Financial Performance - Net sales reached $884 million[14], with a core sales decline of 0.6% year-over-year[15] - Adjusted EBITDA was $199 million[16], representing a 22.5% adjusted EBITDA margin[17] - Adjusted earnings per share (EPS) grew by 8.3% year-over-year to $0.39[18] - Gross margin stood at 40.8%, marking the fifth consecutive quarter above 40%[20] Segment Performance - Power Transmission net sales were $550 million[27], with core sales growth of 0.6% year-over-year and an adjusted EBITDA margin of 22.3%[23], a decrease of 50 bps year-over-year[23] - Fluid Power net sales were $334 million[25], with a core sales decline of 2.5% year-over-year and an adjusted EBITDA margin of 22.9%[25], an increase of 10 bps year-over-year[28] Regional Performance - Greater China experienced core revenue growth of 0.6%[30], while East Asia & India grew by 4.4%[30] - North America and EMEA both saw core revenue declines of 1.3%[30], and South America declined by 2.9%[30] Capital Efficiency and Cash Flow - Free cash flow was $74 million[39], showing an 11% year-over-year improvement[42] - Net leverage improved to 2.2x[41] - LTM free cash flow conversion increased to 79.9%[92] Guidance - The company raised its adjusted EBITDA midpoint by $15 million and adjusted EPS by $0.04[12] - Core revenue growth outlook is maintained at 0.5% to 2.5%[43] - Adjusted EBITDA is projected between $765 million and $795 million[43] - Adjusted EPS is expected to be in the range of $1.44 to $1.52[43]