Record gross margin and strong cash flow …

Q: Are you familiar with the instructions of the overall year in view of the strength of Q1 and the expectations for Q2 despite the tariff effects? A: Thomas Deitrich, CEO, mentioned that it is premature to update the guidance of the year as a whole. While Q1 and Q2 are ahead of expectations, the tariff situation remains dynamic and they are re -evaluated according to the income of the Q2. Joan Hooper, CFO, added that the EPS of the first half rose by 10% compared to consensus, which indicates a strong start to the year.

Q: How should we think about the segment margins for devices in the future because the record margins are reached? A: Joan Hooper, CFO, said that it was premature to update long -term goals, but are satisfied with progress. The mix-shift and portfolio cutting has contributed to the strong margins, but variability is expected from quarter to quarter.

Q: Can you give insights into the regulatory environment to use software in the tariff basis? A: Thomas Deitrich, CEO, explained that the regulatory environment is constructive, with the mechanisms varying according to the state. Performance -based prices are becoming increasingly common, and the corporate structures are dealing with customer business plans, which supports the continued growth of software sales.

Q: What effects do tariffs have on your financial data and how do you mitigate these effects? A: Thomas Deitrich, CEO, found that the EBITDA effects of 15 million US dollars include current tariffs and reduction measures such as alternative procurement and price adjustments. The effects are expected to be more pronounced in the second half of the year.

Q: How do your Grid Edge Intelligence solutions in blackout situations such as the youngest in Spain and Portugal help? A: Thomas Deitrich, CEO, emphasized that their solutions deliver visibility and control at the edge of the grid and are supported in segmentation, microgrid solutions and quadrangers. These skills help to minimize the damage and to restore the power supply faster in the event of failures.

You can find the complete copy of the earnings call in the complete earnings call.

This article first appeared on Gurufocus.