Greetings, welcome to the Fiscal 2023 Second Quarter Earnings Call for Applied Industrial Technologies. My name is Malika, and I'll be your operator for today's call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. If you wish to ask a question at that time, please press the one followed by the four on your telephone keypad. Prior to asking a question, lift your handset to ensure the best audio quality. If at any time during the conference call you need to reach an operator, please press star zero. Please note that this conference is being recorded. I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury. Ryan, you may begin. Okay. Thanks, Malika, and good morning to everyone on the call. This morning, we issued our earnings release and supplemental investor deck detailing our second quarter results. Both of these documents are available in the investor relations section of applied.com. Before we begin, just a reminder, we'll discuss our business outlook and make forward-looking statements. All forward-looking statements are based on current expectations, subject to certain risks and uncertainties, including those detailed in our SEC filings. Actual results may differ materially from those expressed in the forward-looking statements. The company undertakes no obligation to update publicly or revise any forward-looking statement. In addition, the conference call will use non-GAAP financial measures, which are subject to the qualifications referenced in those documents. Our speakers today include Neil Schrimsher, Applied's President and Chief Executive Officer, and David Wells, our Chief Financial Officer. With that, I'll turn it over to Neil. Thanks, Ryan, and good morning, everyone. We appreciate you joining us. As usual, I'll begin with some perspective and highlights on the key drivers of our results, including an update on industry conditions as well as expectations going forward. Dave will follow with more detail on the quarter's financials and provide additional color on our outlook and guidance, which we've raised this morning. Then I'll close with some final thoughts. Overall, we had another solid quarter with favorable performance across really all our businesses. Year-over-year organic sales growth strengthened, exceeding 21% in both segments. Our teams are doing an exceptional job at managing costs and driving continuous improvement initiatives. We expanded EBITDA margins to a new quarterly record of slightly under 12%. Looking at it over an extended period, our EBITDA margins have expanded nearly 300 basis points over the past three years. At the same time, we continue to invest in talent, safety, technology, and our service solutions, further enhancing our capabilities and operational strength for the future. Taken together, our respective sales, EBITDA, and EPS was 21%, 36%, and 41% over prior year levels. As a reminder, we're facing more difficult comparisons these days, so to see this level of sustained sales and earnings growth is noteworthy and a strong indication of our enhanced growth profile and earnings power. I want to thank our entire team for their ongoing effort and focus on optimizing and positioning Applied to achieve these results. This progress is particularly exciting as we reflect on our company's history, including celebrating our 100-year anniversary a couple of weeks ago with more than 6,000 associates. A very proud and gratifying moment for Applied and our talented teams around the world. Our rich history and culture will remain a guiding framework to our strategy and evolution going forward, along with our valued supplier and business partners who work every day to help us serve our customers and advance our leading technical capabilities throughout our industry. A few key points and areas I want to emphasize to provide more detail on what's underpinning our performance and opportunity moving forward. As it relates to underlying demand, we saw positive momentum sustained across many areas of our business during the quarter. Sales growth held strong throughout the quarter and exceeded our expectations. Sequential sales rates were above normal seasonal patterns, including solid trends through or during December. While order rates are slowing to more normalized level in some areas and markets as expected, customer commentary remains fairly positive, and we've yet to see any meaningful slowdown to date. We are mindful of the ongoing crosscurrents facing the broader economy, which likely will continue to impact industry-wide activity in the near term. That said, we remain constructive on our position and growth prospects long term, with our first half performance reinforcing this view. Of note, we believe we're benefiting from a more diverse mix of end markets and growth tailwinds. This is partially tied to our multi-channel strategy and business evolution in recent years. As we've highlighted before, we are favorably positioned to capitalize on key secular growth trends gaining momentum across the North American industrial sector, including greater infrastructure spending, reshoring, an aging and scarce technical labor force, and incremental growth opportunities resulting from government stimulus spending. Similar to last quarter, customers continue to work through elevated backlogs. They're also embracing a higher level of technical maintenance requirements and capital spending focused on reinforcing supply chains and equipment within their production facilities. This is particularly meaningful considering an aged U.S. production infrastructure. Service reliability and efficient access to leading suppliers, premium brands, and technologies are more critical than ever. This is supporting demand for our comprehensive maintenance and engineering solutions. We're also executing on a number of internal initiatives aimed at driving greater sales force effectiveness. We're using more analytics and various sales process tools to identify and capture new business opportunities. Ongoing talent investments continue to supplement our sales momentum as well. We're seeing solid traction with our cross-selling initiatives, from flow control products supporting process maintenance to emerging robotic technologies addressing labor and safety initiatives at our customers' facilities. The full suite of our technical solutions we offer today is meaningful to our value proposition. Our teams across our multi-channels are increasingly collaborating and solving problems for our customers as they face labor constraints, reassess supply chain strategies, and embrace required technology investments. More and more, our customers recognize us as a leading solutions provider, integral to their most valuable production assets and supply chain reliability. Many of these internal sales growth initiatives have been instrumental to our service center segment results, where organic sales growth exceeded 20% for the third straight quarter. Our local service centers continue to benefit from a productive U.S. manufacturing backdrop and related demand for break-fix MRO support. They also remain focused on managing ongoing inflationary pressures and working effectively through supplier price increases. Gradual increases in infrastructure spending are driving greater demand from our aggregate mining and machinery customers. We also believe growth opportunities are rising as customers continue to consolidate their spend with more capable distributors offering leading technical support and solutions. This is particularly relevant given our market focus around critical motion and powertrain products in demanding applications, including notable requirements around supplier brands and local service reliability. We did see some slowing in select end markets during the quarter, such as metals, milling, and lumber and wood. However, booking levels remained relatively firm month to date in January as customers reset budgets and remained generally productive. While our service center segment is not immune to cycles and potential slower industrial production activity in coming quarters, we believe the segment is exposed to more secular and company-specific tailwinds today than in prior cycles, potentially providing a greater level of sales support if a slower environment does manifest. Within our engineered solutions segment, which includes our fluid power, flow control, and automation offerings, organic sales growth accelerated 300 basis points from last quarter, increasing over 21% year-over-year, despite a meaningful prior year comp of 19% growth. Backlog strength is providing solid revenue coverage with no material signs of cancellations at this point. Modest improvement in some areas of the supply chain is helping release shipments of various system assemblies previously pent up by component shortages. Underlying growth prospects remain favorable within our core fluid power, industrial, and off-highway mobile verticals. Our technical and engineering capabilities are in greater demand from smaller tier OEMs as they face rapid innovation and accelerate integration of advanced features into their equipment. We are also integral to our customers' sustainability initiatives, from enhancing the overall efficiency and lifecycle of hydraulic systems and power units to helping design and integrate new electrification features within fluid power systems. While we're in the early innings of the development of these opportunities, they are positively influencing our business funnel and represent an emerging area of potential growth for Applied longer term. In addition, demand and booking levels remain solid for our higher-margin process flow control products and solutions. MRO activity and maintenance project spending on process infrastructure remains positive in core end markets such as chemicals, refining, petrochemical, utilities, and metals. We also continue to benefit from our customers' decarbonization efforts and other required infrastructure investments as end markets transition around new energy requirements. Additionally, we are seeing sustained progress in cross-selling our flow control solutions through our service center network as we connect customers to these leading process capabilities. Our strategic expansion into flow control back in 2018 is a great example of the evolution of our channel capabilities and end market mix that we believe is providing more resiliency to our growth and margin profile today. We continue to make further progress expanding our advanced automation platform as well. We saw solid organic sales growth in the quarter and underlying order momentum remains healthy. Customer interest in new business opportunities are being driven by labor constraints and evolving production considerations. These trends are expanding the need for our leading engineering capabilities across functions such as machine tending, palletizing, and quality control. We are making traction with our greenfield expansion initiatives and developing new approaches to best serve our embedded customer base and further enhance our market position, including through proprietary turnkey solutions and leading application expertise. We announced the acquisition of Automation, Inc. in November, which represents the fifth automation acquisition over the past four years. With annual sales around $25 million, the transaction further optimizes our automation footprint in the Midwest, as well as our strategy of providing leading next-generation solutions around machine vision, robotics, and motion control. We welcome Automation, Inc. and look forward to leveraging their capabilities going forward. The momentum sustaining across our core operations and emerging solutions is encouraging. Our teams remain focused on driving strong returns as this growth continues to manifest through both consistent execution and continuous improvement actions. For those that have been around Applied for a while, you know we have a deeply ingrained culture of operational execution and cost accountability. This remains apparent as we continue to manage inflationary pressures and drive high-teen incremental margins despite ongoing LIFO headwinds. At the same time, we've significantly improved our return on capital profile over the past several years, hitting strong double-digit levels in recent quarters, highlighting the value creation potential embedded across our business and strategy. Lastly, we ended the quarter with a healthy balance sheet and net leverage at 1x and over $1 billion in balance sheet capacity. Our M&A pipeline is active across our priority areas of fluid power, flow control, and automation. We remain disciplined as always and continue to evaluate a number of attractive M&A opportunities that could enhance our growth and competitive position going forward. At this time, I'll turn the call over to Dave for additional detail on our financial results and outlook. Thanks, Neil. Good morning, everyone. First, another reminder that our supplemental quarterly recap is available on our investor site for your additional reference. Turning now to details of our financial performance in the quarter, consolidated sales increased 20.9% over the prior year quarter. Acquisitions contributed 50 basis points of growth, which was more than offset by a 70 basis point headwind from foreign currency translation. The number of selling days in the quarter was consistent year-over-year. Net of these factors, sales increased 21.1% on an organic basis. As it relates to pricing, we estimate product pricing was a mid-single digit percent contributor to the year-over-year sales growth in the quarter. As a reminder, this assumption only reflects measurable top line contribution from price increases on SKUs sold in both year-over-year periods. Turning now to sales performance by segment. As highlighted on slide six and seven of the presentation, sales in our Service Center segment increased 21.1% year-over-year on an organic basis when excluding the impact of foreign currency. Year-over-year sales growth strengthened across our large national accounts during the quarter. We also continued to see favorable growth from smaller local accounts. When looking at the sequential increase in segment growth, the biggest end market contributors were chemicals, pulp and paper, aggregates, rubber and plastics, and mining. We also saw solid fluid power aftermarket sales growth in the quarter, reflecting strong execution and service support from our leading fluid power MRO specialist network. Within our Engineered Solutions segment, sales increased 22.5% over the prior year quarter, with acquisitions contributing 140 basis points of growth. This reflects two months of contribution from our Automation, Inc. acquisition, which closed in early November. On an organic basis, segment end sales increased 21.1% year-over-year and over 41% on a two-year stack basis. Segment sales growth continues to be supported by strong backlog levels across our fluid power division, sustained customer MRO and CapEx spending into process flow infrastructure, and ongoing healthy demand for our next-generation automation solutions. Extended supplier lead times and inbound component delays continued to weigh on segment sales growth during the quarter, though we did see some modest improvement in lead times and supplier deliveries benefiting system completions and shipment activity during the quarter. Moving now to gross margin performance. As highlighted on page eight of the deck. Gross margin of 29.1% decreased 28 basis points compared to the prior year level of 29.4%. During the quarter, we recognized LIFO expense of $8.9 million compared to $4.7 million in the prior year quarter. This net LIFO headwind had an unfavorable 39 basis point year-over-year impact on gross margins during the quarter and reflects supplier product inflation and ongoing inventory expansion year-to-date. We also faced a difficult comparison from favorable mix and performance, which boosted gross margins in the prior year quarter. On a sequential basis, gross margin performance increased over 20 basis points during the quarter and was slightly ahead of our expectations. Overall, we continue to manage broader inflationary dynamics well, reflecting broad-based channel execution, pricing actions, and ongoing margin countermeasures. As it relates to our operating costs, Selling, Distribution, and Administrative expenses increased 9% on an organic constant currency basis compared to prior levels. SD&A expense was 18.4% of sales during the quarter, down from 20.5% during the prior year quarter, which is a new record low. Despite ongoing inflationary headwinds, including higher employer-related expenses, our teams are doing a great job of controlling costs in the current environment as we leverage our operational excellence initiatives, shared services model, and technology investments. Combined with the robust sales growth we saw in the quarter, EBITDA increased 36% over prior levels, while EBITDA margins expanded 128 basis points over the prior year to 11.8%. This includes an unfavorable 39 basis point year-over-year impact due to LIFO. We continue to see strong operating leverage resulting in incremental margins in the high teens despite the ongoing LIFO headwind year-over-year. Combined with reduced interest expense, reported earnings of $2.05 per share increased 41% from prior year earnings per share levels. I am pleased to highlight that this represents the second consecutive quarter of greater than 40% growth in EPS and the eighth consecutive quarter of adjusted EPS growth exceeding at least 25%. Moving to our cash flow performance. Cash generated from operating activities during the second quarter was $62.9 million, while free cash flow totaled $55.6 million. Compared to the prior year, free cash flow nearly doubled, reflecting higher earnings and stabilizing working capital investment. Looking ahead, we expect easing working capital trends into the second half of our fiscal year, including some benefit from the conversion of work-in-process inventories tied to our Engineering Solutions segment, as well as continued benefits from our working capital initiatives. From a balance sheet perspective, we ended December with approximately $166 million of cash on hand and net leverage at 1.0 x EBITDA, which is below the prior year level of 1.6 x adjusted EBITDA. Our leverage remains below our normalized range of 2.0x to 2.5 x, partially reflecting the significant EBITDA growth we have experienced in recent years, as well as ongoing debt reduction. We also remain disciplined with our M&A approach, focused on targets and valuations supporting our return requirements and strategic priorities. As it relates to recent areas of capital deployment, we announced in our press release today that we increased our quarterly dividend for the 14th time in 12 years. In addition, as Neil highlighted, we're excited by the acquisition of Automation, Inc. in early November, which further enhances our automation portfolio. Our strong balance sheet, industry position, and historical M&A focus are valuable attributes for our strategic acquisitions as they look to align their business and associates with the most capable and supportive organizations to best drive future growth and success. Overall, we're in a great position to continue to drive our strategic priorities going forward, including remaining proactive across our organic expansion initiatives, as well as executing ongoing accretive M&A. Turning now to our outlook. As indicated in today's press release and detailed on page 10 of our presentation, we are raising full year fiscal 2023 guidance to reflect the strong second quarter performance and an improved outlook for the second half of the year. We now project EPS in the range of $8.10-$8.50 per share based on sales growth of 13% to 15% and EBITDA margins of 11.5% to 11.7%. Our guidance assumes EPS of $6.90-$7.55 per share, sales growth of 5% to 9% and EBITDA margins of 10.9% to 11.2%. We are encouraged by our year-to-date performance and see ongoing opportunities supporting our growth and earnings potential in the back half of fiscal 2023. Our sales outlook continues to take into consideration broader economic uncertainty as well as ongoing inflationary and supply chain pressures. We expect ongoing moderation in order rates and more modest pricing contribution in the second half of the year. We will also face more difficult sales growth comparisons in coming months, including most notably during our fiscal fourth quarter. Our updated guidance incorporates these various factors. Based on month-to-date sales trends in January and our near-term outlook, we currently project fiscal third quarter organic sales to grow by low- to mid-teen percentage over the prior year quarter. Please note that prior year sales comparisons are more difficult in February and March relative to January. We are also assuming some moderation in underlying billings following strong backlog conversion and back order shipments in recent months, combined with easing demand tied to the uncertain macro environment. We expect gross margins to be relatively unchanged from fiscal 23 second quarter levels of around 29%. In addition, we assume incremental margins in the mid-teens based on our low to mid-teen sales growth increase assumption for the quarter, combined with considerations around our annual focused merit increase effective January first, ongoing inflationary pressures, and a reduced operating leverage as sales growth eases. With that, I'll now turn the call back over to Neil for some final comments. Thanks, Dave. To wrap up, I am extremely proud of the Applied team and our performance through the first half of fiscal 2023. The underlying industrial backdrop remains promising long term across North America, and we are benefiting from our industry position, the ongoing build-out of our advanced solutions and operational focus. We believe various secular and structural tailwinds are providing support to the broader demand environment. This includes an incremental focus on refreshing and expanding industrial production infrastructure and capacity across North America, and greater demand for advanced engineered solutions, particularly as customers manage through labor constraints and accelerate actions to reduce energy consumption. Our strategy and growth initiatives are strongly aligned with these trends and the requirements our customers are facing. Consistent with our commentary from last quarter, the uncertain economic backdrop is reducing transparency into the cadence of underlying orders and growth in the interim. As expected in our updated guidance, we continue to take a cautious approach to our outlook and anticipate a moderating growth environment in coming quarters. That said, we believe any near-term slowdown could be transitional and short in nature, given positive tailwinds underpinning the industrial sector and a greater focus on supply chain reliability in the wake of meaningful shocks faced in recent years. In addition, we enter the second half of fiscal 2023 with our balance sheet and liquidity in a solid position and the opportunity to drive stronger cash generation, reflecting our improved margin profile and normalizing working capital requirements. This will support ongoing strategic growth opportunities and shareholder returns going forward. Lastly, following our first half performance, we've made meaningful initial progress toward our intermediate financial targets of $5 billion in revenue and 12% EBITDA margins. These targets provide clear milestones to achieve significant value creation for all of Applied and our key stakeholders long term. As always, we thank you for your continued support. With that, we'll open up the lines for your questions. Thank you. We will now begin the question-and-answer session. If you would like to ask a question, please pick up your handset, press one followed by the four on your telephone keypad. If you would like to withdraw your question, please press the one followed by the three. As a reminder, if any time you need to reach an operator, please press star zero. We will now pause for a moment to compile the Q&A roster. One moment please. Ladies and gentlemen, once again, that is one, four to ask a question. Our first phone question is from the line of Ken Newman with KeyBanc Capital Markets. Please go ahead. Hey, good morning, guys. Congrats on the excellent quarter. Thanks. First question from me. I'm curious if you could just contextualize what your macro outlook assumes for the back half. I think last quarter you mentioned that the outlook assumes a 500 basis point contraction in IP year-over-year in your fiscal back half. Is that still your expectation or just how has that evolved? Ken, I think one way we're looking at it, if we take it at the midpoint, you know, we would assume low single digit to flattish year-over-year IP in the third quarter and then low single digit to perhaps a mid-single digit contraction in the fourth quarter. If we think about or we look at perhaps the core manufacturing or capital goods portion of those markets, ex inflation, it's probably closer to the low single digit to mid-single digit growth in Q3, and then perhaps flattish to a low single digit year-over-year contraction in the fourth quarter. We still believe the consumer-oriented industries are facing more of this potential contraction than some of our core industrial markets. That's helpful. For my follow-up, you know, you talked a little bit about pricing, and obviously it's been a positive contributor here similar to the prior quarter. Any way you can just kind of help us understand the moving buckets within the organic growth outlook? You're still expecting pricing to mirror 2022 at this point? You know, any other way to talk about, you know, the benefits of better mix versus volumes? I can start and then probably Dave will come in. As I think about pricing, you know, we would still see increases coming from suppliers if we compare perhaps to a year ago. They're lower in count and frequency, but we still expect annual lifts or increases coming from suppliers into this time. As we also think about the backdrop of things, you know, not easing in an inflationary environment, things around the labor, the supply chain, and what has been and continues to be a good demand environment that we don't think those abate. W e think there's gonna be pricing contribution, to the overall business and to the top line results as we work through the rest of the fiscal 2023, you know, albeit perhaps at a lower level than we had in the last quarter. Certainly, as we talked last fall, still assuming we're gonna see that, you know, tail off, you know, some modest incremental pricing, as Neil has indicated, in response to some of those factors. You know, kind of more of a, you know, kind of lower, you know, obviously tail as we move off here, kind of, you know, below mid-single digits as we get into Q3, and lower single digits we get into Q4, really driven by the comp issue. Referenced the mix side of it. Hey, we're still encouraged that as we bring more advanced solutions into the business, we have the opportunity for positive mix contributions around our products and solutions, some of the end markets that we're participating in. Those should set up favorably as well. We said in the remarks, right, we'll believe for Q3, you know, we're in the second half kind of gross margins in a similar range. Understood. Maybe if I could just squeeze one more in here. You talked about the benefit of infrastructure spending and federal stimulus being a stronger secular tailwind versus prior cycles. Is there any way that you can help us size what the exposure is for AIT in those end markets today? Maybe what kind of benefit are you assuming, if any, in the new guide? We would say it's inclusive into what we think about into the second half. With that said, I think some of it's just getting started into that side. That'll probably be for us more color in fiscal 2024, 'cause I think it will still take some time to ramp. If we think about our exposure to kind of some of these mid-cycle, later cycle industries, the heavier industries, you know, directly and indirectly, we're probably between 30% to 50% in, you know. Those industries, machinery and metals and aggregate and equipment and such that are gonna benefit from this infrastructure build out, and also the technology sector that will participate in that as well, be it 5G and data warehouse and storage and others. We think the underpinnings of that occur more late this fiscal year and really into the back half of the calendar year. Excellent. Thanks for the color. Thank you. Our next question is from the line of Chris Dankert with Loop Capital. Please go ahead. Your line is now open. Hey, morning. I guess, congrats first on the near term impressive results and on the 100-year anniversary to the whole team there. I guess kind of jumping in here, you know, core organic growth in both businesses really accelerated, you know, versus the first quarter. I mean, that wasn't in our expectation, I don't think in yours either. You touched on some pieces, but can you just kind of maybe sharpen up what the real driver of the outperformance in 2Q was on the kind of core organic basis? Well, I think there are a few things to take it across. You know, we think about on our service center side, break-fix demand activity, stayed strong throughout the quarter. That was positive. We're still seeing benefit coming from the cross-sell, and the collaboration of those more advanced solutions is helping in that front. We think our industry position, service reliability, the inventory that we have in place for some of those critical break-fix times, and plus our local presence all help that service center side of the business perform very well. Within fluid power, we saw nice execution on projects coming in. You know, we've talked about having a productive backlog in fluid power, so the team were able to execute on a portion of that backlog as suppliers improved some availability of products or perhaps the availability of smaller componentry that was holding up a shipment going out. The automation team benefited from that, and so organic growth into the 24% in that period, which was positive. We're seeing continued strength around flow control. It's typically a later cycle business, and so we think that sets up well for the process flow control business and ourselves as we think about going into this second half. It really is a lot of pieces all pulling together. That's great color. Thank you. Just kind of to follow up here, you know, inventory was up again sequentially, but days are still kind of well below the long-term average. Maybe how should we think about inventory positioning today and maybe working capital into the back half of the year here? Sure. Yeah. I expect, you know, working capital, as we talked about in the script, to be a bit of a tailwind as we move across Q3, but more, you know, pronounced in Q4. We did see some stabilization to your point. You know, we did see further increase, once again, really driven by those project-focused businesses and that strong backlog position that we enjoy there. You know, did see some stabilization though, as I said, as we move through November and December in terms of inventory levels. Would anticipate, you know, kind of that being flattish as we move across Q3, as we continue to work through, you know, some of that project backlog and see some of those supplier constraints start to, you know, ease further. You know, would be targeting a reduction in inventory as we move in Q4. A tailwind when you think about the cash generation. Understood. If I could just, you know, sneak one last one in here. Given the rise in interest rates and just kind of what we're seeing in, you know, very low leverage from you guys today, I mean, has the target leverage range changed from kind of that, you know, 1.5x to 3x, just given what interest rates are doing, or is it still that's kind of the long-term target for debt? We talked about longer term in a more normalized environment, you know, 2x to 2.5x being the target, putting the balance sheet to work, you know, working at accretive M&A that we've been so successful in driving value with. We are sensitive to the interest rate environment and, you know, the implications on leverage, could be improved in terms of the M&A and right, you know, kind of really stay focused on the priorities. You know, we'll be cognizant of that. You know, on the longer term over cycle, it's still a 2x to 2.5 x target in terms of that leverage ratio as we move forward. Got it. Thanks so much for the color and best of luck in the back half here, guys. Thanks, Chris. Thank you. Once again, ladies and gentlemen, as a reminder, you can press one four on your telephone if you have a question. Next question is from the line of David Manthey with Baird. Please go ahead. Your line is now open. Thank you. Good morning, everyone. To dig in a little bit more here on the guidance, just so I understand, is it a fair statement to say that your assumption for the economic backdrop has shifted a few months to the right based on your new starting point that you've seen here in the first half of the fiscal year? Or has there been, in fact, a change in your view on the depth and or duration of the downturn? I can start. David, I would say it's a shift to the right. You know, we know what we can see from a visibility standpoint. We touched on, you know, January and a solid start. We know the comps get a little more challenging in February and March in that side. You know, our view is we feel like we have very good line of sight to Q3, with that sales up to the mid-teens and, you know, expectations around margins and thus those mid-teen incremental. We see that. We just can't ignore what could potentially be some of these crosscurrents and when they develop. We know our service center segment in Q4 has a tougher comparable. I think last year it was a +21 in the side. Even around the engineered solutions segment, it was good last quarter as well. We just wanna be mindful as we inform or lay out the guidance. That's very rational. You made a comment in the release that said the business is more resilient than in past cycles due to your channel strategy. Could you elaborate on what you mean by that? I think it's a lot of the build out of our capabilities, you know, not only service centers and bearing and power transmission and the importance of those products, but what we're doing in engineered solutions around fluid power, the addition of process flow control, and now the start with Automation, you know, with its run rate now at $175 million-$180 million. You know, that's adding to our value proposition and offering that's very important to customers, plus our participation and presence in maintenance supplies and consumables on that front. As we build out those capabilities, very helpful because I contend the customers are looking to consolidate their spend with fewer, more capable suppliers to partner with someone that can help them deal with their labor constraints and challenges and their operational desires for a much greater uptime as they continue to serve their industry demand. As we've said, you know, kind of regardless what depth and, you know, kind of it comes out as in terms of a market slowdown, we feel like, you know, because of that, you know, more comprehensive offering, the ability to continue to drive, you know, kind of market outperformance with cross-sell, we have the ability certainly to soften that impact as we work through the next cycle as it comes. Regardless, we still know how to be operators and like I said, you know, gauge the business accordingly as we've demonstrated through each of the downturns. Okay. Thank you for that. I guess I'll stick with the theme of three questions if it's okay with you guys. Could you talk about the average order size of an average discrete automation solution, maybe a little bit about the sales cycle there. I assume these are capital items for customers. Just anything you can share with us regarding the, what that type of sale looks like in terms of magnitude and the sort of the length of time it takes to gear up something like that. Yeah. I don't know that I have the average order size, but let me come at it a couple of ways. I'd say, one, we're doing more to have productized solutions that can make this sales process go very quickly. If a customer wants to deal with labor constraints and has machine tending, and they wanna have fewer operators to each fabrication equipment, they can leverage collaborative robots and perhaps have one operator per four pieces of equipment. That's been an area that's been helpful. We're doing more in palletizing and help, you know, distribution-oriented companies or to help the volume of outflow as people have dealt with challenges perhaps around warehouse labor. We're also active when in vision for safety type products, move from manual inspection on those, so great enhancements and improvement. Also on consumer packaged goods, where you cannot have a labeling or product defect, especially if it's going to some key retailers, that packaging has to be pristine. You just can't afford or do it effectively from a manual vision standpoint, so those systems are very helpful. That's helping the sales process go quickly. I'd say, Dave, on the other side, we have sales engineers and application engineers that are connecting with customers, especially on our now our legacy service center side, where we know their production equipment so well in solving a discrete automation problem or challenge. We'll start focused and perhaps small of how mobile or mobile and collaborative robots can help or vision or motion control type products or maybe connectivity in the plant, and we're solving small projects. I would say not all of them are going to the level that these are extensive capital projects that they're bringing along, but they're getting approved. They open the door for other projects within that plant, and based on the ownership equation of those companies into their other facilities as they look to replicate that success or impact that we could have. We're, we're encouraged by the business activity and the presence. It's not extremely long cycle, massive investments that customers have to undertake to positively impact their performance with automation. That's very helpful, Neil. Thank you. You're welcome. Thank you. At this moment, I'm showing we have no further question. I will now turn the call over to Mr. Schrimsher for any closing remarks. Please go ahead. Thank you, Malika. I just wanna thank everyone for joining us today, and we look forward to talking with you throughout this quarter. Thank you, ladies and gentlemen. That does conclude today's call. We thank you for your participation and disconnect your line. Have a good day.