CTS Corp (CTS) 2025 Q2 法說會逐字稿

Good morning or good afternoon, and welcome to the CTS Corporation second quarter 2025 earnings call. My name is Adam, and I'll be your operator for today. (Operator Instructions)

早安或下午好，歡迎參加 CTS 公司 2025 年第二季財報電話會議。我叫亞當，今天我將擔任您的接線生。（操作員指示）

I will now hand the floor to Kieran O'Sullivan, Chairman, President, and CEO to begin. So Kieran, please go ahead when you're ready.

現在我將把發言權交給董事長、總裁兼執行長 Kieran O'Sullivan。所以 Kieran，當你準備好了，請繼續。

Good morning and thank you for joining us today for our second quarter 2025 results. We delivered another quarter of double-digit growth in our diversified end markets. Diversified sales for the quarter were 55% of overall company revenue.

早安，感謝您今天參加我們的 2025 年第二季業績發表會。我們在多元化終端市場又實現了一個季度的兩位數成長。本季多元化銷售額占公司總收入的55%。

In the quarter, our adjusted EBITDA expanded 250 basis points sequentially, and 130 basis points compared to the second quarter of last year. Cash flow generation was also strong in the quarter. Our teams continued to execute on our diversification strategy to increase growth in diversified medical, industrial, aerospace, and defense markets. In transportation, we launched the next generation smart actuator for the commercial vehicle market.

本季度，我們的調整後 EBITDA 環比擴大 250 個基點，較去年第二季度擴大 130 個基點。本季現金流產生也十分強勁。我們的團隊繼續執行多元化策略，以增加多元化醫療、工業、航空航太和國防市場的成長。在交通運輸領域，我們為商用車市場推出了下一代智慧執行器。

Ashish will take us through the Safe Harbor statement. Ashish?

Ashish 將向我們介紹安全港聲明。阿希什？

I would like to remind our listeners that this conference call contains forward-looking statements. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed in the forward-looking statements. Additional information regarding these risks and uncertainties is contained in the press release issued today, and more information can be found in the company's SEC filings.

我想提醒我們的聽眾，本次電話會議包含前瞻性陳述。這些聲明受到許多風險和不確定性的影響，可能導致實際結果與前瞻性聲明中表達的結果有重大差異。有關這些風險和不確定性的更多資訊包含在今天發布的新聞稿中，更多資訊可以在公司的美國證券交易委員會文件中找到。

To the extent that today's discussion refers to any non-GAAP measures under Regulation G, the required explanations and reconciliations are available with today's earnings press release and supplemental slide presentation, which can be found in the Investors section of the CTS website.

如果今天的討論涉及 G 條例下的任何非 GAAP 指標，則所需的解釋和對帳可在今天的收益新聞稿和補充幻燈片演示中找到，這些可在 CTS 網站的「投資者」部分找到。

I will now turn the discussion back over to our CEO, Kieran O'Sullivan.

現在我將把討論交還給我們的執行長 Kieran O'Sullivan。

Thank you, Ashish. We finished the second quarter with sales of $135 million, up 4% from $130 million in the second quarter of 2025. For the quarter, diversified and market sales, including sales to medical, aerospace and defense and industrial and markets were up 13%, driven by a mix of organic growth and the SyQwest acquisition. Transportation sales were down 6% from the same period last year. Diversified and market sales were 55% of overall company revenue in the quarter.

謝謝你，阿希什。我們第二季的銷售額為 1.35 億美元，比 2025 年第二季的 1.3 億美元成長 4%。本季度，多元化和市場銷售額（包括醫療、航空航太和國防以及工業和市場的銷售額）成長了 13%，這得益於有機成長和 SyQwest 收購的推動。運輸銷售額較去年同期下降了6%。多元化和市場銷售額佔本季公司總收入的 55%。

Our book to build ratio for the second quarter was 1, essentially flat in comparison to the second quarter of 2024. Bookings for our diversified end markets were down in medical due to larger bookings earlier this year.

我們第二季的訂單與建造比率為 1，與 2024 年第二季相比基本持平。由於今年稍早的訂單量較大，我們多元化終端市場的醫療訂單量有所下降。

Defense bookings were flat while industrial bookings were up 22%. Second quarter, adjusted diluted earnings were $0.57 per share, up approximately 30% from the first quarter, and up 7% from the prior year period. Ashish will add further color on our financial performance later in today's call.

國防訂單持平，而工業訂單成長22%。第二季度，調整後稀釋收益為每股 0.57 美元，較第一季成長約 30%，較去年同期成長 7%。Ashish 將在今天稍後的電話會議上進一步介紹我們的財務表現。

In the medical and market, second quarter sales were up 8% compared to the same period in 2024. We are excited about the prospects for growth in minimally invasive applications where our products help deliver enhanced ultrasound images, making it easier for medical professionals to detect artery restrictions and deliver treatment medications. Our teams are engaged on next generation development engineering to further enhance diagnostic capability with our customers.

在醫療和市場方面，第二季銷售額與2024年同期相比成長了8％。我們對微創應用的成長前景感到興奮，我們的產品有助於提供增強的超音波影像，使醫療專業人員更容易檢測動脈限制並提供治療藥物。我們的團隊致力於下一代開發工程，以進一步增強客戶的診斷能力。

We are proud to highlight our product support solutions that help save lives. During the second quarter, we had wins for medical ultrasound across all regions and an award for a pacemaker application. In addition, we added a new customer for an ultrasound application. Demand for therapeutic products were up approximately 60% year over year.

我們很自豪地強調我們的產品支援解決方案有助於拯救生命。在第二季度，我們在所有地區都獲得了醫療超音波方面的勝利，並在起搏器應用方面獲得了獎項。此外，我們也增加了一位超音波應用的新客戶。治療產品的需求年增約60%。

Bookings in the quarter were down 10% compared to the prior year period due to softness in diagnostic bookings. Over time, we expect the volume increases in portable ultrasound diagnostics and therapeutics will continue to enhance our growth profile.

由於診斷預訂量疲軟，本季的預訂量與去年同期相比下降了 10%。隨著時間的推移，我們預計便攜式超音波診斷和治療的銷售成長將繼續增強我們的成長勢頭。

Aerospace and defense sales for the second quarter were up 34% from the second quarter of 2024. Excluding sales from the SyQwest acquisition, sales were up 6%. SyQwest revenues in the second quarter were $4.5 million, and we expect stronger sales in the second half of this year. Bookings in the second quarter were flat from the prior year period as we maintain a healthy backlog.

第二季航空航太和國防銷售額較 2024 年第二季成長 34%。不計收購 SyQwest 帶來的銷售額，銷售額成長了 6%。SyQwest 第二季的營收為 450 萬美元，我們預計今年下半年的銷售將會更加強勁。由於我們保持了健康的積壓訂單，第二季的預訂量與去年同期持平。

Our strategy is focused on moving from a component supplier to a supplier of sensors, transducers, and subsystems. We received multiple orders in the quarter for sonar transducers across North America and Europe, transducer refurbishments, and outboard electronic applications. The integration of the SyQwest business is progressing, and the business continued to drive a strong pipeline of opportunities.

我們的策略重點是從零件供應商轉向感測器、換能器和子系統的供應商。本季度，我們收到了來自北美和歐洲的多個聲納換能器、換能器翻新和舷外電子應用的訂單。SyQwest 業務的整合正在取得進展，該業務繼續帶來強勁的機會。

In the industrial market, we continue to see a gradual recovery with OEMs as well as with distribution customers. Sales in the second quarter were up 5% sequentially and up 6% compared to the prior year period, underscoring our expectation of a continued recovery. Bookings in the quarter were up 22% from the same period last year.

在工業市場，我們繼續看到原始設備製造商和分銷客戶逐漸復甦。第二季銷售額較上季成長 5%，年增 6%，凸顯了我們對持續復甦的預期。本季的預訂量比去年同期成長了 22%。

We were successful with multiple wins in the quarter for EMC, switches, industrial printing, and temperature sensing applications where we won a new business award for EV charging stations in Europe. We added a new customer in the quarter for a millimeter wave small cell frequency application.

本季度，我們在 EMC、開關、工業印刷和溫度感測應用領域取得了多項成功，其中我們贏得了歐洲電動車充電站的新業務獎。本季度，我們為毫米波小型蜂窩頻率應用增加了一位新客戶。

Demand across the industrial market is expected to continue improving in the second half of 2025. The mega trends of automation, connectivity, and efficiency enhance our longer term growth prospects. Transportation sales were $61 million in the second quarter, down approximately 6% from the same period last year due to the impacts of China market dynamics and softness for commercial vehicle products.

預計 2025 年下半年整個工業市場的需求將持續改善。自動化、連結性和效率的大趨勢增強了我們的長期成長前景。第二季運輸銷售額為 6,100 萬美元，受中國市場動態和商用車產品疲軟的影響，較去年同期下降約 6%。

In the second quarter, we had awards across various product groups including accelerator module wins with customers in North America, Europe, and Asia. Additionally, we received the chassis ride height sensing award from a North American OEM.

第二季度，我們在各個產品組都獲得了獎項，其中包括來自北美、歐洲和亞洲客戶的加速器模組獎項。此外，我們還獲得了北美 OEM 頒發的底盤行駛高度感測獎。

More recently, on the innovation front, we advanced our [coRS] technology, which enables precise position sensing with high resolution for motor position sensing. The near-term growth rates for ICE versus EVs and hybrids are less of a concern for us, given our light vehicle products are mostly agnostic to the drivetrain technology.

最近，在創新方面，我們改進了 [coRS] 技術，該技術可以實現精確的位置感測，並具有高解析度的馬達位置感測。鑑於我們的輕型汽車產品與動力傳動系統技術基本無關，內燃機汽車與電動車和混合動力車的近期成長率對我們來說並不是那麼令人擔憂。

Total book business was approximately $1 billion at the end of the quarter. Interest in our eBrake product offering weight and cost advantages, continues across OEMs at a slower pace as certain OEMs recalibrate EV investments. Our team is proceeding with samples and design customizations for OEMs in Tier 1s.

本季末，圖書業務總額約 10 億美元。由於某些 OEM 重新調整電動車投資，對我們具有重量和成本優勢的 eBrake 產品的興趣在 OEM 中繼續以較慢的速度增長。我們的團隊正在為一級原始設備製造商 (OEM) 提供樣品和設計客製化。

We remain confident in the longer term growth prospects for this product line, given the cost and weight benefits for our customers, as well as the sentiment in the market from OEMs and Tier 1 chassis system suppliers. We expect our eBrake, other footwall products, existing and new sensor applications will increase our ability to grow content.

考慮到我們為客戶帶來的成本和重量優勢，以及來自原始設備製造商和一級底盤系統供應商的市場情緒，我們對該產品系列的長期成長前景仍然充滿信心。我們預計我們的 eBrake、其他底板產品、現有和新的感測器應用將增強我們成長內容的能力。

For our diversified end markets in line with our strategy, we aim to expand the customer base and range of applications. Subject to evolving trade tariffs and associated economic uncertainty, demand in the medical and market is expected to be mixed, with strengthen therapeutics and some softness in diagnostic ultrasound.

對於符合我們策略的多元化終端市場，我們的目標是擴大客戶群和應用範圍。受不斷變化的貿易關稅和相關的經濟不確定性的影響，醫療和市場的需求預計將出現混合，治療學將加強，而診斷超音波將有所疲軟。

In aerospace and defense, revenue is expected to grow given our backlog of orders and momentum from the SyQwest acquisition. Industrial and distribution sales are expected to improve. Longer term, we expect our material formulations, supported by three leading technologies and their derivatives, to continue to drive our growth in key high quality and markets in line with our diversification strategy.

在航空航太和國防領域，考慮到我們的積壓訂單和 SyQwest 收購帶來的動力，預計收入將會成長。工業和分銷銷售額預計將有所改善。從長遠來看，我們預計，在三大領先技術及其衍生物的支持下，我們的材料配方將繼續推動我們在關鍵高品質市場的成長，符合我們的多元化策略。

Across transportation markets, production volumes are expected to decrease in 2025, given the tariff impact and the supply of rare earth for OEMs and Tier 1 suppliers. The North American light vehicle market is expected to be in the 15 million unit range. European production is forecasted in the 16 million unit range and showing some increased softness due to pressure from Chinese OEMs.

考慮到關稅影響以及原始設備製造商 (OEM) 和一級供應商的稀土供應，預計 2025 年運輸市場的產量將會下降。北美輕型車市場預計規模約1500萬輛。預計歐洲產量將在 1,600 萬輛左右，並且由於來自中國原始設備製造商的壓力，產量將有所下降。

China volumes are expected to be in the 30 million unit range. Electric vehicle penetration rates have softened in some regions, while hybrid adoption continues to improve. More recently, our next generation commercial vehicle actuator commenced low volume production during the quarter.

預計中國銷量將達到 3,000 萬台左右。一些地區的電動車普及率下降，而混合動力車的普及率則持續提高。最近，我們的下一代商用車執行器在本季開始小批量生產。

Overall, we are monitoring the potential for headwinds in transportation revenue due to trade tariffs and the China market dynamics. We anticipate softness in commercial vehicle related revenue for the remainder of the year.

總體而言，我們正在監測貿易關稅和中國市場動態對運輸收入造成的潛在不利影響。我們預計今年剩餘時間內商用車相關收入將會疲軟。

As I mentioned in previous calls, revenue from the SyQwest acquisition will introduce some seasonality where the timing of revenue may be influenced by the approval of funding by the US government. With the recent budget approval, we expect revenues for SyQwest will improve in the second half of 2025.

正如我在之前的電話會議中提到的，SyQwest 收購的收入將帶來一些季節性，收入的時間可能會受到美國政府資金批准的影響。隨著最近預算的批准，我們預計 SyQwest 的收入將在 2025 年下半年有所提高。

The impact of tariffs and the geopolitical environment are creating uncertainty. We continue to closely monitor and evaluate the situation while focusing on agility and adapting to cost and price adjustments in close collaboration with our customers and suppliers. Assuming the continuation of current market conditions, we are maintaining our guidance of sales in the range of $520 million to $550 million and adjusted diluted EPS to be in the range of $2.20 to $2.35.

關稅和地緣政治環境的影響正在產生不確定性。我們將繼續密切監控和評估情況，同時專注於靈活性並與客戶和供應商密切合作以適應成本和價格調整。假設當前市場狀況持續下去，我們將維持銷售額在 5.2 億美元至 5.5 億美元之間的預期，並將調整後的稀釋每股收益維持在 2.20 美元至 2.35 美元之間。

Now I'll turn it over to Ashish, who will walk us through the financial results in more details. Ashish?

現在我將把時間交給 Ashish，他將向我們更詳細地介紹財務結果。阿希什？

Thank you, Kieran. Sales in the second quarter were $135 million, up 8% sequentially and up 4% from the last year. Sales to diversify and markets increased 13% year over year. SyQwest added $4.5 million in revenue during the quarter. As Kieran has highlighted, we are seeing seasonality in sales from SyQwest due to government funding patterns and expect a stronger second half.

謝謝你，基蘭。第二季銷售額為 1.35 億美元，季增 8%，年增 4%。多元化市場銷售額較去年同期成長13%。SyQwest 本季增加了 450 萬美元的營收。正如 Kieran 所強調的，由於政府的資助模式，我們看到 SyQwest 的銷售呈現季節性，預計下半年銷售會更加強勁。

Sales to transportation customers were down 6% from the second quarter of last year due to softness in sales related to commercial vehicle products and reduced volumes due to China market dynamics. Our adjusted gross margin was 38.7% in the second quarter, up 296 basis points compared to the second quarter of 2024, and up 174 basis points sequentially compared to the first quarter of 2025.

由於商用車產品銷售疲軟以及中國市場動態導致銷售減少，對運輸客戶的銷售額較去年第二季下降了 6%。我們第二季的調整後毛利率為 38.7%，與 2024 年第二季相比上升 296 個基點，與 2025 年第一季相比較上季上升 174 個基點。

As we continue to work on diversification as a strategic priority, we are seeing a favorable mixed impact on our profitability. In addition, our global teams continue to focus on operational execution to deliver margin improvements. We are working closely with customers and suppliers on tariffs and had a minimal impact on profitability in the second quarter.

隨著我們繼續將多元化作為策略重點，我們看到了對獲利能力的有利影響。此外，我們的全球團隊繼續專注於營運執行，以提高利潤率。我們正與客戶和供應商就關稅問題密切合作，這對第二季度的獲利能力影響甚微。

Exchange rate changes had a favorable impact of $1 million on gross margins. We achieved adjusted EBITDA of 23% in the quarter, an improvement of 250 basis points sequentially, and 130 basis points compared to the second quarter of 2024. Earnings were $0.62 per diluted share for the second quarter. Adjusted earnings were $0.57 per diluted share compared to $0.44 in the first quarter of 2025 and $0.54 in the second quarter of 2024.

匯率變動對毛利率產生了100萬美元的有利影響。本季度，我們實現了 23% 的調整後 EBITDA，比上一季提高了 250 個基點，與 2024 年第二季度相比提高了 130 個基點。第二季每股收益為 0.62 美元。調整後每股攤薄收益為 0.57 美元，而 2025 年第一季為 0.44 美元，2024 年第二季為 0.54 美元。

Moving to cash generation and the balance sheet. We generated $28 million in operating cash flow in the second quarter compared to $20 million in the second quarter of 2024. Year-to-date, we have generated $44 million in operating cash flow. Our balance sheet remains strong, with a cash balance of $99 million at the end of the quarter.

轉向現金產生和資產負債表。我們第二季的經營現金流為 2,800 萬美元，而 2024 年第二季為 2,000 萬美元。年初至今，我們已產生 4,400 萬美元的營運現金流。我們的資產負債表依然強勁，本季末的現金餘額為 9,900 萬美元。

Our long term debt balance was $88 million, leaving us good liquidity to support strategic acquisitions. During the quarter, we repurchased 412,000 shares of CTS stock for approximately $17 million. In total, we returned $26 million to shareholders through dividends and share buybacks so far in 2025.

我們的長期債務餘額為 8800 萬美元，為我們留下了良好的流動性來支持策略性收購。本季度，我們以約 1,700 萬美元回購了 412,000 股 CTS 股票。截至 2025 年，我們已透過股利和股票回購向股東返還了總計 2,600 萬美元。

We have $38 million remaining under our current share repurchase program. Our focus remains on strong cash generation and appropriate capital allocation, and we continue to support organic growth, strategic acquisitions, and returning cash to shareholders.

我們目前的股票回購計畫還剩餘 3,800 萬美元。我們的重點仍然是強勁的現金創造和適當的資本配置，我們將繼續支持有機成長、策略性收購和向股東返還現金。

This concludes our prepared comments. We would like to open the line for questions at this time.

我們的準備評論到此結束。我們現在想開通熱線來回答問題。

(Operator Instructions) John Franzreb, Sidoti.

（操作員指示） John Franzreb，Sidoti。

Good morning, everyone, and thanks for taking the questions. Kieran, I'd like to start with the medical market. It seems like there's maybe two different product lines going in two different directions. Therapeutics, you said it was up 60%, I believe. You also -- I think you issued a little bit of a warning about diagnostics. Can you talk a little bit about what's going on in the marketplace there for you?

大家早安，感謝你們回答問題。基蘭，我想從醫療市場開始。看起來好像有兩條不同的產品線朝著不同的方向發展。治療學，你說它上漲了 60%，我相信。您也—我認為您對診斷發出了一些警告。您能否簡單談談那裡的市場狀況？

Yeah, John. On the therapeutic side on the last earnings call, we talked about a larger order and that's obviously playing out here in the second quarter and for the balance of the year as well. We've seen some softness in diagnostics on the ultrasound side of it, mostly coming from capital spend in Asia and maybe tariff related as well. So we will see some softness there, but overall, on medical for the year, we will see growth.

是的，約翰。在上次收益電話會議上，我們談到了治療方面的一項更大的訂單，這顯然會在第二季度以及今年餘下的時間裡發揮作用。我們發現超音波診斷方面存在一些疲軟現象，主要來自亞洲的資本支出，也可能與關稅有關。因此，我們會看到一些疲軟，但總體而言，今年的醫療狀況將出現成長。

Good. That's good to hear. And you just touched on the tariff situation. What was the impact, if any, of tariffs on you in the quarter?

好的。聽到這個消息真好。您剛才談到了關稅情況。如果有的話，本季關稅對您有何影響？

Was pretty nominal, John. As we mentioned in the prepared remarks, we're working closely with customers as well as suppliers. Overall the impactvery, very minimal in the quarter.

相當名義上，約翰。正如我們在準備好的演講中所提到的，我們正在與客戶和供應商密切合作。總體而言，本季的影響非常小。

Do you expect it to stay that way?

您認為它會保持這種狀態嗎？

Generally, under the current conditions I would say, yes, but there's a lot of changes happening, as you know. So we are continuing to monitor the situation. As we've talked about in the past, our bigger impact happens with any potential changes in the USMCA.

總的來說，在目前的情況下，我會說是的，但正如你所知，正在發生很多變化。因此我們將繼續監視局勢。正如我們過去所討論的，我們更大的影響發生在 USMCA 的任何潛在變化中。

Okay. Got it. And when you think about the transportation market, Kieran, you're also signaling continued weakness. Any thoughts about when that market might bottom out for you?

好的。知道了。基蘭，當你考慮運輸市場時，你也發出了持續疲軟的訊號。您認為市場何時會觸底？

John, obviously, yes, weakness this year. It's mixed across the regions. We've talked about softness in China and being a factor for us in the commercial vehicle. We think it's bottomed out in China, but we're being a little bit just cautious on that. So we see the trend over a few quarters.

約翰，顯然，是的，今年的實力較弱。各地區的情況不一。我們討論過中國市場的疲軟以及這對我們商用車市場的影響。我們認為中國市場已經觸底，但我們對此持謹慎態度。所以我們看到了幾個季度的趨勢。

On the light vehicle side, we did improve sequentially this quarter. And I would tell you we've got a pipeline of both businesses really strong across multiple products that were working. So it's a little bit mixed, John. I would just say the tariff situation is the one we're watching there. There was some pre-buy in Q2 in April and May. It just feels -- it feels a little tenuous for the next few quarters.

在輕型車方面，本季我們確實取得了連續的進步。我想告訴你們，我們兩個業務部門都擁有非常強大的產品線，而這些產品都在有效運作。所以這有點混亂，約翰。我只想說，我們正在關注關稅情況。四月和五月第二季有一些預購。只是感覺——接下來的幾季感覺有點脆弱。

Makes sense. And just on the core side of the equation, how's the integration of SyQwest going? Is that fully complete? And are there any other cost measures you're currently active on outside of that?

有道理。那麼從核心面來看，SyQwest 的整合進展如何？那已經完全完成了嗎？除此之外，您目前還積極採取其他成本措施嗎？

John, the SyQwest acquisition is moving along well. A lot of the integration work's been done, and there's still a little bit more to do, and we're still running on different ERP systems. But the pipeline of opportunities is really strong.

約翰，SyQwest 收購進展順利。很多整合工作已經完成，但仍有一些工作要做，而且我們仍在運行不同的 ERP 系統。但機會確實非常強大。

What I would tell you is the timing with the government and the getting the budget approval has been something we've been watching carefully and glad to see that approved because we think that's going to be a momentum builder going forward.

我想告訴你的是，我們一直在密切關注政府的時機和預算批准，很高興看到預算獲得批准，因為我們認為這將成為未來的動力。

Okay. And any other internal cost saving actions that you're currently executing?

好的。您目前正在執行其他內部成本節約措施嗎？

So on SyQwest, John, we're really not looking to drive cost saving type of actions. The business is working on a strong pipeline and we're shoring up capabilities from a production standpoint to make sure that we can drive that growth and do the revenue growth part of it strongly in that part of the business.

因此，約翰，對於 SyQwest，我們實際上並不是想採取節省成本的行動。該業務正在建立強大的管道，我們正在從生產的角度加強能力，以確保我們能夠推動這一成長，並在該業務部分強勁實現收入成長。

Understood. Ashish, I was actually referencing legacy CTS.

明白了。Ashish，我實際上引用的是舊版 CTS。

Got it. So in terms of -- we're continuing to look at operational efficiency on an ongoing basis like we always do, John. That was contributing to our gross margin expansion in the quarter that we talked about. But in terms of big things that we have in the works, there's not much that we've talked about publicly. As we continue working on things if there are bigger changes we're making, I'm sure we'll highlight those.

知道了。因此就這一點而言——我們會像往常一樣持續關注營運效率，約翰。這有助於我們討論的本季的毛利率擴大。但就我們正在籌備的大事而言，我們公開談論的並不多。隨著我們繼續努力，如果我們做出更大的改變，我相信我們會強調這些改變。

Great. Okay, I'll get back to you. Thanks for taking my questions.

偉大的。好的，我會回覆您。感謝您回答我的問題。

Thanks, John.

謝謝，約翰。

Hendi Susanto, Gabelli Funds.

Hendi Susanto，Gabelli Funds 基金。

Good morning, Kieran, and Ashish.

早安，Kieran 和 Ashish。

Morning, Hendi.

早上好，亨迪。

Kieran, Ashish, I would like to ask like similar questions, but hopefully deeper. The mix dynamic in medical marketplace in diagnostic and then then in therapeutic, any guidepost on, let's say, how much the large order would sustain or generate a nice revenue upside in the next coming quarters? And then on the other hand, the softness in diagnostic, like how much further should we expect?

Kieran，Ashish，我想問類似的問題，但希望問得更深入一些。醫療市場在診斷和治療方面的混合動態，有什麼指導原則可以說明，在接下來的幾個季度中，大訂單將維持多少或產生多少可觀的收入成長？另一方面，診斷的軟性，我們應該期待多遠？

Hendi, the softness in diagnostics may be for a quarter or two, we still feel very confident in the growth of that business in the mid to long term. On the therapeutic side, confident in the growth throughout the balance of this year, and then we would expect new purchase orders as we go ahead. So overall, as I mentioned earlier, we'll see growth in medical this year and we're expecting growth as we go into the the years ahead too.

Hendi，診斷業務的疲軟可能會持續一兩個季度，但我們仍然對該業務在中長期的成長充滿信心。在治療方面，我們對今年全年的成長充滿信心，並且我們期待在未來獲得新的採購訂單。所以總的來說，正如我之前提到的，今年我們將看到醫療領域的成長，我們預計未來幾年也將出現成長。

Okay, got it. And then, Ashish, may I ask, how much revenues SyQwest generated in the same quarter a year ago so that we know on a year on a year of the comparison, what the numbers look like?

好的，明白了。然後，Ashish，我可以問一下嗎，SyQwest 在去年同期的營收是多少，以便我們知道同比情況如何？

Yeah, Hendi, we closed on the acquisition towards the end of July last year. So the second quarter of 2025 was purely additive.

是的，Hendi，我們在去年 7 月底完成了收購。因此，2025 年第二季純粹是附加的。

Yes. But can we know, prior to acquisitions like how much the quarterly revenue in the second quarter of 2024?

是的。但在收購之前我們能否知道2024年第二季的季度營收是多少？

We haven't talked about that, Hendi, in terms of pre-acquisition revenues. So that's something that we haven't talked about publicly.

亨迪，就收購前的收入而言，我們還沒有談論過這一點。所以這是我們尚未公開談論的事情。

Yeah. And then, I think I asked like similar question in the past within transportation, how much is China?

是的。然後，我想我過去在交通運輸方面問過類似的問題，中國多少錢？

China transportation as a percent of our overall revenue will be similar to what we have for the overall transportation as a percent of total CTS, that'll give you -- get you close enough in terms of how much revenue we have in China. When you look at overall China, we -- our last year's data that was published as part of the 10-K, we had revenues of about $80 million-plus in total.

中國運輸收入占我們總收入的百分比將與我們整體運輸收入佔中國運輸總收入的百分比相似，這將使您 - 就我們在中國的收入而言足夠接近。從整個中國來看，我們去年在 10-K 報告中公佈的數據表明，我們的總收入約為 8,000 多萬美元。

Okay, got it. And then Kieran, you talked about a strong pipeline of opportunities -- sorry, I think you said that in transportation, there are some solid or like positive pipelines across products that you are working on. Would you be able to mention which products can --?

好的，明白了。然後基蘭，您談到了強大的機會管道——抱歉，我認為您說的是，在交通運輸領域，您正在開發的產品中存在一些穩固的或積極的管道。你能提到哪些產品可以--？

Yeah, Hendi, we would be working with customers on accelerator modules, and passive safety sensors, and new combination sensors, and motor position sensing, just to give you a few examples in transportation. And we also have a strong pipeline in the diversified end markets as well.

是的，Hendi，我們將與客戶合作開發加速器模組、被動安全感測器、新型組合感測器和馬達位置感測，這只是在交通運輸領域舉幾個例子。我們在多元化終端市場也擁有強大的產品線。

And then within the transportation, those pipelines, are they more skewed to North America and Europe?

那麼在運輸方面，這些管道是否更偏向北美和歐洲？

Hendi, I would certainly -- we've been winning business in all regions. I would say the larger pipeline is in the North America region for sure, but some of these OEMs are operating globally too.

亨迪，我當然會——我們在所有地區都贏得了業務。我想說的是，更大的管道肯定在北美地區，但其中一些原始設備製造商也在全球運作。

Okay, got it. Thank you let me get back to the queue.

好的，明白了。謝謝你讓我回到隊列。

Thank you, Hendi.

謝謝你，亨迪。

Thank you.

謝謝。

(Operator Instructions) John, Sidoti.

（操作員指示）約翰，西多蒂。

Yeah, just a follow up question. Can you talk a little bit about the acquisition market, what you're seeing out there, maybe the size of the opportunities that you're most focused on?

是的，只是一個後續問題。您能否簡單談談收購市場，您看到的市場情況，以及您最關注的機會的規模？

John, we're most focused on advancing our diversified end markets that the aerospace and defense, industrial and medical. We're always working on a pipeline of opportunities. There's nothing to report at this point in time, but we certainly see some uptick in activity out there.

約翰，我們最關注的是推進我們多元化的終端市場，即航空航太和國防、工業和醫療。我們始終致力於尋找各種機會。目前還沒有什麼可報告的，但我們確實看到那裡的活動增加。

That's great. Something maybe within the next 12 months or am I thinking too far ahead?

那太棒了。或許是未來 12 個月內發生的事情，還是我想得太遠了？

Well, John, if you look at how we talk about our growth 5% organic, 5% through acquisitions, we would definitely like to do something in the next 12 months.

好吧，約翰，如果你看看我們如何談論我們的成長：5% 的有機成長，5% 的透過收購實現的成長，我們肯定希望在未來 12 個月內有所作為。

Okay. All right, good to hear. Thanks for taking my follow-up.

好的。好的，很高興聽到這個消息。感謝您關注我的後續問題。

Thank you, John.

謝謝你，約翰。

(Operator Instructions) We have no further questions. So I'll hand the call back to Kieran for some closing comments.

（操作員指示）我們沒有其他問題了。因此我將把電話交還給 Kieran，請他發表一些結束語。

Thanks, Adam, and thank you all for your time today. Despite the challenges of tariffs, geopolitical and economic pressures, diversification remains a strategic priority. We launched our evolution 2030 strategic initiative to enhance our emphasis on sales growth, operational rigor, and employee engagement while also giving back to the communities where we operate. We look forward to updating you on our third quarter 2025 performance in October. This concludes our call. Thank you.

謝謝，亞當，也謝謝大家今天抽出時間。儘管面臨關稅、地緣政治和經濟壓力的挑戰，多元化仍然是一項戰略重點。我們啟動了「2030 發展」策略計劃，以加強對銷售成長、營運嚴謹性和員工敬業度的重視，同時回饋我們營運所在的社區。我們期待在十月向您報告我們 2025 年第三季的業績。我們的通話到此結束。謝謝。

This concludes today's call. Thank you very much for your attendance. You may now disconnect your lines.

今天的電話會議到此結束。非常感謝您的出席。現在您可以斷開線路了。