and morning. Chris, Thanks, good
accomplishments slide. objectives our of continued XXXX into second and our years we to I meaningful beyond. Turning half X the back meet to continuing and during how would focus during intensity quarter. We're journey intend next highlight our and and the are like make progress with quarter the each to transformation to
our bringing $XXX approximately achieved rate of approximately We aggregate quarter, savings program run since pretax cost million inception. the $X.X to savings in billion
to performance strong On year-to-date Our basis, execution. strategic are by sourcing represents a we plan, tracking actions. driven
that generated am I gross on demand guidance. in diligently our savings counter are the cost in say We we to the expansion half backdrop. capturing the More the second pleased first efficiencies to later. support soft included margin half
continue of of by XXXX run of of the the rate savings billion and pretax by to end target savings $X run billion We $X.X rate pretax year-end XXXX.
track We [ both targets. to are ] on achieve
we As operations areas biggest the reduction. strategic complexity sourcing, see a reminder, savings are and where excellence, actions opportunities footprint
remains date. to the largest sourcing contributor Strategic our savings to transformation
are addressable of expenditures. across components, Operations We next as spend opportunity. $X actioning and billion and the finished indirect goods area such areas of excellence is materials
effective initiatives productivity this Our into tangible manufacturing encompasses and are improving principles. downtime lean reducing has In translate driving and efficiency. in that operating initiative results. been improvements model XXXX, particularly This our labor leverages
year deliver have robust to We a and up savings lined this beyond. projects pipeline of
to Turning footprint-related platforming. and projects product
multiyear as of footprint continues distribution we expect the transform This globe maximize as as of the across next over optimizing network redesigning progress to facilities and efficiency. to well exit a number planned, as excellence are centers leverage We our months. endeavor operational manufacturing to XX and scale we or our
We with to parts are scale. to improve which and procurement strategy, well identifies platforming underway methods across our complexity eliminate and families standardize to product components
early outdoor zero-turn mowers. across are we well product the power significant tools material and exciting program DEWALT, productivity We and and source development strategy it a this opportunities products be This into of across XXXX. is incorporating believe CRAFTSMAN with our can beyond process in innings,
additional supply approximately year initiatives investments business. of $X.X and expected in full core our chain a aggregate, In our margin in to achieve XXXX, of transformation XX% savings fund billion gross generate are growth
for commend goals would This everyone's to without contributions. pursuing be journey of the the organization diligently possible like transformation. would our I not
enabling are sustainable to and operational growth margin We needed targeted efficiency developing structure the return while investments. adjusted or our cost gross to greater XX%
$XXX and our of XXXX. next. cash of gross areas a approximately the expanding focus growth margins of are We to flow generated Two historically value quarter support to Moving free long-term This neutral. free to flow creation. generating brings in cash million strong this year the and cash main flow free second year-to-date
Our million in realized were accelerated performance improvements, of XXXX was plan. which $XXX supported initial approximately by capital working versus our earlier
make continued and toward this $XXX balance approximately inventory moving below days. levels quarter. to approximately sequentially and of remained Inventory our progress long-term We inventory XXX our million days by on reduced XXX to our XXX target are
improved balances The our accounts remainder the and of accounts result payable working plan. receivable a capital was of versus favorability
raise cash to during sale the proceeds spending $XXX to half cash enabled net Our capital of commercial flow, year The $XXX range guidance second prior $XXX full our strong expectations to quarter. the million free along modest our the us with momentum $X.X billion $XXX from up of the the strong from reduction paper reduction free infrastructure range flow confidence to million. million, in first and gives to our million a
that debt flow a debt is $XXX a in expect result dividend We short-term cash free an half excess additional of second support $X billion. balance in year-end, million total the will over which to reduction of to $XXX by million little
with generation, In further funds pruning are targeting deleveraging flow cash strategic generated XXXX, the actions. portfolio coupled by free through we
the goal plan agencies. generation. XXXX billion in year-end low the and consistent enables leverage rating our desired the for to inorganic zone, $X with achieve inclusive debt total Our cash metrics us of is This with discussions our is
ratings the support item prioritize liquidity company's we have group. $X.X well-capitalized access billion bank note, by securing and and long-standing, investment-grade credit the quarter, backed proactively Another maintaining renegotiated to company's core to facilities, credit to We transformation. diversified a of in significant past facilities this access ongoing credit
shareholders and value cash investing long-standing remain funding growth our to balance transformation, Our strengthening capital sheet. and further allocation to dividend our our priorities in return organic our
plan. second inventory XX.X% basis with year, in In by XXX adjusted versus the improvement prior consistent profitability. XXXX points XX the we supply costs. chain quarter, our XXXX, basis a of Adjusted shipping costs, to versus by gross improved lower point margin half destocking benefits lower was Turning half driven margin transformation and second sequentially gross first
We the XX%. of are with gross adjusted margin expected year planning to second for improvement further in half approximate this sequential
to half plan transformation are year XXs. This us low margin exit XX% path full step-up savings, been our the which approximately supply to year the in plan. deliver tracking gross on and goal and second puts chain supported XXXX have of our Our is long-held by adjusted transformation a
solid be adjusted challenging to backdrop. on macro margin continue gross improvement a We of a trajectory against
gives confidence momentum achieve margin in us and our plus XXXX time Our the to gross adjusted within our gross transformation ability horizon. achieve objectives for XX% margin
and XXXX guidance Now turning key assumptions. our to remaining the
cash $X.XX primarily flow just $X.XX. and to the GAAP range. raising addition to $XXX range share The Adjusted updated the free revising to second earnings quarter reserve a share million per adjusted incorporating earnings range I shared, into to is per environmental midpoint. the expense revision $X $X.XX GAAP approximately share revised earnings higher of $X.XX we is per result guidance to In per at of earnings are share being the
Our in outlook factors soft a the in second half. environment macro
We the this versus to EBITDA growth half and prior generate our adjusted are year. offset within the cost second leveraging savings control
along portion operating back The EPS midpoint lower expense due outperformance improvement at a interest the second includes to accelerated the passes deleveraging. quarter and half of
Our a continuation production consumer down declining This midpoint Outdoor with revenue year be the along expected X.X assumption automotive Industrial. point. backdrop for in to full Tools contemplates is stretched -- the & of organic percentage
the primary Our minus contemplates area earnings per basis variability. which XXX sales or plus of points, is share adjusted
with Tools Turning to range single in X% minus is what for Outdoor the Outdoor to today. & year, to the flat we & decline relatively similar full variability expected digits, is consistent revenue or be company. of year the Tools the with expected seeing to low which market Pricing for a at total plus are organic segments. is midpoint the full
growth slightly pressured expected by flat production be light OEM relatively to to vehicle headwind. is fasteners global as aero The partially segment automotive revenue positive Industrial is organic
maintaining long-term cost We approach are committed remain management for funding disciplined reprioritizing organic investments growth. to a and to and
activation investments incremental an Our planning brand assumption $XXX technology marketing million remains for in innovation, growth and XXXX.
Our percentage mid-XX% as of expectation is for full a in to the zone. SG&A year sales be
profitability. to Turning
engineered by supported expected savings in controls strategic slightly to by ongoing the adjusted EBITDA to versus margin as also the XX% and The infrastructure company are be from divestiture. fastening Adjusted We the Industrial from offset planned our driven positive to year, expect by approximate & up business improvements and be momentum year-over-year, transformation is is total flat full from segment margin margin adjusted Outdoor prior year Tools for transformation. continued operating to the the dilution cost program. segment
Our adjusted earnings per share largest the demand contributor. range is market in with variability $X.XX being
We will long-term the SG&A balance work for preserve thoughtfully investments hard gross the to margin growth. manage macro working to position throughout optimize uncertainty the while adjusted year business and to to
well Turning elements as $XXX in for the pretax supply quarter rate is be expected benefit the tax to program transformation the and with GAAP to our include $XXX ranging year adjusted quarter quarter. expense. XX% fourth The related full approximating million earnings third environmental of to from to a second non-GAAP as the adjustments largely the guidance. other million XX% chain
are guidance on modeling. assumptions slide the the at noted XXXX Our midpoint to assist with
per We of expect full the adjusted midpoint. earnings third approximately the the at to be quarter XX% share year
margin, funding drive positive while our cash confident margin organic outlook. the adjusted on that to half full year improve improvements progress and our percent we adjusted We supply summary, our improved additional In generate gross second to free growth toward our in forward, remain our actions results. gross to investments looking chain XXXX revenue executing will focused remain of and and of target supports date earnings to earnings XX-plus continue flow further
creation. strengthening and company Our top balance the and position generating growth margin sheet delivering for expansion, long-term cash to priorities remain further value the
that, back I call will the now to Don. With pass
