伊頓 (ETN) 2024 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Eaton First Quarter 2024 Earnings Call. (Operator Instructions) And as a reminder, today's conference is being recorded.

女士們、先生們，感謝大家的耐心等待，歡迎參加伊頓 2024 年第一季財報電話會議。 （操作員指示）謹此提醒，今天的會議正在錄音中。

I would now like to turn the conference over to your host, Yan Jin. Please go ahead.

現在我想把會議交給主持人嚴進。請繼續。

Good morning. Thank you all for joining us for Eaton's Fourth Quarter 2024 Earnings Call.

早安.感謝大家參加伊頓 2024 年第四季財報電話會議。

With me today are Craig Arnold, our Chairman and CEO; and Olivier Leonetti, Executive Vice President and Chief Financial Officer. Our agenda today includes the opening remarks by Craig, then he will turn it over to Olivier, who will highlight the company's performance in the fourth quarter. As we have done on our past calls, we'll be taking questions at the end of Craig's closing commentary.

今天與我在一起的有我們的董事長兼執行長克雷格‧阿諾德 (Craig Arnold)；奧利維爾‧萊昂內蒂 (Olivier Leonetti)，執行副總裁兼財務長。我們今天的議程包括克雷格的開場白，然後他將把它交給奧利維爾，奧利維爾將重點介紹公司第四季的業績。正如我們在過去的電話會議中所做的那樣，我們將在克雷格的閉幕評論結束時回答問題。

The press release and the presentation we'll go through today have been posted on our website. This presentation includes adjusted earnings per share, adjusted free cash flow and other non-GAAP measures. They are all reconciled in the appendix. A webcast of this call is accessible on our website and will be available for replay. I would like to remind you that our comments today will include the statements related to the expected future results of the company and are therefore forward-looking statements. Our actual results may differ materially from our forecasted projections due to a wide range of risks and uncertainties that are described into our earnings release and the presentation.

我們今天要討論的新聞稿和簡報已發佈在我們的網站上。本簡報包括調整後每股盈餘、調整後自由現金流量和其他非公認會計準則指標。它們都在附錄中進行了協調。本次電話會議的網路直播可在我們的網站上觀看，並可重播。我想提醒您，我們今天的評論將包括與公司預期未來業績相關的陳述，因此屬於前瞻性陳述。由於我們的收益發布和演示中描述了廣泛的風險和不確定性，我們的實際結果可能與我們的預測有重大差異。

With that, I will turn it over to Craig.

這樣，我就把它交給克雷格。

Okay. Thanks, Yan.

好的。謝謝，嚴。

And we'll start with some highlights on Page 3, and I'll lead off by noting that we've delivered another strong quarter this year. Our adjusted EPS was $2.40 in the quarter, well above our guidance range, our record for the quarter and up 28% from prior year.

我們將從第三頁的一些亮點開始，我將首先指出我們今年又實現了強勁的季度業績。本季調整後每股收益為 2.40 美元，遠高於我們的指導範圍、本季的記錄，比去年同期增長 28%。

I'd also note that our orders came in ahead of expectations with strong order growth in Electrical, both the Americas and Global. On a rolling 12-month basis, total electrical orders were up 7% and aerospace orders increased by 2%. This led to another quarter of growing and record backlogs up 27% for Electrical and 11% for Aerospace, with strong book-to-bill ratios. The growth in orders and backlog support our point of view on the strength of the mega trends that we're in the early stages and that our market should be strong for years to come. And given our Q1 results, we're raising our guidance for organic growth, segment margins and adjusted EPS for the year. On balance, we're very pleased with our start to the year.

我還要指出的是，我們的訂單超出了預期，美洲和全球電氣訂單成長強勁。在連續 12 個月的基礎上，電氣訂單總額增加了 7%，航空航太訂單增加了 2%。這導致電氣部門的積壓訂單又增加了一個季度，創紀錄地增長了 27%，航空航天部門的積壓訂單增長了 11%，訂單出貨比強勁。訂單和積壓訂單的成長支持了我們的觀點，即我們處於早期階段的大趨勢的強度，我們的市場在未來幾年應該會保持強勁。鑑於我們第一季的業績，我們正在提高今年有機成長、部門利潤率和調整後每股收益的指導。總的來說，我們對今年的開局感到非常滿意。

In the last few quarters, we shared our framework on how we think about key growth drivers for the company. This chart reflects the sixth secular growth trends that are positively impacting our business today, and quite frankly, for years to come. We continue to think Eaton is uniquely positioned in most of our businesses and are expected to see an acceleration in market-driven growth opportunities for years to come.

在過去的幾個季度中，我們分享了我們如何看待公司關鍵成長動力的框架。這張圖表反映了第六種長期成長趨勢，這些趨勢對我們今天的業務產生了積極影響，坦白說，對未來幾年也有積極影響。我們仍然認為伊頓在我們的大多數業務中都處於獨特的地位，預計未來幾年將加速市場驅動的成長機會。

In the last 3 earnings calls, we provided a summary of progress on infrastructure spending, reindustrialization, utility and data center markets. We also shared the data center -- the data, excuse me, we're tracking on mega projects, including when they are expected to have a material impact on our revenue, and an overview on the growth expectations and drivers for our Aerospace business.

在過去 3 次財報電話會議中，我們總結了基礎設施支出、再工業化、公用事業和資料中心市場的進展。我們還共享了數據中心——數據，對不起，我們正在追蹤大型項目，包括它們預計何時對我們的收入產生重大影響，以及我們航空航天業務的成長預期和驅動因素的概述。

Today, we'll once again provide you an update on what we're seeing on mega projects, but we'll also take a moment to show you the momentum that we're seeing in the nonresidential construction project market for those projects under $1 billion. Additionally, we'll provide you with a summary of the growth outlook for industrial facilities and how we're positioned in this market, and lastly, because it's such a dynamic topic, we'll provide an updated view on how our now higher growth expectations for the data center market is unfolding.

今天，我們將再次向您提供有關大型項目的最新情況，但我們也會花一點時間向您展示我們在非住宅建築項目市場上看到的 1 美元以下項目的勢頭十億。此外，我們將為您提供工業設施成長前景的總結以及我們在這個市場的定位，最後，因為這是一個充滿活力的主題，我們將提供關於我們現在如何實現更高成長的最新觀點資料中心市場的預期正在展開。

Turning to Slide 5 in the presentation. We summarized the number of mega projects that have been announced since January of 2021. And as a reminder, a mega project is a project with an announced value of $1 billion or more, and the number is now 415 projects. Once again, this is North America data, but we are seeing a similar trend in Europe, although the dollars are not as large.

前往簡報中的投影片 5。我們總結了自 2021 年 1 月以來已宣布的大型項目的數量。再說一次，這是北美的數據，但我們在歐洲看到了類似的趨勢，儘管美元沒有那麼大。

Just a few points to note. We've now surpassed $1 trillion in announced megaprojects, double what we saw over the last -- this time last year and 3x the normal run rate. Approximately 16% of these projects have started but it does vary by type of project. For example, a large percentage of semiconductor and EV battery projects have started, but downstream chemical, power generation, renewables and data center projects have some of the lowest project start rates to date. And cancellation rates continue to be modest, around 10% and below historical rates.

只是有幾點要注意。現在，我們宣布的大型專案已超過 1 兆美元，是去年同期的兩倍，是正常運作率的三倍。其中約 16% 的專案已經啟動，但具體情況因專案類型而異。例如，很大一部分半導體和電動車電池專案已經啟動，但下游化工、發電、再生能源和資料中心專案的專案開工率是迄今為止最低的。取消率仍然較低，約 10%，低於歷史水準。

Using the current forecast, we expect over $100 billion to $150 billion of these projects to start this year.

根據目前的預測，我們預計今年將啟動價值超過 1,000 億至 1500 億美元的專案。

It's also worth noting that mega projects represent 15% of total nonresidential construction starts in 2023, a number that we expect to grow over the next 5 years. For projects that have started, we've won $1 billion of orders and our win rate is approximately 40%. We remain active in negotiations on another $1.4 billion of electrical content. Most of the projects represented here have not yet reached a negotiation stage.

另外值得注意的是，到 2023 年，大型專案佔非住宅建築開工總量的 15%，我們預計這一數字將在未來 5 年內成長。對於已經啟動的項目，我們已經贏得了10億美元的訂單，我們的中標率約為40%。我們仍積極參與另外 14 億美元電氣內容的談判。這裡代表的大多數項目尚未進入談判階段。

Turning to Slide 6. We want to highlight the largest part of nonresidential construction market, projects under $1 billion. This market is projected to be over $500 billion in 2024 and represents around 50% of the U.S. market, 56% increase since 2021 and a 16% CAGR. The market was actually up also 10% through Q1 of this year. So while mega projects grab a lot of the headlines, we're seeing significant strength in projects under $1 billion as well. And for projects less than $100 million, construction starts were up 15%, so once again, strength across the entire market. This momentum is naturally being driven by the same set of mega trends and stimulus spending that we're seeing on mega projects. The primary markets here include utility, power generation, renewable, water, wastewater, manufacturing and data centers. And our win rate in this segment is approximately 35%.

轉向幻燈片 6。該市場預計到 2024 年將超過 5,000 億美元，約占美國市場的 50%，自 2021 年以來成長 56%，複合年增長率為 16%。截至今年第一季度，市場實際上也上漲了 10%。因此，雖然大型項目佔據了許多頭條新聞，但我們也看到 10 億美元以下的項目也表現強勁。對於 1 億美元以下的項目，開工量成長了 15%，因此整個市場再次走強。這種勢頭自然是由我們在大型專案上看到的同一組大趨勢和刺激支出所推動的。這裡的主要市場包括公用事業、發電、再生能源、水、廢水、製造和資料中心。我們在這一領域的勝率約為 35%。

Turning to Slide 7, we highlight the industrial facilities end market. As we've reported, this end market accounted for approximately 12% of Eaton's total revenue in 2023. Reindustrialization and nearshoring are having a particularly large impact on this market. Examples include semiconductor fabrication, EV and EV battery plants as well as LNG terminals. At the same time, industrial markets are undergoing growing pressure to decarbonize to lower cost and develop more sustainable operations. These challenges are naturally driving a significant increase in CapEx investment.

轉向投影片 7，我們將重點放在工業設施終端市場。正如我們所報導的，這一終端市場約佔伊頓 2023 年總收入的 12%。例如半導體製造、電動車和電動車電池廠以及液化天然氣終端。同時，工業市場正面臨越來越大的壓力，要求脫碳以降低成本並發展更永續的營運。這些挑戰自然會推動資本支出投資的大幅增加。

It's also coming at a time when technology and digitalization are providing more value to data as a service, software, and therefore, the ability to provide operational intelligence. This allows customers to move from being reactive to proactive when managing energy and uptime, saving them time and money. For us, we increased both our content per project and our average selling price. These are the drivers that support our belief that industrial facilities end market will grow by some 7% between now, 2023 and 2026.

同時，技術和數位化為數據即服務、軟體以及提供營運智慧的能力提供了更多價值。這使得客戶在管理能源和正常運作時間時從被動轉變為主動，從而節省時間和金錢。對我們來說，我們增加了每個項目的內容和平均售價。這些驅動因素支持我們的信念，從現在到 2023 年至 2026 年，工業設施終端市場將成長約 7%。

Slide 8 provides an overview of the products and software that we sell as part of our industrial solutions portfolio. As noted, we think we have the broadest portfolio of products in the market. Our solutions are sold in both process and discrete manufacturing industries and are especially well suited to take advantage of the trends we discussed on the prior page. Our solutions help industrial companies optimize performance by lowering the cost of ownership and reducing complexity. They increase operational predictability with data-driven insights and enhanced safety, protecting people and assets.

投影片 8 概述了我們作為工業解決方案組合的一部分所銷售的產品和軟體。如前所述，我們認為我們擁有市場上最廣泛的產品組合。我們的解決方案在流程製造和離散製造業中銷售，特別適合利用我們在上一頁討論的趨勢。我們的解決方案透過降低擁有成本和複雜性來幫助工業公司優化績效。它們透過數據驅動的洞察力提高營運可預測性並增強安全性，保護人員和資產。

In addition to hardware and software, we provide a full suite of project management services, including design, specifying, commissioning, training, remote monitoring and obviously, aftermarket service. And our Brightlayer industrial software platform enables customers to preempt operational challenges because of the data and insights that come from our electrical equipment.

除了硬體和軟體之外，我們還提供全套專案管理服務，包括設計、指定、調試、培訓、遠端監控以及售後服務。我們的 Brightlayer 工業軟體平台使客戶能夠利用來自我們電氣設備的數據和見解來應對營運挑戰。

Moving to Slide 9, you'll see an updated view on the data center market. Last fall, in our Q3 2023 earnings call. We highlighted the data center market and shared our view that we expected the market to grow at a 16% compounded growth rate between 2022 and 2025. We want to provide an update as we've seen continued momentum in this market, driven by the rise of AI, big data and certainly edge computing. As expected, the biggest increase is coming from the very strong demand for AI data centers which is reflected both in our orders and in our negotiation pipeline. Here, orders on a trailing 12-month basis have more than doubled, and our negotiations in the U.S. have increased by more than 4x. We now think the overall market grows at a 25% compounded growth rate between 2022 and 2025. And as you know, we have a strong position in the data center market and the data center/IT channel accounted for 14% of our revenue last year.

前往投影片 9，您將看到資料中心市場的更新檢視。去年秋天，在我們的 2023 年第三季財報電話會議上。我們重點介紹了數據中心市場，並分享了我們的觀點，即我們預計該市場在2022 年至2025 年間將以16% 的複合增長率增長。的推動下持續保持成長勢頭人工智慧、大數據，當然還有邊緣運算。正如預期的那樣，最大的成長來自對人工智慧資料中心的非常強勁的需求，這反映在我們的訂單和談判管道中。過去 12 個月的訂單量增加了一倍多，我們在美國的談判量增加了 4 倍多。我們現在認為 2022 年至 2025 年間整體市場複合成長率為 25%。

Now I'll turn the presentation over to Olivier to cover the financials.

現在我將把簡報交給奧利維爾來介紹財務狀況。

Thanks, Craig.

謝謝，克雷格。

I'll start by providing a summary of our Q1 results. We posted a Q1 sales record of $5.9 billion, up 8% in total and organically. This represents 8 quarters of growth over 20% on a 2-year stack. We posted Q1 segment profit and margins record. Operating profit grew 27% and segment margin expanded 340 basis points to 23.1%.

首先，我將提供第一季結果的摘要。我們公佈的第一季銷售額達到 59 億美元，整體有機成長 8%。這意味著 2 年堆疊中已有 8 個季度增長超過 20%。我們公佈了第一季的利潤和利潤率記錄。營業利益成長 27%，部門利潤率擴大 340 個基點至 23.1%。

Adjusted EPS of $2.40 increased by 28% yet over the prior year. This is a Q1 record and well above the high end of our guidance range. This performance resulted in operating cash flow of $475 million, up 42% on a year-over-year basis and free cash flow of $292 million, up 40% versus prior year. As a percentage of full year guidance, both operating cash flow and free cash flow are improved versus prior year.

調整後每股收益為 2.40 美元，較上年增長 28%。這是第一季的記錄，遠高於我們指導範圍的上限。這一業績導致營運現金流達 4.75 億美元，年增 42%，自由現金流達 2.92 億美元，年增 40%。作為全年指引的百分比，營運現金流和自由現金流均較上年有所改善。

On Slide 11, we summarize Electrical Americas' very strong results. We continue to raise the bar, setting new all-time records for sales, operating profit and margins. Organic sales growth remained strong at 17%, which reflects broad-based strength in our end markets with particular strength in industrial, data center and institutional end markets. On a 2-year stack, organic growth was up 39%. Electrical Americas has generated double-digit organic growth for 9 consecutive quarters. All-time record operating margin of 29.2% was up 630 basis points versus the prior year, benefiting primarily from higher volumes, effective management of price cost and improved manufacturing efficiency, partially offset by higher costs to support growth initiatives. On a rolling 12-month basis, orders were up 8% demonstrating a positive inflection as a result of the impact of the various megatrends.

在投影片 11 中，我們總結了 Electrical Americas 非常強勁的業績。我們不斷提高標準，創造銷售額、營業利潤和利潤率的新紀錄。有機銷售成長仍然強勁，達到 17%，這反映了我們終端市場的廣泛實力，尤其是工業、資料中心和機構終端市場的實力。兩年來，有機成長成長了 39%。 Electrical Americas 已連續 9 個季度實現兩位數的有機成長。營運利潤率創歷史新高，達到 29.2%，比上年增長 630 個基點，這主要得益於產量增加、價格成本有效管理和製造效率提高，但部分被支持增長計劃的成本上升所抵消。在連續 12 個月的基礎上，訂單增長了 8%，這表明由於各種大趨勢的影響而出現了積極的變化。

We had particular strength in data center end market. Also, our major project negotiations pipeline in Q1 was up 169% versus prior year and up 197% since Q1 2022. Electrical Americas backlog increased 31% year-over-year and was up 21% sequentially, resulting in a book-to-bill ratio of 1.2 on a rolling 12-month basis. These results underscore the tailwinds from secular trends, strong execution and robust backlog that have allowed us to increase growth and margin guidance for the year, which we will discuss later in the presentation.

我們在資料中心終端市場具有獨特的優勢。此外，我們第一季的主要專案談判管道比去年同期成長了169%，自2022 年第一季以來成長了197%。帳單交付12 個月滾動比率為 1.2。這些結果凸顯了長期趨勢、強勁執行力和強勁積壓的推動力，使我們能夠提高今年的成長和利潤率指導，我們將在稍後的演示中討論這一點。

The next chart summarizes the results for our Electrical Global segment. Coincidently, Global results are mostly flat to last year. Organic growth was up 1%, offset entirely by FX headwinds. We had strength in data center, industrial, as well as commercial and institutional end markets. Regionally, we saw strength in our APAC and GEIS businesses, partially offset by weakness in our EMEA business. Operating margin was 18.3% which was flat to the prior year. Orders were up 4% on a rolling 12-month basis with strength in data center and utility end markets. Book-to-bill continues to remain strong. Q1 was 1.1 on a rolling 12-month basis.

下一張圖表總結了我們的全球電氣部門的結果。巧合的是，全球業績大多與去年持平。有機成長成長 1%，完全被外匯不利因素抵銷。我們在資料中心、工業以及商業和機構終端市場擁有實力。從地區來看，我們看到亞太地區和 GEIS 業務的實力，但部分被歐洲、中東和非洲業務的疲軟所抵消。營業利益率為 18.3%，與前一年持平。由於資料中心和公用事業終端市場的強勁勢頭，訂單量連續 12 個月增長了 4%。訂單出貨量持續保持強勁。以 12 個月滾動計算，第一季為 1.1。

Before moving to our industrial businesses, I'd like to briefly recap the combined electrical segments. For Q1, we posted organic growth of 11% and segment margin of 25.3%, which was 430 basis points over prior year. On a rolling 12-month basis, orders inflected strongly positive, up 7% and our book-to-bill ratio for our electrical sector remains very strong at 1.2. We remain quite confident in our positioning for continued growth with strong margins in our overall electrical business.

在討論我們的工業業務之前，我想先簡單回顧一下合併後的電氣部門。第一季度，我們的有機成長為 11%，部門利潤率為 25.3%，比上年同期提高 430 個基點。在連續 12 個月的基礎上，訂單出現強烈的正向變化，成長了 7%，我們電氣產業的訂單出貨比仍然非常強勁，為 1.2。我們對整體電力業務的持續成長和強勁利潤率充滿信心。

Page 13 highlights our Aerospace segment. We posted Q1 sales, operating profit and operating margin records. Organic growth was 9% for the quarter. Growth was driven by broad strength across all markets with particular strength in commercial OEM and aftermarket end markets, which were up 17% and 15%, respectively. Operating margin of 23.1% was up 60 basis points year-over-year, benefiting from higher volumes and effective management of price cost. On a rolling 12-month basis, orders increased 2%. Commercial OEM and aftermarket orders were particularly strong, and we expect that the military OEM order patterns will normalize in the second half. Year-over-year backlog increased 11% and was up 4% sequentially. On a rolling 12-month basis, our book-to-bill for our Aerospace segment remained strong at 1.1.

第 13 頁重點介紹了我們的航空航天部門。我們公佈了第一季的銷售額、營業利潤和營業利潤率記錄。本季有機成長率為 9%。成長是由所有市場的廣泛實力推動的，其中商業 OEM 和售後市場終端市場尤其強勁，分別成長了 17% 和 15%。由於產量的增加和價格成本的有效管理，營業利潤率為 23.1%，較去年同期成長 60 個基點。以 12 個月滾動計算，訂單增加了 2%。商業OEM和售後市場訂單尤其強勁，我們預期軍用OEM訂單模式將在下半年正常化。積壓訂單年增 11%，季增 4%。在連續 12 個月的基礎上，我們航空航天部門的訂單出貨比仍保持在 1.1 的強勁水平。

Moving on to our Vehicle segment on Page 14. In the quarter, total revenue was down 2%, including a 3% organic decline, partially offset by a point of favorable FX. Weakness in the North America region was partially offset by strength in Asia Pacific. Operating margin came in at 16%, 150 basis points above prior year driven by effective management of price cost and improvement in manufacturing efficiencies, offset by lower sales volume.

轉向第 14 頁的車輛部門。北美地區的疲軟被亞太地區的強勁所部分抵銷。由於價格成本的有效管理和製造效率的提高（被銷售下降所抵消），營業利潤率為 16%，比上年同期提高 150 個基點。

On Page 15, we show results for our e-mobility business. Sales were up 7% on an organic and total basis. Our organic growth significantly outperformed the market, driven by new program ramp-ups. Our OEM customers continue to face execution challenges, and while we anticipate improvements throughout the year, we have remained pragmatic in our volume forecast. As a result, we will discuss shortly that our full year growth guidance of 25% to 35% remains unchanged. Growth programs and investments drove the operating loss of $4 million. We continue to incur launch costs related to our growth programs expected to ramp up over the next coming quarters. In 2023, we won new programs with more than $1.3 billion of mature year revenue, and we continue to expand our pipeline of new opportunities in 2024 with our unique technologies, driven by our electrical pedigree. This will continue to drive our growth well above the market.

在第 15 頁，我們展示了我們的電動車業務的結果。有機銷售額和總銷售額成長了 7%。在新計劃的推動下，我們的有機成長顯著優於市場。我們的 OEM 客戶繼續面臨執行挑戰，雖然我們預計全年都會有所改善，但我們在銷售預測方面仍然保持務實。因此，我們很快就會討論 25% 至 35% 的全年成長指引保持不變。成長計畫和投資導致營運虧損達 400 萬美元。我們將繼續承擔與成長計畫相關的啟動成本，預計未來幾季將會增加。 2023 年，我們贏得了成熟年收入超過 13 億美元的新項目，並且在我們的電氣血統的推動下，我們將在 2024 年繼續利用我們獨特的技術擴大新機會的管道。這將繼續推動我們的成長遠高於市場。

Moving to Page 16, we show our Electrical and Aerospace backlog updated through Q1. As you can see, we continue to build backlog with electrical stepping up to $11.3 billion and Aerospace reaching $3.4 billion for a total backlog of $14.7 billion. Versus prior year, our backlogs have grown by 27% in Electrical and 11% in Aerospace. Electrical backlog benefited from acceleration in order intake from tailwinds from the secular trends, including hyperscale orders within the data center end market. As noted earlier, book-to-bill ratios for Electrical and Aerospace are 1.2 and 1.1, respectively. The continued growth in our backlog underscores our confidence in 2024 and beyond.

轉到第 16 頁，我們顯示了截至第一季更新的電氣和航空航太積壓訂單。正如您所看到的，我們繼續積壓訂單，其中電氣升級達到 113 億美元，航空航太達到 34 億美元，總積壓達到 147 億美元。與去年相比，我們在電氣領域的積壓訂單增加了 27%，在航空航太領域的積壓訂單增加了 11%。電力積壓得益於長期趨勢的推動下訂單量的加速成長，包括資料中心終端市場的超大規模訂單。如前所述，電氣和航空航太領域的訂單出貨比分別為 1.2 和 1.1。我們積壓訂單的持續成長凸顯了我們對 2024 年及以後的信心。

Now I'll turn it back to Craig for the end market outlook and financial guidance updates.

現在我將把它轉回克雷格以獲取最終市場前景和財務指導更新。

Thanks, Olivier.

謝謝，奧利維爾。

Turning to Page 17, we show a summary of our end market growth assumptions. Overall, our markets continue to perform as expected, and most of these indicators have not changed from what we shared in our Q4 earnings call. We are, however, seeing stronger-than-expected growth in data center and in commercial and institutional markets in the U.S., which is why we're raising our revenue guidance for the year. In contrast, what many are seeing in the macro economy, we continue to expect growth in 80% of our end markets, and much of this growth is supported by the large backlog numbers that Olivier shared.

轉向第 17 頁，我們總結了我們的終端市場成長假設。總體而言，我們的市場繼續按預期表現，並且大多數指標與我們在第四季度財報電話會議中分享的內容相比沒有變化。然而，我們看到美國資料中心以及商業和機構市場的成長強於預期，這就是我們提高今年收入指引的原因。相較之下，正如許多人在宏觀經濟中看到的那樣，我們繼續預計80% 的終端市場將出現成長，而這種成長很大程度上是由奧利維爾分享的大量積壓訂單數量所支持的。

Moving to Page 18, we show our financial year organic growth and operating margin guidance. Overall, our 2024 organic growth is now expected to be between 7% and 9%, which is an increase of 50 basis points at the midpoint. We're raising our organic growth guidance in the Electrical Americas to 10% to 12% from 9% to 11%, and we're reiterating the growth guidance for the remaining segments. For segment margins, we're increasing the company's margin guidance range by 40 basis points at the midpoint to 23%. This is a result of the improved outlook in Electrical Americas, where we're seeing strong demand and strong performance. Here, we're increasing our margin outlook to 28% and a 100 basis point increase at the midpoint, and we're reiterating our guidance for the remaining segments.

轉到第 18 頁，我們展示了本財年的有機成長和營業利潤率指引。總體而言，我們目前預計 2024 年有機成長將在 7% 至 9% 之間，即中點成長 50 個基點。我們將美洲電氣部門的有機成長指引從 9% 至 11% 提高至 10% 至 12%，並重申了其餘細分市場的成長指引。對於分部利潤率，我們將公司的利潤率指導範圍中位數提高了 40 個基點，達到 23%。這是美洲電氣前景改善的結果，我們看到強勁的需求和強勁的業績。在此，我們將利潤率預期提高至 28%，中位數提高 100 個基點，並重申其餘細分市場的指導。

On the next page, we have the balance of our guidance metric for 2024 and Q2. For 2024, our adjusted EPS is expected to be between $10.20 and $10.60 a share. The $10.40 midpoint represents a 14% growth in adjusted EPS over prior year and a $0.25 increase over the initial 2024 guidance. The other elements of our guidance are unchanged. For Q2, we expect organic growth to be between 6.5% and 8.5%, segment margins to be between 22.4% and 22.8%, and adjusted EPS to be in the range of $2.52 to $2.62 a share.

在下一頁上，我們列出了 2024 年和第二季指導指標的平衡。 2024 年，我們調整後的每股盈餘預計在 10.20 美元至 10.60 美元之間。 10.40 美元的中點代表調整後每股收益比上年增長 14%，比 2024 年最初指導增長 0.25 美元。我們指南的其他要素保持不變。對於第二季度，我們預計有機成長將在 6.5% 至 8.5% 之間，部門利潤率將在 22.4% 至 22.8% 之間，調整後每股收益將在 2.52 美元至 2.62 美元之間。

So let me just close with a summary on Page 20. Once again, the trends driving growth in our end markets continue to play out as expected and even better in our Electrical Americas business, driven by the data center market. We also delivered a strong quarter of financial results on the back of strong execution across the company. As a result, we raised our guidance for organic growth by 50 basis points, segment margins by 40 basis points and adjusted EPS by 25% at the midpoint. And in the quarter, we were especially pleased to see strength in our negotiations, our orders and the growth in our backlog, all of which hit all-time records, validating our medium- and long-term growth outlook. So we leave the quarter with a high level of confidence. Eaton will deliver higher growth, higher margins and consistent earnings growth for years to come. Our expectations are high, and that's exactly where they should be.

因此，讓我在第 20 頁上做一個總結。在整個公司強而有力的執行力的支持下，我們也實現了強勁的季度財務表現。因此，我們將有機成長指引上調了 50 個基點，部門利潤率上調了 40 個基點，調整後每股盈餘中位數上調了 25%。在本季度，我們特別高興地看到我們的談判、訂單和積壓訂單的成長，所有這些都創下了歷史記錄，驗證了我們的中長期成長前景。因此，我們對本季充滿信心。伊頓將在未來幾年實現更高的成長、更高的利潤率和持續的獲利成長。我們的期望很高，而這正是他們該有的期望。

With that, I'll open things up for any questions you may have.

這樣，我將解答您可能提出的任何問題。

Thanks, Greg. (Operator Instructions) With that, I will turn it over to the operator to give you guys the instruction.

謝謝，格雷格。 （操作員指示）這樣我就交給操作員給你們指示了。

(Operator Instructions) The first question will come from the line of Joe Ritchie from Goldman Sachs.

（操作員說明） 第一個問題將來自高盛的 Joe Ritchie。

Craig, look, it's incredible to see the pipeline now over $1 trillion on the mega projects. I'm just curious, like as you talk to your customers, if you think about maybe labor as a constraint like how do you see this all playing out over the next couple of years? And like what are you -- what are you hearing from your customers in terms of like whether there are either additional products that you need to come to market with just given all the activity that's happening here?

克雷格，你看，現在看到大型專案的籌建金額超過 1 兆美元，真是令人難以置信。我只是很好奇，就像您與客戶交談時一樣，您是否認為勞動力可能是一種限制，例如您如何看待這一切在未來幾年中的發展？就像你是什麼——你從你的客戶那裡聽到了什麼，例如考慮到這裡發生的所有活動，你是否需要將其他產品推向市場？

No, we appreciate the question, Joe, and it's obviously one that we're spending a lot of time internally looking at, and it's one of the things that's quite frankly, tempering our outlook for the year is the fact that we do believe that labor continues to be a bottleneck in certain industries and really in the economy overall. And so at this point, I think it's really too early to say to what extent it's going to resolve itself.

不，我們很欣賞這個問題，喬，這顯然是我們在內部花費大量時間研究的一個問題，坦率地說，調整我們對今年前景的事情之一是我們確實相信勞動力仍然是某些行業乃至整個經濟的瓶頸。因此，在這一點上，我認為現在說它會在多大程度上自行解決還為時過早。

One of the things that we're looking at as well is particular -- total labor participation rates. In general, those numbers, I would say, have been growing over time at a rate of 2% to 3%. I will tell you that the construction industry, the industry that we're participating in, really reversing what had been a long-term trend are actually growing at a faster rate. And so our industries are, in fact, growing at a faster rate in terms of labor participation than the underlying economy, which is really an encouraging sign. I mean, I think, in many ways, skilled trade today whether it's plumbers, contractors, electricians, welders, these are really good jobs and jobs that are going to be around for a long term. And I think some of that is playing out in the shift that we're seeing.

我們正在關注的事情之一也很特別——總勞動參與率。總的來說，我想說，這些數字隨著時間的推移一直以 2% 到 3% 的速度增長。我會告訴你，建築業，我們正在參與的行業，真正扭轉了長期趨勢，實際上正在以更快的速度成長。事實上，我們的產業在勞動參與方面的成長速度快於基礎經濟，這確實是一個令人鼓舞的跡象。我的意思是，我認為，從很多方面來說，今天的技術貿易，無論是水管工、承包商、電工、焊工，這些都是非常好的工作，而且會長期存在。我認為其中一些正在我們所看到的轉變中顯現出來。

But it's one of the things that we continue to watch. And it's one of the things, like I said, once again, that really tempers our outlook. We could obviously grow faster if these constraints are fully resolved and don't become a gating item for the industry overall.

但這是我們繼續關注的事情之一。正如我再次所說，這是真正影響我們前景的事情之一。如果這些限製完全解決並且不會成為整個行業的門禁項目，我們顯然可以成長得更快。

Got it. That's super helpful. And then I guess maybe -- I know you've got a bunch of growth questions from others. So maybe I'll turn to margins for a second. So you announced a restructuring program last quarter. There's a pretty wide gap right now between the really stellar margins you're putting up in the Electrical Americas business versus the Electrical Global business. Can you maybe just elaborate a little bit more on the restructuring plans? Is there some sense that you're going to try to maybe narrow the gap on the margin trajectory for those two businesses today?

知道了。這非常有幫助。然後我想也許——我知道其他人向你提出了很多關於成長的問題。所以也許我會談談邊距。因此，您上季度宣布了重組計劃。目前，您在電氣美洲業務和電氣全球業務中獲得的真正出色的利潤之間存在著相當大的差距。您能否詳細說明一下重整計畫？是否有某種感覺，您將嘗試縮小這兩家企業今天的利潤軌跡差距？

Yes. I mean I think the short answer is absolutely. We would intend and anticipate to narrow the gap between those two businesses and narrow the gap the right way, which is the Global business needs to do significantly better. We have no expectations at all that we'd see retrenchment in our Americas business. And so -- but I will say, as you think about the restructuring program that we launched, $375 million of spending, $325 million of benefits. 2/3 of that, more or less, will be in the Electrical segment with a heavy concentration in Global. So we are clearly working hard to improve margins in the Electrical Global business.

是的。我的意思是我認為簡短的答案是絕對的。我們打算並預期縮小這兩個業務之間的差距，並以正確的方式縮小差距，這是全球業務需要做得更好的地方。我們根本不期望美洲業務會出現收縮。所以，但我會說，當你想到我們啟動的重組計畫時，支出為 3.75 億美元，福利為 3.25 億美元。其中 2/3 或多或少將集中在電氣領域，主要集中在全球。因此，我們顯然正在努力提高 Electrical Global 業務的利潤率。

One of the reasons why this gap kind of widened and opened up is that as we're all aware, in the U.S. market, the North America market is doing very well right now. There's a lot of activity. There's a lot of growth. We have a very strong strategic position in the North America margin -- market overall. And so there are just a lot of things today that are really positive in the Americas markets that are allowing us to continue to expand margins there. And as you know, a lot of the European markets have been much weaker than we anticipated. You see some of the macroeconomic data coming out of Europe, Germany specifically, and a lot of the market segments in Europe where we have a strong position are some of the weaker parts of the market. If you think about the MOEM segment, you see it in some of the automation data from some of the other electrical peer companies, the residential market.

這種差距擴大和擴大的原因之一是，眾所周知，在美國市場，北美市場目前表現得非常好。有很多活動。有很多增長。我們在北美市場整體上擁有非常強大的戰略地位。因此，今天美洲市場有很多積極的因素，使我們能夠繼續擴大那裡的利潤。如您所知，許多歐洲市場比我們預期的要弱得多。你會看到一些來自歐洲，特別是德國的宏觀經濟數據，而我們在歐洲擁有強勢地位的許多細分市場都是市場中一些較弱的部分。如果您考慮 MOEM 細分市場，您會在其他一些電氣同行公司（住宅市場）的一些自動化數據中看到它。

And so I think today, those margins will get better. If we look forward, we're obviously anticipating margins getting better, there's easier comps in the second half of the year as well. But without a doubt, there's plenty of opportunity to expand our margins in our Global segment.

所以我認為今天這些利潤率將會變得更好。如果我們展望未來，我們顯然預期利潤率會變得更好，下半年的競爭也會變得更容易。但毫無疑問，我們的全球業務有許多擴大利潤的機會。

The next question is from Jeff Sprague from Vertical Research.

下一個問題來自 Vertical Research 的 Jeff Sprague。

Just curious on data centers, Craig, your comment about like some of the mega projects haven't started yet there. Obviously, data center has been strong and a revenue driver for you there. So can you just elaborate on that? Are you kind of talking about you really haven't seen maybe kind of the AI-oriented investments coming through? Just kind of an interesting curious comment. And in last quarter when you did provide that kind of order conversion data for semi and other related investments, you didn't put data centers on that slide. So maybe you could address that element of the question also.

只是對資料中心感到好奇，克雷格，你的評論就像一些大型專案還沒開始一樣。顯然，資料中心一直很強大，並且是您的收入驅動力。能詳細說明一下嗎？您是在說您真的沒有看過以人工智慧為導向的投資嗎？只是一種有趣又好奇的評論。在上個季度，當您確實為半成品和其他相關投資提供此類訂單轉換資料時，您沒有將資料中心放在該投影片上。所以也許你也可以解決這個問題的要素。

Yes, I'd say that, to your point, Jeff, data center markets have been good and strong for a long time. And I think our data center numbers, I think we talked about growth in excess of 20%. But the order growth in the data center market, as we talked about, is much higher than that, much, much higher than that. And so if you think about a lot of these big mega projects, and where we're seeing this outsized growth in projects announced, in our negotiations, data centers is obviously one of the big contributors and the underlying rate of growth that we're seeing in negotiations and in orders is outstripping the very strong growth that we're seeing in our business.

是的，我想說的是，傑夫，就你的觀點而言，資料中心市場長期以來表現良好且強勁。我認為我們的資料中心數字成長超過 20%。但正如我們所說，資料中心市場的訂單成長遠高於此，遠高於此。因此，如果你考慮許多大型項目，以及我們在談判中看到的已宣布項目的大幅增長，數據中心顯然是主要貢獻者之一，也是我們正在推動的潛在增長率之一。中看到的成長超過了我們在業務中看到的非常強勁的成長。

And so we were just trying to find some color in terms of mega projects and which of those are already showing up today in orders, which of those are already showing up somewhat in revenue, although most of it is not revenue yet and where we expect to continue to see even outsized growth as we move forward in the ensuing years, and data center is clearly going to be a big contributor. We talk about negotiations up 4x. So it is -- if the market just continues to grow, and we expect that market to be a much bigger piece of the total company as we look forward.

因此，我們只是試圖在大型項目方面找到一些色彩，其中哪些項目今天已經出現在訂單中，哪些項目已經在收入中有所體現，儘管其中大部分還不是收入，以及我們的預期隨著我們在接在下來的幾年中前進，我們將繼續看到超大規模的成長，而資料中心顯然將成為一個重要的貢獻者。我們談論的談判提高了 4 倍。情況確實如此——如果市場繼續成長，並且我們預計該市場將在我們的整個公司中佔據更大的份額。

And then...

進而...

What was the second question? I didn't...

第二個問題是什麼？我沒有...

Yes. When you provided that handy chart last quarter showing kind of the negotiation to order to sales conversion timeline. Actually, you did not put data centers on that chart. Does it differ significantly from those...

是的。當您在上個季度提供方便的圖表時，顯示了從訂單到銷售轉換時間表的談判。實際上，您並沒有將資料中心放在該圖表上。和那些有很大差別嗎？

I think -- and correct -- the team can correct me around the room if I'm wrong, I think data centers were embedded in that data. We gave you the aggregate data, I thought data centers were embedded in what we gave you.

我認為——並且糾正——如果我錯了，團隊可以在房間裡糾正我，我認為數據中心已嵌入到該數據中。我們為您提供了匯總數據，我認為數據中心已嵌入到我們為您提供的數據中。

Yes, I'm looking at slides...

是的，我正在看投影片...

Different kinds of projects. And we were showing you some examples of different kinds of projects, but embedded in the overall data, I think that definitely included data centers.

不同類型的項目。我們向您展示了一些不同類型項目的範例，但嵌入到整體資料中，我認為這肯定包括資料中心。

Yes, we can follow up after this call.

是的，我們可以在這次通話後跟進。

Yes. And then just a second question, I'm sorry. Just on Electrical Americas margins, what would cause the margins to go down sequentially, right? Usually, Q1 is actually the lowest margin quarter of the year. It's the lowest revenue quarter in dollar value. Is there something in mix or otherwise that would cause it to step down from these levels?

是的。然後是第二個問題，抱歉。就美國電氣公司的利潤率而言，什麼會導致利潤率持續下降，對嗎？通常，第一季實際上是一年中利潤率最低的季度。以美元價值計算，這是收入最低的季度。是否存在混合或其他因素導致其從這些水平下降？

I'd say, as we look forward, as you know, we've made a number of announcements around capacity expansion. We're making some investments in commercial front end. We're making investments in technology. So there's a number of programs that we've made announcements last year and that we're investing in this year that will certainly be a bit of a gating factor in terms of margin expansion. I think the implied number is close to what it was in Q1, but I do take your point that we typically see margin expansion, we'll certainly see volume expansion in terms of the absolute revenue in the out quarters, but really it's more a function of spending and investments that we're making in the business.

我想說，正如您所知，正如我們所期望的那樣，我們已經就產能擴張發布了許多公告。我們正在商業前端進行一些投資。我們正在對科技進行投資。因此，我們去年宣布了許多計劃，今年我們也將投資這些計劃，這些計劃肯定會成為利潤擴張的限制因素。我認為隱含的數字接近第一季的水平，但我確實同意你的觀點，即我們通常會看到利潤率擴張，我們肯定會看到季度外絕對收入的銷量擴張，但實際上它更多的是我們在業務中進行的支出和投資的函數。

And the next question is from Deane Dray from RBC Capital Markets.

下一個問題來自加拿大皇家銀行資本市場的迪恩德雷 (Deane Dray)。

Just want to circle back on the data center demand here. And the idea here is you talk about labor constraints. But the industry and the folks that we're talking to on the data center planning side is they're nervous about the bottlenecks in some of the basic electrical backbone that you all providing. And so we saw this quarter an announcement in Europe with one of your European competitors signing a 5-year supply agreement to one of these data center operators. So -- and then they've also -- we've heard about transformers being backlogged for 2 years. So are there opportunities for you? I know you're increasing capacity in transformers, but are you looking at any of these longer-term supply agreements?

只是想回顧一下資料中心的需求。這裡的想法是你談論勞動力限制。但我們在資料中心規劃方面與業界和人士交談的是，他們對你們提供的一些基本電力主幹的瓶頸感到緊張。因此，我們在本季看到歐洲的一項公告，其中一家歐洲競爭對手與其中一家資料中心營運商簽署了為期 5 年的供應協議。所以——然後他們也——我們聽說變壓器積壓了兩年。那你有機會嗎？我知道你們正在增加變壓器的容量，但你們是否正在考慮這些長期供應協議？

Yes. The short answer is, Deane, it's absolutely yes. We are living in an environment right now where the market has a number of constraints, including electrical equipment. It's one of the reasons why we announced $1 billion of incremental investments that we're making in the company to deal with the specific bottlenecks that we have in our own manufacturing operations so that we can address the demand that we see in front of us. And quite frankly, given the demand that we're seeing even today in the business, those numbers will likely go up.

是的。簡短的回答是，迪恩，絕對是的。我們現在生活在一個市場受到許多限制的環境中，包括電氣設備。這就是我們宣布對公司進行 10 億美元增量投資的原因之一，以解決我們自己的製造業務中存在的特定瓶頸，從而滿足我們面前的需求。坦白說，考慮到我們今天所看到的業務需求，這些數字可能會上升。

So data centers continues to grow. I was responding to a specific question earlier around labor. But to your point, there are other constraints around electrical equipment, and we are, in fact, signing multiyear agreements with our customers to ensure that we have capacity in place to support the demand that they need from us. And so we are fully confident that we will not be the bottleneck in the industry. We will resolve the bottlenecks that we have in terms of our own electrical equipment, difficult to say where those other constraints will surface.

因此資料中心持續成長。我早些時候回答了一個有關勞動力的具體問題。但就您而言，電氣設備還有其他限制，事實上，我們正​​在與客戶簽署多年協議，以確保我們有能力滿足他們對我們的需求。所以我們完全有信心不會成為產業的瓶頸。我們將解決我們自己的電氣設備方面的瓶頸，很難說其他限制將在哪裡出現。

All right. That's really helpful. And then just away from data centers, just the idea of these mega projects, do you anticipate any mix change in what you are doing for direct ship versus going through distribution?

好的。這真的很有幫助。然後，除了資料中心外，就這些大型專案的想法而言，您是否預期您所做的直接運輸與分銷的混合變化？

I'd say distribution is really an important part of our go-to-market strategy, and we have really strong distributor partnerships that will always be an important part of our formula in terms of the way we go to market. Now there are, in fact, some market dynamics that suggest that there are certain kinds of projects in certain markets that do tend to be more of a direct-serve market than a market that is served through distribution. In some cases, data centers are a great example of that, where there are certain data center customers who want to be served direct. And so I do think there'll be a bit of a mix shift, not so much because it's a function of strategically, we're changing our approach as much as it is because there are certain market segments that are growing, big mega projects being a piece of that, that tend to be more direct served markets.

我想說，分銷確實是我們進入市場策略的重要組成部分，而且我們擁有非常強大的經銷商合作夥伴關係，就我們進入市場的方式而言，這將永遠是我們公式的重要組成部分。事實上，現在的一些市場動態表明，某些市場中的某些類型的項目確實更傾向於直接服務市場，而不是透過分銷服務的市場。在某些情況下，資料中心就是一個很好的例子，其中某些資料中心客戶希望獲得直接服務。所以我確實認為會有一些混合轉變，並不是因為它是戰略上的一個功能，我們正在改變我們的方法，而是因為某些細分市場正在增長，大型項目作為其中的一部分，這往往是更直接服務的市場。

Next question is from Julian Mitchell from Barclays.

下一個問題來自巴克萊銀行的朱利安·米切爾。

Maybe I just wanted to start with Electrical Global. You started out the year with a sort of fairly soft topline there. Just maybe help us understand sort of the confidence of getting to that low mid-single-digit organic growth for the year. How quickly do we expect that acceleration, say, in the second quarter in EG? And if there's any particular region or end market that's doing the sort of heavy lifting on that sales growth improvement?

也許我只是想從 Electrical Global 開始。今年伊始，你的收入相當疲軟。也許只是幫助我們了解今年實現低中個位數有機成長的信心。例如，我們預期 EG 第二季的加速速度有多快？是否有任何特定地區或終端市場對銷售成長的改善做出了重大貢獻？

Yes. I appreciate the question, Julian. I mean I'd say that we have, I would say, relatively modest growth assumptions for our Electrical Global segment. And we really, in Q1, performed largely in line with our expectations, a little weaker, quite frankly, in Europe than what we expected, but largely in line. And as I mentioned, in my outbound commentary, the comps get a bit easier as well in the second half of the year for Global. But today, I'd say we're growing in Asia. We had nice growth in our China and Asia Pacific business overall. Our GEIS business is growing, doing just fine.

是的。我很欣賞這個問題，朱利安。我的意思是，我想說，我們對全球電氣部門的成長假設相對溫和。我們在第一季的表現確實基本上符合我們的預期，坦白說，在歐洲的表現比我們的預期稍弱一些，但基本上符合我們的預期。正如我在我的出境評論中提到的，全球下半年的競爭也變得更加容易。但今天，我想說我們正在亞洲發展。我們在中國和亞太地區的業務總體上取得了良好的成長。我們的 GEIS 業務正在成長，表現良好。

The weak spot, as we talked about, is what's happening today in the European Electrical business where very much like you saw in some of the peer data. Those markets have been weaker than what we anticipated. But I would say today, fairly conservative set of assumptions that we're using internally in terms of what we're anticipating from our Europe business overall, our global business overall, and really, it's largely a function of the comps getting easier as we continue throughout the balance of the year. We're not anticipating a significant change in the trajectory of the business but some modest improvement in the second half.

正如我們所討論的，弱點是歐洲電氣行業目前正在發生的情況，這與您在一些同行數據中看到的非常相似。這些市場比我們預期的要弱。但今天我要說的是，我們在內部使用的一系列相當保守的假設，包括我們對整個歐洲業務和全球業務的預期，實際上，這在很大程度上是隨著我們的業務變得越來越容易而實現的。我們預期業務軌跡不會有重大變化，但下半年會出現一些適度的改善。

That's helpful. And just my second question was really to circle back on the margin outlook. So yes, your second quarter, you've got the implied sort of total company margin down 50 bps sequentially with some sales growth sequentially. So is the delta all in that sort of higher investments in Electrical Americas pulling down that margin sequentially. Is that what's going on there in Q2?

這很有幫助。我的第二個問題其實是回到利潤前景。所以，是的，第二季度，公司總利潤率隱含地連續下降了 50 個基點，而銷售額也連續成長。因此，三角洲全部都是由於對美國電氣公司的較高投資而連續拉低了利潤率。這就是第二季發生的情況嗎？

Yes. No, I'd say that that's really what the difference is. There's nothing else -- it's embedded in our assumptions that would suggest that margins should fall off other than the incremental spending and investments that we're making in the business. As you saw in our Q1 results, very strong execution by the team, 60-plus percent incrementals. And so the team is really executing well. We anticipate that that execution will continue for the balance of the year, and it really is simply a reflection of the investments that we're making in the business for future growth.

是的。不，我想說這就是真正的區別。沒有什麼其他的了——我們的假設表明，除了我們在業務中進行的增量支出和投資之外，利潤率應該會下降。正如您在我們第一季的業績中看到的，團隊的執行力非常強，增量超過 60%。所以團隊確實執行得很好。我們預計這項執行將在今年餘下時間繼續進行，這實際上只是我們為未來成長而在業務中進行的投資的反映。

Our next question is from Steve Tusa from JPMorgan.

我們的下一個問題來自摩根大通的史蒂夫·圖薩。

Just on that last question, can you maybe just be a little bit more specific about what you mean there on the amount of headwinds from these investments. I mean, you guys -- is there like an abrupt start-up cost in one of these facilities or something? Maybe just a little more color and maybe quantify that headwind.

關於最後一個問題，您能否更具體地說明這些投資帶來的不利因素的含義。我的意思是，你們這些設施中的一個或其他設施是否會突然產生啟動成本？也許只是多一點顏色，也許可以量化這種逆風。

Yes. I wouldn't call it an abrupt start-up cost. But as you know, we made some announcements last year around capacity expansions. And those new capacity expansions start to come online. So obviously, you turn on all the depreciation, you have start-up costs associated with commissioning new lines and new plants. We're making additional investments in some of these commercial opportunities to deal with the better growth outlook that we've talked about. And so in terms of the specifics, obviously, we're not going to give you an exact dollar amount. But I would tell you that it's really tied specifically to supporting the outlook for growth. And quite frankly, we could do better. I mean the reality is we did better in Q1. Our team is executing extremely well. So we could do better than what's currently reflected, but it is today reflective of our best thinking.

是的。我不會稱之為突然的啟動成本。但如您所知，我們去年就產能擴張發布了一些公告。這些新的產能擴充開始上線。顯然，你打開所有折舊，你就有了與調試新生產線和新工廠相關的啟動成本。我們正在對其中一些商業機會進行額外投資，以應對我們所討論的更好的成長前景。因此，就具體細節而言，顯然我們不會向您提供確切的金額。但我想告訴你，這確實與支持成長前景密切相關。坦白說，我們可以做得更好。我的意思是，現實是我們在第一季做得更好。我們的團隊執行得非常好。因此，我們可以做得比目前所反映的更好，但它今天反映了我們最好的想法。

Got it. And then just on the order front, one of your peers talked about some of these orders being delivered a little bit further out. You're adding the capacity. So maybe you can deliver in a bit more of an expedited way over the next couple of years. Should we think about this orders quarter converting further out than normal? Or are we now at kind of a more of a consistent lead time, albeit still probably a relatively long lead time, but are we still at kind of a consistent lead time that's been established over the last couple of years?

知道了。然後就在訂單方面，您的一位同行談到其中一些訂單交付得更遠一些。您正在新增容量。因此，也許您可以在未來幾年內以更快的方式交付。我們是否應該考慮本季的訂單轉換程度超出正常水準？或者我們現在是否處於一種更一致的交貨時間，儘管可能仍然是一個相對較長的交貨時間，但我們仍然處於過去幾年建立的一致的交貨時間嗎？

I would say that lead times have not pushed out further. We talked over the last couple of years, the fact that the surge that we're seeing in orders has, in fact, extended lead times and for many of our markets overall. And I would say today, depending upon the product line, we've made some progress in terms of lead times, but we've also seen, as you saw in the data, also a resurgence quite frankly, of orders with very strong orders in Q1 that I would say in backlogs that continue to grow. So I would say, in general, lead times have not changed materially. They've gotten not materially worse, they've gotten not that materially better.

我想說的是，交貨時間並沒有進一步延長。在過去的幾年裡，我們談到了這樣一個事實，即我們所看到的訂單激增實際上延長了我們許多市場的交貨時間。今天我想說，根據產品線，我們在交貨時間方面取得了一些進展，但正如您在數據中看到的那樣，坦率地說，我們也看到訂單量非常大的訂單的複蘇在第一季度，我會說積壓訂單繼續成長。所以我想說，總的來說，交貨時間沒有重大變化。他們並沒有在物質上變得更糟，也沒有在物質上變得更好。

Yes. So in other words, the orders that you booked this quarter should kind of convert at the same lead time as we've seen in the last 1.5 years type of thing?

是的。換句話說，您本季預訂的訂單應該在與我們在過去 1.5 年中看到的相同的交貨時間內進行轉換？

Yes. I mean I'd say it varies depending upon which market segment. I mean there are -- in some cases, we are getting for some of the hyperscale data center guys are trying to get out in front and maybe placing some orders earlier than they normally would. But for the most part, there's been no significant change in the order pattern.

是的。我想說的是，這取決於哪個細分市場。我的意思是，在某些情況下，我們發現一些超大規模資料中心的人員正試圖走在前面，也許比平常更早下一些訂單。但在大多數情況下，訂單模式沒有重大變化。

The next question is from Scott Davis from Melius Research.

下一個問題來自 Melius Research 的 Scott Davis。

Kind of intrigued by this concept of long-term supply agreements because I don't believe that's really been something that we've seen in the past in this industry. But can you -- for whatever you're willing to share here, help us understand, are these like take-or-pay type contracts? What is kind of the vision in forming these type of partnerships. I saw the Schneider Compass announcement a few months ago, but haven't -- not exactly sure what you guys are doing.

我對長期供應協議的概念很感興趣，因為我不相信我們過去在這個行業中見過這種情況。但是，無論您願意在這裡分享什麼，您能否幫助我們理解，這些是照付不議類型的合約嗎？建立此類合作關係的願景是什麼？幾個月前我看到了施耐德指南針的公告，但還沒有——不太確定你們在做什麼。

I mean, and as you can imagine, Scott, we're living in an environment today where these industries are growing much faster than they have historically, and the outlook for growth continues to strengthen and, in many cases, get better and where -- and you have capacity constraints. And so we are in a very different world today with respect to ensuring that we work with our customers and our suppliers on a multiyear basis to ensure that we have capacity to support the demand that's out in front of us. And that's really what's driving this change in the way we contract and partner with many of our customers.

我的意思是，正如你可以想像的那樣，斯科特，我們今天生活在這樣一個環境中，這些行業的增長速度比歷史上快得多，增長前景繼續增強，而且在許多情況下變得更好，而且 - - 並且您有容量限制。因此，我們今天處於一個非常不同的世界，需要確保我們與客戶和供應商進行多年合作，以確保我們有能力支持擺在我們面前的需求。這確實是推動我們與許多客戶簽訂合約和合作方式發生變化的原因。

So I think it's a perfectly logical thing to do. It's a needed thing to do in this environment. And to your point, I mean, most of these contracts are contracts that are structured in a way that ensures that while they won't necessarily be exactly take or pay, but they ensure that we have protections for the investments that we're making so that we're not putting capacity in that's not needed. So we feel very good about the nature of the contracts, the way they're structured, to ensure that the company is protected.

所以我認為這是一件完全合乎邏輯的事情。在這種環境下，這是一件必要的事。就你的觀點而言，我的意思是，大多數合約的結構方式確保雖然它們不一定完全是照付不議，但它們確保我們對我們正在進行的投資有保護這樣我們就不會在不需要的地方投入產能。因此，我們對合約的性質及其結構方式感到非常滿意，以確保公司受到保護。

Wow, that's interesting, and congrats on that. So this is -- I'm not looking for an exact number. I'm just trying to get a sense. If you think about -- we all know transformers are lead times along. But when you think about the percentage of your SKUs that are sold out right now, is there some sort of number that you could guess 30%, 40% of your SKUs? I mean I know it's broader than just transformers and switch gear, but any estimate there? I'm just kind of curious to see if that's the majority or it's still kind of sub-50% of SKUs?

哇，這很有趣，恭喜你。所以這是——我不是在尋找確切的數字。我只是想了解一下。如果你想一想——我們都知道變壓器的交貨時間很長。但是，當您考慮目前已售完的 SKU 的百分比時，您是否可以猜測出您的 SKU 的 30%、40%？我的意思是我知道它比變壓器和開關設備更廣泛，但是有什麼估計嗎？我只是有點好奇這是否佔 SKU 的大多數，還是仍佔 SKU 的 50% 以下？

Yes, I'd say that we really haven't run the math, to be honest with you, Scott, in terms of what percent. I will tell you that maybe an easy way to think about it is that the long cycle parts of our portfolio generally today, we have capacity constraints on the long-cycle stuff and on the short-cycle stuff, not so much. And I think our split is roughly 75-25 between long cycle and short cycle. So maybe that's a good proxy for where we're actually at capacity or close to sold out and where we're not.

是的，我想說，老實說，史考特，我們還沒有計算過百分比。我會告訴你，也許一個簡單的思考方法是，今天我們投資組合的長週期部分一般來說，我們對長週期的東西和短週期的東西都有容量限制，但沒有那麼多。我認為長週期和短週期之間的比例大約是 75-25。因此，這也許是一個很好的指標，可以反映我們實際上在哪裡已經達到產能或接近售完，而在哪裡還沒有。

And the next question is from Nicole DeBlase from Deutsche Bank.

下一個問題來自德意志銀行的 Nicole DeBlase。

Just maybe starting with Electrical Americas, obviously, really impressive 17% organic growth this quarter. You guys raised the guidance but still embeds pretty big decel throughout the year. So is that just -- can we kind of chalk that up to conservatism, Craig? Or is there something that you guys are seeing with respect to growth in the rest of the year, that kind of causes that step down?

顯然，從 Electrical Americas 開始，本季 17% 的有機成長確實令人印象深刻。你們提高了指導，但全年仍然存在相當大的減速。那麼，克雷格，我們可以將其歸因於保守主義嗎？或者你們在今年剩餘時間裡看到了一些成長方面的事情，例如導致下降的原因嗎？

I appreciate the question, Nicole. And obviously, it was a really strong start to the year for our Electrical Americas business, and they posted really, really positive numbers. And I'd say maybe it's early in the year. And we have one quarter behind us, and we just thought it's prudent at this point, given the fact that it's early in the year to let's see how the rest of the year unfolds. Certainly, if things continue with what we've seen, there could be upside to that number. I would say as well that as you think about as the year goes on, the comps get in some cases, a little bit more challenging. There's a little bit less contribution from price in some of the subsequent quarters. But once again, the business outperformed our expectation across the board most of which is obviously on the volume side in Q1. And so there is certainly the potential that the business does better than what we're currently forecasting.

我很欣賞這個問題，妮可。顯然，對於我們的電氣美洲業務來說，今年是一個非常強勁的開端，他們發布了非常非常積極的數字。我想說也許是今年年初。我們已經落後了四分之一，考慮到現在還為時過早，讓我們看看今年剩餘時間的情況如何，我們認為目前這是謹慎的做法。當然，如果事情按照我們所看到的那樣繼續下去，這個數字可能會有上升的空間。我還要說的是，隨著時間的推移，你會發現，在某些情況下，比賽會變得更具挑戰性。在隨後的一些季度中，價格的貢獻略有減少。但該業務再次全面超出了我們的預期，其中大部分顯然是在第一季的銷售方面。因此，該業務肯定有可能比我們目前的預測更好。

Got it. That's very fair. And then similar question on free cash. You didn't raise the guidance for the full year despite higher earnings. Is there something going on with net working capital or some other line item that causes the offset? Or is it just a bit early in the year, and you kind of want to see how that line item trends?

知道了。這非常公平。然後是關於自由現金的類似問題。儘管收益較高，但您並未提高全年指引。淨營運資本或其他一些項目是否發生了導致抵銷的情況？或者現在只是今年早些時候，您想了解該訂單項目的趨勢如何？

No, I'd say largely, it's early in the year. And just really, we just thought it's prudent at this juncture not to take the number up. We'll obviously revisit it as we get through Q2, but it's just early in the year.

不，我想說的是，現在是年初。事實上，我們只是認為在這個時候謹慎的做法是不要增加這個數字。顯然，我們會在第二季結束時重新審視它，但現在才今年年初。

And the next question is from the line of Andrew Obin from Bank of America.

下一個問題來自美國銀行的安德魯‧奧賓（Andrew Obin）。

Yes. I guess the question is everybody is asking about data centers, but maybe a slightly different direction. China, what are we seeing? How is your Electrical business in China performing within Electrical Global? And you have a very specific strategy there on JVs. Just maybe -- just talk about how the deals are performing relative to your expectations. So the two-part question.

是的。我想問題是每個人都在詢問資料中心，但方向可能略有不同。中國，我們看到了什麼？您在中國的電氣業務在 Electrical Global 中的表現如何？你們對合資企業有非常具體的策略。只是也許——只是談談這些交易相對於你的期望的表現如何。所以這個問題分成兩個部分。

No, I appreciate the question, Andrew. And I would say our China business continues to perform very well. In fact, we grew high single digits in Q1 in our China business. And to your point, we do have a very specific strategy for how we play the China market specifically through joint ventures. And in many cases, as you know, these are minority joint ventures. And our joint ventures, by the way, if you just take a look at our joint venture performance, we obviously don't consolidate this revenue, but they grew some 35% in 2023. So we're getting a lot of great growth in the joint ventures in China.

不，我很欣賞這個問題，安德魯。我想說我們的中國業務繼續表現良好。事實上，我們的中國業務在第一季實現了高個位數成長。就您而言，我們確實有一個非常具體的策略，特別是透過合資企業來打入中國市場。如您所知，在許多情況下，這些都是少數股權合資企業。順便說一句，如果你只看一下我們合資企業的業績，我們顯然不會合併這些收入，但它們在 2023 年增長了約 35%。

And as you know, strategically, what we tried to do there is really finding a way to partner with local Chinese companies who then give us the ability to broaden our portfolio to compete in Tier 2 and Tier 3 markets, both in China and around the world. And so we're absolutely thrilled with how well these JVs are playing out, and our team is executing, and it just gives us a lot of additional capabilities as we think about future growth of the company.

如您所知，從戰略上講，我們試圖做的實際上是找到一種與中國本土公司合作的方法，然後這些公司使我們能夠擴大我們的產品組合，以便在中國和周邊地區的二線和三線市場中競爭。因此，我們對這些合資企業的表現以及我們團隊的執行情況感到非常興奮，當我們考慮公司未來的發展時，它為我們提供了許多額外的能力。

Excellent. And just a more technical question. I don't know if -- I apologize if I missed it, but can you just talk about electrical channel inventories on the product side? Where are we?

出色的。只是一個更技術性的問題。我不知道——如果我錯過了，我很抱歉，但你能談談產品方面的電氣通路庫存嗎？我們在哪裡？

Yes. I would say that, once again, I think inventories are largely well balanced and well aligned right now. I mean, as you can tell by the growth in our backlogs, our backlogs continue to grow and lead times are not getting better and our book-to-bill, 1.2 in Electrical, which I think is a great indicator of where we sit today with respect to inventory in the channel. So today, I would say that it's obviously going to be the odd product line or 2 where the dealer inventories could be a little long. But overall, inventories, I think, today are very well balanced and given the backlogs that we continue to build and certainly all the conversations that I'm in with our distributors and customers is that they're looking for more stuff sooner, and they're looking for shorter lead times than we can currently deliver to.

是的。我想說，我認為目前庫存基本上是平衡且一致的。我的意思是，正如你可以從我們積壓訂單的增長中看出的那樣，我們的積壓訂單繼續增長，交貨時間並沒有變得更好，我們的訂單到賬單，電氣方面的1.2，我認為這是我們今天所處位置的一個很好的指標關於渠道庫存。所以今天，我想說，這顯然是一個或兩個奇怪的產品線，經銷商庫存可能有點長。但總的來說，我認為，今天的庫存非常平衡，考慮到我們繼續積壓的訂單，當然，我與分銷商和客戶進行的所有對話都表明，他們正在更快地尋找更多的東西，而且他們我們正在尋找比我們目前可以交付的時間更短的交貨時間。

Our next question is from the line of Jeff Hammond from KeyBanc.

我們的下一個問題來自 KeyBanc 的 Jeff Hammond。

Craig, just on this data center growth curve, in the slides, you kind of bump it from 16% to 25%. And I think the technology there you had a different time frame, but I think the pushback of the 11 -- 10.8% growth was like why isn't it higher? So just wondering how maybe we should think about that 10.8% differently and how to kind of incorporate capacity constraints or labor constraints versus kind of the numbers you put in the deck today?

克雷格，就在幻燈片中的資料中心成長曲線上，您將其從 16% 提高到 25%。我認為那裡的技術有不同的時間框架，但我認為 11 - 10.8% 增長的阻力就像為什麼不更高？所以只是想知道我們應該如何以不同的方式思考這 10.8%，以及如何將產能限製或勞動力限制與您今天放入的數字相結合？

I would say that what we've seen since we posted those other numbers, which were quite frankly a little bit stale, was that we certainly have seen just fundamental data center market independent of what's happening with AI has been accelerating. The world, as we've talked about before, just continue to generate processed or increasing amounts of data. And then on top of that, you have this explosive trend in AI and these AI training data centers just require and consume just orders of magnitude more power than a traditional data center, and we're obviously starting to see those orders and those negotiations come through now. And so that's really what's driving the change in the outlook for the market, not so much that we've decided that the labor constraints have been resolved, particularly or any particular power constraints overall have been resolved. It's really simply a function of the fact that what we're seeing in our negotiations, what we're seeing in our orders have just accelerated that much between the old number and the new number.

我想說的是，自從我們發布這些其他數字（坦白說有點陳舊）以來，我們所看到的是，我們確實看到了獨立於人工智慧正在加速發生的事情的基本資料中心市場。正如我們之前談到的，世界只是不斷產生經過處理或不斷增加的資料量。最重要的是，人工智慧領域出現了爆炸性趨勢，這些人工智慧訓練資料中心只需要並消耗比傳統資料中心多幾個數量級的電力，我們顯然開始看到這些訂單和談判的到來通過現在。因此，這確實是推動市場前景變化的原因，而不是我們認為勞動力限制已經解決，特別是或任何特定的電力限制總體上已經解決。這實際上只是一個事實的函數，即我們在談判中看到的情況，我們在訂單中看到的情況，舊數字和新數字之間的速度加快了很多。

Okay. That's helpful. And then just on the capacity expansion, I think in 3Q, you laid out kind of the areas you're bucketing for investment. Can you just talk about what starts to phase in earlier? Do you get any capacity online this year? Or is this more into '25? And then if anything is kind of baked into the guide for these capacity adds this year?

好的。這很有幫助。然後就產能擴張而言，我認為在第三季度，您列出了您正在投資的領域。能談談哪些內容較早開始分階段實施嗎？今年有線上容量嗎？或者這更接近'25？那麼，今年新增產能的指引是否包含了一些內容呢？

We do start to see, as I mentioned, in terms of kind of what holds the margin expansion back a little bit is the fact that we are, in fact, bringing on and starting up new lines and new facilities beginning certainly, a lot of the spending in Q1, but certainly in the second half of the year, we start to see some of that capacity come free to the point where we actually have the ability to deliver more. So it's really second half of this year and then into 2025 in earnest.

正如我所提到的，我們確實開始看到，就阻礙利潤率擴張的原因而言，我們實際上正在引進和啟動新的生產線和新設施，當然，許多第一季的支出，但肯定是在今年下半年，我們開始看到一些產能免費釋放到我們實際上有能力提供更多的程度。所以其實是今年下半年，然後是 2025 年。

Our next question is from Phil Buller from Berenberg.

我們的下一個問題來自 Berenberg 的 Phil Buller。

We've talked about capacity constraints several times. It sounds like you're pretty much at capacity in places. And I know you flagged this $1 billion of investment. I guess I'm wondering if $1 billion is actually sufficient to capture with that -- that growth that's yours to lose, I guess, as I'm sure you get a really nice return on making those kinds of investments. So do you see an opportunity to invest more beyond $1 billion for CapEx expansion? Or are you choosing not to do so because of these bottlenecks like other people's labor, perhaps meaning you don't necessarily need to invest today and instead can do a bit more on the pricing side? That's question one.

我們已經多次討論過容量限制。聽起來你在某些地方已經滿了。我知道您標記了這 10 億美元的投資。我想我想知道 10 億美元是否真的足以捕捉到這一點——我想，你可能會失去這種增長，因為我確信進行此類投資你會得到非常好的回報。那麼，您是否認為有機會投資超過 10 億美元用於資本支出擴張？或者您是否因為其他人的勞動力等瓶頸而選擇不這樣做，也許這意味著您今天不一定需要投資，而是可以在定價方面做更多的事情？這是問題一。

I appreciate the question. And as you can imagine, we're spending a lot of time right now internally reassessing and reevaluating whether or not we're doing enough. The $1 billion, by the way, that's an incremental number that's on top of the base. So I just want to make sure I clarify that. But we don't -- we don't intend to be the bottleneck here. We want to make sure that we have all of the capacity in place to deal with the growth that we see, the forecast that we're getting from our customers. So we are not constraining ourselves with respect to the investments. .

我很欣賞這個問題。正如你可以想像的那樣，我們現在花了很多時間在內部重新評估和評估我們是否做得足夠。順便說一句，10 億美元是在基數之上的增量數字。所以我只想確保我澄清這一點。但我們不——我們不想成為這裡的瓶頸。我們希望確保我們擁有足夠的能力來應對我們所看到的成長以及我們從客戶那裡得到的預測。因此，我們不會在投資上限制自己。 。

One of the good things about our business model overall, and I remind the group is that we do tend to be relatively asset light. A lot of what we do in the electrical business is assembly and test. So we can bring on relatively significant amounts of capacity for relatively speaking, not a lot of CapEx dollars. And so we do intend to revisit the number given the fact that our forecasts are going up especially in certain verticals like data center to make sure that we do have enough capacity.

整體而言，我們的商業模式的好處之一是，我們確實傾向於相對輕資產。我們在電氣行業所做的工作很多都是組裝和測試。因此，相對而言，我們可以帶來相對大量的產能，而不是大量的資本支出。因此，考慮到我們的預測正在上升，特別是在資料中心等某些垂直領域，我們確實打算重新審視這個數字，以確保我們確實有足夠的容量。

And on that topic, I guess, an extension of it, the competitive landscapes when markets are as great as this, normally someone tries to find a way to play perhaps by adding capacity. Are you seeing any shift in market shares either from traditional players or from new entrants, please?

關於這個主題，我想，它的延伸，當市場如此之大時的競爭格局，通常有人試圖透過增加容量來找到參與方式。請問您是否發現傳統企業或新進業者的市佔率發生了變化？

Yes. No. I mean, not particularly. I mean everybody is obviously adding capacity. The market is good for everyone right now. One of the things that we tried to give you a sense for how we're doing is that by providing some of these win rate numbers that we showed you from mega projects, some of the win rate numbers that we showed you for non-res construction projects is an indicator of the fact that we think we're doing very well in the context of this expanding market. And so I'm not -- I don't anticipate dramatic share shifts in the market, especially in a period of time when the industry is sold out in so many places.

是的。不，我的意思是，不是特別。我的意思是每個人顯然都在增加容量。現在的市場對每個人都有好處。我們試圖讓您了解我們正在做的事情之一是，透過提供我們向您展示的大型專案的一些獲勝率數字、我們向您展示的非資源的一些獲勝率數位建設專案表明我們認為在這個不斷擴大的市場背景下我們做得非常好。因此，我預計市場份額不會發生劇烈變化，尤其是在該行業在許多地方都已售罄的時期。

And the other thing I would tell you in terms of -- we oftentimes get the question around new entrants, Chinese competitors and others coming into our market. And I would say that we really are not seeing any material impact from, let's say, the Chinese or other electrical equipment providers in the North America market. We have a strong position here. We have an outstanding channel. We're absolutely well known in the market. The bigger, the more complex the project, the more likely they are to pick a company like Eaton. So I think we're just very well positioned for the future here.

我要告訴你的另一件事是——我們經常會遇到有關新進入者、中國競爭對手和其他進入我們市場的人的問題。我想說的是，我們確實沒有看到來自北美市場的中國或其他電氣設備供應商的任何實質影響。我們在這裡擁有強大的地位。我們有一個出色的管道。我們在市場上絕對是眾所周知的。專案越大、越複雜，他們就越有可能選擇像伊頓這樣的公司。所以我認為我們已經為未來做好了充分的準備。

Our next question is from Nigel Coe from Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Nigel Coe。

The piece negotiation numbers are just extraordinary. I just want to make sure I understand the definitions. So would a negotiation be where you have an active negotiation or RFP in place with a -- and this represents the dollar number of potential contracts under negotiation. And then, when you think about, say, a data center or especially data center given the permitting and power challenges, would that project be fully permitted before you get into a negotiation situation?

談判的單件數量非同尋常。我只是想確保我理解這些定義。因此，談判是指您與某個人進行積極的談判或 RFP，這代表了正在談判的潛在合約的美元金額。然後，當您考慮一個資料中心，或者特別是考慮到許可和電力挑戰的資料中心時，在進入談判狀態之前該專案是否會得到完全許可？

Yes. The answer is yes and yes. Negotiation would be a place where we are actually in an active negotiation in response to an RFP, request for proposal a request for quote. And certainly, if you think about data centers and others, once again, these projects tend to be already permitted down the road. As I did mention in some of the outbound data, there's always been a level of cancellations, especially when you look at some of these mega projects, and we talked about in my outbound commentary that the cancellation rate that we're seeing is around 10%. That rate is actually below what we've seen historically, but there's always going to be a certain level of cancellations in any of these projects, but they -- absolutely these tend to be or generally approved projects before we get to a negotiation.

是的。答案是肯定的。談判是我們實際上正在進行積極談判以回應 RFP、徵求建議書和報價請求的地方。當然，如果你再考慮一下資料中心和其他項目，這些項目往往已經獲得批准。正如我在一些出境數據中提到的，總是存在一定程度的取消，特別是當你查看其中一些大型項目時，我們在我的出境評論中談到，我們看到的取消率約為 10 % 。這個比率實際上低於我們歷史上看到的水平，但這些項目中總會有一定程度的取消，但在我們進行談判之前，這些項目絕對是或普遍批准的項目。

Okay. And I know you've got about 10 questions on capacity. So let's throw another one. Get away from the new greenfield capacity, but thinking about your existing footprint, are there opportunities to add another line or another shift extend over time to increase capacity in existing footprints? Or is there just to be constraint and that's just not on the table?

好的。我知道您有大約 10 個關於容量的問題。那麼讓我們再丟一個。遠離新的綠地產能，但考慮一下您現有的佔地面積，是否有機會隨著時間的推移添加另一條生產線或另一個班次以增加現有佔地面積的產能？還是只是為了限製而沒有擺在桌面上？

Yes. I mean I think it varies depending upon which product line you're talking about. In some cases, it is, in fact, us adding a line in existing footprint because we do have capacity to do it. In some cases, it's adding additional shifts, utilizing existing assets. But in some cases, it means a new greenfield facility, and we've had to, in fact, stand up some additional manufacturing plants to deal with the growth that we're seeing. So it's really a combination of all of those and varies depending upon which particular product line or business you're referring to.

是的。我的意思是，我認為這取決於您所談論的產品線。在某些情況下，事實上，我們是在現有的佔地面積中添加一條生產線，因為我們確實有能力做到這一點。在某些情況下，它會利用現有資產增加額外的班次。但在某些情況下，這意味著新的新建工廠，事實上，我們必須建立一些額外的製造工廠來應對我們所看到的成長。因此，它實際上是所有這些的組合，並且根據您所指的特定產品線或業務而有所不同。

Okay. Thanks, guys. We have reached to the end of the call. As always, our team will be available to address any follow-up questions. Thanks for joining us, and have a great day, guys.

好的。多謝你們。我們的通話已經結束。像往常一樣，我們的團隊將隨時解答任何後續問題。感謝您加入我們，祝大家有美好的一天。

All right. Thank you.

好的。謝謝。

Thank you. And ladies and gentlemen, that does conclude our conference for today. Thank you for your participation and for using AT&T TeleConference. You may now disconnect.

謝謝。女士們、先生們，我們今天的會議到此結束。感謝您的參與和使用 AT&T TeleConference。您現在可以斷開連線。