PH Q1 FY2027 earnings call transcript, November 5, 2026

continued patience. Your meeting will begin shortly. If you need assistance at any time, please press star zero. And a member of our team will be happy to help you.

Good morning, everyone. Welcome to Parker Hannafin Corporation's Fiscal 2027 First Quarter Earnings Conference Call.

At this time, all participants are in a listen-only mode. After the prepared remarks, there will be a question and answer session. To ask a question during this period, you will need to press star 1 on your telephone keypad. If you would like to... To remove yourself from the queue, please press star 2. Please be advised that today's conference is being recorded. And lastly, if you should need operating... ...your assistance today, please press star 0. I would now like to turn the call over to our host, Mr. Todd Liam Bruno. Chief Financial Officer. Please go ahead, sir.

Thank you so much, Bo.

Good morning, everyone, and welcome to... ...partner's fiscal year 2027, first quarter earnings release webcast. This is Todd Lee and Bruno, Chief Financial Officer. As usual, with me today is Jenny Parmentier, our Chairman and Chief Executive Officer. As always, we appreciate your interest in Parker and we thank you all for joining us today.

Thank you, Todd.

Thanks, Jenny.

I'm on slide 16. And as Jenny said... We are raising our full year guidance. That's obviously based off the strong performance we had in Q1.

Including the administration group in our numbers. What else? We're increasing the range of growth to 16 to 19 percent. Or roughly 17.5 percent at the midpoint. Specifically for the filtration group, we are including one five billion bills to the guide for FY27. That's obviously a stub year. That's roughly ten and a half months of ownership. If you take that 1.85 plus the little bit that's left over from Curtis, acquisitions will account for roughly nine percent of the sales change. Currency is really a just a slight drag at 0.5 and that is based on

increasing organic growth to a range of seven-and-a-half to ten-and-a-half percent. At the midpoint, aerospace, organic growth, we are increasing that 150 basis points to note. 10% at the midpoint. The industrial North American businesses are getting... The growth is being raised by also 150 basis points to 8% at the midpoint. And the industrial international businesses are being raised by 4% to 9.5%.

For the full year, just segment margins are expected to increase by 20 basis points. That would go to 27.9% for the year, and that includes races. In all three reported businesses, that would be a 60 basis points increase. Prior year, all in, and that would include

a few items to note, corporate GNA is just up slightly, other expenses.

This is all really related to the filtration group debt. We now expect. Six hundred and ninety million of interest for the year. Previously, that was three.

And really no change to tax rate twenty two and a half. The EPS has been raised. Uh, which I will break down a little bit further in the next slide. Uh, the range. The range on that is plus or minus 40 cents, and the split is, uh, as usual, 48 percent.

And as I mentioned before, we are also raising our free cash flow guidance to a range of 3.5 billion to 4 billion. That is 3.75 billion at the midpoint. Actually, 100. If we look specific, it could be nearly 50. 6.2 billion, and it's a 19.5 percent increase versus prior. Organic growth, we expect to be about 10 percent for Q2. For adjusted segment operating margins, we are forecasting 27 points. That is all in. And adjusted EPS is now expected.

Slide 17, we provided this just to kind of show the increase. Just with a couple moving pieces with filtration group coming in. You can see our previous guidance

we are increasing that to 36.85 for the year. We are increasing that to 36.85 for the year. I just want to point out that $1.70 of that increase is coming from increased segment operating income dollars. Based on higher organic growth and grading, start the year. For filtration group, in FY27, we expect this at EPS. It's an accretive of 50 cents.

Ownership, there was really no impact in Q1. The second operating margin was offset by the interest. Expense, but for the next three quarters, we're expecting $0.50 of accretion. That includes $40 million of synergies.

Ten cents higher, and that brings the total raise for the year to $2.10.

As usual, we've got additional guidance details in the... ...appendix. Just in summary, we're excited to... ...welcome the filtration group team members to Parker-Hannison, and with that...

Thanks, Todd.

I'm on slide 19. Today we are excited to announce our 2027 Investor Meeting on May 13, 2020. Similar to our last Investor Meeting three years ago, this meeting will be in person and webcast from New York City. Please save the date. And we look forward to sharing more details as we get closer to the event. And moving to our final slide. A reminder of what drives Parker. Safety, engagement, and ownership are the foundation of our culture. It is our team members living up to our purpose every day that drives top portile performance and allows us to be great generators and deployments.

Certainly.

Thank you, Mr.

Liam Bruno. Ladies and gentlemen, at this time, if you do have any questions, please press star one. Again, if you do find your question. Has been addressed. You may remove yourself from the queue by pressing star two. Additionally, to get to as many questions. As time permits, we do ask that you please lend yourself to one question and one follow-up. We'll go first. Good morning to Andrew Obin of Bank of America. Yes, good morning, guys. Just a question, Jenny. Congratulations. You know, we've been in meetings for, I think, what seems like eternity, where they was hoping for the industrial recovery that sort of never seemed to come. It does seem finally seems to be here. What has changed that you know we've now seen to have like two quarters? of recovery and how much visibility and comfort do you have going forward and obviously you've raised the guide but maybe expand a little bit.

Thank you and thank you.

I feel like I've been saying positive sentiment. And a gradual recovery for quite some time and obviously in Q1 what we saw was... a broad name recovery across all the markets. It's been robust. Electronics and semiconductors growth, double-digit growth, we've been able to raise in-plant transportation, market verticals. Obviously, it's just really been great. In all aspects, markets that we raise.

It's turned into some momentum here and shift. And that's an increased. I would tell you that there's nothing that we see right now that would. You know, cause us to be concerned about the outlook. Obviously, we've raised the guide here. We feel confident in this guide. And. You know, we're real pleased with the orders and how the team executed throughout the quarter. We've been talking about all the. Work we do no matter what's going on and the volume really turned into some nice. Yeah great to hear and maybe a follow up you highlighted that. In aerospace commercial aftermarket was a positive surprise. I know a lot of concerns about that starting in the summer. Maybe, you know, clearly you talk to your customers. What's driving the upside there? Thank you. Yeah, I mean, we saw double-digit growth. We saw, you know, plus 14%.

It was really the second.

We do expect this strong demand to continue. So we're not seeing a lot of retiring aircraft, right? Aftermarket continues to be strong.

Thank you very much.

We'll go next now to Mick Dobre with Baird.

Yeah, thank you.

Good morning, everyone. Appreciate all the commentary. On growth and orders, things seem to be going well, but, you know, just sort of acknowledging what's going on. In the capital market here, especially post-election, there's obviously concerns about the AI. Infrastructure build out, and I'm not really asking you to forecast how that's going to go, because who knows, but really, can you help us understand that? Understand what your exposure is as you're kind of looking into your business, because you obviously have some direct exposure. But there's also probably some indirect exposure. So if you sort of think about this vertical and the risk that that poses. It would be great to hear your thoughts and specifically in your Asia business where we've seen really very. Very, very strong growth. How much of that do you think is related to this particular growth?

So data centers does continue to be a high growth driver for us with double-digit growth in a quarter. We're continuing to get business in this space, and orders and backlog are strong. We have nice exposure and growth, but this is... It's not yet large enough for its own vertical. We finished the fiscal year with data centers making up approximately... ...one and a half percent. This is a great interconnected technology story, you know, from all the products that are... ...in the PARCC report, working with industry leaders, we have the ability to provide the liquid... ...cooling systems and subsystem components, and the Asia-Pacific orders are strong in electronics and Semicon. ...just a really strong area for the quarter. As I mentioned, we feel good about the order. And, you know, we think this is going to continue to be a growth area, but again... That's quite a market vertical for us. That's helpful. And then my follow-up, just to maybe... I'll click on your comments on commercial aftermarket. If you want to kind of think about it by region and think about the Middle East... Specifically, I'm wondering two things, how that specific region has... has progressed or gone, and, you know, is there potential for some sort of a... catch-off if maybe conditions in the Middle East change sometime in 2027. You know, I think commercial aftermarket has been strong and it continues. So I wouldn't know any dip related to anything that we saw with this.

That conflict.

For fiscal year 27. So, you know, strong orders in Q1. You know, as I mentioned before, we're just not seeing a lot of the aircraft retiring. It's driving the growth, but I wouldn't say that it went down enough to say it was a reaction. There wasn't anything going on, and obviously, if orders in Q1 were strong. All right. I'll leave it there. Thank you.

Thanks, Vic.

We'll go next now to David Ross. So with Evercore ISI. Hi. Thank you. I was curious if we can dive into the international. Guy, the 400 bps increase. Which geographies drove that? And obviously if you can help. It's a bit how you think about the geography guide within the total international agenda. And also the margins are obviously very high in the first quarter. Raise the margin guide. They're still lower than the first quarter. Just curious how you're thinking about that. Why the first quarter would be that much higher? Higher than the full year guide. Thank you. All right. Well, I'll dive into what's going on with the international guide. So full year organic growth is now nine and a half percent. As Todd said, that's a large increase to the initial guide. The new guide is approximately 11 percent.

No single digits. to mid-digit growth for the year. That's really mixed market conditions, David. Strong growth in energy. Mining and defense, and what we see as a gradual recovery in heavy-duty truck and construction. In Asia Pacific, this has been very... We're raising guidance to mid-teens organic growth. This was previously high single digits, and we're really seeing continued... ...electronics and Semicon demand. Implant orders and shipments progressed. You know, in NQ1, we saw... ...double-digit distribution growth. And we're seeing the orders and the shipments... ...continue to progress. And then mining and energy strength. ...continues in Asia-Pacific. Latin America, guidance is at low single-digit organic growth, and we're still seeing a broad... ...based softness.

A little bit, you know, Q1 was...

The margins, really, for all businesses, North America, international, and aerospace, for the remainder of the year. We did have filtration in Q1. It's going to have it for three quarters in Q2. Those jumping off margins are lower than our existing businesses. So there's a little bit of a drag there until those synergies really start rolling in there. Outside of all of that, you know, we are high.

In the guy here. So, you know, we feel like we're being pretty aggressive here on the forward. And a quick follow-up to the meeting. I know it's many months out, but can you give us a little framework of what prompted calling meeting and how we should think about obviously things are operating pretty well right now. Just curious. The reason behind the meeting, we're always happy to meet with you, but just curious what we should expect broadly speaking and why we called.

The Pats have done a meeting every two years. This will be three years. And we expect that we're going to be able to share some information with you. But it is a ways out yet, so we're really not in a position today to talk too much about the details of that meeting. All right. Thanks. Thank you. We'll go next now to Jamie Cook with Truist Securities.

Good morning and congratulations on another nice quarter. I guess just two questions. One, just given filtration group is closed in the end. I don't understand what the implied guide is for 2027, but can you just give us an update on how that business had been performing in terms of organic growth, margins, and then I guess any incremental insights you have on potential upside to synergies. And then my second question, Jenny, just relates to, you know, obviously industrial demand. It's very strong. Everyone's very, we're seeing that in your numbers. I think people are questioning sort of to the durability of the cycle. So in. In an environment where, you know, potentially industrial demand tempers, how do you think about your ability to in a in a lesser. The bus market achieves a four to six percent, you know, organic growth that you target just given some of the change. In your portfolio with M&A, you know, and their portfolio more positioned towards second. Just your confidence in the four to six, assuming Tuesday and industrial demand temporarily. Yes. Okay, Jamie. So sorry.

The performance was what we had expected. Historically, they performed at a positive mid-single-ditch growth, mid-single-digit growth. Life Science Business is one of their fastest-growing markets right now.

$1.85 billion of sales and Q1 actual was $285 million. We expect this to be accretive, as Todd said. The ten and a half months, an accretion of $0.50. So this is a good business. A business with, you know, complementary technologies to what we have, markets that we know, and we expect that this is going to be a good growth business and fit nicely, especially with the additional 500.

We feel very confident in the $220 million in synergies, that's 11%, $40 million for this fiscal year. The integration team has been working very hard. They were planning ahead of the close and they've worked very closely with Filtration Group and as I mentioned Kaizen events are in full swing. And we really, really have had success in the past by focusing on that first pillar of the win strategy and we're often. We're running there. Demand and.

We put out there 46% organic growth. We feel very confident about hitting those. Transform this portfolio very, very much on purpose to be able to do that. I think when you look at the durability of the short cycle business. Right now, there's clear signs of positive short cycle demand through orders and shipments. Both OEM and distribution.

On a broadening recovery. And as I already mentioned, we raised our forecast on implant industrial as well as transfer. location to high single digits. And the rest of the market verticals remain positive. It's very encouraging, as I mentioned at the very beginning, to see the distributor purchases. to really increase, and they're driven by strong end demand. And again, for a long time, the sentiment is very positive, and now it is really supported, not only by the order.

Thank you. Congrats again.

Thanks, Jamie.

We'll go next now to Scott Davis with Melius Research.

Hey, good morning, Jamie.

Todd, Jeff. Congrats on the good, great start. Not a good start. Great start. There's not a lot to pick on or ask, but frankly, things are so clean, but I'm kind of curious. To what extent you're willing to share with us where a filtration group kind of stands. Today and as it relates to on time delivery quality kind of the key key metrics that you guys obviously care about. Even if you're not willing to share the exact number is some sense of kind of where the opportunity lies. It would be helpful for us.

Integrating everything.

But the thing that we've obviously been most focused on is safety, right? I think it's very important to us is that people come to work every day and feel safe in their environment and that we have a culture. Taking care of each other and making sure everyone's safe. That is the foundation for everything when it comes to. High-performance teams, as we know. You know, taking care of the customer and growing profitably. So safety is a big focus. We're not ready to disclose any specific... We'll talk about those metrics with the acquisitions, but we will be putting... ...them into our metrics that are really about making sure that we're on time to the customer. ...request dates, and that we're continuously improving upon... ...on how we serve the customer. These are good businesses.

...evidence of some of the visual management that... ...Parker believes is key to running any operations. But again, we also see... ...a lot of upsides with the Parker Lean system and implementing all the tools in the WIND strategy. And thanks for that, Jenny. But my understanding, the filtration group was kind of built... Built over time with a bunch of acquisitions and full-times itself. And so how heavy of a lift is it to integrate... Imagine there's a number of different ERP systems, and obviously you're going to want to integrate it. To some extent, I would think, but I'll ask that as part of the question as well. But how heavy of a lift is it? And then to what extent do you plan to integrate, I guess, is my question. Correct. That's the way it was built over time. These are very... ...decentralized, which is a positive, though, because the leaders of these businesses very... ...to being held accountable to their P&L statement. So that's a positive, and that feeds right into... ...to the Parker culture. So we like that about it. But none of these... ...integrations are quote-unquote easy.

...to each acquisition, and we obviously will want to bring those together. One thing to remember here, too, is that we've taken these filtration businesses and put them into existing Parker divisions. And within those leadership teams, you'll wind up with legacy Parker leaders and filtration group leaders. So that really does help with getting the wind strategy ingrained into the division and bringing everybody on. Board with with the work that needs to be done so heavy lift yes but you know this is a core competency for us and we feel very confident about being able to integrate all of these. all these locations and really, really make this a successful acquisition. I'll pass it on.

Thank you and best of luck.

Julian Mitchell with J.P. Morgan. Hi. Good morning. Maybe just my first question around. The aerospace segment organic sales growth outlook for the balance of the year. Maybe just help us understand kind of how you. Thinking about commercial, aero, OE and aftermarket versus the same for defence. And just flesh out how Q1 started for those pieces, please. Just talk about the guidance for aerospace. So I'm just starting out the OE aftermarket split. For the fiscal year is guided to 53% OE and 47% aftermarket. We did have a mix of 52, 48 and Q1. So as we said, you know, strong commercial aftermarket than we expected. And I would tell you too, one of the, one of the things that is really contributing to our aerospace group's ability to deliver is, the team has worked very hard on demanding capacity planning in aerospace as well as partnering with the supply chain and really investing in the supply chain over the last several years so this full-year guide of approximately 10% we're very confident about that you know with the initial guide being eight and a half percent we are seeing remains at mid teens growth for fiscal year 27 transport build rates are increasing and

greater than supply. For commercial MRO, we are raising guide to positive high single-digit growth for fiscal year 27. So as I mentioned already, there is an aging fleet driving aftermarket growth. We are not seeing a lot of retirements. Engine repair shop visits and component demand can continue and we are clearly again seeing the benefits of our team really working closely with the customer. understanding what the demand is seeing the increases come you know knowing about them because they comment and making sure that we're able to help them achieve their production rates. on defense oem we're raising the guide to high single-digit growth for fiscal year 27. we see strong demand for global fighter jets the orders continued strong in a quarter and you know we're raising this based on firm demands from our mid single digit growth for fiscal year 20 things we've upgrades and service extensions a focus on retrofits and upgrades the fleet ages and again I would say with both of these this is a long cycle business but you know we're raising guidance on the demand we see today and we're focused on making sure that we serve these customers. That's very helpful thank you and then maybe just a quick follow-up on the second quarter EPS. I don't think it implies a slight tiny decline sequentially on EPS you know normally that number's up sequentially. I understand maybe some margin effect from filtration group.

Is there anything else beyond that? And is there something with filtration group where the margins in? And international are particularly sort of dilutive to that segment? No, it's not so much, Julian, the mix between North and South. I would say the, you know, a full quarter of interest has got a little bit of a drag on each. There, but, you know, we look at our.

I would say there's nothing.

Great. Thank you.

And we'll go next now to Joe. O'Day with Vertical Research. Hi.

Good morning.

You made a couple of references to seeing some improving demand out of the distribution channel. And so I was looking for a little bit more color there. I think you've talked for quite some time about the indications of interest being better, but actually now it seems like you're seeing that materialize some more. Just any perspective on the growth rate you saw in North America and international out of that channel, how that compares to some of the recent quarters just to get a better understanding of acceleration there. I would say that we started to see this in Q4. We talked about it during the last call. We talked about the numbers from distribution. And what we saw in Q2, we talked about the numbers

as well. So I wanted to check out our customers from the room, and we talked about the numbers, we talked

the numbers have increased, and they're increasing to real demand. They're participating in a lot of capital investments.

Automation, it truly is a broadening recovery and distribution. It's playing very well in it. And then on the inflationary... ...side of things, when we think about the 200 basis point increase in organic growth guidance, any contributions... ...to that from pricing that you've had to do, and then as you think about the full year, is the anticipation that price cost is both dollar and margin positive? Yeah, so, you know- inflation, we definitely are still seeing increases, you know, across the range of material cost inputs as well as logistics. But, you know, this is- It's a strong muscle for us. We're experts at managing this. You know, our wind strategy supply chain tool-

the organization is working- closely with our pricing team. And we've taken some action where we needed to. We'll do that in the future if needed. But we are really- to a very normal pricing environment on the industrial side of the business. Joe, I would say the increase in the organic growth is really demand-related.

Got it. It's helpful. Thank you.

We'll go next now to Brett Lindsey with Mizuho.

Hey, good day, y'all. I wanted to come back to the industrial margins, obviously move structurally higher here as volume recovers and you're picking up, you're generating these new project wins. Is there any additional required capacity investment or reallocations in some of those divisions that would influence the path to those long-term targets? You know, we have done a really nice job over the last couple of years of increasing capacity where we needed to. We have been able to... ...generate additional capacity through use of Kaizen and the Parker Link system. That's a very... strong muscle for us as well. So there is not what I would call any significant... ...investment that will be a need to be made. We will continue to increase our productivity. ...continue to use all these tools, and on the higher volume in Q1, obviously the teams... ...we'll be able to deliver that, and we see that that'll be the case for the rest of the fiscal year in the foreseeable future. That's great. And then just one more on OE within aerospace. So on Boeing and Airbus, just wanted to better understand how much of the production rate more and how much of the production rate is in the plan versus maybe upside to the guide. What are the build rate cadence that you're thinking about are effective? As I mentioned before, our teams are working very closely with these big customers. And the production rates that they're sharing with us and the demand...

...capacity planning we're doing, that's what's in our guidance. So, you know, we don't specifically talk about customer build rates. But we don't expect any surprises there, and we know what their plans are. That's great. Congrats on the quarter.

We'll go next now. to Andy Kapowitz with Citigroup.

Hey, good morning, everyone.

Good morning, Andy.

It's focusing on the energy piece of your portfolio. It's one of the slower-growing portions of your portfolio, even with that PowerGen business in there. Do you see any signs of life in oil and gas, given the higher sustained energy prices, and what seems like energy security-type work? And could you talk about the understanding? Is that the underlying strength of your PowerGen business at this point? You know, it is. Positive mid-single-digit growth. And as you know, energy, the vertical is about 7% of our sales. So we see robust long-sides. Cycle power gen demand. That's been very strong. The forecast is flat. The midstream remains constrained. There's some benefit in midstream from some infrastructure build out, but right now the best view we have is that.

It's a tough one. I think one of the main reasons why you bought filtration group was it's aftermarket. So it's obviously early days in terms of your ownership, but what did they do if at all differently than Parker that could help you? And then I think just you mentioned life science is their biggest business. Are you seeing any improvements in that business or can you see above mid single digit growth in that business going forward? Well, there's many reasons why a filtration group, you know, was... Very attractive to us and why, you know, we had watched this business for quite some time. You know, it's not just one thing. It's very nice to have higher aftermarket, right? That is something that plays right into Parker's success. You know, really, the complementary and proprietary technologies is really one of those things that... you know, we look for is growing. higher than the rest for them right now, but it also brings a lot of proprietary media for markets that we already play. So this is, you know, Andy, this is just a good performing business that we're going to just improve. And we think that there's plenty to learn here. I would say it's... ...early days about learning all of how they go to market and how they handle their channels. But we think that we can learn from that, and we also think that there's some things that we do that... I said, well, within filtration group.

Appreciate that, Jenny.

We'll go next now to Steve Tusa with Wells Fargo.

Hey, thanks for being here.

Appreciate it.

Just on this, I guess... Any sort of color on... I know you don't disclose price, but any directional color on how that may have impacted the increment? I mean, is it that you are getting to just any kind of high-level color? On the price-cost situation. Yes, Steve, I'll start with you.

You know, this is something Jenny mentioned earlier.

No, like, levers that we're pulling.

And then.

Yep. Yep. Yep. And then and then just on the on the meeting, Jenny, I think you said, I mean, you said expect some news.

we'll have some news for you.

obviously you guys seem like you're you know. like the long-term targets can be reset is is there any thought or consideration to like a more holistic portfolio evaluation from that perspective I wouldn't go that deep I say hey you know it's it's a few months out from now we have to just close the filtration group we will have close those circle by the time that comes you know the company will be over 25 billion and

here is the car what the company looks like today and what we're

Okay, perfect. Thank you next now to Varun Govindaraj with Bernstein.

Good morning, everyone. Thank you. the question a little bit morning link a little bit to what we just talked about. I mean, as you continue to get larger these. I see a big enough pipeline of complimentary M&A assets out there that can materially move the needle, like Megat has infiltration group. Is expected to? Or should we think about this as more bolt on going into the future? Varun, there are deals, assets of all sizes in the acquisition pipeline. Right? And one of the things that we often talk about is making sure that that pipeline stays active and healthy. And that's, that's something that we've done for quite some time. So we think, you know, a lot of times, we're not in control of the timing of those, but we do believe that. that line is still robust.

Perfect. Appreciate the color. And then just as a follow-up, could you remind us on backlog conversion in general, how much of that? It tends to convert to revenue over the course of the next 12 months. And should we expect any changes there, just given the shift and mix of the business?

Conversion rate over the... ...the next year or so. It's roughly 75% of the backlog converts to sales in a 12-month period. But, you know, there's always... move-ins and moves out of there. So that's not something that we really look at when we're looking at, you know, forecasting. But... It's roughly 75%. Appreciate the cover. Thank you. I'll back it on.

Hey, Bo, this is Todd.

Good morning, Jeff.

Maybe just last one on filtration group. A lot of good color there, Jenny. And I know you don't include revenue synergy. But as you look at the portfolio early on, just any clear opportunities, whether it be distribution complements. Market complements, geographic, where there is some clear revenue synergies to think about. Thanks. We don't model any revenue synergies, but we are definitely seeing areas of opportunity, areas where we can leverage. We can leverage record technologies to filtration group customers, and then leverage filtration group technology. So, we are, you know, the integration team, although they're focused on the integration team, we have a lot of information on the integration team, but we have a lot of information on the integration team. We are focused on, obviously, integrating the businesses and achieving the synergies. Our sales and marketing teams are working closely together to identify those opportunities. We definitely believe that there are some there. And Jeff, we also have, you know, real early days here, but we've found some capacity opportunities.

Filtration capacity within our legacy businesses to help some of those filtration group businesses. We discovered early on, like three weeks in.

Get it closed. The team is working hard, and we're going to do it again, just like we've done. Great. Thanks.

It includes our FY27 Q1 earnings release webcast.

Thank you all for joining us today. As usual, our team of investor relations, Jeff Miller will be available for any follow-ups or clarifications if anyone has any.

thank you again and have a wonderful day thank you mr liam bruno and thank you miss parment here again late

ladies and gentlemen that will conclude Parker Hannon Incorporations earnings conference call we'd like to thank you all so much for joining us today and wish you all a great remainder of your day goodbye

well

hmm