CTS Corp (CTS) 2025 Q3 法說會逐字稿

Hello, everyone, and thank you for joining the CTS Corporation third-quarter 2025 earnings call. My name is Claire and I will be coordinating your call today. (Operator Instructions) I will now hand over to Kieran O'Sullivan to begin. Please go ahead.

大家好，感謝各位參加 CTS 公司 2025 年第三季財報電話會議。我叫克萊爾，今天將由我負責協調您的通話。（操作說明）現在我將把控制權交給 Kieran O'Sullivan 開始。請繼續。

Good morning, and thanks for joining us today. We delivered a quarter of strong double-digit growth in our diversified end markets, with sales up 22% versus the prior year period. Diversified sales for the quarter were 59% of overall company revenue. We also expanded gross margin by 66 basis points and had solid operating cash flow. Secondly, our (inaudible) team was awarded a sole-source naval defense contract with an initial value of $5 million and the potential to add additional platform awards within the next 12 months.

早安，感謝您今天收看我們的節目。我們在多元化的終端市場實現了強勁的兩位數成長，銷售額比上年同期成長了 22%。本季多元化銷售額占公司總收入的 59%。我們的毛利率也提高了 66 個基點，並且擁有穩健的經營現金流。其次，我們（聽不清楚）團隊獲得了一份價值 500 萬美元的海軍國防獨家合同，並且有可能在未來 12 個月內增加其他平台合約。

Finally, in transportation, we had a strong quarter with wins of $130 million and added a new braking sensor application. Ashish will take us through the safe harbor statement, Ashish.

最後，在交通運輸領域，我們本季表現強勁，贏得了 1.3 億美元的訂單，並新增了一項煞車感知器應用。阿什什，阿什什，請帶我們了解安全港聲明。

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. 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.

我想提醒各位聽眾，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因素的影響，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信息，請參閱今天發布的新聞稿，以及公司向美國證券交易委員會提交的文件。如果今天的討論涉及 G 條例下的任何非 GAAP 指標，則所需的解釋和調整表可在今天的收益新聞稿和補充幻燈片簡報中找到，這些內容可在 CTS 網站的投資者部分找到。

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

現在我將把討論交給我們的執行長基蘭·奧沙利文。

Thank you, Ashish. We finished the third quarter with sales of $143 million, up 8% from $132 million in the third quarter of 2024. For the quarter, diversified end market sales, including sales to medical, aerospace and defense and industrial end markets were up 22%. Transportation sales were down 7% from the same period last year. Diversified end market sales were 59% of overall company revenue in the quarter, up from 52% in the third quarter of last year.

謝謝你，阿什什。第三季銷售額為 1.43 億美元，比 2024 年第三季的 1.32 億美元成長了 8%。本季度，包括醫療、航空航太和國防以及工業終端市場在內的多元化終端市場銷售額成長了 22%。運輸業銷售額比去年同期下降了7%。本季多元化終端市場銷售額占公司總收入的 59%，高於去年第三季的 52%。

Our book-to-bill ratio for the third quarter was slightly above 1 in comparison to the third quarter of 2024, where we were marginally below 1. Bookings for our diversified end markets were up double digits in industrial and defense and an increase in the high single digits in Medical on a year-over-year basis. We expect stronger medical bookings in the last quarter, especially for therapeutic products. Third quarter adjusted diluted earnings were $0.60 per share, down from $0.61 in the third quarter of 2024, primarily due to an unfavorable impact from the recent US tax legislation.

與 2024 年第三季略低於 1 相比，我們第三季的訂單出貨比略高於 1。我們多元化終端市場的預訂量年增，其中工業和國防領域的預訂量實現了兩位數增長，醫療領域的預訂量實現了接近兩位數的增長。我們預計第四季度醫療產品訂單量將有所增長，尤其是治療性產品。第三季調整後稀釋每股收益為 0.60 美元，低於 2024 年第三季的 0.61 美元，主要原因是近期美國稅收立法的不利影響。

Ashish will add further color on this and on our financial performance later in today's call. In the medical end market, third quarter sales were up 22% compared to the same period in 2024. Bookings in the quarter were up 8% compared to the prior year period. We are excited about the prospects for growth in minimally invasive applications where our products help deliver enhanced ultrasound images and make it easier for medical professionals to detect order restrictions. Our teams are engaged on next-generation product development to further enhance diagnostic capability with our customers.

Ashish 將在今天的電話會議上進一步闡述這一點以及我們的財務表現。在醫療終端市場，第三季銷售額比 2024 年同期成長了 22%。本季預訂量比上年同期增長了 8%。我們對微創應用領域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到口腔限制。我們的團隊正致力於下一代產品的研發，以進一步提升我們客戶的診斷能力。

We are proud to highlight that our product support solutions that help save lives. Additionally, our products enable medication delivery for treatment of infected areas, aid blood analysis and flow, cancer treatments and are incorporated in pacemakers and cochlear implants. Our therapeutic products enhance skin aesthetics and in combination with other medical procedures, help improve skin tightness. During the third quarter, we had multiple wins for diagnostic ultrasound and headwinds for therapeutics, pacemakers and a win for an ophthalmology application. We are also developing samples for doubler ultrasound for a vascular flow application.

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。此外，我們的產品可用於治療感染部位的藥物輸送、輔助血液分析和流動、癌症治療，並應用於心臟節律器和人工耳蝸植入物。我們的治療產品可以改善皮膚美觀，並與其他醫療程序結合使用，有助於改善皮膚緊緻度。第三季度，我們在診斷超音波領域取得了多項成功，但在治療、起搏器領域遇到了一些阻力，不過在眼科應用方面取得了一項成功。我們也正在開發用於血管血流應用的倍增超音波樣本。

In addition, we added two new customers for diagnostic ultrasound. Demand remains strong for therapeutic products, and we expect increased volumes in 2026. Over time, we expect the volume increases in portable ultrasound diagnostics and therapeutics will continue to enhance our growth profile as well as expansion into new applications. Aerospace and defense sales in the third quarter were up 23% from the third quarter of 2024. SyQwest revenues in the third quarter increased to $8.8 million, and we expect to maintain this momentum through the balance of this year.

此外，我們也新增了兩位診斷超音波客戶。市場對治療產品的需求依然強勁，我們預計 2026 年銷售量將有所成長。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提升我們的成長勢頭，並拓展到新的應用領域。第三季航空航太和國防銷售額比 2024 年第三季成長了 23%。SyQwest 第三季營收增至 880 萬美元，我們預計今年剩餘時間將保持這一成長勢頭。

Bookings in the third quarter were up 29% from the prior year period as we maintain a healthy backlog, and we expect solid bookings in the last quarter of this year. Our strategy is focused on moving from a component supplier to a supplier of sensors, transducers and subsystems and is further validated by our recent Naval award. We received multiple orders in the quarter for sonar applications. The order mentioned in my opening comments for the (inaudible) business is for a naval munition application, and we expect additional platform awards as we move forward. (inaudible) continues to drive a strong pipeline of opportunities.

由於我們保持了健康的訂單儲備，第三季的預訂量比去年同期增加了 29%，我們預計今年最後一季的預訂量將保持穩健成長。我們的策略重點是從零件供應商轉型為感測器、換能器和子系統供應商，最近獲得的美國海軍合約進一步驗證了這項策略。本季我們收到了多份聲納應用程式方面的訂單。我在開場白中提到的（聽不清楚）業務訂單是用於海軍彈藥的，我們預計隨著工作的推進，還會有更多平台訂單。 （聽不清楚）持續推動強勁的業務機會。

In the industrial market, we continue to see a steady recovery with OEMs as well as a stronger recovery with distribution customers. Sales in the third quarter were up 9% sequentially and up 21% compared to the prior year period, underscoring our expectation of a continued recovery. Bookings in the quarter were up 29% from the same period last year. We were successful with multiple wins in the quarter for industrial printing, EMC, temperature sensing wins for pool and spa and the win for an industrial heat pump application. We added one new customer in the quarter for physician sensing.

在工業市場方面，我們看到OEM廠商的需求持續穩定復甦，而分銷客戶的復甦勢頭則更為強勁。第三季銷售額較上季成長 9%，年增 21%，印證了我們對經濟持續復甦的預期。本季預訂量比去年同期成長了 29%。本季我們在工業印刷、EMC、泳池和水療中心的溫度感測以及工業熱泵應用領域都取得了成功，贏得了多個項目。本季我們新增了一位醫生感測領域的客戶。

Demand across industrial end market is expected to remain healthy for the balance of 2025. The mega trends of automation, connectivity and efficiency, enhance our longer-term growth prospects. Transportation sales were $58.5 million in the third quarter, down approximately 7% from the same period last year due to softness for commercial vehicle profit. In the third quarter, we had awards across various product groups, including accelerator module wins with OEMs in Europe, South America and China. Total booked business was approximately $1 billion at the end of the quarter.

預計2025年剩餘時間內，工業終端市場的需求將維持健康成長。自動化、互聯互通和效率提升這三大趨勢，將增強我們的長期成長前景。第三季運輸業務銷售額為 5,850 萬美元，比去年同期下降約 7%，原因是商用車利潤疲軟。第三季度，我們在各個產品組都獲得了獎項，包括與歐洲、南美和中國的 OEM 廠商合作贏得加速器模組訂單。本季末，總預訂業務額約10億美元。

We had various wins for passive safety and chassis right hit sensors across several regions. We added a new product to the portfolio for brake sensing securing a business award with a North American OEM. This further strengthens our long-term capability to expand our footwell presence. We also have a large win in commercial vehicle for smart actuators with an existing customer. Additionally, during the quarter, we released our Corus technology, a new platform for electric motor control.

我們在多個地區憑藉被動安全和底盤右側碰撞感應器獲得了多項獎項。我們為產品組合新增了一款煞車感測產品，並因此獲得了北美一家原始設備製造商的業務合約。這將進一步增強我們長期擴大鞋墊區域覆蓋範圍的能力。我們也與現有客戶在商用車智慧執行器領域取得了一筆大訂單。此外，本季我們還發布了 Corus 技術，這是一個用於馬達控制的新平台。

This technology eliminates the need for three discrete current sensors and the position sensor, allowing for a simplified design, weight reduction and more precise control. The near-term growth rates for iced versus AVs and hybrids are less of a concern for us given our light vehicle products are mostly agnostic to the drivetrain technology. The trend towards increasing demand for hybrids with extended range capabilities remains robust. Interest in our e-break product, offering weight and cost advantages continues across OEMs at a slower pace as certain OEMs recalibrate EV investments and launch dates. We remain confident in the longer-term growth prospects for our e-break and other footwell products.

這項技術省去了三個獨立的電流感測器和一個位置感測器，從而簡化了設計，減輕了重量，並實現了更精確的控制。鑑於我們的輕型車輛產品大多與動力傳動系統技術無關，因此我們並不太擔心燃油車與自動駕駛汽車和混合動力汽車的近期增長率。對具備增程能力的混合動力車的需求成長趨勢依然強勁。雖然部分 OEM 廠商正在重新調整電動車投資和上市日期，但他們對我們具有重量和成本優勢的電子煞車產品的興趣仍在繼續，只是成長放緩。我們對電動煞車和其他腳部空間產品的長期成長前景仍然充滿信心。

These, along with existing and new sensor applications will increase our ability to grow content. For our diversified end markets, subject to the uncertain tariff environment, demand in the medical market is expected to remain mixed with strength in therapeutics and softness in diagnostic ultrasound. In Aerospace and Defense, revenue is expected to grow, given the timing 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 end markets in line with our diversification strategy.

這些，連同現有的和新的感測器應用，將提高我們發展內容的能力。對於我們多元化的終端市場而言，在不確定的關稅環境下，醫療市場的需求預計將保持喜憂參半，治療領域的需求強勁，而診斷超音波領域的需求疲軟。鑑於訂單的時機和 SyQwest 收購帶來的勢頭，預計航空航太和國防領域的收入將有所增長。預計工業和分銷銷售額將有所改善。從長遠來看，我們期望在三大領先技術及其衍生性商品的支持下，我們的材料配方將繼續推動我們在關鍵的高品質終端市場實現成長，這符合我們的多元化策略。

Across transportation markets, production volumes are expected to remain soft given the tariff impact and demand from customers. 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. China volumes are expected to be in the 30 million unit range. We are carefully monitoring for any potential impact from supply chain issues related to rare earth, aluminum and semiconductors, although we are not seeing any immediate impact.

受關稅影響和客戶需求疲軟，預計運輸市場的產量將保持疲軟。預計北美輕型車市場規模將達到 1500 萬輛左右。預計歐洲產量將在 1600 萬輛左右。預計中國銷量將達到 3,000 萬輛左右。我們正在密切關注稀土、鋁和半導體相關的供應鏈問題可能造成的任何潛在影響，儘管我們目前尚未看到任何直接影響。

Electric vehicle penetration rates have softened in some regions, while hybrid adoption continues to improve. There was a notable demand increase for EVs in September with the elimination of the vehicle subsidy for the North American market. We anticipate general softness in commercial vehicle demand in the fourth quarter. Shipments of our new commercial vehicle actuator continue to ramp as we prepare for 2026, where we will implement further product enhancements. 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

在某些地區，電動車的普及率放緩，而混合動力車的普及率則持續提高。9 月份，隨著北美市場取消車輛補貼，對電動車的需求顯著增加。我們預計第四季商用車需求將普遍疲軟。隨著我們為 2026 年做準備，我們的新型商用車執行器的出貨量持續成長，屆時我們將實施進一步的產品改進。正如我在先前的電話會議中提到的，SyQwest 收購帶來的收入會受到季節性因素的影響，收入到帳時間可能會受到美國政府資金批准的影響。

government. As reported, we saw an increase in revenue for SyQwest in the third quarter and expect to maintain this positive momentum through the end of this year. We continue to closely monitor and evaluate the tariff and geopolitical environment, 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 narrowing our guidance for sales in the range of $535 million to $545 million and adjusted diluted EPS to be in the range of $2.20 to $2.25.

政府。如同報導所述，SyQwest 第三季的營收有所成長，預計這一積極動能將維持到今年年底。我們將繼續密切關注和評估關稅和地緣政治環境，同時注重靈活性，並與客戶和供應商密切合作，以適應成本和價格調整。假設目前市場狀況持續，我們將銷售額預期範圍縮小至 5.35 億美元至 5.45 億美元，調整後稀釋每股收益預期範圍縮小至 2.20 美元至 2.25 美元。

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

現在我將把發言權交給阿什什，他將更詳細地為我們講解財務表現。阿什什？

Thank you, Kieran. Sales in the third quarter were $143 million, up 6% sequentially and up 8% from last year. Sales to diversified end markets increased 22% year-over-year. SyQwest sales were $8.8 million during the quarter. As Kieran has highlighted, we expect the momentum to continue for sales from SyQwest in the fourth quarter.

謝謝你，基蘭。第三季銷售額為 1.43 億美元，季增 6%，年增 8%。面向多元化終端市場的銷售額較去年同期成長 22%。SyQwest本季銷售額為880萬美元。正如 Kieran 所強調的，我們預計 SyQwest 的銷售勢頭將在第四季度繼續保持。

Sales to transportation customers were down 7% from the third quarter of last year due to the softness in sales related to commercial vehicle products. Foreign currency changes had a favorable impact on sales of approximately $1 million. Our adjusted gross margin was 38.9% in the third quarter, up 66 basis points compared to the third quarter of 2024, and up 12 basis points compared to the second quarter of 2025. Our global teams continue to focus on operational execution to deliver margin improvements. Tariffs had a minimal impact on profitability in the third quarter and we continue to work closely with customers and suppliers to manage the impact.

由於商用車產品銷售疲軟，對運輸客戶的銷售額比去年第三季下降了 7%。外匯匯率變動對銷售額產生了約100萬美元的有利影響。第三季調整後的毛利率為 38.9%，比 2024 年第三季成長 66 個基點，比 2025 年第二季成長 12 個基點。我們的全球團隊將繼續專注於營運執行，以實現利潤率的提升。關稅對第三季的獲利能力影響甚微，我們將繼續與客戶和供應商密切合作，以應對其影響。

Adjusted EBITDA was 23.8% in the quarter. This is an improvement of 86 basis points sequentially and a reduction of 55 basis points compared to the third quarter of 2024. Earnings were $0.46 per diluted share for the third quarter. The third quarter results include a $4.2 million increase in reserves related to EPA's cost reimbursement claim for a prior environmental matter. Adjusted earnings were $0.60 per diluted share compared to $0.57 in the second quarter of 2025 and $0.61 in the third quarter of 2024.

本季調整後 EBITDA 為 23.8%。這比上一季改善了 86 個基點，比 2024 年第三季減少了 55 個基點。第三季稀釋後每股收益為 0.46 美元。第三季業績包括與美國環保署就先前環境事件提出的成本補償索賠相關的儲備金增加 420 萬美元。經調整後的每股攤薄收益為 0.60 美元，而 2025 年第二季為 0.57 美元，2024 年第三季為 0.61 美元。

We had an unfavorable impact on our tax rate from changes in the mix of earnings. And in addition, the recent US tax legislation changes had an adverse impact of approximately $0.03 on adjusted earnings per diluted share for the third quarter. Moving to cash generation and the balance sheet. We generated $29 million in operating cash flow in the third quarter compared to $35 million in the third quarter of 2024.

收入結構的變化對我們的稅率產生了不利影響。此外，近期美國稅法的變化對第三季調整後每股攤薄收益產生了約 0.03 美元的不利影響。接下來談談現金流和資產負債表。我們第三季產生的經營現金流為 2,900 萬美元，而 2024 年第三季則為 3,500 萬美元。

Year-to-date, we have generated $73 million in operating cash flow. Our balance sheet remains strong with a cash balance of $110 million at the end of the quarter. Our long-term debt balance was $91 million, leaving us good liquidity to support strategic acquisitions. During the quarter, we repurchased 400,000 shares of CTS stock for approximately $17 million. In total, we returned $44 million to shareholders through dividends and share buybacks in the three quarters of 2025.

今年迄今為止，我們已產生 7,300 萬美元的營運現金流。我們的資產負債表依然穩健，截至季末現金餘額為 1.1 億美元。我們的長期債務餘額為 9,100 萬美元，這為我們提供了良好的流動資金，以支持策略性收購。本季度，我們以約 1700 萬美元的價格回購了 40 萬股 CTS 股票。2025 年前三個季度，我們透過股利和股票回購向股東返還了 4,400 萬美元。

We have $21 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. This concludes our prepared comments. We would like to open the line for questions at this time.

我們目前的股票回購計畫還剩下 2,100 萬美元。我們依然專注於強勁的現金流創造和適當的資本配置，並將繼續支持內生成長、策略性收購和向股東返還現金。我們的發言到此結束。現在我們開通提問專線。

(Operator Instructions) John Franzreb, Sidoti Company.

（操作說明）約翰‧弗蘭茲雷布，西多蒂公司。

I'd like to start with the guidance. It seems to me that you raised the midpoint on your revenue guidance, but lowered the midpoint on the EPS guidance. Now I recognize that you've been suggesting it would be at the low end of that EPS. But I guess I'm surprised to the dynamic of raising the revenue in light of that. Can you just walk us through what's going on there?

我想先從指導方面談起。在我看來，你們提高了營收預期中位數，但降低了每股盈餘預期中位數。現在我明白了，你一直暗示它會處於每股收益的低端。但考慮到這種情況，我對提高收入的動態感到驚訝。能給我們簡單介紹一下那裡發生了什麼事嗎？

Yes, John. So from a top line perspective, we feel good about the direction we're going there. As I mentioned in the prepared comments that fourth quarter has some headwinds on CV. But overall, we've got good progress in industrial, nice momentum in aerospace and defense, strength in therapeutics and then some things we're monitoring on the diagnostic side. So that's it on the top line.

是的，約翰。所以從整體來看，我們對目前的發展方向感到滿意。正如我在準備好的評論中提到的，第四季度新冠病毒感染面臨一些不利因素。但總的來說，我們在工業領域取得了良好的進展，在航空航天和國防領域發展勢頭良好，在治療領域實力雄厚，然後在診斷方面我們也在密切關註一些進展。以上就是第一部分的內容。

And then on the bottom line, primarily, as Ashish mentioned in his prepared comments, there's the tax impact. And Ashish, you probably want to comment on that.

最後，正如 Ashish 在他準備好的評論中提到的那樣，最根本的問題是稅收影響。阿什什，你可能想就此發表一下看法。

Yes. So John, there are a couple of things that are having an adverse impact on our tax rate. Number one, the mix of earnings, and then the second piece, which is more pronounced is the tax legislation, given the mix of earnings we have it actually has an adverse impact on our overall tax rate. So you saw that impacting our Q3 earnings in a meaningful way. And then that impact is expected to continue, obviously, smaller into Q4 as well.

是的。約翰，有幾件事正在對我們的稅率產生不利影響。第一點是收入組成，第二點，也是更突出的一點是稅收立法，鑑於我們現有的收入組成，它實際上對我們的整體稅率產生了不利影響。所以，你們也看到了，這對我們的第三季收益產生了顯著影響。顯然，這種影響預計會持續到第四季度，但程度會有所減輕。

Okay. Understood. And Kieran, you just mentioned the CV market. So that begs the question, what are your transportation customers signaling about the 2026 production rates?

好的。明白了。Kieran，你剛才提到了履歷市場。那麼問題來了，您的運輸客戶對 2026 年的生產力有何預期？

John, for 2026, it's kind of a bit of a mixed market out there. You hear some OEMs, especially on the light vehicle side, talking more positive, some talking a little bit negative. So it's a very mixed story. What I would tell you is on the light vehicle side in this quarter, excluding Cummins or large customer CV, we saw an incremental -- small incremental increase in low single digits. And we had solid bookings in the quarter.

約翰，就2026年而言，市場情勢有點複雜。你聽到一些汽車製造商，特別是輕型汽車製造商，說得比較積極，而有些則說得比較消極。所以情況非常複雜。我想告訴大家的是，本季輕型車輛方面，不包括康明斯或大型客戶的商用車，我們看到了小幅增長，增幅在個位數低位。本季我們的預訂情況良好。

So we feel really good about the bookings and where we're going. So the market is going to be a bit mixed still next year from everything we hear on transportation, but feel very good about what we're doing in medical, aerospace and defense and industrial.

所以我們對預訂情況和未來的發展方向都感到非常滿意。所以，從我們聽到的交通運輸方面的情況來看，明年的市場格局仍將喜憂參半，但我們對我們在醫療、航空航太、國防和工業領域的工作感到非常樂觀。

Agreed. Can I just maybe touch on the end markets as a whole because the gross margin improvement was nice to see. And I'm actually kind of curious and maybe you could help me frame this better. But if you kind of rank your end markets on the gross margin contribution or should we be thinking about it on the operating margin contribution? How do you -- I know you're not going to give the actual margin profile, but how would you rank them -- so as we can see the changes on a go-forward basis, we can think about the impact of profitability.

同意。我可以稍微談談整個終端市場嗎？因為看到毛利率提高，我感到很欣慰。我其實挺好奇的，也許你能幫我更能表達我的想法。但是，如果按照毛利率貢獻來對終端市場進行排名，或者我們應該考慮按照營業利潤貢獻來排名呢？我知道你不會給出實際的利潤率情況，但你會如何對它們進行排名——這樣我們就能看到未來變化的趨勢，並思考其對盈利能力的影響。

So John, we earned good margins on our diversified end markets pretty obviously. I don't know if I would split the margins by end markets in terms of profile. They are pretty decent on the diversified side. Medical, industrial, aerospace and defense, we are doing reasonably good margins on all of those. Transportation is obviously behind in terms of comparison, but we earn good margins on the transportation side as well.

所以約翰，很明顯，我們在多元化的終端市場中獲得了良好的利潤。我不知道是否應該以終端市場和產品定位來劃分利潤率。他們在多元化方面做得相當不錯。醫療、工業、航太和國防等領域，我們的利潤率都相當不錯。運輸業務顯然落後於其他業務，但我們在運輸方面也獲得了良好的利潤。

And John, the other thing I would comment on is you can see that -- you talked about the improvement in gross margin. Our diversification percentage is going up quarter-on-quarter as well. So I think that's what you're going to see as positive momentum there.

約翰，我還想補充一點，你可以看到——你談到了毛利率的提高。我們的多元化投資比例也逐季上升。所以我認為這就是你會看到的正面動力。

Yes. I was just -- I mean, I guess I'm kind of curious as how much, I don't know, medical has more of an impact versus say aerospace and defense, I would guess that industrial will be third in that ranking, but that will be me discussing.

是的。我只是——我的意思是，我有點好奇，醫療行業的影響究竟有多大，比如說，與航空航天和國防行業相比，我猜工業行業會排在第三位，但這只是我個人的看法。

So John, it's a little bit more, I would say, split by product line. The margin profile on different product lines has a different level in pretty much all the end markets. So for example, when you look at our Piezo product lines, we have single crystal in there, tape cast and bulk. And the margin profile varies. So single crystal would be slightly higher margins than the other two.

所以約翰，我認為，它更像是按產品線劃分的。不同產品線的利潤率幾乎在所有終端市場都存在差異。例如，當您查看我們的壓電產品線時，我們會發現其中包含單晶、流延成型和散裝產品。而且利潤率情況各不相同。因此，單晶的利潤率會比其他兩種略高一些。

In frequency, we'll have a different level of margin, which is higher. And then -- so that -- it's not so much where we are seeing distribution by end market as we are seeing distribution by product lines.

在頻率方面，我們將擁有更高的利潤率。因此，我們看到的不是按終端市場劃分的分銷情況，而是按產品線劃分的分銷情況。

I appreciate that clarity, and I'll get back in the queue and let somebody else ask question.

感謝您的解釋，我會重新排隊，讓其他人提問。

Hendi Susanto, Gabelli Funds.

Hendi Susanto，Gabelli基金。

First question is for Ashish is the tax impact, the adverse tax impact. Will it go away in 2026?

對 Ashish 來說，第一個問題是稅務影響，即不利的稅務影響。它會在2026年消失嗎？

So Hendi, we'll obviously be looking at areas that we can drive improvements. The specific change from the tax legislation that will continue to have a slight adverse impact, but we'll continue looking at other areas of opportunity in terms of tax efficiency as we have always done. So I would expect at this point, in 2026 to be similar tax rate as 2025, but we'll continue working on it.

所以亨迪，我們顯然會專注在我們可以改進的領域。稅收立法的具體變化仍將產生輕微的不利影響，但我們將一如既往地繼續尋找其他提高稅收效率的機會領域。因此，我預計 2026 年的稅率將與 2025 年的稅率類似，但我們將繼續努力。

I see. And Ashish would you be able to spell out what tax rate estimate we should use for our the model?

我懂了。阿什什，你能具體說明一下我們應該在模型中使用哪個稅率估算值嗎？

Yes. So we are in the low 20% range right now, Hendi, we are talking about 21% to 23% type of ballpark on a go-forward basis.

是的。所以，亨迪，我們現在處於 20% 左右的水平，未來我們預計會達到 21% 到 23% 左右。

Yes. And then this question is for Kieran. Kieran, this morning, NXP Semiconductor reported it's September quarter. I know that it's an apple and orange comparison. They do say that Tier 1 inventory burn is getting closer and closer to be completed.

是的。那麼這個問題是問基蘭的。Kieran，今天早上，NXP半導體公佈了其9月份的季度業績。我知道這是蘋果和橘子之間的比較。他們表示，一級庫存銷毀工作即將完成。

How should we view the expectation that inventories in your channel for transportation is close -- is somewhat close to representing the end market demand. And then at some point, they will need to build more inventories internally. How should we view that notion?

我們應該如何看待您運輸管道的庫存接近——在某種程度上接近最終市場需求——這一預期？然後，在某個時候，他們需要在內部建立更多庫存。我們該如何看待這種觀點？

Yes, I didn't see the NXP data. But what I would look at, Hendi, is if you look at the days of supply on hand, it's probably trending on the light vehicle side around 50 days, which seems pretty normal. I wouldn't be concerned about it at all. There is obviously some further softness in the commercial Viva market, and that's one we're watching more closely, but not on the light vehicle side.

是的，我沒有看到恩智浦的數據。但亨迪，我想關注的是，如果你看一下庫存天數，輕型車輛方面的庫存天數可能在 50 天左右，這似乎相當正常。我一點也不擔心。商用 Viva 市場顯然還有一些疲軟跡象，我們正在密切關注這一市場，但輕型車輛方面則不然。

I see. And then looking at SyQwest acquisitions and then your expectation, given we have insight into the quarterly revenue run rate for the last five quarters? Would you be able to give some puts and takes and whether or not the company's revenue contribution meets or exceeds your target for this year?

我懂了。然後，考慮到我們對 SyQwest 過去五個季度季度營收運行率的了解，您對 SyQwest 的收購有何預期？您能否給予一些買賣建議，並說明該公司今年的營收貢獻是否達到或超過您的目標？

Yes. So Hendi, if I look at it quarter-by-quarter, we've always said the first half is going to have some seasonality, whether it's heavier in the second half, and that's what we're seeing now. So we've seen a step-up in revenues from Q2 to Q3, and we expect that step-up to continue. We will see some seasonality next year as well, first half, second half due to government funding. And we're very pleased with the pipeline of opportunities.

是的。所以亨迪，如果我按季度來看，我們一直都說上半年會有一些季節性因素，下半年可能會更嚴重，而我們現在看到的正是這種情況。因此，我們看到營收從第二季到第三季有所成長，我們預計這種成長動能還會持續下去。明年由於政府資助的原因，我們也會看到一些季節性波動，上半年和下半年會有波動。我們對目前的發展機會非常滿意。

And we called out an award today in the comments, sole-sourced for a new platform with the first $5 million. And we expect other awards in the next 12 months and over the next several years as well. So we feel really good about that, and we want to build on that momentum.

今天我們在評論中提到了一個獎項，該獎項是為一個擁有首筆 500 萬美元的新平台而設立的。我們預計在未來 12 個月以及未來幾年內還將獲得其他獎項。所以我們對此感到非常滿意，並且希望能夠保持這種勢頭。

Got it. And then one last question for Ashish. The operating expense line -- the SG&A is somewhat meaningfully larger this quarter. I know that you mentioned that's $4.2 million increase in reserve. Is that the main reason of the increase in OpEx?

知道了。最後還有一個問題要問阿什許。營運費用項－本季銷售、一般及行政費用（SG&A）明顯偏高。我知道您提到儲備金增加了 420 萬美元。這是營運成本增加的主要原因嗎？

Yes. So Hendi, that is by far the largest. We also have a year-over-year increase in equity-based compensation as going through the year. Sometimes you have to make adjustments based on expected performance and last year's number had a relatively larger reduction. So that is also causing the year-over-year comparison to look a little bit unfavorable in Q3 of 2025.

是的。所以亨迪，那是迄今為止最大的。今年以來，我們的股權激勵也實現了年成長。有時候，你必須根據預期業績做出調整，而去年的數位降幅相對較大。因此，這也導致 2025 年第三季年比數據看起來不太理想。

John Franzreb.

約翰·弗蘭茲雷布。

Yes. Kieran kind of curious about your comments on the industrial end markets. It seems like to me, it seems like you're more positive than you've been in quite some time. Is that the case, or am I just reading too much into it?

是的。Kieran 對你對工業終端市場的評論很感興趣。我覺得你最近一段時間以來都沒有這麼樂觀積極過了。真是這樣嗎？還是我想太多了？

No, John. I think when we look at all the diversified end markets, we feel pretty good. And if I start with industrial, which you mentioned, we've seen a 9% sequential improvement over 20% year-on-year. We've seen a strong increase in distribution-related sales. So we feel very good about the trend there.

不，約翰。我認為，當我們審視所有多元化的終端市場時，我們感覺相當不錯。如果從你提到的工業領域開始，我們看到環比成長了 9%，比去年同期成長了 20%。我們看到與分銷相關的銷售額大幅成長。所以我們對這方面的趨勢感到非常樂觀。

And then I also mentioned on Medical, we expect bookings to increase in the fourth quarter and the very same on aerospace and defense. So across the diversified markets with industrial right up there feel very good.

然後我還提到，在醫療領域，我們預計第四季的預訂量將會增加，航空航太和國防領域的情況也是如此。因此，在多元化市場中，尤其是工業市場，感覺非常好。

And just on the medical, you think bookings will increase, do you think the diagnostics side of the business will be coming back, or do you think that will remain weak on a go-forward basis?

就醫療方面而言，您認為預約量會增加嗎？您認為診斷業務會復甦嗎？還是您認為它在未來仍將保持疲軟？

The diagnostics side is a little weaker, but it's still solid overall, and we expect it will improve probably more so next year. But we've got strong momentum on therapeutics, and we feel that's going to continue not just in the fourth quarter, but into next year as well, John.

診斷方面稍顯薄弱，但總體而言仍然很穩健，我們預計明年可能會有更大的改善。但我們在治療領域勢頭強勁，我們認為這種勢頭不僅會在第四季度持續，而且會延續到明年，約翰。

Got it. And can you kind of walk me through how you're successfully navigating tariffs. So a lot of companies I cover anticipate a delay in being able to recover pricing from the customer base. But you seem to be doing extremely well. Talk about what's going on there.

知道了。您能否簡單介紹一下您是如何成功應對關稅問題的？因此，我報道的許多公司都預計，從客戶群中收回價格成本將會延遲。但你看起來做得非常出色。說說那裡發生了什麼事。

So John, we've talked about this in the past where a lot of what we do in Asia stays in Asia. What we do in Europe stays in Europe. And what we do in North America, stays in North America. It's not 100% that way, but largely, it is that way. And that helps us mitigate cross-border flows, which is where you see the impact of tariffs.

約翰，我們以前也討論過這個問題，我們在亞洲做的很多事情都留在亞洲。我們在歐洲做的事情就留在歐洲。我們在北美所做的事情，就留在北美。雖然並非百分之百如此，但總體上就是這樣。這有助於我們緩解跨境流動，而這正是關稅產生影響的地方。

That's a big portion of it. The other is where we do have tariff impact. We are working very closely with suppliers, with our customers to find ways to mitigate, but then also pass the cost on to our customers as we work through the impact. And so far, we've been able to manage well. We have talked about USMCA that's where our exposure would increase if USMCA were to go away, and it doesn't get replaced with something suitable.

那佔了很大一部分。另一種情況是，我們會受到關稅的影響。我們正與供應商和客戶密切合作，尋找減輕影響的方法，但同時也會將成本轉嫁給客戶，以應對影響。到目前為止，我們應對得還不錯。我們已經討論過美墨加協定，如果美墨加協定失效，又沒有合適的替代方案，我們的風險敞口將會增加。

But other than that, we've been able to manage pretty well.

但除此之外，我們處理得還不錯。

Very good. I guess one last question. The fire at the Ford aluminum supplier, does that have any impact on your company at all?

非常好。我想問最後一個問題。福特鋁材供應商發生的火災，對貴公司有任何影響嗎？

John, Novelis, that's the aluminum supplier and then there's (inaudible) on the chips. We haven't seen any direct impact, but it's something we're monitoring as we go through the fourth quarter. So nothing to report at this point.

約翰，諾維利斯，那是鋁供應商，然後還有（聽不清楚）晶片供應商。我們尚未看到任何直接影響，但我們將在整個第四季度密切關注此事。目前沒有什麼好報告的。

Okay. Keep up the good work.

好的。繼續保持。

All right. Thank you.

好的。謝謝。

(Operator Instructions) We currently have no further questions. So I'll hand back to Kieran for any closing remarks.

（操作說明）我們目前沒有其他問題。那麼，我將把發言權交還給基蘭，讓他做最後的總結發言。

Thank you, Claire, and thank you all for your time today. despite the challenges of tariffs, geopolitical and economic pressures, diversification remains a strategic priority to drive growth and margin expansion. In addition, we are expanding in vehicle powertrain agnostic solutions. We look forward to updating you on our full year 2025 performance in February of 2026. Thank you again.

謝謝克萊爾，也謝謝各位今天抽出時間。儘管面臨關稅、地緣政治和經濟壓力等挑戰，多元化仍是推動成長和利潤率提升的策略重點。此外，我們正在拓展與車輛動力系統無關的解決方案。我們期待在 2026 年 2 月向您報告我們 2025 年全年的業績。再次感謝。

This concludes our call.

通話到此結束。

This concludes today's call. Thank you for joining. You may now all disconnect your lines.

今天的電話會議到此結束。感謝您的參與。現在你們都可以斷開線路了。