“The backlog growth gives us confidence in an expected second-half ramp, especially when measured against our historical backlog conversion rates.”

In context

“in industrial automation, we expect sales to be down low single digits to roughly flat, with stable growth in industrial solutions offset by headwinds from a challenging prior year comparison in products. Within this framework, we're not assuming any rebound in underlying end market demand. We expect IA to lead margin expansion across all segments in 2026 through meaningful productivity options and fixed cost reduction. Let's now turn to slide nine to double click on process automation and technology dynamics in 2026. During 2025, we saw 17% organic orders growth in the new P&T segment, which led to a corresponding 16% rise in the opening backlog. This continues to be a significant part of our long-cycle order strength, particularly in LNG and refining, both in the US and internationally. The backlog growth gives us confidence in an expected second-half ramp, especially when measured against our historical backlog conversion rates. Wins in LNG, a number of large module equipment deals are expected to convert to sales in the back half of the year. In addition, we're encouraged by our pipeline in P&T, which grew high single digits year over year, signaling that the strength of long-cycle orders is expected to persist contingent on the pace of final investment decisions from our customers. We're diligently tracking the slower-than-expected aftermarket order rates for catalysts, particularly within petrochemicals, which has been influenced by overcapacity in the market. Alloy shipments can be temporarily delayed in the short term but are ultimately necessary for our customers to maintain yields. Those can only be deferred for a period of time. So while we acknowledge the challenges this business faced in 2025, we're enc”