Applied Industrial Technologies Inc (AIT) 2026 Q1 法說會逐字稿

Welcome to the fiscal 2026 First Quarter Earnings Call for Applied Industrial Technologies. My name is Eric, and I'll be your conference operator for today's call. (Operator Instructions) Please note that this conference call is being recorded.

歡迎參加應用工業技術公司 2026 財年第一季財報電話會議。我叫艾瑞克，我將擔任今天電話會議的接線生。（操作員說明）請注意，本次電話會議正在錄音。

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

現在我將把電話交給投資者關係和財務總監瑞安·切斯拉克。瑞恩，你可以開始了。

Okay. Thanks, Eric, and good morning to everyone on the call. This morning, we issued our earnings release and supplemental investor deck detailing our first quarter results. Both of these documents are available in the Investor Relations section of applied.com.

好的。謝謝艾瑞克，也祝福所有參加電話會議的朋友們早安。今天上午，我們發布了獲利報告和補充投資者資料，詳細介紹了我們第一季的業績。這兩份文件都可以在 applied.com 的投資者關係部分找到。

Before we begin, just a reminder, we'll discuss the 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.

在開始之前，提醒一下，我們將討論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，包括我們在提交給美國證券交易委員會的文件中詳細列出的風險和不確定性。實際結果可能與前瞻性陳述中所表達的結果有重大差異。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，本次電話會議將使用非公認會計準則財務指標，這些指標須符合相關文件中提及的條件。

Our speakers today include Neil Schrimsher, Applied's President and Chief Executive Officer; and Dave Wells, our Chief Financial Officer. With that, I'll turn it over to Neil.

今天的演講嘉賓包括 Applied 公司總裁兼執行長 Neil Schrimsher 和財務長 Dave Wells。接下來，我將把麥克風交給尼爾。

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 outlook. I'll then close with some final thoughts.

謝謝你，瑞恩，大家早安。感謝您的參與。今天我將首先介紹我們的業績概況和亮點，包括行業現狀和未來預期等方面的最新資訊。Dave 隨後將提供本季業績的更多財務細節，並對我們的前景展望進行更詳細的闡述。最後，我還有一些總結性的想法。

So overall, we had a nice start to fiscal 2026. We delivered strong earnings performance in the first quarter with EBITDA and EPS growing 13% and 11%, respectively, over the prior year, which exceeded our expectations. Sales growth was largely in line with our outlook and strengthened compared to last quarter against a still muted and choppy end market backdrop. We converted stronger sales growth into even greater EBITDA growth through solid gross margin execution, cost control and our internal initiatives.

總的來說，我們2026財年開局不錯。第一季度，我們的獲利表現強勁，EBITDA 和 EPS 分別比去年同期成長 13% 和 11%，超出了我們的預期。銷售成長基本上符合我們的預期，並且在終端市場依然低迷波動的情況下，與上一季相比有所增強。我們透過穩健的毛利率執行、成本控制和內部舉措，將更強勁的銷售成長轉化為更大的 EBITDA 成長。

As a result, EBITDA margins expanded over the prior year and exceeded the high end of our first quarter guidance. In particular, our service center team delivered a strong quarter on both the top and bottom line, and I'm encouraged by the positive momentum building from our internal initiatives and industry position.

因此，EBITDA利潤率較上年有所增長，並超過了我們第一季預期的上限。尤其值得一提的是，我們的服務中心團隊在本季度實現了強勁的營收和利潤成長，我對我們內部舉措和行業地位所帶來的積極勢頭感到鼓舞。

Sales across our Engineered Solutions segment were relatively flat versus the prior year, but orders remain positive. Hydradyne contribution continues to increase and the segment has solid growth potential moving forward. Overall, our execution and progress in the first quarter provides positive momentum to achieve our fiscal 2026 objectives and accelerate our value creation potential moving forward.

與去年相比，我們工程解決方案部門的銷售額基本上持平，但訂單量仍保持成長動能。Hydradyne 的貢獻持續成長，該業務部門未來具有穩健的成長潛力。總體而言，我們在第一季的執行和進展為我們實現 2026 財年目標提供了積極的動力，並加速了我們未來創造價值的潛力。

Digging more into the sales trends, broader end market demand remained mixed during the quarter as lingering trade policy uncertainty continued to impact customers' purchasing decisions. That said, we would describe the underlying demand backdrop as stable to slightly positive. And overall, moving in the right direction when looking at it over the past several quarters.

深入分析銷售趨勢，本季整體終端市場需求仍喜憂參半，持續的貿易政策不確定性持續影響消費者的購買決策。也就是說，我們認為潛在的需求環境穩定或略有向好。總體而言，從過去幾季的情況來看，公司正朝著正確的方向發展。

Year-over-year trends across our top 30 end markets improved slightly with 16 generating positive sales growth compared to 15 last quarter. We saw stronger trends across several of our primary end markets with strongest growth in machinery, food and beverage, refining, pulp and paper, metals, oil and gas and aggregates during the quarter. This was offset by declines in lumber and wood, transportation, chemicals, mining and utilities and energy.

與上一季相比，我們前 30 個終端市場的年比趨勢略有改善，其中 16 個市場實現了正銷售成長，而上一季為 15 個。本季度，我們在幾個主要終端市場都看到了更強勁的成長趨勢，其中機械、食品和飲料、煉油、紙漿和造紙、金屬、石油和天然氣以及骨料行業的成長最為強勁。木材、運輸、化學、採礦、公用事業和能源產業的下滑抵消了這一成長。

Year-over-year organic sales trends were stronger in July and August relative to September, though partially reflecting more difficult comparisons later in the quarter. Combined with greater pricing contribution, reported organic sales growth of 3% was the strongest in two years with a two-year stack trend improving sequentially for the third consecutive quarter.

與 9 月相比，7 月和 8 月的有機銷售年比趨勢更為強勁，但這部分反映了該季度後期比較難度較大。加上更高的定價貢獻，報告顯示有機銷售成長3%，是兩年來最強勁的成長，並且連續第三個季度實現了兩年來的持續成長。

Organic sales growth in the quarter was led by our Service Center segment with reported growth of 4.4%, accelerating nicely from the low single-digit declines we experienced in fiscal 2025. Growth was strongest across our national account base, while local account sales were up modestly year-over-year which is an improvement from recent quarters.

本季有機銷售成長主要由我們的服務中心部門帶動，成長了 4.4%，較 2025 財年個位數的下滑幅度有了顯著改善。全國客戶群的成長最為強勁，而本地客戶的銷售額年增幅度不大，這比最近幾季有所改善。

Strengthening service center sales growth is an encouraging sign for both the segment as well as our broader operations, as the shorter cycle nature of our service center operations is typically a good indicator of underlying industrial activity and potential demand for capital-related spending moving forward. We believe modest firming in manufacturing production and capacity utilization, combined with pent-up demand from deferred maintenance activity is driving more technical MRO and break-fix activity at the margin.

服務中心銷售成長的增強對於該業務板塊以及我們更廣泛的運營而言都是一個令人鼓舞的跡象，因為我們服務中心運營的周期較短，通常是潛在工業活動和未來資本相關支出潛在需求的良好指標。我們認為，製造業生產和產能利用率的溫和走強，加上因維護活動延期而積壓的需求，正在推動更多技術性MRO和故障維修活動。

We're seeing stronger activity across some of our heavy US manufacturing verticals that are break-fix intensive. This includes primary metals market, where related service center sales were up by a high single-digit percent year-over-year in the quarter.

我們看到，在美國一些以維修為主的重型製造業垂直領域，業務活動更加活躍。這其中包括初級金屬市場，該季度相關服務中心的銷售額同比增長了接近兩位數的百分比。

Our service center team also continues to benefit from ongoing sales initiatives technology investments and greater cross-selling opportunities, which is supplementing their performance beyond underlying market demand. It's also important to highlight the strong execution of our service center team in the quarter where they levered 4% sales growth to 10% EBITDA growth, while particularly benefiting from more favorable AR provisioning over the prior year, the underlying earnings leverage was solid and highlights the team's operating discipline, ongoing cost control and effective management of broader inflationary headwinds.

我們的服務中心團隊也持續受惠於銷售計畫、技術投資和更多交叉銷售機會，這在滿足基本市場需求的基礎上，進一步提升了他們的績效。值得一提的是，我們的服務中心團隊在本季表現出色，他們利用 4% 的銷售成長實現了 10% 的 EBITDA 成長。尤其得益於比前一年更有利的應收帳款撥備，基本獲利槓桿作用強勁，凸顯了團隊的營運紀律、持續的成本控制以及對更廣泛的通膨不利因素的有效管理。

Within our Engineered Solutions segment, organic sales in the first quarter finished slightly lower compared to the prior year but remain on a solid path to stronger growth. Of note, segment orders sustained positive momentum, increasing nearly 5% organically over the prior year during the quarter, with a two-year stack trend accelerating sequentially. Segment orders have now been positive year-over-year for three straight quarters with book-to-bill above 1 during the quarter.

在我們的工程解決方案部門，第一季的有機銷售額與去年同期相比略有下降，但仍保持著強勁增長的良好勢頭。值得注意的是，細分市場訂單保持了積極的成長勢頭，本季比去年同期有機成長近 5%，兩年的成長趨勢也逐季加速。業務部門訂單已連續三個季度年增，且本季訂單出貨比高於 1。

Order growth strengthened across our industrial and mobile OEM fluid power operations during the quarter. This exceeded our expectations and leaves us incrementally constructive on related fluid power sales trends moving forward.

本季度，我們工業和行動OEM流體動力業務的訂單成長勢頭強勁。這超出了我們的預期，也讓我們對未來相關的流體動力銷售趨勢持更樂觀的態度。

Our fluid power team for leading engineering capabilities and customer reach are driving new business opportunities tied to mobile electrification, next-generation fluid power systems and fluid conveyance. We also believe a lower interest rate environment and tax incentives could be particularly positive for our fluid power customer base, which is primarily comprised of small to midsized domestic OEMs.

我們擁有領先的工程能力和客戶覆蓋範圍的流體動力團隊正在推動與移動電氣化、下一代流體動力系統和流體輸送相關的新業務機會。我們還認為，較低的利率環境和稅收優惠對我們的流體動力客戶群來說可能特別有利，該客戶群主要由國內中小型 OEM 組成。

In addition, new business development and customer indications signal a potentially active backdrop across our technology vertical and discrete automation operations entering the second half of fiscal 2026. This includes an expanding position supporting the data center market with our fluid power and flow control solutions tied to thermal management applications and our automation teams providing robotic solutions supporting material handling applications.

此外，新業務發展和客戶回饋表明，進入 2026 財年下半年，我們的技術垂直領域和離散自動化業務可能會迎來活躍時期。這包括不斷擴大我們在資料中心市場的地位，我們的流體動力和流量控制解決方案與熱管理應用相關，以及我們的自動化團隊提供支援物料搬運應用的機器人解決方案。

Our enhanced technical footprint in the Southeast US region, following our Hydradyne acquisition, has further strengthened our data center position and related order momentum. Demand signals across our semiconductor customer base also remain encouraging and indicate a potential greater ramp in related orders and shipments during the second half of fiscal 2026, as the wafer fab equipment cycle gains momentum.

在收購 Hydradyne 後，我們在美國東南部地區的技術佈局得到加強，這進一步鞏固了我們在資料中心領域的地位和相關的訂單勢頭。我們半導體客戶群的需求訊號依然令人鼓舞，並顯示隨著晶圓製造設備週期的加速發展，2026 財年下半年相關訂單和出貨量可能會進一步增加。

I would also highlight recent investments we've made in engineering, systems and production capacity over the past several years that provide significant support to fully leverage these demand tailwinds moving forward. As a reminder, the technology and discrete automation verticals combined represent more than 25% and of our Engineered Solutions segment sales and could be an increasing contributor to the segment's growth moving forward based on our initiatives, growing order book and broader secular tailwinds.

我還想重點介紹一下我們近年來在工程、系統和生產能力方面進行的投資，這些投資為我們充分利用這些需求順風提供了重要的支持。需要提醒的是，技術和離散自動化垂直行業合計占我們工程解決方案部門銷售額的 25% 以上，並且根據我們的各項舉措、不斷增長的訂單量和更廣泛的長期利好因素，它們未來可能會成為該部門增長的越來越重要的貢獻者。

In addition, our flow control team is focused on capturing growth developing within life sciences, pharmaceutical and power generation markets within the US. With established product portfolios and leading technical capabilities around calibration services, instrumentation, steam and process heating and filtration we are favorably positioned to win in these markets.

此外，我們的流量控制團隊專注於掌握美國生命科學、製藥和發電市場的發展機會。憑藉成熟的產品組合和在校準服務、儀器儀表、蒸汽和製程加熱及過濾方面的領先技術能力，我們在這些市場中處於有利地位，有望贏得勝利。

On a side note, our flow control backlog ended the quarter at its highest first quarter level in over three years, with orders positive year-over-year. Combined with relatively easy comparisons, we remain optimistic on the setup of our Engineered Solutions segment entering the second half of fiscal 2026 as recent order momentum converts and underlying end markets continue to firm.

另外值得一提的是，我們的流體控制積壓訂單在本季末達到了三年多來最高的第一季水平，訂單量較去年同期成長。結合相對容易的比較，我們對工程解決方案部門在 2026 財年下半年的發展前景仍然保持樂觀，因為近期的訂單勢頭正在轉變，而潛在的終端市場也在持續走強。

At the same time, we remain constructive on our ability to lever stronger sales and drive greater earnings growth and EBITDA margin expansion. Our first quarter performance is a good reflection on this. Of note, we achieved 17% incremental margins on EBITDA, inclusive of ongoing inflationary pressures, including LIFO and unfavorable M&A mix.

同時，我們仍然對利用更強勁的銷售來推動更大的獲利成長和 EBITDA 利潤率擴張的能力保持樂觀。我們第一季的業績很好地反映了這一點。值得注意的是，在持續的通膨壓力（包括後進先出法和不利的併購組合）下，我們實現了 EBITDA 17% 的增量利潤率。

We believe our underlying business model, combined with ongoing operational initiatives and structural mix tailwinds provide notable earnings growth levers to achieve our mid- to high-teen incremental annual margin target and continue to expand EBITDA margins in a positive sales growth backdrop. In addition, sales growth and EBITDA margin should benefit from ongoing progress developing across Hydradyne.

我們相信，我們基本的商業模式，加上持續的營運舉措和結構性組合利好因素，將為實現我們15%到10%的年度增量利潤率目標提供顯著的盈利增長槓桿，並在積極的銷售增長背景下繼續擴大EBITDA利潤率。此外，Hydradyne 的持續發展進步將有利於銷售成長和 EBITDA 利潤率。

As we approach our one-year anniversary of the acquisition, we are very encouraged by the performance the broader team is delivering and the potential we see ahead. Hydradyne earnings contribution continues to improve, with EBITDA up over 20% sequentially in the first quarter and EBITDA margins improving nicely from the prior six-month trend. We are making strong progress with sales synergies and our teams collaborate and leverage innovative fluid power solutions. This includes connecting Hydradyne strong repair and field service support across our legacy MRO customer base while enhancing their value proposition by providing access to our systems engineering team and complementary product lines.

在我們即將迎來收購一周年之際，我們對整個團隊的表現以及我們看到的未來​​潛力感到非常鼓舞。Hydradyne 的獲利貢獻持續改善，第一季 EBITDA 較上季成長超過 20%，EBITDA 利潤率也比前六個月的趨勢有了顯著改善。我們在銷售協同效應方面取得了顯著進展，我們的團隊通力合作，充分利用創新的流體動力解決方案。這包括將 Hydradyne 強大的維修和現場服務支援與我們傳統的 MRO 客戶群連接起來，同時透過提供我們系統工程團隊和互補產品線的存取權來增強他們的價值主張。

We're also tracking well to our operational synergy streams, including solid progress on harmonizing systems processes and operational efficiencies. Combined with the growing backlog and firming demand across their core end markets, we believe Hydradyne could be nicely additive to our organic sales growth and EBITDA margin trend as we anniversary the transaction into the second half of fiscal 2026.

我們在營運協同方面也進展順利，包括在協調系統流程和提高營運效率方面取得了堅實進展。結合不斷增長的積壓訂單和核心終端市場需求的穩步增長，我們相信，隨著交易週年紀念日臨近，進入 2026 財年下半年，Hydradyne 可以很好地促進我們的有機銷售增長和 EBITDA 利潤率趨勢。

Lastly, we remain on track to have another active year of capital deployment to further supplement our growth potential and shareholder returns. M&A remains a top capital allocation priority for fiscal 2026. Our pipeline is active with varying sized targets across both segments. This includes several midsized targets at various stages of due diligence that could enhance our technical differentiation and value-added service capabilities. In addition, we expect to remain active with share repurchases for the remainder of fiscal 2026 as we balance the cadence of potential acquisitions, our balance sheet capacity and the value we see across applied from our strategy and long-term earnings potential.

最後，我們仍有望在新的一年積極部署資本，以進一步增強我們的成長潛力並提高股東回報。併購仍是2026財年資本配置的首要任務。我們的專案儲備充足，目標客戶規模各異，涵蓋兩個細分市場。這其中包括幾家處於不同盡職調查階段的中型目標公司，這些公司可以增強我們的技術差異化和增值服務能力。此外，我們預計在 2026 財年剩餘時間內將繼續積極回購股票，以平衡潛在收購的節奏、我們的資產負債表能力以及我們從策略和長期獲利潛力中看到的價值。

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

接下來，我將把發言權交給戴夫，讓他詳細介紹我們的結果和展望。

Thanks, Neil. Just as a reminder before I begin, as in prior quarters, we have posted a quarterly supplemental investor presentation to our investor site for your additional reference as we recap our most recent quarter performance.

謝謝你，尼爾。在開始之前，我想提醒大家，與前幾季一樣，我們已在投資者網站上發布了季度補充投資者演示文稿，供您在回顧最近一個季度的業績時參考。

Turning now to details of our financial performance in the quarter. Consolidated sales increased 9.2% over the prior year quarter. Acquisitions contributed 6.3 points of growth which was partially offset by a negative 10 basis point impact from foreign currency translation. The number of selling days in the quarter was consistent year-over-year. Netting these factors, sales increased 3% on an organic basis.

接下來，我們將詳細介紹本季的財務表現。合併銷售額比上年同期成長9.2%。收購貢獻了 6.3 個百分點的成長，但被外幣折算帶來的 10 個基點的負面影響部分抵消。本季銷售天數與去年同期持平。綜合以上因素，銷售額自然成長了 3%。

As it relates to pricing, we estimate the contribution of product pricing on year-over-year sales growth was approximately 200 basis points for the quarter. This is up from approximately 100 basis points in the fourth quarter and primarily reflects the effective pass-through of incremental announced supplier price increases in recent periods as previously discussed.

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約為 200 個基點。這比第四季度的約 100 個基點有所上升，主要反映了先前討論過的，最近一段時間供應商宣布的增量價格上漲的有效傳導。

Moving to consolidated gross margin performance as highlighted on page 7 of the deck, gross margin of 30.1% was up 55 basis points compared to the prior year level of 29.6%. During the quarter, we recognized LIFO expense of $2.6 million which was up slightly from the prior year first quarter amount of $2 million. On a net basis, this resulted in an unfavorable 5 basis point year-over-year impact on gross margins during the quarter.

如簡報第 7 頁所述，合併毛利率表現為 30.1%，比去年同期的 29.6% 成長了 55 個基點。本季度，我們確認了 260 萬美元的後進先出法費用，比去年同期的 200 萬美元略有增加。淨而言，這導致本季毛利率年減了 5 個基點。

The year-over-year improvement in gross margins primarily reflects positive mix contribution from our Hydradyne acquisition, solid channel execution and benefits from our margin initiatives as well as more muted gross margin performance in the prior year first quarter. This was partially offset by mix headwinds from growth in strategic accounts and lower flow control sales. Price cost trends were relatively neutral in the quarter.

毛利率年比改善主要反映了我們收購 Hydradyne 帶來的積極產品組合貢獻、穩健的通路執行以及我們利潤率提升計劃帶來的收益，以及去年同期毛利率表現較為疲軟。策略客戶成長和流量控制產品銷售下降帶來的不利因素部分抵消了這一影響。本季價格成本趨勢相對穩定。

As it relates to operating costs, selling, distribution and administrative expenses increased 9.7% compared to prior year levels. SG&A expense was 19.4% of sales during the quarter. Excluding depreciation and amortization expense, SG&A was 18% of sales during the quarter and down 10 basis points from the prior year. On an organic constant currency basis, SG&A expense was up a modest 0.7% year-over-year compared to the 3% increase in organic sales.

就營運成本而言，銷售、分銷和管理費用比去年同期成長了 9.7%。本季銷售、管理及行政費用佔銷售額的 19.4%。不計折舊攤銷費用，本季銷售、一般及行政費用佔銷售額的 18%，較上年同期下降 10 個基點。以固定匯率計算，銷售、一般及行政費用較去年同期僅小幅成長 0.7%，而有機銷售額則成長了 3%。

During the quarter, ongoing inflationary headwinds and growth investments were balanced by solid cost control and internal productivity initiatives as well as the benefit of more favorable AR provisioning resulting from our working capital initiatives and collections performance. Overall, stronger organic sales growth, coupled with M&A contribution, favorable gross margin performance and solid cost control resulted in reported EBITDA increasing 13.4% year-over-year, including over 6% on an organic basis.

本季度，持續的通膨不利因素和成長投資與穩健的成本控制和內部生產力提升措施相平衡，同時，由於我們的營運資本措施和收款業績，應收帳款撥備更加有利，也帶來了一定的好處。總體而言，更強勁的內生銷售成長，加上併購貢獻、良好的毛利率表現和穩健的成本控制，使得報告的 EBITDA 同比增長 13.4%，其中內生增長超過 6%。

This resulted in EBITDA margins of 12.2%, expanding 46 basis points from the prior year level of 11.7%, which was above the high end of our first quarter guidance of 11.9% to 12.1%. Reported earnings per share of $2.63 was up 11.4% from prior year EPS of $2.36. On a year-over-year basis, EPS benefited from a reduced share count tied to our buyback activity, partially offset by a higher tax rate as well as increased interest and other expense on a net basis.

這使得 EBITDA 利潤率達到 12.2%，比去年同期的 11.7% 成長了 46 個基點，高於我們第一季 11.9% 至 12.1% 的預期上限。報告顯示，每股收益為 2.63 美元，較上年同期的 2.36 美元成長 11.4%。年比來看，每股盈餘的成長得益於回購活動導致的流通股數量減少，但部分被更高的稅率以及淨利息和其他支出的增加所抵消。

Turning now to sales performance by segment. As highlighted on slides 8 and 9 of the presentation. Sales in our Service Center segment increased 4.4% year-over-year on an organic basis when excluding a 10-basis-point positive impact from acquisitions and a 10-basis-point negative impact from foreign currency translation. So organic sales increase in the quarter was primarily driven by ongoing internal initiatives firming technical MRO demand and incremental price contribution.

接下來我們來看看各細分市場的銷售業績。如簡報第 8 頁和第 9 頁所示。在剔除收購帶來的 10 個基點的正面影響和外幣折算帶來的 10 個基點的負面影響後，我們的服務中心部門銷售額按有機增長計算同比增長 4.4%。因此，本季有機銷售額的成長主要得益於持續的內部舉措，這些舉措鞏固了技術性MRO需求和價格的逐步上漲。

Sales growth was strong across our national account base, reflecting benefits from sales force investments and cross-selling actions. Segment trends also continue to be supported by favorable growth across Fluid Power MRO sales. Segment EBITDA increased 10.1% over the prior year while segment EBITDA margin of 13.9% expanded over 70 basis points. This year-over-year improvement primarily reflects solid operating leverage and stronger sales growth, channel execution and cost control as well as more favorable AR provisioning requirements.

全國客戶群的銷售成長強勁，這反映了銷售團隊投資和交叉銷售措施帶來的效益。流體動力MRO銷售的良好成長也繼續支撐著細分市場的發展趨勢。分部 EBITDA 較上年成長 10.1%，分部 EBITDA 利潤率達到 13.9%，成長超過 70 個基點。這項同比改善主要反映了穩健的經營槓桿和更強勁的銷售成長、通路執行和成本控制，以及更有利的應收帳款撥備要求。

Within our Engineered Solutions segment, sales increased 19.4% over the prior year quarter with acquisitions contributing 19.8 points of growth. On an organic basis, segment sales decreased 0.4% year-over-year. The modest decline was primarily driven by muted sales trends during September across our flow control operations, reflecting softer project-related shipments. In addition, sales growth across our technology vertical was softer than expected in September, primarily tied to more gradual or conversions across the semiconductor market.

在我們的工程解決方案部門，銷售額比去年同期成長了 19.4%，其中收購貢獻了 19.8 個百分點的成長。以有機成長計算，該業務板塊銷售額年減 0.4%。此次小幅下滑主要是因為 9 月流體控制業務的銷售趨勢疲軟，反映出與專案相關的出貨量有所下降。此外，9 月我們整個技術垂直領域的銷售成長低於預期，這主要是由於半導體市場的轉型速度較為緩慢。

We view this as timing related, considering backlog trends customer indications and broader sector tailwinds, as Neil highlighted earlier. Sales across industrial and mobile fluid power markets were also lower year-over-year. However, the decline was more modest and improved notably from fiscal 2025 trends, primarily reflecting easier comparisons and firming OEM customer demand.

我們認為這與時機有關，考慮到積壓訂單趨勢、客戶回饋以及更廣泛的行業利好因素，正如尼爾之前所強調的。工業和移動流體動力市場的銷售額也較去年同期下降。然而，下降幅度較為溫和，並且與 2025 財年的趨勢相比有了顯著改善，這主要反映了基數較低以及 OEM 客戶需求趨於穩定。

Sales across our automation businesses increased organically for the second straight quarter with organic growth of 4% year-over-year, driven by solid robotic solutions demand in the US business. EBITDA increased 16% over the prior year, reflecting contributions from our Hydradyne acquisition as well as solid cost management, which was partially offset by modestly lower organic EBITDA on muted sales trends in the quarter.

受美國市場對機器人解決方案的強勁需求推動，我們自動化業務的銷售額連續第二季實現有機成長，年增 4%。EBITDA 比上年增長 16%，這反映了我們收購 Hydradyne 的貢獻以及穩健的成本管理，但部分被本季度銷售趨勢疲軟導致的有機 EBITDA 略有下降所抵消。

Segment EBITDA margin of 13.8% was down roughly 40 basis points from prior year levels, primarily reflecting unfavorable acquisition mix and lower fluid control sales. That said, we expect segment EBITDA margin trends to improve as acquisition mix headwinds ease and segment sales improve. Of note, Hydradyne's EBITDA contribution continues to increase as we progress along our integration and synergy initiatives with its financial performance tracking to our first-year guidance of $260 million in sales and $30 million in EBITDA with growth and synergy momentum, providing upside support into the second half of fiscal 2026.

分部 EBITDA 利潤率為 13.8%，較去年同期下降約 40 個基點，主要反映收購組合不利和流體控制銷售額下降。也就是說，我們預期隨著收購組合不利因素的緩解和部門銷售額的改善，部門 EBITDA 利潤率趨勢將會改善。值得注意的是，隨著我們推進整合和協同計劃，Hydradyne 的 EBITDA 貢獻持續增長，其財務業績正朝著我們第一年 2.6 億美元的銷售額和 3000 萬美元的 EBITDA 目標穩步邁進，增長和協同勢頭為 2026 財年下半年提供了上行支撐。

Moving to our cash flow performance. Cash generated from operating activities during the first quarter was $119.3 million, while free cash flow totaled $112 million, representing conversion of 111% relative to net income. Compared to the prior year, free cash was down slightly, reflecting greater working capital investment balanced by ongoing progress with internal initiatives.

接下來我們來看現金流表現。第一季經營活動產生的現金為 1.193 億美元，自由現金流總計 1.12 億美元，佔淨收入的 111%。與前一年相比，自由現金流略有下降，反映出營運資本投資增加，但內部措施的持續進展也抵銷了這一影響。

From a balance sheet perspective, we ended up September with approximately -- excuse me, $419 million of cash on hand and net leverage at 0.3x EBITDA, which is above the prior year level of 0.1x. Our balance sheet is in a solid position to support our capital deployment initiatives moving forward including accretive M&A, dividend growth and opportunistic share buybacks. During the first quarter, we repurchased approximately 204,000 shares for $53 million.

從資產負債表角度來看，截至9月底，我們手上現金約4.19億美元，淨槓桿率為0.3倍EBITDA，高於去年同期的0.1倍。我們的資產負債表狀況穩健，足以支持我們未來的資本部署計劃，包括增值併購、股息成長和擇機回購股票。第一季度，我們以 5,300 萬美元的價格回購了約 204,000 股股票。

Turning now to our outlook. As indicated in today's press release and detailed on page 12 of our presentation, we are modestly raising full year fiscal 2026 EPS guidance to reflect first quarter performance and updated diluted share count assumptions following the first quarter buyback activity. We now project EPS in the range of $10.10 to $10.85 compared to prior guidance of $10 to $10.75. That said, we are maintaining our sales guidance of about 4% to 7%, including up 1% to 4% and on an organic basis as well as EBITDA margins of 12.2% to 12.5%. Guidance continues to assume 150 to 200 basis points of year-over-year sales contributions from pricing.

現在來談談我們的展望。正如今天的新聞稿中所述，並在我們簡報的第 12 頁中詳細說明，我們小幅上調了 2026 財年全年每股收益預期，以反映第一季度的業績以及在第一季度回購活動後更新的稀釋股份數量假設。我們現在預計每股收益在 10.10 美元至 10.85 美元之間，高於先前 10 美元至 10.75 美元的預期。儘管如此，我們仍維持 4% 至 7% 的銷售額成長預期，其中包括 1% 至 4% 的有機成長，以及 12.2% 至 12.5% 的 EBITDA 利潤率預期。業績指引繼續假設價格因素將帶來 150 至 200 個基點的年銷售額成長。

Our sales outlook remains largely unchanged from the views we provided in mid-August. We believe end market trends are moving in the right direction, and we are encouraged by positive order and business funnel momentum. However, we continue to assume industrial activity remains mixed near term, and we expect our conversion across our Engineered Solutions backlog to be more weighted toward the back half of our fiscal year.

我們的銷售前景與 8 月中旬的觀點基本保持不變。我們認為終端市場趨勢正朝著正確的方向發展，積極的訂單和業務成長動能也令我們倍感鼓舞。然而，我們仍然認為工業活動短期內仍將喜憂參半，我們預計工程解決方案積壓訂單的轉換將更集中在本財年的下半年。

Combined with sales trends in October, we currently project fiscal second quarter organic sales to increase by a low single-digit percent over the prior year quarter with Service Center segment growth above the Engineered Solutions segment. This is consistent with the midpoint of our initial guidance provided in mid-August and implies underlying sales trends remain relatively stable in the second half of our fiscal year at midpoint.

結合 10 月的銷售趨勢，我們目前預計第二財季有機銷售額將比上年同期成長個位數百分比，其中服務中心部門的成長將高於工程解決方案部門。這與我們 8 月中旬提供的初步指導的中點一致，意味著本財年下半年的潛在銷售趨勢在中點時仍保持相對穩定。

We also acknowledge the low end of our sales guidance would imply a softening market in the back half of the year. We view this as little probability based on our indicators and performance to date. However, consistent with our typical approach to guidance, we believe it remains prudent to maintain our full year range at this early point in the year, pending greater clarity and less volatility across the macro and trade policy backdrop. Overall, we are running in line with our sales expectations year-to-date and remain constructive on our setup moving to the second half of the year.

我們也意識到，銷售預期下限意味著下半年市場將會疲軟。根據我們目前的指標和表現，我們認為這種可能性很小。然而，根據我們一貫的指引方式，我們認為，在宏觀經濟和貿易政策背景更加明朗、波動性降低之前，今年年初維持全年業績預期範圍仍然是審慎的做法。整體而言，我們今年的銷售業績符合預期，並且對下半年的發展前景保持樂觀。

Lastly, from a margin standpoint, we are encouraged by our first quarter performance and reiterating the outlook provided in mid-August. We continue to assume ongoing inflationary pressures and growth investments as well as $14 million to $18 million of LIFO expense. For the second quarter, we expect gross margins to increase slightly on a sequential basis and EBITDA margins of 12% to 12.3%.

最後，從利潤率的角度來看，我們對第一季的業績感到鼓舞，並重申我們在 8 月中旬提供的展望。我們繼續假設通膨壓力持續存在，成長投資也將增加，並且後進先出法 (LIFO) 支出將達到 1,400 萬至 1,800 萬美元。我們預計第二季毛利率將較上季略有成長，EBITDA 利潤率將達到 12% 至 12.3%。

I would note that we faced a difficult year-over-year gross margin and EBITDA margin comparison in the second quarter. Our prior year second quarter margin was favorably impacted by more modest LIFO expense of $0.7 million and nonroutine supplier rebate benefits as well as record performance across our Engineered Solutions segment tied to favorable mix. We expect stronger relative year-over-year EBITDA margin trends in the second half of the year reflecting greater expense leveraging and ongoing Hydradyne synergy progress as well as the potential for more favorable mix dynamics.

我想指出的是，第二季我們面臨同比毛利率和 EBITDA 利潤率的嚴峻挑戰。上年同期第二季利潤率受到有利影響，原因是後進先出法 (LIFO) 支出減少至 70 萬美元，以及非例行供應商返利，此外，由於工程解決方案部門的產品組合有利，其業績也創下歷史新高。我們預計下半年 EBITDA 利潤率同比趨勢將更加強勁，這反映了費用槓桿化程度的提高、Hydradyne 協同效應的持續進展以及更有利的產品組合動態的潛力。

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

接下來，我將把電話轉回給尼爾，請他做一些最後的總結發言。

So to wrap up, we are encouraged by our first quarter performance, including stronger top line trends, sustained positive order momentum and margin execution. We continue to have many self-help growth and margin opportunities that we expect to manifest in coming quarters and provide ongoing support levers. That said, we expect near-term sales to remain choppy, as customers balance production schedules, project phasing and capital investments into the seasonally slower fall and winter months particularly as broader trade policy uncertainty continues to linger.

綜上所述，我們對第一季的業績感到鼓舞，包括更強勁的營收成長趨勢、持續的積極訂單動能和利潤率執行情況。我們仍然有很多自助式成長和利潤提升的機會，我們預計這些機會將在未來幾季顯現，並提供持續的支援槓桿。儘管如此，我們預計近期銷售仍將波動不定，因為客戶需要平衡生產計劃、專案階段安排和資本投資，以適應季節性淡季的秋冬季，尤其是在更廣泛的貿易政策不確定性持續存在的情況下。

Importantly, we believe the underlying fundamental backdrop within our core end markets is moving in the right direction and has the potential to gain momentum as the year progresses. Feedback and sentiment from customers is gradually improving. Demand indications are more favorable across both traditional end markets, such as metals and machinery as well as emerging verticals, including discrete automation, life sciences and technology.

重要的是，我們相信核心終端市場的基本面正在朝著正確的方向發展，隨著時間的推移，有可能獲得更大的發展動力。客戶回饋和情緒正在逐步改善。無論是金屬和機械等傳統終端市場，或是離散自動化、生命科學和技術等新興垂直領域，需求跡像都更樂觀。

We're seeing encouraging funnels across both our segments that should translate into incremental order growth as additional trade policy clarity emerges, interest rates continue to moderate and capital investment decisions are finalized. Certain US industrial macro data points have trended more positive in recent months, including machinery and metals new orders as well as mining production, which have traditionally correlated well with our underlying core business. While ISM readings remain in flux, we believe the elongated sub-50 trend is positioned to move higher when considering leaner inventories and potential benefits from pro-business policies.

我們看到兩個業務板塊都出現了令人鼓舞的成長勢頭，隨著貿易政策更加明朗、利率持續趨於溫和以及資本投資決策最終確定，這些成長勢頭應該會轉化為訂單的逐步增加。近幾個月來，美國某些工業宏觀數據指標呈現更積極的趨勢，包括機械和金屬新訂單以及採礦生產，這些指標歷來與我們的核心業務密切相關。儘管ISM讀數仍在波動，但我們認為，考慮到庫存減少和親商政策可能帶來的好處，長期低於50的趨勢將會持續上升。

In addition, qualitative data points around planned investments in North American manufacturing infrastructure, and onshoring continue to broaden, while our customer service requirements are growing as they face technical labor shortages and an aged equipment base. We are well positioned to capitalize on these trends given our domain knowledge and scale across industrial facilities core capital equipment. This includes our expertise around critical motion and powertrain products in demanding applications, access to premier supplier brands and nonstandard components, nationwide local service reliability.

此外，有關北美製造業基礎設施和本土化計畫投資的定性數據點不斷擴大，同時，由於面臨技術勞動力短缺和設備老化等問題，我們的客戶服務需求也在不斷增長。憑藉我們在工業設施核心資本設備領域的專業知識和規模，我們完全有能力掌握這些趨勢。這包括我們在嚴苛應用中關鍵運動和動力總成產品方面的專業知識、獲得一流供應商品牌和非標零件的管道、以及在全國範圍內提供可靠的本地服務。

In addition, we have leading channel position in providing advanced robotics, machine vision and high-tech fluid power systems. Combined with our network of service shops, technicians and engineers, we are positioning our strategy and teams to play an increasingly critical role in linking legacy industrial production infrastructure and processes with new advanced applications and technologies, both now and into the future.

此外，我們在提供先進機器人、機器視覺和高科技流體動力系統方面擁有領先的通路地位。結合我們的服務商店、技術人員和工程師網絡，我們正在調整我們的策略和團隊，以便在連接傳統工業生產基礎設施和流程與新的先進應用和技術方面發揮越來越重要的作用，無論現在還是將來。

Lastly, our balance sheet and liquidity provide strong support to opportunistically pursue ongoing organic investment and strategic M&A in the current environment as well as other capital deployment that could augment returns for all stakeholders going forward. Once again, we thank you for your continued support.

最後，我們的資產負債表和流動性為在當前環境下抓住機會進行持續的有機投資和策略併購以及其他資本部署提供了強有力的支持，這些投資和部署可以增加所有利益相關者未來的回報。再次感謝您一直以來的支持。

And with that, we'll open up the lines for questions.

接下來，我們將開放提問環節。

(Operator Instructions) David Manthey, Baird.

（操作說明）David Manthey，Baird。

My first question -- first a comment, I mean, the business seems to be tracking really well, and I appreciate the conservative guidance given the many headwinds. And along those lines, as we look forward here into the December quarter, Christmas is on a Thursday this year, which makes it kind of tough for that Friday, December 26 between the holiday and the weekend. Just wondering if you've been hearing anything from your customers in terms of holiday shutdowns as they look forward to the end of the year.

我的第一個問題——首先我想說的是，公司業務似乎發展得非常好，考慮到許多不利因素，我很欣賞公司採取的保守策略。由此看來，當我們展望 12 月季度時，今年的聖誕節是星期四，這使得 12 月 26 日星期五（聖誕節和周末之間）的安排變得有些棘手。想問您有沒有收到客戶關於假日停業的回饋，因為他們都在期待年底的到來。

I would say at this stage, still a little early. We plan to be working. I'd say that for one. But I think many dialogue with our customers, they're starting to look at projects, planned maintenance activity out for and looking forward to the -- what they think will be ongoing demand requirements for them. So -- and we're aware of the mid-week seasonal holiday dropping in that, a little early, but I'm expecting some customers are going to be leaning in and active as they look forward at demand requirements and some others may take some time out, but that also opens up doors for additional planned project maintenance.

我認為現階段還是有點早。我們計劃繼續工作。我個人就這麼認為。但我認為，透過與客戶的多次對話，他們開始專注於專案、規劃維護活動，並展望他們認為將會持續的需求。所以——我們注意到周中季節性假期提前到來，但我預計一些客戶會積極主動地展望未來的需求，而另一些客戶可能會休息一段時間，但這同時也為額外的計劃項目維護打開了機會之門。

Dave, this is Ryan. I just would add to that dynamic is taken into account in terms of the second quarter guide that we provided as it relates to maybe some impact from the holiday timing. We do have an easier comparison in the month of December, which could balance some of that as well.

戴夫，這是瑞恩。我只想補充一點，我們在提供的第二季業績指引中已經考慮到了假期時間可能帶來的影響。12 月的數據更容易進行比較，這或許也能在某種程度上平衡上述情況。

Great. I can't promise I'll be in the office on the 26th, but I'm glad to hear you guys will. Second question is, Neil, in the past, you've mentioned that inflation is manageable if your suppliers, a, increase the price as opposed to putting through a surcharge and b, give you 45 days' notice to push that through to the customer base. One of your distribution comps recently noted a compressed supplier notification periods. And I'm just wondering if you've noticed anything, any different behavior from your supplier base along those lines?

偉大的。我不能保證26號一定在辦公室，但我很高興聽到你們會來。第二個問題是，尼爾，你過去曾提到，如果你的供應商 a 提高價格而不是加收附加費，並且 b 提前 45 天通知你，以便將價格上漲轉嫁給客戶，那麼通貨膨脹是可以控制的。你們的一家經銷公司最近注意到供應商的通知週期縮短了。我只是想問您是否注意到供應商在這方面有任何不同的行為？

David, I'd say overall, no real difference in behavior. I would say the orderly the increases have been orderly notifications. Obviously, the team is doing a very nice job in implementing across price/cost in the quarter, equal into that side, we did see price contribution increased a couple of hundred basis points in that. We're looking at perhaps there'll be the 232 on derivative products. But I think there, some manufacturers, a few moved, and I think some others are just contemplating looking at country of origin and when that -- what the impact will be and when that will come through as a price increase.

戴維，我覺得整體而言，行為上並沒有什麼真正的差別。我認為，這些成長是有條不紊的，通知也同樣有條不紊。顯然，團隊在本季在價格/成本方面的實施工作做得非常好，同樣地，我們看到價格貢獻增加了幾百個基點。我們正在考慮是否會有關於衍生產品的 232 條款。但我認為，一些製造商已經轉移了市場，而另一些製造商則正在考慮原產國問題，以及這將產生什麼影響，以及何時會表現為價格上漲。

And so some will organize that for the beginning of the calendar year with the typical notice period. So I'd say overall, it continues to be an orderly environment. Teams are focused. We know how to execute, and we'll continue to do so.

因此，有些人會安排在年初進行，並按照通常的通知期進行安排。所以總的來說，我認為這裡仍然是一個井然有序的環境。團隊專注。我們知道如何執行，而且我們會繼續這樣做。

Brett Linzey, Mizuho.

Brett Linzey，瑞穗銀行。

This is Peter Costa on for Brett. So I think you had said previously that Engineered Solutions would outperform Service Center by about 100 basis points in fiscal '26, is this still something that's possible with a stronger second half? Or are you expecting a more balanced organic mix now?

這是彼得·科斯塔代替布雷特上場。所以，我記得您之前說過，在 2026 財年，工程解決方案業務的表現將比服務中心業務高出約 100 個基點，如果下半年業績更強勁，這種情況是否仍然有可能實現？或者您現在期待的是一種更均衡的有機產品組合？

Yes. I would say as we look at the second quarter, I could see service centers continuing to be ahead. And then as I look at the second half of the year, we could see Engineered Solutions with the order backlog, project conversions to be greater than the Service Centers in the second half of fiscal '26.

是的。我認為，展望第二季度，服務中心仍將繼續保持領先地位。然後，展望下半年，我們可以看到，在 2026 財年下半年，工程解決方案的訂單積壓和專案轉換率將高於服務中心。

Yes, Peter, I'd say that, that assumption for the full year is still in line with our guidance as it relates to overall the Engineered Solutions segment around 100 basis points.

是的，彼得，我認為，這一全年假設仍然符合我們對整個工程解決方案部門的指導意見，約為 100 個基點。

Awesome. And then maybe just on consolidated incrementals as you get Engineered Solutions comes back and Hydradyne's less dilutive. Could you actually see upside to incrementals as we go into the second half?

驚人的。然後，隨著 Engineered Solutions 回歸，Hydradyne 的稀釋作用較小，或許只需進行合併增量即可。進入下半年，您認為增量投資真的會有上漲空間嗎？

Yes, we think there could be the setup also a broadening of local accounts, greater engineered solutions. So I think, clearly, that potential exists.

是的，我們認為也可以考慮擴大本地帳戶，提供更完善的工程解決方案。所以我認為，很明顯，這種可能性是存在的。

Sabrina Abrams, Bank of America.

Sabrina Abrams，美國銀行。

Can you help me understand like the orders growth has been quite good for the past few quarters in both fluid power and I think on the flow control. And my understanding is the projects, the lead times are not particularly long, maybe 180 days or less. So just trying to understand the dynamic. When these orders do turn positive and when you do convert out of backlog, are customers delaying? Because it seems like it's taken longer than usual.

您能幫我理解一下嗎？過去幾個季度，流體動力和流量控制領域的訂單成長都相當不錯。據我了解，這些項目的工期都不算長，可能180天或更短。我只是想了解其中的動態。當這些訂單最終轉正，積壓訂單全部處理完畢後，客戶是否會延遲出貨？因為感覺比平常花費的時間還要長。

No, Sabrina, I would say there's just variance in projects on the time to convert based on sometimes complexity of the project or the overall status of the project and the schedule and where we sequenced into that. So I'm encouraged by the continuous orders expansion into that. Fluid power was up nicely, 9% in the quarter. Flow control, nice order growth in as well. I think there, there is some pivot in some of the projects where previously they would add projects around carbon capture and some other activity.

不，Sabrina，我認為專案轉換時間的長短取決於專案的複雜性、專案的整體狀態、進度安排以及我們在進度安排中的順序。因此，訂單持續成長令我感到鼓舞。流體動力業務發展良好，本季成長了 9%。流量控制良好，訂單成長也不錯。我認為，在某些項目中，情況有所轉變，以前他們會增加一些圍繞碳捕獲和其他活動的項目。

There's a little more around power generation, life science and pharmaceuticals, but we're encouraged that, that work will continue to be in the US markets. And then on the automation side, we had a tough comparable, plus 25% from an order standpoint last quarter, down slightly on order this side, but a two-year stack that's over 23%. We take that as very encouraging across our discrete automation opportunities in robotics and vision. So good coming input on projects.

還有一些涉及發電、生命科學和製藥領域的工作，但我們感到鼓舞的是，這些工作將繼續在美國市場進行。自動化方面，我們面臨著一個艱難的比較，上個季度訂單量增加了 25%，本季訂單量略有下降，但兩年累計成長超過 23%。我們認為這對我們在機器人和視覺領域的離散自動化機會來說是一個非常令人鼓舞的消息。很高興收到大家對專案的回饋意見。

We expect the conversion will be occurring. Some of it may sequence more in with calendar year-end into the second half of our fiscal 2026, but we've got a good pipeline to execute on.

我們預計轉換將會發生。其中一些項目可能會在 2026 財年下半年，也就是日曆年末之前逐步推進，但我們有良好的專案儲備可以執行。

Okay. Great. And just want to ask again about pricing. I think last quarter, the thought was that pricing would ramp through the year with Q1 maybe not quite -- like it seems like pricing came in better than what we had spoken about. Have you changed how you are thinking about the cadence of pricing throughout the year?

好的。偉大的。我還要再問一下價格方面的問題。我認為上個季度，大家的想法是價格會隨著年數的增加而逐步上漲，第一季可能不會完全如此——但現在看來，實際的價格比我們之前討論的要好。您是否改變了對全年定價節奏的看法？

Because it seems to me not raising the pricing guide. It seems like you're being conservative here.

因為在我看來，這似乎並沒有提高定價指南。看來你在這裡比較保守。

I think, Sabrina, we're just early into it. We did come in at that 200 basis points. We've guided to 150 to 200 basis points. Could it develop more as we look out, I think that will be a little bit contingent on market activity and the rate of additional supplier increases at that time. So we think coming offsetting those expectations mid-August to looking at now, perhaps it's a little early to say it will ramp beyond the 200 basis points that we had in the quarter.

薩布麗娜，我覺得我們還處於起步階段。我們最終的投入確實達到了200個基點。我們給出的指導價為 150 至 200 個基點。展望未來，它是否會進一步發展，我認為這在一定程度上取決於當時的市場活動和供應商新增數量的成長速度。因此，我們認為，考慮到 8 月中旬的預期，現在看來，或許還為時過早，說它會超過我們本季預期的 200 個基點。

Ken Newman, KeyBanc.

Ken Newman，KeyBanc。

Maybe for my first one. Neil, on the Engineered Solutions side, it's good to hear that the orders they are improving. I'm just curious, do you have any color on what you're seeing out of that segment through October? Any help on whether that's kind of improving from what you saw at the end of September with maybe the fall off in activity there and just confidence on the timing of the conversion of that backlog.

或許這是我的第一個。Neil，就工程解決方案方面而言，很高興聽到他們的訂單狀況正在改善。我只是好奇，您對10月那段時間的狀況有什麼看法嗎？能否幫忙分析一下，與九月底的情況相比，現在是否有改善？當時業務活動可能有所下降，而且您對積壓訂單的轉換時間也有信心。

Yes. We continue to see good order activity. Teams are engaged and working on that order conversion and working on those projects. I would say also there is an MRO component in those businesses that we're working on. A little bit of the flow control group as they work through chemicals, perhaps there's a little bit of softness on the MRO side that played into the quarter.

是的。我們持續看到良好的訂單活動。團隊正在積極參與訂單轉化工作和相關項目。我想說，我們正在從事的這些業務中也包含MRO（維護、維修和營運）的成分。流量控制小組在處理化學品時可能出現了一些問題，MRO 方面可能存在一些軟性因素，這影響了本季的表現。

We expect that to continually improve, especially as we get into calendar 2026, with that interaction of customers.

我們預計這種情況會不斷改善，尤其是在進入 2026 年後，隨著與客戶的互動，情況會更加改善。

And then I just think that the setup and the dialogue, and we touched on it in the remarks. I think there's greater wafer fab equipment activity in calendar 2026. We know there's increased life sciences and pharmaceutical interest on that side. Our participation in data centers continues to grow and things that we're doing in thermal management, liquid cooling, but also our robotic solutions in that.

然後我覺得，場景設定和對話都很重要，我們在總結發言中也談到了這一點。我認為2026年晶圓製造設備的活動會比較活躍。我們知道，生命科學和製藥業對這方面越來越感興趣。我們在資料中心領域的參與度持續成長，我們在熱管理、液冷以及機器人解決方案方面都在不斷努力。

So I'm encouraged that our Engineered Solutions business has great breadth. When an end market is shifting or changing, the teams are very focused on being where growth is occurring and positioning ourselves very nicely. So as we work through the second quarter, we feel very good about the second half of fiscal 2026.

因此，我感到鼓舞的是，我們的工程解決方案業務範圍很廣。當終端市場發生轉變或變化時，團隊會非常專注於在成長發生的地方佔據有利位置，並做好充分的市場準備。因此，在完成第二季的工作後，我們對 2026 財年下半年的前景感到非常樂觀。

Got it. That's helpful. And then just thinking about capital allocation, it was good to hear that the pipeline is still pretty active for M&A you did buy back some stock this past quarter. How do you think about the priority or the opportunities to put capital to work here in the second quarter or into the back half? And with automation starting to pick up on demand, is that making it easier or harder to get deals done?

知道了。那很有幫助。再想想資本配置方面，很高興聽到併購活動依然十分活躍，你們上個季度確實回購了一些股票。您認為在第二季或下半年，將資金投入這裡的優先事項或機會是什麼？隨著自動化需求的日益增長，這究竟是讓交易更容易達成還是更難達成？

I would say a few things there. Priorities remain, right? We very much are going to be focused in funding our organic growth opportunities like we have to support automation and our fluid power technology segment businesses in that. So we'll continue to have organic growth also in systems remains a priority. We are active, busy on multiple fronts.

我想就此說幾點。優先事項依然不變，對吧？我們將非常注重為我們的有機成長機會提供資金，例如，我們必須支援自動化和流體動力技術業務部門。因此，我們將繼續保持有機成長，同時系統建設仍然是我們的首要任務。我們積極活躍，在許多方面都十分忙碌。

Pipeline continues to have bolt-on opportunities in both segments as well as some midsized opportunities. So we'll continue to be busy on that front.

管道業務在兩個細分市場都持續存在附加投資機會，以及一些中等規模的投資機會。所以我們會繼續在這方面努力。

And then we'll have other ways to return capital to the shareholders, increasing dividend as well as remaining active in share repurchase. So we think we're in a good position, continuing strong cash generation in that area. And I don't think the deal environment is more difficult in that front. We're going to continue to be a disciplined acquirer. We have clear priorities.

然後，我們將透過其他方式向股東返還資本，例如提高股利以及繼續積極回購股票。所以我們認為我們處於有利地位，在該領域將繼續保持強勁的現金流。而我認為，就這方面而言，交易環境並沒有變得更加困難。我們將繼續保持謹慎的收購策略。我們有明確的優先事項。

We work to have ourselves in good positions when those opportunities arise. We say we can't perfectly control timing, but we feel good about our setup and opportunities for increased capital deployment in 2026.

我們努力讓自己處於有利位置，以便在機會出現時及時應對。我們說我們無法完美控制時機，但我們對我們的現狀以及2026年增加資本部署的機會感到滿意。

Chris Dankert, Loop Capital Markets.

Chris Dankert，Loop 資本市場。

Congrats on a nice start to the year here. I guess, first off, I'm looking at the margin guidance, calling for gross margins up a little bit sequentially, nice to see that. I guess I appreciate the year-over-year comp headwinds from rebates and mix and whatnot. But why wouldn't the EBITDA gross margin -- or excuse me, the EBITDA margin improved sequentially as well? And what are some of the maybe the sequential offsets that we should be thinking about?

恭喜你今年開局不錯。首先，我關注的是利潤率指引，預計毛利率將較上季略有成長，令人欣慰。我想我能理解因折扣、產品組合等因素造成的年比不利影響。但為什麼 EBITDA 毛利率（或更準確地說，EBITDA 利潤率）沒有比去年同期增加呢？那麼，我們應該考慮哪些可能的順序偏移量呢？

Yes. I think as you get in, Dave touched on it a little bit as we think about LIFO, the LIFO expense in the second quarter last year, $700,000. As we think about LIFO this time, it could perhaps be $4 million or greater into the site. So I think that is one different point Dave touched on the nonroutine rebate that would have occurred last time. And then perhaps some of the mix headwinds, still the M&A integration is lower as it would come in for now into that front.

是的。我認為，正如戴夫剛才提到的，當我們考慮後進先出法（LIFO）時，去年第二季度的後進先出法費用為 70 萬美元。這次我們考慮採用後進先出法（LIFO），可能會投入 400 萬美元或更多資金到該網站。所以我覺得這是戴夫提到的一個不同之處，即上次發生的非常規退款。此外，也可能存在一些不利因素，但併購整合程度仍較低，因為目前這方面的情況較為特殊。

And then I think on a little less engineered solutions in the quarter and perhaps local accounts on the service center side ramping, but ramping less than some of the national accounts will all be influences on that side.

然後我認為，本季度一些工程化的解決方案可能會有所減少，服務中心方面的本地客戶可能會有所增加，但增加的幅度可能小於一些全國性客戶，所有這些都會對這方面產生影響。

Yes, on that, Chris, we did see some modest benefit in the first quarter. You recall we took some provisioning charges in our Q4 based on our formulaic approach with customers and a couple of payment delays, vast majority of that came back to us in the quarter. So that was a modest benefit as well that would play through to EBITDA versus beyond the gross margin step-up that we talked about.

是的，克里斯，關於這一點，我們在第一季確實看到了一些輕微的改善。您可能還記得，我們​​在第四季度根據我們對客戶的固定做法以及一些付款延遲情況計提了一些準備金費用，其中絕大部分在本季度都已收回。所以這也是一項適度的收益，它將體現在 EBITDA 上，而不僅僅是我們之前討論過的毛利率提升。

And then I think, Chris, right, if we look past the second quarter, we feel like we've got a nice opportunity for greater expense leveraging in the back half of our year, probably increased in ongoing contributions from Hydradyne and then potentially mix benefits that we would get there of greater engineered solutions as well as local accounts as we think about the back half of the year.

然後我想，克里斯，對吧，如果我們展望第二季度之後，我們感覺下半年我們有機會更好地利用支出，Hydradyne 的持續貢獻可能會增加，然後當我們考慮下半年時，我們可能會獲得更多工程解決方案以及本地客戶的綜合收益。

Got it. I guess as a follow-up, thinking about the Hydradyne synergies, anything you can give us there in terms of is that still on track from both a cross-selling and a cost reduction perspective? Any anecdotes in terms of cross-selling wins you highlight there?

知道了。我想接著問一個後續問題，關於 Hydradyne 的協同效應，您能否就交叉銷售和成本降低這兩個方面提供一些信息，說明它是否仍在按計劃進行？您在交叉銷售方面有沒有什麼成功案例可以分享？

Yes. So I would say on track to deliver first year synergies. So we feel good about that, growing opportunity on the sales and the repair. So they have very good capabilities there. And so we would see it on the maintenance side, cylinder repair and other opportunities, just where we have capability and resource in an important geography and then continued progress on the work streams on the cost side, use of technology in that front, standardizing on some processes, supporting them for the internal back-office capabilities in that front, all of those developing nicely.

是的。所以我認為，我們正按計畫實現第一年的協同效應。所以我們對此感到欣慰，銷售和維修方面都有不斷成長的機會。所以他們在那方面具備很強的能力。因此，在維護方面，例如氣缸維修和其他機會，我們能夠在重要的地區擁有能力和資源，然後在成本方面的工作流程中不斷取得進展，在這一領域使用技術，標準化一些流程，支持內部後台部門在這一領域的能力，所有這些都在良好地發展。

And then as we think about ongoing growth, they're well positioned from a data center standpoint. We think there's more we can do there and then how we support them from a central engineering standpoint, especially as fluid power technologies continue to increase around electrification in some of those electronics and controls can be positive as well on the growth side as we look forward.

從資料中心的角度來看，考慮到持續成長，他們也處於有利地位。我們認為我們還可以在這方面做更多的事情，從中央工程角度支持他們，特別是隨著流體動力技術在一些電子和控制方面的電氣化不斷提高，展望未來，這在增長方面也可能是積極的。

We did highlight too in the comments, Chris, the EBITDA for the quarter did step up another 20% sequentially following the increase that we saw in Q4. So we continue to be pleased with the progress the team is making there.

克里斯，我們在評論中也強調了，繼第四季度增長之後，本季的 EBITDA 環比增長了 20%。因此，我們對團隊在那裡取得的進展感到滿意。

Patrick Schuchard, Oppenheimer.

派崔克舒查德，奧本海默。

I wanted to ask about automation growth in Engineered Solutions. Can you contrast how much of the positive sales growth is secular market pickup versus internal initiatives and/or market share impact?

我想了解工程解決方案中自動化發展的情況。你能對比一下，銷售成長中有多少是市場長期回溫帶來的，又有多少是內部舉措和/或市場份額提升帶來的嗎？

Well, I think it's still early. We got a good run rate of the businesses probably scaling nicely at $250 million or so. So we're doing a nice job in ramping. I think we are opening and serving more industrial customers opportunities with these capabilities as well as participating in some nice projects around traditional industry segments. So we expect robotics as a general market to continue to grow, and we're well positioned there, both collaborative and autonomous mobile robots into the site.

我覺得現在還為時過早。我們已經獲得了不錯的業務成長速度，這些業務的規模可能會穩定擴大到 2.5 億美元左右。所以我們目前的產能提升工作做得很好。我認為，憑藉這些能力，我們正在為更多工業客戶創造和服務機會，同時也參與一些圍繞傳統產業領域的優秀專案。因此，我們預期機器人技術作為一個整體市場將繼續成長，而我們在這方面也佔據了有利地位，將協作式和自主式移動機器人引入到現場。

But we're also doing a nice job in the vision offering and where customers can see the benefits of quality control and inspection and what those solutions provide in there. So I think it's a combination, Pat, that we're just well positioned. We're opening up more opportunities with existing customers as well as serving traditional verticals with those companies that they had previously and growing them.

但我們在視覺產品方面也做得很好，客戶可以看到品質控制和檢驗的好處，以及這些解決方案在其中提供的功能。所以我覺得是多種因素綜合作用的結果，帕特，我們目前處於非常有利的地位。我們正在為現有客戶創造更多機會，同時也為他們以前服務過的傳統垂直行業公司提供服務，並幫助他們成長。

Okay. And you talked about cross-selling as an organic driver. And you've mentioned in the past these initiatives were in the early innings of getting going. So just looking for an update there, what are you guys seeing in terms of revenue at cross-selling tool overall?

好的。你也談到了交叉銷售作為一種自然成長的驅動力。您之前也提到過，這些措施還處於起步階段。所以我想了解最新情況，你們覺得交叉銷售工具的整體收入如何？

Yes. I'd still say we'd characterize it as early innings. Our funnels are growing, project opportunities are expanding. Teams will be together in the coming weeks to further that planning and execution, some key suppliers there as well. So pleased with the progress.

是的。我仍然認為我們應該將其視為比賽的早期階段。我們的銷售管道正在擴大，專案機會也在增加。接下來幾週，各團隊將齊聚一堂，進一步推動規劃和執行工作，一些重要的供應商也將到場。對目前的進展非常滿意。

We know we have even more impact that we can have with our customers. And as the customers deal with aging equipment, perhaps an aging technical workforce, they're looking for someone to help them on broader needs, broader solutions, and we're well positioned to continue to do that.

我們知道我們對客戶還有更大的影響力。隨著客戶面臨設備老化、技術人員老化等問題，他們正在尋找能夠幫助他們解決更廣泛需求、提供更全面解決方案的人，而我們完全有能力繼續做到這一點。

And if I could just squeeze one more in. You talked about some of the sequential margin dynamics in the guide, but I wanted to dig a little bit deeper on the top line. You mentioned demand is stable. The engineered business had positive book-to-bill this quarter, but the guide implies the second quarter might be down slightly sequentially versus normal seasonality, up low single digits. So just kind of curious if there's anything we should consider there.

如果我能再擠出一個就好了。您在指南中談到了一些連續邊際動態，但我想要更深入地探討一下頂線。您提到需求穩定。本季工程業務的訂單出貨比為正，但該指引暗示第二季可能會比正常季節性略有下降，增幅約為個位數。所以，我只是有點好奇，這方面我們是否應該考慮些什麼。

Patrick, I would say nothing different than how we typically think about it. The guide for the second quarter top line is in line at the midpoint with what we guided in August. We continue to expect a choppy environment near term, as we talked about in the prepared remarks around the slower seasonality, also earlier talking about the timing of holidays, taking that into account as well. And then just the backlog conversion of the Engineered Solutions segment, we expect that to be more of a back-half weighted dynamic. And so taking, taking that into account, but really is no change to how we view the year setting up in the original guidance that we established in August.

派崔克，我的看法和我們平常的想法沒什麼不同。第二季營收預期與我們8月份的預期中位數基本一致。我們預計近期市場環境仍將動盪不安，正如我們在準備好的演講稿中談到的季節性放緩問題，以及之前談到的假期安排問題，我們也考慮到了這一點。至於工程解決方案領域的積壓訂單轉換率，我們預期下半年的情況會更加明顯。因此，考慮到這一點，我們對今年情況的看法實際上並沒有改變，這與我們在 8 月制定的最初指導方針一致。

Sam Darkatsh, Raymond James.

Sam Darkatsh，Raymond James。

Apologize if you mentioned this earlier and I missed it, I was kicked off the call middle of the way through. First, your end market vertical commentary was fairly similar to your number 1 competitor with a couple of exceptions, which would be pulp and paper and oil and gas, which you called out as favorable and they called out as headwinds. What specifically happening in those two particular verticals that's conceivably allowing you to pick up some incremental business?

如果您之前提到過這件事而我錯過了，我深表歉意，因為我通話進行到一半就被踢出了通話。首先，你的終端市場垂直行業評論與你最大的競爭對手非常相似，只有少數例外，即紙漿和造紙以及石油和天然氣，你認為這些行業有利，而他們則認為這些行業不利。這兩個特定垂直領域具體發生了什麼，使得你們有可能獲得一些增量業務？

Yes, I don't know that I've got a great comparison contrast in that. I think a broadly energy markets seem to be active and doing well into the side. And just paper, we've got a good position, and we continue to look at how do we create value add for those customers and perhaps expand our offering and capabilities with them. But in a comparison contrast, I don't know if they had anything else to point out.

是的，我不太確定我在這方面是否有很好的對比。我認為整體而言，能源市場似乎活躍且表現良好。僅就紙面資料而言，我們已經處於有利地位，我們將繼續研究如何為這些客戶創造附加價值，並可能擴展我們與他們合作的產品和服務能力。但作為對比，我不知道他們是否還有其他需要指出的地方。

Got it. And my last question. And again, I'm sorry if you've already mentioned this. The 2% pricing that you realized in the quarter, how would that break out service center versus engineered?

知道了。我的最後一個問題。再次抱歉，如果您之前已經提到過這件事。本季實現的 2% 的價格漲幅，將如何細分為服務中心和工程化服務中心？

Yes. Yes. Sam, I'd say relatively similar. Not a huge change or difference in the -- by segment if I had to push it one way, maybe a little bit higher in the service center side of the business, but pretty consistent.

是的。是的。山姆，我覺得情況比較類似。依業務板塊劃分，變化不大，如果非要說哪個板塊變化大，服務中心業務板塊的變化可能稍微大一些，但總體來說比較一致。

Are there particular product categories or verticals in which pricing was more pronounced, I'm guessing product categories more so than verticals?

是否存在某些產品類別或垂直領域，其定價差異更為顯著？我猜是產品類別比垂直領域更為顯著？

Yes, nothing that we would call out as materially different. I mean, it's been generally a pretty broad-based impact across the product and you're seeing inflation as well as just general price updates come through really across the board. So nothing that we would call out as materially different in one category versus the other.

是的，沒有什麼實質的不同。我的意思是，這總體上對整個產品都產生了相當廣泛的影響，你會看到通貨膨脹以及一般的價格調整全面顯現出來。因此，這兩個類別之間並沒有什麼實質的差異。

So as an example, then what I'm getting at, I guess, is bearings is not like something steel related or something along those lines would not be a material outlier?

舉個例子，我的意思是，軸承不像鋼鐵之類的東西，不會成為材料上的特殊情況吧？

No. I mean, I think in the context of really our core products in general, a lot of steel content across all of them, particularly on the service center side. So we would not call out bearings as an overweight in terms of what we're seeing from a pricing standpoint right now.

不。我的意思是，我認為就我們所有核心產品而言，鋼材含量都很高，尤其是在服務中心方面。因此，就目前的價格走勢而言，我們不會將軸承視為權重過高的產品。

At this time, I'm showing we have no further questions. I'll 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了。現在我將把電話交給施里姆舍爾先生，請他作總結發言。

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

我只想感謝大家今天蒞臨，我們期待在本季與大家繼續交流。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、先生。今天的會議到此結束。感謝您的參與。您現在可以斷開連線了。