To the point that was said before, I do think there continues to be an opportunity on the organic volume side, particularly probably more in the Q4 side of the equation, maybe as the upside to guide. But in terms of backlog being flat year in — at the end of the year compared to where we started, I think that’s still a fairly good expectation at this point in time.
Chris Snyder: Thank you. Appreciate that.
Operator: And your next question comes from the line of Joe O’Dea with Wells Fargo. Your line is open.
Joe O’Dea: Hi. Good morning. Thanks for taking my questions.
Vicente Reynal: Good morning.
Vik Kini: Hi Joe.
Joe O’Dea: Hi. So first, just another one on back half, but the price and volume dynamic within organic, it seems like the way the back half is set up between the quarters, we’re looking at pretty similar organic growth, 3Q and 4Q. Just curious, in terms of kind of pricing comps and if what we’re thinking about at this point is that it’s really volume growth in the back half?
Vik Kini: Yeah. Joe, the way I would probably think about it in terms of the back half. I do think if you look on a — like we said, Q3 will look fairly similar to Q2, particularly on the ITS side, if you’re thinking about revenue and bottom-line. I think the way to think about it if you want to kind of think about the two quarters individual. I think the organic growth side will probably be a little bit healthier in Q3 than Q4. Remember, Q4 of last year, we had an exceedingly strong end of the year, particularly in ITS. I think ITS Q4 organic sales growth was in excess of 20%. So again, aside from the kind of timing between the quarters, to your point, we do expect to see pricing continue to, I’d say, normalized in the back half.
A lot of that is just, frankly, due to the timing of when we took price increases in the prior year. So we are now lapping that. And we would expect to see price continue to kind of ramp down on a sequential basis, but very consistent with what we said in terms of our original guide. I don’t think anything has really changed on that end. And then again, on the volume side, again, volume, we continue to slightly up-tick our volume expectations for the back half, each of our successive guides. This guidance note is no different. And with the backlog, hopefully there’s some opportunity to outperform there, as we think about Q4.
Joe O’Dea: Got it. And then, Vicente, I think your response to kind of Rob’s question was interesting on the ability to pivot to growth. And I’m curious, just in terms of the internal approaches to identifying that growth and how you try to sort of position in advance of it. So it’s not so much of chasing the puck, but just being well-positioned for anticipating that. And kind of how far out that goes? I mean, what we can think about what you’re doing today in terms of what you anticipate for growth?
Vicente Reynal: Yeah. Joe you are right.
Joe O’Dea: How far out it is?
Vicente Reynal: Yeah. No, I love that question. Because we have a team — I mean, a team for us, the team is like a team of one. But we have two people actually here sitting in our corporate offices that we’re currently analyzing like 100-plus micro trends. And these are kind of trends that we’re seeing early indicators of potentially becoming good vectors of growth. So that’s one avenue how so early. We’re looking at these new potential trends. I mean, give you one example could be lithium battery recycling. Clearly, with a lot of the production on electric vehicle and lithium battery production, there’s going to come a time that batteries will need to recycle. So we’re already looking at the technologies that we can incorporate in those and finding the early-stage development processes where we can actually incorporate a lot of our technologies and products.
So — and to think about it, I mean, we have about 100 of those kind of micro trends that at any point in time, we’re analyzing and then we’re leveraging our demand generation team to get close and closer to those customers to better understand how can we help and participate on those early trends. That’s just one example of kind of how early we can do it. And then obviously, as you go to a country like China, I mean, the team, every year, we reassess the end markets that we expect to see a higher growth and then with pivot resources and technologies. And again, demand generation to be able to start attacking those early indications that we’re seeing.
Joe O’Dea: Very helpful. Thank you.
Vicente Reynal: Yeah.
Operator: [Operator Instructions] Our next question comes from the line of Nicole DeBlase with Deutsche Bank. Your line is open.
Nicole DeBlase: Yeah. Thanks. Good morning, guys.
Vicente Reynal: Good morning, Nicole.
Nicole DeBlase: Most of mine have been answered today, but I guess one thing that I want to dig into is just I think there’s concern among investors about potential slowing in Europe. So I mean it sounds like everything from your commentary is going pretty well there, but if we could just dig into that a little bit on what you’re seeing? Thanks.
Vicente Reynal: Yeah, Nicole, I’d say continues to see good momentum. But again, I think I always like to put it in perspective in terms of the self-help that we’re driving ourselves. It doesn’t mean that the total market is actually seeing the same momentum as we’re seeing. I mean we’re definitely outgrowing the market by a lot of the focus that we’re doing on these kind of vectors of growth that we’re finding and whether it is in France, going after — how can our technologies help with nuclear facilities and revamping that or in Germany. How — whether LNG or the hydrogen push is actually helping us to refocus some of the technologies in that. So we get kind of variance on that kind of micro level for us to be able to decipher the best way for achieving that growth.
