Good morning, and welcome to the Kennametal Third Quarter Fiscal 2022 Earnings Call. All participants will be in listen-only mode. Should you need assistance, please signal conference specialist by pressing the star key followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I'd now like to turn the conference over to Kelly Boyer. Please go ahead. Thank you, operator. Welcome, everyone, and thank you for joining us to review Kennametal's third quarter fiscal 2022 results. Yesterday evening, we issued our earnings press release and posted our presentation slides on our website. We will be referring to that slide deck throughout today's call. I'm Kelly Boyer, Vice President of Investor Relations. Joining me on the call today are Chris Rossi, President and Chief Executive Officer, and Damon Audia, Vice President and Chief Financial Officer. After Chris and Damon's prepared remarks, we will open the line for questions. At this time, I would like to direct your attention to our forward-looking disclosure statement. Today's discussion contains comments that constitute forward-looking statements, and as such, involve a number of assumptions, risks, and uncertainties that could cause the company's actual results, performance, or achievements to differ materially from those expressed in or implied by such statements. These risk factors and uncertainties are detailed in Kennametal's SEC filing. In addition, we will be discussing non-GAAP financial measures on the call today. Reconciliations to GAAP financial measures that we believe are most directly comparable can be found at the back of the slide deck and on our Form 8-K on our website. With that, I'll turn the call over to Chris. Thanks, Kelly. Good morning, everyone, and thanks for joining today's call. I'm going to start with an overview of the quarter, highlighting some key points on our continuing strong results despite the changing macroeconomic environment, followed by our expectations for Q4. Damon will then go over the Q3 financial results and Q4 outlook in more detail. Finally, I'll make some summary comments before opening the call for questions. Beginning on slide two in the presentation deck. We posted strong operating leverage again this quarter, as well as improving margins through the disciplined execution of our commercial and operational excellence initiatives. We delivered sales of $512 million, an increase of 8% organically year-over-year and 5% sequentially. This was slightly above our normal sequential trend, despite continuing challenges in transportation, China, and stopping sales in Russia late in the quarter. By end market, the strongest year-over-year performance was in aerospace at 29% growth and energy at 25%, followed by earthworks at 13% and general engineering at 8%. Transportation decreased by 7% year-over-year, however, was better than expected. All end markets increased sequentially. Transportation continues to be affected by supply chain challenges, most notably in China due to COVID-19 related lockdowns, as well as more recent disruptions due to the Ukraine conflict. We continue to believe underlying transportation demand remains strong, and as such, we expect that a recovery will follow the resolution of supply chain issues. On a regional basis, we saw a strong year-over-year growth of 15% in the Americas and 9% in EMEA. Asia-Pacific declined at a rate of 4%. As was the case last quarter, outside of China, the rest of Asia-Pacific performed well. Despite these challenges, our commercial and operational excellence initiatives drove strong operating leverage and improved margins. Adjusted EBITDA margin increased significantly by 300 basis points year-over-year to 18.3%. Adjusted operating expense as a percentage of sales declined by 160 basis points year-over-year to 20.7%, close to our target of 20%. Adjusted EPS improved to $0.47 compared to $0.32 in the prior year quarter, and free operating cash flow was $13 million. We bought back $15 million of shares, reflecting the confidence we have in our strategy to drive growth and margin improvement over the long term. In summary, Q3 was a solid quarter despite the significant and unexpected macroeconomic disruptions created by the Ukraine conflict and the China COVID-19 lockdowns that transpired after the quarter began. Looking ahead to Q4, we believe the macroeconomic environment will remain dynamic and difficult to predict due to continuing supply chain issues, the effects of COVID-19 lockdowns in China, which have already significantly limited sales thus far in Q4, and the repercussions of the Ukraine conflict, especially in Europe. These disruptions are masking what would otherwise be strong revenue growth due to the strength of most of our end markets, particularly aerospace, energy, and earthworks. Overall, we expect Q4 sales to be in the range of approximately flat to positive 3% year-over-year, including a negative effect of 3% from foreign exchange. We expect cost inflation to continue in Q4. However, our proactive pricing actions and productivity improvements are helping dampen the effect on margins. Damon will go into more detail on the outlook later in the presentation. Now let's turn to slide three, where we have highlighted a wide range of recent wins that were made possible by leveraging our strengths in sales, application engineering, and product innovation, as well as efficient and consistent manufacturing performance to drive higher levels of customer service. We posted another major win with an electric vehicle manufacturer. In this case, we provided a solution on an additional family of EV components, thus broadening our leadership position in the space. We also saw share gain in wind energy by expanding into other turbine components, reflecting our ability to deliver innovative products for improving customer productivity. In mining, we won incremental share of wallet with an existing customer after helping them drive productivity improvement in other areas of their business. In the energy space, a large oilfield services company selected us as a sole source supplier due to our ability to optimize a complex product design and consistently manufacture it. Finally, in process industries, our expertise in additive manufacturing and materials science allowed us to shorten lead times and provide greater design flexibility in flow control devices, which drives increased productivity for the customer. These wins give us confidence that our commercial and operational excellence initiatives will continue to drive growth, share gain, and improve margins as we demonstrated this quarter. With that, I'll turn the call over to Damon. Thank you, Chris, and good morning, everyone. We'll begin on slide four with a review of Q3 operating results on both the reported and adjusted basis. We posted strong results again this quarter. Sales increased by 6% year-over-year and 8% on an organic basis, with business days contributing +2% and FX -4%. On a sequential basis, sales increased by 5%, slightly above the normal Q2 to Q3 seasonal trend, despite worsening conditions in China due to COVID-19 lockdowns and the effects on our Shanghai distribution center and customers, as well as in EMEA and the broader effects related to the Ukraine conflict. As Chris mentioned, we stopped selling in Russia towards the end of the quarter. The effect was not material in the quarter, but will reduce our sales by approximately $20 million on an annual basis. Adjusted gross profit margin increased 90 basis points sequentially and 110 basis points year-over-year to 32.7%. Adjusted operating expenses as a percentage of sales decreased 160 basis points year-over-year to 20.7%. Adjusted EBITDA margin was up significantly by 300 basis points to 18.3%. The strong year-over-year margin performance was mainly due to price more than offsetting raw material increases, volume and associated absorption, partially offset by higher manufacturing costs, including COVID-19 absenteeism and higher depreciation. The adjusted effective tax rate in the quarter was 27.7%, in line with our outlook of 26%-28%. We reported GAAP earnings per share of $0.42 versus $0.26 in the prior year period. On an adjusted basis, EPS was $0.47 versus $0.32 in the prior year. The main drivers of our improved adjusted EPS performance are highlighted on the bridge on slide five. The effects from operations this quarter were $0.19, including approximately $0.03 of Simplification/Modernization carryover benefits. The factors contributing to the substantial improvement in EPS year-over-year are the same as the drivers of our strong margin performance this quarter that I just reviewed. The year-over-year quarterly EPS was negatively affected by $0.05 related to taxes and negative $0.02 due to currency. Slide six and seven detail performance of our segments this quarter. Metal Cutting sales increased 5% organically year-over-year versus flat in the prior year period. Currency was a negative 5% effect in the quarter and business days was a positive 2%. On a year-over-year basis, all end markets, excluding transportation, posted gains this quarter, with aerospace continuing its strong momentum at 29%, general engineering at 10%, and energy at 9%. Although transportation declined by 7% year-over-year, it was better than expected. Sequentially, all end markets improved, including transportation. Regionally, the Americas led with year-over-year sales growth of 11%, followed by EMEA at 9%. Asia-Pacific declined by 7%. Like last quarter, the decline was concentrated in China due to COVID-19 lockdowns, mainly affecting transportation and energy end markets. As Chris mentioned, we continue to believe underlying transportation demand remains strong. As such, we expect that a recovery will follow the resolution of supply chain issues. Adjusted operating margin increased 290 basis points to 11.1%. The increase was driven mainly by favorable pricing versus raw material increases and higher volume and associated absorption, partially offset by higher manufacturing costs, including COVID-19 absenteeism and higher depreciation. Our growth initiatives remain on track, and we are continuing our pricing actions to ensure we price for the value of our products and look to cover the inflationary pressures in the current environment. Operational excellence is also on track as we continue to drive productivity and leverage our modernized facilities. Turning to slide seven for Infrastructure. Organic sales increased by 12% year-over-year versus a 3% decline in the prior year period. There was a positive effect of 1% due to business days and a negative effect of 1% due to currency. Regionally, the Americas continued its strong year-over-year growth at 20%, followed by EMEA at 13%. Asia-Pacific was flat year-over-year. In the first and second quarters of the fiscal year, the strength in the Americas was driven mainly by improvements in the U.S. oil and gas market, as seen in the continued increase in the U.S. land-only rig count. By end market, energy was up 33% year-over-year. Earthworks was up 13%, and general engineering was up slightly at 1% growth year-over-year. Sequentially, energy continued its strong growth, followed by Earthworks. Adjusted operating margin improved by 190 basis points year-over-year to 12%. This increase was mainly driven by price exceeding raw material cost increases and higher volume and associated absorption. In the case with Metal Cutting, we remain on track with our commercial and operational excellence initiatives. Now turning to slide eight to review our balance sheet and free operating cash flow. We continue to maintain a strong liquidity position, healthy balance sheet, and debt maturity profile. At quarter end, we have combined cash and revolver availability of $773 million, and we're well within our financial covenants. In dollar terms, primary working capital increased year-over-year and sequentially to $676 million, due mainly to an increase in inventory resulting from higher material costs, the unexpected decline in sales in China, as well as strategic decisions on safety stock due to continuing supply chain issues. On a percentage of sales basis, primary working capital was relatively flat sequentially at 31.2% and a significant decrease on a year-over-year basis. Net capital expenditures were $22 million, relatively flat year-over-year. We now expect fiscal year 2022 capital expenditures to be approximately $105 million, slightly lower than previously forecast due to supply chain constraints with suppliers, longer lead times, and COVID-19 absenteeism. Our third quarter free operating cash flow was $13 million versus $47 million in the prior year quarter. The decrease in free operating cash flow is due to greater than expected increase in working capital, mainly inventory, reflecting the unexpected and rapid change in the external environment this quarter that I touched on a moment ago. We paid a dividend of $17 million in the quarter. Finally, we repurchased $15 million of shares during the quarter. Since inception of the program earlier this fiscal year, we have repurchased $50 million in shares as part of our $200 million program. The full balance sheet can be found on slide 13 in the appendix. Now, let's turn to slide nine to review the outlook for the fourth quarter. We expect sales to be in the range of $510 million-$530 million, which represents a year-over-year growth range of approximately flat to 3%. This outlook reflects recent market disruptions, including the broader effects of the Ukraine conflict on sales in Europe and the elimination of sales in Russia. In addition, the outlook assumes limited China sales in April through mid-May due to the effect of COVID-19 lockdowns on our Shanghai distribution center and many of our customers. These disruptions, and a continuing negative effect from foreign exchange, are masking what would otherwise be a strong revenue growth, mainly in aerospace, energy, and earthworks. On the cost side, as discussed on previous earnings calls, higher raw material costs, as well as other inflationary headwinds continue. We expect to offset them through value-based pricing appropriate for this inflationary environment and productivity. Adjusted operating income is expected to be a minimum of $55 million. On a year-over-year basis, margins will be negatively affected by lower price net raw favorability this quarter versus the prior year period and higher general inflation. However, it's important to note that sequentially, margins will be relatively flat despite increasing inflationary cost. This is a solid result made possible by proactive value-based pricing and our focus on driving productivity through operational excellence. On a full year basis, we expect depreciation and amortization to be approximately $135 million, increasing around $10 million year- over- year, capital expenditures to be approximately $105 million, and primary working capital as a percentage of sales to be approximately 31%. These assumptions together translate to free annual operating cash flow of approximately 75% of adjusted net income, below our long-term target of 100%, primarily due to higher working capital and lower than expected sales in China and Europe. With that, I'll turn the call back over to Chris. Thanks, Damon. Turning to slide 10, let me take a few minutes to summarize. We posted another solid quarter, as demonstrated by our strong operating leverage and improving margins, despite the rapidly changing macro environment. Our product innovations and commercial and operational excellence initiatives position us well to drive further share gains and improve margins. Our strong balance sheet and free operating cash flow give us flexibility to continue investing in our long-term strategic initiatives while optimizing the balanced capital allocation strategy. Looking forward, underneath the recent market disruptions, we believe most of our end markets are performing well, particularly aerospace, energy, and earthworks. Finally, we remain confident in our strategy and our ability to drive share gain and improve margins. With that, operator, please open the line for questions. Thank you. We will now begin the question-and-answer session. To ask a question, you may press star, then one on your touch tone phone. If you're using your speaker, speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble our roster. Our first question comes from Stephen Volkmann from Jefferies. Please go ahead. Hi. Good morning, guys. Thanks for taking my question. Damon, I wonder if you could put a little sharper pencil on your comments around. Assuming continuing interruptions around European demand due to Russia, Ukraine, your direct business in Russia and then China, how much do you think that is kind of headwind in your fourth quarter thinking? Yeah. You know, I think, Steve, good question. You know, for us, as we talked about the direct sales for Russia are around $20 million annualized, so usually a little bit more second half weighted. Let's call that $5-$7 million of a sequential headwind. When we look at China, what we've seen and what we've been able to ship in April, and our assumption that it will be limited through mid-May, I would tell you that that's affected our sequential sales in the range of $10-$15 million. So those would be the ones that we're sort of quantifying. There's a little bit of an indirect bit in Europe as well related to things like supply chain challenges for automotive, smaller. I think the other point that I would highlight is we talked on the FX. If you think about FX sequentially from Q3 to Q4 and where the dollar is, we would estimate that's about $5 million-$7 million of a sequential headwind as well. When you put it all together, I would say $20 million-$30 million of an effect relative to what we thought when we talked about three months ago. Okay, great. That's helpful. Just to add. Sorry, Chris. That would put us, you know, I think the consensus that we had talked about on the last call was the fourth quarter, somewhere around $543-$545. That puts us right in the middle of where we thought we'd be when we started the quarter. You know, the Russia and China lockdowns, obviously we didn't anticipate that. Understood. Then, as a follow-up, you know, it seems like things are really starting to take off in energy, oil and gas and mining, et cetera. It's been a while since that's happened. Can you just remind us, I guess I'm expecting that should be a strong positive mix for you in those end markets, but can you just comment on whether that's still the case and how we should think about that for 2023? Yeah. I think energy and both energy and mining, energy in particular is certainly a positive mix for us. Mining is also, but more from the perspective, maybe not so much historically, Steve, is that our mining adjacencies in some of the areas we're expanding into, as we're doing that, we're, you know, we're realizing our value proposition is pretty sound. We think that type of business could actually be more profitable than historical. Both of those, just in simple terms, to answer your question, would be a positive mix for us from a profitability perspective. Great. Thank you. The next question comes from Steven Fisher from UBS. Please go ahead. Thanks. Good morning. Just, you know, when you add up the puts and takes, can you maybe just kind of at least directionally give us a little help on what you're assuming in Q4 for Metal Cutting versus Infrastructure, I guess, organic growth and volumes? Yeah. You know, Steve, we don't really give any specifics by business unit. I think if you look at the outlook we gave you in the sequential, and you use the midpoint, right, it's gonna be up modestly. I think what you can assume in knowing our business is we do see a sequential improvement in infrastructure from Q3 to Q4, you know, related to the road construction season. I think what you'd be seeing is that is a natural increase there. I think everything else would sort of fit within that overall outlook that we gave you. Okay. Just to clarify the China comment, what have you assumed sort of for the second half of the quarter after mid-May? Our assumption right now, as I mentioned on the call or the prior conversation, is that we've assumed about a $10-$15 million reduction in sales here in the first half of this fiscal fourth quarter versus the third quarter. We would expect that our warehouse would begin to open here in mid-May and our customers would reopen, and we would start to resume sort of, I'll call, normalized sales. We don't expect any sort of recovery in the sales that we have lost here in the first half of this quarter related to the warehouse being down and the customers. We've sort of assumed normal in the back half. Okay. Normalizing. Got it. Then just lastly, you mentioned that transportation was better than expected. Can you just kind of give us what your expectations were and maybe kind of what drove it better than you expected? Was that something, you know, operational internally, or was it just, you know, the market, your expectation for the market was just much worse? Then maybe you could just level set for Q4. Thank you. Yeah. In terms of transportation, our expectation was that transportation actually would be flat sequentially, and it was a little bit stronger. I think that's just reflective of the fact that, in general, the supply chain bottlenecks, they're still there for sure in transportation, but they started to recover better than we thought. And then our expectation for Q4 is the transportation will still kind of remain flat. You know, the good news is there's some signs that the chip issue is starting to resolve itself. Unfortunately, the war in Ukraine has caused some significant disruptions with wiring harnesses and stuff, and it's caused some shutdowns of production. But the car companies are clever, and they're working through all that. We think the right estimate for transportation Q3 to Q4 is still to be flat. Depending on how well they fix some of these things, there could be some upside to that. Our next question comes from Julian Mitchell from Barclays. Please go ahead. Hi. Good morning. Just wanted to start off on the operating margin front. As you said, I think your guidance implies operating margins year-over-year are down, you know, 140 basis points or so with flattish sales. Just trying to understand, you know, is all of that decline sort of price, you know, net of cost? Then how do we think about that decline or that pressure on margins playing out beyond the current quarter when you look at sort of spot input costs and the price measures that you're pushing through, you know, what impact does that have maybe looking out to September or December? Yeah, Julian, I think in terms of the year-over-year difference, the big driver was that the price/raw favorability is less in the fourth quarter this year than it was last year, and then general inflation. Those are the two big drivers. I would say in terms of you know, the reason that Damon emphasized the point that we maintain flat margins sequentially is because we believe that our pricing actions, which we have been proactive, as you know, you know, we sort of been price positive, price/raws throughout the year. That was part of our pricing strategy. Plus, we're driving productivity. We expect to, as we go through next year to do the same thing and make sure that our pricing actions are commensurate with the inflationary environment we have, and we'll continue to drive productivity. Which is again, why we are emphasizing that, you know, keeping the margins flat in this environment, actually was a positive and was a proactive action on our part. I see. Just from a sort of a year-on-year standpoint, do we think that this is the quarter of sort of maximum pressure year-on-year from price, cost, and inflation, and then it eases sort of gradually beyond this quarter? Well, you know, I think, Julian, the answer is, you know, when I think about the absolute delta in what we were positive price versus raws, if you remember, we were very positive in the first half of this fiscal quarter, and we've talked about the increasing cost continuing to flow into our P&L. Then as we periodically priced, you know, we see that improvement. As I think about the first half of next year, we know these material costs and other inflationary costs are continuing to increase sequentially, which is what you're seeing in the quarter here. We know that will continue in the first half, and it will continue to squeeze that price versus raw benefit we saw last year. It will be bigger last year than it will be in the forthcoming quarters here. Again, as Chris said, we're gonna maintain our diligence on pricing for value and trying to make sure that we're doing our best to offset these inflationary costs. Keeping margins flat in the fourth quarter is an example of our aggressiveness in looking to do that. Again, I think you got to look, remember what we had in the first half of last year or this current year, and how we were significantly positive price versus raws. Thanks very much. My follow-up, Damon, maybe this is more one for you just around working capital, because I think that, you know, a lot of companies have complained about, you know, super strong revenues and demand putting upwards pressure on working capital, and that's hurting cash flow. You know, now it seems the sales are falling a bit short, and that's also putting upwards pressure on working capital and downwards pressure on free cash flow. Maybe help us understand sort of from here, you know, how that plays out and your inventories, I think are close to a high twenties share of revenue. You know, how long does it take for those to get back to that low twenties historical rate? Yeah. You know, I think, Julian, for us here is if you look in the quarter, our inventory went up just around $30 million from Q2 to Q3. Our, you know, our working capital as a percentage of sales is right around 31%. As I said on the scripted portion, you know, we would expect that to sort of be there at fiscal year-end is right around 30%-31%. If I think about what happened this quarter, you know, there was a couple things, you know. You know, in our inventory, our finished goods, a lot of that is ordered and shipped very quickly. We always talk about having the right inventory to ship. With what's happened here in Russia and China, you know, we have built that inventory that's now sitting in our finished goods, you know, and looking for alternative homes for that. In addition to that is these material costs have continued to increase through the quarter. That's increased the overall value of our inventory. As we look at where tungsten prices are right now, we know that we'll continue to increase the value of the inventory as we move into the fourth quarter as well. Those are probably two of the biggest drivers influencing the overall working capital. The third one, and as we've said this before, we are being very careful to run our operations, and we made some decisions to strategically add some inventory for certain materials here in the third quarter, and that was probably the third component. You know, our goal is to try to get closer to this 30% of sales. Again, a lot's gonna depend on that top line as we need to continue to see the markets continue to recover. You know, we think 31% for around 31% for the fourth quarter and then sort of hopefully trending around that to lower to 30% as revenues continue to improve. Yeah. Julian, I would just add that, you know, so Damon mentioned the sale that unexpectedly went away for the reasons we talked about. You know, operationally, what that means is since you already loaded the factories, you know, months in advance of that, and we're producing that higher level, you know, we are modernized and we are lean, but for a factory to make that kind of adjustment, it's gonna take several months to sort of work through that. It was the suddenness of the sales coming away that was a big driver in the inventory increase. That's very helpful. Thank you. The next question comes from Tami Zakaria from JP Morgan. Please go ahead. Hi. Good morning. Thank you so much for taking my questions. My first question is on incrementals. Can you help us understand how to think about incrementals for the next fiscal? More specifically, if raws prices stay where they are, do you expect to realize sort of the normal incrementals in the full fiscal of next year? Or how should we think about incrementals in the first half versus the back half? Yeah. Let me just, I'll make a couple comments. On the price versus raws, that's something that we have a long history of being able to stay ahead of. You know, as we operate the business going forward, that's something we still expect. As Damon and I both said, we'll expect it to at least be neutral on price raws, as we can going forward through our proactive pricing actions. I think, Tami, to think about in terms of the incrementals, you know, we're in a higher inflationary environment than historically we've been in. I mean, all companies are experiencing that. I think the thing to keep in mind is that, you know, as we adjust price to offset these raw materials and higher general inflation, you know, price becomes covering cost, becomes a larger portion of our revenue. As we've said before, that doesn't lever. What we need in the factories to lever is actually revenue that generates more pieces through the factories. We spent a good portion on modernization. We've got these factories that are ready to perform, but they need more piece volume. As you're doing your models, you got to factor in that the more of our growth that comes from price covering covering costs, that's not gonna lever. It's got to be the revenue portion that generates more volume through the factories. Do you add anything to that, Damon? Yeah. I think the only other point I would add, Tami, especially in the first half of fiscal 2023, and no different than what we've talked about here in Q4 of 2024, is given the positive price versus raws and the very strong operating leverage we saw in the first half of this year. Again, when you adjust for those temporary cost actions that were in effect a year and a little bit over a year ago, our leverage in the first half of this year was very strong, which we alluded to being positive price versus raws. Again, in any quarter, when you look at Q1 of 2023, you have to factor that in as you think about the, you know, that quarter's leverage year over year. Understood. Thank you so much. The next question comes from Dillon Cumming from Morgan Stanley. Please go ahead. Great. Good morning, guys. Thanks for the question. Maybe if I can stay on the line of questioning on 2023 for a second. You know, ex transportation, it still feels like the bulk of your end markets are still kind of improving sequentially into the fiscal fourth quarter. You know, hoping we get some normalization in China and Central Europe over the next few months. But, you know, sitting here today, are you kind of able to underwrite 2023 as a growth year from a year-over-year volume perspective? I know, Chris, you still kind of alluded to the incremental, you know, contribution from pricing. But this would be more curious from the volume perspective what your view is going into next year. Yeah. I think we're obviously not giving our FY 23 guidance, but just a little color on transportation, for example. We think that, you know, the demand pattern is still strong there. There's a lot of pent-up demand. The supply chain issues, you know, the fact that they've gotten worse here because of the Ukraine and a little bit on COVID in China, those will eventually rectify themselves. We feel good that transportation still has runway ahead of it to grow. I don't see the energy situation and some of the mining improvements. I don't think those are short term. I think that's gonna continue to trend in the right direction. Or excuse me, aerospace has not recovered to pre-pandemic levels. I think we still feel pretty good about that growth trajectory there. Also general engineering, you know, a portion of that is obviously affected by transportation, so that'll improve as transportation improves. You know, if we look around the world, most of the prognosticators still have expanding PMIs and manufacturing indices. We think there's the opportunity for growth next year at this point. Got it. Yeah, that's a helpful color. Thanks, Chris. Then maybe it's my last one. You know, a question on kind of customer inventory levels. I guess there's been some more conflicting reports in the channel with regards to customers potentially holding more inventory than needed for the same reason I think, you know, kind of metals and holding higher safety stock over the last few quarters here. I think you've been clear in prior quarters that you've never really seen a restock. I'm just kind of curious to get your view around that dynamic. Yeah, you know, I wouldn't call the. We haven't seen the normal restocking that you would see when these type of businesses typically come out of a downturn. But we do see a, you know, general inventory build in some regions. But generally, as we've said before, you know, there's still reservations on customers. They're being careful about how much of that inventory build happens. Obviously, those that are supporting things like medical, aerospace, and process industries, which tend to be a little less cyclical and are growing, that's probably where that inventory build is being done to support it. I would say on the Infrastructure side, you know, the customer level, customer inventory, I'd say, is sort of stable, and it's kind of normalized across markets based on the demand they see. Again, not the normal restocking you would see, especially in Metal Cutting. Where there's, you know, positive growth trajectories that are pretty solid and long-term, like in medical and aerospace and some of the process industries, I think that's where it's what's happening. Got it. Appreciate the time. There are no more questions in the queue. This concludes our question and answer session. I would like to turn the conference back over to Christopher Rossi for any closing remarks. Thanks, operator, and thanks everyone for joining the call today. This quarter, I think is another proof point that our strategic initiatives are working. We feel very good and confident in the investments that we've made as a company to modernize our factories and to demonstrate the return on those investments and the profitability improvements possible as we drive higher volumes through these factories. As always, we appreciate your interest and support, and please don't hesitate to reach out to Kelly if you have any questions. Have a great day. Thank you. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.