of our third quarter segment performance. Starting with Enclosures, the team delivered another excellent quarter. Sales of $477 million increased 16% and 1% organically. Acquisitions added 14 points to sales. The Trachte acquisition performed very well with sales up strong double digits versus a year ago and a growing robust backlog. The integration is off to a great start. From a vertical perspective infrastructure led up double digits with strength in data solutions in both power and cooling. Industrial and commercial/residential each declined. Geographically North America grew low single digits and Asia Pacific grew mid-teens while Europe was down. Enclosures' third quarter segment income was an impressive $104 million, up 17%. Return on sales of 21.9% increased 20 basis points year-over-year driven by strong execution, productivity and higher margins from new products more than offsetting inflation and helping fund investments. Electrical and Fastening returned to sales growth in the quarter. Sales of $305 million increased 1% organically. Growth was led by infrastructure including power utilities up high single digits. In addition, industrial grew mid-single digits. Commercial/residential remained soft. Geographically, organic sales in North America were flat and Asia Pacific grew double digits while Europe was down. Electrical and Fastening segment income was $93 million, down 5% year-over-year. Return on sales was a solid 30.4% down 190 basis points, mainly due to tough comps from mix. On Slide seven titled Balance Sheet and Cash Flow, we ended the quarter with $137 million of cash on hand and $600 million available on our revolver. Free cash flow was exceptionally strong in the quarter. Year-to-date free cash flow of $277 million was up nearly 50% versus a year ago. The fourth quarter is historically our highest cash flow quarter and we expect continued improvements in working capital. Turning to Slide eight where we outline our capital allocation priorities, we will continue to take a balanced and disciplined approach to capital allocation to deliver strong returns. Growth remains our first priority, both organic and inorganic. In the quarter, we expanded our footprint to increase our liquid cooling capability fourfold and support our growing backlog. We completed the acquisition of Trachte, providing a new growth platform, and we have returned $195 million year-to-date to shareholders, including $100 million in share repurchases in the third quarter. Looking ahead, we expect to have significant optionality for further capital deployment with the sale of the thermal management business and strong cash flow generation. Moving to Slide nine and our full year outlook on a continuing operations basis, we are updating our full year guidance to reflect the thermal management business moving to discontinued operations and narrowing the range with one quarter to go. For the full year, reported sales are expected to grow approximately 13% and organic sales are expected to be up roughly 3%. Acquisitions are expected to contribute approximately 10 points to sales growth and FX is expected to be neutral. Our outlook for full year adjusted EPS is $2.49 to $2.51 which represents growth of 7% to 8%. This includes a $0.08, or three-percentage-point negative impact to EPS related to changes in the global tax standards. A few important items to note for the year. First, we expect adjusted operating income to grow 15% to 16%. This reflects price and productivity offsetting inflation. In addition, we are making investments in capacity, new products and digital to accelerate growth and productivity. Second, we are well on track to generate over $400 million of free cash flow with conversion in the range of 95% to 100%. Third, corporate costs are now expected to be approximately $110 million. This includes indirect costs of approximately $15 million previously allocated to the thermal management business. Work is already underway to address these costs. A few additional 2024 assumptions include a tax rate of approximately 23%, net interest expense of approximately $105 million, shares outstanding of approximately $168 million and CapEx of approximately $80 million. We expect full year 2024 to be another year of strong sales, profit and cash flow. Moving to Slide 10 and our fourth quarter outlook, we expect reported sales to grow 11% to 13% with acquisitions contributing approximately nine points to sales. Organic sales are expected to be up 1% to 3% with both segments growing. We expect adjusted EPS to be between $0.58 and $0.60, up 5% to 9% year-on-year. Wrapping up, I am pleased with our third quarter performance and believe we are well positioned heading into 2025. This concludes my remarks and I will turn the call back over to Beth.

Thank you, Sara. Turning to Slide 11, let me give you an update on our data solutions business and liquid cooling in particular. As you know, we are a leader in liquid cooling for data centers and have been offering solutions for many years across the cooling continuum. Our differentiation is based on our deep application expertise and our innovative multigenerational designs. We continue to expand our product portfolio to serve data center customers across hyperscale, enterprise, multi-tenant and via our distribution partners. Our high-density liquid cooling portfolio includes rack and row coolant distribution units and various manifolds. Our advanced cooling solutions are specifically designed to manage the substantial heat output of cutting-edge AI infrastructure, helping to drive optimal performance and longevity. We are well positioned to support the expansion of AI capabilities, driving innovation and efficiency in high-performance computing environments. We are currently engaged with NVIDIA in the design of liquid cooling products, solutions and architectures that meet the needs for the GB200 NVL72 and its follow-on next-generation platforms. We will be showcasing our NVIDIA reference design solutions at Supercomputing in a few weeks. We are also actively engaged with other chip manufacturers to understand future cooling requirements. In addition to investing in new products, we are expanding capacity in our facilities, building out our advanced lab and testing capabilities and partnering with our suppliers to ensure they can rapidly scale with us. We continue to see high demand for our data solutions products in cooling, power and cable management and now expect 2024 Data Solutions sales to exceed $575 million. We believe we are well positioned to win in this rapidly growing space. Please turn to Slide 12. Over the last few years, we have demonstrated our growth strategy is working with strong execution, delivering robust sales and adjusted operating income and earnings per share. Looking ahead to 2025, we are undergoing a portfolio transformation, which we believe will make us a more focused, higher-growth electrical connection and protection company. Over 70% of our portfolio is exposed to the secular trends of electrification, sustainability and digitalization. Infrastructure now represents approximately one third of our portfolio and is expected to grow the most next year. We are well positioned in data solutions and power utilities with robust backlogs. Our outlook for industrial and commercial/residential is more positive. New products, again, are expected to be a key driver of our growth. Finally, as part of our portfolio transformation, we have a very healthy M&A pipeline and project nearly $2 billion in available capital to deploy from the thermal management sale and our robust free cash flow generation. In summary, we expect 2025 to be a strong growth year. Wrapping up on Slide 13, we had another strong quarter of operational performance, including record cash flow. Our portfolio transformation is underway. We are well positioned to grow with the electrification, sustainability and digitalization trends and our future is bright. With that, I will now turn the call over to the operator to start Q&A.

Yes, thank you. We will now begin the question-and-answer session. Please limit yourself to one question and one follow-up. Our first question comes from Julian Mitchell with Barclays.

Hi, good morning. Maybe just the first question around the margin outlook. It looks like margins may be down roughly 100 basis points operating-wise sequentially in Q4. Just wanted to check that's roughly correct. And when we're thinking more broadly about margins into next year, you have this big investment spend headwind right now in the second half. Does that normalize into next year? And how quickly should that $15 million of indirect unallocated costs get worked down, please?

Okay Julian, I think that was a three-part question, so let me start with the first one. In terms of that seasonal downtick on margin from Q3 to Q4, it's just that seasonal pattern. If you look historically, Enclosures and EFS tend to be strongest in Q2 and Q3 and lighter from a sales perspective in Q4 and Q1, and the gross margin is commensurate with that. So you do have some seasonality from a Q3 to Q4 standpoint from a return on sales aspect. I think your second question is in regard to investments. We've been very explicit walking into this year that investments are important to fuel future growth, particularly around new products and data solutions. We have seen that accelerate here in the back half, bringing some of that liquid cooling capability online in Q3 and Q4. I think you can expect us to continue those new product and commercial data solutions investments as we move into 2025. Those ramp-up costs should diminish over time as we bring that capacity fully online. I think your third question was around indirect costs. Essentially, as part of the thermal management business moving into discontinued operations, there are some indirect costs that no longer get allocated to thermal management and now sit within the corporate cost bucket. That's roughly $15 million. Two things: one, work is already underway to reduce those costs — we're focused on driving efficiencies and accelerating business process transformation efforts that we already have underway. And two, some of that will fall off with the thermal management business being divested, but there will be targeted actions required and we've started that work, including negotiating contracts. I would expect those indirect costs to reduce throughout 2025.

That's super helpful, thank you. Maybe a simpler second question on the organic sales outlook. I think you're growing 1% to 3% in the current quarter year-on-year. Beth, you sounded more enthused about the outlook for industrial and commercial/residential in 2025. Is it reasonable to assume in 2025, based on your comments today, that you're not too far off perhaps from that medium-term growth placeholder of 4% to 6% you talked about last year?

As we go into 2025, the portfolio looks different and we've been repositioning it around infrastructure. We can look at our backlog and these higher-growth verticals, and we think that will set us up as we go forward. The portfolio is now exposed to those secular trends. As we sit here today though, macro uncertainty remains — we have an election coming up and interest rates are where they are. We've seen distribution partners be cautious on inventory. Recall that a lot of our portfolio is sold through distribution. We expect as we get into 2025 the outlook to be more positive for those channels and end markets.

Thank you. Our next question comes from Jeffrey Sprague with Vertical Research.

Hey, thanks. Good morning, everyone. Just on the NVIDIA collaboration that you mentioned, maybe I missed it, but did NVIDIA press release this name-by-name partner ecosystem or something? Just wondering, are we going to hear that at Supercomputing? Any color there?

More to come. We will be showcasing a lot of our products and collaboration efforts at Supercomputing. We'll be in our booth. I will also say we will have other cooling products in other booths as well. I don't want to give away too much here, Jeff, but you will see nVent products showcased at the Supercomputing show.

Okay. And what was the negative mix effect in EFS that you mentioned?

A lot of that, Jeff, was a prior year effect that we called out last year, particularly in Q2 and Q3. Return on sales in those prior quarters was north of 32% and based on the mix of sales in those quarters, they got an outsized positive mix impact that we didn't expect to continue. So on an absolute basis the return on sales this quarter was north of 30%, it's just that the year-over-year comp was a tough comp. We do think that comp gets easier in Q4 based on what mix looked like a year ago.

And how are you thinking about price going forward? It ticked a little negative and between inflation, productivity and investments collectively, how do you think you can manage that algorithm into Q4 and 2025?

We see pricing as very stable. In the past several years we've seen more outsized price than volume. Now we're seeing strong contributions from volume. We do think pricing will be positive as we go into 2025.

Great, thank you.

Thank you. Our next question comes from Nigel Coe with Wolfe Research.

Thanks. Good morning, everyone. Sara, this is for you. On the 1% to 3% core sales in Q4, can you break that out between the two segments? I'm guessing it's not that different between them, but I want to understand the lumpiness in Solutions and perhaps Liquid Cooling as well, and how that's influenced the Q3 to Q4 pattern because sales look a bit flatter Q3 to Q4 than perhaps normal seasonality.

Your guess is right, Nigel — both segments are expected to be in that 1% to 3% range. If you look just by vertical, we continue to expect good growth in infrastructure, industrial mixed, stronger in EFS and a bit softer in Enclosures, with continued commercial/residential softness overall. Both segments saw good order growth in Q3 which informs that outlook. One caution is that at year-end given macro uncertainty we expect some distributors to manage inventory levels. In terms of Q3 to Q4 seasonality, I think the biggest element is really EFS. Historically EFS is stronger in Q2 and Q3, so you will see a downtick from Q3 to Q4 on EFS sales.

Anything on the phasing of shipments in Data Solutions?

Not necessarily a specific phasing to call out. Last quarter we talked about Data Solutions being more weighted to the second half, and some of that is just timing of meaningful customer programs. But we feel really good about our backlog and orders — the progress we've made building capability and lab capacity. We're excited about Data Solutions and, as Beth mentioned, we're expecting $575 million for the year which is meaningfully higher than a year ago.

That's great. Thanks, Sara. A quick one on the M&A pipeline. You've got a lot of cash to deploy. Do you expect this to be a series of acquisitions or one or two larger opportunities? And will you deploy the bulk of surplus capital in 2025 on M&A or could there be buybacks as well?

We've always said our first priority with capital allocation is growth, both organic and inorganic. Our pipeline is robust and we've demonstrated our ability to integrate larger deals. As we look into 2025, while you can't control the timing of deals, we do have the optionality to pursue a more sizable deal if the opportunity arises. We are disciplined on multiples we pay, but I believe we have good opportunities to execute M&A in 2025.

Okay, thanks Beth.

Thank you. Our next question comes from Deane Dray with RBC Capital Markets.

Thank you. I appreciate Slide 11 with the portfolio snapshots and sizing Data Solutions. You said up double digits. Can you be more specific on what data center did in the quarter in terms of growth?

We don't break that out more specifically. But if you look at the $575 million expectation for the full year versus last year, that's in excess of 20% year-over-year growth. The order book has been strong with continuing backlog growth, so we feel good heading into 2025.

Understood. That brings up market share and growth relative to peers. You are often embedded in platforms where you don't always see the nVent name. How are you addressing visibility of your share? How do you think about profiling that share when you are in many platforms and partners where you might not be name-branded?

Deane, in the hyperscale and high-compute community the nVent name and capability are well known among those involved in design and development. We're continuing to expand our offerings and ensuring we market our capability more broadly, especially into multi-tenant environments and through distribution where familiarity with liquid cooling can be lower. We're working with distribution partners. We're investing in new products, ramping with many customers we can't publicly name, and we're on the next generation of designs. We discussed our collaboration with NVIDIA; stay tuned for more at Supercomputing. From my perspective, we need to continue to move fast — the space is evolving rapidly and we're investing across new products, capacity, supplier partnerships and lab capability to capture growth.

Great. A follow-up on the 4x capacity expansion: if the market is growing in excess of 40%, how much does this capacity expansion cover you in the next couple years? How much is manufacturing capacity versus lab/test capacity?

When we say a fourfold increase in manufacturing capacity, we mean manufacturing throughput and that should get us through the next couple of years, though that can change depending on demand. Our lab expansion more than doubles our current lab capacity and will take us into 2025. We are also working closely with our supply base to ensure they can rapidly scale. We're investing end-to-end — manufacturing, lab, suppliers and test capability — to support continued growth and to serve customers beyond just hyperscalers as AI chips proliferate.

That's great. Looking forward to seeing you at Supercomputing. Thank you.

Thank you. Our next question comes from Joe Ritchie with Goldman Sachs.

Hey guys, good morning. Following that thread, I'm trying to understand the productivity in the data center business and liquid cooling specifically. Previously the offering seemed to be scaling fast and perhaps not fully efficient. Can you comment on margins and productivity in that business today?

I'll start and Sara can add. Our Data Solutions margins reflect the product mix in that portfolio: cable management margins align with EFS, while liquid cooling and power products align more with Enclosures. There's significant investment and start-up costs ongoing, and we expect opportunity to drive more efficiency as scale increases. Margins are good today, and we expect them to improve over time as things scale.

To add, the Enclosures business has delivered strong underlying productivity and operating leverage, and we've seen better mix on new products and programs. Even with capacity investments and ramp costs, we expanded return on sales in the quarter, which speaks to strong underlying productivity.

Okay, good to hear. Circling back to organic growth heading into next year: if you pull out acquisition contribution and Data Solutions comments, it seems the rest of the business isn't growing much this year organically. Beth, are there areas that are depressed where you could see an inflection that would spur organic growth? And are there any capacity constraints if demand inflects outside of Data Solutions?

One area we've said is soft is commercial/residential, and we expect improvement in 2025. Industrial has shown some strength and EFS has strength while Enclosures had some weakness partly tied to CapEx and interest rates and distribution dynamics. We expect those distribution and macro conditions to improve in 2025. Power utilities have strengthened through the Trachte acquisition. Earlier in the year there was inventory at end customers and distributors, but in Q3 we've seen improvement, particularly in utilities. Looking to 2025, once some macro uncertainties subside and given the portfolio changes and backlog, we expect a stronger growth year.

Okay, great, thank you.

Thank you. Our next question comes from Vladimir Bystricky with Citigroup.

Hi, good morning. Following up on growth another way: you had mid-single-digit orders growth but only 1% organic revenue, and you're guiding 1% to 3% organic in Q4. When should we expect that higher orders growth to more directly convert to revenue?

Yes, we're guiding 1% to 3% and there's a mix factor. We have short-cycle orders and some backlog, particularly in data solutions. This quarter we saw macro uncertainty that caused some distributors to manage inventory. As we move into 2025, we expect to see improvements and better conversion of orders into revenue.

To add context for 2024, Enclosures are expected to be strong, mid-single-digit growth this year with infrastructure a big part of that, even with headwinds from industrial and Europe. EFS had a different dynamic earlier in the year with some inventory correction in the utility channel. As we flip into next year, Enclosures being strong and improvements in end markets should help bridge orders converting to revenue.

Got it. Thanks for the color on Trachte as well — you mentioned it's off to a good start with double-digit growth. How much visibility do you have into their backlog? How far out does it extend?

In some cases we have about a year of visibility on orders, and in others the visibility is shorter. We have a good backlog going into next year. Trachte provides control houses used to support upgrades for aging electrical infrastructure as well as for renewables and data centers. We see continued strong growth and nicer visibility there.

Appreciate the color, thanks.

Thank you. Our next question comes from Nicole DeBlase with Deutsche Bank.

Good morning. Starting on orders and dovetailing to 2025, have you seen any sign of improvement in order activity for industrial and commercial/residential? Or is your conviction those parts of the business can turn positive more about rates coming down and macro dynamics improving?

I'd say things have been stable. Stability is positive given where we were earlier. Utility has certainly improved. But our view is that interest rates, macro uncertainty, and distributor cash management behaviors have impacted ordering patterns. We expect that to improve in 2025.

Okay. Can you talk a bit about channel inventory holistically? It seems like things are going according to plan with fewer headwinds in the back half. How would you characterize inventory now?

Through the distribution channel we've seen positive sell-out while sell-in has been a bit weaker. Many distributors have been cautious, managing cash flow and inventory due to interest rates. We expect that situation to improve in 2025 as end-market demand shows through.

Thank you. I'll pass it on.

Thank you. Our next question comes from Jeff Hammond with KeyBanc Capital Markets.

Hey, good morning. On capital allocation, you did $100 million of buybacks in the quarter. How should we think about any earmark for buybacks around the proceeds from the thermal sale?

When we announced the sale, we said our first priority is growth, both organic and inorganic, but there's opportunity for buybacks as well. We did a $100 million buyback in Q3. Going into next year, if M&A opportunities aren't the right fit, there will be opportunity to allocate capital to buybacks. We will remain disciplined.

Okay. Utility was noted as having been a drag but you called out high single-digit growth. Is that just a function of comps or is the business actually reaccelerating?

In EFS, we had very high growth in 2023 and extended lead times earlier in the year. Those have come back in line. Q3 in our EFS utility segment was very strong. We see backlog across Enclosures and Trachte supporting that. We expect utility to be a key driver of infrastructure growth in 2025.

Orders were up mid-single digits. Is that reacceleration broad-based or largely data solutions?

It's more broad-based. We've seen strong orders in Enclosures and a mix that includes data solutions — and mid-single-digit orders in EFS as well.

Okay, thanks so much.

Thank you. Our next question comes from Brian Drab with William Blair.

Morning. Can you give a little more granularity on the $575 million Data Solutions figure? Historically we've talked about the subcomponents like power and cooling and liquid cooling. Is power and cooling now more than half of the $575 million? Also, what is power and cooling growing at?

We've historically said cooling and power are about 50% of Data Solutions. I would say it's a little more than 50% today, and cable management is also growing strongly as part of the overall solution. With the growth rates around liquid cooling, we expect power and cooling to increase as a percentage of the overall Data Solutions portfolio.

Okay. Any update on timing of the thermal deal closing? You previously said early 2025. Also, given the cash that will come in, what interest rate do you expect to earn on that cash?

When we announced the sale we said we expect the sale of the thermal management business to close by early 2025.

You can think about an effective rate in the 4% to 5% range depending on the mix of deposits and any prepayable term debt positions. We do have prepayable term debt with coupons near 6%, so the blended earning rate or net rate will depend on how cash is managed on the balance sheet.

Right, okay, thank you very much.

Thank you. Our final question comes from David Silver with CL King.

Hi, good morning. I wanted to follow up on Trachte as a new platform. It touches different end markets and customers. Strategically, do you want to scale this business? Is breadth more important? Does it fit best within Enclosures or could it become the basis of a new segment in the future? Any color on where the business might be heading in the next few years would be helpful.

We have an M&A framework focused on great products in high-growth verticals that we can invest in and scale. For Enclosures, we wanted a stronger position in utilities and Trachte provided that. These are control houses used for upgrades to aging electrical infrastructure, renewables and data centers — effectively larger enclosure types than what we previously offered. We saw an opportunity to extend Enclosures, scale the offering and create synergies across purchase material and distribution with the rest of the nVent portfolio. At this point, we view Trachte as part of the Enclosures segment and plan to invest in and scale it consistent with our framework.

Okay, great. That's it for me. Appreciate it.

That does conclude the question-and-answer session. I would like to turn the conference back over to Beth Wozniak for any closing comments.

Thank you for joining us today. I'm very pleased with our performance in Q3. We will continue to focus on our customers, employees and shareholders by executing on our growth strategy and transforming our portfolio. I'm excited for our future. Thanks again for joining us. This concludes the call.

Thank you. As mentioned, the conference has concluded. Thank you for attending today's presentation. You may now disconnect.