Hello, and welcome to the Evoqua Water Technologies First Quarter 2022 Earnings Conference Call. At this time, all participants have been placed in a listen-only mode, and the floor will be open for your questions following the presentation. After the speaker's opening remarks, there will be a question-and-answer period. If you would like to ask a question during this time, simply press the star then the number one on your telephone keypad. If you would like to withdraw your question, please press the pound key on your telephone keypad. As a reminder, this conference call is being recorded, and your participation implies consent to our recording of this call. If you do not agree to these terms, please disconnect at this time. Thank you. I would now like to turn the call over to Dan Brailer, Vice President of Investor Relations. Please go ahead. Thank you, Brittany. Thanks everyone for joining us for today's call to review our first quarter's financial results. Participating on today's call are Ron Keating, President and Chief Executive Officer, and Ben Stas, Executive Vice President and Chief Financial Officer. After our prepared remarks, we'll open the call to questions. This conference call includes forward-looking statements, including first half and full fiscal year 2022 expectations, statements relating to the demand outlook in our end markets, growth opportunities, our order pipeline, our acquisition strategy and pipeline, integration and future performance of the Mar Cor business, PFAS and infrastructure-related legislation, supply chain challenges, inflation, labor shortages, general macroeconomic conditions and statements related to the ongoing impact of the COVID-19 pandemic. Actual results may differ materially from our expectations. For additional information on Evoqua, please refer to the company's SEC filings, including the risk factors described therein. On this conference call, we'll also discuss certain non-GAAP financial measures. Information with respect to such non-GAAP financial measures is included in the appendix of the presentation slides for this call, which can be obtained at Evoqua's investor relations website. Unless otherwise specified, references on this call to full-year measures or to a year refer to our fiscal year, which ends on September thirtieth. Means to access this conference call via webcast were disclosed in the press release, which was posted on our investor relations website. Replays of this conference call will be archived and available for the next 14 days. With that, I would now like to turn the call over to Ron. Ron? Thank you, Dan, and thank you for joining us. I appreciate your interest in Evoqua, and I'm pleased to provide insight into our results and outlook. Please turn to slide three. We reported very strong first quarter results measured across all key metrics. Market demand continues to be robust, driven by the growing global need for safe and available water. We're helping customers solve problems and achieve their sustainability targets. Both segments reported double-digit organic revenue growth with broad-based demand across capital, service and aftermarket in all regions and most product lines. Our book-to-bill ratio was above one, and our pipeline and demand indications remain robust. Price cost was positive with solid price realization across both segments. Supply chain challenges, inflationary pressures and talent recruitment continue to result in unpredictable order conversion visibility. Our team has navigated these constraints effectively to date, and pricing initiatives across the organization have been and will remain a priority. Cash flow was strong, and we continue to drive improvements to the balance sheet. Adjusted free cash flow conversion was north of 200%. Net working capital was approximately 10% of trailing twelve-month revenue. Liquidity improved sequentially, and our net leverage ratio improved to 2.4x. We'll discuss the Mar Cor January 3 acquisition in a few minutes. However, when including Mar Cor's expected annualized EBITDA and purchase price on a pro forma basis, our net leverage would have been 2.8x as of December 31st. This is well within our targeted range, with liquidity remaining solid at $270 million. Please turn to slide four. Evoqua is a performance-driven water technology company focused on delivering strong financial results. As you can see, we've delivered outstanding results across these six key metrics over the past several years. We have a talented and dedicated team focused on solving some of the world's most complex water problems. Our results demonstrate the strength of our business model and focused execution. We're proud of the progress we've made, and we remain focused on the daily actions that lead to executing our strategy. Please turn to slide five. This chart represents our second quarter expected order demand by end market. We have updated the relative sizes of our end markets and included Mar Cor's pro forma annualized sales. We have renamed the healthcare end market as Life Sciences, which is now the largest market we serve. The Life Sciences end market is a combination of the healthcare, pharmaceutical and biotech industries. We expect to see strong order demand in the second quarter across most end markets, including Life Sciences, microelectronics, power, food and beverage, and the light and general industries market. Demand in our municipal wastewater end market is temporarily muted, largely due to spending deferrals aligned with the recent passage of the infrastructure bill. Our municipal wastewater pipeline is robust, and we expect to see order flow pick up in the near future. Overall, we expect to see a robust demand outlook across most of our end markets in 2022. We'll be happy to address questions about specific end market drivers during the Q&A session. Please turn to slide six. Throughout the year, we plan to highlight specific end markets and to provide additional insight into our portfolio of solutions. Life Sciences includes a collection of large and growing vertical markets, and we expect both segments to execute on long-term opportunities for growth. We have played an important role in the Life Sciences market throughout the pandemic, providing customers with a reliable source of ultrapure water for vaccine research and development, manufacturing of COVID tests, and use in hospital laboratories. APT has seen strong demand for EDI modules in the global pharmaceutical market, and we expect pharma demand to continue. Last year, we announced the rollout of Vantage SPD, a next-generation high-purity water solution that provides an all-in-one digitally enabled system for medical device reprocessing. This innovative technology has been well received in the market. The addition of Mar Cor expands our offerings in the Life Sciences market and completes our offerings to the hospital industry. Please turn to slide seven. We're pleased to have the Mar Cor team as a part of Evoqua. We were attracted to the opportunity for several reasons. Mar Cor is the market leader in providing critical water solutions to FDA-regulated dialysis applications. They have an extensive service branch. They have a large installed base and highly recurring revenues. Mar Cor service techs bring significant expertise and know-how in providing high-purity water to a regulated market. We were able to purchase the business for slightly over 7x annualized EBITDA, which speaks to the validity of our one-to-one M&A strategy. We're working on plans to move Mar Cor onto our SAP platform, and we're well underway on our business integration plan. This is a highly synergistic transaction, and we expect adjusted EBITDA margins for this business to reach 25% over the next 18-24 months. One example of value creation will come from branch consolidation. 25 of Mar Cor's 27 service branches are located near Evoqua branches, providing an opportunity to optimize our footprint. The addition of the Mar Cor service techs will enhance our service capabilities, our capacity, and our technical expertise. We've provided more information on Mar Cor's product lines on slide 23 in the appendix. Please turn to slide eight. This slide highlights the many water treatment needs within a hospital. We've been a provider of all these capabilities for many years, with the exception of hemodialysis. The addition of Mar Cor satisfies the remaining gap in our hospital water treatment offering, allowing us to provide complete solutions for a hospital campus. We feel that the Life Sciences market focus could also provide additional organic and inorganic growth opportunities. Please turn to slide nine. We were very pleased to gain two notable corporate recognitions recently. The Corporate Knights placed Evoqua at nineteenth on its 100 most sustainable corporations ranking. We are honored to be recognized for our impact and our commitment to sustainability. We also received the Frost & Sullivan 2021 Global Company of the Year Award for sustainability in the water technology market. We appreciate this recognition of our investment in technology, innovation, and our focus on sustainability. We highlighted a PFAS handprint win in our ISS segment. The City of Anaheim selected Evoqua to provide the capital and ongoing service requirements to remove PFAS from their drinking water systems in a 2-phase deployment. In the first phase, we'll treat approximately 46 million gallons of drinking water per day for the majority of the city's 370,000 residents. Phase II will expand the PFAS removal treatment to industrial and commercial businesses and the remaining residents. We continue to closely monitor the impact of the recently passed infrastructure bill on the markets we serve. While it's too soon to see an immediate impact in PFAS treatment, we expect to see quoting activity ramping as we progress through the year. We were pleased to see the 2022 National Defense Act get signed into law. This authorizes funding for military activities, including $517 million above the President's budget request for cleanup of military communities impacted by PFAS and $100 million for environmental remediation to the base realignment and closure account. I would now like to turn the call over to Ben. Ben? Thank you, Ron. Please turn to slide 10. For the first quarter, reported revenues were up approximately 14% to $366 million. Organic revenues grew approximately 13%, with both segments reporting double-digit growth, driven by broad-based volume growth and price realization. We saw revenues increase in services, capital, and aftermarket, as well as growth across all regions and most product lines versus the prior year. First quarter adjusted EBITDA increased 21.2% to $54.3 million, for an overall margin of 14.8%, an increase of 90 basis points over the prior year. Strong volume, favorable price cost, and mix were drivers of improved profitability. Please turn to slide 11. Our integrated solutions and services segment's first quarter revenues were up approximately 14% to $245 million. Organic revenues grew approximately 13%. Strong volume and price realization contributed to revenue growth. Capital sales were up, driven by chemical processing and microelectronics. Service revenues were up across all divisions and driven by light and general industry, food and beverage, and Life Sciences end markets. Digitally enabled revenues grew 12% for the quarter versus the prior year. Outsourced water continues to have a robust pipeline across multiple end markets. Adjusted EBITDA increased 23.8% to $54 million due to higher volume, favorable price-cost, mix, and productivity improvements. Adjusted EBITDA margin for the quarter was 21.8%, up 170 basis points from the prior year. Profitability and margins on digitally enabled revenues and outsourced water remained strong and highly accretive to overall ISS margins. Please turn to slide 12. We continue to see strong year-over-year growth in ISS backlogs. First quarter backlog was up $100 million or 15% over the prior year, with growth coming from both capital and outsourced water orders. Our pipeline continues to be robust, with opportunities across multiple end markets. We expect to see our book-to-bill ratio remain above 1 throughout FY 2022. Please turn to slide 13. Applied Product Technologies first quarter revenues were $121 million, up nearly 13%. Organic revenues increased $13.6 million or 12.7%, driven by strong volume growth and price. Revenues grew across all regions and across most product lines, including electro-chlorination, advanced filtration and separation, aquatics and disinfection. Adjusted EBITDA for the quarter increased 15.3% to approximately $22 million. Adjusted EBITDA margins increased 40 basis points to 18.2% due to market share gains in core end markets. Each quarter, we have featured a new APT product, and we are pleased to highlight the Mar Cor Chloropac system. This new generation system has a smaller footprint, has improved self-cleaning capabilities and lower maintenance requirements. The Mar Cor uses electricity to produce chlorine from seawater that is circulated through cooling pipes in offshore renewable energy electrical transformers. The chlorine prevents zebra mussels and other marine growth in cooling pipes, which improves reliability and lowers transformer maintenance costs, which are critical drivers for our customers as the number of unmanned offshore platforms continues to increase. Please turn to slide 15. Capital spending, primarily for outsourced water orders, was approximately $16 million for the quarter or approximately 4.2% of revenues. The Mar Cor CapEx spending is expected to be in the range of Evoqua's historical average of 5%-6% of total sales. We expect Mark Cor 's CapEx to be less than 2% of sales after completion of integration activities. First quarter net working capital was 10.4% of LTM sales, an improvement of 280 basis points over the prior year. Over the long-term, we anticipate net working capital to sales could now be in the low teens range, given some projects may have varying amounts of working capital requirements. Please turn to slide 16. Operating cash flow improved to $36 million in Q1 versus $23 million in the prior year. Adjusted free cash flow as a percentage of adjusted net income continues to be well above our 100% conversion goal at over 200% for the quarter. Our net leverage ratio finished at 2.4x adjusted EBITDA. As Ron mentioned earlier, our leverage as of the end of Q1 on a pro forma basis with the expected annualized impact of Mark Cor results is approximately 2.8x, well within our targeted range. Maintaining a strong balance sheet with net leverage within our targeted range over the long run remains a key priority. Our weighted average cost of debt for the fourth quarter is approximately 2.8%, an improvement of approximately 60 basis points over the prior year. We were very pleased to have received an upgrade in January to our Moody's credit rating to Ba3 with a stable outlook following the Mark Cor acquisition. Please turn to slide 17. Two key long-term financial targets are 3%-5% organic revenue growth and 20% adjusted EBITDA margins. This graph shows our performance since 2018 for both metrics. We are pleased with our performance, especially considering the constraints placed on the business from the pandemic. On the right-hand side, we have highlighted multiple organic revenue opportunities as well as the actions we expect will help us achieve our adjusted EBITDA margin target. We also expect Mar Cor will be accretive to adjusted EBITDA margins, post synergies, helping us to achieve our long-term goal of 20%. I would now like to turn the call back over to Ron. Ron? Thanks, Ben. Please turn to slide 18. We had an excellent quarter with outstanding results across the key metrics of the business. We were pleased with the strong, broad-based organic revenue growth across both segments, all regions, and most product lines. Our pricing actions are a priority and are expected to contribute to growth during the year. Adjusted EBITDA margin expanded 90 basis points, driven by strong volume, favorable price cost, and mix. Outsourced water continues to make excellent progress and is contributing to the ISS segment's highly recurring revenue model. Our balance sheet remains strong with high liquidity, even after the pro forma addition of the Mark Cor acquisition. We are very pleased with the Mark Cor acquisition and the growth opportunities and margin enhancement that it brings to the organization. Our M&A pipeline remains active, and we continue to pursue other tuck-in opportunities. We are raising our full-year outlook to adjust for the Mar Cor acquisition and for performance to date. We expect full-year revenues and adjusted EBITDA to be in the range of $1.62 billion-$1.7 billion and $280 million-$300 million, respectively. Additionally, we expect the first half of FY 2022 EBITDA as a percentage of full-year EBITDA to be in the low 40% range, which is consistent with prior years, as shown on slide 21 in the appendix. I will now open the call for your questions. At this time, if you would like to ask a question, please press the star and one on your touchtone phone. You may remove yourself from the queue at any time by pressing the pound key. Once again, that is star and one if you would like to ask a question. We will take our first question from Bryan Blair with Oppenheimer. Your line is now open. Thank you. Good morning. Very solid start to the year. Thank you. I was hoping you could offer a little more color on the key sources of Mar Cor synergies and maybe how we should think about the timing of drop-through as you progress toward the 25% margin target you've set. Yeah. Thanks, Bryan. I think as I highlighted in the remarks earlier, 25 out of their 27 branches are located in the same area that the Evoqua branches are. Being able to optimize our footprint in those locations is gonna be key. The other thing I would say is we got a very talented team that's coming over across the service tech network, giving us additional capacity, opportunities for growth, and just, you know, penetrating that market is going to, you know, continue to drive success in this acquisition. As far as the timing goes, it really goes with my remarks. I mean, we expect to hit this in 18-24 months. We're working, you know, hard on the integration of the business. We've got a dedicated team from Evoqua that is there as well as their dedicated team. We anticipate, you know, this will probably ramp up, you know, in that timeframe that I highlighted. Okay. Understood. Does the scale of the deal in any way restrict your team from moving forward with the, you know, more typical tuck-in kind of M&A that you do? I'm not referring to financial capacity. I know, you know, net leverage pro forma 2.8, you're well within target range. I'm just thinking about, you know, potential complexity of the integration, those moving parts maybe requiring exclusive focus for a period of time. I think it gives us a real opportunity. I think the scale of the deal is very similar to any single branch tuck-in acquisition we'll do. I mean, what we did is we dedicated a stronger team of Evoqua team members full-time into driving the integration. We wanna integrate quickly. We wanna make sure that we're driving the opportunities there. Again, I mean, doing it 25x versus doing it once obviously adds a degree of complexity, but that's why we've captured 18-24 months as a timeframe to get there. Understood. One more if I may. APT margin was above expectations. That was kind of a watch item coming into the quarter given the more global exposure you have there. How did Q1 supply chain constraints compare to your Q4 experience? Is there any meaningful shifts in the early part of Q2 to date? No, Bryan, about the same. I mean, I would say overall it's the same type of challenges we saw in the prior quarter we're seeing now, and, you know, maybe we have a little more experience managing them. The one area that's obviously the largest challenge is electronic components. We've been doing a pretty good job of managing that. But the rest of them are really energy related, but it's more of a price situation, being a pass through versus availability. But the area that we gotta keep our eye on very closely is electronic components. That makes sense. Appreciate the color. Thanks again. Thanks, Bryan. We will take our next question from Deane Dray with RBC Capital Markets. Your line is now open. Thank you. Good morning, everyone. Morning, Deane. Good morning, Deane. Hey, appreciate all the color on the Mar Cor deal and, like seeing that Life Sciences is now your largest served end market. Maybe we can start with sizing the addressable market here, for these, you know, between hospitals, pharma, et cetera. For a hospital today, what percentage of their water treatment is insourced, that they're doing themselves? That kinda gives us a sense of what that opportunity is for Evoqua to come in and offer the outsourcing. Yeah, Deane, I would say a pretty high percentage is insourced inside of hospitals today. I mean, we provide the products in a lot of cases, as we identified on that slide that we showed the diagram. We would sell them equipment, sell them products, and then we've been driving, though, as we highlighted the Vantage SPD, into more smart water, into more applications where it is truly an outsourced water, where they're worried about quantity and quality instead of the equipment themselves. To date, the majority of hospitals manage their own water system. We do the preventative maintenance. We service it, but the opportunity for outsourcing is certainly there. That's great to hear. What's usually the tipping point where they flip the switch and say, "Yes, you know, we'd rather outsource this to you"? How does that compare to, let's say, the electronics market, semiconductor market with, you know, similar needs for ultrapure water? You know, the tipping point is really us driving the technology in. The opportunities that we've been able to show the hospital systems with us being able to be on site digitally 24/7 without actually having to have team members there has been a great benefit. The other driver for them is just the need to find talent. I mean, their difficulty in being able to staff for what they're going after is a very good trend that helps us. You know, continue to promote, let us do what we do well, which is provide the quantity and quality of water, and you do what you do well, which is provide, you know, the health care services that people need. As far as microelectronics, I would say that, you know, it's something that will be synonymous going forward, but right now the hospital systems are much later in the cycle of doing that conversion. Good to hear. Just a second question for Ben. Look, I know we're not going to extrapolate the 200% free cash flow conversion, but your working capital sales right now is top quartile easily. Your guidance for low teens, does that just give you some wiggle room here on working capital? What would be some examples of projects that would drive, you know, CapEx working capital a bit higher into that low teens number? It has given us some wiggle room, Deane. One of the things that could turn on as we head into the second half of the year is wastewater project in the municipal space. In that particular area, it puts a little more pressure on working capital, generally municipal does. We feel pretty good about being able to manage that. We certainly like it to keep it at these world-class levels. However, you know, those types of projects, if they start coming online with the infrastructure bill, could put some temporary pressure on working capital. We've left a little room in the working capital outlook. Appreciate that. Thank you. We will take our next question from Nathan Jones with Stifel. Your line is now open. Good morning, everyone. Morning, Nathan. I want to start with one on microelectronics. There's been a number of fabs announced in the U.S., some in the Southwest, Ohio. Can you talk about the opportunity that presents for Evoqua? I know some of these microelectronics projects can be quite large in terms of the water infrastructure that's got to go in there. Just any color you can give on what you think the opportunity around those projects are and what kind of timing you might be looking at. Yeah. The microelectronics bubble and market, as you saw on slide five, is certainly green. It's very green, and we're pleased with it. Microelectronics fabs, even though they announced them, it still takes a fair amount of time for them to place the order, but also just get the infrastructure up and running so that we actually can put the water system in. You know, as far as the timing on the projects go, Nathan, we've got a great pipeline coming in right now. Again, we highlighted that market as green on quarter-over-quarter order expected demand coming in the second quarter. Those projects can run out, you know, 12-36 months. Okay. I wanted to look a little bit back in history. It was a little over three years ago now that you rolled out the outsourced water initiative across the U.S. and some targets with that. You targeted 50% conversion of your own customer base, the applicable customer base, onto an outsourced water business model within three years. Where are you with the conversion of that customer base? Targeted 50%, where did you actually get to in those three years? Well, if you look at what we've identified as outsourced waters of roughly a third of ISS's business. That is, you know, pretty much in line with what our targets were when you talk about applicable customers that we can actually install outsourced water systems in. The opportunities, though, I think will continue to grow, much to one of the earlier questions we got, as we expand more broadly into vertical markets. That's one of the things that we highlight in this Mar Cor acquisition, is the opportunity to be able to, you know, take a new solution to outsource water. By having a full complement of products to service the hospital system and other Life Sciences applications, it gives us a real opportunity. You talked about 20% of installations being market share gains for outsourced water. I haven't asked about that for a while. Is that still the case that you're continuing to use and leverage that model to gain market share? It is. I mean, I would say it continues in the same number that we've seen historically. A lot of that, Nathan, is coming, again, from getting customers to outsource what they insource. Whether it's actually an outsourced water model where they're buying quantity and quality, or they're allowing us to provide them with the products and the treatment systems that they hadn't have historically put together and manage themselves with preventative maintenance. Being able to, you know, continue to convince our customers to outsource what they insource gives us an opportunity. As the market grows, we're gaining share. Excellent. Thanks very much for taking my questions. We will take our next question from Andrew Buscaglia with Berenberg. Your line is now open. Morning, guys. I was hoping you can give me a little bit more color on the guidance you put out there. Mainly, you know, it seems like the guidance, you know, first of all, how much was the raise, more like, you know, if you could parse out core guidance versus the acquisition? And then secondly, does the guidance not imply that your margins might see some year-over-year declines in the back half of the year? Yeah. We factored in the beat plus an extra $2 million on the core. About $5 million was the base business of that improvement. The rest was Mar Cor on the EBITDA line. Okay. We believe that the traditional seasonality, when you look at page 21, should be essentially the same. We also are keeping our quarterly outlooks consistent with what we've seen with our most recent historical years. Okay. Then, looking at the ISS backlog composition. Services versus capital backlog has been relatively the same now for some time. Just looking for like, what exactly I guess going forward, what you're expecting and what exactly would prompt some accelerated conversion of that services piece into revenues? I guess what's kind of holding it up at this point? Well, it's gonna convert. If you can see the, on page 12, we also have the amount of time in which that backlog converts by category to help you with that, but it should stay relatively stable. Our backlog's been converting as we've expected. You know, this quarter, we obviously versus the prior quarter, due to pandemic, there's been a little better backlog conversion obviously. But we have a strong, robust pipeline. I wanna be very clear about that. You know, we've pretty much in broad-based across ISS. Within that services growth, as I mentioned in the script, it was very broad-based as well. You know, right now, the key for us is managing supply chain, making sure that availability of talent, making sure that, you know, we continue to stay focused on managing the supply chain challenges. You know, demand is good, and it's very solid, and the backlog remains robust. Okay. Thanks very much. We will take our next question from Mike Halloran with Baird. Your line is now open. Hey, everyone. Morning. Kinda taking on that and taking on something Nate asked earlier a little bit. Do you think you're at that tipping point then with the model conversion where you know you talk about backlog kind of converting in line with it, you're thinking? Are we at the point where we're starting to see a little bit more normalization between what's been a multiyear run of really strong orders and starting to see that normalize a little bit towards what that revenue growth number would look like? Or is kind of the sequential improvement we're seeing here more tied to a broader range of things than just that? I think we will see normalization as the pandemic subsides, things turn back to normal. Again, we've still got supply chain remains the key constraint, Mike. You know, the pipeline remains robust. The end markets are good. The constraining factor is really the supply chain and our ability to convert. I also wanna throw you know, labor in there as well. That's another key issue we have to manage through. We've been doing a good job, but that's also a key part of the equation as well. Mike, with you know continued outsource opportunities that are multi-year in the pipeline, we expect the backlog will continue to grow. Right. It's gonna be steady and stable. You know, that's this business model. No, that makes a lot of sense. On the Marquardt transaction, I think you mentioned the prepared remarks, this essentially fills a product portfolio gap. You feel like you've got a whole hospital solution at this point. What was the not having that preventing you from attacking it earlier? Now that you have it, what's the opportunity set from a broadening perspective? Yeah, that's a great question. You know, not having it stopped hospital systems from being able to have a one-stop shop. Us going in and providing the full opportunity to take the entire complex. As we've seen hospital systems actually consolidate across the country, those opportunities with corporate contracts are becoming much stronger. You know, again, hospitals are facing the same challenges other companies dealing with water issues are: emerging contaminants, challenges on what they have, as well as a labor shortage. That provides us a real opportunity to go in and be able to be, you know, the full solution provider for them. You know, the market size itself, I think in the dialysis market as a whole, I think we've sized it around $300 million. It could, you know, it will continue to grow over time and has had pretty good, you know, growth trends in the past. Is that differentiated, that one-stop shop within that market differentiated? I know that's differentiated in a lot of the end markets you serve. More curious on that one specifically. It does fully differentiate us in that market, having that ability to take the entire water challenge that a hospital campus would face. Thank you. Really appreciate it. We will take our next question from Andy Kaplowitz with Citigroup. Your line is now open. Good morning, guys. Hey, Andy. Hey, Andy. Ron and Ben, I know you mentioned that you're still seeing some delays in municipal wastewater, but it is still a positive to see that market and aquatics and the bubbles there turn from yellow last quarter to blue this quarter. Do you think municipal wastewater actually begins to pick up by the end of your fiscal year here? Have you seen any significant improvement in aquatics markets yet, or are they still being held down by virus-related uncertainty? Yeah, that's a great question. We absolutely do feel like we'll see the municipal wastewater turn to green as we progress through the fiscal year. You know, and that was one thing I commented in the remarks. You know, the infrastructure bill is going to be fantastic for fueling demand, fueling the opportunities for growth. It does create a bit of a pause while municipalities wait to see what kind of funds flow they're going to get. You know, we've got terrific indications as we're looking out, looking at our pipeline, seeing what the opportunities are. Certainly, there are a lot in the prelim stages, but this chart specifically is highlighting what books in the quarter, and we think that'll come in the latter half of the year. Aquatics is getting better. Again, as we said, I mean, I think a lot of the delays that we've seen on new parks opening still exist, but a lot of the opportunities to make sure that things are up and operational and running to the standard is actually what's helping the market return. Thanks for that. Then, Ron, you've been highlighting new products basically every quarter now from APT, when you update us in your quarterly earnings presentation. How should we translate the proliferation of new products into potential growth? As your new product vitality index, you know, continue to go higher here, we should think about, you know, all these new products contributing more to that sort of 3%-5% longer-term guide, organic guide that you have. Oh, it's absolutely. You know, that's one of the things that we're focused on. We continue to, you know, drive innovation, sustainability, and innovation hub here, you know, very close to the headquarters in Pittsburgh, where we're investing and bringing out new solutions and new opportunities. Just like, you know, again, highlighting the Mar Cor, we're thrilled about that. Really, as we see the markets evolve, we see, you know, continued challenges in treating water with emerging contaminants. We have to change our product range, and we're gonna continue to drive the vitality index. I would say APT has done a terrific job of launching this. Appreciate it. Thank you. We will take our next question from John Walsh with Credit Suisse. Your line is now open. Hi. Good morning, everyone. Good morning. Good morning, John. Hi. Wanted to go back to the Mar Cor transaction. Obviously, looks like you were able to get it Any feedback, post the infrastructure bill passing here on the PFAS side specifically for you guys? Yeah, I think a little bit of what we're seeing is across PFAS is the same thing that we're seeing across municipal wastewater. There's a bit of a pause to wait and see what the dollars are going to look like and see where the regulations are going to be set. But the pipeline is very strong. We'll see a pickup in orders around PFAS. So we highlighted the one and a two-phase approach, you know, in the opening remarks, but I think we'll see more of that continue, but I imagine it's gonna happen more towards the back half of the year. All right. Thanks for that, guys. I pass it on. We will take our next question from Pavel with Raymond James. Your line is now open. Thanks for taking the question. Follow-up on what you guys were just asked regarding the infrastructure package. Given that PFAS as a single contaminant is very difficult to kind of disaggregate from the overall issue of water quality, what does it mean in practical terms for, you know, billions of dollars to be allocated to clean up of just one contaminant within a spectrum of, you know, dozens of others? I mean, Pavel, I think it's going to give us and give the market as a whole, you know, very good secular tailwinds that the government's going to address and fix. You know, billions of dollars going there as you're cleaning up the PFAS, you're going to be cleaning up, you know, other contaminants inside of the water train and inside of the chain. I think the opportunity there, you know, is very strong for the years to come. One thing that does have to happen is we have to define the treatment specification, and we have to, you know, define what it means to have clean water on the backside when you're identifying something like PFAS. With the STERISris acquisition, your leverage is obviously higher than it has been in months or so, although, you know, still well below historical highs. Can you just remind us where you wanna kinda cap debt to EBITDA or any other metrics that we should focus on? We still remain committed to our 2.5-3x run. You know, I think when we look at, it's not that we would not exceed that for a very good deal that we would delever quickly into that range. We feel, you know, very committed to staying, keeping our EBITDA range at 2.5-3x. All right. Thank you very much, guys. Thanks. Thank you. Take care, Pavel. We will take our next question from Joe Giordano with Cowen. Your line is now open. Good morning. This is Michael Anastasiou sitting in for Joe. Good morning, Michael. I wanted to touch on the organic growth rate. Do you believe any demand has been pulled forward in any way? Can you provide any, you know, color? Actually, no. It's probably been the other way around. We could have grown more with an APT, had it not been for some of the supply chain challenges this quarter. That was obvious in terms of a pull in, it was more of a push out. Thanks. One more, if I may. Apologies if this was covered prior, but is there a breakout for the full-year? No. We did not break it down as organic growth outlook for the full-year. You know, for the most part, you could take out DeMarco or the remaining portion of our outlook was really organic. Great. Thank you so much. Thank you. That concludes our question- and- answer period. I would now like to turn the call over to Ron Keating for his closing remarks. Thank you again for joining us today. We greatly appreciate your interest in Evoqua, and thank you for your time and attention and questions. We are absolutely into Evoqua and thank our team members every day for executing on our mission. We'll talk to you again next quarter. Thank you. concludes today's Evoqua Water Technologies first quarter 2021 earnings conference call. You may now disconnect your lines.