Q1 2025 CTS Corp Earnings Call
Okay.
Marie: Hello, everyone and thank you for joining the Cts Corporation first quarter 2025 earnings call. My name is Marie and I will be coordinating your call today. During the presentation. You can register your question by pressing Star followed by one on your telephone keypad. If you change your mind. Please press star followed by Duke.
those Sullivan: I will now hand over to your host here in those Sullivan Chairman President and CEO to begin. Please go ahead.
Noles Sullivan: Good morning, and thank you for joining us today for our first quarter 2025 results.
Noles Sullivan: We continue to execute on our diversification strategy to increase growth in our diversified medical industrial aerospace and defense markets, while also progressing on electrification and transportation.
Noles Sullivan: Revenue from our diversified markets grew 14% in the quarter.
Noles Sullivan: We also achieved strong bookings with a book to Bill ratio of one point to wait for the diversified end markets.
Noles Sullivan: In April we added a win for a new product line and transportation expanding our presence in the vehicle footwell.
Noles Sullivan: Current bookings for the second quarter indicate an improving trend while we are cautious on second half demand given current levels of uncertainty due to tariffs and the geopolitical environment Ashish will take us through the safe Harbor statement, Ashish I would like to remind our listeners that this conference call contains forward.
Noles Sullivan: Looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward looking statements.
Noles Sullivan: Additional information regarding these risks and uncertainties is contained in the press release issued today and more information can be found in the company's SEC filings.
Noles Sullivan: To the extent that today's discussion refers to any non-GAAP measures under regulation G.
The required explanations and reconciliations are available in today's earnings press release, and supplemental slide presentation, which can be found in the investors section of the Cts website.
Noles Sullivan: I'll now turn the discussion back over to our CEO Kieran Osullivan.
Kieran Osullivan: Thank you Ashish we finished the first quarter with sales of 126 million essentially flat from the first quarter of 2024.
Kieran Osullivan: For the quarter diversified end market sales, including sales to medical aerospace and defense and industrial end markets were up 14%.
Kieran Osullivan: While transportation sales were down 12% from the same period last year.
Kieran Osullivan: Diversified end market sales were 53% of overall company revenue in the quarter.
Kieran Osullivan: Our book to Bill ratio for the first quarter was 107.
Kieran Osullivan: Compared to 1.07 in the first quarter of 2020 for booking.
Kieran Osullivan: Bookings for our diversified end markets were strong with a book to bill ratio of one point to wait.
Kieran Osullivan: First quarter adjusted diluted earnings were <unk> 44 per share Ashish will add further color on our financial performance later in today's call.
Kieran Osullivan: In the medical end market first quarter sales were up 13% compared to the same period in 2024.
Kieran Osullivan: The book to Bill ratio in the first quarter was one three compared to 1.0 in the first quarter of 2024.
Kieran Osullivan: This significant increase in the book to Bill ratio represents new orders beyond the next quarter.
Kieran Osullivan: We are excited about the prospects for growth in minimally invasive applications for our products help deliver enhanced ultrasound images, making it easier for medical professionals to detect artery restrictions and deliver treatment medications.
Kieran Osullivan: We are proud to highlight that our product support solutions that help save lives.
Kieran Osullivan: During the first quarter, we had wins for medical ultrasound across all regions and secured purchase orders for increased volumes in medical therapeutics.
Kieran Osullivan: Additionally, we had wins for programs with application in kidney stone treatment and for intelligent imaging.
Kieran Osullivan: We added one new customer in the quarter for an AI driven ultrasound application.
Kieran Osullivan: Over time, we expect the volume increases in portable ultrasound diagnostics and therapeutics will enhance our growth profile.
Kieran Osullivan: As I mentioned earlier, we are already seeing strengthening in demand for therapeutic products.
Kieran Osullivan: Aerospace and defense sales for the first quarter were up 39% from the first quarter of 2024.
Kieran Osullivan: Excluding sales from the <unk> acquisition sales were up 8%.
Kieran Osullivan: The <unk> revenue reflects the seasonality expected in the business booking.
Kieran Osullivan: Bookings in the first quarter were up 32% from the prior year period, as we maintained a healthy backlog.
Kieran Osullivan: Our strategy is focused on moving from a component supplier to a supplier of sensors transducers and sub systems.
Kieran Osullivan: We also expect to expand our product range and market opportunity. After a period of integration we received multiple orders in the quarter for sonar non destructive testing temperature sensing and a larger order for an RF anti jamming application.
Kieran Osullivan: The integration of the <unk> business is progressing and the business continued to drive a strong pipeline of opportunities.
Kieran Osullivan: In the industrial market, we continue to see a gradual recovery in distribution as well as with Oems.
Kieran Osullivan: Sales in the first quarter were up 3% sequentially and up 4% compared to the prior year period, underscoring our expectation of a gradual recovery.
Kieran Osullivan: Bookings in the quarter were up 19% from the same period last year inventory levels remained more normalized.
Kieran Osullivan: We were successful with multiple wins in the quarter for EMC filters, industrial printing switches and controls distribution products and temperature sensing applications.
The two new customers in the quarter, one for our flow meter application and the other for temperature sensing.
Kieran Osullivan: Demand across the industrial market is expected to rebound in 2025. However, we are also carefully monitoring for potential demand softening due to uncertainty related to tariffs.
Kieran Osullivan: The mega trends of automation connectivity and efficiency enhance our longer term growth prospects.
Kieran Osullivan: <unk> sales were $58 million in the first quarter down approximately 12% from the same period last year due to the impacts of China market dynamics and competition for commercial vehicle products.
Kieran Osullivan: In the first quarter, we had awards across various product groups, including accelerator module wins with customers in North America, Europe and Asia.
Kieran Osullivan: We also added a new customer in electrification for our passive safety application.
Kieran Osullivan: In addition in April we added a new product line win per vehicle footwell integration with a north American OEM.
Kieran Osullivan: The near term growth rates for ice versus Evs and hybrids are less of a concern for us given our light vehicles products are mostly agnostic to the drivetrain technology.
Kieran Osullivan: Total booked business was approximately $1 billion at the end of the quarter.
Kieran Osullivan: Oems continue to delay sourcing decisions as tariffs and business uncertainty evolve.
Kieran Osullivan: Going forward, we expect hybrid sales to increase.
Kieran Osullivan: Interest in our <unk> product offering weight and cost advantages continues across Oems and our team is proceeding with samples and design customization.
Kieran Osullivan: Our first ebay customer has moved out the timing of the product launch and the timing of revenues. It's currently not clear we remain confident in the long term prospects for this product line, given the cost and waste benefits for our customers as well as the sentiment in the market from Oems and tier one chassis sister.
Kieran Osullivan: Suppliers.
Kieran Osullivan: We expect our E brake other footwear products and sensor applications will increase our ability to grow content.
Kieran Osullivan: For our diversified end markets in line with our strategy, we aim to expand the customer base and range of applications.
Kieran Osullivan: Subject to the evolving trade tariffs and associated economic uncertainty demand in the medical end market is expected to remain solid drip.
Kieran Osullivan: Driven primarily by medical ultrasound and therapeutic volume growth.
Kieran Osullivan: In aerospace and defense revenue is expected to remain strong given our backlog of orders and momentum from the site Quest acquisition with stronger sales in the second half of 2025.
Kieran Osullivan: Industrial and distribution sales are expected to improve gradually though we continue to monitor the potential impact of tariffs.
Longer term, we expect our material formulations supported by three leading technologies to continue to drive our growth in key high quality end markets in line with our diversification strategy.
Kieran Osullivan: Across transportation markets production volumes are expected to decrease in 2025, given the recent tariff announcements.
Kieran Osullivan: The North American light vehicle market was expected to be in the 15 to 16 million unit range.
Kieran Osullivan: Tariffs of 25% remain in place and market demand could be impacted.
Kieran Osullivan: European production is now forecasted in the 16 million unit range and showing some increased softness.
Kieran Osullivan: Due to overcapacity pressure from Chinese Oems.
Kieran Osullivan: China volumes are expected to be in the 29 million unit range.
Kieran Osullivan: <unk> vehicle penetration rates have softened in some regions while hybrid adoption continues to improve overall, we are monitoring the potential for headwinds and our transportation revenue due to trade tariffs, the China market dynamics and other regional factors.
Kieran Osullivan: We expect our next generation commercial vehicle actuator to go into production later in the second quarter.
Kieran Osullivan: We anticipate softness in commercial vehicle revenue throughout 2025.
Kieran Osullivan: As I mentioned previously revenue from the <unk> acquisition will introduce some seasonality where the timing of revenue may be influenced by the approval of funding by the U S government.
Kieran Osullivan: We expect the revenues for the Sidequests acquisition will strengthen in the next quarter and be stronger in the second half of 2025.
The impact of tariffs and the geopolitical environment are creating uncertainty.
Kieran Osullivan: We continue to closely monitor and evaluate the situation and are focused on agility in adapting to constant price adjustments in close collaboration with our customers and suppliers.
Kieran Osullivan: Assuming the continuation of current market conditions, we are maintaining our guidance of sales in the range of $520 million to $550 million and adjusted diluted EPS to be in the range of $2 20 to $2 35.
Kieran Osullivan: Now I'll turn it over to Ashish, who will walk us through the financial results in more detail Ashish. Thank you Karen first quarter sales were $126 million.
Kieran Osullivan: Similar to the first and fourth quarter of 2024.
Kieran Osullivan: Sales to diversified end markets increased 14% year over year.
Kieran Osullivan: <unk> added $3 million in revenue during the quarter.
Kieran Osullivan: Organic revenue growth for diversified end markets was 8%.
Kieran Osullivan: Sales to transportation customers were down 12% from the first quarter of last year due to the softness in sales related to commercial vehicle products and reduced volumes due to China market dynamics.
Kieran Osullivan: Our adjusted gross margin was 37% in the first quarter up 77 basis points compared to the first quarter of 2024, and down 63 basis points compared to the fourth quarter of 2020 for exchange rate changes had a favorable impact of $1 1 billion on gross margin.
Kieran Osullivan: During the first quarter, we saw.
Kieran Osullivan: Saw a very small impact from tariffs in early March and have focused on collaborating with our customers to pass on the additional cost burden as a result, there was minimal impact on our gross margin from tariffs in the quarter.
Kieran Osullivan: We are closely monitoring as the situation evolves and are in constant communication with our customers and suppliers. We are working with customers to ensure that we can keep the impact of tariffs on our business cost neutral.
Kieran Osullivan: As Karen indicated we had strong bookings in our diversified end markets in the first quarter. However, we are continuing to carefully monitor the potential impact of tariffs on the overall demand situation and the rest of 2025.
Kieran Osullivan: Earnings were <unk> 44 per diluted share for the first quarter adjusted earnings for the first quarter were <unk> 44 per diluted share compared to 47 per diluted share for the same period last year, our net interest cost increased by more than <unk> in the first quarter.
Kieran Osullivan: For the first quarter of 2024 due to the acquisition of SEAQUEST, We expect solid growth from this acquisition and are working on a robust pipeline of potential contracts move.
Kieran Osullivan: Moving to cash generation and the balance sheet, we generated $16 million in operating cash flow for the first quarter of 2025% compared to $18 million in the first quarter of 2024.
Kieran Osullivan: Our balance sheet remains strong with a cash balance of $90 million at the end of the quarter, our long term debt balance was $87 million, leaving.
Kieran Osullivan: Leaving us good liquidity to support strategic acquisitions during the quarter, we repurchased 144000 shares of Cts stock for approximately $7 million.
Kieran Osullivan: In total we returned $8 million to shareholders through dividends and share buybacks in the first quarter of 2025.
Kieran Osullivan: Have another $55 million.
Kieran Osullivan: Remaining under our current share repurchase program.
Kieran Osullivan: And our focus remains on strong cash generation and appropriate capital allocation and we continue to support organic growth strategic acquisitions, and returning cash to shareholders.
Kieran Osullivan: This concludes our prepared comments, we would like to open the line for questions at this time.
Speaker Change: Thank you Ashish to ask a question. Please press star followed by one on your telephone keypad now if you change your mind. Please press star followed by Dave.
Kieran Osullivan: Wanted to ask your question. Please ensure that your devices are needed.
Speaker Change: Locally our free.
John: Question comes from the line John <unk> of Sidoti. Please go ahead.
John: Good morning, guys and thanks for taking the questions.
John: Good morning, just a couple here I guess.
John: The booking profile was surprisingly strong.
John: In the non transportation side of the business.
John: I'm curious about two things.
John: Your prepared remarks, it sounds like that trend continued.
John: Into April.
John: If that's the case.
John: Im just curious is there any pre buying of preordering.
John: Bringing the customer base I just wanted to maybe get ahead.
John: Tariff costs.
John: So John.
John: Improvement in bookings in the diversified medical industrial aerospace and defense that really was in the.
First quarter the comment on the second quarter was just the when we had the new product line in transportation. So to give you a little color around that I would say the medical area was the strongest.
John: We've seen quite a growth in medical therapeutics, the volume looks strong and that's why I also highlighted that the bookings there typically for a quarter out but they are for a larger.
John: Part of the year, so we're seeing a very solid increase in there.
John: On the defense side, we feel really good about the bookings, especially with sonar and other applications and the <unk> acquisition, obviously brings in some seasonality into the business, which is we're indicating in terms of improved sales in the second quarter and on the industrial side, we've seen a nice grads.
John: You will rebound and obviously, we're monitoring all of this with the tariff situation, but we haven't we haven't seen pre buy in that area.
Yes, John there may be some very small instances of their customers are accelerating purchases, but it's not broad based.
John: Okay. Okay. Thanks, Ashish Thank you Kieran.
John: Well, which I guess brings me to the transportation side of the business.
John: Has there been any change in your internal assumptions and the transportation market.
John: Today versus the beginning of the year.
John: John we continue to monitor.
John: We think there is some pre buy going on the transportation side of the market, but in relation to our guide we haven't factored in any demand drop that's why we said assuming current conditions and you'll see also that we have added a new product line going forward as well, but the vehicle Ed Footwall integration, which is nice for us to step into.
Noles Sullivan: Okay. So then regarding the guidance Kieran.
Speaker Change: What is the cadence of the profit profile looks like for the balance of the year. You just reported first quarter, which is which is actually down on a year over year basis.
Speaker Change: But your guidance suggests still an up year can you kind of walk us through how the quarters lay out.
Speaker Change: In order to that scenario.
Speaker Change: Yes, John not surprised by that question a few things I would point out number one obviously our revenue profile is increasing throughout the year.
Speaker Change: Hence we get a few we don't really don't add color on the next quarter. When we give some indications on that and then also thats helped by the sidequests seasonality that we talked about on the last earnings call. So that will get increased revenue in the second quarter and increased in the second half.
Speaker Change: The other thing I'd point out John is the mix change.
Speaker Change: With the mix change in the diversified markets inside quest, you'll see an improvement in profitability as well. So there is some of the things obviously, John the Big watch for US is really the second half of the year with the whole tariff environment. So we're still monitoring that and if something changes there that would cause us to adjust.
Speaker Change: Got it.
Speaker Change: That said, Jim and <unk>.
John: Bounce back into queue, and let somebody else get on thank you. Okay. So John.
John: As a reminder to ask a question. Please press star followed by one on your telephone keypad.
Speaker Change: Question from Hendi <unk> of Gabelli funds. Please go ahead.
Good morning, Kieran and Ashish good morning.
Speaker Change: <unk>.
Speaker Change: My first question on Cuban losses.
Speaker Change: Could you remind us how we should see or manufacturing footprints.
Speaker Change: And then sales.
Speaker Change:
Speaker Change: Shipman with regard to.
Speaker Change: The call Cts has positioned itself again.
Speaker Change: Potential tariff.
Speaker Change: Yes, Andy I'll start and then I'll hand over to Ashish. So first of all when you look at our regional footprint.
Speaker Change: If you look at Asia, China, most of what we do there is for those markets. There is some small amount of that come back to other markets. Europe is primarily for Europe and then when it comes to North America, Obviously, we've got manufacturing in Mexico. So that's the footprint and to put a tariff overlay on that because I know thats, where you are.
Speaker Change: Going with the question as well is we've got small amount of imports from Asia. Some impact in imports from China and then the larger watch for US is Mexico, because under the current conditions.
Speaker Change: U S. MCA exemption helps us if that changed at any point in time that would be a headwind for us and then maybe to give you. Some final color on it as well in terms of pricing in our diversified markets. We feel good about adapting the cost and the pricing with our customers and close collaboration.
Speaker Change: And then the second part of it is when you look at the transportation side, we're working on as well.
Speaker Change: So on the quarter, but they are always tougher discussion. So it's something we'll be working as well Ashish.
Speaker Change: So hendi just to add to that a couple of days that the tariffs were in place between Mexico and the U S. In early March we had a very small impact on tariff and that was sort of a test bed in terms of how we navigate through that with our customer base.
Speaker Change: Yes.
Speaker Change: Positive indications from those discussions, but the numbers are relatively small.
Speaker Change: As Karen mentioned, we are actively discussing with our customer base.
Speaker Change: Two.
Speaker Change: Make sure that everybody understands how we are looking at it and.
Speaker Change:
Speaker Change: So far so good but I'm sure that discussions will get tough as the numbers get bigger if they to get bigger and hendi just to add a little bit more color because I know this is on everybody's mind at the moment what are the mitigation levers. We have obviously pricing is one of the first things. We're also evaluating the logistics options.
Speaker Change: With our customers in terms of what we're doing we've got defense exemptions and.
Speaker Change: Once things stabilize here hopefully things stabilize over time here and then we'll see if we need to reevaluate anything but no quick decisions here.
Speaker Change: And then one.
Speaker Change: Political situation, if you need to change.
Speaker Change: Manufacturing location, let's see which one would need.
Speaker Change: Please qualification with customers across different end markets.
Speaker Change: I think hendi when you move any location youre going to get qualification with all of our customers that there's always some level of qualification obviously, it's different in the different end markets.
Speaker Change: If you look at our production of <unk> product portfolio.
Speaker Change: Largest portion of it is engineered solution. So whenever you have that situation any change in manufacturing location and the customers will be looking to requalify.
Speaker Change: Okay.
Speaker Change: Just to remind me when you ship.
Speaker Change: The transfer of ownership takes place.
Speaker Change: Before the shipman.
Speaker Change: That depends.
Speaker Change: In some cases, we have expert.
Speaker Change: Shipping terms in some cases it could be different so it depends on our specific customer by customer contract.
Speaker Change: So yes that will be different when you are looking at U S MCA relevant products.
Speaker Change: Are the importer of record in those situations and Thats the whole concept of U S. MCA.
Speaker Change: Okay.
Speaker Change: Yes.
Speaker Change: And then Kieran when you talk about.
Speaker Change: A solid pipeline.
Speaker Change: In defence side quests.
Speaker Change:
Speaker Change: How should we think about the timing.
Speaker Change: The ones in the pipeline is just for.
Speaker Change: On the second half of 2025 objected to identify somewhat split.
Speaker Change: Andy when we look at it.
Speaker Change: There is there is some in the pipeline that would.
Speaker Change: Impact this year and most of it is in subsequent years.
Speaker Change: So hendi, we are looking at the business from a long term perspective.
Speaker Change: And as Kevin mentioned, there are several things in the work.
Speaker Change: That will start in 2025 and continue that other programs that we expect to start materializing in late 'twenty five 'twenty six that'll give us revenue over the following years.
Speaker Change: Okay I see.
Kieran Osullivan: And then Kieran.
Kieran Osullivan: Ken.
Kieran Osullivan: Okay.
Kieran Osullivan:
Kieran Osullivan: Yes.
Kieran Osullivan: Hold on.
Speaker Change: What is the current situation in the commercial vehicles and then.
Speaker Change: I'm wondering whether there will be some newer first handle products.
Speaker Change: In that area.
Speaker Change: <unk>.
Speaker Change: Hopefully like health.
Speaker Change: During the market recovery.
Speaker Change: Yes, Andy.
Speaker Change: I think I mentioned in my prepared remarks that we will launch our next generation products pardon me this quarter.
Speaker Change: And we'll see that ramp and then over time given the competition in this space, we will see how the share split out.
Speaker Change: But definitely yes, launching and ramping the new product this year.
Speaker Change: Okay.
Speaker Change:
Speaker Change: Okay.
Speaker Change: Let me. Thank you so much kieran. Thank you so much ashish.
Andy: Thank you Andy.
Speaker Change: We have a follow up question from John <unk> of Sidoti. Please go ahead.
Speaker Change: Thanks again.
Speaker Change: Ashish.
Speaker Change: The SG&A number went up somewhat noticeably in the March quarter.
Speaker Change: What was driving that.
Speaker Change: So couple of things John if you look at year over year, we reset our incentive and equity based compensation plans. So that is a part of it but that's a smaller part of it it's more related to the quest acquisition.
Speaker Change: <unk> added the SG&A related to that.
Speaker Change: <unk>, the amortization of intangibles, and so thats, where youll see the biggest chunk.
Speaker Change: So this $23 million in change run rate is a sustainable number for the balance of the year.
Speaker Change: Yes, I mean.
Speaker Change: One of the things that we are doing as the tariff situation involves we're looking at all discretionary spending.
Speaker Change: Open positions those types of things so we'll continue to manage.
Speaker Change: Spending that is controllable.
Speaker Change: As prudently as we can we.
We do want to continue funding the growth activities that is extremely important and critical to us for the long term success of the business.
Speaker Change: But everything else is on the table for us to evaluate and allocate resources carefully.
Speaker Change: Well, that's just on the guidance side.
Kieran Osullivan: Kieran you talked about the margin gross margin profile, improving its got a improve our guests somewhat sizable for the balance of the year.
Kieran Osullivan: Against that higher SG&A level is that a fair assessment.
Kieran Osullivan: Yes.
Kieran Osullivan: Ramp during the year, John but that's a fair assessment.
Kieran Osullivan: Okay.
Kieran Osullivan: And is there any reason to expect normal seasonality would not play.
Kieran Osullivan: Play out in 2025 and by that I mean that the fourth quarter will be the weakest.
John: John Here I would just.
Speaker Change: Ask you to consider the seasonality with <unk> quest.
Karen: As Karen mentioned.
Karen: The early part of the year, it's a little bit softer and then the.
Karen: We expect based on government funding more strength in the second half of the year.
Karen: Okay.
Karen: Okay and.
Karen: Just any thoughts on you talked about funding our programs with the Capex budget looks like for 2025.
Speaker Change: Yes, so capex, Jon we expect it to be.
Speaker Change: Normal range, which we have said is approximately 4% of sales.
Speaker Change: Obviously some years, we have slightly higher some years, you'll see a slightly lower but that's a reasonable range for you to consider.
Speaker Change: Okay.
Speaker Change: I was actually used in most of the sites. This year, so thats a good adjustment.
Speaker Change: <unk>.
Speaker Change: Okay.
Speaker Change: Just on the tax rate just got.
Speaker Change: Got you some numbers on.
Speaker Change: Any change in tax rate thoughts for the year.
Speaker Change: Sitting here at 20%.
Speaker Change: Yes, that's about <unk>.
Speaker Change: Thats about and at the midpoint of what we have on the slide deck, Jon We have 19 from 'twenty, one so you're right in the middle of it.
John: Okay. Okay. That's all my follow ups I appreciate you taking them guys. Thank you. Thank you John Thank you.
Speaker Change: We have a follow up from Hendi <unk> of Gabelli funds. Please go ahead.
Hendi: Ashish I would like to revisit John's questions about the margin improvement.
ashish: Great Julie.
ashish: Throughout the year, what would be the main drivers of.
ashish: Improvement in operating profitability.
ashish: Is it mainly the strength of your medical aerospace and defense and in sequence that will drive.
ashish: Higher operating profitability.
ashish: That's a reasonable assumption hendi just overall, we expect continued improvement in the diversification ratio of the business.
ashish: So that's the key driver and then we always have the other pieces that we continue working on operational efficiency improvements.
ashish: And then currency can move positively or negatively impacting our gross margin favorably or unfavorably. So.
ashish: Those are the big factors, but the biggest one that we expect in terms of margin enhancement as the <unk>.
ashish: Growth in the diversified markets faster than the transportation market.
ashish: And then one last question for me would you be able to share.
ashish: How much sales go to.
ashish: Automotive in China.
Right.
ashish: Hendi I don't think we have.
ashish: Broken that out in a public document, but let me look at it and come back to you. If it's public information I can provide you more specifics later on today.
ashish: Okay.
ashish: Thank you.
Speaker Change: We currently have no further questions. So I'll hand back to Kieran O'sullivan for closing remarks.
Kieran O'sullivan: Thanks, Mary and thank you all for your time today.
Kieran O'sullivan: Despite the near term tariffs and economic pressures diversification remains a strategic priority for us.
Kieran O'sullivan: We are focused on further growing our revenues and quality of earnings.
Kieran O'sullivan: Organically and through strategic acquisitions.
Kieran O'sullivan: We look forward to updating you on our second quarter 2025 performance in July. Thank you. This concludes our call.
Kieran O'sullivan: Okay.
Kieran O'sullivan: This concludes today's call. Thank you all for joining you may now disconnect your lines.
Kieran O'sullivan: Yeah.
Kieran O'sullivan: [music].
Kieran O'sullivan: Yes.
Kieran O'sullivan: [music].
Kieran O'sullivan: Okay.