葛拉科 (GGG) 2026 財年第三季財報電話會議：營收創新高與第四季財測指引

重點總覽

• 固瑞克 (Graco Inc., NYSE: GGG) 公佈 2026 財年第三季營收創下 5.86 億美元的新高紀錄，年增 8%，其中包括 4% 的有機成長。
• 本季有機接單量成長 7%，今年累計成長 4%。若扣除併購因素，截至 10 月 16 日的未交付訂單較年初增加 5,100 萬美元，增幅達 18%。
• 經調整後營業利益為 1.61 億美元，經調整後每股盈餘 (EPS) 成長 5% 至 0.81 美元。經調整後營業利益率下降近 180 個基點至 27%，主因產品與通路組合所致。
• 三大業務部門均實現成長：承包商部門銷售額成長 5%，工業部門成長 11%，擴展市場部門成長 8%。半導體業務錄得數年來最強勁的季度營收。
• 管理層預計 2026 財年第四季營收為 6.10 億至 6.40 億美元，此預測基於目前的訂單趨勢與未交付訂單，未假設需求會加速成長。
• 固瑞克完成了對 Valco Melton 的併購，並預期在交易完成後的三年內，將其 EBITDA 利潤率從 10% 高段提升至 20% 中段。

關鍵財務數據

業務與營運表現

承包商業務：銷售額成長 5%（包含併購），有機成長為 2%，且所有地區均實現成長。美洲地區的專業塗料業務領跑表現，受惠於客戶採用 QuickShot II 和 ProReach 產品。基礎建設支出與商業建築也有所貢獻。本季接單量成長 7%，今年累計成長 2%。居家中心 (home-center) 通路表現稍弱，但管理層表示該通路並未發生根本性變化。

工業業務：銷售額成長 11%，反映了核心業務與併購的共同貢獻。粉體塗裝系統受益於專案活動，而維護與修繕支出保持穩健。固瑞克還報告了 QUANTM 幫浦的採用率提高以及自動潤滑業務的持續成長。今年累計接單量成長 1%，儘管部分大型資本專案面臨較長的決策週期或延誤。第三季的成長廣泛分布於各個地理區域，但在美國相對溫和。

扣除 Valco Melton 及相關費用後，工業業務的營業利益持平於 7,400 萬美元。該部門的利益率下降近一個百分點，主要歸因於產品與通路組合。管理層表示，不含 Valco Melton 的基礎工業業務獲利率約為 33%。

擴展市場業務：銷售額成長 8%。由於客戶投資於先進製造產能與更複雜的生產流程，半導體業務創造了數年來最強勁的季度營收。環保相關銷售額實現雙位數成長。部門接單量在第三季飆升 62%，今年累計成長 44%。營業利益成長 5% 至 1,100 萬美元。

固瑞克還宣布了一項技術協議，根據該協議，ABB 將獲得 ETM 專利橫向磁通馬達 (Transverse Flux Motor) 技術的授權，用於資料中心冷卻塔、排熱系統及相關熱管理應用。管理層表示，兩家公司的目標是在 2029 年底前完成首批資料中心設備安裝。

管理層展望

管理層預計 2026 財年第四季營收為 6.10 億至 6.40 億美元。該展望基於目前的訂單趨勢與未交付訂單，且未假設本季度需求會加速成長。

公司預計，在第三季實現的價格上漲抵消了較高的淨投入成本後，第四季的價格與成本狀況將保持大致中性。

管理層的近期優先事項包括將訂單轉化為出貨、支持新產品推廣採用、管控成本壓力、發揮併購協同效應以及維持客戶服務水準。

針對 Valco Melton，固瑞克的目標是在三年內將其 EBITDA 利潤率從 10% 高段擴大至 20% 中段。計畫的推動力包括採購變革、製造改善、資本投資以及交叉銷售機會。

風險與關注焦點

• 工業客戶對部分大型資本專案繼續採取審慎態度，拉長了決策週期並導致各期之間的營收轉移。
• 不含 Valco Melton 的第三財季營收略低於固瑞克先前預期的 5.80 億至 6.00 億美元區間，主要是受到工業部門專案進度時程影響。
• 產品與通路組合（包括粉體塗裝系統的貢獻提高）對經調整後營業利益率帶來壓力。
• Valco Melton 目前的 EBITDA 利潤率低於固瑞克的核心工業業務，在整合期間將稀釋報告中的部門利潤率。
• 固瑞克的短週期業務模式限制了能見度，而專案時程安排可能使營收跨越不同報告期。

分析師問答重點

管理層表示，儘管住宅房屋市場持續疲軟，承包商業務需求仍保持正面。商業活動、基礎建設專案、防護塗層與泡綿應用對業績形成支撐，同時新產品在專業塗料通路中獲得良好的市場迴響。

在工業業務方面，管理層將固瑞克的傳統市場描述為疲軟，但指出接單狀況在第三季後半段有所改善，且此趨勢延續至第四季。然而，第四季的展望假設訂單趨勢保持在先前的水準附近，而非納入最近的改善情況。

在資本配置方面，固瑞克計畫在併購與股票回購之間保持平衡。管理層表示，其併購儲備名單包含 100 多家活躍對象，並更加注重成長較快的終端市場，例如半導體、廢水與水資源管理。

固瑞克在季度末擁有約 1.35 億美元的債務與 1.40 億美元的現金。管理層預計損益表將從歷史上較高的利息收入轉變為較高的債務成本。

法說會完整逐字稿

完整財報電話會議逐字稿

管理層陳述

Operator

Good morning, and welcome to the third quarter conference call for Graco Inc. If you wish to access the replay for this call, you may do so by visiting the company website at www.graco.com. Graco has additional information available in a PowerPoint slide presentation, which is available as part of the webcast player. At the request of the company, we will open the conference up for questions and answers after opening remarks from management.

I will now hand the conference over to John Bower, Director of Investor Relations. John, please go ahead.

John Bower

Good morning. I'm here with Mark Sheahan, our President and Chief Executive Officer; Sanjiv Gupta, Chief Financial Officer and Treasurer; and Chris Knutson, Vice President, Chief Accounting Officer and Controller. We welcome you to our conference call to report Graco's fiscal 2026 Third Quarter results.

Before we begin, I'd like to remind everyone that certain statements made during this call may be forward-looking and are subject to risks and uncertainties. Please refer to the safe harbor statement included in our earnings release and earnings presentation as well as our SEC filings for additional information regarding these risks and uncertainties.

I will now turn the conference over to Mark Sheahan.

Mark Sheahan

Thank you, John, and good morning, everyone. Before turning to our quarterly results, I wanted to just highlight the technology agreement we announced yesterday with our ETM business and ABB. Under this agreement, ABB will license ETM's patented Transverse Flux Motor technology for use in data center cooling towers, heat rejection systems and related thermal management applications.

The agreement builds on our existing collaboration with ABB in industrial applications, and it creates an opportunity to participate in one of the fastest-growing infrastructure markets in the world. As demand for AI, cloud computing and high-density data centers continues to grow, cooling performance is becoming increasingly important to energy efficiency, reliability and operating costs. We believe ETM's direct drive motor technology is well positioned to address those needs by reducing mechanical complexity and improving the overall system performance.

Just as importantly, ABB's decision to expand its relationship with ETM and Graco is a strong validation of the technology, the team and the commercial opportunity ahead. By combining ABB's global scale, customer relationships and manufacturing capabilities with ETM's differentiated technology, we have a unique opportunity to create value in a large and growing market while further demonstrating the long-term potential of the ETM platform. Based on current development time line, the companies are targeting the first data center installations by the end of 2029.

Now turning to the quarterly results. We delivered another strong quarter with record sales of $586 million, an increase of 8% compared to last year, including organic growth of 4%. The growth was broad-based with all 3 segments and all reportable regions contributing. Importantly, the growth was supported by improving order activity. Organic incoming orders increased 7% in the quarter, and they were up 4% year-to-date. Backlog as of October 16, excluding acquisitions, increased $51 million or 18% from the beginning of the year. That provides us with improved visibility as we enter into the fourth quarter.

During the quarter, we completed the acquisition of Valco Melton, which expands our precision adhesive dispensing and quality assurance capabilities. We're excited about the meaningful revenue and operating synergies available across the combined businesses. Our integration priorities are to enable cross-selling through our complementary customer relationships and channels to leverage procurement and manufacturing capabilities and to preserve customer service and business momentum. We're targeting expansion of Valco Melton's EBITDA margin from the high teens to the mid-20% range within 3 years of closing.

Turning to the segments. Our Contractor segment delivered sales growth of 5%, including acquisitions and organic growth of 2% with growth across all of the regions. Results were led by professional paint in the Americas, where customer adoption of new products like QuickShot II and ProReach contributed to healthy sell-through in key channels. The results reflected strong commercial execution and growing demand for our products. Infrastructure spending and commercial construction activity are also contributing to the segment's momentum. Across the segment, bookings increased 7% in the quarter and 2% year-to-date, supporting demand entering the fourth quarter.

The Industrial segment delivered 11% sales growth in the third quarter, reflecting contributions from the core business and acquisitions. Growth was led by project activity in Powder Finishing systems, while customer spending on maintenance and repair remains strong. We also saw increased adoption of electric technologies, including the QUANTM pump in process manufacturing applications and continued growth in automatic lubrication. Overall demand remained steady with year-to-date bookings up 1%. At the same time, customers continue to take a measured approach to certain larger capital projects resulting in longer decision cycles in some applications.

Expansion Markets segment sales increased 8% during the quarter. Semiconductor delivered the strongest quarterly revenue in several years as customers invested in advanced manufacturing capacity and more complex production processes. These requirements are expanding the range of applications served by our high purity and precision technologies. Environmental also delivered double-digit growth during the quarter. Bookings in this segment increased 62% in the third quarter, and they're up 44% year-to-date.

Turning to the outlook. We expect fourth quarter revenue of $610 million to $640 million based on current order trends and backlog. Order activity supports our outlook, although demand conditions vary across our markets and larger project schedules can shift revenue between periods. Our priorities are to convert orders into shipments, advance new product adoption, manage cost pressures and capture acquisition synergies while maintaining customer service.

With that, I'll turn the call over to Sanjiv to provide more details on our financial results for the quarter.

Sanjiv Gupta

Thank you, Mark, and good morning, everyone. I'll provide some additional detail on our third quarter financial performance, profitability and cash flow. We reported record Q3 revenue of $586 million. As we discussed last quarter, our third quarter revenue guidance was $580 million to $600 million, excluding Valco Melton.

On a comparable basis, third quarter revenue finished slightly below that range, primarily within the Industrial segment, reflecting the timing around larger capital projects, including longer decision cycles and some projects being delayed or pushed out. Importantly, we are not seeing broad-based deterioration in demand as indicated by order trends. Our fourth quarter outlook reflects current business conditions and the timing of converting order activity and backlog into revenue. Our outlook does not assume an acceleration in demand during the fourth quarter.

With that context, let me turn to profitability in the third quarter. Adjusted operating earnings came in at $161 million and adjusted earnings per share grew 5% to $0.81. Realized pricing was able to offset higher net input costs, and we maintained good expense discipline while continuing to invest in our strategic growth initiatives. Adjusted operating margin was 27% of sales, down nearly 180 basis points from the prior year quarter, primarily due to the product and channel mix, including a higher mix of Powder Finishing systems. This was partially offset by disciplined cost management with operating expenses down approximately $3 million, excluding acquired expenses, amortization, acquisition-related costs and the prior year contingent consideration benefit.

Contractor operating earnings at $71 million rose 5% with stable margins versus last year. Excluding Valco Melton and related costs, operating earnings for Industrial were flat at $74 million, with margin down nearly 1% from the same quarter last year due primarily to product and channel mix discussed earlier. Expansion Markets operating earnings at $11 million increased 5% on semiconductor strength despite a tough comparable to the prior year, which included upfront license fee in our electric motor product application that did not repeat.

Turning to cash flow. We generated $463 million of operating cash flow year-to-date, representing 116% of adjusted net earnings. We continue to deploy capital in a balanced manner. For the year-to-date, we repurchased shares for $467 million, paid $145 million in dividends, invested $436 million in acquisition, net of cash acquired, and invested $48 million in capital expenditures. Even after funding these investments, we continue to maintain a slightly positive net cash position.

In summary, our third quarter performance reinforces the strength of our operating model and cash generation. We remain well positioned to invest in strategic growth opportunities while maintaining a disciplined approach to capital allocation and long-term shareholder value creation. That concludes our prepared remarks.

Operator, we are ready for the questions.

Operator

[Operator Instructions] Our first question comes from Mike Halloran with Baird.

分析師問答

Michael Halloran

So could you unpack the contractor piece a little bit for me, maybe by channel within the more traditional resi commercial side, what you're seeing with the foam business and any signs of deceleration in growth rates, necessarily environment, maybe that too, but any signs of deceleration or worsening trends in any of those subareas within that segment?

Mark Sheahan

Yes. I think we are pretty happy with the performance in Q3. And obviously, organic growth now 2 quarters in a row is nice to see in that business. And we got a lot of that growth really through the pro paint channel. And it was also nice to see growth across the regions. But I would say that the level of activity that we're seeing lines up pretty well with how we thought things would play out with commercial activity and the product application that you mentioned, Mike, still doing well for us. And that has to do with, obviously, the infrastructure build-out and things that are happening despite the backdrop of the residential housing market, which has been with us here for a while, we didn't really see a market deterioration when it came to that level of activity. But I'd characterize it as pretty upbeat, pretty positive. The team is working well. They got a couple of new products that hit the mark with the customers that we sell to, and things are in good shape as we enter into Q4.

Michael Halloran

No, I appreciate that. And maybe a similar question for the Industrial segment, some of the subareas within there, how are those tracking? And then acceleration, deceleration with any pieces that you would find noteworthy on that side as we head into 4Q here?

Mark Sheahan

Yes. I would say that the top line, pretty strong performance, up 11% growth, both from underlying businesses and M&A. A lot of the non-M&A growth came out of the powder finishing side of the business as project activity was a really important contributor there. And on the -- I'll say, the legacy Graco side, kind of the maintenance and repair spending remained pretty healthy. We are also seeing some improvement in the adoption of electric technologies like our QUANTM product, and we're also seeing growth in the automatic lubrication side of the business as well.

So year-to-date bookings are still kind of flattish, up about 1%. But overall, we feel like the position -- or the business is positioned pretty well to recover as some of the, I'll call them, the legacy industrial markets start to recover. We did see some bookings improvement as we made our way through the quarter. Without getting too cute, I would say that the back half of the quarter, the bookings growth was a little bit stronger than what we were experiencing earlier in the quarter, and that's kind of continued here into Q4 as well. So very profitable business. We're excited to get it back on a growth trajectory, and there's some green shoots there.

Operator

Our next question comes from Bryan Blair of Oppenheimer.

Bryan Blair

Following up on Mike's questions there. It sounds like underlying demand trends are generally unchanged. Your team is executing pretty well. Trying to get my head around the growth moderation that's implied in Q4. If we take a stab at Valco Melton's top line contribution, it looks like flattish organic growth year-on-year. Expansion Markets states a pretty easy comp and there's tremendous momentum in semiconductor. So Contractor and/or Industrial are implied to slow quarter-on-quarter. Your prepared remarks suggested that there is still a measured approach to capital spending, some uncertainty on the industrial side, less so in terms of the trends with Contractor. But if you could provide a little more color on what you're seeing now and what's baked in directly in terms of the Q4 guide for the big segments, that would be very helpful.

Mark Sheahan

Yes. I appreciate the question. So I would just start off by saying that the headline outlook is a little bit softer than where things were previous to our announcement. But there is underlying demand, and there's really no deterioration in the underlying demand. If anything, it's maybe picked up here a little bit recently. But I think that as we are looking at how we might finish out the year, I think we're being appropriately cautious given the short-cycle nature of the business, and we really haven't done anything significant when it comes to taking backlogs way down or things like that. And we're really kind of basing the outlook based on how we see orders rolling in here in Q4.

I would say that the differences between the 2 is, really, we have seen a bit of an acceleration on the organic side in Contractor in Q2 and now in Q3. And I think that the industrial -- at least the legacy Graco industrial businesses -- remain kind of sluggish. As I said, the bookings are up 1% year-to-date. We kind of continue to see some, I think, sluggishness as we wrap up here in 2026. And hopefully, we see a little bit of an inflection as we get into '27. But that -- all that stuff factored into what we put out there for a guide here in Q4.

Bryan Blair

Okay. Appreciate the color. Your team has obviously been quite a bit more active on M&A over the recent past, and we know that's been a multiyear initiative. If we think about your current pipeline, Slide 5 references over 100 names in the active pipeline. How does the scale composition, focus areas of the pipeline now compared to 12, 24, 36 months ago? How are you thinking about near-term actionability of the pipeline? And given where your stock is trading, I'm sure your team is following the tape today, how are you prioritizing M&A versus repurchase activity currently?

Sanjiv Gupta

So I think on the capital allocation, we're going to be very similar to what we have been doing, pretty balanced between returning cash to the shareholders through buybacks. And I think as you indicated, we are looking at the stock price. So it is an attractive opportunity. We will be buying stock for sure. But at the same time, we do have a very deliberate M&A strategy, and we highlighted it in one of the slides in the deck. So we do have a pipeline. We do have specific areas we have identified. So those are the opportunities we are going to go after. And I think our cash generation, our balance sheet allows us that flexibility to do more, and that's what we'll do. So I think to answer your question, we'll -- given where the stock is, we're going to be buying it as well as we have a healthy pipeline, and we are pretty, I would say, focused on what areas we want to target the high-growth areas to diversify our revenue base, and that's what we're going to do.

Mark Sheahan

Yes. I'd probably just add that if you were to contrast what the pipeline looks like today versus maybe a couple of years ago, I think that we have maybe more names in there now that are in faster-growing end markets where we believe that if we can deploy capital, it improves the overall growth profile for the company. So some of the ones that we have highlighted that we already are in there like semiconductor space and anything in and around wastewater, water management stuff that our QED business does. Those are a couple of the target areas. And I would say we beefed up the pipeline there a little bit, Bryan, compared to what it would have been a couple of years ago.

Operator

Our next question comes from Jeffrey Hammond of KeyBanc Capital Markets.

Mitchell Moore

This is Mitch Moore on for Jeff. I just want to -- you guys talked about price covering commodity inflation. I guess, overall, with commodities and everything else, what was the overall price cost in the quarter? And just any forward view of that?

Mark Sheahan

Yes. Price cost was flat in the quarter for us. And I would think that for the rest of the year, given there's only 13 weeks left, it's kind of the way that I would look at Q4 as well.

Mitchell Moore

All right. That's helpful. And then this -- I think the initial ABB installations, you said targeted by the end of 2029. I guess in the interim, what milestones should we look for? And is this something we might see more of?

Mark Sheahan

Yes. I don't know that there will be a lot. For sure, if there are, we will call them out for you. I think this is a long-term strategic relationship that we have with them. We did have another licensing agreement with them a year ago, and they are going to be launching some of our motors into the marketplace next year. Those are targeted more like conveyor systems and factories, that kind of a thing. But I think that the punchline really is that they're a very large, well-respected global manufacturer of motors and motor technology. And for them to actively embrace what we have, they've seen it in action in a number of Graco products and in some of our other customers' products. I think it's a nice potential revenue stream for the company, and it gets us a little bit more entrenched in a market where there's just all kinds of capital going in there. I don't need to tell you guys that, and that doesn't look like it's going to change much over the next 5 to 7 years.

Operator

Our next question comes from Matt Summerville of D.A. Davidson.

Matt Summerville

I was hoping you could first maybe do a little bit of a different kind of deeper dive on industrial, really focusing on what you're seeing from a geographic and end market standpoint with bookings. I realize you talked across some product lines, but I'm curious what kind of the walk around looks like from an end market perspective? And then I have a couple of follow-ups.

Mark Sheahan

Yes. I don't know that we have a lot. Obviously, we sell through a third-party channel, so it's kind of hard for us to tell. But I would say, generally speaking, across the board, there aren't any significant major differences in the different product categories that we have in the industrial business, and I would say for the geographic as well. I mean I think the overall message here is that it's been kind of flattish and up maybe a little bit in terms of volume here year-to-date. That's kind of what we're expecting for the rest of the year. But I don't know if Chris or Sanjiv, if you have anything you want to add to that.

Sanjiv Gupta

I would say, like, if you just look at the Q3, within the Industrial segment, the growth was across all the geographies. So it was pretty healthy. I think it was more subdued in, I would say, U.S. But overall, globally, it was pretty healthy, especially in Q3. On a go-forward basis, I think our range is really signaling -- or assuming certain continuation of this delay in the capital activity, that's what we are reflecting in our outlook. But base case would be really the order trends really stay at the same level. So I would say, as Mark indicated, we are seeing some healthy uptick, but our baseline -- or our outlook doesn't really reflect that. It's really assuming continuation of the order trends as we have seen before.

Matt Summerville

Okay. Talking about 2 other quick ones. First, does Valco have a structurally different potential margin profile relative to core Graco? I know you gave kind of a 3-year view from high teens to mid-20s. Is there something structural that will prevent it from kind of hitting kind of the Graco average, number one? And then number two, can you talk about the home center piece of Contractor? I don't believe that came up.

Mark Sheahan

Yes. I would say what we wanted to just highlight was the short-term EBITDA margin potential that we're targeting after doing a lot of work and looking at specifics like what can we do to source differently, what can we do with their factory to make things flow better? What kind of capital can we put in there to make them more efficient. So we gave it over a 3-year time period. But the only real difference in terms of the structure compared to like a Graco Industrial business is that they do sell direct, but they have very good direct sales presence. Their teams, I think, are fully staffed. They can handle more revenue across that base of salespeople and sales expenses that they have. So I don't really see anything meaningful that would cause us to think that it has a dramatically different overall margin profile from our general industrial businesses over time. So we gave a 3-year target, but typically, what these things wind up doing, Matt, is over a few years, you get the quick uptick. But then after that, we find other ways and we leverage the volume better as we go forward.

With regard to the home center, it wasn't a great quarter. I think it might have been down a little bit, but maybe the guys have more detail on that, that they can share with you. But the overall numbers were good in Contractor. And sometimes you do have one channel up, one channel down. There's nothing fundamentally different in that channel that's happened. It's just the current environment that we're in there. And we are pretty encouraged with the growth and where the growth is coming from, the paint store stuff and the commercial side of the business, protective coatings, foam, those types of product lines do carry higher margin rates. So I think we're cautiously optimistic that as we close out the year that the overall demand trends remain intact, and we'll see some growth in Contractor in Q4.

Operator

[Operator Instructions] Our next question comes from the line of Andrew Buscaglia of BNP Paribas.

Andrew Buscaglia

I was hoping you can give us some color on just on the dilution in the Industrial segment as it pertains to Valco. It seems a little -- I don't know, heavier. It's hard to parse out based on Q3 because it's kind of a stub quarter. But going forward, would you say like a few hundred basis points of dilution and expect 2027 to be sub-30% for the full year for those margins?

Mark Sheahan

I'm looking at my financial experts here, but...

Sanjiv Gupta

I think we called it out, I think excluding Valco, the industrial margins were 33%. And if you look at period-over-period, it was only down 100 basis points, and that is primarily because of the mix we talked about overall within the segment with our Powder Finishing Systems. I would say on a go-forward basis, like if you adjust out the Valco specific cost, we should be at that run rate as well. Chris, you want to...

Mark Sheahan

Yes. I think one thing I would just point to is that it's a, call it, a high teens EBITDA margin business. You've got the revenue. So that's what I would plug in right now. And I think over a 3-year period, you're going to see that expand to kind of mid-20s. There is noise in the quarter for sure. I mean we had a lot of onetime costs and other things that flow through that probably made the numbers look worse than they actually were. And as Sanjiv said, if you were to strip out Valco, the underlying profitability of our industrial businesses was actually pretty good at 33%.

Andrew Buscaglia

Okay. That's helpful. And then you kind of -- just another modeling question while I got you, the kind of you guys are typically doing unallocated corporate expenses around like $40 million a year. I would imagine that should go up a little bit with Valco. And then similarly, any color on interest expense would be helpful.

Christopher Knutson

I will just say that we haven't given our guide for the unallocated corporate. It might go up a little bit. But for the most part, the unallocated corporate relates to stock compensation expense. So I don't think that, that's going to be a significant headwind for us or a significant cost adder next year.

From an interest expense standpoint, you're going to see that kind of shift around, and we're going to see more interest expense as we do have now debt on the books. We have about $135 million of debt. We do have cash of $140 million. But we will see where we've carried a lot of interest income, we'll start to see that transition into more of that debt cost.

Sanjiv Gupta

And I would say from a modeling purposes, I think as we have indicated based on our capital allocation strategy, we are going to be using our -- using our balance sheet as appropriate. So we can't really give you an exact number.

Operator

If there are no further questions, I will now turn the conference over to Mark Sheahan.

Mark Sheahan

All right. Well, thank you, everyone, for participating in today's call, and I look forward to seeing you here in Q4, and I hope you have a good rest of the day. Thanks a lot.

Operator

This concludes our conference for today. Thank you all for participating, and have a nice day. All parties may now disconnect.