Applied Industrial Technologies Inc (AIT) 2025 Q3 法說會逐字稿

Welcome to the fiscal 2025 third quarter earnings call for Applied Industrial Technologies. My name is Cele, and I'll be your operator for today's call.

歡迎參加應用工業技術公司 2025 財年第三季財報電話會議。我叫 Cele，今天電話的接線生由我來接聽。

(Operator Instructions)

（操作員指示）

Please note that this conference is being recorded. I will now turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury. Ryan, you may begin.

請注意，本次會議正在錄製。現在我將把電話轉給投資者關係和財務總監 Ryan Cieslak。瑞安，你可以開始了。

Okay, thanks and good morning to everyone on the call. This morning, we issued our earnings release and supplemental investor deck detailing our third quarter results.

好的，謝謝大家，大家早安。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三季業績。

Both of these documents are available in the investor relations section of applied.com. Before we begin, just a reminder, we'll discuss our business outlook and make forward-looking statements. All forward-looking statements are based on current expectations subject to certain risks and uncertainties, including those detailed in our SEC filings. Actual results may differ materially from those expressed in the forward-looking statements. The company undertakes no obligation to update publicly or revise any forward-looking statement. In addition, the conference call will use non-GAAP financial measures which are subject to the qualifications referenced in those documents.

這兩份文件均可在 applied.com 的投資者關係部分找到。在我們開始之前，提醒一下，我們將討論我們的業務前景並做出前瞻性陳述。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，包括我們向美國證券交易委員會提交的文件中詳述的風險和不確定性。實際結果可能與前瞻性陳述中所表達的結果有重大差異。該公司不承擔公開更新或修改任何前瞻性聲明的義務。此外，電話會議將使用非公認會計準則財務指標，但須符合這些文件中提及的資格要求。

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. We appreciate you joining us. As usual, I'll begin with perspective and highlights on our third quarter results, including an update on industry conditions and expectations going forward. Dave will follow with more financial detail on the quarter's performance and provide additional color on our outlook and guidance. I'll then close with some final thoughts.

謝謝，瑞安，大家早安。感謝您的加入我們。像往常一樣，我將首先介紹我們第三季業績的觀點和亮點，包括行業狀況的最新情況和未來的預期。戴夫將提供有關本季業績的更多財務細節，並對我們的展望和指導提供更多說明。最後，我將以一些最後的想法來結束。

Overall, ourli team performed well in the third quarter against an ongoing muted and evolving end-market backdrop. We focused on our internal growth and gross margin initiatives, as well as cost controls and working capital management. As a result, gross margins, EBITDA margins, EBITDA, and EPS exceeded our expectations and prior year levels.

總體而言，在持續低迷且不斷變化的終端市場背景下，ourli 團隊在第三季表現良好。我們專注於內部成長和毛利率計劃，以及成本控制和營運資金管理。因此，毛利率、EBITDA 利潤率、EBITDA 和 EPS 均超出了我們的預期和去年同期水準。

In addition, while market demand remained soft, there were signs of firming sales trends as the quarter developed. Of note that 3% organic sales decline in the quarter was stable with last quarter and in line with our guidance, while sales trends improved across our service center segment as the quarter progressed.

此外，儘管市場需求依然疲軟，但隨著本季的發展，有跡象顯示銷售趨勢正在回升。值得注意的是，本季 3% 的有機銷售額下降與上一季持平，符合我們的預期，同時隨著本季的進展，我們服務中心部門的銷售趨勢有所改善。

Sales declines in our engineered solution segment persisted, reflecting softer OEM fluid power markets and more gradual backlog conversion. That said, this market appears to be bottoming and orders across the segment strengthened further during the quarter. As it relates to the quarter's margin performance, both gross margins and even margins exceeded our expectations, increasing 95 basis points and 59 basis points over the prior year respectively.

我們的工程解決方案部門的銷售額持續下滑，反映出 OEM 流體動力市場疲軟以及積壓訂單轉換更加緩慢。也就是說，該市場似乎正在觸底，該領域的訂單在本季進一步增強。就本季的利潤率表現而言，毛利率和均利潤率均超出我們的預期，分別比上年增加了 95 個基點和 59 個基點。

Our performance continues to benefit from solid channel execution and ongoing margin initiatives across various areas of our business as well as variable expense adjustments and cost management. Gross margins also benefited from our initial positive mixed contribution from our recent hydrodyne acquisition. When looking at it over a longer period, gross margins have now expanded year over year in 9 of the past 11 quarters, while EBITDA margins are up 320 basis points over the past five years. This performance has helped drive 12% compounded annual growth for both EBITDA and free cash flow over the past five years.

我們的業績持續受益於穩健的通路執行、各個業務領域持續的利潤計劃以及變動費用調整和成本管理。毛利率也受惠於我們最近收購 Hydrodyne 公司所帶來的初步正向混合貢獻。從長期來看，過去 11 個季度中有 9 個季度毛利率年增，而過去五年 EBITDA 利潤率上漲了 320 個基點。這一業績推動了過去五年 EBITDA 和自由現金流的 12% 複合年增長率。

Overall, very compelling trends when considering various market headwinds over the past several years, including higher inflation, supply chain disruptions, and more recently, softer demand trends. Overall, our margin expansion highlights the benefits of our strategy and strong market position. This includes structural mixed tailwinds as we continue to expand our engineered solution segment both organically and through M&A, combined with focused initiatives tied to pricing analytics and processes, supplier relationships, local account growth, and supply chain optimization.

總體而言，考慮到過去幾年的各種市場不利因素，包括通膨上升、供應鏈中斷以及最近需求疲軟趨勢，這些趨勢非常引人注目。總體而言，我們的利潤率擴大凸顯了我們的策略和強大的市場地位的優勢。這包括結構性混合順風，因為我們將繼續透過有機方式和併購方式擴大我們的工程解決方案部門，並結合與定價分析和流程、供應商關係、本地帳戶成長和供應鏈優化相關的重點措施。

In addition, we're on track to achieve another record year of cash generation with free cash flow of 50% year over year in the third quarter and 39% year-to-date. Our cash generation and strong balance sheet provide financial strength and flexibility in the current macro landscape, allowing us to proactively enhance our growth position and shareholder returns through greater capital allocation year-to-date.

此外，我們預計再創現金創造紀錄，第三季自由現金流年增 50%，年初至今成長 39%。我們的現金創造能力和強勁的資產負債表在當前宏觀環境下提供了財務實力和靈活性，使我們能夠透過年初至今更多的資本配置來積極提升我們的成長地位和股東回報。

Of note, we've deployed over $440 million in capital through the end of March. This partially reflects greater M&A activity, including a recent acquisition of Hydradyne. We're extremely excited about the growth and operational momentum we expect to build with Hydradyne. Initial integration is going well with strong collaboration and strategic positioning across operating teams. We expect financial contribution to increase into the fourth quarter and fiscal 2026 as initial synergies are achieved and demand strengthens across core and emerging fluid power markets.

值得注意的是，截至 3 月底，我們已部署超過 4.4 億美元的資金。這部分反映了更多的併購活動，包括最近對 Hydradyne 的收購。我們對 Hydradyne 所期望實現的成長和營運勢頭感到非常興奮。初步整合進展順利，各營運團隊之間合作緊密，策略定位明確。隨著初步綜效的實現以及核心和新興流體動力市場需求的增強，我們預計第四季和 2026 財年的財務貢獻將會增加。

In addition, our M&A pipeline remains active and provides ongoing momentum moving forward, as reflected by today's announced definitive agreement to acquire IRIS factory automation. IRIS is a nice bolt on acquisition for our automation team that we believe will be incremental to our growth potential and value proposition long-term given their focused capabilities. Of note, IRIS provides proprietary turnkey productized solutions that can be easily deployed in a customer's facility to address common automation needs.

此外，我們的併購管道依然活躍，並為未來發展提供了持續的動力，今天宣布的收購 IRIS 工廠自動化的最終協議就體現了這一點。對於我們的自動化團隊來說，IRIS 是一項很好的補充收購，我們相信，鑑於其專注的能力，它將長期提升我們的成長潛力和價值主張。值得注意的是，IRIS 提供專有的交鑰匙產品化解決方案，可輕鬆部署在客戶的設施中以滿足常見的自動化需求。

Their solutions utilize advanced vision and robotics, and support processes such as palletizing, case packing, and quality inspection. Expanding our portfolio of productized automation solutions is a key focus area that should accelerate our cross-selling potential and addressable market long term.

他們的解決方案採用先進的視覺和機器人技術，並支援堆疊、裝箱和品質檢查等流程。擴大我們的產品化自動化解決方案組合是一個重點關注領域，這將加速我們的交叉銷售潛力和長期目標市場。

IRIS will add over 30 new associates and is expected to generate annual sales of around $10 million in the first year of ownership, so we believe this acquisition can drive stronger growth synergy long term, as we leverage our core suppliers leading automation technologies and Applied's access to legacy manufacturing verticals. Overall, we look forward to welcoming IRIS to Applied and leveraging their capabilities going forward.

IRIS 將增加 30 多名新員工，預計在擁有的第一年將產生約 1000 萬美元的年銷售額，因此我們相信此次收購可以長期推動更強勁的增長協同效應，因為我們可以利用核心供應商領先的自動化技術和應用材料對傳統製造垂直市場的訪問。總的來說，我們期待 IRIS 加入應用材料公司並利用其未來的能力。

In addition to ongoing M&A activity, we remain proactive with share buybacks, including repurchasing over 330,000 shares for approximately $80 million year-to-date in fiscal 2025. Our approach to share buybacks remains consistent. With our capital allocation strategy of returning excess cash to opportunistic share buybacks utilizing a discipline valuation and returns focused framework. Long term, we see significant intrinsic value creation potential across Applied considering our strategic initiatives, industry position, exposure to secular growth tailwinds, and margin expansion potential.

除了正在進行的併購活動外，我們還積極進行股票回購，包括在 2025 財年迄今以約 8,000 萬美元的價格回購了超過 33 萬股股票。我們對股票回購的態度保持一致。我們的資本配置策略是利用紀律估值和回報重點框架將多餘的現金回饋給機會性股票回購。從長遠來看，考慮到我們的策略性舉措、產業地位、長期成長順風的影響以及利潤率擴張潛力，我們認為應用材料公司具有巨大的內在價值創造潛力。

When appropriate, we will continue to utilize share buybacks to enhance shareholder returns. And as indicated in our press release today, I'm pleased to announce our board has approved a new $1.5 million share repurchase authorization.

在適當的時候，我們將繼續利用股票回購來提高股東回報。正如我們今天的新聞稿中所述，我很高興地宣布，我們的董事會已經批准了一項新的 150 萬美元股票回購授權。

As it relates to the underlying demand environment, overall dynamics remain mixed during the third quarter as the evolving tariff and trade policy backdrop combined with higher interest rates continue to weigh on broader industrial activity. As expected, similar to last quarter, customers maintained a gradual approach to production and continued to conservatively manage MRO and capital spending, including delaying new system installs and extending the phasing of capital projects. That said, we did see several encouraging trends in the quarter.

就潛在需求環境而言，第三季的整體動態仍然喜憂參半，因為不斷變化的關稅和貿易政策背景加上更高的利率繼續對更廣泛的工業活動造成壓力。正如預期的那樣，與上一季類似，客戶保持了漸進式生產方式，並繼續保守地管理 MRO 和資本支出，包括推遲新系統安裝和延長資本項目的分階段實施。話雖如此，我們確實在本季看到了一些令人鼓舞的趨勢。

First, demand across our service center segment gradually improved following a slow start in January, with average daily sales increasing nearly 4% sequentially versus the second quarter which was slightly ahead of normal seasonal patterns. Second, trends across our top-30 in markets improved from last quarter with 16 generating positive sales growth year over year compared to 11 last quarter.

首先，我們服務中心部門的需求在 1 月緩慢起步後逐漸改善，每日平均銷售額較上季成長近 4%，略高於正常的季節性模式。其次，我們各市場排名前 30 位的企業的銷售趨勢較上一季度有所改善，其中 16 家企業的銷售額同比實現正增長，而上一季度只有 11 家企業實現了正增長。

While sales declines continue across several top markets, including machinery, metals, and utilities, we saw a number of markets turn slightly positive in the quarter, including rubber and plastics and oil and gas, as well as several lower tier verticals. Growth was strongest in technology, food and beverage, pulp and paper, aggregates, and transportation markets.

雖然機械、金屬和公用事業等幾個頂級市場的銷售額持續下滑，但我們看到本季許多市場略有好轉，包括橡膠和塑膠、石油和天然氣，以及幾個較低等級的垂直市場。科技、食品和飲料、紙漿和造紙、骨材和運輸市場的成長最為強勁。

Further, while mid single digit organic sales declines persisted across our engineered solution, segment orders increased 3% year-over-year and 8% sequentially on an organic basis during the quarter. This drove the segments book to bill above one for the first time in nearly three years. Stronger order trends were primarily driven in automation, where orders grew by over 30% year over year and 20% sequentially in the third quarter.

此外，儘管我們的工程解決方案的有機銷售額持續出現中等個位數下滑，但本季部門訂單年增 3%，季增 8%。這使得該部門的訂單總額在近三年內首次超過 1。訂單趨勢強勁主要得益於自動化領域，第三季訂單年增超過 30%，較上季成長 20%。

While some of these orders are longer cycle in nature and likely won't contribute to sales growth until fiscal 2026, it's a positive trend nonetheless that provides strong support to this scaling area of our business. We also saw orders across industrial and mobile OEM fluid power markets turned slightly positive year over year in the quarter. This is an encouraging sign following notable sales headwinds in this area of our business over the past year.

雖然其中一些訂單的周期較長，可能要到 2026 財年才會對銷售成長做出貢獻，但這仍然是一個積極的趨勢，為我們業務的這一擴展領域提供了強有力的支持。我們也看到本季工業和行動 OEM 流體動力市場的訂單較去年同期略有成長。鑑於過去一年我們該業務領域的銷售明顯遭遇逆風，這是一個令人鼓舞的信號。

During the third quarter, reduced sales from industrial and mobile OEM fluid power customers negatively impacted our consolidated organic year-over-year of sales growth rate by approximately 100 basis points as well as the engineered solution segment organic growth rate by over 300 basis points. Stabilizing orders combined with more normalized OEM inventory levels, emerging hydrodyne synergies, and much easier comparisons provide a solid path to see this area of our business potentially re-emerge as a growth tailwind in the fiscal 2026 and beyond.

第三季度，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成長率產生了負面影響，影響幅度約為 100 個基點，對工程解決方案部門的有機成長率產生了負面影響，影響幅度超過 300 個基點。穩定的訂單、更規範的 OEM 庫存水準、新興的水動力協同效應以及更容易的比較，為我們這一業務領域在 2026 財年及以後重新成為增長順風提供了堅實的道路。

So overall, a number of positive takeaways from our third quarter performance that highlight the strength of our industry position and operational caliber as well as underlying growth set up we have developing. That said, needless to say, we are now operating in an environment that is more volatile given the dynamic global trading and tariff backdrop. The related macro uncertainty that has ensued represents a distinct challenge for our customers' near-term operational, and capital management planning processes.

整體而言，我們第三季的業績表現十分積極，凸顯了我們的產業地位和營運能力以及我們正在開發的潛在成長潛力。儘管如此，毋庸置疑，鑑於全球貿易和關稅的動態背景，我們現在的經營環境更加動盪。隨之而來的宏觀不確定性對我們客戶的近期營運和資本管理規劃流程提出了獨特的挑戰。

Dave will provide more color and views on our outlook and guidance shortly, but we believe the current backdrop could continue to weigh on industrial production and capital spending into the spring and summer months. This was partially evident during April, where we estimate average organic daily sales declined by an approximate 3% over the prior year period.

戴夫很快就會對我們的展望和指導提供更多細節和觀點，但我們認為當前的背景可能會繼續對春季和夏季的工業生產和資本支出產生影響。這在 4 月表現得較為明顯，我們估計平均每日有機銷售額比去年同期下降了約 3%。

That said, similar to the sequential improvement we saw during the third quarter, we expect brake fix and maintenance activity to potentially pick up as the quarter progresses, considering deferred technical MRO spending over the past year. As a reminder, over 70% of our total sales come from technical MRO and aftermarket support on direct production equipment and systems, with roughly half our service centers sales from break fix applications.

也就是說，與我們在第三季度看到的連續改善類似，考慮到過去一年遞延的技術 MRO 支出，我們預計煞車修復和維護活動可能會隨著本季的進展而回升。提醒一下，我們總銷售額的 70% 以上來自直接生產設備和系統的技術 MRO 和售後支持，而我們服務中心銷售額的大約一半來自故障修復應用程式。

We also remain intensely focused on our internal and self-help growth initiatives tied to expanding cross-selling opportunities, salesforce investments, and product category penetration. In addition, our US centric customer base and manufacturing domain expertise combined with our scaling automation platform and diverse supplier base, puts us in a strong and opportunistic position to play offense as trade policies and supply chains potentially structurally shift.

我們也將繼續高度關注與擴大交叉銷售機會、銷售人員投資和產品類別滲透相關的內部和自助成長計劃。此外，我們以美國為中心的客戶群和製造領域的專業知識，加上我們不斷擴展的自動化平台和多樣化的供應商基礎，使我們在貿易政策和供應鏈可能發生結構性轉變時處於強大且機會主義的進攻地位。

This includes playing a critical role in providing technical maintenance, engineering and assembly, and process enhancements to US manufacturing systems and industrial equipment. In the near to midterm, this position could benefit if utilization of existing US production capacity structurally increases, including potential demand shifts towards second and third tier domestic producing OEMs, which are key customers to many of our business units.

這包括在為美國製造系統和工業設備提供技術維護、工程和組裝以及製程改進方面發揮關鍵作用。在近期至中期內，如果現有美國生產能力的利用率結構性提高，包括潛在需求轉向二線和三線國內生產 OEM（這些 OEM 是我們許多業務部門的關鍵客戶），這一地位可能會受益。

In addition, our strategic relationships with a diverse US supplier base combined with our technical repair, rebuild, and shop capabilities provide customers' component optionality and alternatives as they manage through potential supply chain inflation and disruptions.

此外，我們與多元化美國供應商群體的策略關係，結合我們的技術維修、重建和車間能力，為客戶提供了零件可選性和替代方案，幫助他們應對潛在的供應鏈膨脹和中斷。

And then on a longer-term basis, the potential for greater reshoring activity and new manufacturing investments could represent a meaningful tailwind across many of our essential customer industries from legacy metals and machinery verticals to advanced technology and life sciences. I'd also like to take a moment to discuss potential tariffs and the impact it can have on cost structure and operations.

從長期來看，更大的回流活動和新的製造業投資的潛力可能對我們許多重要的客戶產業（從傳統金屬和機械垂直產業到先進技術和生命科學）產生有意義的推動作用。我還想花點時間討論一下潛在的關稅及其對成本結構和營運的影響。

First, our US operations direct exposure to procuring products outside the US is very limited, representing less than 2% of total COGS, including an immaterial amount directly from China. As a result, we do not have or expect to have any significant exposure to direct tariff cost. From an indirect standpoint, we're working closely with our suppliers as they continue to assess the impacts of tariffs and other inflationary pressures on their supply chains.

首先，我們的美國業務直接採購美國境外產品的風險非常有限，佔總銷貨成本的不到 2%，其中包括直接從中國採購的少量產品。因此，我們不會、也不預期會承受任何重大的直接關稅成本。從間接角度來看，我們正在與供應商密切合作，他們將繼續評估關稅和其他通膨壓力對其供應鏈的影響。

We've received varying levels of price increase announcements from many suppliers over the past several months. Our teams are proactively and effectively managing through this evolving backdrop, and overall, we believe we are comparatively well positioned.

過去幾個月，我們收到了許多供應商不同程度的漲價公告。我們的團隊正在積極有效地應對這一不斷變化的背景，總體而言，我們相信我們處於相對有利的地位。

Our track record during the inflationary period of 2021 to 2023 provides strong evidence of our ability to manage and pass along inflation. We have a proven execution playbook that has been enhanced by system investments and analytical tools in recent years.

我們在 2021 年至 2023 年通膨時期的業績記錄有力地證明了我們管理和傳導通膨的能力。我們擁有經過驗證的執行手冊，近年來，該系統投資和分析工具使其得到了增強。

We operate from an agile business model in well structured markets tied to critical and technical processes with strategic supplier relationships. Combined with structural mixed tailwinds and various self-help gross margin countermeasures inherent to our strategy, we are highly confident in our ability to adapt and execute as the tariff and broader inflationary backdrop continues to evolve.

我們在結構良好的市場中採用敏捷的商業模式，與關鍵技術流程和策略供應商緊密結合。結合我們策略固有的結構性混合順風和各種自助毛利率對策，隨著關稅和更廣泛的通膨背景的不斷發展，我們對適應和執行的能力充滿信心。

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. Just another reminder before I begin. As in prior quarters, we have posted a quarterly sub level investor presentation to our investor site for additional reference as we recap our most recent quarter performance and updated guidance.

謝謝，尼爾。在我開始之前，再提醒一下。與前幾季一樣，我們在投資者網站上發布了季度分級投資者介紹，以便在我們回顧最近一個季度的業績和更新指引時提供更多參考。

Turning now to our financial performance in the quarter, consolidated sales increased 1.8% over the prior year quarter. Acquisitions contributed 660 basis points of growth, which includes the first quarter of contribution from our recent acquisition of Hydradyne.

現在來看看本季的財務業績，綜合銷售額比去年同期成長了 1.8%。收購貢獻了 660 個基點的成長，其中包括我們最近收購 Hydradyne 的第一季的貢獻。

This was partially offset by a negative 90-basis points impact from foreign currency translation and a negative 80-basis point impact from the difference in selling days year to year. Netting these factors, sales decrease 3.1% on an organic daily basis. As it relates to pricing, we estimate the contribution of product pricing on year-over-year sales growth was approximately 100 basis points in a quarter.

但這影響被外幣折算產生的 90 個基點的負影響以及同比銷售天數差異產生的 80 個基點的負影響部分抵消。除去這些因素，銷售額每天有機下降 3.1%。就定價而言，我們估計產品定價對季度同比銷售成長的貢獻約為 100 個基點。

Turning now to sales performance by segment, as highlighted on slides 7 and 8 of the presentation, sales in our service center segment declined 1.6% year by year on an organic daily basis. This excludes 20 basis points of contribution from acquisitions, a negative 80-basis point impact from the difference in selling days, and a negative 130 basis point impact from foreign currency translation.

現在來看看各部門的銷售業績，正如簡報的第 7 張和第 8 張投影片所強調的那樣，我們服務中心部門的銷售額每天同比下降 1.6%。這不包括收購帶來的 20 個基點的貢獻、銷售天數差異帶來的 80 個基點的負影響以及外幣折算帶來的 130 個基點的負影響。

The organic sales decline was primarily driven by reduced MRO spending and lower capital maintenance projects compared to the prior year. On an encouraging note, the decline was a slight improvement from last quarter's organic decline of 1.9%. This is despite a more difficult comparison, including seasonally strong brake fix and capital maintenance activity we saw in March of last year.

有機銷售額下降主要是由於與前一年相比 MRO 支出減少和資本維護項目減少所致。令人鼓舞的是，這一降幅較上一季 1.9% 的有機降幅略有改善。儘管比較起來更加困難，但情況仍然如此，其中包括去年 3 月季節性強勁的煞車修復和資本維護活動。

The segments two year stack organic year by year sales trend improves sequentially every month in the quarter, including posting positive 4% two-year stack growth in the month of March. In addition, segment EBITDA increased 6.4% over the prior year despite a 3.5% decrease in total sales, while segment EBITDA margin of 14.7% expanded 140 basis points. The year-over-year improvement was driven by strong cost management, gross margin initiatives, reduced LIFO expense, as well as favorable accounts receivable provisioning as a result of our internal working capital management initiatives.

該部門兩年疊加有機銷售逐年成長的趨勢在本季每個月都較上季改善，其中 3 月兩年疊加銷售成長率達到正 4%。此外，儘管總銷售額下降了 3.5%，但分部 EBITDA 仍比上年增長了 6.4%，而分部 EBITDA 利潤率為 14.7%，擴大了 140 個基點。年比成長得益於強而有力的成本管理、毛利率計畫、後進先出費用的降低，以及內部營運資本管理計畫帶來的有利的應收帳款撥備。

These results demonstrate solid performance and additional evidence of our ability to adjust and execute operationally in any demand environment. Within our engineered solution segment, sales increased 13.5% over the prior year quarter, with acquisitions contributing 20.8% growth, including our recent acquisition of Hydradyne. An organic daily basis, segment sales decreased 6.5% year over year, which was relatively similar to last quarter.

這些結果證明了我們出色的業績，也進一步證明了我們有能力在任何需求環境下進行調整和執行營運。在我們的工程解決方案部門，銷售額比去年同期成長了 13.5%，其中收購貢獻了 20.8% 的成長，其中包括我們最近收購的 Hydradyne。以日有機計算，該部門銷售額年減 6.5%，與上一季基本相同。

The segment's organic sales decline continues to primarily reflect ongoing demand weakness across fluid power OEM customers tied to reduce activity across the mobile fluid power market. In addition, backlog conversion and engineered systems and equipment remains slow as customers continue to take a measured approach to capital deployment and project phasing across our flow control and automation operations. This was partially balanced by growth across the technology vertical.

該部門有機銷售額的下降仍然主要反映了流體動力 OEM 客戶持續的需求疲軟，導致行動流體動力市場活動減少。此外，由於客戶繼續採取審慎的方式對我們的流程控制和自動化營運中的資本部署和專案分階段進行管理，因此積壓轉換和工程系統及設備的進展仍然緩慢。這在一定程度上被整個技術垂直領域的成長所平衡。

Segment EBITDA increased 10.2% over the prior year, reflecting contribution from Hydradyne as well as gross margin initiatives, cost management, and ongoing operational enhancements as we continue to execute our engineered solution strategy.

分部 EBITDA 較上年增長 10.2%，反映了 Hydradyne 的貢獻以及毛利率計劃、成本管理和持續的營運改進，因為我們繼續執行我們的工程解決方案策略。

Segment EBITDA margin of 13.8% was below the prior level of 14.3% and last quarter of 16.3%, though largely in line with our expectations, considering the initial mixed impact from hydrodyne as well as more normalized organic gross margins trends following the last quarter. As a reminder, we see strong upside potential in Hydrodyne's even the margins as we complete integration and execute our synergy plan, particularly considering the business's higher gross margin profile.

分部 EBITDA 利潤率為 13.8%，低於之前的 14.3% 和上一季的 16.3%，但考慮到水動力最初的混合影響以及上一季之後更加正常化的有機毛利率趨勢，該利潤率基本上符合我們的預期。提醒一下，隨著我們完成整合並執行協同計劃，我們看到 Hydrodyne 的利潤率具有強大的上升潛力，尤其是考慮到該業務更高的毛利率。

Moving to consolidate gross margin performance as highlighted on page 9 of the deck, gross margin of 30.5% increased 95 basis points compared to the prior level of 29.5%. During the quarter, we recognized LIFO expense of $2.2 million compared to $4.8 million in the prior year quarter. This net LIFO tailwind had a favorable 22 basis point impact on gross margins.

正如簡報第 9 頁所強調的，為了鞏固毛利率表現，毛利率為 30.5%，較之前的 29.5% 增加了 95 個基點。本季度，我們確認的後進先出法費用為 220 萬美元，去年同期為 480 萬美元。這種淨後進先出順風對毛利率產生了 22 個基點的有利影響。

Gross margins also benefit from initial positive mixed contribution from our recent hydrodyne acquisition. However, when excluding these positive impacts, we still generate solid gross margin expansion in the quarter, reflecting strong channel execution and the benefits of ongoing gross margin initiatives.

毛利率也受惠於我們最近收購 Hydrodyne 公司帶來的初步正面混合貢獻。然而，即使排除這些正面影響，我們本季的毛利率仍然保持穩健成長，這反映了強大的通路執行力以及持續的毛利率措施帶來的好處。

Price/cost trends were relatively neutral in the quarter. In addition, while gross margin mixed benefit from recent M&A, the business continues to face mixed headwinds from lower sales across local accounts and the engineer solution segment. As it relates to our operating costs, selling, distribution, and administrative expenses increased 4.1% compared to prior year levels.

本季價格/成本趨勢相對中性。此外，雖然近期併購活動為毛利率帶來了一定程度的收益，但業務仍面臨本地客戶和工程解決方案部門銷售額下降帶來的各種不利因素。與我們的營運成本相關，銷售、分銷和管理費用比去年同期增加了 4.1%。

SG&A expense was 19.4% of sales during the quarter, reflecting an increase of 43 basis points in the prior year quarter. Excluding depreciation in the amortization expense, SG&A was 17.9% of sales during the quarter, an increase of only 10 basis points from the prior year. On an organic constant currency basis, SG&A expense was down 6.3% year to year.

本季銷售、一般及行政費用佔銷售額的 19.4%，比去年同期增加了 43 個基點。不包括攤銷費用中的折舊，銷售、一般及行政費用佔本季銷售額的 17.9%，僅比上年增加 10 個基點。以有機固定匯率計算，銷售、一般及行政費用較去年同期下降 6.3%。

During the quarter, we benefit from ongoing efficiency gains and reduced variable expense on lower sales, as well as other cost measures as our team continues to effectively navigate through the subdued demand environment. We also experienced lower medical expense as well as favorable AR provisioning tied to our working capital initiatives with particularly strong collections performance.

在本季度，由於我們的團隊繼續有效地應對低迷的需求環境，我們受益於持續的效率提升和銷售額下降帶來的變動費用的減少以及其他成本措施。我們的醫療費用也降低了，與我們的營運資本計畫相關的應收帳款撥備也獲得了有利，收款業績也特別強勁。

Overall, positive gross margin performance coupled with the benefit of spend initiatives and M&A contribution resulted in reported EBITDA increasing 6.8% year over year, including an approximate 2% organic improvement, while EBITDA margin of 12.4% expanded 59 basis points from the prior level of 11.8%. In addition, reported earnings per share of $2.57 was up 3.7% from prior year EPS of $2.48.

總體而言，積極的毛利率表現加上支出計劃和併購貢獻的好處導致報告的 EBITDA 同比增長 6.8%，其中有機增長約 2%，而 EBITDA 利潤率為 12.4%，較之前的 11.8% 擴大了 59 個基點。此外，每股收益 2.57 美元，較上年每股收益 2.48 美元成長 3.7%。

This includes an unfavorable impact year over year from interest and other income and a slightly higher tax rate, partially offset by a lower share account. Moving to our cash flow performance. Cash generated from operating activities during the third quarter was $122.5 million while free cash flow totaled $114.9 million representing conversion of 115% relative to net income and a 50% increase from the prior year level.

這包括利息和其他收入同比產生的不利影響以及略高的稅率，但部分被較低的股票帳戶所抵銷。轉向我們的現金流表現。第三季經營活動產生的現金為 1.225 億美元，而自由現金流總計 1.149 億美元，相對於淨收入的轉換率為 115%，比去年同期成長 50%。

Year-to-date, we have generated approximately $327 million of free cash flow which is up 39% year-over-year. Our cash flow growth so far this year primarily reflects more modest working capital investment compared to the prior year as well as ongoing progress with internal initiatives and our enhanced margin profile.

年初至今，我們已產生約 3.27 億美元的自由現金流，年增 39%。今年迄今為止，我們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。

From a balance sheet perspective, we ended March with approximately $353 million of cash on hand and that leverage at 0.4 times EBITDA, which is above the prior level of 0.3 times but below last quarter's level of 0.5 times. Our balance sheet is in a solid position to support our capital deployment initiatives moving forward as well as enhanced returns for all stakeholders.

從資產負債表的角度來看，截至 3 月底，我們手頭上有大約 3.53 億美元的現金，槓桿率為 EBITDA 的 0.4 倍，高於之前的 0.3 倍，但低於上一季的 0.5 倍。我們的資產負債表狀況穩健，可以支援我們未來的資本部署計劃以及為所有利害關係人帶來更高的回報。

During the third quarter, we repurchased approximately 205,000 shares for $50 million bringing the year-to-date total on share repurchases to 332,000 shares for $80 million.

第三季度，我們以 5,000 萬美元回購了約 205,000 股，使年初至今的股票回購總額達到 332,000 股，價值 8,000 萬美元。

Turning now to our outlook, as indicated in today's press release and detailed on page 12 of our presentation, we are adjusting full year fiscal 2025 guidance to reflect our third quarter performance and updated fourth quarter expectations.

現在談談我們的展望，正如今天的新聞稿所示以及我們簡報第 12 頁所詳述的那樣，我們正在調整 2025 財年全年指引，以反映我們第三季度的業績和更新後的第四季度預期。

Specifically, we now project EPS in the range of $9.85 to $10 based on sales growth of flat to up 1%, including a down 4% to down 3% organic growth assumption as well as EBITDA margins of 12.3% to 12.4%. Previously our guidance assumed EPS of $9.65 to $10.05, sales growth of 1% to 3% including organic sales down 3% to 1%, and EBITDA margins of 12.2% to 12.4%. Our updated guidance implies a fiscal fourth quarter EPS range of $2.52 to $2.67 on a total sales year-over-year range of down 1% to up 3%, and EBITDA margins up 12.6% to 12.8%.

具體來說，我們目前預測每股收益將在 9.85 美元至 10 美元之間，基於銷售額持平至上漲 1% 的增長，包括有機增長下降 4% 至下降 3% 的假設以及 12.3% 至 12.4% 的 EBITDA 利潤率。此前，我們的預期是每股收益為 9.65 美元至 10.05 美元，銷售額增長 1% 至 3%，其中有機銷售額下降 3% 至 1%，EBITDA 利潤率為 12.2% 至 12.4%。我們最新的預期是，第四財季每股收益範圍為 2.52 美元至 2.67 美元，總銷售額年減 1% 至成長 3%，EBITDA 利潤率成長 12.6% 至 12.8%。

Our fourth quarter sales guidance assumes average daily sales decline organically by a mid to low single digit% over the prior year. The updated outlook considers average daily sales in April, declining by an estimated 3% organically year over year, as well as near-term demand implications from greater economic uncertainty around recent tariff actions and an evolving global trade landscape.

我們第四季的銷售預期是假設日均銷售額與上年度相比有機下降中低個位數百分比。更新後的展望考慮了 4 月份的平均日銷售額，與去年同期相比有機下降了約 3%，以及近期關稅行動和不斷變化的全球貿易格局帶來的更大經濟不確定性對近期需求的影響。

We believe this backdrop could weigh on seasonal industrial production trends into the summer as customers conservatively manage costs and capital spending, finding greater clarity on trade and tariff policies. From a margin perspective, we expect fourth quarter growth margins to be relatively stable sequentially.

我們認為，由於客戶對貿易和關稅政策更加明朗，保守地管理成本和資本支出，這種背景可能會對夏季的季節性工業生產趨勢產生影響。從利潤率的角度來看，我們預計第四季的成長利潤率將相對穩定。

The outlook assumes limited impact from tariffs on pricing and cost inflation in the fourth quarter, given the timing of announced supplier price increases, our product procurement exposure, and an evolving tariff and trade policy backdrop. In addition, we expect life expenses to be relatively unchanged sequentially at slightly above $2 million and any significant changes in our inventory levels near term.

考慮到供應商宣布提價的時間、我們的產品採購風險以及不斷變化的關稅和貿易政策背景，展望認為關稅對第四季度定價和成本通膨的影響有限。此外，我們預計生活費用將保持相對不變，略高於 200 萬美元，我們的庫存水準近期不會發生任何重大變化。

However, this would represent a headwind year by year in the fourth quarter of about 20 basis points on margins, reflecting LIFO favorability in the prior year fourth quarter, which we previously highlighted partially benefited from a layer liquidation benefit.

然而，這將意味著第四季利潤率將逐年下降約 20 個基點，反映出去年第四季後進先出法的有利因素，我們之前強調過，這部分受益於分層清算效益。

Overall, we remain constructive on our setup moving forward considering our industry position, easing prior year comparisons, sustained benefits from our internal initiatives, and engineer solution segment order trends. Greater financial contribution from our recent Hydradyne acquisition, including initial synergy benefits provides additional support.

總體而言，考慮到我們的行業地位、與去年同期的比較、內部舉措帶來的持續利益以及工程師解決方案部門的訂單趨勢，我們對未來的發展仍然持建設性態度。我們最近收購 Hydradyne 所帶來的更大財務貢獻（包括初始協同效益）提供了額外支援。

That said, we believe it is prudent and remains prudent to take a balanced approach to our near-term outlook in the current uncertain operating environment, pending more definitive and broader signs of a positive inflection in macro and industry conditions as trade and tariff policies are formalized.

儘管如此，我們認為，在當前不確定的經營環境下，採取平衡的態度對待短期前景是審慎的，並且仍然審慎，等待貿易和關稅政策正式實施後宏觀和行業狀況出現更明確和更廣泛的積極轉折跡象。

With that, I'll 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。

As we prepare to close out fiscal 2025, I'm proud of the ongoing progress we are making to strengthen our industry position, customer experience, and growth potential. Near term, we remain focused on executing and managing through a muted in-market backdrop. We expect customers will continue to conservatively manage operational and capital spending amid ongoing business and economic uncertainty that has been intensified by the evolving tariff and trade backdrop.

在我們準備結束 2025 財年之際，我為我們在加強產業地位、客戶體驗和成長潛力方面所取得的持續進展感到自豪。短期內，我們仍將專注於在低迷的市場背景下執行和管理。我們預計，在不斷變化的關稅和貿易背景加劇商業和經濟不確定性的情況下，客戶將繼續保守地管理營運和資本支出。

That said, we remain focused on internal growth and margin initiatives and believe our US centric technical industry position provides near-term resilience and strong growth catalyst long term. Order and backlog trends across our higher margin engineered solution segment provide strong underlying growth momentum in the fiscal 2026, and we're favorably positioned to manage potential greater inflation given our technical industry position, minimal cross border sourcing, structural mixed tailwinds, and various self-help countermeasures inherent to our strategy.

話雖如此，我們仍然專注於內部成長和利潤計劃，並相信我們以美國為中心的技術產業地位將提供短期彈性和長期強勁的成長催化劑。我們利潤率更高的工程解決方案部門的訂單和積壓趨勢為 2026 財年提供了強勁的潛在增長勢頭，並且鑑於我們的技術行業地位、最少的跨境採購、結構性混合順風以及我們戰略固有的各種自助對策，我們處於有利地位，可以管理潛在的更大通脹。

Combined with our strong balance sheet, exposure to long-term secular tailwinds, including reshoring, and easier comparisons moving forward, we remain constructive on our setup in the fiscal 2026 and beyond. I want to recognize our entire Applied team that the foundation of our performance and evolution, their perseverance and operational focus provide a strong position to accelerate our potential moving forward.

結合我們強勁的資產負債表、包括回流在內的長期順風因素以及未來更容易的比較，我們對 2026 財年及以後的設置仍然持建設性態度。我想對我們整個應用團隊表示感謝，他們的毅力和對營運的關注是我們業績和發展的基礎，為加速我們未來的潛力提供了強有力的支撐。

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

有了這些，我們就可以開始回答你們的問題了。

(Operator Instructions)

（操作員指示）

Christopher Glynn, Oppenheimer.

克里斯托弗·格林，奧本海默。

Thanks. Good morning, guys. So your analytics and everything, the insights into the margins and markets are really impressive as always. I get a question that might be a little tough though, if you look across your broad customer base, how are you thinking about the mix of proportion of them that might be particularly levered to some China sourcing and possible major production slowdowns?

謝謝。大家早安。因此，您的分析和一切，對利潤和市場的洞察一如既往地令人印象深刻。我有一個可能有點棘手的問題，如果您縱觀您的廣大客戶群，您如何看待他們中可能特別依賴中國採購和可能出現的重大生產放緩的比例？

Chris, I don't know that I have all of that insight in going through. But I would say I think the trends that we saw in the quarter and the improvement in the top 30 were positive the move from the 11 to 16. So if I think across it, I think technology and the domestic work that I'll continue to do there announced investments. I think those likely continue. I think obviously food and beverage should stay resilient.

克里斯，我不知道我是否具備所有這些洞察力。但我想說，我們在本季看到的趨勢以及前 30 名的進步是積極的，從第 11 名上升到第 16 名。因此，如果我全面考慮，我認為技術和國內工作我會繼續在那裡進行宣布的投資。我認為這些情況可能會持續下去。我認為食品和飲料顯然應該保持彈性。

The amount of construction activity and that would be needed as industrial infrastructure builds out would be positive for the aggregates and others into that site. And I would expect -- and we expect a pick up in machinery, utilities, and metals as potentially more domestic work comes in in that side. So that would be some of my insider indications that I have right now.

隨著工業基礎設施的建設，所需的建築活動量將對該場地的骨材和其他產品產生正面影響。而且我預計——我們預計機械、公用事業和金屬產業將會回暖，因為這些產業可能會有更多的國內工作機會。這就是我現在掌握的一些內部消息。

Appreciate it. I know it was an abstract topic (multiple speakers)

非常感謝。我知道這是一個抽象的話題（多位發言者）

In terms of improved daily sales rates as we moved across the core in the service center segments, and of course, the positive impact and in flow flex we saw on new order intake in the engineer solution segment, so those were all encouraging signs.

隨著我們在服務中心核心部分的業務拓展，每日銷售率有所提高，當然，我們也看到了工程師解決方案部分新訂單的正面影響和流程彈性，這些都是令人鼓舞的跡象。

Great. And then if we could look at some of the piece parts of engineered solutions, relative or specific growth for fluid power flow control and automation, and do you think fluid power could pivot in the first half of fiscal '26 or is that probably a little later?

偉大的。然後，如果我們可以看看工程解決方案的一些部分，流體動力流控制和自動化的相對或特定增長，您是否認為流體動力可能會在 26 財年上半年發生轉變，或者可能稍晚一些？

I think there could be some trends there. So if I break it apart, right? Automation on the order side was the was the strongest in the quarter, the 30% year over year and nice improvement sequentially. Fluid power on the technology side was double digit, a plus 10 on that side, which was positive as well. And then the mobile and industrial, positive year-over-year sequentially up 6% in that side.

我認為那裡可能存在一些趨勢。如果我把它拆開，對嗎？訂單方面的自動化是本季最強勁的，年增 30%，環比也有了顯著改善。技術方面的流體動力是兩位數，即+10，這也是正向的。然後是移動和工業領域，年增 6%。

I think we've talked about previously, I think the inventory has normalized in with some of those OEMs as well. And so in some of those sectors as we work through '26, we can start to see some of that pick up. It could develop to your point in the first half, but I think it continues to build throughout the fiscal '26.

我想我們之前已經討論過了，我認為一些 OEM 的庫存也已經恢復正常。因此，當我們展望26年時，我們可以開始看到其中一些行業的復甦。它可能在上半年發展到你所說的程度，但我認為它會在整個 26 財年持續發展。

Okay, and I missed your comment on fluid power, David, prior to Neil there.

好的，在 Neil 之前，我錯過了你對流體動力的評論，David。

I mean, prior to Neil referenced, broader engineer solution segment order trends. As Neil indicated, broke that out a little bit of detail. We did see the tech up around 10% within fluid power, encouraging, year-over-year growth on the mobile off highway piece, industrial as well, fluid power and up 6% sequentially in terms of water intake.

我的意思是，在 Neil 提到更廣泛的工程師解決方案細分訂單趨勢之前。正如尼爾指出的那樣，對此進行了詳細的闡述。我們確實看到流體動力領域的技術進步了約 10%，令人鼓舞的是，非公路用車、工業用車、流體動力領域的同比增長以及水攝入量環比增長 6%。

So all encouraging in terms of ultimate recovery in that mobile off highway space within fluid power where we've seen some of that lower demand. And you did experience some of that hangover coming off the supply chain disruption with some excess inventory in the channel. So all encouraging trends there for sure.

因此，就流體動力領域非公路移動領域的最終復甦而言，一切都令人鼓舞，我們已經看到了一些較低的需求。而且您確實經歷了供應鏈中斷帶來的一些後遺症，渠道中存在一些過剩庫存。因此，所有令人鼓舞的趨勢肯定存在。

Thanks. Last one for me, just want to check if that 30% automation or growth is an organic number.

謝謝。對我來說最後一個，只是想檢查 30% 的自動化或成長是否是一個有機數字。

That is.

那是。

Great. Thank you.

偉大的。謝謝。

David Manthey, Baird.

大衛‧曼西，貝爾德。

Yeah, thanks. Good morning, guys. As it relates to the guidance, some companies are sort of assuming known and expected price increases and then layering that over their growth expectations. We just had a company that is not assuming price increases as kind of a hedge for demand destruction and others are in between that. Just wondering as you think of your approach to setting guidance, how would you characterize it relative to factoring in? Any tariff driven price increases and balancing that out with demand destruction?

是的，謝謝。大家早安。就指導意見而言，一些公司假設已知和預期的價格上漲，然後將其疊加到他們的成長預期中。我們剛發現一家公司不承擔價格上漲的責任，以此作為對沖需求破壞的一種措施，而其他公司則處於兩者之間。只是想知道，當您考慮制定指導的方法時，您會如何描述它相對於考慮因素而言的特徵？是否有任何關稅導致的價格上漲，並透過需求破壞來平衡？

So I think as we go forward, we will be factoring in what we believe the price inflationary to look like. I think to-date, we talked about it in the remarks, we probably had 100 basis points of impact in the third quarter or contribution to price. In our fourth quarter, we would expect a similar amount. We are seeing increases from suppliers. I think many that have an annual increase at the beginning of the year have implemented that.

因此我認為，隨著我們不斷前進，我們將考慮我們認為的價格通膨情況。我認為到目前為止，我們在評論中談到了這一點，我們可能在第三季度產生了 100 個基點的影響或對價格的貢獻。在第四季度，我們預計會出現類似的金額。我們看到供應商的數量正在增加。我認為許多在年初就實現年度成長的公司都已經實施了這項舉措。

There would be some inflationary expectation or input into that, so perhaps a slightly larger increase. There's another group of suppliers that would be more mid-year. That has looked to accelerate those. But if I look forward at our fourth quarter, I think many of those increases will start to layer in somewhat the middle part of the fourth quarter, and that's why we think price contribution is still similar in that 100 basis points category in the fourth quarter.

這其中會存在一些通膨預期或影響，因此增幅可能會略大一些。還有另一組供應商可能更多地集中在年中。這似乎加速了這些進程。但如果我展望第四季度，我認為其中許多成長將在第四季中期開始顯現，這就是為什麼我們認為第四季的價格貢獻在 100 個基點類別中仍然相似。

And then as we look forward, I think it's still to be determined. We're working with suppliers. Many are formulating strategies about what might be reciprocal tariffs and that impact. I think it has the potential to be several 100 basis points potentially in that, but there's still things to work through in that time period. So we're going to work very hard to have the understanding and execute on what material, what price inflation will be, and also what in market activities would be. And perhaps there will be some that get lessened through this area, but I also contend there are going to be some that are going to strengthen and go forward with investments and have more regionalized demand, be it in the US or including in North America.

當我們展望未來時，我認為這還有待確定。我們正在與供應商合作。許多國家正在製定有關互惠關稅及其影響的策略。我認為其中的潛在漲幅可能會達到幾百個基點，但在那段時間內仍有一些事情需要解決。因此，我們將努力了解並執行哪些材料、價格上漲情況以及市場活動情況。也許有些需求會透過這個領域而減少，但我認為有些需求會加強，並且持續投資，並有更多的區域化需求，無論是在美國還是在北美。

Okay, so it sounds like you're just taking a logical approach to the tariff driven price increases you're seeing and layering that on to your demand forecast, and that's what's guiding you. Okay, that's that's helpful --

好的，聽起來您只是採取了一種合乎邏輯的方法來應對您所看到的由關稅驅動的價格上漲，並將其應用到您的需求預測中，這就是指導您的方法。好的，這很有幫助--

Sorry, they're guiding one quarter, David, but it's -- a lot of what we're seeing in terms of price increases as you indicated is more general inflation related. As everyone seems to be taking a wait and see attitude in terms of that 90-day, now 60-day window in terms of, better clarity in terms of what tariffs do to us. So given that timing, very little impact for us in Q4, purely tariff driven.

抱歉，大衛，他們只是指導一個季度，但正如您所說，我們所看到的許多價格上漲都與普遍的通貨膨脹有關。似乎每個人都對之前的 90 天（現在是 60 天）期限持觀望態度，以便更清楚地了解關稅對我們造成的影響。因此，考慮到時間安排，第四季對我們影響很小，純粹是關稅驅動。

Yeah, great idea to be on a June fiscal year this year for sure. Yeah, so then I guess there's kind of this thesis out there that there's a differential in demand destruction or growth rates across whether it's MRO related products, parts and components that are feeding production lines, and then third, sort of capital expenditure driven demand.

是的，今年的財政年度定在六月肯定是個好主意。是的，所以我想有這樣一種觀點，無論是 MRO 相關產品、為生產線提供零件，還是第三種由資本支出驅動的需求，需求破壞率或成長率都會有所不同。

It doesn't sound like you're seeing sort of an increasing level of demand destruction there given your automation organic growth you just talked about. So could you just talk about those three things MRO and then production sort of driven products versus capital expenditure driven sales? Is there a general trend in any of those or is it kind of dependent on the end market more?

考慮到您剛才談到的自動化有機成長，您似乎並沒有看到需求破壞程度的不斷增加。那麼，您能否談談 MRO 這三件事，以及生產驅動的產品與資本支出驅動的銷售？其中是否存在整體趨勢，還是更依賴終端市場？

Yeah, I think for us, David, overall we think about our service centers and given half their demand often will occur at a break fixed time, that's really resilient in that. We have seen in the broader MRO or some planned projects perhaps some deferrals or some kick out a little bit of that, as customers work through or think through planning and look for a little bit more certainty in the backdrop. But MRO, we feel given that's 70% of the overall company mix stays pretty resilient throughout.

是的，我認為對我們來說，大衛，總的來說，我們考慮我們的服務中心，考慮到他們一半的需求通常會在固定的休息時間發生，這真的很有彈性。我們在更廣泛的 MRO 或一些計劃項目中看到，可能存在一些延期或取消的情況，因為客戶正在研究或思考計劃，並在背景中尋求更多的確定性。但我們認為，鑑於 MRO 占公司整體業務組合的 70%，其始終保持相當的彈性。

And then where we are involved in projects and capital projects, they're really not extremely large capital intensive investments. They're enabling customers to be more productive, more efficient into the side. They have good paybacks and returns. And so we have seen some deferral or some delays in that, some of that's related to how the project -- part of the project interacts with the total part of the investment or the project.

我們所參與的項目和資本項目其實並不是極為龐大的資本密集型投資。它們使客戶的生產力和效率更高。他們獲得了良好的回報和利益。因此，我們看到了一些延遲或延遲，其中一些與專案有關——專案的一部分與投資或專案的總部分如何相互作用。

But we take encouraging signs the engineered solutions order rate that we would have had in the quarter, the building backlog that we're seeing including in flow control and automation in this site, and then the very early signs even in off-highway mobile, perhaps it is bottoming and firming into the side, while the technology that has been a headwind, if we look back, over perhaps 18 to 24 months back is starting to be a contributor again.

但我們看到了令人鼓舞的跡象，本季度工程解決方案的訂單率、包括該站點的流量控制和自動化在內的建築積壓，甚至非公路移動領域的早期跡象，也許它正在觸底並逐漸穩定，而回顧過去，大約 18 到 24 個月前一直處於逆風狀態的技術又開始成為貢獻者。

It's great color, Neil. Thanks, all.

顏色真棒，尼爾。謝謝大家。

Sabrina Abrams, Bank of America.

美國銀行的薩布麗娜‧艾布拉姆斯 (Sabrina Abrams)。

Hey, good morning. Yeah, I just wanted to talk, I guess, a little bit about the what you're seeing in the macro. And I think generally your trends seem positive, like sequentially, clearly there's a great extent of uncertainty, but the Q4 guide just decelerating trends from '23. And you know I guess it seems sort of May and June get worse. And I guess how much of that has to do with what you are currently seeing, maybe if you could clarify, whether April actually slowed from March, February or if there was something with Easter going on but from a demand if April has slowed?

嘿，早安。是的，我想我只是想稍微談談你在宏觀上看到的東西。我認為整體趨勢看起來是正面的，例如連續的，顯然存在很大的不確定性，但第四季度的指南只是從 23 年開始減速趨勢。你知道，我猜五月和六月的情況似乎會變得更糟。我想這與您目前看到的情況有多少關係，也許您可以澄清一下，四月份的需求是否實際上比三月、二月份有所放緩，或者是否與復活節有關，但從需求來看，四月份的需求是否有所放緩？

And I guess how much of things accelerating in the guide has to do with what you've already seen versus just assuming that things are going to get more negative from here. And then how do we sort of square the order trends in engineer solutions which I think have been positive for two quarters now with the implied deceleration quarter over quarter?

我想，指南中所說的事情加速發展與你已經看到的情況有多少關係，而不是只是假設事情從現在開始會變得更糟。那麼，我們如何將工程師解決方案的訂單趨勢（我認為這兩個季度都呈正增長）與隱含的季度環比減速相協調呢？

Yeah, so I'll perhaps work backwards. I'll start with the engineered solutions orders. So depending on the amount of engineering and the work to go into those projects which can vary, the conversion time can be 120 days, maybe 180 days on some of those. So encouraging on the build that I think many of those start to contribute into our fiscal '26 on that side.

是的，所以我可能會反過來做。我將從工程解決方案訂單開始。因此，根據工程量和專案工作量的不同，轉換時間可能為 120 天，有些專案甚至可能為 180 天。我認為這些建設非常令人鼓舞，其中許多建設將開始為我們 26 年的財政狀況做出貢獻。

And then if I think about the overall guide as we said, we want to be prudent in this environment. And as Work through these 90-day periods and what some of the tariffs and potential reciprocal tariffs may turn out to be into that site, we're still very focused on how we are executing the business and helping the customers in.

然後，如果我考慮我們所說的總體指南，我們希望在這種環境下保持謹慎。在這 90 天的期限內，隨著一些關稅和潛在的互惠關稅可能進入該網站，我們仍然非常關注如何開展業務並幫助客戶。

So I think that guide has appropriately prudent in that area. To your point, April did have an influence of a Good Friday Easter holiday timing into that, perhaps that was 100 basis points into that side influence. And then as we think about, March as it built up, probably on a two-year stack basis would have been down 1%, March more 4% into that period, so. As we think about April, given some of that order activity, we just want to be conscious of some of that either cross current or uncertainties that could exist.

所以我認為該指南在這方面是適當謹慎的。正如您所說，四月確實受到耶穌受難日復活節假期時間的影響，或許這方面的影響有 100 個基點。然後，正如我們所想，3 月份的累積量可能以兩年的累積量為基礎會下降 1%，而 3 月份則會下降 4%，所以。當我們考慮四月時，考慮到一些訂單活動，我們只是想意識到可能存在的一些交叉電流或不確定性。

I'd add, as you move across the months, June is a little bit tougher comp for us, April did see that impact from what we call a half day, in terms of Good Friday holiday. So could factor accordingly for that. But I just add, really the low end of the guidance, that seems an average daily sales is roughly 500 basis points below the normal sequential trends in the quarter.

我想補充一點，隨著時間的推移，六月對我們來說會更加艱難，四月確實受到了我們所說的半天耶穌受難日假期的影響。因此可以相應地考慮這一點。但我要補充一點，這確實是指引值的低端，似乎平均每日銷售額比本季正常的連續趨勢低約 500 個基點。

At the high end though, where we say down low single digits. Assumes average daily sales roughly 100 basis points below the normal step up we would see going into our Q4. So you know that compares that 100 basis points compares to a 230 basis points, kind of below normal seasonality level we've been running year-to-date. So just given all the uncertainty, thought it prudent to position it accordingly.

然而，在高端，我們說的是低個位數。假設平均每日銷售額比我們進入第四季時看到的正常增幅低約 100 個基點。因此，您知道，相較之下，100 個基點與 230 個基點相比，有點低於我們今年迄今的正常季節性水準。因此，考慮到所有的不確定性，我們認為採取相應的定位是明智之舉。

Got it. No, thank you, that's helpful. And then just on the EBITDA margins, if you've had good performance here today, and I guess if you look at what's implied by the guide, you have maybe similar year-over-year sales growth and maybe slightly worse in Q4 to Q3.

知道了。不，謝謝，這很有幫助。然後就 EBITDA 利潤率而言，如果您今天在這裡表現良好，我想如果您看看指南所暗示的內容，您可能會看到與去年同期類似的銷售額增長，並且第四季度的銷售額可能會比第三季度略差。

On a total basis, and then you have a much larger step up in SG&A, year over year, so the implication is something like I don't know, like 7% year-over-year increase in SG&A on 1% of sales growth. And I just want to understand at the sort of what it's implied by the midpoint of your guide. And I just sort of want to understand what will be driving so much the leveraging quarter over quarter. Does it have something to do with the acquisitions, something to do with inflation, so any color there would be helpful.

從整體來看，銷售、一般及行政費用 (SG&A) 逐年大幅成長，因此這意味著銷售額成長 1% 時，銷售、一般及行政費用將年增 7%。我只是想了解一下您的指南中間點的含義。我只是想了解是什麼原因導致槓桿率逐季上升。這是否與收購有關，與通貨膨脹有關，因此任何顏色都會有幫助。

Yeah, very proud of the business's cost controls and productivity in terms of SG&A spend in our most recent quarter. Hydradyne, comes in at a favorable gross margin mix up benefit, but still, higher SG&A rates. So you're seeing that read through. We're starting to get great traction on some of the synergy initiatives, but not a great deal of that reading through yet, even in the fourth quarter. So that is an influence.

是的，我們對最近一個季度在銷售、一般及行政費用方面的成本控制和生產力感到非常自豪。Hydradyne 的毛利率混合效益較好，但銷售、一般及行政費用 (SG&A) 費率仍較高。所以你看到了那篇讀物。我們開始在一些協同措施上取得很大進展，但即使在第四季度，這些措施的執行情況還不是很好。所以這是一種影響。

And I'd say, thinking back to the ghost margin performance, we said WIPO would be at a similar level sequentially what we saw on Q3. But just a reminder that you know in Q4 of last year as we comp this quarter, we did have a layer of liquidation benefit in the prior year, so that alone drives about a 20 basis point adverse impact on both gross and even a margins. So you're seeing all those combinations read through the, show some deleveraging as a result of just looking absolute numbers year over year.

我想說，回想一下幽靈利潤率的表現，我們認為 WIPO 的水平將與第三季的水平相似。但需要提醒的是，您知道，在去年第四季度，當我們比較本季度時，我們在前一年確實獲得了一層清算收益，因此僅此一項就對毛利率甚至利潤率產生了約 20 個基點的不利影響。因此，透過閱讀所有這些組合，您可以看到，由於逐年查看絕對數字，出現了一些去槓桿現象。

I'll follow up on that offline. Thank you.

我將離線跟進此事。謝謝。

Ken Newman, KeyBanc Capital Market.

肯‧紐曼 (Ken Newman)，KeyBanc 資本市場。

Hey. Good morning, guys. For the first question, I think longer term, I know you're not ready to talk about fiscal '25 yet. But I think you typically think about incremental margins through the cycle of kind of being in that mid to high teen range.

嘿。大家早安。對於第一個問題，我認為從長遠來看，我知道您還沒有準備好談論 25 財年。但我認為，您通常會考慮在中高青少年範圍內的周期內增加利潤率。

If demand does start to normalize next year, whether it's in DS or in service center, do you think that's the type of incremental that you could drive or does that become a little bit tougher depending on maybe some higher lifeboats for potential price increases? Just how do you think about maybe the moving pieces and operating leverage?

如果明年需求確實開始正常化，無論是在 DS 還是在服務中心，您是否認為這是您可以推動的增量類型，或者這是否會變得更加困難，取決於一些更高的救生艇可能帶來的價格上漲？您如何看待移動部件和經營槓桿？

Yeah, I would think end of the year and longer term, we still believe in our ability to have incremental in that mid to high teens range into the side as we think about it. To your point, a little early on fiscal '26, and a lot of moving -- perhaps a lot of moving parts. We'll be working through our planning. We're going through our long range strategy sessions and game theory had the service centers. And game theory with the board this past time, engineered solutions in in coming up, and we're working the planning cycles right now.

是的，我認為從今年年底和更長遠來看，我們仍然相信我們有能力在中高十幾歲的範圍內逐步實現成長。正如您所說，26 財年還處於初期階段，有很多變動 — — 也許有很多變動的部分。我們將按照計劃進行工作。我們正在進行長期策略會議，博弈論已納入服務中心。過去，我們與董事會一起探討了博弈論，並製定了解決方案，現在我們正在進行規劃週期。

But perhaps as a starter, as we think about or look at '26, perhaps it's as the fourth quarter guidance that would end. And if you apply normal seasonality looking ahead, that results in something that's flat, then if you think about there will be price contribution in that perhaps that's several 100 basis points into it.

但也許作為開始，當我們思考或展望 26 時，也許它會作為第四季度的指導結束。如果你應用正常的季節性來展望未來，結果將是一個持平的結果，那麼如果你考慮其中的價格貢獻，也許這個數字會達到幾百個基點。

Perhaps with some of the uncertainty in environment that degrades that volume a little bit, but we also contend we can have engineered solutions with backlog conversion into that site which could potentially contribute so. Perhaps '26 looks like a low single digit environment overall, perhaps it could be better as we work through.

也許由於環境中的一些不確定性，導致產量略有下降，但我們也認為，我們可以設計解決方案，將積壓訂單轉換為該站點，這可能會有所幫助。也許 26 年整體上看起來是一個低個位數的環境，但隨著我們的努力，情況可能會變得更好。

And then just as a reminder on LIFO, if there is more expense, I mean, obviously I'd start with it does provide LIFO overall a significant cash benefit to us in inflationary times. And if they look back at '17 through '19 with LIFO, we did a very nice job managing through that. And we grew gross margins into that period, 60 basis points or so. So the team has a good playbook. We have that muscle memory. We will be focused on really any operating environment that's ahead of how we execute and perform.

然後提醒一下後進先出法，如果有更多的費用，我的意思是，顯然我會從它開始，它確實在通貨膨脹時期為我們提供了後進先出法總體上顯著的現金收益。如果他們回顧 2017 年至 2019 年採用後進先出法的情況，就會發現我們在管理方面做得非常出色。我們的毛利率在那段時期增加了 60 個基點左右。所以球隊有一個很好的戰術手冊。我們有肌肉記憶。我們將真正專注於任何領先於我們執行和表現的營運環境。

I'll just add, coming out of the inflation of the COVID and some of that demand rebound, the business did very nicely in terms of levering when you think about the times, incrementals in excess of 20% despite some of those LIFO headwinds, etc. that Neil indicated. So structure, I just think the business is even better position now when you think about the mix up benefit that comes with higher engineered solutions, contribution.

我只想補充一點，在擺脫 COVID 通膨和部分需求反彈的影響後，考慮到當時的情況，儘管存在一些後進先出 (LIFO) 的不利因素，但業務在槓桿率方面表現非常出色，增量超過 20%，正如 Neil 指出的那樣。因此，當您考慮到更高工程化解決方案和貢獻所帶來的混合效益時，我認為業務現在處於更好的位置。

And once again, just thinking about the way the business levers on, some of that SG&A base. Once you get past that first 1% to 2% of growth, would expect, like I said, those mid to high teens incrementals for sure.

再一次，我們只是思考企業如何利用部分銷售、一般和行政費用基礎。一旦突破最初的 1% 到 2% 的成長，就像我說的，肯定會出現中到高十幾個百分點的增量。

Yes, that's really helpful. Maybe for the second question here, talk a little bit about capital deployment. Obviously, you've got the the new bolt on deal for IRIS this morning. You also, I think, announced a new share repurchase program as well. How do you think about priorities between the two? Is this a good level or a good share price level as you think about acting on that? That share repurchase program and with the capacity to act on M&A, even here in the forth quarter and into '26.

是的，這確實很有幫助。對於這裡的第二個問題，可以稍微談談資本配置。顯然，今天早上你已經獲得了 IRIS 的新附加交易。我認為您也宣布了一項新的股票回購計劃。您如何看待這兩者之間的優先順序？當您考慮採取行動時，這是一個好的水平或好的股價水平嗎？即使在第四季和 26 年，該股票回購計劃和採取併購行動的能力也是如此。

Yeah, so I can start. So Ken, overall our capital allocation, our priority is going to remain growth. We know that organic investments we make have high returns. And while we're not so capital intensive, we will be going through that planning and executing on those.

是的，我可以開始了。所以肯，總的來說，我們的資本配置，我們的重點仍然是成長。我們知道，我們所做的有機投資具有高回報。雖然我們的資本密集程度並不高，但我們會進行規劃並執行這些規劃。

We know also M&A can be a strong contributor to that. That will remain a priority. The pipeline's active. We're busy into that front, so that will contribute into the side. And then from a share repurchase standpoint, I'm pleased that the authorization was renewed in coming out. We will maintain a disciplined approach, a returns driven approach at that. But I would expect that we will be active in the fourth quarter.

我們也知道併購可以對此起到很大的推動作用。這仍將是優先事項。管道已投入使用。我們正忙於這方面的事情，所以這也會為側面的事情做出貢獻。然後從股票回購的角度來看，我很高興授權能夠得到更新。我們將保持嚴謹的態度，以回報為導向。但我預計我們將在第四季積極行動。

And to say, yes, so coming off of Hydradyne and the incremental share repurchase activity in the most recent quarter still at 0.4 times leverage, plenty of dry powder to handle all those capital deployment opportunities.

是的，所以從 Hydradyne 和最近一個季度的增量股票回購活動來看，槓桿率仍然為 0.4 倍，有足夠的資金來處理所有這些資本部署機會。

Very helpful, thanks.

非常有幫助，謝謝。

Brett Linzey, Mizuho.

瑞穗的布雷特‧林齊 (Brett Linzey)。

Hey, good morning, guys. This is Peter Kass on from Brett. Could you just add some color on what you're seeing from, reshoring investments, specifically? What's the pulse out there just as we wait out this policy uncertainty? Anything you're hearing around customer tone would be helpful. Thanks.

嘿，大家早安。我是 Brett 的 Peter Kass。您能否具體解釋一下您對回流投資的看法？當我們等待政策不確定性結束時，那裡的脈搏如何？您聽到的任何有關客戶語氣的資訊都會有所幫助。謝謝。

So I think overall, the activity or discussions around reshoring continue. If I think about the investments in facilities and we're seeing that from kind of the manufacturing non-resi construction rates being up. I know there's been a positive impact for a number of years in manufacturing employment, whether that's 1.4%, 1.5% into the side that continues.

所以我認為總體而言，圍繞回流的活動或討論仍在繼續。如果我考慮設施投資，我們會看到製造業非住宅建築率正在上升。我知道多年來製造業就業一直受到正面影響，無論是 1.4% 還是 1.5%，這種影響都會持續下去。

Many discussions with customers as they think about upcoming environments, what are they moving inside of their facilities or how they're looking to qualify other suppliers. And so many of Those next tier, second, third tier OEMs are customers of ours today, and so there will be capital and operating investments that could be continuing on that.

與客戶進行多次討論，考慮即將到來的環境、他們在設施內部移動什麼或他們如何尋求其他供應商的資格。如今，許多次級、二級、三級 OEM 都是我們的客戶，因此我們將繼續在這方面進行資本和營運投資。

And then we all see and read about large companies making extended investments in. And so as those projects start, we've got great indirect participation with our service centers as we think about metals, mining, aggregate as things get built and formed. And then as the facilities run and operate, they give us a strong aftermarket MRO. And then for some of these, including in fluid power and technology products depending on the industry, we're on that equipment going in which can create some pull for us as well. So I think reshoring continues to be an input and perhaps can be even a greater input as we look out at fiscal '26 and beyond.

然後我們都看到和讀到有關大公司進行擴大投資的消息。因此，隨著這些項目的啟動，我們與服務中心進行了大量的間接參與，考慮金屬、採礦、骨材等的建造和形成。隨著設施的運作和運作，它們為我們提供強大的售後市場 MRO。對於其中一些產品，包括流體動力和技術產品（取決於行業），我們正在使用這些設備，這也可以為我們創造一些吸引力。因此，我認為回流將繼續是一種投入，而且展望 26 財年及以後，這種投入甚至可能更大。

Thank you. And then maybe how do you think about the willingness of the channel to take on more price? Just any early pushback there as you kind of start to have the conversations with your suppliers and then with your channel? And then is there kind of just a willingness for the suppliers to to work through on any contract timing mismatches, anything there?

謝謝。那麼您如何看待通路承擔更多價格的意願？當您開始與供應商以及通路進行對話時，是否遇到了任何早期的阻力？那麼，供應商是否願意解決合約時間不符的問題？

Sorry, what was the last part of that question about suppliers?

抱歉，關於供應商的問題的最後一部分是什麼？

Just any willingness, on the supplier side to work through contract timing mismatches maybe with with larger national accounts, anything like that.

只要供應商方面願意解決合約時間不匹配的問題，或許可以與更大的全國性帳戶合作，諸如此類。

Yeah, so I would say overall, right, I mean there's clear awareness of tariffs, inflationary impacts, and inputs throughout any environment. And we're firm believers that we as consumers will pay more for items going forward, and that's going to be the same in the industrial environment. And so many of our customers are looking at right how they have clarity of what those inputs are going to be, and how they form those pricing inputs and policies as they take them forward in going out.

是的，所以我想說總的來說，我的意思是，在任何環境下，人們都要清楚地意識到關稅、通膨影響和投入。我們堅信，身為消費者，我們未來將為商品支付更多費用，在工業環境中也將如此。我們的許多客戶都在關注如何清楚地了解這些投入是什麼，以及如何在推廣過程中形成這些定價投入和政策。

As it relates to suppliers, they will be coming with the faith -- they'll provide the documentation that it will go through, And we work closely with them to have the right implementation schedule across the producing or customer landscape in that. And so if I look back, it's been productive in our operating history and cadence, and I expect the same as we go forward.

對於供應商而言，他們會滿懷信心地提供所需文件，我們會與他們密切合作，制定適合整個生產或客戶環境的正確實施計劃。因此，如果我回顧過去，就會發現我們的營運歷史和節奏是富有成效的，我希望未來也能如此。

At this time, I am showing we have no further question. I will now turn the call over to Mr. Schrimsher for any closing remarks.

目前，我表示我們沒有其他問題。現在我將把電話轉給 Schrimsher 先生，請他做最後發言。

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

我只想感謝大家今天的加入我們，我們期待在整個季度與你們中的許多人進行交談。謝謝。

Thank you, ladies and gentlemen. That concludes today's conference. Thank you for participating. You may now disconnect.

謝謝各位，女士們、先生們。今天的會議到此結束。感謝您的參與。您現在可以斷開連線。