Residential water heater demand remains pressured by high interest rates impacting new construction and existing home sales, which typically drive replacement activity. North America organic growth of 3% was driven by strong boiler performance and carryover pricing, despite lower residential water heater volumes. Full-year 2026 adjusted EPS guidance was narrowed to $3.70 to $3.85, reflecting a more cautious outlook for the North American residential water heater market. U.S. residential water heater industry volumes are now expected to be down low single digits for the year, a slight downgrade from the previous flat to down range. Third quarter earnings are expected to be lower than both Q2 and Q4 due to demand pull-forward into Q2 and the timing of price increase realizations.