Good morning, welcome to Tenneco's second quarter conference call. All participants will be in only-listen mode. If you need assistance, please signal a conference specialist by pressing the star key followed by 0. After today's presentation, there'll be an opportunity to ask questions. Please note that this event is being recorded. I'd like to turn the call over to Mr. Rich Kwas, Vice President of Investor Relations. Please go ahead. Thank you, and good morning. Earlier today, we released our second quarter 2021 earnings results and related financial information. A presentation corresponding to our prepared remarks is available on the investors section of our website. Please be aware that our discussion today will include information on non-GAAP financial measures, all of which are reconciled with GAAP measures in our press release attachment and other earnings materials. When we say EBITDA, it means adjusted EBITDA. Unless specifically described otherwise, margin refers to value-add adjusted EBITDA margin. The earnings release and other earnings materials are available on our website. Additionally, some of our comments will include forward-looking statements. Please keep in mind that our actual results could differ materially from those projected in any of our forward-looking statements. In the near term, we are looking forward to participating in three virtual conferences, including the JP Morgan Automotive Conference on August 12th, the Jefferies Aftermarket Conference on September 9th, and the RBC Industrials Conference on September 10th. We look forward to speaking with many of you. Our agenda for today will start with CEO Brian Kesseler reviewing the highlights from the second quarter. COO Kevin Baird will provide more details on our enterprise and segment performance. Our CFO, Matti Masanovich, will discuss our balance sheet and updated outlook for 2021. Brian will then provide concluding remarks on our shareholder value creation priorities before we take your questions. Now we'll turn it over to Brian. Brian? Thanks, Rich. Good morning, everyone, and welcome. There are three key themes in our results that I'd like to highlight today. First, our solid operating execution. Second, our free cash flow performance. Third, our strategies to enhance growth and shareholder value. Let's start on page four. We delivered solid results in the second quarter. We outperformed market growth in our OE businesses, supported by strong growth in our most important geographies and favorable platform mix. Like other auto suppliers, we encountered unforeseen light vehicle production downtime from our customers and escalating raw material costs. We mitigated these headwinds to deliver revenue and EBITDA at the top end of our second quarter guidance. We delivered in excess of 20% conversion on year-over-year volume growth, despite $100 million of temporary cost savings implemented in the prior year period. In addition, our Accelerate Plus program is generating structural cost savings that will improve margins, and we remain on track to achieve the program's $265 million in annual run rate savings by year-end. Second, our focus on increasing cash conversion through disciplined CapEx spending and improved working capital efficiency continues to yield results. During the quarter, we generated $116 million of free cash flow for debt service, bringing our first-half free cash flow for debt service to $42 million. As a reminder, Tenneco has historically experienced negative free cash flow in the first half of the year. At quarter end, our net leverage ratio improved to 2.9x. Third, we remain highly focused on increasing shareholder value in the near term by reducing our net debt via margin expansion and lowering our capital intensity. Our Clean Air and Powertrain segments play important roles in delivering results because of their margin and cash flow contributions. At the same time, we are investing in our Motorparts and Performance Solutions segments to enhance our long-term growth profile. In Motorparts, we secured new business with a variety of customers in North America and Europe, which is expected to deliver annualized revenues of $30 million on a go-forward basis. In Performance Solutions, we also won incremental battery electric vehicle business in the quarter, which Kevin will discuss in more detail later in the call. I'm proud of the entire Tenneco team for their resolve, resiliency, and commitment to achieving our business objectives. Turning to page five, I'll walk through an overview of our second quarter 2021 results. Second quarter total revenue was $4.6 billion, up 74% year-over-year as we lapped the Q2 2020 COVID quarter. Included in total revenue are pass-through substrate sales of $1.1 billion. As a reminder, substrate sales are only in our Clean Air segment. The OE manufacturers source the catalytic converter and diesel particulate filter components that include precious metals or substrates directly from the tier 2 supplier. Those substrates are carried in our inventory, incorporated into our emission reduction systems, and are passed through to the customer at cost plus a small handling fee. For the quarter, both value-add revenue and EBITDA came in just above the top end of our guidance. Driven by our diversified and balanced portfolio, value-add revenue was $3.5 billion, up 68% year-over-year, excluding the impact of foreign currency exchange rates. This compares favorably to second quarter industry light vehicle production growth of 49%. The scale and diversity of our portfolio is a differentiator for Tenneco. The value-add revenue split by product application shows that just over 50% of our business is generated from aftermarket and commercial truck off-highway and industrial applications. Taking that a step further. In the light vehicle portion of our Performance Solutions business, 64% of our revenue this quarter is unrelated to OE light vehicle ICE technologies. Our constant dollar value-add revenue performance is very strong in all markets and includes 81% growth in light vehicles, 91% growth in commercial truck, off-highway, and industrial, and 43% growth in aftermarket and OE service. This diversity extends geographically as well, with North America and Europe each around 40% and China at 13% of our value-add revenue. We delivered adjusted EBITDA of $356 million, resulting in a margin rate of 10.2%. The strength of our end market, product, and regional mix and the team's strong profit conversion on that additional volume drove our outperformance in the quarter. The outperformance extended to free cash flow generation and net debt reduction. We delivered seasonally better first half cash flow for debt service and ended the quarter with a net leverage ratio of 2.9x, a 1.4x improvement since the end of 2020. Available liquidity remains strong at $2.2 billion as of June 30th. To sum it up, our portfolio continues to enable strong earnings performance and cash flow generation for net leverage reduction. I'll now turn it over to Kevin for a review of the enterprise and segment performance. Kevin? Thanks, Brian. I'll start on page seven with our enterprise performance. Another benefit of our diversified portfolio is our favorable OE platform mix in North America, where around 85% of our light vehicle revenue is weighted toward SUVs, CUVs, and pickups, enabling us to outperform market growth in the quarter. In the aftermarket, our Motorparts segment grew 10% sequentially from Q1 to Q2. While the second quarter is historically the strongest quarter of the year in the aftermarket, that is twice the sequential growth rate that we realized back in 2019. As Brian mentioned, the team executed well, and we experienced strong EBITDA conversion on the higher volumes. Of note, our performance in the quarter includes an approximate $15 million benefit from a material cost-driven inventory revaluation that will reverse into cost of goods sold in the third quarter. Solid contribution from our Accelerate Plus program and other continuous improvement initiatives were able to partially offset last year's temporary cost actions and continuing supply chain disruptions and cost challenges. Overall, we showed solid execution in an uneven light vehicle production environment. Let's turn to our Motorparts business performance on page eight. Second quarter aftermarket revenue was $794 million, up 39% year-over-year on a constant currency basis. The strong order book we saw at the end of the first quarter continued through the second quarter. Also in the quarter, we secured roughly $30 million of annualized new business in North America and Europe, which has begun to contribute to our base. We continue to focus on growth initiatives in China, including expanding our share of our leading brands with key distribution customers, developing 35 new customers covering 12 cities, and conducting product training sessions for technicians. Adjusted EBITDA for the quarter was $118 million, up both year-over-year and sequentially. Margin was 14.9%, up 220 basis points compared to the prior year, as we saw strong profit conversion on increased volume and mix. The sequential growth in North America revenue, our largest region, supported the improved margin performance in the quarter. Please turn to our Performance Solutions segment on page 9. Second quarter revenue was up 81% in constant currency to $715 million, with very strong growth across all markets. Light vehicle product applications were up 80%. Commercial truck, off-highway, and industrial was up 147%, and aftermarket and OE service applications were up 45% year-over-year. As a reminder, product lines in this segment are agnostic to the powertrain technology in a vehicle and include a broad offering of highly engineered products and solutions to our customers. For example, during this quarter, our Öhlins-branded product with the Advanced Suspension Technologies business was selected as the exclusive shock absorber for the NASCAR Cup Series Next Gen car. AST further strengthened its relationship with an important strategic growth partner in Europe and also launched production of advanced suspension programs on two electric SUV platforms, one in Europe and one in China. Looking at battery, electric vehicle, and hybrid business awards across the five Performance Solutions business units, in the first half of the year, we won 52 new programs, 26 of which were awarded in the second quarter. In 2021, we are launching 21 BEV or hybrid programs with annualized revenue of greater than $160 million and importantly, over 1/3 of our new business pipeline and nearly 1/3 of our year-to-date awarded business is battery, electric vehicle, or hybrid. Adjusted EBITDA of $42 million in the second quarter increased to $76 million year-over-year for a margin of 5.9%. The business delivered good profit conversion on the higher revenue. We expect to improve margin performance from the current level in the near term. On page 10, you can see Clean Air's results. Clean Air value add revenues were $943 million, growing 76% year-over-year, excluding foreign currency effects. Light vehicle value add revenue expanded 72%. OE service increased 84%. Clean Air's Commercial Truck and Off-Highway value add revenues grew 87% year-over-year. China Commercial Truck and Off-Highway revenues doubled compared to the second quarter of 2020, boosted by the ongoing adoption of China 6 emission standards. Strong volume recovery in North America and Europe also supported the segment's value add revenue growth. Commercial truck, off-highway, and industrial made up 26% of the segment's value add revenues in the second quarter, compared to 19% for all of 2020. Adjusted EBITDA was $146 million compared to $38 million in the prior year period. Value add adjusted EBITDA margin was 15.5%, representing an 810 basis point increase compared to the prior year period. Solid conversion on the significant volume increase and the increased commercial vehicle revenue mix were the main drivers of the margin improvement. A summary of Powertrain's performance is on page 11. At constant currency, revenues increased 81% compared to the second quarter of 2020. Light vehicle revenues increased 94% year-over-year, benefiting from the significant volume recovery in North America and Europe, where the business has its highest content applications. Commercial truck, off-highway, and industrial sales increased 76% year-over-year. Recovery in the developed markets was the key contributor to the growth. OE service revenues increased 57%. Adjusted EBITDA was $102 million in the second quarter compared to a $28 million EBITDA loss in last year's quarter. Adjusted EBITDA margin was 9.7%. We delivered good operating conversion on the higher volume, supported by restructuring benefits as well as increased JV income, all driving the year-over-year improvement. I'll now turn the call to Matti to discuss our balance sheet and guidance. Thanks, Kevin. I'll begin my comments on page 13. At the end of the second quarter, our net leverage ratio was 2.9x, which represented a 1.4x improvement from our year-end ratio. The elimination of our second quarter 2020 EBITDA from our trailing four-quarter EBITDA helped reduce our net leverage ratio. Additionally, our positive free cash flow performance in the second quarter boosted the reduction. As Brian said, we delivered $116 million of free cash flow for debt service in the second quarter, bringing our year-to-date total to $42 million. Our continued focus on networking capital efficiency and reducing capital expenditure intensity is driving higher free cash flow. Our liquidity was $2.2 billion at the end of the quarter and included over $700 million of cash on hand. We have no significant near-term debt maturities, and our revolver had no balance drawn at quarter end. Our revolving credit facility and Term Loan A mature in September of 2023. We remain opportunistic regarding our future refinancing needs. Page 14 shows our updated 2021 guidance and expectations for the second half of 2021. We increased our fiscal year 2021 value-added revenue guidance to a range of $13.8 billion-$14.1 billion, which compares to our prior range of $13.5 billion-$14 billion. At the midpoint, the adjustment represents an increase of $200 million versus the prior outlook. The projected increase in revenue is driven by material cost recovery in the second half in the form of higher prices, offset partially by lower light vehicle production relative to our initial expectation for the second half of the year. Our updated full-year global light vehicle production estimate at midpoint is 78.5 million units, down from our prior assumption of 80 million units. On a year-over-year basis, our updated production assumption implies an 11% year-over-year decline in second half light vehicle unit production. Relative to IHS, we are more conservative in Europe and North America, our top two markets for light vehicle revenues, because of the ongoing uncertainty around semiconductor availability. We have seen incremental production downtime in both regions in July and August. We are planning for global light vehicle production to decline sequentially from the second quarter to the third quarter, followed by some recovery in the fourth quarter. For the second half of the year, we are planning commercial truck, off-highway, and industrial volumes to decline from the first half levels but still show growth year-over-year. Our aftermarket volume is typically down in the second half of the year versus the first half, and our guidance assumes that seasonality. We are reconfirming our 2021 full-year adjusted EBITDA guidance of $1.4 billion at the midpoint and narrowed the range to $1.36 billion-$1.44 billion. At the midpoint, our updated guidance represents an adjusted EBITDA margin of 10%. Our updated guidance includes over $250 million of material cost recoveries via higher price in the second half, which comes in at zero margin. Our commodity price escalators are on a lag, and we have begun to recover higher commodity costs absorbed in the first half of the year. Because the recoveries benefit our sales at zero margin, it has a dilutive effect of approximately 40 basis points on the overall margin in the second half of 2021 and a 20 basis points dilution for the full year. We expect the third quarter to have lower margin than the fourth quarter as the material recoveries are weighted to the fourth quarter. With the expected continued escalation of material costs, we anticipate the recovery lag will extend into the first half of 2022. As a reminder, our third quarter year-over-year EBITDA comparison includes $50 million of temporary cost savings that do not recur this year. For the full year, we continue to expect year-over-year savings of $110 million from our Accelerate Plus cost reduction program. We expect our net debt to fall below $4.2 billion at year end, consistent with our prior guidance. We have lowered our guidance for capital expenditures to a range of $425 million-$475 million, down $25 million from our prior outlook. Our forecast for cash taxes remains the same at $140 million-$160 million. Before turning the call back to Brian, I want to emphasize that we are more conservative than current IHS projections for the second half of the year and feel confident about our ability to execute our plan. Industry light vehicle inventories are at all-time lows, and underlying consumer demand is solid. As the automotive industry's existing supply constraints unwind in coming quarters, the current industry landscape bodes well for us to deliver top-line growth and enhance profitability and cash flow in 2022 and beyond. I'll now turn the call back to Brian for concluding remarks. Thanks, Matti. Turning to page 15, we'll close with a summary of our key priorities to enhance shareholder value. With our focus on driving continued operating performance improvement and strengthening our balance sheet, we're delivering higher free cash flow for debt service, and it is yielding tangible results. We see this as the key component to unlocking significant near-term shareholder value creation potential. As we have indicated, the Clean Air and Powertrain businesses are our cash engines and will help fund our net debt reduction targets and support investments in the targeted growth areas of our portfolio. Going forward, our capital allocation priorities remain consistent. First, funding organic growth and cost competitiveness. Second, reducing our net debt. Third, after reaching our midterm net leverage ratio target of 1.5x-2x, evaluating strategic investments in Motorparts and Performance Solutions Advanced Technologies. From a long-term value creation perspective, our Motorparts and Performance Solutions markets possess favorable macro trends in the evolving mobility landscape, and we expect our planned investments in these segments to drive above-market growth. In our Clean Air and Powertrain segments, we see new business and incremental content opportunities available globally that can boost each segment's Commercial Truck, Off-Highway, and industrial mix of revenues to 50% before the decade is out. The combined potential of the market outgrowths in our growth engines and the revenue mix shift in our cash engines have us targeting revenue from OE light vehicle ICE product lines to be less than 20% by the end of this decade. In closing, we believe the combination of better operating performance, a stronger balance sheet, and consistent above-market growth opportunities in our core growth platforms is a compelling case to increase long-term shareholder value. The Tenneco team's performance the last four quarters should serve as strong evidence that our company is capable of consistently delivering on our commitments. We remain committed to the disciplined execution required to deliver our core objectives in the coming quarters and years. On behalf of the entire leadership team, I'd like to thank the more than 73,000 Tenneco team members around the world for their commitment and resilience and for taking care of each other and working to keep our facilities operating safely. We're proud of the high level of service they deliver to our customers as they continue to drive improvements in our business performance. Thank you for taking the time to join us today. Operator, we'll now answer any questions. I'll begin the question and answer session. To ask a question, you may press star, then one on your touchtone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. At this time, we'll pause momentarily to assemble the roster. First question comes from Ryan Brinkman of JP Morgan. Please go ahead. Hi. Thanks for taking my questions. Could you maybe talk a bit more about the drivers of the continued stronger growth over market in both the light and commercial vehicle, off-highway, and industrial end markets? How much of this, roughly, could be attributable to some of the segment mix changes we're seeing as a result of the semiconductor shortage situation with, for example, automakers preferencing allocation of scarce chips toward more profitable trucks and SUVs, which you tend to supply more into than passenger cars, versus how much might be driven more by backlog revenue, conquest wins, or regulatory-driven content gains? Thanks. If I start with the light vehicle, Ryan, I would say our portfolio mix in North America is over 85% indexed to light trucks, SUVs, CUVs. With those platforms really being the primary profit drivers for our customers, it's obvious they've prioritized those when the semiconductors are available. I think that's helped us. Obviously, we continue to pick up business in some of our different business lines across the board, so that always helps. From a commercial truck off-highway industrial standpoint, very strong off-highway year-over-year that we see, and the commercial truck was stronger, primarily North America and in Europe. From a content perspective, China 6 and Bharat 6 for our Clean Air business is really helping us outperform the market in those two regions that are still catching up on the regulatory requirements for emissions. Okay, great. Thanks. I see that you're de-levering faster than expected, driven more by the faster than expected improvement in EBITDA, given that free cash flow for you guys tends to be more back-end loaded in the year, right? As the cash does come in in 3Q, and I think historically been weighted even more to 4Q, should we be expecting the next stage of de-levering to come in the form of debt paydown in the back half? Is it more the Term Loan A that you'd continue to chip away at? Does your comment, I think about being opportunistic about future financing needs suggest something may be different? What's the next step with regard to the balance sheet? Yeah, I think we mentioned, it's Matti speaking, Ryan. We'll be opportunistic like we have been. We've done two refinancings over the last six months. We'll continue to look at the market and refinance when it's open and when it looks good for us to enter the market. We do have September 2023. We've got the Term Loan A and revolver that mature. We will need to go to market over the course of the next year at some point to refinance that. I'd say that we are back half loaded. If we do pay down debt, it would go against the Term Loan A, that's a fact. We'll make that decision as we get there. We are seeing choppiness, as I alluded to in my comments, in July and August with chip supply. We are seeing a volatile market. I think we'd want to get through that volatility, make sure we've got the right construct in place, and then we would look to pay down debt. That is essentially how we're managing affairs of the company. Yeah, Ryan, if I could, I'd just add to that a little bit and really pick up on Matti's comments in the presentation. I think everybody's a bit surprised at the lower production numbers that we're kind of being counted on. As we mentioned, we were planning about 80 million units in the light vehicle global build for the year. We've lowered that now based on what we see and what we are hearing from our customers. I think as those supply chain constraints kind of get worked out over the next three, four quarters, there's pent-up demand, all-time low inventories. As that revenue comes back, we're obviously poised to execute that. That will come back stronger, we anticipate. The conversion on that will drive margins, which will help the leverage ratio and drive cash also. We're looking forward to the supply constraints getting solved once and for all. I do think it's probably going to be second half, and that's what we're hearing more and more of our customers. Not that this current downtime is going to go. It should get better from what we hear, but I don't know it'll be completely resolved until mid-year 2022. Okay, thanks. Last question with regard to the comment on slide 15 about evaluating strategic acquisitions versus return to shareholders. Is this different versus prior when I think you were maybe more solely focused on debt paydown in order to consummate a separation of the drive business? If you were to consider pivoting toward acquisitions or even return of capital to shareholders, a luxury option you didn't have previously, what does that imply about your desire or not to continue to pursue a separation of the businesses? Yeah. I think you have to take that in context because they're in priority order. When we talk about our available capital to allocate, we first go to funding our organic growth, then fund the secured business that we are receiving, making sure that we do the restructuring to continue to be competitive in the marketplace, and then it's net paydown. The only time we'll drift into strategic acquisitions is once we reach our midterm target of 1.5x- 2x on our leverage ratio. We'd be slightly optimistic if a smaller opportunity came up to bolster Motorparts or bolster the ride businesses, the Advanced Suspension Technologies businesses in the portfolio. We're solely focused right now on debt reduction, because we see that as really the best near-term potential to drive significant shareholder value. Very helpful. Thank you. Thank you. Thank you. The next question is from Colin Langan of Wells Fargo. Please go ahead. Oh, thanks for taking my question. Just looking at the outlook, it looks like I think roughly 80 basis points of EBITDA margin declines are expected in the second half. I think you mentioned 40 of that is commodity related. What is the rest of the weakness? Is that just decrementals on lower sales, or are there other factors that we should be thinking about into the second half? Yeah, we called it a couple factors. Clearly, sales are going to be off lower in the back half than the front half, they'll be decremental on the sales. That'll come through in what I'll call our normalized technical margin that we've discussed in the past. There's also the $15 million we talked about Q2, the inventory rebound that's going to flow into the third quarter. The 40 basis points on the material cost with revenue coming in at zero margin. Yeah. Okay. What was the outlook originally for commodities, and what is it kind of looking like now? You mentioned $20 is the full year headwind. Yeah. The outlook was obviously much smaller than this. I will say, Colin, having kicked around in the industry for 25 or so years, there's always those commodity increases for specific commodities. You hear about steel or polypropylene or other commodities over the years. I can tell you, for me, this is the first time I've seen almost every commodity we have going up double-digits or more year-over-year. We get the luxury of kicking in freight costs are kind of way elevated from a year-over-year basis. We plan nowhere near that. Our commercial teams and our business line and customer teams are hard at work offsetting those with cost savings objectives, obviously, but then the recoveries for the commodities. I will tell you this, these commodity cost increases can't stop at one point in the supply chain, and it's not going to sit on our doorstep. We are absolutely committed and having the necessary conversations with our customers to make sure it works into our price. How do we think about that into next year? Do you actually maybe start getting those recoveries or the hit we have this year just continues through? Any thoughts? Well, mechanically, if you think about a lag, we've talked about a quarter, a little bit longer lag in general on average. We see that coming through, but that just catches us up. If you want to talk about margin expansion opportunities, it really doesn't start moving the other way until these commodities drop off, because we'll get the lag on the other side, where it will keep the price and it'll be at a lower cost. It's a matter of keeping the margins until these commodities start to come down, and then over time, based on our agreements, they would come back out. Does that make sense? Okay. Yeah, that makes sense. Just lastly, I missed the comments on, you had a lot of wins on some BEV platforms. Can you just remind me what you were referring to on that? Well, mostly we're talking about the Performance Solutions overall, there's 52 new wins on battery electric vehicle this year, 26 which we've seen in the first half. First quarter, second quarter. Sorry, in the second quarter. Hybrid, too. Yeah, sorry. That comment, Kevin, that comment is for battery electric vehicles and hybrids. Got it. Okay. All right. Thanks for taking my questions. Thanks, Colin. Thank you. Next question is from Bret Jordan of Jefferies. Please go ahead. Hey, good morning, guys. Good morning, Bret. Could you talk a little bit about what you're seeing in the aftermarket point of sale data? You called out seasonal Q3 typically down from Q2, but could you talk about what you're seeing maybe as far as inventory clearing the channel and what you might expect, sort of relative to average from a reorder standpoint? If you recall, our customers had a very good Q2, and we were on a bit of a lag and had a good strong order but come jumping into Q2. We saw that continue to hold through the quarter. I think the inventory positions are pretty well normally situated. We are seeing a continued kind of strong POS at our customers. Pretty much all seven of our categories appear to be holding for now with prior year in Q3, and some a little up, some a little down, but overall in pretty good stead. Right now we see the aftermarket continuing to benefit from vehicle miles traveled returning to 2019 levels, which is good to see when you think about miles traveled to work is still down substantially. We're seeing that do well, and then our categories, especially here in North America, coming into 2019, the vehicles in operation from six years old to 13 years old that we serve primarily, that's kind of our sweet spot. There's actually a growth of about a 3% CAGR from 2020- 2023 that reverses the decline from the prior three years. Holding up pretty well, I think. Okay, great. You're forecasting a global production number this year below IHS. Did you say what you were forecasting for next year? I mean, it sounds like the production issues last through the middle of the year for sure. Do you have a feeling for how 2022 might stack up on a full year basis against 2021? Not yet. I mean, obviously, we would hope it'd be higher. I think this is so uncertain, and we get so many different conflicting messages around where the semiconductor capacity constraint is going to go. We were at $80 million jumping into the year, which was conservative to IHS. We're at $78.5 million now at its midpoint. We're conservative to IHS, that's primarily North America and Europe. Even with evidence of the uncertainty is even the two big announcements this year here, this week in North America, where they've reversed course pretty quickly on their plans related to the semiconductor issue. I think it's way too early to call what 2022 is. As Matti said, there continues to be pent-up demand. Inventories are lower. It should bode well for the industry, but we just got to get confidence that the capacity constraint gets lifted. Okay. I mean, IHS had thought of that, the market's 90 million, approximately 90 million units. They're well up from where they're at this year at 82 million units. I'm not sure I'd be that optimistic, just because of the continuing issues into the second half that we're hearing. Okay, great. One final question, I guess. On slide 15, obviously debt reduction is the number one priority, but I wasn't quite clear, the priority of acquisition versus potential spinning of the aftermarket business, did one of those sort of supersede the other? I think as we move through and move our debt and leverage ratio down to that 1.5x-2x target, that's where the best opportunities begin to present themselves for options. For sure, the option that we will choose is the one that we see as driving the best long-term shareholder value for our shareholders. If the spin was the right way, we would look at that. If an acquisition was the right way, we'd look at that. Listen, if taking a part of the business out of the portfolio were the right decision, we'd do that. Right now, we're solely focused on driving margin expansion and cash flow conversion on that margin to get that debt down to really open up a broad window of opportunities for us. Great. Thank you. Again, if you have a question, please press star then one. Next question is from Joseph Spak, RBC Capital. Please go ahead. Good morning, everyone. I guess just the first question, really just sort of more a clarification I want to understand. When you show these bridges, you're showing some pretty good incremental margins on the volume mix. Supply chain issues, inflationary pressures, et cetera, that's in the operating performance? Yes. Okay. I think some of those conversion numbers on the volume mix are sort of like 30% or certainly high 20s, which I believe is above what you guys have done historically. Right now maybe part of this is sort of the comp period. How should we think about the ability to convert on volume going forward? Generally the way you should think about us on average is incremental volume should convert in the low 20s, and then incremental EBIT should convert to cash for debt reduction in the mid-20s is probably the simplest way to think through it. Okay. The better performance this quarter has some base period math. Well, we had obviously major downtime last year, so that drives the percentages up pretty significantly. Yeah. Okay. I know in your outlook you mentioned CT/OH down in the second half versus first half. I know you don't get great visibility there, but I am curious to hear if you have any insight because I think to date that's been a market that has been less impacted certainly by the semi issue. Are you seeing some more of an impact here in the back half? Is that what's sort of the reason for some of that caution? If we think about CT/OH down 2H versus 1H, and it seems like light vehicle is maybe more flattish half over half. I guess it sort of really depends how you think exactly the sort of the quarter came in. Does that mix also sort of drive some of the margin pressure that you alluded to half over half? Generally our commercial truck off-highway industrial business is better than our average. Our sequential move down still up year-over-year and sequentially is like 5% primarily in the commercial truck. We're starting to hear some favorable signs out of our off-highway kind of getting staged and set up maybe in the back half of this year in fourth quarter. We should pretty well be set up. We're being conservative. Listen, we're rooting for a higher light vehicle production and rooting for a higher commercial truck off-highway. We're just not counting on it in our business plan. Okay. Final one. Going back to Ryan's question before on the different options. Like in the past, you have sort of talked about looking at assets you own that maybe make sense, maybe trying to monetize that and use that cash in other means. It does seem like certainly versus a year ago and I think even maybe versus sort of six months ago, the M&A market has loosened up a little bit. I know you're not going to sort of tell us if anything's on the horizon, but maybe you could sort of categorize sort of the pace of sort of the conversations you're having around investors. I think we've got numerous scenarios that we review constantly to drive shareholder value and both in the near and the short term. If the right opportunities present themselves we'll go execute on them. Right now what we see from a strategic value of our cash engines is they're just that. They're really driving our debt reduction and funding the core growth. Over time that strategic value will shift, and we'll make other calls. We're not eliminating any options, but we're also going to make sure we stay focused on what we see as a pretty solid continued performance in a volatile market. We'll be opportunistic when it makes sense, but it'll always go through that lens of that long-term shareholder value creation. Any other question? This concludes our question and answer session. Conference is now concluded. Thank you for attending today's presentation. You may now disconnect.