Industrial heat exchange provider Arvos HoldCo S.a.r.l. underperformed expectations in the first three quarters of fiscal year 2025 (ending March 31, 2025), with both top line and profitability hindered by a persistent subdued market environment and project execution challenges related to a major ongoing project in the company's offshore wind business. This is expected to reduce the S&P Global Ratings-adjusted EBITDA margin to around 10%-11%, from the previously projected 16%. Given that we expect most of the project-related challenges to be contained within fiscal 2025, we anticipate Arvos' leverage to increase only temporarily, with debt to EBITDA peaking at around 8x in fiscal 2025 and improving to just below 6x in fiscal 2026. Additionally, subdued demand for its traditional business
