Donaldson Company Inc (DCI) 2025 Q1 法說會逐字稿

Thank you for standing by, and welcome to the Donaldson Company first-quarter fiscal year 2025 earnings conference call. (Operator Instructions)

感謝您的耐心等待，歡迎參加唐納森公司 2025 財年第一季財報電話會議。 （操作員說明）

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

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

Good morning. Thank you for joining Donaldson's first-quarter fiscal 2025 earnings conference call. With me today are Tod Carpenter, Chairman, President and CEO; and Brad Pogalz, Chief Financial Officer. Also on the call is Scott Robinson, former CFO and current Strategic Adviser. This morning, Tod and Brad will provide a summary of our first-quarter performance and reaffirm our outlook for fiscal 2025.

早安.感謝您參加唐納森 2025 財年第一季財報電話會議。今天與我在一起的有董事長、總裁兼執行長 Tod Carpenter；和財務長 Brad Pogalz。前財務長兼現任策略顧問斯科特羅賓遜（Scott Robinson）也參加了電話會議。今天早上，托德和布拉德將總結我們第一季的業績，並重申我們對 2025 財年的展望。

During today's call, we will discuss non-GAAP or adjusted results. For first quarter 2025, non-GAAP results exclude pretax restructuring and other charges of $3.3 million, primarily related to cost reduction initiatives in the life sciences segment. 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。 2025 年第一季度，非 GAAP 業績不包括稅前重組和其他費用 330 萬美元，主要與生命科學領域的成本削減措施相關。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 will now turn the call over to Tod.

現在，我將把電話轉給托德。

Thanks, Sarika. Good morning. Before we get started, on behalf of the Board of Directors and Donaldson Company, I want to thank Scott Robinson for his contributions over the past nine years. We are better as an organization because of him. He led us through several significant global initiatives, which undoubtedly resulted in improved financial performance and shareholder value creation.

謝謝，薩里卡。早安.在我們開始之前，我謹代表董事會和唐納森公司感謝斯科特羅賓遜 (Scott Robinson) 在過去九年中所做的貢獻。因為他，我們作為一個組織變得更好。他帶領我們實施了幾項重大的全球舉措，這無疑改善了財務表現並創造了股東價值。

He also built a world-class finance team, the best Donaldson Company has ever had. So Scott, enjoy your retirement. You've earned it, and we look forward to hearing stories about your continued adventures, hunting, fishing, traveling, and the like. With that, I also want to formally acknowledge Brad Pogalz, our current CFO. Many of you already know Brad from his former positions, including as Head of Investor Relations for Donaldson. He has been with the organization for nearly a decade, and I'm confident his experience and deep understanding of our business will enable his success in his new role.

他還建立了一支世界一流的財務團隊，這是唐納森公司有史以來最好的。所以斯科特，享受你的退休生活。您已經贏得了它，我們期待聽到您繼續冒險、狩獵、釣魚、旅行等的故事。在此，我還要正式感謝我們現任財務長 Brad Pogalz。你們中的許多人已經從布拉德以前的職位上認識了他，包括擔任唐納森投資者關係主管。他已在該組織工作了近十年，我相信他的經驗和對我們業務的深刻理解將使他在新職位上取得成功。

Now on to the first-quarter results. Our record first-quarter earnings mark a strong start to fiscal 2025. We increased sales in all three segments, gained share in key business units through our technology-led solutions, and maintained strong gross margins. Also, as part of our ongoing work to optimize and elevate the margin profile of the company, we took actions to focus our expense structure within the life sciences segment in response to continuing market pressures. This work is part of the footprint and cost optimization program we began last quarter. In summary, this quarter, we executed and laid the foundation for higher profitability.

現在我們來看看第一季的業績。我們創紀錄的第一季收益標誌著2025 財年的強勁開局。維持了強勁的毛利率。此外，作為我們持續優化和提高公司利潤狀況工作的一部分，我們採取行動將費用結構集中在生命科學領域，以應對持續的市場壓力。這項工作是我們在上個季度開始的足跡和成本優化計劃的一部分。綜上所述，本季我們執行並為更高的獲利能力奠定了基礎。

Now some highlights from each of our segments. In mobile solutions, we delivered strong sales growth and improved profitability with the backdrop of weak end market conditions including in agriculture and transportation. We achieved this through higher volumes and mix benefits from our aftermarket business. To support our growth, we opened a new distribution center in Olive Branch, Mississippi, strengthening our ability to deliver aftermarket products with speed and reliability to our customers. In Industrial Solutions, our Aerospace and Defense business performance continued to be excellent, driven by a notable increase in both new and replacement part sales as end market conditions remain strong.

現在我們每個部分的一些亮點。在行動解決方案方面，在農業和運輸等終端市場狀況疲軟的背景下，我們實現了強勁的銷售成長並提高了獲利能力。我們透過售後市場業務的更高銷售和綜合效益實現了這一目標。為了支持我們的發展，我們在密西西比州奧利佛布蘭奇開設了一個新的配送中心，增強了我們向客戶快速可靠地交付售後產品的能力。在工業解決方案方面，我們的航空航太和國防業務業績持續表現出色，這得益於終端市場狀況依然強勁，新零件和替換零件銷售顯著增長。

Connected Solutions sales, while still a small part of the industrial segment, rose significantly year over year as we increase the number of connected machines and connected customer facilities. In life sciences, sales increased double digits from share gains and improved market conditions in disk drive as well as strength in our food and beverage business. Early in the quarter, we expanded our presence in food and beverage markets with the launch of filtration services in France, Germany, and Austria. This expansion brings Donaldson's specialists and product and process integrity directly to customer locations. It also sets the stage for further expansion and share gains across Europe.

互聯解決方案的銷售額雖然仍佔工業領域的一小部分，但隨著我們增加互聯機器和互聯客戶設施的數量，同比大幅增長。在生命科學領域，由於份額成長、磁碟機市場狀況改善以及我們食品和飲料業務的實力，銷售額實現了兩位數成長。本季初，我們在法國、德國和奧地利推出了過濾服務，擴大了在食品和飲料市場的業務。此次擴張將唐納森的專家以及產品和流程的完整性直接帶到客戶所在地。它也為整個歐洲的進一步擴張和份額成長奠定了基礎。

With respect to our bioprocessing acquisitions, we are making progress in our work towards penetrating the market through product launches. Univercells Technologies launched the scale-X nexo bioreactor, a miniature fixed bed system designed for efficient cell culture process development across multiple modalities. Our solution reduces media and reagent consumption and makes biomanufacturing more cost effective.

關於我們的生物加工收購，我們正在透過產品發布滲透市場的工作中取得進展。 Univercells Technologies 推出了scale-X nexo 生物反應器，這是一種微型固定床系統，專為跨多種模式的高效細胞培養製程開發而設計。我們的解決方案減少了介質和試劑的消耗，並使生物製造更具成本效益。

Isolere Bio announced the availability of its research-grade IsoTag AAV reagent. This latest addition to the IsoTag reagent platform represents a significant leap forward in AAV purification for gene therapies, accelerating the purification process, enhancing yield, purity, and quality. Our manufacturing-grade reagent is on track to be available in calendar 2025.

Isolere Bio 宣布推出其研究級 IsoTag AAV 試劑。 IsoTag 試劑平台的最新成員代表了基因治療 AAV 純化的重大飛躍，加速了純化過程，並提高了產量、純度和品質。我們的製造級試劑預計將於 2025 年上市。

These technologies are just a few of the exciting solutions our bioprocessing businesses have been developing. We are optimistic about our growth prospects in these markets and remain focused on scaling our acquired businesses. Now I'll cover some consolidated company highlights.

這些技術只是我們的生物加工業務一直在開發的一些令人興奮的解決方案。我們對這些市場的成長前景感到樂觀，並繼續專注於擴大我們收購的業務。現在我將介紹一些綜合的公司亮點。

Sales of $900 million were up 6% year over year, driven primarily by volume growth. Pricing added 1%, and currency was a 1% tailwind. Adjusted EPS in the quarter was $0.83, up 11% versus prior year. Our operating margin improved versus 2024 through leverage on higher sales. We delivered our products and services to our customers, worked down our backlogs, and improved on-time delivery rates.

銷售額達 9 億美元，年增 6%，這主要是銷售成長的推動。定價增加了 1%，貨幣也帶來了 1% 的推動力。本季調整後每股收益為 0.83 美元，比去年同期成長 11%。透過提高銷售額，我們的營業利潤率比 2024 年有所提高。我們向客戶提供產品和服務，減少了積壓訂單，並提高了準時交貨率。

While supply chain constraints continue in some areas of our business, overall, we are benefiting from more normalized conditions. During the quarter, we continued to thoughtfully invest for future profitable growth through CapEx and R&D investments. Capital expenditures included investments in talent recruitment and retention, new products and technologies including in our life sciences segment, and capacity. Our R&D investments increased year over year, driven in large part by life sciences projects.

雖然我們業務的某些領域仍然存在供應鏈限制，但總體而言，我們正受益於更正常化的情況。本季度，我們繼續透過資本支出和研發投資，為未來的獲利成長進行深思熟慮的投資。資本支出包括對人才招募和留任、新產品和技術（包括生命科學領域）以及產能的投資。我們的研發投資逐年增加，這在很大程度上是由生命科學計畫所推動的。

Looking ahead, Donaldson's strong free cash flow generation and robust balance sheet puts us in a great position to continue to strategically invest and remain the leader in technology-led filtration for years to come. Now I'll provide some detail on first-quarter sales.

展望未來，唐納森強大的自由現金流產生和穩健的資產負債表使我們處於有利地位，可以繼續進行策略性投資，並在未來幾年保持技術主導過濾領域的領導者地位。現在我將提供有關第一季銷售的一些詳細資訊。

In mobile solutions, total sales were $572 million, a 6% increase versus 2024. Similar to recent quarters, intrasegment performance was mixed. Aftermarket sales of $451 million were up 11% year over year. Within aftermarket, OE channel sales were up mid-teens as we continue to cycle against destocking in the prior-year period. Beginning in the second quarter, we will compare against more normalized levels of demand a year ago.

在行動解決方案方面，總銷售額為 5.72 億美元，比 2024 年成長 6%。售後市場銷售額為 4.51 億美元，年增 11%。在售後市場，隨著我們繼續反對去年同期的去庫存，原廠通路銷售額成長了十幾歲。從第二季開始，我們將與一年前更正常化的需求水準進行比較。

Independent channel sales grew mid-single digits from market share gains and high vehicle utilization rates. Off-road sales of $89 million were down 6% due to sustained weak end market conditions largely in the global agriculture market. Sales in on-road were $32 million, down 15%, driven by lower equipment production predominantly in the US and China. Now I'll touch on China as a whole within mobile solutions.

由於市場份額的成長和車輛利用率的提高，獨立通路銷售額實現了中個位數成長。由於全球農業市場的終端市場狀況持續疲軟，越野銷售額為 8,900 萬美元，下降 6%。公路銷售額為 3,200 萬美元，下降 15%，主要是由於美國和中國的設備產量下降所致。現在我將談談整個中國的行動解決方案。

Sales increased 4% versus 2024 driven by double-digit growth in aftermarket. On the first-fit side, weak on-road sales were partially offset by off-road performance which turned positive after five quarters of declines. Over the long term, we are committed to growing our business in China, which, importantly, has been and will continue to be largely supported by our in-region manufacturing. Turning to the industrial solutions and life sciences segments.

在售後市場兩位數成長的推動下，銷售額較 2024 年成長 4%。在首次安裝方面，道路銷售疲軟被越野銷售業績部分抵消，越野銷售業績在五個季度下降後轉為正值。從長遠來看，我們致力於發展我們在中國的業務，重要的是，中國的業務已經並將繼續得到我們區內製造業的大力支持。轉向工業解決方案和生命科學領域。

Industrial sales increased 5% to $258 million. As noted earlier, aerospace and defense sales had very strong growth and rose 27%. Industrial filtration solutions or IFS sales grew 1% to $212 million, driven by power generation project timing. Life sciences sales were $70 million, up 17% year over year. As previously mentioned, disk drive and food and beverage sales were the drivers. Overall, I am pleased with our first-quarter results. This year, we expect once again to deliver value to our shareholders through record fiscal 2025 sales and earnings.

工業銷售額成長 5%，達到 2.58 億美元。如前所述，航空航太和國防銷售成長非常強勁，成長了 27%。受發電專案時機的推動，工業過濾解決方案或 IFS 銷售額成長 1%，達到 2.12 億美元。生命科學銷售額為 7,000 萬美元，較去年同期成長 17%。如前所述，磁碟機和食品和飲料銷售是驅動因素。總的來說，我對我們第一季的業績感到滿意。今年，我們預計將透過創紀錄的 2025 財年銷售額和收益再次為股東創造價值。

Now I'll turn it over to Brad who will provide more details on the financials and our outlook for fiscal 2025. Brad?

現在我將把它交給布拉德，他將提供有關財務狀況和我們對 2025 財年展望的更多詳細信息。

Thanks, Tod. Good morning, everyone. Before discussing our first-quarter results, I want to take a moment to thank Scott for his leadership and the smooth transition over the past several weeks. I'm excited for the opportunity to lead the finance and IT functions at Donaldson and to build upon all the great work that has been done. Now on to results for the quarter and our outlook for the full year.

謝謝，托德。大家早安。在討論我們第一季的業績之前，我想花點時間感謝斯科特的領導和過去幾週的順利過渡。我很高興有機會領導唐納森的財務和 IT 部門，並在已經完成的所有出色工作的基礎上再接再厲。現在談談本季的業績和我們對全年的展望。

Note that my profit comments will exclude the impact of the restructuring charges Sarika referenced earlier. First-quarter total company sales were up 6% versus 2024. Operating margin was up 20 basis points, and EPS of $0.83 increased 11% year over year. Gross margin of 35.6% was flat to the prior year. Benefits from select input cost deflation were offset by increased costs including investments in manufacturing, efficiency, and distribution which allow us to better serve our customers, and we also had higher labor costs.

請注意，我的利潤評論將排除薩里卡之前提到的重組費用的影響。第一季公司總銷售額比 2024 年成長 6%。毛利率為 35.6%，與前一年持平。選擇投入成本通貨緊縮帶來的好處被成本增加所抵消，包括製造、效率和分銷方面的投資，這使我們能夠更好地服務客戶，而且我們的勞動力成本也更高。

Operating expense as a rate of sales was 20.7% compared with 20.8% a year ago. Leverage on higher sales was partially offset by an increase in people-related costs. This expense leverage increased operating margin to 14.9% from 14.7% in 2024. Now a few comments on segment profitability. Mobile solutions pretax profit margin was 18.3%, up 120 basis points year over year, driven by higher volume, favorable mix related to replacement part sales, and lower select input costs.

營業費用佔銷售額的比例為 20.7%，去年同期為 20.8%。銷售額增加的影響被人員相關成本的增加部分抵銷。這種費用槓桿將營業利潤率從 2024 年的 14.7% 提高到 14.9%。行動解決方案稅前利潤率為 18.3%，年增 120 個基點，這得益於銷量增加、與更換零件銷售相關的有利組合以及較低的精選投入成本。

Industrial solutions pretax profit margin was 15.9%, down 170 basis points due to a couple of things. We had increased costs including those related to our footprint optimization initiatives, combined with an unfavorable mix of sales. Importantly, our industrial backlogs remain high. As we work down our backlog through the balance of this year, we expect profitability to improve as we get leverage on higher sales. Life sciences had a pretax loss of approximately $5 million in the quarter, including a headwind from acquisitions as we continue to ramp those businesses up.

由於多種原因，工業解決方案稅前利潤率為 15.9%，下降 170 個基點。我們的成本增加了，包括與我們的足跡優化計劃相關的成本，加上不利的銷售組合。重要的是，我們的工業積壓仍然很高。隨著我們在今年餘下時間減少積壓訂單，我們預計獲利能力將隨著銷售額的增加而改善。本季生命科學業務的稅前虧損約為 500 萬美元，其中包括我們繼續擴大這些業務時收購帶來的阻力。

Pretax margin was a loss of 7.6% versus a loss of 7% a year ago. As Todd mentioned, we took actions this quarter to focus our expenses towards the top opportunities given the difficult market backdrop. There is no change in our commitment to expanding in life sciences, and we remain confident in our ability to win in this highly attractive market.

稅前利潤率虧損 7.6%，而一年前為虧損 7%。正如托德所提到的，鑑於困難的市場背景，我們本季採取了行動，將開支集中在最佳機會上。我們對生命科學領域擴張的承諾沒有改變，我們仍然對在這個極具吸引力的市場中獲勝的能力充滿信心。

Turning to a few balance sheet and cash flow highlights. First-quarter capital expenditures were $25 million. Cash conversion in the quarter was 47%, in line with our expectations. And in terms of other capital deployment, we expanded our reach within the life sciences market through a $71 million investment that got us a 49% stake in Medica SpA.

轉向一些資產負債表和現金流亮點。第一季資本支出為 2500 萬美元。本季現金轉換率為 47%，符合我們的預期。在其他資本部署方面，我們透過投資 7,100 萬美元擴大了在生命科學市場的影響力，獲得了 Medica SpA 49% 的股份。

We also returned approximately $107 million to shareholders inclusive of $32 million in dividends and $75 million in share repurchase. Our strong cash flow generation and disciplined capital deployment allows us to maintain a healthy balance sheet, evidenced by our net debt-to-EBITDA ratio of 0.6 times.

我們也向股東返還了約 1.07 億美元，其中包括 3,200 萬美元的股利和 7,500 萬美元的股票回購。我們強大的現金流量產生和嚴格的資本配置使我們能夠保持健康的資產負債表，淨債務與 EBITDA 比率為 0.6 倍就證明了這一點。

Now our fiscal '25 outlook, first on sales. We continue to expect full-year total sales to increase between 2% and 6%, which includes a pricing benefit of approximately 1%. For mobile solutions, we're forecasting sales between flat and up 4%, consistent with previous expectations. Off-road sales are projected to be up low single digits due to market share gains, partially offset by depressed end market conditions, particularly in agriculture. On-road sales are forecast down low double digits due to weak global truck production.

現在我們的 25 財年展望，首先是銷售。我們繼續預計全年總銷售額將成長 2% 至 6%，其中定價效益約為 1%。對於行動解決方案，我們預測銷售額將持平至成長 4%，與先前的預期一致。由於市場份額的成長，越野銷售量預計將成長低個位數，但部分被終端市場狀況（尤其是農業領域）的低迷所抵消。由於全球卡車產量疲軟，公路銷售量預計將下降兩位數。

Aftermarket sales are expected to be up low single digits versus the prior year, driven by market share gains and strong vehicle utilization. In industrial solution, sales are projected to increase between 4% and 8%, also in line with our previous guidance. IFS sales are forecast to grow high single digits with strength across most businesses, including dust collection, industrial hydraulics, and industrial gases. Aerospace and defense sales are projected to be flat after lapping very strong comps in 2024.

在市場佔有率成長和強勁的車輛利用率的推動下，售後市場銷售額預計將比上年增長低個位數。在工業解決方案方面，銷售額預計將成長 4% 至 8%，也符合我們先前的指導。 IFS 的銷售額預計將出現高個位數成長，並且在大多數業務中都表現強勁，包括除塵、工業液壓和工業氣體。在 2024 年取得非常強勁的業績後，航空航太和國防銷售預計將持平。

For life sciences, our sales outlook is also unchanged. We're forecasting low double-digit growth driven by increases in our larger businesses including disk drive and food and beverage. Given our segment growth expectations, combined with our commitment to growing these businesses through targeted strategic investments, we continue to expect the life sciences full-year pretax profit will be about breakeven.

對於生命科學，我們的銷售前景也沒有改變。我們預計，由於磁碟機、食品和飲料等大型業務的成長，我們將實現兩位數的低成長。考慮到我們的細分市場成長預期，再加上我們致力於透過有針對性的策略性投資來發展這些業務，我們仍然預計生命科學全年稅前利潤將達到收支平衡。

Total company operating margin expectations are unchanged and within a range of 15.3% and 15.9%. The midpoint of this range represents a 20-basis-point increase from the prior year, a record for Donaldson, and a return of value to shareholders through higher levels of profitability on higher sales. In terms of adjusted EPS, we are reaffirming our guidance range of $3.56 to $3.72, up from $3.42 in fiscal 2024.

公司總營業利潤率預期維持不變，維持在 15.3% 至 15.9% 的範圍內。該範圍的中點代表比上一年增長了 20 個基點，創下了唐納森的記錄，並通過更高的銷售額帶來更高的盈利水平為股東帶來了價值回報。就調整後每股收益而言，我們重申 3.56 美元至 3.72 美元的指導範圍，高於 2024 財年的 3.42 美元。

Now on to the balance sheet and cash flow outlook. Our capital expenditures forecast is $85 million to $105 million and is weighted towards growth initiatives, including capacity and new products and technologies. Cash conversion is expected to be in the range of 85% to 95%, in line with historical averages. With respect to capital deployment, our priorities continue to be: First, investing to grow the company, organically, as I just outlined, and inorganically through strategic M&A.

現在談談資產負債表和現金流前景。我們的資本支出預測為 8,500 萬至 1.05 億美元，重點在於成長計劃，包括產能以及新產品和技術。現金轉換率預計在 85% 至 95% 之間，與歷史平均值一致。在資本部署方面，我們的優先事項仍然是：首先，正如我剛才概述的那樣，透過有機投資來發展公司，並透過策略併購進行無機投資。

Second, dividends. Calendar 2024 will mark Donaldson's 69th consecutive year of paying a quarterly cash dividend and the 29th year in a row of annual dividend increases. We are proud to be a part of the S&P High-Yield Dividend Aristocrat Index, and we expect to maintain our membership.

第二，股息。 2024 年將是唐納森連續第 69 年支付季度現金股息，也是連續第 29 年增加年度股息。我們很自豪能夠成為標準普爾高收益股息貴族指數的一部分，並且我們希望保持我們的會員資格。

Third and lastly, share repurchase. This year, we expect to repurchase between 2% and 3% of outstanding shares. Overall, we are in a strong position to deliver our full-year 2025 financial and strategic objectives.

第三，也是最後一點，股票回購。今年，我們預計將回購 2% 至 3% 的已發行股票。整體而言，我們有能力實現 2025 年全年財務和策略目標。

Now I'll turn the call back to Tod.

現在我將把電話轉回托德。

Thanks, Brad. When we completed the organizational redesign of Donaldson Company two years ago, we did so to better serve our end market customers. The intent was to enable a more efficient deployment of resources and to strengthen commercial execution. Our results are proof of our success. We have gained share in several businesses including mobile solutions aftermarket, industrial dust collection, aerospace and defense, and disk drive.

謝謝，布拉德。兩年前，當我們完成唐納森公司的組織結構重新設計時，我們這樣做是為了更好地服務我們的終端市場客戶。目的是為了更有效地部署資源並加強商業執行力。我們的結果證明了我們的成功。我們在行動解決方案售後市場、工業除塵、航空航太和國防以及磁碟機等多個業務領域中獲得了份額。

Through our filtration technology expertise, we have expanded our addressable market and grown a diversified portfolio of businesses with strong long-term fundamentals. This has allowed us to withstand pockets of market weakness and deliver record earnings to our shareholders. Now we're focused on building on this success. While we continue to optimize our expense base in response to macro conditions, we are intent on capitalizing on our growth potential through impactful strategic investments in all three of our segments.

憑藉我們的過濾技術專業知識，我們擴大了潛在市場，並發展了具有強大長期基礎的多元化業務組合。這使我們能夠抵禦市場疲軟的影響，並為股東帶來創紀錄的收益。現在我們專注於在這項成功的基礎上再接再厲。在我們繼續優化支出基礎以應對宏觀環境的同時，我們致力於透過對所有三個細分市場進行有影響力的策略投資來充分利用我們的成長潛力。

In mobile, our teams are focusing on building our alternative power solutions business. We are enablers of a greener and more efficient modern economy and are committed to helping our customers achieve their sustainability goals through advanced filtration. In industrial, connectivity and services will support future growth. We are strengthening customer relationships by providing smart, connected solutions that provide real-time performance information, reducing equipment downtime and decreasing total cost of ownership including maintenance. In life sciences, we are targeting investments in the scaling of our bioprocessing businesses and strengthening our ability to gain share in businesses like food and beverage.

在行動領域，我們的團隊專注於打造我們的替代電源解決方案業務。我們是更綠色、更有效率的現代經濟的推動者，並致力於幫助我們的客戶透過先進的過濾實現其永續發展目標。在工業領域，互聯互通和服務將支持未來的成長。我們透過提供即時效能資訊的智慧連網解決方案來加強客戶關係，減少設備停機時間並降低包括維護在內的總擁有成本。在生命科學領域，我們的投資目標是擴大生物加工業務規模，並增強我們在食品和飲料等業務中獲得份額的能力。

All of this is underpinned by the talent and fortitude of the Donaldson team, which, combined with our balanced growth strategy, position us well to deliver on our fiscal 2026 financial targets.

所有這一切都以唐納森團隊的才華和毅力為基礎，再加上我們的平衡成長策略，使我們能夠很好地實現 2026 財年的財務目標。

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) Angel Castillo, Morgan Stanley.

（操作員指示）Angel Castillo，摩根士丹利。

Congrats on another strong quarter here. Just wanted to touch base on maybe just to start on the free cash flow conversion. You mentioned that that's kind of in line with your expectations. But can you just give us a little bit more color on maybe the 47% conversion and just as you think about -- it seems like it was maybe more kind of working capital, just kind of those drivers and maybe how you get back to that 85% to 95% for the year.

祝賀又一個強勁的季度。只是想談談也許只是為了開始自由現金流轉換。你提到這有點符合你的期望。但你能給我們更多關於 47% 轉換率的資訊嗎？ 。

Yes, you're right. It's about working capital investments. And as Tod and I will touch on a little bit, investments, especially in inventory to get on-time deliveries in good shape and make sure we're delivering for the customers. So that's really the story. And then it just sort of cascades through the year as we expect more sales in the build and the typical stronger second half and more working -- better use of working cap as we go through the year.

是的，你說得對。這是關於營運資本投資。托德和我將談一點投資，特別是在庫存方面的投資，以確保按時交貨並確保我們為客戶提供服務。這就是故事的真相。然後，它將在一年中呈級聯式增長，因為我們預計建築銷量會增加，下半年會更強勁，工作量也會更大——在這一年中，我們會更好地利用工作上限。

Okay. That's helpful. And then on life sciences, I was wondering if you could break out a little bit more. Just remind us how much disk drive is? And likewise, maybe how much FMBs, particularly as you think about the international expansion if you could provide more color on that. And then just the last piece on the underlying life sciences vertical as well, how much each of those makes up for fiscal year '25.

好的。這很有幫助。然後在生命科學方面，我想知道你是否可以再突破一點。只是提醒我們磁碟機有多大？同樣，也許有多少 FMB，特別是當你考慮國際擴張時，如果你能提供更多的資訊的話。接著是關於基礎生命科學垂直領域的最後一篇文章，其中每一項佔 25 財年的比重。

We typically don't break out the details on the specific businesses, but I would say that the thing to keep in mind with disk drive is remember about 1.5 years ago, we created off the bottom. That market collapsed, which is very well documented publicly created a big pressure on our businesses. And so the growth rates and the growth this year are just continuation of that, along with some share gains there.

我們通常不會透露具體業務的細節，但我想說的是，關於磁碟機要記住的事情是記住大約 1.5 年前，我們是從底層開始創建的。這個市場崩潰了，這給我們的業務帶來了巨大的壓力，這是有據可查的公開記錄。因此，今年的成長率和成長只是這種情況的延續，還有一些份額的成長。

Yeah, just maybe a little bit more. It's just a [renormalization] of the overall end market within disk drive is what's taking place.

是的，只是可能多一點。這只是磁碟機內整體終端市場的[重新規範化]正在發生的事情。

Bryan Blair, Oppenheimer.

布萊恩布萊爾，奧本海默。

Scott, thank you for all your help over the years. It has been a pleasure. Brad, obviously, congrats on the promotion, well deserved.

斯科特，感謝您多年來的幫助。這是一種樂趣。布拉德，顯然，恭喜你升職，他當之無愧。

I wanted to level set a little bit on mobile, aftermarket results remain encouraging there. We're still lapping or we're lapping OE channel destocking from last year. Was that the source of all of the double-digit growth on that side? And on independent channel, is it strictly share gains that continues to drive growth there? And what are you contemplating on that front in the reiterated guidance?

我想在行動裝置上進行一些水平設置，售後市場結果仍然令人鼓舞。我們仍在研磨，或者我們正在研磨去年的原廠通路庫存。這是該方面所有兩位數成長的來源嗎？在獨立通路上，是嚴格的股票收益繼續推動那裡的成長嗎？您在重申的指導下對此有何考慮？

Yeah, Bryan, this is Tod. So when you look at our aftermarket performance, the big story is share gains. It's share gains with a large customer that we talked about NAPA before. It's also share gains across the independent channel. It's a slight lapping of the destocking on the OE side and returning back to normal pull-through levels, let's say, but the story within our aftermarket organization is share gains, and they're pretty broad as evidenced by almost double-digit growth across all regions of the world.

是的，布萊恩，這是托德。因此，當你觀察我們的售後市場表現時，你會發現最重要的是份額成長。我們之前講的NAPA就是與大客戶的分享收益。它還透過獨立管道分享收益。可以說，這是原始設備方面去庫存的輕微放緩，並恢復到正常的拉動水平，但我們的售後市場組織內部的故事是股票收益，而且它們相當廣泛，正如幾乎兩位數的增長所證明的那樣世界所有地區。

I appreciate the color. And on price cost, sorry if I missed the detail, how did that shake out in Q1 and assuming the 1% price realization that you've guided current visibility on costs. How is your team thinking about price cost impact and cadence over the coming quarters?

我很欣賞它的顏色。關於價格成本，抱歉，如果我錯過了細節，那麼第一季的情況是如何變化的，並假設您指導了當前成本可見度的 1% 價格實現。您的團隊如何考慮未來幾季的價格成本影響和節奏？

So price cost, you pointed out it was about 1% in the quarter. The thing to keep in mind is pricing it is a much more normal level now. This is typically what we'd expect is in that low single-digit range. And we would see that for the rest of the year, about 1% in the quarter. We guided to 1% for the full year. So that averages out pretty similarly.

因此，您指出本季的價格成本約為 1%。需要記住的是，現在的定價已經是一個更正常的水平。這通常是我們所期望的低個位數範圍。我們會看到，在今年剩餘時間裡，這一季度的成長率約為 1%。我們全年指導為 1%。所以平均值非常相似。

The point on cost is it's still a mixed bag. Some are up, some are down. Labor is up, certain input costs are up, certain input costs are down. So I would say from our side, the teams are working really hard to balance that. And obviously, we want good relationships with our customers, too. So that's something we have to take into the equation. But for us, the way we sit right now, it's -- we think it's pretty well balanced.

成本問題在於它仍然是一個混合體。有的上漲，有的下跌。勞動增加，某些投入成本上升，某些投入成本下降。所以我想說，從我們的角度來看，團隊正在努力平衡這一點。顯然，我們也希望與客戶建立良好的關係。所以這是我們必須考慮的事情。但對我們來說，我們現在的坐姿，我們認為它非常平衡。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

Just a couple of questions. I know, Tod, you touched on it a little bit, I think, but can you elaborate on how you're thinking about and what you're seeing from your customers and the environment post-election? You mentioned that maybe there is some power project delays.

只是幾個問題。我知道，托德，我想你稍微談到了這一點，但是你能詳細說明一下你是如何思考的，以及你從客戶和選舉後的環境中看到了什麼嗎？您提到可能會有一些電力項目延遲。

And I was wondering, have there been other challenges in the business leading up to the election or project delays that you're seeing that you think might get released now and just the overall environment? And then any concerns you have? Or how are you thinking about the tariff situation or potential situation?

我想知道，在選舉或專案延遲之前，您認為現在可能會釋放的業務中是否還有其他挑戰，以及整體環境？那麼您還有什麼顧慮嗎？或者您如何看待關稅情況或潛在情況？

Yeah, Brian. So when you really look at the macro across the company and the overall broad-based portfolio of businesses that we have, the election really normalizes, if you will. You get some positives in the power generation business potentially. Of course, based upon incoming administration's position relative to that. We have some potential risks in the sense of tariffs.

是的，布萊恩。因此，當你真正審視整個公司的宏觀情況以及我們擁有的整體廣泛的業務組合時，如果你願意的話，選舉確實正常化了。您可能會在發電業務中獲得一些積極的成果。當然，這取決於即將上任的政府的相對立場。我們在關稅方面存在一些潛在風險。

But I do want to mention that 75% of Donaldson's manufactured product to customers are manufactured within region to support that region. So we do not cross region a whole lot. And when we do, the US remains as Donaldson Company -- for Donaldson Company, a net exporter. So the tariff story for us is really more of a, should they go within region, North and South Mexico and Canada, clearly we would feel some pressures there. It's just uncertain what's going to happen.

但我確實想提一下，唐納森向客戶提供的製造產品中有 75% 是在該地區生產的，以支持該地區。所以我們不會經常跨地區。當我們這樣做時，美國仍然是唐納森公司——唐納森公司，一個淨出口商。因此，對我們來說，關稅的故事實際上更多的是，如果它們進入墨西哥北部、南部和加拿大地區，顯然我們會在那裡感受到一些壓力。只是不確定會發生什麼事。

I think the bigger story for us would be more what happened in the raw materials sector in the last Trump administration. They really hit tariffs on steel, and steel is our number one commodity used. And therefore, that's when we really started to feel things. But overall, as the manufacturing sector goes and how Donaldson supplies its customers, we're pretty comfortable there.

我認為對我們來說更重要的故事更多的是上屆川普政府原料產業發生的事情。他們確實對鋼鐵徵收了關稅，而鋼鐵是我們使用的第一大商品。因此，那是我們真正開始感受到事物的時候。但總體而言，隨著製造業的發展以及唐納森向客戶提供產品的方式，我們對此感到非常滿意。

And we would have some opportunities relative to manufacturing expansion, relative to power generation expansion, and just generalized improved economy across the US clearly would give us a nice bump as well.

我們將在製造業擴張、發電擴張方面獲得一些機會，而美國各地經濟的普遍改善顯然也將為我們帶來良好的推動。

And then just on the IFS business, you mentioned -- again, you mentioned this power project timing. You've got a up 1% result for this quarter, but up high single digit forecast for the full year. Can you just give us a little confidence or a window into what you're seeing for the back half of the year, maybe this project that was delayed is going to hit, et cetera?

然後就 IFS 業務而言，您再次提到了這個電力項目的時間表。本季的業績成長了 1%，但全年的預測卻成長了個位數。您能否給我們一點信心，或者給我們一個窗口，讓我們了解您對今年下半年的情況，也許這個被推遲的項目將會成功，等等？

Yeah. It's just timing. That business is always -- it always has timing hanging over it. The projects just float on delivery from one quarter to the next. But at the macro, as we see relative to our backlogs, in that business are strong. They clearly support our forecast. There's potential upside there.

是的。這只是時機。這項業務總是——它總是有時間限制。這些項目只是在一個季度到下一個季度交付時浮動。但從宏觀角度來看，正如我們所看到的，相對於我們的積壓訂單而言，該業務是強勁的。他們顯然支持我們的預測。那裡有潛在的上升空間。

We're already filling in some of the backlog for next fiscal year. It's a pretty solid business cycle in power generation at this point.

我們已經在填補下一財年的一些積壓訂單。目前，發電業處於相當穩定的商業週期。

I'll just add one thing that's a bit more of the math on IFS specifically. Unlike most of the rest of the company, IFS toughest comp is actually in the first quarter of last year, whereas the rest of the company, this is one of our easier comps. IFS builds as a result of that, too. So just keep that in mind, please.

我將添加一件事，具體是關於 IFS 的更多數學知識。與公司其他大多數公司不同，IFS 最困難的比較實際上是在去年第一季度，而公司其他公司的這是我們較容易的比較之一。 IFS 也是由此建構出來的。所以請記住這一點。

Laurence Alexander, Jefferies.

勞倫斯·亞歷山大，杰弗里斯。

This is Dan Rizzo on for Laurence. You mentioned restructuring and reducing costs within life sciences. I was wondering where we are in terms of which inning -- I mean, is that going to continue through the end of the year? When should we expect, I mean, that business to be rightsized?

我是勞倫斯的丹·里佐。您提到了生命科學領域的重組和降低成本。我想知道我們在哪一局方面處於什麼位置——我的意思是，這種情況會持續到今年年底嗎？我的意思是，我們什麼時候應該期待該業務的規模調整？

Yes. So where we are within the cycle of that is that the macro of the life sciences businesses we've been talking about, clearly, the end market conditions within the life sciences have really met with some headwinds, larger CapEx-based projects. So what we would call upstream of the overall bioprocessing cycle has really slowed. And then the downstream products have really -- those projects have elongated. And as typical in a Donaldson business, when, say, a mobile solutions project elongates, it will slip by one quarter or two, but a life sciences project slips by one year and sometimes two.

是的。因此，我們所處的周期是我們一直在談論的生命科學業務的宏觀情況，顯然，生命科學領域的終端市場狀況確實遇到了一些阻力，即基於資本支出的大型專案。因此，我們所說的整個生物加工週期的上游確實已經放緩。然後下游產品確實——這些項目已經延長了。正如唐納森業務中的典型情況一樣，當行動解決方案專案延長時，它會推遲四分之一或兩個季度，但生命科學專案會推遲一年，有時甚至兩年。

And so consequently, we round all that up and took a solid look at where we are and where the market condition is, and we adjust it. At this point, we have made the adjustments that we have planned. We continue to look at standard work across every business inside Donaldson Company where we are, meet the end market conditions as well. And should there be further necessary actions, clearly, we'll take them, but we feel like at this point in time, we're in a good spot to execute longer term our strategic plan and deliver on our guide which is to return the business to flat profitability within the fiscal year.

因此，我們將所有這些匯總起來，仔細研究我們所處的位置以及市場狀況，然後進行調整。至此，我們已經按照計劃進行了調整。我們繼續關注唐納森公司內部每項業務的標準工作，以滿足最終市場條件。如果有進一步的必要行動，顯然，我們會採取這些行動，但我們覺得在此時此刻，我們處於執行長期戰略計劃並實現我們的指導方針的良好位置，即返回業務在本財年內盈利能力持平。

Okay. And then within -- sorry, within bioprocessing, I mean, once you restructure, are you going to need any macro improvement to get beyond returning to just basic profitability? Can you grow from a smaller footprint if nothing really gets better for the next three to five years?

好的。然後在內部——抱歉，在生物加工內部，我的意思是，一旦你進行重組，你是否需要任何宏觀改進才能不僅僅是恢復基本的盈利能力？如果未來三到五年內沒有什麼真正好轉的話，你能從較小的足跡中成長嗎？

Yes, we can. What we've really done is we had a broader base list of projects that we were working on in order to ready market. And so we just focus those projects, if you will. We really sharpened our pencil relative to our choices because the market appears to be a little bit slow to take on some of those new opportunities that we were starting to press so we backed down away from those. We elongated those out and said, hey, look, we'll put those on the to do list than the now list and we really focused our attention on what we can deliver quicker in order to monetize.

是的，我們可以。我們真正所做的是，我們擁有更廣泛的基礎項目清單，以便為市場做好準備。因此，如果您願意的話，我們只關注這些項目。相對於我們的選擇，我們確實削尖了鉛筆，因為市場似乎有點緩慢地接受我們開始推動的一些新機會，所以我們放棄了這些機會。我們延長了這些內容並說，嘿，看，我們會將這些內容放在待辦事項清單中，而不是現在的清單中，我們真正將注意力集中在我們可以更快地交付以實現貨幣化的內容上。

Okay. And then finally, last question. You mentioned that you saw a little bit of acceleration in off-road after five quarters of things decline. Do you think we've reached an inflection point where things should start to get better? Or is it really too soon to tell if there is actually a real rebound there?

好的。最後，最後一個問題。您提到，在經歷了五個季度的下滑之後，您看到了越野方面的一些加速。您認為我們已經到達了事情應該開始好轉的轉折點嗎？或者現在判斷是否真的出現反彈真的還為時過早嗎？

Yes, tough to say. We're just kind of aggregating all the inputs across the customer base at this point in time. But it is tough to say on that first-fit side. We follow all the agriculture news which continues to get a little bit tougher. The construction news is a little bit more muted, if you will, but one of the other stories that we have, obviously a positive one, is China in the quarter.

是的，很難說。我們只是及時匯總客戶群的所有輸入。但很難說第一適應方面。我們關注所有農業新聞，這些新聞繼續變得更加艱難。如果你願意的話，建築業的消息要低調一些，但我們的其他報道之一，顯然是積極的報道，是本季度的中國。

But China didn't feel like an inflection point where we're drawing a line forward. It just felt like a moment. And so consequently, we'll just keep our eye on that. It's also too soon to call anything on China. So there's just a bowl of uncertainty out there, and we'll just keep our eyes on it.

但中國並不像是我們正在劃定前進路線的轉折點。感覺就像是一瞬間。因此，我們將密切關注這一點。現在對中國做出任何評價還為時過早。因此，存在著很大的不確定性，我們將密切關注它。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

This is Adam Farley on for Nathan. I wanted to follow up on the aftermarket question. How should we think about the underlying demand level there adjusting for the destocking comps and the market share gains? Is it steady Eddie? Or are you seeing any acceleration there?

我是亞當法利 (Adam Farley) 替補內森 (Nathan)。我想跟進售後問題。我們應該如何考慮根據去庫存比較和市佔率成長調整的潛在需求水準？艾迪穩定嗎？或者你看到那裡有任何加速嗎？

Yeah. So if you really take a look at overall vehicle utilization, it's steady. There's not really an expansion, if you will, taking place which really speaks to my earlier comment, that's a story of our quarter and the story of what's taking place in mobile solutions aftermarket Donaldson Company is share gains. We're executing extremely well. We're making the necessary investments such as standing up new distribution centers to take care of our customers extremely well.

是的。因此，如果你真正觀察車輛的整體利用率，你會發現它是穩定的。如果你願意的話，並沒有真正發生擴張，這確實符合我之前的評論，這是我們季度的故事，行動解決方案售後市場唐納森公司正在發生的故事是股票收益。我們執行得非常好。我們正在進行必要的投資，例如建立新的配送中心，以便更好地照顧我們的客戶。

And as a direct result, we're continuing to gain share. Should there be more of an economic uptick, clearly, we're positioned well to take advantage of that upcycle. But in the meantime, we'll just continue to win share and move forward. I do -- maybe this is a good moment to suggest that when you look at our mobile solutions aftermarket business, and as we enter Q2, November, December, and January, that's typically our toughest quarter, right? And so -- because you're not planting, and they're not harvesting, and there's not a whole bunch of construction projects going on.

作為直接結果，我們繼續獲得份額。顯然，如果經濟出現更多回升，我們就能夠充分利用這個上升週期。但與此同時，我們將繼續贏得份額並繼續前進。我確實如此——也許這是一個好時機，當您查看我們的行動解決方案售後業務時，當我們進入第二季度、11 月、12 月和1 月時，這通常是我們最艱難的季度，對嗎？所以——因為你沒有播種，他們也沒有收穫，也沒有大量的建設項目正在進行中。

So I do want to remind you, as you build your models out that Q2 is a little bit softer, typically, historically for Donaldson Company, but we do still expect to deliver positive things.

因此，我確實想提醒您，當您建立模型時，從歷史上看，唐納森公司的第二季度通常會稍微疲軟，但我們仍然希望提供積極的成果。

Rob Mason, Baird.

羅布梅森，貝爾德。

Maybe, Tod, just to follow up on your last comment. Are you still thinking about the year breaking down first half versus second half, 48-52, where does does that percentage change any?

托德，也許只是為了跟進你最後的評論。你還在思考今年上半年與下半年的對比，48-52，這個百分比有什麼變化嗎？

No, it hasn't changed. We said last time closer to 49-51. We're actually right of us in the middle between 48 and 49 if you build your models out, so it could swing a tenth or two-tenths and round down or up. So we're right there. And again, I do want, Rob, to do -- your model is exceptional. I do want to remind you that Q2 is typically because of holidays and such as you look to your 48%, 49%, that's usually the toughest Q of the year.

不，它沒有改變。我們上次說接近49-51。如果您建立模型，我們實際上處於 48 和 49 之間的中間位置，因此它可能會擺動十分之一或十分之二，並向下或向上舍入。所以我們就在那裡。羅布，我再次強調，你的模特兒非常出色。我確實想提醒您，第二季通常是因為假期，例如您看看 48%、49%，這通常是一年中最艱難的季度。

Yeah. Makes sense. You didn't -- of course, you didn't change your outlook for any of the segments. So including aerospace defense, you got off to a really good start.

是的。有道理。當然，您沒有改變對任何細分市場的看法。因此，包括航空航天防禦在內，你們有了一個非常好的開始。

I mean, is -- your guidance looks conservative based on the first quarter start, but do you have visibility just on shipment timing to support that? Or is this -- should we think there's potential upside to that aerospace defense?

我的意思是，根據第一季的開始，您的指導看起來很保守，但是您是否僅在發貨時間上有可見性來支持這一點？或者說，我們是否應該認為航空航太防禦有潛在的優勢？

Yeah. Thanks for the question. So we know that we have a strong first quarter. What the guidance really embraces is the fact that more than any other business inside Donaldson Company, we have supply chain bubbles there. Particularly, we have a couple of piece parts that are really holding back seven-figure projects to be delivered.

是的。謝謝你的提問。所以我們知道第一季表現強勁。該指南真正涵蓋的事實是，與唐納森公司內部的任何其他業務相比，我們存在的供應鏈泡沫更多。特別是，我們有幾個零件確實阻礙了七位數專案的交付。

And so should we be able to resolve those, there's clearly some upside, right? But right now, they are incredibly stubborn because we have been chasing them for over a year. And as you know, in aerospace and defense, when you want to recall and get a new supply, it's highly different than the other businesses that we have. And so that's why it has just been taken so long to try to drive down that supply chain challenge. But it does have upside should we be able to get the product in here.

那麼我們是否應該能夠解決這些問題，這顯然有一些好處，對吧？但現在，他們非常頑固，因為我們已經追他們一年多了。如您所知，在航空航天和國防領域，當您想要召回並獲得新的供應時，這與我們擁有的其他業務有很大不同。這就是為什麼花了這麼長時間才試圖減少供應鏈挑戰。但如果我們能夠將產品放在這裡，它確實有好處。

Rob, this is Brad. I'll just add on the cadence. Keep in mind, fourth quarter last year in this business was up around 40%. So there's clearly a comp story at the back end of last year. And part of that big jump was exactly what Tod just talked about.

羅布，這是布萊德。我只會添加節奏。請記住，去年第四季度該業務增長了 40% 左右。所以去年年底顯然有個比較故事。托德剛才談到的正是這一巨大飛躍的一部分。

Some of these parts as they come in, we'll sell it and send it as quickly as we can when we get the shipments from our suppliers.

其中一些零件進來後，我們會在收到供應商的貨物後儘快出售並發送。

Understood. Okay. That's helpful. And just last question. I'm curious, Medica was in the results this quarter. How did that influence the life science op profit? Was it a contributor, detractor to overall profit?

明白了。好的。這很有幫助。最後一個問題。我很好奇，Medica 出現在本季度的業績中。這對生命科學營運利潤有何影響？它是整體利潤的貢獻者還是損害者？

Yeah, it was neither of those. I mean, essentially, it was immaterial in the quarter, rounds to 0. The biggest thing in the quarter was the cash outflow that I mentioned in my remarks, $71 million for the 49% stake.

是的，兩者都不是。我的意思是，本質上，該季度的支出無關緊要，四捨五入為 0。

Well, congratulations to both Scott and you, Brad.

好吧，祝賀斯科特和你，布拉德。

And 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. We hope everyone had a nice holiday season, and we look forward to reporting our second-quarter fiscal 2025 results in February. Goodbye.

今天的電話會議到此結束。感謝所有參與的人。我們希望每個人都度過了一個愉快的假期，我們期待在 2 月報告 2025 財年第二季業績。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。