Allison Transmission Holdings, Inc. (ALSN) 2026 Q1 法說會逐字稿

Good afternoon. Thank you for standing by. Welcome to Allison's first-quarter 2026 earnings conference Call. My name is Shamali, and I will be your conference call operator today. (Operator Instructions) As a reminder, this conference call is being recorded. (Operator Instructions)

下午好。感謝各位稍候。歡迎參加 Allison 2026 年第一季財報電話會議。我是 Shamali，今天將擔任本次電話會議的接線員。（接線員指示）提醒各位，本次電話會議將被錄音。（接線員指示）

I would now like to turn the conference call over to Jackie Bolles, Executive Director of Treasury and Investor Relations. Please go ahead, Jackie.

現在我想將電話會議交給財務與投資人關係執行董事 Jackie Bolles。Jackie，請開始。

Thank you, Shamali. Good afternoon, and thank you for joining us for our first quarter 2026 earnings conference call. With me this afternoon are Dave Graziosi, our Chair, President and Chief Executive Officer; Scott Mell, our Chief Financial Officer and Treasurer; Fred Bohley, Allison's Chief Operating Officer and Allison Transmission, business unit leader; and Craig Price, Allison Off-Highway business unit leader.

謝謝你，Shamali。各位下午好，感謝各位參加我們 2026 年第一季財報電話會議。今天下午與我一同出席的有：董事長、總裁暨執行長 Dave Graziosi；財務長兼財務主管（Treasurer）Scott Mell；Allison 營運長暨 Allison Transmission 事業單位負責人 Fred Bohley；以及 Allison Off-Highway 事業單位負責人 Craig Price。

As a reminder, this conference call, webcast in this afternoon's presentation are available on the Investor Relations section of allisontransmission.com. A replay of this call will be available through May 18.

提醒各位，本次電話會議、網路直播以及今天下午的簡報可於 allisontransmission.com 的投資人關係（Investor Relations）專區取得。本次電話會議的重播將提供至 5 月 18 日。

As noted on slide 2 of the presentation, many of our remarks today contain forward-looking statements based on current expectations. These forward-looking statements are subject to known and unknown risks including those set forth in our annual report on Form 10-K for the year ended December 31, 2025. Should one or more of these risks or uncertainties materialize, or the underlying assumptions or estimates prove incorrect, actual results may vary materially from those that we express today.

如簡報第 2 頁所示，我們今天的多項發言包含基於目前預期的前瞻性陳述。這些前瞻性陳述受已知與未知風險影響，包括我們截至 2025 年 12 月 31 日止年度之 Form 10-K 年報中所列風險。若其中一項或多項風險或不確定性發生，或相關假設或估計證明不正確，實際結果可能與我們今天所表達者有重大差異。

In addition, as noted on slide 3 of the presentation, some of our remarks today contain non-GAAP financial measures as defined by the SEC. You can find reconciliations of the non-GAAP financial measures to the most comparable GAAP measures attached in the appendix to the presentation and to our first quarter 2026 earnings press release.

此外，如簡報第 3 頁所示，我們今天的部分發言包含美國證券交易委員會（SEC）所定義的非 GAAP 財務衡量指標。您可在簡報附錄以及我們 2026 年第一季財報新聞稿中，找到非 GAAP 財務衡量指標與最可比 GAAP 指標之調節表。

Today's call is set to end at 5:45 PM Eastern Time. In order to maximize participation opportunities on the call, we'll take just one question from each analyst.

今天的電話會議預計於美東時間下午 5:45 結束。為了讓更多人有機會參與提問，我們將每位分析師僅接受一個問題。

Please turn to slide 4 of the presentation for the call agenda. During today's call, Dave Graziosi will provide a business update and briefly review the company's performance. Scott Mell will then discuss Allison's segment reporting structure and further review Allison's first quarter 2026 financial performance and Allison's full year guidance update prior to commencing the Q&A.

請翻到簡報第 4 頁查看本次電話會議議程。在今天的電話會議中，Dave Graziosi 將提供業務更新並簡要回顧公司表現。接著 Scott Mell 將說明 Allison 的分部報導架構，並進一步回顧 Allison 2026 年第一季財務表現，以及 Allison 全年財測更新，之後再進入問答環節。

Now I'll turn the call over to Dave.

現在我把電話交給 Dave。

Thank you, Jackie. Good afternoon, and thank you for joining us. Please turn to slide 5 of the presentation for our first quarter business update.

謝謝你，Jackie。各位下午好，感謝各位加入我們。請翻到簡報第 5 頁，查看我們第一季的業務更新。

First, I want to recognize and thank our global employee base for all the work done so far this year. Our teams have been working diligently on integration and value capture within both Allison business units. Our execution has tracked closely with our planning and the integration process is proceeding in a disciplined and structured manner.

首先，我想肯定並感謝我們全球員工今年迄今所完成的所有工作。我們的團隊一直在兩個 Allison 事業單位內，勤勉推動整合與價值擷取。我們的執行與規劃高度一致，整合流程正以嚴謹且有架構的方式推進。

Having said that, it has not been without a tremendous amount of effort by the Allison teams to arrive at where we are today. As our teams more closely coordinate efforts, we are beginning to see the initial phases of synergy realization to take shape across several key areas and expect to begin to see financial benefits later in 2026. It's been encouraging to see the groundwork late prior to the transaction, translate into real momentum and reaffirmed guidance in achieving our target of $120 million of annual run rate synergies.

話雖如此，能走到今天這一步，Allison 團隊也付出了極大的努力。隨著團隊更緊密地協調合作，我們開始看到多個關鍵領域的協同效益逐步成形，並預期在 2026 年稍晚開始看到財務效益。令人鼓舞的是，交易前期所奠定的基礎正在轉化為實質動能，並使我們得以重申指引，朝向每年 1.2 億美元年度化（run rate）協同效益目標邁進。

We remain confident in our acquisition thesis, accelerating sales growth through the strategic combination of the two business units, strengthening our localized production footprint and generating sustainable cost reductions that enhance long-term shareholder value. Allison's reach is now greatly expanded with our global operations, allowing for more localized production and opportunities for cost reductions.

我們對本次收購論點仍具信心：透過兩個事業單位的策略性結合加速銷售成長、強化在地化生產布局，並創造可持續的成本降低，以提升長期股東價值。隨著全球營運版圖擴大，Allison 的觸及範圍已大幅延伸，得以推動更在地化的生產並創造降本機會。

By leveraging increased purchasing scale and utilizing manufacturing in best-cost countries, we expect to drive value creation and margin improvement across our business.

透過擴大採購規模並運用最佳成本國家（best-cost countries）的製造能力，我們預期將在整體業務中推動價值創造與毛利率改善。

I want to give another welcome to our new colleagues around the world, and thank you for all that you do. It's been a productive first quarter and exciting times for Allison as we enter this new chapter.

我也想再次歡迎我們遍布全球的新同仁，並感謝各位的付出。第一季成果豐碩，對 Allison 而言，進入新篇章之際令人振奮。

Moving now to a brief update on our first quarter sales performance and end market outlooks for both of our business units. Please turn to slide 6.

接下來，我將簡要更新我們兩個事業單位第一季的銷售表現與終端市場展望。請翻到第 6 頁。

Starting with our legacy Allison Transmission business. First-quarter net sales were $733 million, a year-over-year decline of 4% when compared against a robust first quarter of 2025. For the North America Off-Highway end market, we continue to view the truck market with cautious optimism. Although order trends have shown strength and implies a slight ramp throughout the year, we believe there is still uncertainty surrounding geopolitical impacts, including tariffs and final rulings on emissions regulations that are hindering end users new vehicle purchasing decisions. Continuing with the Allison Transmission business unit, the defense end market had an extremely strong first quarter, with revenue up 64% year over year.

先從我們既有的 Allison Transmission 業務開始。第一季淨銷售額為 7.33 億美元，與 2025 年第一季的強勁表現相比，年減 4%。就北美非公路（Off-Highway）終端市場而言，我們對卡車市場仍抱持審慎樂觀。儘管訂單趨勢展現強度，並暗示全年將小幅爬升，但我們認為地緣政治影響仍存在不確定性，包括關稅以及排放法規最終裁定，這些因素正抑制終端用戶的新車採購決策。再就 Allison Transmission 事業單位而言，國防終端市場第一季表現極為強勁，營收年增 64%。

We continue to see strength from international customers, primarily in track programs with both legacy and new products, including our 3040 MX cross-drive transmission. We hold a favorable outlook for the defense end market as national security becomes even more relevant to nations around the world, leading to increased budgets and new programs being funded.

我們持續看到國際客戶需求強勁，主要來自履帶（track）專案，涵蓋既有與新產品，包括我們的 3040 MX 交叉驅動（cross-drive）變速箱。隨著國家安全對全球各國的重要性日益提升，帶動預算增加並資助新專案，我們對國防終端市場維持正向展望。

Please turn to slide 7. The Allison Off-Highway business unit generated $673 million of sales in the first quarter with continued growth in the mining end market driven by elevated commodity prices, including gold, copper and rare earth minerals. The construction and material handling end market also performed in the first quarter as global construction markets are seeing steadier investments and positive developments, particularly in Europe.

請翻到第 7 頁。Allison Off-Highway 事業單位第一季銷售額為 6.73 億美元；在金、銅與稀土礦物等大宗商品價格維持高檔的帶動下，礦業終端市場持續成長。建築與物料搬運終端市場第一季亦有表現，因全球建築市場投資趨於穩健並出現正向發展，尤其在歐洲。

In the agriculture end market, while commodity prices remain a driving factor, there are early positive indicators in certain subsegments and regions, for example, the low horsepower market in India. But overall, a fairly muted environment even prior to the start of the conflict in the Middle East. On that topic, the conflict in the Middle East currently has undetermined impact and implications, both favorable and unfavorable from multiple end markets across Allison business units.

在農業終端市場方面，雖然大宗商品價格仍是主要驅動因素，但在部分次產業與地區已出現早期正向指標，例如印度的低馬力市場。然而整體而言，即使在中東衝突爆發之前，市場環境仍相對低迷。就此議題而言，中東衝突目前的影響與意涵仍未明朗，對 Allison 各事業單位的多個終端市場可能同時帶來有利與不利影響。

While the duration of the conflict remains uncertain, we have not seen any material disruption to our business at this time. We recognized the potential for indirect impacts across our supply chains, energy markets and broader macroeconomic conditions, and our teams are actively monitoring and maintaining close coordination.

雖然衝突持續時間仍不確定，但截至目前我們尚未看到對業務造成任何重大干擾。我們已認知供應鏈、能源市場及更廣泛的總體經濟環境可能出現間接影響，我們的團隊正積極監控並保持密切協調。

In summary, integration is progressing as expected and value capture is materializing. End markets, although impacted by uncertainty in some aspects are steady, if not showing signs of recovery. To everyone across our organization, thank you for the extraordinary commitment, resilience and teamwork you've shown. Your efforts have laid a strong foundation for Allison's futures.

總結而言，整合正如預期推進，價值擷取也正在逐步實現。終端市場雖在部分面向受到不確定性影響，但整體仍穩健，甚至出現復甦跡象。對於組織內的每一位同仁，感謝各位展現非凡的承諾、韌性與團隊合作。各位的努力已為 Allison 的未來奠定堅實基礎。

To our investors, we are confidently positioned Town lock meaningful synergies, accelerate growth and create lasting value.

對我們的投資人而言，我們已具備有利定位，可確實鎖定並實現具意義的協同效益、加速成長並創造長期價值。

Now I'll pass the call over to Scott for a review of Allison's segment reporting structure first quarter 2026 financial performance and full year guidance update. Scott?

現在我把電話交給 Scott，請他先回顧 Allison 的分部報導架構、2026 年第一季財務表現，以及全年財測更新。Scott？

Thank you, Dave, and thanks to those of you joining us on the call. Please turn to slide 8 of the presentation. Before we begin with segment and consolidated results, I want to quickly go over some housekeeping items and outline our new reporting structure.

謝謝你，Dave，也感謝各位加入本次電話會議。請翻到簡報第 8 頁。在開始說明分部與合併結果之前，我想先快速說明幾項例行事項，並概述我們新的報導架構。

First-quarter results now include segment reporting for Allison Transmission, Allison Off-Highway and Allison Central Group. The Allison Transmission business unit is the company's legacy business, excluding certain costs now accounted for within the Allison Central Group. While the Allison Off-Highway business unit reflects the business acquired from Dana at the beginning of the year. Allison Central Group is a centralized cost center, which includes certain functional costs that support the company's global operations.

第一季結果現已納入 Allison Transmission、Allison Off-Highway 與 Allison Central Group 的分部報導。Allison Transmission 事業單位為公司的既有核心業務，但不包含目前改由 Allison Central Group 認列的部分成本。Allison Off-Highway 事業單位則反映公司於年初自 Dana 收購取得的業務。Allison Central Group 為集中式成本中心，包含支援公司全球營運的特定職能成本。

Now on the left-hand side of slide 8, we provide sales, operating profit and adjusted EBITDA by segment. Segment operating income flows over to the consolidated table on the right. With further detail down to net income, and non-GAAP financial measures of adjusted diluted EPS and consolidated adjusted EBITDA.

現在請看第 8 頁投影片左側，我們提供按分部劃分的銷售額、營業利益與調整後 EBITDA。分部營業利益會匯總至右側的合併表。並進一步細分至淨利，以及非 GAAP 財務衡量指標：調整後稀釋每股盈餘（EPS）與合併調整後 EBITDA。

Please note that first-quarter gross profit in the Allison Off-Highway segment was negatively impacted by approximately $76 million of onetime acquisition-related purchase price accounting items.

請注意，第一季 Allison Off-Highway 分部的毛利受到約 7,600 萬美元一次性收購相關購買價格會計（PPA）項目的負面影響。

On a consolidated basis, first quarter net income decreased year over year to $112 million, driven by the addition of costs from the Allison Off-Highway business unit, including approximately $76 million of expenses related to the stepped-up basis in inventory and incremental depreciation expense related to the step-up basis in fixed assets and an additional $22 million of intangible asset amortization expense.

以合併基礎計，第一季淨利年減至 1.12 億美元，主要係因新增 Allison Off-Highway 事業單位的成本所致，其中包括約 7,600 萬美元與存貨成本基礎調增（step-up）相關的費用、與固定資產成本基礎調增相關的額外折舊費用，以及另有 2,200 萬美元的無形資產攤銷費用。

The year-over-year decrease in net income was also driven by higher interest expense net, along with approximately $17 million of onetime acquisition-related integration expenses.

淨利年減亦受到利息費用淨額上升的影響，另包含約 1,700 萬美元一次性收購相關整合費用。

Moving down to per share earnings. First-quarter diluted EPS was $1.33. When excluding the effect of noncash nonrecurring, infrequent or unusual items, including the costs associated with the acquisition of the Allison Off-Highway business unit, adjusted net income and adjusted diluted EPS were $216 million and $2.57 per share, respectively.

接著看每股盈餘。第一季稀釋 EPS 為 1.33 美元。若排除非現金、非經常性、低頻或異常項目的影響（包括與收購 Allison Off-Highway 事業單位相關的成本），調整後淨利與調整後稀釋 EPS 分別為 2.16 億美元與每股 2.57 美元。

As a reminder, reconciliations from non-GAAP financial measures can be found in the appendix of the first quarter earnings presentation and earnings press release. There will also be more detail provided in our 10-Q to be published later this week.

提醒一下，非 GAAP 財務衡量指標的調節表可見於第一季財報簡報與財報新聞稿的附錄。本週稍晚發布的 10-Q 也將提供更多細節。

Please turn to slide 9 of the presentation. First quarter adjusted diluted EPS of $2.57 increased 6% year over year, and we expect the acquisition of the Allison Off-Highway business unit to be accretive to earnings on a full year basis. Adjusted EBITDA for the first quarter was $362 million, increasing 22% year over year with adjusted EBITDA margin at 26%, reflecting disciplined execution across our business units despite the less than ideal operating environment.

請翻到簡報第 9 頁。第一季調整後稀釋 EPS 為 2.57 美元，年增 6%，且我們預期收購 Allison Off-Highway 事業單位在全年基礎上將對盈餘具增益（accretive）。第一季調整後 EBITDA 為 3.62 億美元，年增 22%，調整後 EBITDA 利潤率為 26%；儘管營運環境不甚理想，仍反映我們各事業單位的紀律執行。

As we have discussed previously, we believe that improving end market conditions in both business units will have a favorable impact on margins. Our value capture and synergy realization will also provide an uplift to our margins with our target for adjusted EBITDA margin in the 27% to 29% range.

如同先前所討論，我們認為兩個事業單位的終端市場狀況改善將對利潤率帶來正面影響。我們的價值擷取與協同效益實現也將推升利潤率，目標調整後 EBITDA 利潤率區間為 27% 至 29%。

Cash generation continues to be a key attribute of Allison with the ability to generate substantial cash flow while successfully integrating the Allison Off-Highway business unit and navigating uncertain end market environments, including geopolitical policies and conflicts.

現金創造能力仍是 Allison 的關鍵特質：在成功整合 Allison Off-Highway 事業單位的同時，亦能在不確定的終端市場環境（包括地緣政治政策與衝突）下產生可觀的現金流。

Now I will briefly highlight our capital allocation priorities. We continue to invest for long-term and sustainable growth across our business units with new products and initiatives targeting identified growth opportunities. We are also focused on debt reduction to achieve our near-term leverage targets while simultaneously returning capital to the shareholders through share repurchases and our quarterly dividend.

接下來我將簡要說明我們的資本配置優先順序。我們持續在各事業單位投資，以新產品與各項計畫鎖定已辨識的成長機會，推動長期且可持續的成長。我們也聚焦於降低負債，以達成短期槓桿目標，同時透過庫藏股回購與季度股利向股東返還資本。

At the bottom of the slide, you can see how we allocated capital in the first quarter. During the quarter, we repaid $150 million of the $300 million of outstanding borrowings under our revolving credit facility, which were used as part of the funding for the Allison Off-Highway acquisition.

在投影片底部，您可以看到我們第一季的資本配置情況。本季我們償還了循環信用額度項下 3 億美元未償借款中的 1.5 億美元；該借款係作為收購 Allison Off-Highway 的部分資金來源。

During the quarter, we also increased our quarterly dividend for the seventh consecutive year. Currently at $0.29 per share, our quarterly dividend has nearly doubled over the last seven years. And finally, we maintained our commitment to share repurchases with $20 million of our common stock bought back in the first quarter.

本季我們也連續第七年調升季度股利。目前為每股 0.29 美元，過去七年我們的季度股利幾乎翻倍。最後，我們維持對股票回購的承諾，第一季回購普通股 2,000 萬美元。

We ended the first quarter with approximately $1.2 billion of share repurchase authorization remaining. Even with the recent appreciation in our share price, we continue to view our stock is undervalued relative to the underlying strength of our business units and long-term earnings potential and believe share repurchases remain an attractive use of capital at this time.

第一季結束時，我們尚餘約 12 億美元的股票回購授權額度。即使近期股價上漲，我們仍認為相較於各事業單位的基本面實力與長期獲利潛力，公司股價仍被低估，並相信此時進行股票回購仍是具吸引力的資本運用方式。

On the right side of slide 9, you can see Allison's liquidity and leverage metrics at the end of the first quarter. We ended the first quarter with $311 million of cash on hand and approximately $845 million of available revolving credit facility commitments. Our net debt is just under $4 billion resulting in a pro forma net leverage ratio below 3 times when giving consideration to a full year of earnings from the Allison Off-Highway acquisition.

在第 9 頁投影片右側，您可以看到 Allison 於第一季末的流動性與槓桿指標。第一季末我們持有現金 3.11 億美元，並有約 8.45 億美元可動用的循環信用額度承諾。我們的淨負債略低於 40 億美元；若考量收購 Allison Off-Highway 後全年盈餘的備考（pro forma）影響，淨槓桿比率低於 3 倍。

In the near term, we plan to reduce our net leverage to a target of 2x, through a recovery in our end markets, along with margin improvement through value capture and synergy realization, we will reduce our leverage ratio through both increased earnings and a concerted effort towards debt reduction.

短期內，我們計畫將淨槓桿降至 2 倍的目標。透過終端市場復甦，以及藉由價值擷取與協同效益實現帶動利潤率改善，我們將同時透過盈餘增加與積極減債來降低槓桿比率。

Before moving on to the 2026 guidance update, building on Dave's comments, I want to summarize our financial performance for the quarter. In summary, our businesses are performing well. Macroeconomic clarity across our end markets would be well received and likely drive increased volumes with favorable drop-throughs to margin performance and per share earnings. Importantly, we continue to generate substantial cash flow and invest for long-term growth while also reducing debt and returning capital to the shareholders.

在進入 2026 年指引更新之前，延續 Dave 的評論，我想總結本季財務表現。總結而言，我們的業務表現良好。若終端市場的總體經濟能見度提高，將有助於提升出貨量，並對利潤率表現與每股盈餘帶來有利的落差貢獻（drop-through）。重要的是，我們持續產生可觀的現金流並投資於長期成長，同時也在降低負債並向股東返還資本。

Please turn now to slide 10 for a review of our full year 2026 guidance. Given first-quarter results and taking into consideration current macroeconomic and geopolitical uncertainty, we are reaffirming our full year 2026 guidance provided to the market on February 23.

請翻到第 10 頁，檢視我們 2026 全年指引。鑑於第一季結果並考量目前總體經濟與地緣政治不確定性，我們重申 2 月 23 日對市場提供的 2026 全年指引。

For 2026 revenue, we expect consolidated net sales in the range of $5.575 billion to $5.925 billion. This includes net sales for the Allison Transmission business unit in the range of $3.025 billion to $3.175 billion, and net sales for the Allison Off-Highway business unit in the range of $2.55 billion to $2.75 billion.

就 2026 年營收而言，我們預期合併淨銷售額介於 55.75 億至 59.25 億美元。其中，Allison Transmission 事業單位淨銷售額預期介於 30.25 億至 31.75 億美元；Allison Off-Highway 事業單位淨銷售額預期介於 25.5 億至 27.5 億美元。

For earnings, we expect consolidated net income in the range of $600 million to $750 million subject to the completion of purchase price accounting associated with the acquisition of the Allison Off-Highway business unit. Our net income guidance for 2026 includes more than $100 million of onetime pretax expenses associated with the separation, integration and restructuring of the Allison Off-Highway business unit.

就獲利而言，我們預期合併淨利介於 6 億至 7.5 億美元，並取決於完成與收購 Allison Off-Highway 事業單位相關的購買價格會計。2026 年淨利指引包含超過 1 億美元的一次性稅前費用，與 Allison Off-Highway 事業單位的分拆、整合與重組相關。

Despite these onetime costs, we expect the Allison Off-Highway acquisition to be accretive to net income and earnings per share in 2026. Further, we expect consolidated adjusted EBITDA in the range of $1.365 billion to $1.515 billion. At the midpoint, this implies a 25% adjusted EBITDA margin.

儘管有這些一次性成本，我們預期 Allison Off-Highway 的收購在 2026 年將對淨利與每股盈餘具增益。此外，我們預期合併調整後 EBITDA 介於 13.65 億至 15.15 億美元。以中位數計，代表調整後 EBITDA 利潤率為 25%。

For our 2026 cash flow guidance, we anticipate consolidated net cash provided by operating activities in the range of $970 million to $1.1 billion. Consolidated capital expenditures in the range of $295 million to $315 million including onetime separation and integration capital of approximately $45 million and consolidated adjusted free cash flow in the range of $655 million to $805 million.

就 2026 年現金流指引而言，我們預期營業活動提供之合併淨現金介於 9.7 億至 11 億美元。合併資本支出介於 2.95 億至 3.15 億美元，其中包含約 4,500 萬美元的一次性分拆與整合資本支出；合併調整後自由現金流介於 6.55 億至 8.05 億美元。

Please note that our consolidated net cash provided by operating activities guidance includes approximately $55 million of onetime cash outlays associated with our acquisition of the off-highway business unit.

請注意，我們對營運活動所提供之合併淨現金的指引，包含約 5,500 萬美元與我們收購非公路（off-highway）事業單位相關的一次性現金支出。

This concludes our prepared remarks. Shamali, please open the call for questions.

以上為我們的預先準備發言。Shamali，請開放電話提問。

(Operator Instructions) Rob Wertheimer, Melius Research.

（接線員指示）Rob Wertheimer，Melius Research。

There's been a lot that's changed in the world since you announced the deal and even since you closed. I wonder if you could kind of talk about what versus your deal model has changed most of the positive and most of the negative, if you would.

自從你們宣布這筆交易、甚至自從完成交割以來，世界已經發生了很多變化。我想請你們談談，相較於你們的交易模型，哪些變化是最正面的、哪些是最負面的？

Rob, it's Dave. Thank you for the question. So to your point, and I think we made this comment on the last call when we were asked about tariffs. And so we -- we just got on the call. We haven't checked the news in a minute or two to see what happened. That continues, right? The rate of change in volatility in the overall market, every day is truly an adventure. Having said that, -- we're very pleased with the acquisition.

Rob，我是 Dave。謝謝你的問題。就如你所說，我想我們在上一通電話被問到關稅時也提過這點。所以我們——我們才剛上線。我們還沒來得及看一兩分鐘的新聞，看看又發生了什麼。這種情況仍在持續，對吧？整體市場波動的變化速度，每一天真的都是一場冒險。話雖如此——我們對這項收購非常滿意。

Frankly, I think you -- we would assess it currently is exceeding expectations in terms of the additional capabilities. And frankly, I think the attributes that are required to really excel in this type of market with the level of volatility that we're seeing, the operational footprint flexibility that we now have, the additional talent in multiple regions to really address and try to mitigate.

坦白說，我想你——我們目前的評估是，在新增能力方面已超出預期。也坦白說，我認為在我們所看到的這種波動程度下，要在這類市場真正表現出色所需的特質，包括我們現在具備的營運據點彈性、在多個地區新增的人才，能夠真正因應並嘗試降低影響。

At the same time, I think, as you know, with trade developments being what they are in some of the regional realignment that's going on, a broader footprint is really much more to our benefit than, frankly, we had anticipated when we originally put the deal thesis together.

同時，我想你也知道，隨著貿易發展以及正在進行的一些區域重整，更廣泛的據點布局對我們的好處，確實比我們當初建立交易論點時所預期的還要大。

Having said all that, currently, the team is very engaged dealing with those developments. But also, as I mentioned in the prepared remarks, working on value capture as well. One thing that's become clear as we're dealing with various issues is other opportunities as well that are arising out of that. But again, if we go back to pre acquisition, the ability to deal from an Allison perspective, would have been, I think, a bit more challenged, frankly, just given the rather limited footprint we had at that stage.

話說回來，目前團隊非常投入在處理這些發展。同時，如我在準備發言中提到的，也在推動價值擷取（value capture）。在處理各種議題的過程中，有一點變得很清楚：也出現了其他機會。但如果回到收購之前，從 Allison 的角度來看，因為當時我們的據點相對有限，我認為應對能力坦白說會更具挑戰。

So I'd say, in summary, very pleased from with what we've seen and what we continue to work on, but also our ability to deal with the volatility in the broader markets.

所以我想總結來說，我們對目前所看到的、以及持續推進的工作非常滿意，同時也對我們應對更廣泛市場波動的能力感到滿意。

Okay. That's helpful. So more internal capability and flexibility that's more beneficial in this changed world. And then on end markets, I mean, you inherited some trough-ish end markets. Any change overall in where you see those either standing or going? I'll stop there.

好的，這很有幫助。所以在這個變動的世界裡，更多的內部能力與彈性帶來更大的效益。那在終端市場方面，你們承接了一些接近谷底的終端市場。整體來看，你們對這些市場目前的位置或走向，有沒有任何改變？我先問到這裡。

No, it's good in terms of an update there between the prepared remarks and what we had listed out in the press release as well as the IR package, I would say, overall, our view on that in terms of end market conditions haven't really changed, I think, to use your word troughy that still really is our view.

沒有，這個更新很好。結合我們的準備發言、新聞稿以及 IR 簡報資料，我會說整體而言，我們對終端市場狀況的看法並沒有真正改變；用你的詞「接近谷底」，那仍然是我們的看法。

It's nothing else, I think it's really pointing out, again, some further opportunities as I think we hopefully get some clarity all of us in terms of these geopolitical developments what the future holds, but it's very clear equipment in our end markets continues to be utilized, and that will always lead to demand.

如果說有什麼的話，我想這其實再次指出了一些進一步的機會；我希望我們大家能在這些地緣政治發展上獲得一些更清楚的方向，了解未來會如何。但很明顯，我們終端市場的設備仍持續被使用，而這終究會帶來需求。

It's just a question of when exactly that will happen, but we feel very good about overall the point that we entered the markets.

只是問題在於那會在什麼時點發生，但我們對我們進入市場的整體時點感到非常有信心。

Tim Thein, Raymond James.

Tim Thein，Raymond James。

The question is on the target for adjusted EBITDA margins of 27% to 29%. Dave, just curious what -- in terms of your internal model, and when you see that as a potential realization. And to the extent has that move up or down in terms of -- as you close the acquisition, essentially, the time line to hit that has it changed? And how are you're thinking in terms of realization of that target?

問題是關於調整後 EBITDA 利潤率 27% 到 29% 的目標。Dave，我想了解——就你們的內部模型而言，你們認為何時可能實現？以及在完成收購之後，達成該目標的時間軸是否有上修或下修？你們如何看待這個目標的實現？

Tim, I appreciate the question. So I would say, overall, very comfortable with the target range that you mentioned. From a timing perspective, given a few of the near-term issues that have arisen that we -- that I just mentioned really having no, I think, longer-term impact in terms of our timing. So I think as we said at the time of the acquisition announcement and close, we still feel that's very attainable within a few years.

Tim，謝謝你的問題。我會說整體而言，我們對你提到的目標區間非常有信心。就時程而言，考量到近期出現的一些議題——我剛才提到過——我認為對我們的時程沒有長期影響。所以我想，正如我們在收購宣布與完成交割時所說的，我們仍然認為在幾年內非常可達成。

So one thing I would certainly repeat is the work that the team has been doing on value capture and synergies with some of these market condition changes have really pointed out, again, a number of other areas that the team is diving into as well.

我一定會再強調一次：團隊在價值擷取與綜效方面所做的工作，配合部分市場狀況的變化，也再次凸顯出其他一些領域，團隊也正在深入研究。

So again, we feel very good about the range. And I would say both the target range as well as timing being realized over the next handful of years.

所以再次強調，我們對這個區間感覺非常好。我會說，無論是目標區間或是時程，都預期在未來幾年內逐步實現。

Ian Zaffino, Oppenheimer & Company.

Ian Zaffino，Oppenheimer & Company。

Just wanted to ask on the medium-duty side. When do we think that starts bottoming out and improving in a larger way? And then when we think about just the business in general, what could potentially offset that as far as like vocational? Any other color you can give us there?

我想問一下中型車（medium-duty）這一塊。我們認為何時會開始落底並在更大程度上改善？另外，從整體業務來看，有哪些可能抵消這部分的因素，例如特種用途（vocational）？你們還能提供哪些補充說明？

Sure, Ian. This is Fred. Relative to medium duty, the first quarter was still extremely soft. I will say we're starting to see some signs that would give you some optimism there relative to sort of the lease rental guys, some of them leaning into the market a little bit. I think kind of the unknown for the second half of '26 is really where do we end up on medium-duty engines, which I think we need some direction from the EPA and how that's going to impact the cost of engines going into 2027.

好的，Ian。我是 Fred。就中型車而言，第一季仍然非常疲弱。我會說，我們開始看到一些跡象，讓你對此稍微樂觀一些，例如租賃／租車業者（lease rental）中有些開始更積極地投入市場。我認為 2026 年下半年的未知數，主要在於中型引擎最終會落在什麼狀況；我想我們需要 EPA 給出一些方向，了解這將如何影響 2027 年引擎成本。

As we've had the year modeled, we have had and continue to have the second half stepping up somewhat from the first half. Relative to Class 8 straight, I would say it was a little stronger in Q1 than our initial expectations and continues to remain steady demand.

按照我們對今年的模型假設，我們一直以來、也仍然預期下半年會較上半年有所回升。至於 Class 8 直式（straight）車型，我會說第一季比我們原先預期稍微強一些，而且需求仍維持穩定。

Okay. And then just as a follow-up on use of capital or use of cash flow, I know you talked about buybacks and deleveraging. How are you kind of prioritizing one versus the other? Because I know the stock is cheap, but at the same time you want to delever.

好的。那再追問一下資本運用或現金流的使用。我知道你們談到庫藏股與去槓桿。你們如何在兩者之間排序優先順序？因為我知道股價很便宜，但同時你們也想去槓桿。

And then are we kind of done on the M&A side for the foreseeable future just given you're in the midst of integrating a very large one? And yes, just any color there?

另外，就可預見的未來，在併購（M&A）方面我們是否大致告一段落？畢竟你們正在整合一筆非常大的收購。是的，想請你們補充一些看法。

Yes, it's Scott. On the capital allocation, I think as I mentioned on the call, I mean, Fortunately, we haven't had to make overly challenging decisions on the allocation of capital, we feel very comfortable with the cash-generating abilities of both the business units and the enterprise overall.

是的，我是 Scott。關於資本配置，我想如我在電話會議中提到的，幸運的是，我們不必在資本配置上做出過於艱難的取捨；我們對兩個事業單位以及整體企業的現金創造能力都非常有信心。

So we've talked about this year targeting getting down to 2times net leverage multiple here in the very near future, next couple of years. We paid $150 million off in the first quarter. I think we should anticipate to see that rate somewhat continue as we go throughout the course of the year. And obviously, we're still in the market repurchasing shares.

所以我們談到今年的目標，是在不久的將來、未來一兩年內把淨槓桿倍數降到 2 倍。我們在第一季已償還 1.5 億美元。我認為你們可以預期，隨著今年進行，這樣的速度會在某種程度上持續下去。而且很明顯，我們仍在市場上回購股份。

Obviously, at share prices where they are today, it's not as dilutive to shares outstanding, but still demonstrative of our ability to continue to buy back shares. So that's -- that's not going to change. So I think what you saw in the first quarter, there is a good precursor to what we expect to see over the course of the rest of the year.

顯然，以目前的股價水準來看，對流通在外股數的稀釋效應沒有那麼大，但仍能展現我們持續回購股份的能力。所以那個——那個不會改變。因此我認為你在第一季看到的情況，是我們預期在今年剩餘期間將會看到的良好前兆。

And the second question --

第二個問題——

And Ian, on your -- the second question there in terms of future inorganic opportunities otherwise, we continue to be active assessing different opportunities. So our capital allocation model that Scott went through overall leverage targets, et cetera, the ability of the business the new business, so to speak, to generate cash. We're continuing to be active looking at different opportunities.

Ian，關於你那個——第二個問題，談到未來其他外生成長機會方面，我們仍持續積極評估不同機會。所以Scott提到的資本配置模型，包括整體槓桿目標等等，以及業務——也就是所謂新業務——產生現金的能力。我們持續積極尋找不同機會。

So that being said, as you know, in your comments there, the team is very engaged working on a sizable acquisition with our new team members. So in the meantime, we're also assessing as part of the combined business, what other opportunities could present themselves from an inorganic perspective.

話雖如此，如你在評論中所知，團隊正非常投入，與我們的新團隊成員一起推進一項規模可觀的收購案。同時，作為合併後業務的一部分，我們也在評估從外生成長角度還可能出現哪些其他機會。

So we, as I said, in summary, we remain engaged in that process, and we'll certainly provide an update should one be necessary.

因此，總結來說，如我所說，我們仍持續參與該流程；若有需要，我們當然會提供更新。

Jerry Revich, Wells Fargo Securities.

Jerry Revich，Wells Fargo Securities。

I'm wondering if you could just talk about your expectations for sequential performance in the business. So I think normally for both the Allison and the Dana Off-Highway business, we had production ramping up sequentially 2Q versus 1Q and margins up sequentially. Is that how we should be thinking about this year?

我想請你談談你們對業務逐季表現的預期。我認為通常對Allison以及Dana Off-Highway業務而言，第二季相較第一季產量會逐季爬升、毛利率也會逐季上升。今年我們也應該這樣看待嗎？

And then separately, can you just comment on your expectations of synergy capture as we go through the year? Do you expect any cost benefits 2Q versus 1Q?

另外，能否請你評論一下我們在今年推進過程中對協同效益實現的預期？你們是否預期第二季相較第一季會有任何成本效益？

From a sequential standpoint, Jerry, this is Fred. We do expect things to on the transmission side to step up sequentially. And as we have it modeled, we have Q2 up of Q1, and then Q4, based on the number of days, stepping down a little. I think the drivers there will really be whether there's a meaningful prebuy in Q4.

就逐季而言，Jerry，我是Fred。我們確實預期在變速箱業務端會逐季走高。依我們的模型，第二季會高於第一季，而第四季則會因工作天數的關係略為下滑。我認為主要驅動因素會是第四季是否會出現顯著的提前拉貨（prebuy）。

And Craig, maybe you want to talk a little bit about what you're seeing sequential?

Craig，也許你想談談你看到的逐季情況？

Yes, sure. So from the Off-Highway side, there is a step-up in Q2. And then obviously, a greater portion of our business is in the European segment where in Q3, we get into the European holiday mode. So Q3 and Q4 kind of tend to go down for us, but that's the picture from the Off-Highway side.

好的，當然。就Off-Highway端而言，第二季會有一個上升。然後很明顯，我們較大一部分業務在歐洲市場，而第三季會進入歐洲假期模式。因此第三季和第四季對我們來說通常會下滑一些；這就是Off-Highway端的情況。

Go ahead.

請繼續。

No, perfect. You read my mind. I was going to ask the synergy capture part of the question.

不，太好了。你正好說到我心裡。我本來就要問協同效益實現那部分的問題。

Yes. It's Scott, Jerry. As Dave and I mentioned, look, we're getting -- we're starting to get much clearer line of sight relative to the specific opportunities, size, timing, everything that you need to get start to see that impact through the financials.

是的，Jerry，我是Scott。正如Dave和我提到的，我們正在——我們開始對具體機會、規模、時點，以及你需要的一切，取得更清晰的可視性，讓你開始能在財務數字中看到影響。

What I will tell you is our expectations on the amount of opportunity and the timing of the opportunity has not changed whatsoever. And as we go throughout the course of the year, I think you should expect to see and hear from us relative to providing more detail on impact and updates on kind of when we think we'll get the full run rate of those impacts.

我可以告訴你的是，我們對機會的量體以及實現時點的預期完全沒有改變。隨著今年進行，我認為你應該會期待看到並聽到我們提供更多關於影響的細節與更新，以及我們認為何時能達到這些影響的完整年化運行水準（full run rate）。

Super. And Fred, can I just ask a clarification? You mentioned we'll see what the EPA wants to do. What's the range of outcomes? Is there a scenario under which EPA '27 is delayed or considering the timing of engine rollout? Is there a potential for higher prebuy and media beauty? What's the range of outcomes that you alluded to that you think is reasonable?

很好。Fred，我可以再釐清一下嗎？你提到我們要看EPA想怎麼做。結果可能的範圍是什麼？是否存在EPA 2027延後的情境，或是會影響引擎導入時程？是否可能出現更高的提前拉貨以及媒體的美化（media beauty）？你提到你認為合理的結果範圍是什麼？

We're not expecting a delay. I think most are expecting some sort of modification to the warranties. And then my question -- my -- that specific comment was really relative to medium duty and the ability of everybody to meet the requirement at the beginning of 2027. And if not, what could be some associated fees for being noncompliant and then how that might impact a prebuy or not in the second half of '26.

我們不預期會延後。我想多數人預期會對保固條款做某種調整。而我那個——我——那個特定評論其實主要是針對中型車（medium duty），以及大家是否有能力在2027年初達到要求。如果不能，可能會有哪些不合規相關費用，以及這可能如何影響2026年下半年是否會出現提前拉貨。

Tami Zakaria, JPMorgan.

Tami Zakaria，JPMorgan。

The $673 million of Off-Highway revenue this quarter, could you tell us how that compares to last year? And related to that, price realization, could you comment on price realization by segment On-Highway and Off-Highway, please?

本季Off-Highway營收6.73億美元，能否告訴我們與去年相比如何？另外，關於價格實現（price realization），能否請你按On-Highway與Off-Highway分部評論價格實現情況？

I'll take the price one first and then let Craig -- this is Fred. Let Craig rolled through what he's seeing kind of in generalities on a year-over-year basis. But from a price standpoint, with Allison transmission, in the quarter, we generated about 325 basis points of price. We expect to be in that range for the full year.

我先回答價格的部分，然後讓Craig——我是Fred——讓Craig概略說明他看到的年對年情況。不過就價格而言，Allison Transmission在本季帶來約325個基點的價格貢獻。我們預期全年也會在這個區間。

And then as we talked about at the last -- on the last earnings call, anticipating price for Allison Off-Highway to be neutral year over year.

然後如我們在上一次——在上一次財報電話會議中談到的，我們預期Allison Off-Highway的價格年對年將持平。

And then from the Off-Highway end market, year-over-year comparison. So I would say that we were up probably about 10% year over year, just over 10%. It was a combination of currency factor, given the footprint in sales in Europe. Obviously, we went from a euro conversion of [107, 108 to 117]. But we also saw a significant strong demand across a number of our segments.

接著就Off-Highway終端市場的年對年比較而言，我會說我們年對年大概成長了10%，略高於10%。這是匯率因素與需求共同造成的結果，考量到我們在歐洲的銷售版圖。很明顯，我們的歐元換算從[107, 108到117]。但我們也看到在多個細分市場有顯著且強勁的需求。

As Dave alluded to in his prepared remarks, we saw the construction market that was positive for us in Europe, but was slightly negative in North America. Agriculture was a positive trend as well for us. The different subsegments of high horsepower business in Europe was strong, also the low horsepower business out of India came in strong.

正如Dave在事先準備的發言中提到的，我們看到建築市場在歐洲對我們是正面，但在北美略為負面。農業對我們而言也是正向趨勢。歐洲不同的高馬力業務子領域表現強勁，而來自印度的低馬力業務也表現強勁。

And then obviously, the mining segment was up significantly as well, obviously driven by the higher commodity prices that have seen at this time.

然後很明顯，礦業板塊也大幅成長，顯然是由於目前所見較高的大宗商品價格所驅動。

Angel Castillo, Morgan Stanley.

Angel Castillo，Morgan Stanley。

Just was hoping to go back to the end market discussion. I think, Dave, you mentioned that end market views haven't really changed, but it sounds like at least the North America On-Highway, there are some pockets that maybe are coming in a little bit better than expected? And I fully understand, I guess there's still a lot of uncertainty in the second half.

我希望回到終端市場的討論。我想，Dave，你提到終端市場觀點並沒有真正改變，但聽起來至少在北美On-Highway方面，有一些區塊可能比預期稍微好一些？我也完全理解，我想下半年仍有很多不確定性。

But as you think about the unchanged full year guide, could you just go through the other transmission end markets? Any others where you're seeing particular kind of pockets of maybe better performance. I don't know if defense looked like it was a pretty good quarter here.

但當你們維持全年指引不變時，能否請你們談談其他變速箱終端市場？是否還有其他你們看到表現可能較佳的特定區塊？我不知道國防看起來本季似乎相當不錯。

Any others that maybe are offsetting that and where you're seeing a little bit more weakness in particular, would love any kind of commentary you have in terms of order books or customer commentary?

還有其他可能抵消的因素嗎？以及你們在哪些地方看到特別的疲弱？也希望你能就訂單簿或客戶回饋提供任何評論。

Angel, this is Fred. So I think we've sort of already covered North America On-Highway, the largest end market. But you mentioned decent. I mean, it was an amazing quarter in revenue [64%] We do anticipate the balance of the year looking a lot like Q1.

Angel，我是Fred。我想我們其實已經涵蓋了北美On-Highway這個最大的終端市場。但你提到「不錯」。我的意思是，營收[64%]，這是一個非常驚人的季度。我們確實預期今年剩餘時間看起來會很像第一季。

I'd say relative to the quarter, things were a little softer outside North America On-Highway than what we had initially modeled. We do have that stepping up sequentially into Q2. I expect the service parts business to be fairly steady.

我會說，相較於本季，我們在北美以外的公路（On-Highway）市場表現比我們最初建模時稍微疲弱一些。我們確實預期在第二季（Q2）會呈現連續性回升。我預期售後服務零件業務將相當穩定。

And Craig mentioned what he's seeing from a mining standpoint, and his BU. I think we do have some upside in our global Off-Highway relative to mining as well as hydraulic fracking.

Craig 也提到他從礦業角度以及他所屬事業單位（BU）所看到的情況。我認為我們的全球非公路（Off-Highway）業務相較於礦業以及水力壓裂（hydraulic fracking）也有一些上行空間。

Got it. That's helpful. And maybe just some housekeeping questions just as we try to kind of model the pro forma business. I guess -- the $12 million of corporate, I think, is that -- that was on the first quarter, is that a good run rate for how we should think about that part of the business, the central group on an EBITDA basis? And then will you be giving the end markets that you gave for Off-Highway historicals for 2025?

了解。這很有幫助。再問幾個例行性的問題，因為我們正嘗試對備考（pro forma）業務進行建模。我想——那 1,200 萬美元的公司層級費用，我認為那是第一季的數字，這是否是一個良好的運行水準（run rate），讓我們用來思考這部分業務（以 EBITDA 口徑）的中央團隊？另外，你們會提供你們先前給過的非公路（Off-Highway）歷史終端市場拆分到 2025 年嗎？

Yes, it's Scott. I'll answer the Second question first. No, we do not intend to provide that level of detail for the business since we did not own it. Relative to the Central Group function EBITDA number of 12 when you carve out the nonrecurring and the noncash stock comp, I think that's a reasonable number to apply on an annualized basis. So yes.

是的，我是 Scott。我先回答第二個問題。不，我們不打算提供該業務那種細節層級，因為我們當時並不擁有它。至於中央團隊（Central Group）職能的 EBITDA 1,200 萬美元這個數字，當你剔除一次性（nonrecurring）以及非現金的股票薪酬（noncash stock comp）後，我認為以年化基礎來套用是合理的。所以，是的。

Luke Junk, Baird.

Luke Junk，Baird。

Maybe just continuing on the defense thread. Fred, wondering how you think about the interplay between defense and North America On-Highway, the ladder comes back later this year. If we look historically, there's been a level of inner relationship there from a supply chain standpoint, at least to some extent in the past.

也許延續國防這條主題。Fred，我想了解你如何看待國防與北美公路（North America On-Highway）之間的相互影響，因為後者會在今年稍晚回升。若看歷史，至少在過去從供應鏈角度來看，兩者之間存在一定程度的內在關聯。

But maybe looking forward, that relationship is not as strong or as relevant in the current geopolitical environment. Can you just talk about that or play a little bit?

但也許展望未來，在目前的地緣政治環境下，這種關係不再那麼強或那麼相關。你能談談這點或稍微延伸一下嗎？

Yes. I would say at this point, with a lot of the growth in defense being driven by non-US government outside North America volume. And we talked about the successes we're having with Hana in Korea with can Houter, our 3040 MX and our 40-40 MX new products for us, with the Bezu out of Poland, or cut out of Turkey, BAE Hagelin.

是的。我會說在目前這個時間點，國防的許多成長是由北美以外、非美國政府的需求量所驅動。我們也談到我們在韓國與 Hana 的合作所取得的成功，包含我們的 3040 MX 與 40-40 MX——這些對我們而言都是新產品——以及來自波蘭的 Bezu，或來自土耳其的 Cut，還有 BAE Hagelin。

So there's a lot of -- as we just said here, I mean, it's a really good backdrop for defense -- we've invested in these products beginning even pre-pandemic. They're coming to market. We're extremely excited about them. and expect to have a great year in defense.

所以有很多——就像我們剛才說的，我的意思是，國防的整體環境非常有利——我們在疫情前就開始投資這些產品。它們正在推向市場。我們對此非常興奮，並預期國防業務今年會有很好的表現。

So I would not just based on the fact that, again, it's primarily driven by outside North America, CMOS connectivity back into the North America On-Highway end market.

因此，我不會——僅僅基於這一點，也就是它主要由北美以外所驅動——就認為它會與北美公路（North America On-Highway）終端市場有很強的連動性。

And maybe just related to that, is any of this flowing through the outside North America On-Highway side, I know you can tend to pick up some commercial terms that are better there? Are we seeing any of that in that part of the business?

另外與此相關的是，這些是否有任何部分會反映在北美以外的公路（On-Highway）業務上？我知道在那邊你們有時能取得較好的商業條款。我們在那部分業務有看到任何這樣的情況嗎？

We do flow the wheel portion of the defense through the outside North America On-Highway, primarily because we're selling a lot of times through the same OEMs. And we are seeing strength primarily in Europe relative to wheel volume. We're also seeing some strength in Europe from a locational standpoint as well.

我們確實會把國防的輪組（wheel）部分放在北美以外的公路（On-Highway）業務中，主要是因為我們很多時候是透過相同的 OEM 銷售。我們看到輪組出貨量的強勁主要來自歐洲。我們也從據點/區位（locational）的角度在歐洲看到一些強勁表現。

Kyle Menges, Citigroup.

Kyle Menges，花旗集團（Citigroup）。

I just wanted to go back to some of the pricing comments and how to think about price versus cost for the two business units for the year, the 350-or-so basis points for the Allison Transmission piece of the business. At that level, are we price/cost positive for the year? Are we confident in that?

我想回到一些定價的評論，以及如何看待今年兩個事業單位的價格相對成本（price versus cost）。就 Allison Transmission 這部分業務約 350 個基點左右而言，在那個水準下，我們今年是價格/成本為正嗎？我們對此有信心嗎？

And then I guess, it sounds like for the Off-Highway business, if price is flat, assuming cost inflation is greater, so the price cost would be negative in that business for the year?

然後我想，聽起來對非公路（Off-Highway）業務而言，如果價格持平，假設成本通膨更高，那麼該業務今年的價格相對成本應該會是負的？

Yes. So -- it's Scott. Let me I'll try to answer, and then I'll let Dave and Fred lean in if they like. But on the analyst transmission business, I mean, yes, we do anticipate our year-over-year price to cover our inflationary cost factors with obviously, the delta in the first quarter being the volume and mix impact there.

是的。所以——我是 Scott。我先嘗試回答，然後如果 Dave 和 Fred 想補充也可以。就 Allison Transmission 業務而言，是的，我們確實預期我們的年對年價格能夠覆蓋通膨性的成本因素；當然，第一季的差異主要來自銷量與組合（volume and mix）的影響。

On the Off-Highway side, while they obviously have less pricing leverage, they certainly have shown the ability to take costs down on a year-over-year basis relative to either operations or purchasing.

在非公路（Off-Highway）方面，雖然他們顯然定價槓桿較小，但他們確實展現出能夠在年對年基礎上降成本的能力，不論是透過營運或採購。

But I think there may be something, Craig, you can expand on a bit.

不過我想 Craig，你可以再多補充一點。

Yes, sure. I would classify it as pretty neutral. I think that to Scott's point, there's some, let's say, minor price giveback, but we're able to offset those within our operational structure.

好的，當然。我會把它歸類為相當中性。我認為如 Scott 所說，確實有一些、可以說是小幅的價格讓步（price giveback），但我們能在營運架構內把這些抵銷掉。

Sherif, Bank of America.

Sherif，美國銀行（Bank of America）。

Just looking at the first quarter, adjusted EPS was up about 6% year over year and adjusted free cash flow is down about 34%. I understand reaffirm guide calls for both to grow on a year-over-year basis for 2026. But can you give us some color on the seasonality of working capital for the new business? And what Allison's free cash flow profile looks like now through the year?

就第一季來看，調整後 EPS 年增約 6%，而調整後自由現金流下降約 34%。我理解你們重申的指引預期 2026 年兩者都會年對年成長。但你們能否說明一下新業務的營運資金季節性？以及 Allison 現在在全年期間的自由現金流輪廓會是什麼樣子？

Yes. So a couple of questions in there. I think the cash flow profile is going to be very similar to what you experienced prior to the acquisition. With that being said that the first quarter for the Off-Highway business segment or business unit is obviously a substantially meaningful use of cash during the quarter just given some of the seasonality and the fact that it's a European-centric organization.

是的。這裡面有幾個問題。我認為現金流輪廓會與你在併購前所經歷的非常相似。話雖如此，非公路（Off-Highway）業務部門或事業單位在第一季顯然會是本季相當顯著的現金使用，主要是因為一些季節性因素，以及它是一個以歐洲為中心的組織。

But I think as you think about your modeling on a go-forward basis, you should expect to see the quarterly quarter-to-quarter trends that you've seen in the past in terms of Q1 being a use of cash, Q2 turning the other way, Q3 kind of turning back into Q4 as we get to the end of the year -- generating cash as we get to the end of the year.

但當你在往後做建模時，你應該預期會看到你過去所見的季度間趨勢：第一季（Q1）是用現金，第二季（Q2）轉為相反方向，第三季（Q3）再往第四季（Q4）那樣的方向推進；當我們接近年底時——在年底會產生現金。

We have reached the end of the question-and-answer session. I would like to turn the floor back to Dave Graziosi, for closing remarks.

我們已到達問答環節的結束。我想把時間交回給 Dave Graziosi 進行結語。

Thank you, Shamali. And thank you for your continued interest in Allison and for participating on today's call. Enjoy your evening.

謝謝你，Shamali。也感謝各位持續關注 Allison，並參與今天的電話會議。祝各位晚安。

Thank you. And this concludes today's conference, and you may disconnect your lines at this time. We thank you for your participation.

謝謝。今天的會議到此結束，您現在可以掛斷電話線。感謝您的參與。