“Overall, improving underlying demand fundamentals, coupled with easier second half comps, position our discrete businesses for accelerating year-over-year growth in the back half, and we expect to hit double digits as we exit the year.”

In context

“awarded approximately $375 million of content in the second quarter. We are also emerging from a prolonged discrete downturn, and our discrete businesses collectively turned positive in the second quarter, with underlying orders exceeding our expectations at 3%. Test and Measurement orders were up 8% with tailwinds forming across the broad based portfolio business, which traditionally has been a leading indicator. Aerospace and defense continues to perform well with large project wins in the US, and we believe the favorable macro environment will continue in the second half. While we are seeing sustained positive momentum in industrial and discrete MRO markets, factory automation continues to be a watch area, and we believe demand may be pressured by macro uncertainty in the second half. Overall, improving underlying demand fundamentals, coupled with easier second half comps, position our discrete businesses for accelerating year-over-year growth in the back half, and we expect to hit double digits as we exit the year. We are watching closely for signs of tariff induced impacts to demand, but we have not seen any widespread indications. April was a strong start to the third quarter with trailing three month underlying orders growth of 7%, and we continue to see significant demand for our Process and Hybrid businesses and recovery in discrete. Energy security, self-reliance and energy transition commitments are expected to sustain a favorable spend environment in LNG and power, while near shoring momentum is expected to drive further growth in Life Sciences. Strength in Process and Hybrid markets, combined with a nascent discrete recovery, reinforces our expectations for mid-single-digit growth in the third quarter and for high single digit growth as we exit the year. Please turn to slide 6. Favorable de”