Donaldson Company Inc (DCI) 2024 Q3 法說會逐字稿

Thank you for standing by and welcome to the Donaldson Company third-quarter 2024 earnings conference call. (Operator instructions)

感謝您的耐心等待並歡迎參加唐納森公司 2024 年第三季財報電話會議。 （操作員說明）

Thank you. I'd now like to turn the call over to Sarika Dhadwal, Senior Director of Investor Relations and ESG. You may begin.

謝謝。我現在想將電話轉給投資者關係和 ESG 高級總監 Sarika Dhadwal。你可以開始了。

Good morning. Thank you for joining Donaldson's third-quarter fiscal 2024 earnings conference call. With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial officer. This morning, Tod and Scott will provide a summary of our third-quarter performance and details on our outlook for fiscal 2024.

早安.感謝您參加唐納森 2024 財年第三季財報電話會議。今天與我在一起的有董事長、執行長兼總裁 Tod Carpenter；和首席財務官斯科特羅賓遜。今天早上，托德和斯科特將提供我們第三季業績的總結以及我們對 2024 財年展望的詳細資訊。

During today's call, we will discuss non-GAAP or adjusted results. Well, there were no non-GAAP adjustments in the third quarter of either fiscal 2024 or 2023, for the full year fiscal 2023, non-GAAP results exclude pretax restructuring and other charges of $21.8 million. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release. Additionally, please keep in mind that any forward-looking statements made during this call are subject to risks and uncertainties which are described in our press release and SEC filings.

在今天的電話會議中，我們將討論非公認會計原則或調整後的結果。嗯，無論是 2024 財年還是 2023 財年第三季都沒有進行非 GAAP 調整，對於 2023 財年全年，非 GAAP 業績不包括稅前重組和其他費用 2,180 萬美元。今天早上新聞稿所附的時間表中提供了 GAAP 與非 GAAP 指標的調整表。此外，請記住，本次電話會議期間所做的任何前瞻性陳述都受到我們的新聞稿和 SEC 文件中描述的風險和不確定性的影響。

With that, I'll now turn the call over to Tod Carpenter. Please go ahead.

現在，我將把電話轉給托德·卡彭特。請繼續。

Thanks, Sarika. Good morning.

謝謝，薩里卡。早安.

Donaldson Company's third-quarter results were excellent. Sales increased 6% to a record $928 million. EPS increased 22% to a record $0.92 and operating margin was at more than a decade long high. All three operating segments demonstrated growth and profitability.

唐納森公司第三季業績表現優異。銷售額成長 6%，達到創紀錄的 9.28 億美元。每股盈餘成長 22%，達到創紀錄的 0.92 美元，營業利潤率達到十多年來的最高水準。所有三個營運部門均表現出成長和獲利能力。

In mobile solutions, volume growth exceeded pricing gains, driven by strength in our aftermarket business. We continued to benefit from market share gains as well as a return to more normalized demand level after destocking in the prior year period. Profitability in mobile solutions continues to be exceptional. Pretax profit margin hit an all-time high of 18.4%. This 340-basis point improvement over prior year was a result of favorable mix, volume growth, and pricing.

在行動解決方案中，在我們售後市場業務實力的推動下，銷量成長超過了價格成長。我們繼續受益於市場份額的成長以及去年期間去庫存後恢復到更正常化的需求水準。行動解決方案的盈利能力仍然非常出色。稅前利潤率創歷史新高18.4%。較上年提高 340 個基點是有利的組合、銷售成長和定價的結果。

In industrial solutions, sales strength and high levels of profitability continued, driven by project wins and market share gains in dust collection and power generation. Aerospace and defense also had a strong quarter, and backlogs remain robust. We maintain focus on advancing our create, connect, replace, and service model.

在工業解決方案方面，在除塵和發電領域的項目贏得和市場份額增長的推動下，銷售強勁和高水平的盈利能力持續存在。航空航太和國防領域也有強勁的季度表現，積壓訂單仍然強勁。我們始終專注於推進我們的創建、連接、替換和服務模式。

This quarter, we acquired [EZFlow], filtration, industrial services business in LaGrange, Georgia. EZFlow brings to Donaldson additional service capabilities in both hydraulic and power generation filtration and a new geographic presence in the southeast United States.

本季度，我們收購了位於喬治亞州拉格蘭奇的過濾工業服務業務 [EZFlow]。 EZFlow 為唐納森帶來了液壓和發電過濾的額外服務能力，以及在美國東南部的新業務。

In life sciences, we achieved sales growth above 20% and profitability through strength in our bio processing and disk drive businesses. We also continued to build for the future. In April, we entered into an agreement to acquire a 49% stake in Medica S.p.A., a leader in hollow fiber membrane technology based in Medolla, Italy. This transaction is expected to be completed through a public tender offer and includes a call option to acquire the remaining 51% stake of the company in the years to come.

在生命科學領域，我們憑藉著生物加工和磁碟機業務的優勢，實現了 20% 以上的銷售額成長和獲利能力。我們也繼續為未來而建設。 4 月，我們達成協議，收購 Medica S.p.A. 49% 的股份，Medica S.p.A. 是位於義大利 Medolla 的中空纖維膜技術領導者。該交易預計將透過公開要約收購完成，並包括在未來幾年收購該公司剩餘 51% 股權的看漲選擇權。

Donaldson and Medica have a previously established relationship through an exclusive joint development agreement, allowing for the development and commercialization of hollow fiber modules in life sciences applications, including bioprocessing in food and beverage. These modules can be used with Solaris, Univercells Technologies, and Isolere products, demonstrating our vision and progress toward providing customers with a complete and differentiated product portfolio.

唐納森和 Medica 之前透過獨家聯合開發協議建立了合作關係，允許在生命科學應用（包括食品和飲料中的生物加工）中開發和商業化中空纖維模組。這些模組可與 Solaris、Univercells Technologies 和 Isolere 產品一起使用，展示了我們為客戶提供完整且差異化的產品組合的願景和進展。

From an operational standpoint, backlogs across all three segments remained strong, indicating the overall health of our businesses for the foreseeable future. With supply chain conditions mostly supportive, Donaldson's customer focus remains steadfast as we continually work to improve on-time delivery rates. This quarter, R&D, capital expenditures, and M&A activity continued as we invested to meet the future needs of our customers. R&D included product development initiatives in our legacy and newly acquired businesses, and we expect to grow our investment levels double digits for the full year. Capital expenditures were primarily focused on increasing capacity and expanding new products and technology, including in our life sciences segment. In keeping with our M&A strategic focus areas, we also deployed capital on the previously mentioned industrial services acquisition, EZFlow.

從營運角度來看，所有三個部門的積壓訂單仍然強勁，這表明我們業務在可預見的未來的整體健康狀況。由於供應鏈條件基本上有利，唐納森始終以客戶為中心，並不斷努力提高準時交貨率。本季度，我們持續進行研發、資本支出和併購活動，以滿足客戶的未來需求。研發包括我們傳統業務和新收購業務的產品開發計劃，我們預計全年投資水準將達到兩位數成長。資本支出主要集中在提高產能和擴展新產品和技術，包括我們的生命科學領域。為了與我們的併購策略重點領域保持一致，我們也在先前提到的工業服務收購 EZFlow 上部署了資金。

Now I will provide some detail on third quarter sales. Total company sales were $928 million, up 6% compared with prior year. Pricing contributed approximately 2%. In mobile solutions, total sales were $585 million, a 6% increase versus 2023. Mobile aftermarket sales grew 11% year over year to $445 million. Independent channel sales grew mid-single digits from market share gains and OE channel sales were up mid-teens as demand returned to more normalized levels following destocking in the prior year period.

現在我將提供有關第三季銷售的一些詳細資訊。該公司總銷售額為 9.28 億美元，比上年增長 6%。定價貢獻了約2%。在行動解決方案方面，總銷售額為 5.85 億美元，比 2023 年增長 6%。獨立通路銷售額因市佔率成長而實現中個位數成長，原廠通路銷售額成長中位數，原因是去年期間去庫存後需求恢復到更正常的水平。

Partially offsetting the strong aftermarket performance were declines in the first-fit businesses, sales in on-road were $36 million, down 6% due to lower levels of equipment production, particularly in APAC. Off-road sales of $104 million, declined 10% as agriculture markets remain soft and business in China continues to be weak.

首次組裝業務的下滑部分抵消了售後市場的強勁表現，由於設備生產水平較低（尤其是亞太地區），公路銷售額為 3,600 萬美元，下降 6%。由於農業市場依然疲軟且中國業務持續疲軟，越野銷售額為 1.04 億美元，下降 10%。

To that end, I will touch on our mobile solutions business in China in aggregate where sales decreased 32% over prior year. Both first-fit and aftermarket sales decline impacted by weak overall demand and the timing of Chinese New Year, which fell into the third quarter this year versus the second quarter a year ago, resulting in fewer ship days this year. Despite the challenging nature of the China market today, we remain optimistic with respect to the long-term market growth opportunities and our ability to gain share there over time.

為此，我將談談我們在中國的行動解決方案業務，該業務的銷售額比上年下降了 32%。受整體需求疲軟和農曆新年時間的影響，首裝和售後銷售均出現下降，今年第三季與去年第二季相比，導致今年的裝船天數減少。儘管當今中國市場充滿挑戰，但我們對長期市場成長機會以及我們隨著時間的推移贏得市場份額的能力仍持樂觀態度。

Now move on to the industrial solutions segment. Industrial sales increased 3% to $269 million. Industrial filtration solutions or IFS sales grew 2% to $229 million due to strong dust collection replacement parts sales and power generation content timing. Aerospace and defense sales rose 6% to $41 million, driven by robust aerospace end-market conditions.

現在轉向工業解決方案領域。工業銷售額成長 3%，達到 2.69 億美元。由於強勁的除塵更換零件銷售和發電內容時機，工業過濾解決方案或 IFS 銷售額成長了 2%，達到 2.29 億美元。受強勁的航空航太終端市場狀況的推動，航空航太和國防銷售額成長 6%，達到 4,100 萬美元。

In the life sciences segment, sales were $74 million, up 24% year over year as a result of bioprocessing equipment and disk drive strength. Acquisitions added approximately $10 million or 15 percentage points of sales growth due in large part to the timing of project shipments.

在生命科學領域，由於生物處理設備和磁碟機的實力，銷售額為 7,400 萬美元，較去年同期成長 24%。收購增加了約 1000 萬美元，即銷售額增長 15 個百分點，這在很大程度上歸功於項目發貨的時間表。

In summary, I am proud of what the Donaldson team accomplished this quarter, driven by the strong results and our outlook for the fourth quarter we are increasing our full year earnings guidance, which Scott will detail. Fiscal 2024 is forecasted to be a year of record sales, record operating margins, and record earnings.

總而言之，我對唐納森團隊本季的成就感到自豪，在強勁業績和我們對第四季度前景的推動下，我們正在提高全年盈利指引，斯科特將詳細介紹這一點。預計 2024 財年將是銷售額、營業利潤率和獲利創紀錄的一年。

Now, I'll turn it over to Scott, who will provide more details on the financial.

現在，我將把它交給斯科特，他將提供更多有關財務的細節。

Scott?

史考特？

Thanks, Tod. Good morning, everyone.

謝謝，托德。大家，早安。

I want to thank our entire Donaldson team for their fantastic work this quarter. Without them, we would not have been able to deliver such a strong performance, and I am confident in our collective ability to drive continued success in the future.

我要感謝整個唐納森團隊本季的出色工作。沒有他們，我們不可能有如此強勁的業績，我對我們在未來推動持續成功的集體能力充滿信心。

Before discussing our outlook for fiscal 2024, I will give additional details on the results for the third quarter. Sales increased 6% versus 2023, operating income increased 16%, and EPS of $0.92 was up 22% year over year. Gross margin of 35.6%, expanded 260 basis points above prior year from leverage on higher sales, pricing, and select input cost deflation.

在討論我們對 2024 財年的展望之前，我將提供有關第三季業績的更多詳細資訊。銷售額較 2023 年成長 6%，營業收入成長 16%，每股收益 0.92 美元，較去年同期成長 22%。毛利率為 35.6%，較上年同期成長 260 個基點，得益於較高的銷售、定價和選擇投入成本通貨緊縮。

Operating expenses as a percent of sales were 20.1% versus 18.8% a year ago. Expense deleveraging was largely due to higher people-related costs, partially as a result of increased headcount. Acquisition-related expenses also contributed. Operating margin was 15.5%, 130 basis points above 2023, driven by gross margin expansion, partially offset by operating expense deleverage. As I always say, we are committed to higher levels of profitability on higher levels of sales, and we clearly delivered that this quarter.

營運費用佔銷售額的百分比為 20.1%，而一年前為 18.8%。費用去槓桿化主要是因為人員相關成本上升，部分原因是員工人數增加。收購相關費用也有貢獻。受毛利率擴張的推動，營業利潤率為 15.5%，比 2023 年高出 130 個基點，但部分被營業費用去槓桿化所抵銷。正如我常說的，我們致力於在更高的銷售水平上實現更高的盈利水平，我們在本季度明確實現了這一目標。

Now I'll discuss segment profitability. As Todd mentioned, mobile solutions, pretax profit margin was a record of 18.4%, 340 basis points above prior year, resulting from favorable mix, volume growth, and pricing benefits.

現在我將討論細分市場的獲利能力。正如托德所提到的，行動解決方案的稅前利潤率達到創紀錄的 18.4%，比去年同期高出 340 個基點，這得益於有利的組合、銷售成長和定價優勢。

industrial solutions pretax profit margin was 18.7%, approximately flat versus prior year. We are pleased with the high levels of profitability the industrial business has been delivering and look forward to growing this business which will increase blended margins for the company.

工業解決方案稅前利潤率為 18.7%，與去年基本持平。我們對工業業務所提供的高水準獲利能力感到滿意，並期待該業務的發展，這將提高公司的綜合利潤率。

Our life sciences business generated a pretax profit margin of approximately 1%, including a headwind from acquisitions of 16 percentage points. We are encouraged by our improved performance in the quarter. However, we are tracking below previous expectations and now expect full year profit margins to be down low single digits.

我們的生命科學業務產生了約 1% 的稅前利潤率，其中包括 16 個百分點的收購阻力。我們對本季業績的改善感到鼓舞。然而，我們的追蹤結果低於先前的預期，現在預計全年利潤率將下降至低個位數。

The nature of our acquisition related revenue brings with it some timing uncertainty. This layer on top of ongoing investments to support scaling has delayed our full year projected profitability inflection point. That said, our confidence in the longer-term sales growth and profitability potential of our life science business has not wavered.

我們收購相關收入的性質帶來了一些時間上的不確定性。除了支持擴展的持續投資之外，這一層推遲了我們全年預計的獲利拐點。儘管如此，我們對生命科學業務的長期銷售成長和獲利潛力的信心並未動搖。

Given the year-to-date trend we have been seeing in all three segments with two of three tracking ahead of expectations, we are evaluating our longer-term financial targets, and we'll provide an update with our fiscal 2025 guidance during the fourth quarter call.

鑑於我們在所有三個細分市場中看到的今年迄今為止的趨勢，其中三個跟踪中的兩個超出了預期，我們正在評估我們的長期財務目標，我們將在第四季度提供2025 財年指引的最新資訊季度電話。

Turning to a few balance sheet and cash flow statement highlights. Third quarter capital expenditures were approximately $21 million and cash conversion in the quarter was 106% on par with prior year, driven by our continued focus on working capital efficiency.

轉向一些資產負債表和現金流量表的亮點。在我們持續關注營運資本效率的推動下，第三季資本支出約為 2,100 萬美元，本季現金轉換率為 106%，與去年同期持平。

In terms of other capital deployment, we returned approximately $57 million to shareholders, inclusive of $30 million in the form of dividends and $27 million in share repurchases. We also invested $2 million on the EZFlow acquisition. We ended the quarter with a net debt to EBITDA ratio of 0.5 times.

在其他資本配置方面，我們向股東返還了約5,700萬美元，其中包括3,000萬美元的股利和2,700萬美元的股票回購。我們也投資了 200 萬美元收購 EZFlow。本季結束時，我們的淨負債與 EBITDA 的比率為 0.5 倍。

Now moving to our fiscal '24 outlook. First on sales, we are narrowing our full year total sales guidance to an increase of between 4% and 6%, consistent with our prior forecast. This includes a pricing benefit of approximately 2% and a minimal impact from currency translation.

現在轉向我們的 24 財年展望。首先在銷售方面，我們將全年總銷售預期增幅縮小至 4% 至 6% 之間，與我們先前的預測一致。這包括約 2% 的定價優勢以及貨幣換算的最小影響。

For mobile solutions, we are forecasting an increase of between 2% and 4%, unchanged from our previous expectation. Off-road sales remain projected to be down low-double digits as global agriculture markets in China remain weak. On-road markets have continued to soften, driving a reduction in our forecast to negative low-single digits versus flat previously.

對於行動解決方案，我們預計增幅將在 2% 至 4% 之間，與先前的預期持平。由於中國的全球農業市場依然疲軟，越野銷量預計仍將下降兩位數。公路市場持續疲軟，導致我們的預測從先前持平的情況下調至負低個位數。

Our outlook for aftermarket continues to be mid-single digit growth as a result of market share gains and the lapping of destocking in the prior year period. Industrial solutions sales are expected to increase between 6% and 8% with a midpoint of 7%, up from our previous guidance range, which carried a midpoint of 5%. IFS sales, driven by strength in dust collection and power generation, are forecast to grow mid-single digits in line with our prior expectations. Our outlook for aerospace and defense has improved, and we now expect sales to grow low-double digits, up from mid-single digits previously, as robust end market conditions continue.

由於市場佔有率的成長和去年同期去庫存的結束，我們對售後市場的前景持續保持中個位數成長。工業解決方案銷售額預計將成長 6% 至 8%，中間值為 7%，高於我們先前的指導範圍（中間值為 5%）。在除塵和發電業務的強勁推動下，IFS 銷售額預計將實現中個位數成長，符合我們先前的預期。我們對航空航太和國防的前景有所改善，隨著終端市場狀況持續強勁，我們現在預計銷售額將從先前的中位數增長到低兩位數。

For life sciences, we are reducing our sales guidance for the full year to a mid-teens increase compared with the approximate 20% growth previously forecast. We are pleased with and encouraged by the interest in our bioprocessing technologies and product portfolio; however, capital remains constricted in many biopharmaceutical markets, particularly for our research and early-stage assets. While we navigate the current challenging macro conditions, we remain focused on building out our technology and capabilities and laying the groundwork for future success. In the near term, we expect ongoing momentum in businesses such as disk drive, food and beverage, and vehicle electrification.

對於生命科學領域，我們將全年銷售指引下調至 15% 左右的增幅，而先前預測的增幅約為 20%。我們對我們的生物加工技術和產品組合的興趣感到高興和鼓舞；然而，許多生物製藥市場的資本仍然受到限制，特別是我們的研究和早期資產。在我們應對當前充滿挑戰的宏觀環境的同時，我們仍然專注於建立我們的技術和能力，為未來的成功奠定基礎。短期內，我們預期磁碟機、食品和飲料以及汽車電氣化等業務將持續保持成長動能。

With respect to consolidated operating margin, we are reaffirming our previous guidance of 15.0% to 15.4% which is an all-time record, compared with an adjusted operating margin of 14.6% a year ago. At the midpoint, this approximately 60 basis point year-over-year improvement, is driven by gross margin expansion, partially offset by expense deleveraging as we maintain our commitment to investing for future profitable growth.

關於綜合營業利潤率，我們重申先前 15.0% 至 15.4% 的指導，這是歷史記錄，而一年前調整後的營業利潤率為 14.6%。從中間值來看，這一約 60 個基點的同比改善是由毛利率擴張推動的，但部分被費用去槓桿化所抵消，因為我們仍然致力於投資於未來的盈利增長。

We are adjusting our outlook for interest, other income, and tax. Interest is expected to be approximately $22 million, down slightly from $23 million previously. Other income is projected between $15 million and $17 million, up from prior guidance of $10 million to $12 million due to better-than-expected joint venture income and FX benefit.

我們正在調整利息、其他收入和稅收的前景。利息預計約 2,200 萬美元，略低於先前的 2,300 萬美元。由於合資企業收入和外匯收益優於預期，其他收入預計在 1,500 萬美元至 1,700 萬美元之間，高於先前指導的 1,000 萬美元至 1,200 萬美元。

Our tax rate is forecast between 23% and 24%, down 100 basis points from prior guidance. For EPS, we are increasing our outlook to between $3.33 and $3.39, a $0.32 or 11% increase at the midpoint from adjusted EPS of $3.04 in fiscal 2023. With three quarters of year behind us, we are pleased with our performance and better positioned than ever to deliver to our stakeholders in fiscal 2024 and beyond.

我們的稅率預計在 23% 至 24% 之間，比先前的指導值下降 100 個基點。對於每股收益，我們將預期上調至3.33 至3.39 美元，較2023 財年調整後每股收益3.04 美元增加0.32 美元，即11%。並且處於比2023 財年更好的位置。

Now onto our balance sheet and cash flow outlook. Cash conversion is forecast above historical averages at 95% to 105% for the full year. Capital expenditures weighted towards growth investments, including capacity and new products and technologies, are projected between $90 million to $105 million down slightly from the previous $95 million to $110 million range.

現在我們來看看我們的資產負債表和現金流前景。預計全年現金轉換率將高於歷史平均 95% 至 105%。偏向成長投資（包括產能以及新產品和技術）的資本支出預計在 9,000 萬至 1.05 億美元之間，較之前的 9,500 萬至 1.1 億美元範圍略有下降。

Capital deployment is vital for Donaldson, and our strategy is unchanged. First, we are focused on reinvesting back into the company, either organically or inorganically through M&A as we continue to demonstrate. We also look to return value to shareholders through our dividends and share repurchases. Last week, we announced an 8% increase in our quarterly cash dividend, and we intend to repurchase approximately 2% of our shares outstanding this fiscal year.

資本部署對唐納森至關重要，我們的策略沒有改變。首先，正如我們繼續展示的那樣，我們專注於透過併購有機或無機地對公司進行再投資。我們也希望透過股利和股票回購為股東回報價值。上週，我們宣布將季度現金股利增加 8%，並打算在本財年回購約 2% 的已發行股票。

Now, I'll turn the call back to Tod.

現在，我將把電話轉回托德。

Thanks, Scott.

謝謝，斯科特。

I am more confident than ever in the Donaldson's team, our long-term strategy, technology pipeline, and ongoing investment. We are committed to working toward our Investors Day targets, both our fiscal 2026 financial objectives as well as our 2030 ESG ambition.

我對唐納森的團隊、我們的長期策略、技術管道和持續投資比以往任何時候都更有信心。我們致力於實現投資者日目標、2026 財年財務目標以及 2030 年 ESG 目標。

During the quarter, we published our fiscal 2023 sustainability report, which can be accessed on our website or via the QR code within our earnings slide presentation. The report highlights our sustainability strategy, which is underpinned by creating sustainable value through our products, fostering a safe and diverse environment for our people, and operating sustainably with a focus on our planet. I'll touch on a few recent highlights in these areas.

本季度，我們發布了 2023 財年永續發展報告，您可以在我們的網站上或透過收益幻燈片簡報中的二維碼存取報告。該報告強調了我們的永續發展策略，該策略的基礎是透過我們的產品創造永續價值，為我們的人民創造安全和多元化的環境，並以我們的地球為重點進行永續營運。我將談談這些領域最近的一些亮點。

Products, we are proud of our innovative technology and development capabilities in life sciences. In May, we announced our partnership with PolyPeptide Group to improve sustainability in the manufacturing of peptides, which are active pharmaceutical ingredients used in various medical therapies. Our collaboration on the development of a production scale, solvent recovery system, marked a milestone in the pharmaceutical industry's pursuit of environmentally friendly manufacturing processes.

產品方面，我們為生命科學領域的創新技術和開發能力感到自豪。五月份，我們宣布與 PolyPeptide Group 建立合作夥伴關係，以提高勝肽生產的可持續性，勝肽是用於各種醫療療法的活性藥物成分。我們在開發生產規模溶劑回收系統方面的合作標誌著製藥業追求環保製造流程的里程碑。

Donaldson is also creating sustainable values through our life changing technologies. We are currently supporting over 140 therapies, including 50 proof of concept and 90 drug development programs where our technologies are utilized by customers to trial, develop, and scaled processes crucial for advancing cell and gene therapies and RNA and traditional vaccines. Many of these programs are currently in the preclinical stage. However, we do have some that are in clinical trials and a few that are likely to enter commercial production this calendar year. Importantly, these include customers that originated both organically and via our Univercells, Purilogics, and Isolere acquisitions, demonstrating the power of our M&A strategy.

唐納森也透過我們改變生活的科技創造永續的價值。我們目前支持超過 140 種療法，包括 50 種概念驗證和 90 種藥物開發項目，客戶利用我們的技術來試驗、開發和擴展對於推進細胞和基因療法以及 RNA 和傳統疫苗至關重要的流程。其中許多項目目前處於臨床前階段。然而，我們確實有一些正在進行臨床試驗，還有一些可能會在今年進入商業生產。重要的是，這些客戶既包括有機來源的客戶，也包括透過我們收購 Univercells、Purilogics 和 Isolere 獲得的客戶，證明了我們併購策略的力量。

Now on our people and our planet. We have made notable progress toward our 2030 people and planet ambitions, including promoting safety and diversity and operating sustainably. Many of our achievements are documented in our sustainability report and much of our work has been publicly recognized. For 2024, Donaldson is included in the US News & World Report Best Companies to Work For and Newsweek's list of greatest Workplaces for Diversity and America's Most Responsible Companies.

現在在我們的人民和我們的星球上。我們在實現 2030 年人類和地球目標方面取得了顯著進展，包括促進安全和多樣性以及永續營運。我們的許多成就都記錄在我們的永續發展報告中，我們的許多工作也得到了公眾的認可。 2024 年，唐納森入選《美國新聞與世界報道》最佳工作場所名單、《新聞周刊》最佳多元化工作場所名單和美國最具責任感公司名單。

To close, I am proud of this team and the work we are doing and want to thank all of our valued Donaldson employees.

最後，我為這個團隊和我們正在做的工作感到自豪，並感謝我們所有尊貴的唐納森員工。

With that, I will now turn the call back to the operator to open the line for questions.

這樣，我現在將把電話轉回接線員以打開提問線路。

(Operator instructions)

（操作員說明）

Angel Castillo, Morgan Stanley.

安吉爾‧卡斯蒂略，摩根士丹利。

Just wanted to touch base a little bit more on the view for the full year outlook on operating margin, strong performance year, and you talked about just a continuation of that. So just curious if you could just unpack a little bit more on the views on operating margin, why not raise that for the full year and just the inputs here for the fourth quarter?

只是想進一步談談對全年營業利潤率、強勁業績年前景的看法，你談到的只是這一點的延續。因此，我很好奇，如果您能更多地了解對營業利潤率的看法，為什麼不提高全年的營業利潤率，而只提高第四季度的投入呢？

Yeah, good morning. This is Scott.

是的，早安。這是斯科特。

So I mean, we're pleased with the excellent quarter that we delivered. Operating margin in the quarter was 15.5%, that's 130 basis points improvement with the midpoint of the guide at 15.2%. If you did the math, you'd see we expect another increase in the fourth quarter in our operating margin sequentially and over the prior year by quite a significant number, so we feel pretty good about our -- at the midpoint 60-basis point operating margin improvement guided for this year, strong performance, and we decided to expect the previously contemplated improvements in the fourth quarter to come through. So we feel pretty good about where we sit and that's where we left the guidance.

所以我的意思是，我們對我們交付的出色季度感到滿意。本季營業利益率為 15.5%，比指導值中位數 15.2% 提高了 130 個基點。如果你算一下，你會發現我們預計第四季度的營業利潤率將比上一年繼續大幅增長，因此我們對我們的業績感到非常滿意 - 在中點 60 個基點今年營業利潤率的改善指引了強勁的業績，我們決定預計先前預期的改善將在第四季度實現。因此，我們對自己所處的位置感覺很好，這就是我們留下指導的地方。

That's helpful. Thank you.

這很有幫助。謝謝。

And then can you unpack a little bit more on life sciences. I think as I recall after fiscal 2Q there is a number of factors that give you confidence there and 20%-plus, so sounds like some of those maybe timing or some of those investments may have changed. So just can you help us understand what's changed and has that just potentially gotten pushed out to fiscal '25? Or are there other factors at play in terms of expectations here?

然後你能詳細了解生命科學嗎？我認為，正如我所記得的，第二財季之後，有很多因素可以給你帶來 20% 以上的信心，所以聽起來其中一些因素可能是時間安排或一些投資可能已經改變。那麼您能否幫助我們了解發生了什麼變化以及這些變化是否有可能被推遲到 25 財年？或是有其他因素在影響期望嗎？

Sure. As we went into the quarter, we had the backlog to be able to support our previous guide. That was clear. What was interesting is we were able to get some of those products that we have been previously talking about in quarters, the lumpiness of that we were able to deliver some of that. Some of that actually has pushed a little bit more than our expectation. And then also, as you look at the bioprocessing side, a little bit more carefulness on the incoming orders is what we experienced within the quarter. So overall, a little bit more movement than we would have expected is really the reason for the change.

當然。當我們進入本季度時，我們有積壓的工作來支持我們先前的指南。這很清楚。有趣的是，我們能夠獲得一些我們之前在幾個季度討論過的產品，我們能夠提供其中一些產品。其中一些實際上超出了我們的預期。此外，當你觀察生物加工方面時，我們在本季度經歷了對收到的訂單更加謹慎的情況。因此，總的來說，比我們預期多一點的變動確實是這項變化的原因。

Laurence Alexander, Jefferies.

勞倫斯·亞歷山大，杰弗里斯。

Hi, this is Dan Rizzo on for Laurence. Thank you for taking my question.

大家好，我是勞倫斯的丹·里佐。感謝您回答我的問題。

I was just wondering, given the growth outlook, how we should think about CapEx over the next two to three years? I mean, should it continue at this rate are we coming to the -- to the I mean to the large investment cycle? Or is it going to accelerate just thinking longer term?

我只是想知道，考慮到成長前景，我們應該如何考慮未來兩到三年的資本支出？我的意思是，如果我們繼續以這種速度發展，我的意思是進入大型投資週期嗎？或者只是從長遠考慮，它會加速嗎？

I mean -- this is Scott. Good morning.

我的意思是——這是斯科特。早安.

On our Investor Day meeting, we said we expect that all contemplated CapEx to be able to be completed at a maximum rate of 3.5% for sales. We still expect that to be the case. I think our industrial solutions and mobile solutions business are very well capitalized and really performing well and have a great level of invested capital for the future that they can see. We do expect to continue to invest in life sciences with some of the great opportunities that we have in front of us. But we expect to be able to do that within that original guide of 3.5% of revenues at most.

在我們的投資者日會議上，我們表示，我們預計所有預期的資本支出能夠以最高 3.5% 的銷售利率完成。我們仍然希望情況如此。我認為我們的工業解決方案和行動解決方案業務資本充足，表現良好，並為他們可以看到的未來​​投入了大量資本。我們確實希望利用擺在我們面前的一些巨大機會來繼續投資生命科學。但我們預計能夠在最初的指導原則（最多佔收入的 3.5%）內做到這一點。

That's really helpful.

這真的很有幫助。

And then in terms of pricing, given where we are, I mean the environment we're in, but are we moving more back towards a more historic environment, whether there'll be some pricing, but with cost -- input costs in check, it's -- it will be, I don't know. I guess more modest going forward. Same thing with costs, I guess in overall.

然後在定價方面，考慮到我們所處的位置，我指的是我們所處的環境，但我們是否會更多地回到更具歷史意義的環境，是否會有一些定價，但要控製成本— —投入成本，它是－它將是，我不知道。我想未來會更加溫和。我想總體而言，成本也是如此。

So when you take a look at our pricing behaviors now we have definitely returned back to a more normal pricing behavior and a normal cadence across the company and across the entirety of our business portfolio for sure.

因此，當你現在看看我們的定價行為時，我們肯定已經回到了更正常的定價行為以及整個公司和整個業務組合的正常節奏。

I do, though, want to point out that a lot of people talk about what's happening in the raw materials base market but overall, while some of the inflation has abated on a selective base economy -- selective basis material or commodity, it's not across the full ramifications of cost to our company. When you look at some of the commodities are still feeling some headwinds. You've got freight with headwinds.

不過，我確實想指出，很多人都在談論原材料基礎市場正在發生的事情，但總體而言，雖然選擇性基礎經濟（選擇性基礎材料或商品）的部分通膨有所減弱，但它並不全面成本對我們公司的全部影響。當你觀察一些商品時，仍然感到一些阻力。你的貨物逆風而行。

Certainly, we have labor headwinds. So it's still a mixed environment, really supporting a more -- really, a more careful approach to pricing. But pricing actions within our company are certainly not experiencing the headwinds that may be advertising the markets.

當然，我們也面臨勞動方面的阻力。所以它仍然是一個混合的環境，真正支持一種更——實際上，更謹慎的定價方法。但我們公司內部的定價行為肯定不會遇到可能為市場做廣告的阻力。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

This is Adam Farley on for Nathan.

我是亞當法利 (Adam Farley) 替補內森 (Nathan)。

I wanted to start with operating expenses. What should we expect from operating expenses in the short to medium term? Are the life science businesses structurally higher SG&A? Or should that also be able to leverage these expenses back into the high teens?

我想從營運費用開始。我們對中短期的營運支出有何預期？生命科學業務的 SG&A 結構是否較高？或者這也能夠將這些支出重新拉回十幾歲？

Yeah. So when you take a look at what we're doing, right, and you just ground that to our Investor Day targets. Mobile is above Investor Day targets, industrial is above Investor Day targets, and we're building our business out into the life sciences side. So as we continue to invest to build our life sciences surely, we have those increases that you're seeing. We would expect to continue our investment levels in life sciences and where we see opportunity, we'll press those even harder.

是的。因此，當您看看我們正在做什麼時，對吧，您只需將其落實到我們的投資者日目標即可。移動領域高於投資者日目標，工業領域高於投資者日目標，我們正在將業務擴展到生命科學領域。因此，當我們繼續投資建立我們的生命科學時，我們就會看到你們所看到的成長。我們預計將繼續保持對生命科學的投資水平，並且在我們看到機會的地方，我們將加強推動這些機會。

And so that will in the short time, keep that a bit elevated. But over time, as that business continues to build, certainly we would see that renormalize back into our company averages and in fact, potentially given the hockey stick nature of some of those investments that we have, could actually drive the company a bit lower than a high teens number that is typically referenced.

因此，這將在短時間內保持較高的水平。但隨著時間的推移，隨著該業務的不斷發展，我們當然會看到重新正常化回到我們公司的平均水平，事實上，考慮到我們所擁有的一些投資的曲棍球棒性質，實際上可能會導致公司的股價略低於通常引用的高十位數。

Okay. That's helpful.

好的。這很有幫助。

And then I wanted to touch on disk drives. 2023 was a softer market. You saw soft end markets and inventory corrections. Is the business back to a more normalized level of revenue today? Or do you expect some more challenges there?

然後我想談談磁碟機。 2023 年市場較為疲軟。您看到了軟終端市場和庫存調整。今天的業務是否恢復到更正常的收入水準？或者您預計那裡會遇到更多挑戰？

Yeah, it's certainly back to a more normalized level as far as a little bit increasing. So it is stepping forward. It's actually growing -- certainly the bottom is behind us. We're hiring people again in our disk drive manufacturing plants. The customers' expectations are ramping up certainly, so that reset is behind us and now we fully expect to walk forward a little bit on that business.

是的，就一點點增長而言，它肯定回到了更正常化的水平。所以它正在向前邁進。它實際上正在增​​長——當然底部已經過去了。我們在磁碟機製造工廠再次招募人員。客戶的期望肯定在提高，因此重置已經成為過去，現在我們完全期望在該業務上取得一點進展。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

Hey, good morning. This is Tyler on for Brian. Appreciate you guys taking my questions. I was just wondering if you could elaborate more on what -- about the reduction in the on-road guidance, what markets are particularly softening?

嗨，早安。這是泰勒替布萊恩發言。感謝你們回答我的問題。我只是想知道您能否詳細說明一下關於道路指導的減少，哪些市場特別疲軟？

Well, within on-road, it's long-haul trucks, right? So and particularly, it would be just a slight softening within the US base type of vehicle manufacturing markets is really where that's focused, but just slightly -- there's still at pretty high levels.

嗯，在公路上，這是一輛長途卡車，對吧？因此，特別是，美國基礎類型的汽車製造市場確實會出現輕微的疲軟，這確實是重點，但只是輕微的——仍然處於相當高的水平。

Okay. (multiple speakers) the other place (multiple speakers) the other place in the on-road, I guess where we have a little bit of headwinds would be China because that's a program that fits and starts there.

好的。 （多個發言者）另一個地方（多個發言者）路上的另一個地方，我想我們遇到一點阻力的地方是中國，因為這是一個適合併從那裡開始的計劃。

Makes sense. And just to follow up, can you just summarize the near-term revenue ops in bioprocessing? Like what -- just remind us of what exactly is going to market first and the timeline of all those products?

說得通。接下來，您能否總結一下生物加工領域的近期收入營運？就像什麼——提醒我們到底什麼產品將首先上市以及所有這些產品的時間表？

Yeah, sure. So there's some quite a broad-based portfolio within that business sector, if you will, within that vertical. You have our disk drive-base businesses, but you also had food and beverage and we continue to expect growth out of our food and beverage-base business. We're pressing that really quite nicely, and we would expect that to grow. We have vehicle electrification in there. Those two businesses and some of the technology that branches across, those businesses also go within our -- some of our medical-based applications. That's where we use some of the same polymer-based manufacturing techniques. And therefore, that's why it's within that particular vertical.

好，當然。因此，如果您願意的話，在該垂直領域內，該業務領域內有一些相當廣泛的投資組合。您擁有我們的基於磁碟機的業務，但您也擁有食品和飲料，我們繼續預計我們的食品和飲料業務將實現成長。我們確實很好地推動了這一點，並且我們預計這一點將會成長。我們在那裡實現了車輛電氣化。這兩項業務以及一些交叉的技術，這些業務也屬於我們的一些基於醫療的應用程式。這就是我們使用一些相同的基於聚合物的製造技術的地方。因此，這就是為什麼它處於特定的垂直領域。

But it gives us a broad portfolio of opportunity to really be able to rise. But vehicle electrification is positive. The headwinds are more within the bioprocessing sector. So our Univercells Technologies, our Isolere Bio, which is pre-revenue, and our Purilogics, which is pre-revenue. Those investments continue to as we ramp those up continue to give us a little bit of headwind.

但它為我們提供了廣泛的機會，讓我們能夠真正實現崛起。但汽車電氣化是積極的。不利因素較存在於生物加工領域。因此，我們的 Univercells Technologies、我們的 Isolere Bio（尚未產生收入）和我們的 Purilogics（尚未產生收入）。隨著我們加強投資力度，這些投資仍在繼續，這繼續給我們帶來一些阻力。

Okay. Just to confirm the Univercells is the only one driving revenue right now within bioprocessing?

好的。只是為了確認 Univercells 是目前生物加工領域中唯一推動收入的產品嗎？

Of the acquisitions, Univercells is driving revenue, yes. Isolere and Purilogics have some lab support-based revenue, but it's very, very small as we continue to populate laboratories in support of the therapy-based programs that we referenced within script.

是的，在這些收購中，Univercells 正在推動營收成長。 Isolere 和 Purilogics 有一些基於實驗室支持的收入，但它非常非常小，因為我們繼續填充實驗室來支持我們在腳本中引用的基於治療的項目。

(Operator instructions)

（操作員說明）

Rob Mason, Baird.

羅布梅森，貝爾德。

It's good to hear about the commentary around continued share gains in the mobile aftermarket part of the business. I was curious, though, if those are layering in, is that distorting your normal seasonality in that business? And the reason I ask is you guided or kept the guidance for that part of the business at mid-single digit for the full year but just given what typical fourth quarter seasonality looks like it would normally be up and that's not -- that's not really evident in the mid-single digits or is that just conservatism on the outlook or is there some dynamics just as the share gains are layering in?

很高興聽到有關移動售後市場部分業務份額持續增長的評論。不過，我很好奇，如果這些是分層的，是否會扭曲您在該行業的正常季節性？我問的原因是，您將全年該部分業務的指導或保持在中個位數，但考慮到典型的第四季度季節性，它通常會上升，但事實並非如此。 ，還是這只是對前景的保守主義，還是股價逐漸上漲的同時也存在一些動態？

Yeah, great question. Thanks, Rob.

是的，很好的問題。謝謝，羅布。

So let me break some things down for you. So when you look at our mobile aftermarket, certainly we had a nice quarter, up 11%. Let me break that down into OE. So OE was up mid-teens, right? And then the independent channel was up high-single digits. And so where you really see the seasonality when you go back to comp, the old OE side is in the OE side, up the teens, okay.

那麼讓我為你分解一些事情。因此，當你看到我們的行動售後市場時，你會發現我們的季度表現確實不錯，成長了 11%。讓我將其分解為 OE。所以 OE 已經十幾歲了，對吧？然後獨立頻道的漲幅達到了高個位數。因此，當你回到比較時，你真正看到季節性的地方，舊的 OE 面就在 OE 面，上升到十幾歲，好吧。

But you had some easy comps from last year, we've now returned that business back to where it was three destocking. And so you see the pull-through coming through now on that business as its returned, which is really a surefire sign is the seasonality we would typically see. And as you know from following the company for so long, that really is why our model is more of a 48% in the first half of the year and 52% in the second half. So we are seeing that seasonality to support that 52% company revenue in the second half. It's just that I can understand why it may not be quite so obvious, but specifically in that OE aftermarket channel, we are definitely seeing it. And then on the independent channel, it's clearly share gain.

但去年的情況比較簡單，我們現在已將該業務恢復到三次去庫存的水平。因此，您會看到該業務現在正在恢復，這確實是我們通常看到的季節性的可靠跡象。正如您長期關注該公司所知道的那樣，這就是為什麼我們的模型上半年為 48%，下半年為 52%。因此，我們看到季節性因素支持了公司下半年 52% 的收入。只是我可以理解為什麼它可能不是那麼明顯，但特別是在 OE 售後市場管道中，我們肯定會看到它。然後在獨立通路上，顯然是份額收益。

Yeah, just on mobile again, the profitability there continues to come through really strongly I guess at a pretax level. To what degree is the JV income influencing that? Or is it influencing that to support such high incremental and how sustainable would you think the JV income, if that's a contributor, would be.

是的，再次在行動領域，我認為稅前水準的獲利能力持續強勁。合資企業的收入對其影響有多大？或者它是否會影響支持如此高的增量，以及您認為合資企業收入（如果這是貢獻者）的可持續性如何。

It's not really appreciable in its contribution, to be honest. And -- but where it certainly is we would expect it to be sustainable. Our JVs now as a result of the volume increases that we've experienced are functioning much better than they were within the model of a couple of years ago for sure, but it's not really the story.

老實說，它的貢獻並不明顯。而且——但在它確實存在的地方，我們希望它是可持續的。由於我們所經歷的銷售量增加，我們的合資企業現在的運作肯定比幾年前的模式要好得多，但事實並非如此。

Okay. And just a question on the IFS business. How is the incoming quotes on the equipment side? You commented on the aftermarket piece being healthy. I'm just curious what you're seeing on coating on the equipment side and how that could play into the balance of the year relative to backlog as well?

好的。還有一個關於 IFS 業務的問題。設備端來料報價如何？您評論說售後市場很健康。我只是好奇您在設備方面的塗層方面看到了什麼，以及這如何影響今年相對於積壓的餘額？

About the same as we were last quarter, so I would say it's slightly elongated. So it just ever so slightly like by a month or so. So if you go back to normal quote to order thing it would be measured in say, 6 to 8 weeks, maybe 4 to 8 weeks. And now it might be 6 to 10 weeks thing.

與上個季度大致相同，所以我想說它稍微延長了。所以它只是稍微一個月左右。因此，如果您回到正常報價來訂購產品，那麼需要 6 到 8 週，甚至 4 到 8 週。現在可能需要 6 到 10 週的時間。

So it all feels just a little bit more careful. And -- but you're still seeing large projects and multimillion-dollar projects within dust collection. So you've got capacity expansion, et cetera. And for us, you still have strong overall plant usage because our aftermarket business continues to gain share and grow. But overall, the business is comfortable and really much as it was at the end of second.

所以這一切都感覺要更加小心一點。而且 - 但您仍然會看到除塵領域的大型項目和數百萬美元的項目。所以你需要進行產能擴張等等。對於我們來說，您仍然擁有強勁的整體工廠使用率，因為我們的售後市場業務繼續獲得份額並成長。但總的來說，生意很舒服，跟第二年底的情況差不多。

I see. Just last question, if I could.

我懂了。最後一個問題，如果可以的話。

The Medica stake that you're acquiring is pretty interesting getting access to that hollow fiber membrane technology. Just -- you commented on some joint development work that has already been ongoing there. What's the current status of that? And what would be the outlook for revenue contribution coming from that particular relationship?

您收購的 Medica 股份對於獲得中空纖維膜技術非常有趣。只是——您對已經在那裡進行的一些聯合開發工作發表了評論。目前情況如何？這種特定關係帶來的收入貢獻前景如何？

Sure, so what we are developing with Medica and have been for a number of quarters already is tangential flow filtration for bioprocessing to support our overall bioprocessing strategy. It is going to take us some time to develop and get those products released. I would certainly not expect any revenue this year. We do have to go through an approval process of being able to utilize those particular products, but certainly, sometime next fiscal year, late next fiscal year, it would likely see revenue.

當然，我們正在與 Medica 合作開發用於生物加工的切向流過濾，以支持我們的整體生物加工策略，並且已經持續了幾個季度。我們需要一些時間來開發並發布這些產品。我當然不會期望今年有任何收入。我們確實必須經過一個能夠使用這些特定產品的審批流程，但可以肯定的是，在下個財年的某個時候，下個財年末，它可能會看到收入。

The overall filters that we're doing go into land-based applications, bioreactor productions, cell-culture type of expansion processes all within bioprocessing and really help to improve yields within those processes. So it's a fundamental filtration technology that Donaldson Company does not have in its portfolio today, so we're really excited about what it brings to the corporation (technical difficulty)--

我們正在做的整體過濾器適用於陸地應用、生物反應器生產、細胞培養類型的擴展過程，所有這些都在生物加工中，並且真正有助於提高這些過程中的產量。因此，這是唐納森公司目前的產品組合中沒有的一項基本過濾技術，因此我們對它給公司帶來的好處感到非常興奮（技術難度）--

And that concludes our question-and-answer session. I will now turn the call back over to President and CEO, Tod Carpenter, for closing remarks.

我們的問答環節到此結束。現在，我將把電話轉回給總裁兼執行長 Tod Carpenter，他將致閉幕詞。

That concludes the call today. Thanks to everyone who participated, and I look forward to reporting our fourth quarter fiscal 2024 results in August.

今天的電話會議到此結束。感謝所有參與的人，我期待在 8 月報告我們的 2024 財年第四季業績。

Have a great day. Goodbye.

祝你有美好的一天。再見。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。