Donaldson Company Inc (DCI) 2024 Q4 法說會逐字稿

Thank you for standing by and welcome to the Donaldson Company fourth quarter and full year 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 年第四季和全年財報電話會議。 （操作員說明）

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

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 fourth quarter and full-year fiscal 2024 earnings conference call. With me today are Tod Carpenter, Chairman, CEO and President; and Scott Robinson, Chief Financial Officer.

早安.感謝您參加唐納森 2024 財年第四季和全年財報電話會議。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。

This morning, Tod and Scott will provide a summary of our fourth-quarter and full-year performance and details on our outlook for fiscal 2025. We will also provide an update on our fiscal 2026 financial targets.

今天早上，Tod 和 Scott 將提供我們第四季度和全年業績的摘要以及 2025 財年展望的詳細資訊。

During today's call, we will discuss non-GAAP or adjusted results. For fourth-quarter and full-year fiscal 2024 non-GAAP results exclude pretax restructuring and other charges of $6.4 million related to footprint optimization and cost reduction initiatives. This compares to $4.9 million and $21.8 million of charges in fourth quarter and full year fiscal 2023, respectively, related to the organizational redesign as well as costs associated with exiting a lower-margin customer program.

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。 2024 財年第四季和全年非 GAAP 業績不包括稅前重組以及與足跡優化和成本削減計劃相關的 640 萬美元其他費用。相較之下，2023 財年第四季和全年的費用分別為 490 萬美元和 2,180 萬美元，這些費用與組織重新設計以及退出利潤率較低的客戶計畫相關的成本有關。

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.

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，本次電話會議期間做出的任何前瞻性陳述都受到風險和不確定性的影響，這些風險和不確定性已在我們的新聞稿和 SEC 文件中進行了描述。

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. Fiscal 2024 was another record year for Donaldson Company, record sales, record margins, and record EPS.

謝謝，薩里卡。早安. 2024 財年對唐納森公司來說又是創紀錄的一年，銷售額、利潤率和每股盈餘都創下歷史新高。

We surpassed $3.5 billion in sales, achieved operating margin of 15.4% and delivered adjusted EPS of $3.42, a 13% increase above prior year. Our cash conversion was over 97%, well above our historical average and we returned $286 million to our shareholders through dividends and share buybacks.

我們的銷售額超過 35 億美元，營業利潤率達到 15.4%，調整後每股收益為 3.42 美元，比上年增長 13%。我們的現金轉換率超過 97%，遠高於我們的歷史平均水平，我們透過股利和股票回購向股東返還 2.86 億美元。

Through mixed end market conditions, the Donaldson team furthered our mission of advancing filtration for a cleaner world through our investments and progress on our strategic initiatives, including our 2030 ESG ambitions.

在複雜的終端市場條件下，唐納森團隊透過投資和策略舉措（包括 2030 年 ESG 目標）的進展，進一步推進了我們的使命：推進過濾，創造更清潔的世界。

I'll now discuss our fourth-quarter results, which capped off a tremendous year for our company. Sales increased 6% over prior year, driven by higher volumes across all three operating segments, operating margin improved 200 basis points over 2023, and EPS increased 21%.

我現在將討論我們第四季的業績，它為我們公司的輝煌的一年畫上了圓滿的句號。在所有三個營運部門銷量增加的推動下，銷售額比上年增長 6%，營運利潤率比 2023 年提高 200 個基點，每股收益增長 21%。

Each of our segments demonstrated sales growth and improved profitability. Here are some highlights. In mobile solutions, volume was the primary driver of sales growth as a result of strength in our aftermarket business. Segment profitability continued to be robust as a result of mix, higher volumes, and pricing.

我們的每個部門都實現了銷售成長和獲利能力提高。以下是一些亮點。在行動解決方案中，由於我們售後市場業務的實力，銷售量是銷售成長的主要驅動力。由於產品組合、產量增加和定價提高，該部門的獲利能力持續保持強勁。

In industrial solutions, aerospace and defense sales rose approximately 40% to a record level and drove industrial profit margin to an all-time high. In life sciences, sales grew above 20% and profitability improved year over year.

在工業解決方案中，航空航太和國防銷售額成長約 40%，達到創紀錄水平，推動工業利潤率創歷史新高。在生命科學領域，銷售額成長超過20%，獲利能力逐年提高。

Shortly after the end of the quarter, we completed the acquisition of a 49% stake in Medica S.p.A., a leader in hollow fiber membrane technology and retain a call option to purchase the remaining 51% stake in the years to come.We are pleased with this investment and our joint development agreement as we work towards developing and commercializing hollow fiber modules for applications, including bioprocessing and food and beverage.

本季末後不久，我們完成了對中空纖維膜技術領導者 Medica S.p.A. 49% 股權的收購，並保留在未來幾年購買剩餘 51% 股權的看漲期權。於開發和商業化用於生物加工、食品和飲料等應用的中空纖維模組。

Throughout the quarter, we maintained our focus on strong and consistent execution for our customers through our best-in-class operations teams and global footprint.

在整個季度中，我們始終致力於透過一流的營運團隊和全球足跡為客戶提供強大且一致的執行力。

With relatively stable supply chain conditions, we significantly improved on-time delivery rates and our backlogs remain in great shape as we begin fiscal 2025. We executed and also laid the groundwork for the future through R&D and capital expenditures. R&D investment increased approximately 16% over 2023 and included product development initiatives in our legacy and newly acquired businesses.

在相對穩定的供應鏈條件下，我們顯著提高了準時交貨率，在2025 財年開始時，我們的積壓訂單仍然保持在良好狀態。 。研發投資比 2023 年增加約 16%，其中包括我們傳統業務和新收購業務的產品開發計劃。

Capital expenditures were primarily focused on increasing capacity and expanding new products and technology, including in our life sciences segment.

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。

Now some detail on fourth quarter sales. Total company sales were $935 million, up 6% year over year, driven primarily by volume. Price contributed approximately 1%.

現在是第四季銷售的一些細節。該公司總銷售額為 9.35 億美元，年增 6%，這主要是銷量的推動。價格貢獻約1%。

In mobile solutions, total sales were $575 million, a 6% increase versus 2023. Aftermarket sales grew 13% to $453 million, driven by solid growth in both the OE and independent channels. OE channel sales were up high teens versus prior year, benefiting from a return to more normalized levels of demand following destocking in the prior year.

在行動解決方案中，總銷售額為 5.75 億美元，比 2023 年增長 6%。由於去年去庫存後需求恢復到更正常化的水平，原廠通路銷售額與去年相比成長了十幾倍。

In the independent channel, sales increased high-single-digits as a result of improved product availability and market share gains. The strength in aftermarket was partially offset by continued declines in our first-fit businesses. Off-road sales of $90 million decreased 13% as weak agriculture markets persisted in most regions.

在獨立通路中，由於產品可用性的提高和市場份額的增加，銷售額實現了高個位數成長。售後市場的強勁勢頭被我們的首次組裝業務的持續下滑部分抵消。由於大多數地區農業市場持續疲軟，越野銷售額下降了 9,000 萬美元，下降了 13%。

On-road sales declined 12% to $33 million due to lower equipment production in China and the United States. I'll provide some additional color on our mobile business in China, where the macro environment remains difficult. Sales decreased 19% year over year driven by declines in our first-fit businesses.

由於中國和美國的設備產量下降，公路銷售額下降 12% 至 3,300 萬美元。我將就我們在中國的行動業務提供一些額外的信息，中國的宏觀環境仍然困難重重。由於我們的首發業務下降，銷售額年減 19%。

While China now represents a low-single-digit portion of total segment sales, it remains a strategically important area for us over the long term. We are optimistic about our ability to gain share over time through programs already won and through our technology-led products as regulations become tighter and as Chinese manufacturers compete in Western markets.

雖然中國目前僅佔細分市場總銷售額的低個位數部分，但從長遠來看，它仍然是我們的一個具有重要戰略意義的地區。隨著監管變得更加嚴格以及中國製造商在西方市場的競爭，我們對透過已經贏得的項目和透過我們的技術主導產品贏得市場份額的能力持樂觀態度。

Now on the industrial solutions segment. Industrial sales increased 4% to $288 million. Aerospace and defense sales rose 40% to $50 million, driven by robust commercial aerospace and rotorcraft markets as well as ongoing demand in defense due to the modernization of equipment and the impact of global conflicts. Industrial Filtration Solutions or IFS sales declined 1.5% from weaker dust collection demand in Europe and power generation project timing.

現在談談工業解決方案部分。工業銷售額成長 4%，達到 2.88 億美元。航空航太和國防銷售額成長了 40%，達到 5,000 萬美元，這得益於強勁的商業航空航太和旋翼機市場以及設備現代化和全球衝突影響所帶來的持續國防需求。由於歐洲除塵需求疲軟和發電項目時間表，工業過濾解決方案或 IFS 銷售額下降了 1.5%。

In the life sciences segment, sales were $72 million, up 21% year over year, largely as a result of Disk Drive sales, which continued to rebound from trough levels a year ago. Food and beverage sales also increased in the quarter.

在生命科學領域，銷售額為 7,200 萬美元，年增 21%，這主要歸功於磁碟機銷售額從一年前的低谷水準持續反彈。本季食品和飲料銷售額也有所成長。

Looking to fiscal 2025, Donaldson is poised for another record year, delivering value to our shareholders through record sales and record earnings. We are forecasting a sales increase between 2% and 6%, driven by solid growth in all three segments, adjusted operating margin between 15.3% and 15.9% and adjusted earnings per share between $3.56 and $3.72.

展望 2025 財年，唐納森有望再創歷史新高，透過創紀錄的銷售額和創紀錄的獲利為股東創造價值。我們預期銷售額將成長2% 至6%，這得益於所有三個細分市場的穩健成長、調整後營業利潤率在15.3% 至15.9% 之間以及調整後每股收益在3.56 美元至3.72美元之間。

Given fiscal 2024 results and our projections for fiscal 2025 and 2026, we are also taking the opportunity to update our fiscal 2026 financial targets previously laid out at our last Investor Day. First, on sales. We now expect consolidated sales to increase at a three-year CAGR between 3% and 7% slightly below our previous 4% to 8% projection. Our updated view is driven by a slower-than-expected sales ramp-up in life sciences where biopharmaceutical markets have slowed.

鑑於 2024 財年的業績以及我們對 2025 財年和 2026 財年的預測，我們也藉此機會更新之前在上一次投資者日制定的 2026 財年財務目標。首先，關於銷售。我們現在預計綜合銷售額的三年複合年增長率將在 3% 至 7% 之間，略低於我們先前 4% 至 8% 的預測。我們更新的觀點是由於生命科學領域的銷售成長慢於預期，其中生物製藥市場已經放緩。

Our outlook for mobile and industrial solutions is unchanged. With respect to consolidated operating margin, our fiscal 2026 target range is now 15.8% to 16.6% slightly above our previous range of 15.6% to 16.4% with mobile and industrial operating margins far exceeding our previous expectations and with the path to life sciences operating margin strength elongating.

我們對移動和工業解決方案的前景沒有改變。就綜合營業利潤率而言，我們的2026 財年目標範圍目前為15.8% 至16.6%，略高於先前的15.6% 至16.4% 範圍，其中行動和工業營業利潤率遠遠超出我們先前的預期，而通往生命科學營業利益率的道路力量伸長。

Our mobile and industrial businesses have benefited from sales mix, volume growth, pricing and deflation of select input costs and we expect current profitability levels to continue. With respect to life sciences, we now believe the ramp-up in profitability will take longer than initially expected given macro pressures and constrained customer capital spending particularly for early-stage assets.

我們的行動和工業業務受益於銷售組合、銷售成長、定價和特定投入成本的縮減，我們預計目前的獲利水準將持續下去。在生命科學方面，我們現在認為，鑑於宏觀壓力和客戶資本支出（尤其是早期資產）的限制，獲利能力的提升將需要比最初預期更長的時間。

Our view of sales and profitability mix in the three-year projection period since Investor Day has somewhat changed. However, our ability to return value to our shareholders through higher levels of profitability on higher sales has not. We remain committed to and confident in our long-term strategy of utilizing our diversified technology-led portfolio of businesses to further penetrate existing markets and enter into new markets.

自投資者日以來，我們對三年預測期內銷售和獲利能力組合的看法有所改變。然而，我們透過更高的銷售額和更高的獲利水準為股東回報價值的能力卻沒有。我們仍然致力於利用我們多元化的技術主導業務組合來進一步滲透現有市場並進入新市場，並對我們的長期策略充滿信心。

Now I'll turn it over to Scott, who will provide more details on the financials and our outlook. Scott?

現在我將把它交給斯科特，他將提供有關財務狀況和我們的前景的更多詳細資訊。史考特？

Thanks, Tod. Good morning, everyone. I would like to start by thanking our teams around the globe for their hard work. We had a terrific quarter, which concluded a terrific year. Our employees delivered for our customers and our shareholders and I am proud of what we accomplished.

謝謝，托德。大家早安。首先，我要感謝我們全球團隊的辛勤工作。我們度過了一個精彩的季度，結束了精彩的一年。我們的員工為我們的客戶和股東提供服務，我為我們所取得的成就感到自豪。

Before I cover our outlook, I will provide details on fourth-quarter results. EPS grew 21% year over year to $0.94 on 6% sales growth. Operating profit increased 21% and operating margin was 16.3%, 200 basis points above 2023 driven by gross margin expansion and operating expense leverage.

在介紹我們的前景之前，我將提供有關第四季度業績的詳細資訊。每股盈餘較去年同期成長 21% 至 0.94 美元，銷售額成長 6%。在毛利率擴張和營業費用槓桿的推動下，營業利潤成長 21%，營業利益率為 16.3%，較 2023 年提高 200 個基點。

Gross margin of 36.2% increased 190 basis points above prior year from select input cost deflation and leverage on higher sales. Operating expenses as a percent of sales were 19.9% versus 20.0% a year ago from leverage on higher sales, partially offset by higher people-related costs and acquisition-related expenses.

由於部分投入成本下降和銷售額增加，毛利率達 36.2%，比上年同期成長 190 個基點。營業費用佔銷售額的百分比為 19.9%，而一年前為 20.0%，這得益於較高的銷售額，但部分被較高的人員相關成本和收購相關費用所抵消。

Now we'll discuss segment profitability. Mobile solutions pretax profit margin was 18.3%, 210 basis points above prior year due to favorable mix from strong aftermarket performance, volume growth, and pricing benefits. Improved manufacturing efficiency in our plants also contributed to strong performance.

現在我們將討論細分市場的獲利能力。由於強勁的售後市場表現、銷售成長和定價優勢的有利組合，行動解決方案稅前利潤率為 18.3%，比上年同期高 210 個基點。我們工廠生產效率的提升也促成了強勁的業績。

Industrial solutions pretax profit margin was a record 20.1%, 90 basis points above a tough comparison, 19.2% in the prior year period. The year-over-year improvement was driven by volume and pricing.

工業解決方案稅前利潤率達到創紀錄的 20.1%，比去年同期的 19.2% 高出 90 個基點。同比改善是由銷售和價格推動的。

Our margin performance in both mobile and industrial has been outstanding all year, pushing Donaldson's blended margins to record levels. We look forward to continuing this robust performance in the years to come.

我們在移動和工業領域的利潤表現全年都很出色，推動唐納森的綜合利潤達到創紀錄的水平。我們期待在未來幾年繼續保持這種強勁的表現。

Our life science business generated a pretax loss of approximately 1%, including a headwind from acquisitions of 15 percentage points. This compares to a pretax loss of 12% in the prior year period. Leverage on higher sales from our legacy businesses drove the improvement.

我們的生命科學業務產生了約 1% 的稅前虧損，其中包括 15 個百分點的收購阻力。相較之下，去年同期稅前虧損為 12%。由於我們傳統業務的更高銷售額，推動了這項進步。

While profitability in the segment has been negatively impacted by a slower acquisition-related sales ramp combined with investments for growth, we are committed to and confident in the scaling of our acquisitions and to long-term profitable growth in this segment.

雖然該領域的獲利能力受到收購相關銷售成長放緩以及成長投資的負面影響，但我們致力於並有信心擴大收購規模以及該領域的長期獲利成長。

Turning to a few balance sheet and cash flow statement highlights. Fourth quarter capital expenditures were approximately $19 million. Cash conversion in the quarter was 93% above historical averages and on par with prior year as our focus on working capital efficiency continue.

轉向一些資產負債表和現金流量表的亮點。第四季資本支出約 1,900 萬美元。由於我們繼續關注營運資本效率，本季的現金轉換率比歷史平均高出 93%，與前一年持平。

In terms of other capital deployment, we returned approximately $82 million to shareholders, inclusive of $32 million in the form of dividends and $49 million in share repurchases.

在其他資本配置方面，我們向股東返還了約 8,200 萬美元，其中包括 3,200 萬美元的股息和 4,900 萬美元的股票回購。

Before turning to our fiscal '25 outlook, I will touch on the footprint and cost optimization program we put in place this quarter which resulted in pretax charges of $6.4 million or approximately $0.04 of EPS. One of Donaldson's core strengths and competitive advantages is our global footprint.

在談到我們的 25 財年展望之前，我將談談我們本季實施的足跡和成本優化計劃，該計劃導致稅前費用為 640 萬美元，或每股收益約 0.04 美元。唐納森的核心優勢和競爭優勢之一是我們的全球足跡。

With investments in every major region, we are able to support the production and distribution of our innovative and high-growth products in region for region. As our business evolves, we continually strive to optimize our footprint and have identified certain projects resulting in improved efficiency.

透過在每個主要地區的投資，我們能夠支持我們的創新和高成長產品在各個地區的生產和分銷。隨著我們業務的發展，我們不斷努力優化我們的足跡，並確定了某些可以提高效率的項目。

Now our fiscal '25 outlook. First on sales. We forecast full-year total sales to increase between 2% and 6%. This includes a pricing benefit of approximately 1% and an immaterial impact from currency translation.

現在是我們的 25 財年展望。首先是銷售。我們預計全年總銷售額將成長 2% 至 6%。這包括約 1% 的定價優勢和貨幣換算帶來的微小影響。

For mobile solutions, we are expecting an increase of between 0% and 4% with growth in aftermarket and off-road more than offsetting on-road declines. Aftermarket sales are projected to increase low-single-digits after lapping solid results in the prior year as vehicle utilization rates remain high and as we continue to gain market share.

對於行動解決方案，我們預計增幅將在 0% 到 4% 之間，售後市場和越野市場的成長將足以抵消公路市場的下降。由於車輛利用率仍然很高且我們繼續獲得市場份額，繼去年取得穩健業績後，售後市場銷售額預計將出現低個位數成長。

Off-road sales are forecast to increase low-single-digits for market share gains, partially offset by weaker demand from softer end market conditions, including in agriculture and construction. On-road sales are expected to decrease low-double-digits as we exit certain nonstrategic products and as global heavy-duty truck production remains muted.

預計越野車銷售將實現低個位數的市佔率成長，但部分被農業和建築業等終端市場狀況疲軟導致的需求疲軟所抵消。由於我們退出某些非戰略產品以及全球重型卡車生產仍然低迷，公路銷售預計將出現低兩位數下降。

Industrial solutions sales are projected to grow between 4% and 8%. IFS sales are expected to increase high-single-digits with strength across most businesses, including duct selection, industrial hydraulics, and industrial gases. Aerospace and defense sales are forecast to be flat year over year at high levels due to lapping of an outstanding 2024 with the backdrop of supportive end market conditions.

工業解決方案銷售額預計將成長 4% 至 8%。由於大多數業務（包括管道選擇、工業液壓和工業氣體）的強勁，IFS 的銷售額預計將實現高個位數成長。由於 2024 年在終端市場條件支援的背景下表現出色，預計航空航太和國防銷售將同比持平，處於高水準。

For life sciences, we expect an increase of low-double-digits, driven by sales growth across all businesses. Our legacy businesses, including disk drive, food and beverage, and vehicle electrification are all poised for strong performance and we are pleased with the progress we have made on integrating our bioprocessing acquisitions.

對於生命科學，我們預計在所有業務銷售成長的推動下，將出現低兩位數的成長。我們的傳統業務，包括磁碟機、食品和飲料以及車輛電氣化，都有望實現強勁的業績，我們對整合生物製程收購所取得的進展感到高興。

As Tod mentioned, challenging market conditions and tightened customer capital spending have dampened our expectation for the segment in the near-term. We expect profitability to be approximately breakeven for the full year.

正如托德所提到的，充滿挑戰的市場環境和收緊的客戶資本支出削弱了我們對該領域近期的預期。我們預計全年獲利能力將接近收支平衡。

On a consolidated basis, we are forecasting adjusted operating margin between 15.3% and 15.9% driven by sustained gross margin performance. At the midpoint, this represents an all-time record for the company and compares to an adjusted operating margin of 15.4% in 2024.

在綜合基礎上，由於持續的毛利率表現，我們預計調整後的營業利潤率將在 15.3% 至 15.9% 之間。與 2024 年 15.4% 的調整後營業利潤率相比，這代表了該公司的歷史記錄。

Our outlook for interest expense is approximately $21 million on par with the prior year. Other income net is forecasted to be between $16 million and $20 million, up from $13 million a year ago. Our tax rate is forecast between 23% and 25%, an increase from 22.7% in fiscal 2024 due to a reduction in discrete tax benefits.

我們對利息支出的預期約為 2,100 萬美元，與前一年持平。其他淨收入預計為 1,600 萬至 2,000 萬美元，高於一年前的 1,300 萬美元。由於離散稅收優惠的減少，我們的稅率預計在 23% 至 25% 之間，高於 2024 財年的 22.7%。

For adjusted EPS, we expect between $3.56 and $3.72, a $0.22 or 7% increase at the midpoint from adjusted EPS of $3.42 in the prior year. In total, in fiscal 2025, we are well poised to once again deliver higher levels of profitability on higher sales.

對於調整後每股收益，我們預計在 3.56 美元至 3.72 美元之間，比上一年調整後每股收益 3.42 美元增加 0.22 美元，即 7%。總的來說，到 2025 財年，我們已做好準備，在銷售額增加的情況下再次實現更高水準的獲利能力。

Now on to our balance sheet and cash flow outlook. Cash conversion is anticipated to be in line with historical averages at 85% to 95%. Capital expenditures are projected between $85 million and $105 million and will continue to include growth investments, including capacity and new products and technologies. Our capital deployment strategy has not changed. Reinvestment back into Donaldson organically or inorganically is our top priority.

現在談談我們的資產負債表和現金流前景。預計現金轉換率將達到 85% 至 95% 的歷史平均值。資本支出預計在 8,500 萬至 1.05 億美元之間，並將繼續包括成長投資，包括產能以及新產品和技術。我們的資本配置策略沒有改變。以有機或無機方式對唐納森進行再投資是我們的首要任務。

To that end, our R&D investments are forecasted to continue to increase and our M&A focus areas remain Life Sciences and Industrial Services. We also intend to continue our long history of paying and increasing our dividend. Lastly, we plan to repurchase approximately 2% to 3% of shares outstanding.

為此，我們的研發投資預計將繼續增加，我們的併購重點領域仍然是生命科學和工業服務。我們也打算繼續支付和增加股利的悠久歷史。最後，我們計劃回購約2%至3%的已發行股票。

Before turning the call back to Tod, I will provide some additional details on our updated fiscal 2026 financial targets. For mobile solutions, our sales outlook is unchanged. From a profitability standpoint, given our recent outperformance and expectations for continued strength, we are increasing our fiscal 2026 targeted operating margin range to between 18.1% and 18.9%, which at the midpoint is up 250 basis points from the initial range of 15.6% to 16.4%.

在將電話轉回 Tod 之前，我將提供有關我們更新的 2026 財年財務目標的一些其他詳細資訊。對於行動解決方案，我們的銷售前景沒有改變。從獲利能力的角度來看，考慮到我們最近的優異表現和對持續強勢的預期，我們將2026 財年的目標營業利潤率範圍提高至18.1% 至18.9%，其中值比最初的15.6% 至18.9 % 範圍提高了250 個基點。

In industrial solutions, our sales outlook is also unchanged. However, given recent higher-than-expected profitability trends and our forecast for continued leverage from higher sales, we have increased the operating margin range to between 17.8% and 18.6%, which at the midpoint is over 100 basis points of improvement from 16.6% to 17.4% previously.

在工業解決方案方面，我們的銷售前景也沒有改變。然而，考慮到近期高於預期的獲利趨勢以及我們對銷售成長帶來的持續槓桿的預測，我們已將營業利潤率範圍提高到17.8% 至18.6% 之間，其中值比16.6% 提高了100 個基點以上先前為 17.4%。

For life sciences, we are reducing our sales and margin expectations given the aforementioned market dynamics. We now look for sales to increase at a 12% to 16% CAGR over the three-year period versus 18% to 22% previously and forecast profitability between 5% and 11% below our previous range of 22.1% to 22.9%.

對於生命科學，鑑於上述市場動態，我們正在降低銷售和利潤預期。我們現在預計三年內銷售額複合年增長率為 12% 至 16%，而之前為 18% 至 22%，預測盈利能力將比我們之前的 22.1% 至 22.9% 範圍低 5% 至 11%。

Importantly, for the consolidated company, while we have lowered our total sales growth expectation to between 3% and 7% from 4% to 8% previously, we have improved our profitability outlook to between 15.8% and 16.6%, which at the midpoint is 20 basis points above our previous target.

重要的是，對於合併後的公司，雖然我們將總銷售成長預期從先前的4% 至8% 下調至3% 至7% 之間，但我們將獲利前景提高至15.8% 至16.6% 之間，其中值為比我們先前的目標高出 20 個基點。

I'll now turn the call back to Tod for some closing remarks.

現在我將把電話轉回給托德，讓他做一些結束語。

Thanks, Scott. I'm excited by what lies ahead for Donaldson Company. Through our mission of advancing filtration for a cleaner world, the company has evolved, driven by the strength of our team and our dedication to executing on our long-term strategic initiatives. I am confident in our ability to deliver value to all of our stakeholders in the years to come. We are optimistic about the future in each of our segments.

謝謝，斯科特。我對唐納森公司的未來感到興奮。我們的使命是推進過濾，創造一個更清潔的世界，在我們團隊的實力和我們致力於執行長期戰略計劃的推動下，公司不斷發展。我對我們在未來幾年為所有利害關係人創造價值的能力充滿信心。我們對每個細分市場的未來都持樂觀態度。

In mobile solutions, we remain the market leader with our technology-led product portfolio. Our proprietary razor-to-sell razor-blade model has been paying dividends and we expect to continue to gain share.

在行動解決方案方面，我們憑藉技術主導的產品組合保持市場領先地位。我們專有的刮鬍刀銷售刮鬍刀刀片模式一直在帶來紅利，我們預計將繼續獲得份額。

In industrial solutions, we are excited about our connectivity strategy and the ongoing build-out of our services capabilities. Our one-stop shop approach is working.

在工業解決方案中，我們對我們的連接策略和不斷增強的服務能力感到興奮。我們的一站式服務方法正在發揮作用。

In life sciences, we are making progress in commercializing our bioprocessing business. We recently announced the expansion of our relationship through our Univercells Technologies business with the Gene Therapy Program at the University of Pennsylvania.

在生命科學領域，我們在生物加工業務商業化方面取得了進展。我們最近宣布透過 Univercells Technologies 業務擴大與賓州大學基因治療計畫的關係。

The Gene Therapy Program or GTP is renowned for its pioneering work, seeking to make gene therapies for rare diseases accessible worldwide. This expanded relationship is aimed at determining the scalability of product manufacturing using our bioreactors.

基因治療計劃（GTP）以其開創性工作而聞名，致力於在全世界範圍內提供罕見疾病的基因療法。這種擴大的關係旨在確定使用我們的生物反應器生產產品的可擴展性。

Overall, the interest in our technologies is robust, and our therapy pipeline is growing. While market conditions across our segments have and will continue to fluctuate, we are committed to investing for the future executing and remaining agile again with the overarching mission of the company as our guiding principle.

總體而言，人們對我們的技術很感興趣，我們的治療管道正在不斷增長。儘管我們各個細分市場的市場狀況已經並將繼續波動，但我們致力於以公司的整體使命為指導原則，為未來的執行和保持敏捷性進行投資。

In fiscal 2024, we made considerable progress on our 2030 ESG ambitions as well and we look forward to providing an update in the quarters to come and with our upcoming fiscal 2024 sustainability report.

在 2024 財年，我們在 2030 年 ESG 目標方面也取得了相當大的進展，我們期待在未來幾季以及即將發布的 2024 財年永續發展報告中提供最新情況。

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

現在，我將把電話轉回給接線員，以打開提問線路。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。 （操作員說明）

Bryan Blair, Oppenheimer.

布萊恩布萊爾，奧本海默。

I was hoping to level-set a bit more on life sciences trends and outlook, at least with our growth trends and outlook. And I know that bioprocessing trailing revenue base is quite limited. So the numbers there are impacted by that, but are you willing to speak to fiscal '24 growth rates across food and bev, disk drive, vehicle electrification, and bioprocessing? And then what's contemplated in your fiscal '25 outlook for each?

我希望對生命科學的趨勢和前景有更多的了解，至少是我們的成長趨勢和前景。我知道生物加工的追蹤收入基礎相當有限。因此，那裡的數字受到了影響，但您願意談論 24 財年食品和飲料、磁碟機、車輛電氣化和生物加工領域的成長率嗎？那麼您對 25 財年的展望有何預期？

Bryan, we haven't broke the model out externally to that level. We can tell you that we do expect a low-double-digit growth though in food and beverage. Bioprocessing will certainly be a bit more muted and that's what we put within the model. That's really the longer-term change if you will. And then disk drive will continue to crawl forward from the bottoms we experienced here over the past year. That's just generally kind of how you would put the model together.

布萊恩，我們還沒有將模型從外部突破到那個水平。我們可以告訴您，我們確實預期食品和飲料領域將出現低兩位數的成長。生物加工肯定會更加安靜，這就是我們在模型中所考慮的。如果你願意的話，這確實是更長期的改變。然後磁碟機將繼續從我們過去一年經歷的底部爬行。這通常就是將模型組合在一起的方式。

Okay. Understood. The step up in fiscal '26 mobile and industrial profit expectations is encouraging certainly supported by the trends of your operations. Maybe speak to what the key drivers have been for much stronger-than-expected margin expansion in the legacy segments particularly in mobile.

好的。明白了。 26 財年移動和工業利潤預期的提高令人鼓舞，這當然得到了您的營運趨勢的支持。也許可以談談傳統細分市場（尤其是行動領域）利潤率擴張遠超預期的關鍵驅動因素。

And then on the life sciences side, we know that the demand backdrop in for biopharma is still muted. Is that the exclusive driver of the lowered growth and profit outlook or are there also differences in the forward model in terms of investments required, cost structure et cetera?

然後在生命科學方面，我們知道生物製藥的需求背景仍然低迷。這是成長和利潤前景下降的唯一驅動因素，還是遠期模型在所需投資、成本結構等方面也存在差異？

So let's take mobile first. And within mobile, what you have is really the power of the mix overall, expanding the operating margin. Specifically, we have clear share gain within our aftermarket organizations. We also have the benefit of a little bit of the tailwind due to the OE destocking in the past.

所以我們先來看看行動裝置。在行動領域，你所擁有的實際上是整體組合的力量，擴大了營運利潤。具體來說，我們在售後市場組織中的份額明顯增加。由於過去原廠去庫存，我們還受益於一點順風。

So given the sense of where we are, for example, on that mix. You will have seen on our OE channel within aftermarket, which is about 40% of that business is up, say, high-teens within the quarter. And then when you look at the independent channel, which is 60%, you'll have seen clear share gains and up high-single-digits. That really shows the power of the mix. You also have obvious headwinds within the OE sector of the first-fit production within mobile solutions.

例如，考慮到我們在混合方面的處境。您會在我們的售後市場 OE 管道上看到，大約 40% 的業務在本季度實現了高雙位數成長。然後，當您查看佔 60% 的獨立管道時，您會看到明顯的份額收益和高個位數的增長。這確實顯示了混合的力量。在行動解決方案的首次適配生產中，OE 領域也面臨明顯的阻力。

And specifically what really showed up in this quarter, the new piece of data would be a little bit more headwind in mining, which we had not been experiencing in the past. So net-net, we've got a good strong mix opportunity. We're very optimistic about the future and been able to hold that operating margin specifically because of the share gains we have in Aftermarket and we've been working really hard to get a fair relationship with our OEs and get the pricing opportunities appropriate there.

具體來說，本季真正出現的情況是，新數據將為挖礦帶來更多阻力，這是我們過去從未經歷過的。所以，淨淨，我們有一個很好的強混合機會。我們對未來非常樂觀，並且能夠保持營業利潤率，特別是因為我們在售後市場的份額增長，而且我們一直在努力與我們的原始設備製造商建立公平的關係，並在那裡獲得適當的定價機會。

Within the life sciences sector, yes, the bioprocessing upstream and downstream is really where we look to grow. That is clearly a more careful market at this point in time. We also would point out that new cell and gene therapy development is also a place where we look to grow. What's interesting about when you combine those, we see less expansion by the biopharma within the bioprocessing equipment sector.

是的，在生命科學領域，上游和下游的生物加工確實是我們尋求成長的領域。目前，這顯然是一個更謹慎的市場。我們也要指出，新的細胞和基因療法的開發也是我們尋求成長的領域。有趣的是，當你將這些結合起來時，我們發現生物製藥在生物加工設備領域的擴張較少。

And so that has become more muted as well as in the cell and gene therapy activities, we told you we had about 140 or so development programs within therapeutics. We're up in the quarter double-digits. You can see the slowness happening, for example, with less programs going into Phase I and Phase II clinical trials. And so things are just evolving more slowly than we would have expected and it's just really the backdrop of the comprehensive sector if you will.

因此，在細胞和基因治療活動中，這種情況變得更加沉默，我們告訴您，我們在治療領域有大約 140 個左右的開發項目。我們在本季實現了兩位數的成長。例如，您可以看到進展緩慢，進入第一階段和第二階段臨床試驗的項目較少。因此，事情的發展速度比我們預期的要慢，如果你願意的話，這確實是綜合產業的背景。

Understood. Appreciate the color. And one more quick one, if I may. Perhaps offer a little more color around Medica S.p.A., and then fit in the portfolio and your continued build-out of the bioprocessing puzzle that you've laid out.

明白了。欣賞顏色。如果可以的話，再快一點。或許可以為 Medica S.p.A. 提供更多的色彩，然後融入產品組合以及您對已佈局的生物加工難題的持續構建中。

Yeah. We're really optimistic about what we have within the bioprocessing activities. We look at the some of the parts and we're very positive. Clearly, the market is telling us it's going to take longer than we had originally hoped. In our typical Donaldson and other models, when programs slip, they'll slip a quarter or two quarters. But within bioprocessing, they seem to slip a year or two years.

是的。我們對生物加工活動中的內容非常樂觀。我們看了一些部分，我們非常樂觀。顯然，市場告訴我們這需要比我們最初希望的更長的時間。在我們典型的唐納森和其他模型中，當計劃下滑時，它們會下滑四分之一或兩個季度。但在生物加工領域，它們似乎會延後一兩年。

And so that's really we just thought it was prudent within the longer-term outlook to take that into account and therefore the model change. But overall, when you sum it up, we're excited about what we have. The customers are telling us they're excited about the overall products that we're bringing to them.

因此，我們確實認為從長期前景來看，考慮到這一點並因此改變模型是謹慎的。但總的來說，當你總結起來時，我們對我們所擁有的感到興奮。客戶告訴我們，他們對我們為他們提供的整體產品感到興奮。

They are disruptive. They like the efficiency output that it brings to them. We just need to continue as a company to work our process to commercialize them and push them out. It's just going to take a little bit more time than we had originally thought but on a good track.

他們具有破壞性。他們喜歡它帶給他們的效率輸出。作為一家公司，我們只需要繼續進行我們的流程，將它們商業化並推出。這只是比我們最初想的要多花一點時間，但進展順利。

Tim Thein, Raymond James.

提姆泰恩，雷蒙詹姆斯。

Good. Thank you. Good morning. The first question was on, hey, good morning. Yeah, just on the Industrial segment, I was hoping you could maybe give a little bit more color specifically on IFS and you mentioned in the release some of the timing issues that may have impacted sales in the quarter, but the kind of a step-up in growth projected here in '25.

好的。謝謝。早安.第一個問題是，嘿，早安。是的，就工業領域而言，我希望您能在 IFS 上提供更多的信息，您在新聞稿中提到了一些可能影響本季度銷售的時間問題，但這種步驟-預計25 年的增長率將會上升。

And I guess it's a little hard to generalize for that segment just given the number of end-markets. But one of the themes has kind of been around larger-scale CapEx, just a little slower to move forward and just maybe just some mainly is around larger capital projects. And I know that's not a great generalization for what drives that segment, but maybe just give some color around the pieces within the portfolio that are giving you confidence in that high-single-digit growth projected in '25?

我想，鑑於終端市場的數量，很難對該細分市場進行概括。但其中一個主題是圍繞著更大規模的資本支出，只是進展速度稍慢一些，也許只是一些主要圍繞著更大的資本項目。我知道這並不是對推動該細分市場的因素的一個很好的概括，但也許只是為投資組合中的各個部分提供一些顏色，讓您對 25 年預計的高個位數增長充滿信心？

Yeah, Tim, just generally, as you describe the macro of what we're experiencing, I think you're very spot on to the overall condition that we're experiencing. For example, IAF, so dust collection equipment in Europe certainly is muted. It's the biggest headwind that we have. And it's specific to Europe. It's not other region-based and so that is the biggest headwind that we have.

是的，提姆，一般來說，當你描述我們正在經歷的宏觀情況時，我認為你非常了解我們正在經歷的整體狀況。例如，IAF，所以歐洲的除塵設備肯定是靜音的。這是我們面臨的最大阻力。這是歐洲特有的。它不是基於其他地區的，因此這是我們面臨的最大阻力。

And then the other one is timing relative to power generation projects. We still feel very good. It's a multi-year positive trend within power generation, certainly going up. Our backlogs are healthy. It's a very lumpy business as we talked about many times before. It's just in a lumpy moment again. Therefore, it was down in the quarter.

另一個是與發電項目相關的時機。我們感覺還是很好的。這是發電領域多年來的積極趨勢，而且肯定會上升。我們的積壓訂單狀況良好。正如我們之前多次討論過的那樣，這是一個非常不穩定的業務。只是又到了一個坎坷的時刻。因此，該季度有所下降。

But as we look forward, we do not expect it to be down. Next year, we do expect it to be up year-over-year and we see that within our backlogs. So we feel like that gives us confidence on the movement up. And then in dust collection, IAF in Europe, it's pretty tough there. We do expect conditions to repair slightly going forward. So the comp becomes a little bit easier to give us some tailwinds there.

但展望未來，我們預計它不會下降。明年，我們確實預計它會同比增長，並且我們在積壓訂單中看到了這一點。所以我們覺得這給了我們對上漲的信心。然後在歐洲 IAF 的集塵方面，情況相當艱難。我們確實預計未來情況會略有修復。因此，比賽變得更容易為我們帶來一些順風。

And then the third thing, very importantly is our connected-based products really are gaining momentum. We put up and stood up about another 1,000 in the last fiscal year. We do see they help us drive Aftermarket and we are gaining share really across the world, largely though in the United States within our Aftermarket execution. And so net-net, when you roll out it together, that gives us the positive outlook for IFS within fiscal '25.

第三件事，非常重要的是，我們的連網產品確實正在獲得發展動能。上一財年，我們又舉辦了約 1,000 人。我們確實看到它們幫助我們推動售後市場，並且我們在全球範圍內確實獲得了份額，但主要是在美國的售後市場執行中。因此，當你們一起推出它時，我們對 IFS 在 25 財年的前景充滿樂觀。

Very good. Thank you. And then just I guess turning to capital deployment with, I guess, half a turn of net leverage obviously in a really good position to be on the offensive. Maybe just with respect to the growth aspirations in life sciences in light of the tougher cyclical backdrop, does it change your motivation or just change your plan in terms of how much you want to invest in that area in light of a market that's maybe shaping up to be tougher than you thought?

非常好。謝謝。然後我想轉向資本部署，我想，淨槓桿率有半圈，顯然處於進攻的有利位置。也許只是在更嚴峻的周期性背景下，生命科學領域的成長願望會改變你的動機，或者只是改變你的計劃，根據可能正在形成的市場，你想在該領域投資多少比你想像的更堅強？

And I guess maybe the corollary to that would be, is there potentially less, maybe you're competing for less investment just broadly speaking or is that just not the case and sort of I don't know the open-ended question, but however you want to touch on that. Thank you.

我想也許推論是，是否有潛在的更少，也許你只是在廣泛地競爭更少的投資，或者情況並非如此，我不知道開放式問題，但是但是你想談談這一點。謝謝。

Yeah, let me try to unpack that. There's a lot there. So just generally at the company level relative to capital deployment, our priorities have not changed. I mean, Scott points it out within the script. We specifically will invest back into the company organically and inorganically, we are targeted specifically at Life Sciences as well as service aspects in some pieces of the industrial, primarily life sciences. We like the play that we have within life sciences.

是的，讓我嘗試打開它。那裡有很多東西。因此，總體而言，在公司層級上相對於資本部署，我們的優先事項並沒有改變。我的意思是，斯科特在劇本中指出了這一點。我們將特別以有機和無機方式對公司進行投資，我們專門針對生命科學以及某些工業領域（主要是生命科學）的服務方面。我們喜歡生命科學領域的表現。

Sure, it's a little bit elongated, but the longer-term returns within that space still look very positive for us as we continue to enter it. As far as opportunities for M&A within the space at this point in time, it has gone, let's say, that's also perhaps a little bit more elongated than it has been in the past, but we saw a very full pipeline. We're still developing good relationships. It's very strategic. I'm very pleased. Nothing changes at all relative to our strategy and we sit in good shape.

當然，它有點長，但隨著我們繼續進入這個領域，該領域的長期回報對我們來說仍然非常積極。就目前該領域內的併購機會而言，它已經消失了，可以說，這也可能比過去更長一些，但我們看到了一個非常完整的管道。我們仍在發展良好的關係。這是非常具有戰略意義的。我很高興。我們的策略沒有任何變化，我們的狀況良好。

Maybe I can just add on a bit to that. I mean, if you, back to your comment about our half a turn debt level, I mean, we generated cash conversion of 113% last year, 97% this year. We're forecasting in our guide 85% to 95%. So very strong cash flows over the last few years and another strong year projected. I mean we've stomached the acquisitions that we've completed. Bought 2% of our shares increased the dividend and our debt slowly trickles down.

也許我可以補充一點。我的意思是，如果你回到你對我們半週債務水準的評論，我的意思是，我們去年的現金轉換率為 113%，今年為 97%。我們在指南中預測為 85% 到 95%。過去幾年的現金流非常強勁，預計又一個強勁的一年。我的意思是，我們已經接受了已經完成的收購。買了我們 2% 的股票，增加了股息，我們的債務慢慢減少。

So in the guide, we also noted this year, we are forecasting a share repurchase of 2% to 3% of our shares outstanding. If you look back the last several years, it's been spot-on 2%. And so we've increased that a little bit in light of the very strong cash flows that the company has generated in the last two years and again expected for next year.

因此，在指南中，我們也指出，今年我們預計將回購已發行股票的 2% 至 3%。如果你回顧過去幾年，你會發現這個數字剛好是 2%。因此，鑑於該公司過去兩年產生的非常強勁的現金流以及明年的預期，我們增加了一點。

So we feel like we're in a really good shape from a strategic capital deployment perspective and that we're really being smart with how we're allocating capital into this business, which is evidenced by the debt slowly coming down. So we feel like we're in a pretty strong position. We do look to execute acquisitions and those you know the timing of which is always something that's impossible to estimate, but we feel like we're in a very strong position and we did slightly tick-up the share buyback guide for this year because of those strong cash flows.

因此，我們覺得從策略資本部署的角度來看，我們的狀況非常好，而且我們在如何將資本分配到這項業務方面確實很聰明，債務緩慢下降就證明了這一點。所以我們覺得我們處於非常有利的地位。我們確實希望執行收購，你知道收購的時間總是無法估計的，但我們覺得我們處於非常有利的地位，我們確實稍微調整了今年的股票回購指南，因為那些強勁的現金流。

Okay. And I'll squeeze one last one in. And this -- the risk of cutting this or slicing this too finely, but I'll just ask on with respect to the growth in Aftermarket within the Mobile business, does the, the fact that you had the contract win and that share gain that you experienced in the independent channel.

好的。我將把最後一個塞進去。通路中獲得的份額收益。

Is that normalizes is there a much of a mix impact in '25 if you have maybe the independent channel doesn't see the level of growth vis-a-vis the OE channel in '25? I know there's some can be some different margin dynamics there, but just curious if that's a meaningful factor in any way.

如果獨立通路在 25 年沒有看到與 OE 通路相比的成長水平，那麼這是否正常化，在 25 年是否會產生很大的混合影響？我知道那裡可能存在一些不同的利潤動態，但只是好奇這是否是一個有意義的因素。

I think the more meaningful factor to really take into account here is the OE destocking portion of the mix that you referred to because we do end up lapping when that was -- when that began last fiscal year. And we start to lap that within this fiscal year in Q2.

我認為這裡真正要考慮的更有意義的因素是您提到的組合中原廠去庫存部分，因為我們最終確實在上個財年開始時進行了研磨。我們開始在本財年第二季內完成這項任務。

And so maybe that's something more important than what you're calling out rather to a particular large win on the independent channel. That's something to think about. And you kind of when you roll that within our overall growth rate than expected from that maybe we started from that perspective.

因此，也許這比您所呼籲的更重要，而不是在獨立頻道上取得特別大的勝利。這是值得思考的事。當你將其推算到我們的整體成長率超出預期時，也許我們就是從這個角度開始的。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

Good morning. This is Adam Farley on for Nathan.

早安.我是亞當法利 (Adam Farley) 替補內森 (Nathan)。

Hi, Adam.

嗨，亞當。

So gross margin improvement has been very impressive. Besides price cost, what are the main buckets leading to better-than-expected gross margins in the businesses? And any thoughts on expectations for gross margin going forward as the environment normalizes?

因此，毛利率的改善非常可觀。除了價格成本之外，導致企業毛利率優於預期的主要因素有哪些？隨著環境正常化，對未來毛利率的預期有何想法？

Yeah. I mean, the company has obviously worked very hard on its gross margins over the last several years, getting back to the spikes of inflation that we saw and we just want to have reasonable commercial relationships with our customers. And so if costs are going up, we got to fast price increases on and they do the same to their customers.

是的。我的意思是，在過去的幾年裡，該公司顯然在毛利率方面付出了很大的努力，回到了我們所看到的通貨膨脹高峰，我們只想與客戶建立合理的商業關係。因此，如果成本上升，我們就必須快速提高價格，他們也會對客戶做同樣的事情。

And certainly, we think things are stabilizing now. We have some costs still going up, but some going down. So that's a good place to be. I think the world is hopefully normalizing and we've worked hard on all aspects of gross margin to get to a 36.2% gross margin for the fourth quarter and 35.6% for the year is where Donaldson should be right now. We're expecting to maintain that level of gross margins going forward. So we're not projecting any massive increases. Price for next year is forecasted to only be 1% of revenues.

當然，我們認為現在情況正在穩定下來。我們的一些成本仍在上升，但有些成本卻在下降。所以這是一個好地方。我認為世界有望正常化，我們在毛利率的各個方面都做出了努力，第四季度毛利率達到 36.2%，全年毛利率達到 35.6%，這才是唐納森現在應該達到的水平。我們預計未來將維持這一毛利率水準。因此，我們預計不會有任何大幅成長。明年的價格預計僅佔收入的 1%。

So we're pretty pleased with our gross margin performance. The plants have performed very well. And so hats off to their work to maintain costs and ensure we're executing as efficiently as possible. And then we always have to be able to continue to leverage. You know, what we're doing with higher levels of sales should generate higher levels of property and profitability. We are generating higher levels of sales.

因此，我們對毛利率表現非常滿意。這些植物的表現非常好。因此，向他們在維持成本和確保我們盡可能高效地執行方面所做的工作表示敬意。然後我們始終必須能夠繼續發揮槓桿作用。你知道，我們對更高水準的銷售所做的事情應該會產生更高水準的財產和盈利能力。我們正在創造更高水準的銷售額。

And as things have calmed down now we've really moved back to our traditional roots of improving our cost structure and we did announce a fourth quarter program whereby we're looking at a footprint and cost optimization program and while that won't necessarily provide benefits immediately, longer-term, there'll be benefits from that.

隨著事情現在平靜下來，我們確實回到了改善成本結構的傳統根源，我們確實宣布了第四季度計劃，我們正在研究足跡和成本優化計劃，雖然這不一定提供立即受益，長期來看，也會從中受益。

So we're going to keep working on our gross margin. We feel like we're definitely headed in the right direction with how things are performing and that's why we think we can maintain these current levels.

因此，我們將繼續努力提高毛利率。我們覺得我們的發展方向肯定是正確的，這就是為什麼我們認為我們可以維持目前的水準。

That's really helpful. And then just a quick follow-up. What is the on-road product line that is it related to? And do you expect to do any more product-line rationalization?

這真的很有幫助。然後進行快速跟進。與之相關的道路產品線是什麼？您是否期望進行更多的產品線合理化？

Yeah. If you remember a while back, we talked about the exit of some product lines across the company and we have one particular product. It's a DEF tank product that's really not in our core and we've been producing those for years and years and years. And because it's really not a technology-led filtration solution, we're going to move out of that business and work with our customer to transition elsewhere.

是的。如果您還記得不久前，我們討論過整個公司的一些產品線的退出，並且我們有一個特定的產品。這是一種 DEF 坦克產品，實際上並不是我們的核心產品，但我們多年來一直在生產這些產品。因為它確實不是一個以技術為主導的過濾解決方案，所以我們將退出該業務並與我們的客戶合作過渡到其他地方。

And there is a revenue haircut from that. But thinking about the capital we employ, the investments for future, we decided that wasn't strategic to the company. So that's a headwind that we've accounted for in our guidance this year in terms of first-fit sales, but I think it's the right decision for the company.

收入也會因此減少。但考慮到我們使用的資本和對未來的投資，我們認為這對公司來說不是策略性的。因此，這是我們在今年的首次銷售指導中考慮到的逆風，但我認為這對公司來說是正確的決定。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

Hi, good morning. Thanks for taking my questions. I just have a couple at the moment now. I was wondering if you could talk more specifically about the NAPA partnership and what went into that win. Specifically, I'm curious if you could talk about the NAPA Gold product line. What end markets are you getting increased access to? And anything else that you can do just to flesh out that win and add some detail to that.

嗨，早安。感謝您回答我的問題。我現在只有幾個。我想知道您是否可以更具體地談談 NAPA 合作夥伴關係以及這場勝利的原因。具體來說，我很好奇您是否可以談談 NAPA Gold 產品線。您正在增加進入哪些終端市場？以及你可以做的任何其他事情，只是為了充實這場勝利並為其添加一些細節。

Yes, sure. So just basically, it really hits the strengths of the company as to why we won, right? So one, we have the technologies necessary that they cover across the full portfolio of product that covers all the medium heavy-duty diesel engine opportunities across multiple end market segments like construction, ag, mining, et cetera, and that really targeted because of our catalog.

是的，當然。所以基本上，這確實發揮了公司的優勢，這也是我們獲勝的原因，對嗎？因此，我們擁有必要的技術，它們涵蓋了整個產品組合，涵蓋了建築、農業、採礦等多個終端市場領域的所有中型重型柴油發動機機會，並且真正有針對性的是因為我們目錄。

Second is because of we really take great pride in customer service and customer relationships. And we have taken time to really get a strong relationship and good information share between the two companies, such that our service levels to them are really quite good. And so you roll those things together and it allows us to win this thing over time, and we believe it will allow us to have a strong relationship with them as well. So really place the strengths.

其次是因為我們對客戶服務和客戶關係感到非常自豪。我們花了很多時間在兩家公司之間真正建立了牢固的關係和良好的資訊共享，因此我們為他們提供的服務水準確實非常好。所以你把這些東西結合在一起，隨著時間的推移，它使我們能夠贏得這個東西，我們相信這也將使我們與他們建立牢固的關係。所以真正發揮優勢。

Yeah. Great. Thank you. And then just to be clear, I see a press release from August, but this is a partnership where you stepped up your business with them prior to August, right. And this has been contributing to the growth in the independent channel.

是的。偉大的。謝謝。然後需要澄清的是，我看到了 8 月的新聞稿，但這是一種合作夥伴關係，您在 8 月之前加強了與他們的業務，對吧。這也促進了獨立通路的成長。

It has been -- we felt as though we should put that press release out because it is material and we wanted to signal to everybody that, hey, we do have this program win. And now it is clearly continuing to add to the growth on the independent channel, yes.

我們覺得我們應該發布該新聞稿，因為它很重要，我們想向每個人表明，嘿，我們確實贏得了這個計劃。現在，它顯然正在繼續促進獨立頻道的成長，是的。

Yeah. Okay. Got it. Thank you. And then we talked a lot about margins, but I just want to ask one more there. I'm not sure that this was discussed in great detail, but I'm just thinking that one of the things that I believe has been helping margins lately is has been the mix, right, between kind of aftermarket and first-fit. First-fit has been a little bit soft. And can you just comment specifically on whether there could be a headwind from the first-fit business eventually recovering and the proportion of sales from first-fit increasing? Thanks.

是的。好的。知道了。謝謝。然後我們談了很多關於利潤的問題，但我只想再問一個問題。我不確定是否對此進行了詳細討論，但我只是認為，我認為最近有助於提高利潤率的因素之一就是售後市場和首次安裝之間的混合。第一次安裝有點軟。您能否具體評論一下首配業務最終復甦以及首配銷售額比例增加是否會帶來阻力？謝謝。

Yeah, Brian, I think you have it right. Certainly, our aftermarket sales, which is one of the critical strengths of the company to have two-thirds of your business being replacement parts is really what drives the company. And we want to continue to sell proprietary first-fit solutions because every time we do that, we secure Aftermarket business for many, many years to come.

是的，布萊恩，我認為你說得對。當然，我們的售後市場銷售是公司的關鍵優勢之一，三分之二的業務都是替換零件，這才是公司的真正動力。我們希望繼續銷售專有的首次安裝解決方案，因為每次我們都這樣做，我們就能在未來很多年裡獲得售後市場業務。

So as things cycle up and down in off-road and on-road and first-fit sales, obviously tend to cycle, there is a mix impact to that. And if your aftermarket business is growing at a rate much faster than your first-fit businesses, you're going to have margin accretion. And if it switches the other way around, you're going to have some dilution. We think we can continue to weather those storms.

因此，隨著越野、公路和首次裝配銷售的上下波動，顯然傾向於循環，這會產生混合影響。如果您的售後業務的成長速度比您的首次安裝業務快得多，那麼您的利潤將會增加。如果情況相反，你就會受到一些稀釋。我們認為我們可以繼續度過這些風暴。

And we've really factored that into our guidance going forward. So we do expect longer-term that certainly the first-fit businesses are not going to be in decline. And certainly there's some well-publicized short-term issues in the first-fit business where you see some of our big customers retrenching just a bit and we expect that to happen for a while and then ultimately return to growth.

我們確實將這一點納入了我們未來的指導中。因此，我們確實預計，從長遠來看，最適合的企業肯定不會衰退。當然，在首次適應業務中存在一些廣為人知的短期問題，您會看到我們的一些大客戶略有收縮，我們預計這種情況會持續一段時間，然後最終恢復成長。

And so I think you have it right. We factored those concepts into our guide for next year as well as our revised Investor Day targets where we're taking mobile solutions and industrial solutions up quite a bit. So we feel pretty good about the operating margin even in light of the fact that at some point, first-fit will come back.

所以我認為你說得對。我們將這些概念納入明年的指南以及修訂後的投資者日目標中，我們將行動解決方案和工業解決方案提升了很多。因此，即使考慮到在某個時候，首次適應將會回歸，我們對營業利潤率感覺相當好。

Rob Mason, Baird.

羅布梅森，貝爾德。

Just real quickly, I had a question on the fiscal '25 outlook. How are you thinking about the sales cadence? If you just want to break it down between first half and second half, yeah, if you could just comment on that.

很快，我對 25 財年的前景提出了一個問題。您如何看待銷售節奏？如果你只是想在上半場和下半場之間進行分解，是的，如果你能對此發表評論的話。

Sure. We're closer to a 49-51 than we are at 48, our traditional 48-52.

當然。與傳統的 48-52 相比，我們更接近 49-51。

I see. Well, that kind of bleeds into my second question. Just around the mobile solutions outlook. The share gains have been notable here. I think you outlined or detailed some would seem like maybe incremental share gains in the off-road business that support the outlook there.

我懂了。嗯，這就是我的第二個問題。圍繞移動解決方案的前景。這裡的股價漲幅非常顯著。我認為您概述或詳細說明了越野業務中一些看起來可能會增加的份額收益，這些收益支持了那裡的前景。

Just that my read is those are somewhat meaningful. Just your customer base is talking about a more pressure there certainly through the back half of the calendar year. Just if you could comment on your thoughts around how you may be performing there versus market volumes within your outlook.

只是我讀到的那些有點有意義。只是您的客戶群正在談論今年下半年肯定會有更大的壓力。只是如果您能評論一下您對您在前景中的表現與市場交易量的看法。

Yeah, we definitely have some share gain there. No question about it. And we did bake that within the guide.

是的，我們確實在那裡獲得了一些份額。毫無疑問。我們確實在指南中烘焙了它。

Any particular region that bias to?

有什麼偏向的特定地區嗎？

Well, they're global-based customers. So when we win, we really win by platform. And so it's tough to specifically, on this particular win say, hey, this is the region because it will be more broad-based.

嗯，他們是全球客戶。因此，當我們獲勝時，我們實際上是透過平台獲勝的。因此，在這次特殊的勝利中，很難具體地說，嘿，這就是這個地區，因為它將具有更廣泛的基礎。

Sure, sure. Okay. And then just last question, stepping back to the 2026 target revisions. Scott, I think in your commentary, you talked about R&D would continue to increase, which is something we would expect. But could you put a little more context around how you think R&D trends over the next couple of years relative to your upwardly revised OP margin guidance and really on more specifically how should we think about that as a percent of sales? Does it go up as a percent of sales? Does it stay where it is?

當然，當然。好的。最後一個問題，回到 2026 年目標修訂。斯科特，我認為在您的評論中，您談到研發將繼續增加，這是我們所期望的。但是，您能否就您如何看待未來幾年的研發趨勢（相對於您向上修正的營運利潤率指導）提供更多背景信息，以及更具體地說，我們應該如何將其視為銷售額的百分比？它佔銷售額的百分比會上升嗎？它會留在原來的地方嗎？

Now Tod and I have been pretty consistent over the years. R&D is of critical importance to Donaldson. We are a technology-led filtration company and when we start thinking about our budget for the next year we really think hard about what monies we want to allocate to R&D and we expect to continue to increase our R&D spend, both in terms of dollars and in terms of rate of sales.

現在，托德和我多年來一直非常一致。研發對唐納森至關重要。我們是一家以技術為主導的過濾公司，當我們開始考慮明年的預算時，我們確實認真考慮了我們想要分配給研發的資金，並且我們期望繼續增加我們的研發支出，無論是在美元還是在預算方面。

If you look at the you know it does go up and down but in the longer trend is a pretty significant increase over the last few years and we want to continue that. We want to continue to invest in new technologies. We have some great opportunities in life sciences to invest.

如果你看一下，你就會知道它確實會上下波動，但從長期趨勢來看，過去幾年的成長相當顯著，我們希望繼續下去。我們希望繼續投資新技術。我們在生命科學領域有一些很好的投資機會。

You know and we're nearing 3% of sales. And we've been under that and we're going to continue to allocate both capital and expense dollars into R&D because that's really our best opportunity for returns on invested capital is to do it in-house with our spectacular R&D team that we have.

你知道，我們的銷售額已接近 3%。我們一直在這種情況下，我們將繼續將資本和支出資金分配到研發中，因為這確實是我們獲得投資資本回報的最佳機會，就是與我們擁有的出色的研發團隊一起在內部進行。

Yeah. And the way we talk throughout the company is we're a technology-led company. We want to continue to invent cool things. Pretty straightforward.

是的。我們整個公司的說法是我們是一家以技術為主導的公司。我們希望繼續發明很酷的東西。非常簡單。

No. Understood. And just one last quick one. Just related to the restructuring that you outlined, Scott, you mentioned that would those benefits would play out over time. Is there something included in the '25 outlook related to the benefits from those or they extend beyond '25?

不，明白了。還有最後一件事。斯科特，就與您概述的重組相關，您提到這些好處會隨著時間的推移而發揮作用。 '25 展望中是否包含與這些好處相關的內容或它們延伸到 '25 之外的內容？

No, there would be much impact in '25. We're going to continue to focus on our footprint and cost optimization and there will be some more actions that I'm sure we can identify this year. But they take a while to run through and start to show up. But we're just trying to make the company consistent with our historical approach of things more efficient every year and that takes some investment, but the returns on those investment while not a one-year payback usually shows up in year two or year three for sure.

不，25 年會有很大影響。我們將繼續關注我們的足跡和成本優化，我相信今年我們將採取更多行動。但它們需要一段時間才能運行並開始出現。但我們只是想讓公司與我們每年更有效率的歷史方法保持一致，這需要一些投資，但這些投資的回報雖然不是一年的投資回報，但通常會在第二年或第三年顯現出來當然。

That concludes our question-and-answer session. I will now turn the call back over to Tod Carpenter for some final closing remarks.

我們的問答環節到此結束。現在，我將把電話轉回給托德·卡彭特，讓其做最後的總結發言。

That concludes the call today. Thanks to everyone who participated and we look forward to reporting our first quarter fiscal 2025 results in November. Goodbye.

今天的電話會議到此結束。感謝所有參與人員，我們期待在 11 月報告 2025 財年第一季的業績。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。