“We anticipate full year ESS margin to remain roughly flat as commercial excellence and uplift from the LNG acquisition are offset by less favorable mix from reduced high-margin project and catalyst sale and cost inflation.”

In context

“product introductions momentum in the U.S. and high-growth regions and customer wins in focused verticals. For the third quarter, we anticipate sales to be up mid-single digits as comps from the prior year become modestly more difficult in the back half. We expect Building Automation to expand margins meaningfully for the third quarter and for the year, supported by volume leverage and productivity actions. In Energy and Sustainability Solutions, we're slightly reducing our organic sales growth outlook to reflect a more cautious capital spending posture from UOP's energy customers. We now expect full year sales to be flat to up slightly. Advanced Materials should lead growth in the second half on improving demand tailwinds and the uplift from easing prior year comps in fluorine products. We anticipate full year ESS margin to remain roughly flat as commercial excellence and uplift from the LNG acquisition are offset by less favorable mix from reduced high-margin project and catalyst sale and cost inflation. In the third quarter, we expect ESS sales to decline low single digits with growth in Advanced Materials, offset by lower UOP projects and a headwind from the timing of catalyst shipments shifting forward into the second quarter. Just as for the full year, margin is anticipated to be around flat to 2024. Now let's move to Slide 9 to walk through our 2025 EPS bridge. With the organic segment growth contributing an additional $0.13 per share for the full year, in line with our view in the prior quarter, while second quarter results finished above our guided range, the performance included a couple of cents of benefit above the line from the Sundyne acquisition and a few extra weeks of owning PPE. It also included some UOP catalyst shipments that were expected to occur later in the year. As”