安朗杰 (ALLE) 2026 Q1 法說會逐字稿

Good day, everyone. My name is Stefan and I'll be your conference operator today. At this time, I'd like to welcome you to Allegion's first-quarter earnings call. (Operator Instructions)

大家好。我叫Stefan，今天將擔任本次電話會議的接線員。此刻，我想歡迎各位參加Allegion第一季財報電話會議。(接線員指示)

At this time, I'd like to turn the call over to Jobi Coyle, Director of Investor Relations.

此刻，我想將電話交給投資人關係總監Jobi Coyle。

Thank you, Stefan. Good morning, everyone. Thank you for joining us for Allegion’s first-quarter 2026 earnings call. With me today are John Stone, President and Chief Executive Officer; and Mike Wagnes, Senior Vice President and Chief Financial Officer of Allegion.

謝謝你，Stefan。各位早安。感謝各位參加Allegion 2026年第一季財報電話會議。今天與我一同出席的有Allegion總裁暨執行長John Stone，以及資深副總裁暨財務長Mike Wagnes。

Our earnings release, which was issued earlier this morning, and the presentation, which we will refer to in today’s call, are available on our website at investor.allegion.com. This call will be recorded and archived on our website.

我們今天稍早發布的財報新聞稿，以及我們將在今天電話會議中引用的簡報，都可在我們的網站 investor.allegion.com 取得。本次電話會議將被錄音並在我們網站上存檔。

Please go to slide 2. Statements made in today’s call that are not historical facts are considered forward-looking statements and are made pursuant to the Safe Harbor provisions of Federal Securities Law. Please see our most recent SEC filings for a description of some of the factors that may cause actual results to differ materially from our projections. The company assumes no obligation to update these forward-looking statements.

請翻到第2頁。今天電話會議中非歷史事實的陳述，均屬前瞻性陳述，並依據聯邦證券法的「安全港」條款作出。請參閱我們最新的SEC申報文件，其中說明可能導致實際結果與我們預測存在重大差異的部分因素。公司不承擔更新這些前瞻性陳述的義務。

Today’s presentation and commentary include non-GAAP financial measures. Please refer to the reconciliation in the financial tables of our press release for further details. Please go to slide 3.

今天的簡報與評論包含非GAAP財務衡量指標。更多細節請參閱我們新聞稿財務表格中的調節表。請翻到第3頁。

I’ll turn the call over to John.

我將把電話交給John。

Good morning, everyone. Thanks for joining us. The Allegion team has remained agile in a volatile environment and stayed focused on serving our customers alongside our strong channel partners. In Q1, we delivered high single-digit revenue growth led by the Americas non-residential business and contributions from acquisitions.

各位早安。感謝各位加入我們。Allegion團隊在波動的環境中保持敏捷，並持續專注於與我們強大的通路夥伴一起服務客戶。第一季我們實現了高個位數的營收成長，主要由美洲非住宅業務帶動，並受惠於併購貢獻。

In the Americas, performance was in line with our expectations we outlined back in February. In our International segment, top-line growth was led by acquisitions which are on track. However, our Q1 organic revenue growth and margins in International were negatively impacted by an ERP implementation in one of our legacy mechanical businesses.

在美洲地區，表現符合我們在2月所概述的預期。在國際事業部方面，營收成長主要由併購帶動，且進展如期。然而，國際事業部第一季的有機營收成長與利潤率，受到我們某項既有機械業務導入ERP的影響而承壓。

Production rates there have started to improve, and we expect to recover the Q1 shortfall over the remainder of the year. As you’ll see on the next slide, Allegion remains committed to balanced discipline and consistent capital deployment.

該業務的產能/生產率已開始改善，我們預期將在今年剩餘期間回補第一季的缺口。如同各位在下一頁將看到的，Allegion仍致力於兼顧平衡的紀律與一致的資本配置。

Finally, with respect to our outlook for the year, we are raising our reported revenue outlook to 6% to 8% to include the DCI acquisition, and we are affirming our outlook for organic revenue growth of 2% to 4% and adjusted earnings per share of $8.70 to $8.90.

最後，關於我們對全年展望，我們將報告營收展望上調至6%至8%，以納入DCI併購；同時維持有機營收成長2%至4%以及調整後每股盈餘8.70至8.90美元的展望不變。

Please go to slide 4. Taking a look at capital allocation for the first quarter, starting with our investments for organic growth. The latest example of this is our next generation LCN Senior Swing series of auto operators for heavy use doors across healthcare, offices, and other high traffic environments. Easy to install and upkeep, these automatic door operators self-adjust in real time to external pressures like wind, allowing smooth, safe, and consistent operation while saving the building time, energy, and maintenance calls.

請翻到第4頁。來看第一季的資本配置，先從我們對有機成長的投資談起。最新的例子是我們新一代LCN Senior Swing系列自動開門機，適用於醫療照護、辦公室及其他高人流環境中的重度使用門。這些自動門機易於安裝與維護，能即時自我調整以因應風等外部壓力，提供順暢、安全且一致的運作，同時為建築節省時間、能源與維修出勤次數。

Turning to acquisitions. Earlier in March, we closed the acquisition of DCI, a West Coast-based manufacturer of hollow metal doors and frames, specializing in custom design and quick ship capability. Historically, we’ve had to rely on our Cincinnati, Ohio, manufacturing facility to serve customers on the West Coast, which extended lead times and drove higher freight costs compared to local suppliers.

接著談併購。3月稍早，我們完成對DCI的收購；DCI是位於美國西岸的中空金屬門與門框製造商，專精於客製化設計與快速出貨能力。過去，我們必須仰賴位於俄亥俄州辛辛那提的製造工廠來服務西岸客戶，導致交期拉長，且相較於在地供應商產生更高的運費成本。

DCI makes us far more competitive on the West Coast, helping the totality of our Americas non-res business, not just our door offering, as customers purchase complete door and hardware packages together. DCI today has a low double-digit EBITDA margin, resulting in limited EPS accretion in the current fiscal year. But the strategic nature of this acquisition gives us significant improvement in serving our customers at a better cost position. I’m confident our execution and pricing discipline will drive higher profitability over time and expect performance to improve moving forward.

DCI讓我們在西岸更具競爭力，並有助於我們美洲非住宅業務的整體表現，不僅限於門類產品，因為客戶通常會一併採購完整的門與五金套裝。目前DCI的EBITDA利潤率為低雙位數，因此在本會計年度對EPS的增益有限。但此併購具策略性，能讓我們以更佳的成本位置顯著提升服務客戶的能力。我有信心，我們的執行力與定價紀律將在時間推移下帶動更高的獲利能力，並預期未來表現將持續改善。

Moving to dividends. Allegion paid $47 million in dividends in the quarter, consistent with the long-term framework we outlined at our Investor Day last year. We repurchased $40 million of Allegion shares in the first quarter.

再來談股利。Allegion本季支付了4,700萬美元股利，符合我們在去年投資人日所提出的長期架構。我們在第一季回購了4,000萬美元的Allegion股票。

Our Board also recently approved a new $500 million repurchase program. As we’ve said in the past, you can expect Allegion to be balanced, disciplined, and consistent with capital deployment, oriented towards profitable growth and driving long-term returns for shareholders, including share repurchase as appropriate.

我們董事會近期也核准了一項新的5億美元回購計畫。如同我們過去所說，各位可以預期Allegion在資本配置上將保持平衡、紀律與一致性，以獲利性成長為導向，並為股東創造長期報酬，包括在適當時機進行股票回購。

Mike will now walk you through the first quarter results.

接下來Mike將帶各位回顧第一季的業績。

Thanks, John, good morning, everyone. Thank you for joining today’s call. Please go to slide number 5. Revenue for the first quarter was over $1 billion, an increase of 9.7% compared to 2025. Organic revenue increased 2.6% in the quarter, led by our Americas non-residential business.

謝謝你，John，各位早安。感謝各位參加今天的電話會議。請翻到第5頁。第一季營收超過10億美元，較2025年成長9.7%。本季有機營收成長2.6%，主要由美洲非住宅業務帶動。

The enterprise organic revenue increase was driven by price realization, partially offset by volume declines. Q1 adjusted operating margin was 21.2%, down 150 basis points compared to last year, partially driven by a combination of volume declines and mix. Price and productivity, net of inflation and investment, and inclusive of transactional FX, were favorable by $5.3 million. However, this resulted in a 40 basis points headwind to margin rate in the quarter.

整體企業的有機營收成長主要來自價格實現，部分被銷量下滑所抵銷。第一季調整後營業利益率為21.2%，較去年下降150個基點，部分原因是銷量下滑與產品組合的綜合影響。價格與生產力（扣除通膨與投資影響，並包含交易性匯率因素）帶來5.3百萬美元的正面貢獻。然而，這在本季對利潤率帶來40個基點的不利影響。

I’ll provide more details on revenue and margins within each of the regions. Adjusted earnings per share of $1.80 decreased $0.06 or 3.2% versus the prior year. EPS from acquisitions was more than offset by higher tax and interest and other in the quarter. Finally, year-to-date available cash flow was $80.3 million, consistent with the prior year.

我將進一步說明各地區的營收與利潤率細節。調整後每股盈餘為1.80美元，較去年同期減少0.06美元或3.2%。本季併購帶來的EPS貢獻，被較高的稅負、利息及其他項目所抵銷。最後，年初至今可用現金流為8,030萬美元，與去年同期一致。

Please go to slide 6. Our Americas segment delivered revenue of $809.9 million, which was up 6.9% on a reported basis and up 4.5% on an organic basis. Our non-residential business increased mid-single digits organically, driven by price realization. Demand for our non-res products remains healthy, and spec activity continues to be strong. Our residential business was flat in the quarter, with price realization offset by volume declines as residential markets remained soft.

請翻到第6頁。我們的美洲事業部營收為809.9百萬美元，按報告基礎成長6.9%，按有機基礎成長4.5%。我們的非住宅業務有機成長達中個位數，主要由價格實現帶動。我們非住宅產品的需求仍然健康，規格指定（spec）活動持續強勁。本季住宅業務持平，價格實現被銷量下滑所抵銷，因住宅市場仍然疲弱。

Electronics revenue was up mid-single digits for the quarter, and we continue to see electronics as a long-term growth driver of the business. In addition reported revenues increased 2.1 points of growth from acquisitions and a slight tailwind from foreign currency.

本季電子產品營收成長達中個位數，我們仍將電子產品視為業務長期成長的驅動因素。此外，報告營收因併購增加了2.1個百分點的成長，外加外幣帶來些微順風。

Americas adjusted operating income of $227.4 million increased 2.9% versus the prior year. Adjusted operating margins were down 110 basis points in the quarter. Price and productivity, net of inflation and investment, and inclusive of transactional foreign currency, was favorable by $9.9 million. However, this was a 30 basis points headwind to margin rate.

美洲地區經調整後營業利益為2.274億美元，較去年同期成長2.9%。本季經調整後營業利益率下滑110個基點。價格與生產力（扣除通膨與投資影響，並包含交易性外幣）帶來9.9百萬美元的有利影響。然而，這對利益率水準造成30個基點的不利影響。

The transactional foreign currency headwind relates to the prior year benefit of $3 million that we disclosed in Q1 last year, driven by the Mexican peso. Operating margins were also impacted by acquisitions, which were a 40 basis points headwind. Additionally, volume declines and unfavourable mix were a headwind to margin rates.

交易性外幣的不利影響，與我們去年第一季揭露的3百萬美元去年同期利益有關，主要由墨西哥披索所帶動。營業利益率亦受到併購影響，造成40個基點的不利影響。此外，銷量下滑與不利的產品組合亦對利益率水準造成壓力。

Please go to slide number 7. Our international segment delivered revenue of $223.7 million, which was up 21.5% on a reported basis and down 5.3% organically. Organic revenue declines were the result of volume weaknesses in our mechanical business, primarily related to the ERP disruptions John discussed earlier. This was partially offset by growth in electronics and price realization.

請翻到第7頁投影片。我們的國際事業部營收為2.237億美元，按報告基礎年增21.5%，有機則年減5.3%。有機營收下滑主要源自我們機械業務的銷量疲弱，主要與John先前提到的ERP干擾有關。電子業務成長與價格實現部分抵銷了上述影響。

Net acquisitions contributed 15.9% to segment revenue. Currency was also a tailwind, positively impacted reported revenues by 10.9%. International adjusted operating income of $17.9 million decreased 4.8% versus the prior year period.

淨併購對事業部營收貢獻15.9%。匯率亦為順風，對報告營收帶來10.9%的正面影響。國際事業部經調整後營業利益為1,790萬美元，較去年同期下滑4.8%。

Adjusted operating margin for the quarter decreased 220 basis points. Price and productivity, net of inflation and investment, was a 210 basis points headwind, inclusive of operational inefficiencies associated with the ERP mentioned earlier. Additionally, volume declines were a headwind to margin rates, which was mostly offset by acquisitions.

本季經調整後營業利益率下滑220個基點。價格與生產力（扣除通膨與投資影響）造成210個基點的不利影響，並包含前述ERP相關的營運效率不彰。此外，銷量下滑亦對利益率水準造成壓力，但多數被併購所抵銷。

Please go to slide number 8, and I will provide an overview of our cash flow and our balance sheet. Year-to-date available cash flow was $80.3 million, consistent with the prior year. For 2026, we still anticipate our ACF conversion will be approximately 85% to 95% of adjusted net income.

請翻到第8頁投影片，我將概述我們的現金流與資產負債表。年初至今可用現金流為8,030萬美元，與去年同期一致。對於2026年，我們仍預期ACF轉換率約為經調整後淨利的85%至95%。

Next, working capital as a percent of revenue increased in the first quarter due to acquired working capital, which does not impact cash flow. Finally, our balance sheet remains strong, and our net debt to adjusted EBITDA is at a healthy ratio of 1.7 times, which supports continued capital deployment.

接著，營運資金占營收比重在第一季上升，原因是併購帶入的營運資金，而這不影響現金流。最後，我們的資產負債表仍然穩健，淨負債對經調整後EBITDA比率維持在健康的1.7倍，支持持續的資本部署。

I will now hand the call back over to John.

我現在把電話交回給John。

Thanks, Mike. Please go to slide 9. One quarter into the year, we are affirming our organic revenue growth outlook of 2% to 4% and adjusted earnings per share outlook of $8.70 to $8.90. We are raising our reported revenue outlook by 1 point to 6% to 8% to include the acquisition of DCI. You can find more details on our outlook in the appendix.

謝謝，Mike。請翻到第9頁投影片。在年度進行一季後，我們確認有機營收成長展望為2%至4%，以及經調整後每股盈餘展望為8.70至8.90美元。我們將報告營收展望上調1個百分點至6%至8%，以納入對DCI的收購。您可在附錄中找到更多展望細節。

While our core demand assumptions are unchanged from our February call, I’ll provide some additional details on our view for the remainder of the year. In the Americas, our markets are largely as we expected to start the year, but we’re experiencing higher inflation.

雖然我們對核心需求的假設與2月電話會議時一致，但我會補充一些我們對今年剩餘期間的看法細節。在美洲地區，我們的市場表現大致如年初預期，但我們正面臨較高的通膨。

Based on current conditions, we anticipate an incremental headwind of approximately 1% of COGS from tariffs and other inflation. We expect to offset this on a dollar basis through a combination of price and cost actions. However, given current volatility, we are not updating our organic growth assumptions to include any incremental price at this time, similar to our approach in the first quarter of 2025. Most importantly, we expect this to be neutral to 2026 adjusted operating income dollars and earnings per share.

基於目前情況，我們預期關稅與其他通膨將帶來約相當於銷貨成本（COGS）1%的額外不利影響。我們預期將透過價格與成本措施的組合，在金額上加以抵銷。然而，鑑於目前波動性，我們此時不會更新有機成長假設以納入任何額外的漲價，這與我們在2025年第一季的做法相同。最重要的是，我們預期這對2026年經調整後營業利益金額與每股盈餘將為中性影響。

For international, we expect to catch up on production impacts from the ERP implementation during the remainder of the year, supported by existing orders and backlog in that business. Our core demand assumptions are similar to our prior outlook, and beyond the ERP catch up, it’s also important to note that our electronics businesses are a source of strength in the international segment, and we expect these to ramp seasonally through the year.

在國際方面，我們預期在今年剩餘期間可追趕ERP導入所造成的生產影響，並由該業務既有訂單與在手訂單（backlog）支撐。我們對核心需求的假設與先前展望相近；此外，除了ERP追趕之外，也必須注意我們的電子業務是國際事業部的強項來源，我們預期其將在全年隨季節性逐步放量。

We have not experienced a notable demand impact from the effects of the conflict in Iran, and our exposure to the Middle East is negligible. For the organization, we’re committed to serving our customers while remaining agile in the current macro and input cost environment. Please go to slide 10.

我們尚未因伊朗衝突的影響而看到顯著的需求衝擊，且我們對中東的曝險可忽略不計。就整體組織而言，我們致力於服務客戶，同時在目前的總體環境與投入成本環境中保持敏捷。請翻到第10頁投影片。

In summary, Allegion delivered nearly 10% revenue growth in Q1 and deployed capital effectively for the benefit of our shareholders.

總結來說，Allegion在第一季實現接近10%的營收成長，並有效部署資本以造福股東。

Before turning to Q&A, there’s one more highlight from Q1 that I’m proud to share with you today. Allegion was honoured for the third consecutive year with the Gallup Exceptional Workplace Award. This recognizes our team for fostering one of the most engaged workplace cultures in the world, and we are one of only five companies to earn this award with distinction in 2026. We know highly engaged teams deliver stronger results for our customers, our shareholders, and our partners.

在進入問答之前，還有一項第一季亮點我很自豪今天與各位分享。Allegion連續第三年獲頒Gallup卓越職場獎（Gallup Exceptional Workplace Award）。這表彰我們的團隊打造了全球最具投入度的職場文化之一；而在2026年，僅有五家公司以「卓越」等級獲得此獎。我們知道，高度投入的團隊能為客戶、股東與合作夥伴帶來更強勁的成果。

With that, we’ll take your questions.

接下來，我們開始回答各位的問題。

We will now begin the Q&A. (Operator Instructions)

我們現在開始問答環節。（接線員指示）

Joe O’Dea, Wells Fargo Securities. --

Joe O’Dea，Wells Fargo Securities。--

All right. Sorry about that. Getting used to this new format. Good morning, everyone. Starting on the demand side in Americas, it sounds like spec activity largely pacing as expected. But just interested in any color on the time from spec to order, if you’re seeing any elongation in that with respect to what you would normally see on spec to order, and what you’re currently seeing, the degree to which kind of tariffs and other inflationary pressures is behind that.

好的。抱歉剛才那樣。還在適應這個新形式。各位早安。先從美洲地區的需求端談起，聽起來規格案（spec）活動大致如預期推進。但我想了解一下從規格案到下單的時間，你們是否看到相較於通常情況有拉長？以及你們目前看到的情況中，關稅與其他通膨壓力在多大程度上是背後原因？

Then just related, we have heard, some comments around kind of data center crowding out and inability to service other projects because of data centers drawing more activity and the degree to which you’re seeing any of that?

另外相關地，我們也聽到一些評論，提到資料中心可能排擠其他專案、因為資料中心吸走更多活動量而導致其他專案無法被服務；你們在多大程度上有看到這種情況？

Yeah. Joe, this is John. I’ll get started there. I’d say, like we said in the prepared remarks, spec activity is strong in non-res. Might go so far to even call it very strong in recent months. I’d say it’s broad-based. You know, we’ve got a portfolio and a channel reach that affords us broad end market exposure, so we’re seeing broad-based growth on the spec side.

是的。Joe，我是John。我先來回答。我想，如同我們在事先準備的講稿中所說，非住宅（non-res）的規格案活動很強。甚至可以說，近幾個月非常強。我會說這是廣泛性的。你知道，我們擁有產品組合與通路觸及範圍，使我們能廣泛曝險於各終端市場，因此我們在規格案端看到的是廣泛性的成長。

Channel checks with our largest customers support that view. To the more detailed points of are we seeing elongation from spec to, shovel-ready or doors being hung? Not really. I don’t think that environment hasn’t meaningfully changed.

我們與最大客戶的通路訪查也支持這個看法。至於更細的問題：我們是否看到從規格案到可動工（shovel-ready）或門開始安裝（doors being hung）的時間拉長？並沒有。我認為那樣的環境並未出現顯著變化。

That is a reason why we don’t disclose a whole bunch of detail because the line of sight from a spec to revenue for us really depends on the vertical and the project. You could imagine, smaller projects or multifamily office renovations for tenant improvements could be pretty quick. Something like a very large hospital complex could take a couple of years. But suffice it to say, spec activity has been strong. Channel checks also, we feel support our outlook.

這也是我們不披露大量細節的原因之一，因為對我們而言，從規格（spec）到營收的可視性，確實取決於所屬垂直領域與專案本身。你可以想像，較小的專案或多戶型辦公室的翻新、作為租戶改善（tenant improvements）的工程，可能很快就能完成。像非常大型的醫院園區，可能需要好幾年。但總之，規格活動一直很強勁。通路調查（channel checks）也讓我們覺得能支持我們的展望。

On the question about data centers crowding out other projects, I would feel like not in our space do I see that really as an impact. That being said, you know, I feel good about the position, the competitive position we’ve carved out for doors and door hardware in data centers, and that it’s a small part of our business, but it has been growing nicely.

關於資料中心是否會排擠其他專案的問題，我覺得在我們的領域裡，並沒有看到這真的造成影響。話雖如此，你知道，我對我們在資料中心門與門用五金（door hardware）所建立的競爭地位感到很有信心；這在我們業務中占比不大，但一直成長得不錯。

That’s helpful detail. On the tariff side and the 1% of COGS headwind that you talked about, just in terms of, you know, how you’re addressing that. Are surcharges already in the market? How much of this is price? How much of this is more kind of cost mitigation on your side? Is it primarily tied to the latest kind of tariff changes and the impact that it has from Mexico?

這些細節很有幫助。在關稅方面，以及你提到的銷貨成本（COGS）1%逆風，就你們如何因應而言，目前市場上已經有附加費（surcharges）了嗎？其中有多少是來自價格（price）？有多少比較像是你們端的成本緩解（cost mitigation）？這主要是與最新一輪關稅變動，以及其對墨西哥帶來的影響有關嗎？

I think so, there's been, like the last many months, there’s been a flurry of changes with respect to trade and tariff policy. IEEPA was declared unconstitutional. Right on the heels of that, Section 122 was implemented. Soon after that, there was a wide range of Section 232 changes. When you net all of that out, along with some inflationary pressures on fuel in particular, we see an impact, a net impact of around 1 point of COGS. Think of the playbook we used a year ago.

我想是的，像過去好幾個月一樣，貿易與關稅政策出現了一連串密集的變動。IEEPA 被宣告違憲。緊接著，第122條（Section 122）被實施。不久之後，第232條（Section 232）也出現了大範圍的調整。把這些因素加總後，再加上特別是燃料方面的一些通膨壓力，我們看到的影響、淨影響約為銷貨成本的1個百分點。可以參考我們一年前採用的應對手冊（playbook）。

Some pricing actions, it could be surcharges, it could be list price increases. They are not yet in the market, and that’s why we’re not yet updating any organic revenue guide as a result. We’ll certainly announce that, to the market, to our customers, first, as we work through all of the details there.

會有一些定價行動，可能是附加費，也可能是調漲牌價（list price increases）。目前這些尚未在市場上推出，這也是為什麼我們還沒有因此更新任何有機營收（organic revenue）指引。當我們把所有細節都釐清後，當然會先對市場、也先對我們的客戶宣布。

As always, there’s an enormous amount of details to work through on all the different trade policies. There are some cost actions that we’re taking. I think just normal hygiene for a company our size, and that will contribute. So when you add it all up, we expect to mitigate this on a dollar basis at the adjusted operating income line and net earnings per share.

一如既往，針對各種不同的貿易政策，需要處理的細節非常多。我們也正在採取一些成本行動。我認為以我們這種規模的公司來說，這些算是正常的基本功（hygiene），而且會有所貢獻。所以綜合起來，我們預期能在調整後營業利益（adjusted operating income）以及調整後每股盈餘（EPS）的層級，以金額（dollar basis）來抵消這項影響。

Joe, maybe I’ll just jump in and add. If you think about the mix between price and cost, obviously it’s going to come from more pricing than cost actions due to the size we discussed. It's similar to last year, look for us to make sure that we’re driving that price and productivity to cover that inflation and investment. That’s something we’ve been talking to you for a number of years about.

Joe，我也許插一句補充。如果你看價格與成本之間的組合，考量到我們剛才談到的規模，顯然會更多來自定價，而不是成本行動。這跟去年類似，我們會確保透過價格與生產力（productivity）來覆蓋通膨與投資。這也是我們多年來一直跟你們溝通的重點。

Timothy Wojs, Robert W. Baird.

Timothy Wojs，Robert W. Baird。

Good morning. Maybe just the first question. I guess if I look at North America margins, I was wondering if you could maybe just add a little bit of color on some of the mix puts and takes, you know, this quarter. I think it’s been a while since we’ve had kind of a negative mix impact in the bridge there. So maybe just add some color there as to what the drivers were and how you see that kind of playing out for the rest of the year.

早安。也許先問第一個問題。我看北美的利潤率（margins），想請你們就本季一些組合（mix）因素的拉抬與拖累，補充一點說明。我覺得在那個橋接（bridge）裡，我們已經有一段時間沒看到負面的組合影響了。所以想請你們多談談驅動因素是什麼，以及你們如何看待這在今年剩餘時間的走勢。

Tim, if I bring you back to Q1 of last year, we had really strong volume leverage and positive mix. And what that was, it included mix within non-res. In specifically, our non-res business is so much more than just a lock. It’s the mix between the different businesses within non- . This quarter was a little different than Q1 of last year, it was some negative mix.

Tim，如果我把你帶回到去年第一季，我們有非常強的量的槓桿（volume leverage）以及正向的組合（mix）。而那其中包含非住宅（non-res）內部的組合。具體來說，我們的非住宅業務遠不只是鎖具。而是非住宅內不同業務之間的組合。本季跟去年第一季有點不同，出現了一些負面的組合。

If you think of the Americas and you take a step back and think of the full year, -- don’t expect to see a headwind for mix for the full year for the Americas. You did have a headwind in Q1. But full year, think of it like most years mix kind of evens out over the course of a year for the Americas.

如果你看美洲（Americas）並退一步看全年——不要預期美洲全年會有組合（mix）的逆風。第一季確實有逆風。但就全年而言，可以把它想成像多數年份一樣，美洲的組合在一年當中大致會被拉平、趨於均衡。

Okay. It’s mostly product mix on -- .

好的。主要是產品組合在--。

It’s product mix, yeah.

是的，是產品組合。

Okay. I got you. I understand. Okay. And then, I guess how, to that, like, how would you kind of expect margins in North America to kind of sequence through the year? I guess, that mix impact kind of drove it, you know, I guess a little kind of weaker Q2 than we Q1 than we thought. Just trying to understand kind of how we should expect margins in North America to kind of pace this year. Like would you expect -- kind of a -- negative variance in Q2 as well? Just trying to think through those pieces.

好的。了解。我明白了。好的。那接著，關於這點，你們會如何預期北美利潤率在全年各季的節奏（sequence）？我想那個組合影響推動了它，讓第一季看起來比我們原先想的、呃，有點偏弱。我只是想理解，我們應該如何預期北美利潤率今年的推進速度。例如你們會預期第二季也會有——某種——負向差異嗎？我只是想把這些部分想清楚。

As you think about, let’s talk just margin rate for the Americas. As you progress throughout the year, obviously in Q2, we do have the peso impact from Q2 of last year. I’ll call that to your attention. We put that on the earnings deck of Q2 in 2025.

就美洲的利潤率（margin rate）來談。隨著年度推進，顯然在第二季，我們會受到去年第二季比索（peso）影響的因素。我想特別提醒你注意這點。我們在2025年第二季的財報簡報（earnings deck）裡有提到過。

Throughout the rest of the year, expect most of the expansion to coming in the back half of the year. We’ll get better sequentially. You could think of the second quarter as improving from where it was in Q1 versus the prior year. But the Q3 and Q4 is where you really start to see the margin expansion.

在今年其餘時間，預期大部分的擴張會出現在下半年。我們的季比（sequentially）會變得更好。你可以把第二季想成相較於去年同期，會比第一季的狀況有所改善。但真正開始看到利潤率擴張的是第三季與第四季。

Then, for full year, I’ll just add, don’t forget, obviously, for each of the quarters, we got to now put in DCI. DCI is going to be a margin rate impact. You could think of it as 30 basis points for a full year. Q1 obviously only had one month of activity. The last three quarters obviously will have three months. Those are the two items I would call out. But if you think about margin expansion, think of it more in the back half, and part of that is the comp that you’re going up against vis-a-vis 2025.

另外，針對全年我再補充一點：別忘了，顯然從每一季來看，我們現在都要納入 DCI。DCI 會對利潤率（margin rate）造成影響。全年來看，你可以把它想成約30個基點（basis points）。第一季顯然只有一個月的活動。後三季顯然各有三個月。這是我會特別點出的兩個項目。但如果你在看利潤率擴張，請更多聚焦在下半年，其中一部分原因是你在對比2025年的基期（comp）。

Tomohiko Sano, JPMorgan.

佐野智彥，摩根大通。

Okay. Thank you for taking my questions. In first quarter, the Americas electronics business was up mid-single digits, which is a little step down from the double-digit growth seen in a Q4. Could you provide more breakdown of volume versus price contributions for Q1 and any color on what drove the decelerations? And do you anticipate any changes in a growth perspectives after 2Q, please?

好的。謝謝讓我提問。第一季，美洲電子業務成長約中個位數百分比，較第四季的雙位數成長略有放緩。能否提供第一季量與價的貢獻拆分，以及造成放緩的原因說明？另外，請問在第二季之後，您是否預期成長展望會有任何變化？

Tomo, if you think about non-res, we said in the prepared remarks, non-res was driven by price realization. Just to remind you, Q1 of last year, really strong volume growth in non-residential. You could think of that at the higher end of mid-single digit volume growth for non-res last year. So this year, obviously a little less, when you think of volumes.

Tomo，如果你看非住宅市場，我們在事先準備的講稿中提到，非住宅主要是由價格實現所帶動。提醒一下，去年第一季非住宅的出貨量成長非常強勁。你可以把去年非住宅的量成長視為中個位數成長區間的較高端。所以今年在量的表現上，顯然會稍微少一些。

Full year for non-res, expect to see volume growth for the full year in non-residential. I think that remains a strong market for us, like we talked about. I think Q1 in non-res, if you think about volumes, part of that is just the comp in the prior year.

就非住宅全年而言，我們預期全年非住宅仍會看到出貨量成長。我認為那對我們來說仍是個強勁的市場，正如我們先前談到的。我認為第一季非住宅若從量來看，其中一部分只是因為去年同期基期較高。

Tomo, this is John. On the electronic side, mid-single growth this quarter. Look, a year ago it was double digit, very strong. I think when we look over the cycle, if you will, we still see electronics being a long-term growth driver for Allegion. The adoption rates are still increasing and growing.

Tomo，我是John。在電子業務方面，本季成長中個位數。你看，一年前是雙位數成長，非常強勁。我認為若以整個景氣循環來看，我們仍然認為電子業務是Allegion的長期成長驅動力。採用率仍在提升並持續成長。

I think, that is providing that point of outgrowth that we expect to achieve. So still feel good about our position in electronics. We’re still rolling out new products and I think still stand firm that that’s a long-term growth driver for the company.

我認為這正提供了我們預期能達成的超越市場成長（outgrowth）的動能。因此我們對在電子領域的布局仍然很有信心。我們仍在推出新產品，也仍堅信這是公司長期的成長驅動力。

Thank you, John and Mike. Just one follow-up. There was a commentary that ERP implementation and legacy mechanical business were key headwinds for the international segment in Q1. Were there any execution challenges associated with these factors? How do you view the prospects for recovery in international operations from second quarter, please?

謝謝你，John和Mike。再追問一題。先前提到ERP導入以及傳統機械業務，是第一季國際事業部的主要逆風。這些因素是否伴隨任何執行上的挑戰？請問你們如何看待國際營運自第二季起的復甦前景？

Yeah, it’s a very timely question, Tomo. The ERP implementation was limited to one of our legacy mechanical businesses in Europe. So while we haven’t sized that exact amount, it does explain most of the organic revenue and margin decline in the quarter.

是的，Tomo，這個問題問得很即時。ERP導入僅限於我們在歐洲的一個傳統機械業務。因此，雖然我們尚未量化確切金額，但它確實解釋了本季大部分的有機營收與毛利率下滑。

I would say, since I’ve been here in Allegion, we’ve done a lot of ERP implementations. It’s a core part of just investing in the core business, and we’ve had a lot of very old systems to update. This was one of them. We’ve never had to talk about this before. Every other ERP implementation has gone very well. This one we’ve just had a lot of struggles with.

我想說，自從我在Allegion以來，我們做過很多ERP導入。這是投資核心業務的重要一環，而我們也有許多非常老舊的系統需要更新。這次就是其中之一。我們以前從未需要特別談到這件事。其他所有ERP導入都進行得很順利。但這一次我們確實遇到不少困難。

As I said in the prepared remarks, very recently, our production rates are getting back on track. And so, it’s not a demand issue either. The customer orders are there, the backlog is there. It’s our execution that needs to improve, and I think it is improving. I do have confidence we will recover the Q1 shortfall over the course of the year.

如同我在事先準備的講稿中所說，最近我們的產能/生產節奏正逐步回到正軌。所以這也不是需求問題。客戶訂單在、積壓訂單也在。需要改善的是我們的執行，我認為也正在改善。我有信心我們會在今年內逐步彌補第一季的缺口。

Jeffrey Sprague, Vertical Research Partners, LLC.

Jeffrey Sprague，Vertical Research Partners, LLC。

Hey, thanks. Good morning, everyone. Hey, John. Just picking up on the ERP. So are there any other implementations that you’re planning for this year? Are you done upgrading what you want to do in Europe? Also just to comment on catching up. You know, I’ve seen companies before have these snafus, and they don’t catch it up, right? Cause you failed to deliver, so somebody else, you know, filled that void. You know, you can get back to run rate, but maybe not lose or regain what you lost. Maybe just a little bit more context on that.

嗨，謝謝。各位早安。嗨，John。延續ERP的話題。所以今年還有其他你們計畫要導入的案子嗎？你們在歐洲想做的升級都完成了嗎？另外談到追趕進度。你知道，我以前看過一些公司發生這種失誤，結果並沒有把缺口補回來，對吧？因為你沒能交貨，所以其他人就把那個空缺補上了。你可能能回到正常出貨節奏，但不一定能把失去的量找回來或重新拿回。能否再多給一些背景說明？

Yeah. Jeff, those are very salient points and something we’re watching very carefully. I would say we have been holding on to the customer orders. We still have more inbound customer orders. We do have a backlog that supports our commentary. Our execution is improving.

是的。Jeff，這些觀點非常到位，也是我們正在非常密切關注的事情。我會說，我們一直都有把客戶訂單留住。我們仍持續收到更多客戶的新進訂單。我們也確實有積壓訂單支撐我們先前的說法。我們的執行正在改善。

So I do feel confident that we’ll recover this Q1 shortfall over the balance of the year. It won’t all happen like immediately, but it’ll happen over the balance of the year.

因此我確實有信心，我們會在今年剩餘期間彌補第一季的缺口。不會立刻全部補回來，但會在今年剩餘期間逐步補回。

I think, as I mentioned, we’ve done a bunch of these implementations over my tenure here at Allegion. We do have more in the works. There are more businesses that do need these system upgrades, and I don’t anticipate we’re going to have a problem like this again.

我想，如我提到的，在我任職Allegion期間，我們已做過不少這類導入。我們確實還有更多案子在進行中。還有更多業務需要這些系統升級，而我不預期我們會再遇到像這次一樣的問題。

Could you just maybe address also Europe in a little more detail, right? Not a lot of direct Middle East exposure, but, you know, Europe’s probably most prone to seeing collateral economic damage first from what’s going on.

你能否也更詳細談談歐洲？你們沒有太多直接的中東曝險，但你知道，歐洲可能最容易先看到目前情勢所帶來的連帶經濟損害。

Is there any, visible change in tone there, business trajectory, orders, anything, just kind of ear to the ground, what you’re seeing real time in those markets?

那邊是否有任何可見的語氣變化、業務走勢、訂單等？

It’s a good question. I’d say consistent with our prepared remarks, the demand has shaped up about the way we saw it shaping up when we introduced the guide back in February. The big miss was again, our own challenge with that ERP.

這是個好問題。我會說，與我們事先準備的講稿一致，需求的走勢大致符合我們在2月提出指引時所預期的樣子。真正的大幅落差，仍然是我們自己在那次ERP上的挑戰。

I’d say our electronics businesses in Europe are still performing well. Our acquisitions in Europe are basically right on track. Feel good about those elements. Like in general, markets are still not super strong. And agree they are more directly impacted by the two active conflicts. But I think market demand is about how we saw it at the February guide.

我會說，我們在歐洲的電子業務仍表現良好。我們在歐洲的併購案基本上也都按計畫推進。對這些面向我們感覺不錯。整體而言，市場仍稱不上特別強勁。也同意它們更直接受到兩場正在進行的衝突影響。但我認為市場需求大致就是我們在2月指引時所看到的狀況。

(Operator Instructions) Julian Mitchell, Barclays Equity Research.

(接線員指示) Julian Mitchell，巴克萊股票研究。

Hi, good morning. Maybe, just based off the commentary around the Americas margins being down year-over-year in Q2, and also the fact that the international catch up on ERP isn’t all coming in the quarter of Q2. Should we expect that this year is a bit more back-end loaded than normal in terms of kind of first half, second half EPS contribution?

嗨，早安。也許根據你們提到美洲區第二季毛利率年對年下滑的評論，以及國際區ERP的追趕並非全部會在第二季入帳這一點。我們是否應該預期今年在每股盈餘（EPS）的貢獻上，相較於往常會更偏向下半年，也就是上半年/下半年呈現更「後段偏重」？

I think in recent years, you have been sort of 47%, 48% of EPS in the first half. Should we think this year is maybe more like mid-40%s because of that Americas margin pressure and ERP headwind?

我認為近幾年，上半年大概占EPS的47%、48%。那今年是否應該把它想成更像是40%中段，因為美洲區毛利率壓力以及ERP逆風的影響？

Julian, as you know, we don’t really give quarterly guidance, right? If I give first half, second half, I’m giving an EPS for Q2. I’ll just share just a little more from what I said earlier. In the Americas, I wouldn’t expect, you know, big headwinds on margin rates year-on-year in the second quarter. I just don’t expect to see much expansion there, right? You could think of it as not expansionary.

Julian，如你所知，我們其實不提供季度指引，對吧？如果我談上半年、下半年，我等於是在給出Q2的EPS。我就補充一點我先前提到的內容。在美洲區，我不會預期第二季的毛利率相較去年同期會有很大的逆風。我只是也不預期那邊會有太多擴張，對吧？你可以把它想成不具擴張性。

For international, I think it’s fair to say, second quarter, a little softer versus last year on margin rates. Similar to Q1, we talked about the sequential improvement versus Q1 of 2026 will be similar to the sequential improvement you saw in 2025. Then you start to see it recover some.

至於國際業務，我認為可以說第二季的毛利率相較去年會稍微偏弱一些。和Q1類似，我們談到相較於2026年Q1的序列改善，會與你在2025年看到的序列改善相近。之後你會開始看到它有所回升。

If you think of the Americas, though, think of it more a little more margin expansion in the back half of the year. This is not a massive margin expansion delta. It’s more margin expansion in back half, and you know what Q1 was.

不過如果看美洲區，請把它想成下半年會有更多一點的毛利率擴張。這不是非常巨大的毛利率擴張幅度。就是下半年毛利率擴張多一些，而你也知道Q1是什麼情況。

That’s helpful. Thanks very much, Mike. Then just on the kind of PPI, you know, you had that 40 basis points margin headwind in the first quarter kind of total company. How are you thinking about that sort of play out over the balance of the year?

這很有幫助。非常感謝你，Mike。接著關於PPI，你知道，第一季全公司合計大概有40個基點的毛利率逆風。你怎麼看這個在今年剩餘期間的走勢？

I think when I’m thinking about sort of total margins, you’ve got a volume improvement to margin rate in the back half from easier sort of volume comps. That helps with that margin step up in the second half. Just wondering kind of any puts and takes on PPI, you know, how is kind of pricing playing out and competition and that type of thing please?

我在思考整體毛利時，你在下半年會因為較容易的出貨量比較基期而帶來出貨量對毛利率的改善。這有助於下半年毛利率的上台階。想請教關於PPI有沒有什麼拉鋸因素：例如定價的進展、競爭狀況之類的？謝謝。

Obviously, you saw the headwinds in Q1. If I break it out between the two businesses, similar to what you would expect in margin rates, Americas, expect to see for the full year, right, our full year PPI expect to see some margin expansion there, dollar positive.

很明顯，你在Q1看到了逆風。如果我把它拆成兩個事業來看，類似於你對毛利率的預期：美洲區方面，全年來看，我們的全年PPI預期會看到一些毛利擴張，金額上是正貢獻。

International is going to be a little tougher this year, so at an enterprise level, I expect the total company to be roughly around the Americas for the full year. A little more in the back half than first half, obviously. Q1 was poor.

國際業務今年會比較艱難，所以在企業層級，我預期全公司全年大致會接近美洲區的表現。很明顯，下半年會比上半年多一些。Q1表現很差。

Second quarter, certainly better than what you saw in the first quarter. Then think about the core business. We expect this business to get back to that core incrementals we outlined at Investor Day, right? The core ex acquisitions and currency of that 35% plus as you think of our business for the remainder of the year.

第二季肯定會比你在第一季看到的更好。再來看核心業務。我們預期這個業務會回到我們在投資人日所概述的核心增量利潤率（incrementals），對吧？在排除併購與匯率影響後，核心業務在今年剩餘期間的表現，請以35%以上來看待。

Joe Ritchie, Goldman Sachs.

Joe Ritchie，高盛。

Yeah. Oh, there you got me. Okay, great. Thanks, guys. Sorry, struggling with the. Perhaps maybe not doing this on my iPad next time.

是的。喔，你們聽到我了。好，太好了。謝謝各位。抱歉，我在操作上有點卡。也許下次不要用我的iPad來做這件事。

No worries, Joe.

沒問題，Joe。

Being around just the international segment, right? This is a segment that historically you’ve tried to scale via acquisition. Recognize that you had the issues with ERP this quarter, and that impacted it. But I’m curious, like, as you kind of think about, like, does it make sense, you know, for Allegion to have an international presence? The domestic business is doing so well. Is there -- does it ever make sense for it to be more of a domestic-centric company and, maybe it’s just too difficult to scale the business internationally?

我想談談國際事業部，對吧？這個事業部過去你們一直嘗試透過併購來擴大規模。我知道你們這一季有ERP的問題，並且造成了影響。但我好奇的是，當你們在思考時，Allegion是否真的有必要維持國際布局？美國本土業務表現非常好。是否曾經有可能更合理的是成為一家更以本土為中心的公司，因為也許要在國際上擴大規模實在太困難？

Yeah. I think probably Q1 earnings call is not the time to have such a conversation, Joe. I would say one business with an ERP challenge that we haven’t had before driving a miss, I don’t think such extreme conversations are necessary right now.

是的。我想，Joe，Q1法說可能不是進行這種討論的時機。我會說，因為一個我們以前沒遇過的ERP挑戰，導致某個業務未達預期，我不認為現在需要進行這麼極端的討論。

I’d say we’ve been very pleased with the growth we’ve seen in international. We’ve been very pleased with the portfolio improvements we’ve seen in international. The market conditions have been rather soft, but our teams have performed well.

我會說，我們對國際業務的成長表現一直非常滿意。我們對國際業務的產品組合改善也一直非常滿意。市場環境確實相當疲弱，但我們的團隊表現得很好。

And one, what I consider temporary blip on the legacy mechanical side with this ERP implementation, we’re going to overcome that. I have confidence there. It’s not a demand issue. We’ve got some operating performance that needs to improve, and we’ll improve it.

而我認為這只是傳統機械業務端、在這次ERP導入上的一次暫時性小波動，我們會克服它。我對此有信心。這不是需求問題。我們有一些營運表現需要改善，而我們也會把它改善。

Fair enough. And then, I guess, just the follow-on is just around capital deployment. Just given, kind of like the start to the year from a share perspective, I’m just wondering, like, how you’re thinking about buyback versus an M&A at this point?

了解。接著我想追問的是資本配置。考量今年以來股價的表現，我想請教你們目前如何看待回購與併購（M&A）之間的取捨？

Yeah, it’s a great question, Joe, and I think, as you saw in Q1, we did repurchase $40 million worth of shares, and you saw that our Board authorized a $500 million share repurchase program. So I think, that being said, you know, our expectation and your expectation of us should be balanced, disciplined, and consistent capital deployment for the benefit of our shareholders.

是的，這是個很好的問題，Joe。我想如你在Q1所見，我們回購了4,000萬美元的股票，而你也看到董事會核准了5億美元的股票回購計畫。因此，在此基礎上，我們的期待、以及你對我們的期待，都應該是：以平衡、紀律且一致的方式進行資本配置，以造福股東。

And certainly we understand where we’re trading right now. I’d say on top of that, our M&A pipeline is active with good quality bolt-on acquisitions. So I would say expect us to do both for the benefit of our shareholders.

而且我們當然也了解目前市場給我們的交易水準。此外，我們的併購管線也很活躍，且有高品質的補強型併購標的。所以我會說，為了股東利益，預期我們兩者都會做。

(Operator Instructions) Rafe Jedrosi.

（接線生指示）Rafe Jedrosi。

Hi, good morning. Thanks for taking my question.

嗨，早安。謝謝讓我提問。

Morning.

早安。

I just wanted to follow up on the electronics growth in the quarter. Just the mid-single digit, I think in the fourth quarter it was low doubles, which is what you did through 2025, if I remember right. You’re calling out like a tougher comp there. How should we think about that growth through 2026? And maybe just a little bit more color around the deceleration?

我想追問本季電子業務的成長。大概是中個位數成長；我記得第四季是低雙位數，而你們在2025年大致也是這樣的表現。你們提到那邊的比較基期更具挑戰。我們應該如何看待2026年電子業務的成長？以及能否再多提供一些關於成長放緩的背景？

I have to apologize. When I answered that previous question, I struggled to hear the question I answered about the non-res business. I apologize.

我得先道歉。我在回答前一個問題時，我其實聽不太清楚我所回答的那個關於非住宅業務的問題。我很抱歉。

With respect to electronics. Electronics was really strong for us last year, right? It was strong each of the four quarters. I expect to see electronics to be a long-term driver of growth for us. We keep on talking about this, including Investor Day. Quarter-to-quarter can move around a little, but if you think about electronics for us, think of it as, hey, this is going to be the accelerated growth driver. Over the course of a year, it tends to outgrow the mechanical. We expect that to be the case for 2026 as well.

關於電子業務。電子業務去年對我們來說非常強勁，對吧？四個季度都很強。我預期電子業務會成為我們長期的成長驅動力。我們一直在談這件事，包括在投資人日。季度之間可能會有些波動，但如果你看我們的電子業務，就把它視為：這將是加速成長的驅動引擎。以一整年來看，它通常會比機械業務成長更快。我們也預期2026年會是如此。

Okay. That’s helpful. And then, just on the 1% of like incremental inflation on COGS, is there any way to parse out how much is tariffs, or like incremental 232 versus just broader metals inflation and anything else?

好的。這很有幫助。另外，關於銷貨成本（COGS）約 1% 的增量通膨，有沒有辦法拆解其中有多少來自關稅，例如新增的 232 條款影響， versus 更廣泛的金屬通膨以及其他因素？

And then, just you’ve had a lot of success historically offsetting with price. How do we think about the cadence of that through the year? How like how much of a lag is there between when you start to see the inflation versus when you can raise price? Thank you.

再來，你們過去在以提價抵消成本方面一直很成功。我們該如何看待這在全年推進的節奏？也就是說，從你們開始看到通膨到你們能夠提價之間，大概會落後多久？謝謝。

If you think of our business, we try to manage all cost inputs. When we talk about it, we talk about pricing and productivity has to cover that inflation and those incremental investments. I tend not to give details by each subsection. Just think of it as a total cost inflation number we provided.

如果你從我們的業務來看，我們會嘗試管理所有成本投入。我們談到這點時，會說定價與生產力必須覆蓋那個通膨以及那些增量投資。我通常不會按各個子項提供細節。你就把它視為我們提供的總體成本通膨數字。

And then, as far as lags, I would say historically there is a little lag between pricing and inflation, meaning the inflation could be a little sooner, but it’s not enough where I would call it to your attention to change it much. What you tend to find is, the cost inflation comes, but it sits on the balance sheet until it gets sold and flushed through COGS. It’s not that dissimilar historically. We’ll continue to monitor it, and if, as there’s updates throughout the year, we’ll just provide you more details.

至於時滯，我會說歷史上定價相對通膨確實會有一點落後，也就是通膨可能來得稍早一些，但差距不至於大到需要特別提醒你、或需要大幅改變看法。你通常會看到成本通膨先發生，但它會先留在資產負債表上，直到產品售出後才會反映並沖入銷貨成本（COGS）。從歷史經驗看並沒有太大不同。我們會持續監控；如果全年過程中有更新，我們會再提供你更多細節。

Alexander Virgo, Evercore ISI.

Alexander Virgo，Evercore ISI。

Thanks very much for taking the question. I wondered if you could just dig a little bit more into the ERP impact. Just what was it that surprised you? What was it that went wrong? I guess, appreciate your point that you’ve implemented many of these in the past and not had to talk about them before.

非常感謝讓我提問。我想請你們再更深入談一下 ERP 的影響。究竟是什麼讓你們感到意外？哪個環節出了問題？我理解你們的觀點：過去你們也導入過很多這類系統，之前並不需要特別拿出來談。

So, what is it that you’re taking away from this to ensure it doesn’t happen again? Then if I could just follow up on the electronics side of things, are you happy that you can get what you need from the perspective of chips and supply chain? Do you have enough buffer, or is it just a case of pricing that will end up coming through there? Thanks very much.

那麼，你們從這次事件中得到哪些教訓，以確保不會再發生？另外我想追問電子業務這邊：從晶片與供應鏈的角度，你們是否滿意目前能取得所需的供應？你們是否有足夠的緩衝，還是最後會主要以價格的方式反映出來？非常感謝。

Good question. On the ERP, again, it’s just a case of a legacy system, been in place and highly customized over 25, 30 years. People got very accustomed to it. New workflows just slowed us down in this legacy mechanical business. People are adjusting to it, people are adapting to it, people are learning and getting better with the new system.

好問題。關於 ERP，再次說明，這主要是因為舊系統已經使用多年，且在 25、30 年間高度客製化。大家對它非常習慣。新的工作流程在這個傳統的機械業務上確實讓我們速度變慢。但大家正在調整、適應，也在學習並逐步更熟練地使用新系統。

Again, as we’ve turned the chapter into 2Q, I do see our production rates are improving. Our demand still supports the outlook. Customer orders, backlog still support the recovery. Our operating performance is giving us confidence that we will recover the Q1 shortfall over the balance of the year.

同樣地，當我們進入第二季（2Q）後，我確實看到我們的產出速度正在改善。我們的需求仍然支撐既有展望。客戶訂單與在手訂單（backlog）仍支撐復甦。我們的營運表現讓我們有信心，在今年剩餘期間彌補第一季（Q1）的缺口。

Then, shifting over to electronics on the supply chain, certainly with the conflict in the Middle East, we’ve been watching component supply chains very carefully. Haven’t yet seen any major disruption. I do feel as a company we’re better positioned with respect to electronic supply chain than we were back in the pandemic timeframe.

接著談到電子供應鏈，尤其在中東衝突的情況下，我們一直非常密切地關注零組件供應鏈。目前還沒有看到任何重大中斷。我也覺得，就電子供應鏈而言，我們公司的處境比疫情期間要好得多。

David MacGregor, Longbow Research

David MacGregor，Longbow Research

Good morning, everyone.

各位早安。

Good morning.

早安。

I guess, I wanted to begin with. Hey, good morning. I did want to go back to the mix question and it was asked earlier, and just in the Americas business, how much of the margin pressures are, you think, resulting from the introduction of more value-oriented products like the Performance series and the Von Duprin 70 and those products?

我想先從這裡開始。嗨，早安。我想回到先前有人問過的產品組合（mix）問題：就美洲業務而言，你們認為毛利率壓力有多少是來自導入更多偏價值取向的產品，例如 Performance 系列、Von Duprin 70 以及那些產品？

I don’t think it’s that, David. It’s really the mix. This isn’t a case where someone’s trading down. This is the mix between the various businesses that we have. And -- so it’s not a case where you’re trading from a high price point to a mid-price point offering. It’s more the mix between the various product lines that we offer.

David，我不認為是那個原因。這真的是產品組合的問題。這不是客戶在「降級消費」的情況。而是我們不同業務之間的組合變化。所以不是從高價位產品轉向中價位產品的情況。更多是我們所提供的各條產品線之間的組合變化。

You’re not seeing any change in terms of how these jobs are being specked in terms of more value orientation?

你們沒有看到這些專案在規格指定（spec）上出現更偏向價值取向的變化嗎？

No, I would not say that’s the case at all.

不，我完全不會說是那樣。

Okay. All right. Thanks for that. Just follow up, I guess, on the residential business, are you confident that you held market share in that business this quarter? And I guess, what are the strategic options available to you to maybe affect a stronger position versus some of the secular trends?

好的。好。謝謝你的說明。我再追問一下住宅業務：你們有信心本季在該業務守住市占率嗎？另外，面對一些長期結構性趨勢，你們有哪些策略選項可以用來強化相對位置？

I think, David, on the resi side, for a while now we’ve been dealing with just a relatively soft end market. We’ve still seen electronics growth in resi. I think that has been a positive for us, and continue to introduce new products in the electronic segment.

David，我想在住宅（resi）這邊，我們一段時間以來一直面對相對疲弱的終端市場。我們仍然看到住宅端的電子產品成長。我認為這對我們是正面的，而且我們也持續在電子領域推出新產品。

As you’ve heard from, I think a lot of companies, new build is very soft. After market is probably just treading waters. And so overall, the market remains a little bit soft. I think, in terms of our share, all the indicators that we watch on point of sale and other things would indicate, our market share is definitely holding up.

如同你從很多公司那邊聽到的，新建市場非常疲弱。售後市場大概只是持平。因此整體市場仍偏弱。至於市占率，就我們觀察的所有指標（例如銷售點資料 point of sale 等）來看，都顯示我們的市占率確實維持得不錯。

At this time, I see no callers in the queue, so I’ll now hand back to the CEO, John Stone, for closing remarks.

目前我看到電話隊列中沒有提問者了，接下來我把時間交回給執行長 John Stone 做結語。

Well, thank you all very much for the Q&A and attending the call today. We look forward to connecting with you on our Q2 earnings call in July. Be safe, be healthy.

非常感謝各位今天的問答以及參與本次電話會議。我們期待在 7 月的第二季（Q2）財報電話會議上再與各位交流。請注意安全、保持健康。