Hello, and welcome to the Nordson Corporation's third quarter fiscal year 2023 conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star one on your telephone keypad. If you would like to withdraw your question, again, press the star one. I'll now turn the conference over to Lara Mahoney. Please go ahead. Thank you. Good morning. This is Lara Mahoney, Vice President of Investor Relations and Corporate Communications. I'm here with Sundaram Nagarajan, our President and CEO, and Joseph Kelley, Executive Vice President and CFO. We welcome you to our conference call today, Tuesday, August 22nd, to report Nordson's fiscal 2023 third quarter results. You can find both our press release as well as our webcast slide presentation that we will refer to during today's call on our website at www.nordson.com/investors. This conference call is being broadcast live on our investor website and will be available there for 14 days. There will be a telephone replay of the conference call available until Tuesday, August 29th, 2023. During this conference call, references to non-GAAP financial metrics will be made. A reconciliation of these metrics to the most comparable GAAP metric was provided in the press release issued yesterday. Before we begin, please refer to slide two of our presentation, where we note that certain statements regarding our future performance that are made during this call may be forward-looking based upon Nordson's current expectations. These statements may involve a number of risks, uncertainties, and other factors as discussed in the company's filings with the Securities and Exchange Commission that could cause actual results to differ. Moving to today's agenda on slide three, Naga will discuss third quarter highlights. He will then turn the call over to Joe to review sales and earnings performance for the total company and the three business segments. Joe will also discuss the balance sheet and cash flow. Naga will then share a high-level commentary about our enterprise performance. He will conclude with an update on the fiscal 2023 full year and fourth quarter guidance. We will then be happy to take your questions. With that, I'll turn to slide 4 and hand the call over to Naga. Good morning, everyone. Thank you for joining Nordson's Fiscal 2023 third quarter conference call. While sales were at the low end of our expected guidance range for the quarter, I would like to recognize the dedicated Nordson team, who has actively controlled costs in divisions where it was necessary and leveraged the NBS Next Growth Framework to deliver strong growth in divisions where the market demand was strong. This resulted in adjusted earnings per share of $2.35, which was at the high end of our third quarter EPS guidance. Going into the third quarter, we expected to be pressured by the ongoing weakness in our electronics and biopharma product lines. We understand the macro factors impacting these end markets, and we have the line of sight to returning to growth. This quarter's electronics end market softness is particularly visible when looking at our results in Asia Pacific, which declined 20%. This reflects decreased demand from semiconductor customers in our ATS segment and electronics assembly customers in our MFS segment. These markets are cyclical, and we anticipate them turning in the middle of 2024. The diversification of our business offsets some of this pressure. From a product perspective, we continue to experience double-digit organic growth in medical Interventional Solutions and polymer processing product lines, as well as high single-digit growth in the Test and Inspection business. Regionally, we experienced mid-single-digit organic growth in both Americas and Europe as our customers in both these regions are rebalancing their supply chains to be closer to the markets they serve. I'll speak more about the enterprise and our exciting new acquisition of ARAG in a few moments. First, I'll turn the call over to Joe to provide a detailed perspective on our financial results of the quarter. Thank you, Naga. Good morning to everyone. On slide number 5, you'll see third quarter fiscal 2023 sales were $649 million, a decrease of 2% compared to the prior year's third quarter sales of $662 million. This was driven by an organic decrease of 5%, partially offset by the favorable benefit of the CyberOptics acquisition. During the quarter, sales were negatively impacted by the end-market pressures that Naga referenced. Gross profit for the third quarter of fiscal 2023 totaled $360 million. Excluding severance costs, gross profit totaled $362 million, or 56% of sales, which is comparable to the prior year third quarter. SG&A in the third quarter was elevated to $189 million, above the $181 million we have been averaging for the last six quarters. Third quarter SG&A was impacted by notable non-recurring items that I'd like to highlight. Our teams advanced 2 separate $1 billion global acquisition targets through the comprehensive due diligence process, all the way to the final stages. As a result of these two significant and strategic projects, we incurred $7 million in non-recurring costs from third-party service providers. We ultimately chose to move forward only with ARAG, which included an additional $1 million for the fairness opinion. In total, we incurred $8 million in non-recurring costs for acquisition-related activity in the third quarter. Operating profit, excluding these non-recurring items, was $181 million in the quarter, or 28% of sales. 4% below the prior year adjusted operating profit of $188 million. Despite the lower sales volume, we held on to decremental margins on adjusted operating profit of 56%, reflective of our cost controls and improved pricing, which can be attributed to our team's dedication to the NBS Next framework. As we execute the Ascend Strategy and scale through strategic acquisitions, EBITDA remains a key profitability metric. EBITDA for the third quarter was $208 million, or 32% of sales, which is above our long-term profitability target. $5 million or 2% below the prior year EBITDA of $213 million. The decrease was primarily driven by lower sales volume in the quarter. Looking at non-operating expenses, interest expense increased $6 million associated with higher borrowings and increased interest rates. Other net expense decreased $2 million, related to a combination of changes in pension and deferred compensation plans, as well as foreign exchange gains and losses. Tax expense was $34 million for an effective tax rate of 21% in the quarter, which is in line with the prior year third quarter rate and the forecasted full year rate for 2023. Net income in the quarter totaled $128 million, or $2.22 per share. Adjusted earnings per share, excluding non-recurring acquisition and severance costs, totaled $2.35 per share, a 6% decrease from the prior year adjusted earnings. The decrease was primarily driven by higher interest expense and lower operating profit. Let's turn to slide 6-8 to review the third quarter 2023 segment performance. Industrial Precision Solutions sales of $338 million decreased 1% compared to the prior year third quarter, driven by softness in our product assembly and nonwoven product lines in Asia. This was partially offset by continued strength in polymer processing product lines and growth in the Americas and Europe. Year to date, the IPS segment has delivered 3% organic sales growth, following two consecutive years of double-digit growth. EBITDA for the quarter was $122 million, or 36% of sales, which is a decrease of 3% compared to the prior year EBITDA of $126 million. The biggest driver of the decrease is lower sales volume and unfavorable sales mix due to the higher sales volume in polymer processing product lines. EBITDA in the current quarter has improved compared to the prior 2 quarters of the current year, and year to date is $4 million higher than the prior year. On slide 7, you'll see Medical and Fluid Solutions sales of $171 million decreased 4% compared to the prior year's third quarter. The decrease was driven by continued softness in the Fluid Management Components division, related to destocking in single-use plastic components for biopharma applications and fluid solution product lines, specifically for electronic assembly, primarily in Asia Pacific. This pressure was partially offset by double-digit growth in our medical Interventional Solutions product lines. Third quarter EBITDA was $68 million, or 40% of sales, which is a decrease of $8 million compared to the prior year EBITDA of $76 million. EBITDA continued to be impacted by meaningful sales mix changes within medical product lines. It is noteworthy that the segment EBITDA margin sequentially improved 200 basis points over the second quarter of 2023, and back to the profitability levels this segment delivered in 2021 and 2022. Turning to slide 8, you'll see Advanced Technology Solutions sales were $140 million, a 3% decrease compared to the prior year third quarter. During the quarter, the CyberOptics acquisition contributed 11% growth. Organic sales volume was down 13%. The organic decrease was driven by electronics dispense product line, serving semiconductor end markets, predominantly in Asia Pacific, slightly offset by continued growth in test and inspection products. The cyclical downturn of demand in the semiconductor market will anniversary in the second quarter of fiscal 2024, which aligns with the historic down cycles lasting approximately 4-5 quarters. Structural cost reduction actions were taken during the third quarter of fiscal 2023 to address the volume decrease in electronic dispense products. For example, they've chosen to outsource their fabrication shop to focus on more value-added precision dispense technology, resulting in a $2 million of non-recurring severance costs. Third quarter EBITDA was $33 million, or 24% of sales, which was an improvement compared to the prior year third quarter EBITDA of $30 million. The improvement in EBITDA during the quarter was driven by favorable sales mix and continued realization of cost savings actions. Despite the double-digit organic sales volume decrease, this segment is delivering quarterly profitability only 100 basis points below 2022 levels. Finally, turning to the balance sheet and cash flow on slide 9. We had a very strong cash flow quarter, generating $181 million in free cash flow, bringing our year-to-date cash conversion rate on net income to 126%. Cash ended the quarter at $143 million, and net debt was $695 million, resulting in a 0.9x leverage ratio based on the trailing 12 months EBITDA. We continue to have significant available borrowing capacity to pursue organic and inorganic growth opportunities, such as our upcoming acquisition of ARAG. We expect to close the ARAG acquisition by the end of August and exit the year with a net debt to EBITDA leverage ratio of approximately 2 times. During the third quarter, we repaid $111 million of debt, paid $37 million in dividends, and spent $23 million on repurchasing approximately 107,000 shares of company stock at an average price of $217 per share. Our board approved a 5% increase in our annual dividend, effective in the fourth quarter of fiscal 2023. This marks the sixtieth consecutive year the company has increased its dividend, an impressive accomplishment only enabled by maintaining a truly differentiated precision technology portfolio and serving diverse end markets. For modeling purposes in fiscal 2023, assume an estimated effective tax rate of 20%-22% and capital expenditures of approximately $35 million-$40 million, as several of our investment timelines have pushed out. With our upcoming acquisition of ARIC, I want to provide you with some assumptions for modeling purposes. For revenue, assume approximately $20 million-$30 million in fiscal 2023. EBITDA margins are expected in the high 30% range. We expect ARAG to be slightly dilutive to GAAP EPS in Q4 2023 due to increased amortization of acquisition-related intangibles and interest expense associated with the acquisition. Excluding acquisition costs and related intangible amortization, EPS should be neutral for the fourth quarter. Due to the expeditious nature of the close, the acquisition will initially be financed with a short-term loan and revolver borrowing.... We anticipate following up with a bond issuance in the public markets later this year. We are currently working through the ratings process. Based on current market conditions, assume a weighted average interest rate of approximately 5.5% for total Nordson debt in 2024. We will now turn to slide 10. I'll turn the call back to Naga. Thanks, Joe. Our team continues to execute the Ascend strategy, which is clear in the strong profitability delivered in this quarter. While we are managing the short-term sales weakness related to the biopharma end market and electronic cycle, we're getting closer to anniversarying that pressure in fiscal 2024. Related to the biopharma product lines in our Fluid Management Components division, we believe we have seen the bottom of the customer's unique supply chain destocking trend, and will anniversary this pressure in the 1st quarter of fiscal 2024. Following this period, we cautiously expect the Fluid Management Components business to return to its historical mid to high single-digit growth rate over time. Moving on to electronics end markets, I visited our Nordson Electronics Solutions leadership team in Carlsbad, California, earlier this month. Our team's expectation is that electronics CapEx spend cycle will begin to turn in the second half of the calendar 2024. We expect to benefit from customer investments in automation, memory, AI, and electronics new product innovation. In the meantime, this division is successfully managing costs while staying invested in profitable growth opportunities identified through the NBS Next Growth Framework. In fact, the NES division exceeded its targeted incremental margins during this low volume period. We also continue to be pleased with the growth of our Test and Inspection division, which mutes the volatility of the electronic cycle. Geographically, we are closely monitoring the pressure in Asia Pacific region, specifically in China. The regional sales weakness was largely related to the electronics exposure, though there was weakness in demand across all three segments, some of which was due to the timing of large system orders. Nordson has a well-established footprint in China with long-tenured and knowledgeable employees. We will remain close to our customers and support them appropriately. Simultaneously, Nordson's business model positions us well to support customers if they decide to diversify their supply chain to other regions of Asia or into the Americas and Europe. Our customer-intimate business model ensures we are prepared to fully participate as global supply chains rebalance. Finally, I'd like to share an update on the Ascend strategy. Acquisitions are a very important part of our goal to achieve $3 billion in revenue by 2025. Of the $500 million acquired revenue target we set at our 2021 Investor Day, we are now nearly 80% of the way there. In June, we announced the acquisition of ARAG, a global market and innovation leader in precision spraying technology. Precision dispense technology is core to Nordson. Over nearly 70 years, we have expanded that expertise beyond our beginnings in industrial applications into dispense for packaging, product assembly, nonwovens, electronics, medical, and more. Through it all, we adhered to disciplined strategic acquisition criteria, differentiated technology, generated Nordson-like gross margins, high growth end market applications, and a customer-centric business model. The acquisition of ARAG meets all of these criteria and expands our technology expertise into the high-growth end market of precision agriculture and is the largest single acquisition in our history. Today, ARAG is a market leader in precision agriculture technology in Europe and South America. ARAG fluid components are sold to implement manufacturers, who in turn sell to the tractor manufacturers or OEMs. ARAG closely works with all of the customers within these channels to ensure its innovation pipeline supports the customers' goals of improving crop yields and minimizing the use of expensive fertilizers and chemicals. It is also important to note that over 40% of ARAG's revenue is recurring aftermarket sales sold through distributors. We were attracted to the continued growth opportunity in ARAG's existing geographic markets. The opportunity to invest and grow ARAG's technology in North America presents an attractive proposition beyond the existing core market growth, upon which we valued the company. I'm very excited about the ARAG acquisition and the long-term profitable growth opportunities in our business. We have a winning team who's focused on the customer and managing through unique market headwinds while delivering solid profitability and cash flow. Turning to the outlook for the remainder of the year on slide 12, we are narrowing our previously provided 2023 revenue guidance, 0%-2% growth over record fiscal 2022, and narrowing our adjusted earnings guidance to $8.90-$9.05. Looking specifically at the quarterly sales and earnings split on slide 13, we expect fourth quarter sales to be the strongest of the year, increasing low to mid-single digits over the prior year fourth quarter at the midpoint. This guidance includes approximately $20 million-$30 million of sales from the ARAG acquisition that we expect to close in late August. Fourth quarter earnings are forecasted in the range of $2.34-$2.49 per share. Embedded in our forecast is strong profitability and cash conversion performance, which is a result of Nordson's operational excellence, a clear competitive advantage created through the execution of the Ascend strategy by winning teams with an owner mindset. As always, I want to thank our customers, shareholders, and the Nordson team for your continued support. With that, we will pause and take your questions. Thank you. If you have a question, please press star one on your telephone keypad. If you wish to remove yourself from queue, simply press star one again. One moment for your first question. Your first question comes from the line of Jeff Hammond of KeyBanc Capital Markets. Your line is open. Hey, good morning, everyone. Morning, Jeff. Morning, Jeff. Just really want to unpack the, the guidance change. I mean, I hear kind of Asia Pac and electronics kind of weaker, and then the ARAG impact. Maybe just unpack kind of what drives the lower end, and, you know, it seemed like the revenue was lighter in 3Q, but, you know, 4Q seems kind of in line, but, maybe just a, a little more help on, on the moving pieces. Thanks. Yeah, let me, let me take a start with that, Jeff, if, if I could. At, at, at the midpoint of the guide, it, it's, it's roughly 3.5% growth. When you, you think about that for Q4, the acquisition should contribute about 6%. FX will be favorable about 2.5, and from an organic standpoint, it's negative 5%, which is consistent with what we just delivered here in Q3. When you think about the range, appreciate on the ARAG acquisition, the timing of the actual close will contribute to that. You know, the first 2 months post-acquisition, we have that range there of 20-30. That drives some volatility, I would say, or flex, expands the range on the revenue guidance a little bit there. The other is, as I would tell you, is the timing of some large system shipments. Q4 last year was our strongest quarter of the year, as you recall. Q4 this year is forecasted to be the same. There are large system deliveries in there, sometimes those get pushed in, pulled out, so that contributes a little bit to the how wide the range is on revenue. You know, from an end market standpoint, Naga, you can comment. Yeah. From an end market perspective, you know, if you think about the three segments, you know, IPS, we feel pretty good about where we are at, you know, in comparison to our long term as well as sequentially. We expect the system to continue to be at or above our long-term growth rate, so that's what is embedded in the growth. Certainly, you know, electronics and biopharma, continuing at the levels they are today, we don't expect them to recover here in the fourth quarter. They certainly are our expectation, and we'll talk a little bit more about it later. In that electronics, we expect sometime in middle of calendar 2024 is when we expect that to turn, and biopharma, sometime in the first quarter of 2024 is when we anniversary. The growth on biopharma is going to be, as I indicated in my, the initial comments. That is going to be, you know, we're gonna be cautious here, as to when that fully recovers to its high single digits kind of growth rate. Nothing in biopharma long-term secular trend have been impacted, so we fully expect we will get to it. It is just a matter of how long it takes for us to get back to it. And then if you think about our Medical IS business, that is growing double digits. We fully expect that in the fourth quarter, we continue to do so. Our polymer processing businesses are doing incredibly well, and they are expected to do well in the next quarter. you know, we've got a 2 of system, businesses that have strong backlog we expect to do well as well. Just housekeeping questions on the ARAG deal 1. I think you said high 30s EBITDA margins. Just wondering what the, you know, if you've done the purchase accounting, what the D&A component is that would kind of get you to, to an, you know, kind of ongoing operating margin for that business in at least in year one. Just a clarification on the interest expense, that 5.5 is weighted for the total company, or is that for the ARAG deal? If so, just kind of how, you know, how to think about the interest costs associated with funding ARAG would be. Thanks. Yeah. Let me take a stab at that, Jeff. First of all, on the purchase accounting, you know, we'll hold off, and I'll give some clear guidance on that when we do our full year 2024. Right now, the guide with the amortization just is really looking at historical trends for acquisitions of this nature and a percentage of the purchase price. We will firm that up, and when we issue the 2024 guide for Nordson, which will include purchase accounting assumptions on ARAG. On the interest expense, you know, given the current market conditions, when depending on where the, the, the bonds will price later this year, our estimate currently is that total Nordson interest expense will be roughly 5%-5.5% based on current market conditions, and that's for our weighted basket of, of debt. What would that have been kind of pre the bond offering or pre ARAG? If you look our, our, from a year-to-date standpoint, we're slightly below 5% in terms of our weighted average interest cost. Okay, appreciate it. I'll give back in queue. Thanks, Jeff. Your next question comes from the line of Allison Poliniak of Wells Fargo. Your line is open. Hi, good morning. Good morning. I wanna go back to your comments on China. Is there any way that you know, I know there's some cyclical aspects to it, but you did talk to sort of maybe a potentially structural? Are you starting to see some, I would say, industries, you know, minimizing that region? You did talk about maybe the offsets in another regions for you. I don't know if there's any way to decipher what you're seeing in terms of cyclical versus structural over there at this point. Yeah. If you think about China itself. A majority of our electronic businesses, if you look at our electronic business divisions, more than 75% of their revenues is in Asia. Significant part of that is in China. If you think about our China, Asia Pac impact, what you find is the majority of the China impact is due to electronics. So that is more cyclical, and we fully expect that it follows the cyclicality. What we, what we do see is our major global customers. If you think about our China exposure, our China exposure is following large in- international global customers to China. You know, we do have some mid-tier Chinese customers that we serve, but across the segments, mostly it is global customers. What we find with most of our global customers, there is some amount of rebalancing of supply chain going on, but we don't see anybody making significant moves out of China. It seems from, from our work with our customers in other regions, be it in North America, or be it in Europe, or in other parts of Asia, we do see customers building, let's say, additional capacity or new capacity in different regions other than China. That's why you, we begin to see in our regional numbers, a nice growth in Americas and a nice growth in Europe, and a decline in Asia Pac. Asia Pac, in some ways, a big part of it is China. Japan, in general, is doing really well for us. It's a smaller business, but it is doing well. From, from what we can see, majority of the decline that we see today is cyclicals related to electronics. We do see some large system misses, which are, it could be up and down, given in any quarter. We, we don't see anything structurally changing, but we do see investments happening in other places, if that makes sense. It does. That was helpful. Thanks. Then backlog still relatively strong. You know, there's been a lot of supply chain rebalancing this year. Yeah. Do you feel like a lot of that's out of the backlog at this point, it's really just sort of backlog growth as we look forward or projects being pushed out? Just any color on that backlog number would be great. Yeah. I'll give you some color, and Joe can help me with some additional detail. The way to think about it is, our backlog is so historically high. That historically high backlog is driven by a couple of system businesses and our medical interventional business, where we get longer-term orders, which kind of go into our backlog, right? If you think about majority, about 60%, 70% of our business, we fundamentally believe our backlogs have normalized to the pre-pandemic levels. So you could think about supply chain normalizing in 60%, 70% of the businesses. These elevated backlog is mainly related to large system businesses, be it our polymer processing business or our IPS business and our medical IS business, which is sort of our, you know, where customers give us blanket orders. Joe, would you add anything more to that? No, I, I would just, I would be just repeating what you said. I mean, if you think about our backlog of $1 billion, it used to be balanced across all the divisions. It has migrated over the last, I would tell you, 6 months to maybe 9 months, and today it's disproportionately heavily weighted on the large systems businesses and medical IS, where the remaining, which is the majority of our business, has normalized to historical levels. Great. Thank you. Your next question comes from the line of Matthew Summerville of D.A. Davidson. Your line is open. Yeah, thanks. couple questions. As we kind of think about fiscal 2024 at, at a high level with the electronics piece seemingly turning in the second half, is that going to line up or coincide with a continued strength in T&I, or is there a little bit of give and take here? I basically have the same question for the medical side of the business. As biopharm begins to reaccelerate, does medical interventional begin to roll over or decelerate? I guess at the end of the day, I'm trying to conclude whether or not we can see a syncing, if you will, of organic growth between all four of those different, you know, pieces of the business, such that, you know, we see pretty good things out of Nordson towards the latter part of next year. Yeah. Let me, I'll, I'll give you some color around the end markets and what our expectations are, and, Joe, maybe you could add some numbers next to it, to the extent we can. First of all, we're not giving guidance for 2024 yet, so, so that's the perspective I'd give you. In terms of end market color, Matt, that's a really good question. Our expectations, you know, let me start with electronics. My expectations are that our electronic cycle sort of rebounds, you know, calendars 2024, middle of calendar 2024. At that time, our expectation is that you're going to see growth both in T&I and EPS. All along, we have talked about T&I muting the amplitude of the cycles. That's really what T&I is doing for us. It is not, you know, it is not like T&I is not cyclical. It's just the cycle amplitudes are smaller in T&I when compared to EPS, based on the businesses we based on the customers and the end applications we serve. Clearly, ATS, from a historical perspective, is muted, but as it comes back, you're going to see EPS bounce back nicely, like the traditional way we've done. T&I will benefit from it as well. It is not T&I is not going to benefit. That's, that is the electronic piece of it. If you think about our, biopharma and medical, you know, what you're going to find is, I mean, medical has some very strong double-digit growth here for the last couple of quarters. Mainly because, you know, as you're coming off a backlog and as you have elective surgery all getting back to normal, what you find is this pretty big, uptick in demand, for medical interventional components. That certainly, as we get into 2024 and later, you would expect that start to go to its historical mid to high single-digit growth rate. On the biopharma, you know, we, we fundamentally believe that it has bottomed out, and it's sort of settling in at this current levels. You know, by the end of first quarter, what you begin to see is it will be anniversary, the growth rates that we've enjoyed for two years, full four years of double-digit growth in flow components. That anniversaries itself, I would caution us in terms of how fast we get back to the high single-digit growth on biopharma. We fundamentally believe we'll get there. What we are not sure right now is how long it takes for us to get to that high single-digit growth rate. We believe nothing is impaired, but we're also cautious in terms of how fast the ramp happens. Hopefully, that gives you color on both those questions. Joe, anything else to add on the numbers? Yeah, I would just say, Matt, when you think about it, the electronics, the EPS division is down, like, roughly 20%. When you study the T&I, given the diversity of that end market and those applications, while it may go through ups and downs, and it's been growing the last several years. We, We, I wouldn't anticipate a scenario. We don't see a scenario where that's down 20%, offsetting some recovery in ATS. Similarly, I would tell you, if you go to the medical mix, you know, our, our, the destocking going on there in the biopharma is quite unique, where it's down 30%-40%. Whereas the medical Interventional Solutions, yes, it's growing nice double digits now, but if you go back during the pandemic, the COVID, that was only down, you know, I would say 10%, maybe 15%. It just doesn't have the, the, the magnitude of the swings that we're seeing in the current down cycle. I, I wouldn't anticipate that to offset the recovery in those in 2024. I think- Got it. Just in addition to that, I would say is Fluid Management Components, you know, flattens out, maybe picks up a little bit, and our interventional component grows high single digits, is sort of how I would... Got it. That's helpful. Then just as, as a follow-up, can you maybe talk about-- it sounded like you were running 2 concurrent $1 billion M&A processes over the last few months. Maybe talk about what made you kind of halt or, or, or walk away from, from the other deal, and why ARAG maybe won out over the other potential candidate? Yeah. If you look at both the deals, we were excited strategically for both those opportunities. They fit right smack dab in the middle of where we wanted to be. Highly differentiated precision technologies, very attractive growth rates in end markets we really like, in places we really understand and do well and have a customer-centric business model. Strategically, both of them were exactly where we wanted to be, and we, we pursued both of them equally. Yeah, when we came down to final due diligence, you know, we exercise financial discipline. We've always talked about, look, we first go through the strategic criteria, and if we, if we like it, we go to the next step. Then when it financially makes sense for the company, has the returns we like, then we do it. What I'm telling you is that on ARAG, we hit both of them. In the other deal, in the final analysis, we couldn't get there, and we were financially disciplined, and so we walked away from it. Thanks, Naga. No problem. Again, if you would like- So- If you would like to ask a question, press star 1 on your telephone keypad. Go ahead, Naga. Yeah. You know, one thing I would add, and as we were talking about the end markets, Matt, in, in your question, you know, the end market challenges and the upsides, and we talked about the 2 acquisitions. You know, I would kind of step back and, and think about this quarter. If you think about this quarter, what Nordson's team really did was have an operational excellence that kind of came through in the results. It really showed, you know, there were some challenges on the top line, but the team did an incredible job, and that showed through in the bottom line, right? One could look at it and say, "That's operational excellence," and you could simply walk away. What, from my vantage point, what really shines through is the work we've been doing inside the company around Ascend Strategy and the competitive advantage we're building. This competitive advantage of Ascend Strategy, really what it is, is you've got strong, winning teams with an incredible owner mindset that are executing the NBS Next Growth Framework and delivering results, right? That's the competitive advantage we're building, and that shows up in 3 different ways. 1, it shows up in divisions where end market conditions are challenged. The team really takes an owner mindset and figures out what kind of cost actions we need to take and deliver decremental margins that we've talked about in the 55%. You have a set of divisions that have strong market opportunities and really fully participating in that growth through some incredible customer service and delivering really strong incremental margins, right? On the third side, the company not sitting idle, certainly looking at what are the growth opportunities through acquisitions. The team really did three different things, and end of the day, that's what we're talking about here. That's, in my mind, is what is coming through in our results in the quarter. Your next question comes from the line of Christopher Glynn of Oppenheimer. Your line is open. Thanks. Good morning, Naga, Joe, Lara Mahoney. Was curious about the polymer markets, if there's, you know, any sort of interesting structural dynamics, you know, what you're seeing in terms of a typical timing around a recap cycle or market penetration momentum? Just curious for a higher level view of that market. I, you, you know, what, what we're seeing is this is a set, a set of businesses that we've gone through, some pretty good work around setting the business up for taking advantage of the growth opportunities. Really, the biggest growth opportunity that is out there, that this team is pursuing really is the recycling. What we find is, you know, this whole issue around plastic usage reduction, and I don't know whether I'd go as far as to say plastic ban, but in certain parts of the world, you know, those words get thrown around. We do find incredible, incredible demand for recycling. You know, we have some unique technology in our BKG business in Germany that allows us to serve that particular market. I would highlight that as a pretty strong secular trend that is going on. That business has some pretty strong backlog going into next year, a significant part of next year. Yeah, Chris, I would- Great. When you think about that, that polymer processing, you go, go back in time and remember the divestiture of the Xaloy business. The divestiture of that product line, I would tell you, resulted in upgrading the quality and the degree of differentiation of the product lines that remained in that polymer processing division. I think that's what you see also flowing through some of these numbers. Makes sense. Thanks. Just going back to Jeff's question on the D&A for ARAG. You referenced the kind of rule of thumb metric in forming the 4Q guide in terms of percentage of sales D&A. Just curious if that rule of thumb sorta correlates around 2.5%-3% of, you know, purchase price, since you kind of put it in generic terms, and also on ARAG, ARAG. Just the 40% through distribution, I know it's viewed as recurring, but stocking comes into question, particularly on the heels of a couple of year of global supply chain volatility. Just curious how you view the inventory levels, the channel kinda balances, and, you know, equanimity across that stock and flow sorta business. may-maybe, I'll be... Joe, you wanna take the D&A question first, and then I can maybe make a comment on the inventory piece? Yes. Yeah, the answer to your question is yes, that typical 2.5 of purchase price is our starting point in terms of the annual amortization. Thank you. In terms of inventory, remember, the recurring revenue here are parts. They're not significant systems or big units that are sitting in our distributor shelves that takes a little bit longer time. These are, you know, small sprayers and, you know, that sort of component. You know, we're still, you know, we still don't own the business. Obviously, we don't have a lot of detailed information around where they're at, but my expectation would be that that is not a significant issue for us in that business. Great, thanks for the extra color. Your next question comes from the line of Mike Halloran of Baird. Your line is open. Hey, good morning, everybody. This is Paz on for Mike. Hoping you could provide a little bit more color on the order entry comment. It looks like orders were down sequentially. You talked about pressure in China, in the Asia Pacific region, and then obviously some of the, some of the businesses are bouncing along the bottom. Can you maybe talk about some of the puts and takes that kinda got you to steady? It just sounded like maybe the commentary was skewed a little bit more onto the negative side. If you could just provide a little bit of color around, you know, order entry so far through August, that'd be good. That'd be great. All right. Let me start with where, where we're at in terms of the businesses, which is our Electronics Business and our Fluid Components, Biopharma Business. Both of those, order entry has bottomed out, is the best way to put it. Where they're currently performing, they've come to a place where we feel good about that it is not any further declines. We've seen, you know, as the quarter progressed, we could start to see that this was at the bottom. In terms of our businesses that are performing incredibly well and contributed to the growth, Medical Interventional Business and our Polymer Solution Business on the other end of the spectrum, have done well, and the order entry remains pretty robust. Then you have a group of businesses sort of in the middle, some a little bit high, some a little bit low. In all of those cases, what we truly find is the order entry have sequentially improved. They have improved through the quarters, and that's kind of where we would say the order entry has not significantly picked up or significantly declined, and that's really how we come to saying that it is about steady. Got it. That's, that's super helpful. Then, you know, following up on, on the question, differentiating between TNI and the dispense side within the electronics business. Naga, you mentioned that the amplitude of the cycles is different between TNI, but can you maybe talk about the length? I know, for instance, we kinda refer to a typical, you know, four to five quarter slowdown in dispense. You know, when, when the piper comes for the TNI business, you know, is it, is it typical to think of the length of the cycle and slowdown in similar terms, or should we be thinking about them differently as well? No, from, from what we know and based on our experience, no, it, it's about similar, you know. Maybe, is there an offset? There could be a slight offset, but nothing significant. We don't believe so. Understood. All right, thank you. I'll pass it on. Thank you. There are no further questions at this time. I will now turn the call back to Naga for closing remarks. Our strong operating performance reflects the strength of our differentiated position technology, customer-centric model, and diversified end markets. Again, I wanna thank Nordson employees for their commitment, which makes these results possible. The continued deployment of Ascend strategy will position us well for long-term growth. Thank you for your time and attention on today's call. Have a great day. This concludes today's conference call. You may now disconnect.