Donaldson Company Inc (DCI) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Christa, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson's second quarter fiscal year '25 earnings conference call and webcast. (Operator Instructions).

女士們、先生們，感謝你們的支持。我叫克里斯塔，今天我將擔任您的會議主持人。現在，我歡迎大家參加唐納森 25 財年第二季財報電話會議和網路廣播。（操作員指令）。

I would now like to turn the conference over to Sarika Dhadwal, Senior Director, Investor Relations and ESG. You may begin.

現在，我想將會議交給投資者關係和 ESG 高級總監 Sarika Dhadwal。你可以開始了。

Good morning. Thank you for joining Donaldson's second quarter fiscal 2025 earnings conference call. With me today are Tod Carpenter, Chairman, President, and CEO; and Brad Pogalz, Chief Financial Officer. This morning, Tod and Brad will provide a summary of our second quarter performance and our updated outlook for fiscal 2025.

早安.感謝您參加唐納森 2025 財年第二季財報電話會議。今天與我在一起的有董事長、總裁兼執行長 Tod Carpenter；以及財務長Brad Pogalz。今天上午，托德和布拉德將總結我們的第二季業績並更新 2025 財年的展望。

During today's call, we will discuss non-GAAP or adjusted results. For second quarter 2025 non-GAAP results exclude pretax restructuring charges of $2.2 million related to footprint optimization and cost reduction initiatives as well as $4.4 million of business development charges. A reconciliation of GAAP to non-GAAP metrics is provided within the schedules attached to this morning's press release.

在今天的電話會議中，我們將討論非公認會計準則或調整後的結果。2025 年第二季的非 GAAP 業績不包括與足跡優化和成本削減舉措相關的 220 萬美元的稅前重組費用以及 440 萬美元的業務發展費用。今天早上的新聞稿中附有 GAAP 指標與非 GAAP 指標的對帳表。

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. With that, I will now turn the call over to Tod.

此外，請記住，本次電話會議中所做的任何前瞻性陳述都存在風險和不確定性，這些風險和不確定性在我們的新聞稿和美國證券交易委員會文件中均有描述。說完這些，我現在將電話轉給托德。

Thanks, Sarika. Good morning, everyone. I am proud of what the Donaldson team accomplished this quarter through resilience and dedication. We delivered for our stakeholders. Total sales increased in constant currency and earnings rose at a faster pace, reflecting overall margin improvement.

謝謝，薩里卡。大家早安。我為唐納森團隊憑藉堅韌不拔和奉獻精神在本季度取得的成就感到自豪。我們為利害關係人提供了服務。以固定匯率計算，總銷售額增加且收益成長速度更快，反映出整體利潤率的提高。

We executed on what was in our control in light of macro headwinds. Our team navigated a choppy operating environment and with the benefits of our diversified portfolio of businesses delivered higher sales in key higher-margin businesses.

鑑於宏觀不利因素，我們執行了我們能控制的措施。我們的團隊在動盪的經營環境中前行，並藉助多元化業務組合的優勢，在關鍵的高利潤業務中實現了更高的銷售額。

We diligently managed cost and pricing and exercised strong expense discipline while still investing for the future. Now some highlights from each of our segments. In all three segments, sales were impacted by weak end market conditions, including in agriculture, transportation, industrial gases, dust collection and bioprocessing.

我們認真管理成本和定價，嚴格控制費用，同時為未來進行投資。現在讓我們來談談每個部分的一些亮點。在這三個領域，銷售都受到終端市場疲軟的影響，包括農業、運輸、工業氣體、除塵和生物加工領域。

In spite of that backdrop, in Mobile Solutions, sales grew in constant currency driven by solid aftermarket performance where we continue to gain share. Our recently opened distribution center in Olive Branch, Mississippi, is allowing us to deliver products with speed and reliability and our fill rates remain at almost 100%. We are also planning ahead and ensuring we are well positioned to address all future engine adoption scenarios with our alternative power solutions.

儘管如此，在行動解決方案領域，由於穩健的售後市場表現，我們的市佔率持續成長，銷售額以固定匯率計算仍實現成長。我們最近在密西西比州奧利佛布蘭奇開設的配送中心使我們能夠快速、可靠地交付產品，我們的填充率仍然保持在幾乎 100%。我們也在提前規劃並確保我們能夠利用替代電源解決方案很好地應對未來所有引擎採用情境。

In January, we announced a partnership with Daimler Truck North America on their hydrogen fuel cell project. Donaldson's advanced air filter technology will be featured in the next-generation Freightliner Super Truck 2 solidifying our position at the forefront of hydrogen fuel cell innovation.

今年 1 月，我們宣布與戴姆勒北美卡車公司就其氫燃料電池計畫建立合作關係。唐納森先進的空氣過濾技術將應用於下一代 Freightliner Super Truck 2，鞏固我們在氫燃料電池創新領域的領先地位。

In Industrial Solutions, our Aerospace and Defense business is outperforming our expectations. Demand for new equipment in commercial aerospace has been at record levels and defense orders and quoting activity are very strong.

在工業解決方案方面，我們的航空航太和國防業務表現超出了我們的預期。商業航空航太對新設備的需求一直處於創紀錄水平，國防訂單和報價活動非常強勁。

Overall, we continue to build our Industrial business through our create, connect, replace, service, business model, the number of connected machines and customer facilities is growing and both metrics were up double digits in the quarter. Our Services businesses are performing well, and our most recent acquisition, EasyFlow which expanded our capabilities and presence in the Southeast United States is outpacing our sales expectations.

總體而言，我們繼續透過創建、連接、替換、服務業務模式來打造我們的工業業務，連接機器和客戶設施的數量正在增長，並且本季度兩個指標都實現了兩位數的增長。我們的服務業務表現良好，我們最近收購的 EasyFlow 擴大了我們在美國東南部的能力和影響力，其銷售業績超出了我們的預期。

In Life Sciences, pretax profit margin improved sequentially and year-over-year. The cost reduction actions we implemented last quarter are taking hold and we are now leveraging with higher sales, and more focused cost structure.

在生命科學領域，稅前利潤率比上個季度和上年均有提高。我們在上個季度實施的成本削減措施正在產生效果，現在我們正在利用更高的銷售額和更集中的成本結構。

We are working to grow our high-margin legacy businesses, such as disk drive and food and beverage and scale our acquired businesses. In bioprocessing, early-stage capital spending is still constrained. However, our therapy pipeline remains solid, and we look forward to continuing to expand our presence.

我們正在努力發展我們的高利潤傳統業務，例如磁碟機和食品飲料，並擴大我們收購的業務。在生物加工領域，早期資本支出仍受到限制。然而，我們的治療管道依然穩固，我們期待繼續擴大我們的業務。

Now I'll cover some consolidated company highlights. Sales of $870 million decreased 1% year-over-year, driven by a 170 basis point negative impact from currency translation. Excluding currency, sales increased 1% with a pricing benefit of approximately 1%. Adjusted EPS in the quarter was $0.83, up roughly 3% versus prior year. Margins remained strong, including operating margin, which expanded year-over-year as a result of expense discipline.

現在我將介紹一些合併後公司的亮點。銷售額為 8.7 億美元，年減 1%，主要因為貨幣換算產生了 170 個基點的負面影響。除去匯率因素，銷售額成長了 1%，定價效益約 1%。本季調整後每股收益為 0.83 美元，較上年增長約 3%。利潤率依然強勁，包括營業利潤率，由於費用控制，營業利潤率較去年同期成長。

Our global operations teams in several cases, working through supply chain challenges delivered on our backlogs. We've maintained strong on-time delivery rates and focused on serving our customers. Importantly, while we tightly managed our expenses in the quarter, we did invest for the future, ensuring we maintain our leadership position in technology-led filtration.

我們的全球營運團隊在多個案例中努力克服供應鏈挑戰，完成我們的積壓訂單。我們一直保持著較高的準時交貨率並專注於服務我們的客戶。重要的是，雖然我們在本季度嚴格管理費用，但我們確實為未來進行了投資，確保我們在技術主導的過濾領域保持領先地位。

Capital expenditures included investments in capacity expansion and new products and technologies, R&D investments continued across all segments. We are committed to leveraging our robust free cash flow generation and strong balance sheet to continue targeted strategic investments, both organic and inorganic.

資本支出包括產能擴張、新產品和新技術的投資，所有部門的研發投資持續增加。我們致力於利用強勁的自由現金流和強勁的資產負債表來繼續進行有針對性的策略投資，包括有機和無機投資。

Now I'll provide some detail on second quarter sales. In Mobile Solutions, total sales were $548 million, down 1% versus 2024. Excluding currency, sales grew 1%. Aftermarket sales of $442 million were up 4% year-over-year, driven by low double-digit growth in the OE channel. OE demand was particularly strong this quarter and independent channel sales declined low single digits but were roughly flat on a constant currency basis.

現在我將提供一些有關第二季銷售的詳細資訊。在行動解決方案方面，總銷售額為 5.48 億美元，較 2024 年下降 1%。除去匯率因素，銷售額成長了 1%。售後市場銷售額達 4.42 億美元，年增 4%，這得益於 OE 通路的低兩位數成長。本季 OE 需求特別強勁，獨立通路銷售額下降個位數，但以固定匯率計算基本持平。

Importantly, independent channel sales strengthened as the quarter progressed. With respect to first-fit sales, off-road sales of $80 million were down 13% due to ongoing weakness in the agriculture market. On-Road sales of $25 million declined 24% driven by an exit from nonstrategic product sales and a decrease in global truck production.

重要的是，隨著季度的進展，獨立通路銷售不斷增強。就首次銷售而言，由於農業市場持續疲軟，越野車銷售額為 8,000 萬美元，下降了 13%。公路銷售額為 2,500 萬美元，下降 24%，原因是退出非策略性產品銷售和全球卡車產量下降。

Now on China. Mobile Solutions China sales increased 1% with aftermarket sales offsetting first-fit softness. Macro weakness continues in the region. However, we do believe we are near trough levels. We are also encouraged by market trends in off-road, including a recent large OEM program win and what we believe is a structural shift towards larger and more sophisticated equipment which bodes well for our technology-led products.

現在談談中國。行動解決方案中國區銷售額成長 1%，售後市場銷售抵銷了首次安裝銷售的疲軟。該地區宏觀經濟疲軟現象依然存在。然而，我們確實相信我們已接近低谷水平。越野市場的趨勢也令我們感到鼓舞，包括最近贏得的一項大型 OEM 項目，以及我們認為向更大、更複雜的設備的結構性轉變，這對我們的技術型產品來說是個好兆頭。

Turning to the Industrial Solutions and Life Sciences segments. Industrial sales decreased 4% to $254 million. Industrial Filtration Solutions, or IFS, sales decreased 8% to $208 million, driven by slower investments in CapEx-based businesses and power generation project timing. Aerospace and defense sales growth of 19% partially offset IFS weakness.

轉向工業解決方案和生命科學領域。工業銷售額下降 4% 至 2.54 億美元。工業過濾解決方案 (IFS) 的銷售額下降 8% 至 2.08 億美元，原因是資本支出型業務的投資放緩以及發電項目時間表放緩。航空航太和國防銷售額成長 19%，部分抵消了 IFS 的疲軟。

Life Sciences sales of $69 million grew 9% compared with the prior year due to ongoing strength in disk drive. Overall, I'm encouraged by the results we were able to deliver this quarter and confident in our ability to achieve record earnings in fiscal 2025. Now I will turn it over to Brad, who will provide more details on the financials. Brad?

由於磁碟機的持續強勁成長，生命科學業務的銷售額達 6,900 萬美元，比上年增長 9%。總的來說，我對本季所取得的業績感到鼓舞，並對我們有能力在 2025 財年實現創紀錄的收益充滿信心。現在我將把話題交給布拉德，他將提供有關財務的更多細節。布拉德？

Thanks, Tod. Good morning, everyone. Second quarter results reflect a team effort. Across the company, Donaldson colleagues banded together to prioritize opportunities and control we can, all while keeping an eye on the future by pushing forward our strategic initiatives. As I walk through some key points from the quarter, please keep in mind my profit comments will exclude the impact from the charges Sarika referenced earlier.

謝謝，托德。大家早安。第二季的業績反映了團隊的努力。在整個公司，唐納森的同事們齊心協力，優先考慮機會和控制力，同時透過推動我們的策略計畫來著眼於未來。當我回顧本季的一些關鍵點時，請記住我的利潤評論將排除 Sarika 之前提到的費用的影響。

At a high level, second quarter total sales were down about 1% versus 2024. Currency was a headwind of approximately 2% and pricing was a 1% benefit. Disciplined expense control drove operating margin up 40 basis points and EPS of $0.83 was 3% above last year.

從高點來看，第二季總銷售額較 2024 年下降約 1%。貨幣方面，逆風約佔2%，定價方面，則帶來1%的收益。嚴格的費用控制使營業利潤率上升了 40 個基點，每股收益達到 0.83 美元，比去年同期高出 3%。

Gross margin of 35.2% was flat to the prior year with an unfavorable sales mix being fully offset by select input cost inflation. Operating expense as a rate of sales was 20%, compared with 20.4% a year ago with this strong leverage driving operating margin up 40 basis points to 15.2%.

毛利率為 35.2%，與前一年持平，不利的銷售組合被部分投入成本上漲完全抵銷。營業費用佔銷售率為 20%，而一年前為 20.4%，強勁的槓桿作用推動營業利潤率上升 40 個基點，達到 15.2%。

In terms of segment profitability, Mobile Solutions pretax profit margin was 17.4%, down 60 basis points year-over-year driven primarily by an unfavorable sales mix and expense deleveraging. Similarly, expense deleveraging on softer sales brought the Industrial Solutions pretax margin down 190 basis points to 16.1%.

從分部獲利能力來看，行動解決方案稅前利潤率為17.4%，較上年同期下降60個基點，主要原因是銷售組合不利以及費用去槓桿。同樣，由於銷售疲軟導致費用去槓桿，工業解決方案稅前利潤率下降 190 個基點，至 16.1%。

As we mentioned last quarter, we expect industrial pretax profit margins to improve throughout the year, supported by the execution of our projects and backlog and leverage on higher sales. Life Sciences had a pretax loss of approximately $500,000 in the quarter, which is less than 1% as a rate of sales and significantly better than the prior year performance. The margin improvement was driven by cost optimization actions taken earlier this fiscal year, which were related to prioritization efforts, and we also benefited from leverage on higher sales.

正如我們上個季度所提到的，我們預計工業稅前利潤率將在全年改善，這得益於我們項目的執行和積壓訂單以及更高銷售額的槓桿作用。生命科學部門本季的稅前虧損約 50 萬美元，佔銷售率的 1% 以下，明顯優於去年同期的表現。利潤率的提高得益於本財年早些時候採取的成本優化行動，這些行動與優先排序工作有關，同時我們也受益於更高銷售額的槓桿作用。

Now our updated fiscal '25 outlook, first, on sales. We are forecasting full year total sales to be flat to up 4% versus the prior guidance of a 2% to 6% increase. Half of the change comes from an FX headwind, which is disproportionately weighted to the second half of the fiscal year. We also factored in the impact from softer-than-expected end markets, particularly in agriculture and some of our industrial and life sciences project-based businesses. We continue to expect a pricing benefit of approximately 1%.

現在我們更新 25 財年展望，首先是銷售方面。我們預測全年總銷售額將持平至成長 4%，而先前預期的成長幅度為 2% 至 6%。一半的變化源自外匯逆風，這對財年下半年的影響尤其嚴重。我們也考慮了終端市場疲軟的影響，特別是農業和一些基於工業和生命科學專案的業務。我們繼續預計定價效益約為 1%。

For Mobile Solutions, we're forecasting sales down 1% to up 3%, 100 basis points below our previous expectation driven by ongoing weakness in the agriculture market. As such, the only change we made to our mobile solutions forecast is an off-road where sales are now projected to be down mid-single digits versus our previous guidance of a low single-digit increase.

對於行動解決方案，我們預測銷售額將下降 1% 至成長 3%，比我們先前的預期低 100 個基點，因為農業市場持續疲軟。因此，我們對行動解決方案預測做出的唯一改變是越野車的銷量，目前預計其下降中個位數，而我們之前預測的是低個位數成長。

Our on-road forecast is unchanged at a low double-digit decrease due to a decline in global truck production. We continue to project growth in aftermarket with sales up low single digits stemming from strong demand in the OEM channel and market share gains in the independent channel.

由於全球卡車產量下降，我們的道路運輸預測保持不變，仍為低兩位數降幅。我們繼續預測售後市場將出現成長，銷售額將出現低個位數成長，這得益於 OEM 通路的強勁需求和獨立通路的市場份額成長。

In Industrial Solutions, sales are projected to increase between 1% and 5% versus an increase of 4% to 8% in our previous guidance. IFS sales are forecast to grow low single digits, down from our prior high single-digit expectation as market conditions have weakened and capital spending on new equipment in areas such as dust collection has slowed.

在工業解決方案方面，預計銷售額將成長 1% 至 5%，而我們先前預測的成長幅度為 4% 至 8%。由於市場條件轉弱，且除塵等領域新設備的資本支出放緩，預計 IFS 銷售額將成長低個位數，低於我們先前預期的高個位數。

Aerospace and defense sales are projected to increase in the high single digits, up from our previous flat guidance as robust end market conditions continue. For Life Sciences, we now project sales will increase in the high single-digit range compared with a low double-digit increase previously.

由於終端市場狀況持續強勁，航空航太和國防銷售額預計將從我們先前的持平預期中實現高個位數成長。對於生命科學領域，我們現在預期銷售額將以高個位數成長，而先前的成長幅度為低兩位數。

Growth in our larger businesses, disk drive and food and beverage is partially offset by ongoing weakness in bioprocessing. With respect to Life Sciences profitability, we continue to expect we'll be breakeven for the full year, reflecting modest profitability in the second half.

我們較大的業務、磁碟機以及食品和飲料的成長被生物加工的持續疲軟部分抵消。就生命科學的獲利能力而言，我們仍預期全年將達到收支平衡，反映出下半年的適度獲利。

On a consolidated profit basis, we plan to more than offset sales pressure with disciplined expense management. As such, we are increasing the midpoint of our operating margin guidance range by 20 basis points. bringing the full year forecast between 15.6% and 16%. The midpoint of this range is 15.8%, which is up 40 basis points from last year and clearly demonstrates our focus on expanding our margin profile.

在綜合利潤基礎上，我們計劃透過嚴格的費用管理來抵銷銷售壓力。因此，我們將營業利潤率指導範圍的中間點提高了 20 個基點。因此全年預期成長率將達到 15.6% 至 16% 之間。該範圍的中間值為 15.8%，比去年上漲了 40 個基點，清楚地表明了我們專注於擴大利潤率。

In terms of adjusted EPS, we are tightening our guidance range to between $3.60 and $3.68 per share. The midpoint of this range is in line with our previous guidance and represents a 6% year-over-year increase.

就調整後的每股盈餘而言，我們將指引範圍收窄至每股 3.60 美元至 3.68 美元之間。該範圍的中點與我們先前的指導一致，年增 6%。

Before moving to the cash flow forecast, I want to touch on the topic of tariffs. The situation is dynamic, and there is still a high level of uncertainty and ambiguity regarding global tariff policies. Because of that, our guidance does not include any adjustments related to newly announced tariffs, but I want to stress that we are prepared to act. I'll talk more about our plans in a moment. But first, I want to make a couple of points about how our operating structure creates some natural hedging.

在轉到現金流預測之前，我想談談關稅問題。情況是動態的，全球關稅政策仍然存在高度的不確定性和模糊性。因此，我們的指引不包括與新宣布的關稅相關的任何調整，但我想強調的是，我們已準備好採取行動。稍後我將詳細介紹我們的計劃。但首先，我想就我們的營運結構如何創造一些自然的對沖談幾點看法。

To start with, the US is a net exporter of products. Next, we have often talked about our region to support region manufacturing and distribution network. What that means is that about 75% of goods produced in a certain region stay in that region. Given these organic hedges, our biggest exposure to incremental tariffs is more limited because we ship from Mexico to the US.

首先，美國是產品淨出口國。接下來我們經常談到我們的地區，以支持地區的製造和分銷網絡。這意味著某個地區生產的約 75% 的商品會留在該地區。考慮到這些有機對沖，我們受增量關稅影響的最大程度更為有限，因為我們從墨西哥運送貨物到美國。

If specific tariffs are enacted, we have plans to mitigate those impacts through a combination of supply chain and price adjustments, including the application of surcharges. We will certainly quantify any meaningful impact if we see that emerge.

如果實施特定關稅，我們計劃透過供應鏈和價格調整（包括徵收附加費）等方式來減輕這些影響。如果我們發現這種情況出現，我們肯定會量化任何有意義的影響。

Now on to the balance sheet and cash flow outlook. Our capital expenditures are forecast between $85 million and $100 million. With the majority tilted towards growth initiatives, including capacity expansion, new product development and technology projects. Cash conversion is expected to be in the range of 85% to 95% on par with historical averages, and we project cash conversion in the second half will be higher than the first half due to normal seasonality and a reduction in working capital, namely inventory as we continue to work down our backlogs.

現在討論資產負債表和現金流前景。我們的資本支出預計在 8,500 萬美元至 1 億美元之間。其中大部分傾向於成長計劃，包括產能擴張、新產品開發和技術項目。現金轉換率預計在 85% 至 95% 之間，與歷史平均水平持平，並且我們預計下半年的現金轉換率將高於上半年，這是由於正常的季節性因素以及營運資本的減少（即隨著我們繼續減少積壓訂單而導致的庫存減少）。

Lastly, on capital deployment. Our priorities are unchanged. First, we invest. We are growing Donaldson Company, organically through capital investments and inorganically through strategic M&A with a focus mainly on life sciences and industrial services. We paid dividends.

最後，關於資本配置。我們的優先事項沒有改變。首先，我們進行投資。我們正在透過資本投資有機地發展唐納森公司，並透過策略併購無機地發展唐納森公司，主要專注於生命科學和工業服務。我們支付了股息。

Our membership in the S&P high-yield dividend aristocrat index is important to us, and we intend to maintain our status. Calendar 2024, mark Donaldson's 69 consecutive year paying a quarterly cash dividend and the 29 year in a row of annual dividend increases.

作為標準普爾高收益股息貴族指數的成員，我們對此十分重視，我們打算保持這一地位。2024年是唐納森連續第69年派發季度現金股息，以及連續第29年增加年度股息。

Finally, we repurchased shares. We expect to repurchase between 2% and 3% of our outstanding shares this year, consistent with prior guidance and slightly above our average over the last several years of about 2%. In closing, the outcome of our team's effort this quarter was strong margin performance, a higher full year margin projection and an earnings forecast that remains at a record level. We recognize the work is not done, but I am confident that the Donaldson team is prepared to deliver. Now I'll turn the call back to Tod.

最後，我們回購了股票。我們預計今年將回購 2% 至 3% 的流通股，與先前的指引一致，略高於過去幾年約 2% 的平均值。最後，我們團隊本季的努力成果是強勁的利潤率表現、更高的全年利潤率預測和仍處於創紀錄水平的獲利預測。我們認識到工作尚未完成，但我相信唐納森團隊已做好準備。現在我將把電話轉回給托德。

Thanks, Brad. When we held our Investor Day in April of 2023, we laid out our long-term strategic vision and fiscal 2026 financial targets. The close of this second quarter marks the halfway point to our three-year journey. Despite difficult conditions in many of our end markets, we have delivered on our expectations through the hard work and commitment of the Donaldson team, executing our strategy while making timely tactical adjustments along the way.

謝謝，布拉德。當我們在 2023 年 4 月舉辦投資者日時，我們制定了長期策略願景和 2026 財年財務目標。第二季的結束標誌著我們三年旅程的過半。儘管我們的許多終端市場都面臨著困難，但透過唐納森團隊的辛勤工作和承諾，我們仍然實現了我們的期望，執行了我們的策略，並在此過程中及時做出了戰術調整。

As the leader in technology-led filtration, we have and continue to position ourselves to consistently create value for our shareholders through market share gains in many key businesses and through record earnings results. We intend to remain on this trajectory by continually evolving to meet the needs of our expansive and diversified customer base.

作為技術型過濾領域的領導者，我們一直致力於透過在許多關鍵業務中擴大市場份額以及創紀錄的獲利業績，持續為股東創造價值。我們打算繼續沿著這一軌跡發展，並不斷發展以滿足廣泛而多樣化的客戶群的需求。

Our earnings, combined with our robust balance sheet, allow for continued focused investments in growth initiatives as we build on our success. Across all three segments, our R&D and CapEx investments are aimed at driving sales and efficient execution. Our M&A pipeline is robust and strategically focused.

我們的盈利加上強勁的資產負債表，使我們能夠在取得成功的同時繼續專注於成長計劃。在這三個部門中，我們的研發和資本支出投資旨在推動銷售和高效執行。我們的併購管道強大且具有策略重點。

Finally, I want to thank our talented employees for helping us build our future. I'm proud of the work they do, and I'm impressed by their unwavering dedication. With that, I will now turn the call back to the operator to open the line for questions.

最後，我要感謝我們才華洋溢的員工幫助我們建立未來。我為他們所做的工作感到自豪，他們堅定不移的奉獻精神也給我留下了深刻的印象。說完這些，我現在將電話轉回給接線員，以便開通熱線來回答問題。

(Operator Instructions) Bryan Blair, Oppenheimer.

（操作員指示）布萊恩·布萊爾，奧本海默。

Tod, you called out a recent win in China that's perhaps reflective of a structural shift that works in Donaldson's favor. I found that commentary intriguing. It would be great to hear more about the noted win and more importantly, the implications of that and what's the cited shift transition could mean for Donaldson going forward?

托德，你指出最近在中國的勝利可能反映了對唐納森有利的結構性轉變。我發現這個評論很有趣。能夠聽到更多關於這場勝利的消息真是太好了，更重要的是，這場勝利意味著什麼，以及這種轉變對唐納森未來的發展意味著什麼？

It's just a continuation of technology wins for us within the overall sector of China. Remember, we've been talking for a number of quarters of really bringing our technology-based platform, proprietary razors to sell razor blades across that particular sector, and we have done that. This particular win happened in the liquid sector in hydraulics, specifically for tractors. And so you see us now gaining traction within that in its type of an application in addition to the momentum that we have on air-based applications.

這只是我們在中國整體領域技術勝利的延續。請記住，我們已經談論了好幾個季度，真正將我們基於技術的平台、專有的剃須刀推向該特定領域，銷售剃須刀片，而且我們已經做到了。這次勝利是發生在液壓液體領域，特別是拖拉機的液壓液體領域。因此，您會看到，除了在空中應用方面取得的進展之外，我們在該領域的應用也獲得了發展動力。

Understood. I appreciate the color. And a level setting question. Within Life Sciences, if we were to simplify the segment to disk drive food (technical difficulty) and bev, bioprocessing and other or even just bioprocessing and legacy applications. What is the split of profitability at this point and the impetus here is trying to gauge as you gain scale, have top line inflection in bioprocessing.

明白了。我很欣賞這個顏色。還有一個級別設定問題。在生命科學領域，如果我們將該部分簡化為磁碟驅動食品（技術難度）和飲料、生物加工和其他，甚至只是生物加工和遺留應用程式。此時獲利能力的分配是怎樣的？這裡的動力是試圖衡量隨著規模的擴大，生物加工領域的營收是否會有所改變。

What that's going to mean on a run rate basis when that business is on the trajectory that your team is targeting?

當業務按照您的團隊所設定的軌跡發展時，這對於運行率來說意味著什麼？

So the way to think about that is if you take the traditional businesses that we had, they're all profitable. Remember that the acquisitions that we did were pre-revenue largely. And so consequently, obviously, those have headwinds really mixing down the overall current profitability of the segment as we continue to push those new products out, which we fully expect to happen here within the next year or 12 months or so, you'll start to see some of those new products come out and we gain traction. That will only lift the overall sector even more positive.

所以思考這個問題的方式是，如果你以我們擁有的傳統業務為例，它們都是有利可圖的。請記住，我們所做的收購大部分都是在獲利之前進行的。因此，顯然，這些不利因素確實影響了該部門當前的整體盈利能力，隨著我們繼續推出這些新產品，我們完全預計這將在未來一年或 12 個月左右發生，您將開始看到一些新產品的推出，我們獲得了發展動力。這只會為整個行業帶來更積極的推動。

Bryan, this is Brad. I'll just add a point and reference back to my remarks to remember, in the first quarter, we did some restructuring, and that was all about prioritization within these specific businesses. As Tod mentioned, we have a -- we have a project pipeline that we're working on to bring some of these items to -- from free revenue to revenue. And so the teams have done really good work to try and sharpen the pencil on where are we really going to invest and that's giving us some momentum in Life Sciences profitability as well.

布萊恩，這是布萊德。我只想補充一點，並回顧我的發言，在第一季度，我們進行了一些重組，這都是為了確定這些特定業務的優先順序。正如托德所提到的，我們有一個項目管道，我們正在努力將其中一些項目從免費收入轉化為收入。因此，團隊已經做了非常好的工作，試圖明確我們真正要投資的地方，這也為我們在生命科學領域的獲利能力提供了一些動力。

Rob Mason, Baird.

羅布梅森，貝爾德。

The first question is around the mobile solutions, just the aftermarket in general. There's a couple of quarters now, we've seen a meaningful divergence between the OED channel and the independent channel. And I was just curious what better explains that if that's just focus from the OED on their parts business or share gains, what have you? That's one.

第一個問題是關於行動解決方案以及整個售後市場。現在已經有幾個季度了，我們看到《牛津英語辭典》管道和獨立管道之間存在著顯著的差異。我只是好奇，如果這只是《牛津英語詞典》對其零件業務或份額增長的關注，那麼如何更好地解釋這一現象呢？那是一個。

And then the second question, still in aftermarket is, I know you didn't change the outlook there, but it doesn't look like for the second half, there's much in the way of normal seasonality built into the guidance. And I'm just curious if that's conservatism or if that's reflecting somewhat underlying weaker demand or how you're viewing that?

然後第二個問題，仍然在售後市場，我知道你沒有改變那裡的前景，但看起來對於下半年來說，指引中並沒有太多正常的季節性因素。我只是好奇，這是保守主義還是反映了某種潛在的較弱需求，或者您如何看待這一點？

Yes, sure. So when you look at our aftermarket business, what ended up happening here, within the quarter is a little bit of a shift in the behavior between the independent and the OE channel. The OE channel clearly has some more focus from the OEs on their parts based businesses, as you call out, we clearly see that and we see that in a little bit more demand from that side.

是的，當然。因此，當您查看我們的售後市場業務時，最終發生的事情是，本季獨立通路和 OE 通路之間的行為發生了一些轉變。OE 管道顯然更加關注 OE 的零件業務，正如您所說，我們清楚地看到了這一點，並且我們看到這方面的需求增加。

On the independent channel, which is -- if I remind you, it is about 60% of the overall business, that felt a little bit more of a pullback, a little bit more cautious tone. And net-net, we were up -- now that's kind of some interesting adjustments for us that we see in the behavior changes. However, the story remains for us is share gains and how we continue to execute really, really well.

在獨立管道上，如果我提醒你的話，它約佔整體業務的 60%，感覺有點回調，語氣有點謹慎。總體而言，我們已經取得了進展——我們在行為變化中看到了一些有趣的調整。然而，我們關注的重點仍然是份額的成長以及我們如何繼續表現得非常出色。

Our fill rates are near 100% when the customer wants the product. We're doing very well within that channel, servicing that channel, and we're very happy overall with where we are. Now we didn't change the guide, but we didn't change the guide because one basically offsets the other. And so net net, it felt about a push.

當客戶需要產品時，我們的滿足率接近 100%。我們在該管道內做得很好，為該渠道提供服務，我們對目前的狀況非常滿意。現在我們沒有改變指南，但是我們沒有改變指南，因為一個基本上抵消了另一個。因此，淨網感覺就像是被推了一下。

Understood. And just as a follow-up, you just talked, Tod, just around the visibility in IFS. I understand that can be lumpier with the projects that move around, and you did pull the guide down there. But how are you -- I guess, risk adjusting for those projects in the second half of the year? And are those biased either to Power Gen? Which my impression is maybe those could be larger or the dust collection business?

明白了。作為後續問題，Tod，您剛才談到了 IFS 的可見性。我理解隨著專案的進展，情況可能會變得更加糟糕，而你確實把指南拉到了那裡。但是，我想，您打算如何調整這些項目下半年的風險？這些對 Power Gen 是否也有偏見？我的印像是，也許這些可能會更大或除塵業務？

Yes. So Power Gen is clearly the larger base projects, and they move from quarter-to-quarter based upon site availability, et cetera. We did see movement on power generation. it is about half -- that represents about half of down in the quarter, if you will, year-over-year, but those move out. And so consequently, that revenue will come.

是的。因此，Power Gen 顯然是較大的基礎項目，並且它們根據場地可用性等因素逐季度變動。我們確實看到了發電方面的進展。這大約是一半——如果你願意的話，這意味著本季同比下降了一半，但這些已經消失了。這樣，收入就會隨之而來。

But in the quarter, it's clearly a notable headwind. Our car generation business remains very strong. We expect it to remain strong at a minimum for another year, a year, and a half. We have that much visibility. So very, very positive things. That's not really the story here for us in the change of the guide, because we're still very bullish on power generation.

但在本季度，這顯然是一個明顯的阻力。我們的汽車發電業務依然強勁。我們預計至少在未來一年、一年半內仍將保持強勁勢頭。我們有那麼高的可見度。因此這是非常非常正面的事情。這並不是我們改變指南時的真實情況，因為我們對發電仍然非常樂觀。

The story really for us is in our capital-based project businesses that are more related to manufacturing. Specifically, we saw some movements within what we would say is the automotive arenas of that particular business where projects really pulled back. And you could say that's more related to an electrification type of a situation, so battery manufacturing, electric power manufacturing, those kind of activities, certainly abated in the quarter more than we had expected.

對我們來說，真正的故事在於與製造業更相關的以資本為基礎的專案業務。具體來說，我們看到了該業務的汽車領域的一些動向，其中項目確實有所減少。您可以說這更多是與電氣化類型的情況有關，因此電池製造、電力製造等活動在本季度的減弱程度肯定超出我們的預期。

All other industries feel pretty good, quotes remain still at a good level, but that meaningful shift is really more further indication that this electrification phenomenon is clearly not going to happen as quickly as many had hoped.

所有其他行業都感覺相當不錯，報價仍然保持在良好水平，但這種有意義的轉變實際上進一步表明，這種電氣化現象顯然不會像許多人希望的那樣迅速發生。

And you see that over -- also in our vehicle electrification programs, supporting automotive for specifically electric cars in inventing based applications where that also felt a lot of pullback. So electrification really in the auto sector really explains a lot of that, and we did not see that meaningful shift for coming, but it certainly happened within the quarter.

您還可以看到，在我們的汽車電氣化計劃中，支援汽車特別是電動車發明的應用也感受到了極大的阻力。因此，汽車行業的電氣化確實解釋了很多問題，我們並沒有看到即將發生的重大轉變，但它確實在本季度發生了。

Brian Drab, William Blair.

布萊恩·德拉布，威廉·布萊爾。

I think that you touched on this somewhat, but can you just further elaborate on the IFS segment, average about $210 million a quarter in the first half of the year? And then is this project-based business? Is that what's driving this big step up to the guidance implies going to more like $250 million a quarter in the second half?

我認為您已經在一定程度上談到了這一點，但您能否進一步詳細說明 IFS 部門，今年上半年平均每季約 2.1 億美元？那麼這是基於專案的業務嗎？這就是推動這一重大進步的因素嗎，意味著下半年每季的銷售額將達到 2.5 億美元？

Yes. So it's clearly project based. And again, Brian, so the power generation business really saw timing, [Moving to] half of the reduction in this quarter. But those project-based businesses for power generation move -- they just moved into the next quarter, the third or fourth quarter. And in fact, in the company within power generation, we did not change our annual guide for that business at all.

是的。因此，這顯然是基於項目的。布萊恩，發電業務確實看到了時機，本季的減幅達到了一半。但是那些基於專案的發電業務已經進入了下一季、第三季或第四季。事實上，在發電公司，我們根本沒有改變該業務的年度指南。

Okay. So that's all -- that's the -- that's all-power generation. The call is actually cutting in and out a little bit, so I'm not catching everything. So sorry if I ask something that was -- if I'm repeating a question. On the aerospace and defense side, can you talk a little bit about where the particular strength is there more on the aerospace or more on the defense side? And just kind of give us a little more granularity there?

好的。這就是全部 — — 這就是 — — 這就是全部發電。實際上，通話時斷時續，所以我沒有聽清所有內容。如果我重複了問題，那麼我很抱歉。在航空航太和國防方面，您能否談談您的具體優勢是在航空航太方面還是國防方面？能給我們更詳細的資訊嗎？

Yes. So it's both. And what -- we have good strength in both pieces of the business. What we had factored in when we gave our original guide this year in supply chain problems and difficulties within supply chain that we had expected, keeping in mind that if we were to try to requalify a new supplier for a particular part of that business, that could take as much as a year or a year and a half or two and so we had expected that kind of a situation to give us headwinds and therefore flat.

是的。所以兩者都有。而且──我們在兩個業務領域都擁有強大的實力。我們在今年給出最初的指導方針時就已經考慮到了供應鏈問題以及我們預計的供應鏈內部困難，同時考慮到如果我們試圖重新認證某個業務特定部分的新供應商，這可能需要一年或一年半或兩年的時間，所以我們預計這種情況會給我們帶來阻力，因此進展會持平。

The supplier, of course, that we do have has actually improved performance to a little bit of our surprise, but through some fantastic work of -- hard work of our people here, working with that supplier. And so consequently, that's why it's up. The backlog has always been there. The orders have always been there. It was more of a reflection of the supply chain and with us now knocking down some of those supply chain hurdles. That's what you're seeing in the guidance.

當然，我們的供應商確實提高了績效，這讓我們有點驚訝，但這是得益於我們這裡的員工與該供應商一起努力工作的結果。因此，這就是它上漲的原因。積壓問題一直存在。訂單一直都有。這更反映了供應鏈，而我們現在正在打破一些供應鏈障礙。這就是您在指南中看到的內容。

Laurence Alexander, Jefferies.

勞倫斯·亞歷山大（Laurence Alexander），傑富瑞（Jefferies）。

Just a question about the dynamics you're seeing in off-road, I guess, two parts. One, to what degree are the auto OEMs talking about if there are tariffs that it triggers a destock cycle? Or do they see sort of a bit of a prebuy to get ahead of it. So can you just give a sense for kind of do you see kind of the initial impact kind of which way it swings. But then secondly, when you think about your overall outlook adjustment for this year, how much of that do you think is lost demand as opposed to pent-up demand that comes back in 2026?

我只想問一下您在越野中看到的動態，我想分成兩部分。第一，汽車廠商在多大程度上談論徵收關稅將引發去庫存週期？或者他們是否看到了一種提前購買的趨勢。那麼您能否簡單介紹一下它最初的影響以及它會如何改變。但其次，當您考慮今年的整體前景調整時，您認為其中有多少是失去的需求，而不是 2026 年恢復的被壓抑的需求？

Yes. So let me take the first one. Within the off-road sector, we have not had pre-buys. We have not had any of those kind of activities out of our customers as a result of any of the tariff type of activities that -- remember, some of those off-road markets like (technical difficulty) are really difficult for them to see them taking on inventory right now would be kind of an interesting move as they try to really work down the inventory that's out of the channel.

是的。因此讓我選第一個。在越野領域，我們還沒有預購。由於任何關稅類型的活動，我們尚未從客戶那裡獲得任何此類活動 - 請記住，一些越野市場（例如（技術難度））對他們來說確實很難看到他們現在承擔庫存將是一種有趣的舉措，因為他們試圖真正減少渠道外的庫存。

So -- so we'll see. We'll keep an eye on that. We don't really see that happening. It's a bit more, frankly, as the macro business as usual across that base relative to manufacturing and delivering for them. I would say that the one change that maybe has happened or accelerated in the behavior is asking our -- specifically always asking us our capability of building their products outside the United States.

所以——我們拭目以待。我們會密切關注此事。我們確實沒有看到這種情況發生。坦白說，這更像是整個基地的宏觀業務照常進行，相對於製造和交付而言。我想說，行為上可能已經發生或加速的一個變化就是詢問我們——特別是總是詢問我們在美國以外生產其產品的能力。

So as Brad said in his in his script that we are a net exporter from the US. And so to the extent that OEs will want to have us rotate and build it more closely to their factories rather than having in US and export it, that we have received questions regarding that. That's the only behavioral change really. And then the second question?

正如布拉德在他的劇本中所說，我們是美國的淨出口國。因此，如果原始設備製造商希望我們輪流在其工廠附近生產，而不是在美國生產然後出口，我們已經收到了有關這方面的問題。這其實是唯一的行為改變。那麼第二個問題呢？

It's just around to what degree do you see kind of the slightly softer near-term outlook being kind of a sign of pent-up demand for next year? Or is it just going we're resetting the level?

只是，您認為短期內略微走軟的前景在多大程度上預示著明年的需求被壓抑？或者我們只是要重置等級？

Right. That's really tough to say because we're really being driven by the end markets. Nobody is behaving differently as a result of the uncertainties that are clearly being introduced into the business markets, if you will. And so to suggest that people are holding back or pulling forward, that's not what we're seeing at all. Now that's not to suggest that it won't happen.

正確的。這真的很難說，因為我們實際上是受到終端市場的驅動。如果你願意的話，沒有人會因為商業市場中出現的不確定性而改變行為。所以說人們在退縮或向前邁進，我們看到的根本不是這樣。這並不是說它不會發生。

But for us, that's not the macro that we see. And for our guide, we're taking what we know, and we applied that within today's guidance.

但對我們來說，這不是我們看到的宏觀。對於我們的指南，我們將利用我們所知道的知識，並將其運用到今天的指導中。

Angel Castillo, Morgan Stanley.

摩根士丹利的安吉爾‧卡斯蒂略 (Angel Castillo)。

This is actually Stefan Diaz sitting in for Angel. Maybe if we could dig back into Mobile Solutions aftermarket growth. Would you be able to parse out share gains versus market growth? And then maybe what sort of line of sight do you have into share gains continuing into your fiscal '26?

這其實是替 Angel 坐鎮的 Stefan Diaz。也許我們可以深入研究行動解決方案售後市場的成長。您能分析出份額成長與市場成長之間的關係嗎？那麼，您對 26 財年的股票成長有何預期？

So at the macro, we have internal models to really track us against competition, et cetera. The benefit for us is we have factual data. Even though our quarters may be very different, et cetera, we have factual data that we can track. And that specifically tells us we are winning share gains, and we have won share gains quarter after quarter after quarter. And so we're really very, very proud of our internet market team and what's taking place out there, and we expect those share gains to continue looking forward.

因此從宏觀上看，我們有內部模型來真正追蹤我們的競爭情況等等。對我們來說的好處是我們擁有事實數據。儘管我們的處境可能有很大差異，等等，但我們有可以追蹤的事實數據。這明確地告訴我們，我們的份額正在成長，而且我們每個季度都取得了份額成長。因此，我們對我們的網路市場團隊以及目前所取得的進展感到非常自豪，我們預計未來份額將繼續成長。

Great. And then I believe last quarter, you mentioned some CapEx projects being pushed out within Life Sciences. Can we have an update there? Like has there been any step change in either bringing projects back forward or maybe pushed out even further?

偉大的。然後我相信上個季度您提到了一些在生命科學領域推出的資本支出項目。我們能更新一下情況嗎？例如，在將專案重新推進或進一步推遲方面是否有任何重大變化？

Yes. So remembering Life Sciences, specifically in the bioprocessing, you have an upstream process, and you have a downstream process. And those larger projects are in the upstream process, specifically with bioreactors and activities like that. Last year, we had very large projects, $5 million, $6 million, $7 million projects that were in flight. Those have now shipped giving us tougher comps as we look ahead within Life Sciences in the second half.

是的。所以記住生命科學，特別是在生物加工中，你有一個上游過程，還有一個下游過程。那些較大的項目處於上游過程，特別是生物反應器和類似的活動。去年，我們有非常大的項目，有 500 萬美元、600 萬美元、700 萬美元的項目正在進行中。展望下半年生命科學領域，這些產品現已出貨，這為我們帶來了更嚴峻的考驗。

And this is the reason why our commentary says that it's certainly more guarded in that industry because those projects have not been replaced. And [our life] sciences companies are not taking off multiple million-dollar CapEx-based projects. And specifically, our Solaris business tells us that.

這就是為什麼我們的評論說該行業肯定更加謹慎，因為這些項目尚未被取代。並且（我們的生命）科學公司不會進行數百萬美元的資本支出項目。具體來說，我們的 Solaris 業務告訴了我們這一點。

So we've not seen green shoots in that area at this point. But we'll continue to press forward and manage our business appropriately.

因此，目前我們還沒有看到該地區出現復甦跡象。但我們將繼續努力並適當地管理我們的業務。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），斯蒂費爾（Stifel）。

This is Adam Farley on for Nathan. I wanted to start on operating margins within Mobile. How should we think about margins for the remainder of the year? I think in the quarter, called out a little bit of a mix headwind, but with aftermarket growth, how should we think about margins?

這是亞當法利 (Adam Farley) 代替內森 (Nathan) 表演的。我想要從行動領域的營業利潤率開始談起。我們該如何考慮今年剩餘時間的利潤？我認為本季出現了一些混合逆風，但隨著售後市場的成長，我們應該如何看待利潤率？

Adam, this is Brad. All three segments pick up from here at this point if you look second half versus first half. So some of it comes with the natural leveraging on sales and then some of it comes with the quality of the work that the teams have done around the company to be smart about where we're pulling out expenses. Just a side note on that, we're not just -- there isn't a mandate that says take x percent out. Its teams reflecting what they need in certain regions or in certain businesses and then prioritizing that.

亞當，這是布拉德。如果將下半部與上半部進行比較，所有三個部分都從這裡開始。因此，其中一些來自於對銷售的自然槓桿作用，而另一些則來自於公司團隊所做的工作質量，這些工作使我們能夠明智地削減開支。順便提一下，我們不僅僅是——沒有命令說要拿出 x%。它的團隊會反映他們在特定地區或特定業務中的需求，然後確定其優先順序。

So I think that's where you'll see this tick up. Again, it's across the company.

所以我認為這就是你會看到這種現像上升的地方。再次強調，這是整個公司的事情。

Turning back to industrial and your connected solutions, are you seeing any changes there on the adoption rate just given some of the -- it sounds like there might be some deceleration in industrial markets?

回到工業和互聯解決方案，考慮到一些因素，您是否看到採用率有任何變化——聽起來工業市場可能會出現一些減速？

Yes. So we are, we've actually picked up our overall connectivity. So for example, year-to-date growth in connected machines alone is 30% so far through the first six months in facilities. So remembering a facility can have multiple machines is 29%. So we're getting a broad adoption across the customer base as well as customers often put more than one machine on base.

是的。因此，我們實際上已經恢復了整體連通性。舉例來說，今年迄今為止，光是連網機器的數量在設施投入營運的前六個月就已增加了 30%。因此，記住一個設施可以擁有多台機器的比例為 29%。因此，我們得到了客戶群的廣泛採用，而且客戶通常會在基地上放置多台機器。

So I can tell you a story that happened within the quarter that was very fun. One particular customer I won't mention by name, but they contracted to hook up all 60 collectors on their site and very large manufacturing site after they hope the very first one and ran it for a while.

所以我可以告訴你一個本季發生的非常有趣的故事。我不會提及某個特定客戶的名字，但他們在希望第一台收集器運行一段時間後，就簽訂了合同，將所有 60 台收集器連接到他們的站點和非常大的製造站點上。

So we're really starting to get a name out there now, gather momentum and looking to continue the pace quickly to hook them up. Keep in mind that each time we look those up, what we have seen is an increase in really customer relationships that do that relationship, and more importantly, an increase in parts and replacement part sales. So we're really proud of the efforts. We think we have really the best-connected product out there, and we'll continue to push forward that strategy.

因此，我們現在真正開始在那裡打響名聲，積聚勢頭，並希望繼續快速發展，將他們聯繫起來。請記住，每次我們查看這些內容時，我們都會看到真正的客戶關係增加，更重要的是，零件和替換零件的銷售量正在增加。因此，我們對於這些努力感到非常自豪。我們認為我們確實擁有市場上最佳的互聯互通產品，並且我們將繼續推進這項策略。

(Operator Instructions) Brian Drab, William Blair.

（操作員指示） Brian Drab，William Blair。

I just want to ask one follow-up question. I was wondering, Tod, if you could talk about irrespective of what's happening in the Life Sciences market and the challenges there. How is the development of the technology going and just kind of the pipeline that you're developing for when the market improves within bioprocessing, therapeutics, the bioreactor products that you're developing? Just how is the technology development going?

我只想問一個後續問題。托德，我想知道您是否可以談談生命科學市場正在發生的事情以及您面臨的挑戰。當生物加工、治療學和您正在開發的生物反應器產品市場改善時，技術的開發進展如何？您正在開發的管道是什麼樣的？技術發展到底如何？

Yes. So Brian, what we did as Brad mentioned earlier, is we had a very broad agenda products that we have in flight, all kind of fun ideas. And clearly, the markets that, hey, you better focus. And so that's what we did do as a corporation. But those that we focus on has come a really nice week.

是的。所以布萊恩，正如布拉德之前提到的，我們所做的是，我們有一個非常廣泛的議程產品，我們正在進行各種有趣的想法。顯然，你最好關注這個市場。這就是我們作為一家公司所做的事情。但是，我們關注的焦點已經過了非常美好的一周。

We really are pretty happy with the disruptive based technologies that we have going forward. Still some time ahead of us before we rebuild out to the market. But for example, we have some in testing right now. So we're not -- it's not years away. I would say it's quarters away, and we've made significant process.

我們對於未來顛覆性的科技感到非常高興。我們距離重建市場還有一段時間。但例如，我們現在正在測試一些。所以我們不是—這不需要幾年的時間。我想說還有幾個季度，我們已經取得了重大進展。

Rob Mason, Baird.

羅布梅森，貝爾德。

Brad, you may have addressed this just a moment ago with your commentary around margins, but just maybe to put a finer point on it. It sounds like for the second half of the year, it looks like your guidance kind of implies about a 50 basis points or so of year-over-year margin expansion. You're saying that we will see both gross margin expansion and OpEx leverage in the second half?

布拉德，你可能剛才在有關利潤的評論中提到了這一點，但也許可以對此進行更細緻的闡述。聽起來，對於今年下半年，您的指導似乎意味著利潤率將比去年同期擴大約 50 個基點左右。您是說，下半年我們將同時看到毛利率擴大和營運成本槓桿率上升？

First versus second, yes. Now again, the OpEx leverage will be (technical difficulty)

第一對第二，是的。現在，OpEx 槓桿將再次（技術難度）

Brad, you broke up for me a little bit.

布拉德，你對我來說有點分手了。

Yes. The first half is -- it will improve in the second half from the first half. And then and I want to say operating expense leverage is a more meaningful contributor to that.

是的。上半年的情況－下半年會比上半年有所改善。然後我想說的是，營業費用槓桿是對此更有意義的貢獻因素。

Okay. Because I know your SG&A in the second quarter was kind of unseasonably low. Does that carry forward? Or are there just some adjustments in the second quarter specifically?

好的。因為我知道你們第二季的銷售、一般及行政開支有點不合時宜地低。這還能延續下去嗎？或只是第二季具體有一些調整？

No, we expect that to carry forward. So we've got lower head count year-over-year. We've got a real focus on any sort of discretionary activities. Again, it's really broad-based. This is about the whole company sort of rallying around. We have this unexpected FX headwind, for example, that we have to address. And we're pulling down where it makes sense and prioritizing.

不，我們希望這種情況能夠持續下去。因此我們的員工人數較去年同期有所減少。我們真正關注的是任何類型的自由裁量活動。再次強調，它的影響範圍非常廣泛。這是整個公司的團結一致。例如，我們面臨著必須解決的意外外匯逆風。我們正在拉低合理的部分並確定優先順序。

That concludes our question-and-answer session, and I will now turn the conference back over to Tod Carpenter for closing comments.

我們的問答環節到此結束，現在我將把會議交還給托德·卡彭特 (Tod Carpenter) 進行結束語。

That concludes the call today. Thanks to everyone who participated. We look forward to reporting our third quarter fiscal 2025 results in June. Have a great day. Goodbye.

今天的通話到此結束。感謝所有參與者。我們期待在六月報告2025財年第三季的業績。祝你有美好的一天。再見。

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。