Applied Industrial Technologies Inc (AIT) 2025 Q2 法說會逐字稿

Welcome to the fiscal 2025 second quarter earnings call for Applied Industrial Technologies.

歡迎參加應用工業技術公司 2025 財年第二季財報電話會議。

My name is Liz and I'll be your operator for today's call.

我叫利茲，我將擔任您今天電話的接線生。

(Operator Instructions).

（操作員指令）。

Please note this conference is being recorded.

請注意，本次會議正在錄音。

I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury.

現在我將把電話轉給投資者關係和財務總監 Ryan Cieslak。

Ryan, you may begin.

瑞安，你可以開始囉。

Okay.

好的。

Thanks Liz and good morning to everyone on the call.

謝謝 Liz，祝通話中的各位早安。

This morning, we issued our earnings release and supplemental investor deck detailing our second quarter results.

今天上午，我們發布了收益報告和補充投資者報告，詳細介紹了我們的第二季業績。

Both documents are available in the investor relations section of applied.com. Before we begin, just a reminder that we'll discuss our business outlook and make forward-looking statements.

這兩份文件均可在 applied.com 的投資者關係部分查閱。在我們開始之前，請注意，我們將討論我們的業務前景並做出前瞻性陳述。

All forward-looking statements are based on current expectations, subject to certain risks and uncertainties including those that are detailed in our SEC filings.

所有前瞻性陳述均基於當前預期，但受某些風險和不確定性的影響，包括我們提交給美國證券交易委員會的文件中詳細說明的風險和不確定性。

Actual results may differ materially from those expressed in the forward-looking statements.

實際結果可能與前瞻性陳述中所表達的結果有重大差異。

The company undertakes no obligation to update publicly or revise any forward-looking statement.

該公司不承擔公開更新或修改任何前瞻性聲明的義務。

In addition, the conference call will use non-GAAP financial measures which are subject to the qualifications referenced in those documents.

此外，電話會議將使用非公認會計準則財務指標，這些指標受這些文件中所提及的資格限制。

Our speakers today include Neil Schrimsher, Applied's President and Chief Executive Officer and Dave Wells, our Chief Financial Officer.

今天的演講者包括應用材料公司總裁兼執行長 Neil Schrimsher 和財務長 Dave Wells。

With that, I'll turn it over to Neil.

說完這些，我就把麥克風交給尼爾。

Thanks Ryan and good morning, everyone.

謝謝 Ryan，大家早安。

We appreciate you joining us.

感謝您的加入我們。

I'll begin today with perspective on our second quarter results and current industry conditions followed by some thoughts on the recent acquisition of Hydradyne and expectations going forward.

今天，我將首先介紹我們第二季的業績和當前的行業狀況，然後談談對最近收購 Hydradyne 的一些看法以及未來的預期。

They will then provide additional financial detail on the quarter's performance and updated outlook, and I'll then close with some final thoughts.

然後，他們將提供有關本季業績和最新展望的更多財務細節，最後我將發表一些最後的想法。

Overall, we had a productive second quarter that highlights the operational resiliency and self-help opportunities of our differentiated industry position and strategy.

整體而言，我們第二季取得了豐碩的成果，凸顯了我們差異化產業地位和策略的營運彈性和自救機會。

We grew earnings and expanded margins over the prior year in an environment where demand remains soft and sales declined slightly.

在需求依然疲軟、銷售額略有下降的環境下，我們的獲利和利潤率較上年同期有所成長。

We also made progress in positioning the company for stronger growth moving forward.

我們也在幫助公司實現未來更強勁的成長方面取得了進展。

This includes ongoing investment in our sales tools and operational systems and technical talent.

這包括對我們的銷售工具、營運系統和技術人才的持續投資。

The building of business funnels, which is driving stronger orders as well as the announcing and closing of our strategic acquisition of Hydradyne which I'll discuss in more detail in a moment.

業務管道的建構正在推動更強勁的訂單，以及宣布和完成我們對 Hydradyne 的策略性收購，稍後我將詳細討論。

As it relates to the quarter's results both EBITDA and EPS exceeded our expectations increasing approximately 3% and 7% over the prior year respectively.

就本季的業績而言，EBITDA 和 EPS 都超出我們的預期，分別比上年增長了約 3% 和 7%。

We benefited from strong gross margin performance and cost controls while low [FICO] expense contributed to margin performance in the quarter, both gross margins and EBITDA margins still expanded nicely over the prior year when excluding the change in LIFO expense.

我們受益於強勁的毛利率表現和成本控制，而較低的[FICO]費用則促進了本季度的利潤率表現，在排除後進先出法費用變化的情況下，毛利率和EBITDA利潤率仍比上年大幅擴大。

The positive performance was primarily driven by channel execution and ongoing margin initiatives across various areas of our business, as well as variable expense adjustments and cost control inherent to our model and operational discipline.

這一積極表現主要得益於我們業務各個領域的通路執行和持續的利潤計劃，以及我們模式和營運紀律固有的變動費用調整和成本控制。

Margin improvement was led by our engineered solutions segment where EBITDA margins expanded 115 basis points over the prior year and exceeded 16% for the first time.

利潤率的提高主要得益於我們的工程解決方案部門，該部門的 EBITDA 利潤率較上年增加 115 個基點，首次超過 16%。

Our engineered solutions segment EBITDA margin has expanded over 450 basis points the past five years.

過去五年來，我們工程解決方案部門的 EBITDA 利潤率擴大了 450 個基點以上。

We're making solid progress with our internal initiatives and operational enhancements as we continue to scale this strategic area of our business.

隨著我們繼續擴大這一戰略業務領域，我們的內部舉措和營運改進正在取得穩步進展。

The segment's margin expansion highlights the strong market position and value proposition.

該部門利潤率的擴大凸顯了強大的市場地位和價值主張。

We have across our portfolio of fluid power, flow control and automation solutions and should enhance our mixed tailwind and overall margin expansion potential moving forward as segment sales begin to reaccelerate.

我們擁有涵蓋流體動力、流量控制和自動化解決方案的產品組合，隨著細分市場銷售開始重新加速，我們的混合順風和整體利潤擴張潛力將進一步增強。

As it relates to topline trends, average daily sales declined 3.4% over the prior year, which was in line with the guidance we provided in October of down mid-single to low single digits.

就營收趨勢而言，日均銷售額較上年下降 3.4%，與我們 10 月給出的中個位數至低個位數下降預期一致。

We continue to operate within a muted in market backdrop with customers conservatively managing MRO spending and delaying capital investments.

我們繼續在低迷的市場背景下運營，客戶保守地管理 MRO 支出並推遲資本投資。

Underlying demand improved slightly following the slow start to October but moderated and was below normal seasonal patterns during December.

繼 10 月緩慢成長之後，基本需求略有改善，但 12 月有所放緩，且低於正常季節性模式。

Most of December's weakness was concentrated later in the month and in our view was primarily tied to the timing of holidays this year with Christmas and New Year's falling midweek as well as extended customer plan idling and deferred maintenance activity within our service center segment.

12 月的大部分疲軟表現集中在當月下旬，我們認為這主要與今年的假期時間有關，聖誕節和新年均處於周中，加上客戶計劃停工延長以及服務中心部門的維護活動推遲。

We estimate softer sales during the last two weeks of December negatively impacted the quarter's overall organic sales growth by approximately 100 basis points.

我們估計，12 月最後兩週的銷售疲軟對本季的整體有機銷售成長產生了約 100 個基點的負面影響。

When looking at our top 30 in markets, 11 were positive year over year in the second quarter which is below the 13 reported last quarter.

從我們市場排名前 30 名的公司來看，第二季有 11 家公司年增，低於上一季的 13 家。

In markets that were up year over year included chemicals, food and beverage, pulp and paper and technology.

與去年同期相比有所成長的市場包括化學品、食品和飲料、紙漿和造紙以及技術。

This was offset by declines primarily in machinery, transportation, aggregates, fabricated metals, oil and gas and mining in markets.

這主要被機械、運輸、骨材、金屬製品、石油和天然氣以及採礦業等市場的下滑所抵消。

Mixed in-market demand has continued in the early part of our fiscal third quarter as customers are settling into the new year and continue to operate at a gradual pace.

由於客戶正在適應新的一年並繼續以漸進的速度運營，我們第三財季初期的市場需求持續混雜。

Of note, January sales are currently trending down a mid single digit percent year over year on an organic basis.

值得注意的是，一月份的銷售額目前呈現年比中個位數下降趨勢。

We believe ongoing macro policy and interest rate uncertainty remain headwinds.

我們認為，現行的宏觀政策和利率的不確定性仍然是阻力。

Weather has played a role across the Southern US region over the past month as well.

過去一個月，天氣也對美國南部地區產生了影響。

That said we do not view January sales as indicative of how the third quarter and the balance of the year could play out based on several directionally positive trends taking shape.

儘管如此，根據正在形成的幾個方向性的積極趨勢，我們並不認為一月份的銷售額能夠預示第三季度和全年的銷售情況。

Of note, various industrial macro data points are showing some signs of improvement.

值得注意的是，各項工業宏觀數據都顯示出一些改善的跡象。

The new orders component of the ISM index was in expansionary territory in November and December.

ISM 指數的新訂單分項在 11 月和 12 月處於擴張區間。

Bookings across our service center network are improving following a slow end to December while feedback and sentiment among customers are more positive post the election.

繼 12 月底的緩慢成長之後，我們服務中心網路的預訂量正在不斷提高，而選舉後客戶的回饋和情緒也更加積極。

Our service center segment is well positioned as inmarket demand reaccelerates, with approximately 50% of our service center business tied to technical break fix situations across critical industrial processes, systems and infrastructure.

隨著市場需求重新加速，我們的服務中心部門處於有利地位，其中約50％的服務中心業務與關鍵工業流程、系統和基礎設施的技術故障修復情況有關。

We believe demand for our service and products and technical support could ramp quickly and broadly over the next year as customers reengage production and catch up on required technical MRO activity.

我們相信，隨著客戶恢復生產並趕上所需的技術 MRO 活動，對我們服務和產品以及技術支援的需求將在明年迅速而廣泛地增長。

This will be particularly evident across heavy manufacturing, machinery, mining, metals and aggregate markets, given their brake fix intensive nature and deferred maintenance in recent periods.

由於近期煞車維修密集和延期維護的特點，此現像在重型製造、機械、採礦、金屬和骨材市場尤為明顯。

In addition, a lighter regulatory agenda with the New US administration represents a potential incremental new tailwind in many of our legacy in markets across our service center operations as well as within our flow control network.

此外，新一屆美國政府放鬆監管的議程意味著，這將為我們服務中心運作以及流量控製網路內的許多市場帶來潛在的新的順風。

Combined, we estimate these break fix intensive and more regulated markets represent about 40% to 50% of our total sales today.

綜合起來，我們估計這些故障修復密集且監管更嚴格的市場目前約占我們總銷售額的 40% 至 50%。

In addition, order momentum and business funnels are building across the technology vertical which represents approximately 15% of our engineered solutions segment and 5% of our overall sales.

此外，訂單動能和業務管道正在整個技術垂直領域不斷建立，這約占我們工程解決方案部門的 15% 和整體銷售額的 5%。

We're beginning to see stronger demand across the semiconductor sector and related spending on wafer fab equipment following the demand headwind, we experienced in this sector over the past several years.

在經歷了過去幾年半導體產業經歷的需求逆風之後，我們開始看到整個半導體產業的需求和對晶圓廠設備的相關支出變得更加強勁。

Stronger customer activity across the technology vertical is encouraging and a potentially strong growth tailwind moving forward.

整個垂直技術領域的客戶活動更加活躍，令人振奮，並有望為未來帶來強勁的成長動力。

We also continue to see positive momentum developing across our automation business with orders strengthening year-to-date as various secular tailwinds continue to positively influence demand.

由於各種長期順風持續對需求產生積極影響，我們的自動化業務繼續呈現積極勢頭，今年迄今的訂單不斷增加。

These dynamics are driving ongoing adoption of collaborative and mobile robots, machine vision and IOT solutions.

這些動力正在推動協作和移動機器人、機器視覺和物聯網解決方案的持續應用。

A strong application and engineering capabilities along with an expanded footprint and facility capacity will further supplement our potential in this high growth area of our business.

強大的應用和工程能力以及擴大的足跡和設施容量將進一步增強我們在這一高成長業務領域的潛力。

As discrete automation investments reaccelerate in coming quarters and demand for aftermarket and service support starts to emerge.

隨著未來幾季離散自動化投資重新加速，售後市場和服務支援的需求開始出現。

On another encouraging note, order trends are beginning to stabilize and improve slightly across fluid power industrial and mobile OEM customers.

另一個令人鼓舞的跡像是，流體動力產業和行動 OEM 客戶的訂單趨勢開始穩定並略有改善。

If you recall, this has been a primary area of sales weakness for us over the past year.

如果你還記得的話，在過去的一年裡，這一直是我們銷售的主要弱點。

During the second quarter, reduced sales from industrial and mobile OEM, fluid power customers negatively impacted our consolidated organic year over year sales growth rate by approximately 150 basis points.

第二季度，工業和行動 OEM、流體動力客戶的銷售額下降對我們的綜合有機年銷售額成長率產生了約 150 個基點的負面影響。

However, related orders from these customers were up 9% sequentially from the first quarter and relatively unchanged year over year during December.

不過，這些客戶的相關訂單較第一季環比成長了 9%，12 月與去年同期相比基本持平。

Combined with more normalized OEM inventory levels following recent destocking and much easier comparisons, we expect the year over year sales trend and related impact in this area of our business to improve moving forward.

結合近期去庫存後 OEM 庫存水準更加正常化以及更容易的比較，我們預計我們業務這一領域的同比銷售趨勢和相關影響將在未來得到改善。

This includes potentially reemerging as a growth tailwind in coming quarters, considering secular demand and required investments developing across fluid power systems, as well as ongoing strategic investments, we are making into this more specialized and highly technical area of industrial distribution.

考慮到長期需求和流體動力系統發展所需的投資，以及我們正在對這一更專業和技術含量更高的工業分銷領域進行的持續戰略投資，這包括在未來幾個季度可能重新成為成長的順風。

Of note, we are extremely excited about the growth and operational momentum we expect to build following the completion of our hydro acquisition at the end of December.

值得注意的是，我們對 12 月底完成水電收購後預計將實現的成長和營運勢頭感到非常興奮。

Based in Dallas, Texas, Hydradyne is one of the largest us distributors focused on fluid power and motion control systems with advanced service capabilities and product offerings in hydraulics, pneumatics, electromechanical instrumentation, filtration and fluid conveyance.

Hydradyne 總部位於德州達拉斯，是美國最大的流體動力和運動控制系統經銷商之一，擁有先進的服務能力和液壓、氣動、機電儀表、過濾和流體輸送方面的產品。

The addition of Hydradyne aligns extremely well with our strategy with anticipated sales of $260 million and EBITDA $30 million in the first year of ownership.

Hydradyne 的加入非常符合我們的策略，預計在收購後的第一年銷售額將達到 2.6 億美元，EBITDA 達到 3,000 萬美元。

Hydradyne strengthens our number of one fluidpower position by extending our footprint across the southern us where they operate with a team of nearly 500 associates out of 33 locations.

Hydradyne 將業務範圍擴大到了美國南部，從而鞏固了我們在流體動力領域的領先地位。

Hydradyne also brings strong technical capabilities that complement our current fluidpower service and solution portfolio with approximately 30% of sales tied to repair, engineering and design, system fabrication, hose assemblies and other value-added solutions.

Hydradyne 還擁有強大的技術能力，可以補充我們目前的流體動力服務和解決方案組合，其中約 30% 的銷售額與維修、工程和設計、系統製造、軟管組件和其他增值解決方案相關。

Our combined technical capabilities and access to premier fluid power, motion, flow control and automation technologies present a powerful value proposition for our customers that will accelerate cross selling and market penetration.

我們綜合的技術能力以及對一流流體動力、運動、流量控制和自動化技術的掌握，為我們的客戶提供了強大的價值主張，從而加速交叉銷售和市場滲透。

This includes enhancing our collective efforts to serve the rapid pace of innovation developing across fluid power systems.

這包括加強我們的集體努力，以適應流體動力系統快速發展的創新步伐。

Our strategy and teams are aligned to support thousands of specialized OEMs and industrial manufacturers, engineer design and integrate these advanced features into their mobile and industrial equipment with world class technologies from top fluid power suppliers.

我們的策略和團隊致力於支援數以千計的專業原始設備製造商和工業製造商，利用來自頂級流體動力供應商的世界一流技術，設計並整合這些先進功能到他們的移動和工業設備中。

The strength of our combined technical teams and footprint will also allow us to more effectively and broadly capture growth opportunities developing across emerging in markets and commercial applications.

我們聯合起來的技術團隊和業務範圍的實力也將使我們能夠更有效、更廣泛地抓住新興市場和商業應用中的成長機會。

We provide more detail around Hydradyne acquisition in slides 5 and 6 of our second quarter earnings presentation and Dave will cover off on some of the key financial considerations including our initial accretion expectations.

我們在第二季財報的第 5 和第 6 頁中提供了有關 Hydradyne 收購的更多詳細信息，Dave 將介紹一些關鍵的財務考慮因素，包括我們最初的增值預期。

In summary, we're very excited to welcome Hydradyne and their capabilities to the applied platform.

總之，我們非常高興地歡迎 Hydradyne 及其功能加入應用平台。

Overall, I'm encouraged by the progress we are making with our strategy including the ongoing buildout of our engineered solutions segment.

總的來說，我對我們的策略所取得的進展感到鼓舞，包括我們工程解決方案部門的持續建設。

Following the Hydradyne acquisition, the segment is now approaching 40% of overall sales compared to 15% 10 years ago.

在收購 Hydradyne 之後，該部門銷售額佔總銷售額的比例已從 10 年前的 15% 上升至目前的 40%。

The strategic expansion of this segment has further differentiated our industry position and strengthened our competitive moat.

該部門的策略擴張進一步區分了我們的行業地位並增強了我們的競爭優勢。

We've established and fortified our leading market positions, building and serving critical motion, power and control systems across nearly every industrial vertical.

我們已經建立並鞏固了我們領先的市場地位，為幾乎所有的工業垂直領域建構並提供關鍵的運動、動力和控制系統。

It's created a unique and potentially significant cross selling opportunity throughout our legacy embedded customer base while increasing exposure to faster growing in markets and secular tailwinds.

它在我們傳統的嵌入式客戶群中創造了一個獨特且具有巨大潛在價值的交叉銷售機會，同時增加了對快速成長的市場和長期順風的曝險。

It's also expanding our addressable market and allowing us to evolve and enhance our competitive position as the industrial sector and related systems advance with new age processes and technologies.

它還擴大了我們的潛在市場，並使我們能夠隨著工業部門和相關係統隨著新時代流程和技術的進步而發展並增強我們的競爭地位。

Combined with a positive margin profile and ongoing operational enhancements, we expect our engineered solutions segment to be a strong and differentiated driver of earnings growth and returns going forward.

結合積極的利潤率狀況和持續的營運改進，我們預計我們的工程解決方案部門將成為未來獲利成長和回報的強勁和差異化驅動力。

Lastly, I'm encouraged by the ongoing capital deployment opportunities with our industry position, balance sheet and cash flow generation continue to support.

最後，我對持續的資本配置機會感到鼓舞，我們的產業地位、資產負債表和現金流持續提供支持。

Year-to-date, we've deployed over $380 million in capital focused on enhancing our growth position and shareholder returns.

年初至今，我們已投入超過 3.8 億美元的資金，專注於增強我們的成長地位和股東回報。

This compares to $251 million of capital deployed for all of fiscal 2024.

相較之下，2024 財年全年部署的資本為 2.51 億美元。

While partially reflecting our recent Hydradyne acquisition, we also continue to return capital through share buybacks including deploying $30 million share repurchases year-to-date.

在部分反映我們最近收購 Hydradyne 的同時，我們也繼續透過股票回購返還資本，包括今年迄今已部署了 3,000 萬美元的股票回購。

In addition, we announced this morning a 24% increase in our quarterly dividend.

此外，我們今天上午宣布季度股息增加24%。

The increase is in line with our expectation for greater dividend growth as we align annual increases with normalized earnings growth, including the strong earnings and cash generation achieved in recent years.

由於我們將年度成長與正常化的獲利成長（包括近年來實現的強勁獲利和現金創造）相結合，因此這一成長符合我們對股息更高成長的預期。

Our capital allocation priorities remain unchanged and highly focused on organic investments and M&A.

我們的資本配置重點保持不變，高度注重有機投資和併購。

However, our broader capital deployment trends year-to-date showcase the multiple opportunities and ways we can deploy capital to optimize shareholder returns as we continue to scale our business and achieve our strategic goals.

然而，我們今年迄今為止更廣泛的資本配置趨勢展示了我們在繼續擴大業務規模和實現戰略目標的同時，可以透過多種機會和方式部署資本以優化股東回報。

Moving forward, our balance sheet and financial capacity remain extremely well positioned to continue to support M&A and other capital deployment opportunities.

展望未來，我們的資產負債表和財務能力仍然非常良好，可以繼續支持併購和其他資本配置機會。

We have ongoing scope for additional buybacks for the remainder of fiscal 2025 based on our current financial capacity and the intrinsic value we see across our company long term.

根據我們目前的財務能力以及我們對公司長期內在價值的認識，我們在 2025 財年剩餘時間內仍有持續的額外回購空間。

In addition, our M&A pipeline and related due diligence remains active across both segments with a primary focus on bolt on and midsize targets where we can create significant shareholder value.

此外，我們的併購管道和相關盡職調查在兩個部門中仍然很活躍，主要關注能夠創造重大股東價值的附加和中型目標。

At this time, I'll turn the call over to Dave for additional detail on our financial results and outlook.

現在，我將把電話轉給戴夫，以了解有關我們的財務表現和前景的更多詳細資訊。

Thanks, Neil.

謝謝，尼爾。

Just another reminder before I begin.

在我開始之前，還有另一個提醒。

As in prior quarters, we have posted a supplemental investor presentation to our investor site for your additional reference.

與前幾季一樣，我們在投資者網站上發布了補充投資者介紹，供您更多參考。

This quarterly presentation provides a more detailed recap of our second quarter results, uUpdated guidance and details on our recent acquisition of Hydradyne.

本季度報告更詳細地回顧了我們的第二季度業績、更新後的指引以及我們最近收購 Hydradyne 的詳細資訊。

Turning now to our financial performance in the quarter, consolidated sales decreased 2.4% over the prior year quarter.

現在來看看本季的財務業績，綜合銷售額較去年同期下降了 2.4%。

Acquisitions contributed 190 basis points while the difference in selling days had a positive 160 basis point impact.

收購貢獻了 190 個基點，而銷售天數的差異則產生了 160 個基點的正影響。

This was partially offset by a negative 50 basis point impact from foreign currency translation.

但外幣折算帶來的 50 個基點的負面影 響卻部分抵銷了這一影響。

Netting these factors sales decreased 3.4% on an organic daily basis.

除去這些因素，銷售額每天有機下降 3.4%。

As it relates to pricing, we estimate the contribution of product pricing on year to year sales growth was slightly less than 100 basis points for the quarter and largely in line with our expectations.

就定價而言，我們估計產品定價對本季同比銷售成長的貢獻略低於 100 個基點，基本上符合我們的預期。

Turning now to sales performance by segment, as highlighted on slides 9 and 10 of the presentation, sales in our service center segment declined 1.9% year over year on an organic daily basis.

現在談談各部門的銷售業績，正如簡報的第 9 和 10 頁所強調的那樣，我們服務中心部門的銷售額每天同比下降 1.9%。

This excludes a positive 30 basis point impact from acquisitions, a positive 160 basis point impact from the difference in selling days and a negative 70 basis point impact from foreign currency translation.

這不包括收購帶來的正 30 個基點的影響、銷售天數差異帶來的正 160 個基點的影響以及外幣折算帶來的負 70 個基點的影響。

The organic sales decline was primarily driven by reduced MOR spending, lower capital maintenance project activity, extended customer plant idling and the timing of holidays in the month of December.

有機銷售額下降主要是由於 MOR 支出減少、資本維護項目活動減少、客戶工廠閒置時間延長以及 12 月份假期時間所致。

The impact from weaker sales in late December was most pronounced across our service center operations.

12 月底銷售疲軟的影響對我們服務中心的營運影響最為明顯。

This followed more stable trends in October and November where segment sales were relatively unchanged year to year.

10 月和 11 月的銷售趨勢更為穩定，與去年同期相比，分部銷售額基本上沒有變化。

Growth in national accounts during the quarter was more than offset by weaker sales from local accounts.

本季全國帳戶的銷售成長被本地帳戶的銷售疲軟所抵消。

Segment EBITDA increased 1.4% over the prior year while segment EBITDA margin of 13.4% improved nearly 30 basis points year to year.

分部 EBITDA 較前一年增加 1.4%，分部 EBITDA 利潤率為 13.4%，較前一年提高近 30 個基點。

Within our engineer solutions segment, sales increased 0.4% over the prior year quarter with acquisitions contributing 5.1% points of growth and the impact from one extra selling day, providing an additional 160 basis points of growth.

在我們的工程師解決方案部門中，銷售額比去年同期成長了 0.4%，其中收購貢獻了 5.1% 的成長點，而額外一個銷售日的影響則帶來了額外的 160 個基點的成長。

On an organic daily basis, segment sales decrease 6.3% year over year.

以每日有機計算，該部門銷售額年減 6.3%。

The decline was primarily driven by ongoing sales weakness across fluid power OEM customers mostly reflecting reduced demand across mobile fluid power markets.

下降的主要原因是流體動力 OEM 客戶持續的銷售疲軟，這主要反映了行動流體動力市場的需求下降。

This was partially balanced by more stable trends across industrial implant applications as well as improving demand in technology related fluid power and markets.

這在一定程度上被工業植入應用的更穩定趨勢以及與技術相關的流體動力和市場需求的不斷增加所抵消。

Meanwhile sales within our automation operations declined by a high single digit percentage year over year on an organic daily basis.

同時，我們自動化業務的銷售額每日有機成長率與去年同期相比下降了個位數。

This is consistent with last quarter and primarily reflects or headwinds from customers continuing to delay spending in response to macro uncertainty.

這與上一季一致，主要反映出顧客因宏觀不確定性而持續延後支出所帶來的阻力。

Talk of fuel power and automation sales were partially offset by ongoing growth across our flow control operations where average daily sales increased 2% year to year and over 4% sequentially reflecting firm project activity on process infrastructure.

燃料動力和自動化銷售的談論部分被我們流程控制業務的持續增長所抵消，其中平均每日銷售額同比增長 2%，環比增長超過 4%，反映了流程基礎設施上的堅定項目活動。

In addition, despite the sales decline in the quarter segment, EBITDA increased 8% over the prior year while segment EBITDA margin of 16.3% expanded 115 basis points from prior year levels.

此外，儘管本季銷售額有所下滑，但 EBITDA 較上年同期成長了 8%，而分部 EBITDA 利潤率為 16.3%，較上年同期擴大了 115 個基點。

The performance primarily reflects strong gross margin expansion tied to our internal initiatives and value proposition, more favorable mix and to a lesser extent, lower LIFO expense as well as contributions from ongoing operational enhancements as we continue to execute our engineer solutions strategy.

這項業績主要反映了與我們的內部措施和價值主張相關的強勁毛利率擴張、更有利的產品組合、以及在較小程度上降低的後進先出費用，以及隨著我們繼續執行工程師解決方案策略而不斷進行的營運改善所帶來的貢獻。

We were to consolidate gross margin performance as highlighted on page 11 of the deck, gross margin of 30.6% increased 114 basis points compared to the prior year level of 29.4%.

我們要合併毛利率表現，如第 11 頁所強調的，毛利率為 30.6%，較去年同期的 29.4% 增加了 114 個基點。

During the quarter, we recognized LIFO expense of $0.7 million compared to $3.4 million in the prior year quarter.

在本季度，我們確認的後進先出費用為 70 萬美元，而去年同期為 340 萬美元。

This net [LIFO] tailwind had a favorable 25 basis point year to year impact on gross margins.

這種淨[後進先出]順風對毛利率產生了 25 個基點的年比有利影響。

Excluding this impact, we still generate solid gross margin expansion in the quarter despite ongoing mix headwinds tied to lower sales across our engineered solutions segment and local accounts.

除去這一影響，儘管我們工程解決方案部門和本地帳戶的銷售額下降導致持續的組合逆風，我們本季度仍然實現了穩健的毛利率增長。

Underlying performance reflects the strong channel execution our engineer solutions segment performance and the benefits of ongoing margin initiatives.

基本業績反映了我們工程師解決方案部門業績的強勁通路執行力和持續利潤計畫帶來的好處。

As it relates to our operating cost, selling distribution and administrative expenses increased 2.3% compared to prior year levels.

與我們的營運成本相關，銷售分銷和管理費用比去年增加了 2.3%。

SG&A expense was 19.3% of sales during the quarter reflected an increase of 51 basis points from the prior year quarter.

本季銷售、一般及行政開支佔銷售額的 19.3%，較去年同期增加 51 個基點。

On organic constant currency basis, SG&A expense was up 0.3% over the prior year period, but down over 1%.

以有機固定匯率計算，銷售、一般及行政開支較去年同期上漲 0.3%，但下降超過 1%。

When adjusting for the extra payroll day in the quarter.

在調整本季的額外薪資發放日時。

Our team did a nice job controlling costs in the quarter against the muted demand backdrop while managing inflationary pressures in order to continue to balance and sustain critical investments for growth.

在需求低迷的背景下，我們的團隊在本季很好地控制了成本，同時管理了通膨壓力，從而繼續平衡和維持關鍵的成長投資。

We also benefit from ongoing efficiency gains and reduced variable expense on lower sales which help balance higher administrative and occupancy costs.

我們也受惠於持續的效率提升和較低銷售額帶來的變動費用的減少，這有助於平衡更高的管理成本和占用成本。

In particular, the quarter included approximately $1.5 million of due diligence and transaction related expenses related to the Hydradyne acquisition.

具體來說，本季包括與 Hydradyne 收購相關的約 150 萬美元的盡職調查和交易相關費用。

Overall, positive gross margin performance coupled with the benefit of spend initiatives resulted in reported EBITDA increasing 3.3% year over year while EBITDA margin of 12.6% expanded 45 basis points from the prior level of 12.1%.

整體而言，正向的毛利率表現加上支出計畫帶來的好處導致報告的 EBITDA 較去年同期成長 3.3%，而 EBITDA 利潤率為 12.6%，較之前的 12.1% 擴大了 45 個基點。

Combined with greater interest income on higher average cash balances and a slightly reduced share count, we reported earnings per share of $2.39 which was up 6.7% from prior year adjusted EPS levels of $2.24. Of note, prior year adjusted eps excludes a pretax $3 million or $0.08 per share deferred tax valuation allowance benefit.

加上平均現金餘額增加帶來的利息收入增加和股票數量略有減少，我們報告的每股收益為 2.39 美元，較上年調整後的每股收益 2.24 美元增長 6.7%。值得注意的是，上年調整後的每股盈餘不包括稅前 300 萬美元或每股 0.08 美元的遞延所得稅估值準備金收益。

Moving now to our cash flow performance, cash generated from operating activities during the second quarter was $95.1 million while free cash flow totaled $89.9 million, representing conversion of 96% relative to net income.

現在來看看我們的現金流表現，第二季經營活動產生的現金為 9,510 萬美元，而自由現金流總計 8,990 萬美元，相對於淨收入的轉換率為 96%。

Year-to-date, we have generated approximately $212 million of free cash flow which is up 34% year over year and represents a conversion of 114% relative to net income.

年初至今，我們已產生約 2.12 億美元的自由現金流，年增 34%，相對於淨收入的轉換率為 114%。

Our cash flow growth so far this year primarily reflects more modest working capital investment compared to prior year as well as ongoing progress with internal initiatives and our enhanced margin profile.

我們今年迄今的現金流成長主要反映了與前一年相比更為溫和的營運資本投資，以及內部措施的持續進展和利潤率的提高。

Turning now to our acquisition of Hydradyne.

現在談論我們對 Hydradyne 的收購。

As Neil mentioned, we were extremely excited about this transaction.

正如尼爾所說，我們對這筆交易感到非常興奮。

It represents another notable milestone for Applied and our overall value proposition to customers, suppliers and all stakeholders.

它是應用材料公司的另一個重要里程碑，也是我們向客戶、供應商和所有利害關係人提出的整體價值主張的另一個重要里程碑。

Not only does the acquisition fit extremely well with our M&A priorities and return based capital deployment strategy, Hydradyne's local customer centric culture and operational caliber aligns well with our operating framework which will provide a strong foundation on which to build positive momentum early on.

此次收購不僅非常符合我們的併購重點和基於回報的資本配置策略，Hydradyne 以本地客戶為中心的文化和營運能力也與我們的營運框架非常契合，這將為早期建立積極勢頭奠定堅實的基礎。

As it relates to some of the financial considerations of the deal, the purchase price of $276 million was funded with cash on hand representing a transaction multiple of 9.1x enterprise value to forward EBITDA before anticipate its energies.

就該交易的一些財務考慮而言，2.76 億美元的購買價格是由庫存現金支付的，相當於企業價值的 9.1 倍交易倍數，以預期其能量之前的 EBITDA。

We expect the transaction to generate approximately $260 million in sales and $30 million in EBITDA as well as be accreted to EPS by approximately $0.15 within the first 12 months of ownership.

我們預計此交易將產生約 2.6 億美元的銷售額和 3,000 萬美元的 EBITDA，同時在持有後的前 12 個月內每股收益將增加約 0.15 美元。

The EPS accretion estimate is net a projected acquisition and tangible amortization expense of over $11 million in the first year or $0.22 per share as well as reduced interest income on lower cash balances after funding the transaction.

EPS 增值估計是扣除第一年預計的收購和有形攤銷費用超過 1100 萬美元或每股 0.22 美元以及交易融資後現金餘額減少導致的利息收入減少。

In addition, these assumptions are before anticipated synergies tied to cross selling, leveraging complementary solutions, harmonizing technical capabilities and systems and driving operational efficiencies across the combined operating platforms.

此外，這些假設尚未考慮與交叉銷售、利用互補解決方案、協調技術能力和系統以及提高合併營運平台的營運效率相關的預期協同效應。

We expect synergies to begin to develop in fiscal 2025 but be more meaningful in fiscal 2026 and 2027.

我們預計綜效將在 2025 財年開始發展，但在 2026 財年和 2027 財年將更有意義。

Based on our initial projections, we are targeting net synergies of $5 million to $10 million within the first three years of ownership.

根據我們最初的預測，我們的目標是在所有權的前三年內實現 500 萬至 1000 萬美元的淨協同效應。

Of additional note, following the transaction, our balance sheet remains strong with pro forma net leverage, increasing to a modest 0.5x and approximately $1.5 billion of balance sheet capacity remaining.

值得注意的是，交易完成後，我們的資產負債表依然強勁，預期淨槓桿率增至適度的 0.5 倍，剩餘資產負債表容量約為 15 億美元。

Turning out our outlook as indicated in today's press release and detailed on page 14 of our presentation, we are raising full year fiscal 2025 guidance to reflect our stronger second quarter earnings performance and estimated initial contribution from our acquisition of Hydradyne.

根據今天的新聞稿中所示以及我們簡報第14 頁中詳細說明的前景，我們將上調2025 財年全年業績指引，以反映我們更強勁的第二季度盈利表現以及收購Hydradyne 的預計初始貢獻。

We now project eps in the range of $9.65 to $10.05 based on sales growth of 1% to 3% and EBITDA margins of 12.2% to 12.4%.

我們現在預測每股收益在 9.65 美元到 10.05 美元之間，基於 1% 到 3% 的銷售額增長和 12.2% 到 12.4% 的 EBITDA 利潤率。

Previously, our guides assumed EPS of $9.25 to $10 sales growth of down 2.5 % to 2.5% and even the margins up 12.1% to 12.3%.

先前，我們的預期是每股收益為 9.25 美元至 10 美元，銷售額成長下降 2.5% 至 2.5%，利潤率則上漲 12.1% 至 12.3%。

Our updated guidance assumes full year fiscal 2025 sales declined organically by 3% to 1% on an average daily basis compared to our prior assumption of down 4% to up 1%.

我們的最新指引假設 2025 財年全年銷售額每天有機下降 3% 至 1%，而我們先前的假設是下降 4% 至成長 1%。

We are now assuming year over year organic sales trends improve more gradually in the second half of fiscal 2025.

我們現在假設 2025 財年下半年的年比有機銷售趨勢將會更緩慢地改善。

We believe this is reasonable given ongoing uncertainty tied to macro policy and interest rates which could continue to restrain customer capital spending and production growth near term.

我們認為這是合理的，因為宏觀政策和利率持續存在的不確定性可能會在短期內繼續抑制客戶的資本支出和生產成長。

We're also taking into account the slower start to early third quarter organic sales trends which as noted earlier are trending down by a mid single digit percentage over the prior year January.

我們也考慮到第三季初有機銷售趨勢起步較慢，如前所述，與去年 1 月相比，該趨勢下降了中等個位數百分比。

The midpoint of guidance now assumes average organic sales decline by a single digit percent year over year in the second half of fiscal 2025 including mid single to low single digit declines in the third quarter followed by a return to modest growth in the fourth quarter.

目前指引的中點假設 2025 財年下半年平均有機銷售額年減百分之個位數，其中第三季出現中等個位數至低個位數下降，隨後第四季恢復溫和成長。

We are projecting M&A generated sales including Hydradyne to contribute 600 basis points to 700 basis points of year over year sales growth in the second half of the year, partially offset by ongoing foreign currency transaction and translation headwinds.

我們預計，包括 Hydradyne 在內的併購產生的銷售額將為今年下半年的同比銷售額增長貢獻 600 到 700 個基點，但持續的外匯交易和折算阻力將部分抵消這一增長。

Overall while we remain constructive on our set up moving forward considering easier prior year comparisons, improving demand indicators and sustained benefits from our internal initiatives, we believe a balanced approach to our near term outlook remains appropriate any more definitive signs of a positive inflection and underlying industrial activity.

總體而言，儘管考慮到更容易與上年同期進行比較、需求指標改善以及內部舉措帶來的持續利益，我們對未來的發展仍持建設性態度，但我們認為，對短期前景採取平衡的方法仍然是適當的，任何更明確的積極拐點跡象和潛在的工業活動。

Lastly, from a margin perspective, we expect third quarter gross margins to decline sequentially to around 30%.

最後，從利潤率的角度來看，我們預計第三季的毛利率將環比下降至 30% 左右。

This assumes a more normalized level of gross margin and execution relative to our strong second quarter performance as well as slightly higher LIFO expense.

相對於我們強勁的第二季業績以及略高的後進先出費用，這意味著毛利率和執行水準更加正常化。

Combined with ongoing inflationary headwinds, anticipated growth investments, our annual merit increase which was effective 01 January and initial integration costs mixed considerations from Hydradyne acquisition.

加上持續的通膨逆風、預期的成長投資、自 1 月 1 日起生效的年度績效加薪以及收購 Hydradyne 的初始整合成本等混合因素。

We expect third quarter even the margins to moderate sequentially to 12% to 12.2%.

我們預計第三季利潤率將環比下降至 12% 至 12.2%。

Those still expand year over year.

這些數字仍在逐年擴大。

Lastly, our updated guidance assumes initial EPS accretion from hydrazine is modest in the third quarter as we begin integration and align initiatives within a muted and market backdrop.

最後，我們更新後的指引假設，隨著我們開始在低迷的市場背景下整合和調整舉措，第三季肼的初始每股盈餘成長將很小。

We expect accretion to begin to ramp in the fourth quarter and in the fiscal 2026 as initial synergies are achieved and end markets begin to recover.

我們預計，隨著初步協同效應的實現和終端市場的開始復甦，第四季和 2026 財年的成長將開始加速。

With that, I will now turn the call back over to Neil for some final comments.

說完這些，我現在將電話轉回給尼爾，請他發表一些最後的評論。

So to wrap up, I'm proud of the Applied team and our performance through the first half of fiscal 2025.

總而言之，我為應用程式團隊和我們在 2025 財年上半年的表現感到自豪。

We're delivering on our commitments and making strong progress toward our interim financial objectives of $5.5 billion of revenue and 13% EBITDA margins near term.

我們正在履行承諾，並在實現近期 55 億美元收入和 13% EBITDA 利潤率的中期財務目標方面取得了巨大進展。

We believe the underlying demand environment could remain muted and somewhat choppy pending a more defined direction macro policies post the election.

我們認為，在大選後宏觀政策出台更明確的方向之前，潛在的需求環境可能仍將保持低迷且有些波動。

As our second quarter results show we have the ongoing self help opportunities to manage and perform well if demand remains sluggish near term.

正如我們第二季的業績顯示，如果短期內需求仍然低迷，我們將有持續的自救機會來管理和表現良好。

That said as we look forward and consider our industry position, we continue to believe we are close to entering a very favorable growth period at Applied.

儘管如此，當我們展望未來並考慮我們的行業地位時，我們仍然相信應用材料公司即將進入一個非常有利的成長期。

We feel good about the positive demand signals developing, including stronger order trends across our higher margin engineered solutions segment.

我們對正在發展的積極需求訊號感到滿意，包括利潤率更高的工程解決方案部門的訂單趨勢更加強勁。

Investments over the past several years should optimize our organic growth potential as in markets begin to recover.

隨著市場開始復甦，過去幾年的投資應該會優化我們的有機成長潛力。

This includes recent facility expansions to optimize our service capabilities across the technology vertical and our automation operations.

這包括最近的設施擴建，以優化我們在技術垂直領域和自動化營運的服務能力。

A recent board meeting was held at one of these facilities where we saw firsthand the growth potential of our expanded capacity and technical market position as well as some of the building customer activity beginning to develop.

最近在其中一個工廠舉行了一次董事會會議，我們在會上親眼目睹了擴大產能和技術市場地位的成長潛力，以及一些建築客戶活動開始發展。

We also believe break fix activity should accelerate across our service center network into the spring and summer as production schedules ramp back up.

我們也相信，隨著生產計劃的恢復，我們的服務中心網路的故障修復活動將在春季和夏季加速。

This could drive more heightened technical MRO and capital spending as customers reengage initiatives to modernize equipment and expand production facilities now with the election behind us and as additional transparency develops on us trade policies and interest rates.

隨著大選結束，以及美國貿易政策和利率的透明度不斷提高，客戶重新參與到設備現代化和生產設施擴張的舉措中，這可能會推動技術維護、大修和資本支出的進一步增加。

Our technical domain expertise and access to core industrial equipment puts us in a leading position to help customers manage through these operational requirements.

我們的技術領域專業知識和對核心工業設備的使用使我們處於領先地位，能夠幫助客戶管理這些營運要求。

Lastly, we're in a strong position to benefit from ongoing industry consolidation over the next several years, considering the high fragmentation and technical requirements associated with our industry segment.

最後，考慮到我們所在行業的高度分散性和技術要求，我們將在未來幾年受益於持續的產業整合。

We believe the drivers of consolidation are higher today.

我們認為，如今整合的驅動力更高。

Customer supply chain focus has intensified, they are potentially facing one of the more favorable us manufacturing backdrops in decades while also managing through limited technical labor availability and greater mandates to eliminate operational risk.

客戶對供應鏈的關注度不斷增強，他們可能正面臨幾十年來最有利的美國製造業背景之一，同時還要透過有限的技術勞動力可用性和更大的授權來消除營運風險。

Accelerating innovation and significance of motion power and control systems and are increasing service requirements including access to new production solutions and system repairs.

運動動力和控制系統的創新和重要性不斷加速，服務需求也不斷增加，包括獲得新的生產解決方案和系統維修。

Combined with structurally higher inflation, we believe these considerations could accelerate consolidation across sector both organically and through M&A as customers and suppliers increase business with larger more capable distributors.

結合結構性較高的通膨，我們認為，隨著客戶和供應商與規模更大、更有能力的經銷商增加業務往來，這些考慮可能會加速整個行業的整合，無論是有機整合還是透過併購整合。

The value of our scale technical service, engineering capabilities, strategic supplier relationships and available balance sheet capacity has never been stronger in our marketplace.

我們的規模技術服務、工程能力、策略供應商關係和可用資產負債表能力的價值在市場上從未如此強大。

Overall, we look forward to fully capturing this growth potential through the remainder of fiscal 2025 and years to come.

整體而言，我們期待在 2025 財年剩餘時間及未來幾年充分發揮這一成長潛力。

And as always, we thank you for your continued support.

像往常一樣，我們感謝您一直以來的支持。

With that, we'll open up the lines for your questions.

現在，我們將開放熱線來回答您的問題。

(Operator Instructions)

（操作員指令）

David Matthew, Burt.

大衛馬修，伯特。

Thank you.

謝謝。

Good morning, everyone.

大家早安。

The first question is in the second quarter excluding rebates and the lifo tailwind you improved core gross margin by about 80 basis points year over year.

第一個問題是，第二季度，除去回扣和後進先出因素，核心毛利率比去年同期提高了約 80 個基點。

And one of the slides, you mentioned execution e segment and initiatives.

在其中一張投影片中，您提到了執行部分和計劃。

I'm wondering if you can further refine the sources and the sustainability of that improvement.

我想知道您是否可以進一步完善這種改進的來源和可持續性。

Yes, I can start, David.

是的，我可以開始了，大衛。

I would say in the energy segment, good performance, we got benefit from mix scale is coming through for us into that side.

我想說，在能源領域，良好的表現，我們從混合規模中獲益，這些都為我們帶來了好處。

And so we think just overall good execution as the team looks to appropriately price to the value of the systems and solutions that we have.

因此，我們認為整體執行效果良好，因為團隊希望根據我們現有的系統和解決方案的價值進行適當的定價。

So positive and point of sale there, but also benefit in the technical nature of the products and solutions mix as well as some of the customer side in that.

因此，那裡的銷售點是積極的，而且也受益於產品和解決方案組合的技術性質以及一些客戶方面的好處。

I think as Dave pointed out, we did get some supplier benefit into the side.

我認為正如戴夫指出的那樣，我們確實獲得了一些供應商的利益。

I would say roughly 10 basis points to 20 basis points of that that could have been or that was tied to achieving a higher tier into that side.

我認為其中大約有 10 個基點到 20 個基點可能與達到更高等級有關。

So it came through into this quarter.

所以它進入了本季。

We would not look for that to replicate in the third quarter.

我們不希望第三季再次出現這種情況。

And that really points us to saying gross margins are more low 30s percent in the third quarter and the rest of the back half.

這實際上表明，第三季和下半年剩餘時間的毛利率將低於 30%。

But we did get, another 10 basis points to 15 basis points of just good continued execution across the business as well.

但我們確實在整個業務範圍內獲得了另外 10 個基點到 15 個基點的良好持續執行。

You get your point, Dave.

你明白你的意思了，戴夫。

Stripping out that unusual support vendor support in the LIFO which combined 10 basis points to 20 basis points on the vendor support, 25 basis points on the Lifo.

剝離後進先出法 (LIFO) 中不尋常的支援供應商支持，將供應商支援合併為 10 個基點至 20 個基點，將後進先出法 (LIFO) 合併為 25 個基點。

Solid in line performance.

性能穩定。

About 50 basis points of that did come out of the interior solutions segment, combination is new indicated mix.

其中約50個基點確實來自內裝解決方案部分，組合是新的指示組合。

I mean, a big piece of that reading through is as we said, we were up 2% year over year in terms of our flow control, shipments up 4% subsequentially.

我的意思是，正如我們所說的那樣，其中很大一部分內容是，我們的流量控制同比增長了 2%，出貨量隨後增長了 4%。

That is one of our richer gross margin performing businesses as well as just, here again, pricing for the value and some of the favorability that we're seeing coming out of that segment.

這是我們毛利率較高的業務之一，同樣，這也是我們在該領域看到的價值和一些有利因素的定價。

But beyond that, proud to see the 5 basis points to 15 basis points improvement in the service center side of the business.

但除此之外，我們很高興看到服務中心業務方面取得了 5 個基點到 15 個基點的改善。

So really hitting all the cylinders there with the community to work around operational efficiencies, pricing in both pieces of the equation and really maximizing the benefit and the market position that we do hold.

因此，我們真正與社區一起全力以赴，努力提高營運效率，為等式的兩個部分定價，並真正最大化我們所擁有的利益和市場地位。

Okay.

好的。

Thanks for the detail there.

感謝您提供的詳細資訊。

And second, Dave maybe you could talk about depreciation and amortization due to the acquisition of Hydradyne separately.

其次，戴夫，也許您可以單獨談談收購 Hydradyne 所產生的折舊和攤銷。

Just what is the step up there?

那裡的階梯到底是怎麼樣的？

And then also related to Hydradyne, you mentioned today, $5 million to $10 million of synergies over the first three years.

然後也與 Hydradyne 相關，您今天提到，前三年的協同效應為 500 萬至 1000 萬美元。

I'm wondering number one, is that a run rate by the time you hit the end of three years?

我首先想知道的是，這是三年結束時的運行率嗎？

And then second is that cost synergies or sales synergies or both.

第二是成本綜效或銷售綜效，或兩者兼具。

The majority.

大多數。

It's about, let me see, 70 to 30 mix in terms of sales energies, cost energies.

我看，銷售精力和成本精力的比例大約是 70 比 30。

We'll get those by virtue of benefits harmonization, leverages some of our licensing for both businesses, our legacy, fluid power business and Hydradyne on an epic core product that we do have some very favorable licensing costs for.

我們將透過利益協調來獲得這些，利用我們對兩項業務的部分許可，即我們的傳統流體動力業務和 Hydradyne，開發史詩級核心產品，而我們對此確實有一些非常優惠的許可成本。

And then you do anticipate some obviously the sales energy coming through as we continue to leverage and particularly given the underserved nature of that South East region that we've been looking to enhance our position in for so long as we targeted this acquisition, you see some of that come through.

然後，你確實可以預見到一些明顯的銷售能量，因為我們將繼續利用這一優勢，特別是考慮到東南地區服務不足的性質，我們一直在尋求加強我們的地位，只要我們瞄準這次收購，你就會明白有些已經實現了。

So a combination of both, the 22% impact in terms of depreciation amortization expense as we talked about stripping out specifically Hydradyne.

因此，兩者結合起來，在折舊攤銷費用方面的影響為 22%，正如我們討論的那樣，具體去除 Hydradyne。

Maybe I'll take that one just as it relates to the depreciation of an amortization into the back half.

也許我會接受這一點，因為它與後半部分的攤銷折舊有關。

You know, we'll step up to in total, closer to $17 million per quarter.

您知道，我們的總額將增加到接近每季 1700 萬美元。

And so Hydradyne including the entangled amortization as well as the depreciation about $3 million of incremental DNA or depreciation amortization per quarter in the back half of the year.

因此，Hydradyne 將糾纏攤銷以及下半年每季約 300 萬美元的增量 DNA 或折舊攤提納入。

And Dave I'd say then as we think about the synergies as we break them out, we think the cost margin side is in that more 70 to 80 end of that.

戴夫，我想說，當我們考慮協同效應時，我們認為成本利潤率應該在 70% 到 80% 之間。

Obviously a scale help us some in that we think on the on the purchasing side some of the indirect support.

顯然，規模對我們有一定幫助，因為我們認為在購買方面提供了一些間接支持。

But with that said, we're excited about the additional sales synergy opportunities and perhaps in that 20% to 30% range that that opens up to leverage the capabilities, strong service and repair and solutions in the geographies that can link with the service centers in and then the acceleration that we think across those in market segments in electronic controls, perhaps electrification in time will open up some of the cell synergies as well.

但話雖如此，我們對額外的銷售協同機會感到興奮，也許在 20% 到 30% 的範圍內，這可以利用與服務中心相連的地區的能力、強大的服務和維修以及解決方案然後，我們認為，隨著電子控制各個細分市場的加速發展，也許電氣化隨著時間的推移也會開啟一些電池協同效應。

So overall, very excited about this strategic addition to us in a core focus area of fluid power and an important geography.

總的來說，我們對這個在流體動力核心重點領域和重要地理位置的策略補充感到非常興奮。

I appreciate the detail.

我很欣賞這個細節。

Thank you.

謝謝。

Ken Newman, KeyBanc Capital Markets.

肯‧紐曼 (Ken Newman)，KeyBanc 資本市場。

Thank you.

謝謝。

Good morning, guys.

大家早安。

First I just wanted to clarify Neil on the January trends, turning down mid single digits.

首先，我只想向 Neil 澄清一月份的趨勢，即下降中位數個位數。

You know, I think it makes sense that it's being impacted by some of the holiday timing that you saw in December.

你知道，我認為它受到 12 月份一些假期時間的影響是有道理的。

But I am curious if you have any color on what the weekly trends through the month or how the ABS trends have kind of shifted from the beginning of the month towards the end and whether or not we're back to preshutdown levels or when you expect us to get there.

但我很好奇，您是否了解整個月的每週趨勢，或者 ABS 趨勢從月初到月底發生了怎樣的變化，以及我們是否會回到停擺前的水平，或者您預計何時我們到達那裡。

Sure.

當然。

And so I would say Ken, most of the drag in January was early in the month and I'd say probably the first couple of weeks down, double digit.

因此，我想說，肯，一月份的大部分拖累都出現在月初，我想說可能是前幾週的下降，是兩位數。

I would really say the last couple of weeks up low, single digit, a few days to go here as we move through.

我想說的是，過去幾週，數據一直處於較低水平，個位數，還有幾天就會公佈。

So that would be the break.

所以那將是一個突破。

And so that builds part of our view that it's hard to extrapolate all in November, December and the early start of January as the full indicator.

因此，我們的觀點是，很難將 11 月、12 月和 1 月初的所有內容推斷為完整指標。

So we're encouraged by the pickup over the last couple of weeks.

因此，我們對過去幾週的回升感到鼓舞。

Right.

正確的。

That's very helpful.

這非常有幫助。

And then Neil you know, you're essentially at your 40, 60 segment mix between the engineer solutions and service center businesses.

然後 Neil，你知道，你的工程師解決方案和服務中心業務之間基本上佔據了 40% 到 60% 的細分市場。

Do you or the Board have a sense of where you want that mix to ultimately go from here.

您或董事會是否清楚希望這種組合最終會走向何方？

And how do you envision the pace of that makeshift change from the growth that you've seen in the last five years.

從過去五年來的成長來看，您如何預測這種臨時變革的速度？

So I think we've got still great potential on both segments.

因此我認為我們在兩個領域仍然具有巨大的潛力。

You know, we talked about it time to get to the perhaps the 60 service center 40 approaching that.

你知道，我們討論過到達也許 60 個服務中心的時間，快到那個程度了。

With that said, opportunities on both segments to organically grow, cross sell opportunities that help vote as well as future M&A.

話雖如此，兩個領域都存在有機成長的機會、有助於投票的交叉銷售機會以及未來的併購機會。

Could anticipate engineered solutions growing past 40% in time to 45% or 50%, a good healthy balance across the business?

是否可以預期工程解決方案的成長率將從 40% 逐漸​​上升至 45% 或 50%，從而實現整個業務的良好平衡？

Absolutely.

絕對地。

But that will play out and there will be, continued opportunities for boltons on the service center side.

但這一切都會順利進行，而且，服務中心方面，Blotton 仍將有機會。

But if it stabilizes out and at a future date at a good, healthy 50 to 50 with both profitably growing.

但如果它穩定下來，並在未來某個時候達到良好、健康的50比50的比例，雙方都能實現盈利增長。

That will be a good spot for the company.

對公司來說那會是一個好地方。

Yes, that's helpful.

是的，這很有幫助。

Maybe if I could just squeeze one more in here.

也許我可以在這裡再擠一個。

You talked about the year-to-date engineered orders being up year over year driven by automation and tech.

您談到，在自動化和技術的推動下，今年迄今的工程訂單年增。

Just to clarify, are you, is the expectation that those, the revenue growth in those subsectors flip positive here in the second half.

只是為了澄清一下，您是否預期這些子行業的收入成長在下半年會轉為正成長。

And maybe just some color on where the automation business is run rating from a revenue perspective today.

也許只是從當今的收入角度對自動化業務的運行評級進行一些說明。

Yes, I'll start and work backwards.

是的，我將開始並從後往前做。

That's a run rate of the automation businesses probably in that 240 type range around that, on the side.

自動化業務的運作率大概在 240 左右。

We did touch on order rates encouraging automation in the high single digit tech double digit in that front.

我們確實觸及了鼓勵該領域高個位數技術兩位數自動化的訂單率。

But, collectively good activity broadly in engineered solutions may be more low single digit with the broader impact that we've had in fluid power in the off highway mobile segment.

但是，總體而言，工程解決方案中的良好活動可能只是較低的個位數，而我們在非公路移動領域流體動力方面產生的更廣泛的影響則較少。

But as we talked in the remarks, a little bit of an improvement there that we think could be encouraging as it goes across.

但正如我們在評論中談到的那樣，那裡出現了一些進步，我們認為這可能會令人鼓舞。

As far as the conversion timing, it really depends.

至於轉換時間，這確實取決於具體情況。

Some of them are very, quickly in conversion other that have a more technical nature or complexity in the buildout could be 120 perhaps more days into the side in that technical conversion the site.

其中一些項目的轉換速度非常快，而另一些項目則具有更強的技術性或複雜性，可能需要 120 天甚至更多天才能完成現場的技術轉換。

So it really depends on the application of that conversion or where it fits in with the customer and their overall project, which that can also cause some slotting or timing impacts as well.

因此，這實際上取決於轉換的應用或它與客戶及其整體專案的契合程度，這也會造成一些時段或時間上的影響。

And then Ken, as you think about the guidance by segment from a topline perspective, I think there is relates to the down mid signal to low single digits organically in the third quarter.

然後肯，當您從營收角度考慮各分部的指引時，我認為這與第三季的有機下降中位數訊號至低個位數有關。

We think the segments could probably trend around that in a somewhat similar way this quarter.

我們認為本季各細分市場的趨勢可能大致如此。

And then if you get into the fourth quarter, there's a path clearly given the order trends that we've seen in the engineered solutions segment to start to see the segment grow a little bit above where we see the service center segment from that standpoint.

然後，如果進入第四季度，根據我們在工程解決方案領域看到的訂單趨勢，顯然有一條路徑可以開始看到該領域的成長略高於從這個角度看到的服務中心領域。

Very helpful.

非常有幫助。

Appreciate the call guys.

感謝你們的來電。

Chris Dankert, Loop Capital Markets.

Chris Dankert，Loop Capital Markets。

Hey morning guys.

大家早安。

Thanks for taking the questions.

感謝您回答這些問題。

I guess, congrats on the quarter.

我想，祝賀這個季度。

We're looking at gross margin here, the delineation, there was very helpful.

我們在這裡查看毛利率，這一劃分非常有幫助。

I guess anything to call out on the freight side, that was a tailwind in the quarter.

我想，貨運方面任何值得關注的事情都是本季的順風。

How do we think about maybe freight going into the back half of fiscal '25 here.

我們如何看待 25 財年下半年的貨運量？

Chris, I'll start.

克里斯，我先開始。

I'd say nothing significant to call out.

我不會說任何重要的話。

Teams continue to have a good focus and execution freight and we will continue that emphasis.

團隊繼續保持良好的專注度和執行力，我們將繼續強調這一點。

We know the importance of it.

我們知道它的重要性。

So I don't think a material input in the quarter nor a big change in expectations for the back half.

因此，我認為本季不會有實質的投入，下半年的預期也不會有太大的改變。

Rates have gone up significantly.

利率已大幅上升。

We do have some nice contractual pricing, and the team is very focused on freight recovery and you know, kind of matching that.

我們確實有一些不錯的合約定價，而且團隊非常注重貨運回收，你知道，就是與之相匹配。

So really not a move for us either direction as we've seen some of the ebb and flow of this freight cost.

因此，對我們來說，無論朝哪個方向發展，實際上都不是件容易的事情，因為我們已經看到了運費的一些起伏。

Helpful.

很有幫助。

Thank you so much there.

非常感謝您。

And then maybe just zoom out to the 30,000 ft for a second.

然後也許只是將鏡頭縮小到 30,000 英尺一秒鐘。

You know, a lot of talk around changes to the US MCA.

您知道，關於美國 MCA 的變化有很多討論。

I know we've been hearing some better investment conversation from your metals customers, anything else that you're you're hearing or trying to keep in mind around trade talk and kind of how customers are positioning themselves here.

我知道我們已經從您的金屬客戶那裡聽到了一些更好的投資談話，您聽到的或試圖記住的有關貿易談判的任何其他事情以及客戶在這裡如何定位自己。

So if we think about that, we have very good business and operations in Canada, in Mexico.

所以如果我們考慮到這一點，我們在加拿大和墨西哥都有非常好的業務和營運。

A large portion of that is that they're highly contained and serving customers and segments.

其中很大一部分是它們高度封閉，為客戶和細分市場提供服務。

In Mexico not only the service centers include power, recent strong addition in automation with [CoPAR] in that front.

在墨西哥，服務中心不僅包括電力，最近還與[CoPAR]合作，在自動化方面進行了大力拓展。

So, to date, we think that's potentially lower impact to be determined the views on tariffs and what that impact can be in that front or is it to get improvements on immigration and perhaps drugs and some other policies in that.

因此，到目前為止，我們認為影響可能較小，需要確定對關稅的看法以及這種影響會是什麼，還是會改善移民問題、毒品問題以及其他一些政策。

But, to date our view is, it will not have a significant impact in US and in those countries.

但迄今為止，我們的觀點是，它不會對美國和這些國家產生重大影響。

There can be adjustment.

可以有調整。

If I look back at Trump policies.

如果我回顧川普的政策。

You know, 1.0 we were very effective at managing the tariffs and the impacts in the 232 and the various 301 list into that, we still have that in our playbook.

您知道，1.0 我們非常有效地管理關稅以及 232 和各種 301 清單的影響，我們仍然將其保留在我們的劇本中。

You know, if or when those tariffs develop, we'll know how to execute.

你知道，如果或當這些關稅出台時，我們就會知道如何執行。

Understood.

明白了。

Thanks so much guys.

非常感謝大家。

Sabrina Abrams, Bank of America.

美國銀行的薩布麗娜‧艾布拉姆斯 (Sabrina Abrams)。

Hey, good morning, guys.

嘿，大家早安。

You talked about, I guess pricing coming in a little under 100 bits this quarter.

您剛才說了，我猜本季的價格將略低於 100 位。

Just wanted to ask about the behavior you're seeing from suppliers on pricing.

只是想詢問一下您所看到的供應商的定價行為。

Do you feel you're caught up on price cost has pricing sort of normalized.

您是否覺得價格成本已經跟不上，定價是否已經正常化了？

And just any signs of this inflation, maybe color by product line would be helpful as well.

對於任何通貨膨脹的跡象，按產品線分類也許也會有所幫助。

Yes.

是的。

So Sabrina, I can start.

那麼薩布麗娜，我可以開始了。

I would say really no signs of disinflation.

我想說確實沒有通貨緊縮的跡象。

I would say the amount of the increase, the frequency and the rate are similar, suppliers probably organize around a couple of buckets.

我想說增加的金額、頻率和比率都差不多，供應商可能圍繞著幾個類別來組織。

Some will be now a calendar year end and start, and some others will operate more perhaps off their fiscal calendar and there'll be a grouping of suppliers there.

有些現在是日曆年的結束和開始，而其他一些則可能更多地按照他們的財政日曆來運作，並且會有一組供應商在那裡。

If you think about overall dynamics, there still would be inflationary inputs around labor for many of our suppliers, there's inflationary inputs on general and administrative expenses, medical health care into those sides.

如果你考慮整體動態，我們的許多供應商的勞動力仍會面臨通膨投入，一般及行政開支、醫療保健等方面也存在通膨投入。

And perhaps, metals inputs can vary into the front.

也許，金屬輸入可能會有所不同。

But what we are seeing is that the rate of increases have more normalized as we look back or think back all the way to the pandemic of being more once per year and the size of the increases are more normalized.

但我們看到，當我們回顧或回想疫情期間每年發生一次以上的病例時，病例成長率已經更加正常化，病例成長的規模也更加正常化。

And of course, that's all dependent on or pre any tariff impact.

當然，這一切都取決於關稅的影響，或取決於關稅的影響。

And I think their suppliers are clearly aligned.

我認為他們的供應商是明確一致的。

If tariffs develop on some of those items, they will come through as increases to the product prices, not any just auxiliary cost.

如果對某些產品徵收關稅，那麼其結果將會導致產品價格上漲，而不僅僅是輔助成本的增加。

And so it would result in inflation.

這會導致通貨膨脹。

But all that said, right now to your point in the remarks, less than 100 basis points impact if we -- that would be our current expectation for the back half of the fiscal year of aside of any other significant policy changes.

但話雖如此，就您在評論中提到的那樣，如果我們不考慮任何其他重大政策變化，那麼對本財年下半年的影響將不會超過 100 個基點 - 這是我們目前的預期。

You know, I'd reiterate call it normalized in terms of the pricing that we do continue to see.

你知道，我會重申，就我們繼續看到的定價而言，它已經正常化。

And you know, really, you might jump to the conclusion that the lower LIFO expense was a result of, kind of lower price inputs really more of a function in this case of the reduction in operating inventories we've continued to achieve.

您知道，實際上，您可能會得出這樣的結論：較低的後進先出費用是由於較低的價格投入，實際上，在這種情況下，更多的是我們持續實現的營運庫存減少的結果。

Operating inventories sequentially continue to normalize in the quarter down about 2.5% sequentially or $18 million.

本季經營庫存持續較上季正常化，季減約 2.5%，即 1,800 萬美元。

So you took some of the pressure off the LIFO CALC and lowered some of that expense in the quarter.

因此，您減輕了 LIFO CALC 的一些壓力，並降低了本季的一些費用。

But here again, we had to call it more normalized and that good steady inflation, that distributors like because we know how to take that, you recover that and pass it on.

但在這裡，我們不得不稱之為更加正常化和良好穩定的通膨，分銷商喜歡這一點，因為我們知道如何利用它，如何恢復它並將其傳遞下去。

Thank you.

謝謝。

And then we talked about this a little but can you give a color on why gross margins moderate Q over Q, I guess there's 10 bits to 20 bits from the supplier rebates that I think you said doesn't repeat.

然後我們稍微談論了這一點，但您能否解釋一下為什麼毛利率會隨著 Q 的增加而降低，我猜供應商回扣大概有 10 位到 20 位，我想您說過不會重複。

But there's a remaining 40 bits, 50 bits of sequential moderation and just like wondering if it's mixed Is it sourcing is the price cost?

但還有剩餘的 40 位元、50 位元順序調節，就像想知道它是否混合了，它的採購是否是價格成本？

How should I think about the moderation.

我該如何思考適度呢？

A combination of mix.

混合的組合。

And then we did say we do assume, step up from what we saw in the most recent quarter in terms of LIFO, just not expecting to reduce the inventory levels further to that order of magnitude.

然後我們確實說過，我們確實假設，在後進先出法方面，我們會比最近一個季度看到的情況有所提高，只是不希望將庫存水準進一步降低到那個數量級。

So we'd see LIFO expense step back up.

因此，我們會看到後進先出法費用回升。

We've got in, kind of around another million or so each quarter.

我們每季的收入大約是一百萬左右。

So that's where the biggest drivers and you know, just seeing some of that mix impact normalized would be the other factor as I look at the equation the expectation for some of that normalizing in terms of the gross margin performance.

所以，這就是最大的驅動因素，你知道，當我看著等式時，看到其中一些混合影響正常化將是另一個因素，即對毛利率表現方面的一些正常化的預期。

Brett Lindsay, Mizuho.

瑞穗的布雷特林賽 (Brett Lindsay)。

Hey, good morning.

嘿，早安。

Thanks for the questions.

感謝您的提問。

First one just on the tariff situation.

第一個問題是關於關稅情況。

So obviously, it's still a bit unclear on where those might land, but you did note additional policy transparency would certainly be good for demand.

因此顯然，目前還不太清楚這些因素會如何發揮作用，但你確實注意到，額外的政策透明度肯定會有利於需求。

Just curious what you're hearing from customers in terms of a potential pre buy activity ahead of any tariff related pricing and how that might work through the channels.

我只是好奇您從客戶那裡聽到了什麼，關於在任何關稅相關定價之前的潛在預購活動以及這些活動如何通過管道進行。

So it's a brit for us and given the supply base and that many of the products can either be domestically or North America produced in that area, right?

所以對我們來說，這是一個英國，有了供應基礎，許多產品可以在國內或北美生產，對嗎？

We're low direct import.

我們的直接進口量很少。

Some of our suppliers may have componentry to adjust in the time.

我們的某些供應商可能需要及時調整零件。

I do not see heightened prebuy activity on products.

我沒有看到產品預購活動加強。

I think most are taking the stance if or when they occur, there'll be some notice period to do that.

我認為大多數人都會採取這樣的立場，如果發生這種情況，或者當這種情況發生時，都會有一定的通知期。

Perhaps there'll be some existing inventory in the channel and end customers are prepared to take it forward to the marketplace as well.

也許通路中會有一些現有庫存，最終客戶也準備將其推向市場。

And so if there are tariffs, right, it can have an inflation there impact on that will need to pass all the way through the businesses all the way through the channels and to the end users, the end consumers in that.

所以，如果有關稅，就會產生通貨膨脹的影響，這種影響需要透過企業、通路、最終用戶和最終消費者來傳遞。

And so I do not see a big move to get in front because there's not really the understanding of the clarity of what went on last time does that repeat or is it going to be different.

因此，我看不出會有什麼大的進展，因為大家並不真正清楚上次發生的事情，是否會重複或有所不同。

I'd add to that.

我想補充一點。

We think about 50% of our service center business being break fix and, not really being able to anticipate what they do need.

我們認為，服務中心 50% 的業務是故障修復，而我們無法真正預測他們到底需要什麼。

That's another dynamic that.

這是另一種動態。

We don't see as much stocking, destocking in this business as a result.

因此，我們並沒有看到該行業出現太多的存貨和去庫存現象。

Makes sense.

有道理。

And then just, just a follow up on M&A so you noted a number of bolt on and midsized deals in the pipeline, maybe just talk about the near term actionability of the pipeline for Hydradyne deals.

然後，只是對併購的後續關注，所以您注意到正在進行的許多附加交易和中型交易，也許只是談論 Hydradyne 交易管道的近期可行性。

And then if there's any constraints on, management integration resources or anything to do a couple more of these chunky midsize deals and, and maybe what's behind it.

然後，如果有任何限制，管理整合資源或任何事情，可以做更多的這些大宗中型交易，以及背後的原因。

Thanks a lot.

多謝。

So I'd say the business, the team say clearly we have the operating capacity and the capability to do these across our businesses, whether it be fluid power flow control and automation.

因此我想說，業務團隊清楚地表示，我們擁有營運能力和在整個業務中實現這些目標的能力，無論是流體動力流控制還是自動化。

You can imagine the teams start to turn in the operating teams slightly different in those as well as the service centers.

你可以想像，這些團隊開始轉變為略有不同的營運團隊以及服務中心。

You know, I said, we can't perfectly control the timing on these as well.

你知道，我說過，我們也無法完美地控制這些的時間。

We did touch on that business, the expectations, the requirements of customers into that side.

我們確實觸及了那項業務、客戶的期望和要求。

I think it will cause more businesses to look and consider.

我認為這會引起更多企業的注意和考慮。

And so we just plan on like we are really in all periods, stay active to our priorities with those companies, with those prospects and with those targets.

因此，我們只是計劃，就像我們在所有時期一樣，積極地關注這些公司、這些前景和這些目標的優先事項。

[Patrick Susrait], Oppenheimer.

[帕特里克·蘇斯拉特]，奧本海默。

Hey, guys, I was wondering if you could give us some background on the history you have with Hydradyne leading up to the deal.

嘿，夥計們，我想知道您是否可以向我們介紹一下您與 Hydradyne 在達成交易之前的背景。

You know, what most attracted you to it and any incremental learnings and cross selling potential or the technical capabilities you lifted that you may have had in your first month of ownership as you get a better look under the hood.

您知道，什麼最吸引您，以及任何增量學習和交叉銷售潛力，或者您在擁有它的第一個月內可能擁有的技術能力，因為您對它有了更好的了解。

So Patrick, I'd say one, a very good business that we've known for an extended period of time from a geographic standpoint.

所以派崔克，我想說，從地理角度來看，這是我們長期了解的非常好的企業。

It was not an area that we had from a food power company standpoint, really the reach and the participation so helps us very much there.

從食品實力公司的角度來看，這不是我們所處的領域，因此，影響力和參與度確實對我們幫助很大。

I would say very similar from a value added solutions approach into that both in industrial, in market applications as well as mobile on and off highway in the front.

我想說，從增值解決方案的方法來看，它們在工業、市場應用以及高速公路和非公路移動領域都非常相似。

A lot of good service and repair capabilities.

許多良好的服務和維修能力。

So we think given our service center participation across businesses that can fulfill some of the service and repair needs of those customers effectively in those served geographies.

因此，我們認為，鑑於我們的服務中心參與跨業務，可以有效地滿足這些服務地區客戶的一些服務和維修需求。

So it's early, but a very good team, very good approach in doing it, we'll be smart about the business operation and the integration and how we go forward.

雖然現在還為時過早，但我們擁有一支非常優秀的團隊，採用非常好的方法，我們會明智地進行業務運營和整合，並推動未來發展。

We think we have good line of sight to margins that combine with the businesses around scale and cost and on the margin side as well as it will open up more synergy opportunities on the selling side for us over that time period.

我們認為，我們對利潤率有著良好的預期，將規模、成本和利潤方面的業務結合起來，也將為我們在那段時間內在銷售方面開闢更多的協同機會。

So again, a very good strategic fit in the geography, a lot of capabilities fitting our engineered solutions build out priority especially around the fluid power side.

因此，再次強調，地理位置上的非常好的策略契合，許多適合我們工程解決方案的功能都優先考慮，特別是在流體動力方面。

Okay.

好的。

Thanks for that.

謝謝。

You guys mentioned ample capacity for more M&A and you know, Brett asked about the size, but I'm curious what the pipeline looks like now regarding strategic focus areas, you guys prioritizing additional targets and fluid power or would you view other product areas more likely for excessive pursuits?

你們提到了充足的併購能力，你知道，布雷特問的是規模，但我很好奇現在關於戰略重點領域的管道是什麼樣的，你們優先考慮額外的目標和流體動力，還是會更多地關注其他產品領域可能追求過度？

So we would continue to have good prospects and targets in fluid power as well as flow control and automation, a little more select but opportunities are built out on the on the service center side with effective leverage at 0.5x now, post acquisition.

因此，我們將繼續在流體動力以及流量控制和自動化領域擁有良好的前景和目標，雖然選擇更多一些，但機會是在服務中心方面建立的，收購後的有效槓桿率目前為 0.5 倍。

So we still have a ready capacity and capability to continue to be acquisitive in this.

因此，我們仍然擁有足夠的產能和能力來繼續進行收購。

I mean, we've said the business can clearly operate with two turn two times leverage in an environment.

我的意思是，我們已經說過，在某種環境下，企業顯然可以透過兩倍的槓桿來運作。

And so obviously, to talk about two, you've got to get the first in that front.

因此顯然，要談論兩個問題，就必須先討論第一個問題。

Very good opportunities for us in that business has strong capacity and it will be part of our continued build out as we get to the next level targets of the $5 billion in revenue and 13% of margins.

該業務擁有強大的產能，這對我們來說是非常好的機會，它將成為我們持續建設的一部分，我們將實現下一個目標，即 50 億美元的收入和 13% 的利潤率。

We will continue to grow organically as well as right acquisitions.

我們將繼續有機成長以及正確的收購。

Okay.

好的。

Thanks.

謝謝。

I'll pass it on.

我會傳達的。

Thank you.

謝謝。

At this time, I'm showing we have no further questions.

目前，我表示我們沒有其他問題。

I will now turn the call over to Mr Schrimsher for any closing remarks.

現在我將把電話轉給 Schrimsher 先生，請他做最後發言。

All right, simply I want to thank everyone for joining us today and we look forward to talking with many of you throughout the quarter.

好的，我只是想感謝大家今天的加入我們，我們期待在整個季度與大家進行交談。

Thank you.

謝謝。

Thank you, ladies and gentlemen, this concludes today's conference.

謝謝各位女士、先生們，今天的會議到此結束。

Thank you for participating.

感謝您的參與。

You may now disconnect.

您現在可以斷開連線。