ESAB Corp (ESAB) 2024 Q2 法說會逐字稿

Thank you for standing by.

謝謝你的支持。

My name is Amy and I will be your conference operator today.

我叫艾米，今天我將擔任你們的會議操作員。

At this time, I would like to welcome everyone to the ESAB Second Quarter 2024 Earnings Conference Call.

此時此刻，我歡迎大家參加 ESAB 2024 年第二季財報電話會議。

Please note that all lines have been placed on mute to prevent any background noise.

請注意，所有線路均已靜音，以防止任何背景雜訊。

After the speakers' remarks, there will be a question-and-answer session.

演講者發言後，將進行問答環節。

(Operator Instructions)

（操作員說明）

It is now my pleasure to turn the call over to Mark Barbalato, Vice President of Investor Relations.

現在我很高興將電話轉給投資者關係副總裁 Mark Ba​​rbalato。

Please go ahead.

請繼續。

Thanks, operator.

謝謝，接線生。

Welcome to ESAB's second quarter 2024 earnings call.

歡迎參加 ESAB 2024 年第二季財報電話會議。

This morning, I'm joined by our President and CEO Shyam Kambeyanda, and CFO, Kevin Johnson.

今天早上，我們的總裁兼執行長 Shyam Kambeyanda 和財務長 Kevin Johnson 也加入了我的行列。

Please keep in mind that some of the statements we are making are forward looking and are subject to risks, including those set forth in our SEC filings and today's earnings release.

請記住，我們所做的一些聲明是前瞻性的，並且存在風險，包括我們向 SEC 提交的文件和今天的收益報告中列出的風險。

Actual results may differ, and we do not assume any obligation or intent to update these forward-looking statements, except as required by law.

實際結果可能有所不同，我們不承擔更新這些前瞻性聲明的任何義務或意圖，除非法律要求。

With respect to any non-GAAP financial measures mentioned during the call today, the accompanying reconciliation information related to those measures can be found in our earnings press release and today's slide presentation.

對於今天電話會議中提到的任何非公認會計原則財務措施，與這些措施相關的隨附調節資訊可以在我們的收益新聞稿和今天的幻燈片演示中找到。

With that, I'd like to turn the call over to our President and CEO, Shyam Kambeyanda.

說到這裡，我想將電話轉給我們的總裁兼執行長 Shyam Kambeyanda。

Thank you, Mark, and good morning, everyone.

謝謝你，馬克，大家早安。

Thank you all for joining us today.

感謝大家今天加入我們。

We delivered another strong quarter highlighted by positive organic revenue growth while improving our product mix towards equipment.

我們又一個強勁的季度表現是有機收入的積極成長，同時改善了我們的設備產品組合。

We utilized our EBX toolkit to achieve record margins and cash flow.

我們利用 EBX 工具包實現了創紀錄的利潤和現金流。

As a result, lowering our net leverage ratio to 1.7 and we closed on another acquisition.

因此，我們將淨槓桿率降低至 1.7，並完成了另一項收購。

It is important to highlight that we executed well and delivered strong results benefiting from our high-growth markets exposure that was moderated by softness in developed markets.

需要強調的是，我們執行良好並取得了強勁的業績，這得益於我們在高成長市場的敞口，而發達市場的疲軟則削弱了我們的市場敞口。

While I'm encouraged by our progress, we're far from satisfied.

雖然我對我們的進步感到鼓舞，但我們還遠遠不夠。

I'm confident that we'll continue to raise the bar find new avenues for growth, expand our margins and improve cash flow.

我相信，我們將繼續提高標準，尋找新的成長途徑，擴大利潤並改善現金流。

Before diving into the numbers, just like last time let me share the passion our team has towards our mission of shaping the world we imagine.

在深入研究數字之前，就像上次一樣，讓我分享一下我們的團隊對塑造我們想像的世界這項使命的熱情。

Maybe some of you read The Wall Street Journal article last quarter where Gen-Z has been dubbed the Toolbelt Generation.

也許你們中的一些人讀過《華爾街日報》上季度的文章，其中 Z 世代被稱為「工具帶世代」。

Here on a more personal note, i have led ESAB for the last eight years and I'm very proud of our team's time and resource contributions every day to train the next generation of welders.

在此，就我個人而言，我在過去八年裡一直領導 ESAB，我對我們團隊每天為培訓下一代焊工貢獻的時間和資源感到非常自豪。

We see this as a way to engage and connect with the next generation.

我們認為這是與下一代互動和聯繫的一種方式。

This year, we teamed up with the non-profit organization Welder Underground, an innovative apprenticeship program that trains the next generation of welders through large-scale public projects.

今年，我們與非營利組織 Welder Underground 合作，這是一項創新學徒計劃，透過大型公共計畫培訓下一代焊工。

Students here apply to the program through established non-profit focused on youth empowerment.

這裡的學生透過成立的專注於青年賦權的非營利組織申請該計劃。

They receive a stipend during their apprenticeship and are prepared for American Welding Society's certification upon completion.

他們在學徒期間獲得津貼，並為完成後獲得美國焊接協會的認證做好準備。

I've had a chance to meet the current apprentices who are upgrading their skills.

我有機會見到目前正在提陞技能的學徒。

They're part of creating Welder Underground's first public project, a metal structure celebrating hip hop, which is currently being featured around New York City.

他們是 Welder Underground 首個公共計畫的一部分，該計畫是慶祝嘻哈音樂的金屬結構，目前正在紐約市各地展出。

It has been truly heartwarming to see the impact of this initiative and we're thrilled to be part of this collaboration as it provides unique and impactful pathways to employment in the trades.

看到這項措施的影響確實令人心曠神怡，我們很高興能成為這項合作的一部分，因為它提供了獨特且有影響力的行業就業途徑。

I will continue to share more stories that reflect our passion for the industry and reinforce our mission of shaping the world we imagine in upcoming calls.

我將在接下來的電話會議中繼續分享更多反映我們對產業熱情的故事，並強化我們塑造我們想像的世界的使命。

Moving to Slide 3 to discuss the specifics of the quarter and our performance.

轉到投影片 3，討論本季的具體情況和我們的業績。

As I mentioned earlier, our teams continue to execute well.

正如我之前提到的，我們的團隊繼續表現得很好。

Over the past several years, we have been focused on designing and developing innovative products that provide our customers with comprehensive workflow solutions.

在過去的幾年裡，我們一直專注於設計和開發創新產品，為客戶提供全面的工作流程解決方案。

We're leveraging our EBX processes, AI and data analytic tools to improve service levels and on-time delivery, increasing customer retention and driving greater efficiency across our enterprise.

我們正在利用 EBX 流程、人工智慧和數據分析工具來提高服務水準和準時交付，提高客戶保留率並提高整個企業的效率。

While we cannot control the economic backdrop, we're focused as a business, we know what we're good at, and we intend to improve on all aspects of our business that are in our control.

雖然我們無法控制經濟背景，但作為一家企業，我們專注，我們知道自己擅長什麼，並且打算改進我們控制範圍內的業務的各個方面。

Talking about the second quarter in particular, we achieved positive organic growth of 1% reflecting continued strength in our high-growth markets, offset by moderating conditions in developed markets.

尤其是第二季度，我們實現了 1% 的正有機成長，反映出我們高成長市場的持續強勁，但被已開發市場的放緩狀況所抵消。

Notably, we experienced high single-digit growth in equipment and automation and double-digit growth year-to-date in cobots.

值得注意的是，今年迄今為止，我們在設備和自動化方面經歷了個位數的高成長，在協作機器人方面經歷了兩位數的成長。

Adjusted EBITDA increased by 600 basis points with adjusted EBITDA margins expanding by 150 basis points to a record 20.1%.

調整後 EBITDA 成長 600 個基點，調整後 EBITDA 利潤率成長 150 個基點，達到創紀錄的 20.1%。

This strong margin performance was driven by our team executing our strategy to drive a favorable mix with our best-in-class updated equipment portfolio and our focus on less cyclical automation and mission-critical gas control products.

這種強勁的利潤率表現是由我們的團隊執行我們的策略所推動的，該策略旨在與我們一流的更新設備組合以及我們對週期性較小的自動化和任務關鍵型氣體控制產品的關注推動有利的組合。

EBX, lean and AI initiatives continue to improve cash flow generation enabling our compounder journey and allowing us to strengthen our balance sheet.

EBX、精益和人工智慧措施繼續改善現金流的產生，使我們的複合之旅得以實現，並讓我們能夠加強我們的資產負債表。

We're excited about the recent acquisition of Linde's welding business in Bangladesh, which I will discuss in more detail shortly.

我們對最近收購林德在孟加拉的焊接業務感到興奮，我很快就會對此進行更詳細的討論。

This acquisition builds on our recent acquisitions of Sager and SUMIG.

此次收購建立在我們最近收購 Sager 和 SUMIG 的基礎上。

Let me take this moment to thank our associates for their hard work, dedication and commitment towards delivering our long-term goals.

讓我藉此機會感謝我們的員工為實現我們的長期目標所做的辛勤工作、奉獻精神和承諾。

Moving to Slide 4, in spite of the challenging end markets, as we look back at the first half of 2024, I am proud of the progress we have made.

轉向幻燈片 4，儘管終端市場充滿挑戰，但當我們回顧 2024 年上半年時，我對我們的進展感到自豪。

It is a testament to our focus and our ability to execute and I submit our results this quarter reflect that.

這證明了我們的專注和執行能力，我本季提交的業績反映了這一點。

We've reduced the cyclicality of our business through product line simplification, new product introductions, and focused our teams on less cyclical end markets.

我們透過產品線簡化、新產品推出降低了業務的週期性，並將我們的團隊專注於週期性較小的終端市場。

I've had a chance to speak to our channel partners and there continues to be significant positive feedback on our new equipment products.

我有機會與我們的通路合作夥伴交談，我們的新設備產品仍然得到了顯著的正面回饋。

Over the past eight years, we've consistently demonstrated bifocal leadership achieving both short-term and long-term goals.

在過去的八年裡，我們始終如一地展現了雙焦點領導力，實現了短期和長期目標。

We have protected our R&D investment and capital associated with growth initiatives.

我們保護了與成長計畫相關的研發投資和資本。

In upcoming slides, you will see how our leadership in digital analytics solutions and monitoring is helping us grow faster.

在接下來的幻燈片中，您將看到我們在數位分析解決方案和監控方面的領先地位如何幫助我們更快成長。

Our acquisition pipeline is strong, and with our demonstrated ability to generate strong cash flow, we believe we can continue to acquire less cyclical and margin-accretive businesses.

我們的收購管道很強大，而且憑藉我們所展示的產生強勁現金流的能力，我們相信我們可以繼續收購週期性較小和利潤增值的業務。

Moving to Slide 5 to highlight our digital strategy.

轉到投影片 5 來強調我們的數位策略。

We are continuously strengthening our InduSuite digital solutions portfolio.

我們正在不斷加強我們的 InduSuite 數位解決方案組合。

This quarter, we're launching our new FloCloud product, which allows our customers to monitor gas consumption, set and track flow limits, access upgraded analytics.

本季度，我們將推出新的 FloCloud 產品，該產品允許我們的客戶監控氣體消耗、設定和追蹤流量限制、存取升級的分析。

FloCloud allows our customers to customize their digital gas monitoring needs while allowing us to provide a full workflow solution.

FloCloud 讓我們的客戶可以客製化他們的數位氣體監測需求，同時讓我們提供完整的工作流程解決方案。

Let me give you a bit more color.

讓我給你多一點顏色。

Our gas control business recently partnered with a gas manufacturer to help them secure a new OEM business.

我們的氣體控制業務最近與一家氣體製造商合作，幫助他們獲得新的 OEM 業務。

We partnered with the gas company to provide a fully integrated gas management and monitoring system to measure flow, pressure, consumption and report on outages.

我們與天然氣公司合作，提供完全整合的天然氣管理和監控系統，用於測量流量、壓力、消耗並報告中斷情況。

This use case is expected to lead further partnerships with key gas manufacturers.

該用例預計將促進與主要天然氣製造商的進一步合作。

Digital solutions within Fabtech has also been gaining strength, which licenses up 50% year-over-year, creating over $25 million in pull-through sales for equipment and filler metal.

Fabtech 內部的數位解決方案也不斷增強，其授權量年增 50%，為設備和填充金屬創造了超過 2500 萬美元的拉動銷售額。

InduSuite, our digital solutions, allows ESAB to differentiate itself.

我們的數位解決方案 InduSuite 讓 ESAB 能夠脫穎而出。

Over the last eight years, we have built a formidable R&D capability around the globe, we have revamped our equipment portfolio, strengthened our gas control business and entered faster growing markets.

在過去的八年裡，我們在全球建立了強大的研發能力，改進了我們的設備組合，加強了我們的氣體控制業務並進入了成長更快的市場。

So, we're excited about our future.

所以，我們對我們的未來感到興奮。

And as I've said before, we're just getting started.

正如我之前所說，我們才剛開始。

Moving to Slide 6 to talk about the latest acquisition, our third one this year.

現在轉到第 6 張投影片來討論最新的收購，這是我們今年的第三次收購。

We are particularly excited about the acquisition of Linde's welding business in Bangladesh.

我們對林德在孟加拉國的焊接業務的收購感到特別興奮。

This acquisition fills the geographic gap in Asia and cements our position as the leading Fabtech company in this fast-growing region.

此次收購填補了亞洲的地理空白，並鞏固了我們作為這個快速成長地區領先的 Fabtech 公司的地位。

Bangladesh, with a population of approximately 170 million and a projected GDP growth in the high single-digits over the next decade, offers ESAB significant growth opportunities.

孟加拉擁有約 1.7 億人口，預計未來十年 GDP 成長率將達到高個位數，為 ESAB 提供了巨大的成長機會。

This addition builds on our leadership position in India and Southeast Asia.

這項舉措鞏固了我們在印度和東南亞的領導地位。

We expect to extract significant synergies by selling ESAB equipment into this attractive Bangladeshi market.

我們希望透過向這個有吸引力的孟加拉國市場銷售伊薩設備來獲得顯著的協同效應。

Let me remind you, this is a $20 million business with accretive EBITDA margins with significant opportunities for additional growth.

讓我提醒您，這是一家價值 2000 萬美元的企業，其 EBITDA 利潤率不斷增加，並具有巨大的額外成長機會。

Turning to Slide 7, let's discuss the performance in the quarter.

轉向投影片 7，讓我們討論本季的表現。

As previously mentioned, organic sales grew 100 basis points driven by strong performance in equipment and automation businesses, which saw high single-digits growth.

如前所述，在設備和自動化業務強勁表現的推動下，有機銷售額成長了 100 個基點，實現了高個位數成長。

Adjusted EBITDA expanded 150 basis points year-over-year to a record 20.1%, driven by our EBX initiatives across the enterprise and our AI initiatives are gaining traction for further efficiency.

在我們整個企業的 EBX 計畫的推動下，調整後的 EBITDA 比去年同期成長 150 個基點，達到創紀錄的 20.1%，而我們的人工智慧計畫正在獲得進一步提高效率的動力。

Moving to Slide 8, it was great to see our Americas sales team execute on our growth strategies for gas control equipment and automation in the quarter.

轉到幻燈片 8，很高興看到我們的美洲銷售團隊在本季執行氣體控制設備和自動化的成長策略。

In the Americas, organic sales grew 400 basis points, driven by strong price performance of 3% and an additional 1% from volume.

在美洲，有機銷售額成長了 400 個基點，主要得益於 3% 的強勁價格表現和 1% 的銷售成長。

I am pleased with our ability to gain share and improve our mix towards equipment.

我對我們獲得份額並改善設備組合的能力感到滿意。

We also benefited from having less exposure to highly cyclical end markets.

我們也受益於減少對高度週期性終端市場的曝險。

Our focus and price discipline drove 210 basis points of expansion in adjusted EBITDA margin, which reached a record 20.9%.

我們的專注和價格紀律推動調整後 EBITDA 利潤率擴大 210 個基點，達到創紀錄的 20.9%。

Moving to Slide 9, which highlights our performance of our EMEA and APAC regions.

現在轉到幻燈片 9，其中重點介紹了我們在歐洲、中東和非洲 (EMEA) 和亞太地區 (APAC) 地區的表現。

Our teams in Europe, Asia and the Middle East delivered a strong operating performance.

我們在歐洲、亞洲和中東的團隊表現優異。

Volume increased by 100 basis points while European filler metal demand softened.

成交量增加 100 個基點，而歐洲填充金屬需求疲軟。

This was offset by sales execution of our equipment and automation workflow solutions.

這被我們的設備和自動化工作流程解決方案的銷售執行所抵消。

Let me mention again, we continue to see strength in high-growth markets.

讓我再次提及，我們繼續看到高成長市場的實力。

Our team's discipline in net pricing and operating efficiency enabled us to expand adjusted EBITDA margins by 110 basis points year-over-year to 19.5%.

我們團隊在淨定價和營運效率方面的紀律使我們能夠將調整後 EBITDA 利潤率同比增長 110 個基點，達到 19.5%。

On that positive note, let me hand it to Kevin on Slide 10.

關於這一積極的方面，讓我將幻燈片 10 上的 Kevin 轉交給他。

Thanks, Shyam, and good morning, everyone.

謝謝，夏姆，大家早安。

We had another terrific quarter.

我們又度過了一個精彩的季度。

EBX continues to successfully drive improvements in cash flow, which was up 21% in the first half of 2024.

EBX 持續成功推動現金流改善，2024 年上半年現金流成長了 21%。

We are using this improved cash flow to support our 2028 strategy.

我們正在利用改善後的現金流來支持我們的 2028 年策略。

Firstly, we're investing to support our organic growth improving our equipment mix and making investments that are taking share.

首先，我們正在投資以支持我們的有機成長，改善我們的設備組合併進行投資以獲取份額。

Secondly, to fund bolt-on acquisitions that are fast growing, margin accretive and delivering strong cash flow like Linde Bangladesh.

其次，為像林德孟加拉國公司這樣快速成長、利潤增值並提供強勁現金流的補強收購提供資金。

And thirdly, we increased our dividend in the second quarter by 33% to $0.08 per share.

第三，我們第二季的股利增加了 33%，達到每股 0.08 美元。

ESAB's balance sheet is in the strongest position since we spun out of Colfax, with net leverage today of only 1.7 turns.

ESAB 的資產負債表處於自我們從 Colfax 分拆以來最強勁的位置，目前的淨槓桿率僅為 1.7 倍。

We are well positioned to drive even higher cash flow and continue to successfully execute our 2028 compounder strategy.

我們處於有利地位，可以推動更高的現金流，並繼續成功執行我們的 2028 年複合策略。

Moving now to Slide 11, we have updated our full year guidance to reflect changes on the top-line, as Shyam discussed.

現在轉到幻燈片 11，正如 Shyam 所討論的，我們更新了全年指導，以反映營收變化。

Sales guidance of flat organic core growth reflects moderating developed markets and continued strength in our high-growth markets.

有機核心成長持平的銷售指引反映了已開發市場的放緩和我們高成長市場的持續強勁。

We expect volume and price to be flat 1 point of additional FX headwind due to a stronger US dollar and 0.5 point of M&A growth from the Linde Bangladesh acquisition.

我們預計成交量和價格將持平，由於美元走強，額外的外匯阻力增加了 1 個百分點，收購林德孟加拉國公司帶來的併購成長將增加 0.5 個百分點。

Our team is focused on controlling the controllable.

我們的團隊專注於控制可控的事情。

Adjusted EBITDA margins at the midpoint of our guidance has increased by 50 basis points to 19.5%.

調整後 EBITDA 利潤率以我們指引的中點計算，增加了 50 個基點，達到 19.5%。

This improvement is due to new EBX initiatives, improved product mix and $5 million of additional benefits from restructuring projects.

這項改進歸功於新的 EBX 舉措、改進的產品組合以及重組項目帶來的 500 萬美元額外收益。

Adjusted EPS remains unchanged, benefiting from a lower interest expense and cash flow conversion remains on track.

調整後每股收益保持不變，受益於較低的利息支出和現金流轉換仍然正常。

With that, let me hand back to Shyam on Slide 12 to wrap up.

說到這裡，讓我把投影片 12 交給 Shyam 來結束。

Thank you, Kevin.

謝謝你，凱文。

To summarize, we continue to execute well in a challenging environment as reflected in our strong second quarter operating performance.

總而言之，我們在充滿挑戰的環境中繼續表現出色，第二季強勁的營運表現就反映了這一點。

We continue to drive EBX across the business to deliver better margins and cash flow, strengthening our balance sheet while adding AI to our toolkit.

我們繼續推動整個業務的 EBX，以提供更好的利潤和現金流，加強我們的資產負債表，同時將人工智慧添加到我們的工具包中。

Today ESAB is a less cyclical, higher-margin and stronger cash flow generating enterprise, allowing us to execute our compounder strategy.

如今，伊薩是一家週期性較小、利潤率更高、現金流更強的企業，使我們能夠執行我們的複合策略。

We are confidently moving towards our 2028 goals of $4 billion in revenue, 22%-plus of EBITDA margin and 100% free cash flow conversion.

我們充滿信心地朝著 2028 年營收 40 億美元、EBITDA 利潤率超過 22% 和自由現金流轉換 100% 的目標邁進。

We have a focused business and a focused team with a lot of runway ahead of us.

我們擁有專注的業務和專注的團隊，前面還有很長的路要走。

With that, operator, let's open the line for questions.

那麼，接線員，讓我們打開提問線路。

Thank you.

謝謝。

The floor is now open for questions.

現在可以提問。

(Operator Instructions) Our first question comes from the line of Mig Dobre with Baird.

（操作員說明）我們的第一個問題來自 Mig Dobre 和 Baird 的線路。

Your line is now open.

您的線路現已開通。

Thank you.

謝謝。

Good morning, everyone and congrats on a good quarter here.

大家早安，恭喜這裡度過了一個美好的季度。

I guess my first question, Shyam, I'd love to hear more of your thoughts in terms of what kind of drove the adjustment in your growth guidance that you had to provide.

我想我的第一個問題是，Shyam，我很想聽聽您更多的想法，了解您必須提供的成長指導調整的驅動因素是什麼。

Obviously, we know that the environment has gotten a little bit tougher, but from your perspective, are there some geographic callouts or maybe some end markets that you'd be able to highlight for us that are progressing maybe a little bit different than you thought three months ago?

顯然，我們知道環境變得更加艱難，但從您的角度來看，您是否可以向我們強調一些地理標註或一些終端市場，這些市場的進展可能與您想像的有些不同三個月前？

And as you look forward for the remainder of the year, what are some of the puts and takes to your thinking?

當您展望今年剩餘時間時，您的想法是什麼？

Where are you seeing maybe potential for downside risk or at the same time maybe some offsets to that?

您認為哪裡可能有下行風險，或同時可能有一些抵銷風險？

Yeah.

是的。

Good morning, Mig.

早安，米格。

Thanks for the question.

謝謝你的提問。

So, I agree with you, a really strong quarter from ESAB.

所以，我同意你的觀點，伊薩的季度業績非常強勁。

We felt that posting volume positive growth both in the Americas and the rest of the world was an extraordinary performance for us gives us great confidence about the team's capability to execute.

我們認為，在美洲和世界其他地區實現銷售正成長對我們來說是一項非凡的業績，這讓我們對團隊的執行能力充滿信心。

You're right, we sort of did a couple of things this quarter.

你是對的，我們本季做了幾件事。

One, we maintained our EPS guidance against the backdrop.

第一，在此背景下我們維持每股盈餘指引。

We obviously improved our EBITDA percentage for the full year.

我們全年的 EBITDA 百分比明顯提高。

And, then on the top-line, what we found is, our developed markets moderated and slowed a little bit from the start that we had in Q1.

而且，從最重要的角度來看，我們發現，我們的已開發市場從第一季開始就有所放緩和放緩。

And that's really what drove us to sort of think about the rest of the year and sort of guide to a point that we felt confident about at this point in time.

這確實促使我們思考今年剩下的時間，並為我們此時感到有信心的一點提供指導。

Now, it's also important to state that we have got July behind us and it started off very similar to where we ended the second quarter.

現在，同樣重要的是要說明我們已經度過了 7 月份，而且它的開始與第二季結束時非常相似。

So, it gives us confidence about the forecast and the fact that, yes, we did see some slowdown in the stuff that you've talked about yellow goods to some extent, ag and, in particular, auto in Europe a little bit, but then we've also seen energy stay up, we've seen defense stay up.

因此，這讓我們對預測充滿信心，而且事實是，是的，我們確實看到您在某種程度上談論的黃色商品，農業，特別是歐洲的汽車業有所放緩，但是然後我們還看到能量保持不變，我們看到防守保持不變。

So, all in all, it's a mixed bag that sort of points us to this flattish number that we're talking about.

所以，總而言之，這是一個混合包，讓我們看到了我們正在談論的這個平坦的數字。

Sure.

當然。

Thank you for the color.

謝謝你的顏色。

And then, I guess, my follow-up, your balance sheet is increasingly good shape here and you've done three deals year-to-date.

然後，我想，我的後續行動是，你們的資產負債表狀況越來越好，而且你們今年迄今為止已經完成了三筆交易。

I'm curious as to how the pipeline is evolving here and whether or not we should be starting to think about maybe larger deals given that your balance sheet and cash flows seem to be able to support it.

我很好奇這裡的管道是如何演變的，以及考慮到您的資產負債表和現金流似乎能夠支持它，我們是否應該開始考慮更大的交易。

Thank you.

謝謝。

Yeah, Mig, I think our view on that topic is sort of solid and disciplined.

是的，米格，我認為我們對這個主題的看法是紮實且有紀律的。

We've talked about creating a less-cyclical, higher-margin business and so that's probably the first set of lenses that we look at.

我們已經討論過創建週期性較小、利潤率較高的業務，因此這可能是我們考慮的第一組鏡頭。

And the second one is, we'd like the gross margins to be above 40% with great characteristics of cash flow.

第二個是，我們希望毛利率在40%以上，而且現金流的特性很好。

So, we're not going to be coming off of those two sets of lenses that we want to look at acquisitions for.

因此，我們不會放棄我們想要考慮收購的那兩組鏡頭。

That being said, the acquisition funnel looks good.

話雖這麼說，收購通路看起來不錯。

Obviously, closing on some of these deals takes two but we do have some prospects out there that have a chance of getting done in the back half of this year.

顯然，完成其中一些交易需要兩次，但我們確實有一些前景有機會在今年下半年完成。

But nothing that sort of gets us past that number that we've always put out there where we've got a two in front of our leverage ratio.

但沒有什麼能讓我們超過我們總是在槓桿率前面加上 2 的那個數字。

And we think we've got plenty of things out there along with our cash flow to do both.

我們認為我們有足夠的東西和現金流來做到這兩點。

Great.

偉大的。

Thank you.

謝謝。

Your next question comes from Nathan Jones with Stifel.

您的下一個問題來自 Stifel 的 Nathan Jones。

Your line is now open.

您的線路現已開通。

Good morning, everyone.

大家早安。

Hi, Nathan.

嗨，內森。

Just a couple follow ups on how the second quarter progressed, and where you saw the weakness coming from, and I'm kind of interested in it a little bit more from a product perspective as well.

只是對第二季度的進展以及您看到的弱點來自哪裡進行了一些跟進，從產品的角度來看，我也對它更感興趣。

Did you see consumables start to weaken first?

您是否看到消耗品首先開始疲軟？

It sounds like consumables were weaker than the equipment side of it was.

聽起來消耗品比裝備方面弱。

But just how you saw that progress?

但您是如何看待這項進展的呢？

And then, you talked about stabilization into July.

然後，您談到了七月的穩定。

Do you expect the rest of the year to kind of stay stable with where it is now, like we've taken a step down and we maintain stability or do you think there's risk that that we continue to see some downtrend here?

您是否預計今年剩餘時間將保持穩定，就像我們已經採取了一步並保持穩定一樣，或者您認為我們是否有繼續看到一些下降趨勢的風險？

Yeah.

是的。

I think, I mentioned it in the script as well, Nathan, I think we talked about filler metals, especially the auto side of it in Europe, slowing a bit, but then we did see a lot of strength when it came to our Flux code wire and Flux product lines associated with the wind side of things.

我想，我在劇本中也提到過，內森，我想我們討論了填充金屬，特別是歐洲的汽車方面，速度有點慢，但後來我們確實看到了我們的通量的很大優勢碼線和Flux產品線與風方相關。

So, there was a piece that moderated and there were piece that looked good.

所以，有一篇文章經過了審核，也有一些文章看起來不錯。

So, I think the interesting part about the market today is that it's not a downturn across the board.

因此，我認為當今市場的有趣之處在於，它並不是全面下滑。

There is a bit of downturn, but there's also positives in the marketplace that are offsetting it.

雖然有一些低迷，但市場上也有積極的因素抵消了這種低迷。

So that's probably the first thing that I've noticed.

這可能是我注意到的第一件事。

And I've been an industrialist now close to 30 years.

我成為實業家已經近 30 年了。

So, it surely feels that it's not, if I were to use the USC term student body left on everything, I think the issue for us here is that, we see a balanced piece on it.

所以，如果我在所有事情上都使用南加州大學的學期學生團體，我認為我們這裡的問題是，我們看到了一個平衡的部分。

And then, we saw our strategy around standard equipment, and our equipment business pay dividends, right.

然後，我們看到了我們圍繞標準設備的策略，我們的設備業務帶來了紅利，對吧。

We've always talked about the fact that six years ago, we were playing with one hand behind our back with just filler metal portfolio and today we've got a full portfolio.

我們一直在談論這樣一個事實，六年前，我們只是在背後用一隻手玩填充金屬產品組合，而今天我們擁有了完整的產品組合。

We are able to sell-through our equipment to existing customers, gain share on that particular front.

我們能夠向現有客戶銷售我們的設備，並在該特定領域獲得份額。

The exciting product line in equipment is driving interest out there, not just in the developed markets, but in the developing markets.

令人興奮的設備產品線不僅在已開發市場，而且在發展中市場都引起了人們的興趣。

And that's been a great story for us.

這對我們來說是一個很棒的故事。

And we think that continues.

我們認為這種情況仍在繼續。

As I had mentioned to you before, if we have the same share in equipment as we do in filler metal, this is a very different business and a very different sales point for ESAB.

正如我之前向您提到的，如果我們在設備方面的份額與填充金屬方面的份額相同，那麼對於伊薩來說，這是一項非常不同的業務和一個非常不同的銷售點。

We just add a little bit behind that, we've done a lot of work with our teams around sales transformation.

我們只是補充一點，我們已經與我們的團隊圍繞銷售轉型做了很多工作。

We did a big exercise at the end of last year to kind understand the capabilities of our sales teams to change incentive plans to train them around how to be able to get out there and sell our new equipment portfolio and that's showing dividends.

去年年底，我們進行了一次大型演習，以了解我們的銷售團隊改變激勵計劃的能力，培訓他們如何能夠走出去並銷售我們的新設備組合，這正在顯示紅利。

I guess, I'll ask a follow-up on the acquisition.

我想，我會問收購的後續情況。

With a 170 million people in high single-digit GDP growth, there should be a lot of opportunity in Bangladesh for ESAB.

孟加拉有 1.7 億人口，國內生產毛額 (GDP) 保持高個位數成長，因此 ESAB 在孟加拉應該有很多機會。

Can you talk about what you think your market share is there versus what it is in the rest of the world?

您能談談您認為您的市場份額與世界其他地區的市場份額嗎？

And what the opportunity is to not just grow with the market there, but to really drive share gain through ESAB, to build that business into something that's more material for ESAB?

不僅能與那裡的市場一起成長，還能透過 ESAB 真正推動份額成長，將該業務打造成對 ESAB 更重要的業務，有什麼機會呢？

Yeah.

是的。

Well first, I think it puts us in the lead spot and it puts us in the lead spot very similar to how we're positioned in India where we haven't talked about specific market share information but we are very confident that the consumables business is number one by far.

首先，我認為這使我們處於領先地位，這與我們在印度的定位非常相似，我們沒有談論具體的市場份額信息，但我們對消耗品業務非常有信心到目前為止排名第一。

But then the aspect for us here is that a lot of equipment is sold in Bangladesh.

但對我們來說，有很多設備是在孟加拉出售的。

And today our view is that ESAB equipment has a great way of entering that dedicated channel and being able to sell both consumables and equipment.

今天我們的觀點是，伊薩設備有很好的方式進入專用管道並且能夠銷售消耗品和設備。

And so, if you look at the opportunity for us as I mentioned, even in my call, the growth opportunities are significant.

因此，如果您像我提到的那樣看待我們的機會，即使在我的電話中，成長機會也是巨大的。

The synergy opportunities of selling through gas control equipment along with the consumables for ESAB and upgrading to the repair and maintenance and high alloy consumables is significant.

透過氣體控制設備和伊薩消耗品銷售以及維修和保養和高合金消耗品升級的協同機會非常重要。

And so, we're really excited about that opportunity.

因此，我們對這個機會感到非常興奮。

And some of you may have known this, but we were supplying, what we call some key ingredients to the filler metal business in Linde Bangladesh to begin with.

你們中的一些人可能已經知道這一點，但我們首先向孟加拉國林德的填充金屬業務供應我們所說的一些關鍵成分。

So, we're well aware of that market very familiar and we obviously have a great team that is very close to Bangladesh out of Calcutta in India that speaks the language and is already mobilized, and they're off to a good start in July.

因此，我們非常了解這個非常熟悉的市場，而且我們顯然擁有一支非常靠近印度加爾各答的孟加拉國的優秀團隊，他們會說孟加拉國的語言並且已經動員起來，他們在 7 月份有了一個良好的開端。

So, really excited about that business.

所以，我對這項業務感到非常興奮。

And then if I could just get one more in on pricing, flat over (Technical Difficulty) in Americas, down 3% in the rest of the world.

然後，如果我能再了解定價，美洲的（技術難度）持平，世界其他地區則下降 3%。

Can you talk about the dynamics there in terms of net price versus inflation, and what you're seeing in terms of margin contribution, are you still margin positive, on that even in the EMEA, APAC segment with price down 3%?

您能否談談淨價與通貨膨脹的動態，以及您在利潤貢獻方面看到的情況，即使在歐洲、中東和非洲、亞太地區價格下降3% 的情況下，您的利潤率仍然為正嗎？

That's right.

這是正確的。

The short answer is that, that net price metrics for ESAB is a significant and important metric.

簡而言之，ESAB 的淨價格指標是一個重要且重要的指標。

If those of you that are familiar with our value drivers, that is a key eight value drivers for ESAB, and so we measure that on a monthly basis.

如果你們熟悉我們的價值驅動因素，那就是 ESAB 的八個關鍵價值驅動因素，因此我們每月對其進行衡量。

Net price is positive in both regions.

這兩個地區的淨價均為正值。

We have seen steel prices move differently in the different geographies, and hence, you see the pricing position being slightly different in the Americas versus the rest of the world.

我們看到不同地區的鋼材價格走勢不同，因此，您會發現美洲的定價位置與世界其他地區略有不同。

But yes, net price positive on both sides contributing to the margin expansion, but also other aspects.

但是，是的，雙方的淨價均為正值，不僅促進了利潤率的擴大，而且還促進了其他方面的發展。

We continue to do our lean activities.

我們繼續進行精益活動。

We continue to shift mix.

我們繼續改變組合。

So, I would submit that all three contributed the margin expansion in both geographies.

因此，我認為這三個因素都為兩個地區的利潤率擴張做出了貢獻。

Thank you.

謝謝。

The next question comes from Tami Zakaria with JPMorgan.

下一個問題來自摩根大通的 Tami Zakaria。

Your line is now open.

您的線路現已開通。

Hi, good morning.

嗨，早安。

Great to see the Linde acquisition and that slide on Bangladesh should be exciting.

很高興看到林德收購，孟加拉的下滑應該令人興奮。

So, a couple of questions.

那麼，有幾個問題。

The first one is, the flattish organic growth guide, can you help us frame how to think about the third quarter and the fourth quarter?

第一個是，平淡的有機成長指南，你能幫助我們框架如何思考第三季和第四季嗎？

And within that flattish guide price versus volume, where has expectation changed versus last quarter?

在指導價格與銷售持平的情況下，預期與上季相比有何變化？

Yeah.

是的。

So, Tami, as we said on today's call earlier, we're expecting flat volume and price for ESAB for the full year and also in the second half of the year.

因此，塔米，正如我們在今天早些時候的電話會議上所說，我們預計伊薩全年和下半年的銷售和價格持平。

In terms of the segments, in the Americas, we're expecting flat volumes and we're expecting positive price very similar to what we saw in Q2 and in line with Shyam's comments about things expected to stay very similar to Q2 as we progress through the rest of the year.

就美洲細分市場而言，我們預計銷量持平，並且我們預計積極的價格與我們在第二季度看到的情況非常相似，並且與Shyam 的評論一致，即隨著我們的進展，預計情況將與第二季保持非常相似今年剩下的時間。

In EMEA and APAC, we do have negative price, but as you can see with the margins moving forward nicely, we've got that in good control with our net price toolkit and we're expecting flat volumes in the EMEA and APAC as we step through the rest of the year.

在歐洲、中東和非洲和亞太地區，我們的價格確實為負，但正如您所看到的，隨著利潤率的良好增長，我們透過淨價工具包很好地控制了這一點，並且我們預計歐洲、中東和非洲和亞太地區的銷量持平，因為我們一步一步度過今年剩下的時間。

Key for us is really just staying disciplined, and as with Shyam, continuing to use our net price toolkit, continuing to drive the growth aspects of EBX to make sure that we're gaining market share as we step through the second half.

對我們來說，關鍵實際上是保持紀律，就像 Shyam 一樣，繼續使用我們的淨價工具包，繼續推動 EBX 的成長，以確保我們在下半年獲得市場份額。

And in terms of sequential's, as you normally would expect in the third quarter, we stepped down because of largely the European summer holidays.

就順序而言，正如您通常在第三季所預期的那樣，我們辭職主要是因為歐洲暑假。

And as we go into Q4, we will step up.

當我們進入第四季時，我們將採取行動。

Got it.

知道了。

That's very helpful color.

這是非常有用的顏色。

So, the other question I have is I think you announced the distribution agreement with INFRA in Mexico.

所以，我的另一個問題是，我認為您宣布了與墨西哥 INFRA 的分銷協議。

Just wanted to get your thoughts on what the group potentially see there?

只是想聽聽您對團隊可能在那裡看到什麼的看法？

Who are the leading players in the Mexican market?

誰是墨西哥市場的主要參與者？

So, any color there would be helpful.

所以，任何顏色都會有幫助。

Yeah, I think I'd mentioned before that our team has a strong position in Mexico.

是的，我想我之前提到過我們的團隊在墨西哥擁有強大的地位。

INFRA is actually one of the larger distributor of hard goods in the region and we were able to build a relationship with them to pull-through ESAB products, both filler metal and equipment.

INFRA 實際上是該地區較大的耐用品分銷商之一，我們能夠與他們建立關係，以銷售 ESAB 產品，包括填充金屬和設備。

The relationship is actually just getting started.

這種關係其實才剛開始。

The potential for us is significant.

我們的潛力是巨大的。

We've not given out any numbers out there but what we do have is a start of a relationship, an executive partnership in some ways to continue to drive in a positive direction in Mexico.

我們還沒有給出任何數字，但我們確實已經開始了一種關係，一種在某種程度上的執行夥伴關係，以繼續推動墨西哥朝著積極的方向發展。

We think Mexico benefits from reshoring.

我們認為墨西哥受益於回流。

We think the infrastructure buildout in Mexico also benefits ESAB and this relationship.

我們認為墨西哥的基礎建設也有利於 ESAB 和這種關係。

And so, we've got a lot of positive momentum, and it's been a good start, but it's early days, Tami.

因此，我們有很多積極的勢頭，這是一個良好的開始，但現在還處於早期階段，塔米。

So, maybe a better question sometime next year.

所以，也許明年某個時候會有一個更好的問題。

Got it.

知道了。

Thank you.

謝謝。

Your next question comes from the line of David Raso with Evercore.

您的下一個問題來自 Evercore 的 David Raso。

Your line is now open.

您的線路現已開通。

Hi, thank you.

你好，謝謝。

I was curious about the channel inventory, can you give us an update around the globe on where the inventory is currently and how you're expecting that to end the year heading into '25?

我對渠道庫存很好奇，您能否向我們介紹全球庫存的最新情況，以及您預計 25 年底的庫存情況如何？

Yeah.

是的。

Thanks, Dave.

謝謝，戴夫。

Always good to hear from you.

很高興收到你的來信。

We actually did our check.

我們實際上做了檢查。

In fact, we did a check as early as the end of the second quarter, just to make sure that we were prepared to sort of answer that question in particular.

事實上，我們早在第二季末就進行了檢查，只是為了確保我們準備好回答這個問題。

The short answer is that there is no buildup of inventory in channel, and we were particularly interested in that for Europe, specifically in Germany and the Nordics.

簡而言之，渠道中沒有庫存積累，我們對歐洲特別感興趣，特別是德國和北歐。

And so, the answer back was actually a good/better surprise that there was no inventory buildup that was preventing any growth prospects in those particular markets.

因此，得到的答案實際上是一個很好/更好的驚喜，因為沒有庫存累積阻礙了這些特定市場的任何成長前景。

And a similar answer for us in North America that there isn't a significant channel inventory buildup.

我們在北美也得到了類似的答案，即渠道庫存沒有顯著增加。

And so, the good news there is that if there's any uptick in the market, we should see an immediate pull-through on that particular front.

因此，好消息是，如果市場出現任何上漲，我們應該會看到該特定領域立即出現回檔。

But that being said, our teams are out there with our EBX-proven methodology and growth bridges to drive share gain, to drive share of wallet, and to drive through our new equipment product line with the channel partners.

但話雖這麼說，我們的團隊正在利用經過 EBX 驗證的方法和成長橋樑來推動份額成長，推動錢包份額，並與通路合作夥伴一起推動我們的新設備產品線。

All right.

好的。

Thank you.

謝謝。

And maybe I missed it, I apologize, but the EMEA, APAC declines.

也許我錯過了，我很抱歉，但歐洲、中東和非洲、亞太地區拒絕了。

I'm just curious the Europe drag within that, right?

我只是好奇歐洲在其中的拖累，對吧？

You mentioned the high-growth markets, assuming India, Middle East are still growing nicely.

您提到了高成長市場，假設印度、中東仍然成長良好。

Can you update us on what Europe is doing specifically?

您能否向我們介紹歐洲具體在做什麼？

Yeah.

是的。

We haven't given that specific number out but the way to kind of do the math is that we saw double-digit growth out of the markets in India and the Middle East.

我們還沒有給出具體數字，但計算的方法是我們看到印度和中東市場出現了兩位數的成長。

And then, you could say sort of single-digit declines out of Europe which is the largest part of our business with filler metal being the one that sort of performed on a relative basis down the most.

然後，你可以說歐洲出現了個位數的下降，歐洲是我們業務的最大部分，而填充金屬是相對下降幅度最大的金屬。

But I think the biggest piece for us in Europe really is around yellow goods and automotive that took that part of the business down, but strengthening in renewable energy and strength in defense.

但我認為，對我們歐洲來說，最大的一塊確實是圍繞黃色商品和汽車，這部分業務下降了，但再生能源和國防實力得到加強。

And sorry, just a clarification from an earlier comment about the second half of the year.

抱歉，這只是對先前有關今年下半年的評論的澄清。

I missed the aggregate.

我錯過了總體。

The organic sales decline for the second half of the year, kind of 1% to 1.5% that's baked in, can you split that between EMEA, APAC and Americas?

今年下半年的有機銷售額下降了 1% 到 1.5%，您能否分攤到歐洲、中東和非洲、亞太地區和美洲？

Yeah.

是的。

So, I mean, David, I think as I said we're expecting in the Americas the volumes to be flat and positive price similar to what we saw in the second quarter.

所以，我的意思是，大衛，我認為正如我所說，我們預計美洲的銷量將持平，價格呈正值，與我們在第二季度看到的情況類似。

In EMEA and APAC what we expect is negative price, similar to what you saw in the second quarter and then flattish volume as we step through the rest of the year.

在歐洲、中東和非洲和亞太地區，我們預計價格為負，類似於第二季的情況，然後隨著今年剩餘時間的推移，銷量將持平。

So, fairly similar on both of the businesses in terms of volume outlook within that sort of negative 1% to positive 1%, and price at sort of similar levels to what you saw in the second quarter.

因此，這兩項業務的銷售前景相當相似，在負 1% 到正 1% 之間，價格水準與第二季類似。

And your next question comes from Bryan Blair with Oppenheimer.

你的下一個問題來自布萊恩布萊爾和奧本海默。

Your line is now open.

您的線路現已開通。

Thank you.

謝謝。

Good morning, everyone.

大家早安。

Hi, Bryan.

嗨，布萊恩。

Very solid execution in the quarter.

本季的執行非常穩健。

Apologies if I missed some color here but wondering if you could offer a little more detail on the performance of your gas control business in the quarter and whether there are any notable callouts or differences in trend between industrial and specialty and medical.

如果我在這裡遺漏了一些顏色，我深表歉意，但想知道您是否可以提供有關本季度氣體控制業務業績的更多詳細信息，以及工業、專業和醫療之間的趨勢是否有任何顯著的標註或差異。

Yeah.

是的。

So, actually, solid performance out of our gas control business benefiting from the energy transition and also HVAC.

因此，實際上，我們的氣體控制業務的穩健表現得益於能源轉型和暖通空調。

And so, we saw some really good performance on the industrial side in the Americas.

因此，我們在美洲的工業方面看到了一些非常好的表現。

We saw really good performance on the specialty gas side which is benefiting from semiconductors and then also to the same extent in Europe with some the life sciences and medical exposure.

我們在特種氣體方面看到了非常好的表現，這得益於半導體，在歐洲也有同樣程度的生命科學和醫療領域的表現。

And then the second piece for us that I spent a little bit of time talking about is that we continue to improve our digital solutions proposition in that space trying to create really strong value propositions for our customers as a result of managing their gas flow in their facility.

然後，我花了一點時間談論的第二件事是，我們繼續改進該領域的數位解決方案主張，試圖透過管理客戶的氣體流量來為我們的客戶創造真正強大的價值主張。

And that also benefited our business and the pull-through.

這也有利於我們的業務和拉動。

So, all in all, strong position there for us in the gas control business and we see that business building on its strength for the second half of the year.

因此，總而言之，我們在氣體控制業務中處於強勢地位，我們看到該業務將在今年下半年繼續增強實力。

And somewhat of a follow-up to Nathan's question on Linde Bangladesh.

這是內森關於林德孟加拉國的問題的後續行動。

Just hoping you could elaborate a little more on synergy prospects specifically what we should think about as near-term versus longer-term, given channel dynamics?

只是希望您能詳細說明一下協同前景，特別是考慮到通路動態，我們應該考慮什麼是短期與長期？

And then perhaps I'll also offer a little detail on Sager and SUMIG integration and how those deals are performing out of the gate?

然後也許我還會提供有關 Sager 和 SUMIG 整合的一些細節以及這些交易的執行情況如何？

Yeah.

是的。

So, just to kind of calibrate, the SUMIG acquisition we announced, but it hasn't closed yet.

因此，為了進行校準，我們宣布了對 SUMIG 的收購，但尚未完成。

We expect it to close sometime in the latter part of fourth quarter and Sager is doing well.

我們預計它將在第四季度後半段關閉，而 Sager 表現良好。

We're off to actually a good start.

我們實際上有了一個好的開始。

In fact, we have a team out in South America this week visiting.

事實上，本週我們有一個團隊前往南美洲進行訪問。

I just had the 100 day review for that particular business.

我剛剛對該特定業務進行了 100 天審核。

We were looking at a lot of synergies associated with footprint and sales team consolidation.

我們正在研究與足跡和銷售團隊整合相關的許多協同效應。

We've actually executed on those, so we're off to a great start there.

我們實際上已經執行了這些，所以我們有了一個好的開始。

On the Linde side, it was really the piece that I talked about, right?

林德這邊，確實是我說的那塊，對吧？

It sort of fills out the geography that we are very interested in, that we wanted to be in a leadership position we are.

它有點填補了我們非常感興趣的地理區域，我們希望處於我們現在的領導地位。

And so, we're very thrilled about that business.

因此，我們對這項業務感到非常興奮。

The channel, just to give you some history, where ESAB has had a strong position in the past is when we picked up businesses that have had a historic record in the region.

該頻道只是為了向您介紹一些歷史，伊薩過去在該頻道中佔據了強勢地位，當時我們挑選了在該地區擁有歷史記錄的企業。

And so, in this particular case, Linde has been in Bangladesh for many decades and have established that business and the channel over those particular decades.

因此，在這個特殊案例中，林德已經在孟加拉經營了數十年，並在這特定的幾十年中建立了這個業務和通路。

And so, this is something that we have done in Bangladesh or in India before and we expect to rinse and repeat it in Bangladesh.

因此，這是我們之前在孟加拉或印度做過的事情，我們希望在孟加拉國進行沖洗和重複。

So, pulling through our broad set of gas control and equipment products in a market that was only selling consumables.

因此，我們在一個僅銷售消耗品的市場上推出了廣泛的氣體控制和設備產品。

And so, we see significant amount of synergies coming through on the growth side as well as operating synergies based on implementing EBX and lean initiatives at the manufacturing plant.

因此，我們看到在成長方面以及基於在製造工廠實施 EBX 和精益計劃的營運協同效應中產生了大量的協同效應。

And Bryan, on SUMIG, we're still going through the process of closing that deal and our current expectation is that we would close it at the end of the fourth quarter.

布萊恩，關於 SUMIG，我們仍在經歷完成該交易的過程，我們目前的預期是我們將在第四季末完成交易。

Understood.

明白了。

Thank you again.

再次感謝您。

Thank you.

謝謝。

And your next question comes from Chris Dankert with Loop Capital.

您的下一個問題來自 Loop Capital 的 Chris Dankert。

Your line is now open.

您的線路現已開通。

Hey, good morning.

嘿，早安。

Thanks for taking the questions.

感謝您提出問題。

Maybe we could just start on the cost side a little bit.

也許我們可以從成本方面著手。

Encouraging to see the higher implied operating margin for the year here I guess.

我想看到今年更高的隱含營業利潤率是令人鼓舞的。

Could you provide a little bit more detail?

能提供更多細節嗎？

I know you called out some restructuring actions in the deck.

我知道你在甲板上提出了一些重組行動。

Just any detail on what's going on there in the back half of the year?

能否詳細介紹一下今年下半年發生了什麼事？

Why don't I start it off and then I'll hand it to Kevin.

為什麼我不先開始，然後把它交給凱文呢？

I think one of the things we've always talked about is that we start every year with a set of actions within our business.

我認為我們一直在談論的一件事是，我們每年都會在業務範圍內採取一系列行動。

Some of them associated with EBX, the lean activities that we do at the facility.

其中一些與 EBX 有關，即我們在工廠進行的精益活動。

We've talked about our net pricing initiatives.

我們已經討論了我們的淨定價舉措。

And then, we've talked briefly about improving the efficiency of our businesses using AI and data analytics.

然後，我們簡要討論了使用人工智慧和數據分析來提高業務效率。

And so, the idea for us here is that we can be more efficient with a lot less SG&A as a result of some of these actions.

因此，我們的想法是，透過採取其中一些行動，我們可以提高效率，同時減少 SG&A。

And so, what you see reading out in our performance this quarter is exactly the execution on those aspects.

因此，您在本季度的業績中看到的正是這些方面的執行情況。

Kevin, did you want to add

凱文，你想添加嗎

Yeah.

是的。

So, Chris, there's sort of three buckets that where we see good positive momentum, and we're ahead of where we expected when we started the year.

所以，克里斯，我們在三個方面看到了良好的積極勢頭，並且我們超出了年初的預期。

The first area is in EBX.

第一個區域位於 EBX。

We've got a strong funnel and we've been able to execute on a number of projects, which has had the benefit of improving the margins.

我們擁有強大的管道，並且能夠執行許多項目，這有利於提高利潤率。

The commercial excellence program that Shyam talked about earlier is ahead of where we had expected and we are seeing that mix improve significantly, which is also having a benefit on our margins.

Shyam 之前談到的商業卓越計劃超出了我們的預期，我們看到組合顯著改善，這也對我們的利潤率產生了好處。

Then finally, on restructuring, we had baked in around $10 million of benefits this year from restructuring projects.

最後，在重組方面，我們今年從重組項目中獲得了約 1000 萬美元的收益。

We've increased that by a further $5 million.

我們又增加了 500 萬美元。

And that's accelerating a few projects, but one larger project in particular where we're looking at doing a factory consolidation.

這正在加速一些項目，但還有一個更大的項目，特別是我們正在考慮進行工廠整合。

We believe that we can drive an additional $5 million of benefit before we finish this year.

我們相信，在今年結束之前，我們可以額外帶來 500 萬美元的福利。

Got it.

知道了。

And that was actually the follow-up I had here.

這實際上是我在這裡進行的後續行動。

I was curious on just the factory consolidation.

我只是對工廠整合感到好奇。

Is it, like, as you framed it an acceleration of previous plans or we expanded to additional locations at this point?

就像您所說的那樣，這是對先前計劃的加速，還是我們此時擴展到了其他地點？

No.

不。

We have a long-term strategy in terms of our factory consolidations, and we accelerated one of those projects which we were really only planning to start at the end of this year.

我們在工廠整合方面製定了長期策略，並且加快了我們原本只計劃在今年年底啟動的專案之一。

We're now starting it now, which is driving that additional benefit.

我們現在就開始這樣做，這正在推動額外的好處。

Got it.

知道了。

Well, thanks so much for the color, guys, and best of luck in the back half year.

好吧，非常感謝你們的顏色，夥計們，祝後半年好運。

Thank you.

謝謝。

Thanks, Chris.

謝謝，克里斯。

And the next question comes from Mig Dobre with Baird again.

下一個問題再次由 Mig Dobre 和 Baird 提出。

Your line is now open.

您的線路現已開通。

Thank you for taking a follow-up here.

感謝您在此進行跟進。

Just a quick one for me.

對我來說只是一個快速的。

Looking at the equipment side of your portfolio, I'm wondering how progress is in North America, US, maybe specifically as far as rolling out new products, maybe the Renegade VOLT.

看看你們產品組合的設備方面，我想知道北美、美國的進展如何，也許特別是在推出新產品方面，也許是 Renegade VOLT。

I remember you talking about having some tailwinds as some of your channel partners are starting to stock this product.

我記得您談過一些順風車，因為您的一些通路合作夥伴開始庫存該產品。

So, a quick update there, and I'm wondering if this can still be a source of outgrowth in the back half of this year or maybe even going into '25.

所以，快速更新一下，我想知道這是否仍然可以成為今年下半年甚至進入 25 年的成長來源。

Yeah, we are actually very pleased with how our teams have been performing with the new set of light industrial products that we've launched into the North American market, Mig.

是的，我們實際上對我們的團隊在北美市場推出的一套新的輕工業產品 Mig 上的表現感到非常滿意。

We haven't shared exact numbers on it, but what I can tell you is that we monitor it on a monthly basis and we like what we see.

我們還沒有分享確切的數字，但我可以告訴你的是，我們每月對其進行監控，我們喜歡我們所看到的。

The other aspect for us is that with the new HIP launches that are happening, with WeldCloud, and our digital portfolio in InduSuite, we've actually seen conversions of some of the OEMs to yellow on their shop floor as a result of it.

對我們來說的另一個方面是，隨著新的 HIP 的發布、WeldCloud 以及我們 InduSuite 中的數位產品組合，我們實際上已經看到一些 OEM 的車間因此而轉變為黃色。

We've seen another customer come at us where we've introduced FloCloud, WeldCloud, and our new heavy industrial machinery along with the adaptive welding technology that we had for wind take hold.

我們看到另一位客戶向我們介紹了 FloCloud、WeldCloud 和我們的新型重型工業機械以及我們用於風力發電的自適應焊接技術。

So, all in all, a lot of excitement on the ESAB side, around process-focused automation, light industrial into the channel.

因此，總而言之，ESAB 方面非常興奮，圍繞著以過程為中心的自動化、輕工業進入渠道。

I think, we like our performance in the Americas.

我認為，我們喜歡我們在美洲的表現。

Really proud of how that team has come together, the intensity that they've brought to their sales plans.

為該團隊的團結方式以及他們為銷售計劃帶來的強度感到非常自豪。

What I can tell you the growth bridges in North America look really good, with clear targets, with clear customers, with clear plans for share of wallet, but a great amount of discipline that continues to drive margins forward.

我可以告訴你的是，北美的成長橋樑看起來非常好，有明確的目標，有明確的客戶，有明確的錢包份額計劃，但大量的紀律繼續推動利潤率成長。

All right.

好的。

Thank you again.

再次感謝您。

There are no further questions at this time.

目前沒有其他問題。

I'd like to turn the call back over to Mr. Barbalato.

我想把電話轉回巴爾巴拉托先生。

Please go ahead.

請繼續。

Thank you for joining us, and we look forward to speaking to you again next quarter.

感謝您加入我們，我們期待下季度再次與您交談。

This concludes today's conference call.

今天的電話會議到此結束。

You may now disconnect.

您現在可以斷開連線。