Financial Data and Key Metrics Changes - The company raised its full year guidance on revenue, adjusted EBITDA, and adjusted EPS due to a strong start in the first half of the year [6][28] - Adjusted EBITDA for the second quarter was $509 million, with an adjusted EBITDA margin of 27%, reflecting a year-over-year decline primarily due to organic volume declines and the impact of recently acquired businesses [15][21] - Adjusted earnings per share for the quarter was $0.80, which is up 18% on a two-year stack [17] Business Line Data and Key Metrics Changes - In the ITS segment, second quarter orders were up 7% year over year, with organic order growth in the low single digits [22] - The PSC segment saw orders increase by 13% year over year, with revenue up 17% largely driven by M&A [25][26] - Aftermarket revenue accounted for 37% of total revenue, up 100 basis points year over year [15] Market Data and Key Metrics Changes - Orders in the Americas were up high teens, EMEA up high single digits, and Asia Pacific up low double digits [23] - Organic order growth in China was noted, reflecting the effectiveness of demand generation initiatives [23] Company Strategy and Development Direction - The company continues to focus on sustainability and innovation, having been ranked number one in North America and globally in its industry on the Dow Jones sustainability indices [8] - The capital allocation strategy prioritizes M&A, with 11 transactions closed this year, totaling over $200 million in annualized revenue [10][20] - The company aims to leverage its strong balance sheet to strategically deploy capital and drive value for shareholders [31] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full year outlook, supported by a book-to-bill ratio of 1.06 and a total backlog increase of 16% since 2024 [6] - The macro environment remains dynamic, but business conditions are stable, with positive signs in internal indicators [30] - Management remains cautious about the volume side, continuing to adopt a precautionary approach in guidance [94] Other Important Information - The company recorded non-cash goodwill and asset impairments related to the High Pressure Solutions business and ILC Dover, but these adjustments did not affect adjusted earnings [17][19] - Total company liquidity is currently $3.9 billion, underscoring the strength of the balance sheet [20] Q&A Session Summary Question: Demand cadence in the back half of the year - Management noted a stable continuation of demand through the second quarter, with a good backlog setting up for the second half [38] Question: Margins in the back half of the year - Management indicated that margin improvement is expected due to seasonality and productivity initiatives [40][42] Question: Phasing of sales and EBITDA in the second half - Management confirmed that the phasing of revenue and EBITDA is consistent with prior guidance, expecting a better second half compared to the first [46][47] Question: Legacy Gardner Denver Medical business performance - Management reported good momentum in the fluid handling side of the business, particularly in cancer research [79] Question: Long-term growth algorithm for compressors - Management reassured that the long-term growth outlook remains unchanged, with expectations for stable growth despite fluctuations in large projects [106]