Russ Becker: I think it’s very, very similar to the fire, life safety and security space, Jon. And I should say good morning and thank you for participating before I get carried away here. But I think it’s like textbook. I think the multiples are going to be similar. I think the sellers are going to be looking for the right home for their business just like how we have executed in the fire and life safety space. It’s just as fragmented as the fire and life safety and security space. So, like I think that other than you got to brush it up and call it an elevator versus a fire alarm, I think it’s the same. And so I think from an M&A perspective, it will be – we will be able to run. And there is boutique brokers/bankers in the space.
But the reality of it is, and especially just talking to the team yesterday, is that they know the market. They know the players in the market. They know who is aligned culturally with us. And I think that that’s something that we will be able to take advantage of those relationships. Like every one of the senior leaders on the Elevated team has come from the elevator and escalator space. So, they know the market very, very well.
Kevin Krumm: Yes. The only thing I would add is that the market – the makeup is the same, highly fragmented. They are market leader in a lot of the markets they play in, still in that 5% range. There is a couple where there may be 10%. But outside of that, it’s highly fragmented, and they have – they come to us with their robust pipeline and targets.
Jon Tanwanteng: Got it. Thank you. And I was wondering if you could just talk about your second half expectations in the core business. I know you haven’t formally updated your guidance, but you performed well in Q1. Your Q2 guidance on an earnings level looks strong. I am just wondering if we should expect upside just for the organic core business when you do formally update your guidance for all the factors you mentioned before.
Kevin Krumm: Well, just on guidance, I will say the Elevated – and then I will talk about the back half, but I will try and tackle guidance here, too, Jon, and I appreciate the question. We are sort of in this non-traditional spot where we have a material acquisition we are looking to close. We are here on May 2nd, as we said, we are looking to close it in the quarter, and we believe it to be sort of a material update for the year. We also had a history of rolling FX through. But noting we are close to closing that transaction, we want to take our time and bring that in and work with that team to better understand what their back half of the year looks like. And so we intend to do that, and we will bring in sort of the FX element.
But the other thing we are trying to say in this guide that we communicated today is there should be no significant changes on the base business as we look at the back half of the year beyond Q2. And when you look at the back half of the year, we are expecting to see accelerated organic growth. Our service business, our service growth rates where we want them to, have held up in the first half of the year, we expect that to continue in the back half of the year. And then we expect the businesses that have been going through, so that would be HVAC, the project business in specialty, the projects business on the international side to annualize against the work – the great work those teams have been doing to start to show sort of low to mid-single digit growth on the project side.
The two of those together are sort of what’s delivering that 6% to 7% organic in the back half of the year.
Jon Tanwanteng: Got it. That’s helpful. Thank you.
Russ Becker: So Jon, Stephanie, everybody, I am going to just add a bullet point about this whole cross-selling. So, on the other night, I have mentioned the Elevated team was on campus yesterday, and we had a dinner with them the previous evening. And we invited one of our local business leaders to attend that dinner. And while we are sitting here and during the course of the call, he sent me a note and it reads something to the point about getting leaders together from the earnings call this morning, I had the chance to connect with many of the Elevated leaders at dinner Tuesday. As a first bullet being fired, we invited Ben, who is the Regional VP for Elevated out of Indianapolis to join our Service Leaders Summit in Columbus, Ohio this June.
So, I mean there is already work going on. We are getting people kind of cross-pollinated. And I mean that’s one of the beauties of our business in this focus on leadership development and investment in people. Like our business leaders are generally curious people and they want to – these newly acquired companies, they surround them and bring them warmly into the business. And this is just a good example of how the – this whole idea of cross-selling and sharing opportunities and knowledge and everything else is going to come to fruition. So, hopefully, that’s helpful color.
Operator: Your next question comes from the line of Steve Tusa of JPMorgan. Your line is open.
Steve Tusa: Hey. Good morning.
Russ Becker: Hey. Good morning. How are you?
Steve Tusa: Congrats on the margin execution, really strong.
Russ Becker: Thank you.
Steve Tusa: Just on kind of the trajectory for the second half on the sales side, I know you guys used to talk about like backlog and kind of some forward indicators on some of the businesses. How should we think about things as they move forward into the base business for the third quarter and the fourth quarter? You mentioned, I think the 6% to 7% in the back half. And I think the comps kind of stabilize a bit in the back half. But is that a steady trajectory, is it pretty consistent, the growth 3Q and 4Q? And then in that context, like it’s hard to tell what normal seasonality actually is. You had a nice sequential step-up or you have a nice sequential step-up from 1Q to 2Q. How does that typically behave seasonally 3Q and 4Q with these businesses?
