Alamo Group Inc (ALG) 2025 Q1 法說會逐字稿

Good morning, and welcome to the Alamo Group's first-quarter 2025 conference call. (Operator Instructions) Please note, this event is being recorded.

早上好，歡迎參加 Alamo Group 2025 年第一季電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Edward Rizzuti, Executive Vice President, Corporate Development, Investor Relations and Secretary. Please go ahead.

現在，我想將會議交給企業發展、投資者關係執行副總裁兼秘書 Edward Rizzuti。請繼續。

Thank you. By now, you should have all received a copy of the press release. However, if anyone is missing a copy and would like to receive one, please contact us at (212)-827-3746, and we will send you a release and make sure you are on the company's distribution list. There will be a replay of the call, which will begin one hour after the call and run for one week. The replay can be accessed by dialing 1-(877)-344-7529 with passcode 3570057. Additionally, the call is being webcast on the company's website at www.alamo-group.com, and a replay will be available for 60 days.

謝謝。現在，你們都應該收到一份新聞稿的副本。然而，如果有人缺少副本並希望收到一份，請撥打 (212)-827-3746 聯繫我們，我們將向您發送新聞稿並確保您在公司的分發名單上。通話將會重播，重播將在通話結束後一小時開始，持續一週。撥打 1-(877)-344-7529 並輸入密碼 3570057 即可收聽重播。此外，此次電話會議將在公司網站 www.alamo-group.com 上進行網路直播，重播將持續 60 天。

On the line with me today are Jeff Leonard, President and Chief Executive Officer; and Agnes Kamps, Executive Vice President and Chief Financial Officer. Management will make some opening remarks, and then we will open up the line for your questions.

今天與我通話的是總裁兼執行長 Jeff Leonard 和執行副總裁兼財務長艾格尼絲‧坎普斯 (Agnes Kamps)。管理層將致一些開場白，然後我們將開放熱線回答您的問題。

During the call today, management may reference certain non-GAAP numbers in their remarks. Reconciliations of these non-GAAP results to applicable GAAP numbers are included in the attachments to our earnings release.

在今天的電話會議中，管理層可能會在發言中引用某些非 GAAP 數字。這些非 GAAP 結果與適用 GAAP 資料的對帳包含在我們的收益報告附件中。

Before turning the call over to Jeff, I would like to make a few comments about forward-looking statements. We will be making forward-looking statements today that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the company's actual results in future periods to differ materially from forecasted results.

在將電話轉給傑夫之前，我想對前瞻性陳述發表一些評論。我們今天將根據 1995 年私人證券訴訟改革法案的安全港條款做出前瞻性聲明。前瞻性陳述涉及已知和未知的風險和不確定性，這可能導致公司未來期間的實際結果與預測結果有重大差異。

Among those factors which could cause actual results to differ materially are the following: adverse economic conditions, which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, competition, weather, seasonality, currency-related issues, geopolitical events, and other risk factors listed from time to time in the company's SEC reports. The company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

可能導致實際結果出現重大差異的因素包括：不利的經濟條件，這可能導致整體市場需求減少、供應鏈中斷、勞動力限制、競爭、天氣、季節性、貨幣相關問題、地緣政治事件以及公司 SEC 報告中不時列出的其他風險因素。本公司不承擔更新本文所含資訊的任何義務，且該資訊僅代表截至目前的情況。

I would now like to introduce Jeff Leonard. Jeff, please go ahead.

現在我想介紹傑夫·倫納德。傑夫，請繼續。

Thank you, Ed. We want to thank everyone who's joined us on the conference call today and express our appreciation for your continued interest in Alamo Group. Our results for the first quarter were broadly aligned with our expectations. The Industrial Equipment division, again, produced strong results as demand from governmental agencies and contractors remain quite strong. The Vegetation Management division's results improved sequentially as cost reduction actions taken in the second half of 2024 improved profitability and as rising order bookings began to indicate a modest market recovery.

謝謝你，艾德。我們要感謝今天參加電話會議的所有人，並感謝大家對阿拉莫集團的持續關注。我們第一季的業績與我們的預期基本一致。由於政府機構和承包商的需求仍然強勁，工業設備部門再次取得了強勁的業績。植被管理部門的業績環比改善，因為 2024 年下半年採取的成本削減措施提高了盈利能力，而且訂單量的增加開始表明市場正在溫和復甦。

I would now like to turn the call over to Agnes who will take us through a review of our financial results for the first quarter. I will then provide additional comments on the results and say a few words about the outlook for the second quarter. Following our formal remarks, we look forward to taking your questions.

現在我想將電話轉給艾格妮絲，她將帶我們回顧第一季的財務表現。然後，我將對結果提供補充評論，並對第二季的前景發表一些看法。在我們正式發言之後，我們期待回答您的問題。

Agnes, please go ahead.

艾格妮絲，請繼續。

Thank you, Jeff. Good morning, everyone. Amid a dynamic operating environment, we continue to execute with discipline and delivered improved results to start 2025. Let's begin with reviewing our financial performance for the first quarter.

謝謝你，傑夫。大家早安。在充滿活力的營運環境中，我們將繼續嚴格執行，並在 2025 年初取得更好的表現。讓我們先回顧一下第一季的財務表現。

First quarter of 2025 revenue was $391 million compared to strong prior year first quarter revenue of $425.6 million. Gross profit for the quarter was $102.8 million with a margin of 26.3% of net sales. The increase of 10 basis points compared to the same period in 2024 is a result of continuous improvement initiatives in our Industrial Equipment division and cost reduction actions completed in our Vegetation Management division.

2025 年第一季的營收為 3.91 億美元，而去年同期第一季的營收為 4.256 億美元。本季毛利為 1.028 億美元，利潤率為淨銷售額的 26.3%。與 2024 年同期相比增加 10 個基點，這是由於我們的工業設備部門持續改善措施以及植被管理部門完成的成本削減行動。

SG&A expenses were $54.3 million, which is a reduction of 10%, driven by savings in our Vegetation Management Division. Operating income in the first quarter of 2025 was $44.5 million with an operating margin of 11.4% of net sales reflecting an improvement of 40 basis points compared to the first quarter of 2024.

銷售、一般及行政費用為 5,430 萬美元，減少了 10%，這得益於植被管理部門的節省。2025 年第一季的營業收入為 4,450 萬美元，營業利潤率為淨銷售額的 11.4%，與 2024 年第一季相比提高了 40 個基點。

Net income for the first quarter was $31.8 million, or $2.64 per diluted share compared to net income of $32.1 million or $2.67 per diluted share last year at the same time. Interest expense decreased $2.9 million compared to the same period in 2024, driven by significantly lower debt levels. The provision for income tax was $10 million, resulting in an effective tax rate of approximately 24%.

第一季淨收入為 3,180 萬美元，即每股攤薄收益 2.64 美元，而去年同期淨收入為 3,210 萬美元，即每股攤薄收益 2.67 美元。由於債務水準大幅下降，利息支出與 2024 年同期相比減少了 290 萬美元。所得稅準備金為 1,000 萬美元，有效稅率約為 24%。

With that overview, let's take a closer look at our performance in our divisions. Vegetation Management division reported net sales of $163.9 million, a 26.8% reduction compared to the first quarter of 2024. While it is a reduction compared to the strongest quarter in 2024, it is a 2.6% sequential improvement as bookings and backlog appear to have stabilized. Operating income for this division was $13.3 million, representing 8.1% of net sales. We are pleased to see that savings from our cost reduction actions taken in 2024 are evident in our results as Vegetation Management division operating margin improved 410 basis points sequentially.

透過這項概述，讓我們仔細看看我們各部門的表現。植被管理部門報告淨銷售額為 1.639 億美元，與 2024 年第一季相比下降了 26.8%。雖然與 2024 年最強勁的季度相比有所下降，但由於預訂量和積壓訂單似乎已經穩定，因此環比增長了 2.6%。該部門的營業收入為 1,330 萬美元，佔淨銷售額的 8.1%。我們很高興地看到，2024 年採取的成本削減措施所節省的成本在我們的業績中得到了明顯體現，植被管理部門的營業利潤率環比提高了 410 個基點。

Industrial Equipment Division net sales were a record $227.1 million representing 12.5% organic growth compared to the first quarter of 2024. Growth in the first quarter was driven by strong sales of excavator and vacuum trucks as well as snow removal equipment. Operating income was also a record $31.2 million or 13.7% of net sales which was a 120 basis point improvement compared to the same period last year, a result of our operational excellence initiatives.

工業設備部門淨銷售額創下 2.271 億美元的紀錄，與 2024 年第一季相比有機成長 12.5%。第一季的成長得益於挖土機、真空卡車以及除雪設備的強勁銷售。由於我們的卓越營運舉措，營業收入也達到了創紀錄的 3,120 萬美元，佔淨銷售額的 13.7%，與去年同期相比提高了 120 個基點。

Moving on to the balance sheet. We had a good start to the year. Our financial position remains strong, providing us with flexibility to support ongoing initiatives and future investments. Our total assets were $1.505 billion at the end of first quarter, representing a decrease of $14.7 million or 1% compared to last year at the same time. An increase in cash and cash equivalents was offset by a decrease in accounts receivable and inventory.

繼續討論資產負債表。今年我們有了一個好的開始。我們的財務狀況仍然強勁，為我們提供了靈活性來支持正在進行的計劃和未來的投資。第一季末，我們的總資產為 15.05 億美元，與去年同期相比減少 1,470 萬美元，降幅為 1%。現金和現金等價物的增加被應收帳款和庫存的減少所抵銷。

We reduced our accounts receivable by $53.3 million to $339.6 million, also representing a reduction in days sales outstanding compared to the same period in 2024. Inventory of $356.4 million was also reduced by $28.1 million compared to last year. Reductions we achieved in the Vegetation Management Division offset an increase in Industrial Equipment Division.

我們的應收帳款減少了 5,330 萬美元，至 3.396 億美元，與 2024 年同期相比，未收帳款週轉天數也有所減少。3.564 億美元的庫存也比去年減少了 2,810 萬美元。植被管理部門的減量抵銷了工業設備部門的增量。

Higher inventory in the Industrial Equipment Division supports double-digit growth in that division. As a result of our disciplined cash management, the operating cash flow in the first quarter of 2025 was $14.2 million. At the end of first quarter 2025, our total debt was $216.8 million, and debt net of cash was $16.5 million. This is an improvement of $183.2 million or 91.7% compared to the first quarter in 2024, driven by strategic debt reduction and strong cash generation.

工業設備部門的庫存增加支持了該部門實現兩位數的成長。由於我們嚴格的現金管理，2025 年第一季的營運現金流為 1,420 萬美元。截至 2025 年第一季末，我們的總債務為 2.168 億美元，扣除現金後的債務淨額為 1,650 萬美元。與 2024 年第一季相比，這一數字增加了 1.832 億美元，增幅為 91.7%，這得益於戰略性債務削減和強勁的現金產生能力。

To conclude, I would like to emphasize our commitment to delivering long-term value to our shareholders. We are pleased that our Board has approved a quarterly dividend of $0.30 per share. As we move forward, we will remain focused on driving growth and optimization of our operations.

最後，我想強調我們致力於為股東提供長期價值。我們很高興董事會批准每股 0.30 美元的季度股息。隨著我們不斷前進，我們將繼續專注於推動成長和優化我們的營運。

Thank you. I'll turn it over back to Jeff.

謝謝。我會把它交還給傑夫。

Thank you, Agnes. I'd like to add a personal welcome to everyone who is on the call with us this morning. The company's first-quarter results were broadly in line with our expectations given the mix conditions that continue to be evident in our markets. The governmental, industrial contractor, and vegetation markets continued to develop at different tempos during the first quarter of 2025.

謝謝你，艾格妮絲。我還想對今天上午與我們通話的每個人表示個人歡迎。考慮到我們市場持續存在的混合條件，該公司第一季的業績基本上符合我們的預期。2025 年第一季度，政府、工業承包商和植被市場持續以不同的速度發展。

Fleet renewal and maintenance investments by governmental and industrial contractor customers served by our Industrial Equipment division, continued at a robust level and market activity remains strong from these key customer groups.

我們的工業設備部門服務的政府和工業承包商客戶對車隊更新和維護的投資持續保持強勁，這些主要客戶群的市場活動仍然強勁。

Industrial Equipment Division first-quarter net sales of $227 million were up 12.5% compared to the first quarter of 2024. The sales of the division's vacuum trucks and excavators were sharply higher than the prior period first quarter driven by strong demand from rental fleet operators and municipalities.

工業設備部門第一季淨銷售額為 2.27 億美元，與 2024 年第一季相比成長 12.5%。受租賃車隊營運商和市政當局強勁需求的推動，該部門真空卡車和挖土機的銷量較上一季大幅成長。

Sales of snow removal equipment were also sharply higher year over year as large contractors continue to upgrade their fleets with the latest equipment, including our unique wide wing plow system that allows a single plow truck to clear snow and ice from two traffic lanes simultaneously.

由於大型承包商繼續使用最新設備升級其車隊，除雪設備的銷售額也同比大幅增長，其中包括我們獨特的寬翼犁系統，該系統允許一輛犁車同時清除兩個車道上的積雪和冰塊。

Sales of sweepers also improved nicely while sales of leaf collectors and highway safety equipment were modestly lower compared to the same period in the prior year. Ordering activity was solid across all product lines in this division, and bookings rose slightly compared to the prior year first quarter, which was by far the strongest quarter of 2024.

清掃機的銷量也有了顯著提高，但落葉收集器和高速公路安全設備的銷量與去年同期相比略有下降。該部門所有產品線的訂購活動都很活躍，與去年第一季相比，預訂量略有上升，而去年第一季是 2024 年迄今表現最強勁的一個季度。

Orders for the division's street sweepers, leaf vacuums, and highway safety equipment led the way and were up sharply compared to the first quarter of 2024. The division ended the quarter with backlog of $513 million down 8.3% from prior year, but up 6.6% sequentially. This division reported strong first-quarter operating income of $31.2 million or 13.7% of sales versus $25.3 million and 12.5% of sales in the prior year. EBITDA was $37.3 million, 16.4% of sales versus $31 million and 15.3% of sales one year ago.

該部門的街道清掃車、吸葉機和公路安全設備的訂單處於領先地位，與 2024 年第一季相比大幅成長。該部門本季的積壓訂單量為 5.13 億美元，較上年下降 8.3%，但比上一季成長 6.6%。該部門第一季營業收入強勁，為 3,120 萬美元，佔銷售額的 13.7%，而去年同期為 2,530 萬美元，佔銷售額的 12.5%。EBITDA 為 3,730 萬美元，佔銷售額的 16.4%，而去年同期為 3,100 萬美元，佔銷售額的 15.3%。

All in all, the Industrial Equipment division produced excellent results and 120 basis point expansion of its operating margin was especially noteworthy.

整體而言，工業設備部門取得了優異的業績，尤其值得一提的是其營業利潤率擴大了120個基點。

The Vegetation Management division continued to face headwinds in several of its key markets during the first quarter, although a modest recovery in conditions was again evident. Dealers have remained cautious as hopes for additional interest rate relief dimmed in the face of current uncertainty surrounding global trade and tariffs. First-quarter net sales of $163.9 million declined 27% versus the strong comparison period last year.

第一季度，植被管理部門在其幾個主要市場繼續面臨阻力，儘管情況再次出現溫和復甦。面對當前全球貿易和關稅的不確定性，進一步降低利率的希望變得渺茫，因此交易商仍保持謹慎。第一季淨銷售額為 1.639 億美元，與去年同期相比下降了 27%。

Division operating income in the quarter was $13.3 million, 8.1% of net sales, marking a decline from $21.7 million and 9.7% of net sales in the first quarter of 2024. However, compared to the fourth quarter of 2024, operating income improved sequentially by $6.8 million or 106% reflecting the benefits of the efficiency measures implemented in the second half of last year.

該部門本季營業收入為 1,330 萬美元，佔淨銷售額的 8.1%，較 2024 年第一季的 2,170 萬美元和淨銷售額的 9.7% 有所下降。然而，與 2024 年第四季相比，營業收入季增 680 萬美元，增幅為 106%，反映了去年下半年實施的效率措施帶來的效益。

More positively, vegetation Management's first quarter order bookings embarked a nearly 18% improvement for the first quarter of 2024 and a 3% sequential improvement from the fourth quarter of 2024. This was the fifth sequential quarter that Vegetation Management Divisions have moved higher. Order cancellations were the lowest the division has recorded since the start of 2024 and represented less than 2% of orders received.

更積極的是，植被管理公司 2024 年第一季的訂單量比 2024 年第一季成長了近 18%，比 2024 年第四季環比成長了 3%。這是植被管理部門連續第五個季度上漲。訂單取消量是該部門自 2024 年初以來的最低水平，佔收到的訂單的不到 2%。

We were pleased that orders for agricultural equipment in North America were up 26% in the first quarter versus the same period of 2024. According to the AEM's monthly tractor retail report, field inventory of tractors under 100-horsepower declined 2% in the first quarter despite retail sales for these tractors declining nearly 14% over the same period. This was partly attributable to pessimism among farmers due to ongoing concerns about the potential impact of tariffs on markets for crop exports.

我們很高興看到，第一季北美農業設備訂單與 2024 年同期相比成長了 26%。根據 AEM 的月度拖拉機零售報告，儘管 100 馬力以下拖拉機的零售量在第一季下降了近 14%，但現場庫存量卻在第一季度下降了 2%。部分原因是由於農民持續擔心關稅對農作物出口市場的潛在影響而產生的悲觀情緒。

The increased orders we reported in our view, also reflect the low level of channel inventory of our products. From the peak in early 2022, the number of our machines in the channel has declined by nearly 72%. Forestry and tree care equipment orders were also up strongly, nearly 52% this quarter compared to one year ago. This recovery was consistent across North America and Europe.

我們認為，我們報告的訂單增加也反映了我們產品的通路庫存水準較低。從2022年初的高峰來看，我們在通路的機器數量已經下降了近72%。林業和樹木護理設備訂單也強勁成長，本季與去年同期相比成長了近 52%。這種復甦在北美和歐洲是一致的。

Demand for tree care products was notably stronger while demand for the larger industrial scale chipping and grinding equipment continued to improve as the market stabilized. Mowing equipment orders from governmental agencies were up 35% versus the first quarter of 2024. This reflected not only strong demand from governmental buyers but also increasing demand for the company's unique Mantis self-propelled tool carrier platform.

隨著市場穩定，對樹木護理產品的需求明顯強勁，而對大型工業規模的切割和研磨設備的需求持續改善。與 2024 年第一季相比，政府機構的割草設備訂單增加了 35%。這不僅反映了政府買家的強勁需求，也反映了對該公司獨特的 Mantis 自行式工具運輸平台的需求不斷增長。

Finally, order bookings from the division's customers in Europe declined 12% driven lower by concerns about global trade and tariffs. The decline is also partly attributable to an unusually large order in the first quarter of 2024 in the United Kingdom that made the comparison more challenging.

最後，由於對全球貿易和關稅的擔憂，該部門歐洲客戶的訂單量下降了 12%。下降的部分原因還在於英國在 2024 年第一季的一筆異常大的訂單，這使得比較變得更具挑戰性。

Vegetation Management division first-quarter EBITDA was $20.0 million or 12.2% of net sales compared to $29.2 million or 13% of net sales in the comparison period of 2024. On a sequential basis, EBITDA improved by nearly $4.7 million, marking an improvement of 260 basis points from the fourth quarter of 2024. Positive benefits of the aggressive cost actions taken in the second half of 2024 are evident in these results.

植被管理部門第一季 EBITDA 為 2,000 萬美元，佔淨銷售額的 12.2%，而 2024 年同期為 2,920 萬美元，佔淨銷售額的 13%。與上一季相比，EBITDA 成長了近 470 萬美元，比 2024 年第四季提高了 260 個基點。這些結果明顯反映了 2024 年下半年採取的積極成本行動的正面效益。

On a consolidated basis, first quarter net sales of $391 million, although down just over 8% compared to the prior year, reflected a modest sequential improvement versus the fourth quarter of 2024. Despite the lower sales, gross margin improved slightly. Operating income of $44.5 million was down 5.4% versus the first quarter of 2024, although operating margin improved by 40 basis points on the lower revenue. This reflected the more than 10% year-over-year reduction in consolidated SG&A expenses associated with the efficiency initiatives carried out last year.

從合併口徑來看，第一季淨銷售額為 3.91 億美元，雖然與前一年相比下降了 8% 多一點，但與 2024 年第四季相比，季比略有改善。儘管銷售額下降，但毛利率略有提高。營業收入為 4,450 萬美元，較 2024 年第一季下降 5.4%，儘管營業利潤率在收入下降的情況下提高了 40 個基點。這反映了與去年實施的效率措施相關的合併銷售、一般及行政費用年減了 10% 以上。

Sequentially, operating income improved by more than $10 million or 29% due to improvement in gross margin of 250 basis points. First-quarter net interest expense also declined in line with the lower net debt. Our tax rate in the quarter was slightly higher than the first quarter of 2024, resulting in fully diluted earnings per share of $2.64, down $0.03 from the first quarter of 2024 but up $0.31 versus the fourth quarter of last year.

由於毛利率提高了 250 個基點，營業收入較上季增加了 1,000 多萬美元，增幅為 29%。第一季淨利息支出也隨著淨債務的減少而下降。本季我們的稅率略高於 2024 年第一季度，導致每股完全攤薄收益為 2.64 美元，比 2024 年第一季下降 0.03 美元，但比去年第四季上漲 0.31 美元。

The combination of the sustained strength of our industrial equipment markets, ongoing recovery of our vegetation management markets, improving internal efficiencies and a lower administrative cost structure, boast positively for company performance over the next several quarters. While tariffs and uncertainty in global markets remain as risks, we believe we are taking the right actions to prepare for their known and potential impacts.

我們工業設備市場的持續強勁、植被管理市場的持續復甦、內部效率的提高以及管理成本結構的降低，這些因素對公司未來幾季的業績起到了積極作用。儘管關稅和全球市場的不確定性仍然是風險，但我們相信我們正在採取正確的行動來應對其已知和潛在的影響。

As a result, we are pleased with the company's current position and our outlook remains optimistic regarding our prospects for the remainder of 2025. Before concluding my remarks today, I'd like to say a few words about our plans for corporate development. Agnes has provided an update on the strength of our balance sheet and our very low net debt at the end of the first quarter.

因此，我們對公司目前的狀況感到滿意，並且對 2025 年剩餘時間的前景仍然持樂觀態度。在結束今天的發言之前，我想先講幾句我們公司發展的計劃。艾格妮絲介紹了我們資產負債表的實力以及第一季末極低的淨債務情況。

As we have shared in our remarks several times recently, we are enjoying an increase in the number of opportunities for acquisitions of meaningful scale. We are encouraged at the level and quality of the opportunities we are seeing. This is the most active M&A market we've experienced for several years. We continue to actively pursue several smaller tuck-in opportunities as well that align with our strategy.

正如我們最近多次在評論中提到的那樣，我們正在享受大規模收購機會的增加。我們對所看到的機會的水平和品質感到鼓舞。這是我們幾年來經歷的最活躍的併購市場。我們將繼續積極尋求符合我們策略的幾個較小的收購機會。

This concludes our prepared remarks. We're now ready to take your questions. Operator, please go ahead.

我們的準備好的演講到此結束。我們現在準備好回答您的問題。接線員，請繼續。

(Operator Instructions) Chris Moore, CJS Securities.

（操作員指示）Chris Moore，CJS 證券。

Nice quarter. Thanks for taking a few questions. So maybe we could just get a little more specific in terms of the pain points from tariffs. My understanding is very little from Mexico, you'll need to move some production from Canada to the US and you import some drivelines from China. First of all, is that correct? And is there anything that -- anything else we should be thinking about?

不錯的季度。感謝您回答幾個問題。因此，也許我們可以更具體地談談關稅帶來的痛點。我的理解是來自墨西哥的很少，你需要將一些生產從加拿大轉移到美國，並從中國進口一些傳動系統。首先，這是正確的嗎？還有什麼——我們還應該考慮什麼嗎？

Yeah. That is broadly correct, Chris. And during the first quarter, about 70% of our consolidated revenue came from within the US and about 10% from Canada, and then the other countries around the world represented a smaller amount because of the decline in activity in Europe that I referred to.

是的。大體上是正確的，克里斯。在第一季度，我們約 70% 的綜合收入來自美國國內，約 10% 來自加拿大，而由於我提到的歐洲活動的下降，世界其他國家比例較小。

So as you think about tariffs, we're largely protected within the US market from all but the reciprocal tariffs. And as I've commented before, those will tend to flow through as cost inflation. We are starting to see some of that come from a few suppliers. On the other hand, it's been more modest than I expected in terms of percentages. So that's a positive.

因此，當你考慮關稅時，我們在美國市場基本上受到保護，除了互惠關稅之外。正如我之前評論的那樣，這些趨勢將隨著成本通膨而出現。我們開始看到其中一些來自少數供應商。另一方面，從百分比來看，它比我預期的要溫和。這是積極的。

From Canada, we export both snow removal equipment and our largest deck-type mowers. The snow removal equipment we've largely already shifted or in the process of shifting to our Wooster, Ohio facility, so that we'll be able to produce the needs for the US market inside the US and the needs from the Canadian market inside Canada. So I've been feeling very comfortable with that one.

我們從加拿大出口除雪設備和最大的甲板式割草機。我們的除雪設備大部分已轉移或正在轉移至俄亥俄州伍斯特的工廠，以便我們能夠在美國境內生產滿足美國市場需求的產品，並在加拿大境內生產滿足加拿大市場需求的產品。所以我對此感到非常滿意。

The large deck type mowers from Schulte, we're in the process of assessing what we can do with those. We're protected for the moment under the current terms of the current trade agreement. So we don't have an immediate risk there. But we could, for example, ship production of those mowers down to our facility in Selma, Alabama. It would take a little bit of time, probably a quarter or two, but it's a very doable thing for us.

我們正在評估舒爾特 (Schulte) 的大型甲板式割草機的用途。根據現行貿易協定的現行條款，我們目前受到保護。所以我們目前沒有面臨風險。但是，例如，我們可以將這些割草機的生產運送到我們位於阿拉巴馬州塞爾瑪的工廠。這可能需要一點時間，大概一到兩個季度，但對我們來說這是非常可行的。

So we're feeling pretty confident about it at the moment. We've taken all the steps we can to mitigate it. It's really these reciprocal tariffs that are a little bit of an unknown because there's Chinese content, for example, in lots of things, and we don't always know as you get down into industrial components, how much Chinese content there is when you get down into it. But we're watching it very, very closely.

因此我們目前對此非常有信心。我們已採取一切可能的措施來緩解這項影響。這些互惠關稅確實有點不為人知，因為很多東西中都含有中國成分，而我們並不總是知道，當你深入到工業零件時，其中有多少中國成分。但我們正在密切關注此事。

And we've been successful so far in pushing back on our suppliers as they saw larger increases than we felt were warranted by the actual impact of the tariffs. So at the moment, things have gone pretty well, and I'm happy with the direction of it.

到目前為止，我們成功地向供應商施壓，因為他們看到的漲幅超過了我們認為關稅實際影響所導致的漲幅。所以目前，事情進展得相當順利，我對它的發展方向感到滿意。

Got it. That's very helpful. Staying with tariffs for a second, is it fair to say that perhaps the biggest unknown right now would be the inflationary impact ultimately impact on customer demand in 2H?

知道了。這非常有幫助。再說一下關稅，是否可以說，目前最大的未知數是通膨影響最終對下半年客戶需求的影響？

Yeah, that is a fair thing, Chris. That's how I'm thinking about it. And I think that demand to change if it comes, would be mostly in non-governmental markets. I don't think it's going to impact governmentals too much. The latest information on the governmentals continues to show they're in great fiscal shape. So there's been no change there. And in fact, they're increasing their spending on all things maintenance related at the moment. So that's good to see.

是的，這很公平，克里斯。我就是這麼想的。我認為，如果需求發生變化，那麼主要將出現在非政府市場。我認為這不會對政府造成太大影響。有關政府的最新資訊繼續顯示其財政狀況良好。所以那裡沒有變化。事實上，他們目前正在增加所有與維護相關的支出。很高興看到這一點。

But a generalized recession or stagflation are the things that we should be thinking about and should be worrying about because those take all of our businesses down as they do virtually every industrial company. I see no evidence of that yet, but it certainly remains a risk. And I'm encouraged that we're starting to see some signs of peace in tariff fights that are ongoing. And obviously, the market has been reacting pretty positively to that as well. So yes, you're thinking about it correctly, Chris.

但我們應該考慮和擔心的是普遍的經濟衰退或滯脹，因為它們會拖垮我們所有的企業，就像拖垮幾乎所有的工業公司一樣。我還沒有看到這方面的證據，但這肯定仍然存在風險。我很高興看到，我們正在開始看到正在進行的關稅鬥爭中出現一些和平的跡象。顯然，市場對此也做出了相當積極的反應。是的，克里斯，你的想法是對的。

Very helpful. Maybe just a last one for me. Just in terms of pricing power, are there some products, markets where it's stronger than others? And just kind of how you're thinking about that?

非常有幫助。或許對我來說這只是最後一次。僅從定價權來看，某些產品、市場是否比其他產品、市場更強？您對此有何看法？

Yeah. We still got reasonable pricing power in the governmental and industrial segment because our lead times are still in pretty good shape compared to some of our other competitors. So that's helping us a bit. In the vegetation side, we don't have a lot of pricing power right now. The markets are just starting to crawl up off their knees. But I think that will come back relatively quickly.

是的。我們在政府和工業領域仍然擁有合理的定價權，因為與其他一些競爭對手相比，我們的交貨時間仍然相當不錯。這對我們有一點幫助。在植被方面，我們目前沒有太多的定價權。市場才剛開始復甦。但我認為這會相對較快地恢復。

And I commented last quarter, I still feel that way that the back half of 2025 is going to look significantly better in vegetation. And all the indicators continue to support that. So we may see a little bit of pricing leverage come back in that space eventually as well.

我在上個季度就評論過，我仍然覺得 2025 年下半年的植被狀況會明顯改善。所有指標都繼續支持這一點。因此，我們最終可能也會看到該領域的定價槓桿有所回升。

Very helpful. Thanks, Jeff. I'll jump back in line.

非常有幫助。謝謝，傑夫。我會重新排隊。

Michael Shlisky, D.A. Davidson.

麥可‧施利斯基、D.A.戴維森。

This is Linda Umwali on for Mike. Thank you for letting us ask questions, and congratulations on the great quarter. So my first question is, you guys reported 40 basis points year-over-year increase in operating margin despite sales being down. Can you help us understand what drove that? Was it mix or was it like the effect of your cost reductions? What were the main drivers?

我是琳達‧烏姆瓦利 (Linda Umwali)，取代麥克 (Mike)。感謝您讓我們提問，並祝賀本季取得如此出色的成績。所以我的第一個問題是，儘管銷售額下降，但你們報告的營業利潤率年增了 40 個基點。您能幫助我們了解造成這現象的原因嗎？這是混合效應還是成本削減的效果？主要驅動因素是什麼？

Linda, nice to hear you again. Let me take that first. You might remember last year in light of the downturn in Vegetation Management division, in agricultural markets, we took an initiative to cut cost. We have announced about $25 million to $30 million on 12-month basis. And so those cost initiatives -- cost-cutting initiatives have benefited us in first quarter. So as you've seen, Vegetation Management margins that is all driven from those cost reduction actions mainly. So you can see that in SG&A, you can see that in gross margin as well.

琳達，很高興再次聽到你的消息。讓我先來談談這個。您可能還記得，去年，鑑於植被管理部門在農業市場的低迷，我們採取了削減成本的措施。我們已經宣布，每 12 個月將投入約 2,500 萬至 3,000 萬美元。因此，這些成本削減措施在第一季使我們受益。如您所見，植被管理利潤主要來自於這些成本削減措施。因此，您可以在銷售、一般及行政費用中看到這一點，也可以在毛利率中看到這一點。

And Linda keep in mind, (multiple speakers) since we -- sorry, go ahead. You go ahead.

琳達請記住，（多位發言者）因為我們——抱歉，請繼續。你先走吧。

Go ahead, Jeff. Go ahead.

繼續吧，傑夫。前進。

I was just going to add a little bit of color. Since we announced those cost reduction actions, we've really much completed these two very large facility consolidations. Moving our Forestry business out of the Wooster facility up to the Winn, Michigan facility and transferring the Rhino mower production from our Gibson City, Illinois plant down to our Selma, Alabama plant. So we've gained efficiencies in those facilities as a result, and then we made a fairly significant move in the SG&A, as you can see in our financial statements. So those are really what drove it.

我只是想添加一點顏色。自從我們宣布這些成本削減措施以來，我們實際上已經完成了這兩項非常大的設施整合。將我們的林業業務從伍斯特工廠轉移到密西根州溫恩工廠，並將 Rhino 割草機生產從伊利諾伊州吉布森市工廠轉移到阿拉巴馬州塞爾瑪工廠。因此，我們提高了這些設施的效率，然後在銷售、一般和行政費用方面取得了相當大的進步，正如您在我們的財務報表中所看到的那樣。所以這些才是真正的推動因素。

Thank you both for the clarification. I remember you announcing that and it's paying off, so it's great to see. So my second question is Alamo is nearly debt-free at this point, net of cash. So now you can start putting this cash you generate that you have been putting towards the debt to other use. Can you give us a little more color on the M&A market? I know you gave us a little update but more color would be helpful.

謝謝你們兩位的澄清。我記得你宣布過這一點，而且它已經取得了成效，所以很高興看到這一點。所以我的第二個問題是，阿拉莫目前幾乎沒有債務（扣除現金）。因此，現在您可以開始將用於償還債務所賺取的現金用於其他用途。您能否向我們詳細介紹一下併購市場？我知道您給了我們一些更新，但更多的顏色會更有幫助。

And then outside of M&A, your share count is so low, but would you consider buying back shares or starting a special annual dividend may be?

那麼除了併購之外，您的股票數量如此之少，但您是否會考慮回購股票或開始特別年度股息？

Yeah. I mean our first priority is clearly M&A at this point, Linda. There's a couple of large transactions in the works that are moving at the moment, not just talk, but actually moving that are of interest to us, and we're pursuing them vigorously. And then as I commented on the call, there's a couple of nice tuck-ins for us that are moving along at a very nice pace as well. So it's clearly M&A, and we've just discussed that with our Board at length. That remains our first priority.

是的。我的意思是，琳達，我們現在的首要任務顯然是併購。目前正在籌備幾項大型交易，這些交易不只是談論，而是實際上正在進行，我們對此很感興趣，我們正在積極推動這些交易。然後，正如我在電話會議上評論的那樣，我們有一些不錯的收穫，而且進展得非常順利。所以這顯然是併購，我們剛剛與董事會就此進行了詳細討論。這仍然是我們的首要任務。

We have authority to buy back shares and for some reason, these M&A opportunities don't materialize. But I'll be very disappointed if that's the direction. I'm feeling pretty confident about the direction of the M&A at the moment.

我們有權回購股票，但由於某些原因，這些併購機會並未實現。但如果這是方向的話我會非常失望。我目前對併購的方向非常有信心。

Got it. And then lastly, on vegetation. So vegetation orders being up, that's very promising. What's your line of sight to seeing vegetation revenues increasing year over year in the back half of '25 as well as 2026?

知道了。最後，關於植被。因此，植被訂單增加，這是非常有希望的。您認為 2025 年下半年以及 2026 年植物收入將逐年增加嗎？

Yeah. That's a great question. Like I said, this is the fifth quarter in a row we've seen improvement in bookings in that part of our business and it was widespread. It was across ag as well as forestry and tree care, but the only part that was down a little bit was our European operations.

是的。這是一個很好的問題。正如我所說，這是我們連續第五個季度看到該部分業務的預訂量有所改善，而且這種改善非常普遍。它涉及農業以及林業和樹木護理，但唯一略有下降的是我們的歐洲業務。

So the backlog is building It's not building dramatically yet, but it's building and it's building consistently and the quality of the backlog looks pretty good. And the mix of the orders that coming in is actually is very favorable at the moment. So we're opportunistic or we're -- sorry, optimistic about the back half of this year looking a lot better than the last few quarters have been in that space.

因此，積壓訂單正在增加，雖然目前還沒有顯著增加，但正在增加，並且正在持續增加，積壓訂單的品質看起來相當不錯。目前收到的訂單組合實際上非常有利。因此，我們抓住機會，或者說，我們對今年下半年的情況持樂觀態度，認為該領域的情況會比過去幾季好得多。

So I feel very good about the direction of vegetation right now. And I kind of like the fact that the upward pace is modest at the moment and not another sort of ground surge as we saw during the pandemic, which obviously was not all real demand at that point. This is real demand. This is people who are putting down their money at relatively higher interest rate environment, so you know they're serious buyers.

所以我現在對植被的發展方向感覺很好。我有點喜歡這樣的事實，即目前的上漲速度適中，而不是像我們在疫情期間看到的那樣出現另一種地面激增，這顯然不是當時的全部實際需求。這是真實的需求。這些人是在相對較高的利率環境下投入資金的，所以你知道他們是認真的買家。

Nice. So if I can sneak in one more in vegetation based on what you just said. So is that to say that you've seen your dealers being more open to take on inventories in vegetation?

好的。因此，根據您剛才所說的，我是否可以在植被中再偷偷添加一個。那麼，這是否意味著您發現經銷商更願意接受植物庫存？

Yeah. It's -- I wish I could say that. That is true in forestry. Our dealers are getting more active in forestry. And again, in forestry, they don't inventory as much material as they do in ag. In the ag space, the dealers are still feeling a lot of pressure. But our situation is now pretty unique in that our inventory, our own channel inventory is remarkably low.

是的。我希望我能這麼說。在林業領域確實如此。我們的經銷商在林業領域越來越活躍。再說了，在林業中，他們庫存的材料不如農業那麼多。在農業領域，經銷商仍然感受到很大的壓力。但我們現在的情況非常特殊，因為我們的庫存，我們自己的通路庫存非常低。

I commented on the call, it's down over 70% from its peak. So at the moment, we're getting these orders based off of our own inventory. We're supporting the dealers with the inventory that's in our hands, and you saw our inventory came down as well during the quarter. So that bodes well. And our dealers have said now they will begin restocking. I think we're going to see that start to happen in the second quarter. So the direction is clearly upward at this point, although there's still a lot of pressure on these dealers.

我對這個電話發表了評論，它比峰值下降了 70% 以上。因此目前，我們是根據自己的庫存來獲取這些訂單的。我們正在利用手中的庫存為經銷商提供支持，而且您會發現我們的庫存在本季度也有所下降。所以這是個好兆頭。我們的經銷商現在表示他們將開始補貨。我認為我們將在第二季度看到這種情況開始發生。因此，儘管這些經銷商仍面臨很大壓力，但目前的趨勢顯然是向上的。

That makes sense. Thank you for your time this morning.

這很有道理。感謝您今天上午抽出時間。

Greg Burns, Sidoti & Company.

格雷格·伯恩斯（Greg Burns），Sidoti & Company。

When we consider some of the cost initiatives, the facility consolidations that you've been engaged in on the vegetation management side of the business. Are those fully complete? Or are there other kind of projects in the pipeline here that are still finishing up? And how should we think about the -- what is left to gain from these projects that you have from a cost and efficiency perspective.

當我們考慮一些成本舉措時，您在業務的植被管理方面所參與的設施整合。這些都完整嗎？或者這裡還有其他類型的項目正在籌備中並尚未完成？我們該如何思考──從成本和效率的角度來看，這些專案還能帶來什麼效益？

Greg, good to hear you again. From cost reduction initiatives, those are completed. So those have been done in the second half of last year. However, with the consolidations of the factories, we still have some work to do to gain efficiencies from our processes, from our manufacturing layouts and whatnot. So there's certainly more efficiencies coming in the pipeline.

格雷格，很高興再次收到你的來信。從降低成本的措施來看，這些都已經完成了。這些是在去年下半年完成的。然而，隨著工廠的整合，我們仍然需要做一些工作來提高流程、製造佈局等方面的效率。因此，未來肯定會有更多效率的提升。

And as always, we are -- we have quite active contingency planning. So there's always activities and planning going on. But certainly, as we look into the following quarters, there will be more benefit from efficiencies in those factories.

像往常一樣，我們有相當積極的應急計劃。因此總是有活動和計劃在進行。但可以肯定的是，當我們展望接下來的幾個季度時，這些工廠的效率提高將帶來更多好處。

Yeah, it's Jeff. There's still follow-on work we're doing that goes beyond the initially announced cost savings. There's still another plant consolidation we're working on in Europe and another one in North America. So there's still more to come. We're not resting on our laurels. So that's kind of how we're thinking about hedging the recession risk that may come here. So we're going to keep driving. We're not ready to announce the value of those yet, but we will in due course.

是的，是傑夫。我們仍在進行一些後續工作，這些工作超出了最初宣布的成本節約範圍。我們也正在進行歐洲和北美的工廠合併。因此，未來還會有更多。我們不會滿足於現狀。這就是我們對對沖可能出現的經濟衰退風險的思考方式。所以我們會繼續前進。我們尚未準備好公佈這些資產的價值，但我們會在適當的時候公佈。

Okay. And then considering the leaner cost structure on the Vegetation Management business, looking forward, as markets recover, volumes start recovering, how should we think about the margin profile of that business on a go-forward basis versus maybe where it was in the prior peaks to the market?

好的。然後考慮到植被管理業務更精簡的成本結構，展望未來，隨著市場復甦，銷量開始回升，我們應該如何看待該業務未來的利潤狀況，而不是之前的市場高峰期的利潤狀況？

Greg, in terms of percentage margin, I'll be disappointed if we don't get back at least to where we were because we've taken so much cost -- fixed cost out of that business. So we should get quite a bit of leverage as the top line recovers in that space. So we're still driving to a 15% margin target. That's where we want to go. And we don't get there if one of our divisions doesn't need it. So that's where we're going.

格雷格，就百分比利潤率而言，如果我們不能至少回到原來的水平，我會感到失望，因為我們已經從該業務中削減了太多的成本——固定成本。因此，隨著該領域的營業收入復甦，我們應該獲得相當大的槓桿作用。因此我們仍在努力實現 15% 的利潤率目標。那就是我們想要去的地方。如果我們的某個部門不需要它，我們就無法實現這一目標。這就是我們要去的地方。

So I think there's plenty of room to recover the margins. And I'm hoping we can go beyond where they were during the best period of the pandemic years. We should be able to because even in those great times, we were carrying quite a bit of facility under absorption. I've commented about that a few times. So by closing facilities, we take that fixed cost out of the business permanently. And therefore, we should see that better leverage as the market recovers.

所以我認為利潤率還有很大的復原空間。我希望我們能夠超越疫情期間最好時期的水準。我們應該能夠做到，因為即使在那些偉大的時代，我們也承受著相當多的負擔。我已對此發表過幾次評論。因此，透過關閉設施，我們可以永久地從業務中消除該固定成本。因此，隨著市場復甦，我們應該會看到更好的槓桿率。

Alright, great. Thank you.

好的，太好了。謝謝。

(Operator Instructions) Mircea Dobre, Baird.

（操作員指示）Mircea Dobre，Baird。

Just a clarification on the commentary on tariffs. The way I kind of heard you referenced those, it's mostly on finished goods and kind of where you're shifting production. But I guess what I'm wondering is, within your US business, how should we think about the impact on costs -- on your cost, whether it's components or raw materials, things of that sort that might be subject to these tariffs.

只是對關稅評論的澄清。我聽到您提到這些，主要是關於成品和生產轉移的地方。但我想知道的是，在您的美國業務中，我們應該如何考慮對成本的影響——無論是零件還是原材料，諸如此類的東西都可能受到這些關稅的影響。

Yeah. Thanks, [Mig]. That's a great question. As other industrial companies reporting, we're sort of thinking that it may flow through as a 5% increase in purchase material costs. We've seen suppliers trying to move price a little bit more than that, but it's just not warranted at this point. So that's the way we're modeling it out, but we haven't seen too much of it yet. Only a handful of suppliers have tried to push new price increases so far, so it's early days.

是的。謝謝，[米格]。這是一個很好的問題。正如其他工業公司所報告的那樣，我們認為這可能會導致採購材料成本增加 5%。我們看到供應商試圖將價格提高一點，但目前還沒有必要。這就是我們建模的方式，但我們還沒有看到太多。到目前為止，只有少數供應商嘗試推動新的價格上漲，因此現在還為時過早。

But it is all these reciprocal tariffs, Mig, as I've commented several times. Those are the ones that we'll have to work our way through, and we're going to have to manage that by both improving our own efficiencies as we continue to do as well as by really working our supply chain and working price. All three dimensions are going to have to be part of the process to work through that to hold our margins.

但正如我多次評論的那樣，這些都是互惠關稅，米格。這些都是我們必須努力解決的問題，我們必須透過不斷提高我們自己的效率以及真正運作我們的供應鏈和價格來管理這些問題。所有這三個維度都必須成為這個過程的一部分，以保持我們的利潤。

So -- I'm sorry, that 5% that was as a percentage of the cost of goods sold? Is that the way to think about it?

那麼——抱歉，那 5% 是佔銷售成本的百分比嗎？是這樣思考的嗎？

No, of purchase material cost, Mig.

不，採購材料成本，Mig。

And can you -- right. So can you size that in terms of dollars or percentage of cost of goods sold?

你能嗎——對吧。那麼，您能用美元或銷售成本的百分比來衡量嗎？

I can't do it in terms of dollars out of my head. But in terms of actual cost of goods sold, it would be something like 1% to 2% between -- you peel off what we manufacture ourselves, which is large because our facilities are vertically integrated and peel labor back out, and that's what you'd be left with.

我無法僅憑金錢來做這件事。但就實際銷售成本而言，大約在 1% 到 2% 之間——剝離我們自己生產的部分，這個比例很大，因為我們的設施是垂直整合的，剝離勞動力，這就是剩下的部分。

Okay. So it would be a 5% increase on 1% to 2% of cost of goods sold, you're saying?

好的。所以您是說銷售成本將在 1% 到 2% 的基礎上增加 5% 嗎？

Yeah. No, that's not what I am saying. It would be a 1% to 2% impact on cost of goods sold, 5% of purchase materials. It gets diluted because we produce a portion of our cost of goods sold ourselves, right, from raw materials, and we add the labor. So you asked me at cost of goods sold level, it would be 1% to 2%.

是的。不，我不是這個意思。這將對銷售成本產生 1% 到 2% 的影響，對採購材料產生 5% 的影響。它被稀釋了，因為我們自己生產了一部分銷售成本，用原料，再加上勞動力。所以你問我銷售成本水準應該是 1% 到 2%。

Understood. I apologize. I just wanted to make sure that I understand all of that.

明白了。我很抱歉。我只是想確保我理解了所有這些。

That's fine.

沒關係。

And then I'm also wondering your thoughts on steel prices and maybe it is a good reminder here in terms of how important steel is for you in overall cost structure because we've obviously seen higher steel costs after the tariffs were enacted back in March. So I'm curious how you think that's going to flow through.

然後，我也想知道您對鋼鐵價格的看法，也許這可以很好地提醒您，鋼鐵在整體成本結構中對您來說有多重要，因為自 3 月份關稅實施以來，我們顯然看到鋼鐵成本上漲。所以我很好奇你認為這將如何進行。

Those we've largely already passed on to the market Mig. We react really quick to those because we're used to these cycles in steel prices. They've been fluctuating quite a bit over the last few years. So we're pretty good at reacting to that. We track it very closely across the company, and we produce reports every month of the steel price we're paying in every facility we have around the world.

我們已經將這些大部分傳遞給了 Mig 市場。我們對此反應非常迅速，因為我們已經習慣了鋼鐵價格的周期變化。過去幾年中，它們波動很大。所以我們對此的反應相當好。我們在整個公司範圍內密切追蹤這一情況，並每月發布我們在世界各地每個工廠支付的鋼材價格報告。

And then we bench those to the metals indexes around the world to London Exchange, the American Metals Exchange, and so on, to make sure we're tracking the indexes very closely and not being taken advantage of in any way. We document those and then we pass them on to our customers. And our customers are very used to that. That doesn't shock them at all.

然後，我們將其與倫敦交易所、美國金屬交易所等世界各地的金屬指數進行比較，以確保我們密切追蹤這些指數並且不會以任何方式被利用。我們將這些記錄下來，然後傳遞給我們的客戶。我們的客戶對此非常習慣。這根本不會讓他們震驚。

Understood. And then my final question. I think in your prepared remarks, you mentioned that you would give us some color on Q2 and perhaps I missed it, but again, how do you think about Q2 relative to Q1 for each segment?

明白了。這是我的最後一個問題。我想在您準備好的發言中，您提到您會對 Q2 進行一些說明，也許我錯過了，但是，您如何看待 Q2 相對於 Q1 在每個部分的表現？

Yeah. Okay. So I think let's start with the easy one. Vegetation Management will continue to rise slowly both in terms of sales and margin, that's my expectation. We've got all the cost of the cost, if you want to call it that, the impact of the cost reduction programs, the costs associated with those are behind us. So we should start to see that margin in Vegetation expand as we did in this quarter. It's sequentially improving, and I think it will sequentially improve again in Q2.

是的。好的。所以我想讓我們從簡單的開始。我的預期是，植被管理的銷售和利潤率都將繼續緩慢上升。我們已經承擔了所有成本，如果你想這樣稱呼它的話，成本削減計劃的影響，以及與這些相關的成本都已經過去了。因此，我們應該開始看到植被的利潤率擴大，就像本季一樣。它正在逐步改善，我認為它在第二季將再次逐步改善。

In Industrial, I think we'll continue to also see an expansion of both sales and margin, both Q2 and Q3 and Industrial will look quite good. The backlog in that division is back above $0.5 billion again, and the quality of the backlog is really good. You'd commented in Q4 about the short orders at that time. And I think I said it was mostly timing. And so you've seen the timing sort of catch up now in the first quarter, which was very gratifying to see.

在工業領域，我認為我們將繼續看到銷售額和利潤率的擴大，第二季和第三季以及工業領域的表現都將相當不錯。該部門的積壓訂單再次回升至 5 億美元以上，而且積壓訂單的品質非常好。您曾在第四季對當時的短訂單情況進行過評論。我認為我說過這主要是一個時機問題。因此，您已經看到第一季的時間趕上來了，這是非常令人欣慰的。

So I think that we're going to see a nice improvement in Q2 in Industrial and another sequential improvement in Vegetation in the second quarter.

因此我認為我們將在第二季度看到工業領域的良好改善，並在第二季度看到植被領域的再次連續改善。

Alright, thank you.

好的，謝謝。

With no further questions, this will conclude our question-and-answer session. I would like to turn the conference back over to management for any closing remarks.

如果沒有其他問題，我們的問答環節就結束了。我想將會議交還給管理階層，請他們發表結束語。

Thank you for joining us today on the call. We look forward to speaking with you on our first quarter conference call in August.

感謝您今天參加我們的電話會議。我們期待在八月的第一季電話會議上與您交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。