Alamo Group Inc (ALG) 2025 Q2 法說會逐字稿

Good day, and welcome to the Alamo Group, Inc. second-quarter 2025 conference call. (Operator Instructions)

大家好，歡迎參加 Alamo Group, Inc. 2025 年第二季電話會議。（操作員指示）

I would now like to turn the conference over to Mr. Edward Rizzuti, EVP, Corporate Development and Investor Relations. Please go ahead, sir.

現在，我想將會議交給企業發展和投資者關係執行副總裁 Edward Rizzuti 先生。先生，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.

謝謝。現在，你們都應該收到一份新聞稿的副本。但是，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。

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 the passcode 7888480. 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.

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 並使用密碼 7888480 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. 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.

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)。管理層將發表一些開場白，然後我們將開放熱線回答您的問題。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陳述。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，這些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'd like to thank everyone who's joined us on the conference call today and express our appreciation for your continued interest in Alamo Group. Our second-quarter results reflected a strong solid operating performance, driven by sustained strength in the governmental and industrial markets, supported by further modest improvement in the markets for our vegetation management equipment.

謝謝你，艾德。我們想感謝今天參加電話會議的所有人，並感謝你們對阿拉莫集團的持續關注。我們第二季的業績體現出強勁穩健的經營業績，這得益於政府和工業市場的持續強勁增長，以及植被管理設備市場的進一步溫和改善。

Sales increased modestly compared to the second quarter of 2024. However, operating income improved significantly as a result of the efficiency improvement measures we have successfully implemented over the past several quarters.

與 2024 年第二季相比，銷售額略有成長。然而，由於我們在過去幾季成功實施了效率改善措施，營業收入大幅提高。

I would now like to turn the call over to Agnes, who will take us through a review of our financial results for the second quarter. I will then provide additional comments on the results and say a few words about the outlook for the balance of 2025. Following our formal remarks, we look forward to your questions. Agnes, please go ahead.

現在我想把電話轉給艾格妮絲，她將帶我們回顧第二季的財務表現。然後，我將對結果提供補充評論，並對 2025 年平衡的前景發表一些看法。在我們正式發言之後，我們期待您的提問。艾格妮絲，請繼續。

Thank you, Jeff. Good morning, everyone. I am pleased to report that we delivered solid operational performance this quarter, reflecting the strength and resilience of our business model. Our Industrial Equipment division delivered impressive results. Our Vegetation Management division continued its recovery, and we are encouraged by the progress made.

謝謝你，傑夫。大家早安。我很高興地報告，本季我們取得了穩健的營運業績，反映了我們商業模式的實力和彈性。我們的工業設備部門取得了令人矚目的成就。我們的植被管理部門繼續恢復，我們對所取得的進展感到鼓舞。

Second quarter of 2025 revenue was $419.1 million compared to strong prior-year second-quarter revenue of $416.3 million. Gross profit for the quarter was $108.3 million with a margin of 25.8% of net sales compared to $108.2 million and margin of 26% for the same period last year.

2025 年第二季營收為 4.191 億美元，而去年同期第二季營收為 4.163 億美元。本季毛利為 1.083 億美元，毛利率為淨銷售額的 25.8%，而去年同期的毛利為 1.082 億美元，毛利率為 26%。

SG&A expenses were $57.1 million, which is a reduction of 6% driven by savings in Vegetation Management division. Operating income in the second quarter of 2025 was $47.1 million with an operating margin of 11.2% of net sales, reflecting an increase of 83 basis points compared to the second quarter in 2024.

銷售、一般及行政費用為 5,710 萬美元，由於植被管理部門的節省，減少了 6%。2025 年第二季的營業收入為 4,710 萬美元，營業利潤率為淨銷售額的 11.2%，與 2024 年第二季相比增加了 83 個基點。

Net income for the second quarter was $31.1 million or $2.57 per diluted share compared to net income of $28.3 million or $2.35 per diluted share last year at the same time. Almost 10% increase in the net income was driven by stronger operating results.

第二季淨收入為 3,110 萬美元，即每股攤薄收益 2.57 美元，而去年同期淨收入為 2,830 萬美元，即每股攤薄收益 2.35 美元。淨收入成長近 10%，這得益於更強勁的經營業績。

Interest expense decreased $2.4 million compared to the same period in 2024, driven by significantly lower debt levels. Lower interest expense helped offset unfavorable impact of the revaluation of US dollar-denominated monetary assets held in our Canadian entities. The provision for income tax was $10.3 million, resulting in an effective tax rate of approximately 24.9% compared to 24.8% in the second quarter of 2024.

由於債務水準大幅下降，利息支出與 2024 年同期相比減少了 240 萬美元。較低的利息支出有助於抵銷我們加拿大實體持有的美元計價貨幣資產重估帶來的不利影響。所得稅準備金為 1,030 萬美元，導致有效稅率約為 24.9%，而 2024 年第二季為 24.8%。

With that overview, let's take a look at -- take a closer look at the performance of our divisions. Vegetation Management division reported net sales of $178.4 million, a 15.7% reduction compared to the second quarter of 2024. While this was a reduction compared to the strong quarter in 2024, it was an 8.8% sequential improvement as bookings and backlog have stabilized.

透過這個概述，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 1.784 億美元，與 2024 年第二季相比下降 15.7%。雖然與 2024 年強勁的季度相比有所下降，但由於預訂量和積壓訂單量趨於穩定，環比增長了 8.8%。

Operating income for this division was $12.8 million, representing 7.1% of net sales. The impact of lower revenue compared to the second quarter of 2024 was partially offset by savings from the cost reductions taken in 2024.

該部門的營業收入為 1,280 萬美元，佔淨銷售額的 7.1%。與 2024 年第二季相比，收入下降的影響被 2024 年成本削減帶來的節省部分抵消。

Industrial Equipment division net sales were another record $240.7 million, representing an impressive 17.6% organic growth compared to the second quarter of 2024. Growth in the second quarter was driven by strong sales across the division, especially notable were sales of vacuum trucks as well as snow removal equipment. Operating income was also a record $34.3 million or 14.3% of net sales, which was a 100 basis point improvement compared to the same period last year, a result of growth and our operational excellence initiatives.

工業設備部門淨銷售額再創紀錄，達到 2.407 億美元，與 2024 年第二季相比，有機成長率高達 17.6%。第二季的成長得益於整個部門的強勁銷售，尤其值得注意的是真空卡車和除雪設備的銷售。營業收入也創下了 3,430 萬美元的紀錄，佔淨銷售額的 14.3%，與去年同期相比提高了 100 個基點，這是成長和卓越營運舉措的結果。

Moving on to the balance sheet, we maintain a strong financial position and flexibility to support ongoing initiatives and future investments. Our total assets of $1.558 billion at the end of second quarter increased by $51.7 million compared to last year at the same time. An increase in cash and cash equivalents were partially offset by a decrease in accounts receivable and inventory. We reduced our accounts receivable by $32.3 million to $356.2 million, also representing a reduction in days sales outstanding by about three days compared to the same period in 2024.

談到資產負債表，我們保持強勁的財務狀況和靈活性，以支持正在進行的計劃和未來的投資。我們第二季末的總資產為 15.58 億美元，與去年同期相比增加了 5,170 萬美元。現金和現金等價物的增加被應收帳款和庫存的減少部分抵銷。我們的應收帳款減少了 3,230 萬美元，至 3.562 億美元，與 2024 年同期相比，未收帳款天數也減少了約三天。

Inventory of $372.1 million was also reduced by $13.1 million compared to last year. Reductions we achieved in Vegetation Management division were offset by increase in Industrial Equipment division. Higher inventory in the Industrial Equipment division supports double-digit growth in that division.

3.721億美元的庫存也比去年減少了1,310萬美元。植被管理部門的減幅被工業設備部門的增幅所抵消。工業設備部門的庫存增加支持了該部門的兩位數成長。

As a result of our disciplined cash management, the operating cash flow year to date was $36.9 million. At the end of second quarter 2025, our total debt was $213.1 million and debt net of cash was $11.3 million. This was an improvement of $163.8 million or 93.5% compared to the second quarter in 2024, driven by strategic debt reduction and strong cash generation.

由於我們嚴格的現金管理，今年迄今的營運現金流為 3,690 萬美元。截至 2025 年第二季末，我們的總債務為 2.131 億美元，扣除現金後的債務淨額為 1,130 萬美元。與 2024 年第二季相比，這一數字增加了 1.638 億美元，增幅為 93.5%，這得益於戰略性債務削減和強勁的現金產生。

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 remain focused on driving growth and optimization in 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了每股 0.30 美元的季度股息。隨著我們不斷前進，我們將繼續致力於推動營運的成長和優化。

Thank you. I'll turn it back over 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's on the call with us this morning. In the second quarter, our markets continued to develop in accordance with our expectations and improvements in operating efficiencies, combined with lower costs contributed to the improved earnings per share.

謝謝你，艾格妮絲。我還想對今天早上與我們通話的每個人表示個人歡迎。第二季度，我們的市場持續按照預期發展，營運效率的提高，加上成本的降低，促進了每股盈餘的提高。

Demand remained robust in the government and industrial contractor segments, and our Industrial Equipment division had another excellent quarter. Sales in the division were up nearly 18% compared to the second quarter of 2024, with all of this growth being organic. Sales of excavators, vacuum trucks, street sweepers, highway safety vehicles, and snow removal equipment all improved nicely.

政府和工業承包商領域的需求依然強勁，我們的工業設備部門又度過了一個出色的季度。該部門的銷售額與 2024 年第二季度相比增長了近 18%，而且全部都是有機增長。挖土機、真空卡車、街道清掃車、公路安全車輛和除雪設備的銷售量均有良好成長。

Manufacturing facility utilization remained quite strong and resulted in higher efficiencies that supported the expansion of operating margin in this division. The combination of strong sales growth and improved efficiencies contributed to a 100 basis point expansion of the division's operating income.

製造設施利用率仍然很高，從而提高了效率，支持了該部門營業利潤率的擴大。強勁的銷售成長和效率的提高促使該部門的營業收入擴大了 100 個基點。

Industrial Equipment division EBITDA of 16.7% improved 60 basis points compared to the second quarter of 2024. The order backlog in the Industrial Equipment division remained quite good at nearly $510 million, providing us very good visibility and confidence through the second half of the year and into the early months of 2026.

工業設備部門 EBITDA 為 16.7%，與 2024 年第二季相比提高了 60 個基點。工業設備部門的訂單積壓仍然相當不錯，接近 5.1 億美元，為我們在今年下半年和 2026 年初提供了非常好的可視性和信心。

Second-quarter order bookings in this division were up nearly 21% compared to the second quarter of 2024, primarily driven by exceptionally strong orders for vacuum trucks. On a year-to-date basis, Industrial division orders are up over 10% compared to the first half of 2024.

該部門第二季的訂單量與 2024 年第二季相比成長了近 21%，這主要得益於真空卡車訂單的異常強勁。從年初至今，工業部門訂單與 2024 年上半年相比成長了 10% 以上。

Markets for the company's Vegetation Management equipment continued to improve at a modest but steady pace, and there were several positive indicators pointing to an improved market conditions that were evident during this quarter. Notably, this was the division's fifth sequential quarter of improvement in order bookings. Second-quarter order bookings were nearly 10% higher than the second quarter of 2024, and year-to-date orders are up nearly 14% compared to the first six months of last year.

該公司植被管理設備市場繼續以溫和但穩定的速度改善，並且有多個積極指標表明本季市場狀況明顯改善。值得注意的是，這是該部門訂單量連續第五個季度增長。第二季的訂單量比 2024 年第二季高出近 10%，年初至今的訂單量與去年上半年相比成長了近 14%。

Agricultural equipment sales were down compared to the second quarter of 2024 but improved solidly on a sequential basis. Ag equipment orders in the second quarter were up firmly compared to the prior-year second quarter and were sharply higher sequentially.

與 2024 年第二季相比，農業設備銷售額有所下降，但較上季穩定提升。第二季農業設備訂單與去年同期相比穩定上升，且較上季大幅成長。

Sales of governmental mowers further improved in North and South America but declined somewhat in Europe compared to the second quarter of 2024. We saw a partly similar pattern in Forestry and Tree Care. Sales in the Forestry and Tree Care group declined relative to the second quarter of 2024 but improved nicely on a sequential basis.

與 2024 年第二季相比，北美和南美的政府割草機銷售量進一步改善，但歐洲的銷售量有所下降。我們在林業和樹木護理領域也看到了部分類似的模式。林業和樹木護理集團的銷售額相對於 2024 年第二季度有所下降，但環比有所改善。

Orders in these product lines also increased compared to the second quarter of 2024. We were encouraged to see that US residential housing starts were somewhat higher this quarter, but we continue to believe that an interest rate relief is needed to restore and sustain momentum in this part of the division.

與 2024 年第二季相比，這些產品線的訂單也有所增加。我們很欣慰地看到，本季度美國住宅開工量略有上升，但我們仍然認為，需要降低利率來恢復和維持該部門的勢頭。

Overall, despite the positive improvement in trends and markets for this division's products remained under pressure, dealers remain cautious regarding new inventory commitments on their balance sheets because of the higher floor plan interest rates. Although Vegetation Management division sales declined 16% compared to the second quarter of 2024, it was encouraging to note the solid 9% improvement sequentially.

總體而言，儘管該部門產品的趨勢和市場出現積極改善，但仍面臨壓力，由於樓層平面圖利率較高，經銷商對其資產負債表上的新庫存承諾仍持謹慎態度。儘管植被管理部門的銷售額與 2024 年第二季度相比下降了 16%，但令人鼓舞的是，其銷售額環比穩步增長了 9%。

Sequential improvement was mostly attributable to better performance from its North American ag equipment business and to a lesser extent, from Forestry and Tree Care. This division's results also benefited from better efficiencies resulting from plant consolidations completed last year as well as from significant reduction in sales, general and administrative costs. The division's operating margin declined 50 basis points to 7.1% of net sales, while EBITDA declined 120 basis points compared to the second quarter of 2024.

連續的改善主要歸功於其北美農業設備業務的更好表現，其次是林業和樹木護理業務的表現較好。該部門的業績也受惠於去年完成的工廠合併帶來的效率提高以及銷售、一般和管理成本的大幅降低。該部門的營業利潤率下降 50 個基點，至淨銷售額的 7.1%，而與 2024 年第二季相比，EBITDA 下降了 120 個基點。

On a consolidated basis, the company's solid second-quarter results aligned with our expectations. Sales increased modestly on a consolidated basis compared to the second quarter of 2024 but rose more than 7% compared to the first quarter of this year, driven by strong organic growth in the Industrial Equipment division.

從綜合來看，該公司第二季的穩健業績符合我們的預期。與 2024 年第二季度相比，銷售額在合併基礎上略有增長，但與今年第一季相比增長了 7% 以上，這得益於工業設備部門強勁的有機增長。

Consolidated operating margin improved 83 basis points to 11.2%, and net income improved by nearly 10% compared to the second quarter of 2024. Second-quarter earnings per share of $1.57 improved 9% net of a $0.21 per share impact of foreign exchange headwinds from the US dollar revaluation in our Canadian operations.

綜合營業利潤率提高 83 個基點至 11.2%，淨收入與 2024 年第二季相比提高近 10%。第二季每股收益為 1.57 美元，扣除加拿大業務因美元升值而產生的外匯不利影響（每股 0.21 美元）後，成長了 9%。

Turning now to our outlook for the balance of 2025, we remain optimistic about the company's prospects for the next several quarters and beyond. While risks and uncertainty associated with tariffs remain, the combination of sustained strength of our Industrial Equipment markets, further recovery in Vegetation Management markets, improving internal efficiencies, and a lower administrative cost structure continue to point to positive development of company performance for the next several quarters.

現在回顧我們對 2025 年平衡的展望，我們仍然對公司未來幾季及以後的前景持樂觀態度。儘管與關稅相關的風險和不確定性仍然存在，但我們工業設備市場的持續強勁、植被管理市場的進一步復甦、內部效率的提高以及較低的管理成本結構，繼續預示著未來幾季公司業績將呈現積極的發展。

We were very pleased to complete the tuck-in acquisition of Ring-O-Matic in the second quarter as their vacuum excavation equipment nicely complements our vacuum truck and excavator product line and offers potential to accelerate growth in our equipment rental business. Ring-O-Matic employs a group of exceptional employees, and we're thrilled to have them join the Alamo Group team.

我們非常高興在第二季度完成對 Ring-O-Matic 的收購，因為他們的真空挖掘設備很好地補充了我們的真空卡車和挖土機產品線，並有可能加速我們的設備租賃業務的成長。Ring-O-Matic 僱用了一群優秀的員工，我們很高興他們加入 Alamo Group 團隊。

With the company's net debt approaching 0, we're in a strong position to exploit our increasingly active M&A pipeline. We're encouraged by the quantity and quality of the actionable corporate development opportunities we've identified and are pursuing to accelerate corporate growth.

隨著公司的淨債務接近 0，我們有能力利用日益活躍的併購管道。我們對所發現的可行企業發展機會的數量和品質感到鼓舞，並且我們正在努力加速企業發展。

This concludes our prepared remarks. We are 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你們的問題。接線員，請繼續。

(Operator Instructions) Chris Moore, CJS Securities.

（操作員指示）Chris Moore，CJS 證券。

Congrats on a great quarter. Maybe we'll just follow up on some of the stuff you're talking about, Jeff. So from a visibility standpoint, it sounds like Industrial is looking good, at least into early '26. Can you maybe just talk a little bit more about Vegetation for Q4 and your thoughts in terms of these improving orders continuing that trend?

恭喜本季取得優異成績。也許我們會跟進你正在談論的一些事情，傑夫。因此，從可見性的角度來看，工業看起來不錯，至少到 26 年初是如此。您能否再多談談第四季的植被狀況，以及您對這些不斷改善的訂單如何延續這一趨勢的看法？

Yes. I think we're likely to see that trend continue for the next several quarters at least, Chris. I mean we're coming from a very low point, as you know. So the climb out has to be consistent, and I think it will be. I was very encouraged to see how much the ag market recovered during this quarter.

是的。克里斯，我認為我們可能會看到這種趨勢至少在接下來的幾個季度持續下去。我的意思是，如你所知，我們正處於一個非常低的階段。因此，攀登必須保持一致，我認為將會如此。我很高興看到本季農業市場復甦如此快速。

It was actually a little better than I thought. And Forestry was maybe not as quite as good as I thought it was going to be. But Forestry is the bigger ticket, more expensive items, and there we definitely could benefit from some interest rate relief, which I'm hoping one of these days we're going to see.

事實上比我想像的要好一點。林業可能不像我想像的那麼好。但林業是更大、更昂貴的項目，我們肯定可以從一些利率減免中受益，我希望有一天我們會看到這一點。

But all in all, the activity level is improving, and I think the dealer sentiment is slowly improving as well despite ongoing headwinds in ag. Commodity pricing still isn't brilliant at the moment. But overall, we're encouraged. And I think that's partly just because there's so much inelasticity in our pipeline at the moment. I've shared with you in previous quarters that our pipeline is exceptionally low of inventory in the field. So it doesn't take much to drive the orders higher at this point.

但總的來說，活動量正在改善，我認為儘管農業領域持續面臨阻力，經銷商情緒也在慢慢改善。目前大宗商品定價仍不太好。但總體而言，我們感到鼓舞。我認為部分原因是因為我們目前的管道缺乏彈性。我在前幾個季度曾與大家分享過，我們的庫存管道極低。因此，目前不需要花費太多精力就能提高訂單量。

So we feel very good about where we're going. The reduction in the cost structure is significant in that division, and we're maintaining it. And the plant consolidations are finally starting to see the efficiency improvements we were counting on particularly in ag. The consolidation of our two big ag plants late last year is finally starting to show real benefits we expected to see.

因此，我們對於自己的發展方向感到非常滿意。該部門的成本結構已顯著降低，並且我們正在維持這一趨勢。工廠合併終於開始實現我們所期望的效率提升，特別是在農業領域。我們兩家大型農業工廠去年年底的合併終於開始顯現出我們預期的真正效益。

So overall, I'm encouraged. The markets were a little bit better in that space than I thought. And I think the climb out is clear, and I think it will continue for at least several quarters from what I can see.

總的來說，我感到很受鼓舞。該領域的市場比我想像的要好一些。我認為復甦勢頭很明顯，而且就我所見，這種勢頭至少還會持續幾個季度。

Terrific. So far, direct pain points from tariffs, including shifting production from Canada to the US have been manageable. The issue you've talked about in the past is the potential inflationary impact, impact on demand. Just curious what you're seeing at this point. Are there kind of specific product lines that would be more at risk?

了不起。到目前為止，關稅帶來的直接痛點，包括將生產從加拿大轉移到美國，都是可以控制的。您過去談到的問題是潛在的通膨影響和對需求的影響。只是好奇你現在看到了什麼。是否有特定的產品線面臨更大的風險？

The biggest risk overall is to our snow removal group, and it's really a US-Canada issue, as I've told you before. But we've largely mitigated that risk by shifting a good deal of that production from Canada into the US into our plant here in Ohio. We're at the Gradall facility today for what that's worth.

總體而言，最大的風險是我們的除雪小組，而且正如我之前告訴過你們的，這實際上是一個美加問題。但我們透過將大量生產從加拿大轉移到美國俄亥俄州的工廠，在很大程度上降低了這種風險。今天我們來到了 Gradall 工廠，看看它的價值。

So I don't see that being as too bad. And the inflation side has been actually pretty decent. In other words, the pressure on our purchase prices has been far less significant than I think Agnes and I anticipated. So so far, we're navigating the tariffs pretty effectively, and I'm very happy with that.

所以我認為這並不太糟。通貨膨脹方面其實已經相當不錯了。換句話說，我們購買價格的壓力遠比我和艾格妮絲預期的要小。到目前為止，我們對關稅的處理相當有效，我對此感到非常高興。

Got it. Perfect. And maybe just last one. We're at better than $1.6 billion this year, $925 million-plus Industrial. Just wondering from an Industrial standpoint, how much existing infrastructure can handle from a revenue standpoint before you'd have to add a little capacity?

知道了。完美的。也許只是最後一個。今年我們的收入超過 16 億美元，其中工業收入超過 9.25 億美元。只是從工業角度考慮，在必須增加一點容量之前，現有基礎設施從收入角度可以處理多少？

I think we're okay yet because our plant in Wisconsin is not overwhelmed yet. We still have some capacity there. Our Ohio plant where we are today is busy for sure. The backhaul product line has been doing very well, and so sales have been up across that product line pretty sharply. But we've still got plenty of capacity in Wisconsin that we can go after.

我認為我們還好，因為我們在威斯康辛州的工廠還沒有不堪重負。我們在那裡仍有一定的產能。我們今天所在的俄亥俄州工廠肯定很忙。回程產品線表現非常好，因此整個產品線的銷售額都大幅成長。但我們在威斯康辛州仍有足夠的產能可供利用。

And we have other facilities, as you know, our Huntsville facility still has some capacity. So we're not feeling too much pressure yet, Chris, with that. I think labor is the bigger constraint again. We're starting to see labor tighten again as sort of like we did during the pandemic, and that's something we're watching very closely.

我們還有其他設施，如您所知，我們的亨茨維爾設施仍有一定的產能。所以，克里斯，我們還沒有感受到太大的壓力。我認為勞動力再次成為更大的限制。我們開始看到勞動力再次收緊，就像大流行期間一樣，這是我們正在密切關注的事情。

(Operator Instructions) Mig Dobre, Baird.

（操作員指示） Mig Dobre，Baird。

Back to Vegetation Management, what's the right way to think about revenue here in the back half of the year? And I'm wondering in terms of both kind of how you've seen demand play out, but also in theory, there should be some seasonality here that we have to kind of take into account.

回到植被管理，如何正確看待下半年的收入？我想知道您如何看待需求的發揮，但從理論上講，這裡應該有一些季節性因素需要我們考慮。

Yes. I think the seasonality will start to show up again in the fourth quarter, Mig. But I think as long as we can keep building the backlog it will be in a better position. The book and bill has been over 1% again, which is nice to see. So the business is re-inflating not as fast as we'd like, obviously.

是的。我認為季節性將在第四季度再次顯現，Mig。但我認為，只要我們能夠繼續積累，情況就會變得更好。書籍和帳單再次超過 1%，這令人欣慰。因此，業務復甦的速度顯然沒有我們想像的那麼快。

But I think you're going to see a slow build of inventory. I don't think it's going to be dramatic for the remainder of this year, but I think it will start to build again. As we've seen, we've seen that for the past several quarters. We keep talking about the sequential improvements, and I think those will continue.

但我認為你會看到庫存緩慢增加。我認為今年剩餘時間不會出現劇烈波動，但我認為它會再次開始好轉。正如我們所見，過去幾個季度我們已經看到了這種情況。我們一直在談論連續的改進，我認為這些改進將會持續下去。

So I'm sorry, just to be clear here, your $178 million of revenue in Q2, you're saying that we continue to build sequentially here in Q3 and into Q4 as the year progresses?

所以很抱歉，我只是想澄清一下，您第二季的營收為 1.78 億美元，您是說隨著時間的推移，我們會在第三季和第四季繼續連續成長嗎？

I think so. I mean there's still some uncertainty out there on the Forestry side, not so much in the ag side, but in the Forestry side, there's still some uncertainty there. We've still seen some order cancellations in Forestry, Mig, so that's -- we're not completely out of the woods there. But my assessment is, I think revenue will continue to build but very slowly in that division.

我認為是的。我的意思是，林業方面仍然存在一些不確定性，農業方面不是那麼多，但在林業方面，仍然存在一些不確定性。我們仍然看到一些林業、米格等行業的訂單被取消，所以我們還沒有完全脫離困境。但我的評估是，我認為該部門的收入將繼續增加，但成長速度非常緩慢。

Yeah, I would agree with that. Maybe if I could add something. I would agree with that. We are feeling a little more confident on the ag side. Orders have been growing pretty nicely over there, and productivity in the plant after consolidation has been improving. So on the ag side, we're feeling a little bit better, but I would agree with what Jeff had mentioned about Forestry.

是的，我同意。也許我可以添加一些東西。我同意這一點。我們對農業方面更有信心了。那裡的訂單成長相當不錯，合併後工廠的生產率也在提高。因此，在農業方面，我們感覺好一點，但我同意傑夫提到的關於林業的觀點。

And then my follow-up, you mentioned in the press release that the margin in Vegetation still reflected some of the effects of the recent facility consolidation costs. Maybe it would be helpful to call out what these costs are, maybe magnitude, the nature of the cost. I mean you're obviously not adjusting them out. And at what point in time should we expect this drag to be done with? And implicitly, what would that mean for margins going forward as you kind of lap all of this?

然後我的後續問題是，您在新聞稿中提到，植被的利潤率仍然反映了近期設施整合成本的一些影響。或許指出這些成本是什麼、成本的大小、成本的性質會有所幫助。我的意思是你顯然沒有調整它們。我們預計這種拖延什麼時候會結束？那麼，當你把所有這些都考慮進去時，這對未來的利潤率意味著什麼？

Yes. I will take this one. What we're referring to in terms of gross margin is productivity. As these plants have consolidated, there was a couple of capital projects needed to complete and simple learning curve. And that has been improving.

是的。我要這個。我們所說的毛​​利率指的是生產力。隨著這些工廠的合併，需要完成一些資本項目和簡單的學習曲線。而這種情況一直在改善。

So in our plant in the US ag in Selmer, that certainly has been improving, and productivity will improve in the second half. And we're still working. We still have a little more lift in our plant in the Forestry in Winn, Michigan. So that's related to productivity.

因此，在我們位於美國塞爾默的工廠，情況肯定一直在改善，下半年的生產力將會提高。我們仍在努力。我們位於密西根州溫恩市林業工廠的產能仍有待增加。這與生產力有關。

Can you quantify that? Let me ask the question differently. If for Jeff's comments, we're thinking that revenue maybe gets a little bit better in Q3 and in Q4, is it reasonable to expect margins to improve sequentially relative to Q2 as well?

你能量化嗎？讓我換個方式問這個問題。如果根據傑夫的評論，我們認為第三季和第四季的營收可能會有所好轉，那麼預期利潤率相對於第二季也會較上季提高是否合理？

Yes. I would not say that, Mig, for what it's worth because we still have a fairly unfavorable mix in Forestry at the moment. And I did comment, I think, on the call that -- or at least I did on the previous call, that it's the large Forestry equipment that still remains down.

是的。米格，我不會這麼說，因為目前我們的林業狀況仍然相當不利。我認為，我在電話會議上確實評論過——或者至少我在上次電話會議上評論過，大型林業設備仍然處於停工狀態。

The tree care side is coming back nicely, but the margins in the tree care side, the smaller products are not what they are in the big industrial machines. So the mix is still relatively unfavorable in Forestry, and we're still working through some demand on the inventory side, I mentioned with dealer cancellations and so on.

樹木護理方面正在順利恢復，但樹木護理方面、小型產品的利潤率並不像大型工業機器那樣。因此，林業的市場結構仍然相對不利，我們仍在努力解決庫存方面的一些需求，例如我提到的經銷商取消訂單等等。

So I wouldn't factor in too much of a margin improvement for the next quarter at least. I think if we see it will be more like a Q4 event in that side of the business in Forestry and Tree Care. And I think we could probably give you a shot at quantifying it, but I don't think we want to do that on this call today and maybe on the after call.

因此，至少在下一季度，我不會認為利潤率會有太大的提高。我認為，如果我們看到它將更像是林業和樹木護理業務領域的第四季度事件。我認為我們或許可以給你一個量化的機會，但我認為我們不想在今天的電話會議或之後的電話會議中這樣做。

Okay. Then final question for me. Jeff, we talked in the past about your intent to retire and looking for a replacement for you. We're sitting here in August. We haven't -- at least I haven't heard anything new on the matter. So I'm wondering kind of how your thinking has evolved? And what's going on in terms of internal, external candidates, how is the Board looking at this?

好的。那我的最後一個問題是什麼呢？傑夫，我們以前談過你打算退休並尋找接替你的人。八月，我們坐在這裡。我們沒有——至少我沒有聽到有關此事的任何新消息。所以我很好奇你的想法是如何演變的？那麼內部和外部候選人的情況如何？董事會對此有何看法？

Okay. I can give you a very satisfying answer to that, Mig for what it's worth. We're with our Board of Directors here in Ohio this week. The process is going exactly according to the plan, and I think you're going to see it reach a conclusion in the third quarter. So yes, it's getting more close for sure.

好的。我可以給你一個非常滿意的答案，Mig，不管它值多少錢。本週，我們與董事會一起在俄亥俄州。整個過程正按照計劃進行，我認為您將在第三季度看到它得出結論。是的，它肯定會越來越接近。

So -- and that's both a happy and a sad thing for me personally. We've got a very active M&A pipeline, as I commented on the call, and I certainly want to see the company pilot its way through that with success. So I've offered to stay involved as much or as little as needed going forward. And that's about all I can say about it. But the actual succession process is well advanced at this point.

所以——對我個人而言，這既是一件高興的事，也是一件悲傷的事。正如我在電話會議上評論的那樣，我們擁有非常活躍的併購管道，我當然希望看到公司成功完成這項試點。因此，我表示願意繼續參與，無論多或少。這就是我能說的全部。但目前實際的繼任進程已經進展順利。

(Operator Instructions) Mike Shlisky, D.A. Davidson.

（操作員指示）Mike Shlisky，D.A. Davidson。

I guess a couple of quick ones here. Well, maybe the first one is not that quick. It's about capital allocation. I know you're pursuing some M&A deals. It sounds like despite the strong orders in Industrial and the backlog, you're not pursuing any large capacity additions there.

我想這裡有幾個簡單的問題。好吧，也許第一個沒有那麼快。這是關於資本配置的問題。我知道你正在進行一些併購交易。聽起來，儘管工業訂單強勁且積壓訂單較多，但你們並沒有在那裡尋求任何大規模產能的增加。

I was wondering if you had any thoughts about trying to enter any new product categories with the amped up R&D budgets or other ways to put capital to work in an organically positive way.

我想知道您是否考慮利用增加的研發預算嘗試進入任何新的產品類別，或以其他方式讓資本以有機積極的方式發揮作用。

Well, we're always pursuing them, Mike. We obviously don't talk about them publicly what we've got in our R&D pipeline. But yes, we look for that growth to come partly from acquisitions, but also from organic developments inside. We really like this sort of Ring-O-Matic acquisition.

嗯，我們一直在追求他們，麥克。我們顯然不會公開談論我們的研發成果。但是，是的，我們希望這種成長部分來自於收購，也來自於內部的有機發展。我們非常喜歡這種對 Ring-O-Matic 的收購。

I know that's inorganic, but that is a new platform for us that will really drive our rental business very nicely. So we're very happy to get that one. And the response from our customers has been very positive to that. We're very encouraged by the way that should unfold under our leadership.

我知道這很不自然，但這對我們來說是一個新平台，它將真正很好地推動我們的租賃業務。所以我們很高興得到這個。我們客戶的反應非常正面。我們對在我們的領導下將要展現的景象感到非常鼓舞。

In terms of the R&D pipeline, we've had to change gears a little bit. We were investing very, very heavily in electrification and now the need or, let's say, the drive and demand for that has taken a time out for the moment.

在研發管道方面，我們必須稍微改變一下方向。我們在電氣化方面投入了巨資，但現在對電氣化的需求，或者說動力和要求已經暫時消失了。

And of course, we also have the change in emission standards coming up here in another year or two. We have to be paying attention to that and getting prepared for that. And that causes you to spend more on R&D just in the preparation phase because you have to advance all those products forward.

當然，一兩年後我們的排放標準也會改變。我們必須關注這一點並做好準備。這會導致你在準備階段花費更多的研發費用，因為你必須推動所有這些產品的發展。

In terms of new verticals that we would develop organically with inside the company. No, I don't think we've got anything major in the pipeline there that I want to talk about today. We don't need to. We've got more than adequate growth coming out of our existing initiatives.

就我們將在公司內部有機開發的新垂直領域而言。不，我認為我們今天沒有什麼重大的計劃需要我談論。我們不需要。我們現有的措施已經帶來了足夠的成長。

So capital allocation remains very heavily toward M&A at the moment. That's -- and I think that's going to be the case for the remainder of this year.

因此，目前的資本配置仍主要集中在併購方面。我認為今年剩餘時間的情況也將如此。

Great. And then I also wanted to touch on your snow business, you've done quite well for several years in a row here. And it sounds like you've got pretty decent orders last rest of this year into next.

偉大的。然後我還想談談你們的雪上生意，你們在這裡連續幾年都做得很好。聽起來您今年剩餘時間到明年的訂單都相當不錯。

Curious on the legs of that, how much of your business has become chassis plus blade and how much is still just like the blade? That's been a large part of the growth. So I kind of want to get a feel for whether there's more than one year of like legs left in your snow business.

我很好奇，你們的業務中有多少已經變成了底盤加刀片，有多少仍然像刀片一樣？這是成長的很大一部分。所以我想了解一下您的雪業務是否還能維持一年以上。

In the snow business -- so sorry, yes, we do have a lot of noise on the line, Mike, but we were both -- I'm struggling to hear your question. The snow business remains very, very active for us. And it's like the vacuum truck business. It's a little bit spiky. You get a large order and then the market takes the time out and so on.

在雪業務方面——非常抱歉，是的，麥克，我們在電話裡確實有很多噪音，但我們兩個——我很難聽清你的問題。我們的雪業務仍然非常活躍。這就像真空卡車業務一樣。有點尖銳。您收到一筆大訂單，然後市場需要時間等等。

But the activity is very strong right now, especially in Canada. There's still some significant orders to be placed there, which is encouraging. And the US market has been stable. I followed the Douglas earnings call and closely, and they were reporting an uptick in snow, which we're seeing as well.

但目前活動非常活躍，尤其是在加拿大。那裡仍有一些重要的訂單需要下達，這是令人鼓舞的。美國市場一直很穩定。我密切關注了道格拉斯的財報電話會議，他們報告說降雪量增加，我們也看到了這一點。

So there seems to be plenty of legs left in that market from my point of view, Mike, I don't see any kind of a slowdown coming there.

因此，從我的角度來看，該市場似乎還有很多發展空間，麥克，我認為那裡不會有任何放緩的跡象。

This concludes our question-and-answer session. I would like to turn the conference back over to management for any closing remarks. Please go ahead.

我們的問答環節到此結束。我想將會議交還給管理階層，請他們發表結束語。請繼續。

Thank you. This concludes our preparation for today's meeting. We look forward to speaking with you again on our third-quarter conference call in November.

謝謝。今天會議的準備工作到此結束。我們期待在 11 月的第三季電話會議上再次與您交談。

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。