EnerSys (ENS) 2024 Q4 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Fourth Quarter 2024 EnerSys Earnings Conference Call. (Operator Instructions) Please be advised today's conference is being recorded.

美好的一天，感謝您的支持。歡迎參加 EnerSys 2024 年第四季財報電話會議。 （操作員指示）請注意，今天的會議正在錄製中。

I would now like to turn the conference over to your speaker today, Lisa Hartman. Please go ahead.

現在我想將會議交給今天的發言人麗莎·哈特曼。請繼續。

Good morning, everyone. Thank you for joining us today to discuss EnerSys' fourth quarter and full year fiscal 2024 results. On the call with me today are David Shaffer, EnerSys' President and Chief Executive Officer; and Andrea Funk, EnerSys' Executive Vice President and Chief Financial Officer.

大家，早安。感謝您今天加入我們討論 EnerSys 第四季和 2024 財年全年業績。今天與我通話的是 EnerSys 總裁兼執行長 David Shaffer；以及 EnerSys 執行副總裁兼財務長 Andrea Funk。

Last evening, we published our fourth quarter and fiscal year 2024 results, and filed our 10-K with the SEC, which are available on our website. We also posted slides that we will be referring during this call. The slides are available on the Presentations page within the Investor Relations section of our website.

昨晚，我們發布了第四季度和 2024 財年業績，並向 SEC 提交了 10-K，這些資訊可在我們的網站上查看。我們也發布了我們將在本次電話會議期間提及的幻燈片。這些幻燈片可在我們網站投資者關係部分的演示頁面上找到。

As a reminder, we will be presenting forward-looking statements on this call that are subject to uncertainties and changes in circumstances. Our actual results may differ materially from these forward-looking statements for a number of reasons. These statements are made only as of today. For a list of forward-looking statements and factors which could affect our future results, please refer to our current 10-K filed with the SEC.

提醒一下，我們將在本次電話會議上發表前瞻性聲明，這些聲明可能會受到不確定性和情況變化的影響。由於多種原因，我們的實際結果可能與這些前瞻性陳述有重大差異。這些聲明僅在今天發表。有關可能影響我們未來業績的前瞻性陳述和因素的列表，請參閱我們目前向 SEC 提交的 10-K 報告。

In addition, we will be presenting certain non-GAAP financial measures, particularly concerning our adjusted consolidated operating earnings performance, free cash flow, adjusted diluted earnings per share and adjusted EBITDA, which excludes certain items. For an explanation of the differences between the GAAP and non-GAAP financial metrics, please see our company's Form 8-K, which includes our press release dated May 22, 2024.

此外，我們將提出某些非公認會計準則財務指標，特別是關於我們調整後的綜合營運收益績效、自由現金流量、調整後的稀釋每股盈餘和調整後的 EBITDA（不包括某些項目）。有關 GAAP 和非 GAAP 財務指標之間差異的說明，請參閱我們公司的 8-K 表格，其中包括我們於 2024 年 5 月 22 日發布的新聞稿。

Now I'll turn the call over to EnerSys' President and CEO, Dave Shaffer.

現在我將把電話轉給 EnerSys 總裁兼執行長 Dave Shaffer。

Thank you, Lisa, and good morning. Please turn to Slide 4. EnerSys delivered a strong finish to the fiscal year with our balanced business portfolio generating solid results in the fourth quarter. Adjusted earnings per share for the quarter of $2.08 was at the high end of our guidance range, and revenue of $911 million was in line with our expectations, with the diversification of our end markets, helping to offset some of the continued softness in telco broadband spending.

謝謝你，麗莎，早安。請參閱投影片 4。本季度調整後每股收益為 2.08 美元，處於我們指導範圍的高端，9.11 億美元的收入符合我們的預期，隨著我們終端市場的多元化，有助於抵消電信寬頻持續疲軟的部分影響開支。

We generated adjusted gross margin improvement and adjusted operating earnings growth versus the prior fourth quarter by maintaining pricing on top of increased IRA benefits.

透過在 IRA 福利增加的基礎上維持定價，我們實現了調整後毛利率的改善和調整後營業利潤的成長。

Fiscal year 2024 marked a year of several exciting developments towards our long-term strategic goals, as we took decisive actions to successfully navigate through a challenging environment. For the full year, revenue was $3.6 billion, down 3% year-over-year, but our adjusted gross margin, adjusted operating earnings and adjusted earnings per share increased even before the impact of expanded IRA benefits.

2024 財年是我們在實現長期策略目標方面取得多項令人興奮的進展的一年，我們採取了果斷行動，成功度過了充滿挑戰的環境。全年營收為 36 億美元，年減 3%，但即使在 IRA 福利擴大的影響之前，我們的調整後毛利率、調整後營業利潤和調整後每股收益也有所增加。

We remain focused on what we can control, driving price mix improvements, optimizing our cost structure to flex through cycles, and improving productivity through automation and flexibility, while delivering new high-tech solutions for our customers. We are seeing healthy demand in our end markets with the exception of communications networks. Although we have not seen telco broadband CapEx spending fully return, we have seen some encouraging signals in overall company order rates, which were up 4% year-over-year with total book-to-bill above 1.

我們仍然專注於我們可以控制的事情，推動價格組合的改進，優化我們的成本結構以適應週期的靈活性，並透過自動化和靈活性提高生產力，同時為我們的客戶提供新的高科技解決方案。我們看到除通訊網路之外的終端市場有健康的需求。儘管我們還沒有看到電信寬頻資本支出完全回歸，但我們在公司整體訂單率方面看到了一些令人鼓舞的信號，訂單率同比增長 4%，總訂單出貨比超過 1。

Andy will give details on our fourth quarter fiscal '24 performance and outlook. But I will first provide a few more highlights and business drivers behind the results. In Energy Systems, adjusted operating earnings improved sequentially as a result of us delivering our cost improvement actions faster than anticipated. We're actively adjusting our cost structure to be more resilient to cyclicality by making changes that will improve the overall margin profile of this business in both down and up cycles, leveraging our market position and proprietary customer solutions.

安迪將詳細介紹我們 24 財年第四季的業績和前景。但我將首先提供一些更多的亮點和結果背後的業務驅動因素。在能源系統領域，由於我們比預期更快採取了成本改善措施，調整後的營業利潤連續改善。我們正在積極調整我們的成本結構，利用我們的市場地位和專有的客戶解決方案，透過做出改變來改善該業務在下行和上行週期中的整體利潤狀況，從而更具週期性彈性。

There are plenty of reasons to be excited about our Energy Systems business. We're focused on meeting the increased needs of our data center customers, now 10% of our total revenue, with global demand accelerating. Industry research shows that AI-fueled data center growth will see hyperscale capacity doubling every 4 years. EnerSys' batteries, including our proprietary thin plate pure lead technology are a recognized leader in uninterruptible power systems or UPS. These are the very heart of the data center, where we enjoy a large share in some of the largest data center markets.

我們的能源系統業務有很多理由令人興奮。隨著全球需求的加速成長，我們致力於滿足資料中心客戶日益增長的需求，目前該需求已占我們總收入的 10%。產業研究表明，人工智慧推動的資料中心成長將導致超大規模容量每 4 年翻一番。 EnerSys 的電池（包括我們專有的薄板純鉛技術）是不間斷電源系統或 UPS 領域公認的領導者。這些是資料中心的核心，我們在一些最大的資料中心市場中佔有很大的份額。

Looking at the rising demand on the electrical grid, industry analysis shows that in the U.S. alone, there will be a need to be some $2 trillion of investments to meet the growth of data centers, renewables and vehicle electrification. EnerSys has a commanding market share in battery backup in all stages of electrical power generation and distribution, and we stand to benefit from our solid incumbent presence in these infrastructure investments.

縱觀不斷增長的電網需求，產業分析表明，僅在美國，就需要約 2 兆美元的投資來滿足資料中心、再生能源和汽車電氣化的成長。 EnerSys 在發電和配電各個階段的電池備援領域都擁有主導市場份額，我們將從我們在這些基礎設施投資中的現有穩固地位中受益。

Realizing this AI-based data growth, we know that consumers will demand ubiquitous access, and as such, the last mile of consumer access will in many cases be delivered by the communication service providers. From fiber to coax, copper to wireless, EnerSys has solutions to assist our customers in powering this next generation of content delivery. As an example, we see increasing interest in our DPX small-cell densification platform for its ability to allow for multiple nodes to be delivered, with a single utility feed over standard existing twisted pair telephone lines. Indeed, we're quite optimistic about our future ability to deliver increasing shareholder value through growth in our Energy Systems business.

實現這種基於人工智慧的數據增長，我們知道消費者將需要無處不在的訪問，因此，消費者訪問的最後一英里在許多情況下將由通訊服務提供者提供。從光纖到同軸電纜，從銅纜到無線，EnerSys 提供的解決方案可協助我們的客戶推動下一代內容交付。例如，我們看到人們對 DPX 小型基地台緻密化平台越來越感興趣，因為它能夠透過標準現有雙絞線電話線路提供單一公用設施饋送，從而允許交付多個節點。事實上，我們對未來透過能源系統業務的成長提供不斷增長的股東價值的能力非常樂觀。

In Motive Power, revenue came in above our plan, as we continue to realize robust maintenance-free conversions. Our maintenance-free solutions achieved another record quarter at 25% of total Motive Power sales in Q4 and a record 22% for the full year. The broader market demand remains healthy with wind shipment status showing positive trends across all 3 regions. Order rates have also returned to, or surpassed, pre-pandemic growth CAGR rates. Europe, in particular, has experienced a strong post-pandemic recovery in orders, while the North American market is still dealing with a larger than normal backlog of truck orders and longer lead times for some of the popular models.

在動力領域，隨著我們繼續實現穩健的免維護轉換，收入超出了我們的計劃。我們的免維護解決方案再次創紀錄，第四季佔動力總銷售額的 25%，全年佔創紀錄的 22%。更廣泛的市場需求仍然健康，三個地區的風電運輸狀況都呈現正面趨勢。訂單率也恢復到或超過了疫情前的複合年增長率。尤其是歐洲，疫情後訂單強勁復甦，而北美市場的卡車訂單積壓量仍高於正常水平，部分熱門車型的交貨時間更長。

Although supply chain constraints are improving, they continue to affect some material handling OEMs. Despite these challenges, the industry remains optimistic about strong shipment performance throughout 2024 and beyond. Consequently, we anticipate some fluctuations in order trends, but see increased demand as we move into the new fiscal year.

儘管供應鏈限制正在改善，但它們繼續影響一些物料搬運原始設備製造商。儘管面臨這些挑戰，業界仍對 2024 年及以後的強勁出貨表現保持樂觀。因此，我們預計訂單趨勢會出現一些波動，但隨著進入新財年，需求將會增加。

In Specialty, we saw record order rates in the quarter and a slight improvement in adjusted operating earnings driven by improving performance out of our Missouri factories and lower freight costs. Aerospace and defense remains extremely robust, marked by a recent large contract for our 6T batteries at a substantial price increase. We're focused on filling our Missouri capacity with our transportation aftermarket products as our investments in production flexibility are on track for completion in the second half of the fiscal year. In our new ventures line of business, we are progressing towards delivering our initial fast charge and storage systems in late summer with enhanced energy storage and software capabilities. Our sales pipeline is growing and we are very excited to see this new line of business gaining momentum.

在特種產品方面，我們看到本季的訂單率創歷史新高，並且由於密蘇裡州工廠業績的改善和貨運成本的降低，調整後的營業利潤略有改善。航空航太和國防仍然極其強勁，最近我們的 6T 電池大額合約價格大幅上漲。我們的重點是用我們的運輸售後市場產品來填補密蘇裡州的產能，因為我們對生產靈活性的投資預計將在本財年下半年完成。在我們的新業務領域，我們正在努力在夏末交付我們最初的快速充電和儲存系統，並增強能源儲存和軟體功能。我們的銷售管道正在不斷成長，我們非常高興看到這條新業務線的發展勢頭強勁。

Please turn to Slide 5. The team is consistently executing to deliver on our strategic priorities. Let me share some highlights from our fourth quarter, starting with Innovate. In our Motive Power products, we're advancing the development of our next-gen charger, which offers advanced features such as over air updates, energy management and high energy efficiency. We are currently in the demonstration phase with customers and look forward to commercialization of this technology -- technological advancement.

請參閱投影片 5。讓我分享第四季的一些亮點，從創新開始。在我們的動力產品中，我們正在推動下一代充電器的開發，該充電器提供無線更新、能源管理和高能源效率等先進功能。我們目前正處於與客戶的簡報階段，並期待這項技術的商業化—技術進步。

Last week, 3 of our Energy Systems' TPPL products for data centers, industrials, and utility and markets were recognized at The Electrical Review and Data Center Review Excellence Awards. I'm proud that our PowerSafe SBS XL 2V was awarded the 2024 Energy Storage Product of the Year, which features the longest design life for stable grid applications, high-energy density and much reduced hydrogen emissions relative to previously installed flooded batteries.

上週，我們的 Energy Systems 用於資料中心、工業、公用事業和市場的 3 款 TPPL 產品榮獲《電氣評論》和《資料中心評論卓越獎》。我很自豪我們的 PowerSafe SBS XL 2V 榮獲 2024 年度儲能產品獎，該產品具有穩定電網應用的最長設計壽命、高能量密度以及相對於以前安裝的富液式電池大大減少的氫排放。

We also continue to focus on optimizing the business. We're maintaining a transformational mindset focusing on cost discipline and efficiencies across the organization and particularly in Energy Systems. We've increased the scope of our Energy Systems' restructuring and identified opportunities to streamline our operations through shared services which will make our business more efficient and better serve our customers. These cumulative actions are expected to result in $47 million of hard annualized cost savings to be realized in fiscal year '25, an improvement of approximately $40 million over that already realized in fiscal year '24. With our optimized organization and footprint in Energy Systems, we're well positioned to capitalize on the growth opportunities ahead and elevated margins when our communication network customers resume normal spending patterns.

我們也繼續專注於優化業務。我們保持變革思維，並專注於整個組織（尤其是能源系統）的成本紀律和效率。我們擴大了能源系統重組的範圍，並找到了透過共享服務簡化營運的機會，這將使我們的業務更加高效，更好地為客戶服務。這些累積行動預計將在第 25 財年實現 4,700 萬美元的硬年化成本節省，比第 24 財年已實現的成本節省約 4,000 萬美元。憑藉我們在能源系統領域的優化組織和足跡，當我們的通訊網路客戶恢復正常支出模式時，我們能夠充分利用未來的成長機會和更高的利潤。

Our TPPL manufacturing flexibility initiatives in Missouri are underway, with noticeable productivity improvements in the quarter. We've begun to see sustainable improvements in our Springfield 2 factory since February, driven by refocusing manning, managing loading between plants and increased efficiency for SKUs. However, we will only be able to realize substantial profitability improvements when all 3 Missouri factories are fully loaded.

我們在密蘇裡州的 TPPL 製造靈活性計劃正在進行中，本季生產力顯著提高。自 2 月以來，在重新調整人員配備、管理工廠之間的裝載以及提高 SKU 效率的推動下，我們的 Springfield 2 工廠開始看到可持續的改進。然而，只有當密蘇裡州的三個工廠全部滿載時，我們才能實現盈利能力的大幅提高。

Looking ahead, we remain on track for tooling and production line upgrades to unlock additional flexibility and cost absorption, enabling increased capacity for specialty products in the second half of fiscal year '25 and accelerating. -- with growth trends including generative AI deriving demand for power electronics and battery backup solutions, we saw increased traction in data centers as previously mentioned.

展望未來，我們仍將繼續進行工具和生產線升級，以釋放額外的靈活性和成本吸收，從而在 25 財年下半年提高特種產品的產能並加速。 ——隨著生成式人工智慧等成長趨勢帶來對電力電子和電池備份解決方案的需求，我們看到了資料中心的吸引力不斷增加，正如前面所提到的。

Sales to data center customers in the Americas were up 14% year-over-year and up 50% versus fiscal year '22. We expect this trajectory to continue and are exploring new solutions for these customers, which will enable us to expand both our offering on top of our current participation in this high-growth market.

美洲資料中心客戶的銷售額年增 14%，與 22 財年相比成長 50%。我們預計這一趨勢將持續下去，並正在為這些客戶探索新的解決方案，這將使我們能夠在目前參與這個高成長市場的基礎上擴大我們的產品範圍。

In Motive Power, we leveraged our EnSite data analytics and NexSys TPPL solutions to prove our ability to accelerate a large national retail customer's sustainability initiatives through transitioning from our flooded lead acid to proprietary TPPL batteries, which will be implemented across 600 locations. We won this award as the pilot sites demonstrated annual cost saving opportunities between $7 million and $10 million, while enabling our customers to reduce their carbon footprint by approximately 2,800 metric tons per year.

在Motive Power 中，我們利用EnSite 數據分析和NexSys TPPL 解決方案來證明我們有能力透過從淹沒式鉛酸電池過渡到專有TPPL 電池來加速大型全國零售客戶的可持續發展計劃，該電池將在600個地點實施。我們之所以贏得此獎項，是因為試點網站展示了每年 700 萬至 1000 萬美元的成本節省機會，同時使我們的客戶每年能夠減少約 2,800 噸的碳足跡。

We continue to advance on the development of our lithium ion cell gigafactory, selecting Greenville, South Carolina, and securing state and local funding totaling over $200 million. We have progressed on the readiness phase of this project, including purchasing land in Greenville, commencing an environmental evaluation of the site, and testing material from domestic and allied country suppliers, to enable a Department of Defense compliant and reliable supply chain. We have obliged to the Department of Energy for additional funding with awards expected to be announced in August of 2024.

我們繼續推進鋰離子電池超級工廠的開發，選擇南卡羅來納州格林維爾，並獲得州和地方總計超過 2 億美元的資金。我們已在該計畫的準備階段取得進展，包括在格林維爾購買土地、開始對該地點進行環境評估以及測試國內和盟國供應商的材料，以建立符合國防部要求的可靠供應鏈。我們已向能源部提供額外資金，預計將於 2024 年 8 月宣布撥款。

Please turn to Slide 6. On the topic of our lithium technology road map, subsequent to the end of the quarter, we were pleased to announce our agreement to acquire Bren-Tronics, which will expand our presence in critical defense applications, broaden our product offerings and strengthen our product development capabilities. This acquisition will accelerate EnerSys' progress in expanding our lithium product offerings, growing revenue and profitability, while advancing towards our fiscal year 2027 targets. We are working on detailed integration planning, which will ensure that the integration process is seamless for our customers day 1 post close. We look forward to welcoming Bren-Tronics' team into the EnerSys at closing, which is anticipated near the end of our first fiscal quarter, subject to regulatory approval.

請參閱投影片 6。的產品開發能力。此次收購將加速 EnerSys 在擴大鋰產品供應、增加收入和獲利能力方面取得進展，同時推動我們的 2027 財年目標。我們正在製定詳細的整合計劃，這將確保整合過程在交易結束後的第一天為我們的客戶提供無縫銜接。我們期待在交易結束時歡迎 Bren-Tronics 的團隊加入 EnerSys，預計在我們的第一個財政季度末附近完成，但須經監管部門批准。

Please turn to Slide 7. Aligned with our strategic framework, we remain highly focused on sustainability. This week, we published our updated annual sustainability report, which highlights our progress towards our objectives, and furthermore emphasizes the way in which our sustainability focus and our products help our customers to meet their own sustainability targets.

請參閱投影片 7。本週，我們發布了最新的年度永續發展報告，其中強調了我們在實現目標方面取得的進展，並進一步強調了我們的永續發展重點和我們的產品如何幫助我們的客戶實現他們自己的可持續發展目標。

Our 2023 accomplishments include reducing our absolute Scope 1 emissions by 4.2% from calendar year '22, marking an overall 25% reduction since calendar year '19 and a 15% reduction in energy intensity since calendar year 2020. We also disclosed our Scope 3 emissions for calendar year '22 and calendar year '23. We also earned several awards in recognition for our environmental and social initiatives across the organization. I am proud of our team's accomplishments, underscoring our commitment to sustainability, energy efficiency and innovation within the manufacturing industry.

我們2023 年的成就包括將範圍1 的絕對排放量比22 日曆年減少了4.2%，自19 日曆年以來總體減少了25%，自2020 日曆年以來能源強度減少了15%。 3 排放量日曆年 '22 和日曆年 '23。我們還獲得了多個獎項，以表彰我們在整個組織內的環境和社會舉措。我為我們團隊的成就感到自豪，這突顯了我們對製造業永續發展、能源效率和創新的承諾。

In closing, I'm proud of all we've accomplished in fiscal year '24 from launching a new line of business with a world-class high-tech battery energy storage system, growing maintenance-free share in Motive Power, undertaking a bold transformation and restructuring in Energy Systems, making significant progress on our path to constructing our own domestic lithium plant. To agreeing to add Bren-Tronics into our specialty portfolio, we have come a long way from our history as a lead acid battery focused company.

最後，我對我們在 24 財年所取得的成就感到自豪，包括推出具有世界一流高科技電池儲能係統的新業務線、增加 Motive Power 的免維護份額、採取大膽的行動能源系統轉型重組，國內鋰工廠建設取得重大進展。為了同意將 Bren-Tronics 添加到我們的專業產品組合中，我們作為一家專注於鉛酸電池的公司已經取得了長足的進步。

These accomplishments are giving us much to be excited about in fiscal year 2025 and beyond. In the past, energy was cheap, plentiful and reliable. This is no longer the case. So as a society, we must rethink the way we manage energy. The global grid infrastructure can no longer support the power consumption driven by energy transition and the electrification of everything. Energy scarcity will be an ongoing concern, further impacted by the climate and global decarbonization policies. This will require new renewable energy coupled with energy storage to enable reliable distribution.

這些成就讓我們在 2025 財年及以後感到非常興奮。過去，能源廉價、充足且可靠。這已不再是這種情況。因此，作為一個社會，我們必須重新思考管理能源的方式。全球電網基礎設施已無法支撐能源轉型和萬物電氣化驅動的電力消耗。能源短缺將成為一個持續存在的問題，並進一步受到氣候和全球脫碳政策的影響。這將需要新的再生能源與能源儲存相結合，以實現可靠的分配。

We are delivering best-in-class technologies, intelligent batteries and revolutionary energy management systems that are solving the problems of today and the future. We have the engineering expertise and customer relationships to capitalize on what's to come. I am confident FY '25 will demonstrate the potential of all the investments we have made in our transformation, reflected in the targets we laid out at our Investor Day last June. Indeed, our future is bright.

我們提供一流的技術、智慧電池和革命性的能源管理系統，解決當今和未來的問題。我們擁有工程專業知識和客戶關係，可以充分利用未來的發展。我相信 25 財年將展示我們在轉型中所做的所有投資的潛力，這反映在我們去年 6 月投資者日所製定的目標中。確實，我們的未來是光明的。

I will now turn it over to Andy to take you through our results and outlook in greater detail. Andy?

現在我將把它交給安迪，讓他更詳細地向您介紹我們的成果和前景。安迪？

Thanks, Dave. Please turn to Slide 9. Fourth quarter net sales of $911 million were down from prior year, but in line with our expectations, driven by a 6.9% decrease in volume, due primarily to temporary telecom broadband spending pauses as well as a 1.3% FX headwind. Overall, we maintained price mix while benefiting from a reduction in inflationary pressures. We achieved adjusted gross profit of $255 million, up $9 million year-on-year, including $36 million of IRA benefits booked as a reduction to cost of goods sold in the quarter.

謝謝，戴夫。請參閱投影片 9。 。整體而言，我們維持了價格結構，同時受益於通膨壓力的減輕。我們實現調整後毛利 2.55 億美元，年增 900 萬美元，其中包括作為本季銷售成本減少的 3,600 萬美元 IRA 福利。

Q4 adjusted gross margin improved 310 basis points over prior year to 28% due to IRA benefits as well as solid price retention. Excluding the IRA benefits, adjusted gross margin was 24.1%, up 100 basis points year-over-year, due in part to a reduction in freight and commodity costs, even after absorbing the margin math impact of higher cost pass-throughs.

由於 IRA 福利以及穩定的價格保留，第四季度調整後毛利率比上年同期提高了 310 個基點，達到 28%。不包括 IRA 福利，調整後毛利率為 24.1%，年增 100 個基點，部分原因是運費和商品成本下降，即使在吸收了較高成本轉嫁的利潤數學影響之後也是如此。

Our adjusted operating earnings were $109 million in the quarter, a $2 million improvement over prior year, resulting in an adjusted operating margin of 12%. Excluding the IRA benefits, we achieved adjusted operating earnings of $73 million, down $17 million versus prior year, with an adjusted operating margin of 8%, 110 basis points lower year-on-year. This decline is entirely attributable to the telecom broadband temporary spending pauses, net of the early impact of the $47 million of annualized hard cost improvements Dave mentioned earlier.

本季調整後營業利潤為 1.09 億美元，比去年同期增加 200 萬美元，調整後營業利潤率為 12%。不計入 IRA 福利，我們實現調整後營業利潤 7,300 萬美元，比上年減少 1,700 萬美元，調整後營業利潤率為 8%，年減 110 個基點。這一下降完全歸因於電信寬頻支出的臨時暫停，扣除戴夫之前提到的 4700 萬美元年硬成本改善的早期影響。

Adjusted EBITDA was $124 million, and adjusted EBITDA margin was 13.7%, an increase of $6 million and up 180 basis points, respectively, versus prior year. Full year net sales of $3.6 billion were down 3% year-over-year. We generated adjusted operating profit of $450 million, including $136 million benefit from Inflation Reduction Act IRC 45X tax credit. Adjusted diluted EPS was $8.35 per share, an increase of 56%.

調整後 EBITDA 為 1.24 億美元，調整後 EBITDA 利潤率為 13.7%，與前一年相比分別增加 600 萬美元和 180 個基點。全年淨銷售額為 36 億美元，年減 3%。我們產生了 4.5 億美元的調整後營業利潤，其中包括 1.36 億美元受益於《通貨膨脹減少法案》IRC 45X 稅收抵免。調整後稀釋後每股收益為 8.35 美元，成長 56%。

Please turn to Slide 10. In line with the high end of our guidance range, adjusted EPS for the fourth quarter was $2.08 per share, an increase of 14% over prior year. Adjusted EPS, excluding the IRA benefit, was $1.20, a 15% decrease over prior year's $1.40. In the fourth quarter of fiscal '24, our effective tax rate was 8.5% on an as-reported basis and 20.2% on an as-adjusted basis before the benefit of the IRA compared to 16.8% in Q4 '23.

請參閱投影片 10。調整後每股收益（不含 IRA 福利）為 1.20 美元，比前一年的 1.40 美元下降 15%。在 24 財年第四季度，我們的實際稅率按報告計算為 8.5%，在 IRA 受益之前調整後的實際稅率為 20.2%，而 23 年第四季為 16.8%。

Please turn to Slide 11. Adjusted EPS for the full year was $8.35 per share. Adjusted EPS, excluding the IRA benefit, was $5.05, up 3% over prior year's $4.92 despite the 3% net lower revenue. Let me now provide details by segment.

請參閱投影片 11。調整後每股收益（不包括 IRA 福利）為 5.05 美元，比上年的 4.92 美元增長 3%，儘管淨收入下降了 3%。現在讓我按細分提供詳細資訊。

Please turn to Slide 12. In the fourth quarter, Energy Systems revenue declined 19% from prior year to $369 million, primarily driven by the lower volumes previously mentioned and FX headwinds, partially offset by improvements in price mix. Adjusted operating earnings of $17 million improved sequentially on flat revenue, but were $12 million lower than prior year. Adjusted operating margin of 4.7% was up 90 basis points sequentially, but decreased 180 basis points versus prior year.

請參閱投影片12。改善所抵消。調整後營業利潤季增 1,700 萬美元，營收持平，但比前一年減少 1,200 萬美元。調整後營業利益率為 4.7%，比上一季上升 90 個基點，但比去年同期下降 180 個基點。

Please turn to Slide 13. Versus prior year, Motive Power revenues increased 3% to $395 million, on a 5% volume increase and 1% acquisitions increase, partially offset by price mix and FX. The reduction in price mix is due to the elimination of utility adder in the quarter, with any negative impact to profit offset by lower utility costs realized in Q4 '24 as well. Motive Power again reported strong adjusted operating earnings this quarter, contributing $58 million, up 15% over prior year. Adjusted operating margins were 14.7%, up 160 basis points over Q4 '23, with the lower utility costs I just mentioned as well as reductions in commodity and freight costs versus prior year. We are very optimistic about the growth opportunities in Motive Power, as our proprietary maintenance-free and wireless charging solutions support our customers' growing needs for automation, electrification and decarbonization solutions.

請參閱投影片 13。價格組合的減少是由於本季消除了公用事業增加因素，對利潤的任何負面影響也被 24 年第 4 季實現的公用事業成本降低所抵消。 Motive Power 本季再次公佈強勁的調整後營業利潤，貢獻 5,800 萬美元，比上年同期成長 15%。調整後的營業利潤率為 14.7%，比 23 年第 4 季成長 160 個基點，我剛才提到的公用事業成本降低，商品和貨運成本較前一年減少。我們對原動力領域的成長機會非常樂觀，因為我們專有的免維護和無線充電解決方案可以滿足客戶對自動化、電氣化和脫碳解決方案不斷增長的需求。

Please turn to Slide 14. Specialty revenue decreased 1% from prior year to $146 million on flattish volume and 1% reduction in price mix, with capacity constraints limiting the growth potential of this line of business. Q4 '24 adjusted operating earnings of $8.5 million were down $1 million from prior year, with adjusted operating margin of 5.8%, down 80 basis points. Margins in this business continued to be pressured by the impact of higher fixed cost absorption related to plant loading issues, as we retool capacity from telecom and broadband to enable more transportation product sizes. As Dave mentioned, we made progress in the quarter with specialty volumes up 11% and adjusted operating earnings up $1 million sequentially and is line of sight to continued improvement this fiscal year.

請參閱投影片 14。 24 年第 4 季調整後營業利潤為 850 萬美元，比去年同期減少 100 萬美元，調整後營業利潤率為 5.8%，下降 80 個基點。隨著我們重組電信和寬頻產能以實現更大的運輸產品規模，該業務的利潤率繼續受到與工廠負載問題相關的較高固定成本吸收的影響。正如 Dave 所提到的，我們在本季度取得了進展，特種產品銷量增長了 11%，調整後的營業利潤環比增長了 100 萬美元，預計本財年將繼續改善。

Given the strength in transportation and aerospace and defense end markets, combined with the enhanced capacity, flexibility and expansion we anticipate in the coming quarters, we are very optimistic about our opportunities in Specialty. In addition, we look forward to integrating Bren-Tronics in the coming months, which will add profitable growth to our existing business, the impact of which is not reflected in any of the numbers or projections we are sharing with you today.

鑑於運輸、航空航太和國防終端市場的實力，加上我們預計未來幾季產能、靈活性和擴張的增強​​，我們對專業領域的機會非常樂觀。此外，我們期待在未來幾個月內整合 Bren-Tronics，這將為我們現有業務帶來利潤成長，其影響並未反映在我們今天與您分享的任何數字或預測中。

Please turn to Slide 15. A particular bright spot for us this quarter continues to be our cash flow, thanks to our earnings growth as well as our commendable management of working capital. We reduced inventory by $57 million versus Q3 '24, achieving our lowest inventory balance in 9 quarters, driven by a targeted reduction in specific raw material and product categories, while maintaining inventory reserves in Energy Systems to be prepared when a telecom broadband recovery occurs. We are also able to improve collections efforts of receivables and extend supplier payments, which is quite an accomplishment in a high interest rate environment.

請參閱幻燈片 15。在有針對性地減少特定原材料和產品類別的推動下，我們的庫存比2024 年第三季度減少了5700 萬美元，實現了9 個季度以來的最低庫存餘額，同時維持了能源系統的庫存儲備，以便在電信寬頻恢復時做好準備。我們還能夠改善應收帳款的催收工作並延長供應商付款時間，這在高利率環境下是一項相當大的成就。

Our primary operating capital reduction generated $204 million of cash in fiscal year '24, approximately half of which was driven by lower sales, with the other half driven by focused efforts across the organization. I should note that the full benefit of the IRA credit will not materially impact our cash flow until our fiscal year 2024 tax filings are finalized, and we received an expected tax refund of approximately $100 million near the end of fiscal year 2025.

我們的主要營運資本削減在 24 財年產生了 2.04 億美元的現金，其中大約一半是由銷售額下降推動的，另一半是由整個組織的集中努力推動的。我應該指出，在我們 2024 財年的納稅申報完成之前，IRA 信貸的全部好處不會對我們的現金流產生重大影響，並且我們預計在 2025 財年結束時收到約 1 億美元的退稅。

CapEx was $27 million in the fourth quarter and $86 million for the full year. In the quarter, we achieved an adjusted free cash flow conversion rate of 128%. As of March 31, 2024, we had $333 million of cash and cash equivalents, and our net debt of $511 million represented a reduction of approximately $225 million from prior year. As a result, our credit agreement leverage ratio improved once again to 1x EBITDA. Our balance sheet remains strong and positions us very well to invest in growth and navigate the current economic environment. We anticipate slightly higher leverage in Q1 '25 as a result of approximately $200 million cash outlay for the planned Bren-Tronics acquisition, but we expect their net leverage will remain below the low end of our 2x to 3x target range.

第四季資本支出為 2,700 萬美元，全年資本支出為 8,600 萬美元。本季度，我們實現了 128% 的調整後自由現金流轉換率。截至 2024 年 3 月 31 日，我們擁有 3.33 億美元的現金和現金等價物，淨債務為 5.11 億美元，比上年減少約 2.25 億美元。結果，我們的信貸協議槓桿率再次提高至 1 倍 EBITDA。我們的資產負債表依然強勁，使我們能夠很好地投資於成長並應對當前的經濟環境。由於計劃收購Bren-Tronics 的現金支出約為2 億美元，我們預計25 年第一季的槓桿率將略高，但我們預計其淨槓桿率將保持在我們2 倍至3 倍目標範圍的下限以下。

Please turn to Slide 16. During the fourth quarter, we paid $9 million in dividends and repurchased $13 million in shares. We currently have approximately $116 million remaining on our buyback authorization.

請參閱投影片 16。目前我們的回購授權剩餘約 1.16 億美元。

Please turn to Slide 17. We remain optimistic about the trajectory of our business and are particularly pleased with our ability to maintain pricing. While we are seeing a healthy demand trends in the majority of our end markets, we have taken substantial actions to improve the overall margin profile of our Energy Systems business despite the cycles experienced in network powering markets, as previously discussed.

請參閱投影片 17。儘管我們在大多數終端市場看到了健康的需求趨勢，但正如前面所討論的，儘管網路供電市場經歷了周期，但我們仍採取了實質行動來改善能源系統業務的整體利潤狀況。

We are providing some updates to our guidance metrics, which we believe will provide a clearer view of our anticipated financial performance. Our fiscal first quarter 2025 guidance range is $860 million to $900 million of net sales and adjusted diluted EPS of $1.93 to $2.03 per share on slightly lower volume, driven by the seasonality of our business. Our fiscal 2025 guidance range is $3.675 billion to $3.825 billion of net sales, and adjusted diluted EPS of $8.55 to $8.95 per share, with a pre-IRA tax rate of 20% to 21%.

我們正在對指導指標進行一些更新，我們相信這將使我們更清楚地了解我們的預期財務表現。我們的 2025 財年第一季指引範圍為淨銷售額 8.6 億美元至 9 億美元，調整後稀釋後每股收益為 1.93 美元至 2.03 美元，但受業務季節性影響，銷量略有下降。我們的 2025 財年指引範圍為淨銷售額 36.75 億美元至 38.25 億美元，調整後稀釋後每股收益為 8.55 美元至 8.95 美元，IRA 前稅率為 20% 至 21%。

We anticipate ongoing volume growth in Motive Power and Specialty with a return to normalcy occurring throughout the year in telecom broadband market and further earnings expansion from the margin improvement actions taken in Energy Systems. We also expect to benefit from continued maintenance-free conversion in Motive Power and increased capacity flexibility, with better cost absorption at our Missouri factory for Specialty. Our CapEx expectation for the full year fiscal 2025 is in the range of $100 million to $120 million.

我們預期動力和專業領域的銷售將持續成長，電信寬頻市場將全年恢復正常，能源系統領域採取的利潤改善措施將進一步擴大獲利。我們也期望受益於動力領域的持續免維護轉換和更高的產能彈性，以及我們密蘇裡州特種工廠更好的成本吸收。我們對 2025 財年全年的資本支出預期在 1 億至 1.2 億美元之間。

Please turn to Slide 18. Before we close, I would like to provide an update on our progress towards the fiscal year '27 goals we issued at Investor Day in June of 2023, which in aggregate are on track. Note that when we issued those targets, we highlighted certain areas, which we had anticipated could push our results to the upside or to the downside. Network build-out delay was one of the potential risks that has materialized. On the upside, our eligibility for expanded IRA benefits has materialized as well. Although our sales CAGR is below the targeted range, we are only 1 year into this 4-year plan. Our fiscal year '25 guidance and longer-term forecast gives us confidence that our financial and operational goals remain achievable.

請參閱投影片 18。請注意，當我們發布這些目標時，我們強調了某些領域，我們預計這些領域可能會推動我們的業績上升或下降。網路建置延遲是已成為現實的潛在風險之一。從好的方面來說，我們獲得擴大的 IRA 福利的資格也已經實現。儘管我們的銷售複合年增長率低於目標範圍，但我們的四年計劃才剛剛實施一年。我們的 25 財年指導和長期預測讓我們相信我們的財務和營運目標仍然可以實現。

I should note that our adjusted EPS actual results for fiscal year 2024 and projected for fiscal year 2025 are both above what we had contemplated in the strategic plan presented at our Investor Day. We reiterate our expectation for fiscal year '27 EPS to be in the range of $11 to $13 per share, with upside from the reinvestment of our excess cash flow, such as the return on our planned Bren-Tronics acquisition, which will be accretive to that EPS target range.

我應該指出，我們 2024 財年調整後的每股盈餘實際結果和 2025 財年的預測都高於我們在投資人日提出的策略計畫中設想的結果。我們重申，我們對 27 財年 EPS 的預期為每股 11 至 13 美元，我們多餘現金流的再投資帶來的好處，例如我們計劃收購 Bren-Tronics 的回報，這將增加EPS 目標範圍。

In summary, we are confident that the foundation we put in place this year, coupled with the investments we have made in our transformation, will deliver accelerating financial returns in the coming years. As Dave mentioned, energy scarcity will continue to be a global concern with megatrends driving rapid increase in demand for reliable power. As a critical supplier of energy systems and energy storage solutions, EnerSys is strategically positioned to capitalize on this growth. We look forward to welcoming the Bren-Tronics team into the EnerSys family in the upcoming months. As we look to fiscal 2025 and beyond, we remain focused on achieving the targets we set at our Investor Day and delivering long-term value creation to our stockholders.

總之，我們相信，我們今年奠定的基礎，加上我們在轉型中所做的投資，將在未來幾年帶來加速的財務回報。正如戴夫所提到的，能源短缺將繼續成為全球關注的問題，而大趨勢將推動對可靠電力的需求快速成長。作為能源系統和能源儲存解決方案的重要供應商，EnerSys 的策略定位是利用這一成長。我們期待在接下來的幾個月內歡迎 Bren-Tronics 團隊加入 EnerSys 大家庭。展望 2025 財年及以後，我們仍專注於實現我們在投資者日設定的目標，並為股東創造長期價值。

With this, let's open it up for questions. Operator?

說到這裡，我們就來開放提問吧。操作員？

(Operator Instructions) Our first question comes from Noah Kaye with Oppenheimer.

（操作員說明）我們的第一個問題來自諾亞·凱和奧本海默。

Nice quarter. Thank you for providing the sales and full year guidance, and now we get to ask about it. So if we just start with Energy Systems, I just want to make sure we're thinking about this right. So we embed the $40 million uplift you called out from the cost savings and even sort of holding revenues flat year-over-year, that would get us to sort of 8% margins for '25, and that would be the margin target for the down cycle. So, A is, is that kind of the right ballpark to be thinking about in terms of what the guidance contemplates? And, B, how should we think about sort of the phasing of that margin improvement as you capture some of the benefits from these actions?

不錯的季度。感謝您提供銷售和全年指導，現在我們要詢問此事。因此，如果我們只是從能源系統開始，我只是想確保我們正確地思考這個問題。因此，我們嵌入了您從成本節約中提出的 4000 萬美元的增長，甚至使收入與去年同期持平，這將使我們 25 年的利潤率達到 8%，這將是 2019 年的利潤率目標。週期。那麼，A 是，根據指南的考慮，這種考慮是否正確？ B，當您從這些行動中獲得一些好處時，我們應該如何考慮利潤率改善的階段性？

Yes. As you know, this telco broadband has really been significant for us. So just first to level set before answering your questions, revenue was down on telco broadband, about $200 million a year in Europe, which $100 million was in the fourth quarter. And overall, we had expected about $100 million of growth for the full year. Our diversified end markets protect us somewhat, but just to give you order of magnitude, the impact to us from this pause was in the vicinity of about $0.50 per share negative impact in Q4 alone and about $1.50 share for the full year.

是的。如您所知，電信寬頻對我們來說確實意義重大。因此，在回答您的問題之前，首先要說明的是，電信寬頻的收入下降了，歐洲每年約 2 億美元，其中第四季為 1 億美元。總體而言，我們預計全年將成長約 1 億美元。我們多元化的終端市場在一定程度上保護了我們，但只是為了給你一個數量級，這次暫停對我們的影響僅在第四季度就約為每股0.50 美元的負面影響，全年約為1.50美元。

So getting back to your question on the actions Dave mentioned, and I'll just kind of reconcile that to what we've said previously, last quarter, we talked about $27 million of savings, $4 million coming from the consumer renewables exit, $6 million from the Spokane closure where we consolidate it with Suwanee and about $17 million of risk. This quarter, we enacted an additional $20 million. Most of these actions are already fully completed. So they will be in the results for the full fiscal year next '25.

回到你關於戴夫提到的行動的問題，我只是將其與我們之前所說的一致，上個季度，我們談到了2700 萬美元的節省，400 萬美元來自消費者可再生能源退出，6美元斯波坎關閉帶來的 1,700 萬美元，我們將其與 Suwanee 合併，以及約 1,700 萬美元的風險。本季度，我們追加了 2,000 萬美元。其中大部分行動已經完全完成。因此，它們將出現在下個 25 年整個財年的業績中。

And we're exploring further actions like appropriate pricing strategies. We're restructuring contracts. We're exploring ways to leverage AI to drive productivity. And with all of these, we are committed to really reshaping the margin profile of the LoB to like 8% to 10% in a down-cycle and then 12% to 15% in an up-cycle with real confidence that it's going to come back and we won't need to add most of those costs. So the actions will improve both the floor and the ceiling of the margin profile throughout the cycle.

我們正在探索進一步的行動，例如適當的定價策略。我們正在重組合約。我們正在探索利用人工智慧來提高生產力的方法。有了所有這些，我們致力於真正重塑 LoB 的利潤狀況，在下行週期中達到 8% 到 10%，然後在上行週期中達到 12% 到 15%，並堅信這一目標將會實現。我們不需要增加大部分成本。因此，這些行動將改善整個週期利潤率的下限和上限。

As far as '25 and the guidance we gave, we really look at it kind of as a -- we don't expect that by the end of the year, we're going to be anywhere near where we would have been had this pause not occurred. But we do expect steady recovery throughout the course of the year. So as the trough really happened to us in Q3 and Q4 of our fiscal year, in Q1 and Q2, we only saw early signs of it. Our Q1 and Q2 in Energy Systems will be down year-on-year, and Q3 and Q4 should have some improvements as we're starting on that trajectory.

就 25 年和我們給予的指導而言，我們確實將其視為 - 我們不希望到今年年底，我們會達到我們本應達到的水平沒有發生暫停。但我們確實預計全年將穩定復甦。因此，由於低谷確實發生在我們財年的第三和第四季度，所以在第一季和第二季度，我們只看到了它的早期跡象。我們的能源系統第一季和第二季將年減，而隨著我們開始沿著這一軌跡發展，第三季和第四季應該會有一些改進。

Yes. And Noah, just -- this has always been a cyclical business. I've been at this a long time, and it's telecom of all the business we serve probably has the most cyclicality. And what Shawn and I talk about is really making sure to hold the gains as when the revenue starts to come back, that we have to sustain these restructuring initiatives that that Andy just went through. And we all know -- and this cycle, as we've said before, has been particularly troublesome because of overstocking coming out of COVID because of interest rate environment.

是的。諾亞，這一直是週期性的行業。我從事這個行業已經很長時間了，在我們所服務的所有業務中，電信業可能是最具週期性的。肖恩和我談論的實際上是確保當收入開始回升時保持收益，我們必須維持安迪剛剛經歷的這些重組舉措。我們都知道，正如我們之前所說，這個週期特別麻煩，因為利率環境導致新冠疫情導致庫存過剩。

But as you look at everything that's happening in the digitization space and all the investment that's going into data centers, that last mile of delivery is critical to get this information in and out of our hands, and that's where these network communications -- these are vital and will be continue to be a strategic and important investment area. So that's what our focus is. So I hope that's enough color on ES.

但是，當你看到數位化領域發生的一切以及進入數據中心的所有投資時，最後一英里的交付對於將這些信息傳入和傳出我們的手中至關重要，而這就是這些網絡通信的地方-這些是至關重要並將繼續成為策略性的重要投資領域。這就是我們的重點。所以我希望 ES 上的色彩就夠了。

Just a few clarifications. Does the CapEx guide for '25 include any material outlays for the gigafactory?

只是一些澄清。 '25 的資本支出指南是否包括超級工廠的任何材料支出？

No.

不。

Not yet.

還沒有。

All right. So we're planning that in August?

好的。那我們計劃在八月進行嗎？

Yes. But no, what we have done, I just want to give you what we've been trying to do on the lithium factory is I want to hit the starting line running. That's been the whole objective. So we’ve made a series of controlled actions, taking a series of controlled actions to make sure that we're not starting. Once the DOE awards are made in August, that's where we really want to hit the starting gate running, as I noted. And we've got lots of examples of things we've done.

是的。但不，我們所做的，我只想告訴你們，我們在鋰工廠一直在努力做的事情是，我想衝上起跑線。這就是整個目標。因此，我們採取了一系列受控行動，採取一系列受控行動來確保我們不會開始。正如我所指出的，一旦能源部在 8 月頒發獎項，我們就真正希望開始行動。我們有很多我們做過的事情的例子。

We made a $10 million investment in a piece of property down in Greenville, South Carolina. We secured $200 million in grants from the State of South Carolina. We’ve done -- we've already started the environmental assessment. We started building some teams up. We made a $10 million Series C round investment into Verkor. So we've been -- and again, the idea and what we're really wanting to do in anticipation of the DOE, in anticipation of final Board approval, we want to make as much progress as we can but doing it in a controlled fashion. So we're trying to do everything we can in advance. So that's where our head is at.

我們投資了 1000 萬美元，購買了南卡羅來納州格林維爾的一處房產。我們從南卡羅來納州獲得了 2 億美元的撥款。我們已經完成了——我們已經開始了環境評估。我們開始組建一些團隊。我們對 Verkor 進行了 1000 萬美元的 C 輪投資。因此，我們一直在——再一次，在能源部的預期中，在董事會的最終批准預期中，我們真正想做的想法和事情，我們希望取得盡可能多的進展，但要在受控的情況下進行。因此，我們正在盡力提前做好一切準備。這就是我們的頭腦所在。

Yes. No, I should probably clarify my response. The $10 million land investment is -- would fall under the lithium plant, although our plan is to not break soil until after we get Board approval. The make versus buy decision is becoming very compelling. We've employed outside consultants to help to clean up and really validate all of the assumptions that we have in our model.

是的。不，我也許應該澄清我的回答。 1000 萬美元的土地投資將屬於鋰工廠，儘管我們的計劃是在獲得董事會批准之前不會動土。自製還是外購的決定變得非常引人注目。我們聘請了外部顧問來幫助清理並真正驗證我們模型中的所有假設。

As we've mentioned before, while we believe this would really de-risk our lithium supply chain, which is strategic to our long-term strat plan, our intention is to only move forward if this is going to be accretive to our long-term 15% ROIC targets. So when the Board officially approved this, if and when the Board officially approves, which we expect would happen after we learn of our DOD potential funding, we'll be happy to share more of the financial implications and statistics on this exciting venture for us.

正如我們之前提到的，雖然我們相信這確實會降低我們的鋰供應鏈的風險，這對我們的長期戰略計劃具有戰略意義，但我們的目的是只有在這對我們的長期增長有利的情況下才會向前推進。因此，當董事會正式批准這項計劃時，如果董事會正式批准（我們預計在我們了解國防部的潛在資金後會發生這種情況），我們將很樂意為我們分享更多有關這一令人興奮的企業的財務影響和統計數據。

Yes. I guess the last piece on that, Andy. No, just one more thought. This recent announcement on tariffs is really just going to -- it's in general, it's going to make importing lithium that much more challenging, and it just accelerates the need for this project.

是的。我想最後一篇是關於這個的，安迪。不，只是還有一個想法。最近關於關稅的公告實際上只是——總的來說，這將使進口鋰變得更具挑戰性，而且只會加速對該項目的需求。

Without a doubt. I just want to ask a last quick one on data center, which is the #1 topic on the planet right now and now 10% of the company's sales. First of all, understanding what the mix of business looks like today, I understand it's primarily the batteries for UPS. I would expect most of that would be TPPL. Curious to know how it's sort of evolving TPPL lithium, et cetera. But really, the broader question is, how do you think about opportunities for wallet share gain and content expansion in the data center build-out beyond the battery supply? Where are the opportunities for the company?

毫無疑問。我只想問最後一個關於資料中心的問題，這是目前全球排名第一的話題，目前占公司銷售額的 10%。首先，了解當今的業務組合是什麼樣子，我知道它主要是 UPS 的電池。我預計其中大部分將是 TPPL。我很想知道 TPPL 鋰是如何演變的，等等。但實際上，更廣泛的問題是，您如何看待電池供應之外的資料中心建設中錢包份額增加和內容擴展的機會？公司的機會在哪裡？

Well, I think you nailed it in terms of our key presence in there right now is really a combination of TPPL and our traditional products. So it's both. We have a very commanding market share positions in North America and in Western Europe, not as much in other parts of the world. And we are absolutely seeking wallet share opportunities. It's a big focus with our M&A team. And -- but as you probably figured out, when we did the Alpha deal, we really didn't get much out of that. That's more on the network side, that last mile side, not so much. So really, the M&A attention is there. Product diversification -- so adding additional -- I made a note about that new tool, SBS product, which is going to be really helpful in that market segment and then some new lithium products that we're working on. So that's -- so I think the battery piece, we've got a really good line of sight on. And in terms of the wallet share that we've got work to do, and that's -- it's a key M&A focus.

嗯，我認為您已經指出了我們目前在該領域的關鍵存在確實是 TPPL 和我們傳統產品的結合。所以兩者都是。我們在北美和西歐擁有非常主導的市場份額，但在世界其他地區則不然。我們絕對在尋求錢包分享機會。這是我們併購團隊的重點。而且——但正如你可能已經發現的那樣，當我們進行 Alpha 交易時，我們實際上並沒有從中得到太多好處。更多的是在網路方面，最後一哩路方面，而不是那麼多。所以說，併購的關注確實存在。產品多樣化——所以增加了額外的——我記下了新工具，SBS 產品，它將對該細分市場非常有幫助，然後是我們正在開發的一些新的鋰產品。所以我認為電池部分我們有一個非常好的視線。就錢包份額而言，我們還有很多工作要做，這是併購的關鍵焦點。

Yes. I think, Dave, you hit it all. It's -- the 2 pieces. There's the growth in our lead acid business and the data centers, which we're in with all the big customers. So we've got a great presence exploring NPIs as well as acquisitions. But on top of that, it's this last mile delivery like access data market, data centers just proliferate, all that data needs to get into the hands of you and me. And that's what really gives us confidence that telco broadband, there’s -- we're not concerned about the growth rates that we put out in our strat plan. We really see this positive temporary and everything is going to be driving growth into those markets over time.

是的。我想，戴夫，你已經做到了一切。這是——兩塊。我們的鉛酸業務和資料中心都在成長，我們與所有大客戶都在其中。因此，我們在探索非營利組織和收購方面表現出色。但最重要的是，這是最後一哩路的交付，就像訪問數據市場一樣，數據中心激增，所有數據都需要進入你和我的手中。這才是真正讓我們對電信寬頻充滿信心的原因——我們並不擔心我們在策略計畫中提出的成長率。我們確實看到了這種積極的暫時性，隨著時間的推移，一切都將推動這些市場的成長。

(Operator Instructions) Our next question comes from Blake Keating with William Blair.

（操作員說明）我們的下一個問題來自布萊克·基廷和威廉·布萊爾。

This is Blake on for Brian. So I wanted to ask on the guidance, what are the puts and takes to get into the low end versus high end of revenue and EBITDA guidance?

這是布萊克為布萊恩代言的。因此，我想詢問指導意見，進入低端與高端收入和 EBITDA 指導意見的看跌期權和支出是什麼？

Yes. In terms of the revenue guidance, and I guess subsequent to that, the biggest explanation for the range is still just a little bit of uncertainty as we go forward with the telco broadband. Right now, what we have modeled in the midpoint of that is some modest sequential growth in the revenue line in our ES sector and then layered in, in combination of that, is the hard cost savings that we called out earlier. So that's what we have in the midpoint, but the range was really mostly a reflection of just still a little bit of uncertainty as to what this recovery and timing is going to look like. Andy, is there anything else?

是的。就收入指導而言，我想在此之後，對該範圍的最大解釋仍然是我們在推進電信寬頻方面存在一些不確定性。現在，我們在其中點建模的是我們的 ES 部門收入線的一些適度的連續增長，然後將其結合起來，是我們之前提到的硬成本節約。這就是我們的中點，但這個範圍實際上主要反映了對於復甦和時機的情況仍然存在一些不確定性。安迪，還有什麼事嗎？

Yes. I'd be happy to give you a little bit more color, Blake, on the full year, especially since this is the first time that we're introducing revenue and full year EPS, which we're really -- it has been a goal of Dave in mind since we -- about the last 2 years. But with all the volatility in the markets, we feel now is the right time to add it. In the full year guidance, we do think telco broadband, there'll be some ongoing softness as we mentioned, but with the steady recovery throughout the course of the year. That's probably the one that's most uncertain. Motive Power and Specialty markets remain very healthy. We should have some Motive Power lithium growth. The way that will play out in the results, it's going to show as maybe an expanded volume impact but pressuring price mix just because it's got a higher cost pass-through. We expect to have our initial Fast Charge and Storage revenue, which we're extremely exciting about.

是的。布萊克，我很樂意為您提供有關全年的更多信息，特別是因為這是我們第一次介紹收入和全年每股收益，我們真的 - 這一直是自從我們過去兩年以來，戴夫就一直銘記著這個目標。但鑑於市場的波動，我們認為現在是添加它的最佳時機。在全年指導中，我們確實認為電信寬頻將出現一些持續的疲軟，正如我們所提到的，但隨著全年的穩定復甦。這可能是最不確定的一個。動力和特種市場仍然非常健康。我們應該會有一些動力鋰的成長。從結果來看，它可能會顯示出銷售影響擴大，但價格組合受到壓力，因為它有更高的成本轉嫁。我們預計將獲得最初的快速充電和儲存收入，對此我們感到非常興奮。

And in line with what we've talked about at strat plan, we fully expect ongoing mix improvements for maintenance-free conversions in Motive Power, which is happening faster than we had anticipated. We expect growth in the aftermarket in Specialty as we unlock some of the capacity in Missouri. And we'll get some mix impacts as power electronics begin to come back in Energy Systems in the second half of the year, but again, that's one of the areas that there's a little more uncertainty on. We'll continue to leverage OpEx discipline, the aggressive Energy Systems margin improvement actions should see the benefit as we've talked about, and we'll be making some additional Fast Charge and Storage investment throughout the course of the year.

根據我們在 strat plan 中討論的內容，我們完全期待動力動力領域免維護轉換的持續混合改進，這比我們預期的要快。隨著我們釋放密蘇裡州的部分產能，我們預計專業售後市場將會成長。隨著電力電子裝置在今年下半年開始回歸能源系統，我們將受到一些混合影響，但同樣，這是存在更多不確定性的領域之一。我們將繼續利用營運支出紀律，積極的能源系統利潤改善行動應該會看到我們所說的好處，並且我們將在全年進行一些額外的快速充電和儲存投資。

Our IRA benefits, again, just to reiterate, $120 million to $160 million per year as previously communicated, where it falls within the range will really depend on volume and mix. As a reminder, telco broadband batteries bring higher credits. As we mentioned, pre-RA tax rate, 20% to 21% versus the 18.9% in '24. There's a slightly higher rate there on discretes, the geography of earnings and the impact of the global minimum tax, the pillar tax coming into play. We have not baked Bren-Tronics into the guidance, and that will depend on when we actually close, which we expect will be near the end of our first quarter, maybe slightly before or slightly after. And I hope that helps.

再次重申，我們的 IRA 收益每年為 1.2 億至 1.6 億美元，正如之前所傳達的那樣，該範圍內的收益實際上取決於數量和組合。提醒一下，電信寬頻電池可以帶來更高的積分。正如我們所提到的，RA 前稅率為 20% 至 21%，而 2024 年為 18.9%。離散股的稅率略高，收入的地域以及全球最低稅的影響，支柱稅正在發揮作用。我們尚未將 Bren-Tronics 納入指導，這將取決於我們實際關閉的時間，我們預計將在第一季末附近，可能稍早或稍晚。我希望這會有所幫助。

Yes, helps a lot. And then on Bren-Tronics, you guys called out that it plays in the lithium portable space, is that an adjacent market, the portable market? Is that an adjacent market you guys are looking to enter? Are you able to leverage -- do you expect to be able to leverage Bren-Tronic's technology to other business lines, for other adjacencies as well?

是的，有很大幫助。然後在 Bren-Tronics 上，你們指出它在鋰便攜式領域發揮作用，這是一個相鄰的市場，即便攜式市場嗎？這是你們想要進入的鄰近市場嗎？您是否能夠利用—您是否期望能夠將 Bren-Tronic 的技術用於其他業務線以及其他相關領域？

Absolutely. It's very exciting in terms of their focus and ours, aligned to customers, a lot of aligned technology, but not a lot of customer -- or not a lot of product or customer overlap. Their focus has mostly been on soldier powering. So smaller packs for radios, GPS locators, all the things. And then the chargers that are associated with it, they've got some really cool charging products that marry up with these portable power products. And then they've got -- they developed a lithium 6T battery, which is really a building block and for all future larger military forward-based powering, energy storage systems, vehicle powering. And it just aligns well where our strength has been mostly historically on the vehicle side, submarine side. So great potential sales synergies as we look forward. As you noted, very good engineering, synergistic capabilities.

絕對地。就他們和我們的關注點而言，這是非常令人興奮的，與客戶保持一致，有很多一致的技術，但沒有很多客戶——或者沒有很多產品或客戶重疊。他們的重點主要是士兵的動力。更小的包裝可以容納收音機、GPS 定位器等所有東西。然後是與之相關的充電器，他們有一些非常酷的充電產品，可以與這些便攜式電源產品結合。然後他們開發了一種鋰 6T 電池，這實際上是所有未來大型軍用前緣動力、儲能係統、車輛動力的基石。這與我們歷史上的優勢主要集中在車輛方面、潛水艇方面非常吻合。我們期待著巨大的潛在銷售綜效。正如您所指出的，非常好的工程、協同能力。

And the other piece, I think, that's really important to me is, as we spend time with their teams and culturally, that group over there is a very warm culture and very focused on their folks. And so I just feel like culturally it's going to integrate very well. Jamie and the team are really jumping in. We want to start integrating day #1. As Andy noted, we've got to wait to get through this regulatory period, but in the meantime, we don't want to have any disruption. My instructions obviously is not to disrupt or make it any different for the customer. So really exciting opportunities. And one of the other really neat products that caught my attention is they're working on battery packs, big battery packs for directed energy weapons, which is really another way of saying laser beams that are going to shoot down the drones and other options. So just a lot of exciting opportunities at Bren-Tronics.

我認為，另一件事對我來說非常重要，當我們花時間與他們的團隊和文化相處時，那裡的團隊有一個非常溫暖的文化，非常關注他們的員工。所以我覺得在文化上它會很好地融合。 Jamie 和團隊真的很投入。正如安迪指出的那樣，我們必須等待一段時間才能度過這個監管期，但與此同時，我們不希望受到任何干擾。我的指示顯然不是要擾亂或改變客戶的情況。真是令人興奮的機會。另一件引起我注意的非常巧妙的產品是他們正在研究電池組，用於定向能武器的大型電池組，這實際上是雷射光束將擊落無人機和其他選項的另一種說法。因此，Bren-Tronics 有很多令人興奮的機會。

Yes. As Dave mentioned, the strategic fit is really exciting. We have a history of working together. So this is not a new company to us, which gives us a lot of confidence in the cultural fit. In fact, that you may recall, we had announced that Bren-Tronics and EnerSys recently won a co-development, $6 million DIU defense innovation brand to establish a domestic supply chain for lithium cells. So we've got synergies on sales, cross-selling, ultimately opportunities for synergy and capacity expansion in the future as the business grows, but we did not really use synergy as a story for the valuation metrics. And as a reminder, it was about a $208-million purchase price. They have approximately $100 million of annual revenue and we bought them at an 8.7% multiple, so immediately accretive.

是的。正如戴夫所提到的，策略契合確實令人興奮。我們有合作的歷史。所以這對我們來說並不是一家新公司，這讓我們對文化契合度充滿信心。事實上，您可能還記得，我們​​曾宣布 Bren-Tronics 和 EnerSys 最近贏得了價值 600 萬美元的共同開發 DIU 國防創新品牌，以建立國內鋰電池供應鏈。因此，隨著業務的成長，我們在銷售、交叉銷售、最終的協同效應和產能擴張方面擁有協同效應，但我們並沒有真正使用協同效應作為估值指標的故事。提醒一下，收購價格約 2.08 億美元。他們的年收入約為 1 億美元，我們以 8.7% 的本益比購買了他們，因此立即增值。

Our next question comes from Greg Wasikowski with Webber Research & Advisory.

我們的下一個問題來自韋伯研究與顧問公司的 Greg Wasikowski。

Just one quick one for me. Other ones have been asked already. Just curious with tons of margin improvement over the last year or 2 and then lots of moving pieces here with the acquisition, Energy Systems volatility, fast charging growth, I'm just curious, as we look ahead, what would be -- what would you say would be your targeted steady-state growth and operating margin targets, maybe with and without the IRA credits just to get -- if we ever reach a steady state? But just an idea of how you guys look at it long term and where you'd like to fit.

對我來說只是一個快速的。其他的已經問過了。我只是好奇過去一兩年利潤率大幅提高，還有收購、能源系統波動、快速充電成長帶來的許多變化，我只是好奇，當我們展望未來時，會發生什麼——會發生什麼你說的是你的穩態成長和營業利潤率目標，也許有或沒有愛爾蘭共和軍信貸只是為了──如果我們達到穩態？但這只是你們如何看待它的長期想法以及你們想要適應的地方。

Yes. Greg, it was interesting. We had a conversation, Andy and I the other day, as to what is normal -- and kind of what we got back to is it's really the CAGRs for the revenue CAGR ranges that we laid out in our Investor Day model most recently. So that for us, and we have just a tremendous confidence about the ES getting back on track to what we laid out. There's just too much out there. There’s too much digitization. There's too much investment yet to be made in small cells not to think that, that is inevitably going to come back. So that's what we're using. So our kind of baseline for normalcy is what we laid out in that Investor Day model. And clearly, there's puts and takes, but we remain very consistent and committed to what we put out there. Andy, is there anything else I missed?

是的。格雷格，這很有趣。前幾天，安迪和我就什麼是正常現象進行了一次對話，我們得到的結論是，這實際上是我們最近在投資者日模型中列出的收入複合年增長率範圍的複合年增長率。所以對我們來說，我們對 ES 回到我們所規劃的軌道充滿信心。那裡的東西太多了。數位化程度過高。在小基地台方面還有太多的投資需要進行，不要以為這種投資將不可避免地回來。這就是我們正在使用的。因此，我們的常態基線就是我們在投資者日模型中所發展出來的。顯然，有放有，但我們仍然非常一致並致力於我們所做的事情。安迪，還有什麼我錯過的嗎？

Yes. Greg, obviously, we're not -- we're reiterating the targets that we set out, and I believe they're well within reach. As you recall, our fiscal '27 operating margin target was 14% to 16%, and we finished '24 at 12.6%. We fully expect the incremental margin improvement efforts that we had mentioned previously in Motive Power maintenance-free conversion, Specialty aftermarket higher margin, Energy Systems the power electronics OpEx leverage by not growing our operating expenses at the same rate as revenue, particularly after we load on things like our Fast Charge and Storage revenue that we've been investing in and lithium revenue that we're now just starting to benefit from, as well as green initiatives that Patrice is leading with our EOS work. So again, we're still bullish on our fiscal '27 targets in the aggregate, and that's where we think we'll be exiting '27 as a new normalcy going forward.

是的。格雷格，顯然，我們不是——我們正在重申我們設定的目標，我相信它們是可以實現的。您還記得，我們​​ 27 財年的營業利潤率目標是 14% 至 16%，而 24 財年的營業利潤率目標為 12.6%。我們完全期望透過不以與收入相同的速度增加我們的營運費用，特別是在我們加載之後，我們之前在動力電源免維護轉換、專業售後市場更高的利潤、能源系統、電力電子運營支出槓桿方面所提到的增量利潤改善努力我們一直在投資的快速充電和存儲收入、我們現在剛開始受益的鋰收入，以及 Patrice 在 EOS 工作中領導的綠色舉措等。因此，我們仍然看好我們的 27 財年總體目標，這就是我們認為我們將退出 27 財年的總體目標，作為未來的新常態。

Yes. And Greg, a big part of this is the performance in our TPPL factories. And as you know, the downturn in ES was very rapid, and that's -- that did cause us to retool and refocus. You see signs of improvement in our results this quarter. We still have more work to do. And ultimately, all our forward investments are going to be more flexibility in our factories so that we can adjust or adapt to these market shifts. But this one was very, very rapid, and it's been a challenge for us, but I'm pleased with the progress. And later this year, we're going to have the ability to make whatever the market needs.

是的。 Greg，其中很大一部分是我們 TPPL 工廠的表現。如你所知，ES 的衰退非常迅速，這確實導致我們重新調整和重新聚焦。您可以看到我們本季業績有所改善的跡象。我們還有更多工作要做。最終，我們所有的長期投資都將在我們的工廠中變得更加靈活，以便我們能夠調整或適應這些市場變化。但這次非常非常快，對我們來說是一個挑戰，但我對進展感到滿意。今年晚些時候，我們將有能力生產市場所需的任何產品。

And I'm not showing any further questions at this time. I'd like to turn the call back over to Dave for any closing remarks.

目前我不會提出任何進一步的問題。我想將電話轉回給戴夫，讓他發表結束語。

Thanks, Kevin. Well, I just want to thank everybody for joining us today. And if there is no additional questions, then everyone have a great week.

謝謝，凱文。嗯，我只想感謝大家今天加入我們。如果沒有其他問題，那麼祝大家有個愉快的一週。

We did have one person just queue up if you want to go and take that real quick.

如果你想快點去的話，我們確實有一個人在排隊。

Sure. I'm sorry about that, go ahead.

當然。對此我很抱歉，請繼續。

Our next question comes from Tyler DiMatteo with BTIG.

我們的下一個問題來自 BTIG 的 Tyler DiMatteo。

I just wanted to follow up on some of the comments surrounding the targeted raw material reductions and really just broadly supply chains. And maybe just kind of just address the state of play of the supply chain market, any puts and takes around maybe just what you're seeing generally broadly in different regions. Just any key colors there, I would appreciate it.

我只是想跟進一些圍繞目標原材料削減和實際上只是廣泛的供應鏈的評論。也許只是解決供應鏈市場的運作狀況，任何看跌期權和拿走期權可能正是您在不同地區普遍看到的情況。只要有任何關鍵顏色，我將不勝感激。

Yes. I would say, in general, for our supply chains, most everything is normalized. I don't know that from an EnerSys perspective, I'll hear some noise once in a while about certain ship sets or something. But in general, our supply chain is back to where it was. I think some of our customers, though, especially in the forklift material handling sector are still struggling. And boy, some of the lead times that they're still experiencing are crazy. I've heard numbers like 18 months on certain sizes. So there is still pockets of supply chain constraints and pressures. So that's more on the demand side for us. And that impacts how we -- when they order products and how long they sit back for us. But those are my biggest -- that's what's on my radar screen. Andy, is there anything from a commodity or a supply chain that's in your radar screen?

是的。我想說，總的來說，對於我們的供應鏈來說，大多數事情都已經正常化。我不知道從 EnerSys 的角度來看，我偶爾會聽到一些關於某些船舶裝置或其他東西的噪音。但總的來說，我們的供應鏈又回到了原來的狀態。不過，我認為我們的一些客戶，尤其是在堆高機物料搬運領域的客戶仍在苦苦掙扎。天哪，他們仍然經歷的一些交貨時間太瘋狂了。我聽說過某些尺寸的 18 個月之類的數字。因此，供應鏈仍存在一些限制和壓力。所以這對我們來說更多的是需求方面的。這會影響我們的方式——他們何時訂購產品以及他們為我們服務的時間。但這些是我最大的——那就是我的雷達螢幕上的內容。安迪，您的雷達螢幕上有來自商品或供應鏈的任何資訊嗎？

Yes. I would say there's a few other notes. Freight has been a great spot, particularly air and ocean freight. We've seen some improvements there. Commodity costs overall, some are down. Some are up, but in the aggregate, they're down. We've got a little bit of a spike in lead. Now it's crossed over $1, but that's certainly manageable within our internal processes to be able to control. As we mentioned, utilities, if you call it last year, we had utility cost spiking, particularly in Europe, and we implemented a utility adder. This year, we don't have that. I think that's one of the items that we called out. Last year, we had a $5 million utility adder as an example.

是的。我想說還有一些其他註解。貨運一直是個很好的選擇，尤其是空運和海運。我們已經看到了一些改進。大宗商品成本整體下降。有些是上升的，但總的來說，它們是下降的。我們的領先優勢略有增加。現在它已經超過了 1 美元，但這在我們的內部流程中肯定是可以控制的。正如我們所提到的，公用事業，如果你去年稱之為公用事業成本飆升，特別是在歐洲，我們實施了公用事業加法器。今年，我們沒有了。我認為這是我們呼籲的項目之一。去年，我們以價值 500 萬美元的公用事業加法器為例。

This year, we don't have that, but we also don't have the utility costs. So that will show up as a negative price mix, but an improvement in cost. So more than anything, we show these charts both internally at every one of our LoB meetings as well as presenting to our Board of Directors. Previous quarters, we had these huge spikes in cost and then the catch-up with our price mix. Those things are all leveling out. So cost tends to be now pretty flattish. In fact, in some cases, a slight improvement. And the price mix other than these nuances of impact on things like lithium and utility adder remover, it's just the mix improvements that we're seeing, particularly the strong maintenance-free conversions in Motive Power. Does that help?

今年，我們沒有了，但我們也沒有了公用事業成本。因此，這將表現為負價格組合，但成本有所改善。因此，最重要的是，我們在每次 LoB 會議內部以及向董事會展示這些圖表。前幾個季度，我們的成本大幅上漲，然後又追上了我們的價格組合。這些事情都在趨於平穩。因此，成本現在趨於平穩。事實上，在某些情況下，略有改善。除了對鋰和效用加法器去除劑等產品的影響的細微差別之外，價格組合只是我們看到的組合改進，特別是動力方面強大的免維護轉換。這樣有幫助嗎？

Yes, very helpful. Thanks for that on the supply and demand side as well, guys.

是的，非常有幫助。夥計們，也感謝供應和需求的努力。

And I'm not showing any further questions at this time.

目前我不會提出任何進一步的問題。

All right. Kevin, thank you very much. And everyone, thanks for joining the call, and we'll see you in 90 days.

好的。凱文，非常感謝你。感謝大家加入通話，我們 90 天後見。

Have a safe Memorial Day weekend.

祝陣亡將士紀念日週末安全。

Ladies and gentlemen, that concludes today's presentation. You may now disconnect, and have a wonderful day.

女士們、先生們，今天的演講到此結束。您現在可以斷開連接，並度過美好的一天。