Ladies and gentlemen, good morning. My name is Abby. I will be your conference operator today. At this time, I would like to welcome everyone to the Barnes Q1 2023 Earnings Conference Call and Webcast. Today's conference is being recorded. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press the star key followed by the one on your telephone keypad. If you would like to withdraw your question, press star one once again. Thank you. I will now turn the conference over to Bill Pitts, Vice President, Investor Relations. You may begin. Thank you, Abby. Good morning, everyone, and thank you for joining us for our Q1 2023 earnings call. With me are Barnes President and Chief Executive Officer, Thomas Hook, and Senior Vice President, Finance and Chief Financial Officer, Julie Streich. If you have not received a copy of our earnings press release, you can find it on the investor relations section of our corporate website at onebarnes.com. That's O-N-E-B-A-R-N-E-S dot com. During our call, we will be referring to the earnings release supplemental slides, which are also posted on the website. Our discussion today includes certain non-GAAP financial measures which provide additional information we believe is helpful to investors. These measures have been reconciled to the related GAAP measures in accordance with SEC regulations. You will find a reconciliation table on our website as part of our press release and in the Form 8-K submitted to the Securities and Exchange Commission. Be advised that certain statements we make on today's call, both during the opening remarks and during the question-and-answer session, may be forward-looking statements as defined in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that may cause actual results to differ materially from those projected. Please consider the risks and uncertainties that are mentioned in today's call and are described in our periodic filings with the SEC. These filings are available through the investor relations section of our corporate website at onebarnes.com. Let me now turn the call over to Tom for his opening remarks. Julie will provide a review of our financial performance and details of our updated 2023 outlook. After that, we will open up the call for questions. Tom? Thank you, Bill. Good morning, everyone. As we exit 2022 and enter 2023, Barnes is fully focused on driving core business execution and demonstrating meaningful advancement in our transformation journey. While I am pleased with the progress and energy to date, there remains considerable work to do. Julie will talk about our Q1 financial performance in a few moments. I would like to take time this morning to address the meaningful transition actions underway at Barnes. There are numerous products progressing across the company that will significantly rationalize overhead as we move from a holding company structure to a more agile operating architecture. These include streamlining corporate and segment overhead costs to enable Barnes to compete more effectively in the markets we serve. All levels of leadership will be structured to better serve the needs of the operating businesses to drive business performance and to support our integrate, consolidate, and rationalize initiatives. Our restructuring and transformation execution remains on track for phases one and two, announced in July and October respectively. Collectively, we anticipate approximately $26 million of annual savings with total restructuring costs of $29 million for these phases. We expect to achieve run rate savings in 2024. We are now ready to announce the final significant phase of our restructuring and transformation program. Phase III will impact our industrial and aerospace segments and address functional efficiencies globally. These products will be implemented over the next 24 months. Phase III will include aerospace and industrial facility transfers of work to generate production efficiencies and reduce costs. Last week, we engaged with the Works Council at one of our German facilities and provided notice to employees at a second facility in Germany. Some work from these locations will transition to existing production facilities in Italy and China. In the US, the company has elected to freeze the benefits associated with one of its defined benefit pension plans, which will provide pension savings over time. We will share further program details as they unfold. The total investment for phase III is forecast to be $58 million, including $28 million of restructuring charges, $16 million of external transformation-related charges, most of which were incurred in the Q1, and $14 million of capital investment. For phase III, we anticipate run rate savings of approximately $27 million in 2025. We will continue to dedicate resources to lead the execution of this program. We deliver products on time and budget. Our operations and functional teams will remain focused on delivering core business execution. With the appropriate deployment of resources, we can drive enhanced bottom line profitability effectively as each initiative is fully implemented. We will continue to provide quarterly updates on the progress being made with the company's transformation. Moving to our business operations. I'm encouraged by the organic orders and sales growth this quarter at Industrial compared to a year ago. Our targeted growth areas in the Automation business and multi-cavity mold systems within our Molding Solutions business performed well. The same is true at Motion Control Solutions, which benefited from an automotive customer stocking order in sales ahead of our Bristol plant closure. We will see a continued benefit in the Q2 as well. Therefore, a few top-line positives to celebrate in the quarter. We delivered asymmetric performance given lower organic orders and sales for our automotive hot runner product line within our Molding Solutions. China was particularly soft. The sheet metal forming product line within Motion Control Solutions generated more organic orders, though it delivered a modest increase in organic sales compared to a year ago. The European market impacted this product line. Regarding Industrial's bottom line, adjusted operating margin improved modestly year-over-year. Margins remain below our expectation. Positive pricing actions are taking hold and making a difference, but clearly inflationary pressures persist. With Molding Solutions, an unfavorable mix of lower hot runners and higher mold systems had a detrimental impact on Industrial's margin. To address pipeline opportunities, commercial feet-on-the-street investments are being made to produce a strengthening sales funnel. It is our expectation to deliver sales growth across all Industrial business units in 2023. Building the pipeline is the first step. At Aerospace, the broad-based recovery continues with deepening customer relationships generating strong orders across single aisle and wide-body platforms. The orders pipelines for both the OEM and aftermarket businesses is ahead of plan. We anticipate continued order strength with improving operational and on-time delivery performance. Additionally, our re-energized commercial outreach is presenting growth avenues with both new and existing customers. Aerospace industry trends have been favorable, with the International Air Transport Association, IATA, recently reporting that February global domestic travel was up more than 25% versus a year ago and at over 97% of February 2019 levels. International traffic was up nearly 90% for February versus a year ago and has reached approximately 78% of 2019 levels. With China's reopening, the Asia-Pacific region has seen a strong rebound. Air freight metrics likewise saw sequential improvement in February. While there are concerns regarding the global economy, air travel continues to demonstrate solid recovery and demand trends point to further improvement. These trends support our favorable view for both the OEM and aftermarket businesses. On the top line, we're generating solid revenue growth with steadily improving operational execution and efficiency. With respect to bottom line profitability, we see productivity initiatives and solid management execution driving improvement. Some of our facilities are delivering performance recovery at pace, though this is not universal. The good news is that each operational site is demonstrating performance improvement and additional productivity actions are targeted, especially within facilities where there is a significant percentage of newly hired team members. In addition, we expect mitigation of inflationary pressures through ongoing contractual price recovery and other actions. Overall, I'm pleased with the performance and competitive positioning of our Aerospace business. Let me take a moment to comment on capital deployment in our portfolio. As previously discussed, Industrial M&A activity remains paused until core business execution is stronger and more consistent. That said, we continue to identify opportunities to drive enterprise value in a more compelling fashion via ongoing strategic evaluation of our Industrial portfolio of businesses, brands, and products. Within Aerospace, we are evaluating targeted M&A opportunities with a focus on assets with a strong strategic fit with significant post-close integration opportunities and revenue and cost synergies. Before concluding, as you may have seen with last week's announcement, Stephen Moule, our Industrial Segment President, has resigned his position to accept a role in another company. I would like to thank Steph for his leadership and contributions to Barnes since joining us in 2019. I know the Barnes team wishes Steph well in his new position. In closing, we stay highly focused on driving core business execution and delivering the full value embedded in our portfolio of strong brands and leading industrial technologies. Our major restructuring and transformation program has moved past planning and comprehensively into execution. We are committed to enhancing operational and financial performance to deliver the benefits and savings of this key initiative. Let me now pass the call over to Julie for a discussion of our Q1 performance as well as some end market color. Good morning, everyone, and thank you, Tom. Let me begin with highlights of our Q1 results on slide four of our supplement. Q1 sales were $335 million, up 7% from the prior year period, with organic sales increasing 9%. Foreign exchange negatively impacted sales by 2%. Adjusted operating income was $37.2 million this year, up 17% from an adjusted $31.8 million last year. Adjusted operating margin of 11.1% was up 90 basis points. Net income was $13.2 million or $0.26 per diluted share compared to $20.5 million or $0.40 per diluted share a year ago. On an adjusted basis, net income per share of $0.47 was up 15% from $0.41 last year. Adjusted net income per share in the Q1 of 2023 excludes $0.21 of restructuring and transformation-related charges. As Tom mentioned, with today's announced phase III actions, we have reached the end of what we expect for major transformational actions. Our focus now turns to execution. Interest expense was $5.3 million, an increase of $1.7 million due to an increase in average interest rates. Other expense was $1.3 million, down $300,000 from last year, primarily driven by an increase in non-operating pension income, offset in part by foreign exchange losses. The effective tax rate in the Q1 of 2023 was 20.9%, essentially in line to the comparable period last year, though lower than 64.7% for the full year 2022. The decrease in the Q1 effective tax rate from the full year 2022 rate is primarily due to the absence of a goodwill impairment charge incurred in 2022, which is not tax-deductible for book purposes. I will turn to our segment performance, beginning with Industrial. For the Q1, sales were $218 million, up 3% from the prior year period. Organic sales increased 6%, while unfavorable foreign exchange lowered sales by 3%. Industrial's operating profit was $4.5 million versus $14.7 million a year ago. Excluding $12.1 million of restructuring and transformation-related charges in the current year, adjusted operating profit of $16.6 million was up 11%, and adjusted operating margin of 7.6% was up 50 basis points. Adjusted operating profit was impacted by lingering inflationary pressures and unfavorable mix, offset in part by positive pricing. With respect to orders and sales for the quarter across our Industrial businesses, Molding Solutions organic orders increased 6%, while organic sales increased 4%. Our multi-cavity mold system product line was very strong, with personal care, packaging, and general industrial end markets driving the orders and medical driving the sales. These were offset in part by weakness in our Synventive hot runner product line serving automotive end markets. For 2023, we expect Molding Solutions total and organic sales to be up mid-single digits. At Motion Control Solutions, organic orders were up 12% in the quarter, while organic sales grew by 7%. The business saw strong organic orders intake driven by transportation-related end markets, while we saw softness in the tool and die end market. We expect MCS to see mid-single-digit total and organic sales growth in 2023. At Automation, organic orders were up 7%, while organic sales increased 8%. We expect high single-digit total and organic sales growth for Automation in 2023. For the overall segment, we anticipate mid-single-digit total and organic sales growth for 2023, with adjusted operating margins between 9.5% and 10.5%, the latter a slight uptick from our prior view. At Aerospace, sales were $117 million, up 16% from a year ago. OEM sales were strong, up 11%. Our aftermarket remains robust, with sales growing 27% in total. Within the aftermarket, MRO was up 19%, and spare parts were up 41%. Operating profit was $18.8 million, up 14%. Excluding restructuring and transformation-related charges of $1.8 million, adjusted operating profit was $20.5 million, up 23% from last year. Driving the performance in adjusted operating profit is the strength of the aftermarket business. Adjusted operating margin of 17.5% was up 90 basis points. Our spare parts RSP business was solid in the quarter, consistent with our prior outlook. Keep in mind, while we expect similar quarterly sales levels for the rest of 2023, the prior year comparables get tougher and the year-over-year growth rates will not be as robust. In our OEM business, orders were strong in the quarter, up 13%, and the book-to-bill was 1.6x. Our OEM backlog of $793 million increased by 6% sequentially from December 2022 and was 11% higher than a year ago. We expect to convert approximately 45% of this backlog to revenue over the next 12 months. Our OEM sales outlook for 2023 is up mid-teens, a slightly more favorable view than our February outlook. For the aftermarket, we forecast 2023 growth of low double digits for MRO and high single digits for spare parts, both consistent with our prior view. Unchanged is our forecast for aerospace adjusted operating margin of between 18% and 19%. With respect to cash, Q1 cash provided by operating activities was $32 million versus a use of $9 million in the prior year period. The primary drivers of the increase are lower paid incentive compensation in 2023 relative to 2022 and a lower change in working capital compared to the prior year period. Free cash flow was $21 million versus a negative $17 million last year. Capital expenditures were $11 million, up approximately $4 million from the prior year. With our balance sheet, the debt to the EBITDA ratio as defined by our credit agreement was 2.39x at quarter end. When considering our cash position at year-end on a net debt to EBITDA basis, we'd be approximately 2.1x. Our Q1 average diluted shares outstanding were 51.3 million shares, and period end shares outstanding were 50.6 million. During the quarter, we did not repurchase any shares, and approximately 3.4 million shares remain available under the board's 2019 stock repurchase authorization. Turning to slide 6 of our supplement, let me share details of our updated outlook for 2023. We continue to expect organic sales to be up 6%-8% for the year, with adjusted operating margin between 12.5% and 13.5%. Adjusted EPS is expected to be in the range of $2.15-$2.30, up 9%-16% from 2022's adjusted earnings of $1.98 per share. This revised range reflects an increase of $0.05 from our previous outlook at the low end, given the performance achieved in the Q1. In 2023, adjusted earnings per share are anticipated to exclude a $0.56 impact related to the significant restructuring and transformation related activities announced to date. With $0.21 recorded in the Q1, we estimate approximately $0.24 in Q2, $0.07 in Q3, and $0.04 in Q4. A few other outlook items. Interest expense is anticipated to be approximately $24.5 million-$25 million, driven by a higher interest rate environment. Other income of $1 million, driven by non-operating pension. A full year effective tax rate between 24.5% and 25.5%. CapEx of approximately $50 million. Average diluted shares of approximately 51 million, and cash conversion of approximately 100%. In closing, our Q1 exceeded our internal expectations. Solid organic orders and sales to begin the year provide positive momentum going into Q2. We are modestly more positive in our earnings outlook for the year, though remain cautious of the global economic environment. Across the company, the team is actively engaged in plans to draw down inventory and improve working capital efficiency over the course of the year. Now, with the major phases of our restructuring and transformation program announced, our focus will shift to delivering the operating and financial progress we expect from the initiatives. Doing so will drive core business execution, cash flow generation, and the value creation we expect to deliver. Operator, we will now open the call for questions. Thank you. As a reminder, if you would like to ask a question, press star then one on your telephone keypad, and we will pause for just a moment to compile the Q&A roster. We will take our first question from Matt Summerville with D.A. Davidson. Your line is open. Thanks. A couple questions. First, maybe starting with the Industrial business. Can you quantify the magnitude of unabsorbed inflation that you encountered in Q1? Also how much in cost savings benefited Q1? At the end of the day, what I'm kinda trying to square is the fact that margins in that business have been coming down sequentially for three or four consecutive straight quarters. I guess I'm trying to get a feel for when we start to see that step function improvement, you know, towards the margin range you're providing for the year. I have a follow-up. Thank you. Sure. I'll give you a kind of a macro answer, and then I'll let Julie follow through with numbers. There is a lot of inflation that has come through. As you know, it kind of comes through the order book first, Matt, and then through into the P&L. We have, over the course of the second half of last year through the order book, largely through pricing and productivity actions, been able to offset the effect of inflation coming into the order book. As that has cleared off into our P&L, we were behind in 2022. Into the Q1 in Industrial, we've largely are on a parry pursue basis with inflation. Going forward, my expectations are now that we have the pricing initiatives that have taken effect over the past six-nine months that I've been on board that as it's clearing through the order book into revenue, we'll be ahead of inflation into 2023 as the year continues to move forward. Kind of, as you said, quantifying unabsorbed inflation in Q1, I think we've done a reasonable job of offsetting inflation effects in the P&L in Q1. We were definitely behind in the second half of 2022. I'll give an opportunity for Julie to quantify the positive effect of some of the initiatives on phase I and phase II that have affected Q1 and what it looks like for the remainder of 2023. Hey, Matt. Good morning. In terms of benefits coming through the P&L, in the Q1, it's largely, benefits of phase I and two that are starting to flow in, and it was less than $2 million in the quarter that we're starting to see. That will ramp largely in the second half of the year when we hit run rate starting in 2024. It was a de minimis impact in the Q1 of the year, but as I mentioned, we're gonna start to see that ramp slowly over the course of the year. In terms of the margin movement that we've seen, you know, sequentially, there's been a variety of factors that have contributed to that. You know, going from Q2 to Q3 last year, there was some noise coming out of EC with the plant closures, what was happening, especially with inflation at that period in time. Per Tom's comments, we were still not keeping pace with inflation, not only in EC, but across the rest of the portfolio. We saw a bit of a dip in Gimatic in the Q3. Going from Q3 to Q4, there was a one-time charge that we took, some inventory true ups that we had in the Q4 that impacted the margins there. As Tom spoke to going from Q4 to Q1, it's really a story about the impact of mix in Synventive. The volume was down. The Asian market was down, where margins have historically tended to be higher. We saw an increase in engineered components, as we mentioned, as we received some stocking orders. My expectation is that we will start to see us now have steady performance in those margins over the balance of this year. Steady improvement. I would not anticipate seeing the ebbs and flows that we saw in prior year periods. Got it. As a follow-up, just sticking with industrial, maybe can you give a little more color on the benefit you saw from that stocking order, either from a top or bottom line standpoint, as we think about that in the context of, you know, the go forward organic cadence for the industrial business? You know, Tom, it sounded like in your prepared remarks, phase III at least, if not phase I and two, is fairly European heavy from a restructuring standpoint. We know that's not an easy feat, especially in some of the countries you're talking about. Maybe give a little more detail to the extent you can. What are we talking about in terms of number of rooftops, timing, how kinda you think about being able to meet the objectives you set forth from both a cost and saving standpoint with phase III? Thank you. Sure. I think the short answer on the stocking order is that we really won't give too much color on that. It's a positive effect, but it's not something that's so noteworthy that we're gonna break it out, Matt. The good news is that we've retained a lot of business with the Bristol move. We've performed well for the customers, and that product was coming in on time. As expected, as you go through the shutdown period, you typically take final stocking orders before they place the orders into the facilities that will be supplying them going forward into the future. A small reminder is there's some revenue that we do not plan on moving going forward because of poorer margins of that facility, so we've discontinued some of those product lines. In the overall mix. The product's moving well, the wind down is moving well, and the, you know, this comment around really the last stocking order is more of an indication of that's usually the final step for the final production runs before shutting down the facility, and it's on schedule. It's positive, it's not a meaningful enough effect really to give you a lot of color on it. Phase III is a global initiative, Matt. It affects rooftops, both on the pitching and catching end in the Americas, in Asia, in Europe, and China. We've comprehensively looked at overhead across the organization, and there are overhead actions in this initiative that are at all levels of the organization. It also has multiple rooftops, a handful of rooftops that are affected in terms of consolidating our manufacturing footprint to drive more volume, higher capable facilities globally. There are European facilities involved. I noted there are several in Germany already. As you know, we've, in phase I and phase II, had a similar approach on these global initiatives where there's been rooftops affected in the Americas as well as in Europe as well as in Asia. Part of balancing phase I and phase II and phase III is to spread these rooftop consolidations out over time. We've done a very nice job of it. Despite already doing multiple facilities in Europe in phase I and phase II, we've kept those products in scope on schedule and on target. My confidence level on cost savings in achieving the objectives we've laid out is very high. We have dedicated resources in a business transformation office that are doing these projects. They're separate from the business operational teams. The level of rigor that we've used is very similar to what I've seen used in the past. I expect these, despite having a European footprints that are affected, that they will remain on schedule and be executed just as crisply as phase I and phase II, and we'll realize the benefits in phase III, just like we are realizing in phase I and phase II in terms of timeframe, investment, and savings. Appreciate the color. Thank you, guys. Welcome. Thank you, Matt. We will take our next question from Christopher Glynn with Oppenheimer. Your line is open. Thanks. Good morning. Good morning, Chris. On the restructuring, I was curious to hear about what you're looking at for the cash spend relative to the $58 million and the $29 million P&L investment for the three phases. How are you thinking about the cash component of that? Chris, for this year, the net cash impact will be about $34 million is what we're looking at, and the majority of that will hit the first half of this year. There was a chunk already in the Q1 associated with the first couple phases primarily. Q2 is another big cash outflow quarter as it's forecast, and it trails off over the back half of the year. Okay. then just taking a broad look at what you're doing across the three phases with the enterprise, the ambition's admirable, the overall action-oriented plan, but it's not easy to do, I wouldn't think. There's culture and habits that, you know, will be in conflict at times. wondering what some of the bespoke challenges you're seeing or anticipating and how responding as you shake things up. Well, it's been, as you know, Chris, a busy nine months since transitioning in the CEO chair with Julie. We have been consciously progressing a phased approach to this so that we don't result in a cultural revolution as part of this process. It's an evolution. We very consciously have been doing this across the industrial portfolio as a team. It's been a lot of communication. I've been to almost every industrial major operating facility globally. As we've led with communication and clarity with what our plans are around our strategy to the team, we've recruited in leaders that have been able to execute either the programs or the core business execution to back this up. We've done that in a fashion that's very professional, highly communicative, so that we end up making sure that the company understands why we're doing these things. This is oriented, like we say in our initiative, around integrating the company, consolidating facilities, and rationalizing overhead. They're very clear on what the end objectives are, and each piece obviously fits that macro. I find the communication and clarity and candor is very important to make sure that the culture is coming along. It's not an easy journey. I've done a lot of this in my career, as well as other leadership team members, including Julie. I would say is, you never can communicate too much, but it is really driven by the leadership team and the consistency of performance. I think, when we started this, you know, last year, after just getting on board with Julie, it's much harder to gain momentum in this area. Today, we have a lot of momentum. We have products completing. With that momentum, it's a lot easier to undertake phase III, which is much larger in scope. It's across the entire company, including aerospace, industrial, and the overhead structures. That is really the momentum with phase I and phase II has really set that up to be possible. Last comment I'll make is this is in full coordination and synchronization with the board of directors. We have very tight governance and management of these programs. I think in totality, there's individual line items that are over 60 line items of initiatives that we're running. I'm quite pleased with how professional we're doing it. Thus far, the culture has been evolving along to a more integrated company, you know, and in the process quite nicely. You know, with only nine months in, I'm quite pleased with how far we've gotten already. That sounds great. I'll leave it there. Thanks. Welcome. We will take our next question from Michael Ciarmoli with Truist. Your line is open. Hey, good morning, guys. Thanks for taking the questions. Welcome. start to the year here. Good morning, Mike. Tom, Thanks. I guess just the confidence level in the second half industrial margin expansion, you need to run rate, I guess, something just over 10%. I feel like we've been here, we've done this before with bad results, and there's always been, you know, some sort of, you know, forecast embedded in the outlook outside of your control. I just wanted to get, you know, the comfort level, maybe some of the variables. If I look at, you know, maybe the negative variables that you outline in the deck for 2023, you know, I don't see any disruption in there. I mean, just going back to this phase III, it's got a lot of movement, a lot of consolidation. You know, wanted to get a handle on the risk there and maybe specifically on aerospace, if you're moving anything to new facilities into different geographies, is there re-qualification risk? Is there timing risk on some of those products specifically? Yeah. I think his confidence level is high. Workload is high. There's a lot moving in parallel, Mike. One clarification on facility consolidations. Most of the facility consolidations we've done in phase I and phase II, and also for phase III, both in industrial and aerospace, we're moving our operations and production from facilities to existing Barnes facilities that already make similar or the same products. If when you're moving a facility to an existing facility and kind of consolidating your volume, especially if you can move it to a site that has labor advantages, cost advantages, you're moving all of your production into a central location. It requires qualifications for the moves with customers, but it isn't like a greenfield de novo product where everything has to be re-qualified from day one. Those are much more- Got it. complex. As you fairly point out, Mike, they're sometimes timeline unpredicted. The approach we're taking is very logical to aggregate our volumes into central facilities, create larger leverage by having, you know, more volume through that rooftop. That takes place through the industrial moves. It's taking place through the aerospace moves as part of this project. We really get down by product line and by customer. Having done a lot of this in my career, the approach we're taking has been very successful using this approach and not trying to do de novo projects. You can imagine with focus in 2 areas, core business execution and the initiatives around integrate, consolidate, rationalize. We know there's inflationary pressures, high interest rates, global dynamics, geopolitics, potentially a looming recession. Our job is to manage all of those effects and have the ability to actively manage the business in a way that can mitigate those. We're not immune from global pressures, part of the idea behind focusing one set of the team on core business execution to driving success and other on initiatives, we get both done. Given that we're working on those two and investing heavily in those two areas to deliver results, we have a degree of cautious confidence that we'll be able to deliver against the year when we average out the mix of all these effects, some in our favor, like aerospace or industry recovery, some potential looming negative effects, but we've got to manage them all, and we do it actively. The initiatives, obviously, we're leaning into extremely aggressively here because we know we need to become a more efficient and effective company, so we can afford more investments into the markets we're trying to penetrate, either geographically or product-wise. Is, you know, my confidence level is high just because we've already successfully been doing this in phase I and phase II to plan. I think phase III, while larger in scope, is a similar type degree difficulty projects for us to deliver against. Got it. That's helpful. I guess, you know, not to put the cart ahead of the horse here, but if I look at the total run rate savings, $53 million, how much of that is gonna actually drop to operating income? I mean, clearly, there's inflationary costs that are gonna be sustained, whether it's labor, what have you. I mean, should we be thinking you can take this 18.5%-19.5%, you know, with these kind of run rate savings once we get out past 2025? Mike, thanks for the question. Very leading and very forward-looking. I would say that as I've, as I've said before, when we, you know, address this question, the expectation is with the core business even though it's a very different world pre-COVID and post-COVID, with where Barnes is going in terms of executing against core business and with the integration, consolidation, rationalizing initiatives, our first objective is to get to the return of our revenue and profitability to levels that are pre-COVID. Even though the macroeconomy and the global dynamics and interest rates and FX and everything has all changed, our job is to get the company more efficient and effective to be able to serve the markets with levels of performance that are at or above where we've historically been. So it's a journey. You know, I've only been aboard nine months working with Julie and the team. We've made a lot of progress. As you fairly pointed out, to get back up into the mid-teens margin, which, and higher, where are these plans and strategies are being invested in to deliver, we've got a lot of work to do. Directionally, you know, although we have not reconfirmed what we communicated in Investor Day for December of 2019 timeframe, is our objective really is to continue to press very hard for, excuse me, I said 2019, in the 2021 timeframe, we continue to press very hard to return the profitability, of our revenue streams back to those levels. Got it. Got it. Helpful. Thanks, guys. I'll jump back in the queue here. Thanks. Thank you. We'll take our next question from Myles Walton with Wolfe Research. Your line is open. Hi, good morning, everyone. This is Greg Dahlberg on for Myles. One quick question on the OEM outlook. It looks like it kicked up from mid-teen this quarter to low double digits previously. I guess, is that more confidence in OEM production and kind of supply chains in general, or can you talk through the pieces there? Certainly. We are very output driven right now, there is a lot of supply chain pressure, Greg, within the OEM as it's ramping back up again. I think that's well documented across a lot of industry publication and information that's already disclosed at other companies. We have a lot of backlogs that we're working off. As you know from our comments, we've been staffing up our teams and trying to get them more efficient and productive from an output perspective. I would say we are, you know, certainly have supply chain constraints on, you know, materials and castings are typically, you know, we're very sensitive to. As right now, we're trying to do the best we can to get more out the door against customer requirements. I still think there's a fair amount of recovery on the OEM side. In a, in a, in a different way on the aftermarket side, with obviously more flying occurring, the aftermarket has also recovered, and we're in a similar situation where we're trying to get our outputs up on the aftermarket side to match pace. We are, you know, obviously providing that kind of teens guidance, driven by just trying to catch up with, you know, the pull of the overall industry as air volume is, you know, on single- and wide-body is recovering. I would say just in general is, that recovery, we're just behind on, and we're pushing hard to continue to catch up. I think it'll take most of 2023 for us to try to run this down. As the industry continues to strengthen, we're gonna have to keep speeding up to maintain pace. It's a favorable set of circumstances, but we have a lot of operational challenges to onboard people and get the supply chain of raw materials, castings, et cetera, into our plants to be able to keep pace. I do think there's gonna be a delicate balance over the course of 2023. Got it. Thanks. That's helpful. Just one quick one on leverage. I think you guys are sitting at just around 2.4. in the quarter. You know, the, the target from the 2021 Investor Day was 2.5x. I guess, flowing that into the core business execution, you know, the restructuring or efficiency plans, is that kind of the right target to think about more longer term, or does that change as efficiencies flow through? I'll let Julie take that. Yeah. Greg. 2.5x, I think, is a nice target range for us. It really depends, though, strategically on what's happening. As Tom mentioned, you know, we're assessing acquisition options. If something were to go through, that leverage range may change. Honestly, in the current interest rate environment, we're working to see what cash we have available. We want to minimize interest expense. Looking at maybe channeling cash to pay down debt a little would take that leverage ratio down in the near term. In terms of a long range point where we'd like to keep things, there's not really been a change in our point of view on around a 2.5x. Got it. Thank you. That's helpful. I'll hop back in the queue now. As a reminder, it is star one if you'd like to ask a question. We will take a follow-up question from Michael Ciarmoli with Truist. Your line is open. Hey, thanks for taking the call, guys. Just on the hot runner weakness, I guess, into the auto market. I mean, Thomas, you're getting into this business, and kind of turned everything upside down. Yeah, what should we really be looking at to gauge the health of that business? Is it model changes or is it really production or, you know, what's kind of the view there? Yeah, it's a great question, Mike. Is, it's different by zone. I think, for us on the automotive hot runner side, this has been a business for us in North America. It's getting better penetration into the North America market, feet on the street, and getting in front of customers more aggressively. In our European business, I think as you know, we've made a lot of investments last year to bring on feet on the street and be able to be more competitive at penetrating accounts in Europe. We do have competitive pressure in Europe that's significant competition. We feel we've got some really nice product line capability. On the margin side, part of our cost actions in phase III are to address high-cost basis operations that we have in this product line to be able to drive better margins by having manufacturing done in lower cost environments to get at profitability. I think on the Europe side, our commercial investments in the automotive hot runners areas have been quite successful already that we've invested in. The last thing would be Asia, China. There, the story is more one of product lines. As you know, in China in particular, we've historically been very oriented towards selling our automotive hot runner product lines, which is a very premium product line to Westernized OEMs manufacturing in China. As that market is growing and shifting to a 100s literally of HEV and EV type vehicle customers that are China-based, we've not historically sold into that channel. We don't have a product line that's matched into that channel. In that area, we've re-energized the commercial team. We're reorienting it away from just the large multinational OEM automotive manufacturers towards the domestic manufacturers. From my experience at, you know, before coming to Barnes that I had in the automotive industry and molding, especially with large operations in China, this is a distinct product line shift that has to occur between what a multinational company and a kind of a, you know, like a Chery Automotive, a BYD would order. We're reorienting the product line and, you know, we're reconstituting the commercial team there. Expectations is overall in automotive hot runners should be a growth area for us, Mike. It has not been because we have incorrect solutions by zone. It's a very granular answer for you, but the solution sets are different by Europe, America, and China based on the realities of those markets. A good thing about it is we've done a good job of diagnosing it. Now we're getting in and putting these solutions in place to drive growth. Got it. That makes sense. Thanks, guys. You're welcome. With no further questions at this time, I will now turn the call back to Bill Pitts for closing remarks. Thank you, Abby. We'd like to thank you all for joining us this morning and look forward to speaking with you next in July for our Q2 2023 earnings conference call. Operator, we will now conclude today's call. Thank you. Ladies and gentlemen, this concludes today's conference call, and we thank you for your participation. You may now disconnect.