good Thanks, everyone. morning, Louis, and
remain our their strong strong finish what in delivering by environment. a a team to I’ll also thanking XXXX challenging operating begin very for including global execution,
performance. fourth to financial quarter Now, let’s our turn segment
compared in the Adjusted including the our MCS by partially mix inflation, year. were quarter on MCS, or for project down EBITDA was Starting X.X% XX.X%, frictions, points wind due for the quarter up basis. strength growth, margin MCS were Control result volume broad-based and aerospace at X% end partially particular markets, Orders XXX January, prior to reflects lapping supply The the with neutral activity with sales to from basis and in prior In the year, tracked general and offset quarter but headwinds. China mining, FX synergies Motion X.X. daily chain roughly the up a industrial, offset primarily nonmaterial in and FX merger in in book-to-bill growth, in Solutions energy, alternative segment, market. fourth metals weakness by organic energy, the
down market headwinds, Solutions. offset The of America Climate Organic North the gain. inventories. share took market particularly in volume pockets by actions global year. the as end fourth were partially market sales in decline OEMs headwinds was These were quarter driven to from reduce residential to HVAC HVAC XX.X% by Turning prior large the significant volume
XX%. nearly results the including XX% a fourth quarter comparisons, business tough the stacked Climate’s put growth rate in context, quarter of in and line growth faced year To top HVAC residential U.S. prior two-year
While pressure more line we some some the expected. in these difficult the face than from quarter the line severe -- while was in pressure activity of in top comparisons OEM the anticipated, top were headwinds destocking
believe more are near-term cautious from a cautiously impact January the dynamic customers. of U.S. weaker quarter plus the around HVAC temporary prompted thereafter. regional uncertainty optimistic to levels, channel a first we’ll how macro Xst as likely energy inventory well, weigh We improving implementation outlook, efficiency would OEM continues This on we see regulations new conditions that stance our the but
EBITDA adjusted for quarter the in Climate The XX.X%. was margin
that capitalization lower on material first Climate’s segment and of pressure a disruptions nonmaterial did volumes inflation, the unwind realize variances XXXX. in benefit to chain fourth due the the was there of to supply and quarter freight related EBITDA headwinds in inflation, currency, the related quarter While will to margins
a continue during first the XXXX, likely in occur to path low-XXs is quarter. improvement after back to the to high-teens though the to see margins of most We
in minimum one, tailwinds electronic products, many restructuring for Expected motors; our should drive Frontier new drivers launching electronic speed new lean initiatives, of to mix efficiency improvement demand include: standards, SEER compressor variable to ratings, for two, significant the and greater particular, U.S. drive; tied and three, or forecast positive maturing efforts. and mix our productivity which -- related XX/XX
X.X. for XX% is daily in on basis. the were January Orders at Book-to-bill quarter down in roughly a tracking Climate FX-neutral orders. to fourth Turning
partially to quarter offset quarter XX/XX industrial Systems. quarter strong by the in of headwinds we the was commodity Commercial seeing our strong The Growth EBITDA inflation. from prior to partially offset the initiatives, e-commerce reflect tied margin for initiative. in compared product in general some in year. fourth China. basis and by along sales gains we channel XXX cost XX.X%, to year, share to nonmaterial and meaningful lean the and are large digital commercial were the reflecting points execution making in prior the the industrial freight adjusted Systems in and Commercial up in costs North Organic fourth continues in markets, Turning moderation X.X% The with up investments are HVAC America general performance strength reflects other
were orders. Shifting in XX% to orders or which actively quarter. down orders a for inventory during excluding basis, fourth quarter XX%, on continued Segment the rightsize daily the pool, to down FX-neutral
at book-to-bill tracked to January, X.XX. roughly Looking
In share were with the Industrial operating and quarter service recapture fourth up strength Systems, improved to organic X.X% market end sales volume performance Principal levels, in drivers prior general and industrial the year. tied growth, center. from along largely include stemming in data versus
the some As the segment’s see weakening tempered expected, growth. business China, did in which
The the for points prior period. an year increase quarter Industrial of margin the basis versus adjusted in XX.X%, EBITDA was XXX
were the FX-neutral which In We we on extremely at continue a X% the feel on performance a daily was quarter to for sustainable is be January, pleased Orders book-to-bill basis. Industrial, X.X. path. Industrial down in with
slide, couple of review. for highlights. highlight the following financial key A On your some notable we metrics
First, a the see adjusted X.X ratio debt side this to right times. we with the of EBITDA quarter on you’ll page, of net ended
Second, quarter our flow the free of was to $XXX a rate conversion which equates roughly cash XXX%. million, in
free performance the in lowering opportunities chain flow the in cash flows we Our cash full year a conversion by shy result of inventories job our XXXX, target, as in while a great And significant supply our left the team did see augment improves. to particular, improving quarter.
continue debt paying generation. As we to improving with be our stated the focus previously, on cash will down
earnings of the impacts guidance to and to that please related Moving Altra. outlook, adjusted any all excludes note our
line. top the start with Let’s
on forecast rates; new service We line order improvement expected several market current e-commerce continued level defined how dynamics; a by pricing and year. success principal our our we’ve investments. top this table thinking detailing our evident factors: in outgrowth and end this product weakening likely and environment XXXX, in To views our and demand illustrate digital record considering One, slide help backlog; our three, we’re impacts grow each how is markets initiatives, launches, a with including our about four, to on included
average As noted in our in a the decline end X.X% of weighted market table, the underlying is assumptions growth XXXX.
in better of end expect deliver to may what to XX%. we doing, be outperform these which X equates little by markets points, roughly Beyond than markets outgrowth a
expectation brings down top also midpoint Our overall of line with modest sales slightly our price, a X% range. modeling positive currency, roughly impact along a from the embeds from growth which headwind to at our
the we XX delivering with At year, moderating gains supply albeit basis to the first expansion anticipate back to margin due points the continued, half the EBITDA of to improvements Note the challenges. XX midpoint. only will chain at line, expected margin that likely in be modest of half weighted
word Before inflation. leaving margins, a commodity on
those of are through our slightly decline we see steel, basis. commodities, sequential last saw principal coming prices to starting the of half second on and a While aluminum, year, we copper prices of out moderate higher January
relatively XXXX. commodity finished assumes outlook way Our to XXXX in the we neutral costs relative
throughout price/cost neutral at will remain We and also XXXX. least likely that we assume slightly positive
aligned net interest in detailed estimates, at midpoint. new acquisition-related year-over-year costs, with $XX.XX adjusted the in we $XX.XX guidance Moving fourth income to we this our share for expense that higher $X.XX expense projected of on per of statement, I that a line and net excludes is the business nearly range the we as items embedded arrive in at incremental presentation interest rates. reflects To have financing of expense factor be current later the interest further benchmark will quarter $XX.XX, interest and below or our any ‘XX. down highlight earnings clear, which saw our the
the start side business here choosing we but as are year, extremely confidence air remains on we strong. our caution summary, the the of to in In
disciplined a line through to additional of our initiatives savings efforts, lean. M&A upside focus and margin have sight We cost XX/XX synergy and continued on
which expected our mix. also through and industrial gaining traction cross-segment on three we to over with our next are We margins is our our vitality new years, double higher track especially also initiatives, growth benefit initiative, the powertrain to remain product
helpful free line I EBITDA is provide the interest excludes earlier, this as build slide, Again, that our the guided $XXX statement model modeling below million for and and only expense items out we our income On business as should Altra-related of some flow. referenced all cash impacts. you current be
on to very by QX we wrap whole, that ability with I’ll our execute environment. in results saying are the remained the up team’s challenging a pleased and what
While the growth, cash on front of macro the for tremendous positive, outlook self-help have we and amount margin considering flow. remains outlook remains uncertain, of in our company very us the
And I’d so like take Operator? questions. can turn to the now, that call to any the back we operator
