Financial Data and Key Metrics Changes - The company reported revenue of $613 million for the second quarter, reflecting a 10% increase compared to the prior year and a 6% organic growth [18] - Adjusted EBITDA margin improved to 21.4%, up 280 basis points year-over-year [18] - Adjusted diluted earnings per share (EPS) was $2.85, up 45% and exceeded the high end of prior guidance [19] Business Line Data and Key Metrics Changes - **Electronics Products Segment**: Sales increased by 10% year-over-year, with a 4% organic growth. Passive products saw a 14% organic growth, while semiconductor products declined by 5% [21] - **Transportation Products Segment**: Sales grew by 6%, with 4% organic growth. Passenger car sales increased by 3% organically across North America, Europe, and China [22] - **Industrial Products Segment**: Sales grew by 17% organically, driven by strong performance in grid storage, renewable energy, data centers, and HVAC [23] Market Data and Key Metrics Changes - The company experienced a strong backlog and bookings, with a book-to-bill ratio tracking above one [9] - The company expects continued growth momentum into the third quarter, with projected sales between $610 million and $630 million [26] Company Strategy and Development Direction - The company is focusing on enhancing its capabilities in higher voltage and higher energy density applications to meet customer demands [10] - There is a strategic priority to provide more complete solutions for a broader set of customers, leveraging the company's unique product portfolio [12] - The company is also working on operational excellence to enhance long-term profitability [15] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on growth opportunities and maintain strong execution [16] - The management noted improved visibility in end markets compared to three to six months ago, indicating a more stable demand environment [93] Other Important Information - The company generated $82 million in operating cash flow and $73 million in free cash flow during the quarter, with a strong cash position of $685 million [20] - The company plans to prioritize cash flow for organic investments and strategic acquisitions while returning capital to shareholders through dividends and share buybacks [21] Q&A Session Summary Question: Margin upside in Transportation and Industrial segments - Management discussed the focus on operational excellence and diversifying the portfolio to improve margins in the Transportation segment [33][34] Question: Clarification on tariff timing impacts - Management clarified that the timing of price realization versus incurred costs resulted in a $0.15 benefit in Q2 that would reverse in Q3 [40] Question: Performance in the Industrial segment - Management expressed excitement about the Industrial segment's growth, particularly in energy storage and data centers [42][43] Question: Data center exposure and growth - Management indicated that data center solutions are becoming increasingly important and are expected to grow significantly [50][51] Question: Visibility and demand trends - Management noted improved visibility and stability in end markets compared to previous months, expecting growth across all segments [93][94]