Todd Adams: Yes, again, I think we’re trying to give you a perspective of our expectation of what the end market grows based on the funnel of opportunities that we’re looking at. I guess it’s a principle the federal funding to how it ultimately gets spent. That never really translates particularly well, at least in my experience, and the length of time from when that’s talked about to actually being spent is quite a lag. So I think, look, we’re seeing good activity in areas where there is population growth. And so our products really sort of attach from the primary water supply, to the developments and things like that. And so that’s what we’re seeing growth and opportunity. And hopefully it’s a little bit better with maybe some of the stimulus that you mentioned. But I think for now, that’s what we’re seeing as we’ve talked about 2024.
Brett Linzey: All right. Appreciate the insight. Best of luck.
Operator: Our next question comes from Nathan Jones from Stifel. Please go ahead. Your line is open.
Adam Farley: Good morning. This is Adam Farley on for Nathan Jones. As it relates to the margin guidance, what is the level of incremental growth investments in 2024?
Mark Peterson: And we’re not giving details around the numbers. But like I said, the two things that – I called out in the back half of the year, one is going to be – we think there could be some inflation in the back half of the year and the growth investments over the course of the year. We’re not going to give an exact amount. But we are, like we did last year, we do every year. We invest in growth in the business. So that’s a minor headwind. It could be, but we’re not going to give exact numbers at this point in time.
Adam Farley: Fair enough.
Todd Adams: No, I mean, again, I think, I think if the question is, you know, if you just get the Elkay synergies, you get to maybe 150 basis points of margin expansion with the kind of growth we’re talking about. So there’s got to be, there’s got to be some other things. And I think the point is, yes, there are lots of puts and takes. I think, I think you got to separate what we’re sort of guiding to versus what we think we can do, particularly on February 7 here. And so, as Mark pointed out, there are certainly growth investments, but it’s not as if there’s a list of things to reconcile for you that I would say are outsized or unexpected. I mean, obviously, we give people raises, but we have productivity. We have material savings.
And obviously, there’s certain areas where we see material cost inflation. So nothing out of the norm one way or the other. I think we’re just trying to give you a view with a high degree of confidence, and we’ll update that as we go through.
Adam Farley: No, that makes sense. And then turning to capital allocation again, do you have any planned buyback activity in ’24?
Todd Adams: Yes, we’re going to do, we’re going to do a buyback on a sort of regular cadence. But, nothing that we think is outsized or maybe different in scope than last year. There’s a range that we’ll go through and evaluate what we think fair value is and our outlook and everything else. We’ll clearly do some, rather than over the course of the year. So yes, we do have a plan for that.
Adam Farley: All right. Thank you for taking my questions.
Operator: We have no further questions in queue. I’d like to turn the call back over to Dave Pauli for closing remarks.
David Pauli: Thanks, everyone, for joining us today. We appreciate your interest in Zurn Elkay Water Solutions and we look forward to providing our next update when we announce our March quarter results in late April. Have a good day.
Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.
