Donaldson Company Inc (DCI) 2025 Q4 法說會逐字稿

Hello, and thank you for standing by. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to the Donaldson Company Q4 FY25 earnings webcast. (Operator Instructions)

您好，感謝您的支持。我叫蒂芬妮，今天我將擔任您的會議主持人。現在，我歡迎大家收看唐納森公司 2025 財年第四季財報網路直播。（操作員指示）

I would now like to turn the call over to Sarika Dhadwal, Senior Director of Investor Relations and ESG, Sarika.

現在，我想將電話轉給 Sarika 投資者關係和 ESG 高級總監 Sarika Dhadwal。

Good morning. Thank you for joining Donaldson's fourth 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 fourth quarter performance and our outlook for fiscal 2026.

早安.感謝您參加唐納森 2025 財年第四季財報電話會議。今天與我一起的有董事長、總裁兼執行長 Tod Carpenter 和財務長布拉德波加爾茲 (Brad Pogalz)。今天上午，托德和布拉德將總結我們第四季的業績以及對 2026 財年的展望。

During today's call, we will discuss non-GAAP or adjusted results. For fourth quarter 2025 non-GAAP results exclude pre-tax charges of $9.5 million for restructuring and other charges, primarily related to footprint optimization and cost reduction initiatives.

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 年第四季非公認會計準則業績不包括 950 萬美元的稅前重組費用和其他費用，主要與足跡優化和成本削減計劃有關。

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.

今天早上的新聞稿所附的時間表中提供了 GAAP 與非 GAAP 指標的對帳表。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有所描述。

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

說完這些，我現在將電話轉給托德。

Thanks, Sarika. Good morning. Fiscal 2025 was a record year for Donaldson Company as we did what we do best, help our customers solve critical filtration challenges through the delivery of our high-tech solutions, which protect precision equipment and help maintain a cleaner work environment, increasing efficiency, mitigating risks and reducing downtime.

謝謝，薩里卡。早安.2025 財年是唐納森公司創紀錄的一年，我們盡最大努力，透過提供高科技解決方案幫助客戶解決關鍵的過濾挑戰，保護精密設備並幫助維持更清潔的工作環境，提高效率，降低風險並減少停機時間。

We did this through consistent execution of our strategy and created value for our shareholders. I will start with some full year highlights, discuss our fourth quarter performance and touch briefly on our expectations for fiscal 2026. Brad will then detail our financials. Lastly, I will provide some closing remarks before opening the call to questions.

我們透過持續執行策略來實現這一目標，並為股東創造價值。我將從一些全年亮點開始，討論我們第四季度的業績，並簡要談談我們對 2026 財年的預期。布拉德隨後將詳細介紹我們的財務狀況。最後，在開始提問之前，我將發表一些結束語。

In fiscal 2025, we grew sales to an all-time high of $3.7 billion with growth across all segments expanded operating profit margin to a record 15.7% with an incremental margin of nearly 30%, delivered earnings per share of $3.68 towards the higher end of the guidance range we laid out at the beginning of the year, returned $465 million to shareholders largely through the repurchase of 4% of our shares outstanding while increasing our dividend 11%, and focused our cost structure, including in life sciences and made progress towards footprint optimization, strengthening our foundation for future profitability while still investing for growth.

在 2025 財年，我們的銷售額增長至 37 億美元的歷史新高，所有部門均實現增長，營業利潤率擴大至創紀錄的 15.7%，增量利潤率接近 30%，每股收益達到 3.68 美元，接近年初制定的指導範圍的高端，通過回購 4% 的流通流通量將向股東返還 4.65 億美元，同時將提高股11%，並專注於成本結構，包括生命科學領域，並在優化足跡方面取得進展，在為成長進行投資的同時，鞏固了未來獲利的基礎。

Our team accomplished a tremendous amount in fiscal 2025 through macro uncertainty and cyclical headwinds. We ended the year on a high note, and I will provide some details on the fourth quarter, including by segment.

我們的團隊在 2025 財年克服了宏觀不確定性和週期性逆風，並取得了巨大的成就。我們以高調結束了這一年，我將提供第四季度的一些細節，包括按部門劃分的細節。

In Mobile Solutions, our strength in aftermarket is contributing to record results as we continue to win and gain share. In our independent channel, which eclipsed $1 billion in sales this year, partnerships like NAPA allow us to expand our reach, and we continue to build these types of relationships.

在行動解決方案領域，我們在售後市場的實力不斷提升，為我們創造了創紀錄的業績，我們繼續贏得勝利並獲得市場份額。在我們的獨立管道中，今年的銷售額超過了 10 億美元，像 NAPA 這樣的合作關係使我們能夠擴大影響力，並且我們將繼續建立此類關係。

For example, in the fourth quarter, we signed a new partnership with Mighty Distributing System of America. Donaldson is Mighty's sole heavy-duty filtration supplier of Donaldson branded products and we are pleased with the early results.

例如，在第四季度，我們與美國 Mighty Distributing System 簽署了新的合作關係。唐納森是 Mighty 唐納森品牌產品的唯一重型過濾供應商，我們對早期結果感到滿意。

With respect to our largest first-fit business within Mobile, Off-Road, sales grew after eight consecutive quarters of declines as we see tangible signs of trough or moving out of trough conditions in the agriculture market. Our Industrial Solutions, IFS sales grew double digits through our Create, Connect, Replace service model. I would like to touch on each piece briefly.

就我們最大的行動、越野領域首次組裝業務而言，銷售額在連續八個季度下滑後實現成長，因為我們看到農業市場出現低谷或走出低谷的明顯跡象。透過我們的「創建、連接、替換」服務模式，我們的工業解決方案、IFS 銷售額實現了兩位數成長。我想簡單談談每一部分。

Create. In dust collection, we are building new customer relationships and our OE channel sales hit record levels. Our generation sales were also strong as we continue to benefit from the power gen super cycle.

創造。在除塵方面，我們正在建立新的客戶關係，我們的 OE 通路銷售額達到了創紀錄的水平。由於我們繼續受益於發電超級週期，我們的發電銷售也很強勁。

Connect. We are deploying our connected solutions. This quarter, we increased the number of connected machines and connected facilities and in fiscal 2026, we expect to grow the number of connected machines over 30%. Through this, we are strengthening our customer relationships and building this revenue stream for the future.

連接。我們正在部署我們的互聯解決方案。本季度，我們增加了連網機​​器和連網設施的數量，預計到 2026 財年，連網機器的數量將增加 30% 以上。透過這種方式，我們正在加強與客戶的關係並為未來建立收入來源。

Replace. Our razor to sell razor blade model is working with almost 50% of our quarterly Industrial segment sales now driven by higher-margin aftermarket sales. Service. This quarter, we acquired our third service business, RPS Associates of New England. RPS brings 40 years of experience in dust collection services with customers in aerospace, defense and other metal manufacturing industries and also adds a new geography to our service footprint.

代替。我們的刮鬍刀銷售刀片模式正在發揮作用，目前我們工業部門季度銷售額的近 50% 是由利潤率更高的售後市場銷售推動的。服務。本季度，我們收購了第三家服務公司，即新英格蘭 RPS Associates。RPS 為航空航太、國防和其他金屬製造業的客戶提供了 40 年的除塵服務經驗，同時也為我們的服務範圍拓展了新的地域。

Moving to Life Sciences. Food and beverage sales grew over 20%, both in new and replacement part sales. We are winning share through key OEMs and channel partners in this high-margin business. In bioprocessing, through our downstream Purilogics business, we announced the availability of the first manufacturing grade product within the Purexa portfolio to support customers' GMP or good manufacturing processes.

轉向生命科學。食品和飲料銷售額成長超過 20%，包括新品和替換零件的銷售額。我們正在透過主要原始設備製造商和通路合作夥伴在這個高利潤行業中贏得份額。在生物加工領域，透過我們的下游 Purilogics 業務，我們宣布推出 Purexa 產品組合中的第一款製造級產品，以支援客戶的 GMP 或良好生產流程。

The Purexa membrane chromatography products enhance productivity with their high dynamic binding capacity, fast cycle times and efficient and scalable format, allowing users to process their product more quickly and reduce process costs.

Purexa 膜層析產品憑藉其高動態結合容量、快速循環時間以及高效且可擴展的形式提高了生產率，使用戶能夠更快地處理其產品並降低處理成本。

Now I'll cover some consolidated company highlights for the quarter. Overall, sales increased 5% year-over-year to $981 million, driven by volume growth, currency translation benefits and pricing. Adjusted EPS was $1.03, up approximately 10% year-over-year.

現在我將介紹本季的一些合併公司亮點。總體而言，銷售額年增 5%，達到 9.81 億美元，這得益於銷售成長、貨幣換算效益和定價。調整後每股收益為 1.03 美元，年增約 10%。

I'm proud of our results and would like to give a special thanks to our global operations team, who once again this quarter, navigated the difficult macro landscape, including the ever-changing global tariff dynamics. Brad will talk a bit more about the impact from tariffs, but I want to emphasize my confidence in the muscle we have built to address challenges quickly and effectively.

我對我們的業績感到自豪，並要特別感謝我們的全球營運團隊，他們在本季度再次克服了困難的宏觀環境，包括不斷變化的全球關稅動態。布拉德將進一步談到關稅的影響，但我想強調的是，我對我們能夠快速有效地應對挑戰的能力充滿信心。

Also in the quarter, we progressed on our footprint and cost optimization initiatives. We remain in the heavy lift phase of this work and expect to be mostly complete by the second half of fiscal 2026. Through this, we have stayed focused on our customer needs. On-time delivery rates remain high, and our backlog support our outlook over multiple quarters.

本季度，我們也在足跡和成本優化計劃方面取得了進展。我們仍處於這項工作的重頭戲階段，預計到 2026 財年下半年將基本完成。透過這種方式，我們始終專注於客戶的需求。準時交貨率仍然很高，我們的積壓訂單支持我們未來多個季度的前景。

I'm also pleased with our thoughtful expense management. While we lay the groundwork for a more efficient operating structure, it is important to note that we are making disciplined growth investments in strategically important areas through our R&D and capital expenditures, including in areas such as solvent recovery and new disk drive technologies in Life Sciences and air and alternative fuel filtration in Mobile Solutions, cementing our leadership position in diversified technology-led filtration.

我對我們周到的費用管理也感到滿意。在我們為更有效率的營運結構奠定基礎的同時，值得注意的是，我們正在透過研發和資本支出在具有戰略重要性的領域進行有紀律的成長投資，包括生命科學領域的溶劑回收和新磁碟機技術以及行動解決方案領域的空氣和替代燃料過濾等領域，鞏固我們在多元化技術主導的過濾領域的領導地位。

Now I'll provide some detail on fourth quarter sales. In Mobile Solutions, total sales were $588 million, a 2% increase versus prior year. Aftermarket sales were $468 million, up 3% and driven by strong demand in the OE channel from larger customers and market share gains in the independent channel.

現在我將提供一些有關第四季度銷售的詳細資訊。行動解決方案部門的總銷售額為 5.88 億美元，比上年增長 2%。售後市場銷售額為 4.68 億美元，成長 3%，這得益於大客戶對 OE 通路的強勁需求以及獨立通路市場份額的成長。

On the first-fit side, Off-Road sales of $95 million increased 5% as we cycled against weaker agriculture market conditions in the prior year. On-Road sales of $26 million declined 20% as a result of cyclical declines in global truck production.

在首次安裝方面，由於去年農業市場狀況較弱，非公路車輛銷售額成長了 5%，達到 9,500 萬美元。由於全球卡車產量週期性下降，公路卡車銷售額為 2,600 萬美元，下降了 20%。

Now on our Mobile Solutions business in China. Sales grew 14% year-over-year with increases in first-fit and aftermarket, marking the fourth consecutive quarter of growth. While we are still cautious in the near term on the overall market in China, we are encouraged by the traction we are gaining with local customers. This quarter, we won another hydraulics program with a local manufacturer in the agriculture market, a sign of customer confidence in the Donaldson value proposition.

現在我們在中國開展行動解決方案業務。隨著首次安裝和售後市場的成長，銷售額年增 14%，這是連續第四個季度實現成長。雖然我們短期內對中國整體市場仍持謹慎態度，但我們對當地客戶日益增長的吸引力感到鼓舞。本季度，我們與農業市場的一家本地製造商贏得了另一個液壓項目，這表明客戶對唐納森價值主張充滿信心。

Turning to Industrial Solutions. Industrial sales rose 8% to $310 million. IFS sales of $262 million grew 11% from new equipment sales in dust collection in Europe and North America and power generation project timing. Aerospace & Defense sales were $47 million, a 6% decrease driven by a decline in defense sales following the completion of a few large projects.

轉向工業解決方案。工業銷售額成長8%，達到3.1億美元。 IFS銷售額達2.62億美元，成長11%，主要得益於歐洲和北美除塵新設備銷售以及發電項目計時。航空航太和國防銷售額為 4,700 萬美元，下降 6%，原因是一些大型專案完成後國防銷售額下降。

In Life Sciences, sales of $82 million rose 14% compared with prior year. Double-digit growth in food and beverage and disk drive was partially offset by a decline in bioprocessing sales. In total, our results this quarter capped off a tremendous year for the company.

生命科學領域的銷售額為 8,200 萬美元，較前一年成長 14%。食品飲料和磁碟機的兩位數成長被生物加工銷售額的下降部分抵消。總體而言，本季的業績為公司輝煌的一年畫上了圓滿的句號。

Looking ahead, Donaldson is well positioned to further strengthen our foundation and capitalize on improving market conditions and cyclical trends. As such, we are forecasting at the midpoint of our guidance ranges, another record year in fiscal 2026 with total sales of $3.8 billion inclusive of sales growth in each of our segments, an all-time high operating margin of 16.4% ahead of the fiscal 2026 target we laid out one year ago and record earnings of $4 per share.

展望未來，唐納森已做好準備，進一步鞏固我們的基礎，並利用不斷改善的市場條件和週期性趨勢。因此，我們預測，在指導範圍的中點，2026 財年將再創紀錄，總銷售額將達到 38 億美元（包括我們每個部門的銷售成長），營業利潤率將達到歷史最高水準 16.4%，高於我們一年前製定的 2026 財年目標，每股收益將達到創紀錄的 4 美元。

Now I'll turn it over to Brad, who will provide more details on the financials and our outlook for fiscal 2026. Brad?

現在我將把時間交給布拉德，他將提供有關財務狀況和我們對 2026 財年的展望的更多細節。布拉德？

Thanks, Tod. Good morning, everyone. I want to start by thanking the Donaldson team for delivering another strong year. We were navigating a complicated environment and had to make some difficult decisions, particularly related to structural cost changes and the teams delivered.

謝謝，托德。大家早安。首先，我要感謝唐納森團隊又取得了出色的成績。我們正處於一個複雜的環境中，必須做出一些艱難的決定，特別是與結構成本變化和團隊交付相關的決定。

Our approach is simple, grow the company, grow profitability, maintain expense discipline, make thoughtful investments and return cash to our shareholders. We did that in fiscal 2025 and expect to do it again in fiscal '26.

我們的方法很簡單，發展公司，提高獲利能力，保持費用紀律，進行深思熟慮的投資並向股東返還現金。我們在 2025 財年做到了這一點，並預計在 2026 財年再次做到。

Now turning to a few highlights from the quarter. Note that my profit comments will exclude the impact from the restructuring and other charges Sarika referenced earlier. Total sales increased 5%. Operating margin was a record 16.4%, up 10 basis points over the prior year.

現在來看看本季的一些亮點。請注意，我的利潤評論將排除重組和 Sarika 之前提到的其他費用的影響。總銷售額成長了5%。營業利益率達到創紀錄的 16.4%，比上年增長 10 個基點。

Adjusted EPS was $1.03, 10% above the prior year. And as expected, cash conversion was strong at 123% and as we successfully worked down inventory and delivered to our customers. Going further into the P&L, gross margin was 34.8%, down 140 basis points from 2024. The impact from tariff-related inflation on our LIFO inventory valuation was significant this quarter.

調整後的每股收益為 1.03 美元，比上年增長 10%。正如預期的那樣，現金轉換率高達 123%，我們成功減少了庫存並交付給客戶。進一步檢視損益表，毛利率為 34.8%，較 2024 年下降 140 個基點。本季度，與關稅相關的通貨膨脹對我們的後進先出庫存估值的影響很大。

Expanding on this point, we use LIFO accounting for our US business and can experience increased costs or benefits depending on whether we are in an inflationary or deflationary environment. The current inflationary environment resulted in higher costs accounting for nearly all of the year-over-year change.

進一步闡述這一點，我們對美國業務採用後進先出法會計，並且根據我們處於通貨膨脹還是通貨緊縮環境，我們可能會經歷成本或收益的增加。當前的通膨環境導致成本上升，幾乎佔了所有同比變化。

Said differently, excluding the impact of LIFO in fiscal 2025 and 2024, gross margin would have been approximately flat to the prior year. In terms of underlying business gross margin, we remain in a solid position. Productivity headwinds in the quarter from optimization projects are being offset by efficiency and fixed cost leverage in our facilities, and we continue to do an excellent job managing price versus cost, including those costs related to tariffs.

換句話說，如果不考慮 2025 財年和 2024 財年的後進先出法的影響，毛利率將與前一年基本持平。就基礎業務毛利率而言，我們仍然處於穩固地位。本季度優化專案帶來的生產力阻力被我們設施的效率和固定成本槓桿所抵消，我們繼續出色地管理價格與成本，包括與關稅相關的成本。

Given the importance of the topic, I want to underscore our view that over time, we plan to be profit dollar neutral with respect to ongoing tariffs. We remain confident in this due to a few things. First, our region-for-region global footprint. Second, nearly 90% of our goods shipped from Mexico, where our biggest exposure lies are US MCA qualified and currently exempt from tariffs.

鑑於該主題的重要性，我想強調我們的觀點，即隨著時間的推移，我們計劃在持續的關稅方面保持利潤中立。由於一些原因，我們對此仍然充滿信心。首先，我們在全球各地區的影響力。其次，我們近 90% 的貨物都是從墨西哥運出的，而我們最大的客戶就是墨西哥，這些貨物都符合美國 MCA 資格，目前免關稅。

And third, our pricing muscle, which is strong and supported by the high-tech value of our solutions and our ability to deliver reliably to our customers. In addition to managing price versus cost, our team has successfully managed operating expenses during a fluid environment, including with restructuring actions.

第三，我們的定價能力非常強大，這得益於我們解決方案的高科技價值以及我們可靠地向客戶交付產品的能力。除了管理價格與成本之外，我們的團隊還在流動環境中成功管理營運費用，包括重組行動。

In the quarter, operating expense as a rate of sales improved to 18.3% and from 19.9% a year ago, a continuation of the positive trend we've seen all year. In terms of segment profitability, Mobile Solutions pre-tax profit margin was a record 19.1%, up 80 basis points year-over-year due to the timing of inventory adjustments and leverage on higher sales.

本季度，營業費用佔銷售額的比例從去年的 19.9% 提高到 18.3%，延續了我們全年看到的正面趨勢。在分部獲利能力方面，由於庫存調整時機和銷售額增加的槓桿作用，行動解決方案稅前利潤率達到創紀錄的 19.1%，較去年同期成長 80 個基點。

Industrial Solutions pre-tax margin was also a record at 20.9%, up 80 basis points due to leverage on higher sales. Life Sciences pre-tax margin improved to 5.3% from a negative 1.2% a year ago. Strength in high-margin food and beverage and disk drive sales and leverage from an optimized cost structure across the segment more than offset continued investment in bioprocessing as we work to scale these businesses.

工業解決方案的稅前利潤率也創下了 20.9% 的紀錄，由於銷售額增加而上漲了 80 個基點。生命科學稅前利潤率從一年前的-1.2%提高到5.3%。在我們努力擴大這些業務規模的過程中，高利潤食品飲料和磁碟機銷售的強勁表現以及整個部門優化成本結構帶來的槓桿作用，足以抵消對生物加工的持續投資。

Now I'll walk through the details of our fiscal 2016 outlook. First, on sales. We are projecting full year total sales to increase between 1% and 5%, with sales of $3.8 billion at the midpoint of this range. This includes pricing of approximately 1%. The impacts from both currency translation and tariffs are expected to be negligible.

現在我將詳細介紹我們的 2016 財年展望。首先，關於銷售。我們預計全年總銷售額將成長 1% 至 5%，中間值為 38 億美元。其中包括約 1% 的定價。預計貨幣換算和關稅的影響可以忽略不計。

For Mobile Solutions, we're projecting sales to be flat to up 4%. We expect first-fit sales to rebound after comparing against 2025 and a year in which we saw significant end market weakness in agriculture and transportation.

對於行動解決方案，我們預計銷售額將持平或成長 4%。我們預計，與 2025 年相比，首次適配銷售量將會反彈，而 2025 年我們看到農業和運輸終端市場明顯疲軟。

Off-Road sales are expected to grow mid single-digits and On-Road sales are projected to increase high single digits. Aftermarket sales are expected to grow low single-digits from continued market share gains and vehicle utilization rates.

預計越野車銷售將成長中等個位數，公路車銷售量預計將成長高個位數。隨著市場份額和車輛利用率的持續增長，售後市場銷售額預計將實現低個位數成長。

In Industrial Solutions, sales are forecast to grow between 2% and 6%, driven by a mid single-digit increase in IFS, where sales are expected to improve across all businesses, including strategically important areas such as aftermarket and services. Aerospace & Defense sales are projected to be flat after cycling against record levels in the prior year.

在工業解決方案領域，預計銷售額將成長 2% 至 6%，這得益於 IFS 中等個位數的成長，預計所有業務的銷售額都將改善，包括售後市場和服務等具有戰略重要性的領域。航空航太和國防銷售額預計將與上一年創紀錄的水平持平。

In Life Sciences, we expect sales growth between 1% and 5% from continued momentum in our larger legacy businesses, Food & Beverage and Disk Drive. We also project an increase in segment profit margin in fiscal 2026, growing to mid-single digits as a rate of sales and building on our momentum from 2025.

在生命科學領域，我們預計銷售額將成長 1% 至 5%，這得益於我們較大的傳統業務——食品飲料和磁碟機的持續成長動能。我們也預計，2026 財年的分部利潤率將有所提高，銷售額將成長至中等個位數，並延續 2025 年的成長動能。

For the total company, we are projecting full year operating margin once again at record levels and between 16.1% and 16.7%. At the midpoint, this is a 70 basis point year-over-year improvement driven by gross margin expansion and expense leverage. Our expected performance represents an incremental margin of approximately 40%. Our EPS guidance is $3.92 to $4.08, centered on $4 per share.

對於整個公司而言，我們預計全年營業利潤率將再次創下歷史新高，介於 16.1% 至 16.7% 之間。從中間值來看，這是由毛利率擴大和費用槓桿推動的 70 個基點的同比增長。我們的預期業績代表約 40% 的增量利潤。我們的每股盈餘預期為 3.92 美元至 4.08 美元，以每股 4 美元為中心。

The midpoint of our top and bottom-line guidance ranges represent 9% earnings growth on 3% sales growth, underscoring our ability to deliver higher levels of profitability on higher sales.

我們的頂線和底線指導範圍的中點代表著 3% 的銷售額增長和 9% 的盈利增長，這凸顯了我們有能力在更高的銷售額上實現更高水平的盈利能力。

During our Investor Day in 2023, we projected fiscal 2026 operating margin at the midpoint of our guidance range to be 16%, along with an incremental margin over a cycle between 20% and 24%. While our end markets have not behaved as expected, taking the midpoint of our current fiscal 2026 guidance ranges, we have more than delivered on our profit targets, demonstrating our strong commitment to margin expansion over time.

在 2023 年的投資者日期間，我們預測 2026 財年的營業利潤率將達到指導範圍的中點 16%，週期內的增量利潤率將在 20% 至 24% 之間。雖然我們的終端市場表現不如預期，處於我們目前 2026 財年指導範圍的中點，但我們已經超額完成了利潤目標，表明了我們對長期擴大利潤率的堅定承諾。

Importantly, our profit growth is about long-term structural changes that involve both subtraction and addition, meaning we are optimizing costs while investing in the most important strategic opportunities.

重要的是，我們的利潤成長是關於長期結構性變化的，既涉及減法也涉及加法，這意味著我們在優化成本的同時投資於最重要的策略機會。

Back to the fiscal 2026 outlook. Cash conversion is expected to be in the range of 85% to 95%, a year-over-year improvement and consistent with historic averages. Our cash generation, combined with our low leverage ratio gives us tremendous financial flexibility to invest for future growth and that is always our top priority when it comes to strategic capital deployment.

回到2026財年展望。現金轉換率預計在 85% 至 95% 之間，年比有所改善，與歷史平均值一致。我們的現金產生能力加上低槓桿率為我們提供了巨大的財務靈活性，可以投資於未來的成長，這始終是我們在策略資本部署方面的首要任務。

From an organic perspective, we're continuing to find new ways to penetrate new and existing markets through our R&D investments as well as capital expenditures, which are forecast between $65 million and $85 million and include key investments in new products and technologies across all of our segments.

從有機角度來看，我們將繼續透過研發投資和資本支出尋找新的方式來滲透新市場和現有市場，預計投資額在 6,500 萬美元至 8,500 萬美元之間，其中包括對我們所有部門的新產品和新技術的重點投資。

We are highly committed to expansion through M&A and actively work through a pipeline of opportunities, largely in our life sciences and industrial businesses. While we have the capability and the commitment we are disciplined in our activities, pursuing opportunities with our strategic and financial criteria in mind.

我們致力於透過併購實現擴張，並積極尋找各種機會，主要集中在生命科學和工業業務領域。雖然我們有能力和決心，但我們在活動中嚴格遵守紀律，在尋求機會時始終牢記策略和財務標準。

As we've demonstrated, the ongoing return of cash to shareholders as part of the Donaldson DNA and the value we create. Our financial performance has allowed us to pay and increase dividends annually for decades and calendar year 2025 is expected to be no exception, marking the 30th year in a row of increases, allowing us to maintain our constituency in the S&P High Yield Dividend Aristocrat Index.

正如我們所展示的，持續向股東返還現金是唐納森 DNA 的一部分，也是我們創造的價值的一部分。我們的財務表現使我們能夠數十年來每年支付和增加股息，預計 2025 年也不例外，這將是連續第 30 年增加股息，使我們能夠保持在標準普爾高收益股息貴族指數中的選區。

Further, in fiscal 2026, we are forecasting a repurchase of 2% to 3% of our outstanding shares. Through the strength of our global teams, technological expertise and deep customer relationships, we look forward to delivering for all of our stakeholders in fiscal 2026.

此外，在 2026 財年，我們預計將回購 2% 至 3% 的流通股。憑藉我們強大的全球團隊、技術專長和深厚的客戶關係，我們期待在 2026 財年為所有利害關係人提供服務。

Now I'll turn the call back to Tod.

現在我將把電話轉回給托德。

Thanks, Brad. Donaldson is the leader in technology-led filtration, and we are strengthening that position. We have a proven history of focusing on our customers' needs through all market conditions and continue to advance our value proposition through our strategic initiatives and disciplined investments.

謝謝，布拉德。唐納森是技術主導型過濾領域的領導者，我們正在加強這一地位。我們始終致力於在任何市場條件下關注客戶的需求，並透過策略性舉措和嚴謹的投資不斷推進我們的價值主張。

The essential nature of our products for customers enables our razor to sell razor blade model which has penetrated across our business, fueling our durable, profitable growth today and for the future. Our success would not be possible without the talented Donaldson employees around the globe. I would like to close by thanking them for their dedication and service and I'm excited about what we will collectively accomplish in the future.

我們的產品以客戶為中心，這使得我們的剃刀能夠銷售刀片模型，該模型已滲透到我們的整個業務中，為我們現在和未來持久的盈利增長提供動力。如果沒有全球各地才華洋溢的唐納森員工，我們的成功就不可能實現。最後，我要感謝他們的奉獻和服務，我對我們未來將共同取得的成就感到興奮。

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

說完這些，我現在將把電話轉回給接線員，以便開通問答熱線。

(Operator Instructions) Bryan Blair, Oppenheimer.

（操作員指示）布萊恩·布萊爾，奧本海默。

Thank you. Good morning, everyone. That was an interesting comment on ag demands being at trough or potentially moving off trough. That's encouraging. To level set on that, when did ag orders bottom for your team and what kind of growth are you seeing in the early part of fiscal 2016?

謝謝。大家早安。這是關於農業需求處於低谷或可能走出低谷的一個有趣的評論。這令人鼓舞。為了確定這一點，您的團隊的農業訂單何時觸底，以及在 2016 財年初期您看到了什麼樣的成長？

Yeah, Bryan. So this is Tod. When you really look at what ag has done, it's a pretty low comp. And so, consequently, it's tough to imagine that it's going to fall further. Ag, we feel bottomed within the quarter because we did see some slight uptick, but we're not talking double-digit uptick or anything like that. We're talking low single digits, and we were encouraged the fact that it has stopped falling.

是的，布萊恩。這就是托德。當你真正看看 ag 所做的事情時，你會發現它的競爭力相當低。因此，很難想像它會進一步下跌。Ag，我們感覺本季已經觸底，因為我們確實看到了一些小幅上漲，但我們談論的並不是兩位數的上漲或類似的情況。我們談論的是低個位數，我們很高興看到它已經停止下降。

Okay. Understood. And in terms of the commercialization of your bioprocessing solutions, we know that the timeline has been delayed relative to earlier expectations. How should we think about fiscal '26 progression? And is there the prospect of growth inflection, and with that can bioprocessing in isolation get to break even [EBITs] or potentially inflect to profitability this year?

好的。明白了。就您的生物加工解決方案的商業化而言，我們知道時間表相對於先前的預期有所延遲。我們該如何看待 26 年財政年度的進展？是否存在成長拐點的前景？生物加工能否單獨實現收支平衡 [EBIT] 或在今年可能獲利？

So when you look at the total Life Sciences segment, our traditional businesses, they're doing quite well. performing to all profit expectations, et cetera. They're growing nicely, clearly carrying the day within the Life Sciences guide. When you then get into the upstream portion of bioprocessing, that's more muted. Clearly, troubled as capacity expansion, large projects, those still have not seen any kind of a turnaround creating headwind in the business.

因此，當您查看整個生命科學部門時，我們的傳統業務表現相當不錯，達到了所有利潤預期等等。它們發展得很好，顯然在生命科學領域佔據了主導地位。當你進入生物加工的上游部分時，情況就變得更加平靜了。顯然，產能擴張、大型專案等問題仍未出現任何轉機，為業務帶來了阻力。

Then the second piece of this would be of the bioprocessing story would be the downstream application piece where we're creating new products to bring those out to the market to create revenue and growth in that fashion. That is taking a little bit longer to get those projects to market.

那么生物加工故事的第二部分就是下游應用部分，我們正在創造新產品並將其推向市場，以這種方式創造收入和成長。將這些項目推向市場需要更長的時間。

We made really good progress in '25. We do not see the revenue expectation really with a high kind of a bounce in '26. That's likely more in the '27 timeframe as we get through testing of those products and bring them to market perhaps as in the later part of fiscal '26.

我們在 25 年取得了非常好的進展。我們並不認為 26 年的營收預期會大幅反彈。這可能更多地發生在 27 年的時間範圍內，因為我們要完成這些產品的測試，並將它們推向市場，大概是在 26 財年後期。

Some of those products have been released. You saw those announcements with our Purexa type of a brand as well Isolere Bio has also released some of those, but we still have more to release. And so, you baked all of that into the Life Sciences guide, and that's where you see the mid single-digit growth and where it's coming from.

其中一些產品已經發布。您也看到了我們 Purexa 品牌的公告，Isolere Bio 也發布了其中一些，但我們還有更多公告要發布。因此，您將所有這些都融入了生命科學指南中，這就是您看到的中等個位數成長及其來源。

Got it. I appreciate the color there. And one more quick one, if I may. The IFS outlook for mid single-digit growth, how is your team thinking about first fit versus aftermarket revenue growth this year and the latter obviously being inclusive of service revenue.

知道了。我很欣賞那裡的色彩。如果可以的話，我再快速問一下。IFS 預計成長速度為中等個位數，您的團隊如何看待今年首次安裝與售後市場的收入成長，後者顯然包括服務收入。

So first-fit within that business is a bit mixed by region. The US and Europe continue to be strong. APAC is a little bit more troubled, LatAm is certainly troubled, but it's really a replacement part story at this point in time for us because we continue to gain share as a result of our strategies, good execution, we do expect the US to hold, and we continue to take first-fit share but really, it's largely a replacement part story within that business. Replacement parts were up broad-based across our industrial sector and particularly within IFS in multiple regions.

因此，該業務中的首次適配因地區不同而略有差異。美國和歐洲持續強勁。亞太地區的情況稍微麻煩一些，拉丁美洲的情況肯定也很麻煩，但目前對於我們來說，這確實是一個替換零件的故事，因為我們憑藉戰略和良好的執行繼續獲得份額，我們確實預計美國將保持下去，並且我們將繼續獲得首次適用的份額，但實際上，這主要是該業務中的替換零件故事。我們整個工業部門的替換零件普遍上漲，特別是在多個地區的 IFS 中。

Bryan, this is Brad. I'll add one point is that I think what's encouraging about our plan is that it's also broad-based across the different businesses within IFS. It's not as though the IFS growth is predicated on one business really hitting hard and then everything else is luke warm. We expect this solid performance over the course of the year across all these businesses.

布萊恩，這是布萊德。我要補充一點，我認為我們的計劃令人鼓舞的是，它也廣泛地涵蓋了 IFS 內的不同業務。IFS 的成長並不取決於某項業務受到嚴重打擊，而其他業務則不溫不火。我們預計所有這些業務在今年都將表現穩健。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

Good morning, everyone. I guess I'll follow up on Bryan's bio question. Obviously, the market there hasn't done you any favors over the last few years in terms of hitting those Investor Day targets from a few years ago. What is it that you really need to fundamentally see a change in those markets in order for you to see that ramp up in growth that we've been waiting for as you started to get into these markets?

大家早安。我想我會跟進布萊恩的個人簡介問題。顯然，過去幾年那裡的市場並沒有為你帶來任何好處，讓你無法實現幾年前的投資人日目標。當您開始進入這些市場時，為了看到我們一直在等待的成長加速，您真正需要從根本上看到這些市場發生什麼變化？

So first, we have to get our new product development across the finish line, be able to really produce that at scale that the customers really would like to see. We're in laboratories with tests. All of our products are very well received. They really love them. And we're just finalizing the development of being able to sell those at scale, making sure we have GMP manufacturing capabilities.

因此，首先，我們必須完成新產品的開發，並且能夠真正大規模地生產客戶真正希望看到的產品。我們在實驗室進行測試。我們的所有產品都廣受歡迎。他們真的很喜歡它們。我們剛剛完成了大規模銷售這些產品的開發，確保我們擁有 GMP 製造能力。

And so, those later phases of getting it ready for production is kind of where we are. We've got to finish that off and then we should be able to see some market pickup. But overall, early returns as far as the capabilities, the differentiation, the disruption that it could cause are really positive. But when we see the growth, it will be likely more in '27 where we really start to commercialize.

因此，我們現在處於為生產做好準備的後期階段。我們必須完成這項工作，然後我們就能看到市場回升。但總體而言，就其能力、差異化和可能帶來的顛覆而言，早期回報確實是正面的。但當我們看到成長時，很可能是在 27 年，那時我們才真正開始商業化。

I guess that's the other question I wanted to ask about was on the connected side. I think you were talking about a 30% increase in the number of connected products in dust collection that you have out there. I mean, are we talking about going from 3% to 4% or 30% to 40% connected?

我想這是我想問的另一個問題，是關於連結方面的。我認為你說的是，你們的集塵聯網產品數量增加了 30%。我的意思是，我們談論的是從 3% 到 4% 還是從 30% 到 40% 的連接率？

And then I guess a follow-up question to that is how do you monetize that? Is this something that you can monetize on its own? Or is this value that's provided to the customer that resulted in pulling more hardware through rather than like a subscription model or something like that? Thanks.

然後我想接下來的問題是如何將其貨幣化？這是你能獨立賺錢的東西嗎？或者，這種提供給客戶的價值是否會導致吸引更多的硬件，而不是像訂閱模式或類似的東西？謝謝。

Yeah. So Nathan, it is not a subscription model. It is really deepening the customer relationships to be able to have them really manage their equipment more efficiently either from energy savings and giving them more uptime. And then that deeper customer relationship really allows us to do more business with them on a per piece of equipment basis in all of the replacement parts as well as services.

是的。所以 Nathan，這不是訂閱模式。它確實加深了客戶關係，使他們能夠真正更有效地管理他們的設備，無論是從節省能源還是讓他們有更多的正常運作時間。然後，這種更深層的客戶關係確實使我們能夠在每台設備上與他們開展更多業務，包括所有替換零件和服務。

And we have proven with the thousands that we have connected that we absolutely increase our replacement parts activities when we connect a piece of equipment versus a non-piece of equipment. You see that as one of the drivers.

我們已經透過連接的數千台設備證明，當我們連接一台設備而不是非設備時，我們絕對會增加更換零件的活動。您認為這是驅動因素之一。

There were years ago where our IAF business would be more 60% to 65% first-fit and then 35% to 40% replacement parts. Today, we're at 50:50. So you can see how that replacement parts of that connected-based products is really helping us mix that particular business profitability up and that's the importance of that strategy.

幾年前，我們的 IAF 業務中 60% 到 65% 為首次裝配，35% 到 40% 為更換零件。今天，我們的比例是 50:50。因此，您可以看到，基於連接的產品的替換部件確實幫助我們提高了特定業務的盈利能力，這就是該策略的重要性。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

Hi. Good morning. What you guys have done with the margins over the last four years is pretty incredible and I'm just wondering, can you talk about a little bit further about how you get 40% incremental operating margin in fiscal '26 after such strong incremental this year is going even higher, maybe to start there and then I have a follow up.

你好。早安.你們在過去四年中對利潤率所做的改進非常令人難以置信，我只是想知道，在如此強勁的增長之後，您能否進一步談談如何在 26 財年獲得 40% 的增量營業利潤率，並且今年的增長還會更高，也許可以從那裡開始，然後我再跟進。

Sure. Hi, Brian. This is Brad. First off, if you just pick the midpoint of our op margin range, 16.4%, that's about 70 bps up from prior year. The largest portion of that is coming from gross margin expansion, and then we are going to get some expense leverage as well. Given the more muted sales environment that we're dealing with, we're continuing to push for a benefit from the structural cost reductions that we had this year.

當然。你好，布萊恩。這是布拉德。首先，如果您只選擇我們的營業利潤率範圍的中點 16.4%，那麼這比上一年高出約 70 個基點。其中最大一部分來自毛利率的擴大，然後我們還將獲得一些費用槓桿。鑑於我們所面臨的銷售環境較為低迷，我們將繼續努力從今年的結構性成本削減中獲益。

So we'll expect expenses to stay very under control. And then the gross margin is bouncing back a little bit from the LIFO that I mentioned, but we're also able to -- we do expect to offset the tariff impact. Price versus cost will remain okay for us.

因此我們預計支出將保持在可控範圍內。然後毛利率從我提到的後進先出法中略有回升，但我們也能夠——我們確實希望抵消關稅的影響。對於我們來說價格與成本仍將維持可接受水準。

And then on top of it, as we get through some of the footprint work, we're going to start lapping the heavier lift there later in the year, and that will give us a little bit more of a tailwind. I'm talking basis points here. I'm not talking points. But overall, the formula for that incremental, I think, given the environment is pretty positive. And obviously, we're celebrating that a bit too.

除此之外，當我們完成一些足跡工作時，我們將在今年晚些時候開始在那裡進行更重的升力，這將為我們帶來更多的順風。我在這裡談論的是基點。我不是說重點。但總體而言，我認為，考慮到目前的環境，這種增量公式是相當積極的。顯然，我們也對此表示慶祝。

How do you expect it to trend throughout the year, the operating margin? Is it going to be moving up throughout the year? Or is it a big step up in the second half? Or how does it look?

您預計全年營業利潤率將如何變動？全年都會漲嗎？還是下半場會有很大的進步？或者它看起來怎麼樣？

Yeah. We'll continue to step up over the year. And then one thing, just to give some perspective on how to think about it in terms of the semesters. We often talk about our or sales being tilted towards the back half. It's kind of a [48:52], [49:51]. I can tell you profit margin is typically more tilted than that. So by several points difference where the back half is going to generate more profit as we get a little bit of a sales pickup and then leverage fixed costs as well.

是的。我們會在新的一年繼續加大力度。然後還有一件事，只是想給一些關於如何從學期的角度來思考這個問題的觀點。我們經常談論我們的銷售額向後半部分傾斜。這有點像[48:52]，[49:51]。我可以告訴你，利潤率通常比這更傾斜。因此，隨著銷售額略有回升，後半部將產生更多利潤，同時也將利用固定成本。

Okay. Now in a situation where you hit the midpoint of the guidance, you mentioned 1 point of price, so that would give us like 2% volume growth for fiscal '26. How does that look in terms of a progression throughout the year, the growth rate. Can you talk about what growth rate you're expecting each quarter?

好的。現在，在您達到指導中點的情況下，您提到了 1 個價格點，因此這將為我們帶來 26 財年的 2% 銷售成長。從全年的進展和成長率來看，情況如何？您能談談您預計每季的成長率是多少嗎？

Yeah. I would say you can look at a two year as a bit of a smoothing mechanism, but it looks in fiscal '26 that quarter-by-quarter percent increase looks much less dramatic than it did in fiscal '25. In terms of volume versus price, we're actually fairly consistent with pricing quarter by quarter.

是的。我想說的是，你可以將兩年看作是一種平滑機制，但在 26 財年，逐季度的百分比增幅看起來遠不如 25 財年那麼顯著。就數量與價格而言，我們實際上每季的定價都相當一致。

There are some moments where as we implement new pricing, we typically do in certain markets in January. So there's a little bit of a step up there. But overall, that's much more muted. The variability then comes from volume -- tends to come from volume.

當我們實施新的定價時，我們通常會在一月在某些市場實施。因此，這裡有一點點進步。但總體而言，情況要平靜得多。那麼，變化性就來自於體積──往往來自於體積。

I guess I didn't really understand the first part of it. Like is there a chance that you're going to see like [1%] -- like a first half of the year that's flat in the second half, up 4% in terms of volume? Or is that 2% pretty smooth throughout the year in terms I missed --

我想我並沒有真正理解它的第一部分。例如，有沒有可能看到 [1%]——例如上半年持平，下半年銷售成長 4%？或者說，按照我所忽略的，2% 的成長在全年來看是相當平穩的--

No. It's okay. It's plus or minus. But again, I would point you back to the [48:52-ish] for the sales mix. That will get you where you need to be.

不。沒關係。有加有減。但是，我再次提醒您注意 [48:52-ish] 的銷售組合。這會讓你到達你需要去的地方。

Laurence Alexander, Jefferies.

勞倫斯‧亞歷山大，傑富瑞集團。

Good morning. I guess, first of all, just to near term on demand, can you give a little bit of detail on what you're seeing in China and the mix there aftermarket versus first-fit now. With respect to commentary on backlogs, can you characterize how current backlogs compare with, I don't know, whatever you view is like typical? And then I have a longer-term question.

早安.我想，首先，就近期的需求而言，您能否詳細介紹一下您在中國看到的情況以及售後市場與首次安裝市場的組合。關於積壓的評論，您能否描述一下當前的積壓情況與您認為的典型情況相比如何？然後我有一個長期問題。

Sure. So hitting those two real quick. So China incoming orders are up, obviously, much easier comps. We're pleased to see some positive economic progression there within the quarter, but we also remain cautious -- a little bit cautiously optimistic with China and is China going to be strong going forward. Not sure. So we're a bit more careful on the outlook of China.

當然。所以要快速擊中那兩個。因此，中國訂單量明顯增加，相較之下要容易得多。我們很高興看到本季度中國經濟取得了一些積極的進展，但我們也保持謹慎——對中國經濟未來是否會強勁增長持謹慎樂觀的態度。沒有把握。因此，我們對中國的前景更加謹慎。

Our team continues to execute real well there. We continue to win new projects. And so, we continue to be optimistic, but also very careful. Relative to overall company backlogs, I would tell you our backlogs support the guide. We feel very comfortable with that.

我們的團隊在那裡繼續表現出色。我們不斷贏得新項目。因此，我們繼續保持樂觀，但也非常謹慎。相對於公司整體的積壓訂單，我想告訴你我們的積壓訂單支持指南。我們對此感到非常滿意。

Also very important is our late backlog as a percent of sales are now below pre-pandemic levels. And that really is the reason for my comments in the opening remarks, congratulating our operations team who just had a fantastic year, taking care of our customers and helping us grow our business.

同樣非常重要的是，我們的積壓訂單佔銷售額的百分比現在低於疫情前的水平。這就是我在開場白中發表評論的原因，祝賀我們的營運團隊度過了美好的一年，照顧我們的客戶並幫助我們發展業務。

And then with respect to the margins, I want to see if I can frame this in a way that you'd be willing to nibble on or answer somewhat. As you think about the parts of the business that have the weakest end markets currently, can you characterize their margins relative to the rest of the company.

然後，關於利潤，我想看看我是否可以以一種您願意細細品味或回答的方式來構建它。當您考慮目前終端市場最弱的業務部分時，您能否描述出它們相對於公司其他部分的利潤率。

I really what I'm trying to get at is it's been quite a while since we've seen multiple years of decent end market demand. If you did get three, four years of decent end markets, not sort of red hot but decent, is it reasonable to think that your margins for the overall company could move into the low-20s given the incremental margins you've been consistently posting? Or is there anything structural in your mix that would be an obstacle to that?

我真正想說的是，我們已經很久沒有看到連續幾年終端市場需求良好了。如果您確實獲得了三四年不錯的終端市場，雖然不是那種火爆的市場，但表現還不錯，那麼考慮到您一直在持續發布的增量利潤率，您是否有理由認為整個公司的利潤率可能會進入 20% 以下？或者您的混音中是否存在任何結構性因素會對此造成阻礙？

Hi, Laurence. This is Brad. So I'll nibble. I think the first thing is the composition and the stratification of margins is important. It's no secret. We've talked about it for a very long time in the spectrum of our businesses, OEs tend to have a lower gross margin rate than the rest of the company.

你好，勞倫斯。這是布拉德。所以我會一點點吃下去。我認為首先邊緣的構成和分層很重要。這不是什麼秘密。我們已經在我們的業務範圍內討論了很長時間，原始設備製造商的毛利率往往低於公司的其他部分。

So to your question, as we expect that those will rebound at some point, we don't know when. Hopefully, we are at this bottom level we've talked about. But that would create some mix pressure within our gross margins.

所以對於你的問題，我們預計這些會在某個時候反彈，但我們不知道具體時間。希望我們正處於我們所討論的最低水平。但這會給我們的毛利率帶來一些混合壓力。

But at the same time, we feel like we're in a very good position with our structural costs and things like our footprint optimization, consolidation of plants, all of this gives us a chance to leverage more aggressively than probably we would have in prior periods before this work was done. So I'm not going to peg it to a number. But as you talk about [20s], for us, the idea of continuing to expand our operating margin is absolutely alive and well.

但同時，我們覺得我們在結構成本、足跡優化、工廠整合等方面處於非常有利的地位，所有這些都使我們有機會比在這項工作完成之前的時期更積極地利用槓桿。所以我不會把它與一個數字掛鉤。但正如你所說的[20年代]，對我們來說，繼續擴大營業利潤率的想法絕對是可行的。

Angel Castillo, Morgan Stanley.

摩根士丹利的安吉爾·卡斯蒂略。

Hi. Good morning and congrats on the solid quarter here. I was just hoping we could expand a little bit more on maybe the kind of quarterly or first half versus second half cadence. I know you talked about ag and some of the other puts and takes within some of other segments.

你好。早安，恭喜本季業績表現穩健。我只是希望我們可以進一步擴展一下季度或上半年與下半年的節奏。我知道您談到了農業以及其他一些領域的一些投入和產出。

But if you could go subsegment Off-Road, On-Road, IFS, A&D just how you think about each of those first half versus second half? And where you're seeing already fiscal 1Q type of trends in line with guide and where you kind of anticipate a little bit more of a second half pickup and what drives that confidence?

但是，如果您可以細分越野、公路、IFS、A&D，那麼您如何看待前半部和後半部呢？您是否已經看到第一個財季的趨勢與預期一致，並且您預計下半年的趨勢會有所回升，是什麼推動了這種信心？

Angel, this is Brad. I'll start. If we think about the first-fit markets, I really do want to reiterate a point Tod made earlier. It's not as though we're expecting some remarkable change in the markets. So if you think about it over the course of the year, we would expect it to get better.

安吉爾，這是布拉德。我先開始了。如果我們考慮首次適應市場，我確實想重申托德之前提出的觀點。我們並不期待市場會發生重大變化。因此，如果你考慮這一年的情況，我們預計情況會變得更好。

That creates maybe more outsized movement in terms of the year-over-year increase. especially with On-Road, just we said high single digits. And I just want to point out, high single digits is millions of dollars, not tens of millions of dollars, given the relative size of this business.

就同​​比增長而言，這可能會導致更大的波動，特別是公路用車，我們只是說了高個位數的增長。我只想指出，考慮到這個業務的相對規模，高個位數是數百萬美元，而不是數千萬美元。

So I think that's an important part as we look through the year. Just smoothing it out, again, I'm a two-year stack person with some of these OE businesses because the comps have been noisy. Another one you brought up is Aerospace & Defense. And if you look quarter-by-quarter, this current year, that was a very lumpy business, due in part to orders, due in part to our ability to fulfill with our supply chain and more supplier constraints than ours.

所以我認為這是我們回顧這一年的一個重要部分。再說一遍，我在這些 OE 業務上已經待了兩年了，因為競爭對手的業績一直不太好。您提到的另一個領域是航空航太和國防。如果你逐季看，今年的業務表現非常不穩定，部分原因是訂單，部分原因是我們供應鏈的履行能力以及比我們更多的供應商限制。

So that creates a little bit more of a dynamic approach by quarter. But I think as you're thinking about the total company settling into what I said earlier -- in an earlier question about that 48:52 is an important starting point.

這樣，每季都會產生更動態的方法。但我認為，當您考慮整個公司都接受我之前所說的內容時——在先前的問題中，48:52 是一個重要的起點。

That's helpful. Thank you. And then I wanted to go back to capital allocation. Could you give us a little bit more maybe update or thoughts on kind of the M&A pipeline? Just your appetite for buybacks kind of beyond the 2% to 3% shares or shares outstanding. And then just on CapEx, your guidance, I think it implies kind of a decline year-over-year at the midpoint.

這很有幫助。謝謝。然後我想回到資本配置。您能否向我們提供一些有關併購管道的最新進展或想法？您對回購的興趣只是超出了 2% 到 3% 的股票或流通股數。然後僅就資本支出而言，您的指導，我認為它意味著中期同比有所下降。

Can you just talk about what kind of the factors that are driving that? And maybe how should we kind of read this from an organic investment opportunity and as well as potential benefits from OBBA or other kind of assessments of what that decline in CapEx means?

您能談談造成這種情況的因素有哪些嗎？也許我們應該如何從有機投資機會以及 OBBA 的潛在利益或其他類型的評估來解讀資本支出下降意味著什麼？

Sure. This is Brad again. I'm going to start, and then I'll let Tod pick up on the M&A side. But as far as CapEx, if you think as a rate of sales around that 2%, 2.5% range, fairly consistent. I would say like we're talking about with lots of our customers, we're being very smart and sharp with our prioritization so that we're not introducing a lot of projects at a time where the world is still a bit more uncertain.

當然。我又是布拉德。我要開始了，然後我會讓托德接手併購方面的事情。但就資本支出而言，如果您認為銷售率在 2% 到 2.5% 左右，則相當一致。我想說，就像我們與許多客戶談論的那樣，我們在確定優先事項時非常聰明和敏銳，這樣我們就不會在世界仍然有點不確定的時候推出很多項目。

For me, I wouldn't read too much into that. It's more about we snap the chalk line higher up on the list of good ideas versus lower on the list. Should things loosen up, obviously, we'll make sure that these are the right investments.

對我來說，我不會對此進行過多的解讀。更重要的是，我們在好主意清單的上方而不是下方劃上粉筆線。如果情況有所緩和，顯然我們會確保這些都是正確的投資。

Share repurchase, obviously, last year, we choose it at around the 4% level. And I think for us, it's about always having a balance. So to the extent that we can keep dry powder for possible M&A and continue to give cash back to shareholders, that's it.

股票回購，很明顯，去年我們選擇在4%左右的水平。我認為對我們來說，關鍵在於始終保持平衡。因此，只要我們能夠保留足夠的資金用於可能的併購，並繼續向股東返還現金，那就足夠了。

There's nothing real precise about that calculation as much as it's an ongoing conversation that Tod and I have as we think about how to best use our money at the time. So the 2% to 3% is much more of a normal. That's kind of where we started last year. We're typically in the 2%-ish range. And again, I think this is about starting the year with more of a normal position.

這個計算並沒有什麼真正精確之處，只是托德和我在思考如何最好地利用我們的錢時進行的持續對話。因此 2% 到 3% 是比較正常的。這就是我們去年開始做的事情。我們通常處於 2% 左右的範圍內。再次強調，我認為這是為了以更正常的狀態開始新的一年。

And then just billy on your M&A question. So our capital priorities have not changed, they remain, invest in the company for organic growth by companies. So take care of and continue to invest for inorganic growth dividends and then share re-buyback. And then -- so we still have an appetite for M&A.

然後就你的併購問題再談。因此，我們的資本重點沒有改變，仍然是投資於公司，實現公司的有機成長。因此，請謹慎並繼續投資無機成長股息，然後進行股票回購。然後——所以我們仍然對併購有興趣。

We still have a strong balance sheet that allows us to do that. We still have teams working on that. We have a very good pipeline. It's obviously strategic and focused, and we continue to work on that, and we'll continue to do so as part of our ongoing strategy.

我們仍然擁有強大的資產負債表，使我們能夠做到這一點。我們仍有團隊致力於此。我們擁有非常好的管道。這顯然具有戰略意義和重點，我們將繼續致力於此，並將繼續將其作為我們正在進行的戰略的一部分。

Tim Thein, Raymond James.

提姆泰恩、雷蒙詹姆斯。

Thank you. Good morning. I had a question first on the aftermarket business, specifically in the Mobile segment. And Tod, you mentioned the high utilization rates as one of the sound bites there. Can you maybe go a little bit further in terms of -- in the outlook? I mean if you go through some of these markets, and obviously, it's a global company, but in your largest market in North America, we've been depressed for some time on a first-fit basis.

謝謝。早安.我首先想問的是售後市場業務，特別是行動領域。托德，您提到了高利用率，這是其中一個要點。您能否就前景進一步闡述？我的意思是，如果你去一些這樣的市場，顯然，這是一家全球性公司，但在北美最大的市場，我們在「先適配」原則上已經沮喪了一段時間。

I'm just curious in your outlook in terms of by segment or as you look through the different channels what you're hearing from dealers, from customers in terms of just the underlying change in activity? Is it a stocking level? Is there anything that you can expand a bit further in terms of what's driving your outlook for that part of the business.

我只是好奇，從細分市場的角度來看，或者當您透過不同的管道查看時，您從經銷商和客戶那裡聽到了什麼，就活動的潛在變化而言？這是庫存水準嗎？關於推動您對該部分業務前景的因素，您能否進一步闡述？

Sure. If you look at our Mobile Solutions aftermarket, remember, 40% of that business is OE and 60% is in the independent channel. In 2025, we just finished, our OE business had a bounce. They were really restocking, if you will and our independent channel was a bit more muted.

當然。如果您看一下我們的行動解決方案售後市場，請記住，其中 40% 的業務來自 OE，而 60% 來自獨立管道。2025年，我們剛結束，我們的OE業務出現了反彈。如果你願意的話，他們確實在補貨，而我們的獨立管道則更加安靜。

Going forward, given the share gains that we have in the independent channel, we're very proud to have hit $1 billion within that segment last year. We do have share gains that we've baked into our forward look. We would expect more of an increase on the independent channel than the OE channel in '26.

展望未來，考慮到我們在獨立通路的份額成長，我們非常自豪去年該領域的銷售額達到了 10 億美元。我們的份額確實有所增長，並且已經融入我們的未來展望中。我們預期 26 年獨立通路的增幅將大於 OE 通路。

That's what we baked into the guide. So the kind of different timing on each other. But you wrap that all together, we're still gaining share and still would expect to grow that business, particularly in the US.

這就是我們指南中所包含的內容。所以彼此的時間安排是不同的。但綜合起來，我們的市場份額仍在成長，並且仍有望實現業務成長，尤其是在美國。

Okay. And I'm guessing you don't want to get too fine aligned on this. But is the opportunity with Mighty, is it in a similar -- should we think about that similar ZIP code is in terms of the benefit from NAPA or any help on that?

好的。我猜你不想在這一點上達成太好的一致。但 Mighty 的機會是否類似——我們是否應該考慮類似的郵遞區號是否能從 NAPA 獲得好處或提供任何幫助？

Sorry, we're not going to give you any help on that. We're just proud to have them on board and actually having a strong relationship building with them. We're really not going to guide on a single customer going forward.

抱歉，我們不會就此為您提供任何協助。我們很榮幸能夠與他們合作並建立牢固的關係。我們實際上不會為單一客戶提供指導。

Okay. Last quick one. Tod, just on the -- you mentioned this power gen super cycle. Any comments there in terms of backlog coverage? Is that getting to the point where you're starting into conversations. I'm guessing your book further out than normal. Any color just on that piece of industrial?

好的。最後一個快點。托德，剛才你提到了這個發電超級循環。對於積壓覆蓋範圍有什麼評論嗎？這是否就是你們開始對話的重點？我猜你的書比平常更遠。那塊工業區上有任何顏色嗎？

Sure. That business is full. The capacity, we could probably sell if we had more capacity more. But within that business, those projects are difficult to execute. And so, we remain very focused on executing. We do not see an end in sight. There has been no indication of the super cycle cooling at all. And so, we're really happy with our position.

當然。那個業務已經滿了。如果我們有更多的產能，我們可能就能賣出更多。但在該行業內，這些項目很難執行。因此，我們仍然非常注重執行。我們看不到盡頭。根本沒有任何跡象表明超級循環正在冷卻。因此，我們對自己的地位感到非常滿意。

The customers are happy. We've been delivering quite nicely, that just continues at a minimum through this full fiscal year. And you're right, we have a very long -- well, it's probably the longest look on backlogs in the company at this time.

顧客們很高興。我們的表現一直都很好，至少在整個財政年度，這種表現都會持續下去。你說得對，我們有一個非常長的——嗯，這可能是目前公司對積壓工作最長的審查。

Tim, this is Brad. I just want to add a little pile on to the power gen. The other thing that I think is really a testimonial to the team is there's still projects that we lose in that space because we're setting a certain price threshold, and we're committed to not taking bad business in these spots if it doesn't meet our return criteria.

提姆，這是布拉德。我只是想在發電廠上加一點東西。我認為另一件真正能證明團隊的事情是，我們仍然在該領域失去一些項目，因為我們設定了一定的價格門檻，並且我們承諾如果這些項目不符合我們的回報標準，我們就不會在這些領域接受不良業務。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

I'm sorry, if this was just asked. But you just said you wouldn't talk about a specific customer, but my question was going to be you're forecasting growth in these end markets, the heavy-duty end markets that have been really challenged. And you also mentioned some incremental distribution wins, which you mentioned upfront.

如果這只是我問的，我很抱歉。但您剛才說您不會談論特定的客戶，但我的問題是，您預測這些終端市場，即真正面臨挑戰的重型終端市場，將會成長。您還提到了一些增量分銷勝利，這是您前面提到的。

So I imagine are somewhat important or material. But I'm just wondering is your increased distribution presence contributing to your positive outlook and maybe outgrowing the market in the near term?

所以我認為它們有點重要或重要。但我只是想知道，您增加的分銷業務是否有助於您保持樂觀的前景，並可能在短期內超越市場？

Yes, as well as other share gains as well. It's not just a single customer there. The team within our Mobile Solutions aftermarket organization is doing excellent work. They continue to expand Donaldson on presence, take care of the customer, win important customers. They're just doing a great job, and we're benefiting from it, and we bake that into the guidance.

是的，其他股票也有收益。那裡不只有一個顧客。我們的行動解決方案售後市場組織內的團隊正在做著出色的工作。他們不斷擴大唐納森的影響力，照顧客戶，贏得重要客戶。他們做得很好，我們從中受益，並將其融入指導中。

Tim Thein, Raymond James.

提姆泰恩、雷蒙詹姆斯。

Sorry, last one for you. Tod, maybe it was a quarter or two ago, you were skeptical or push back a bit on this notion of potential reshoring reindustrialization large project surge in North America, not surge, but pickup. As you talk to customers, is that kind of big project quoting pipeline? Is it have you seen any change in either direction on that? Or is the tone of your customer conversations changed at all?

抱歉，這是最後一個了。托德，也許在一兩個季度前，你對北美可能出現的回流再工業化大型項目激增的想法持懷疑態度或有所抵觸，不是激增，而是回升。當您與客戶交談時，這是大型專案的報價管道嗎？您是否看到過這方面有任何變化？或者您與客戶談話的語氣改變了？

My tone doesn't change. I would say our teams, particularly the sales teams within first-fit equipment in the US for our Industrial segment is doing excellent. We did have nice growth last year, particularly within the dust collection side of things. We expect more this coming year.

我的語氣沒有變化。我想說我們的團隊，特別是美國工業部門首裝設備的銷售團隊表現出色。去年我們確實取得了良好的成長，特別是在除塵方面。我們期待來年會有更多進步。

The quote backlog is solid. Things have not abated at all, but I would also say it hasn't really accelerated to a notable degree worth mentioning here. It's just we're doing a good job. We've got good products. We've got to put people to take care of the customers, and we're executing quite well, and we're very proud of that.

報價積壓狀況穩定。事情根本沒有減弱，但我還要說它並沒有真正加速到值得在此提及的顯著程度。只是我們做得很好。我們有好的產品。我們必須派人來照顧客戶，而且我們做得相當好，我們對此感到非常自豪。

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

我們的問答環節到此結束。現在我將把電話轉回給托德·卡彭特，請他做最後發言。

That concludes today's call. Thanks to everyone who participated. We look forward to reporting in about 90 days our first quarter results. Have a great day. Goodbye.

今天的電話會議到此結束。感謝所有參與者。我們期待在大約 90 天內報告我們的第一季業績。祝你有美好的一天。再見。

Ladies and gentlemen, this concludes today's call. Thank you all for joining. You may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝大家的加入。您現在可以斷開連線。