A. O. Smith Corporation (AOS) 2026 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the second quarter 2026 earnings conference call. At this time, all participants are in a listen-only mode. (Operator Instructions) Please be advised that today's conference is being recorded.

大家好，感謝您稍候。歡迎參加 2026 年第二季財報電話會議。目前所有與會者皆為只聽模式。(接線員指示) 請注意，今天的會議將被錄音。

I would now like to turn the conference over to your speaker today, Helen Gurholt. Please go ahead.

現在我想把會議交給今天的發言人 Helen Gurholt。請開始。

Thank you, Lisa. Good morning, everyone, and welcome to the A.O. Smith second quarter conference call. I'm Helen Gurholt, Vice President, Investor Relations and Financial Planning and Analysis. Joining me today are Steve Shafer, Chief Executive Officer; Chuck Lauber, Executive Vice President; and Carrie Anderson, Chief Financial Officer.

謝謝你，Lisa。各位早安，歡迎參加 A. O. Smith 第二季電話會議。我是 Helen Gurholt，投資人關係與財務規劃及分析副總裁。今天與我一同出席的有執行長 Steve Shafer、執行副總裁 Chuck Lauber，以及財務長 Carrie Anderson。

In order to provide improved transparency into the operating results of our business, we provided non-GAAP measures. Free cash flow is defined as cash from operations less capital expenditures. North America segment organic growth excludes the impact of Leonard Valve. Adjusted earnings, adjusted earnings per share, and adjusted segment earnings exclude the impact of restructuring and impairment expenses.

為了更透明地呈現我們業務的營運成果，我們提供了非 GAAP 指標。自由現金流定義為營運活動現金流量減去資本支出。北美事業部的有機成長排除 Leonard Valve 的影響。調整後盈餘、調整後每股盈餘以及調整後事業部盈餘排除重組與減損費用的影響。

Reconciliations from GAAP measures to non-GAAP measures are provided in the appendix at the end of this presentation and on our website. A friendly reminder that some of our comments and answers during this conference call will be forward-looking statements that are subject to risks that could cause actual results to be materially different. Those risks include matters that we described in this morning's press release, among others.

GAAP 指標與非 GAAP 指標之間的調節表，已提供於本簡報末尾的附錄以及我們的網站上。提醒各位，本次電話會議中我們的部分評論與回答將包含前瞻性陳述，可能因風險因素而導致實際結果與預期有重大差異。這些風險包括但不限於我們在今天早上的新聞稿中所描述的事項。

(Event Instructions) We will be using slides as we move through today's call. You can access them on our website at investor.aosmith.com.

(活動指示) 我們將在今天的電話會議過程中使用投影片。您可至我們的網站 investor.aosmith.com 取得。

I will now turn the call over to Steve to begin our prepared remarks.

現在我將把電話交給 Steve，開始我們預先準備的發言。

Thank you, Helen, and good morning, everyone. Before we get into our results, I want to start by recognizing Chuck Lauber and thanking him for his many years of service as our CFO. Chuck has had a long and meaningful career with A. O. Smith, and his leadership has had a significant impact on our company. On behalf of all of us, Chuck, thank you for your many contributions, and we wish you all the best in retirement.

謝謝你，Helen，各位早安。在進入業績之前，我想先表揚 Chuck Lauber，並感謝他多年來以財務長身分對公司的服務。Chuck 在 A. O. Smith 擁有長久且深具意義的職涯，他的領導對公司產生了重大影響。我代表大家，Chuck，感謝你做出的諸多貢獻，並祝福你退休生活一切順利。

At the same time, I'm very pleased to welcome Carrie Anderson to A. O. Smith as our new Chief Financial Officer. Carrie brings extensive financial leadership experience across multiple industries, including complex global manufacturing organizations. She also brings a collaborative leadership style and a disciplined approach to execution.

同時，我也非常高興歡迎 Carrie Anderson 加入 A. O. Smith，擔任我們的新任財務長。Carrie 在多個產業擁有豐富的財務領導經驗，包括複雜的全球製造型組織。她也具備協作式的領導風格，以及嚴謹的執行方法。

Carrie has already become a valued partner to the team, and we look forward to her leadership in strengthening our execution rigor and advancing our strategic priorities. This is another plan and orderly leadership transition at A. O. Smith, and it reflects the strength of our broader leadership team. We have a highly experienced group of leaders with the right balance of fresh perspective and deep industry knowledge to continue executing our strategy and serving our customers well.

Carrie 已成為團隊中備受重視的夥伴，我們期待她的領導能強化我們的執行紀律並推進策略重點。這是 A. O. Smith 另一項有計畫且有序的領導交接，反映出我們更廣泛領導團隊的實力。我們擁有一支經驗豐富的領導團隊，在新觀點與深厚產業知識之間取得適當平衡，能持續執行策略並良好服務客戶。

Now moving on to our second quarter 2026 financial performance. Please turn to slide 4. While the quarter reflected very different market conditions across our businesses, I am pleased with how the A. O. Smith team executed. We continue to gain traction in North America, delivered strong free cash flow performance, and took additional actions to create value for shareholders.

接著談到我們 2026 年第二季的財務表現。請翻到第 4 張投影片。雖然本季在各項業務所面臨的市場狀況差異很大，但我對 A. O. Smith 團隊的執行表現感到滿意。我們在北美持續取得進展，交出強勁的自由現金流表現，並採取更多行動為股東創造價值。

At the company level, sales were approximately $1 billion, and adjusted earnings per share were $1.03. While our results were impacted by the continued weakness in China, our teams remain focused on operational execution and cost management across the business. One of the highlights of the quarter was the North America sales increase of 5% to $821 million, which includes Leonard Valve, our recent acquisition that expands our water management and digital control capabilities. Excluding Leonard Valve, organic sales grew 3%, supported by strong boiler growth, carryover pricing actions, and continued focus on serving our customers.

在公司層級，銷售額約為 10 億美元，調整後每股盈餘為 1.03 美元。雖然我們的結果受到中國市場持續疲弱的影響，但各團隊仍專注於全公司範圍的營運執行與成本管理。本季亮點之一是北美銷售額成長 5% 至 8.21 億美元，其中包含我們近期收購的 Leonard Valve，該收購擴展了我們的水管理與數位控制能力。若排除 Leonard Valve，有機銷售成長 3%，主要受惠於鍋爐業務強勁成長、先前定價措施的延續效益，以及持續專注於服務客戶。

Another highlight of the quarter was our cash flow performance. Free cash flow increased nearly 70% in the first half of the year, reflecting the strength and resilience of our operating model. Supported by that performance, we increased our 2026 share repurchase target by 50% to $300 million, reinforcing our commitment to disciplined capital deployment and returning cash to shareholders.

本季另一個亮點是我們的現金流表現。上半年自由現金流增加近 70%，反映出我們營運模式的強度與韌性。在此表現支持下，我們將 2026 年股票回購目標上調 50% 至 3 億美元，進一步強化我們對紀律性資本配置與回饋股東現金的承諾。

As expected, China sales decreased 28% in local currency, largely due to broader market conditions. While the China appliance market remains challenging, particularly in the premium segment, we continue to manage the business thoughtfully while completing our strategic assessment. We expect to share our conclusion on that assessment by our next quarterly earnings call and remain focused on identifying the best path forward to support long-term value creation.

如預期，中國銷售額以當地貨幣計算下降 28%，主要是受到整體市場環境影響。儘管中國家電市場仍具挑戰，尤其是高端市場，我們在完成策略評估的同時，仍持續審慎地管理業務。我們預期在下一次季度財報電話會議前分享該評估的結論，並持續專注於找出最佳前進方向，以支持長期價值創造。

With that overview, let's take a closer look at the performance of our North America businesses. North America water heater sales increased 2% in the quarter. Residential water heater industry demand remained pressured by softness in new construction as well as existing home sales, which can weigh on replacement demand. While the residential market remains competitive, we continue to make progress in our market share performance.

有了上述概覽後，讓我們更深入看看北美業務的表現。北美熱水器銷售在本季成長 2%。住宅熱水器產業需求仍受到壓力，原因包括新屋開工疲弱以及成屋銷售放緩，這些因素可能抑制汰換需求。雖然住宅市場競爭仍然激烈，我們在市占率表現方面持續取得進展。

In an environment where demand remains muted, our leading brands, broad channel presence, and strong customer relationships continue to differentiate A. O. Smith and reinforce our confidence in the long-term fundamentals of the business.

在需求仍偏弱的環境下，我們領先的品牌、廣泛的通路布局，以及強健的客戶關係，持續使 A. O. Smith 脫穎而出，並強化我們對該業務長期基本面的信心。

Our North America boiler business delivered a strong quarter with sales increasing 21%, contributing to 12% growth in the first half of the year. Growth was driven by continued momentum in residential boilers and a return to growth in commercial boilers. We remain encouraged by the performance of this business and believe our investments in product innovation, customer service, and channel partnerships continue to position us well in an attractive market with significant long-term opportunities.

我們的北美鍋爐業務本季表現強勁，銷售成長 21%，帶動上半年成長 12%。成長動能來自住宅鍋爐持續走強，以及商用鍋爐恢復成長。我們對此業務的表現仍感到鼓舞，並相信我們在產品創新、客戶服務與通路夥伴關係上的投資，持續使我們在一個具吸引力且擁有顯著長期機會的市場中保持良好定位。

North America water treatment sales decreased 2%, as growth in our priority dealer channel was offset by softer demand in other channels. While consumers remain cautious in portions of the market, we continue to focus on the channels, products, and customer relationships where we see the greatest opportunities for growth.

北美淨水處理銷售下降 2%，主因是我們優先經銷商通路的成長，被其他通路較疲弱的需求所抵銷。儘管部分市場的消費者仍保持謹慎，我們仍持續聚焦於我們認為最具成長機會的通路、產品與客戶關係。

During the quarter, we advanced actions to optimize our footprint and streamline our brand portfolio, which we believe position the business to operate more efficiently and accelerate profitable growth over time. We expect annual savings of approximately $6 million to $8 million beginning in 2027. Leonard Valve contributed $16 million to sales in the second quarter of 2026, and we continue to target double-digit growth for the full year.

本季期間，我們推進了優化據點布局與精簡品牌組合的行動，我們相信這將使業務運作更有效率，並隨時間推進加速獲利性成長。我們預期自 2027 年起，每年可節省約 600 萬至 800 萬美元。Leonard Valve 在 2026 年第二季貢獻 1,600 萬美元銷售額，我們仍以全年達成雙位數成長為目標。

I'll now turn the call over to Chuck, who will provide more specifics on our second quarter performance.

現在我把電話交給 Chuck，他將就我們第二季表現提供更具體的說明。

Thank you, Steve, and good morning, everyone. Before I begin, I want to say how grateful I am for the opportunity to have served as CFO of A. O. Smith. It's been our privilege to work alongside so many talented colleagues and to be a part of a company with such a strong culture, trusted brands, and a long history of creating value. I'm proud of what we have accomplished together and confident in the company's future. It's been a pleasure representing A.O. Smith and my many interactions with investors and analysts over the years.

謝謝你，Steve，各位早安。在開始之前，我想說我非常感激能有機會擔任 A. O. Smith 的財務長。能與這麼多才華洋溢的同仁並肩工作，並成為一家擁有強大文化、值得信賴的品牌，以及長期創造價值歷史的公司的一份子，是我們的榮幸。我為我們共同完成的成果感到自豪，也對公司的未來充滿信心。多年來能代表 A.O. Smith，並與投資人及分析師有許多互動，是我的榮幸。

I also want to welcome and congratulate Carrie and wish her great success in our new role. I look forward to working with her over the next couple of months during the transition.

我也想歡迎並祝賀 Carrie，並祝她在我們的新職務上取得巨大成功。我期待在接下來幾個月的交接期間與她合作。

Let's now turn to slide 5. North America segment sales of $821 million increased 5% compared to last year. As shown on the left side of the slide, organic growth of 3% in the quarter contributed $26 million of additional sales, while Leonard Valve sales contributed another $16 million. The organic growth was driven primarily by 21% boiler sales growth as well as carryover pricing benefits in our water heater business. These benefits were partially offset by lower residential water heater volumes as industry demand remains soft.

現在讓我們看第 5 張投影片。北美事業部銷售額為 8.21 億美元，較去年增加 5%。如投影片左側所示，本季 3% 的有機成長貢獻了 2,600 萬美元的新增銷售額，而 Leonard Valve 的銷售額另貢獻 1,600 萬美元。有機成長主要由鍋爐銷售成長 21% 以及我們熱水器業務的延續性定價效益所帶動。然而，由於產業需求仍然疲弱，住宅用熱水器銷量下降，部分抵銷了上述效益。

Our boiler performance this quarter was driven by strong commercial demand, including seasonal orders under early buy programs. In addition, the quarter benefited from customer pre-buy activity ahead of announced price increases on both water heater and boiler products, resulting in some demand pull forward into the second quarter.

我們本季鍋爐的表現主要受強勁的商用需求帶動，其中包括早鳥採購方案下的季節性訂單。此外，由於熱水器與鍋爐產品已宣布漲價，客戶在漲價前提前採購，使得部分需求提前至第二季，亦為本季帶來助益。

North America adjusted segment earnings were $200 million, modestly above the prior year period. Adjusted segment margin was 24.4%, a decrease of 100 basis points compared to last year. The benefits of organic growth and the contribution from Leonard Valve were largely offset by higher steel and other input costs.

北美調整後事業部獲利為 2 億美元，略高於去年同期。調整後事業部毛利率為 24.4%，較去年下降 100 個基點。有機成長的效益以及 Leonard Valve 的貢獻，大致被鋼材及其他投入成本上升所抵銷。

Steel costs rose year over year, approximately 20% in Q2 and combined with tariffs and other inflationary costs largely offset pricing benefits. IEEPA refunds had a minimal impact in the quarter.

鋼材成本年增；第二季約上升 20%，並且與關稅及其他通膨性成本合計後，基本上抵銷了定價效益。IEEPA 退款在本季影響甚微。

Moving to slide 6. Rest of the World segment sales was $195 million, decreased 19% due to continued weak consumer demand in China driving lower volumes, which was partially offset by favorable foreign currency translation. Rest of the World second quarter segment earnings of $10 million and segment margin of 5.2% decreased significantly compared with the prior year period. The lower segment earnings and margins were primarily due to lower sales volumes in China, which were partially offset by continued cost management.

接著看第 6 張投影片。世界其他地區事業部銷售額為 1.95 億美元，下降 19%，主因中國消費需求持續疲弱導致銷量下滑，部分被有利的外幣換算所抵銷。世界其他地區第二季事業部獲利為 1,000 萬美元，事業部利潤率為 5.2%，較去年同期大幅下降。事業部獲利與利潤率下降主要因中國銷售量降低，部分被持續的成本管理所抵銷。

Please turn to slide 7. Cash flow performance remained a significant strength in the first half of this year. We generated free cash flow of $233 million in the first half of 2026, a 67% increase over 2025, primarily driven by working capital management, which more than offset lower earnings. We ended the quarter with $181 million of cash and a net debt position of $456 million.

請翻到第 7 張投影片。今年上半年，現金流表現仍是我們的一大優勢。2026 年上半年我們產生自由現金流 2.33 億美元，較 2025 年增加 67%，主要由營運資金管理所驅動，且其增幅超過獲利下滑的影響。本季結束時，我們持有現金 1.81 億美元，淨負債為 4.56 億美元。

Our leverage ratio was 25.7% as measured by total debt to total capital, reflecting the financing associated with the Leonard Valve acquisition completed earlier this year. Even after funding the acquisition and returning capital to shareholders, our balance sheet remains strong and provides substantial flexibility to support future growth investments and acquisition opportunities.

以總負債除以總資本衡量，我們的槓桿比率為 25.7%，反映今年稍早完成 Leonard Valve 收購所相關的融資。即使在為收購提供資金並向股東返還資本之後，我們的資產負債表仍然穩健，並提供相當大的彈性，以支持未來的成長投資與併購機會。

Let's now turn to slide 8. Our capital allocation framework remains unchanged and continues to balance investment in long-term growth with meaningful returns to shareholders. Our priorities remain clear, actively manage our portfolio, invest in innovation to drive organic growth, and advance operational excellence to improve productivity.

現在讓我們看第 8 張投影片。我們的資本配置架構維持不變，並持續在長期成長投資與對股東的有意義回報之間取得平衡。我們的優先事項仍然明確：積極管理投資組合、投資創新以推動有機成長，並推進營運卓越以提升生產力。

Within portfolio management, we continue to evaluate M&A opportunities that fit our strategic direction and meet our financial criteria. Earlier this month, our Board approved our next quarterly dividend of $0.36 per share. In addition, we repurchased approximately 2.6 million shares for a total of $162 million during the first half of the year.

在投資組合管理方面，我們持續評估符合策略方向且滿足財務標準的併購機會。本月稍早，我們董事會核准下一次季度股利為每股 0.36 美元。此外，今年上半年我們回購約 260 萬股，總金額為 1.62 億美元。

Given our cash flow performance and confidence in the business, we increased our 2026 share repurchase target by 50% from $200 million to $300 million. Importantly, this increase in repurchase commitment still preserves significant flexibility to invest in growth and pursue strategic opportunities as they arise.

鑑於我們的現金流表現以及對業務的信心，我們將 2026 年股票回購目標上調 50%，由 2 億美元提高至 3 億美元。重要的是，這項回購承諾的增加仍保留了相當大的彈性，以便在機會出現時投資成長並追求策略性機會。

I'll now turn the call over to Carrie to share our 2026 earnings outlook.

接下來我把電話交給 Carrie，請她分享我們對 2026 年獲利的展望。

Thank you, Chuck, and good morning, everyone. I'm excited to join A.O. Smith and appreciate the warm welcome from Steve, Chuck, Helen, and the broader team. As I've settled into the role over the past several weeks, I've been impressed by the strength of the business, the quality of the team, and the discipline around capital allocation and financial management. I look forward to helping build on that foundation as we execute our strategic priorities and create long-term value for our shareholders. And I'm very grateful for Chuck's partnership during this transition and wish him all the best in retirement.

謝謝你，Chuck，各位早安。我很高興加入 A.O. Smith，也感謝 Steve、Chuck、Helen 以及更廣泛團隊的熱情歡迎。在過去幾週逐步熟悉這個職務的過程中，我對業務的實力、團隊的素質，以及在資本配置與財務管理上的紀律印象深刻。我期待在我們執行策略優先事項、為股東創造長期價值的同時，協助在此基礎上持續發展。我也非常感謝 Chuck 在這段交接期間的合作，並祝他退休生活一切順利。

With that, let's turn to our 2026 outlook summarized on slide 9. As we enter the second half of the year and have greater visibility into our end markets and our expected full year performance, based on our first half results and current outlook, we have narrowed our guidance range. Importantly, our overall view of the business has not materially changed since April.

接著，讓我們看第 9 張投影片所摘要的 2026 年展望。隨著我們進入下半年，對終端市場與全年預期表現的能見度提高，基於上半年結果與目前展望，我們已縮小指引區間。重要的是，自 4 月以來，我們對整體業務的看法並未出現實質改變。

Our outlook for China, North America commercial water heaters, boilers, water treatment, India, and Leonard Valve remain largely unchanged from the assumptions we provided last quarter. The primary change in our outlook relates to the North America residential water heater market, where industry demand has remained softer than we anticipated earlier in the year, reflecting continued weakness in both new construction activity and existing home sales.

我們對中國、北美商用熱水器、鍋爐、水處理、印度以及 Leonard Valve 的展望，基本上與上季提供的假設一致。展望的主要變化與北美住宅用熱水器市場相關；該產業需求持續比我們年初預期更疲弱，反映新建案活動與成屋銷售仍然低迷。

As a result, we now expect full year sales growth of approximately 2% to 3% and adjusted EPS of $3.70 to $3.85 per share compared with our prior outlook of 2% to 4% sales growth and adjusted EPS of $3.70 to $4 per share. The upper end of our prior guidance assumes that residential water heater industry demand during the second half of the year would be similar to the first half. Based on what we have seen through June and into July, we now believe results are more likely to skew towards the lower end of that prior range.

因此，我們目前預期全年銷售成長約 2% 至 3%，調整後 EPS 為每股 3.70 至 3.85 美元；相較於先前展望為銷售成長 2% 至 4%，調整後 EPS 為每股 3.70 至 4.00 美元。我們先前指引區間的上緣假設，下半年住宅用熱水器產業需求將與上半年相近。根據我們截至 6 月以及進入 7 月所觀察到的情況，我們現在認為結果更可能偏向先前區間的下緣。

Within US residential water heaters, we are narrowing our industry outlook to down low single digits for the year compared to our prior expectation of flat to down low single digits. While emergency replacement demand remains stable, we continue to closely monitor proactive replacement activity, which accounts for approximately 30% of total replacement demand and is more sensitive to consumer spending behavior. End market conditions tied to new housing activity have remained soft, primarily impacting the wholesale channel.

就美國住宅用熱水器而言，我們將產業展望收斂為全年小幅個位數下滑，先前預期為持平至小幅個位數下滑。雖然緊急更換需求仍然穩定，我們持續密切關注主動更換活動；其約占整體更換需求的 30%，且對消費支出行為更為敏感。與新屋活動相關的終端市場狀況仍然疲弱，主要影響批發通路。

Looking at our other major market assumptions, we continue to expect US commercial water heater industry volumes to be approximately flat with last year. We are maintaining our North America boiler sales growth of 6% to 8%. North America water treatment sales growth of 5% to 6% and approximately $70 million of sales from Leonard Valve. We also continue to expect our China sales to decline at a low double-digit rate in local currency.

就其他主要市場假設而言，我們仍預期美國商用熱水器產業銷量大致與去年持平。我們維持北美鍋爐銷售成長 6% 至 8% 的預期。北美水處理銷售成長 5% 至 6%，以及 Leonard Valve 約 7,000 萬美元的銷售額。我們也仍預期中國銷售額以當地貨幣計將以低雙位數的幅度下滑。

As we think about the phasing of the balance of the year, Q2 earnings benefited from early buy programs in our boiler business as well as customer pre-buy activity ahead of our announced water heater and boiler price increases, which accelerated a portion of expected Q3 demand into the second quarter. In addition, Q2 benefited from a slightly lower effective tax rate than we expect for the full year.

當我們思考今年剩餘期間的節奏時，第二季獲利受惠於我們鍋爐業務的提前採購方案，以及客戶在我們宣布熱水器與鍋爐漲價前的預先採購行為，這使得原本預期第三季的部分需求提前至第二季實現。此外，第二季也受惠於有效稅率略低於我們對全年預期的水準。

And while our full year outlook still assumes steel costs will be approximately 15% higher than 2025 levels, we expect steel inflation in the second half to be somewhat higher than the first half. Non-steel material inflation and tariffs are expected to remain a headwind as we move through the remainder of the year.

此外，雖然我們的全年展望仍假設鋼材成本將較 2025 年水準高出約 15%，但我們預期下半年鋼材通膨將略高於上半年。非鋼材原物料通膨與關稅預期在今年剩餘期間仍將構成不利因素。

Tariff policy remains dynamic. And while we continue to evaluate the recently announced changes, we currently expect the new tariffs to have a modestly higher cost impact than the tariffs they replace. While we continue to expect the overall impact to be manageable, the timing of these cost pressures, combined with the customer pre-buy activity and seasonal boiler early buy programs is expected to create a less favorable earnings profile in the third quarter.

關稅政策仍在動態變化中。雖然我們持續評估近期宣布的變更，但目前我們預期新關稅的成本影響將較其所取代的關稅略高。儘管我們仍預期整體影響可控，但這些成本壓力的發生時點，加上客戶預先採購活動與鍋爐季節性提前採購方案，預期將使第三季的獲利輪廓較不利。

Together with continued weakness in China, these factors are expected to result in Q3 EPS that is lower than both Q2 and Q4. The midpoint of our range assumes Q3 segment margins in both North America and Rest of World are generally consistent with the margins reported in Q1.

再加上中國市場持續疲弱，預期這些因素將導致第三季 EPS 低於第二季與第四季。我們區間中值的假設為：北美與世界其他地區兩個事業部在第三季的分部利潤率大致與第一季所報告的利潤率一致。

I'll now turn the call back over to Steve for closing remarks.

接下來我把電話交回給 Steve，請他做結語。

Thanks, Carrie. Moving to slide 10. I'd like to close with the key messages from the quarter. First, we delivered solid second quarter results, with sales exceeding $1 billion, 3% North America organic growth, and adjusted earnings per share of $1.03. These results reflect the strength of our North America businesses, disciplined execution across the organization, and the contribution from Leonard Valve as we begin to build out our water management platform.

謝謝，Carrie。我們看第 10 頁投影片。我想以本季的關鍵訊息作結。第一，我們交出穩健的第二季成果，銷售額超過 10 億美元、北美有機成長 3%，以及調整後每股盈餘 1.03 美元。這些成果反映出我們北美業務的強勁表現、全組織的紀律執行力，以及 Leonard Valve 的貢獻，因為我們正開始建構水管理平台。

Second, our boiler business continued to perform exceptionally well. Boiler sales increased 21% in the quarter, driving year-to-date growth of 12%. We continue to benefit from strong commercial demand and remain confident in our outlook of 6% to 8% boiler growth for the full year.

第二，我們的鍋爐業務持續表現極為出色。本季鍋爐銷售成長 21%，帶動年初至今成長 12%。我們持續受惠於強勁的商用需求，並對全年鍋爐成長 6% 至 8% 的展望維持信心。

Third, while residential water heater industry demand remains softer than we anticipated, we are confident in the long-term strength of our North America water heater business. The replacement market continues to represent approximately 80% to 85% of industry demand. Our market position remains strong, and we've continued to make progress stabilizing market share in a highly competitive environment.

第三，雖然住宅用熱水器產業需求仍較我們預期疲弱，但我們對北美熱水器業務的長期實力仍具信心。汰換市場仍約占產業需求的 80% 至 85%。我們的市場地位依然穩固，並且在高度競爭的環境中持續推進市占率的穩定。

Fourth, our strategic assessment of the China business is nearing completion. While market conditions remain challenging, we are focused on determining the best path forward to support the long-term success of the business and create value for shareholders.

第四，我們對中國業務的策略性評估已接近完成。雖然市場狀況仍具挑戰，我們正專注於判定最佳前進路徑，以支持該業務的長期成功並為股東創造價值。

Finally, our business has continued to generate strong cash flow, which provides flexibility to invest in our businesses while returning capital to shareholders. This confidence is reflected in the 50% increase in our 2026 share repurchase target to $300 million.

最後，我們的業務持續產生強勁的現金流，這讓我們在投資各項業務的同時，也能回饋資本給股東，具備更大彈性。這份信心反映在我們將 2026 年股票回購目標上調 50% 至 3 億美元。

As Carrie discussed earlier, we have updated our full year outlook to reflect continued softness in North America residential water heater industry demand. Importantly, our outlook for our other major businesses and markets remains largely consistent with the assumptions we provided earlier this year.

如 Carrie 先前所述，我們已更新全年展望，以反映北美住宅用熱水器產業需求持續疲弱。重要的是，我們對其他主要業務與市場的展望，仍大致符合我們今年稍早提供的假設。

Overall, we remain confident in our strategy, our market positions, the resilience of our replacement-driven businesses, and our ability to create long-term value for shareholders.

整體而言，我們對策略、市場地位、以汰換需求驅動之業務的韌性，以及為股東創造長期價值的能力，仍具信心。

With that, we conclude our prepared remarks and open the call for your questions.

以上為我們的準備稿內容，接下來開放提問。

(Operator Instructions) Bryan Blair, Oppenheimer.

（接線員指示）Bryan Blair，Oppenheimer。

Chuck, thank you very much for all the help over the years, and Carrie, look forward to working with you.

Chuck，非常感謝你多年來的協助；Carrie，也期待與你合作。

Thank you. Likewise.

謝謝。我也是。

Glad to be here.

很高興在這裡。

I guess to start, you did revise the US resi water heater industry volume outlook. Although down low single digits still entails stabilization going forward. And that certainly counters pretty weak industry data year-to-date and then generally unchanged macro variables. So I guess, simple question, what gives your team confidence in that stabilization over the coming months?

我想先從這裡開始：你們確實下修了美國住宅用熱水器產業的出貨量展望。雖然下修到低個位數下滑仍意味著後續將趨於穩定。但這與年初至今相當疲弱的產業數據，以及整體上變動不大的總體變數，似乎有所矛盾。所以我想問個簡單的問題：是什麼讓你們團隊對未來幾個月的需求穩定有信心？

Yeah, Bryan, when we kind of look at the way the industry rolls out, just recall that in '24 and in '25, we really had also price increases in the first half of the year, pulling volume into the first half, so some of the comps that we're seeing industry data, kind of through May are comping against a pretty strong front half of the year.

是的，Bryan，當我們看產業的走勢時，請回想在 24 年與 25 年，我們在上半年也有漲價，將部分量拉到上半年，因此你看到的產業數據（大概到 5 月）是在跟上半年相當強勁的基期做比較。

The way we have the year laid out, the last couple of years, has been in the 52%, 53% in the front half. And this year, we have it about 51% in the front half. So we don't have quite as much pull forward in the overall outlook, and we have a little easier comps as we go into the back half of the year.

過去幾年我們對全年配置的規劃，上半年大約占 52%、53%。而今年我們規劃上半年約占 51%。因此在整體展望中，我們沒有那麼多的提前拉貨效應，且進入下半年後比較基期會稍微容易一些。

Okay. Understood. That makes sense. I was hoping you could offer some more data on how your team is thinking about North American margins in Q3 and Q4. We obviously have your full year outlook sweeping back into the second half overall.

好的。了解。這很合理。我也希望你們能提供更多數據，說明團隊如何看待第三季與第四季北美的利潤率。我們顯然看到你們的全年展望在整體上於下半年回升。

But just given all the moving parts at hand, price costs certainly amongst those factors, that would be very helpful if you spoke to quarterly expectations.

但考量目前有許多變動因素，包含價格與成本等，若能談談按季度的預期會非常有幫助。

Yeah. I'll take that call. And Chuck, if there's something I missed, feel free to chime in here. I would say, generally, in the second quarter, our price cost relationship was slightly positive. And overall, we're taking pricing actions in our water heating at 4% to 7%. They're expected to begin to be realized midway through the third quarter.

好的。我來回答這題。Chuck，如果我有遺漏也請隨時補充。我會說，整體而言，第二季我們的價格與成本關係略為正向。而在熱水加熱（water heating）業務方面，我們正在採取 4% 到 7% 的定價行動。預期將在第三季中段開始反映出來。

So we expect to see more of a contribution of that price, as we move into the second half. But at the same time, we're also -- if you go back to my prepared remarks, you see a ramp-up in some of our cost that is expected to increase, particularly steel in the back half of the year.

因此，隨著進入下半年，我們預期價格貢獻會更明顯。但同時，我們也——如果你回顧我先前的準備稿，你會看到我們部分成本預期將上升，尤其是下半年鋼材成本的上升幅度會更明顯。

And so overall, I would say in the back half of the year, we're going to be more neutral, more neutral in that price-cost relationship. Specifically for the third quarter, I mentioned that the North America margins will be similar to Q1. And that's more reflective of the fact that, as you think about the demand that we saw move into the second quarter compared to the third quarter, that's going to have a bit of some volume pressure there and the fact that we're going to have some of that price kind of build over the quarter, as those new effective price increases come into effect. So we won't have a full quarter impact of those new price increases in Q3 and will have the full benefit in Q4.

因此整體而言，我會說下半年我們的價格—成本關係會更趨於中性、較為中性。就第三季而言，我提到北美利潤率將與第一季相近。這主要反映：相較於第三季，部分需求已提前至第二季，將帶來一些量的壓力；以及隨著新的實施價格調整生效，我們的價格效益會在季度內逐步建立。因此第三季不會有新一輪漲價的完整季度效益，而第四季將可享有完整效益。

Anything else, Chuck, to add?

還有其他要補充的嗎，Chuck？

No, I agree.

沒有，我同意。

Mike Halloran, Baird.

Mike Halloran，Baird。

And let me echo Bryan's comments about Chuck, I enjoyed working with you for what was a very long period of time. And Carrie, welcome. I look forward to working with you as well.

我也想呼應Bryan對Chuck的評論，能和你共事這麼長的一段時間我很享受。Carrie，歡迎加入。我也期待與你合作。

Chuck is a little sensitive to when we say a very long period of time.

當我們說「很長的一段時間」時，Chuck會有點敏感。

Hey, look, I'm incrementing myself there, too, unfortunately. So can we talk a little bit about the residential landscape specifically? Obviously, the environment is weaker. I understand the back half guide. But maybe just talk a little bit about the market share comments and how you feel like you're stabilizing things on that side. And any difference or trend line that you're seeing on the wholesale versus retail side of things?

嘿，你看，不幸的是我也把自己算進去了。那我們能不能特別談談住宅市場的格局？顯然，環境比較疲弱。我理解你們對下半年的指引。但也許請談談你們提到的市占率，以及你們覺得在那一端如何讓情況趨於穩定。另外，你們在批發端相對於零售端，有沒有看到任何差異或趨勢線？

Yeah. So maybe first off, regarding wholesale, retail, we can see -- continue to see kind of retail overall in the industry gain a little bit of share. Some of that is because of the dynamics in the industry like impact wholesale a little bit more than retail, but also some of the big box retailer players are really getting organized around how to go after, in particular, kind of the small pros.

有的。所以也許先談批發、零售：我們看到——也持續看到——整體產業的零售端市占率略有提升。部分原因是產業的一些動態對批發端的影響比對零售端更大；但同時，一些大型賣場型零售商也確實在組織化運作，特別是針對小型專業承包商（small pros）如何去爭取。

And so there's that dynamic that's playing out. We've been playing out, I'd say, for years and maybe accelerated a bit in the last few quarters, as there's been a lot more pressure, I think, on the wholesale side of the business. So that's one fact that's out there.

所以這個動態正在發生。我會說這其實已經持續了好幾年，可能在最近幾個季度又加速了一些，因為我認為批發端業務承受的壓力更大。所以這是一個客觀存在的事實。

I've talked about in the past kind of market share specifically on the wholesale side. We're very pleased with sort of how we perform in retail with our retail partners. But on the wholesale side, it can be a little bit lumpy as there are some channel movements, and there are some actions that are taken either by us or competitors. And so we see that kind of right up and down a little bit. But what we look to really do is make sure that we have a stable share performance, and with the end of last year, we kind of had a concerted effort to go back and win back a little bit of share that we felt like maybe we had lost in that wholesale channel.

我過去也談過，特別是批發端的市占率。我們對於在零售端、與零售合作夥伴的表現非常滿意。但在批發端，因為會有一些通路移轉，也會有我們或競爭對手採取的一些動作，所以表現可能會有點起伏。因此我們會看到它有些上下波動。但我們真正想做的是確保市占表現穩定；而在去年年底，我們有一個更集中的努力，回頭去贏回一些我們覺得可能在批發通路流失的市占。

We have great relationships across the wholesale channel, we obviously know the players in that space very well, and we had some targeted actions to win back a little bit of share. And then, we're happy with the progress we're making there and some of the stabilization that we see in our share performance.

我們在整個批發通路都有很好的關係，顯然也非常了解那個領域的參與者；我們也採取了一些有針對性的行動來贏回一些市占。我們對目前的進展感到滿意，也看到市占表現出現一些穩定的跡象。

And then second question, just pricing. Maybe just talk a little bit about price acceptance in the North America channels, both on the boiler and then the commercial and residential water heater side? How that's being shuffled through?

第二個問題是定價。能否談談北美通路對漲價的接受度，包含鍋爐，以及商用與住宅用熱水器這一端？這些漲價是如何在通路中被消化與傳導的？

And then, I know you answered a little bit for Brian, but as you look at the last -- next two to four quarters here, how does that price cost relationship start tracking? And when do you feel like you're going to be in a really good spot on a net basis?

另外，我知道你對Brian已經回答了一點，但當你看接下來兩到四個季度時，價格與成本的關係會如何開始走勢？你們覺得什麼時候在淨額（net）基礎上會處在一個非常好的位置？

Maybe I'll start with that one and then Chuck can pick up the first part of the question. But I would say it's too early to talk about future price increases at this point. The material cost environment inclusive of tariffs remains quite dynamic. And as a result, we're watching and managing this quite closely with our teams.

也許我先回答這個，然後Chuck再補充問題的第一部分。但我會說，現在談未來的再度漲價還太早。包含關稅在內的原物料成本環境仍然相當動態。因此，我們正與團隊一起非常密切地觀察並管理。

And our goal is to always maintain a balance in that price-cost relationship, as we also want to work to make sure that our customers are kept competitive here. So at this point, I would say we're always going to continue to monitor to try to maintain that relationship.

我們的目標一向是維持價格與成本關係的平衡，同時我們也希望確保客戶在這裡能保持競爭力。所以在這個時間點，我會說我們會持續監控，努力維持這個關係。

As far as acceptance of the price, I mean, it's pretty early days of the price increase, right? We expect that we're going to start seeing the positive impact of pricing call it, midway through the third quarter, and that's both on water heaters and boilers. It was delayed. It was delayed a couple of months.

至於對漲價的接受度，我是說，漲價才剛開始不久，對吧？我們預期大約在第三季中段開始看到定價帶來的正面影響，熱水器和鍋爐都是如此。它有延後。延後了幾個月。

So we have a little bit of pressure in Q3 that we may not have seen had it been affected immediately that we're going to always keep competitive in the marketplace, and we feel that it should act out, as it has, as history would act out. So we, right now, have it in our outlook.

所以第三季我們會有一些壓力；如果當時能立即生效，可能就不會看到這些壓力。我們會一如既往在市場上保持競爭力，而且我們認為結果應該會如同過往、也如同歷史經驗所呈現的那樣發展。所以我們目前已把它納入我們的展望之中。

Nathan Jones, Stifel.

Nathan Jones，Stifel。

Carrie, welcome to the team. I guess, first question, Chuck, you just mentioned that the price increases were delayed by a couple of months. Can you talk about the dynamics around that and why they were delayed and confidence in them getting out into the market now than they're supposed to?

Carrie，歡迎加入團隊。我想第一個問題是，Chuck，你剛提到漲價延後了幾個月。你能談談背後的動態、為什麼會延後，以及你對於現在能按原計畫把漲價推向市場的信心嗎？

Yeah. I mean, it was roughly a month that it was pushed back, and it really was because we wanted to remain competitive with some of the other market participants that came out with pricing, but everybody is in the market with pricing. We expect it to go forward as planned.

可以。我的意思是，大約延後了一個月，主要是因為我們希望在競爭上能與其他市場參與者保持一致；但現在大家都已經在市場上推出了定價。我們預期會按計畫推進。

Okay. I guess the second question is, you guys have had a fair amount of experience over the last several years with large price increases to cover inflation, so is the industry. And a lot of experience with the demand pull forward dynamics that come along with that. Can you talk about how that's played out this time versus in previous occasions? How confident you are on -- I guess, what you've estimated as pull forward into 2Q that plays out in the back half?

好的。第二個問題是，你們在過去幾年為了因應通膨而進行大幅漲價方面有相當多的經驗，整個產業也是。也累積了很多與之相伴的需求提前拉貨（pull forward）動態的經驗。你能談談這次相較於過去幾次是如何發展的嗎？以及你對於——我想——你們估計第二季提前拉貨、而在下半年回吐的那部分，有多大信心？

I guess, the risk around maybe the pull forward being a bit more, the market being a bit weaker than you think and the risk to the second half, just any color on your confidence there?

我想問的是：如果提前拉貨的幅度更大、而市場比你們想的更疲弱，對下半年會有什麼風險？能否談談你們在這方面信心的依據？

And I would say it's a little bit of science and a little bit of art relative to how you manage that. And the important thing is we work really closely with our customers, as we think about stepping in and stepping through a price change. A couple of years ago, we saw a really big pull forward in 2024 and 2025. We look to manage that and balance that a little bit with our customers to help on the production efficiencies.

我會說，這在管理上有一部分是科學、一部分是藝術。重點是，當我們思考如何介入並推進一次價格調整時，我們會與客戶非常緊密地合作。幾年前，我們在2024年和2025年看到非常明顯的提前拉貨。我們會嘗試與客戶一起管理並在一定程度上平衡這件事，以協助提升生產效率。

Every time we go through this, we try to find the right balance of serving when our customers need, responding to the marketplace, but also then optimizing for what makes sense in terms of our own production efficiencies. And so we continue to work with our customers, and I'd say it's not a formula every year is exactly the same.

每次遇到這種情況，我們都會嘗試在滿足客戶需求、回應市場，以及在我們自身生產效率最優化之間，找到合適的平衡。因此我們會持續與客戶合作；我會說這不是一個每年都完全相同的公式。

There's always different dynamics to navigate through and different priorities from our customers that we work through with them. But I'd say -- this year, I think we continue to work closely to make sure we serve the demand serve our customers well but also work with our customers when it made sense in terms of getting the efficiencies on that back end. So I think it's a little bit more of a muted pull forward this year just by some of the nature of the dynamics that were out there.

我們總是需要因應不同的互動動態，以及客戶各自不同的優先事項，並與他們一起協調推進。但我會說——今年我們仍持續緊密合作，確保我們能滿足需求、把客戶服務好，同時也在合理的情況下，與客戶一起在後端取得效率提升。因此，我認為今年的提前拉貨幅度相對較為溫和，部分原因在於當時存在的一些動態因素。

And just as a reference point, you mentioned prior price increases. I mean, this price increase of 4% to 7% is probably on the lower end of what we've experienced over the last couple of years from price increase amount. And to Steve's point, we expect and feel like I said, a little bit less of an impact than maybe some of the other previous price increases.

另外作為參考，你提到先前的漲價。我的意思是，這次4%到7%的漲價幅度，可能是在過去幾年我們所經歷的漲價幅度中偏低的一端。而且如Steve所說，我們預期並且感覺——如我所提——其影響會比先前某些漲價來得更小一些。

Scott Graham, Seaport Research Partners.

Scott Graham，Seaport Research Partners。

Chuck, congratulations on a great run. Thank you for being so easy to work with, and Carrie, welcome aboard. I have sort of a similar question to Nathan. Is there any way to size the dollars on the prebuy? What was pulled into the second quarter from the third quarter?

Chuck，恭喜你一路以來的出色表現。謝謝你一直都非常好合作，Carrie，也歡迎加入。我有個和Nathan有點類似的問題。有沒有辦法量化預先採購（prebuy）的金額？第三季有哪些被拉到第二季？

And then secondarily, could you talk about some of the competitive and maybe more promotional activity you're seeing in the wholesale channel because we kind of know what they are all about and not a reduction in foot traffic in all of this? And within that, maybe discuss you have a new -- another new competitor, and I know it's not a big overlap with you, but the dynamics of what they're doing in that channel.

其次，你能談談你在批發通路看到的一些競爭狀況，以及可能更偏促銷的活動嗎？因為我們大概知道他們的作法，而且在這一切之中，實體客流並沒有下降。另外，在這之中也請你談談你們有一個新的——另一個新競爭者；我知道和你們的重疊不大，但想了解他們在該通路所做事情的動態。

I'll take the first part on question on the size of the revalue. We generally don't sign that, but I think within my prepared remarks, we did want to make sure that we gave you a little bit more commentary around the phasing of the year because there was some pull forward demand in the third quarter into the second quarter.

我先回答第一部分，關於重估（revalue）規模的問題。我們一般不會量化說明，但我想在我事先準備的發言中，我們確實希望就年度節奏（phasing）提供更多一些評論，因為第三季有部分需求提前到第二季。

So I think my comments around the shape of the second half was specifically those comments on the third quarter can help you kind of think through that in terms of thinking through the dynamics in the third quarter, inclusive of some higher steel costs that we expect in the half -- in the second half of the year, tariff dynamics as well as the pricing that we expect to have full traction in the back half of the quarter.

所以我對下半年走勢的評論，特別是關於第三季的那些說法，應該能幫助你在思考第三季動態時做推演；其中包含我們預期在下半——也就是今年下半年——會出現較高的鋼材成本、關稅動態，以及我們預期在下半年能完全反映的定價。

And I would just supplement that with -- if you look at how we're -- we have the industry laid out for the year, this year, we're saying 51% in the first half, 49% in the back half. Prior two years, we're closer to 52% to 53% in the front half. So we do expect to have less of an impact than what we've seen in other price increase pull forward.

我再補充一點——如果你看我們對今年產業的年度分布，我們說上半年51%、下半年49%。前兩年我們上半年更接近52%到53%。因此，我們確實預期其影響會比我們在其他漲價所看到的提前拉貨效應更小。

Your question around kind of wholesale dynamics, we've talked about some of the things that are putting pressure on the wholesale market. There's a couple of players that I think look to serve that market, and it's a competitive environment. And even more so when you don't have kind of meaningful growth that helps all the players sort of kind of move forward.

你問到批發端的動態，我們談過一些正在對批發市場造成壓力的因素。我認為有幾個參與者都在服務這個市場，競爭環境相當激烈。而且當缺乏能讓所有參與者一起向前推進的顯著成長時，競爭會更為激烈。

So yeah, it's a competitive space. I do think, though, I go back to -- as it relates to new entrants and people trying to get into that space, it's difficult to do because you really have to have full conviction, I think, to serve the wholesale market well. You need to have the full breadth of the product portfolio, be able to circle the replacement market as well as the new construction demand.

所以，是的，這是一個競爭激烈的領域。不過我也回到——就新進入者、以及想切入這個領域的人而言，這其實很難，因為我認為你必須要有十足的決心，才能把批發市場服務好。你需要完整且廣泛的產品組合，能同時涵蓋汰換市場以及新建需求。

You've got to be able to support it with obviously high-quality products at scale. You've got to be able to have the relationships and the brands to reach the contractors and that they know you're going to stand behind the products and it's the products that they're comfortable with and used to and you also have to have products that have the technology moving forward.

你必須能以規模提供高品質產品來支撐。你必須具備關係網絡與品牌，能觸及承包商，讓他們知道你會為產品背書，產品是他們熟悉、用得習慣且信任的；同時你也必須有具備前瞻技術的產品。

And I think from that standpoint, that's how we serve that market with conviction. And I think it has served us well and especially served as well as new people try to get into that space. It's difficult to do without that full level of conviction in the full business model.

我認為從這個角度來看，這就是我們以高度決心來服務該市場的方式。我認為這對我們很有幫助，尤其當新進者試圖進入這個領域時更是如此。若沒有對完整商業模式的那種全方位投入與決心，要做到其實很難。

Tomo Sano, JPMorgan.

Tomo Sano，JPMorgan。

This is [Brendan] on for Tomo. So if I could just start on your product portfolio. As we think about the ongoing evolution of your product portfolio, which product categories or technologies are your top priorities for incremental R&D investment? And then specifically, what kind of milestones should we watch for progress there?

我是[Brendan]，代替Tomo提問。我想先從你們的產品組合談起。在我們思考你們產品組合持續演進的過程中，哪些產品類別或技術是你們追加研發（R&D）投資的最優先項目？另外，具體而言，我們應該關注哪些里程碑來觀察進展？

Well, as we've been talking about, certainly here in North America, in the water heater and the boiler space, we've been making big investments to expand our portfolio in the tankless segment as well as with heat pump technology. We believe those technologies have a relevant position in the future for how the water heating and the boiler space will evolve.

如同我們一直在談的，當然在北美，於熱水器與鍋爐領域，我們一直在進行大筆投資，以擴充我們在無桶式（tankless）產品以及熱泵技術方面的產品組合。我們相信，這些技術在未來熱水加熱與鍋爐領域的演進中，將具有重要且相關的定位。

So we've been making over many years now, investments there to kind of complement the strength of our more traditional tank portfolio. And we're really happy with the progress we've made in terms of the performance, the technical steps forward and how we roll those out into the marketplace and how they've been accepted in the marketplace. So I think those are areas that I think on the tankless side, we'll see how it has to play out with new construction on the heat pump side, obviously, still very much connected to regulatory and rebate actions, but we do believe that those are technologies relevant for our future.

因此，多年來我們持續在這些領域投資，以補強我們較傳統的有桶式（tank）產品組合的優勢。我們對目前的進展非常滿意，包括性能表現、技術上的推進，以及我們如何將其推向市場、以及市場的接受度。所以我認為這些都是重點領域：在無桶式方面，我們會觀察其在新建市場如何發展；在熱泵方面，顯然仍與法規與補貼（rebate）措施高度相關，但我們確實相信這些是與我們未來相關的技術。

Water treatment is a space where I think there's more innovation happening and lots of awareness happening around water treatment in North America and then how do you serve that awareness with the right types of technologies in the marketplace. That's an area that we've got to date.

水處理是一個我認為創新更活躍的領域；在北美，市場對水處理的關注度也在提升，而問題在於如何用市場上合適的技術來回應這種關注。這也是我們截至目前所投入的領域。

An increased focus on innovation as we go forward because we think it's a market space that is right for more innovative products.

展望未來，我們會更加聚焦於創新，因為我們認為這是一個適合推出更具創新產品的市場空間。

I'd say as you think about outside North America in our markets in China and India, those are real, I'd say, innovation juggernauts. The pace of change and innovation in those markets requires us to move at an incredibly high pace and they evolve and consumer tastes evolve pretty quickly there. So that's a little bit really embedded in our DNA of how we bring new products to those consumers.

我會說，若把視角放到北美以外、在中國與印度等市場，那些可說是創新引擎。那些市場的變化與創新速度，要求我們以極高的速度前進，而且當地消費者偏好也演變得很快。因此，如何把新產品帶給那些消費者，某種程度上已深植於我們的DNA之中。

Great. And then if I can get one more here. So you've highlighted deploying AI tools across order management, warranty processing, technical service, just sort of thinking how you're thinking about the scale and timeline of productivity benefits from those initiatives. Is this primarily a cost story, a customer experience story, both? And how does that kind of fit within the broader margin improvement framework?

很好。如果我可以再問一個。你們提到在訂單管理、保固處理、技術服務等方面部署AI工具；我想了解你們如何看待這些計畫在生產力效益上的規模與時間表。這主要是一個成本故事、客戶體驗故事，還是兩者兼具？而這又如何融入更廣泛的利潤率改善架構之中？

Yeah. I mean, I think like a lot of companies now where there's AI kind of experiences and experimentation happening all across the company. Some of it is just more in general productivity gains and how all employees everywhere kind of bring it into their lives and bring it into their professional careers. And then, there's more targeted kind of AI use cases that we're developing, and you mentioned a few of them. And I think, we see the reality is having a meaningful impact on both things like customer variance and our productivity.

是的。我的意思是，我認為像現在很多公司一樣，整個公司各處都在進行與 AI 相關的體驗與實驗。其中一部分更偏向於整體生產力提升，以及所有員工在各個地方如何把它融入生活並帶入職涯工作中。然後，我們也在開發更具針對性的 AI 應用情境，你也提到了其中幾個。而我認為，現實情況是它確實對像是客戶差異（variance）以及我們的生產力這兩方面都產生了有意義的影響。

It takes time a little bit to kind of build up the -- first of all, get the data structured and oriented and build up the models to really drive those programs. So we do feel like it's still early to kind of really size that for folks, but we're learning really quickly, right? It's just as you think about how quickly AI is learning, and I think our use cases of AI is evolving very quickly.

要把這些事情建立起來需要一些時間——首先要把資料結構化、整理到位，並建立模型，才能真正推動那些計畫。所以我們確實覺得現在要替大家精準量化規模還為時尚早，但我們學得非常快，對吧？就像你想的，AI 學習的速度很快，而我認為我們的 AI 用例也在非常快速地演進。

And so it is one of those things that I think you expect we'll all be talking about more and more as we go forward and as we step into the next few quarters and years about how we are putting to work those types of models. But I do see it playing out very much in serving our customers better and doing it much more efficient, more productive ways.

因此我認為，這會是那種隨著我們往前走、進入接下來幾個季度與幾年，大家會越來越常談論的議題：我們如何讓這類模型投入運作。但我確實看到它在更好地服務客戶，以及以更有效率、更高生產力的方式完成工作方面，正在非常明顯地發揮作用。

(Operator Instructions) Jeff Hammond, KeyBanc Capital Markets.

(接線員指示) Jeff Hammond，KeyBanc Capital Markets。

This is Mitch Moore on for Jeff. Just on the China decision, it sounds like you're getting close, look forward to the update next quarter. But if you look at the spectrum of potential outcomes, any chance you could give us any color on which direction you're leaning?

我是代替 Jeff 的 Mitch Moore。關於中國的決策，聽起來你們快要做出結論了，也期待下季的更新。但如果看各種可能結果的光譜，你能否提供一些線索，說明你們目前傾向哪個方向？

Yeah. I mean, all outcomes are still on the table, Mitch. And we've been at this process for almost a year. We've had a lot of great conversations with a lot of different potential parties. We've learned a lot about our business and the potential levers we can pull.

是的。我的意思是，所有結果目前都仍在考量範圍內，Mitch。而我們進行這個流程已經將近一年了。我們和許多不同的潛在對象進行了很多很好的對話。我們也更深入了解了我們的業務，以及我們可以運用的潛在槓桿。

And I think we're actually getting pretty good clarity of what we think we need to do to kind of position the business for success going forward, whether that's done in a structure where somebody else leads those changes and pull those levers or whether we do it in a partnership or whether we do it ourselves, I think all those options at this point are still on the table.

而我認為，我們其實已經相當清楚：為了讓業務在未來取得成功，我們需要做些什麼來定位與布局；不論是採用某種架構由其他人主導這些變革並運用這些槓桿，或是以合作夥伴關係來做，或是由我們自己來做，我認為到目前為止，這些選項仍然都在桌面上。

And I think that's part of the clarity we'll look to provide by our next earnings call is exactly how we're going to move forward there. And that clarity, I know we owe it to you and our investors, but also our customers and our employees. Obviously, as we've gone through this assessment, there's a lot of uncertainty there.

而我認為，這也是我們希望在下一次財報電話會議上提供的清晰度之一：我們究竟將如何在那裡往前推進。而這份清晰度，我知道我們不僅欠你們與投資人，也欠我們的客戶與員工。顯然，在我們進行這項評估的過程中，存在很多不確定性。

And so we recognize the need to kind of move forward and step forward and drive some of the changes that we think that are needed for the business. And like I said, how we do that or how somebody else moves forward to that is what we're trying to finalize.

因此我們也認知到，需要往前走、向前一步，並推動我們認為對業務所必需的一些變革。而如我所說，我們正在試圖定案的是：我們要如何做，或由其他人如何推進到那一步。

I appreciate the color there. And then just a cleanup question. I think you mentioned the refunds were minimal in the quarter. Could you just quantify that? And do you anticipate any more in the second half?

感謝你提供這些說明。接著是一個釐清問題。我想你提到本季的退款很少。你能否量化一下？以及你是否預期下半年還會有更多？

Yeah, I'll take that question. I mean, I think just as a reminder, we are primarily a domestic manufacturer. So a significant portion of our tariff exposure is in direct. Those tariff costs pass through to us supplier price increases. And as Chuck mentioned, in Q2, we did receive some refunds related to the EPA tariffs in the cases where advancement was the importer of record.

好的，我來回答這個問題。我的意思是，先提醒一下，我們主要是國內製造商。因此，我們相當大一部分的關稅曝險是屬於間接的。那些關稅成本會透過供應商的漲價轉嫁到我們身上。而如 Chuck 所提到的，在第二季，我們確實收到了一些與 EPA 關稅相關的退款，發生在 Advancement 作為進口登記人（importer of record）的案件中。

However, the amount in the quarter was not material, I would say, about $0.01, but recognize that the tariff environment remains fairly fluid, including the recently announced tariffs. So if I step back a bit more broadly, overall tariffs, including tariff refunds, we aren't expecting to have a material impact on earnings or margins for the full year. And we just continue to monitor that evolving environment.

不過，本季的金額並不重大，我會說大約是 0.01 美元，但也要注意關稅環境仍相當多變，包括近期宣布的關稅。所以如果我稍微拉高一點從更宏觀的角度看，整體關稅（包含關稅退款）我們預期對全年獲利或毛利率不會造成重大影響。我們會持續監控這個持續演變的環境。

David McGregor, Longbow Research.

David McGregor，Longbow Research。

This is Joe Nolan on for David. I just wanted to follow up on the tariff comments right there. I think it was mentioned in the prepared remarks that you'd be a slightly higher impact from tariffs. Could you just quantify the impact to the second half from higher tariffs?

我是代替 David 的 Joe Nolan。我想就剛才的關稅評論追問一下。我記得在事先準備的發言中提到，你們會受到關稅略高一些的影響。你能否量化一下下半年因較高關稅帶來的影響？

Yeah. We didn't quantify that. I think, again, when you think about the Section 301 tariffs replacing the Section 122 tariffs, as you think about how that was described, it would be a slightly higher headwind there. But I think our intent is to try to continue to manage those costs, like we're managing all of our different material cost inflation headwind in the back half of the year.

好的。我們沒有量化。我想，再次說明，當你把第 301 條關稅取代第 122 條關稅來看，依照先前的描述，逆風會略微更大一些。但我認為，我們的意圖是持續管理這些成本，就像我們在今年下半年管理各種原物料成本通膨逆風一樣。

So at this point, we didn't quantify that other than to say we're working through those changes and obviously believe that there will be a modest cost increase. But at this point, our plan is to continue to mitigate and manage best we can.

所以目前我們沒有進一步量化，只能說我們正在消化這些變化，並且顯然相信會有溫和的成本增加。但就目前而言，我們的計畫是盡我們所能持續緩解並管理。

I would say we're getting pretty good at navigating tariff uncertainty, reactions, understand our supply base. So there's a lot of levers we can pull to sort of to navigate through that. And I'd also say anything you can count on going forward on tariffs, right, I think it's just going to be a continued evolving landscape. So I think all companies sort of have to get really good at just responding to those changes. And I think we're getting better at that.

我會說，我們在應對關稅不確定性、各種反應，以及理解我們的供應基礎方面，已經做得相當不錯。因此我們有很多槓桿可以運用，來某種程度上穿越並應對這些情況。我也會說，未來你唯一能確定的關於關稅的事情，對吧，就是它會是一個持續演變的局勢。所以我認為所有公司都必須非常擅長回應這些變化。而我認為我們在這方面正在變得更好。

Got it. That's helpful. And then I just wanted to circle back on pricing. I was just wondering, in a softer demand environment, are you seeing higher price elasticity on the recent price increases relative to increases over recent years?

了解。這很有幫助。接著我想回到定價。我想請問，在需求較疲弱的環境下，相較於近年來的漲價，你們是否看到近期漲價的價格彈性更高？

Not, I would say no. In a softer environment, consumers are not really focused on the end price when they put in the water heater. So from a price elasticity, we're not seeing consumer push back. When you do have a situation, though, when you have volumes down and Steve mentioned earlier, some of the challenges in the wholesale channel, the wholesale channel, as a reminder, is a large part of warehousing gets pulled through is the housing side.

不，我會說沒有。在較疲弱的環境中，消費者在安裝熱水器時，其實不太會聚焦在最終價格。所以就價格彈性而言，我們沒有看到消費者的反彈。不過，當你遇到出貨量下滑的情況，而 Steve 先前也提到批發通路的一些挑戰時——提醒一下，批發通路中很大一部分的倉儲拉貨（pull-through）是來自住宅端。

And certainly, it's a competitive environment. But we wouldn't say price elasticity plays out directly.

而且這當然是一個競爭激烈的環境。但我們不會說價格彈性會直接反映出來。

Ryan Connors, Northcoast Research.

Ryan Connors，Northcoast Research。

Congrats, Chuck, and welcome, Carrie. I wanted to -- you've covered a lot of ground here. I appreciate you fitting me in, but you talked about dating ourselves. One thing I can -- I've been around the story long enough to remember that next week is the 10-year anniversary of closing on Aquasana, which was really the platform creation of the water treatment business in North America. And obviously, I don't think it's quite reached the critical scale we would have thought at this point.

恭喜你，Chuck，也歡迎你，Carrie。我想先說——你們在這裡已經涵蓋了很多面向。感謝你們把我排進來，不過你提到「讓我們顯得有點年代感」。有件事我可以——我跟這個故事夠久了，記得下週是完成 Aquasana 併購交割的 10 週年，而那其實是北美水處理業務的平台建立。而且很明顯地，我不認為它到目前為止已達到我們當時以為會達到的關鍵規模。

So I guess as you go through the restructuring, can you just update us on your strategic thinking there? I mean, are we at a point where that's going to start moving the needle in the next few years? Or at some point, do you have to make a strategic decision that it's just not reaching that scale? And what's holding it back from doing that? Just curious if you could step back from the tactical restructuring talk and just address that business from a strategic context relative to where expectations would have been than it was today.

所以我想問的是，當你們進行重整時，能否更新一下你們在那方面的策略思考？我的意思是，我們是否已經到了接下來幾年它會開始帶來明顯貢獻的階段？或者在某個時間點，你們是否必須做出策略性決定，認定它就是無法達到那個規模？以及是什麼在阻礙它做到那一點？只是好奇你是否能先跳脫戰術性的重整討論，從策略脈絡來談談這項業務，相對於當初的預期與今天的現況。

I'd say when we decided 10 years ago to step into the water treatment space, a lot of work was done to understand the landscape, understand the megatrends, trying to understand where the world was going around interest and understanding of water cleanliness, how regulatory frameworks were going to impact that. So we view it as an attractive space.

我會說，當我們在 10 年前決定進入水處理領域時，我們做了大量工作來了解產業版圖、了解大趨勢，試著理解全球對水質潔淨的關注與認知將走向何方，以及監管架構將如何影響這一切。因此我們認為這是一個具吸引力的領域。

And we knew we needed to get inorganically into it so that we can get a collection of people and businesses that really understood the space well. And as you mentioned, Aquasana was kind of the initial entry into this. And we bought a number of businesses since then, really high-quality assets that have served that water treatment space well for a number of years.

而且我們知道需要透過非有機方式進入，才能聚集一批真正熟悉這個領域的人才與企業。如你所提到的，Aquasana 算是我們最初的切入點。此後我們又收購了多家企業，都是高品質資產，多年來在水處理領域表現良好。

And I think as we've gone through that journey and as we put these businesses together, we ourselves have learned a lot about the market space and learned about kind of what the different elements of the market, the different channels, the different products. And I think what we -- what you see now is putting that learning to work, right? So what did we learn along the way? And then, what does it mean for us in terms of how A. O. Smith can participate and create value going forward?

我認為，隨著我們走過這段旅程、把這些企業整合在一起，我們自己也對市場有了很多學習，了解了市場的不同要素、不同通路、不同產品。而我想你現在看到的，就是把這些學習落地運用，對吧？也就是我們一路學到了什麼？接著，這對 A. O. Smith 未來如何參與並創造價值意味著什麼？

And sure, we have every aspiration to make the business more scale, more profitable and a bigger contributor to our portfolio, and that's some of the actions we're taking now are related to trying to position the business to do that going forward. Obviously, as you sort of refine and you focus and you prioritize, it can take a step back in terms of just sort of the growth profile and you do that.

當然，我們非常希望把這項業務做得更有規模、更高獲利，並成為我們投資組合中更大的貢獻者；而我們現在採取的一些行動，就是為了讓業務在未來能達成這些目標而做的定位。顯然，當你在精煉、聚焦與排序優先順序時，成長曲線可能會先往後退一步，而你就是得這麼做。

And we've got to focus on really fine-tuning where we want to compete and win that will help us, I think, drive more profitable growth going forward, and we've been taking some of those actions. And I think we still see it as a really attractive space. And I think now we see it as a really active space with I think even greater clarity having been a participant in it for the last decade about where it is we can go and where we think our business model could create on.

我們必須專注於更精準地調整我們要在哪些領域競爭並取勝，我認為這將有助於推動未來更具獲利性的成長，而我們也一直在採取其中一些行動。我們仍然認為這是一個非常有吸引力的領域。而且我想現在我們也把它視為一個非常活躍的領域；在過去十年作為參與者之後，我們對於可以往哪裡走、以及我們的商業模式能在哪裡創造價值，有了更清晰的認識。

Got it. That's a very helpful update. I appreciate that. And then secondly, you talked a lot about the shifts in the wholesale channel. The one thing in particular, we hear a lot about is some of your channel partners talk about this dual trade evolution where HVAC and plumbing being melted into one.

了解。這個更新非常有幫助。謝謝你。第二點，你談了很多批發通路的變化。其中一件我們常聽到的，是一些通路夥伴在談這種「雙工種」的演進，也就是 HVAC 與管路（plumbing）正在融合成一體。

Can you talk about how that impacts A. O. Smith? Is that an opportunity? Is that a risk? And how you view that? And whether that's part of the shift that you talk about in wholesale?

你能談談這對 A. O. Smith 有什麼影響嗎？這是機會嗎？還是風險？你們怎麼看待？以及這是否也是你在批發端所說的那種變化的一部分？

When I talk about shift in wholesale, it's a little bit more, I'd say, kind of near-term dynamics related to kind of housing starts and how they're serving the pros and how the retail side of the channel serving the pros. So that's a little bit more of kind of what we're seeing right here and now. I think that the topic you're talking about is how are the trades coming together with the HVAC world, what does that mean for the wholesalers who serve those spaces, what does that mean for OEMs, manufacturers. I think that's a longer-term trend. And I'd say it's one we follow closely, and we have a lot of conversations across our industry and the HVAC industry about those changes and what does it mean.

當我談到批發端的變化時，我指的比較是偏近期的動態，例如新屋開工量，以及批發端如何服務專業人士（pros），以及通路中的零售端如何服務專業人士。所以那比較是我們此時此刻正在看到的情況。我想你提到的議題是：各工種如何與 HVAC 領域融合，這對服務這些領域的批發商意味著什麼，對 OEM、製造商意味著什麼。我認為那是較長期的趨勢。我會說我們密切關注，而且我們在本產業與 HVAC 產業之間就這些變化以及其意涵進行了很多交流。

Right now, at the end of the day, you can have -- you have plumbers and you have HVAC technicians. They're very different people. There's different skill sets. The replacement cycles are different. That converging isn't necessarily driving big impact for how people want to interact with their water heater OEMs.

就目前而言，說到底，你有——你有水管工，也有 HVAC 技師。他們是非常不同的人。技能組合不同。汰換週期也不同。這種融合目前並未必會對人們想如何與其熱水器 OEM 互動造成很大的影響。

Now, over time, I think it does create opportunities. It's one thing we need to watch carefully. It does consumers and does do trades folks shift the way they think and operate. But it's one of those ones that because we're an industry leader, and we're a thought leader across the industry, we're very much actively involved in understanding how those dynamics are changing. But we view it as a bit of a longer term.

不過，隨著時間推進，我認為它確實會帶來機會。這是我們需要謹慎觀察的一件事。消費者以及工種從業人員是否會改變其思考與運作方式。但因為我們是產業領導者，也是整個產業的思想領袖，我們非常積極參與並理解這些動態如何改變。但我們把它視為較長期的趨勢。

Susan Maklari, Goldman Sachs.

Susan Maklari，高盛。

I'm sorry, I missed you earlier. I want to start on the boiler outlook, which seems to imply that you expect a meaningful step down in the second half despite the pricing that you're getting there. I realized that there was some pull forward in that. But could you talk about the broader outlook there and your performance relative to that?

抱歉，我剛才漏掉你了。我想先從鍋爐的展望談起；這似乎意味著你們預期下半年會有明顯的下滑，儘管你們在那邊取得了定價。我知道之前有一些需求提前拉貨。但你能否談談更廣泛的展望，以及你們相對於該展望的表現？

Yeah. I mean, we're really pleased with our boiler performance in the first half of the year. If you recall, the first quarter was a little weaker on the commercial side, but we've built momentum and overall year-to-date being up 12% is a pretty healthy position. We haven't changed our outlook. We haven't changed our outlook for the full year, 6% to 8%. We are watching -- if you recall, a couple of years ago, there was more channel inventory built up on a price increase than perhaps what we've seen before.

好的。我們對今年上半年鍋爐的表現非常滿意。如果你還記得，第一季商用端稍微弱一些，但我們已經建立起動能，整體年初至今成長 12% 是相當健康的水準。我們沒有改變我們的展望。我們也沒有改變全年 6% 到 8% 的展望。我們正在觀察——如果你記得，幾年前在一次漲價前，通路端的庫存累積比我們過去看到的可能更高。

And in our prepared remarks, we do have pre-buy programs that occur in the second quarter, somewhat fall into the third quarter, but largely in the second quarter. And so there will be some softness in the third quarter as a result of some of those prebuy and price increase pull forward that happened in Q2. So overall, though, commercial order and quoting remains healthy, and we're very pleased with how we're performing in the market on the residential side of the business.

在我們事先準備的講稿中也提到，我們在第二季有預購（pre-buy）方案，部分會延伸到第三季，但主要集中在第二季。因此，第三季會因為第二季發生的部分預購與漲價前拉貨而出現一些疲軟。不過整體而言，商用端的訂單與報價活動仍然健康，而我們也對住宅端業務在市場上的表現感到非常滿意。

Okay. That's helpful. And then you also mentioned that you're seeing inflation in areas outside of steel. Can you talk about that headwind, quantify it for us a bit? What's driving that and your ability to offset that pressure?

好的。這很有幫助。接著你也提到，你們在鋼材以外的領域也看到通膨。你能談談這個逆風，並為我們稍微量化一下嗎？是什麼在驅動它，以及你們抵消這種壓力的能力如何？

Yeah. I mean, when you look at our cost, right, so steel is the largest, and we really see Q4 steel taking a meaningful increase in our cost base, but the other factors that are out there are kind of well related, I would call them. So if you think about transportation, we've seen a meaningful amount of increase in our transportation costs due to diesel surcharges and just demand in transportation being a little more costly than what it has been in the past.

是的。我的意思是，當你看我們的成本時，對吧，鋼材是最大項，我們確實看到第四季鋼材在我們的成本基礎上帶來顯著增加，但外部的其他因素也算是相當相關，我會這麼形容。所以如果你想到運輸，我們看到運輸成本有相當幅度的上升，原因是柴油附加費，以及運輸需求使得運輸成本比過去更高。

And then also oil-based products, we have quite a bit of film that we put on our product and other plastics that are under pressure for some of the oil-based pricing -- costs that we see hitting us particularly driving up costs in the back half of the year.

另外還有油基產品，我們在產品上使用了相當多的薄膜，以及其他塑膠，這些都受到部分油基定價的壓力——我們看到的成本衝擊，特別是在今年下半年推升成本。

Second part of the question was?

問題的第二部分是？

Ability to offset.

抵消的能力。

Offset. And I think Carrie covered that pretty well. I mean, we have pricing in the marketplace in Q3, but we will see some pressures on margins as we go through the back half of the year because the cost, particularly in the fourth quarter, are ramping up pretty quick.

抵消。我想 Carrie 已經講得很清楚了。我的意思是，我們在第三季在市場上有定價動作，但隨著我們進入下半年，毛利率會承受一些壓力，因為成本——特別是第四季——上升得相當快。

Yeah. But overall, I think we -- in my comments were -- to one of the questions was the price cost relationship fairly neutral in second half. So we'll continue to find ways to mitigate that, but I think there is some nuance in the phasing that to pick up in my prepared remarks that should help you kind of shape that back half of the year.

是的。但整體而言，我想我們——我在評論中——針對其中一個問題提到，下半年價格與成本的關係大致上相當中性。所以我們會持續尋找方法來緩解，但我認為在時點安排上有一些細微差異；你可以在我事先準備的發言中看到，這應該能幫助你勾勒下半年的情況。

Amit Mehrotra, UBS.

Amit Mehrotra，瑞銀。

This is [Pratap] on for Amit Mehrotra. So my first question is like looking at the North America, I think you mentioned third quarter margin is similar to the first quarter, and it seems second half could be similar to the first half as well. But when we take a look at the last three years, margins have been down in the second half compared to the first half. So can you walk us through some key drivers pressing there? And what makes it different from prior years?

我是代替 Amit Mehrotra 的 [Pratap]。我的第一個問題是，看看北美，我想你提到第三季的利潤率與第一季相近，而且看起來下半年也可能與上半年相近。但當我們回顧過去三年，下半年的利潤率都比上半年低。所以你能帶我們梳理一下那裡的一些主要壓力驅動因素嗎？以及這次與以往年度有何不同？

Yeah, it's a little different. And each of the last few years have been somewhat unique. So we've had somewhat of a volatile environment as far as pricing and timing of pricing. So some of the reasons last year, our volume was a little bit more under pressure.

是的，這次有點不同。而且過去幾年每一年都有些獨特之處。所以就定價以及定價時點而言，我們處在一個相對波動的環境。因此，去年的一些原因是，我們的銷量承受了比較多的壓力。

I mentioned earlier about at least the residential water heater industry being 51% in the front half, 49% in the back half. Prior years were a little bit more skewed towards the front half because of pricing. So that helps a bit even that out. So I think volume is a big part of that.

我先前提到，至少住宅用熱水器產業上半年占 51%，下半年占 49%。過去幾年因為定價因素，上半年占比會更偏高一些。所以這有助於把它拉得更平均一些。所以我認為銷量是其中很大的一部分。

Great. That's very helpful. And just a follow-up on the commercial water heater market that is like outflow is still flattish for the year. But can you give details on how it has been trending in the first half? And are there end markets doing better or worse?

很好。這非常有幫助。另外追問一下商用熱水器市場，今年的出貨量看起來仍大致持平。但你能提供一下上半年走勢的細節嗎？以及是否有終端市場表現較好或較差？

And additionally, like what would need to improve for growth to reaccelerate in this business, like other than the regulatory changes which got pushed forward?

此外，若要讓這項業務的成長重新加速，需要改善什麼條件？例如除了已被延後的法規變更之外？

The end markets on the commercial water heating side remains stable. We did -- we talked about it a bit on our last call is the 2026 commercial DOE efficiency change. We adjusted in our first quarter, our outlook on commercial because that was pushed out a year or the enforcement of that regulation was pushed out to 2027.

商用熱水端的終端市場仍維持穩定。我們確實——在上次電話會議中也稍微談到——2026 年商用 DOE 能效變更。我們在第一季調整了對商用業務的展望，因為該項規範被延後一年，或說該規範的執行被延後到 2027 年。

So we probably saw a little bit more strength on commercial in the early part of the year before that announcement came out. And then since then, a little softness on commercial as there's probably some prebuy. But I think as we exit the second quarter, we're probably in a pretty neutral position for that change.

所以在那項公告出來之前，我們可能在今年年初看到商用端稍微更強一些。而在那之後，商用端有些轉弱，因為可能存在一些提前採購（prebuy）。但我認為，當我們走出第二季時，對於這項變更，我們大概處在相當中性的狀態。

And that concludes today's Q&A session. Now, I would like to turn the call back over to Helen for closing remarks. Please go ahead.

以上結束今天的問答環節。現在，我想把電話交回給 Helen 作結語。請開始。

Thank you, everyone, for joining us today. We look forward to updating you on our progress in the quarters to come. In addition, please mark your calendars to join our presentations at two conferences this quarter: Seaport on August 18 and D.A. Davidson on September 24. Thank you, and enjoy the rest of your day.

感謝各位今天加入我們。我們期待在接下來的幾個季度向各位更新我們的進展。另外，也請在行事曆上記下本季兩場會議的簡報：8 月 18 日的 Seaport，以及 9 月 24 日的 D.A. Davidson。謝謝，祝各位今天剩下的時間愉快。

This does conclude today's program. Thank you so much for joining. You may now disconnect.

今天的節目到此結束。非常感謝各位參與。您現在可以斷線。