Applied Industrial Technologies Inc (AIT) 2025 Q4 法說會逐字稿

Welcome to the Fiscal 2025 fourth-quarter earnings call for Applied Industrial Technologies. My name is Carly, and I will be your conference operator for today's call. (Operator Instructions) Please note that this conference is being recorded.

歡迎參加應用工業技術公司 2025 財年第四季財報電話會議。我叫卡莉，我將擔任今天電話會議的主持人。（操作員指示）請注意，本次會議正在錄音。

I would now like to turn the call over to Ryan Cieslak, Director of Investor Relations and Treasury. Ryan, you may begin.

現在我想將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, Carly, and good morning to everyone on the call.

好的。謝謝，卡莉，電話裡的各位早安。

This morning, we issued our earnings release and supplemental investor deck detailing our fourth quarter results. Both of these documents are available in the Investor Relations section of applied.com.

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四季度業績。這兩份文件均可在 applied.com 的投資者關係部分找到。

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.

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。

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.

本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. I'll begin today with perspective and highlights on our 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 fiscal 2026 guidance, I'll then close with some final thoughts.

謝謝，瑞安，大家早安。感謝您的加入。今天我將首先介紹我們的業績觀點和重點，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度業績的更多財務細節，並為我們 2026 財年的指引提供更多說明，然後我將最後發表一些想法。

Before I discuss our fourth quarter results, I want to take a moment to acknowledge our Applied team. I'm extremely proud of what we accomplished in fiscal 2025 within a muted demand backdrop. We achieved new records for sales, EBITDA and EPS. Full year EPS growth of 4% exceeded the high end of our initial guidance.

在討論我們的第四季業績之前，我想花點時間感謝我們的應用團隊。我對我們在 2025 財年在需求低迷的背景下所取得的成就感到非常自豪。我們的銷售額、EBITDA 和 EPS 均創下新高。全年每股收益成長 4%，超過了我們最初預期的高端。

Gross margins expanded nearly 50 basis points and surpassed 30% for the first time in our history. We also delivered another record year of cash generation that enabled meaningful capital deployment. This included the strategic acquisition of Hydradyne our largest M&A transaction in six years.

毛利率擴大近 50 個基點，史上首次超過 30%。我們也創造了新的創紀錄的現金創造年，從而實現了有意義的資本部署。其中包括對 Hydradyne 的策略性收購，這是我們六年來最大的併購交易。

Overall, our performance in fiscal 2025 provides further evidence of our operating resiliency and value creation potential and builds on our compelling track record over the past five years. This includes compounded annual growth for EBITDA and EPS of 14% and 22%, respectively as well as gross margins and EBITDA margins expanding 130 and 330 basis points, respectively.

總體而言，我們在 2025 財年的業績進一步證明了我們的營運彈性和價值創造潛力，並以我們過去五年令人矚目的業績為基礎。其中包括 EBITDA 和 EPS 的複合年增長率分別為 14% 和 22%，毛利率和 EBITDA 利潤率分別擴大 130 和 330 個基點。

I'm honored to be a part of our incredible Applied team and the financial performance we continue to deliver. Our progress in fiscal 2025 ended on an encouraging note with several positive trends developing. Fourth quarter sales and EPS exceeded our expectations.

我很榮幸能夠成為我們出色的應用團隊的一員，並繼續為我們帶來出色的財務表現。我們在 2025 財年取得了令人鼓舞的進展，並出現了幾個正面的趨勢。第四季的銷售額和每股收益超出了我們的預期。

Our team once again executed well against an ongoing muted end market backdrop. Sales exceeded the high end of our fourth quarter guidance by 2.5% and returned to modest positive organic growth.

在持續低迷的終端市場背景下，我們的團隊再次表現出色。銷售額超出我們第四季預期的高端 2.5%，並恢復了適度的正有機成長。

Underlying organic sales trends strengthened across both segments as the quarter progressed, average daily sales increased 4% sequentially, which was ahead of normal seasonal patterns for the first time in 10 quarters. Upside compared to our expectations was primarily driven by stronger-than-expected Engineered Solutions segment sales, which grew organically year over year for the first time in seven quarters.

隨著本季的進展，兩個部門的潛在有機銷售趨勢均有所增強，平均每日銷售額環比增長 4%，這是 10 個季度以來首次超過正常的季節性模式。高於我們預期的主要是工程解決方案部門銷售額強於預期，該部門銷售額七季以來首次實現年比成​​長。

The segment's 2% organic daily sales increase was a notable improvement from mid-single-digit declines in recent quarters, with the underlying drivers encouraging on many fronts. Our ES teams capitalized on recent order strength as well as improving demand and business development efforts across several key growth verticals.

該部門每日有機銷售額增長 2%，較最近幾季的中等個位數下滑有顯著改善，其潛在驅動因素在許多方面都令人鼓舞。我們的 ES 團隊利用最近的訂單實力以及在幾個關鍵成長垂直領域改善的需求和業務發展努力。

This includes double-digit organic growth across our technology vertical and mid-single-digit organic growth across our automation platform during the quarter. Service Center segment trends were also encouraging, including exceeding normal seasonal patterns for the second straight quarter and returning to positive organic growth during the month of June.

這包括本季我們技術垂直領域的兩位數有機成長和我們自動化平台的中等個位數有機成長。服務中心部門的趨勢也令人鼓舞，包括連續第二季超過正常的季節性模式，並在六月恢復正有機成長。

M&A sales contribution was also encouraging with progress continuing to develop at Hydradyne as well as initial contribution from our early May acquisition of IRIS Factory Automation. Taken together, our fourth quarter sales performance highlight solid execution combined with emerging growth tailwinds tied to our industry position and business pipeline.

併購銷售貢獻也令人鼓舞，Hydradyne 持續取得進展，以及我們 5 月初收購 IRIS Factory Automation 的初步貢獻。總的來說，我們第四季的銷售業績凸顯了穩健的執行力以及與我們的產業地位和業務管道相關的新興成長順風。

As it relates to underlying end market demand, trends remained relatively mixed during the quarter, though with some positive signs developing. Year-over-year trends across our top 30 end markets were relatively unchanged from last quarter, with 15 generating positive sales growth compared to 16 last quarter. Declines continued to cross several top markets, including machinery, primary metals, utility and energy, aggregates and chemicals.

就潛在的終端市場需求而言，本季趨勢仍然相對複雜，但也出現了一些正面跡象。我們的前 30 個終端市場的同比趨勢與上一季相比基本沒有變化，其中 15 個市場的銷售額實現正增長，而上一季為 16 個。機械、初級金屬、公用事業和能源、骨材和化學品等幾個主要市場繼續下跌。

Consistent with prior quarters, declines were most pronounced across off-highway mobile, OEM verticals within our fluid power operations. This was offset by solid demand across our technology vertical, which we estimate contributed approximately 100 basis points to our consolidated organic growth rate during the quarter.

與前幾季一致，我們流體動力業務中的非公路移動、OEM 垂直領域的下滑最為明顯。這被我們整個技術垂直領域的強勁需求所抵消，我們估計該需求為本季的綜合有機成長率貢獻了約 100 個基點。

Sales were also positive across pulp and paper, fabricated metals, food and beverage and oil and gas verticals. Further, capital maintenance spending started to slowly pick up during the quarter within our service center network, while project activity across various process flow markets strengthened later in the quarter.

紙漿和造紙、金屬製品、食品和飲料以及石油和天然氣垂直行業的銷售也表現良好。此外，本季我們的服務中心網路內的資本維護支出開始緩慢回升，而各個流程市場的專案活動在本季後期有所加強。

In addition, orders in our Engineered Solutions segment increased by a high single-digit percent year over year during the quarter, adding to the positive inflection we've seen in recent quarters. This includes positive growth in industrial and mobile OEM fluid power orders, an encouraging sign following notable headwinds in this area of our business over the past year.

此外，本季我們工程解決方案部門的訂單年增了高個位數百分比，進一步增強了我們在最近幾個季度看到的積極變化。其中包括工業和移動 OEM 流體動力訂單的正增長，這是繼過去一年我們業務領域遭遇明顯阻力之後的一個令人鼓舞的信號。

During fiscal 2025, reduced sales from industrial and mobile OEM fluid power customers negatively impacted our consolidated organic year-over-year sales growth rate by approximately 100 basis points as well as the Engineered Solutions segment organic growth rate by over 400 basis points. Overall, while end market visibility remains limited and mixed, we believe the underlying backdrop improved modestly from last quarter.

在 2025 財年，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增長率產生了約 100 個基點的負面影響，同時也對工程解決方案部門的有機增長率產生了超過 400 個基點的負面影響。總體而言，儘管終端市場能見度仍然有限​​且好壞參半，但我們認為基本背景較上一季有所改善。

In addition, based on our core indicators, including order momentum, business funnels and what we're hearing from our customers, we believe industrial activity and customer spending behavior are starting to pick up to some degree. It's also important to highlight the positive impact of our own initiatives and ongoing evolution are having.

此外，根據我們的核心指標，包括訂單勢頭、業務管道以及我們從客戶那裡聽到的信息，我們相信工業活動和客戶支出行為開始在一定程度上回升。強調我們自己的舉措和持續發展所產生的正面影響也很重要。

While our overall organic sales trends in fiscal 2025 were muted, average daily sales finished the full year down a modest 2%. This was directionally in line with the midpoint of our initial guidance despite a more challenging end market backdrop that was highly influenced by persistent uncertainty tied to the US election, interest rates and eventually shifts in trade policy.

雖然我們 2025 財年的整體有機銷售趨勢不溫不火，但全年平均日銷售額僅小幅下降了 2%。儘管終端市場背景更具挑戰性，且受到與美國大選、利率以及最終貿易政策轉變相關的持續不確定性的嚴重影響，但這在方向上與我們最初指引的中點一致。

The negative impact to many of our legacy manufacturing end markets was evident as reflected in the ISM hitting one of the longest contractionary stretches as well as notable pressure we experienced in OEM and machine-related verticals. This also followed double-digit organic compounded sales growth in the prior three-year period.

我們許多傳統製造終端市場受到的負面影響是顯而易見的，這體現在 ISM 遭遇了史上最長的收縮期之一，以及我們在 OEM 和機器相關垂直行業遭遇了顯著的壓力。此前三年，該公司的有機複合銷售額也實現了兩位數的成長。

Considering this context, we believe our fiscal 2025 performance showcases the more durable and differentiated growth profile, we continue to shape across Applied. Of note, our Service Center segment benefited from ongoing sales force productivity initiatives, technology investments, and increased cross-selling momentum, which helped balance softer MRO customer spending during the year.

考慮到這一背景，我們相信，我們的 2025 財年業績將展現出更持久、差異化的成長態勢，我們將繼續在應用材料領域塑造這一態勢。值得注意的是，我們的服務中心部門受益於持續的銷售隊伍生產力計劃、技術投資和增強的交叉銷售勢頭，這有助於平衡年內較弱的 MRO 客戶支出。

In addition, growth investments across our flow control and fluid power operations, as well as the ongoing expansion of our automation platform have diversified our end market exposure and supported our Engineered Solutions segment.

此外，我們在流量控制和流體動力業務方面的成長投資以及我們自動化平台的持續擴展使我們的終端市場曝光多樣化，並支持了我們的工程解決方案部門。

In particular, we benefited from encouraging growth tied to data centers, semiconductor manufacturing, new process infrastructure, advanced robotic solutions and calibration services as the year played out. This helped offset acute weakness in our legacy off-highway mobile markets and drove a return to positive segment organic growth during the fourth quarter.

特別是，隨著這一年的開展，我們受益於與資料中心、半導體製造、新製程基礎設施、先進的機器人解決方案和校準服務相關的令人鼓舞的成長。這有助於抵消我們傳統非公路移動市場的嚴重疲軟，並推動第四季分部有機成長恢復正成長。

At the same time, we continue to expand gross margins while maintaining cost discipline in fiscal 2025, which helped drive modest EBITDA and EPS growth for the year. When excluding the impact from acquisitions, we achieved 10% decremental margins on low single-digit organic sales decline.

同時，我們在 2025 財年繼續擴大毛利率，同時維持成本控制，這有助於推動全年 EBITDA 和 EPS 的適度成長。排除收購的影響後，我們的利潤率下降了 10%，而有機銷售額則下降了個位數。

This is inclusive of ongoing growth investment and inflationary pressures throughout the year. During the fourth quarter, gross margins increased sequentially and were in line with our guidance. As previously highlighted, year-over-year gross margin trends were impacted by a difficult prior year comparison, partially reflecting a LIFO layer liquidation benefit last fourth quarter.

這包括全年持續的成長投資和通膨壓力。第四季度，毛利率季增，符合我們的預期。如前所述，同比毛利率趨勢受到上年同期困難的影響，部分反映了去年第四季後進先出層清算收益。

This fourth quarter also included higher-than-expected AR provisioning, which held back EBITDA margins to some degree, but is expected to normalize moving forward. Fiscal 2025 was also a year showcasing our cash generation and capital deployment capacity.

第四季的應收帳款撥備也高於預期，這在一定程度上抑制了 EBITDA 利潤率，但預計未來將恢復正常。2025財年也是展現我們現金創造和資本部署能力的一年。

We generated over $465 million of free cash, up 34% to a new record on both an absolute basis and as a percent of sales. Over the past three years, our business has generated a 40% compounded annual free cash growth which has culminated in meaningful capital deployment, including over $560 million deployed in fiscal 2025.

我們產生了超過 4.65 億美元的自由現金，無論是絕對金額還是銷售額百分比都成長了 34%，創下了新高。在過去三年中，我們的業務實現了 40% 的複合年自由現金成長率，最終實現了有意義的資本部署，其中包括 2025 財年部署的超過 5.6 億美元的資本。

We accelerated capital deployment on M&A closing four transactions in fiscal 2025, including the strategic acquisition of Hydradyne. Sales from acquisitions contributed over 400 basis points of inorganic growth in fiscal 2025, up 100 basis points from the prior year. At the same time, we were more active with share buybacks, repurchasing a total of 656,000 shares for $153 million as well as increasing our quarterly dividend by 24%.

我們加快了併購資本的部署，在 2025 財年完成了四筆交易，包括對 Hydradyne 的策略性收購。收購帶來的銷售額在 2025 財年貢獻了超過 400 個基點的無機成長，比前一年增加了 100 個基點。同時，我們更加積極地進行股票回購，共回購了 656,000 股，價值 1.53 億美元，同時將季度股息提高了 24%。

We also continued to invest in technology platforms, distribution centers and growth capacity. Overall, very compelling numbers that highlight the powerful flywheel effect of our operating model and strategy, including our consistency in generating elite levels of cash and shareholder returns long term.

我們也持續投資技術平台、配送中心和成長能力。整體而言，這些數字非常引人注目，凸顯了我們的營運模式和策略的強大飛輪效應，包括我們長期持續產生高水準的現金和股東回報。

As it relates to the evolving tariff backdrop, we continue to work closely with our suppliers as they manage through the dynamic backdrop and the impact on supply chains. As expected, we received a greater level of price increase notifications from our suppliers during the fourth quarter.

由於涉及不斷變化的關稅背景，我們將繼續與供應商密切合作，幫助他們應對動態背景和對供應鏈的影響。正如預期的那樣，我們在第四季度收到了來自供應商的更多價格上漲通知。

Our teams are proactively and effectively managing through this and in short, we remain highly confident in our ability to execute as the tariff backdrop continues to evolve. As a reminder, we have limited direct exposure to procuring products outside the US.

我們的團隊正在積極有效地管理這個問題，簡而言之，隨著關稅背景的不斷發展，我們對我們的執行能力仍然充滿信心。提醒一下，我們在美國以外採購產品的直接接觸有限。

We also have a strong track record of effectively managing inflation given our technical industry position, while structural mix tailwinds in various self-help gross margin initiatives, to provide strong countermeasures. The overall price impact to our sales was limited in the fourth quarter, but we expect it to slowly increase moving forward. as supplier price increases take effect.

鑑於我們的技術產業地位，我們在有效管理通貨膨脹方面也有著良好的記錄，同時在各種自助毛利率舉措中，結構性組合順風提供了強有力的對策。第四季度，整體價格對我們銷售的影響有限，但隨著供應商價格上漲，我們預期未來價格影響將緩慢增加。

Next, I'd like to take a moment to provide some initial thoughts on our outlook as we enter fiscal 2026. First, we're highly focused on accelerating growth. We remain mindful of ongoing trade and interest rate policy uncertainty, which continues to impact broader demand visibility and could remain a gating factor to growth near term.

接下來，我想花點時間就我們進入 2026 財年的前景提供一些初步想法。首先，我們高度重視加速成長。我們仍然關注持續的貿易和利率政策不確定性，這將繼續影響更廣泛的需求可見性，並可能繼續成為短期成長的限制因素。

That said, when we consider the underlying fundamentals beneath this on both a secular and structural basis, we believe a productive demand environment should develop as policy clarity continues to emerge. Recent US trade agreements with several primary trading partners are a welcome development.

儘管如此，當我們從長期和結構性角度考慮背後的基本面時，我們相信，隨著政策的不斷明確，應該會形成一個富有成效的需求環境。美國最近與幾個主要貿易夥伴達成的貿易協議是一個可喜的進展。

In addition, the recent passage of tax reform legislation, including accelerated depreciation incentives and the potential for a more favorable US interest rate policy could recatalyze US business sentiment and capital investment.

此外，最近通過的稅收改革法案，包括加速折舊激勵措施和更優惠的美國利率政策的可能性，可能會重新激發美國商業情緒和資本投資。

While it remains early, we're encouraged to see positive sales momentum continue into early fiscal 2026 with first quarter organic sales to date, up by an estimated 4% compared to prior year levels. Secular growth tailwinds also remain on firm footing.

雖然現在還為時過早，但我們很高興看到積極的銷售勢頭持續到 2026 財年年初，迄今為止第一季的有機銷售額與去年同期相比預計增長了 4%。長期成長的順風勢頭也依然穩固。

Our related exposure is high given our industry position, supporting US manufacturing and deep technical knowledge of our customers' facilities. As macro and trade policy dynamics stabilize, we believe our customers' capital investment decisions will be active, given heightened considerations around reshoring.

鑑於我們的行業地位、對美國製造業的支持以及對客戶設施的深厚技術知識，我們的相關曝光度很高。隨著宏觀和貿易政策動態的穩定，我們相信，考慮到對回流的考慮程度不斷提高，我們的客戶的資本投資決策將會變得活躍。

Technical service requirements will increase as break-fix MRO activity supports aged manufacturing equipment and as customers expand industrial production infrastructure across North America. Our service center segment is favorably positioned to benefit from these positive tailwinds.

隨著故障修復 MRO 活動對老化製造設備的支援以及客戶在北美擴展工業生產基礎設施，技術服務需求將會增加。我們的服務中心部門處於有利地位，可以從這些積極的順風中受益。

This could be particularly evident across heavy manufacturing, machinery, mining, metals, and aggregates given their break-fix intensive nature as well as potential incremental demand from US trade and pro-growth policies. In addition, we expect additional benefits from technology investments, optimizing sales force productivity and new business sourcing.

鑑於重型製造、機械、採礦、金屬和集料行業的維修密集特性以及美國貿易和促進成長政策帶來的潛在增量需求，這種趨勢在重型製造、機械、採礦、金屬和集料行業尤為明顯。此外，我們預期技術投資、優化銷售團隊生產力和新業務採購將帶來更多收益。

We're also focused on increasing our growth with local customers, through greater sales of ancillary products such as seals, material handling, fluid conveyance, chemicals, lubricants and safety as well as providing comprehensive service and repair solutions for their production assets.

我們也致力於透過增加密封件、物料處理、流體輸送、化學品、潤滑劑和安全等輔助產品的銷售以及為他們的生產資產提供全面的服務和維修解決方案來促進與當地客戶的成長。

In addition, we're constructive on the growth opportunities developing across our Engineered Solutions segment considering ongoing positive order momentum and investments made in recent years. Underlying demand fundamentals are notable across key growth verticals including technology and discrete automation, which combined represent more than 25% of segment sales today.

此外，考慮到持續的積極訂單動能和近年來的投資，我們對工程解決方案部門的成長機會持建設性態度。技術和離散自動化等關鍵成長垂直領域的潛在需求基本面顯著，這兩個領域目前合計佔該領域銷售額的 25% 以上。

The ongoing build-out of data center and semiconductor infrastructure is expanding the addressable market for our fluid conveyance, flow control and robotic solutions. We have a growing business pipeline tied to the emerging transition to electric-powered fluid power systems, where we expect to play a significant role given our leading engineering capabilities and supplier relationships.

資料中心和半導體基礎設施的持續建設正在擴大我們的流體輸送、流量控制和機器人解決方案的潛在市場。我們擁有與電動流體動力系統新興轉型相關的不斷增長的業務管道，憑藉我們領先的工程能力和供應商關係，我們期望在其中發揮重要作用。

Combined with the required flow control infrastructure investments across the US, our Engineered Solutions segment is in a strong position to drive above-market organic sales growth moving forward. We also expect acquisitions to remain an important element of our growth potential, and we look to build on the M&A momentum we achieved in fiscal 2025.

結合美國各地所需的流量控制基礎設施投資，我們的工程解決方案部門將處於有利地位，推動未來高於市場的有機銷售成長。我們也預期收購仍將是我們成長潛力的重要組成部分，我們希望在 2025 財年實現併購動能的基礎上再接再厲。

Our pipeline is developing nicely, and we expect to be active in fiscal 2026 as we continue our strategic expansion. The value of our scale, broad technical solution portfolio, engineering capabilities, strategic supplier relationships and balance sheet capacity has never been stronger in our marketplace.

我們的管道發展良好，我們預計在 2026 財年將繼續我們的策略擴張，並保持活躍。我們的規模、廣泛的技術解決方案組合、工程能力、策略供應商關係和資產負債表能力的價值在市場上從未如此強大。

Lastly, we're in a strong position to further expand margins as these growth tailwinds play out. Of note, structural mixed tailwinds should strengthen as sales recover across our Engineered Solutions segment, and local customer accounts.

最後，隨著這些成長順風的發揮，我們有能力進一步擴大利潤率。值得注意的是，隨著工程解決方案部門和本地客戶帳戶的銷售復甦，結構性混合順風應該會增強。

We also have ongoing opportunities tied to pricing analytics, optimizing sales processes, utilizing AI and expanding shared services while synergy benefits from our Hydradyne acquisition should ramp moving forward. Combined with leveraging recent growth investments and our scaling automation platform, we remain constructive on the EBITDA margin potential developing beyond our current intermediate target of 13%.

我們也擁有與定價分析、優化銷售流程、利用人工智慧和擴展共享服務相關的持續機會，而收購 Hydradyne 帶來的協同效益也將持續向前發展。結合最近的成長投資和我們的擴展自動化平台，我們仍然對 EBITDA 利潤率超越我們目前 13% 的中期目標的潛力充滿信心。

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

現在，我將把電話轉給戴夫，以了解有關我們的結果和展望的更多詳細資訊。

Thanks, Neil. Just as a reminder before I begin, as in prior quarters, we have posted a supplemental presentation to our investor site for your additional reference. We hope that you will find this useful as we recap our most recent quarter performance and initial fiscal 2026 guidance.

謝謝，尼爾。在我開始之前提醒一下，與前幾季一樣，我們已經在投資者網站上發布了補充演示文稿，供您進一步參考。我們希望您在回顧我們最近一個季度的業績和 2026 財年初步預期時會發現這篇文章很有用。

Turning now to details of our financial performance in the quarter. Consolidated sales increased 5.5% over the prior year quarter. Acquisitions contributed 6.5 points of growth, which was partially offset by a negative 40 basis point impact from foreign currency translation and a negative 80 basis point impact from the difference in selling days.

現在來談談我們本季財務業績的細節。綜合銷售額較去年同期成長 5.5%。收購貢獻了 6.5 個基點的成長，但被外幣折算帶來的 40 個基點的負面影響和銷售天數差異帶來的 80 個基點的負面影響部分抵消。

Netting these factors, sales increased 20 basis points year over year on an organic daily basis. compared to a 3.1% decline in the third quarter. As it relates to pricing, we estimate the contribution of product pricing on year-over-year sales growth was over 100 basis points for the quarter and slightly above the contribution from last quarter.

扣除這些因素後，銷售額每日有機成長 20 個基點，而第三季則下降了 3.1%。就定價而言，我們估計本季產品定價對年比銷售成長的貢獻超過 100 個基點，略高於上一季的貢獻。

Moving to consolidated gross margin performance as highlighted on page 7 of the deck, gross margin of 30.6% was down 9 basis points compared to the prior year level of 30.7%, but was directionally in line with our guidance and up 15 basis points sequentially.

轉向綜合毛利率表現，如本報告第 7 頁所強調的，毛利率為 30.6%，較上年同期的 30.7% 下降 9 個基點，但方向與我們的指導一致，環比上升 15 個基點。

During the quarter, we recognized LIFO expense of $2.9 million, which was up slightly from the third quarter. In the prior year fourth quarter, we recognized LIFO expense of only $0.3 million which, as you may recall, was favorably impacted by a later liquidation benefit. On a net basis, this resulted in an unfavorable 21 basis point year-over-year impact on gross margins during the quarter which was directionally in line with our guidance.

本季度，我們確認了 290 萬美元的後進先出費用，較第三季度略有上升。在去年第四季度，我們確認的後進先出費用僅為 30 萬美元，您可能還記得，這受到了後來清算收益的正面影響。從淨額來看，這導致本季毛利率年減 21 個基點，這與我們的預期方向一致。

Excluding the adverse impact of LIFO, gross margins increased over the prior year, reflecting positive mix contribution from our recent Hydradyne acquisition as well as ongoing channel execution and benefits from our margin initiatives. This was partially offset by mix headwinds from lower sales across local accounts as well as tougher comps against prior year fourth quarter mix tied to higher-margin solutions sales.

排除後進先出法的不利影響，毛利率較上年有所增加，反映了我們最近收購 Hydradyne 帶來的積極組合貢獻以及持續的通路執行和利潤計劃帶來的好處。這在一定程度上被本地帳戶銷售下降帶來的組合阻力以及與去年第四季度相比與利潤率更高的解決方案銷售相關的組合更為嚴峻的競爭所抵消。

Price cost trends were relatively neutral in the quarter. As it relates to operating costs, selling, distribution and administrative expenses increased 10.5% compared to prior year levels. On an organic constant currency basis, SD&A expense was up a modest 0.3% year over year.

本季價格成本趨勢相對中性。就營運成本而言，銷售、分銷和管理費用比去年同期增加了 10.5%。以有機固定匯率計算，SD&A 費用較去年小幅上漲 0.3%。

SD&A expense included an unfavorable $4 million or 2% year-over-year impact from higher AR provisioning. We view the AR provisioning impact as more timing related and expected to normalize moving forward.

SD&A 費用包括因應收帳款撥備增加而產生的 400 萬美元或 2% 的年比不利影響。我們認為 AR 供應影響更與時間有關，預計未來會正常化。

Our provisioning requirements can fluctuate quarter to quarter based on various factors. In addition, the fourth quarter of last year included an AR provision benefit tied to recoveries achieved, reflecting our ongoing working capital initiatives and collection efforts.

我們的撥備要求可能會因各種因素而每季波動。此外，去年第四季還包括與已實現的回收掛鉤的應收帳款撥備收益，反映了我們正在進行的營運資本計畫和回收工作。

As further context, our DSO trends remain favorable and relatively unchanged from last year and our AR provision as a percentage of sales for fiscal 2025 was at the midpoint of our recent historical range. SD&A expense this quarter also includes an unfavorable 80 basis point impact from higher deferred compensation costs compared to the prior year.

進一步而言，我們的 DSO 趨勢仍然保持良好，與去年相比基本沒有變化，而我們的 2025 財年應收帳款撥備佔銷售額的百分比處於近期歷史範圍的中點。本季的 SD&A 費用還包括與前一年相比遞延薪資成本增加帶來的 80 個基點的不利影響。

As a reminder, changes in deferred compensation costs and SD&A are primarily driven by market values of investments tied to our nonqualified deferred compensation plan. There's a corresponding offset to these fluctuations in other income and expense, which we report below net interest and income.

提醒一下，遞延薪酬成本和 SD&A 的變化主要受與我們的非合格遞延薪酬計劃相關的投資的市場價值所驅動。其他收入和支出的這些波動有相應的抵消，我們在淨利息和收入下報告。

When normalizing for the AR provision impact and higher deferred compensation costs in the quarter, we estimate SD&A expense on an organic constant currency basis will have declined by over 2% year over year, reflecting benefits from ongoing efficiency gains and solid cost control.

當本季的應收帳款撥備影響和遞延薪資成本增加標準化後，我們估計，以有機固定匯率計算的 SD&A 費用將年減 2% 以上，這反映了持續的效率提升和穩健的成本控制帶來的好處。

Overall, encouraging sales growth trends and stable underlying gross margin performance were masked by the unfavorable prior year LIFO comparison and higher AR provisioning in the quarter. This resulted in EBITDA margin of 12.5%, declining 73 basis points to the prior year level, up 13.2%.

總體而言，令人鼓舞的銷售成長趨勢和穩定的基礎毛利率表現被本季不利的上年後進先出法比較和更高的應收帳款撥備所掩蓋。這導致 EBITDA 利潤率為 12.5%，較上年同期的 13.2% 下降 73 個基點。

This was modestly below our fourth quarter guidance of $12.6 million to 12.8%, primarily reflecting the higher than anticipated AR provision in the quarter, which was 20 to 30 basis points unfavorable to our guidance.

這略低於我們第四季度的 1,260 萬美元至 12.8% 的指導，主要反映了本季度的應收帳款撥備高於預期，這對我們的指導不利 20 至 30 個基點。

Normalizing the AR provision and excluding the impact of LIFO, EBITDA margins would have been relatively unchanged year over year. In addition, reported EBITDA of $153 million was at the high end of our guidance range reflecting stronger sales trends in the quarter.

如果將應收帳款撥備標準化並排除後進先出法的影響，EBITDA 利潤率則是年比將基本保持不變。此外，報告的 EBITDA 為 1.53 億美元，處於我們指導範圍的高端，反映了本季更強勁的銷售趨勢。

Reported earnings per share of $2.80 was up 5.9% from prior year EPS of $2.64 and exceeded the high end of our guidance by nearly 5%. On a year-over-year basis, EPS benefited from a lower effective tax rate as well as a reduced share count tied to our buyback activity. This was partially offset by higher interest and other expense on a net basis.

報告每股收益為 2.80 美元，較上年每股收益 2.64 美元增長 5.9%，超過我們預期的高端近 5%。與去年同期相比，每股盈餘受益於較低的有效稅率以及與回購活動相關的股票數量減少。但淨利息和其他費用的增加部分抵消了這一增長。

Turning now to performance by segment. As highlighted on slides 8 and 9 of the presentation, Sales in our Service Center segment decreased 0.4% year over year on an organic daily basis. This excludes 30 basis points of contribution from acquisitions, a negative 80 basis point impact from the difference in selling days and a negative 60 basis point impact from foreign currency translation.

現在來談談各部分的表現。正如簡報的第 8 張和第 9 張投影片所強調的那樣，我們服務中心部門的銷售額年均下降 0.4%。這不包括收購帶來的 30 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 60 個基點的負影響。

The organic sales decline was primarily driven by muted MRO spending fully in the quarter, particularly across our international operations. That said, the trend improved from last quarter's organic decline of 1.6%.

有機銷售額的下降主要是由於本季度 MRO 支出低迷，尤其是在我們的國際業務中。儘管如此，這一趨勢較上一季 1.6% 的有機下降有所改善。

In addition, on a sequential basis, segment sales per day increased 1.5% from the third quarter which was above normal seasonal patterns for the second straight quarter. Sales growth remained positive across our national account base, partially reflecting benefits from our internal initiatives, including sales force investments and cross-selling actions.

此外，以環比計算，該部門日均銷售額較第三季成長 1.5%，連續第二季高於正常季節性模式。我們全國客戶群的銷售成長仍然保持正成長，部分反映了我們內部措施帶來的好處，包括銷售團隊投資和交叉銷售行動。

Segment trends were also supported by growth across Fluid Power MRO sales in our consumable vending and VMI offerings. Segment EBITDA decreased 8.3% over the prior year, while segment EBITDA margin of 13.6% was down 100 basis points.

我們的消耗品自動販賣機和 VMI 產品中的流體動力 MRO 銷售額的成長也支持了細分趨勢。分部 EBITDA 較前一年下降 8.3%，分部 EBITDA 利潤率為 13.6%，下降 100 個基點。

The year-over-year decline primarily reflects the unfavorable AR provisioning as previously discussed, which had an approximate 300 basis point negative impact to segment EBITDA growth, and a 50 basis point negative impact to segment EBITDA margin in the quarter.

同比下降主要反映了先前討論過的不利的應收帳款撥備，這對本季度分部 EBITDA 增長產生了約 300 個基點的負面影響，對分部 EBITDA 利潤率產生了 50 個基點的負面影響。

In addition, LIFO expense was approximately 100 basis points unfavorable to segment EBITDA growth in the quarter or 15 basis points to EBITDA margin, primarily reflecting the prior year layer liquidation benefit as previously discussed.

此外，後進先出法費用對本季度分部 EBITDA 成長不利約 100 個基點，對 EBITDA 利潤率不利約 15 個基點，主要反映了先前討論過的上一年層級清算收益。

Lastly, as highlighted earlier, higher deferred compensation costs, which are reported in our service center segment had an unfavorable 20 basis point year-over-year impact to segment EBITDA margin. On a full year basis, our Service Center segment delivered solid margin and cost control performance with operating expense per day down 1% on an organic basis and EBITDA margins up modestly against the low single-digit sales decline.

最後，如前所述，服務中心部門報告的遞延薪資成本增加對部門 EBITDA 利潤率產生了 20 個基點的不利影響。從全年來看，我們的服務中心部門實現了穩健的利潤和成本控制業績，每日營運費用有機下降 1%，EBITDA 利潤率在低個位數銷售額下降的情況下小幅上升。

Within our Engineered Solutions segment, sales increased 20.7% over the prior year quarter with acquisitions contributing a positive 19.7 points of this increase. On an organic daily basis, accounting for the difference in selling days segment sales increased 1.8% over the prior year.

在我們的工程解決方案部門，銷售額比去年同期成長了 20.7%，其中收購貢獻了 19.7 個百分點的成長。按日有機計算，考慮到銷售天數的差異，該部門銷售額比上年增長了 1.8%。

The prior year -- excuse me, year-over-year increase was primarily driven by solid growth across our Fluid Power pneumatic and conveyance solutions supporting the technology vertical as well as growth in our flow control business.

上一年—對不起，年成長主要得益於我們支援技術垂直領域的流體動力氣動和輸送解決方案的穩健成長以及流量控制業務的成長。

In addition, organic sales in our automation operations increased by mid-single-digit percent over the prior year quarter while partially aided by easier prior year comparisons, the segment's underlying sales performance improved noticeably with two-year stack trends improving across all primary business units, reflecting strong execution on recent order strength and firmer demand.

此外，我們的自動化業務的有機銷售額比去年同期增長了中等個位數百分比，同時部分得益於與去年同期相比更容易實現的增長，該部門的基本銷售業績顯著改善，所有主要業務部門的兩年堆棧趨勢都有所改善，反映了近期訂單強度和需求更強勁的強勁執行力。

The benefit from improved automation growth performance was partially offset by ongoing weakness across mobile fluid power OEM markets though the year-over-year decline eased from last quarter.

儘管同比降幅較上一季有所緩解，但自動化成長績效改善的好處被移動流體動力 OEM 市場的持續疲軟部分抵消。

Segment EBITDA increased 13.5% over the prior year, reflecting impact from our Hydradyne acquisition as well as solid cost management. Segment EBITDA margin of 14.8% was down roughly 90 basis points from prior year levels, so influenced by several dynamics.

分部 EBITDA 較前一年成長 13.5%，反映了我們收購 Hydradyne 以及穩健的成本管理所帶來的影響。該部門 EBITDA 利潤率為 14.8%，較上年同期下降約 90 個基點，因此受到多種動態的影響。

First, the prior year fourth quarter segment EBITDA margin of nearly 16% was a high and benefited from unusually strong mix tailwinds from higher Engineered Solutions sales. As a reminder, Hydradyne currently flows through at a lower EBITDA margin relative to the segment's average. This represented a 60 basis point year-over-year headwind in the quarter while LIFO was unfavorable by 30 basis points over the prior year.

首先，去年第四季部門 EBITDA 利潤率接近 16%，處於較高水平，並受益於工程解決方案銷售額成長帶來的異常強勁的混合順風。需要提醒的是，Hydradyne 目前的 EBITDA 利潤率低於該部門的平均值。這意味著本季年減了 60 個基點，而後進先出法比前一年下降了 30 個基點。

I will note that the Hydradyne EBITDA margin mix impact improved from last quarter, with further positive direction expected moving forward as we continue to work through our integration and synergy plans. Of note, Hydradyne's EBITDA contribution in the quarter was up over 30% sequentially from the third quarter compared to a 12% sequential increase in sales contribution.

我要指出的是，Hydradyne EBITDA 利潤率組合影響較上一季有所改善，隨著我們繼續推動整合和協同計劃，預計未來將進一步朝著積極的方向發展。值得注意的是，Hydradyne 本季的 EBITDA 貢獻較第三季環比成長 30% 以上，而銷售額貢獻則較上季成長 12%。

On a full year basis, our Engineered Solutions segment delivered solid underlying margin and cost control performance in fiscal 2025. Excluding the impact from acquisitions, segment operating expense per day was down 5% and segment EBITDA margins increased approximately 40 basis points against a 4% organic decline in average daily sales.

從全年來看，我們的工程解決方案部門在 2025 財年實現了穩健的基礎利潤和成本控制績效。排除收購的影響，分部每日營運費用下降 5%，分部 EBITDA 利潤率增加約 40 個基點，而平均每日銷售額有機下降 4%。

Moving to our cash flow performance. Cash generated from operating activities during the fourth quarter was $147 million, while free cash flow totaled $138.2 million or 128% of net income. For the full year, we generated free cash of $465.2 million or 118% of net income.

轉向我們的現金流表現。第四季經營活動產生的現金為 1.47 億美元，自由現金流總計 1.382 億美元，佔淨收入的 128%。全年我們產生的自由現金為 4.652 億美元，佔淨收入的 118%。

This was up 34%, reflecting more modest working capital investment compared to the prior year as well as ongoing progress with internal initiatives, and/or enhanced margin profile. From a balance sheet perspective, we ended June with approximately $388 million of cash on hand and net leverage at 0.3 times EBITDA which is above the prior year level of 0.2 times and down slightly from last quarter.

這一數字成長了 34%，反映出與前一年相比營運資本投資有所減少，以及內部措施不斷取得進展和/或利潤率有所提高。從資產負債表的角度來看，截至 6 月底，我們手頭上的現金約為 3.88 億美元，淨槓桿率為 EBITDA 的 0.3 倍，高於去年同期的 0.2 倍，但比上一季略有下降。

In summary, our balance sheet is in a solid position to support our capital deployment initiatives moving forward.

總而言之，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畫。

Turning now to our outlook, which is detailed on page 12 of the presentation, we are establishing full year fiscal 2026 guidance, including EPS in the range of $10 to $10.75 based on assumptions for total sales increasing 4% to 7%, including 1% to 4% growth on an organic basis, as well as EBITDA margins up 12.2% to 12.5%. Our outlook takes into consideration sales trends through mid-August as well as ongoing economic uncertainty.

現在談談我們的展望，該展望詳見演示文稿的第 12 頁，我們正在製定 2026 財年全年指引，包括每股收益在 10 美元至 10.75 美元之間，基於總銷售額增長 4% 至 7% 的假設，包括有機增長 1% 至 4%，以及 EBITDA 利潤率增長 12.2% 至 12.2%。我們的展望考慮了截至八月中旬的銷售趨勢以及持續的經濟不確定性。

At the midpoint of guidance, we assume ongoing tariff and interest rate uncertainty continues to impact end market demand through the first half of the year, followed by a more favorable underlying end market demand trends in the second half of the year. Guidance also assumes 150 to 200 basis points of year-over-year sales contribution from pricing as well as ongoing inflationary headwinds and growth investments.

在指導的中點，我們假設持續的關稅和利率不確定性將繼續影響今年上半年的終端市場需求，隨後下半年將出現更有利的潛在終端市場需求趨勢。該指引還假設定價以及持續的通膨逆風和成長投資將為銷售額帶來 150 至 200 個基點的年比貢獻。

We expect inorganic growth from completed acquisitions to contribute approximately 300 basis points to sales growth in fiscal 2026, including approximately 600 basis points in the first half, primarily reflecting two quarters of contribution from Hydradyne which closed at the end of December 2025. Guidance does not assume contribution from future acquisitions or share buybacks.

我們預計，已完成收購帶來的無機成長將為 2026 財年的銷售成長貢獻約 300 個基點，其中上半年約 600 個基點，主要反映了 2025 年 12 月底完成收購的 Hydradyne 的兩個季度的貢獻。該指南並未假設未來收購或股票回購的貢獻。

In addition, based on quarter-to-date sales trends through mid-August and prior year comparisons for the remainder of the quarter as well as ongoing trade policy uncertainty, we currently project fiscal first quarter organic daily sales to increase by a low single-digit percent over the prior year quarter. Our guidance also assumes fiscal first quarter EBITDA margins between 11.9% to 12.1%.

此外，根據截至 8 月中旬的季度銷售趨勢和本季剩餘時間的去年同期比較以及持續的貿易政策不確定性，我們目前預計第一財季有機日銷售額將比去年同期增長低個位數百分比。我們的指引也假設第一財季的 EBITDA 利潤率在 11.9% 至 12.1% 之間。

From a margin and cost perspective, guidance assumes ongoing inflationary pressures and growth investments as well as $14 million to $18 million of LIFO expense. We expect stronger relative year-over-year EBITDA margin trends in the second half of the year, reflecting greater expense leveraging, Hydradyne synergy progress and easier comparisons.

從利潤和成本角度來看，指導假設持續的通膨壓力和成長投資以及 1,400 萬至 1,800 萬美元的後進先出費用。我們預計下半年 EBITDA 利潤率同比趨勢將更加強勁，這反映出更大的費用槓桿、Hydradyne 協同效應的進展以及更容易的比較。

Lastly, we expect free cash generation to remain strong in fiscal 2026 but to potentially trend lower year over year, reflecting greater working capital investment tied to potentially stronger demand and growth opportunities. In addition, we expect ongoing organic investments supporting our strategy and technology investments with capital expenditures targeted in the $30 million to $35 million range for fiscal 2026.

最後，我們預計 2026 財年的自由現金產生能力將保持強勁，但可能呈現逐年下降的趨勢，這反映出與潛在更強勁的需求和成長機會相關的營運資本投資增加。此外，我們預計持續的有機投資將支持我們的策略和技術投資，2026 財年的資本支出目標在 3,000 萬至 3,500 萬美元之間。

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, fiscal 2025 was another meaningful year for Applied. We executed well in a slower demand environment while positioning the company for long-term success through several acquisitions and internal growth investments. The year culminated in significant capital deployment, enhancing our long-term earnings power while continuing to drive strong shareholder returns.

總而言之，2025 財年對應用材料公司來說又是個意義重大的一年。我們在需求放緩的環境中表現良好，同時透過多次收購和內部成長投資為公司的長期成功奠定了基礎。這一年我們進行了大量的資本部署，增強了我們的長期獲利能力，同時繼續推動強勁的股東回報。

Our market cap today exceeds $10 billion and we've delivered total shareholder returns that have more than doubled primary market benchmarks over the past three and five years. A strong testament to the power of the Applied team and our differentiated strategy.

我們今天的市值超過 100 億美元，在過去三到五年裡，我們為股東提供的總回報是主要市場基準的兩倍多。這有力地證明了應用材料團隊的實力和我們的差異化策略。

Moving into fiscal 2026. We're encouraged by recent sales momentum, which could accelerate given the underpinnings of various secular tailwinds and deferred customer spending the past 18 months. That said, we're taking a prudent approach to our initial outlook pending greater clarity on trade policy, interest rates and broader macro conditions.

進入 2026 財年。我們對近期的銷售動能感到鼓舞，考慮到過去 18 個月各種長期順風因素和客戶延期支出的支撐，銷售動能可能會加速。儘管如此，在貿易政策、利率和更廣泛的宏觀條件更加明朗之前，我們對初步展望採取謹慎態度。

Our track record shows we can manage through various macro and trade scenarios as they develop and have company-specific growth and margin tailwinds that could strengthen into fiscal 2026. In addition, we expect to remain active in M&A, share buybacks and dividend growth.

我們的業績記錄表明，我們可以應對各種宏觀和貿易情景的發展，並擁有公司特定的成長和利潤率順風，這些順風可能會在 2026 財年增強。此外，我們預計將繼續積極開展併購、股票回購和股利成長。

And lastly, our technical industry position, manufacturing domain expertise and aligned strategy provide a compelling long-term growth and margin expansion opportunity as various secular and structural tailwinds continue to develop across the US industrial economy.

最後，隨著美國工業經濟中各種長期和結構性順風的不斷發展，我們的技術產業地位、製造領域的專業知識和一致的策略提供了引人注目的長期成長和利潤擴張機會。

We believe this backdrop, combined with our compounding cash generation algorithm and balance sheet capacity support double-digit compounded earnings and dividend growth long term. We look forward to building on our performance in fiscal 2026 and beyond as our evolution continues to unfold.

我們相信，這種背景加上我們的複合現金產生演算法和資產負債表容量將支持長期兩位數的複合收益和股息成長。隨著我們不斷發展，我們期待在 2026 財年及以後取得更佳業績。

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

這樣，我們就可以解答您的問題了。

(Operator Instructions) Christopher Glynn, Oppenheimer.

（操作員指示）克里斯托弗·格林，奧本海默。

I had a couple. Just first on Hydradyne, you talked about 12% sequential sales growth and 30% EBITDA. I don't know if that reflected integration costs that you incurred in the third quarter that diminished in the fourth? Or just wanted to dimensionalize that a little bit.

我有幾個。首先談到 Hydradyne，您談到了連續 12% 的銷售額成長和 30% 的 EBITDA。我不知道這是否反映了您在第三季產生的整合成本在第四季度有所減少？或者只是想稍微將其維度化一點。

I think it's a combination. Relatively similar integration costs, if I think about Q3 versus Q4, Chris. So what it really points to is the the leverage that we saw on the SD&A falling through to EBITDA.

我認為這是一個組合。克里斯，如果我考慮一下第三季度和第四季度，那麼整合成本相對相似。因此，它實際上表明，我們看到 SD&A 的槓桿率下降到了 EBITDA。

The stronger margin performance is obviously a contributing factor there as well as very pleased with the progress we've made to date in terms of quicker realization of synergy benefits. So we're actually ahead of where we anticipated at this point in terms of synergy realization and continue to work that angle.

更強勁的利潤率表現顯然是一個促成因素，同時我們對迄今為止在更快實現協同效益方面取得的進展感到非常滿意。因此，就協同效應的實現而言，我們實際上已經超越了目前的預期，並將繼續從這個角度努力。

So really all those factors combined, I'd say the integration costs quarter over quarter were -- really didn't play heavily into that improvement.

所以實際上所有這些因素加在一起，我想說，季度環比的整合成本實際上並沒有對這種改善產生很大的影響。

I would say, as we thought about synergies going in, we said roughly 80% from cost and margin and as well as 20% sales opportunity.

我想說，當我們考慮協同效應時，我們認為大約 80% 來自成本和利潤，20% 來自銷售機會。

And to Dave's point, we're pleased on both, including the interaction with the teams and the cross-selling opportunities, especially in service and repair opportunities throughout that Southeast geography as well as things that we can do in key growth verticals around data centers and the technology segment. So pleased about the performance and our start and look forward to continuing that momentum.

正如戴夫所說，我們對這兩點都感到滿意，包括與團隊的互動和交叉銷售機會，特別是在東南地區的服務和維修機會，以及我們可以在數據中心和技術領域的關鍵增長垂直領域做的事情。對我們的表現和開局感到非常高興，並期待繼續保持這種勢頭。

Great. And then just on the market for break-fix MRO and idea of any pent-up coming through. It sounds like you might be starting to see some of that with the national accounts, but not so much with the locals. So another thing just asking to dimensionalize a bit.

偉大的。然後就在市場上尋找故障修復 MRO 和任何被壓抑的想法。聽起來你可能開始在國家帳戶中看到一些這樣的情況，但在地方帳戶中卻看不到那麼多。所以另一件事只是要求稍微維度化一下。

Yes. So as we look at breakdown the sales, we were pleased in the last month on local accounts being positive as well as SA in the month of July. So I think that's a good indicator that things could be firming and build from here.

是的。因此，當我們查看銷售明細時，我們很高興看到上個月本地帳戶的銷售情況良好，七月份南非的銷售情況也很好。所以我認為這是一個很好的指標，表明事情可能會從現在開始變得穩固和發展。

Okay. Great. And then just the midpoint of the year doesn't have any acceleration versus the first quarter at all, but you do have easy comps. I know there's a little shift when you get to the fourth quarter. And then the ADS halfway through the quarter, really outpacing the outlook.

好的。偉大的。然後，與第一季相比，今年中期沒有任何加速，但確實很容易比較。我知道進入第四季時情況會發生一些變化。然後，在本季中期，ADS 的表現確實超出了預期。

You referenced comps. I don't know if there's a major hockey stick in the September comp a little bit. But is there just a couple of layers of prophylactic caution in there with potential month-to-month volatility around behaviors. Is that how we should think about the guide?

您引用了 comps。我不知道九月份的比賽是否會出現重大的曲棍球棒事件。但是，由於行為可能逐月波動，因此是否只有幾層預防性警告？我們該這樣看待指南嗎？

Yes. There is a ramp in the prior September. And I just think overall, Chris, it's taken our view of, hey, the right prudent approach given some of the macro, and we believe some of those firm up as we move through these summer months. But that's what comes into our approach to have a -- be prudent in the guide and the outlook and the specific detail we provide around the first quarter.

是的。前九月有一個斜坡。克里斯，我認為總的來說，考慮到一些宏觀因素，我們認為這是正確的審慎做法，我們相信，隨著夏季的到來，其中一些因素會變得更加堅定。但這就是我們的做法——在第一季提供的指南、展望和具體細節方面要謹慎。

David Manthey, Baird.

大衛‧曼西，貝爾德。

My first question is related to pricing. I think you said 100 basis points in the quarter and an expectation that, that would slowly increase ahead. I'm hoping -- if you didn't, I didn't hear it, but could you scale that more narrowly for us and talk about what benefit from price is baked into the first quarter guidance and the overall 2026?

我的第一個問題與定價有關。我認為您說的是本季的 100 個基點，並且預計未來這一數字會緩慢增加。我希望——如果您沒有，那我就沒聽到，但您能否為我們更詳細地介紹一下，並談談第一季度指引和 2026 年整體價格帶來哪些好處？

Yes. I would say, Dave, for the first quarter, I would say, to be similar, and we talked about a little over 100 basis points in the quarter. So in the first quarter, similar.

是的。我想說，戴夫，對於第一季來說，情況類似，我們討論的是本季略高於 100 個基點。因此，第一季的情況也類似。

But with the expectations that it ramps as we move through the year in the perhaps 150 to 200 basis points as we look at all of fiscal '26. And if the demand environment is strong and there's additional supplier inflation and increases of that, perhaps it will be higher than that number for '26.

但隨著我們回顧整個 26 財年，我們預計這一數字將上升 150 到 200 個基點。如果需求環境強勁，且供應商通膨進一步增加，那麼這個數字可能會高於 26 年的水準。

Okay. Got it. And second, ES trends looking really good. You mentioned technology and automation. First question, and then I've got one after that.

好的。知道了。其次，ES 趨勢看起來確實很好。您提到了技術和自動化。第一個問題，然後我還有一個問題。

But could you give us examples of when you say technology as a vertical, can you talk about what you mean by that as an area you're seeing growth today?

但是，您能否給我們舉一些例子，當您說技術是一個垂直領域時，您能否談談您今天看到的成長領域的含義？

Yes. So that would include the data center. It would include semiconductor manufacturing in the side. So I think those would be the most significant components of that tech vertical. And we're broadening our participation.

是的。因此這將包括數據中心。其中包括半導體製造。所以我認為這些將是該技術垂直領域最重要的組成部分。我們正在擴大我們的參與範圍。

And so we've historically had a strong presence with Fluid Power. But today, we're doing more with fluid conveyance and also our automation business participates in that vertical well.

因此，我們在流體動力領域歷來佔有重要地位。但今天，我們在流體輸送方面做得更多，而且我們的自動化業務也參與了垂直井。

Okay. And then on automation, which you said grew mid-single digits. There, too, I guess you touched on that as saying that data center and technology getting more applications in those verticals, but as it relates to ES overall, are you seeing a benefit?

好的。然後是自動化，您說它增長了中等個位數。我想您也提到過，資料中心和技術在這些垂直領域中獲得了更多的應用，但就 ES 整體而言，您是否看到了好處？

Are people talking about this bonus depreciation is helping mainly on the flow control side, which seems like a higher ticket maybe. I mean any color you can give us on that would be helpful in terms of -- you mentioned some of the growth tailwinds, and I'm just wondering if that's one of them that you're hearing about or not.

人們是否談論過這種獎金折舊主要在流量控制方面有所幫助，這似乎可能是一種更高的票價。我的意思是，您能給我們的任何細節都會很有幫助——您提到了一些增長的順風因素，我只是想知道這是您聽說過的其中之一。

And so as we think about where the businesses participate even in automation doing well in some other segments, be it food and beverage, life science and pharma, I would say, yes.

因此，當我們考慮企業參與自動化並在其他一些領域表現良好時，無論是食品和飲料、生命科學還是製藥，我會說，是的。

We have a full pipeline of projects with customers. They have great return profiles. We've talked about in prior quarters, perhaps the approval process of those had elongated while still strong returns. And our view of customers are in a very good cash position.

我們與客戶擁有完整的專案管道。他們擁有出色的回報概況。我們在前幾季討論過，也許這些項目的審批過程已經延長，但回報仍然強勁。我們認為客戶的現金狀況非常好。

I think the opportunity for accelerated depreciation on those will be a further stimulus of those projects being acted and converted. So as we look out over '26, that could be a positive development for our pipeline.

我認為這些加速貶值的機會將進一步刺激這些計畫的實施和轉換。因此，當我們展望 26 年時，這對我們的管道來說可能是一個積極的發展。

Ken Newman, KeyBanc Capital Markets.

肯‧紐曼 (Ken Newman)，KeyBanc 資本市場。

So maybe the first one, Neil, I just wanted to go back to the low end of the full year organic sales growth guide. I think it implies that volumes at the low end are assuming down 50 basis points year-over-year organic on what's a pretty easy comp throughout the entire year.

所以也許是第一個，尼爾，我只是想回到全年有機銷售成長指南的低端。我認為這意味著低端交易量預計將年減 50 個基點，而全年的同比變化相當容易。

I guess the question is you're assuming 1% to 2% of price contribution outside of maybe the timing of comps in the first quarter that you talked about, is there anything else structural that's assumed within that low end of the guide or anything that we should be aware of?

我想問題是，除了您談到的第一季的同店銷售額時間之外，您假設的價格貢獻率為 1% 到 2%，那麼在指南的低端是否還有其他結構性假設，或者我們應該注意什麼？

I think, again, Ken, as we think about the full range of the guide, including the low end, we just want to be prudent in the approach given still some of the uncertainty that would be out.

肯，我想，當我們考慮指南的全部範圍，包括低端時，考慮到仍然存在一些不確定性，我們只是想謹慎行事。

If we think about more the midpoint, that's going to assume some headwinds continue on the macro and the tariff environment and some of that uncertainty in the first half and then with those headwinds abating somewhat into the second half. And so that's when more of the approach and the consideration going in.

如果我們多考慮中點，那就假設宏觀和關稅環境將繼續面臨一些阻力，並且上半年會出現一些不確定性，而這些阻力在下半年會有所減弱。因此，這時就需要採取更多的方法並進行更多的考慮。

And then for my follow-up, maybe just help us fine-tune the comments about normalizing LIFO and AR provisioning through the year by segment. Obviously, ES EBIT margins took a bigger hit sequentially year over year. I think part of that was the AR provisioning and Hydradyne mix. How should we think about segment margins implied at the midpoint of the 1Q guide and how that trends through the rest of the year?

然後，對於我的後續行動，也許只是幫助我們微調關於逐年按部分規範後進先出法和應收帳款撥備的評論。顯然，ES EBIT 利潤率比去年同期受到的打擊更大。我認為部分原因是 AR 配置和 Hydradyne 混合。我們該如何看待第一季指南中點隱含的細分利潤率，以及該利潤率在今年剩餘時間內的趨勢如何？

Yes. Just a little bit of clarification in terms of our Q4. The majority of that AR provisioning was more skewed to the US service centers as opposed to the engineered solutions. Again, that's a formulaic process based on several variables in terms of credit ratings, age balances.

是的。就我們的第四季而言，我只想稍微澄清一下。與工程解決方案相比，大部分 AR 供應更偏向美國服務中心。再次強調，這是一個基於信用評級、年齡平衡等幾個變數的公式化過程。

I don't see anything problematic there. We had a couple of customers that were just delayed on some payments. The -- if you look back, I look and benchmark our -- as I said, our DSO has maintained stability. Our provisioning as a percent of sales for the year was at really the midpoint of right where we've been in the last five-year average.

我沒有發現有什麼問題。我們有幾個客戶的部分付款被延遲了。如果你回顧一下，我會觀察並對我們的基準進行評估——正如我所說，我們的 DSO 一直保持穩定。我們今年的撥備佔銷售額的百分比實際上處於過去五年平均值的中間點。

So we've made some good progress in terms of the initiatives yielding some improvements in terms of past dues and just this timing issue. Unfortunately, a lot of that unfortunately, I should say, maybe the -- a lot of that came back in like the first two weeks or so of July.

因此，我們在措施方面取得了一些良好進展，在逾期款項和時間問題方面取得了一些改善。不幸的是，我應該說，很多這樣的情況可能——很多情況是在 7 月的前兩週左右再次出現的。

So we'd see that normalize. In terms of the EBITDA margins, we talked about in the service centers, they are also impacted this past quarter by -- that's where the deferred comp mark-to-market adjustment hits and then gets offset in other income and expense. So that also distorts things.

所以我們會看到它正常化。就我們在服務中心討論的 EBITDA 利潤率而言，它們在上個季度也受到了影響——這就是遞延公司按市價調整的影響，然後在其他收入和支出中被抵消。所以這也扭曲了事實。

I would expect the margins to normalize as we talked about as we think about '26, the LIFO will read through proportionately.

我希望利潤率能夠正常化，正如我們所談到的，當我們考慮 26 時，後進先出法將按比例讀取。

And then we'll continue to see the mix up benefit from Hydradyne and improvement in the drag that it is right now on the Engineered Solutions segment EBITDA margins as we continue to realize the synergy benefits, which, as we discussed, are coming quicker than we had anticipated. So like the progress there.

然後，我們將繼續看到 Hydradyne 的混合效益及其對工程解決方案部門 EBITDA 利潤率的拖累有所改善，因為我們將繼續實現協同效益，正如我們所討論的，協同效益的實現速度比我們預期的要快。所以喜歡那裡的進展。

Yes. Ken, I'd just add, if we think about the quarter-over-quarter comparison, I mean if we reflect back last fourth quarter in Engineered Solutions, I mean, it was really strong, 16% record high.

是的。肯，我想補充一點，如果我們考慮季度環比比較，我的意思是，如果我們回顧去年第四季度工程解決方案的業績，它確實非常強勁，創下了 16% 的歷史新高。

We benefited from strong mix of solutions going across. So I think that demonstrates the strong potential to Dave's point on Hydradyne. We're pleased with the progress but he touched on or talked about the 60 basis point headwind in EBITDA margins there.

我們受益於多種解決方案的強大組合。所以我認為這證明了 Dave 關於 Hydradyne 的觀點具有強大的潛力。我們對進展感到滿意，但他提到或談論了 EBITDA 利潤率面臨的 60 個基點的阻力。

So if we think about the potential around Engineered Solutions on the full year, we were very cost accountable and OpEx and expense down 5% into that side, but with EBITDA margins up on lower organic daily sales of 4% in that side. So as we see an inflection coming in growth and that opportunity, we feel like, hey, we're well positioned.

因此，如果我們考慮全年工程解決方案的潛力，我們會發現我們對成本非常負責，並且營運支出和費用下降了 5%，但 EBITDA 利潤率卻因每日有機銷售額下降 4% 而上升。因此，當我們看到成長和機會的轉變時，我們覺得，嘿，我們已經處於有利地位。

And of course, that Q4 noise just really distorted some the underlying stronger performance between the AR provisioning, which I see getting back, obviously, as we move into '26, the deferred comp noise. And like I said, the -- if you look back at last year, the quarter performance on gross margins across the business Q4 was the only one that even started in the 30s, right?

當然，第四季度的噪音確實扭曲了 AR 配置之間一些潛在的更強勁的表現，顯然，隨著我們進入 26 年，遞延補償噪音會回升。就像我說的，如果回顧去年，整個業務的毛利率只有第四季達到 30 多，對嗎？

Everything else was -- started with less than a three. So at 30.7% comp in the prior year quarter, that was a very, very challenging comp. And even with the LIFO that we rolled through this quarter versus the favorability last year, within 9 basis points of that, I think, was a pretty good story.

其餘一切都是從不到三開始的。因此，與去年同期的 30.7% 相比，這是一個非常非常具有挑戰性的比較。即使我們本季採用的後進先出法與去年的有利條件相比，在 9 個基點以內，我認為，這是一個相當不錯的情況。

Sabrina Abrams, Bank of America.

美國銀行的薩布麗娜‧艾布拉姆斯 (Sabrina Abrams)。

You guys have given some helpful color on Hydradyne but maybe I guess what I'm just going to ask, could you disclose, I guess, Hydradyne contribution in dollars to EBITDA in the quarter? And maybe any color from either an EBITDA or EPS standpoint, what's in fiscal '26 guide?

你們對 Hydradyne 進行了有益的介紹，但我想問的是，您能否透露一下 Hydradyne 本季對 EBITDA 的美元貢獻？也許從 EBITDA 或 EPS 的角度來看任何顏色，26 財政年度指南中的內容是什麼？

In Q4, Hydradyne contributed just over $7 million of EBITDA, just to help frame it up. If we all-in factor and some lost interest income from financing that deal with cash on hand, about $0.03 contribution.

在第四季度，Hydradyne 貢獻了略高於 700 萬美元的 EBITDA，只是為了幫助實現這一目標。如果我們把全要素和一些處理現金的融資損失的利息收入考慮進去，貢獻約為 0.03 美元。

We had said at the time of announcing the deal, we would expect to be $0.15 accretive to EPS in the first 12 months. So really right on track there when you think about still some integration costs at play. We have not framed up necessarily that impact on '26.

我們在宣布交易時曾表示，我們預計前 12 個月每股收益將增加 0.15 美元。因此，當您考慮到仍存在一些整合成本時，這確實是正確的。我們還沒有完全認識到這對 26 年的影響。

But here again, like the traction in terms of running ahead on expectations on the cost synergies as well as the the traction that we are seeing on cross-selling. So I would expect it to certainly meet those first 12 months expectations as frame it up as at least a guide for you, if not potentially beat that initial expectation we set for the first 12 months.

但在這裡，就像我們在成本協同效應方面的預期以及交叉銷售方面的牽引力一樣。因此，我希望它肯定能夠滿足前 12 個月的預期，至少可以作為您的指導，甚至有可能超過我們為前 12 個月設定的初始預期。

That's super helpful. Second point, I guess, second question for me. Maybe if you could give a little color. I know there was some comment on LIFO in '26. But maybe if you could just give some color on what is like the amount of LIFO expense embedded in guide in either dollars or bps.

這非常有幫助。我想，第二點，對我來說是第二個問題。也許你可以給它一點顏色。我知道 26 年對後進先出法有一些評論。但也許您可以稍微解釋一下指南中嵌入的 LIFO 費用金額（以美元或基點為單位）。

And anything else to call out as we -- other than like, I guess, like organic incrementals as we look at the fiscal '26 margin guide?

除了我們查看 26 財年利潤指南中的有機增量之外，還有什麼需要注意的嗎？

Sure. We peg LIFO at $14 million to $18 million in the guidance. So that would work across the guidance range. Obviously, that's a function of tied to obviously the inflationary increases that we see that impact indices as well as inventory levels. So it goes part and parcel with some of the work around the -- what's happening in terms of pricing and inflationary impact.

當然。我們在指導中將後進先出法設定為 1400 萬美元至 1800 萬美元。因此這將在整個指導範圍內發揮作用。顯然，這是與我們看到的影響指數和庫存水準的通貨膨脹成長相關的函數。因此，它與定價和通膨影響方面的一些工作密切相關。

And then, Sabrina, I'd say on incrementals, at the midpoint, which would be 2.5% growth, we talked about low teens incrementals that includes M&A mix coming in lower in the side, some ongoing growth investments that we'll make into the business.

然後，薩布麗娜，我想說的是增量，在中間點，也就是 2.5% 的增長，我們討論了低十幾歲的增量，其中包括較低的併購組合，以及我們將對業務進行的一些持續增長投資。

And to Dave's point, that range of LIFO that we laid out. More at the higher end, we'd expect mid-teen incrementals of EBITDA margin on that. So when we think about the outlook, again, we just want to be prudent in the approach.

正如戴夫所說，我們列出了後進先出法的範圍。更高端一點，我們預計 EBITDA 利潤率將有 15% 左右的增量。因此，當我們考慮前景時，我們只是想採取謹慎的態度。

But if we consider the business incrementals ex-M&A and ex-LIFO at the midpoint of our guidance, that's a high-teen incremental, which I think talks to our views, our outlook as we think about year ahead and ongoing business capabilities.

但是，如果我們考慮指導中點的除併購和後進先出之外的業務增量，那就是高十幾歲的增量，我認為這反映了我們的觀點、我們對未來一年的展望以及持續的業務能力。

Chris Dankert, Loop Capital Markets.

Chris Dankert，Loop 資本市場。

I guess just to hold on ES for a second here, fourth quarter, as you mentioned in the remarks, up well ahead of typical seasonality in the fourth quarter. Just wanted to ask, do you feel like there was anything pulled forward or anything onetime in nature that came in, in the fourth quarter? Or is that a fairly clean growth figure you think?

我想在這裡先停留一會兒，正如您在評論中提到的那樣，第四季度的 ES 遠遠超出了第四季度的典型季節性。只是想問一下，您是否覺得在第四季度有什麼東西被拉向前了，或者有什麼自然現像一次性發生了？或者您認為這是一個相當乾淨的成長數字？

Chris, I would say, hey, no big pull forward, did a nice job recognizing some of that order conversion that we had in doing it. I think is normal as we move through to close the fourth quarter. Sequentially, backlog would be down a little bit. Book-to-bill slightly below one into the side, but this year is higher than the prior year in that.

克里斯，我想說，嘿，沒有太大的進步，很好地認識到了我們在做這件事時所進行的一些訂單轉換。我認為隨著我們即將結束第四季度，這是正常的。相應地，積壓數量會減少一點。訂單出貨比略低於去年同期，但今年的訂單出貨比高於去年同期。

And then as we look forward at the start of the year, we're encouraged by the order rates around engineered solutions. So we feel like we've got a very good pipeline to work on and execute across fluid power, flow control and our automation businesses.

當我們展望新的一年時，工程解決方案的訂單率令我們感到鼓舞。因此，我們覺得我們已經擁有了一條非常好的管道，可以在流體動力、流量控制和自動化業務方面開展和執行。

Got it. Super, super helpful there. And I guess just as a follow-up, you mentioned some softness in the international markets. Is that principally the Mexico market? Is it the domestic headwinds we've heard about there?

知道了。非常非常有幫助。我想作為後續問題，您提到了國際市場的一些疲軟。那主要是墨西哥市場嗎？這是我們聽說的國內逆風嗎？

Or is it something else going on? And I guess, does that impact what you're seeing at the Grupo Kopar? Any color there would be great.

還是有其他事情發生？我想，這會對您在 Grupo Kopar 看到的情況產生影響嗎？任何顏色都很棒。

Yes, Chris, I'd say more related maybe in Canada. And I think there's just a settling out of some tariff impact and what it means for flows of products but also in-country Canadian business industry of that. We feel like business is doing a very nice job. We're well diversified into that segment. But I'd say a little more in Canada than the other geographies.

是的，克里斯，我想說可能與加拿大更相關。我認為，這只是一些關稅影響的解決，以及它對產品流通和加拿大國內商業產業的影響。我們感覺業務開展得非常好。我們在該領域的業務已實現多元化。但我想說的是，加拿大的情況比其他地區要多一些。

Those headwinds did less as we moved across the quarter, which was encouraging.

隨著我們進入本季度，這些不利因素的影響逐漸減弱，這是令人鼓舞的。

Ken Newman, KeyBanc Capital Markets.

肯‧紐曼 (Ken Newman)，KeyBanc 資本市場。

I just had one quick follow-up, more higher level. Neil and Dave, just curious, what's the thought on potentially maybe adding back some of this intangible amort to the earnings power. It seems like obviously, Hydradyne was pretty solid for EBITDA and despite some of the negative mix in this part of the cycle.

我只是進行了一次快速的跟進，等級更高。尼爾和戴夫，只是好奇，你們有沒有想過將部分無形攤銷重新添加到獲利能力中。顯然，儘管在這一週期中存在一些負面因素，但 Hydradyne 的 EBITDA 表現相當穩健。

But I wonder how much you are maybe getting negatively comped just because some of your peers do add that back and your thoughts on potentially normalizing that to make the earnings power apples-to-apples.

但我想知道，僅僅因為您的一些同行確實加回了這一點，您可能會得到多少負面補償，以及您對潛在地將其正常化以使盈利能力具有可比性的想法。

I'd say I think we're pretty transparent in terms of the way we break it out. And I'd prefer to maintain the approach of being consistent there and just continuing to break it out, so you've got that visibility. I mean, to your point, a headline read would maybe skew things.

我想說，就我們的分解方式而言，我認為我們是相當透明的。我更願意保持一致的方法並不斷突破，這樣你就會有這種可見性。我的意思是，就你的觀點而言，閱讀標題可能會扭曲事實。

But our focus is on continuing to improve it and make it not a talking point, right? And I think we're hard at work at that with the synergy realization we've seen and driving that cross-selling.

但我們的重點是繼續改進它並使其不再成為談論的焦點，對嗎？我認為我們正在努力實現我們所看到的協同效應並推動交叉銷售。

At this time, I'm showing we have no further questions. I'll now turn the call back over to Mr. Schrimsher for any closing remarks.

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

I just want to thank everyone for being with us today. We look forward to talking with you throughout the quarter. Thank you.

我只想感謝大家今天與我們同在。我們期待整個季度與您交談。謝謝。

Thank you, ladies and gentlemen. This 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。