And on those, we track very on a monthly cadence, sell in and sell out. So, we have a visibility on how much we’re selling to the channel and how much of that channel is selling out. So at least we get visibility with the level of inventory that is somewhat available in the shelves and whether it is getting destocking or overstocking, we’re always proactively trying to prevent the overstocking. It’s a situation that we just don’t like to be entangled with. So I think — I’d say we’ve been fairly proactive from that perspective to making sure that we’re watching those trends carefully, nothing of material of note that we’re seeing in terms of major destocking. But again, it has to do because there was not a lot of overstocking as well. So — I don’t know that helps, but that’s maybe a little bit of color there.
Joe Ritchie: No, that’s great. I figured as much, but I had to ask the question. So that’s helpful color, Vicente. And, I guess, the follow-on question really kind of want to maybe dig into this opportunity, this oil-free hydrogen compressor opportunity. Maybe talk a little bit more about what the opportunity is there and then specifically what the applications are today?
Vicente Reynal: Yes, Joe, I mean, I’ll say this is a very, very exciting opportunity and one that this, we have now an engineering center inside in our facility in India. We’re now considered to be one of the only India companies in India that has the capability of actually testing hydrogen compression systems. Hydrogen is going to be, we think, a good growth vector in the market in India. So we’re happy to be the first, and we’re happy to be the ones with the largest lab and technology center in India at this point in time, which is the reason why on the prior earnings call, we spoke about the expansion that we’re doing. In terms of market sizing, I mean, I think I’d say it’s still early stages from the perspective. We don’t want to put numbers at — I mean, obviously, if you kind of trust what market dynamics are saying, these are kind of huge markets, but we’re not going to size it here on this call.
I think on the Investor Day, we’ll definitely give you a little bit more color on this one. But again, this is one super exciting opportunity that technology that the team in India was able to develop and actually work pretty closely with a company in Europe to develop something really unique. And in this case, we were kind of the only company that could achieve the performance requirement that it was required by this technology company. So again, it speaks volumes to the investments that we continue to make in R&D and continued investments that we make in technologies that we think will play well for us in the future.
Joe Ritchie: Awesome. Thanks, guys.
Vicente Reynal: Yes. Thanks, Joe.
Operator: And your next question comes from the line of Chris Snyder with UBS. Your line is open.
Chris Snyder: Thank you. So Q2 really showed strength across all three geographies. And I understand that comps are obviously getting a good deal tougher into the back half of the year and price contribution is easing. But when you look at these three geographies, is there any one or any place where you see demand softening on the leading edge?
Vicente Reynal: I mean, I think, Chris, note that our MQLs are demonstrating or showing. We’re — even as we look here into the month of early days in July, I’ll say that there continues to be that sustained momentum that we were seeing in the second quarter from an MQL perspective. So noting that we will highlight of specifically end market or maybe, as you said, regional view that has seen a dramatic decline. Again, I think, it’s tough comps as we go into the third quarter. I think if I remember the ITS, America teams, I mean, had really hefty double-digit like close to 30% of growth in orders Q3 of last year. So I mean those are the difficult comps that we talk about. But — having said that, I mean, I think when you think about it in perspective, we have been posting double-digit revenue organic growth for like 9 out of the 10 quarters.
So that’s kind of what we talk about tough comps. But again, the team continues to perform, execute and control what they can control.
Chris Snyder: Yeah. No, I appreciate that. Obviously, with the tough comps, you’re trying to sometimes separate like demand from ….
Vicente Reynal: Yeah.
Chris Snyder: …growth. So I appreciate all that color. And then, I guess kind of following up on that. In prior quarters, you guys talked about basically flat backlog year-on-year to exit the year, building the first half burn in the back half. I know that’s still generally the trajectory. But is — do you still expect not to add any backlog throughout the year, even if we burn a little off in the back half, just does feel like demand may be running a little bit better than expected six months ago? Thank you.
Vik Kini: Yeah. Chris, I think right now, our expectation is fairly consistent with what we’ve kind of messaged before. And you’re absolutely right. When we came into the year, we did expect backlog to be largely flat as we look towards the end of the year. But we did explicitly say that, book-to-bill above one in the first half build backlog and then you’d see that kind of drift down, I think, as Vicente mentioned earlier in the second half of the year. And that’s very consistent with, I’d say, our typical cadence, our typical seasonality, and based on what we’re seeing now, given the level of backlog, but then also kind of the expectations for what we’re seeing in the second half of the year. I don’t think anything changed in that respect.
