“But I think mid-single-digit orders are sustainable for us as we navigate through the remainder of 2026.”

In context

“f your industrial peers called out a weak start to the calendar year outside of the Middle East. Surendralal Karsanbhai: Yes. No, we felt it was a very strong quarter outside of the Middle East. It was driven for us, as we remarked in the written comments, by the United States and by India, which led. And we saw broad growth across all of the growth verticals, with the lowest one being probably semiconductors in the mid-teens, and all of them in terms of orders grew above that. We feel really good in terms of that resiliency. Of course, the Middle East was much softer than expected in the quarter. We expect that to rebound. We have already seen in April that was encouraging in the Middle East, particularly as it relates to MRO activity, and we will see how the projects ultimately pan out. But I think mid-single-digit orders are sustainable for us as we navigate through the remainder of 2026. At this point in time, we feel very confident that with our backlog support, we have the second half well sized, and then with this momentum in orders, we will be setting us up for 2027. Andrew Alec Kaplowitz: Helpful, Surendralal. And as you said, your expectations for margins, really margin incrementals, have been drifting up a bit given the lower sales forecast, and that is despite, I think, you absorbing more inflation with price. Maybe talk about what you are doing to offset the inflation. Are you baking in more, for instance, memory chip inflation, and confidence level that you can continue to offset inflation headwinds even on lower growth? Michael J. Baughman: Pricing has been very, very disciplined. Our cost reductions and, frankly, favorable mix in some of the sales we have exec”