everyone. Thank morning, and you, Fréd, good
from takeaways Here second two results. our the key quarter are financial
revenue industry by and growth and double-digit reported driven we First, higher outgrowth organic production China. Europe in
suppliers. and margin coming higher offsetting our costs strong, Second, by material revenue input solid was on conversion performance inflation our from of driven cost higher recoveries customer more than
spin-off Slide XX to for for QX the Let's turn at revenue QX. a for year-over-year year's our revenue PHINIA over was billion. just of walk last Pro $X forma look
You of can X% average our $XX see U.S. XX% can in organic the increase Then about year-over-year. approximately you compares see million. dollar decrease to drove a in that market increase production. the revenue weighted revenue XX% or strengthening an That approximately year-over-year in
Santroll, Finally, QX. added under $XX million SSE revenue sum of in Rhombus the to of year-over-year. The was just all revenue billion of acquisitions this $X.X and
to Slide XX. Turning
quarter. see and for cash performance our You earnings can flow the
margin. was of exchange forma impact Our pro adjusted M&A, income adjusted million On million the increased $XXX X.X% $XXX impact That higher on ago. income adjusted million year the forma excluding to a $XXX from income foreign pro basis, of second to operating sales. compares or operating a a operating $XXX of equating and XX.X% million of quarter comparable
XX% The biggest converted our additional positive approximately driver on sales. we of this was performance that
addition, In were net suppliers in the recoveries second $XX an of quarter, our year-over-year. from inflation customer material our tailwind million cost
the quarter, incurring recall cost way of we very You'll that that to in little recoveries headwind. customer offset last inflation was supplier were
jump-off individual improved for recovered customers by when QX, Because at quarter. adjusted of inflation we EPS should go-forward performance, compared negotiated you and total in the first the looking number entirely adjusted our operating QX increase half you margin any settlements Pro performance, over for forma of that both essentially and inflation by under-recovered spin-off contemplated the ago, of In a QX, with really income. be year in the QX. PHINIA, not a QX driven our cost almost to about we think in material for our our recoveries $X.XX
Turning to free cash flow.
our quarter, collected. was growth capital the support due during to our increasing not recoveries related capital quarter the to and and customer the Excluding spending late cash $XX higher we second onetime flow yet have that to in our free costs, in eProducts, booked sequentially a working increased usage revenue million but
Slide on let's at look XX. full outlook year Now a take our
the Pat our those year discontinued spin-off reflected period particular full Street mentioned, PHINIA as consensus. segments is importantly and prior results many not of of as First, the within of which the reflects treats the now guidance in estimates external operations,
currencies. Starting foreign with
being the assumes of driver guidance This now in our from an headwind headwind change is guidance currencies yuan expected with $XX versus in Our the million largest outlook. prior revenue Chinese our a of year full of million. $XXX the weaker
of The reflecting is XX% to our we of guidance by organic Second, higher outlook, to XX% production growth stronger to first XX%. volumes. predominantly our half year-over-year driven approximately the XX% expect prior compared increase
inflation for assumption increased cost modestly. our has from also our However, recoveries customers
deliver we're As XXXX. eProduct generated billion between billion it XXXX, to billion $X.X which the revenue, in in $X.X is approximately from $X.X and relates to we expecting up
you the this of As adjusted our two things. we've outlook prior end versus related high primarily to see, guidance can
a experiencing slower-than-anticipated packs we're increasing pack First, vehicle battery our battery our commercial production. is rapidly. Demand ramp-up in for
support installation we little However, has progressed slowly more to capacity XXXX demand in than our planned. a that
American North production. customer in seeing EV a on program we're Second, lower already currently is that volumes
Finally, the revenue billion. of we're range approximately projecting billion of SSE XXXX on to $XX.X expected to in billion guidance to Rhombus $XX.X to expectations, to $XX.X Santroll, which prior $XX XXXX acquisitions compares revenue. million $XX.X these Based our total and add the are billion,
Let's switch to margin.
margin our XXXX to X.X%, compares X.X%. our the of range year which to continue to be margin to in operating We expect adjusted of full X.X%
year-over-year net Looking of customer impact is inflation recoveries, the inflationary margin versus current be XX basis at cost basis the are net expectations impact to year point to full likely a of material our XX cost point that headwind. on
our continues in securing As our million by full to eProduct-related our $XX guidance investing $XX relates to ongoing a eProduct business electrified more R&D, wins, continuing to portfolio. to forward anticipate million it R&D. we're XXXX to success With increase year lean in support new R&D
of per margin increase range $X.XX Excluding outlook in this incrementals Based EPS business contemplates related to the the revenue the this in XXXX planned our operations eProduct adjusted R&D, $X.XX continuing margin share. expecting year full on of impact outlook, in we're year the full and diluted mid-teens. from delivering
Turning to flow. cash free
full to operations $XXX free million of the XXXX to in $XXX continue of our million onetime costs excluding that spin-off million expect year, to continuing range cash flow cash PHINIA. That's related from we'll in We the $XXX deliver for the outlook. approximately
Turning to Slide XX.
revenue cost flat customer expect continue a full in slightly inflation for first with first the revenue compared second sequential ePropulsion to year quarter QX. pleased an were outlook see of suppliers. you Despite as eR&D from We our in update recovery ePropulsion modestly see for positive quarter. the can revenue, quarter improvement lower second roughly a slide material sequentially the The half we benefited and that margins higher improved segment, to margin You our segment. on from segment
program towards in launches NEV second revenue volume the ramp is up market. growth and ePropulsion weighted half heavily Chinese
manufacturers on why the of largest the country. Chinese At NEV side is critical supply electrification of quite currently As right the element to global base customer diversity many China. be ultimately in we the with our a see leading world and XX doesn't of customer NEV and of is diverse successful plug-in of in we apply vehicles This have it vehicle of business manufacturers high-voltage will can as BorgWarner, electric you slide, we seven eProduct only the hybrids. light the believe
second XX.X% our we on financial of on incremental operating adjusted line So approximately growth margin remarks. financial conversion generated a delivered XX% achieved revenue, organic results quarter EPS. me adjusted summarize were bottom my Overall, revenue let all-in based year-over-year. We year-over-year growth XX% strong. strong and We and
half eProducts to as top As eProduct organic line beyond, we continue to support look the growth our to and ahead to improved drive to to to of in the the our expect growth second deliver we of we investments and XXXX growth, portfolio. profitable profitability necessary our continue leverage long-term strong make
to With that, turn to I'd like call over the back Pat.
