Focus on core strengths is the obvious counter-argument

If so, then why is Adrad seeking to move into the industry vertical.

There has to be some value add or efficiency gains here from all that knowledge about autosport cooling systems that could translate to a better product than what is currently in the industry sector market?

As growth in auto looks like it is maturing it may make sense to look at other sectors so the multiple can be justified.

There’s all type of different data centre cooling technologies being built with water and even liquid nitrogen. I’ve heard startups are everywhere, spurred on by this AI hype, so maybe it’s a good thing as that space is certainly more competitive and feel might be some different tech eventually.

It's not just data centre

It's the wider industry sector such as manufacturing, biotech, logistics and electrification that I'm referring to.

Hence I added "industry" in the last comment.

Or maybe I am too "broad"?

No I think that's fair. I see PWH as more specialists and think some of those are low margin mass manufacturing - but a TAM to be aware of that's for sure.

I sort of feel the margin is irrelevant when you see the growth in automotive starts to come back to single digits and there is not much guidance on when things go back to normal.

Usually in that case it is better to catch the more stable tailwind or dare I say "megatrend".

As an example look at SXE. Most people wrote that data centre work as a one-off with crappy margins and look where they are now?

Having said all this, I haven't deep dived into the cooling tech for industry as a whole perhaps as much as everyone else here so again my opinions probably don't mean anything.

The pivot to aerospace and defence is encouraging but it is hard to say if that is enough.

I agree, if aerospace doesn’t support enough future growth it will de rate it significantly.

I think Carrier and Linde are major players in industrial but at different points.

Guys, even though I have a reasonably sized ego, I am willing to concede that KW knows more about this business than I and probably anyone else. He would have a good idea of PWH value proposition, the capex required to meet demand, potential demand, the return on that capex and the customer relationships. the market did not like the flat growth this year as PWH reinvests for the next leg. if KW thinks A&D is their best chance for growth I am willing to support that—that's what founders bring to the table.

i would feel very uncomfortable if they were changing strategies and chasing business that was not previously mentioned. that would be a thesis breaker for me.

i realise shareholders are disappointed with the SP pullback, but nothing goes up in a straight line. If you dont believe in the A&D opportunity then maybe exit, or do what i am doing and watch the progress over the next couple of years. held

Not saying I don't believe in the aerospace opportunity. I think it is good but also it is going to take time working off a low base.

Plus wheels of government turn slow

I wouldn't contemplate selling here. Should have sold when they just released the last financial update. But I'm definitely not adding here as I can't see the need right now and instead looking at other opportunities.