Morning. You know, let me just go up. Kicking off the 3rd day of the BofA Industrials Transportation Airline Ski Leaders Conference. I'm Andrew Obin, BofA's U.S. multi-industrial analyst. With me here is Atmus Filtration CFO, Jack Kienzler. Jack, thank you for being here. Just a few stats on Atmus. Since the spin from Cummins in 2023, 42% annualized return, now $5 billion market cap, and a relatively new member of the S&P 600 index. Thanks so much for being here.
Thank you, Andrew. Good morning, and thank you for having us, and thank you everybody for your interest.
Maybe we can start with aftermarket. Aftermarket drives 84% of Atmus's revenue. In the past, you've cited the Cass Shipments Index. That improved to down 6% year-over-year in 1Q versus down 8% in 4Q 2025. Improving, but still negative. How have on-highway volumes trended in January, February, March, and April?
Yeah, it's a great question, you know, what index you look at is something that we've continued to try to triangulate on, I would say. The Cass rate index certainly is directional, but also misses some of the private fleet activity, which obviously has grown a fair bit in recent times. If I think about how the first quarter went to start, I would call the market trends from a volume perspective as, you know, flattish. That is reflective of our full year guide as well from a market standpoint in the aftermarket. Certainly are hopeful for a positive inflection, but haven't really seen the indicators of that just yet.
You know, we look at a large number of things, certainly the Cass rate index, but also GDP trends, spot rates, et cetera. Some of which can, you know, show signs of some recovery, but not necessarily volume recovery, which is really what pulses our business. Keeping a keen eye on that, but haven't yet seen the positive signs of inflection. That implies our full, you know, year 2026 guide for flat.
Of course. Any squanch lift in April, May, the way you look at it?
No, not just yet.
Okay.
Kind of same trend as what we saw in the first quarter.
Maybe we can talk about aftermarket trends across on-highway mining, construction, and ag. Maybe just sort of dig in on each vertical a little bit more.
Yeah, absolutely. If I go around the world, perhaps, maybe I'll start first with on-highway, focusing in on the aftermarket. You know, the broad headline theme is that it's fairly similar to what I just described, relatively tepid markets. There are some puts and takes around the world, but most, you know, I would say even out for a relatively flattish market dynamic here in 2026. We have had some from an off-highway perspective, pockets of growth. Certainly, the Indian market continues to be a relatively high growth market relative to many other regions of the world. We've had a few, you know, spots of positive sentiment from an aftermarket standpoint. Latin America, for example, with some of the off-highway markets.
Broadly speaking, when you wash it all out, you know, flattish from a market perspective.
Yep. ag is still dead?
Ag is, yeah, ag I would say is still pretty down, really whichever region you go to.
Gotcha. You've had a 10% CAGR for Lat Am over the past 4 years. What have you been doing differently in the region?
Yeah, I think Latin America is a great, you know, example of our aftermarket strategy in action. If you think about our growth pillars, the second is to accelerate profitable growth in the aftermarket. If you think about the Latin American region historically, we largely went to market through the Cummins distribution channel.
Yep.
You know, specific to Brazil, but also many of the other regions in Latin America. What we've been trying to do is, of course, still cater to that market, as it's still a very important customer for us. In the aftermarket, what we want to do is be on the shelf whenever a service event is occurring or wherever the parts, you know, for that service event are being procured. What we've tried to focus on is the rest of the market, independent distributors, for example, and increasing our focus there. That can come via investment in sales resources to get out, you know, in front of those customers.
It can also come from, you know, lifting our delivery capabilities and making sure that, you know, as and when they do show an interest in placing an order, we're there to meet it and satisfy their needs. To give you an example, I was down there last year and went and met with a few independent distributors. They had a Fleetguard relationship. That's our, you know, our product brand obviously in the commercial vehicle market. They hadn't really focused on it, mainly because we hadn't really focused on cultivating that relationship. We didn't have, you know, any real commercial schemes going on with them, discounts, rebates, things of that nature, and weren't calling on them extensively.
Just focusing on that relationship has allowed us to lift our presence in their portfolio.
Yep.
Typically in these independent distributors, you see them stock multiple different brands.
Right.
Our goal is to increase our penetration or share of wallet with.
Yep
with these different independent distributors, and we've seen that be highly successful, particularly in Latin America.
That's great. Thank you. Any one country that stands out?
Brazil is where our biggest presence is. That's the biggest market, certainly. Via Brazil, we're also able to get to, you know, some of the other large off-highway markets.
Yeah
things like Chile. You know, from a mining perspective, et cetera.
Yeah, makes perfect sense. We're now going to be done. Yeah, there was like 34 hours left. I was like, "I don't think we're going to talk for 34 hours." You know, your on-shelf availability is now at all-time highs. What's the next lever to capture market share?
So that was definitely the first and one of our primary areas of focus, not only in our, you know, to bolster our growth in first fit and aftermarket, but also as we were addressing our, you know, supply chain transformation 1.0, as we referred to it. Pleased with the progress there. You know, it's not easy to lift your delivery statistics all while separating distribution centers at the same time and managing inventory to, you know, appropriate levels. I think the team did a fantastic job navigating through that dynamic. Now we feel, you know, really good about where our delivery levels are, certainly in the first fit, but also in the aftermarket. Now from there, how do we couple that capability with, you know, expanding our relationships?
I just mentioned, you know, the examples in Latin America, where we're looking to cultivate new independent distributor relationships, and I think that same playbook, can be applied elsewhere. You know, our presence is in the aftermarket. We have a very significant presence with the OE dealer network.
Yeah.
That's a big strength of our business and one that we wanna continue to focus on. How do we, you know, supplement that to ensure that we're meeting the needs across the useful life of a vehicle, and again, increase, you know, the Fleetguard presence in the aftermarket? That's really where we're focused, and I think the sales team, coupled with the supply chain team equipping the sales team, is the unlock to making that happen.
Excellent. Maybe, sort of talking about first fit, there is an upcoming change in EPA regulations that will make the 2027 truck models more expensive. If that's gonna happen, there's going to be a pre-buy of the cheaper models here in 2026. How meaningful are new U.S. Class 8 truck sales for Atmus, right? Because I think the revenue mix is 14% first fit, of which 58% are on highway and 54% U.S., and if you just sort of multiply these percentages, you sort of get to mid-single digits. Like, should we get excited about this? A, what's happening? B, should we get excited?
Yeah. Let me maybe talk about the market dynamics first and then how it pulls through to our business. As you noted, yes, the expectation is for a 2027 emissions regulation to kick in. Everything that we understand through conversations with our important customers in that space is that the expectation is that that will come in. I know there's been some, you know, discussion of specific engine programs that may get pushed out.
Right
from Cummins specifically. Overall, that is our expectation. It is a bit odd to be at this point in, you know, 2026 and not have definitive insight into.
Yeah
into that, but that is our expectation, is that the NOx regulations will come into play. That will lead to an increase in the, in the truck price, albeit perhaps not as substantial as once thought, you know, particularly around some of the warranty dynamics.
Yeah.
We are expecting and our guidance implies a strong second half recovery in our first fit markets. I would say that we have both positive sentiment reinforcing that from our OE customers.
Yeah
Cummins, PACCAR, et cetera. We also see the, you know, the order activity coming through to back that up. We feel very good about, you know, that market trend. You know, how much of that will be pre-buy versus buy?
Right
What is the ancillary impact in 2027, I think that can be a little bit hard to measure. I do think that perhaps certainly relative to expectations 12, 18 months ago, the pre-buy will be less significant.
Right
which actually should be a good thing from a 2027 perspective.
Right
and sort of smooth that out, if you will. What does it mean for us? You know, your percentages are generally right. The business is about, you know, give or take on every given year, 15% first fit, 85% aftermarket, overall 60% on highway-
Yeah
40% off highway. I would say our first fit is a bit more skewed towards the on highway, so it'd be a little bit more than that. Revenue-wise, you know, certainly being an aftermarket-centric business, when the aftermarket is pulsing up on a market trend.
Yeah
that's quite a bit more favorable. After the first fit, certainly we'll see a pickup in revenue. We'll also see some benefits from a volume perspective in our manufacturing plants.
Yeah.
You know, while the product may seem on the outside the same, it's actually a fair bit different, where in the first fit you've got housings, et cetera, the interface with the engine being, you know, manufactured. That tends to drive more standard hours in our manufacturing plants and can, you know, help improve our, you know, cost of sales per unit, if you will, as we move through the year. We're excited about that trend. Certainly have been in a bit of a trough, I would say, in Q1 and starting to pull out of that. We'll have a top-line benefit, but we'll also have a bit of a margin benefit as we think about just hours in the plant and getting the volume going.
You have visibility because you know what production slots are with OEMs, right?
Yeah. Then, you know, obviously there's a lead time sort of between them procuring the filter for that first fit product, ahead of an engine, manufacturing and then through to the truck side.
How do you have an internal model for figuring out Class 8 demand? Do you rely, you know, do you rely on ACT? How does it work? Do you just rely on?
Yeah.
the OEM's models?
I would say the best source, for us is the OE, you know, discussions.
Okay
their order activity via, you know, EDI through to us, as well as just the ongoing discussions that we have with them. Certainly we look at ACT data, which is sort of a combination of all of that sentiment, but the direct conversations with these key customers.
What would you say the industry best guess for just directionally for Class 8 production next year? Up, down?
2027.
Yeah, up, down, flat.
27 versus 26, I think, you know, certainly you should see some favorability. It's a little hard to tell.
Right.
you know, exactly how much that would be. Q1 should be an easy comp, but then you've got the-
Right
perhaps slowness out of the gate. I think it somewhat depends on clarity on this, emissions regulation.
Right
We'll be watching that with a close eye.
The economy, of course.
Yes, of course.
Thank you. Maybe, you know, sort of other first-fit markets, maybe we can start with off-highway.
I think somewhat similar dynamics to what you see in the aftermarket, which is relatively tepid outside of.
Yeah
North American, on-highway.
Yeah
here. you know, if you think about Maybe I'll start just with a bit of, you know, the markets that we're exposed to.
Yeah.
From a first-fit perspective, in an aftermarket, in that off-highway slice of 40%, the majority of that would be construction and mining.
Yeah
driven by aftermarket activity and duty cycle, followed by markets like ag, power generation.
Right
et cetera. I would say that again, similarly to the aftermarket, we see some pockets of growth and some back-weighted optimism for the end of 2026. All of that is somewhat dependent on what happens with the geopolitical dynamics.
Yeah
The relative macroeconomic impact that falls out of that. Outside of North America on-highway, I would say we don't have, you know, a robust first-fit outlook for 2026 embedded in our guide.
Right. Can you talk about maybe a little bit, you know, what are you seeing in power gen? Because, you know, it's a sort of interesting dynamic, and it's just completely changing now.
Yeah, absolutely. We are a supplier into the power generation market. Obviously Cummins is a very large player in that market.
Yeah
We supply them, filters for all of those.
Yeah
gensets, et cetera. A lot of those, including what's going into the data centers, are, backup power.
Yeah
in nature, and so inherently don't drive a lot of aftermarket activity.
Yeah
which is why the impact to our top line is relatively muted.
Of course, we're excited to continue to partner with them and others in the space. It just, you know, doesn't drive as much unless it moved into like a prime power type application, which we haven't seen just yet.
Right, right. Okay. Just if Cummins converts it into recip engine, it still has a filter, right?
Yeah.
Yeah.
So, um, you know, some of the-
Because you're seeing a lot I go to shows and you see these, you know, 17-liter engines converted in like half megawatt.
Yeah
power and actually I think they are gonna go become prime power units.
Yeah. Yeah, it's definitely a trend that we're watching. I think it, you know, remains to be seen how much of a piece of the market that takes.
Right.
Is it supplemental, until we get, you know, more stability.
Right.
more megawatt capacity, et cetera. Ultimately, what is the fuel source that pulses those? Is it, you know, is it diesel?
Right
natural gas? Is it, some other form of power? Yes, again, we look forward to partnering with all of our customers in the space.
Just too early to tell.
Yeah, a little bit too early to tell.
Okay. You know, Atmus has been clear from the spin, first-fit sale is a lower margin. If you had lower aftermarket and higher first-fit, that's bad for margin, that's not what you're guiding for 26. It's flat aftermarket sales and high first-fit. It's the exact same filter produced in the exact same factory, high volumes drive fixed cost absorption. Is the incremental margin on first-fit better than the average margin on aftermarket sales?
Uh-
Incremental first-fit versus average
Yeah. A lot to unpack there. I would say you're correct in that generally speaking, aftermarket is higher margin.
Right
than the first-fit. really what I would say is, the benefit from a margin perspective as we move into the second half of the year is the activity in the plants.
Yeah
That fixed cost absorption that you're describing there. You know, I wouldn't say necessarily that incremental margins are better on first-fit than aftermarket. I think, you know, if you zoom out and look at the overall guide, I think it's reflective of, you know, continuing to try to address the cost base.
Yeah
improve, efficiencies, you know, and lever, you know, price through to the bottom line.
to lift the overall margin profile of the business. If you look, you know, over the past few years since we've been out, you know, post-IPO, we've seen very significant margin expansion, all in a challenging market dynamic, you know, across our markets. I think that's reflective of the focus that we've brought to the table, across all the different levers that we can exploit on margin. What we're trying to do now is think about how do we lift really that top line revenue algorithm. We wanna, of course, continue to deliver strong income incrementals. You know, does that kind of shift to a slower margin expansion and a higher top line growth?
Right.
We need the markets to recover to help us pulse that.
Right, right.
That revenue engine. That's, you know, some of the debate that we're having.
Excellent. Maybe a little bit about first quarter. You know, just 2 quick questions on first quarter. Could you explain the $3 million EBITDA hit from the change in Indian labor laws in the quarter? Is it 1 time? Does it mean higher cost going forward?
Yeah. certainly a bit of a nuance there. I would have you think about it as a change in essentially the Social Security retirement benefits that the-
Yeah
The Indian government implemented. All companies, not just unique to us, had to true up to reflect what that would've been had it been in place over a past, you know, few years. There's an element of it that is effectively one-time catch-up.
Right.
Reflected ongoing, there will be a higher accrual that the employer books.
Okay
in this case, our joint venture, to reflect that compensation scheme. We, along with everybody else, booked that accrual. It hasn't been put in place just yet.
Yeah.
We're watching that. That is, you know, what that is. As you can imagine, the large majority of that $3 million then is that catch-up.
Gotcha.
Then reflected in our ongoing outlook will be, you know, the run rate expense, if you will.
Gotcha. Yes, higher cost going forward, but a relatively small number.
Correct.
Yeah. Thank you. Second, your commentary about pricing. Atmus normally adjusts prices in January and July. You're sticking to that timing, but haven't decided on the magnitude. Would you rather err on the side of raising price too much or too little?
Yeah, I guess just to, so everybody's aware, generally speaking, we have, you know, push price in the aftermarket, which is where the majority of our price occurs at the beginning and at the middle of the year. We'll continue to evaluate our input cost environment and continue to take action accordingly to protect, you know, our financials and, you know, continue to offset that input cost. I think, you know, the other balance that you're highlighting is just the balance between price and share. I would say that we certainly err towards share as the number 1 priority to continue to, you know, grow our installed base, partner with our customers, and grow, you know, overall.
Would not, you know, push price at the, at the expense of share, but there's always a careful consideration between the two.
Right.
We wanna work with our customers to, you know, reflect the ongoing cost increases.
The idea is just to capture price cost at least.
Yeah. Our, certainly our goal is to be, you know, price cost neutral to positive.
Yeah
not price cost negative. I do think, you know, the tariffs were a bit of a unique cost input that led to a more agile pricing environment via, you know, 30-day-ish.
Yeah
price throughs. I think, you know, the ongoing input cost environment that we're facing here, as a result of rising oil prices, et cetera.
Right
the pricing actions, from that would likely look a bit more like a normal situation.
Yeah. Yeah
versus the tariff situation.
Thank you. Maybe just shifting to manufacturing, Atmus reduced recordable injuries by 35% last year for a recordable incident rate of 0.67 per 100 employees. That's over 20% lower than Donaldson. How are you instilling a safety-first culture on the factory floor?
Yeah, it's a great question, and I appreciate you.
The reason, because it also obviously ties in into lean and everything, I think.
Yeah, it's a great question. I appreciate you raising it. It's, you know, we look at safety as our number one priority. It's not an initiative. It's, you know, really embedded in our values and our culture. It's been, you know, the biggest area, I would say, of focus for us, and will continue to be. We want to ensure that our workplace is as safe as possible, and that we would all, you know, feel comfortable with our own family members, our children coming to work in an Atmus location.
Yeah.
How have we done it? I would say it's really about addressing the culture from the top down, and using a wide array of tools and investing in tools to bring it to reality. You know, we as the leadership team, you know, put a big focus on this. Anytime we go to one of our sites, we do a safety summit, as we call it, where we engage with the workforce, get direct feedback on things that are on their mind.
Right.
visit, you know, areas of past safety instances.
Right
to make sure that we're learning from those, implementing change, installing machine guarding, so on and so forth. You know, making sure that, again, it's instilled in everyone's work plan, not just those in a manufacturing environment, but everyone across the Atmus, you know, organization. Safety's never something that you can say is, you know, is done, it'll continue to be a big focus for us. You know, again, it's safety of our people is our number one priority.
When I got my lean certificate at University of Tennessee, you know, it's like they hammer in you that you start with safety because you can't have flow, like through the line, without safety. I think that's why we like to focus on it. It's just a great indicator where the manufacturing culture is going. Thank you.
Absolutely.
Last year, revenue per employee was $490,000 at Atmus versus $246,000 for Donaldson. Can you help us explain, like, how do you drive 2 times the productivity versus a close peer?
It's, honestly, that's not a metric that we, you know, look at.
Right
in a meaningful way. I do think, you know, it's worth just revisiting our overall growth strategy.
Yeah
which has been a big focus for us, obviously, as we've been an independent company, post, you know, split off from Cummins. You know, it all starts with the first bit, trying to grow our installed base. This is a multi-pronged strategy. You wanna focus first and foremost on our existing customers, winning with the winners, as we call it. How do we continue to delight and expand our share of wallet and our presence with, you know, our important customers, the likes of PACCAR, Cummins, Volvo, et cetera. You know, as they win in the market, we wanna, you know, help enable them to win. That's the first piece.
Secondly is now how do we go after additional first-fit customers that, you know, perhaps we weren't able to focus on historically that could have been driven by competitive dynamics with our former parent, Cummins?
Yeah
some of these, smaller OE opportunities that, you know, we have the product line to address via our engine displacement range that we can service, but, you know, just hadn't focused on in terms of engineering focus, sales resource, et cetera, historically. First fit in our view is really important to kind of pulse the flywheel, grow the installed base, and grow the addressable market in the aftermarket. The second is, as I mentioned earlier, you know, accelerating profitable growth in the aftermarket. This is, you know, not only lifting delivery capabilities, expanding independent distributors, increasing the use of different tools, digital tools, et cetera, that the sales force can use to help identify, you know, opportunities when they go into one of our dealers, highlight cross-sell opportunities, highlight new products that can, again, help our customers succeed.
The third is, you know, the supply chain transformation, so delivery is a component of that. Automation is a component of that. Just I would say really sound procurement practices to, you know, get more suppliers under contract, utilize those contractual mechanisms to, you know, continue to expand margins, et cetera. Then the fourth, of course, is the expansion into industrial markets.
This has been a big, you know, accomplishment of the business with the closure of the Cook Filter acquisition here in January. We're really pleased with how that's going so far and the potential that that has to, again, just accelerate our growth engine moving forward. I think that's just a combination of the factors. We don't really look at it on a headcount basis.
Right
More of a cohesive strategy that we wanna continue to do.
Maybe another way of asking the question. How much opportunity is there to just standardize best practices across your factories? Like, what's the gross margin difference between, say, the best and the worst plants?
Yeah, it's a little bit of a tough comparison because the makeup in the different plants has a different.
Yeah
dynamic, right? What's produced, you know, in our manufacturing location in China, both in terms of first fit versus aftermarket, the products they're
Yeah
et cetera, isn't quite the same as if you went to Neillsville, Wisconsin, Cookeville, Tennessee, San Luis Potosi, Mexico. Overall, I would say that our big focus as we now move to the next stage of supply chain transformation is to certainly continue some of the same, so some of those procurement dynamics we wanna continue to address, but also looking at efficiency gains from a conversion cost perspective. You know, how do we get more efficient in terms of labor optimization? How do we address overhead costs and try to make step changes in terms of fixed cost reductions? All of that's a big focus for the organization moving forward. You may have seen we just announced the hire of our new supply chain leader
Kevin Carpenter, really excited about what he can, you know, bring to the organization and supplement the great team that we already have in place. We've been on, as I mentioned, a remarkable margin expansion journey, frankly, and supply chain transformation has been a big part of that. Now, you know, really focusing on what the next chapter of that will look like.
Maybe just finishing up, 2 years ago, you put your first fully automated line in your factory in France. How has the project return been, and have you expanded this to other factories?
Yeah. First of all, it's we call it a green cartridge line. What that means is effectively partnering with our European OEMs, given it's in France, to meet their needs in terms of, you know, increasing the recyclability of the reusable part, the disposable part of a filtration spec, right? How do we reduce the amount that needs to be changed, if you will, in terms of the element, within the filter housing.
Yeah
make sure that that is, you know, recyclable.
Right
if you will. You know, that kind of depends on which market you're looking at in terms of.
Yeah
customer demand.
Of course.
We have looked to expand that capability into some other markets, including Brazil, which, you know, tends to follow certainly in terms of OE market share.
Yeah
the European market. You know, obviously looking at, you know, the labor cost.
Yeah
you know, the notion of a fully automated line has different return metrics, depending on where you are in the world. We're really pleased with how that went. It was the first of its kind for us and so, really, you know, synonymous with our ambitions to be an ongoing learning organization. How do we learn from that deployment? Certainly, there were some things that didn't go as planned. You know, again, we were able to address those, relatively quickly and get it on track. We're pleased with where it is. We'll continue to evaluate, you know, the deployment of similar.
Yeah
technologies moving forward.
Maybe to talk about Cook Filter, let's sort of talk about your first industrial filtration acquisition. For background, $450 million purchase price, 14x adjusted EBITDA, margins that are modestly above corporate average. Your 2026 revenue guidance for this business is 1%-8% year-over-year, midpoint 4%. Data centers are 8% of revenue and power gen is 8% of revenue, and those are pretty fast-growing market. Can you just walk us through?
Yeah, absolutely. First of all, we're really excited about the acquisition.
Yeah.
Again, I think it, you know, really met all of our strategic objectives and our financial objectives. Maybe most importantly, the culture of the two-
Yeah
organizations is quite harmonious, and really that just opens the door up for a seamless integration. You know, we're more than halfway through that as well as, you know, hopefully in the future, you know, ongoing synergy realization and, you know, the identification of opportunities.
Yeah
beyond what we quantified, at the outset of the deal. In terms of the revenue end market makeup, they serve a broad array of end markets, so commercial HVAC, industrial HVAC, data centers, power generation, healthcare.
Yeah
as you note. The majority of the business, about 60% would be that industrial commercial HVAC.
Yeah.
That tends to grow at kind of GDP type levels. Then as you noted, some faster growth markets, data centers certainly, healthcare, and power generation are roughly 7%, 8% each.
Yeah.
What we're really trying to do is, you know, continue to grow in those core markets. A lot of times as you're expanding in those markets, and establishing new distributor relationships, you need to have that level of product to-
Yeah
to have an in, if you will. That allows you to leverage those relationships to sell through those higher efficiency filtration products that service those fast-growing markets. Over time, you know, how do we shift the revenue profile and grow the exposure into those end markets? That'll obviously allow us to lift the overall revenue algorithm of the industrial solutions segment and ultimately Atmus.
Gotcha. Just from a top-down perspective, 4% seems fairly achievable.
Yeah, we feel good about the guide. I think at the midpoint, right, 4%, which is an overall revenue, you know, outlook.
You get $4 million synergy target by year-end 2028, but you know, these guys buy media from someone else today. Atmus, of course, one of the largest filtration media manufacturers in the world. How meaningful is the cost savings from insourcing filtration media?
Yeah. It's one of the many areas that we're looking at from a synergy realization standpoint. Our filtration capabilities, I would say, are most applicable to some of their higher efficiency filtration needs, less so on, you know, the pleated panel filters.
Yeah
at the lower end. Overall, as you noted, you know, $4 million of synergy targets, we remain committed to that from a run rate perspective and are of course looking to identify other opportunities to complement that. I think from a media perspective, the teams are meeting on a regular basis and beginning to identify those opportunities where we can bring our media knowhow and our products specifically in, and that'll contribute to that $4 million savings.
Maybe last question. You will be off all the transition service agreements by the end of the third quarter. Starting in the fourth quarter, could we see a step up in Cook Filter margins like 100 basis points?
The financial profile that we've highlighted for you all, including our first quarter results, include TSA charges.
Yeah
which are, frankly, you know, representative of what we think those standalone charges are. I don't think about the reduction of the TSA as necessarily upside moving forward. It's more indicative of the financial profile that we'll have as we go forward. You know, margin expansion, of course, will be a goal and a priority for us, but that'll come through, you know, the synergy realization and other things like that.
Excellent. This is great, Jack. Thanks so much.
Thanks, Andrew. Appreciate it, and thank you, everybody, for your interest.
Yeah.
Have a wonderful day.