in disciplined for Louis, execution global hard I'd our also good team morning, Thanks, their work and everyone. like the and thank to quarter.
automation, defense healthy and and partially sales Now in The of let's performance segment.
Starting decline operating which and offset and were pressure end by reflects expectations. weakness discrete sales the positive and the a in AMC, the X.X% organic positive food quarter period prior in the modestly ahead to strength beverage after review but continued net markets. is industrial growth year basis, in market. Automation noteworthy and The with of Control, that our down in was aerospace or by on in a our beverage sustained general food an fourth inflection Motion
showed longer shorter delivery orders the quite half back into levels of level the strong, but or cycle weighted 'XX normal dates automation, have remains orders improvement, those Within discrete we that sequential XXXX. cycle a the more to remained of while business And would consider XXXX below demand.
on EBITDA margin a adjusted AMC's mix, particularly as in which expectations AMC discrete quarter was basis. daily weaker the year within larger-than-expected automation on in as well our in fourth below versus were quarter pressures. prior was XX.X%, Orders up X.X% the exchange foreign
a in quarter positive row Third orders. of
significantly Book-to-Bill was saw AMC fourth in X.XX, favorable XXXX. the more quarter the which we for X.XX exiting is than
remarks. to quarters, of increased in inflect were this over which outlook momentum by We the to orders have on confidence we outlook assumes business starts on in order positive current is this year. poised the elaborate past are growth, been half the I'll X% sales encouraged us my gives X which for up January seeing in to AMC's basis. AMC a about daily our AMC occur back later positive
a off-highway versus and us basis. Net and an in what particular fourth of quarter. mining, in also offset synergies We down or that machinery points to organic couple year by outgrowth Industrial estimate metals energy market partially IPS. industrial prior Powertrain weakness of sales contribute Solutions, the helping markets. general strength the and a marine down were marketing to in market. the Turning quarter in X.X% in reflects The in on continued cross remains the outperform decline
of excluding in pushouts of notably December we sales markets. in off-highway outgrowth our market end we were its have customer below ahead and as related. impact most incremental slightly these that addition fourth more of timing been a saw number sales the due continued Despite would expectations, IPS quarter. Notably, momentum, this last-minute in to end-of-year target pushouts, the late see a That IPS weakness said, machinery for significant dynamic midpoint quarter to the
IPS prior was was further margin markets. synergies. what XXX basis orders daily organic in for year, on by were ] remained down nearly versus and Adjusted were up in aided EBITDA we X% Orders in quarter, a points basis the believe [ mainly a In up the the nearly XX%, X%. outgrowth January, in fourth in daily Book-to-bill quarter on basis quarter fourth in reflects IPS up X.X.
expectations. HVAC an Efficiency quarter was by versus which pool result North significant fourth market, commercial was growth commercial below Power up the and in HVAC sales in in commercial and the China in outside Net or in our in extent, PES. America. the general Solutions to The residential strong and HVAC on basis, especially were Turning weakness America, prior reflects in to a year lesser offset organic which slightly North
last can serve we AXL ramping progress ahead to regulatory our shared it the we intention residential our so our quarter, make HVAC year-end in significant As customers was transition. capacity of
on progress low the great are the to made We XX front, growth quarter. us sales pleased see which for our customers the allowed business support HVAC deliver this and team PES to in residential
Activity these third-party market pressures but where Let in a especially and here China the so America me on notably into XXXX. with general gained weakness primary our incremental This characteristics to quarter. ISM. slowed also we not in degree the general business markets, some weak, to we with the market based provide motors Europe sells market incremental on of in December, data, has Despite purpose the industrial we and experienced part correlate general range market commercial were tends share been many of a in North in expecting. color
FX-related on which was we margin XX.X%, segment the and PES prioritize volumes, below to margin urgency adjusted larger-than-expected labor temporarily Relative ahead customers ramping higher lower The in FX and the efficiencies HVAC of temporary labor EBITDA pressure to as was down transition. refrigerant year, serve margins. quarter Turning expectation PES residential with headwinds on was capacity our some to prior for volumes, lower our best costs. the
daily orders. and fourth to some down. in were in in for general in quarter orders over up build a up were commercial XX% in were to X% the Orders quarter, resi resi PES commercial HVAC HVAC backlog Shifting Notably, on us the leading orders basis. while
stronger the exiting quarter AMC, X.XX. was Similar ago for in for the a what in a position exiting this was discussed year business versus Book-to-bill to it where year is PES XXXX. I
for orders Daily were in down PES January X.X%.
the HVAC weighed expected While the AXL ahead furnace. by year to strength January absent on which forward modest decline view January have were which was January is large actually a also we residential transition, in due the favorably, in being in in roughly of been up year in of strength down lapping we given flat. XXXX, order month, activity would the orders a saw monthly that X% AXL We project of transition. orders -- this degree end pulled
highlight quarter will additional of by roughly net quarter $XXX this plan. repaid we $X.XX approximately we expect slide, ended and A total billion. the for million financial of Notably, of some debt On total this with X% gross we billion the right updates rate of debt see reference. year. you the the $X.XX which on ended of ahead debt the following We approximately representing for your have our page, of further the side debt repaid the in debt approximately of outstanding, year, note, to of variable million year $XXX end $XXX our we with million, and
which our Adjusted majority the to free flow cash reduction. was in free million, continue flow primarily debt deployed of was We reduction cash to to XXXX. in plan the quarter $XXX.X deploying debt
outlook. the to Turning
on principal sales. side the you me our through which the slide. walk Starting with XXXX specified are points, table this of right guidance Let in
just Our were XXXX sales billion. $X over
that in assumes bridges factoring $X.XX Our XXXX and we April XXXX, organic roughly ] sales Industrial a from flat level sales, Excluding similar level modest [ to guidance midpoint headwind the FX. sold of growth XXXX billion. business of go-forward a a
modest flat offset organic by assumption end Our pressure about of market point X outgrowth. embeds
be to first weighted back X% level. sales at expect above half slightly we the roughly half Lastly,
XXXX book-to-bill XXXX. this X.XX entering versus X.X For enter year we reference, and was our as
So we we do are believe positioned better grow. a year later, to
which perspective, of performance, improvement EBITDA the excluding is initiatives, $XX the of is net plus million principal for a year, profit productivity margin our margin drivers The roughly $XX Industrial a incremental in business. million headwind. an point our X From are compared synergies the FX XX% bridge target to XXXX about
XX%, through EBITDA margins we and progress with productivity target the expect on Day. approaches as aligned synergy We We realization, AMC. presented in year improve assume the volume, the to quarter our cost we last mix fourth at Investor margin
million, benefit XXXX. the expense We're further EPS progress to our alone this [ the paying in items. relevant This from reflecting below about worth we anticipated modeling lower meaningful just debt of wide during debt ] interest worth is expect reduction also $XX sharing and $X.XX down Notably, over year. growth XXXX
also see effective expected benefits case This midterm XX%. tax to will our is is to base year. prior the down our due assumptions You XX.X%, from expect be that now of identifiable tax we in rate
per assumptions in in While we opportunities working and now, $X.XX midpoint, more growth year. this should beyond. XXXX guidance of of effective tax investors the to diluted approximately estimate delivers on $XX.XX. EPS rate $XX EPS midpoint XX% a are our lower adjusted to for At share and permanently a per These XX% outlook an range earnings prior rate share assume result versus adjusted the
expect cash roughly representing this We free approximately XX% free million flow adjusted a flow margin. year, be $XXX cash to
million which growth achieved and trade the $XX working cash of to synergies, interest. flow improvements, cash capital free a includes XXXX expect inventory, be combination restructuring We a over cash higher EBITDA, in particularly benefit lower from through lower
$X volumes billion relative to cash rate of target expectations. below $XXX is prior to XXXX. to our We due approximately annual prior run expect This flow million our exiting be lower
to net prioritized flow as year down Xx reduce exiting free cash towards all will However, available remain debt. our on be track roughly paying leverage we to this
guidance as potential slide, immaterial, tariffs. China of Finally, noted impacts of bottom outlook. the this The our impacts does not Mexico in or of the while at Canada the consider considered are recently tariffs, implemented our
adjusted on momentum, sequential gains to perspective, with the debt for I associated with improvement further positive provide EBITDA be the year. our orders quarter expect reduction. and we line that slide, year top building this thereafter for ongoing flag low synergy from performance first EPS margin the the the and full more sales and tied first margin our a and by point anticipated benefit for quarter segment specific we revenue expectations to On for would
I like measured As my I to optimistic remaining approach prepared up wrap are guidance. our would we reiterate entering cautiously comments, XXXX, to that are while in we
first half We current discussed, set half are backlog versus stronger expected conditions see our current range. as characteristics. market second using guidance order to trends a on based And the and we
not our metrics. XXXX. entering industrial this profitably we our general made in book-to-bill to stronger XXXX sustained with energized we by in have the by ISM said, prior and progress business That see we transforming year, strength are by the Although potential quite are our portfolio ability we than are a outgrow our markets teams and seeing the still in
we with to are ready operator, now that, And questions. take
