their I'd Louis, Thanks, hard morning, our good everyone. delivered our work and like and which that global execution, disciplined targets for exceeded team to for results thank the also quarter.
Altra the year. As end quarter a at we first reminder, the acquisition of last closed
that IPS basis lapped operating longer when so need AMC segments. we discussing current consider our having And anniversary, period a pro and to X-year no forma performance on
markets, strength in better we offset lingering than The prior Now results at end an is were by which or global automation discrete to OEMs. aerospace, segment. the in Automation down was Starting operating performance on basis, by let's and than quarter medical Control review performance our the which weakness XX% with slightly expected. more AMC, reflect second factory sales and year center the data organic net Motion had
pro reflects all quarter segment, the X% factory see outside first improvement this second of which we in perspective, an sales down divisions approximately our automation. of smooths performance a our and out were Notably, lumpiness forma X.X%. of sequential growth From in half some organic
and below XX.X% Adjusted quarter our slightly EBITDA margin weaker the mix. expectations on was in
the mix a volumes above of average daily on in declines. Orders volume were XX% impact generally versus when these a see notable inflection factory Given prior drop. X in with for AMC runs unfavorable discrete fleet after segment, second year automation this we an lower the in basis, quarter quarters which up margins
continued Book-to-bill in and in quarter of healthy at the medical rates late we turn, longer markets the factory OEM our cycle pace capital markets with a measured end more quarter, requested combined in timing continued certain customers. industrial shorter-cycle X.XX. customers in overall XXXX that But forecasting was and for these end delivery at projects experience AMC and XXXX. in aerospace, center majority and early for data landing now In dates booking to slower or recovery we investment the second caution are This of means with ramp-ups automation XXXX.
were the second are our for XXXX. July gaining further again, prior XX% AMC quarter these with but up recovery pace basis, on dates the half, orders early expectations, versus of evidence into organic weighted 'XX anticipated as a fourth we daily delivery orders that providing to tempered momentum or roughly are on
AMC for more share impacts this call. will later the how outlook color on in our performance I
were third and net momentum stimulus and The was slightly or down down which to results the in than second Net Turning prior strength mega in construction by sales forma perspective, and basis, of in in were move X.X%, organic industrial the Solutions X.X% investments quarter agriculture, the to gaining on mining year is pro we weakness Industrial into that we a IPS. markets. quarter but and Powertrain From half. we here objects, sales an second organic generation are first as expectation. metals reflect power believe equipment half our general better driven
synergy the headwinds EBITDA of of tailwind in agriculture volumes. a better-than-anticipated power X momentum were construction reflects well to across declines. points versus rate mentioned a year. was quarter continued margin above after the offset mix And half. expectations Performance as was appears from which couple Orders IPS into as Sales of gen lower on and second broad-based in equipment Adjusted the and the prior our previously, and signal and strength strong to XXX performance I synergies by general to sluggishness and great were growth worth as quarter, industrial. daily strong second marine XX.X%, of quarter. particular in This a weakness partially going much in points basis up net basis quarters reflects realization, see flat in
orders Book-to-bill daily X.XX. organic in X.X%. were In the basis was second July, our quarter up on
also of an pleased us only positive half confidence inflection IPS, further of IPS' end evidence second but growth. is peer as its not macro are suggest This indicators for to short-cycle more and marks provides industrial in outlook a are gives orders We that ISM see our performance our IPS number outperforming cautious considering certain end intra-quarter that sluggish. reports such markets,
or to XX.X% headwinds and European on the in Power of expectations. the down Asia Now Solutions, and In PES. Efficiency America Pacific which basis, the second Organic HVAC residential quarter the in quarter, HVAC channel destocking and by weaker North be business commercial the underlying businesses. demand continued impacted second in market year ahead turning sales to is our prior organic the were to an
in HVAC America Commercial a spot. be to North continued bright
As faced. pace HVAC when we entered were cautious headwinds we the our we in given second in the residential quarter, commented recovery we estimated of persistent
quarter, than moved past of we timing our we've that destocking As was the demand now expectations. pervasive past and we anticipated, second cautiously of we we quarter of slightly seen are the have ahead X.X years. better ended progress we inventory over the headwinds optimistic Overall, most the through the
XX.X%, margin begin be adjusted improve. The the quarter margins mix. year half down back from the lower stronger can volumes weaker to as was our We consistent with expectation, on will EBITDA the prior the volumes in in and but expect for PES PES
low-single large only XX% down the but primarily North period. decline orders. a business the in to daily North outside positive and pool our booked the order in HVAC America. residential The X%, Orders sign digits blanket year America momentum Climate down organic orders in daily for quarter second prior were weakness legacy commercial PES order on in business Shifting a adjusted basis, the for excluding quarter up an were in HVAC. reflects of Notably, in
residential believe to residential a the HVAC inventories, channel HVAC continues HVAC While this have are elevated that volumes slightly. certain encouraging, we underlying particularly is of at distributors in and down portion
X.XX. for PES was Book-to-bill in the quarter
reflect but outside improving versus X% HVAC us we North keeping Daily confident continuing in up to weakness prior residential America. that in commercial some seeing HVAC end July are also were markets orders year,
see On highlight the you'll additional million $XXX financial net $XXX page, gross we with declined We ended your right quarter we following Industrial of million. debt of Systems repaid which debt the debt Notably, reference. approximately on total sale. updates slide, million net approximately some the and $X.X for of includes in side the Net of quarter, billion. approximately the proceeds from debt by $X.XX this
our free Adjusted cash majority $XXX cash was to prior free in debt cash consistent plans, we flow adjusted deploy quarter $XXX.X track reduction. and flow this flow to are year, the we million, with the of this to million on of free deliver expect
a pay approximately in our $XXX we XXXX. down As of are on million track to debt result,
Now moving to the outlook.
detailed side our are changed. included specific several slide. the the for our has to in We disclosure of on adjustments what making are Also items this with table table indications below-the-line which guidance standard XXXX, in is the right-hand on for
As for sales [ the months results a to Industrial equates million include $XXX reminder, million and $XX our which of sold ] the business adjusted EBITDA. recently approximately enterprise X first in the Systems in year,
We approximately our are by $XX reducing sales outlook million.
year As we HVAC in outlook year, we full and the called rebound for that both entered a residential automation. commented our factory
even stages a finally today, seeing bit early commented saw forward residential the rebound pull quarter. the are I've we demand a HVAC As of of and in in
Control ramp our second softer a Automation Motion segment. and expect now we half However, in
commented a businesses we a when within of to quarters. our funnel and in as building surge fourth activity first reported were we longer-cycle quarter, started the strong third we and AMC seeing specifically, certain backlog More
we second into However, and early later XXXX orders now the shifting through early XXXX. or into the as quarter new quarter, dates are delivery move seeing on we third
in strong see impact funnel to book-to-bill year outlook. X growing timing, purely but see activity this continue it is as above we orders, an current AMC, we that having Given our on and
EBITDA Our and to below is slightly roughly X.X which our sales adjusted mix. prior point due margin outlook for the weaker outlook is lower volumes XX.X%,
prior rate on along line, with the Below million, cash year interest versus impact our now expected is $X SOFR in for upward forecast higher the our million impact expense. or free and cadence estimate revisions the of $XXX the of latest associated the flow reflecting expense interest
expectations also rate. depreciation, providing are We our for latest and amortization tax effective
range. changes was the EPS $X.XX, these by our prior low of adjusted impact of which of our end the diluted reduces range $X.XX net midpoint The guidance to
making versus for our the to we year reduction The last we new X.X% Our roughly compares changes XXXX which guidance a of range $X.XX, $X.XX EPS EPS adjusted full in range are now EBITDA diluted $XX.XX. provided and year are is a reduction X% to quarter. midpoint full prior to guidance $X.XX in today
of we of approximately cash expect roughly continue once our million to Finally, free of year. debt we to flow year. again, plan million And pay majority the to this cash use $XXX $XXX this adjusted this down to be the end by
is reductions. expectation especially our lower our despite million the of opportunities, Our working of are free to flow due capital cash and year, updated late to ability execute to projected in teams improvement maintain $XXX for inventory this QX expected EBITDA in QX, throughout area
specific pro that rates for On calculated the this XXXX EBITDA for results. adjusted margin for IPS growth we more for quarter segment, next and XXXX the slide, year. provide the are and our by versus guided and revenue full Note sales forma third sales performance AMC expectations on
Starting with AMC.
margin to to For third quarter, adjusted EBITDA XX%. sales expect $XXX we in be be million approximately approximately
versus stated expect business, the EBITDA in XXXX year-over-year with of low target to the that digits, longer the reflecting flat, good the weaker feel softer AMC outlook.
Shifting ramp. half prior be earlier, For orders, be With second up the AMC approximately low-single said, our to AMC's the expect now about prior as XX%, we adjusted IPS. reduction range, quarter. of a a year, full margin cycle volume now part our reflecting to sales XX% down we of We expectations end
to we quarter, be million third approximately EBITDA For be approximately expect and sales $XXX adjusted to margin XX%.
flat, to For synergies. that the continue IPS building expect is to we healthy momentum sales the be in tied year, this full business sales to roughly showing
overall XX%, XXXX synergies continue tailwinds approximately adjusted nice and margin reflecting to performance. business IPS' from to EBITDA We expect be
Finally, PES.
EBITDA expect be margin XX%. we to sales $XXX million quarter, be approximately and approximately third adjusted to For
rate, margins full target to weaker continue lower to year, prior businesses. decline now we end mid-single-digit the motors at sales be near expect the we For but XX.X%, a range, expect to in the mix approximately reflecting our of
to annual in robust margin think QX consider cash clear next While a over dramatic our where and it term, the a and the years equity we margins, billion free we margins to flow, of gross debt the enable slower Rexnord, things doing are it's we inorganic we're path in of XX% a our growth, EBITDA to in XX% is that with context taking organic adjusted gross reinforces important fund Regal expect disappointing AMC, half path that I for which shift ramp structure capital cash couple longer quartile top seeing $X XX% to to are along our from not broader mention to a results to many second growth. accelerate
that in that of and Moving there. telling Day focus XX look to many on seeing our reminder, be Investor Slide we York primary growth upcoming the of story City, to will forward XX. A New you September
ready we questions. that, with And to operator, are take
