“We are holding underlying sales at 3% to 5% but lowered GAAP net sales guidance to 1.5% to 3.5% due to a foreign exchange headwind of approximately $350 million as the U.S. dollar strengthened at the end of Q1.”

In context

“sustained momentum in process and hybrid markets and our strong Q1 operational performance put us in a position to reiterate our full year 2025 guidance for underlying sales, adjusted EPS and free cash flow. Overall, we expect our process and hybrid businesses to grow mid-single digits for the year, supported by backlog and a resilient funnel. We have lowered our full year outlook for our discrete businesses to the low single digit range. Our discrete businesses have started the year slower than expected, but we expect a meaningful recovery against easier comps in the second half. As Lal mentioned earlier, China demand has been muted, but we are looking to see growth in the second half as we are expecting recovery in chemical and discrete with power continuing to be strong in the region. We are holding underlying sales at 3% to 5% but lowered GAAP net sales guidance to 1.5% to 3.5% due to a foreign exchange headwind of approximately $350 million as the U.S. dollar strengthened at the end of Q1. This FX movement unfavorably impacted adjusted EPS approximately $0.08, which we have predominantly offset with our strong Q1 operational performance to hold our prior guidance of $5.85 to $6.05 per share. We are increasing our expectations for 2025 operating leverage to the 70s versus the mid-40s guidance from November due to the operating performance in Q1 and the impact of FX on leverage. We are reiterating our free cash flow guidance of $3.2 billion to $3.3 billion. For the year, we expect to return approximately $3.2 billion to shareholders through dividends of approximately $1.2 billion and share repurchases of approximately $2 billion, of which we completed approximately $1 billion in the first quarter as planned. In the second quarter, we expect underlying sales to be up 1% to 2%”