Badger Meter, Inc. (BMI) 2026 Q2 法說會逐字稿

Ladies and gentlemen, welcome to the second-quarter 2026 Badger Meter earnings conference call. (Operator Instructions)

各位女士、先生，歡迎參加 Badger Meter 2026 年第二季財報電話會議。(接線員指示)

It is now my pleasure to turn the conference call over to Dan Weltzien, Chief Financial Officer and Treasurer. Please go ahead, Mr. Weltzien.

現在我很榮幸將電話會議交給財務長兼財務主管 Dan Weltzien。Weltzien 先生，請開始。

Good morning. Thank you for joining the Badger Meter second-quarter 2026 earnings conference call. I'm here today with Ken Bockhorst, our Chairman, President, and Chief Executive Officer; and Bob Wrocklage, our Executive Vice President of North America Municipal Utility.

早安。感謝各位參加 Badger Meter 2026 年第二季財報電話會議。今天與我一同出席的有董事長、總裁暨執行長 Ken Bockhorst，以及北美市政公用事業執行副總裁 Bob Wrocklage。

This morning, we posted the earnings release and related slide presentation on our website. As a quick reminder, any forward-looking statements made on this call are subject to various risks and uncertainties, the most important of which are outlined in our news release and SEC filings.

今天早上，我們已在公司網站發布財報新聞稿及相關簡報投影片。快速提醒：本次電話會議中的任何前瞻性陳述均受各種風險與不確定性影響，其中最重要者已於我們的新聞稿與 SEC 申報文件中說明。

On today's call, we may refer to certain non-GAAP financial metrics, including base results, which exclude the impact of UDlive, acquired May 1, 2026. Our release and earnings presentation provide a reconciliation between the most directly comparable GAAP measure and any non-GAAP financial measures discussed.

在今天的電話會議中，我們可能會提及若干非 GAAP 財務衡量指標，包括基礎結果（base results），其排除 2026 年 5 月 1 日收購之 UDlive 的影響。我們的新聞稿與財報簡報提供了與最直接可比的 GAAP 指標及本次討論之任何非 GAAP 財務衡量指標之間的調節表。

With that, I'll turn the call over to Ken.

接下來，我把電話交給 Ken。

Thanks, Dan, and good morning. As expected, we delivered sequentially improved sales in the second quarter as a number of our previously awarded AMI projects began initial ramping of shipments. We also saw a modest increase in our short-term order rates and within Flow Instrumentation.

謝謝你，Dan，早安。如預期，我們在第二季實現了較上一季改善的銷售表現，因為先前已得標的多個 AMI 專案開始進入初期出貨爬坡。我們也看到短期接單率以及 Flow Instrumentation（流量儀表）業務出現小幅成長。

Importantly, we are reaffirming our outlook for improving sequential top-line results for the balance of the year with full-year 2026 organic revenue still expected to be roughly flattish with 2025 levels. The team executed well on the margin front as we continue to manage operating cost controls as we described in detail last quarter.

重要的是，我們重申對今年剩餘期間營收將逐季改善的展望；2026 全年有機營收仍預期大致與 2025 年持平。團隊在毛利率方面執行良好，我們持續落實營運成本控管，正如上季我們已詳細說明。

I'll turn the call over to Dan to walk through the specifics of the quarter, and then Bob will provide an update on commercial activity and collective customer feedback from our recent annual AWWA ACE trade show. I'll then come back to cover the outlook and take your questions. Go ahead, Dan.

我先把電話交給 Dan，請他說明本季的具體細節；接著 Bob 會就商務活動以及我們近期參加年度 AWWA ACE 展會所蒐集的整體客戶回饋提供更新。之後我會再回來說明展望並回答各位問題。Dan，請。

Thank you, Ken. Turning to slide 3. Total sales in Q2 were $222.3 million, representing a 7% decline year-over-year. Excluding the two-month benefit of UDlive sales of approximately $2 million, base sales were down 7.5% year over year. Importantly, base sales were 9% higher than first-quarter levels, as we anticipated, with a number of awarded projects in the pipeline beginning their initial ramp in shipments.

謝謝你，Ken。請看投影片第 3 頁。第二季總銷售額為 2.223 億美元，年減 7%。若排除 UDlive 兩個月約 200 萬美元的銷售貢獻，基礎銷售額年減 7.5%。重要的是，基礎銷售額較第一季高出 9%，符合我們的預期，因為管線中多個已得標專案開始進入初期出貨爬坡。

Note that we will not be providing individual project-level detail from the anonymized subset of awarded but not yet started projects list that we shared last quarter. But as we mentioned during Investor Day back in May, product shipments for the PRASA project have begun.

請注意，我們不會就上季分享的「已得標但尚未啟動」專案匿名清單子集合提供個別專案層級的細節。但如同我們在 5 月投資人日所提到的，PRASA 專案的產品出貨已經開始。

Utility Water sales declined 8% year over year, and excluding the acquisition were down 9%, reflecting the project pacing dynamics we have been discussing for some time. Lower AMI-related product revenue was partially offset by higher software as well as collective beyond-the-meter growth.

公用事業用水（Utility Water）銷售額年減 8%；若排除收購影響則年減 9%，反映我們討論已久的專案節奏動態。AMI 相關產品營收下降，部分由軟體以及整體表後（beyond-the-meter）業務成長所抵銷。

It is important to note that utility sales improved 8% sequentially on an organic basis. Sales for the Flow Instrumentation product line were up 6% year-over-year as we experienced broad-based water application demand.

需要強調的是，公用事業銷售額以有機基礎計算較上一季改善 8%。Flow Instrumentation 產品線銷售額年增 6%，因我們在各類水務應用上都看到廣泛需求。

Turning to profitability. Overall, we delivered improved operating leverage versus the first quarter, the result of sequentially higher sales and the favorable impact of cost actions put into place earlier in the year. On a year-over-year basis, operating earnings declined 12% with margins down 110 basis points to 17.7%. Base operating profit margins, excluding UDlive, were 18.4%, down 40 basis points from last year's second quarter.

接著談獲利能力。整體而言，我們相較第一季展現更佳的營運槓桿，主要來自逐季提升的銷售額，以及年初已採取之成本措施帶來的正面影響。以年對年來看，營業利益下滑 12%，營業利益率下降 110 個基點至 17.7%。排除 UDlive 的基礎營業利益率為 18.4%，較去年第二季下降 40 個基點。

Gross margin was 40.8%, down 30 basis points from the second quarter of 2025, primarily reflecting lower sales volumes and project mix. Gross margins remained solidly in the upper half of our normalized range, indicative of the resiliency of our overall structural mix and pricing discipline.

毛利率為 40.8%，較 2025 年第二季下降 30 個基點，主要反映銷售量較低以及專案組合影響。毛利率仍穩健維持在我們常態化區間的上半部，顯示我們整體結構性組合的韌性以及定價紀律。

One item I want to call out is the increasing level of electronic component cost and availability pressures, which are a byproduct of the AI and data center build-out demand. While we have been able to adequately mitigate these impacts to date, the challenges posed by these pressures are not easing.

我想特別指出的一點是：電子元件成本與供應可得性壓力正在上升，這是 AI 與資料中心建置需求所帶來的副作用。雖然截至目前我們已能充分緩解這些影響，但這些壓力所帶來的挑戰並未趨緩。

Turning to selling, engineering, and administrative expenses, the second quarter's $51.4 million was $1.6 million lower year over year due to the benefit of spending controls, lower incentive compensation, and specific cost containment actions. These more than offset $1.8 million from the addition of UDlive for two months, including related intangible asset amortization, along with the final $1.2 million of transaction-related costs, which combined, added approximately $3 million to year-over-year spending.

接著看銷售、工程與管理費用，第二季為 5,140 萬美元，年減 160 萬美元，主要受惠於支出控管、較低的獎酬費用，以及特定的成本抑制措施。上述效益已足以抵銷 UDlive 併入兩個月帶來的 180 萬美元費用（含相關無形資產攤銷），以及最後 120 萬美元的交易相關成本；兩者合計使年對年費用增加約 300 萬美元。

For your ongoing modeling, our preliminary expectation for UDlive intangible asset amortization is approximately $5 million annually. The effective income tax rate was 25.2% compared to 24.5% last year. Finally, diluted earnings per share were $1.02, down 13% from $1.17 in the prior year period.

供各位後續建模參考，我們對 UDlive 無形資產攤銷的初步預期約為每年 500 萬美元。有效所得稅率為 25.2%，去年同期為 24.5%。最後，稀釋每股盈餘為 1.02 美元，較去年同期的 1.17 美元下降 13%。

Primary working capital as a percentage of sales was 22.9%, up from 20.0% at the prior quarter end. The receivable increase simply relates to revenue timing, and we anticipate working down the above-average inventory levels resulting from the revenue pacing dynamics throughout the fiscal year.

主要營運資金占銷售額比重為 22.9%，高於上一季季末的 20.0%。應收帳款增加僅與營收認列時點相關；我們預期在本會計年度內，將逐步降低因營收節奏動態而形成的高於平均水準的存貨。

Free cash flow was $21.9 million, down from $40.6 million in the prior-year comparable quarter, given lower earnings, the temporary increases in working capital. As always, we remain focused on delivering full-year cash flow conversion in excess of 100% of net earnings.

自由現金流為 2,190 萬美元，低於去年同期可比季度的 4,060 萬美元，原因在於獲利較低以及營運資金的暫時性增加。一如既往，我們仍專注於達成全年現金流轉換率超過淨利的 100%。

In the second quarter of 2026, we repurchased 204,000 shares for a total of $25.3 million and have approximately $90 million remaining on our current share repurchase authorization. Over the past three quarters, we have deployed roughly $80 million in share repurchases.

2026 年第二季，我們回購 204,000 股，總金額 2,530 萬美元；目前在既有庫藏股回購授權下仍剩約 9,000 萬美元額度。過去三個季度，我們已投入約 8,000 萬美元進行股票回購。

Finally, as noted in the release, we did finalize a five-year renewal of our $150 million credit facility in the quarter. This facility remains undrawn and provides us with ample financial flexibility under attractive terms, including its expansion feature.

最後，如新聞稿所述，我們在本季完成了 1.5 億美元信用額度（credit facility）的五年期續約。該額度目前仍未動用，並在具吸引力的條款下（包含擴額機制）為我們提供充足的財務彈性。

With that, I'll turn the call over to Bob.

接下來，我把電話交給 Bob。

Thanks, Dan. Last month, we had the opportunity to connect with multiple customers, engineering consulting firms, and investors at ACE 2026 in Washington, DC. For those not able to visit in person, we showcased our AMI and Beyond the Meter applications in a way that conveys our ability to deliver critical outcomes our customers are seeking across the full water cycle from source water to wastewater treatment.

謝謝你，Dan。上個月，我們有機會在華盛頓特區舉行的 ACE 2026 與多位客戶、工程顧問公司以及投資人交流。對於無法親臨現場的朋友，我們展示了 AMI 與表後（Beyond the Meter）應用，藉此傳達我們有能力在完整水循環（從原水到污水處理）各環節，交付客戶所追求的關鍵成果。

From the many customer conversations, it is clear that the market remains constructive about our solutions as utilities continue to prioritize modernization, efficiency, and visibility across their water and wastewater networks. These long-term secular drivers remain intact.

從眾多客戶對話中可以清楚看出，隨著公用事業持續將現代化、效率與其供水及污水網路的可視性列為優先事項，市場對我們的解決方案仍持正向看法。這些長期的結構性驅動因素依然存在。

In fact, our meetings with consultants during the show who were looking to gain further insight into our water cycle spanning solutions were booked solid. Given the role these consultants play in the early part of the opportunity funnel, it bodes well for the long-term durability of the multi-decade transformation of the water sector and for our competitive position.

事實上，我們在展會期間與顧問的會議（他們希望更深入了解我們橫跨水循環的解決方案）行程滿檔。鑑於這些顧問在商機漏斗前端所扮演的角色，這對水務產業跨越數十年的轉型之長期韌性，以及我們的競爭地位，都是正面的訊號。

Consultant and customer discussions were heavily focused on both the hardware and software components of our Network as a Service, or NaaS, solutions. Of particular focus were advancements to network resiliency and flexibility in communication devices, such as dynamic multi-carrier SIM technology and our enhanced ORION Lens endpoint solution for metal pit lids.

顧問與客戶的討論高度聚焦於我們「網路即服務」（Network as a Service，NaaS）解決方案的硬體與軟體組成。特別關注的是提升網路韌性，以及通訊裝置的彈性，例如動態多電信商 SIM 技術，以及我們針對金屬井蓋的強化版 ORION Lens 端點解決方案。

From a software standpoint, EyeOnWater Premium, our BEACON Field app, and, of course, our embedded AI functionality, Cobalt, garnered strong interest. Collective feedback reinforced our NaaS leadership position, and an AMI hardware and software set that provides value to all utility stakeholders and their customers.

在軟體方面，EyeOnWater Premium、我們的 BEACON Field 應用程式，當然還有我們的內嵌式 AI 功能 Cobalt，都引發了強烈興趣。整體回饋進一步鞏固了我們在 NaaS 的領導地位，以及一套能為所有公用事業利害關係人及其客戶創造價值的 AMI 硬體與軟體組合。

Finally, we continued to educate utilities on stormwater and sewer line applications with the broad solution portfolios from both SmartCover and now UDlive. As Dan noted, we are starting to see early ramp activity at PRASA and several other awarded projects beginning deployment, which will continue to advance as the year progresses. I will remind you that these include both turnkey and supply-only projects and that implementations will continue to be uneven, the result of numerous external factors inherent in the industry.

最後，我們持續向公用事業單位宣導雨水與污水管線應用，並結合 SmartCover 以及現已納入的 UDlive 兩者的廣泛解決方案組合。如 Dan 所提到，我們開始在 PRASA 看到早期的放量動能，且其他數個已得標專案也正開始部署；隨著年度推進，這些進展將持續加速。我也提醒各位，這些專案同時包含交鑰匙（turnkey）與僅供貨（supply-only）型態，而由於產業內在的多項外部因素，導入進度仍將呈現不均衡。

With that, I'll turn the call back to Ken.

接下來，我把電話交回給 Ken。

Thanks, Bob. Looking ahead, as we noted in the release, we continue to anticipate sequential improvement in base quarterly revenue dollars as each quarter progresses, resulting in full-year 2026 revenue, excluding UDlive, flat-ish with 2025. As we noted last quarter, and as Bob just reiterated, you should read that not as flat, but flat-ish with variability and unevenness in project ramping and short-term order patterns.

謝謝，Bob。展望未來，正如我們在新聞稿中所述，我們仍預期隨著每一季推進，基礎季度營收金額將逐季改善，使得 2026 全年營收（不含 UDlive）與 2025 大致持平。如同我們上季所說、且 Bob 剛才也再次強調，這不應被解讀為完全持平，而是「大致持平」——在專案放量與短期訂單型態上仍會有波動與不均衡。

Given the fourth quarter represents the easiest year-over-year comparison, you should expect the year-over-year base sales growth rate to be heavily weighted to Q4. As noted last quarter, we implemented certain cost reduction actions and have been maintaining spending discipline to protect margin integrity as we navigate revenue pacing throughout the year. And as Dan mentioned, we are actively managing the electronics availability and cost dynamics.

鑑於第四季是最容易的年對年比較基期，你應該預期年對年基礎銷售成長率將明顯偏重於第四季。如上季所述，我們已採取若干成本削減措施，並持續維持支出紀律，以在全年營收節奏變化的情況下守住毛利率的完整性。此外，如 Dan 所提到，我們正積極管理電子零組件的供應可得性與成本變動。

While we continue to navigate quarter-to-quarter factors, our confidence in the long-term outlook for the business has not wavered. To reinforce what you heard from our team at our recent Investor Day, we have multiple enduring revenue and profitability drivers underpinned by the ongoing digital transformation of the water sector, which we believe will positively drive shareholder value.

儘管我們仍在因應季度之間的各項因素，但我們對公司長期展望的信心絲毫未減。為了呼應你在近期投資人日從團隊所聽到的內容，我們擁有多項長期且持續的營收與獲利驅動因素，並以水務產業持續進行的數位轉型為基礎；我們相信這將正向推動股東價值。

These include the long-term durable growth foundation of replacement demand, which is bolstered by AMI adoption and hardware-enabled recurring software, the extension of our offerings across the full water cycle with our Beyond the Meter technologies, leveraging core innovation excellence as well as acquisitions to continue to strengthen our competitive position, and finally, building on our disciplined execution, which we believe will extend the profitable growth runway into the future.

這些因素包括：由汰換需求所支撐的長期穩健成長基礎（並受 AMI 採用與硬體帶動的經常性軟體收入所強化）、透過我們的 Beyond the Meter 技術將產品與服務延伸至完整水循環、運用核心創新優勢以及併購來持續強化競爭地位；最後，建立在我們嚴謹的執行力之上，我們相信這將把可獲利成長的跑道延伸至未來。

Finally, I'd like to call out our recently published 2025 sustainability report, which highlights our progress across the key pillars of our solutions, operations, and people. It remains clear that by managing sustainability as a business process, it enables us to both provide industry-leading water solutions to grow our business, while also reducing our environmental footprint.

最後，我想特別提及我們近期發布的 2025 年永續報告，該報告突顯我們在解決方案、營運與人才等關鍵支柱上的進展。很明顯地，將永續作為一項商業流程來管理，能讓我們一方面提供業界領先的水務解決方案以推動業務成長，同時也降低我們的環境足跡。

With that, operator, please open the line for questions.

接下來，請接線員開放提問。

(Operator Instructions) Jeff Reive, RBC Capital Markets.

(接線員指示) RBC Capital Markets 的 Jeff Reive。

So now that we are about at the halfway point of the year and certain projects have commenced initial deployment, how has your visibility into the second-half ramp changed versus 90 days ago? And are any at risk of slipping into 2027?

現在我們大約來到年度的中點，且部分專案已開始初期部署，與 90 天前相比，你們對下半年放量的能見度有何變化？是否有任何專案有風險延後到 2027 年？

Hey, Jeff. So yeah, so as we talked about last quarter, we fully expected as the year progressed, it would become a little more clear to us how things would play out, given how important the nine projects are to the rest of the year and, frankly, the positivity they have for the next several years.

嗨，Jeff。是的，正如我們上季談到的，我們完全預期隨著年度推進，我們會更清楚事情將如何發展，因為這九個專案對今年剩餘期間非常關鍵，而且坦白說，它們對未來幾年的正面影響也很大。

So as you know, we talked about PRASA has begun, and a few of the other projects have begun. We'll always note that there can be possible unevenness, but the total cohort of nine projects feels like it's pretty solid at this point.

如你所知，我們提到 PRASA 已經開始，其他幾個專案也已啟動。我們一向會提醒可能出現不均衡，但就目前而言，這九個專案的整體組合看起來相當穩健。

Okay, got it. And to hit that flattish organic revenue target for the year, do all of the projects need to start shipping in the back half, or is there ample cushion in that guide?

好的，了解。那要達成今年有機營收「大致持平」的目標，是否所有專案都必須在下半年開始出貨？或者這個指引本身有足夠緩衝？

Yeah, so just keep in mind, it's not like they're all starting at the beginning of Q3. So there's multiple phase-ins and pieces. So it is a whole collection of -- we're expecting some certain positivity around these projects. We also have a robust funnel around just near-term projects that are in negotiation and other things that are not part of that. And yeah, in Q2, we had a higher daily turn rate of orders than we had in Q1, so those numbers of factors give us the confidence to remain on this flattish for the remainder of the year stance.

是的，但請記住，並不是所有專案都在第三季一開始就啟動。會有多個分階段導入與不同部分。因此這是一整套組合——我們預期這些專案會帶來一定的正面貢獻。此外，我們也有一個強勁的案源漏斗，涵蓋一些正在談判中的近期專案與其他不屬於上述範圍的機會。而且在第二季，我們的日均訂單周轉率高於第一季；這些因素讓我們有信心維持今年剩餘期間「大致持平」的看法。

Got it. And then I could just sneak in one more. On UDlive, it seems like the revenues were a bit lower than I would have expected on kind of the trailing revenue. Is that just a timing issue, maybe related to the May close, or is there anything else driving that?

了解。我再追問一個。關於 UDlive，看起來營收比我根據過去一段期間的營收所預期的要低一些。這只是時點問題，可能與 5 月完成交割有關，還是有其他因素造成？

Yeah, definitely just the timing issue. So, as with any acquisition, particularly sometimes with small companies, you get just certain distractions and things. But yes, certainly understand that question, but not concerned at all.

是的，完全就是時點問題。所以，和任何併購一樣，特別是有時候對小型公司而言，會出現一些分心事項與各種狀況。不過是的，我們完全理解這個問題，但一點也不擔心。

Quinn Fredrickson, Baird.

Baird 的 Quinn Fredrickson。

On the short-cycle portion of the business, could you put a finer point there on what you saw in the quarter, maybe in context of the $15 million to $20 million shortfall in the first quarter, how second quarter compared to what you would expect seasonally, if there's any additional room for a short-cycle recovery in the back half?

關於業務中短週期的部分，你能否更具體說明本季你們看到的情況？也許可結合第一季約 1,500 萬到 2,000 萬美元的短缺來看，第二季相較於季節性常態表現如何？以及下半年是否還有短週期回升的額外空間？

Yeah, so as we did expect, Q1 was the outlier in terms of short order cycle rates, as you called it. So we would just say it was more normal-ish in Q2 and typical of the operating environment. So we certainly don't intend to get into sizing every quarter.

是的，正如我們所預期，第一季在短訂單週期率（如你所稱）方面是個異常值。所以我們會說第二季回到較為正常、也更符合營運環境的典型狀態。因此我們當然不打算每一季都去量化這部分。

I think in Q1, it was outsized enough that we did that just to provide some more clarity for investors to understand what happened. But we're really not going to get into that from quarter to quarter because that portion of the business is always somewhat uneven by nature.

我想第一季的偏離幅度大到我們才特別說明，讓投資人更清楚發生了什麼。但我們不會在季度之間逐一拆解，因為這部分業務本質上就一直會有些不均衡。

Thanks, Ken. And then, Dan, just given your comments on electronic component costs, any additional color on how to think about price cost or gross margin in the back half, perhaps any details you can share on your memory exposure as well would be helpful?

謝謝，Ken。另外，Dan，考量你對電子零組件成本的評論，能否再補充一些看法，讓我們理解下半年價格與成本的關係或毛利率走勢？如果也能分享你們對記憶體（memory）的曝險程度，會很有幫助。

Yeah. Can I just go first? So, Quinn, I think it's important context here. So we've been here before, right? So if you go back to 2021 with supply chain shocks and electronics availability and inflation, so we know that the entire world is going through this, not just if this isn't a Badger Meter challenge at the moment.

好的。我可以先說嗎？Quinn，我認為這裡的重要背景是：我們以前也遇過這種情況，對吧？如果你回顧 2021 年的供應鏈衝擊、電子零組件供應可得性以及通膨，我們知道全世界都正在經歷這些，不只是——目前這並不是 Badger Meter 獨有的挑戰。

But we are positioned to continue to manage this accordingly, to work our way through it. But we wanted to call out the potential supply issues there. And from a margin point of view, just like all the other puts and takes structurally, we certainly feel fine within our range, but just wanted to call this out.

但我們已做好相應的準備，會持續妥善管理並逐步克服。不過我們想特別點出其中潛在的供應問題。就毛利率而言，和其他結構性的利多利空因素一樣，我們對維持在既定區間內仍感到安心，只是希望把這點提出來提醒。

So Dan, any other color, if you'd like?

那 Dan，你還想補充其他說明嗎？如果你願意的話？

Yeah, I think you hit on the two relevant points here. And there really are two things that we're managing through right now. It is a cost component dynamic that we're dealing with, but then also availability. And so as Ken mentioned, we're managing through both.

是的，我認為你點出了這裡兩個相關的重點。而我們目前確實正在管理兩件事。一方面是我們正在面對的成本構成動態，但另一方面也是供應可得性。因此如 Ken 所提到的，我們同時在管理這兩者。

James Ko, Jefferies.

James Ko，Jefferies。

I wanted to touch on the awarded project kind of ramp-up timeline. I mean, looking at the historical revenue profile of the cohorts that you guys shared, it seems like deployment tends to peak like one or two years after deployment. Should we expect kind of similar dynamic for the like nine kind of awarded projects that you guys shared?

我想談一下已得標專案的爬坡時程。我的意思是，從你們分享的各批次歷史營收曲線來看，部署似乎通常會在部署後一到兩年達到高峰。對於你們分享的那大約九個已得標專案，我們是否應該預期類似的動態？

Yeah, so that's a lot to unpack because just like every acquisition is different, every AMI project is different, but absolutely, you pace from this arrangement of there's nothing in the base and then initial implementation begins. So product shipments in a supply only case begin or even in a turnkey solution, then that is married up with the installation activity. So there is a ramp concept.

是的，這裡面有很多可以拆解，因為就像每一筆併購都不同，每一個 AMI 專案也都不同；但確實如此，你會從「基期沒有任何貢獻」開始，接著進入初期導入。因此在僅供貨的情況下，產品出貨會開始；即使是交鑰匙解決方案，也會與安裝作業相互配合。所以確實存在一個爬坡的概念。

I don't know that you could pinpoint the average project to a particular year or time duration because some projects will be three years in nature, some will be five. But I think the curve that you're describing in terms of a ramp, a scale of deployment for a period of time, and then as projects begin to wind down, that that other side of the curve begins to decline. But trying to pinpoint precisely an average project is a very difficult thing to do in this industry.

我不確定你能否把平均專案精確對應到某一年或某個時間長度，因為有些專案本質上是三年期，有些是五年期。但我認為你所描述的曲線，也就是在一段時間內逐步爬坡、擴大部署規模，然後當專案開始收尾時，曲線的另一側就會開始下滑。不過，要精準界定這個產業中「平均專案」是非常困難的。

Great. Thanks for the color. And I think you guys talked about like other like opportunities outside of this like nine award projects. Can you kind of provide more color on opportunities funnels outside of those awarded projects that you guys shared?

了解。謝謝補充說明。另外我想你們也談到，除了這九個得標專案之外，還有其他機會。你們能否就你們分享的這些得標專案之外的機會漏斗，再提供更多細節？

Yeah, I mean, I think your point is perfect because I think sometimes when you publish a list of a cohort, particularly of the scope and scale that we did, that almost implies that those are the key projects and only projects, and that is absolutely not the case. That was a representative sample of projects that spanned everything from utility projects to investor-owned projects, from competitive conversions to incumbency experiences, and then a dynamic of both supply and turnkey-type projects.

是的，我覺得你的觀點非常到位，因為我認為有時候當你公布一份同一批次（cohort）的清單，尤其是像我們這次公布的範圍與規模，會讓人幾乎以為那些就是關鍵專案、也是唯一的專案，但事實絕非如此。那只是具代表性的專案樣本，涵蓋從公用事業專案到投資人持有型（investor-owned）專案，從競爭性替換到既有供應商延續的經驗，以及同時包含供貨型與交鑰匙型專案的動態。

So it's important to note that was chosen very purposefully to illustrate those factors, but those are not the only projects. Whether we're selling direct or whether we're going through distribution, there are absolutely lots of opportunities, and sometimes those opportunities come through as turnkey or projects that we would have disclosed like that.

因此需要強調的是，那份清單是非常有目的地挑選，用來說明上述因素，但它們並不是唯一的專案。無論我們是直銷，或是透過經銷通路，我們都確實有很多機會；而且有時這些機會會以交鑰匙形式出現，或是以我們會像那樣揭露的專案形式出現。

And in other cases, that's coming through that short cycle order rate that I think has now been coined as a term. Really that, in my mind, is implied to be those things that we have limited visibility to in terms of direct ordering behavior. But those are taking place all day, every day in the natural course.

而在其他情況下，這些機會則會反映在我想現在已被「短週期訂單率」這個詞所概括的那部分。在我看來，那指的是我們對其直接下單行為可見度有限的那些事項。但這些事情在日常自然運作中，全天候、每天都在發生。

And as Ken indicated, that rate of activity improved versus Q1 levels or increased versus Q1 levels. That's what's happening here in Q2, and that's what we're forecasting forward in our full-year outlook of getting to flattish on an organic basis.

而如 Ken 所指出的，該活動率相較於第一季水準有所改善或提升。這就是第二季正在發生的情況，也是我們在全年展望中向前預測的內容，目標是在有機基礎上達到大致持平。

Nathan Jones, Stifel.

Nathan Jones，Stifel。

I guess I'll follow-up on the project ramp-ups to begin with. We've been focused on how they ramp up in the back half of the year, but I guess the question is, are they at full run rate as we exit the end of the year? Or is there further for them to go to hit kind of a full run rate as we get into 2027, and you should continue to see that sequential improvement as we get into early next year just from those specific projects?

我想先就專案爬坡再追問一下。我們一直關注它們在下半年如何爬坡，但我的問題是：到年底退出時，它們是否已達到完整的運行速率（full run rate）？或者它們還有進一步提升空間，要到 2027 年才會達到某種完整運行速率；而且僅就這些特定專案而言，進入明年初是否仍會看到逐季改善？

Yeah, so the one thing that, as Bob pointed out, it's hard to compare one project to another and what a ramp rate looks like and how long it goes for, but I think we did provide a little bit more detail at Investor Day that showed some of the actual projects of how they flow and some of the unevenness. But some of them will be at full run rate end of year, some of them will not, but that also doesn't mean that they might slow down or speed up in any particular quarter.

是的，所以有一點是，如 Bob 所說，很難把一個專案和另一個專案做比較，也很難說爬坡速率長什麼樣、會持續多久；但我認為我們在投資人日提供了更多細節，展示了一些實際專案的流量走勢以及其中的不均勻性。不過，有些專案在年底會達到完整運行速率，有些不會；但這也不代表它們在任何特定季度就一定會放慢或加快。

So the main thing to think about that makes us feel good about it is that it is a large cohort as well as the other pieces going forward. And it gives us more air cover to deal with some of that unevenness than we've dealt with in the past few quarters.

因此，讓我們對此感到樂觀的主要原因是：這是一個規模很大的專案群（cohort），再加上未來其他組成部分。相較於過去幾個季度，我們因此有更多「緩衝空間」來應對這種不均勻性。

I guess the second question then is going to be on price and costs. You talked about increasing electronics costs. I know copper has become a bit less important over the years, but it has increased significantly, so of transportation costs and all that kind of stuff.

那第二個問題會是關於價格與成本。你們提到電子元件成本上升。我知道銅在這些年變得沒那麼重要，但它也顯著上漲，還有運輸成本等等。

Can you talk about where you are in terms of price cost? Are you able to pass this through to customers? And then within these projects, are there contractual pass-through of increased costs or do you have some exposure to increase cost there? Thanks for taking the questions.

你們能談談目前在價格與成本之間的狀況嗎？你們能把這些成本轉嫁給客戶嗎？另外在這些專案中，合約是否有針對成本上升的轉嫁條款，還是你們在那裡會承擔一些成本上升的曝險？謝謝回答問題。

Yeah. So, Nathan, I guess I'll take that in two parts. First, just talking about price-cost dynamics. That's an ongoing discussion that we're having internally and with customers as we're looking at RFP opportunities and working with customers on pricing individual projects. And we feel good about our ability to continue to recapture cost increases that we see within the market through our pricing excellence programs and really how we look at each individual opportunity.

好的。Nathan，我想我分兩部分回答。首先談價格—成本動態。這是我們在內部以及與客戶之間持續進行的討論，尤其是在我們評估 RFP 機會、並與客戶就個別專案定價合作時。我們對於能夠透過我們的定價卓越（pricing excellence）計畫，並以逐一檢視每個機會的方式，持續收回（recapture）市場中看到的成本上升，感到有信心。

I'll also just remind you again, the biggest driver of our overall gross margins is the structural mix benefits that we continue to see. So as we move from mechanical to static metering, more cellular AMI deployments, and then the Beyond the Meter and software solutions that come along with that, are really the main drivers toward that gross margin performance that we see over time.

我也再提醒一次，我們整體毛利率最大的驅動因素，是我們持續看到的結構性組合（mix）效益。因此，當我們從機械式轉向靜態電表、更多的蜂巢式 AMI 部署，以及隨之而來的表後（Beyond the Meter）與軟體解決方案，這些才是推動我們長期毛利率表現的主要因素。

In terms of specifically within our contracts, we negotiate in most contracts, I'll say, the ability to pass along escalations throughout the three-, four-, five-year deployments that we might have. So while not maybe 100% in all of our contracts, that's certainly a common term that we're negotiating with our customers.

至於合約條款方面，我們在多數合約中會協商取得在三年、四年、五年等部署期間，將成本上升（escalations）轉嫁出去的能力。因此，雖然可能不是所有合約都能做到 100%，但這確實是我們與客戶協商時相當常見的條款。

Bobby Zolper, Raymond James.

Bobby Zolper，Raymond James。

I think I saw that you renewed your credit facility. It seemed like also, relative to the pace you were repurchasing shares at the Investor Day versus the end of the quarter, that may have decelerated a little bit. Is there anything to read into that in terms of what you'll be doing with your excess capital? Does that imply that you're going to be doing more deals versus repurchasing shares?

我想我看到你們續約了信用額度。另外，看起來相較於投資人日你們回購股票的速度，到季末似乎稍微放緩了一點。就你們如何運用多餘資本而言，這有什麼可以解讀的嗎？這是否意味著你們會做更多交易，而不是回購股票？

Yeah, so, Bobby, it's just a continued balanced approach to our capital allocation priorities. So continuing to invest in the business and make sure that we're super focused on our R&D innovation growth runways; returning cash to shareholders, obviously dividends.

是的，Bobby，這只是我們在資本配置優先順序上持續採取的平衡做法。也就是持續投資於業務，並確保我們高度聚焦於研發創新與成長跑道；同時也向股東返還現金，當然包括股利。

And for three consecutive quarters, we've been buying shares. We still have $90 million left on the authorization. So that's obviously something we've been doing recently. And we still are every bit as excited about M&A as we were. So nothing has really changed from when we saw you in May.

而且我們已連續三個季度回購股票。目前授權額度還剩下 9,000 萬美元。所以這顯然是我們最近一直在做的事情。同時，我們對併購（M&A）的興奮程度也和之前一樣高。因此，和我們五月見到你時相比，基本上沒有任何改變。

And Bobby, I'll just add, the renewal of that credit facility was largely driven by the fact that that was due to expire in July of this year. So we enjoy having that financial flexibility of having that facility in place.

Bobby，我再補充一點，續約該信用額度主要是因為它原本將於今年7月到期。因此，我們很樂於保有該融資安排所帶來的財務彈性。

And then if in terms of swing factors to get to flattish for the year, I know there's this like letter floating around about the process of projects from, I think it's the Resident Commissioner of Puerto Rico. Since that was published in early June, has that, I guess, changed your opinion of the likelihood of the process of project hitting your expectations for the year?

另外，就今年要達到大致持平的擺盪因素而言，我知道外面流傳著一封關於專案流程的信，我想是波多黎各的駐美專員發出的。自從那封信在6月初發布以來，這是否改變了你們對該專案流程在今年達成你們預期之可能性的看法？

Yeah, so Bobby, the normal disclaimer of we don't talk about legal issues and things publicly, but nothing has changed on our view on the process of project. And this has been -- it's been public that there have been several reviews over the years. It's gone to appeals courts and it's been to other things, and nothing has changed the fact that, from our view, they ran a fair and open process, and we won it.

是的，Bobby，照慣例先聲明，我們不會公開談論法律議題等事項，但我們對該專案流程的看法沒有任何改變。而且這也一直是公開資訊：多年來已經有過數次審查。它也上訴到上訴法院並經歷其他程序，但沒有任何事情改變我們的看法：就我們而言，他們進行的是公平且公開的流程，而我們贏得了該案。

I think it's just important that while your question is very process specific, like the idea of challenging a procurement process or appealing the application of a procurement process is very common to our industry. This is all government bidding, government contracting, that the things that you're mentioning here are commonplace in the United States as well.

我認為重要的是，雖然你的問題非常聚焦在流程細節，但像是挑戰採購流程或對採購流程的適用提出上訴，在我們這個產業非常常見。這些都是政府招標、政府合約；你在這裡提到的事情在美國也同樣司空見慣。

Obviously, sometimes those can be more or less supercharged depending upon the political environment. But the point is, like this is a common thing that we deal with, anticipate in the normal course all day, every day.

當然，有時候依政治環境不同，這些事情可能被放大或淡化。但重點是，這是我們日常工作中經常面對、也會在正常營運過程中預期會發生的常態。

Andrew Krill, Deutsche Bank.

Andrew Krill，德意志銀行。

Ken, I think in the prepared remarks, you noted 4Q organic sales would heavily weighted the growth -- would be heavily weighted to that quarter. So for 3Q, can you grow organically or is there a chance sales are still down year over year on that tough comp?

Ken，我想你在事先準備的發言中提到，第4季的有機銷售成長會高度集中在那一季。那麼對第3季而言，你們能否實現有機成長？或者在那個高基期下，銷售仍有可能年減？

So not getting into specific quarterly guidance. I will tell you, though, we do expect sequential growth again in Q3 over Q2. Not going to size up what that growth is, but I think just wanted to be pointing out of the fact that obviously the comp in Q4 is easier than the comp in Q3. So just wanted to point out that the growth rate will be more heavily skewed to four than three.

我們不提供特定季度的具體指引。不過我可以告訴你，我們確實預期第3季相較第2季會再度呈現季增。我不會量化那個成長幅度，但我想要指出的是：很明顯，第4季的比較基期比第3季更容易。因此我只是想強調，成長率會更偏向第4季，而不是第3季。

Okay, fair enough. And then Flow Instrumentation, I didn't get a ton of airtime, but the growth there, very impressive and pretty sudden. So just could you unpack what drove that? Is this sustainable or was it more one-time large order? I think that can happen here. So can we extrapolate that looking forward or does this revert back to the kind of low single-digit area that product line tends to grow at?

好的，了解。另外，流量儀表（Flow Instrumentation）剛剛著墨不多，但那邊的成長非常亮眼，而且來得很突然。能否拆解一下是什麼因素驅動的？這是可持續的嗎？還是比較像一次性的大型訂單？我知道這裡可能會發生這種情況。所以我們能否把這個趨勢外推到未來，還是會回到該產品線通常的低個位數成長區間？

Yeah, so two things. So I just want to call out again the law of small numbers. So I'll point that out even when the growth rate is higher than when it's lower. We still view this product line as GDP-like in growth over the five-year strategic horizon.

好的，兩點。我想再次點出「小數基期效應」。不論成長率高或低，我都會提醒這一點。在五年策略規劃的視野下，我們仍然把這條產品線視為類似GDP的成長。

We kind of downplayed in the past some of our role and what we sell into data centers. We get asked that a lot. And frankly, as a whole, it's not a big percentage of Badger Meter revenue, but within that Flow Instrumentation product line, we have two particular products that do well in data centers.

過去我們有點淡化了我們在資料中心領域的角色，以及我們供應給資料中心的產品。我們常被問到這個問題。坦白說，整體而言，資料中心並不是Badger Meter營收中的很大比重，但在流量儀表這條產品線裡，我們有兩項特定產品在資料中心表現不錯。

It's our clamp-on meters that are really flexible to use and finding a lot of headway in data centers, mag meters for cooling towers and monitoring flow. So we do have a couple of products that do really well there. And in this particular quarter, we had some orders that came through and drove it a little higher.

我們的外夾式（clamp-on）流量計使用上非常彈性，在資料中心取得了不少進展；另外還有用於冷卻塔與流量監測的電磁流量計（mag meters）。所以我們確實有幾項產品在那裡表現很好。而在本季，剛好有一些訂單進來，帶動成長略為提高。

Since I'm talking about data centers, we also have good opportunities there within water quality. But I would caution you to stick with the GDP-like low single-digits growth on average.

既然提到資料中心，我們在水質（water quality）方面也有不錯的機會。但我會提醒你，平均而言仍以類GDP、低個位數成長的假設來看待會比較合適。

Scott Graham, Seaport.

Scott Graham，Seaport。

Nice that there was a pause there. Maybe that she meant to put a drum roll. Don't know. (laughter) So all things -- aside from the other questions, which were all good ones, the UDlive loss, are you saying that it includes transactions --?

剛剛停頓了一下挺不錯的。也許她是想加個鼓聲鋪陳。不知道。(笑聲) 那麼，撇開其他問題（那些問題都很好）以及UDlive的虧損不談，你是說它包含交易--？

So you're saying intangibles are $5 million for the year, so $1.25 million for a quarter, and I know less than that because it's a partial quarter. Are you saying the difference between the intangibles and the losses made-up by these transaction costs, in other words, is the $3 million that you referred to inclusive of the $1.25 million, or is that separate?

所以你是說無形資產全年是500萬美元，也就是每季125萬美元，而且我知道因為是部分季度所以會更少。你是說無形資產與虧損之間的差額是由這些交易成本補上的嗎？換句話說，你提到的300萬美元是包含那125萬美元，還是另外分開？

Yeah. So Scott, what we were trying to point out there in the SCA dollars in the quarter is there's two pieces. There's the $1.8 million, which is just the ongoing run rate of SCA that you should see coming from UDlive. And we did a reconciliation this quarter to break apart the consolidated business from the base business so that you can specifically see that in that breakout reconciliation.

是的。Scott，我們在本季SCA金額想要說明的是有兩個部分。第一個是180萬美元，這就是你應該會看到來自UDlive的SCA持續性常態水準（run rate）。而我們本季做了一個調節表，把合併後的業務與原本的基礎業務拆開，讓你能在那個拆分調節表中清楚看到。

That does not include the other piece, which is the transaction cost of $1.2 million that were the remaining transaction costs within the quarter. So ongoing run rate is that $1.8 million, which includes the intangible asset amortization, and the transaction costs are separate from that.

那不包含另一個部分，也就是本季剩餘的120萬美元交易成本。所以持續性常態水準是那180萬美元（其中包含無形資產攤銷），而交易成本則是另外獨立於此。

Very clear. Thank you. The other question I had was, Bob, you referred to successes and talking at the recent trade show with meetings with consultants and you brought in digital. Could you give us more color on what you mean there? I know you guys have a lot of things going on in digital, and the use of consultants, I was maybe just not clear what you were trying to say there.

非常清楚。謝謝。我另一個問題是，Bob，你提到最近的展會上，與顧問會面並談到數位化方面的成功。你能否多給一些細節說明你的意思？我知道你們在數位領域有很多事情在推進，而顧問的使用這一塊，我可能不太清楚你想表達什麼。

Yeah, so I mean, that trade show in and of itself is, of course, designed to reach many an audience. And the comments in the script were very specific to the engineering consulting community. And so that's an opportunity for us to meet with those consultants, understand what opportunities they're working on, but also to then sometimes talk about things that have been launched already that they may not be aware of, or in many cases, foreshadow what is forthcoming for hardware and software.

好的，我的意思是，那個展會本身當然是為了觸及多種受眾而設計的。而講稿中的評論是非常針對工程顧問社群的。因此那是我們與這些顧問會面的機會，了解他們正在推進哪些機會，同時也能在某些時候介紹一些已經推出、但他們可能尚未注意到的內容，或在很多情況下，預告即將推出的硬體與軟體。

And so in those meetings, we're able to provide a whole view to both hardware and software solutions. In that case, that was a trade show very much focused on the clean water side. So it was all about advanced metering infrastructure. And through those discussions, the combination of the evolution of our hardware set, our NaaS capabilities, and then the software enablement reaching all constituents of the utility, no longer just the billing read, but in large part workflows associated with utility, efficiency, and customer care, enabling the field service crews to see the real-time power of beacon data as they're doing work in the field.

因此在那些會議中，我們能夠提供硬體與軟體解決方案的全貌。在那個案例中，該展會非常聚焦在淨水（clean water）領域。所以主軸都是先進讀表基礎建設（AMI）。透過那些討論，我們硬體組合的演進、我們的NaaS能力，以及軟體賦能可觸及公用事業（utility）的所有利害關係人——不再只是帳單抄表，而是在很大程度上涵蓋與公用事業營運、效率與客戶關懷相關的工作流程——讓外勤服務團隊在現場作業時，能看到beacon資料的即時威力。

And then EyeOnWater with consumers, the collective feedback was, your leadership in cellular, which started as a differentiated form of AMI, has evolved now into NaaS capabilities that is fully encompassing all stakeholders at utilities, and even importantly, the customer of those utilities who are the citizenry using water in every city and state.

再加上面向消費者的EyeOnWater，整體回饋是：你們在行動通訊（cellular）方面的領先地位，最初是作為差異化的AMI形式，如今已演進為NaaS能力，能完整涵蓋公用事業端的所有利害關係人，並且同樣重要的是，也涵蓋那些公用事業的客戶——也就是在每個城市與州使用水的市民大眾。

And so the collective feedback was, this is no longer just a discussion about cellular versus fixed network. It's a discussion about Badger Meter's cellular leadership, NaaS capabilities, and that's become the industry standard. And your leadership position is evident not only in your financial results, but in the products that you bring to market and our ability to provide customers with those outcomes. And consulting firms recognize that.

因此，整體回饋是：這不再只是關於蜂巢式網路與固定網路之間的討論。這是一場關於 Badger Meter 在蜂巢式領導地位、NaaS 能力的討論，而這已成為產業標準。而你們的領導地位不僅體現在財務成果上，也體現在你們推向市場的產品，以及我們為客戶提供這些成果的能力上。而顧問公司也認可這一點。

Ryan Connors, Northcoast Research.

Ryan Connors，Northcoast Research。

You've been very comprehensive, but I do have a couple of things left on my list here. One, I wanted to go back to the improvement in short cycle orders that you talked about. And I'm wondering whether the exit by one of your competitors from the mechanical meter space has anything to do with that. Obviously, you also see static growing faster, but you're still in the mechanical business. And I know that's a big part of the install base. So is that at all a factor there?

你們的說明非常全面，但我這裡清單上還有幾點想問。第一，我想回到你提到的短週期訂單改善。我想知道，你們某位競爭對手退出機械式水表領域，是否與此有關。顯然你們也看到靜態式產品成長更快，但你們仍在經營機械式業務。而我知道那是既有裝機基礎中的很大一部分。所以那是否在某種程度上是個因素？

I would not say it was a factor that fast. It will be a factor because we are the provider of the premier mechanical meter that much of the market still very much desires. So it -- there was no sizable impact at all within that quarter that we would call out, but we feel happy about that decision by that competitor.

我不會說它這麼快就成為因素。它會成為因素，因為我們提供的是市場仍非常渴望的頂級機械式水表。所以——在那一季內並沒有任何我們會特別點出的顯著影響，但我們對那位競爭對手的決定感到高興。

I think that's a reinforcement of our longstanding Choice Matters approach to our BlueEdge portfolio, and that we continue to believe that there's a place for both mechanical meters and ultrasonic meters in the decision making that utilities undertake, whether it's upon standard replacement cycle or whether they're making technology adoption decisions. Ken's exactly right, that did not manifest itself in the short-term, but it's certainly something we hope to capitalize on.

我認為這強化了我們長期以來在 BlueEdge 產品組合上「Choice Matters（選擇很重要）」的做法；我們仍相信，在公用事業單位進行決策時，無論是依照標準更換週期，或是在做技術採用決策，機械式水表與超音波水表都各有其位置。Ken 說得完全正確，短期內並未顯現，但這確實是我們希望加以把握的機會。

Got it, okay. And then sticking with that theme of ultrasonic versus mechanical, one of the things we've heard from some of the peers, not necessarily from Badger Meter, but that although there's positives to the ultrasonic side for the customer and for the manufacturers as well, the barriers to entry on ultrasonic and static tend to be a little lower than in some of the traditional mechanical applications.

了解，好。接著延續超音波與機械式這個主題，我們從一些同業那裡聽到的（不一定是 Badger Meter），是雖然超音波端對客戶與製造商都有正面效益，但在超音波與靜態式產品上，進入門檻往往比一些傳統機械式應用要低一些。

Would you agree with that? Have you heard that? And do you think that's been a factor at all in the competitive shifts? And just curious your thoughts or your reaction to that?

你同意這個看法嗎？你有聽過這樣的說法嗎？你認為這是否在競爭態勢的變化中扮演了任何角色？也想聽聽你的想法或反應。

Well, what I would tell you about that is if you look at -- we'll just start with the question that you just asked. So a very large portion of the market still, by choice, chooses mechanical. So if anyone comes in with ultrasonic, obviously, there's a large portion of the market, if that's their only offering, that they can't participate in to begin with.

嗯，我會這樣告訴你：如果你看——我們先從你剛剛問的問題開始。市場中仍有很大一部分，出於選擇，仍然選用機械式。因此，如果有人只帶著超音波產品進來，顯然市場中有很大一部分他們一開始就無法參與。

Secondly, when you do come in with a me-too product of ultrasonic and you're trying to compete with very large, entrenched, strong, great competitors like us, Sensus, and Neptune as the big three who all have that and have the relationships and really -- the incumbency position is so strong, it's still very hard to get over for new entrants. So I would agree with you that a technology for technology base, yes, they have a me-too product, but I think there's a lot more to it than that to be successful in this market.

第二，即便你帶著一個「me-too（同質化）」的超音波產品進來，想要與像我們、Sensus、Neptune 這樣規模大、根基深、實力強的優秀競爭者——也就是三大廠——競爭；我們都有這些產品、也有客戶關係，而且——既有廠商的在位優勢非常強，新進者仍然很難跨越。所以我同意你說的，若只從技術本身來看，是的，他們有一個同質化產品；但要在這個市場成功，我認為遠不只如此。

Michael Fairbanks, JPMorgan.

Michael Fairbanks，JPMorgan。

Hey, just on the electronic component pressures, can you clarify what these subcomponents exactly are and then maybe what products in the portfolio this would affect? Thank you.

嗨，關於電子元件的壓力，你能否釐清這些次級元件具體是哪些，然後也許哪些產品組合會受到影響？謝謝。

Yeah, so Michael, it's really a broad-based thing. So as you can imagine, it's the electronics industry in total. So that could be certain capacitors that are used in different offerings. It could be right down to the bare boards that circuit boards are made from. So it's kind of across the way. Memory chips, obviously, are a big part of AI and hyperscaling, so it's kind of a general macroeconomic comment that us and everyone else out there is going to be dealing with so.

好的，Michael，這其實是相當廣泛的問題。所以如你所想，這牽涉到整個電子產業。可能是用在不同產品中的某些電容。也可能一路到電路板所使用的基板材料。所以算是全面性的。記憶體晶片顯然是 AI 與超大規模運算（hyperscaling）的重要部分，因此這算是一個總體經濟層面的評論：我們以及其他所有公司都將面對這個狀況。

And then tying to specific products, it's obviously, without -- this isn't intended to create fear in any way. I'm just saying this as an obvious connection tie that all relates to any of the enabled products that have electronics.

再把它連結到特定產品，顯然——先說清楚——這並非要以任何方式製造恐慌。我只是指出一個很直觀的關聯：凡是含有電子元件的智慧化產品都會受到影響。

So it's ORION Cellular, it's ultrasonic products, it's Beyond the Meter technologies. But as Ken alluded to in the prepared remarks and in his first answer, we've dealt with this before. Everyone's dealing with the same situation. This is not a Badger unique challenge. This is an industry challenge.

所以包括 ORION Cellular、超音波產品、以及 Beyond the Meter 技術。但如 Ken 在事先準備的發言以及第一個回答中所提到的，我們以前也處理過這種情況。大家都在面對同樣的狀況。這不是 Badger 特有的挑戰。這是整個產業的挑戰。

Yeah, and one of the things that, frankly, in our industry, positions us better than everybody else is the fact that last time this bared out, that being on the newest electronics, being on the newest platforms, our innovation edge was important last time and the flexibility of our cellular offering versus fixed networks and all of those things that were positive factors for us the last time still are true today.

是的，而且坦白說，在我們這個產業中，有一點讓我們比其他人更有利：上一次這種情況發生時，採用最新的電子元件、最新的平台，我們的創新優勢當時就很重要；而我們蜂巢式方案相較固定網路的彈性，以及所有那些上次對我們有利的因素，今天仍然成立。

Got it. And then maybe as a follow-up, you called out the working capital increase on the quarter. How should we think about working capital in the second half of this year as you gear up for more of these projects?

了解。接著可能追問一下，你提到本季營運資金增加。隨著你們為更多專案做準備，今年下半年我們應該如何看待營運資金？

Yeah, there's probably two things to focus on there. On the receivable side, certainly, there's some timing impacts within any given quarter in terms of when shipments are going out and those types of things.

好的，這裡大概有兩點可以聚焦。在應收帳款方面，任何一季內都會有一些時點影響，例如出貨時間點等因素。

The other side is the inventory and a couple of things to point out there. Number one, when we acquired UDlive, it came along with some inventory, so that contributes to the increase there. And obviously, there's no sales in the trailing 12 months, so that's going to work itself out over time.

另一邊是存貨，這裡有幾點要說明。第一，我們收購 UDlive 時也一併取得了一些存貨，因此這會推升存貨增加。而且顯然在過去 12 個月並沒有銷售，所以這會隨時間逐步消化。

We mentioned some cost pressures as you look at things from a year-over-year perspective, things like copper is more expensive. And so just naturally, the dollars that are sitting there on the balance sheet are higher. And then, again, with some of the revenue pacing things throughout the first half of the year, there was just some supply that showed up a bit earlier than we needed it. So fully anticipate working through that in the back half.

我們也提到一些成本壓力，從年對年角度來看，例如銅價更貴。因此很自然地，資產負債表上躺著的金額就更高。另外，隨著上半年營收節奏的一些因素，有些供應到貨時間比我們實際需要的稍早一些。所以我們完全預期在下半年把這些消化掉。

I think the other thing to just point out is as sales continue to grow sequentially here in the third and fourth quarter, the sales base in the calculation of primary working capital as a percentage of sales is going to help that percentage to normalize as well. So those are all factors, I think, to what we're seeing right now. Thank you.

我想另外要指出的是，隨著第三季與第四季銷售持續逐季成長，在計算主要營運資金占銷售比重時，銷售基數的提升也會幫助該比例回到較正常的水準。所以我認為這些都是我們目前所看到情況的因素。謝謝。

We have now reached the end of the Q&A session. I will now turn the call back over to Dan Weltzien for closing remarks.

我們現在已到達問答環節的結束。我現在把電話會議交回給 Dan Weltzien 作結語。

Thank you, operator. Just a quick note for your planning that our third-quarter 2026 earnings release is tentatively scheduled for October 21, 2026. As most of you know, Barb is no longer with Badger Meter. So please don't hesitate to reach out to me if you have any follow-ups at investors@badgermeter.com. Have a great day.

謝謝，接線員。簡短提醒大家規劃：我們 2026 年第三季財報發布暫定於 2026 年 10 月 21 日。如各位多數人所知，Barb 已不再任職於 Badger Meter。因此若有任何後續問題，請隨時透過 investors@badgermeter.com 與我聯繫。祝各位有美好的一天。

This concludes today's call. Thank you for attending. You may now disconnect.

今天的電話會議到此結束。感謝各位參與。您現在可以掛線。