藝康 (ECL) 2025 Q2 法說會逐字稿

Greetings. Welcome to the Ecolab 's second quarter 2025 earnings release conference call. (Operator Instructions) As a reminder this conference is being recorded. At this time it is now my pleasure to introduce your host Andrew Hedberg, Vice President of Investor Relations. Andy, you may now begin the presentation.

問候。歡迎參加藝康 2025 年第二季財報發布電話會議。（操作員指示）提醒一下，本次會議正在錄製中。現在，我很高興向大家介紹主持人、投資者關係副總裁安德魯‧赫德伯格 (Andrew Hedberg)。安迪，你現在可以開始演講了。

Thank you and hello everyone, and welcome to Ecolab's second quarter conference call. With me today are Christophe Beck, Ecolab's Chairman and CEO, and Scott Kirkland, our CFO. A discussion over our results along with our earnings release and the slides referencing the quarter results are available on Ecolab's website at ecolab.com/investor.

謝謝大家，大家好，歡迎參加藝康第二季電話會議。今天與我一起的還有藝康集團董事長兼執行長 Christophe Beck 和財務長 Scott Kirkland。有關我們的業績討論、收益報告以及引用季度業績的幻燈片可在 Ecolab 網站 ecolab.com/investor 上找到。

Please take a moment to read the cautionary statements in these materials which state that this teleconference and the associated supplemental materials include estimates of future performance. These are forward-looking statements, and actual results could differ materially from those projected.

請花一點時間閱讀這些資料中的警告聲明，其中指出本次電話會議和相關補充資料包括對未來表現的估計。這些是前瞻性陳述，實際結果可能與預測結果有重大差異。

Factors that could cause actual results to differ are described under the risk factors section in our most recent Form10-K and our posted materials. We also refer you to the supplemental ability earnings per share information in the release. With that, I'd like to call, turn the call or stop back where to come.

我們最新的 Form10-K 和發布的資料中的風險因素部分描述了可能導致實際結果不同的因素。我們也請您參閱本新聞稿中的補充每股收益資訊。有了它，我想打電話、轉接電話或停在原地。

Thank you so much, Andy, and welcome to everyone joining us today. The Ecolab team delivered another very strong quarter. Once again, very consistent with our guidance. Our team's relentless focus on execution and delivering exceptional value to customers enable us to achieve double digit earnings growth despite the unpredictable global operating environment.

非常感謝，安迪，歡迎大家今天加入我們。藝康團隊又一個季度表現出色。再次，這與我們的指導非常一致。儘管全球營運環境難以預測，但我們的團隊堅持不懈地專注於執行並為客戶提供卓越的價值，這使我們能夠實現兩位數的獲利成長。

Organic sales continue to grow 3%, led by strong value pricing, solid momentum in our core business, driven by a one collapse strategy that's working really well and fueled by breakthrough innovation, as well as steady strong performance from our growth engines.

有機銷售額持續成長 3%，這得益於強勁的價值定價、核心業務的強勁發展勢頭、行之有效的一次性崩潰策略以及突破性創新的推動，以及我們成長引擎的穩定強勁表現。

This good momentum more than overcame and even and market demand, particularly in our paper and basic industries businesses which represent only 15% of Ecolab 's total sales. In other words, the remaining 85% of our business grew organic sales 4% and operating income by 18%, reflecting our broad and resilient business portfolio. This is a major strength of Ecolab, allowing us to deliver superior performance in good like in more challenging times.

這種良好的勢頭不僅克服了市場需求，而且有餘，特別是我們的造紙和基礎工業業務，這兩個業務僅佔藝康總銷售額的 15%。換句話說，我們剩餘的 85% 業務的有機銷售額增長了 4%，營業收入增長了 18%，這反映了我們廣泛而有彈性的業務組合。這是藝康的一大優勢，使我們能夠在順境和逆境中提供卓越的業績。

Now let me spend a few minutes on our key growth drivers and talk about why I remain very confident about our future in '25, in '26, and beyond. First, on value price, it continues to build in the second quarter, increasing to 2%. This growth is supported by increasing value that our technologies and services bring to customers as we have to deliver best in class business outcomes, operational performance, and environmental impact.

現在，請容許我花幾分鐘時間談談我們的主要成長動力，並談談為什麼我對我們2025年、2026年及以後的未來充滿信心。首先，就價值價格而言，第二季持續上漲，增至 2%。這一成長得益於我們的技術和服務為客戶帶來的不斷增長的價值，因為我們必須提供一流的業務成果、營運績效和環境影響。

During the second quarter, we also began implementing our trade surcharge for all customers in the United States only. Given the dynamic international trade environment, the surcharge, coupled with the expertise of our world-class supply chain team, enables us to reliably supply our customers while delivering value that exceeds the total price increases.

在第二季度，我們也開始對美國所有客戶實施貿易附加費。鑑於動態的國際貿易環境，附加費加上我們世界一流的供應鏈團隊的專業知識，使我們能夠可靠地供應客戶，同時提供超過總價格上漲的價值。

With this now in place, we expect our total pricing to strengthen closer to 3% in the third and the fourth quarters. Next, the growth in our core segments like institutional specialty and global war. Well, both continue to progress very well.

有了這個措施，我們預計第三季和第四季的總定價將上漲近 3%。接下來，我們的核心領域（如機構專業和全球戰爭）也將成長。嗯，兩者都繼續進展順利。

In institutional specialty, we continue to drive robust share gains, allowing us to continue to outperform the industry while overcoming the headwind created by the strategic decision to accept the encore low margin business. These exits, which are mostly in our hospitals and retail businesses, are causing a 1% to 2% point drag on institutional specialty second quarter growth.

在機構專業領域，我們繼續推動強勁的份額成長，使我們能夠繼續超越行業，同時克服因接受再度低利潤業務的策略決策而產生的阻力。這些退出主要發生在我們的醫院和零售業務中，對機構專業第二季的成長造成了 1% 至 2% 的拖累。

But they're also helping us to further enhance our focus on the most critical customers and at the same time to further improve our long-term margin profile. So all in all, a very good story. In global water, performance was led by food and beverage, which accelerated to 3% organic growth by executing very well on our one Ecolab's growth strategy that provides customers with a comprehensive hygiene and water offering that actually no one else can truly provide.

但它們也幫助我們進一步加強對最關鍵客戶的關注，同時進一步改善我們的長期利潤狀況。總而言之，這是一個非常好的故事。在全球水務領域，食品和飲料業務表現最為突出，透過出色地執行我們的“藝康成長策略”，該業務加速成長至 3%，為客戶提供其他人實際上無法真正提供的全面的衛生和水服務。

This strength more than offsets the softer performance in more difficult and markets in paper and basic industries as mentioned before. Excluding these businesses, global water sales accelerated to 4% and operating income grew double digits.

這種優勢足以抵消前面提到的造紙和基礎工業等更困難的市場表現疲軟的影響。不計入這些業務，全球水銷售額成長加速至 4%，營業收入成長兩位數。

Finally, Ecolab growth engines, which include pest elimination, life sciences, global high tech, and Ecolab Digital, continued to perform exceptionally well. Collectively, these businesses make up nearly $3 billion of Ecolab's annual sales and grew double digits in the second quarter.

最後，藝康集團的成長引擎，包括害蟲消除、生命科學、全球高科技和藝康數字，持續表現優異。這些業務合計為藝康集團貢獻了近 30 億美元的年銷售額，並在第二季度實現了兩位數的成長。

Best elimination organic sales growth accelerated to 6%, benefiting from our one Ecolab growth strategy and also the shift to our digital past intelligence model. As expected, operating income margins increased sequentially to nearly 20%.

由於我們的「單一藝康」成長策略以及向數位轉型智慧模型的轉變，最佳消除性有機銷售額成長加速至 6%。正如預期的那樣，營業利潤率環比增長至近 20%。

And as we continue to deploy best intelligence in the next coming years by leveraging our major digital capabilities, we expect to generate steady, strong sales growth and very attractive operating income margin expansion.

隨著我們在未來幾年繼續利用我們的主要數位能力部署最佳情報，我們預計將實現穩定、強勁的銷售成長和極具吸引力的營業收入利潤率擴張。

Life Sciences grew mid-single digits led by strong double digit growth in biopharma as well as in core pharma and personal care while performance in water purification was partially impacted by shorter term limitations in production, and we are at full capacity.

生命科學部門實現了中等個位數增長，這主要得益於生物製藥以及核心製藥和個人護理部門強勁的兩位數增長，而水淨化部門的業績則部分受到短期生產限制的影響，目前我們已滿負荷運轉。

Also, OI grew significantly benefiting from the strong growth in our high margin biopharma business. We expect reported OI margins to stay in the mid teens as we invest further to fill this long-term high growth business with OI margin potential of 30%.

此外，由於高利潤率生物製藥業務的強勁成長，OI 也實現了顯著成長。我們預計報告的 OI 利潤率將保持在十五六成左右，因為我們將進一步投資以填補這一長期高成長業務，OI 利潤率潛力為 30%。

Also, our global high-tech business continues to grow very rapidly with sales up over 30% and operating income margins exceeding 20%. We're just at the beginning of this incredible growth story, but it is one we will own by leveraging our vast expertise in cooling for data centers and water circularity solutions for microelectronics production.

此外，我們的全球高科技業務持續快速成長，銷售額成長超過 30%，營業收入利潤率超過 20%。我們才剛開始這個令人難以置信的成長故事，但透過利用我們在資料中心冷卻和微電子生產水循環解決方案方面的豐富專業知識，我們將擁有這個故事。

And finally, Ecolab digital kept accelerating sales growth to nearly 30% in the second quarter, reaching an annualized run rate of $380 million driven by rapid growth in subscription revenue and digital hardware. This exceptional performance combined with value price and share gains across the businesses drove 170 basis points increase in Ecolab's second quarter operating income margin.

最後，在訂閱收入和數位硬體快速成長的推動下，藝康數位業務第二季的銷售額繼續加速成長至近 30%，年化營運率達到 3.8 億美元。這項出色的業績加上各項業務的價值、價格和份額成長，推動藝康集團第二季營業利潤率上升了 170 個基點。

While commodity costs anticipated to keep increasing by low to mid-single digits in the second-half of the year and into '26, we expect our operating income margin to continue to expand at steady levels due to growth in high margin businesses, value price share gains and productivity improvements.

雖然預計今年下半年和26年商品成本將繼續以低至中等個位數成長，但我們預計，由於高利潤業務的成長、價值價格份額的提高和生產力的提高，我們的營業利潤率將繼續穩步擴大。

In total, we continue to expect our full year 2025 operating income margin to reach the solid 18% on our part to deliver a 20% or a margin by 2027 and as mentioned, we will not stop there. Looking ahead, most business fundamentals seem to be turning up, which provides me with the confidence to deliver 12% to 15% adjusted EPS growth for the quarters to come in '25 and into '26 as we also keep investing in our growth engines.

整體而言，我們繼續預期 2025 年全年營業收入利潤率將達到穩定的 18%，到 2027 年將達到 20% 的利潤率，如前所述，我們不會止步於此。展望未來，大多數商業基本面似乎都在好轉，這讓我有信心在 2025 年和 2026 年的幾個季度實現 12% 至 15% 的調整後每股收益增長，因為我們也將繼續投資於我們的成長引擎。

Our experience in navigating past macro challenges has only strengthened our capabilities and agility. With our diversified portfolio, record innovation pipeline, strong growth engines and focused execution with plenty of options and levers to deliver on our commitments in almost any environment.

我們應對過去宏觀挑戰的經驗只會增強我們的能力和敏捷性。我們擁有多元化的產品組合、創紀錄的創新管道、強勁的成長引擎和專注的執行力，以及豐富的選擇和手段，幾乎可以在任何環境下履行我們的承諾。

A unique ability to provide innovative solutions that drive best in class outcomes and hence operational performance and conservative resources like water and energy for all our customers is crucial or more crucial than ever.

提供創新解決方案的獨特能力，推動一流的成果，從而為所有客戶提供營運績效和節約資源（如水和能源），這一點至關重要，甚至比以往任何時候都更加重要。

With a strong and resilient free cash flow and extremely strong balance sheet and a super low leverage ratio of 1.7, we are very well positioned to capitalize on both organic and inorganic growth opportunities. The strong foundation enhance our ability to create significant value for our customers and drive attractive returns for our shareholder.

憑藉強勁而有韌性的自由現金流、極其強勁的資產負債表和 1.7 的超低槓桿率，我們完全有能力利用有機和無機成長機會。堅實的基礎增強了我們為客戶創造巨大價值並為股東帶來豐厚回報的能力。

I therefore remain very confident in our ability to deliver sustained strong performance in '25 and beyond. So thanks again for your continued trust and your investment in Ecolab. I look forward to your questions.

因此，我仍然對我們在 2025 年及以後持續保持強勁表現的能力充滿信心。再次感謝您對藝康的持續信任與投資。我期待您的提問。

Thanks, Christophe. That concludes our formal remarks. One file a note before we begin Q&A. As a reminder, we'll be hosting our investor day of September 4, in Minnesota, where Ecolab's senior leadership team will provide an in-depth review of the company's strategy to drive strong growth and attractive margin expansion.

謝謝，克里斯托夫。我們的正式發言到此結束。在我們開始問答之前，請先提交一份說明。提醒一下，我們將於 9 月 4 日在明尼蘇達州舉辦投資者日活動，屆時藝康的高級領導團隊將深入審查公司推動強勁成長和誘人利潤擴張的策略。

This event will also include interactive sessions showcasing Ecolab's latest breakthrough innovation. Please contact me if you're interested in joining us. With that operator, would you please move in the question answer period?

本次活動還將包括展示藝康最新突破性創新的互動環節。如果您有興趣加入我們，請與我聯絡。有那個接線生，請您在問答環節中移動一下好嗎？

(Operator Instructions)

（操作員指示）

Tim Mulrooney, William Blair & Company.

提姆·馬爾羅尼，威廉·布萊爾公司。

Christophe Scott, Good afternoon.

克里斯托夫·斯科特，下午好。

Good afternoon, Tim.

下午好，提姆。

Yes, so for my question, I wanted to ask, I think some folks were thinking maybe that you would raise your guide or maybe the low end of the guide. A little bit this quarter. So even though the second quarter came in line with expectations, I think some folks were maybe expecting a little bit more for the second half of this year.

是的，對於我的問題，我想問一下，我認為有些人可能會想，也許你會提高你的指導價，或者也許是指導價的低端。本季有一點。因此，儘管第二季的表現符合預期，但我認為有些人可能對今年下半年的預期會更高一些。

Can you just walk us through the puts and takes here? Is there maybe some conservatism being baked in here, or is there maybe something else that I'm not seeing? Thank you.

能簡單介紹一下這裡的進度嗎？這裡是否存在某種保守主義，或者是否存在我沒有看到的其他東西？謝謝。

Hey, thank you Tim. It's actually a combination of both, conservatism and at the same time investing further in our growth businesses. A 13% growth on earnings for the second quarter, getting these 12% to 15% for the second half and beyond for me this is the commitment I've made to all of you guys and this is where I want to make sure that at least I deliver that.

嘿，謝謝你，提姆。這其實是保守主義與同時進一步投資於成長業務的結合。第二季的收益成長 13%，下半年及以後的收益成長 12% 至 15%，這是我對你們所有人所做的承諾，我希望確保至少能夠實現這一目標。

Actually, well, I really like where we are right now, so we have good momentum with as mentioned, 85% of our business growing 4%. And growth engines, the one I mentioned before that represent close to $3 billion in sales, well, they're growing double digits. So our investments in growth are really working.

實際上，我真的很喜歡我們現在的狀況，所以我們有良好的發展勢頭，正如所提到的，我們 85% 的業務成長了 4%。而成長引擎，我之前提到的代表著近 30 億美元銷售額的成長，嗯，它們正在以兩位數的速度成長。因此，我們在成長方面的投資確實有效。

Second, the micro trends of water for AI infrastructure, purification for life sciences, and productivity for hospitality and pest intelligence while they're all trending in our favor. It's a good thing and our business fundamentals of new business, innovation, value price, productivity, they're all trending in a positive direction. So I'm with you. I feel good about where we are, where we're going about the second half and for 2026 and beyond.

其次，水資源對於人工智慧基礎設施、淨化對於生命科學、生產力對於旅館業和害蟲智慧的微觀趨勢都對我們有利。這是一件好事，我們的新業務、創新、價值價格、生產力等業務基本面都朝著正面的方向發展。所以我支持你。我對我們的現狀以及下半年、2026 年及以後的發展方向感到很滿意。

But As we know, the world is a bit of a complicated place, and we honestly always build some room for the unexpected and the last few years, well, we had plenty of this, and some could call it conservatism. For me, it is making sure I can deliver what we've promised.

但正如我們所知，世界有點複雜，我們總是會為意外情況留出一些空間，而在過去幾年裡，我們經歷了很多這樣的情況，有些人可能會稱之為保守主義。對我來說，這是為了確保我能兌現我們的承諾。

And secondly, We keep investing more in our growth engines to fuel this long term momentum in like science, in data centers, in apps, in intelligence, in Ecolab Digital, and ultimately this will keep paying dividends in the long run for all of us.

其次，我們將繼續增加對成長引擎的投資，以推動科學、數據中心、應用程式、智慧、藝康數位等領域的長期發展勢頭，最終這將為我們所有人帶來長期回報。

So bottom line, I think we're in a very good place, and any over delivery that we will get in the quarters to come and years to come will be shared between returns for incremental returns for investors and incremental investments in our growth businesses.

所以，總而言之，我認為我們處於一個非常好的位置，未來幾個季度和幾年內我們獲得的任何超額交付都將在投資者的增量回報和我們成長業務的增量投資之間分配。

So all in all, I think it's a win-win for the company and for investors as well at the same time. For me, as I've mentioned, it's 12% to 15% is not an ambition. It's a commitment, and anything that comes above will be a combination of returns and investment in our growth businesses.

總而言之，我認為這對公司和投資者來說都是雙贏的。對我來說，正如我所提到的，12% 到 15% 並不是一個目標。這是一種承諾，任何超出承諾的事情都將是回報和對我們成長業務的投資的結合。

Manav Patnaik, Barclays

巴克萊銀行的馬納夫·帕特奈克

Thank you, Christophe, I just wanted to touch on, pricing. I understand, from a volume perspective, obviously, as you mentioned, there was an uncertain case, etc. Can you help us, dig through what you're hearing, what you're seeing on the pricing front?

謝謝你，克里斯托夫，我只是想談談定價。我理解，從數量的角度來看，顯然，正如您所提到的，存在不確定的情況等等。您能否幫助我們深入了解您所聽到的、您在定價方面看到的情況？

I think, the 2% I believe was supposed to be 2.5% to maybe a bit higher if you could just talk about what we should expect in the second half with and without the surcharge pricing that you have coming in.

我認為，2% 應該是 2.5% 甚至更高一點，如果您能談談在有和沒有附加費定價的情況下，我們對下半年的預期是什麼。

Yeah, thank you, man. I like a lot where we are on pricing and keeping in mind, it's value pricing, we've made that commitment to customers as well that we will always deliver more value, which means cost savings in the operations than the incremental price they're paying for us. It's kind of a value share.

是的，謝謝你，老兄。我非常喜歡我們的定價，並牢記這是價值定價，我們也向客戶承諾，我們將始終提供更多價值，這意味著營運成本的節省比他們為我們支付的增量價格要多。這是一種價值共享。

That's the important component of how we think about pricing in our company. So 2% in Q1, 2% in Q2, starting the US trade surcharge as well in the second quarter. So far so good, but it's always a start during the quarter. You announce it. So for Q3, Q4, I expect the pricing to move closer to three.

這是我們公司定價思維中的一個重要組成部分。因此，第一季為 2%，第二季為 2%，美國貿易附加稅也從第二季開始徵收。到目前為止一切都很好，但這始終是本季的開始。你宣布一下。因此，對於第三季度和第四季度，我預計定價將更接近三。

So I don't know exactly where we're going to land in Q3, but in Q4 it's going to be three, hopefully we will be three or close to three as well in Q3, but all rending up and again back by the value delivery, so for our customers and what's most important is that the retention of our customers, which is something that we look at very closely is getting stronger as well at the same time and as you see in the volumes positive as well, especially strong in our growth businesses.

因此，我不知道我們在第三季度的具體目標會是多少，但第四季度將會是三個，希望我們在第三季度也能達到三個或接近三個，但所有這些都會通過價值交付而上升和下降，所以對於我們的客戶來說，最重要的是我們客戶的保留，這是我們密切關注的事情，同時也在變得更強，正如你在交易量中看到的增長，尤其是在我們的業務中表現強勁。

So, all in all, it's working well and I see value priced as a good revenue stream, 100% margin for us and in ways that are driving savings in our customers operations as well at the same time. So it's working really well.

所以，總而言之，它運作良好，我認為價值定價是一個很好的收入來源，為我們帶來了 100% 的利潤，同時也為我們的客戶營運帶來了節約。所以它確實運行得很好。

Ashish Sabadra, RBC Capital Market

加拿大皇家銀行資本市場 Ashish Sabadra

Thanks for taking my question. So just wanted to focus on the pest elimination business where we saw an improvement. Can you talk about some of the efforts around pest intelligence, how those rollouts are coming together, and how should we think about the puts and takes for growth going forward? Thanks.

感謝您回答我的問題。因此，我們只想集中精力於害蟲消除業務，因為我們已經看到了進步。您能否談談在害蟲情報方面所做的一些努力、這些舉措是如何結合在一起的，以及我們應該如何考慮未來成長的利弊？謝謝。

Thank you, Asish. We love that business. Pest elimination is just an unbelievable story which will shift towards pest intelligence over the next few years. It's not going to take forever, but we're going to move from pest elimination, the business that we have today with our people going and visiting every location and looking at every device at our customers' locations, which are millions around the world to pest intelligence where most of it is going to be done 24/7 remotely with our team, ultimately so going to the places where they can add value and not taking devices means mouse traps that are empty.

謝謝你，阿西什。我們熱愛這項事業。害蟲消滅只是一個令人難以置信的故事，未來幾年它將轉向害蟲智慧化。這不會永遠持續下去，但我們將從害蟲消除業務轉向害蟲情報業務，我們現在的業務是讓員工走訪客戶所在地的每一個地點，查看客戶所在地的每台設備，而客戶所在地有數百萬個，其中大部分工作將由我們的團隊全天候遠程完成，最終，我們將前往那些可以增加價值的地方，捕鼠器是空的。

We are on an unbelievable journey with that. The huge advantage we have is that as Ecolab, well, we have massive capabilities in digital, in sensing technology, the Ecolab 3D clouds. We have all it takes to put that into practice in our first elimination business.

我們正經歷著一段令人難以置信的旅程。我們的巨大優勢在於，身為藝康集團，我們在數位技術、感測技術和藝康 3D 雲端技術方面擁有強大的能力。我們已做好一切準備，在我們的第一個消除業務中將其付諸實踐。

As I've shared with some of you as well, the last few months we've concluded one of the major retailers here in the US, which was our pilot, making sure it was working from a technology perspective, from a model perspective, and interestingly enough, when we think about the past three ratio, the industry is at 92% today, which means 92% of the customer locations are best free, the average for Ecolab is 95%, which is better.

正如我與你們中的一些人分享的那樣，過去幾個月，我們與美國一家大型零售商合作，這是我們的試點項目，確保它從技術角度、從模型角度發揮作用，有趣的是，當我們考慮過去三個比例時，該行業目前的比例為 92%，這意味著 92% 的客戶位置是最佳免費的，而藝康的平均比例為 95%，這意味著更好。

You still have 5% of the locations that are not pest free, and that pilot that we deployed is showing that we can deliver 98%,trending to 99% would never get to 100% because it's nature, obviously, but 99% seems to be the right number. So great outcome. The model is working.

仍有 5% 的地點沒有實現無蟲害，而我們部署的試點表明，我們可以實現 98% 的目標，趨向於 99% 的目標，但永遠無法達到 100%，因為顯然這是自然規律，但 99% 似乎是正確的數字。結果太棒了。該模型正在發揮作用。

The customer is ready with open and ready with the financial model as well at the same time. We're moving to a second retailer as we speak. The third one is lined up as well, so for the month to come and will expand as well across all our markets in the months and quarters to come. I think that whole business in the next few years is going to become a fullest in the region-based model with a new financial model, obviously that's driving more growth, better margins, and most important, 99% best free environment for our customers. So a very good story.

客戶已準備好開放，同時也準備好了財務模型。我們正在轉向第二家零售商。第三個也已安排好，將在未來一個月推出，並將在未來幾個月和幾個季度擴展到我們所有的市場。我認為，未來幾年，整個業務將在基於區域的模式和新的財務模式中發展得最為完善，這顯然將推動更多的成長、更好的利潤率，最重要的是，為我們的客戶提供 99% 的最佳免費環境。這是一個非常好的故事。

John McNulty, BMO Capital Markets

蒙特利爾銀行資本市場（BMO Capital Markets）的約翰·麥克納爾蒂（John McNulty）

Yeah, good morning. Good afternoon. Thanks for taking my question, Christo. Can you help us to think about the delivered product cost that you saw in this quarter and how you're thinking about that as you go into the second half?

是的，早安。午安.謝謝你回答我的問題，克里斯托。您能否幫助我們思考本季的交付產品成本，以及您對下半年的看法？

It seems like there's kind of still a lot of moving parts around tariffs and headwinds around that, raw materials, kind of some of them fading, some of them pushing higher. So can you help us to think about those trends?

看起來，圍繞關稅和原材料仍有許多變動因素，有些因素正在下降，有些因素則在上升。那麼您能幫助我們思考這些趨勢嗎？

Yes, John, a lot of moving pieces to say the least. We've been used to that. Let me ask Scott just to start with the answer.

是的，約翰，至少可以說有很多動人的部分。我們已經習慣了。首先讓我請斯科特來回答這個問題。

Yeah. Absolutely. Hi John. Yeah, on DPC, similar to Q1 and Q2 commodities, so the market, if you will, was up low single digits, which includes the impact of tariffs and tariff-related inflation, which we're seeing. But the net DPC, it was slightly favorable as we've gotten efficiencies from our great supply chain team.

是的。絕對地。你好，約翰。是的，就 DPC 而言，與第一季和第二季的大宗商品類似，因此市場上漲了個位數，其中包括我們看到的關稅和關稅相關通膨的影響。但淨 DPC 略有改善，因為我們優秀的供應鏈團隊提高了效率。

So we expect the market, the commodity inflation to be up that low single to mid-single digits in the quarters to come, ultimately depending on the tariff impact. But we expect to continue to do better than this with the impact from our supply chain team, which we're seeing in the results of our gross margins being up 100 basis points in Q2.

因此，我們預期未來幾季市場和大宗商品通膨率將上升至低個位數至中個位數，最終取決於關稅的影響。但我們預計，在供應鏈團隊的影響下，業績將繼續更好，從第二季毛利率上升 100 個基點的結果可以看出。

So the combination of supply chain doing an amazing work to get a net DPC that's favorable and value price that's trending positively as well is obviously driving a very positive equation for our margins, which is one of the reasons why our gross margins went up 100 basis points again in Q2.

因此，供應鏈的出色工作使我們獲得了有利的淨 DPC，而價值價格也呈現積極趨勢，這顯然為我們的利潤率帶來了非常積極的推動作用，這也是我們的毛利率在第二季度再次上漲 100 個基點的原因之一。

David Begleiter, Deutsche Bank.

大衛‧貝格萊特，德意志銀行。

Thank you. Good afternoon, Christophe, on a US surcharge, do you still expect to realize roughly half of what you announced? And are you seeing competitor support for this surcharge? And lastly, why not anything on the international side in terms of the surcharge? Thank you.

謝謝。下午好，克里斯托夫，關於美國附加費，您是否仍預計能夠實現您所宣布的大約一半的目標？您是否看到競爭對手支持這項附加費？最後，為什麼國際方面不收取任何附加費呢？謝謝。

So a few questions in there, David. The first uncompetitive, they've announced a trade surcharge. I'm not in their books, obviously, so I don't exactly know what they're doing. The good thing is that we're gaining share again, all of them, which is a good place to be. So good that they're all participating in that winning as well at the same time.

這裡有幾個問題，大衛。第一個缺乏競爭力，他們宣布徵收貿易附加費。顯然，我不在他們的名單上，所以我不太清楚他們在做什麼。好消息是，我們的市場份額再次增加，所有市場份額都增加了，這是一個好兆頭。他們都同時參與了這場勝利，這真是太好了。

The second, in terms of delivery, it's an imperfect sign, as we know, but generally working as you've heard, so from Scott, when we look at tariffs, increase of prices by local manufacturing concentration, our optimization in supply chain plus the trade surcharge, it's a net positive and you see it in our margins ultimately, so the mechanics work really well for us and for our customers, which is exactly where we want. to be.

第二，就交付而言，正如我們所知，這是一個不完美的跡象，但正如您所聽到的，總體上是有效的，所以從斯科特的角度來看，當我們考慮關稅、當地製造業集中度導致的價格上漲、我們在供應鏈中的優化加上貿易附加費時，這是一個淨正值，您最終會在我們的利潤率中看到它，因此這種機制正是我們和我們的客戶。

And the third part of your question, international, we have all it takes to get it done. It's just that today, as those trade deals with the economies around the world were all unilateral. So it's a tariff you get when you import or you export to the US, not when the US is exporting, so to have a market at least we haven't seen those.

您問題的第三部分是國際問題，我們擁有完成這項任務所需的一切條件。只是今天，與世界各國經濟體達成的貿易協定都是單方面的。因此，這是您在進口或出口到美國時產生的關稅，而不是美國出口時產生的關稅，所以至少在市場方面我們還沒有看到這些。

The moment we see those, if there's a reciprocal actions from any market out there, we have the mechanics. We know how to make it work. We've used it so with the energy surcharge in 2022. We can use it. So far, we don't have any reasons to do it, so we will not use it, as long as the tariffs remain as they are to export to other countries.

當我們看到這些時，如果任何市場有相應的行動，我們就有機制。我們知道如何讓它發揮作用。我們在 2022 年的能源附加費中已經使用了它。我們可以使用它。到目前為止，我們還沒有任何理由這樣做，所以只要出口到其他國家的關稅保持不變，我們就不會使用它。

Chris Parkinson, Wolfe Research

沃爾夫研究公司的克里斯·帕金森

Great, thank you. Christophe, despite a pretty sluggish macro environment, your margins in institutional life sciences, seem to be moving in the you know the right direction. And on one hand you've been talking about price, presumably productivity and portfolio rationalizations on the positives versus, presumably a still pretty sluggish macro and perhaps a little bit of gross spend on the opposite side of it, but just, in the context of the macro we're in, what do 2Q results tell you about your longer term opportunities by segment? Thank you.

太好了，謝謝。克里斯托夫，儘管宏觀環境相當低迷，但您在機構生命科學領域的利潤似乎正朝著正確的方向發展。一方面，您一直在談論價格、大概是生產力和投資組合合理化等積極因素，另一方面，大概是宏觀經濟仍然相當低迷，或許還有一點總支出，但是，在我們所處的宏觀背景下，第二季度的業績能告訴您哪些有關各細分市場的長期機會？謝謝。

Great question, Chris. Well, what it's telling me is that it's working because INS has reached the highest level of margin they've never had in the history. This team is doing unbelievable work by really focusing on what customers need the most, and it's labor automation, labor optimization, whatever the words are, they have a hard time to get talent, and the talent they're getting is at a higher cost, which in a way is a good thing for the general environment, but not so much for the P&L of our customers.

很好的問題，克里斯。嗯，它告訴我，它正在發揮作用，因為 INS 已經達到了歷史上從未有過的最高利潤水平。這個團隊真正專注於客戶最需要的東西，做出了令人難以置信的工作，那就是勞動力自動化、勞動力優化，不管怎麼說，他們很難獲得人才，而且他們獲得的人才成本更高，從某種程度上來說，這對整體環境來說是件好事，但對我們客戶的損益表來說卻不是那麼好。

So when I look at automation solutions for our INS customers, it works for them. It helps them reduce their cost in dramatic ways which means that we can get some of that value share in our values. So it's good for us, good for them.

因此，當我為我們的 INS 客戶尋找自動化解決方案時，它對他們來說是有用的。它可以幫助他們大幅降低成本，這意味著我們可以在我們的價值中獲得部分價值份額。所以這對我們有好處，對他們也有好處。

Same time, we also leveraging technology within INS really pleased with the way INS is embracing digital technology, one Ecolab platform that we've developed for the whole company, for the whole INF as well at the same time, so we get an improvement as well at the same time from an operating performance perspective, which is really good.

同時，我們也利用 INS 內部的技術，對 INS 採用數位技術的方式感到非常滿意，我們為整個公司、整個 INF 開發了一個 Ecolab 平台，因此從營運績效的角度來看，我們也同時獲得了改進，這真的很好。

And the third thing is that because of that, better service, better outcome, better productivity for our customers. We gain share as well at the same time, and you see the growth of INS is really good. It's even been impacted 1 to 2 points by those exits, as I mentioned before, which were private label businesses which didn't have much to do with our service business, by the way, when we're gaining shares.

第三件事是，因此，我們可以為客戶提供更好的服務、更好的結果、更高的生產力。同時，我們的市佔率也增加了，你會看到 INS 的成長非常好。正如我之前提到的，這些退出甚至對我們產生了 1 到 2 個百分點的影響，順便說一句，這些退出是自有品牌業務，與我們的服務業務沒有太大關係，而我們的股價正在上漲。

And that's showing that it's working, customers like it. So the combination of all three gaining share, driving value for our customers, and driving operational performance within INS will net to the highest margin, in our history in INS, and it's going to continue on that good trajectory so for the quarters and years to come.

這表明它很有效，顧客喜歡它。因此，三者的結合將增加市場份額，為我們的客戶創造價值，並提高 INS 內部的營運績效，從而實現 INS 歷史上的最高利潤率，並且在未來幾個季度和幾年內，它將繼續保持良好的發展軌跡。

Vincent Andrews, Morgan Stanley

文森安德魯斯（Vincent Andrews），摩根士丹利

Thank you and good afternoon, everyone. Wondering, Christophe, if you could speak a little bit too, I believe in your prepared remarks, and please correct me if I'm wrong, you mentioned that you're maxed out on capacity in certain parts of the water business. So I'm just wondering if you could expand on that a little bit.

謝謝大家，下午好。克里斯托夫，我想知道你是否也可以講一點，我相信你準備好的發言，如果我錯了，請糾正我，你提到你在水業務的某些部分已經達到了產能極限。所以我只是想知道您是否可以稍微擴展一下這一點。

And likewise, in the past, it sounds like these customer trials are going extremely well. So I'm wondering, sort of what the S curve of the implementation of that new technology that you're better mousetrap, so to speak. What the timing and pace of that's going to be and if there are any potential capacity constraints there that you need to get in front of?

同樣，從過去的情況來看，這些客戶試驗似乎進展得非常順利。所以我想知道，這項新技術的實施的 S 曲線是什麼樣的，可以說是更好的捕鼠器。這個時間和速度會是怎麼樣的呢？是否有任何需要事先考慮的潛在產能限制？

Yeah, so two different businesses are best intelligence with better mousetraps, which are truly better mousetraps. It feels easier to do than it truly is to get that working really well millions of times around the world where we operate with the best elimination and in the future, so best intelligence.

是的，所以兩個不同的業務是最好的情報加上更好的捕鼠器，這確實是更好的捕鼠器。看起來很容易，但實際上很難做到，我們需要在世界各地以最佳的方式進行數百萬次的有效運作，在未來，我們將採用最佳的消除方法，從而實現最佳的情報。

We wanted to make sure it was working, before we go too far, getting ahead of our [skis] and not delivering the value to our customers would not be the right thing to do. Having one of those great retail partners, which is a reference point in the US, was exactly what we wanted to do, and it worked, and now we're getting second and as mentioned the third one as well.

我們希望確保它能夠發揮作用，在我們走得太遠之前，超越我們的[滑雪板]並且不向我們的客戶提供價值並不是正確的做法。擁有一個在美國具有標竿地位的優秀零售合作夥伴正是我們想要做的，而且它確實奏效了，現在我們獲得了第二個，並且正如所提到的，還有第三個。

I think it's going to take a few years. It's going to take less than five years, hopefully much less. But let's see, to shift the whole business towards best intelligence. We have a great team with a great leadership and customers that really love what's being done at the same time we have digital capabilities that none of our competitors do have. So that should be all positive, obviously so for us.

我認為這需要幾年時間。這將需要不到五年的時間，希望可以少得多。但讓我們看看，將整個業務轉向最佳情報。我們擁有一支優秀的團隊和出色的領導力，客戶也非常喜歡我們所做的事情，同時我們擁有競爭對手所不具備的數位化能力。所以這應該都是正面的，對我們來說顯然是如此。

In Life Science, you're right, so we got some capacity limitations in our water business. So within life science, water purification, a life science business, but not for the pharma business directly pharma, biopharma, as mentioned, is drawing double digits, very strong, very good, really pleased to see that all the work that we've done over the past two or three years since we acquired pure light, ultimately it's paying off and really looking for some really good momentum and most importantly great acceptance by our customers.

在生命科學領域，您說得對，所以我們的水業務存在一些產能限制。因此，在生命科學、水淨化、生命科學業務（而不是直接針對製藥業務）領域，正如所提到的，製藥、生物製藥正在呈現兩位數的增長，非常強勁，非常好，真的很高興看到，自從我們收購純光以來，過去兩三年來我們所做的所有工作最終都得到了回報，並且真正期待一些非常好的發展勢頭，最重要的是得到了客戶的極大認可。

And in the second quarter so we had maintenance that was planned in one of our plants in Europe that limited how much we could produce there and that has a slight impact on our production over there. That plan, that's okay. We need to live with it. That's not much to do with demand, obviously, so kind of business as usual.

在第二季度，我們計劃對位於歐洲的一家工廠進行維護，這限制了我們在那裡的產量，對我們在那裡的生產產生了輕微的影響。那個計劃，沒問題。我們必須忍受它。顯然，這與需求沒有太大關係，所以一切照常。

Patrick Cunningham, City.

派崔克·坎寧安，城市隊。

Hi, good afternoon. Thanks for taking my question. Maybe just a related follow up there on water, I think that operating income growth was rather modest relative to solid pricing growth and good underlying growth there. I think you cited supply chain costs and unfavorable mix, but I think our assumption was some of these faster growing markets had better mix. So what was the source of that unfavorable mix?

嗨，下午好。感謝您回答我的問題。也許只是對水資源的相關後續關注，我認為相對於穩健的價格增長和良好的潛在增長，營業收入增長相當溫和。我認為您提到了供應鏈成本和不利的組合，但我認為我們的假設是其中一些成長較快的市場有更好的組合。那麼這種不利因素的根源是什麼呢？

Scott, do you want to answer.

史考特，你想回答嗎？

That question? Yeah, happy to do it, Patrick. As Christophe noted in his opening, basic and paper have been a drag and that water OI growth to 6% was all due to basics and paper. If you look at the water OI growth excluding both basic and paper, the sales were up 4% and the OI was up strong double digits.

那個問題？是的，很高興這麼做，派崔克。正如克里斯托夫在開幕式上指出的那樣，基礎石油和紙張一直是拖累因素，而水務 OI 增長至 6% 全都歸功於基礎石油和紙張。如果看看不包括基礎用水和紙張的 OI 成長情況，銷售額成長了 4%，而 OI 則強勁成長了兩位數。

Shlomo Rosenbaum, Stifel

施洛莫·羅森鮑姆（Stifel）

Hi, thank you very much. If you don't mind, I'm going to ask a little bit more of a two partner. First one is just on the organic growth if we're kind of bouncing around at 3% and volume is only kind of 1% here, are you still, do you still have the same level of confidence on that operating margin target, especially if we don't start to see a material improvement in the volume side?

你好，非常感謝。如果您不介意的話，我想向兩位合夥人多提一點要求。首先，就有機成長率而言，如果我們的成長率在 3% 左右波動，而銷量只有 1%，您是否仍然對營業利潤率目標抱有同樣的信心，尤其是如果我們沒有看到銷量方面的實質改善？

And then just want to touch on what you said on P/E in terms of morphing the model because we've had a couple quarters of growth that were lower that we're used to seeing in that business is part of the shifting the model giving you a near term headwind to revenue growth in that business? Thank you.

然後，我想談談您所說的市盈率轉變模型，因為我們有幾季度的增長低於我們在該業務中習慣看到的水平，這是轉變模型的一部分，會給您帶來短期內該業務收入增長的阻力嗎？謝謝。

Thank you, Shlomo. Yeah, two very different questions. So on best elimination, the short answer is yes. The shift towards best intelligence is not an obvious shift. It's a pretty significant shift. So within our organization, it's new technology, it's a new route model, it's a new financial model. It's a complicated piece, if I may say so, to make it work really well.

謝謝你，什洛莫。是的，兩個非常不同的問題。因此，關於最佳消除方法，簡短的回答是肯定的。向最佳情報的轉變並不是一個明顯的轉變。這是一個相當重大的轉變。因此，在我們的組織內，這是新技術、新的路線模型、新的財務模型。如果我可以這麼說的話，要讓它真正發揮作用，這是一個複雜的工作。

And on top of it, as you know, we had a few incidents that we had to deal with unfortunately as well, caring about our team, that's so important for us in the company. So, it was kind of behind us now we keep investing on best intelligence because it's going to help us really lead that transformation in that industry, in the US and around the world, not just in terms of amount of devices, in terms of type of technology and business model as well at the same time.

除此之外，如你所知，我們也不幸地發生了一些事件，我們必須處理這些事件，關心我們的團隊，這對我們公司來說非常重要。所以，現在我們繼續投資最佳情報，因為它將幫助我們真正引領該行業的轉型，在美國和世界各地，不僅在設備數量方面，而且在技術類型和商業模式方面。

So it requires some investments, financial investments, but resources as well at the same time which are people. Obviously, doing that work generally feel good with the trajectory we have on the top line in terms of model as well. So the 20% plus is going to just strengthen with that shift in moral intelligence.

因此，它需要一些投資，金融投資，但同時也需要資源，即人力。顯然，從模型的角度來看，完成這項工作總體上對我們在頂線上的軌跡感覺良好。因此，隨著道德智力的轉變，20% 以上的比例將會增強。

So generally a very good story. Those transformations are never obvious and it's not a straight line to heaven either, but great leadership team, great team executing very well, and as mentioned before. So customers very pleased with how it's working because at the end of the day, well, it's aiming to the 99% best free environment that matters.

總的來說這是一個非常好的故事。這些轉變從來都不是顯而易見的，也不是一條通往天堂的直線，但正如之前提到的，偉大的領導團隊，偉大的團隊執行得非常好。因此，客戶對它的運作方式非常滿意，因為歸根結底，它的目標是實現 99% 的最佳免費環境。

Now to the first part, a few questions. My confidence to get the 20% by '27 just keeps getting stronger. If you look at the second quarter, well, with stuff line growth of 3%, being able to deliver 13% earnings growth and operating income margins up 101 basis points.

現在討論第一部分，有幾個問題。我對 27 年達到 20% 目標的信心越來越強。如果你看第二季度，那麼，產品線成長了 3%，能夠實現 13% 的獲利成長和 101 個基點的營業收入利潤率成長。

Obviously, it's kind of a demonstration of what accelerated growth could mean as well so for the delivery of the company and as mentioned, so we have two businesses and there will always be a few businesses that are not exactly in a great place that's the strength of the portfolio. We have as a company here so this paper on basic industries.

顯然，這在某種程度上證明了加速成長對於公司交付的意義，正如前面提到的，我們有兩項業務，總是會有一些業務處於不太好的位置，這就是投資組合的優勢。作為一家公司，我們有這篇關於基礎產業的論文。

Well, 85% of the company is growing 4% and 20% of growth engines are growing double digits as well at the same time, and that's where we invest. So, generally the mix of growth is going to turn positive and that's going to help us get closer to the 20% quicker as well at the same time. So, I can't judge what's going to happen in the outside environment, but generally, I feel really good about the 20% by '27.

嗯，公司 85% 的股份都實現了 4% 的成長，同時 20% 的成長引擎也實現了兩位數的成長，這就是我們投資的地方。因此，總體而言，成長組合將轉為正值，同時也將幫助我們更快地接近 20% 的目標。所以，我無法判斷外部環境會發生什麼，但總的來說，我對 27 年實現 20% 的成長感到非常樂觀。

John Roberts, Mizuho Securities

瑞穗證券的約翰羅伯茨

Thank you. With the balance sheet now in great shape, how would you characterize the pipeline for inorganic growth? It's been a while since the pure light deal.

謝謝。現在資產負債表狀況良好，您如何描述無機成長的管道？純光交易已經過了一段時間。

It's been a while, end of '21. We did pure light. We did a few smaller acquisitions in the meantime, which is the bread and butter of our M&A engine, by the way, and sometimes we have a few bigger ones, and you're right, we have great gas flow, great cash flow conversion, very low leverage ratio, and it's going to keep getting lower.

已經有一段時間了，21 年已經結束了。我們做的是純光。同時，我們進行了一些規模較小的收購，順便說一下，這是我們併購引擎的主要業務，有時我們也會進行一些規模較大的收購，您說得對，我們的天然氣流量很大，現金流轉換率很高，槓桿率很低，而且還會越來越低。

Obviously, as time passes by, it's putting us in a great position to invest where it makes more sense. And John, we're going to keep investing as we've always done. It's frozen dividends, it's in our business, and we have plenty of opportunities. We talked about innovations on this call. It's on our customers’ technology as well in this, in dish machines and equipment and so on as we've always done.

顯然，隨著時間的推移，我們將處於更有利的位置，可以在更有意義的地方進行投資。約翰，我們將一如既往地繼續投資。這是凍結股息，這是我們的業務，我們有很多機會。我們在這次通話中討論了創新。這也與我們客戶的技術有關，包括洗碗機和設備等等，我們一直都是這麼做的。

And then there is the M&A. I really like the pipeline that we have very focused on the three areas that have been priorities for me, water and especially on the high-tech side, data centers and microelectronics. So, Fabs, in other words, in life science and in digital techno technology.

然後是併購。我非常喜歡我們非常關注的三個領域，這三個領域一直是我的優先考慮，即水，特別是高科技方面，資料中心和微電子。換句話說，Fabs 存在於生命科學和數位技術領域。

So really like the pipeline we have, the capabilities we have at the same time, but we will always remain disciplined as well in terms of how we deploy our capital. So if we find the right things, and as mentioned, there are a lot of right good things out there for us, we will move and we'll let obviously, and as a lot of priority will always be buybacks as we've done in the past few years and as we're doing as well in 2025 at the same time.

所以真的很喜歡我們擁有的管道，同時擁有的能力，但在如何部署我們的資本方面，我們也將始終保持紀律。因此，如果我們找到正確的東西，並且如前所述，我們有很多正確的好東西，我們就會採取行動，顯然我們會讓步，並且很多優先事項始終是回購，就像我們在過去幾年中所做的那樣，同時我們在 2025 年也會這樣做。

So I don't think we could be in a better position right now. So we have a great machine generating a lot of cash, a fortress balance sheet, great opportunities in front of us and priorities that haven't changed for a very long time.

所以我認為我們現在的處境不可能更好了。因此，我們擁有一台能夠產生大量現金的強大機器、一份穩固的資產負債表、擺在我們面前的巨大機會以及長期以來從未改變的優先事項。

Jeff Zekauskas, JPMorgan

摩根大通 Jeff Zekauskas

Thanks very much. In the water business, the organic change was 2% and that I think your water business grew maybe volumes grew one. Please correct me if I'm wrong. And your overall price for the company was 2%, but it seems that it was lower in water.

非常感謝。在水務業務中，有機變化率為 2%，我認為您的水務業務可能成長了，銷量也成長了。如果我錯了，請糾正我。而且你們給公司的整體報價是2%，但好像加了水之後更低了。

So is the challenge for the second half to get better pricing in the water division, and do you need it in paper and in heavy industry where you're contracting a little bit? Is that the challenge for the second half in pricing?

那麼，下半年的挑戰是在水務部門獲得更好的定價嗎？在造紙和重工業領域，您是否需要它來應對一些萎縮？這是下半年定價面臨的挑戰嗎？

No. I don't think so. Our water business has always been pretty strong at driving value price back by total value delivered. They've invented actually that concept a long time ago, so they know how to do it. They've been good at delivering it at the same time we make absolutely sure that we get the value price, when we truly get as well so the TVVD, the cost savings within our customer operations.

不。我不這麼認為。我們的水務業務一直非常強勁，能夠透過交付的總價值來推動價值價格的回升。事實上，他們很久以前就發明了這個概念，所以他們知道該怎麼做。他們一直擅長於交付它，同時我們絕對確保我們獲得價值價格，當我們真正獲得 TVVD 時，我們客戶營運中的成本節省。

So we, we're not disclosing by segments as the price and volume, but you're more right than not so with your assumption on water, which makes me feel good, actually, and as mentioned before, so water, organic growth, X, paper, and basic industries, well, would be four, so it's a very good story, as Scott mentioned as well, and the operating incomes would be in the mid-teens as well at the same time.

因此，我們不會按細分市場披露價格和數量，但你對水的假設比不正確更正確，這實際上讓我感覺很好，正如之前提到的，水、有機增長、X、紙張和基礎工業，嗯，將是四個，所以這是一個非常好的故事，正如斯科特提到的那樣，同時營業收入也會在十幾歲左右。

So a really good story. So, for me, Jeff, it's really focusing on what grows fast in water. It's global high-tech data centers and especially microelectronics, these two growing collectively, so 30%, very good. The rest of the business is growing nicely, and we have those two businesses that are not growing, paper and basic industries, but I think that that's going to change, at some point.

這真是一個精彩的故事。所以，對我來說，傑夫，真正關注的是水中生長迅速的東西。這是全球高科技資料中心，特別是微電子，這兩個領域共同成長，所以成長了 30%，非常好。其餘業務都在良好成長，只有兩項業務沒有成長，即造紙和基礎工業，但我認為這種情況在某個時候會改變。

Basic industries is, as you may or maybe don't know, it's, our steel business. It's our power business and it's our chemicals are in there. Well, those ones with what's happening around us with the whole trade negotiations, I think ultimately are going to turn better as well over time, and the paper business is very much related to consumer goods growth as companies grow out there the FMCG of that world.

基礎產業，您可能知道，也可能不知道，就是我們的鋼鐵事業。這是我們的電力業務，也是我們的化學品業務。好吧，我認為，隨著整個貿易談判的進行，情況最終也會隨著時間的推移而好轉，而且隨著公司在快速消費品領域的發展，造紙業務與消費品的成長密切相關。

So those ones are going to be okay. It's never going to be a great pros, but it's going to be okay as well. So, if I put it all together, 85% is going really well in that water business, 15% a little bit more challenged, margins are really good in the businesses that are growing fast, and our growth businesses keep accelerating, especially in the high-tech sector. So generally water will be in a good shape.

所以那些都會沒事的。雖然這永遠不會成為偉大的職業選手，但也會很好。所以，如果把所有因素綜合起來，85% 的水務業務發展非常順利，15% 的業務面臨一些挑戰，快速成長的業務利潤率非常好，我們的成長業務持續加速，特別是在高科技領域。所以一般來說水質會處於良好狀態。

Andy Wittmann, Robert W. Baird

安迪威特曼、羅伯特W貝爾德

Great, good afternoon and thank you for taking my question. I guess I wanted to ask about free cash flow and just try to understand a little bit more about what's happening here. As I look at it on a year to year basis and normalize it for days like the inventory up to the smidge, receivables are up more than a smidge and payable days are actually extended as well, yet your year of the cash flow is down and year-to-date you're about 65% of your adjusted net income.

很好，下午好，感謝您回答我的問題。我想問一下自由現金流，只是想進一步了解這裡發生的事情。當我按年查看它並將其標準化為庫存上升到一點點的天數時，應收帳款增加了不止一點點，應付天數實際上也延長了，但你今年的現金流卻下降了，年初至今你的調整後淨收入約為 65%。

I know you always target 95% and so obviously the second half is going to have to ramp if this year is going to be a 95% year. So I guess Scott, maybe the question is, do you still expect it to be a 95% year and maybe what happened in the first half or do you see, did anything happen that's unusual in the first half that we should know about that maybe has you at a slightly below plan for the year?

我知道你們的目標始終是 95%，所以如果今年要達成 95% 的目標，下半年顯然必須加大力度。所以我想斯科特，也許問題是，你是否仍然預計今年的業績會達到 95%，也許上半年發生了什麼，或者你是否看到上半年發生了一些我們應該知道的不尋常的事情，也許這會讓你今年的業績略低於計劃？

Hey, thank you, Andy.

嘿，謝謝你，安迪。

And more of an expert on cash flow. The high-level answers on the year. I expected the free cash flow conversion to be right around 90%, which is our historical trend. As you think about cash flow for the year, what you might not recall in Q1 is that we had an unfavorable year over year comparison.

而且更像是現金流的專家。高層對此作出解答。我預計自由現金流轉換率將在 90% 左右，這是我們的歷史趨勢。當您考慮年度現金流時，您可能不會記得第一季我們的年比表現並不理想。

If you look at Q2, the free cash flows were actually up 17% year over year, driven by the great earnings growth. But in the year-to-date and then the year-to-date down because of that Q1, and we had this really strong comp to last year and it was just due to the timing of cash payments.

如果你看一下第二季度，你會發現自由現金流實際上比去年同期成長了 17%，這得益於巨大的獲利成長。但由於第一季的影響，今年迄今的業績有所下降，與去年相比，我們的業績表現非常強勁，這只是由於現金支付的時間安排。

And then that 90%, as I said, we expect to deliver for the full year driven by the strong journey growth, but as you might also recall, I talked about CapEx will be a little bit higher this year around 7%, which is why it's at 90%, not maybe closer to 95%, but feels very good about the free cash flow trajectory, but because of the Q1, the year year-to-date number looks a little bit funky.

然後，正如我所說，我們預計在強勁的旅程增長的推動下，全年將實現 90% 的增長，但您可能還記得，我談到今年的資本支出將略高 7% 左右，這就是為什麼它達到 90% 的原因，而不是接近 95%，但對自由現金流軌跡感覺非常好，但由於第一季度，今年迄今為止的數字看起來有點奇怪。

Matthew Doye , Bank of America.

馬修‧多伊（Matthew Doye），美國銀行。

Yeah, thank you. Good afternoon. Margins in Life Science were pretty strong on the quarter. Can we just dive into that a little bit and maybe what's driving the expected quarter over quarter drop back towards the mid teens, from the nearly 20% on the quarter itself?

是的，謝謝。午安.本季生命科學領域的利潤率相當高。我們能否深入探討這個問題，是什麼原因導致預期的季度環比下降從本季的近 20% 回落至十五六% 左右？

It's two things actually, Matt. When you think about Life Science, the margin growth in was especially driven because pharma biopharma had great growth and they had the highest margins as well at the same time. So the mix of margins was highly positive in the second quarter, so very good story that to that great outcome as well at the same time.

事實上這是兩件事，馬特。當您考慮生命科學時，利潤率的成長尤其受到推動，因為製藥生物製藥業實現了巨大的成長，同時利潤率也最高。因此，第二季的利潤率組合非常積極，這是一個非常好的故事，同時也帶來了非常好的結果。

Interestingly enough, in that business, it's a little bit depending on the deliveries as well that you can have, that price per pound is absolutely huge in that business. So depending on the exact timing of deliveries, it might be on one quarter or the other one, which is totally fine.

有趣的是，在那個行業中，它有點取決於你能得到的交付量，那個行業中每磅的價格絕對是巨大的。因此，根據具體的交付時間，可能是在一個季度或另一個季度，這完全沒問題。

There's no cyclicality in that business year over year it's steady, but quarter by quarter, so you might have some timing differences related to delivers. But what's most important is that as I've shared so many times, we keep investing in that business. We are the small, agile of the three players in that industry on the planet and want to remain, so.

該業務沒有週期性，逐年保持穩定，但逐季度變化，因此可能會存在與交付相關的一些時間差異。但最重要的是，正如我多次分享的那樣，我們會繼續對該業務進行投資。我們是全球該行業三家規模較小、反應敏捷的公司之一，並且希望保持這種狀態。

So we keep investing in business. So you get mid-teen type of reported margin. The true underlying are closer to the mid-20s out there. So it's kind of investing the difference in capabilities means innovation, people, R&D in the world and capacity and plants as well at the same time in order to really do that business and get to that leadership position that we looking for, as a business here.

因此我們繼續對業務進行投資。因此，您獲得了中等程度的報告利潤率。真正的潛在價值接近 20 多歲。因此，這就像是對能力差異的投資，意味著創新、人才、全球研發、產能和工廠，以便真正開展業務並達到我們所尋求的領導地位。

So it won't be a straight line to heaven, but a very strong performance. I've always been bullish about that business. Well, the results so far this year are very strong, and they're going to keep getting stronger. So, it's a really good story that keeps getting stronger, but I want to make sure I keep investing as well at the same time. That will have an impact on our margin for a while.

因此，這不會是一條通往天堂的直線，但卻是一次非常強勁的表現。我一直對這項業務持樂觀態度。嗯，今年到目前為止的成績非常好，而且還會越來越好。所以，這是一個非常好的故事，而且會越來越精彩，但同時我也想確保自己能夠繼續投資。這會在一段時間內對我們的利潤產生影響。

Mike Harrison, Seaport Global Securities LLC

麥克哈里森，Seaport Global Securities LLC

Hi, good afternoon. Just looking at the balance sheet and the $1.9 billion in cash on the balance sheet is kind of an elevated number. I know that you have about $600 million worth of notes that are coming due, but any other explanation of why that cash balance is getting so high and kind of should we expect that to remain high, adjusted for that $600 million of notes payable.

嗨，下午好。只要看一下資產負債表，就會發現資產負債表上的 19 億美元現金是一個相當高的數字。我知道您有價值約 6 億美元的票據即將到期，但對於為什麼現金餘額如此之高，以及我們是否應該預期該餘額將保持高位，並根據 6 億美元的應付票據進行調整，還有其他解釋嗎？

Hey, good to hear you, Mike. Yeah.

嘿，很高興聽到你的消息，麥克。是的。

Hey, Mike, first I'd just start by saying our priorities around capital allocation have not changed, as Christophe said before, it's dividends, invest in the business and what's left over, we think about buybacks, as you said, balance sheets in a great position. That leverage is down to 1.7% and just for reference, our long term target is around two times.

嘿，麥克，首先我想說的是，我們在資本配置方面的優先事項沒有改變，正如克里斯托夫之前所說，是股息，投資於業務，剩下的，我們考慮回購，正如你所說，資產負債表處於良好狀態。槓桿率已降至 1.7%，僅供參考，我們的長期目標大約是兩倍。

So in a very good position, as you said, about $1.9 billion in a Q2 that included $500 million from a bond offering we did in June and that was in advance of a Euro maturity of about $525 million that we paid down in July.

因此，正如您所說，我們處於非常有利的地位，第二季度的資金約為 19 億美元，其中包括 6 月份發行債券獲得的 5 億美元，這筆錢是提前於 7 月份償還的約 5.25 億美元歐元到期債務而籌集的。

So, there was a little bit of a timing from the bond offering on the maturity here, but still, even after that, cash remains high, but it's really the fact that we have the strong balance sheet and we like the option optionality gives us to create value, particularly in this environment, right?

因此，從債券發行到到期，存在一些時間安排，但即使在此之後，現金仍然很高，但事實上我們擁有強大的資產負債表，我們喜歡期權選擇權給我們創造價值，特別是在這種環境下，對吧？

As Christo said, we get to invest in the business capabilities, capacity, firepower, innovation, but at the same time, we have a very good M&A pipeline that we'll be opportunistic about but also very disciplined and in a great position to enhance value by investing in those growth engines that he talked about water, GHG, Life Science, and Digital and but be disciplined about it to make sure we drive great returns. So we like the position we're in.

正如克里斯託所說，我們要投資於業務能力、產能、火力和創新，但同時，我們擁有非常好的併購管道，我們會抓住機會，但也會非常自律，透過投資他談到的水、溫室氣體、生命科學和數位等成長引擎，我們處於非常有利的位置來提升價值，但要遵守嚴格紀律，以確保我們獲得豐厚的回報。所以我們喜歡我們現在所處的位置。

Laurence Alexander, Jefferies.

勞倫斯‧亞歷山大，傑富瑞集團。

Hello. So one question about the gross investments that you're doing on the, in the three growth areas for the three priority areas. How do the IRRs and cash paybacks, or payback periods compare with the more traditional investments that Ecolab would do in the institutional and in the Nalco business in the 90s, 2000, 2010? Can you give a sense that there's any material difference in the economics that you're seeing?

你好。所以我想問一下你們在三個優先領域的三個成長領域進行的總投資。與藝康集團在 90 年代、2000 年和 2010 年對機構和納爾科業務進行的更傳統的投資相比，內部收益率和現金回收期如何？您能否說說您所看到的經濟狀況是否有實質差異？

So I don't have an exact answer to that. I don't think that Scott has one either, but it's four businesses first, and depending on how you count, it can be even five because it's life science, it's GHD, so global high-tech, with two parts, data centers and microelectronics, it's best intelligence, and it's Ecolab digital.

所以我對此沒有確切的答案。我認為斯科特也沒有，但首先是四項業務，而且根據你的計算方式，甚至可以是五項，因為它是生命科學，是 GHD，所以是全球高科技，有兩個部分，數據中心和微電子，是最好的智能，它是藝康數字。

All four or five are growing very fast, so close to $3 billion growing double digits, with margins that are closer to a 30 than a 20. That's a very good story. So if margins are over average and as we invest as we go as a business model principle, basically. Well, we should have a return that's higher than the average. That's my rocket scientist math.

這四、五家公司都成長非常快，銷售額接近 30 億美元，成長率達到兩位數，利潤率更接近 30%，而不是 20%。這是一個非常好的故事。因此，如果利潤率高於平均水平，我們就會邊投資邊進行投資，這基本上是一種商業模式原則。嗯，我們的回報應該高於平均。這就是我的火箭科學家數學。

I'm not the finest guy, but that's the way I would look at it, and that's why I keep investing in those businesses where I know they will be booming. When we think about biopharma, well, this is the future of pharma. When I think about data centers, well, we're growing 30%, we have technology that no one else has.

我不是最優秀的人，但這就是我看待這個問題的方式，這也是為什麼我會繼續投資那些我知道會蓬勃發展的企業。當我們想到生物製藥時，這就是製藥業的未來。當我想到資料中心時，我們正在成長 30%，我們擁有別人所沒有的技術。

In order to really help data centers shift the power that's being used for cooling, which is 40% of the power by the way, towards compute. When we think about microelectronics, think about one of the big microelectronics manufacturers in Asia in the world today uses as much water as one of the largest food companies in the world in one year.

為了真正幫助資料中心將用於冷卻的電力（順便說一下佔電力的 40%）轉向計算。當我們考慮微電子技術時，想想當今世界亞洲最大的微電子製造商之一一年使用的水量與世界上最大的食品公司之一一年使用的水量一樣多。

So, you put those two numbers together and say, well, water solutions will be game changing for that industry. Past intelligence, we talked about it and Ecolab Digital, that's doing unbelievable work under David Bingenheimer's leadership here.

因此，將這兩個數字放在一起，你就會說，水解決方案將改變該行業的遊戲規則。過去的情報，我們談論過它和 Ecolab Digital，它在 David Bingenheimer 的領導下做著令人難以置信的工作。

It's been a year, $380 million annualized business growing 30% at very high margin. Those are all businesses that are going to be great down the road for me. I know it's higher than average in terms of return, and it's definitely the right thing to do.

這一年來，我們的年化業務達到 3.8 億美元，利潤率高達 30%。對我來說，這些都是未來會很美好的事業。我知道它的回報高於平均水平，而且這絕對是正確的做法。

Joshua Spector, UBS Equities

瑞銀股票部門 Joshua Spector

Yeah, hi, good morning. I was wondering if you could size how much you think you're reinvesting in the business today versus what you thought you would do in 2025, six months ago. And if you could just help us understand kind of where that is going.

是的，你好，早安。我想知道您是否可以估算一下您目前對業務的再投資額與六個月前您預計在 2025 年會做的投資額。如果您能幫助我們了解事情的進展的話。

I guess in the context that your SGNA is actually down year over year, where is that going and kind of how do you think about the timeline of that payback? Somewhat similar to Lawrence's question. Thanks.

我想，在您的 SGNA 實際上逐年下降的情況下，它會走向何方，您如何看待回報的時間表？有點類似勞倫斯的問題。謝謝。

It's a difficult question to answer here, but you've heard from Scott in terms of CapEx, so it's been 1% point plus that we've invested this year and since it's working quite well, it's maybe something we might be continuing to do as well in SG&A it might be half a point.

這是一個很難回答的問題，但你已經從斯科特那裡聽說了資本支出方面的問題，所以我們今年的投資已經增加了 1% 以上，而且由於效果很好，也許我們會繼續這樣做，在銷售、一般和行政管理方面也可能增加半個百分點。

It depends how you define that very clearly, but we want to make sure that it's focused on three things. The first one is say firepower, which means serving customers. Second is digital technologies, and third is one Ecolab. This is where we invest, how we invest, and really making sure that we build those businesses as strong as we can.

這取決於你如何明確地定義它，但我們希望確保它專注於三件事。第一個是火力，也就是服務客戶。第二是數位技術，第三是藝康。這就是我們投資的地方、投資的方式，以及真正確保我們盡可能強大地打造這些業務。

So I hope it's giving you some perspective on how we're thinking about it, but at the same time, like the life science example before, I want to know what's the margin pre-investment and post-investment, so that we know what's the long term run rate and life science that mid-teens are reported, mid-twenties underlying and well, as the business grows, that's going to go up as well at the same time, so very focused, very controlled, and we know where we're going.

因此，我希望這能讓您了解我們的想法，但同時，就像之前的生命科學示例一樣，我想知道投資前和投資後的利潤率是多少，以便我們了解長期運行率是多少，生命科學的報告中十幾歲，潛在的二十五六歲，並且隨著業務的增長，這個數字也會同時上升，因此非常專注，非常可控，我們知道我們要去哪裡。

Jason Haas, Wells Fargo

傑森‧哈斯，富國銀行

Hey, good afternoon, and thanks for taking my question. This one may pick you back off the last question, but I'm curious if you could maybe give some examples of the cost savings and efficiencies that you've been able to find as you've implemented, One Ecolab and some of your other initiatives. Thank you.

嘿，下午好，感謝您回答我的問題。這個問題可能會讓您回想起上一個問題，但我很好奇您是否可以舉一些例子，說明您在實施「一個藝康」和其他一些措施時所取得的成本節約和效率。謝謝。

Hey, that's a great question. So for Scott, who has done amazing work in one Ecolab, especially the one company part which is really aligning the whole company behind our customers by leveraging technology, Gen AI in dramatic ways, probably one of the companies most advanced in that work, at least that's what we hear out there. So Scott, why don't you share a little bit of what you see and what you're doing?

嘿，這是一個很好的問題。因此，對於斯科特來說，他在藝康集團做出了令人驚嘆的工作，尤其是在公司層面，他通過以戲劇性的方式利用技術、Gen AI，真正地讓整個公司與我們的客戶保持一致，他可能是這項工作中最先進的公司之一，至少這是我們所聽到的。那麼史考特，為什麼不分享一下你所看到的和你正在做的事情呢？

Yeah, absolutely, Jason, as you said, leverage is very good. We drove 50 basis points in Q2, expect to drive that 20 basis points we talked about earlier in the year as we continue to invest in the business. The one thing I do want to know, and I'm going to take the opportunity, not every quarter will be created equal.

是的，傑森，正如你所說，槓桿非常好。我們在第二季度實現了 50 個基點的成長，隨著我們繼續對業務進行投資，我們預計還將實現我們今年稍早談到的 20 個基點的成長。我確實想知道一件事，而且我將抓住機會，並不是每個季度都是平等的。

We expect Q3 SG&A to be up a couple points sequentially Q2 to Q3, in part due to FX as you look. FX last year was a favorable item in Q3. It'll be unfavorable this year. But to get to the core of your question on the savings, what's driving that leverage, it's one Ecolab which is allowing us to reinvest in the business.

我們預期第三季銷售、一般及行政支出將比第二季至第三季較上季上升幾個點，部分原因是外匯因素。去年外匯是第三季的有利項目。今年的情況會很不利。但要回答你關於節省的問題的核心，是什麼推動了這種槓桿作用，答案是藝康讓我們能夠對業務進行再投資。

As we've talked about Ecolab is a growth program, but at the same time, there's productivity that we're getting out of it that we're focused on driving this growth with our cross sell opportunity, which is $55 billion. But at the same time, we're driving great efficiencies as we do that. We're ahead of schedule on $140 million of savings.

正如我們所說的，藝康是一個成長計劃，但同時，我們也從中獲取生產力，我們專注於利用 550 億美元的交叉銷售機會來推動這一成長。但同時，我們這樣做也提高了效率。我們提前完成了 1.4 億美元的節省。

I would say we'll be a little bit north of 50% of that realized in 2025. Of course, the costs come a little bit ahead, and driving those savings is how we use our five global centers of excellence, right, and create some scalable processes and leveraging that hygienic AI that Christophe talked about, automating and augmenting people work, right, which includes which improves the experience of both our customers as well as our associates.

我想說，到 2025 年，我們就能實現這目標的 50% 左右。當然，成本會稍微高一些，而推動這些節約的是我們如何使用我們的五個全球卓越中心，對吧，並創建一些可擴展的流程，並利用 Christophe 談到的衛生人工智慧，實現自動化和增強人們的工作，對吧，其中包括改善我們的客戶和員工的體驗。

So, I expect, as I said, the SG&A leverage to be about 20 to 30 basis points in 2025 as we continue to then to reinvest in the business. But beyond '25, that platform from one equal lab and the digital platform that we're building there is going to help us generate leverage above our historical average, which has been about 20 to 30 basis points.

因此，正如我所說，我預計，隨著我們繼續對業務進行再投資，到 2025 年，銷售、一般和行政費用槓桿率將達到約 20 至 30 個基點。但到了25年後，這個來自同一實驗室的平台和我們在那裡建構的數位平台將幫助我們產生高於歷史平均的槓桿率，歷史平均約為20到30個基點。

Kevin McCarthy, Vertical Research Partners

凱文麥卡錫（Kevin McCarthy），Vertical Research Partners

Yes, thank you and good afternoon, Christoph. I appreciate your bifurcation into the 85% that's doing well in the 15% where basic industries are more challenging. I'm curious as to whether the relative weakness in those basic industry markets may necessitate any new or incremental actions by Ecolab.

是的，謝謝你，下午好，克里斯托夫。我很欣賞你把 85% 分成兩部分，一部分發展良好，另一部分發展基礎產業，而 15% 的基礎產業則更具挑戰性。我很好奇，這些基礎產業市場的相對疲軟是否可能需要藝康採取任何新的或漸進的行動。

I'm thinking about portfolio composition resource allocation, productivity initiatives and the like, or is it the case that, hey, these are really just cyclical and markets and they'll come back before too long and it would be a mistake to go down those paths. Maybe a different way to ask the question, is it purely cyclical or do you see any structural elements that may argue for pulling some levers?

我正在考慮投資組合構成、資源配置、生產力舉措等，或者是，嘿，這些實際上只是周期性的市場，它們很快就會回歸，走這些路將是一個錯誤。也許換一種方式來問這個問題，它是純粹的周期性還是您是否看到任何可能需要採取一些措施的結構性因素？

No, I don't see any structural issue, and if there were, I mean, we've demonstrated that in the past that we have no problem of addressing those issues either ourselves or in better hands as we did with our surgical business in in 2024.

不，我沒有看到任何結構性問題，如果有的話，我的意思是，我們過去已經證明，我們可以自己解決這些問題，或者交給更好的人來解決，就像我們在 2024 年處理外科手術業務時所做的那樣。

This is not the case in those two businesses, and if I step back just for a second, one of the big strengths of our company of Ecolab is the number of markets that we're serving, the number of geographies that we're serving as well at the same time, which means that when some are struggling a little bit, well, the vast majority is doing well for some very well like our growth engines as mentioned before.

而這兩家公司的情況則不同，如果我退一步想一想，藝康集團的一大優勢就是我們服務的市場數量眾多，同時服務地區數量眾多，這意味著，當一些公司遇到一些小困難時，絕大多數公司都會做得很好，就像我們之前提到的增長引擎一樣。

So there will not be all our businesses, all our geographies being in the green all at the same time. That would be an ideal world. So I see that as a strength of the company. And when I think about those two businesses, especially in basic industries, when I think about power.

因此，我們的所有業務、所有地區不會同時處於獲利狀態。那將會是一個理想的世界。所以我認為這是公司的優勢。當我想到這兩個行業，特別是基礎產業時，我會想到權力。

It's been a sleepy business forever, and we have very good shares. We serve most of the nuclear plants, if not all of them out there, but it's not been growing for a very long time. Well, this is changing dramatically now because of all the developments in AI infrastructure data centers, microelectronics, and so on there that requires so much more power.

這一直是個沉寂的行業，但我們的股票表現非常好。我們為大多數核電廠提供服務，即使不是全部，但這種服務很長一段時間都沒有發展起來。現在，這種情況正在發生巨大的變化，因為人工智慧基礎設施資料中心、微電子技術等領域的不斷發展需要更多的電力。

This takes time obviously to ramp up, but a business which I thought had limited here, I think has now a big future, and we have all the capabilities and even some of the capabilities that the industry themselves do not have anymore because, well, we were the ones and having it and they just reduced their capabilities and leveraged what we had in the past, especially in the nuclear industry.

這顯然需要時間來提升，但我認為這項業務在這裡受到限制，但現在我認為它有著廣闊的未來，我們擁有所有的能力，甚至一些行業本身不再具備的能力，因為我們曾經擁有這些能力，而他們只是減少了他們的能力並利用了我們過去所擁有的能力，特別是在核工業領域。

Well, I think that that's going to be good for us in the future. When you think about our paper business, the shift that we've made so from graphics paper, which we are much less used to be half our business. It's less than 20% today and if our company of any indication where we're trying to be a total paperless company that everything is on digital, well, the business is going to disappear and that's why we're shifting towards consumer products, tissues and towels and specialized packaging.

嗯，我認為這對我們的未來有好處。當您考慮我們的紙張業務時，您會發現我們已經從圖形紙業務（我們很少使用它）轉變為業務的一半。如今這一比例不到 20%，如果我們公司有任何跡象表明我們正試圖成為一家完全無紙化公司，即一切都數位化，那麼業務就會消失，這就是為什麼我們要轉向消費品、紙巾和毛巾以及專門包裝。

I like the innovation that we're making here. We have a lot of signs, a lot of R&D in that field, so we will get to the right place. So, in short, those two businesses are not candidates, for strategic options to use the industry term out there. It's much more for us to bring them to the right place and we know how to do that. So generally, I'm okay with those.

我喜歡我們在這裡所做的創新。我們在該領域有許多標誌和大量研發，因此我們將到達正確的位置。因此，簡而言之，用產業術語來說，這兩家企業並不是策略選擇的候選人。我們的任務是把他們帶到正確的地方，我們也知道如何做到這一點。所以整體來說，我可以接受這些。

Scott Schneeberger, Oppenheimer & Co., Inc.

史考特‧施尼伯格，奧本海默公司

Thanks very much. I have a question for both of you. Scott, first, just have you had time to consider the one big beautiful Bill Act, the impact most likely on free cash flow, how you're thinking about that? any comprehensive quantification?

非常感謝。我有一個問題想問你們兩位。史考特，首先，你有沒有時間考慮這項美麗的法案，它對自由現金流的影響最有可能是怎樣的，你是如何看待它的？有沒有任何全面的量化？

And then Christo, a lot of discussion, particularly about some of the basic industry paper software areas that seem, that you mentioned earlier impacted by tariffs. Could you just kind of address a high level how you're thinking about the tariffs right now, how it could affect in the back half?

然後克里斯托，有很多討論，特別是關於一些基礎行業紙質軟體領域的討論，你之前提到這些領域似乎受到關稅的影響。您能否從高層角度談談您目前對關稅的看法，以及它將如何影響下半年？

I know it's very uncertain, so you can't really give one scenario, but what you're thinking about, what's on your mind as far as what you may be experiencing in the back half for the broader business? Thanks.

我知道這非常不確定，所以您無法真正給出一種情景，但是您在想什麼，就更廣泛的業務而言，您在想後半段可能會遇到什麼？謝謝。

Hey, thank you, Scott. I'll pass it first to the other Scott to talk about the DVD, and that covered the other question.

嘿，謝謝你，斯科特。我會先把它傳給另一個斯科特來討論 DVD，這涵蓋了另一個問題。

Thanks, Scott. So hey, net overall, it's still early days, but our expectation is the big beautiful bill is going to be a net positive for the company as you think about it, encouraging investment in the US, which is our strongest market, growing really well with good margins.

謝謝，斯科特。所以，總體而言，現在還為時過早，但我們預計，正如你所想，這張美麗的大鈔將對公司產生淨利，鼓勵對美國的投資，美國是我們最強大的市場，成長非常好，利潤率也很好。

At least to the tax side of it, a bit early to quantify any impact, but I would just tell you where I'm sitting here today. I don't expect it to have a material impact on our tax rate, frankly, but again, that overall expect it to be overall favorable to the business on the tax side. If anything, there would be some short-term cash tax timing, but not an overall effect on the rate.

至少就稅收方面而言，量化任何影響還為時過早，但我只想告訴你我今天在這裡的情況。坦白說，我並不認為它會對我們的稅率產生實質影響，但總體而言，我預計它會對稅收方面的業務產生整體有利的影響。如果有的話，會有一些短期現金稅時機，但不會對稅率產生整體影響。

So for the second part of your question, got the tariffs for the second half, well, they're going to be more impactful by design. It's just a question of time. But as mentioned before, I feel really good with our preparedness, the mechanics as well of it. I see four components of it.

所以對於你問題的第二部分，下半年徵收的關稅，從設計上來說，其影響會更大。這只是時間問題。但正如之前提到的，我對我們的準備工作以及機制感到非常滿意。我認為它有四個組成部分。

So, on one hand, you get the pure tariffs, how much you pay, so when you import, we don't import that much. Since 92% of what we sell is produced locally, which has been our model for a very long time as a company, and we're driving that up. The second of the prices going up.

因此，一方面，您只需要支付純關稅，所以當您進口時，我們不會進口那麼多。由於我們銷售的產品 92% 都是本地生產的，這一直是我們公司長期以來的模式，我們正在推動這一模式。第二次價格上漲。

So for local manufacturers because everybody's onshoring, that's the whole idea obviously of the tariffs here, and then we mitigate that so first by great supply chain work and I'm really blessed with the team we have in supply chain and we have the trade search. And if I put all that together, it's a clear net positive in practice in Q2.

因此，對於本地製造商來說，因為每個人都在國內生產，這顯然是這裡關稅的全部想法，然後我們首先通過出色的供應鏈工作來緩解這一問題，我真的很幸運我們擁有供應鏈團隊，並且我們有貿易搜索。如果我把所有這些因素綜合起來，那麼第二季的實踐顯然會帶來淨收益。

And when I look at the outlook for the second half of the year, I feel really good about it, and that's one of the reasons why our pricing is going to go up. And second, as I've mentioned before, I feel really good about our delivery of our 13% or 12% to 15% for the next few quarters and for 2026 because well we're in a very fortunate place, momentum is good, 85% of the business are 4% and delivering double digit operating income is a very good place.

當我展望下半年的前景時，我感覺非常好，這也是我們的價格將會上漲的原因之一。其次，正如我之前提到的，我對未來幾個季度以及 2026 年實現 13% 或 12% 至 15% 的營業收入感到非常滿意，因為我們非常幸運，發展勢頭良好，85% 的業務為 4%，實現兩位數的營業收入是一個非常好的水平。

The macro is good for us in terms of water for AI in water, for AI infrastructure story I'm going to get it right, life science for biotech, productivity and hospitality, and best intelligence and ultimately our fundamentals are really strong as a company.

就水資源、人工智慧、人工智慧基礎設施、生命科學、生物技術、生產力和酒店業以及最佳智慧而言，宏觀經濟對我們有利，最終，我們作為一家公司的基本面非常強勁。

I'd like to end where I started as well as that whole conversation. I feel really good about where we're going, really good about the delivery for the next few quarters, getting to this 12 to 15, aiming at this midpoint and anything that gets above it because of all the good things that are happening, we'll be shared between investors' returns and investment in future growth and we'll be totally transparent as we move forward on that journey, but overall in a very good place and I feel good with where we're going for the second half of 2026. So thank you to all of you and with that indeed.

我想從我開始的地方以及整個對話的結尾結束。我對我們的發展方向感到非常滿意，對未來幾個季度的交付情況也非常滿意，我們將達到 12 到 15 個季度的目標，瞄準這個中間點，並因為所有正在發生的好事而超越這個中間點，我們將在投資者的回報和對未來增長的投資之間進行分享，並且在我們前進的過程中我們將完全透明，但總體而言，我們處於一個非常好的方向。所以，我向大家表示感謝。

Thank you. That wraps up our second quarter conference call. This conference call and the associated discussion slides will be available for replay on our website. Thanks for your time and participation. I hope everyone has a great rest of the day.

謝謝。我們的第二季電話會議到此結束。本次電話會議和相關討論幻燈片將在我們的網站上重播。感謝您的時間和參與。我希望大家今天剩下的時間都過得很愉快。

Ladies and gentlemen, thank you for your participation. This includes today's conference. You may now disconnect your lines.

女士們、先生們，感謝你們的參與。這包括今天的會議。現在您可以斷開線路了。