Financial Data and Key Metrics Changes - Orders increased nearly 40%, building on a strong 16% growth from the previous year [6][23] - Revenue grew 6%, with adjusted EBIT margins expanding 190 basis points to 12.4% [6][22] - Adjusted EPS rose nearly 40%, exceeding guidance [6][23] - Record backlog increased by 20% to $18 billion, indicating strong demand visibility [25] Business Line Data and Key Metrics Changes - Organic revenue growth was 6%, with service growth at 9% year-over-year [22][24] - Segment margins increased, with Americas at 16.4%, EMEA at 13%, and APAC at 16.9% [25] - Demand was led by data center projects, with significant contributions from life sciences [23][31] Market Data and Key Metrics Changes - The Americas saw a 56% growth in orders, driven by large-scale data center projects [23] - EMEA grew 8%, with balanced growth in service and systems [24] - APAC orders increased 10%, with double-digit growth in systems [24] Company Strategy and Development Direction - The company is focusing on energy efficiency and decarbonization, particularly in data centers and advanced manufacturing [9][12] - A proprietary business system is being deployed to enhance operational efficiency and alignment across teams [15][16] - The strategy includes investing in technology and service-based solutions to meet customer needs in mission-critical environments [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to support customers and capitalize on market opportunities, particularly in data centers and life sciences [31][40] - The company anticipates continued organic growth and is raising full-year EPS guidance to approximately $4.70 per share, reflecting a 25% increase [27] Other Important Information - The company is actively working on portfolio optimization and has closed the disposition of a residential monitoring security system [90] - There is a focus on improving gross margins and reducing SG&A costs through operational efficiencies [96][97] Q&A Session Summary Question: Order strength and duration - Management confirmed record orders, with significant contributions from life sciences and data centers, indicating a healthy pipeline [31][32] Question: Backlog and organic growth - Management noted that while backlog is strong, not all larger orders are shippable within the next nine months, but organic growth is expected to strengthen over time [34] Question: Market evolution and order growth - Management highlighted broad-based growth in data centers and life sciences, with significant investments in new manufacturing environments [39][40] Question: North America margin trends - Management acknowledged a slight headwind in North America margins but expects improvement in the coming quarters [52][53] Question: Data center lead times - Management reported good progress in reducing lead times and emphasized the importance of predictable delivery in maintaining competitive advantage [76] Question: BMS growth and opportunities - Management characterized BMS growth as solid, with a strong backlog and pipeline of opportunities aligning with mission-critical strategies [80] Question: New product development and market sensitivity - Management discussed ongoing collaboration with major customers to innovate and prepare for future market demands [84][86] Question: Portfolio review and retail business - Management confirmed ongoing strategic review of the portfolio, focusing on creating shareholder value [88][90] Question: Long-term margin opportunities - Management sees potential for gross margin improvement through operational efficiencies and cost reductions [96][97] Question: Labor availability and service business - Management acknowledged tight labor markets but emphasized efforts to enhance productivity and leverage a larger technician base [99][100]