EBA Emphasizes SupTech's Rising Role in EU Anti-Money Laundering Efforts

The Role of Technology in Modern AML/CFT Supervision

The European Banking Authority (EBA) has released a comprehensive report highlighting the growing importance of technology tools in anti-money laundering and countering the financing of terrorism (AML/CFT) supervision, also known as supervisory technology or SupTech. This initiative represents a significant shift in how financial regulators monitor and manage risks within the banking sector.

SupTech involves the use of advanced technological solutions by regulatory bodies to enhance their capacity to oversee financial institutions. These tools are designed to improve the monitoring, analysis, and supervision of financial activities, making it easier to detect suspicious transactions and ensure compliance with AML/CFT regulations.

In the context of AML/CFT, SupTech can include a variety of applications such as data analytics platforms, artificial intelligence systems, and blockchain-based tracking mechanisms. These technologies help in identifying irregularities in financial flows, improving the accuracy of data reporting, and enabling more effective risk-based supervision.

The report outlines the current state of innovation across the European Union and explores how these developments can support the implementation of the new EU AML/CFT framework. Central to this framework is the establishment of the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA), which will be responsible for overseeing and coordinating AML/CFT supervision at the European level.

According to the EBA, the creation of AMLA presents a unique opportunity to reevaluate supervisory approaches and leverage technology to enhance oversight. To gather insights for the report, the EBA conducted surveys with national competent authorities (NCAs) and organized a dedicated workshop with the European Commission’s AMLA Task Force. This collaboration aimed to identify trends, challenges, and best practices in the application of SupTech for AML/CFT supervision.

The report provides an in-depth look at how SupTech is being implemented across the EU. It highlights effective practices in areas such as change management, data and technology infrastructure, and supervisory strategies. These practices are essential for developing a more risk-based, data-driven, and scalable supervisory model under the new AML/CFT framework.

Although SupTech applications in AML/CFT are still in the early stages of development, the report notes that nearly half of the identified tools or projects—47%—are already in production. Another 38% are in the development phase, while 15% are still in the exploratory stage.

The EBA has observed tangible benefits from the deployment of SupTech by NCAs. These include improved data quality, enhanced collaboration among supervisory bodies, and more efficient identification of risks within financial systems. However, several challenges persist. Authorities face constraints related to limited resources, legal uncertainty, and data governance issues, which continue to hinder the broader adoption of technology in supervision.

The EBA has committed to supporting both NCAs and AMLA in strengthening their use of technology and fostering innovation in AML/CFT supervision across the EU. The report also reflects the EBA’s legal responsibilities under its Founding Regulation.

Article 29 mandates the EBA to actively contribute to building a common Union supervisory culture and ensuring consistent supervisory practices. Article 31 requires the EBA to promote supervisory convergence and facilitate the entry of innovative actors or products into the market, particularly through the exchange of information and best practices.

Ultimately, the EBA emphasizes that its mandate aims to support the establishment of a unified European approach to technological innovation in financial supervision. This effort is crucial for enhancing the resilience and effectiveness of the financial system against illicit activities.

EBA Emphasizes SupTech's Rising Role in EU Anti-Money Laundering Efforts

The Role of Technology in Modern AML/CFT Supervision

The European Banking Authority (EBA) has released a comprehensive report highlighting the growing importance of technology tools in anti-money laundering and countering the financing of terrorism (AML/CFT) supervision, also known as supervisory technology or SupTech. This initiative represents a significant shift in how financial regulators monitor and manage risks within the banking sector.

SupTech involves the use of advanced technological solutions by regulatory bodies to enhance their capacity to oversee financial institutions. These tools are designed to improve the monitoring, analysis, and supervision of financial activities, making it easier to detect suspicious transactions and ensure compliance with AML/CFT regulations.

In the context of AML/CFT, SupTech can include a variety of applications such as data analytics platforms, artificial intelligence systems, and blockchain-based tracking mechanisms. These technologies help in identifying irregularities in financial flows, improving the accuracy of data reporting, and enabling more effective risk-based supervision.

The report outlines the current state of innovation across the European Union and explores how these developments can support the implementation of the new EU AML/CFT framework. Central to this framework is the establishment of the Anti-Money Laundering and Countering the Financing of Terrorism Authority (AMLA), which will be responsible for overseeing and coordinating AML/CFT supervision at the European level.

According to the EBA, the creation of AMLA presents a unique opportunity to reevaluate supervisory approaches and leverage technology to enhance oversight. To gather insights for the report, the EBA conducted surveys with national competent authorities (NCAs) and organized a dedicated workshop with the European Commission’s AMLA Task Force. This collaboration aimed to identify trends, challenges, and best practices in the application of SupTech for AML/CFT supervision.

The report provides an in-depth look at how SupTech is being implemented across the EU. It highlights effective practices in areas such as change management, data and technology infrastructure, and supervisory strategies. These practices are essential for developing a more risk-based, data-driven, and scalable supervisory model under the new AML/CFT framework.

Although SupTech applications in AML/CFT are still in the early stages of development, the report notes that nearly half of the identified tools or projects—47%—are already in production. Another 38% are in the development phase, while 15% are still in the exploratory stage.

The EBA has observed tangible benefits from the deployment of SupTech by NCAs. These include improved data quality, enhanced collaboration among supervisory bodies, and more efficient identification of risks within financial systems. However, several challenges persist. Authorities face constraints related to limited resources, legal uncertainty, and data governance issues, which continue to hinder the broader adoption of technology in supervision.

The EBA has committed to supporting both NCAs and AMLA in strengthening their use of technology and fostering innovation in AML/CFT supervision across the EU. The report also reflects the EBA’s legal responsibilities under its Founding Regulation.

Article 29 mandates the EBA to actively contribute to building a common Union supervisory culture and ensuring consistent supervisory practices. Article 31 requires the EBA to promote supervisory convergence and facilitate the entry of innovative actors or products into the market, particularly through the exchange of information and best practices.

Ultimately, the EBA emphasizes that its mandate aims to support the establishment of a unified European approach to technological innovation in financial supervision. This effort is crucial for enhancing the resilience and effectiveness of the financial system against illicit activities.

Labour must embrace the AI revolution, not resist it

Tech Salaries and the High-Stakes Talent War

Tech salaries in London and the UK vary significantly based on experience, role, and specialization. Entry-level positions may start around £45,000, while experienced professionals can earn upwards of £120,000. The tech industry is experiencing fluctuations due to factors like AI, which is impacting job demands and potentially leading to shifts in salary expectations. Emerging technologies are hot: roles requiring skills in areas like artificial intelligence, machine learning, and cloud computing are seeing higher-than-average pay increases.

The tech industry has reached a point where even small companies are willing to offer staggering compensation packages to attract top talent. For example, Lattice, a US chipmaker in Oregon, approved a payout to tech executive Ford Tamer that was 1,300 times more than the company’s average employee wage. This decision was made to lure him from investment firm Francisco Partners. The company emphasized that nearly all of his pay is tied to stock performance, and shares in Lattice rose 12% on the day he was appointed.

This kind of compensation is not unique to Lattice. The tech industry is matching, even surpassing, football for signing-on fees. In sports, it is not only the mightiest clubs that are having to find ever larger sums—lesser teams are also feeling the trickle-down effect. They are still in the same market.

Tamer’s mega-bucks may be eye-popping to some but not to others. OpenAI chief Sam Altman has accused rival Meta of offering $100 million bonuses to AI engineers to jump ship, forcing his corporation to reassure staff it was “seeking creative ways to recognize and reward top talent.” It’s not clear what that means exactly, since OpenAI is known for paying near the top of the market already. Expect details of even juicier packages to emerge.

The war for talent has prompted some seasoned observers to shake their heads at the craziness of it all. Kyle Langworthy, an AI recruitment specialist at Riviera Partners, described it as having “just become manically more hyper-intense.” Certain companies, he said, “are willing to do anything or whatever it takes to bring that talent into the organization.”

Last month, OpenAI gave its staff a week off to rest and recharge, only to see Meta exploit the unexpected company-wide break and use it to contact OpenAI staffers and pressure them into moving across. All of which is good news for digi hubs outside the Valley, with London at the forefront. As the US pool is drained, attention is turning elsewhere.

Executive Pay and the Call for Fairness

The UK’s High Pay Centre, which campaigns for fairer pay, is going to deal with this situation. This week, it published a report revealing the bosses of Britain’s largest listed companies have taken home record-high pay packets for the third successive year. Its analysis found the average FTSE 100 chief executive is now paid 122 times the salary of the average full-time UK worker, which begs the question—have they seen Tamer’s 1,300 times?

FTSE 100 companies spent more than £1 billion rewarding 217 executives. The median wage of a FTSE 100 chief climbed to £4.58 million in the past year, up from £4.29 million. The study revealed that FTSE 100 companies spent more than £1 billion rewarding 217 executives. Heading the list were the current and former bosses of Melrose, the UK engineering company. Peter Dilnot and Simon Peckham between them collected £59 million in the past 12 months. That was calculated largely on long-term incentive payments.

Next were Andy Bird, current chief executive of education publisher Pearson and his predecessor Omar Abbosh, who together earned almost £19 million. They relegated the FTSE 100’s highest-paid boss for the last two years, Pascal Soriot of pharma giant Astra Zeneca, into third spot, with a still tidy £14.7 million. The gender gap remains as strong as ever—the High Pay Centre survey discloses the median chief executive for the nine FTSE 100 companies run by a woman over the 12 months was £3.27 million, versus £4.64 million for those headed by a man.

The think tank is calling for low and middle earners to receive a greater share of the pot. It is also seeking reforms to regulations governing the pay-setting process followed by corporates, including full implementation of Labour’s employment rights bill. The proposed legislation requires that employers inform workers of their trade union rights, gives workers greater power to elect directors to company boards, and introduces increased transparency regarding the reporting of pay.

Political Tensions and the Future of Tech

His plea and the report will be warmly received by many in Labour and add to pressure on Angela Rayner, who is driving the employment rights legislation, to push it through as soon as possible. That will only stoke tensions with business and the City, still reeling from Rachel Reeves’s hike in employers’ national insurance and contemplating further tax-raising in her next Budget, due in the autumn. It will fuel the feeling, too, that Labour sees the wealthy as fair game, and as the best route towards closing the yawning £50 billion gap in the public finances.

There is a real danger of London getting left behind as the result of political ideology. US vice-president JD Vance, this summer’s highest-profile UK holidaymaker, has criticized Europe for adopting a regulatory approach, stating that “excessive regulation of the AI sector could kill a transformative industry.” He said: “We need international regulatory regimes that foster the creation of AI technology rather than strangle it, and we need our European friends, in particular, to look to this new frontier with optimism rather than trepidation.”

In America, it is all systems go, and that means recruiting the brightest and best and paying whatever it takes. How long before our finest brains join the gravy train? We’re keen to be world leaders in the development of AI and tech, but that means getting real. Our unworldliness could prove to be our undoing. It is no good saying we want AI and tech if we are not prepared to pay for them.

Labour must embrace the AI revolution, not resist it

Tech Salaries and the High-Stakes Talent War

Tech salaries in London and the UK vary significantly based on experience, role, and specialization. Entry-level positions may start around £45,000, while experienced professionals can earn upwards of £120,000. The tech industry is experiencing fluctuations due to factors like AI, which is impacting job demands and potentially leading to shifts in salary expectations. Emerging technologies are hot: roles requiring skills in areas like artificial intelligence, machine learning, and cloud computing are seeing higher-than-average pay increases.

The tech industry has reached a point where even small companies are willing to offer staggering compensation packages to attract top talent. For example, Lattice, a US chipmaker in Oregon, approved a payout to tech executive Ford Tamer that was 1,300 times more than the company’s average employee wage. This decision was made to lure him from investment firm Francisco Partners. The company emphasized that nearly all of his pay is tied to stock performance, and shares in Lattice rose 12% on the day he was appointed.

This kind of compensation is not unique to Lattice. The tech industry is matching, even surpassing, football for signing-on fees. In sports, it is not only the mightiest clubs that are having to find ever larger sums—lesser teams are also feeling the trickle-down effect. They are still in the same market.

Tamer’s mega-bucks may be eye-popping to some but not to others. OpenAI chief Sam Altman has accused rival Meta of offering $100 million bonuses to AI engineers to jump ship, forcing his corporation to reassure staff it was “seeking creative ways to recognize and reward top talent.” It’s not clear what that means exactly, since OpenAI is known for paying near the top of the market already. Expect details of even juicier packages to emerge.

The war for talent has prompted some seasoned observers to shake their heads at the craziness of it all. Kyle Langworthy, an AI recruitment specialist at Riviera Partners, described it as having “just become manically more hyper-intense.” Certain companies, he said, “are willing to do anything or whatever it takes to bring that talent into the organization.”

Last month, OpenAI gave its staff a week off to rest and recharge, only to see Meta exploit the unexpected company-wide break and use it to contact OpenAI staffers and pressure them into moving across. All of which is good news for digi hubs outside the Valley, with London at the forefront. As the US pool is drained, attention is turning elsewhere.

Executive Pay and the Call for Fairness

The UK’s High Pay Centre, which campaigns for fairer pay, is going to deal with this situation. This week, it published a report revealing the bosses of Britain’s largest listed companies have taken home record-high pay packets for the third successive year. Its analysis found the average FTSE 100 chief executive is now paid 122 times the salary of the average full-time UK worker, which begs the question—have they seen Tamer’s 1,300 times?

FTSE 100 companies spent more than £1 billion rewarding 217 executives. The median wage of a FTSE 100 chief climbed to £4.58 million in the past year, up from £4.29 million. The study revealed that FTSE 100 companies spent more than £1 billion rewarding 217 executives. Heading the list were the current and former bosses of Melrose, the UK engineering company. Peter Dilnot and Simon Peckham between them collected £59 million in the past 12 months. That was calculated largely on long-term incentive payments.

Next were Andy Bird, current chief executive of education publisher Pearson and his predecessor Omar Abbosh, who together earned almost £19 million. They relegated the FTSE 100’s highest-paid boss for the last two years, Pascal Soriot of pharma giant Astra Zeneca, into third spot, with a still tidy £14.7 million. The gender gap remains as strong as ever—the High Pay Centre survey discloses the median chief executive for the nine FTSE 100 companies run by a woman over the 12 months was £3.27 million, versus £4.64 million for those headed by a man.

The think tank is calling for low and middle earners to receive a greater share of the pot. It is also seeking reforms to regulations governing the pay-setting process followed by corporates, including full implementation of Labour’s employment rights bill. The proposed legislation requires that employers inform workers of their trade union rights, gives workers greater power to elect directors to company boards, and introduces increased transparency regarding the reporting of pay.

Political Tensions and the Future of Tech

His plea and the report will be warmly received by many in Labour and add to pressure on Angela Rayner, who is driving the employment rights legislation, to push it through as soon as possible. That will only stoke tensions with business and the City, still reeling from Rachel Reeves’s hike in employers’ national insurance and contemplating further tax-raising in her next Budget, due in the autumn. It will fuel the feeling, too, that Labour sees the wealthy as fair game, and as the best route towards closing the yawning £50 billion gap in the public finances.

There is a real danger of London getting left behind as the result of political ideology. US vice-president JD Vance, this summer’s highest-profile UK holidaymaker, has criticized Europe for adopting a regulatory approach, stating that “excessive regulation of the AI sector could kill a transformative industry.” He said: “We need international regulatory regimes that foster the creation of AI technology rather than strangle it, and we need our European friends, in particular, to look to this new frontier with optimism rather than trepidation.”

In America, it is all systems go, and that means recruiting the brightest and best and paying whatever it takes. How long before our finest brains join the gravy train? We’re keen to be world leaders in the development of AI and tech, but that means getting real. Our unworldliness could prove to be our undoing. It is no good saying we want AI and tech if we are not prepared to pay for them.

Australian University Tracks Student Protesters via Wi-Fi Data

University of Melbourne and Wi-Fi Location Data Controversy

In a recent incident, the University of Melbourne in Australia was found to have used Wi-Fi location data to identify students involved in a protest. This action took place during a sit-in protest in July 2024. According to a report by the state of Victoria’s Office of the Information Commissioner, the university directed protestors to leave the building they occupied and warned those who remained could face suspension, disciplinary action, or be reported to the police.

The report highlighted that 22 individuals chose to stay, and the university used both CCTV and Wi-Fi location data to identify them. While the use of CCTV was not considered a privacy breach, the use of Wi-Fi location data raised concerns. The Information Commissioner noted that individuals were not aware of how their Wi-Fi data was being collected or used, which meant they couldn’t make an informed decision about using the Wi-Fi network during the protest.

Following the investigation, the university revised its policies regarding the use of location data. As a result, the Office of the Information Commissioner decided not to issue a formal compliance notice but will continue to monitor the university to ensure it adheres to its new policies.

Fastly Explores Expansion into Asia

Content delivery network (CDN) service provider Fastly is exploring ways to expand its services into Asia. Like other CDN providers, Fastly deploys its infrastructure close to the network edge to bring data closer to consumers. However, Fastly prefers fewer, more substantial infrastructure deployments compared to its competitors.

CEO Kip Compton recently stated that expanding into Asia presents challenges due to the large populations in countries like India and Indonesia, where infrastructure is limited. He also mentioned that many Indian users still rely on phones with small screens, which reduces the demand for high-bandwidth streaming. However, he predicts that as more capable phones become available, data usage across Asia will increase significantly.

Fastly is currently researching how to adapt its CDN to meet these evolving needs, ensuring it can deliver efficient and effective services to Asian markets.

SK Hynix Unveils 321-Layer SSDs

South Korean memory manufacturer SK Hynix has announced the mass production of 321-layer QLC NAND chips, marking a significant advancement in storage technology. This is the first time a company has produced QLC NAND with over 300 layers, offering improved performance and efficiency.

According to SK Hynix, the new memory technology enhances write performance by up to 56% and read speeds by 18%, while also improving energy efficiency. These chips will initially be used in 2TB SSDs for personal computers before being integrated into enterprise SSDs and smartphone memory.

The company expects the product to be available in the first half of 2026 after customer validation.

Grab Faces Fare Glitch

Singapore-based rideshare company Grab recently experienced a technical glitch that caused the quoted prices for short rides in its app to exceed S$1,000 ($780). Given Singapore's relatively small size, these fares were extremely high and unreasonable. The company attributed the issue to a "misconfigured fee" and resolved the problem within 20 minutes.

India Bans Online Money Games

India's parliament recently passed a bill banning all games and online services that involve the chance to win or lose real money. The Promotion and Regulation of Online Gaming Bill targets "online money games," which include certain card games and fantasy sports platforms.

The government claims these platforms have caused widespread harm, leading to financial losses, addiction, and even tragic cases of suicide. The ban aims to distinguish between constructive digital recreation and gambling or betting activities that exploit users with false promises of profit.

Japanese Developers Move Away from Big Tech Payment Systems

Japanese mobile game developers are increasingly adopting their own payment systems to avoid the high commissions charged by Apple and Google. Research by Kyodo News found that 11 out of 16 Japanese developers among the top 30 games on local app store charts now operate their own payment services.

This shift comes as Japan prepares to implement a law that will reduce Big Tech's dominance in app stores, set to take effect in December. The research suggests that developers are proactively seeking cheaper alternatives to maintain control over their revenue streams.

Australian University Tracks Student Protesters via Wi-Fi Data

University of Melbourne and Wi-Fi Location Data Controversy

In a recent incident, the University of Melbourne in Australia was found to have used Wi-Fi location data to identify students involved in a protest. This action took place during a sit-in protest in July 2024. According to a report by the state of Victoria’s Office of the Information Commissioner, the university directed protestors to leave the building they occupied and warned those who remained could face suspension, disciplinary action, or be reported to the police.

The report highlighted that 22 individuals chose to stay, and the university used both CCTV and Wi-Fi location data to identify them. While the use of CCTV was not considered a privacy breach, the use of Wi-Fi location data raised concerns. The Information Commissioner noted that individuals were not aware of how their Wi-Fi data was being collected or used, which meant they couldn’t make an informed decision about using the Wi-Fi network during the protest.

Following the investigation, the university revised its policies regarding the use of location data. As a result, the Office of the Information Commissioner decided not to issue a formal compliance notice but will continue to monitor the university to ensure it adheres to its new policies.

Fastly Explores Expansion into Asia

Content delivery network (CDN) service provider Fastly is exploring ways to expand its services into Asia. Like other CDN providers, Fastly deploys its infrastructure close to the network edge to bring data closer to consumers. However, Fastly prefers fewer, more substantial infrastructure deployments compared to its competitors.

CEO Kip Compton recently stated that expanding into Asia presents challenges due to the large populations in countries like India and Indonesia, where infrastructure is limited. He also mentioned that many Indian users still rely on phones with small screens, which reduces the demand for high-bandwidth streaming. However, he predicts that as more capable phones become available, data usage across Asia will increase significantly.

Fastly is currently researching how to adapt its CDN to meet these evolving needs, ensuring it can deliver efficient and effective services to Asian markets.

SK Hynix Unveils 321-Layer SSDs

South Korean memory manufacturer SK Hynix has announced the mass production of 321-layer QLC NAND chips, marking a significant advancement in storage technology. This is the first time a company has produced QLC NAND with over 300 layers, offering improved performance and efficiency.

According to SK Hynix, the new memory technology enhances write performance by up to 56% and read speeds by 18%, while also improving energy efficiency. These chips will initially be used in 2TB SSDs for personal computers before being integrated into enterprise SSDs and smartphone memory.

The company expects the product to be available in the first half of 2026 after customer validation.

Grab Faces Fare Glitch

Singapore-based rideshare company Grab recently experienced a technical glitch that caused the quoted prices for short rides in its app to exceed S$1,000 ($780). Given Singapore's relatively small size, these fares were extremely high and unreasonable. The company attributed the issue to a "misconfigured fee" and resolved the problem within 20 minutes.

India Bans Online Money Games

India's parliament recently passed a bill banning all games and online services that involve the chance to win or lose real money. The Promotion and Regulation of Online Gaming Bill targets "online money games," which include certain card games and fantasy sports platforms.

The government claims these platforms have caused widespread harm, leading to financial losses, addiction, and even tragic cases of suicide. The ban aims to distinguish between constructive digital recreation and gambling or betting activities that exploit users with false promises of profit.

Japanese Developers Move Away from Big Tech Payment Systems

Japanese mobile game developers are increasingly adopting their own payment systems to avoid the high commissions charged by Apple and Google. Research by Kyodo News found that 11 out of 16 Japanese developers among the top 30 games on local app store charts now operate their own payment services.

This shift comes as Japan prepares to implement a law that will reduce Big Tech's dominance in app stores, set to take effect in December. The research suggests that developers are proactively seeking cheaper alternatives to maintain control over their revenue streams.

Worthington Stock Q2 Outlook: Engineered Components and Systems Insights

Overview of Q2 Earnings for Engineered Components and Systems Stocks

As the second quarter comes to a close, it's time to take a closer look at the performance of engineered components and systems stocks. These companies operate in specialized areas such as metal forming, intelligent robotics, and other technical fields. Recent trends in automation and connected equipment have created new opportunities, but these firms are also vulnerable to economic cycles, with factors like consumer spending and interest rates significantly influencing industrial production.

Among the 13 engineered components and systems stocks we track, the Q2 results were mixed. On average, revenues and next-quarter revenue guidance aligned with analysts’ expectations. This stability has contributed to a modest increase in share prices, with an average gain of 2.8% since the latest earnings reports.

Worthington (NYSE: WOR)

Founded by a steel salesman, Worthington specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets. In Q2, the company reported revenues of $317.9 million, which remained flat year-over-year. However, this result exceeded analysts' expectations by 5.6%. The company also beat EPS estimates and delivered a solid performance in adjusted operating income.

“We closed fiscal 2025 with a strong fourth quarter, delivering year-over-year and sequential growth in adjusted EBITDA, adjusted EPS and free cash flow,” said Joe Hayek, President and CEO of Worthington Enterprises. Since the earnings report, the stock has risen by 11.5%, currently trading at $67.05. Investors are closely watching whether this is a good time to buy.

Arrow Electronics (NYSE: ARW)

Arrow Electronics, which started as a single retail store, provides electronic components and enterprise computing solutions globally. In Q2, the company reported revenues of $7.58 billion, a 10% increase from the previous year. This outperformed analysts' expectations by 5.9%, with notable beats on EPS and ECS revenue estimates.

Despite the strong performance, the stock has remained relatively flat since the report, trading at $130.07. Investors are considering whether now is the right time to enter the market.

ESCO (NYSE: ESE)

ESCO, known for its communication systems used in "The Dark Knight," serves the aerospace, defense, and utility sectors. In Q2, the company reported revenues of $296.3 million, up 13.6% year-over-year. However, this fell short of analysts' expectations by 7%. The company also missed full-year revenue guidance.

While ESCO had the fastest revenue growth among its peers, its performance against analyst estimates was the weakest. Despite this, the stock has gained 2.6% since the results, currently trading at $195.29.

Enpro (NYSE: NPO)

Enpro, holding the Guinness World Record for creating the world's largest gasket, designs, manufactures, and sells machinery products across various industries. In Q2, the company reported revenues of $288.1 million, up 6% year-over-year, surpassing analysts' expectations by 1.9%.

However, the company faced challenges with full-year revenue guidance and EBITDA estimates. Enpro had the weakest full-year guidance update among its peers. The stock has risen by 5.8% since the report, currently trading at $227.49.

Timken (NYSE: TKR)

Timken, established after noticing the difficulty freight wagons had making sharp turns, provides industrial parts used across multiple sectors. In Q2, the company reported revenues of $1.17 billion, flat year-over-year. This beat analysts' expectations by 2.3%, with an impressive beat on EBITDA estimates.

However, full-year EPS guidance fell short of expectations. The stock has declined by 2.4% since the report, currently trading at $78.99.

Market Update

The Federal Reserve’s rate hikes in 2022 and 2023 have led to a decline in inflation, bringing it closer to the 2% target. The economy has shown resilience, avoiding a recession despite higher interest rates. Recent rate cuts in September 2024 and November 2024 have contributed to strong stock market performance in 2024.

Donald Trump’s victory in the U.S. Presidential Election further boosted major indices to all-time highs. However, ongoing debates about the economy’s health, potential tariffs, and corporate tax cuts continue to create uncertainty for 2025.

For investors seeking growth opportunities, focusing on companies with strong fundamentals remains a key strategy. With the right approach, even in uncertain times, there are potential winners in the market.

Worthington Stock Q2 Outlook: Engineered Components and Systems Insights

Overview of Q2 Earnings for Engineered Components and Systems Stocks

As the second quarter comes to a close, it's time to take a closer look at the performance of engineered components and systems stocks. These companies operate in specialized areas such as metal forming, intelligent robotics, and other technical fields. Recent trends in automation and connected equipment have created new opportunities, but these firms are also vulnerable to economic cycles, with factors like consumer spending and interest rates significantly influencing industrial production.

Among the 13 engineered components and systems stocks we track, the Q2 results were mixed. On average, revenues and next-quarter revenue guidance aligned with analysts’ expectations. This stability has contributed to a modest increase in share prices, with an average gain of 2.8% since the latest earnings reports.

Worthington (NYSE: WOR)

Founded by a steel salesman, Worthington specializes in steel processing, pressure cylinders, and engineered cabs for commercial markets. In Q2, the company reported revenues of $317.9 million, which remained flat year-over-year. However, this result exceeded analysts' expectations by 5.6%. The company also beat EPS estimates and delivered a solid performance in adjusted operating income.

“We closed fiscal 2025 with a strong fourth quarter, delivering year-over-year and sequential growth in adjusted EBITDA, adjusted EPS and free cash flow,” said Joe Hayek, President and CEO of Worthington Enterprises. Since the earnings report, the stock has risen by 11.5%, currently trading at $67.05. Investors are closely watching whether this is a good time to buy.

Arrow Electronics (NYSE: ARW)

Arrow Electronics, which started as a single retail store, provides electronic components and enterprise computing solutions globally. In Q2, the company reported revenues of $7.58 billion, a 10% increase from the previous year. This outperformed analysts' expectations by 5.9%, with notable beats on EPS and ECS revenue estimates.

Despite the strong performance, the stock has remained relatively flat since the report, trading at $130.07. Investors are considering whether now is the right time to enter the market.

ESCO (NYSE: ESE)

ESCO, known for its communication systems used in "The Dark Knight," serves the aerospace, defense, and utility sectors. In Q2, the company reported revenues of $296.3 million, up 13.6% year-over-year. However, this fell short of analysts' expectations by 7%. The company also missed full-year revenue guidance.

While ESCO had the fastest revenue growth among its peers, its performance against analyst estimates was the weakest. Despite this, the stock has gained 2.6% since the results, currently trading at $195.29.

Enpro (NYSE: NPO)

Enpro, holding the Guinness World Record for creating the world's largest gasket, designs, manufactures, and sells machinery products across various industries. In Q2, the company reported revenues of $288.1 million, up 6% year-over-year, surpassing analysts' expectations by 1.9%.

However, the company faced challenges with full-year revenue guidance and EBITDA estimates. Enpro had the weakest full-year guidance update among its peers. The stock has risen by 5.8% since the report, currently trading at $227.49.

Timken (NYSE: TKR)

Timken, established after noticing the difficulty freight wagons had making sharp turns, provides industrial parts used across multiple sectors. In Q2, the company reported revenues of $1.17 billion, flat year-over-year. This beat analysts' expectations by 2.3%, with an impressive beat on EBITDA estimates.

However, full-year EPS guidance fell short of expectations. The stock has declined by 2.4% since the report, currently trading at $78.99.

Market Update

The Federal Reserve’s rate hikes in 2022 and 2023 have led to a decline in inflation, bringing it closer to the 2% target. The economy has shown resilience, avoiding a recession despite higher interest rates. Recent rate cuts in September 2024 and November 2024 have contributed to strong stock market performance in 2024.

Donald Trump’s victory in the U.S. Presidential Election further boosted major indices to all-time highs. However, ongoing debates about the economy’s health, potential tariffs, and corporate tax cuts continue to create uncertainty for 2025.

For investors seeking growth opportunities, focusing on companies with strong fundamentals remains a key strategy. With the right approach, even in uncertain times, there are potential winners in the market.

5 Reasons Legacy CRM is Dying and No-Code is Rising

The Evolution of CRM: Why Legacy Systems Are Becoming Obsolete

Customer Relationship Management (CRM) software has long been a critical component of business operations, serving as the digital backbone for growth and customer engagement. However, as businesses evolve at an unprecedented pace, traditional CRM systems are increasingly unable to meet the demands of modern enterprises. In 2025, companies are not just looking for tools—they’re seeking agility, speed, and autonomy. This is where legacy CRM systems are falling short, paving the way for a new generation of AI-native, no-code platforms that are transforming the industry.

The Limitations of Legacy CRMs

Legacy CRM systems were developed in a different era, designed with rigid structures that require extensive implementation cycles and code-heavy customization. As businesses face constant changes—new markets, evolving regulations, and shifting customer expectations—these systems struggle to keep up. The result is prolonged deployment timelines, high costs, and limited flexibility.

In contrast, modern no-code platforms are built on composable architectures that prioritize speed, adaptability, and user empowerment. These platforms allow organizations to configure and scale solutions rapidly without relying on complex, developer-led processes. Companies across various industries, including manufacturing and financial services, are adopting these models to avoid delays and reduce costs.

AI and Automation: A New Standard

Artificial intelligence and automation have become essential components of modern business operations. Businesses now rely on AI to deliver personalized experiences, make data-driven decisions, and streamline workflows. However, many legacy CRM systems treat AI as an afterthought, often adding it as a separate feature rather than embedding it into the core platform.

Modern no-code platforms, on the other hand, are AI-native from the ground up. They leverage machine learning to automate tasks such as lead routing, customer behavior prediction, and campaign optimization. Organizations using these capabilities report significant improvements, including a 61% reduction in lead generation response times and higher conversion rates. By automating repetitive tasks, teams can focus more on strategic thinking and innovation.

The Cost of Complexity

Legacy CRM systems often come with hidden costs, including high developer overheads, third-party consulting fees, and expensive integrations that require ongoing maintenance. These expenses can quickly escalate, making the total cost of ownership (TCO) unsustainable for many organizations.

No-code platforms significantly reduce these costs, with companies reporting up to a 70% reduction in development expenses and average savings of over $300,000 on external consultancy fees. These platforms eliminate many of the barriers associated with traditional systems by enabling configuration and updates without requiring specialized technical knowledge. This shift allows organizations to achieve meaningful cost savings while maintaining high performance.

Business Teams Demand Control

Traditional CRM systems were often designed with IT departments in mind, requiring developer intervention for even minor changes. This creates bottlenecks and slows down innovation, particularly for departments like sales and marketing that need to move quickly and iterate on processes in real time.

No-code platforms are changing this dynamic by giving control directly to business users. With drag-and-drop interfaces, visual workflow designers, and intuitive configuration tools, non-technical staff can build and refine processes without going through IT. This decentralized approach fosters agility and enables organizations to respond to market shifts more effectively.

Unified Platforms Drive Agility

Legacy CRM systems often operate in silos, with disconnected systems for sales, marketing, service, and operations that struggle to communicate. This fragmented approach leads to inconsistent experiences and operational inefficiencies.

Modern no-code CRMs break down these barriers by unifying all functions within a single, cohesive platform. Shared data models, integrated workflows, and real-time visibility empower teams to collaborate seamlessly, respond faster to customer needs, and drive consistent outcomes. With AI embedded throughout, this unification is key to enabling true business agility—allowing organizations to align across departments and deliver smarter, more cohesive customer experiences.

The No-Code Future Is Here

The rise of no-code platforms marks a turning point in enterprise software. Businesses no longer need to rely on rigid, IT-managed systems that require months of development and a deep bench of engineers. Instead, they have access to tools that are fast, flexible, and accessible to all.

For organizations still tied to legacy CRM systems, the question is no longer if change is coming—it’s how quickly they can catch up. No-code isn’t just a trend; it’s a response to the urgent need for speed, adaptability, and user empowerment in today’s business environment. As the landscape continues to evolve, those who embrace these modern solutions will be better positioned to thrive in an increasingly competitive market.

5 Reasons Legacy CRM is Dying and No-Code is Rising

The Evolution of CRM: Why Legacy Systems Are Becoming Obsolete

Customer Relationship Management (CRM) software has long been a critical component of business operations, serving as the digital backbone for growth and customer engagement. However, as businesses evolve at an unprecedented pace, traditional CRM systems are increasingly unable to meet the demands of modern enterprises. In 2025, companies are not just looking for tools—they’re seeking agility, speed, and autonomy. This is where legacy CRM systems are falling short, paving the way for a new generation of AI-native, no-code platforms that are transforming the industry.

The Limitations of Legacy CRMs

Legacy CRM systems were developed in a different era, designed with rigid structures that require extensive implementation cycles and code-heavy customization. As businesses face constant changes—new markets, evolving regulations, and shifting customer expectations—these systems struggle to keep up. The result is prolonged deployment timelines, high costs, and limited flexibility.

In contrast, modern no-code platforms are built on composable architectures that prioritize speed, adaptability, and user empowerment. These platforms allow organizations to configure and scale solutions rapidly without relying on complex, developer-led processes. Companies across various industries, including manufacturing and financial services, are adopting these models to avoid delays and reduce costs.

AI and Automation: A New Standard

Artificial intelligence and automation have become essential components of modern business operations. Businesses now rely on AI to deliver personalized experiences, make data-driven decisions, and streamline workflows. However, many legacy CRM systems treat AI as an afterthought, often adding it as a separate feature rather than embedding it into the core platform.

Modern no-code platforms, on the other hand, are AI-native from the ground up. They leverage machine learning to automate tasks such as lead routing, customer behavior prediction, and campaign optimization. Organizations using these capabilities report significant improvements, including a 61% reduction in lead generation response times and higher conversion rates. By automating repetitive tasks, teams can focus more on strategic thinking and innovation.

The Cost of Complexity

Legacy CRM systems often come with hidden costs, including high developer overheads, third-party consulting fees, and expensive integrations that require ongoing maintenance. These expenses can quickly escalate, making the total cost of ownership (TCO) unsustainable for many organizations.

No-code platforms significantly reduce these costs, with companies reporting up to a 70% reduction in development expenses and average savings of over $300,000 on external consultancy fees. These platforms eliminate many of the barriers associated with traditional systems by enabling configuration and updates without requiring specialized technical knowledge. This shift allows organizations to achieve meaningful cost savings while maintaining high performance.

Business Teams Demand Control

Traditional CRM systems were often designed with IT departments in mind, requiring developer intervention for even minor changes. This creates bottlenecks and slows down innovation, particularly for departments like sales and marketing that need to move quickly and iterate on processes in real time.

No-code platforms are changing this dynamic by giving control directly to business users. With drag-and-drop interfaces, visual workflow designers, and intuitive configuration tools, non-technical staff can build and refine processes without going through IT. This decentralized approach fosters agility and enables organizations to respond to market shifts more effectively.

Unified Platforms Drive Agility

Legacy CRM systems often operate in silos, with disconnected systems for sales, marketing, service, and operations that struggle to communicate. This fragmented approach leads to inconsistent experiences and operational inefficiencies.

Modern no-code CRMs break down these barriers by unifying all functions within a single, cohesive platform. Shared data models, integrated workflows, and real-time visibility empower teams to collaborate seamlessly, respond faster to customer needs, and drive consistent outcomes. With AI embedded throughout, this unification is key to enabling true business agility—allowing organizations to align across departments and deliver smarter, more cohesive customer experiences.

The No-Code Future Is Here

The rise of no-code platforms marks a turning point in enterprise software. Businesses no longer need to rely on rigid, IT-managed systems that require months of development and a deep bench of engineers. Instead, they have access to tools that are fast, flexible, and accessible to all.

For organizations still tied to legacy CRM systems, the question is no longer if change is coming—it’s how quickly they can catch up. No-code isn’t just a trend; it’s a response to the urgent need for speed, adaptability, and user empowerment in today’s business environment. As the landscape continues to evolve, those who embrace these modern solutions will be better positioned to thrive in an increasingly competitive market.