ESCO Technologies Inc. (ESE) 2026 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to ESCO Technologies' Q2 2026 earnings conference call.

各位好，感謝您稍候。歡迎參加 ESCO Technologies 2026 會計年度第二季（Q2）財報電話會議。

(Operator Instructions)

（接線員指示）

Please be advised that today's conference is being recorded.

請注意，今天的會議將進行錄音。

On the call today, we have Bryan Sayler, President and CEO, and Chris Tucker, Senior Vice President and CFO.

今天出席電話會議的有總裁兼執行長 Bryan Sayler，以及資深副總裁兼財務長 Chris Tucker。

I'd now like to turn the conference over to your first speaker today, Kate Lowrey, Vice President, Investor Relations. Kate, you now have the floor.

現在我想把會議交給今天的第一位講者——投資人關係副總裁 Kate Lowrey。Kate，請開始。

Thank you.

謝謝。

Statements made during this call, which are not strictly historical, are forward-looking statements within the meaning of the safe harbor provisions of the federal securities law. These statements are based on current expectations and assumptions, and actual results may differ materially from those projected in the forward-looking statements due to risks and uncertainties that exist in the company's operations and business environment, including, but not limited to, the risk factors referenced in the company's press release issued today, which will be included as an exhibit to the company's Form 8-K to be filed. We undertake no duty to update or revise any forward-looking statements except as may be required by applicable laws and regulations.

本次電話會議中所作之陳述，如非嚴格屬於歷史事實，均為符合聯邦證券法「安全港」條款意義之「前瞻性陳述」。此等陳述係基於目前的預期與假設；由於公司營運與商業環境中存在的風險與不確定性，實際結果可能與前瞻性陳述中所預測者有重大差異，包括但不限於今日發布之新聞稿所提及的風險因素；該新聞稿將作為附件納入公司即將提交之 Form 8-K。我們不承擔更新或修訂任何前瞻性陳述之義務，除非適用法律與法規另有要求。

In addition, during this call, the company may discuss some non-GAAP financial measures in describing the company's operating results. A reconciliation of these measures to the most comparable GAAP measures can be found in the press release issued today and found on the company's website at www.ESCOtechnologies.com under the link Investor Relations.

此外，在本次電話會議中，公司在說明營運成果時可能會討論若干非 GAAP 財務衡量指標。這些指標與最可比 GAAP 指標之調節表，可於今日發布的新聞稿中查閱，亦可至公司網站 www.ESCOtechnologies.com，點選 Investor Relations 連結取得。

Now, I turn the call over to Bryan.

現在我把電話交給 Bryan。

Thanks, Kate, and thanks, everyone, for joining today's call. We are pleased to meet with you this afternoon to discuss our second-quarter results.

謝謝你，Kate，也謝謝各位參加今天的電話會議。我們很高興今天下午與各位會面，討論我們第二季的業績。

I'd like to start the call by sincerely thanking all of our employees around the world. Your dedication, collaboration, and commitment continue to make the difference, and they were central to delivering another outstanding quarter.

我想先由衷感謝我們全球所有員工。各位的投入、協作與承諾持續帶來關鍵差異，也是我們再度交出亮眼季度表現的核心。

In Q2, we continue to see positive momentum across our business platforms as the pace of progress across our end markets continues to build. We have another strong quarter for orders across all three segments and that sustained demand drove a backlog to a record level, clear evidence of healthy end markets and the strength of our competitive position.

在第二季，隨著終端市場的進展速度持續加快，我們在各業務平台仍看到正向動能。我們三個事業部門的接單再度強勁，持續的需求推動在手訂單（backlog）創下歷史新高，清楚顯示終端市場健康，以及我們競爭地位的強韌。

From an operational perspective, Q2 delivered another strong performance, translating into exceptional results on both the top and bottom line. Revenue strength was broad-based across most of our served markets. We see this quarter as further proof of the power of our strategy and our ability to execute with consistency, delivering sustainable value over time.

從營運角度來看，第二季再度展現強勁表現，帶動營收與獲利（上、下線）皆取得卓越成果。營收成長在我們服務的大多數市場均呈現廣泛支撐。我們認為本季進一步證明了策略的力量，以及我們穩健執行的能力，能在時間推移中持續創造價值。

As we announced in mid-April, we have reached an agreement to acquire Megger Group Limited. This acquisition represents a significant step in our portfolio transition, and I wanted to give you a quick update on what's been transpiring since the announcement.

如同我們在 4 月中旬所宣布，我們已達成協議收購 Megger Group Limited。此項收購是我們投資組合轉型的重要一步，我也想就公告後的最新進展向各位簡要更新。

We have begun the regulatory filings process in the required countries. And while the timing of this process can be uncertain, our current expectation is that it should be completed in a time frame that results in closing the deal in the first quarter of fiscal 2027.

我們已在所需國家啟動監管申報流程。雖然此流程的時程可能存在不確定性，但我們目前預期可在一個時間範圍內完成，並使交易於 2027 會計年度第一季完成交割。

In addition, I wanted to let you know that we have already established internal teams with Megger, Doble, and ESCO staff working together to better understand key aspects of the integration process. We expect that this early preparation and planning will be beneficial in setting out steps for a smooth and orderly integration of Doble and Megger with a focus on realizing identified synergies once the transaction is complete.

此外，我也想讓各位知道，我們已與 Megger、Doble 以及 ESCO 的同仁成立內部團隊共同合作，以更深入了解整合流程的關鍵面向。我們預期這些前期準備與規劃，將有助於在交易完成後，制定順暢且有序的 Doble 與 Megger 整合步驟，並聚焦於實現已辨識的綜效。

Adding Megger to the ESCO portfolio creates a scaled utility solutions platform and strengthens our position as a trusted partner to utilities worldwide. This acquisition marks another meaningful step in enhancing our portfolio, and we remain confident in the long-term outlook for our target markets. With durable demand drivers firmly in place, we are excited about the opportunities ahead.

將 Megger 納入 ESCO 投資組合，可打造具規模的公用事業解決方案平台，並強化我們作為全球公用事業值得信賴合作夥伴的地位。此收購是我們優化投資組合的另一項重要里程碑；我們對目標市場的長期展望仍具信心。在穩健且持久的需求驅動因素明確存在下，我們對未來機會感到振奮。

Chris will run you through all of the financial details for the second quarter, but before that, I wanted to give you a few comments on each segment.

Chris 將帶各位檢視第二季所有財務細節；在此之前，我想先就各事業部門補充幾點看法。

We recently completed our annual strategic planning process with our subsidiary businesses. As part of these meetings, we assessed each of our end markets and our strategies to deliver above-market growth. My comments will focus on the current order strength that we are seeing as well as some of the longer-term dynamics across our served markets.

我們近期與各子公司完成年度策略規劃流程。作為會議的一部分，我們評估了各終端市場以及推動高於市場成長的策略。我的評論將聚焦於目前看到的接單強度，以及我們所服務市場的一些長期動態。

Starting with aerospace and defense. In Q2, we continue to see order strength on US And UK Navy programs, both from the maritime business and organically at Globe, where we entered $24 million of Virginia-class orders in the quarter for Block 5.2 and Block 6 content.

先從航太與國防開始。第二季，我們持續看到美國與英國海軍專案的強勁接單，來源包括海事業務，以及 Globe 的有機成長；本季我們在維吉尼亞級（Virginia-class）專案中，針對 Block 5.2 與 Block 6 的內容，新增 2,400 萬美元訂單。

In addition, we are seeing broad order strengths on commercial aerospace programs. As we have mentioned previously, commercial aerospace orders were a little soft last year as the OEMs worked through some internal issues. So it is nice to see the rebound in order strength here. We continue to see a positive long-term outlook across our A&D end markets, supported by strong demand visibility and multi-year program backlogs.

此外，我們也看到商用航太專案的接單普遍強勁。如同先前提到，去年商用航太接單略顯疲弱，因 OEM 正在處理一些內部問題。因此，很高興看到接單強度在此回升。我們對航太與國防（A&D）終端市場的長期展望仍然正向，並受到強勁的需求能見度與多年期專案在手訂單的支持。

In commercial aerospace, demand continues to outpace production, sustaining historically high OEM backlogs. Annual deliveries are expected to increase from approximately 1400 aircraft in 2025 to more than 2000 per year by 2028 and beyond. While we view industry forecasts with an appropriate conservatism, we believe that the OEMs are on a recovery path and we are already seeing order momentum tied to early progress in raising building rates.

在商用航太方面，需求持續超過產量，使 OEM 在手訂單維持於歷史高位。預期年度交付量將由 2025 年約 1,400 架，提升至 2028 年及之後每年超過 2,000 架。雖然我們對產業預測保持適度保守，但我們相信 OEM 正走在復甦軌道上，且我們已看到與早期提升產能（提高生產速率）進展相關的接單動能。

In Defense, Aero, elevated geopolitical uncertainty is supporting higher budgets and new program starts. The F-47 NGAD program represents a meaningful, long-cycle growth opportunity, and we have achieved strong early wins to secure attractive ship set content. In naval markets, both the US and UK remain committed to submarine modernization and fleet expansion, with increasing build rates and new platform development continuing to be key priorities.

在國防航太方面，升高的地緣政治不確定性正支撐更高的預算與新專案啟動。F-47 NGAD 專案代表一項具意義、長週期的成長機會，而我們已在早期取得強勁勝利，成功鎖定具吸引力的整艦套件（ship set）供應內容。在海軍市場方面，美國與英國皆持續投入潛艦現代化與艦隊擴張，提高建造速率與新平台開發仍是關鍵優先事項。

Turning to the Utility Solutions Group, we delivered another strong quarter of orders led by services, offline Test equipment, and condition monitoring that supported double-digit revenue growth. These results were partially offset by lower renewables demand as developers continue to prioritize project completions ahead of tax credit sunsets later this summer.

接著談公用事業解決方案事業群（Utility Solutions Group）。我們本季再度交出強勁接單表現，主要由服務、離線測試（offline Test）設備與狀態監測帶動，支撐營收達到雙位數成長。上述成果部分被再生能源需求較低所抵銷，因開發商在今年夏末稅賦抵免到期前，仍優先推進專案完工。

Looking ahead, we are encouraged by the outlook for utility solutions. Approximately 85% of segment activity is tied to utility capital spending, which we expect to remain elevated as electric utilities invest to meet rising electricity demand. This demand is placing increasing strain on an aging infrastructure, accelerating the need to maintain, expand, and modernize the electric grid. Our diagnostic measurement, Testing, and monitoring solutions help utilities improve reliability and performance across both new and legacy assets.

展望未來，我們對公用事業解決方案的前景感到鼓舞。約 85% 的部門活動與公用事業資本支出相關；我們預期在電力公用事業為滿足上升的用電需求而持續投資下，資本支出將維持高檔。此需求正使老化基礎設施承受更大壓力，加速電網維護、擴建與現代化的需求。我們的診斷量測、測試與監測解決方案，協助公用事業提升新舊資產的可靠度與效能。

Our condition monitoring equipment and high-voltage Test solutions are becoming increasingly important for utilities and OEMs that manufacture transformers and switchgear as they navigate the challenges of maintaining and expanding the grid.

在公用事業與製造變壓器及開關設備的 OEM 面對維護與擴建電網挑戰之際，我們的狀態監測設備與高電壓測試（high-voltage Test）解決方案正變得愈發重要。

Overall, we remain bullish on the longer-term opportunity in the utility end market. Finally, I'll touch on the Test business, which carried its great start to the year into the second quarter. Orders were strong in the quarter, driven by EMC Test and measurement in the US And Europe. Filter orders for government-funded data centers and multiple industrial shielding projects. Over the longer-term, we are seeing broad-based strength across most of Test end markets and expect mid-single-digit organic revenue growth over our planning horizon.

整體而言，我們對公用事業終端市場的長期機會仍持樂觀態度。最後我談一下 Test 業務，其在第二季延續了今年開局的強勁表現。本季接單強勁，主要由美國與歐洲的 EMC 測試與量測所帶動；以及政府資助資料中心的濾波器（Filter）訂單與多項工業屏蔽專案。從長期來看，我們看到 Test 多數終端市場呈現廣泛性強勁需求，並預期在我們的規劃期間內，有機營收可達中個位數成長。

Demand is being supported by a favorable regulatory and standards environment, rising requirements for electromagnetic compatibility and shielding performance across mission-critical applications. Compliance Testing and evolving standards continue to drive increased Test frequency and expanded certification requirements. We see sustained demand across EMC and microwave applications, healthcare, industrial shielding, and EMP filters serving utilities and secure data centers. We are optimistic about [Tess's] continued opportunities to drive growth and margin expansion over time.

需求受到有利的法規與標準環境支持，且在關鍵任務應用中，對電磁相容性與屏蔽效能的要求持續提高。合規測試與不斷演進的標準，持續推動更高的測試頻率與更廣泛的認證要求。我們看到 EMC 與微波應用、醫療保健、工業屏蔽，以及服務公用事業與安全資料中心的 EMP 濾波器等領域，需求可望持續。我們對 [Tess's] 持續推動成長與隨時間擴大利潤率的機會保持樂觀。

With that, I'll turn it over to Chris, who will run you through the financial details for the quarter.

接下來我把時間交給 Chris，他將帶各位檢視本季的財務細節。

Thanks, Bryan.

謝謝你，Bryan。

Everyone can follow along on the chart presentation. We will start on page 3, which shows the financial highlights for the second quarter.

各位可以對照簡報圖表。我們將從第 3 頁開始，該頁顯示第二季的財務重點。

The bar charts across top of this page clearly show that the second quarter was another great set of results for ESCO. The key theme with ESCO's financial results right now is that the core company performance on an organic basis is quite strong and the ESCO Maritime acquisition is adding significantly to that strong base company performance. It's been a powerful combination driving our results since the closing of the Maritime deal in April of 2025.

本頁上方的長條圖清楚顯示，第二季對 ESCO 而言又是一組非常出色的成果。就 ESCO 目前的財務結果而言，關鍵主題是：核心公司在有機基礎上的表現相當強勁，而 ESCO Maritime 的收購也在此強勁的核心表現之上，帶來顯著增量。自 2025 年 4 月 Maritime 交易完成交割以來，這是一個強而有力的組合，持續推動我們的業績。

Getting to the numbers, we start with orders, which increased 42%. Organic order growth was double-digit for all three business platforms with overall organic order growth of 22%. Maritime added $53 million of orders or 20 points of additional growth.

談到具體數字，先從訂單開始，訂單成長 42%。三個業務平台的有機訂單成長皆達雙位數，整體有機訂單成長為 22%。Maritime 貢獻 5,300 萬美元訂單，或額外增加 20 個百分點的成長。

On the sales side, reported growth was 33.5%, which was comprised of 13% organic growth and $48 million of sales from Maritime.

在銷售方面，報告成長為33.5%，其中包含13%的有機成長以及來自Maritime的4,800萬美元銷售額。

On the profitability side, we saw adjusted EBIT margins improve by 370 basis points to 21.7% and adjusted earnings per share increased by 63% to $1.91 per share.

在獲利能力方面，我們看到調整後EBIT利潤率提升370個基點至21.7%，調整後每股盈餘成長63%至每股1.91美元。

Next, we'll go through the segment highlights, starting with Aerospace and Defense on page 4.

接下來，我們將回顧各事業部門的重點，先從第4頁的航太與國防開始。

A great quarter across all metrics, starting with orders, which came in at nearly $184 million compared to $96.5 million in the prior year quarter. Organic orders increased by 35% with strong growth from the commercial aerospace and Navy businesses. As stated previously, Maritime added $53 million of orders in the quarter, which brought reported order growth to just over 90%. Sales in the quarter were $150 million with organic growth of 14%. The strong organic growth was driven by strength from commercial and defense aerospace as well as the Navy business, so really nice performance from all parts of the core aerospace and defense platform.

本季各項指標表現都非常出色，先從訂單開始，本季訂單接近1.84億美元，相較去年同期的9,650萬美元大幅提升。有機訂單成長35%，主要來自商用航太與海軍業務的強勁成長。如先前所述，Maritime在本季新增5,300萬美元訂單，使得報告訂單成長率略高於90%。本季銷售額為1.5億美元，有機成長14%。強勁的有機成長來自商用與國防航太以及海軍業務的帶動，因此核心航太與國防平台各部分都交出非常亮眼的表現。

On the profitability side, we had good improvement to 28.6% adjusted EBIT margins, an increase of 160 basis points. Adjusted EBIT and adjusted EBITDA dollars increased by 78% and 72%, respectively. Margin increases were due to positive impacts from leveraging sales growth and increased prices.

在獲利能力方面，調整後EBIT利潤率良好提升至28.6%，增加160個基點。調整後EBIT與調整後EBITDA金額分別成長78%與72%。利潤率提升主要來自銷售成長帶來的規模效益以及提價的正面影響。

Next, we go to chart 5 in the Utility Solutions Group.

接下來，我們看公用事業解決方案事業群（Utility Solutions Group）的第5張圖表。

Orders here were up 10% in the second quarter, and that was driven by strong performance at Doble, where orders grew by 20%. We did see weak orders performance at NRG where the renewables markets continue to be very soft. Sales in the quarter were up a modest 3%. Doble sales growth of 11% was somewhat offset by declines at NRG. Doble continues to see good end-market activity across a number of product lines serving the regulated utility customer base. Adjusted EBIT dollars in the quarter were up nearly 11% with volume, price, and mixed benefits at Doble more than offsetting margin drops at NRG.

本季第二季的訂單成長10%，主要由Doble的強勁表現帶動，Doble訂單成長20%。我們也看到NRG的訂單表現疲弱，因為再生能源市場仍然非常低迷。本季銷售額小幅成長3%。Doble銷售成長11%，但部分被NRG的下滑所抵銷。Doble在多條產品線上、面向受監管公用事業客戶群的終端市場活動仍然良好。本季調整後EBIT金額成長近11%，Doble在量、價與組合上的效益，已足以抵銷NRG的利潤率下滑。

Next, we have the Test business on page 6.

接下來是第6頁的測試（Test）業務。

This business had another terrific quarter with orders up 21% and sales up more than 27%. This business is seeing robust market activity centered around US Test and measurement and power filter demand. Adjusted EBIT margins improved nicely, increasing to 15.4%, which represents an increase of 300 basis points from last year's second quarter as the business continues to nicely leverage sales growth.

該業務本季再度表現出色，訂單成長21%，銷售成長超過27%。該業務正受惠於強勁的市場活動，主要集中在美國測試與量測以及電力濾波器需求。調整後EBIT利潤率明顯改善，提升至15.4%，較去年第二季增加300個基點，因為該業務持續良好地運用銷售成長帶來的槓桿效益。

Next is chart 7, where we have year-to-date highlights.

接下來是第7張圖表，我們將說明年初至今的重點。

The first six months have been very strong for ESCO as we make progress towards another record year. Order strength has been significant, with 30% organic growth year-to-date. All three businesses have delivered double-digit organic growth, with aerospace and defense leading the way. Sales have also been strong, with 12% year-to-date organic growth, led by Test at 27% and aerospace and defense at 14%. Adjusted EBIT margins are up 370 basis points year-to-date as all three businesses have delivered improved margins.

前六個月對ESCO而言非常強勁，我們正朝著再創紀錄的一年邁進。訂單動能顯著，年初至今有機成長30%。三大業務皆繳出兩位數的有機成長，其中以航太與國防領先。銷售同樣強勁，年初至今有機成長12%，其中測試業務成長27%、航太與國防成長14%領先。年初至今調整後EBIT利潤率提升370個基點，三大業務皆實現利潤率改善。

Going to chart 8, we have cash flow highlights for the first six months.

來到第8張圖表，我們將說明前六個月的現金流重點。

Operating cash flow is up significantly at nearly $135 million, compared to $46 million in the prior year. A key driver has been increased advance payments on large Navy contracts. Capital spending is down slightly compared to last year, and there's a $10 million use of cash on the acquisition line related to working capital and tax settlements for the maritime deal. EBITDA leverage is low at 0.4 times, and we are positioned well for the debt requirements that will come with the Megger deal, which is currently expected to close in the first quarter of fiscal 2027.

營運現金流大幅提升至接近1.35億美元，相較去年同期的4,600萬美元。主要驅動因素之一是大型海軍合約的預收款增加。資本支出較去年略降，且在併購項目上有1,000萬美元的現金流出，與Maritime交易相關的營運資金與稅務結算有關。EBITDA槓桿倍數偏低，為0.4倍；我們也已為Megger交易所帶來的債務需求做好良好準備，目前預期該交易將於2027財年第一季完成交割。

Our last chart is number 9, where we have updated 2026 guidance.

最後一張圖表是第9張，我們將更新2026年的財測指引。

With another strong quarter, we are increasing full-year 2026 guidance. We now expect full-year adjusted earnings per share of $8 to $8.25 per share. This represents an increase of 33% to 37% compared to fiscal 2025. This is a substantial increase from our original November guide, and you can see from the bar graphs at the bottom of the page, we expect 2026 to be another record year and a nice continuation of the growth trend ESCO has delivered since fiscal 2021.

在又一個強勁季度之後，我們上調2026全年指引。我們目前預期全年調整後每股盈餘為每股8.00至8.25美元。相較2025財年，這代表成長33%至37%。這較我們11月最初的指引有顯著上調；從頁面底部的長條圖可見，我們預期2026年將再創紀錄，並延續ESCO自2021財年以來所展現的成長趨勢。

That completes the financial summary, and now I'll turn it back over to Bryan.

以上為財務摘要，接下來我把時間交回給Bryan。

Thanks, Chris.

謝謝，Chris。

So as you heard from our commentary. Q2 was another solid quarter, and we're looking at another year of strong revenue and earnings growth. And with record backlog, we can continue to feel great about the long-term prospects for ESCO.

如同各位從我們的說明中所聽到的，第二季又是一個穩健的季度，我們正朝著營收與獲利強勁成長的另一年邁進。加上創新高的在手訂單，我們對ESCO的長期前景仍然非常有信心。

That concludes our opening remarks, and we'll now turn it over for the Q&A.

以上為我們的開場說明，接下來進入問答環節。

(Operator Instructions)

（接線員指示）

Tommy Moll, Stephens.

Tommy Moll，Stephens。

Bryan, on Test, you talked about mid-single-digit sales growth over the planning horizon. I don't think that's different from what you've said previously, but you gave a lot of detail on some of the drivers for that today. And so I'm curious, just given some of the recovery there, is it fair to say you've got increasing conviction and visibility in that outlook?

Bryan，關於測試（Test）業務，你提到在規劃期間銷售成長為中個位數。我不認為這與你先前所說的不同，但你今天對一些驅動因素提供了很多細節。因此我想問，考量到那邊的復甦情況，是否可以說你對該展望的信心與能見度正在提高？

And then just moving to the bottom line there, any change post your planning conference on what the margin aspiration would be for that segment?

另外再看獲利端，在你們的規劃會議之後，該事業部門的利潤率目標（aspiration）有沒有任何變化？

Thank you.

謝謝。

Well, thanks, Tommy.

好的，謝謝你，Tommy。

Yeah, listen, I do think it's a little bit of a change. As we're having a very strong year this year at the business and we have adjusted -- I think historically, we would have said three to five, we're probably saying more like four to six now. And this year, we're going to be well ahead of that, but yes, I would say our outlook for the Test business broadly is improving.

是的，聽著，我確實認為這有一點變化。因為今年該業務表現非常強勁，而我們也調整了——我想過去我們歷來會說3%到5%，現在我們可能更像是說4%到6%。而今年我們會遠遠超過這個區間；但沒錯，我會說我們對測試業務整體的展望正在改善。

And I think what I've said to you all before is that we're driving toward 20% EBITDA margins in that business. And I think after what we've seen this year and what we saw in the five year kind of reviews that we just went through, we think we're going to get there a little quicker than we might have thought before.

而且我之前也跟各位說過，我們正推動該業務朝20%的EBITDA利潤率邁進。我認為在看到今年的表現，以及我們剛完成的五年期回顧之後，我們覺得達成目標的速度會比先前想像得更快一些。

Thank you, Bryan.

謝謝你，Bryan。

And as a follow-up, I wanted to ask on Megger. At the time of the announcement, you framed the accretion as. I forget the exact word you used, Bryan, but accretive in the 1st year and significantly accretive in the other years.

作為追問，我想問Megger。當時在宣布時，你將增厚（accretion）描述為——Bryan，我忘了你用的確切措辭，但大意是第一年就會增厚，之後幾年則會顯著增厚。

Two-part question for you today. Are the fare bogeys to assume they're something like low single-digits just on a percentage basis in the 1st year going to potentially even low double-digits by the third year?

今天有兩個問題。第一，是否可以把門檻假設（bogeys）理解為：第一年按百分比計大概是低個位數增厚，到了第三年可能甚至達到低兩位數？

And then second part of the question. How would you frame whatever return parameters you use to underwrite the deal, potentially on the ROIC side or some other framework that you used here?

第二個問題，你會如何描述你們用來承作（underwrite）這筆交易的報酬參數？例如在投入資本報酬率（ROIC）或其他你們採用的框架之下，是怎麼看的？

Yeah, thanks for the question. Yeah, I think what we said and what we still believe is that on an earnings basis and EPS basis, it's going to be accretive in the first full year. And then it's going to be significantly accretive in the year beyond that. I'm kind of doing math in my head, but it's approximately double-digit accretive in that second year.

好的，謝謝你的問題。我想我們說過、也仍然相信的是：以獲利與EPS的角度來看，在第一個完整年度就會增厚；而在再下一年則會顯著增厚。我在腦中快速算一下，大約在第二年會是兩位數百分比的增厚。

I'm sorry, the second question was --

抱歉，第二個問題是——

Whatever return-related underwriting you used on the deal--

你們在這筆交易上所使用的、與報酬相關的承作假設——

Yeah, so our kind of our guiding star there is really making sure that our internal rate of return on the deal is going to be better than our weighted average cost of capital. And so we are going to -- we do see a better than double-digit return on an IRR basis. And we do have a pretty good spread over our weighted average cost of capital.

是的，所以我們的指導原則（guiding star）主要是確保這筆交易的內部報酬率（IRR）會高於我們的加權平均資本成本（WACC）。因此我們——我們確實看到在IRR基礎上會有高於兩位數的報酬，而且相對於我們的加權平均資本成本有相當不錯的利差。

Scott Deuschle, Deutsche Bank.

Scott Deuschle，德意志銀行。

Bryan, can you characterize the demand that Doble is seeing in its condition monitoring business and also characterize the pricing power you have in condition monitoring?

Bryan，你能否描述一下Doble在狀態監測（condition monitoring）業務所看到的需求情況，並且也談談你們在狀態監測方面的定價能力？

Yeah, I would say that overall, condition monitoring continues to accelerate. I think I've said to you before that one of the characteristics we're seeing is that increasingly public utilities commissions around North America are allowing the condition monitoring tools to be built into the rate base, and that has served to really accelerate the overall demand there. We are seeing really good demand characteristics. And it would be at the high end of what we are seeing in terms of our product lines in terms of growth, so it's in the double-digit growth category.

是的，我會說整體而言，狀態監測持續加速。我想我之前也跟你說過，我們看到的一個特徵是：北美各地的公用事業委員會愈來愈允許將狀態監測工具納入費率基礎（rate base），這確實加速了整體需求。我們看到非常好的需求特性。而就我們各產品線的成長來看，它會位於我們所看到的高端，因此屬於兩位數成長的類別。

Are orders for condition monitoring systems growing faster than the 20% headline number you put up for doubles orders this quarter?

本季您提到 Doble 訂單年增 20% 的亮眼數字；那麼狀態監測系統的訂單成長是否比這個 20% 還要更快？

No, I don't think so. I would say that that's a year-over-year comparison number. I think we're seeing broad-based growth over our entire product line.

不，我不這麼認為。我會說那是年對年比較的數字。我認為我們整個產品線都呈現廣泛性的成長。

And Scott, I think one of the things that one of our theses here was that the amount of spending was going to be the same, whether it went to renewables or it went to regulated utility piece. And so I think a little bit of what you're seeing is the softness that we're seeing over on the renewable side is really coming through as increased spending on the grid sustainment and grid modernization side.

另外，Scott，我想我們在這裡的一個論點是：支出總額會是一樣的，不管是投入再生能源，或是投入受監管公用事業那一塊。因此我認為你看到的一部分現象是：我們在再生能源端看到的疲弱，確實正轉化為在電網維持與電網現代化方面的支出增加。

Okay, and last question just on this topic, like do condition monitoring systems help operators reduce their long-term hiring needs for electricians? And if so, has that become a key part of the value proposition given the shortage of electricians that are out there today?

好的，關於這個主題最後一題：狀態監測系統是否能幫助營運商降低長期對電工的招募需求？如果可以，鑑於目前電工短缺，這是否已成為價值主張中的關鍵部分？

Yeah, the answer to the first piece is yes. The way that condition monitoring operates is it allows you to only send a truck roll when you know there's an issue or something that needs to be responded to. So yes, it does reduce the number of truck rolls.

是的，第一部分的答案是肯定的。狀態監測的運作方式是：只有在你知道有問題或需要回應的事項時，才會派車出勤。所以是的，它確實能降低出勤（truck roll）的次數。

But in the grand scheme of things, I do not believe that that is the most important financial reason why a utility would want to do this. What the condition monitoring allows them to do is get better real-time data from the grid edge so that as they're operating their system, they're able to, in those peak load conditions, they're able to operate the system more efficiently and they're able to push things a little bit harder than they might if they don't have those grid edge feedback.

但從整體來看，我不認為這是公用事業想做這件事最重要的財務原因。狀態監測讓他們能從電網邊緣取得更好的即時數據，因此在系統運作時，尤其在尖峰負載條件下，他們能更有效率地運行系統，也能比在沒有電網邊緣回饋的情況下，把系統推得更「緊」一些。

So I think that the bigger value in condition monitoring is they get more life out of existing assets, meaning that they can defer capital investments and expensive replacements, and that allows them to put their investments more into needed areas and into grid expansion.

所以我認為狀態監測更大的價值在於：他們能讓既有資產使用壽命更長，也就是可以延後資本投資與昂貴的汰換，進而把投資更多地放到真正需要的領域以及電網擴建上。

That's clear and really helpful.

很清楚，也非常有幫助。

Last question, the declines in energy accelerated this quarter by a pretty meaningful amount in both sales and I think orders actually declined by even more. Is there any hard evidence you can point to that this business is actually at a bottom and is a business that can see a 30% sales decline of business that you want to be in long-term?

最後一題，本季能源業務的下滑在銷售端加速得相當明顯，而我認為訂單下滑甚至更大。你們是否有任何明確證據可以指出這項業務已經觸底？以及，對於一家可能出現 30% 銷售下滑的業務，你們長期仍想留在其中嗎？

Yeah, listen, I think that the challenge with the renewables is they are pretty volatile and they're very responsive to a lot of the policy changes that we see in Washington. And I think that's what we're experiencing right now is that the removal or the imminent removal of the tax credits is changing behavior amongst developers.

是的，聽著，我認為再生能源的挑戰在於它們相當波動，而且對我們在華盛頓看到的許多政策變化非常敏感。我想我們現在正在經歷的，就是稅收抵免的取消或即將取消，正在改變開發商的行為。

And so I'd like to believe that this is a bottom, but I've been around long enough to never call bottoms until I start seeing the trajectory in the other direction. So it's possible it could be a little deeper and I also think it's possible that this could last a little bit longer.

所以我希望這就是底部，但我在這行待得夠久了，在看到走勢開始反轉之前，我從不說已經觸底。因此它有可能還會再更深一些，我也認為它可能會持續久一點。

So listen, long-term, renewables are absolutely a piece of the overall grid solution. And we do believe that this is a business that can be profitable and even at a lower level. And so the answer is yes, I think this is a business that we want to be in. It's a business we continue to believe in. And it's a business that we do think is going to return to growth in the second half of '26 or beginning of '27.

不過，長期來看，再生能源絕對是整體電網解決方案的一部分。我們也相信，即使在較低的規模水準下，這仍是一門可以獲利的業務。所以答案是肯定的，我認為這是我們想要參與的業務，是我們持續相信的業務。我們也確實認為它會在 2026 年下半年或 2027 年初恢復成長。

Is the business profitable at this level of sales?

在目前這個銷售水準下，這項業務有獲利嗎？

It is -- it is profitable. I think the challenge is that on a year-over-year comparison basis, it was very profitable a year ago, and it's not as profitable now, but it's still profitable.

有——是有獲利。我認為挑戰在於：以年對年比較來看，一年前非常獲利，而現在沒有那麼獲利，但仍然是獲利的。

(Operator Instructions)

（接線員指示）

Jon Tanwanteng.

Jon Tanwanteng。

Nice job on the quarter and the increased outlook.

本季表現不錯，展望也上調了。

I was wondering if you could first talk about the commercial airline demand, particularly in consumables. I know you've seen a pretty strong trailing demand, but as we look forward, you see flights getting canceled, even entire airlines getting canceled in the case of Spirit. I'm just wondering if you see any pressure from that on the consumable bit of your business as you look into the future.

我想先請你談談商用航空需求，特別是在耗材方面。我知道你們近期的需求尾端相當強勁，但往前看，我們看到航班被取消，甚至像 Spirit 這種情況整家航空公司都被取消。我想了解，展望未來，你是否看到這會對你們業務中的耗材部分造成任何壓力？

Well, it's pretty early to see any impact from something like an airline going out of business. There has been a fair amount of impact to widebodies coming in and out of the Middle East in terms of overall air traffic, but we have not seen that manifest in a meaningful way in our order patterns. In fact, our orders this quarter were outstanding and really implied significant growth both on the aftermarket and on the OEM side. We pointed in our remarks to some of the increases we're seeing on the OEM side. We're pretty excited about what we're seeing from Boeing and others. We do think that they're back on track, and we're prepared to support them at even higher build rates.

嗯，像航空公司倒閉這種事情，要看到任何影響還為時過早。就整體空中交通而言，中東地區寬體機進出確實帶來了一些影響，但我們尚未看到它以有意義的方式反映在我們的訂單型態上。事實上，我們本季的訂單非常出色，並且確實意味著售後市場與 OEM 端都將顯著成長。我們在談話中也提到 OEM 端看到的一些增幅。我們對從波音及其他公司看到的情況感到相當振奮。我們確實認為他們已回到正軌，而且我們也準備好在更高的生產速率下支持他們。

And I would say we seem to regularly have this discussion about how conservative I am about taking their forecast to heart. I would say that our belief in what's happening there is improving, and we're optimistic about what that means for our business.

我也會說，我們似乎經常討論我對於把他們的預測當真有多保守。我會說，我們對那邊正在發生的事情的信心正在提升，我們也對這對我們業務的意義感到樂觀。

Got it. That's helpful. Thank you.

了解。很有幫助，謝謝。

And then just on the revenue guidance, it looks like you didn't change it. And I was wondering, what are the moving parts in there, just given the Test is outperforming your expectations by so much? Are you just tracking towards the higher end of the range or are there some puts and takes that we should be thinking about in the other segments?

另外關於營收指引，看起來你們沒有調整。我想問的是，裡面的變動因素是什麼？尤其是 Test 的表現大幅超出你們預期。你們只是朝區間上緣前進，還是其他事業部門有一些此消彼長需要我們留意？

I would say there's a few puts and takes. I mean, I think that you noticed the maritime is slightly under $100 million year-to-date and kind of the full-year guide we had given there before was like $230 million to $245 million, so they're going to be probably to the lower end of that range based on kind of how the first half has gone. I mean, overall, the business is still doing great. Profits are good, cash is good, orders are good. They're just seeing a little bit of some delays and slowdowns on some of the US surface ship type programs.

我會說有幾個此消彼長的因素。我想你注意到海事業務年初至今略低於 1 億美元，而我們先前給的全年指引大概是 2.30 億到 2.45 億美元，所以依照上半年進展，他們可能會落在區間的低端。整體而言，業務仍然表現很好：獲利不錯、現金不錯、訂單不錯。只是他們在一些美國水面艦艇類型的專案上，看到了一點延遲與放緩。

So again, I think that kind of brings it back to the lower end. We're probably a little bit better in Doble than what we had thought a quarter ago, NRGs offsetting that, so we're a little bit worse there. And then we've got a few places in the aerospace and defense, mostly on the commercial aircraft side and defense aircraft side where we're a little better. So all these are kind of plus and minus, and yeah, we kind of end up in the same place.

所以我想這會把結果拉回到區間低端。我們在 Doble 方面可能比一季前想的稍微好一些，而 NRG 則抵銷了這點，所以那邊我們稍微差一些。然後在航太與國防方面，有幾個地方——主要在商用飛機與國防飛機端——我們稍微好一些。這些都是一些加加減減，對，我們最後大致落在同一個位置。

Got it. Thank you.

了解，謝謝。

And then last one, if I could sneak one in, any thoughts on where inflation is going and your ability to push pricing through to your customers, what's built into your forecast today and what could be the risks there as we go forward?

最後一題，如果我可以再塞一題：對通膨走勢以及你們將價格轉嫁給客戶的能力有何看法？你們目前的預測中納入了哪些假設？往後可能有哪些風險？

Yeah, we certainly believe that we're able -- I think we've got a demonstrated history to be able to drive price faster than inflation. We certainly keep an eye on that. It's a little bit early right now to call anything on oil prices or anything like that, but we are starting to see some signals there that may require us to kind of go back to customers with some price changes, but you can count on us to be pretty aggressive about the price segment.

是的，我們當然相信我們能——我想我們有可證明的歷史，能把漲價幅度做得比通膨更快。我們也會密切關注。目前要對油價之類的事情下定論還有點早，但我們開始看到一些訊號，可能需要我們回頭跟客戶談一些價格調整。不過你可以相信，我們在價格這一塊會相當積極。

I'm showing no further questions at this time. I would now like to turn it back to Bryan Sayler for closing remarks.

目前顯示沒有其他提問。我現在想把時間交回給 Bryan Sayler 做結語。

Well, listen, thanks, everyone, for taking our call. I mean, I think as you saw, we feel really good about our quarter. We feel really good about our year and we're looking forward to talking to you again about another great quarter three months from now.

好，聽著，謝謝各位參與我們的電話會議。我想如你所見，我們對本季表現感到非常好。我們對今年也感到非常好，並期待三個月後再與各位談另一個很棒的季度。

Take care.

保重。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝您參與今天的會議。本次節目到此結束。您現在可以掛線。