伊頓 (ETN) 2024 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by, and welcome to the Eaton Second-Quarter 2024 Conference Call.

女士們、先生們，感謝你們的耐心等待，並歡迎參加伊頓 2024 年第二季電話會議。

At this time, all participants are in a listen-only mode.

此時，所有參與者都處於只聽模式。

Later, we will conduct a question-and-answer session.

隨後，我們將進行問答環節。

(Operator Instructions) And as a reminder, today's call is being recorded.

（操作員說明）謹此提醒，今天的通話正在錄音。

I would now like to turn the conference over to your host.

現在我想將會議轉交給東道主。

Please go ahead.

請繼續。

Good morning.

早安.

Thank you all for joining us for Eaton's second quarter 2024 earnings call.

感謝大家參加伊頓 2024 年第二季財報電話會議。

With me today are Craig Arnold, our Chairman and CEO; and Olivier Leonetti, Executive Vice President and Chief Financial Officer.

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。

Our agenda today includes operating remarks by Craig, then he will turn it over to Oliver who will highlight the company's performance in the second quarter.

我們今天的議程包括克雷格的營運講話，然後他將把它交給奧利佛，奧利佛將重點介紹公司第二季的業績。

As we have done in our past calls, we'll be taking questions at the end of Craig's closing commentary.

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.

我們今天要討論的新聞稿和簡報已發佈在我們的網站上。

This presentation, including adjusted earnings per share, adjusted free cash flow and other non-GAAP measures.

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。

They are reconciled in the appendix.

它們在附錄中進行了協調。

A webcast of this call is accessible on our website and will be available for replay.

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。

I would like to remind you that our commentary today will include statements related to the expected future results of the Company and are therefore forward-looking statements.

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。

Our actual results may differ materially from our forecasted projection due to a wide range of risks and uncertainties that are described in our earnings release and the presentation.

由於我們的收益發布和演示中描述的各種風險和不確定性，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.

好的。

Thanks, Yan.

謝謝，嚴。

We'll start with some highlights on page 3.

我們將從第 3 頁的一些要點開始。

And I'll lead off by noting that we delivered another strong quarter, and we're pleased with the first half of the year.

首先我要指出的是，我們又實現了強勁的季度業績，我們對今年上半年感到滿意。

Our teams continue to deliver on our commitments propelled by strong markets and good execution, exceeding our expectations and consensus on strong revenue, margins and earnings per share growth.

在強勁的市場和良好的執行力的推動下，我們的團隊繼續兌現我們的承諾，超越了我們對強勁收入、利潤率和每股盈餘成長的預期和共識。

We generated adjusted EPS of $2.73 in the quarter, an all-time record and up 24% from prior year.

本季調整後每股收益為 2.73 美元，創歷史新高，比去年同期成長 24%。

We also delivered record segment margins of 23.7%, up 210 basis points from last year.

我們也創造了 23.7% 的創紀錄分部利潤率，比去年提高了 210 個基點。

And our markets continue to be strong.

我們的市場持續強勁。

On a rolling 12-month basis, electrical orders were up 9% and aerospace orders increased by 4%.

在連續 12 個月的基礎上，電氣訂單增加了 9%，航空航太訂單增加了 4%。

This led to another quarter of growing and record backlogs, up 27% in Electrical and 14% Aerospace with strong book-to-bill ratios.

這導致了另一個季度的積壓訂單成長並創下歷史新高，其中電氣行業增長了 27%，航空航天行業增長了 14%，訂單出貨比強勁。

The strength in our orders and backlogs continue to support our view that the megatrends will keep the company growing for some time to come.

我們的訂單和積壓訂單的強勁勢頭繼續支持我們的觀點，即大趨勢將使公司在未來一段時間內保持成長。

We're in the early stages and once again, our markets are well positioned for the future.

我們正處於早期階段，我們的市場再次為未來做好了準備。

And our growing backlog allows us to once again raise our full year guidance.

我們不斷增加的積壓訂單使我們能夠再次提高全年指引。

We're raising our guidance on organic growth, segment margins adjusted EPS and cash flow for the year.

我們正在提高對今年有機成長、部門利潤率調整後每股收益和現金流的指導。

On balance, we're very pleased with our results, and we're well positioned for the second half of the year.

總的來說，我們對我們的結果非常滿意，並且我們為今年下半年做好了準備。

Turning to page 4.

翻到第 4 頁。

We once again are sharing the key trends in end markets that are expected to drive Eaton's long-term growth.

我們再次分享終端市場的主要趨勢，這些趨勢預計將推動伊頓的長期成長。

The broad number of megatrends noted on this chart have created and will continue to create a strong growth environment for the above end markets.

此圖表中指出的眾多大趨勢已經並將繼續為上述終端市場創造強勁的成長環境。

And Eaton is uniquely positioned in that these are our primary end markets.

伊頓的獨特地位在於這些是我們的主要終端市場。

As a reminder, we're in the early phase and expect to see growth for years to come.

提醒一下，我們正處於早期階段，預計未來幾年會出現成長。

Today, we'll continue our practice of covering one of these megatrends and how it's impacting growth in one of our key markets.

今天，我們將繼續報導這些大趨勢之一以及它如何影響我們主要市場之一的成長。

Last quarter, we gave an end market update on our industrial facilities and markets as well as our latest view on growth expectations in the rapidly growing data center market.

上季度，我們提供了有關工業設施和市場的終端市場最新情況，以及我們對快速成長的資料中心市場成長預期的最新看法。

Today, we'll once again provide an update on reindustrialization through the lens of mega projects where the activity just remains extremely robust.

今天，我們將再次透過大型專案的視角提供再工業化的最新情況，這些專案的活動仍然非常強勁。

And we'll provide a summary of our growth outlook for our single largest end market commercial and institutional facilities.

我們將總結我們最大的單一終端市場商業和機構設施的成長前景。

Before turning our attention to a specific market, we did want to once again remind you of the broad-based nature of our growth expectations.

在將注意力轉向特定市場之前，我們確實想再次提醒您我們成長預期的廣泛性。

So, turning to slide 5.

因此，轉到投影片 5。

We summarize the growth rates in our key end markets.

我們總結了主要終端市場的成長率。

This data has not changed from what we shared in recent quarters or at our technology showcase earlier this year.

該數據與我們最近幾個季度或今年早些時候的技術展示中分享的數據沒有變化。

And I'd say, in many ways, this is a once-in-a-lifetime opportunity.

我想說，從很多方面來說，這是一個千載難逢的機會。

In that the megatrends we shared are having a broad and significant impact on the growth outlook for most of our end markets, and we're seeing the benefit in our sales results, and more significantly in our orders, backlog and negotiation pipeline, all of which are at record levels and growing.

我們分享的大趨勢對我們大多數終端市場的成長前景產生了廣泛而重大的影響，我們看到了銷售業績的好處，更重要的是我們的訂單、積壓訂單和談判管道，所有這些達到創紀錄的水平並且還在增長。

And we'll share in a few slides, we're investing to support the orders and commitments that we received from our customers.

我們將在幾張投影片中分享，我們正在投資以支持我們從客戶那裡收到的訂單和承諾。

Turning to slide 6 in the presentation.

前往簡報中的投影片 6。

We once again provide a summary of mega projects that have been announced in January of 2021 in the North America market.

我們再次總結了 2021 年 1 月在北美市場宣布的大型專案。

And as a reminder, a mega project is a project with an announced value of $1 billion or more, and the list now includes 444 projects and $1.4 trillion of cumulative value.

需要提醒的是，大型項目是指宣布價值 10 億美元或以上的項目，目前包括 444 個項目，累計價值 1.4 兆美元。

This is double where we were this time last year, and the backlog for mega projects now stands at $1.6 trillion, up some 25%.

這是去年這個時候的兩倍，大型專案的積壓目前達到 1.6 兆美元，成長了約 25%。

It's important to point out that we have not seen any slowdown in the number of announced projects.

需要指出的是，我們沒有看到已宣布的項目數量出現任何放緩。

In fact, Q2 was one of the strongest quarters ever.

事實上，第二季度是有史以來最強勁的季度之一。

Recently, we've seen data center and power generation/renewable projects take the lead in new project announcements, these two project types represent some 40% of announced projects in the last 12 months.

最近，我們看到資料中心和發電/再生能源專案在新專案公告中處於領先地位，這兩種專案類型約佔過去 12 個月已發布專案的 40%。

And the cancellation rate continued to be modest, around 11% which is well below historical levels.

取消率仍然較低，約 11%，遠低於歷史水準。

Note that only 15% of these projects have started, and for projects that have started, we've won over $1.4 billion of orders and our win rate has been approximately 40%.

請注意，這些項目中只有 15% 已經啟動，對於已經啟動的項目，我們贏得了超過 14 億美元的訂單，我們的中標率約為 40%。

We're actively negotiating another $1.3 billion of electrical customers.

我們正在積極談判另外 13 億美元的電力客戶。

There's lots more to come here.

還有很多事情要來這裡。

Turning to slide 7.

轉到投影片 7。

We continue to highlight the commercial and industrial end markets.

我們繼續專注於商業和工業終端市場。

For 2023, commercial and industrial institutional end markets represented 20% of total Eaton sales and 28% of our electrical sales.

到 2023 年，商業和工業機構終端市場佔伊頓總銷售額的 20% 和電氣銷售額的 28%。

And for Eaton overall, we estimate that new office real estate exposure is only 2% to 3% of our revenues.

對於伊頓整體而言，我們估計新辦公大樓房地產曝險僅占我們收入的 2% 至 3%。

We noted this has been a concerning point for some of you, but as you can see, it represents a very small part of our sales.

我們注意到這對你們中的一些人來說是一個令人擔憂的問題，但正如你們所看到的，它只占我們銷售額的一小一部分。

While the entire category is growing, we expect to see significant strength in the institutional infrastructure segments, which represent 50% of our C&I exposure in Electrical Americas.

雖然整個類別都在成長，但我們預計機構基礎設施領域將表現強勁，該領域占我們在電氣美洲 C&I 業務中的 50%。

Institutional infrastructure includes education, health care, government and includes waste and wastewater.

機構基礎設施包括教育、醫療保健、政府，也包括廢棄物和廢水。

I'd also point out that the electrical content in these two segments is much higher than office buildings and other light industrial projects -- excuse me, light commercial projects.

我還想指出，這兩個部分的電力含量遠高於辦公大樓和其他輕工業項目——對不起，輕商業項目。

And as noted, the same set of megatrends, including digitalization, energy transition and stimulus spending are also driving out growth in this segment. and something that we expect to continue for years to come.

如上所述，包括數位化、能源轉型和刺激支出在內的同一組大趨勢也正在推動該領域的成長。我們預計這種情況將在未來幾年持續下去。

On slide 8, we provide an overview of the products and software that we sell as part of our commercial and institutional building portfolio.

在投影片 8 中，我們概述了我們作為商業和機構建築產品組合的一部分所銷售的產品和軟體。

We include this slide to provide a perspective on how broadly we play across the electrical infrastructure and buildings.

我們添加這張投影片是為了提供有關我們在電力基礎設施和建築領域的廣泛應用的視角。

In fact, we have the industry's broadest set of electrical solutions.

事實上，我們擁有業界最廣泛的電氣解決方案。

Some of the newer categories for us include energy storage, EV charging network managers, microgrid controllers that control energy behind the meter.

對我們來說，一些較新的類別包括能源儲存、電動車充電網路管理器、控制電錶後面能源的微電網控制器。

In addition to the entire suite of digitally enabled hardware, we have our bright layer software suite that does energy management across the building and campuses, all of which are supported our comprehensive service organization.

除了整套數位化硬體之外，我們還擁有明亮層軟體套件，可在整個建築和園區內進行能源管理，所有這些都得到我們綜合服務組織的支持。

On slide 9, we want to provide an update on our incremental growth investments.

在投影片 9 上，我們希望提供增量成長投資的最新資訊。

As a reminder, we're investing more than $1 billion of incremental capital to support growth with $750 million in North America over the next few years.

提醒一下，我們將在未來幾年投資超過 10 億美元的增量資本，其中 7.5 億美元用於支持北美地區的成長。

These investments expand our production capacity for a variety of products and support most of our electrical end markets.

這些投資擴大了我們各種產品的生產能力，並支持我們大部分的電氣終端市場。

As you're aware, the market has several capacity constraints.

如您所知，市場存在多種容量限制。

So, we're working closely with customers to ensure that our capacity additions are in line with the demand and in many cases, our contractual agreements.

因此，我們正在與客戶密切合作，以確保我們的產能增加符合需求，並在許多情況下符合我們的合約協議。

To provide you with a feeling of the magnitude of these investments, will impact 25 of our sites and add over 2 million square feet of manufacturing space.

為了讓您感受到這些投資的規模，將影響我們的 25 個工廠，並增加超過 200 萬平方英尺的製造空間。

Overall, these projects remain on track with many sites already ramping up new capacity, additional production capacity will be coming online later this year and into the first half of 2025.

總體而言，這些項目仍處於正軌，許多工廠已經在增加新產能，額外的產能將於今年稍後和 2025 年上半年上線。

To note a couple of recent milestones, we recently opened a new state-of-the-art campus in Helsinki to increase capacity of UPS systems, and this obviously includes our latest energy-aware UPS.

值得一提的是，我們最近在赫爾辛基開設了一個最先進的新園區，以提高 UPS 系統的容量，這顯然包括我們最新的能源感知 UPS。

This is actually the industry's leading UPS and is 30% smaller than most of the competitive products.

這實際上是業界領先的 UPS，並且比大多數競爭產品小 30%。

And most recently, we signed an agreement to build a new electrical campus in Dubai, to expand our commercial, manufacturing and support functions in the rapidly growing Middle East region.

最近，我們簽署了一項協議，將在杜拜建造一個新的電氣園區，以擴大我們在快速發展的中東地區的商業、製造和支援功能。

Turning to page 10.

翻到第10頁。

We're excited to have closed a strategic investment in NordicEPOD.

我們很高興完成對 NordicEPOD 的策略性投資。

NordicEPOD designs and assembles standardized power modules for the European data center market.

NordicEPOD 為歐洲資料中心市場設計和組裝標準化電源模組。

What's unique about their solution is that it's designed to standardize and it's a pre-engineered system that allows for faster market response.

他們的解決方案的獨特之處在於，它是為標準化而設計的，並且是一個預先設計的系統，可以實現更快的市場反應。

The standard power module or EPOD, contains all the critical power, electrical gear, backup power, cooling and control systems needed to support a data center.

標準電源模組或 EPOD 包含支援資料中心所需的所有關鍵電源、電氣設備、備用電源、冷卻和控制系統。

The EPODs are manufactured in Norway are designed to operate in harsh weather environments, and can supply up to 2 megawatts of electrical power.

EPOD 在挪威製造，設計用於在惡劣的天氣環境下運行，可提供高達 2 兆瓦的電力。

I'd also note that the power modules are an increasingly preferred approach for many of the data center customers in Europe.

我還想指出，電源模組越來越受到歐洲許多資料中心客戶的青睞。

And Eaton will naturally supply a significant amount of the electrical equipment and services.

伊頓自然會提供大量的電氣設備和服務。

This is an outstanding new platform that will allow Eaton to increase our participation in the rapidly growing European data center market.

這是一個出色的新平台，將使伊頓能夠更多地參與快速成長的歐洲資料中心市場。

Now I'll turn it over to Olivier, who will take us through the financial results for the quarter.

現在我將把它交給奧利維爾，他將向我們介紹本季的財務表現。

Thanks, Craig.

謝謝，克雷格。

I'll start by providing a summary of our Q2 results.

首先，我將提供第二季業績的摘要。

We posted record sales of $6.4 billion, up 8% in total and up 9% organically.

我們的銷售額達到創紀錄的 64 億美元，總額成長 8%，有機成長 9%。

This represents nine quarters of growth of 20% on a two-year stack.

這意味著兩年來有九個季度實現了 20% 的成長。

We posted record segment profit and margins.

我們公佈了創紀錄的部門利潤和利潤率。

Operating profit grew 90% and segment margin expanded 210 basis points to 23.7%.

營業利益成長 90%，部門利潤率擴大 210 個基點至 23.7%。

Adjusted EPS of $2.73 increased by 24% over the prior year.

調整後每股收益為 2.73 美元，比上年增長 24%。

This is a quarterly record and well above the high end of our guidance range.

這是季度記錄，遠高於我們指導範圍的上限。

This performance resulted in Q2 record operating cash flow of $946 million, up 11% year over year, and Q2 record free cash flow of $759 million, up 10% versus prior year.

這項業績使得第二季營運現金流創紀錄地達到 9.46 億美元，年增 11%，第二季自由現金流創紀錄達到 7.59 億美元，比去年同期成長 10%。

On slide 12, we summarize Electrical Americas, very strong results.

在投影片 12 上，我們總結了 Electrical Americas 非常出色的成果。

We continue to raise the bar, setting new records for sales, operating profit and margin.

我們不斷提高標準，創造銷售額、營業利潤和利潤率的新記錄。

Organic sales growth remained strong at 13%, which reflects strength in data center and industrial end markets.

有機銷售成長依然強勁，達到 13%，這反映了資料中心和工業終端市場的實力。

On two-year stack, organic growth is up 32%.

兩年來，有機成長高達 32%。

Electrical Americas has generated double-digit organic growth for 10 consecutive quarters.

Electrical Americas 已連續 10 個季度實現兩位數的有機成長。

Record operating margin of 29.9% was up 300 basis points versus prior year, benefiting from higher sales and manufacturing efficiencies that were partially offset by higher costs to support growth initiatives.

營業利潤率達到創紀錄的 29.9%，比上年增長 300 個基點，這得益於銷售和製造效率的提高，但支持增長計劃的成本上升部分抵消了這一提高。

On a rolling 12-month basis, orders were up 11%, demonstrating strength across the various megatrends.

在連續 12 個月的基礎上，訂單成長了 11%，展現了各種大趨勢的力量。

We have particular strength in the data center end market.

我們在資料中心終端市場具有特殊的優勢。

Also, our major project negotiations pipeline in Q2 was up 18% versus prior year and up 42% since Q2 2022.

此外，我們第二季的主要專案談判管道比去年增加了 18%，自 2022 年第二季以來增加了 42%。

Electrical Americas backlog increased 29% year-over-year with a book-to-bill ratio of 1.2 on a rolling 12-month basis.

Electrical America 的積壓訂單年增 29%，12 個月滾動式訂單出貨比為 1.2。

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.

這些結果強調了長期趨勢、強勁的執行力和強勁的積壓的推動力，使我們能夠提高今年的成長和利潤指導，我們將在稍後的演示中討論這一點。

This chart summarizes the results for our Electrical Global segment.

這張圖表總結了我們全球電氣部門的結果。

Organic growth was up 3.5%, partially offset by FX headwinds.

有機成長成長 3.5%，部分被外匯不利因素抵銷。

We have strength in data center markets, partially offset by weaknesses in residential end markets.

我們在資料中心市場擁有優勢，但部分被住宅終端市場的弱點所抵消。

Regionally, we continue to see strength in our APAC and GEIS businesses, partially offset by weakness in our EMEA business.

從地區來看，我們繼續看到亞太地區和 GEIS 業務的強勁勢頭，但部分被歐洲、中東和非洲業務的疲軟所抵消。

Operating margin of 19% was up 50 basis points versus prior year, driven by higher sales and operating efficiencies, partially offset by wage inflation.

由於銷售和營運效率提高，營業利潤率為 19%，較上年增加 50 個基點，但部分被薪資上漲所抵銷。

Orders were up 7% on a rolling 12-month basis with strength in data center and utility end markets.

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 7%。

Book-to-bill continues to remain strong.

訂單出貨量持續保持強勁。

Q2 was 1.1 on a rolling 12-month basis.

以 12 個月滾動計算，第二季為 1.1。

Before moving to our industrial businesses, I'd like to briefly recap the combined electrical segments.

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。

For Q2, we posted organic growth of 10% and segment margin of 26% which was up 260 basis points over prior year.

第二季度，我們的有機成長為 10%，部門利潤率為 26%，比去年同期成長 260 個基點。

On a rolling 12-month basis, orders were up 9%, and our book-to-bill ratio for our electrical sector remains very strong at 1.1. We remain confident in our positioning for continued growth with strong margins in our overall electrical business.

在連續 12 個月的基礎上，訂單增長了 9%，我們電氣行業的訂單出貨比仍然非常強勁，為 1.1。我們對整體電力業務的持續成長和強勁利潤充滿信心。

page 14 highlights our Aerospace segment.

第 14 頁重點介紹了我們的航空航天部門。

We posted record sales and a Q2 record operating profit.

我們公佈了創紀錄的銷售額和第二季創紀錄的營業利潤。

Organic growth was 13% for the quarter, driven by strength in commercial OEM, commercial aftermarket and military OEM.

在商業 OEM、商業售後市場和軍事 OEM 實力的推動下，本季有機成長 13%。

Operating margin of 21.5% was down 100 basis points year over year, driven by operating inefficiencies and higher costs to support growth initiatives that were partially offset by higher sales.

營運利潤率為 21.5%，年減 100 個基點，原因是營運效率低下以及支援成長計畫的成本上升，但銷售額成長部分抵消了這一影響。

On a rolling 12-month basis, orders increased 4%, driven by commercial OEM and aftermarket.

在商業 OEM 和售後市場的推動下，連續 12 個月的訂單成長了 4%。

Within the quarter, orders increased 21% year-over-year with commercial OEM up 22% and military OEM up 53%.

本季訂單年增 21%，其中商業 OEM 成長 22%，軍用 OEM 成長 53%。

Year-over-year backlog increased 14% and was up 3% sequentially.

積壓訂單較去年同期增加 14%，較上季增加 3%。

On a rolling 12-month basis, our book-to-bill for our Aerospace segment remains strong at 1.1. And we are pleased with more than $2 billion Life of Program wins in the quarter.

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。我們對本季超過 20 億美元的專案生命週期收益感到高興。

Moving to our vehicle segment on page 15.

轉到第 15 頁的車輛部分。

In the quarter, total revenue was down 4%, including a 3% organic decline and 1 percentage point of unfavorable FX.

本季總營收下降 4%，其中有機下降 3%，匯率不利則下降 1 個百分點。

Weakness in the North America light vehicle market and a European truck was partially offset by strength in South America.

北美輕型汽車市場和歐洲卡車的疲軟被南美的強勢所部分抵消。

Operating margin came in at 18%, 270 basis points above prior year, driven by operating efficiencies offsetting lower volume.

由於營運效率抵消了銷售下降的影響，營運利潤率為 18%，比去年同期高 270 個基點。

And we are pleased to have won $83 million in mature year sales across our commercial and passenger vehicle portfolio.

我們很高興我們的商用車和乘用車產品組合年銷售額達到 8300 萬美元。

On page 16, we show results for our e-mobility business.

在第 16 頁，我們展示了我們的電動車業務的結果。

Sales were up 18% on an organic and total basis.

有機銷售額和總銷售額成長了 18%。

Our organic growth significantly outperformed the market, driven by new program ramp-ups in the European market.

在歐洲市場新項目的推動下，我們的有機成長顯著優於市場。

Operating profit was $2 billion, and we continue to incur large cost related to new programs expected to ramp up over the next coming quarters.

營業利潤為 20 億美元，我們將繼續承擔與預計在未來幾季增加的新項目相關的大量成本。

In the quarter, we also launched major power protection programs, battery disconnect units and Breaktor and were awarded additional $82 million in mature year sales.

在本季度，我們還推出了主要的電源保護計劃、電池斷開裝置和 Breaktor，並獲得了 8,200 萬美元的額外年銷售額。

Moving to page 17.

移至第 17 頁。

We show our Electrical and Aerospace backlog updated through Q2.

我們展示了截至第二季更新的電氣和航空航太積壓訂單。

As you can see, we continue to build backlog with electrical stepping up to $11.4 billion and Aerospace reaching $3.5 billion for a total of $14.9 billion.

正如您所看到的，我們繼續積壓訂單，其中電氣領域的訂單達到 114 億美元，航空航太領域的訂單達到 35 億美元，總計 149 億美元。

Versus prior year, our backlogs have grown by 27% in electrical and 14% in Aerospace.

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 14%。

Electrical backlog benefited from acceleration in order intake from tailwinds of the secular trends, including hyperscale orders within the data center end market.

電力積壓受惠於長期趨勢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。

As noted earlier, book-to-bill Electrical and Aerospace are 1.1 and 1.1, respectively.

如前所述，電氣和航空航太領域的訂單出貨比分別為 1.1 和 1.1。

The continued growth in our backlog underscores our confidence in 2024 and beyond.

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 18.

翻到第18頁。

We show a summary of our end market growth assumptions for the year.

我們總結了今年的終端市場成長假設。

Overall, our markets continue to perform as expected, and most of these indicators have not changed from what we shared during our last two earnings calls.

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最近兩次財報電話會議中分享的內容相比沒有變化。

We are, however, seeing stronger-than-expected growth in data centers and in commercial and institutional markets in the US, which is why we're raising our revenue growth guidance for the year.

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成長指引的原因。

We continue to expect growth in about 80% of our end markets supported by the key megatrends of electrification, energy transition, reindustrialization and digitalization.

我們繼續預期約 80% 的終端市場將在電氣化、能源轉型、再工業化和數位化等關鍵大趨勢的支持下實現成長。

Moving to page 19, we show our fiscal year organic growth and operating margin guidance.

轉到第 19 頁，我們展示了本財年的有機成長和營業利潤率指引。

Overall, our 2024 organic growth is now expected to be between 8% and 9%, which is an increase of 50 basis points at the midpoint, raising our organic growth guidance in Electrical Americas by 150 basis points to 11.5% to 13.5% from 10% to 12% and in Aerospace by 100 basis points to 10% to 12% from 9% to 11%.

整體而言，我們目前預計2024 年有機成長將在8​​% 至9% 之間，即中點增加50 個基點，將我們在電氣美洲的有機成長指引從10 個基點提高150 個基點至11.5% 至13.5%。

We're lowering and tightening the range of our e-mobility organic growth guidance to 17% to 23% given the well-reported softening in some of these end markets, and we're reiterating the growth guidance for the remaining segments.

鑑於其中一些終端市場的疲軟情況，我們將電動車有機成長指導範圍降低並收緊至 17％ 至 23％，並且我們重申了其餘細分市場的成長指導。

For segment margins, we're increasing the company's margin guidance range by 50 basis points at the midpoint to 23.5%.

對於分部利潤率，我們將公司的利潤率指導範圍中位數上調 50 個基點，達到 23.5%。

This is driven by the improved outlook in Electrical Americas, where we're seeing strong demand and strong operational execution.

這是由美洲電氣前景改善所推動的，我們看到強勁的需求和強大的營運執行力。

In this segment, we're increasing our margin outlook by 90 basis points to a midpoint of 28.9%.

在這一領域，我們將利潤率預期上調 90 個基點，至中點 28.9%。

We're also reiterating our guidance for remaining segments, and we're well positioned to continue to deliver strong financial performance for the balance of the year.

我們也重申了對其餘細分市場的指導，並且我們有能力在今年餘下的時間裡繼續提供強勁的財務業績。

On the next page, we have additional guidance for metrics for 2024 and Q3.

在下一頁中，我們提供了有關 2024 年和第三季指標的其他指南。

For 2024, our adjusted EPS is expected to be between $10.65 and $10.75 a share, the $10.70 midpoint represents 17% growth in adjusted EPS over the prior year, a $0.55 increase over the initial 2024 guidance and a $0.30 increase over the prior guidance.

2024 年，我們調整後的每股收益預計在10.65 美元至10.75 美元之間，10.70 美元的中點代表調整後的每股收益比上一年增長17%，比2024 年最初指導增加0.55 美元，比之前的指導增加0.30 美元。

We tightened the range for free cash flow and now expect $4.2 billion to $4.4 billion for operating cash flow and $3.4 billion to $3.6 billion for free cash flow, an increase of $100 million at the midpoint on both measures.

我們收緊了自由現金流的範圍，現在預計營運現金流為 42 億至 44 億美元，自由現金流為 34 億至 36 億美元，這兩項指標的中點增加了 1 億美元。

For Q3, we expect organic growth to be between 8% and 9%, segment margins to be between 23.5% and 23.9% and adjusted EPS in the range of $2.73 to $2.83 a share.

對於第三季度，我們預計有機成長將在 8% 至 9% 之間，部門利潤率將在 23.5% 至 23.9% 之間，調整後每股收益將在 2.73 美元至 2.83 美元之間。

So let me just close with a summary on page 21.

讓我以第 21 頁的總結作為結尾。

Once again, the trends driving growth in our end markets continue to play out as we expected, even better in our Electrical Americas business, driven by data center markets and the reindustrialization trend that we're seeing across multiple markets in North America.

推動我們終端市場成長的趨勢再次如我們預期的那樣繼續發揮作用，在資料中心市場和我們在北美多個市場看到的再工業化趨勢的推動下，我們的電氣美洲業務表現甚至更好。

We also delivered a strong quarter of financial results and continue to see outstanding execution on our key initiatives across the Company.

我們也實現了強勁的季度財務業績，並繼續看到整個公司關鍵舉措的出色執行。

As a result, we raised our guidance for organic growth by 50 basis points our segment margins by 50 basis points and our adjusted EPS by $0.30 at the midpoint.

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 50 個基點，調整後每股收益中位數上調了 0.30 美元。

In the quarter, we were especially pleased to see the strength in our negotiations, our orders and our growth and backlog, all of which are at record levels, validating our medium- and long-term growth outlook.

在本季度，我們特別高興地看到我們的談判、訂單以及成長和積壓訂單的實力，所有這些都處於創紀錄的水平，驗證了我們的中長期成長前景。

So, we leave the quarter with a high level of confidence when we say Eaton will deliver higher growth, higher margins and consistent earnings growth for years to come.

因此，當我們表示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時，我們對本季充滿信心。

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

接下來，我將解答您可能提出的任何問題。

Thanks, Craig, for the Q&A today, please limit your opportunity to one question and one follow-up central ones for your cooperation.

謝謝克雷格今天的問答，請將您的機會限制在一個問題和一個後續核心問題上，以便您的合作。

With that, I will turn it over to the operator to give you guys the instruction.

這樣，我會把它交給操作員來給你們指示。

(Operator Instructions)

（操作員說明）

Joe Ritchie, Goldman Sachs.

喬·里奇，高盛。

Thank you.

謝謝。

Good morning, everyone.

大家，早安。

Good morning, Joe.

早安，喬。

Craig.

克雷格.

I want to start with, I guess, maybe just a longer-term question on.

我想，我想從一個長期問題開始。

I'm sure you witnessed what happened with the PJM auction this past week and how they saw record high prices.

我相信您親眼目睹了上週 PJM 拍賣會發生的情況以及他們如何創下創紀錄的高價。

I'm just trying to get an understanding for ultimately what that means for your utility business going forward and when you can maybe start to see an inflection.

我只是想最終了解這對您的公用事業業務的未來意味著什麼，以及您何時可能開始看到變化。

I know that business has been growing well, but maybe see a further inflection given how tight capacity is.

我知道業務一直成長良好，但鑑於產能緊張，可能會出現進一步的變化。

Yes.

是的。

I mean, as we've talked about, Joe, and I appreciate the question that the utility market is just one of many markets for us that we're absolutely thrilled about the growth prospects on -- I mean, as we talked about these big trends of beginning with energy transition, the electrification of the economy, climate change and the need to build grid resiliency.

我的意思是，正如我們所討論的，喬，我很欣賞這樣一個問題：公用事業市場只是我們對增長前景感到絕對興奮的眾多市場之一——我的意思是，正如我們所討論的那樣從能源轉型、經濟電氣化、氣候變遷和建立電網彈性的需要開始的大趨勢。

All of these factors converging at the same time are just creating a pretty unique set of conditions in terms of those opportunities into utility markets.

所有這些因素同時匯聚，為進入公用事業市場的機會創造了一系列非常獨特的條件。

And as we talked about before on this call, in one of the longest lead time products that probably exist in the electrical industries is getting an electrical transformer.

正如我們之前在本次電話會議上談到的，電氣行業中可能存在的交貨時間最長的產品之一就是電氣變壓器。

So, I'd say that business for us is it is a big part of the company, some 15% as we set up our total market exposure.

所以，我想說，對我們來說，業務是公司的重要組成部分，當我們建立總市場份額時，大約佔 15%。

We talked about our long-term growth rates being in the kind of the low teens for that business.

我們談到該業務的長期成長率處於十幾歲左右。

And so, we are already seeing quite attractive growth in the utility market, including in this current quarter, and we expect it to go on for some time to come.

因此，我們已經看到公用事業市場相當有吸引力的成長，包括在本季度，我們預計這種成長將持續一段時間。

Yes, that's helpful, Craig.

是的，這很有幫助，克雷格。

And I know I like that you guys highlighted the investments that you're making to increase capacity I guess if I take that 2 million plus in additional square footage, like what does that represent as a percentage of your total capacity today?

我知道我喜歡你們強調你們為增加容量而進行的投資，我想如果我額外增加 200 萬平方英尺，那麼這佔你們今天總容量的百分比是多少？

And then as you think about how much leeway that gives you flexibility that gives you in the coming years, does that make you good through 2027, 2028, like how much flexibility does this give you?

然後，當你思考未來幾年為你帶來多少靈活性的餘地時，這是否會讓你在 2027 年、2028 年表現出色，例如這會給你帶來多少靈活性？

I appreciate the question.

我很欣賞這個問題。

In terms of a percentage ad, I don't have that number off hand.

就廣告百分比而言，我手邊沒有這個數字。

So, we can certainly get that number for you.

因此，我們當然可以為您取得該號碼。

But I think the way to think about it is that in every one of those businesses where we are capacity constrained, we're making investments in capacity to deal with, let's call it, today, our midterm outlook.

但我認為思考這個問題的方法是，在我們產能受限的每項業務中，我們都在進行產能投資，以應對我們今天所說的中期前景。

Obviously, depending upon which piece of the business you're talking about, the response time to put on new capacity varies widely.

顯然，根據您所討論的業務領域，增加新容量的回應時間差異很大。

We can do it relatively quickly in our electric assemblies’ businesses in a business-like transformers for example, that go into lots of different markets, not just the utility market, the lead times there tend to be longer given the type of manufacturing.

我們可以相對較快地在我們的電氣組件業務中做到這一點，例如類似變壓器的業務，這些業務進入許多不同的市場，而不僅僅是公用事業市場，考慮到製造類型，那裡的交貨時間往往更長。

And so, I would just tell you that today, we're investing to win here.

所以，我只想告訴你們，今天我們投資是為了在這裡獲勝。

We're making the investments that our customers expect and need us to make.

我們正在進行客戶期望和需要我們進行的投資。

And in many cases, we're getting long-term commitments for customers to ensure that we're not putting in too much capacity.

在許多情況下，我們都會向客戶做出長期承諾，以確保我們不會投入過多的產能。

But I can just say it's something that we've done for a long time.

但我只能說這是我們長期以來所做的事情。

We know how to do it well, and we're going to be ready to support our customers as they continue to grow.

我們知道如何做好這件事，我們將準備好在客戶不斷發展的過程中為他們提供支援。

Appreciate the color.

欣賞顏色。

Thank you

謝謝

Thank you.

謝謝。

Jeff Sprague, Vertical Research Partners.

Jeff Sprague，垂直研究夥伴。

Hey, thank you.

嘿，謝謝你。

Good morning, everyone.

大家，早安。

Craig, really solid results and outlook.

克雷格，非常可靠的結果和前景。

As you may or may not be aware because you're not watching everybody else's prints like we are.

您可能知道也可能不知道，因為您不像我們一樣觀看其他人的照片。

But sort of the takeaway from the week has been companies, kind of missing and lowering or making the numbers but cutting organic growth on weaker project-related outlooks.

但本週的收穫是一些公司，他們的數字有所缺失、降低或增加，但由於專案相關前景疲軟而削減了有機成長。

And I'm not surprised you're outperforming given kind of the secular exposures you have.

考慮到您所擁有的長期風險敞口，我對您的表現優於您並不感到驚訝。

But where you have exposure to smaller projects or machine OEM and things like that.

但如果你接觸過較小的項目或機器 OEM 之類的事情。

Are you seeing pockets of weakness underneath the surface, again, obviously being masked by data centers and other things, but just kind of the general lay of the land and the industrial landscape out there?

您是否再次看到表面之下的弱點，顯然被資料中心和其他事物所掩蓋，但只是那裡的土地和工業景觀的整體佈局？

Hey, Jeff, appreciate that question.

嘿，傑夫，很欣賞這個問題。

And one of the things, if you recall that we've reported on during the last earnings call because one of the things we wanted to convey is that, we're spending a lot of time focusing on mega projects because it is a fundamental change from the historical patterns in the industry and the sheer number and size of them, and it is changing the dynamics of the business in terms of our order flows.

其中一件事，如果你還記得我們在上次財報電話會議上報告過的話，因為我們想要傳達的一件事是，我們花了很多時間專注於大型項目，因為這是一個根本性的變化從行業的歷史模式以及它們的絕對數量和規模來看，它正在改變我們訂單流的業務動態。

But the small projects as well, those projects that are under $1 billion, what we reported on the last earnings call is that we're seeing a very similar pattern of growth in projects under $1 billion.

但對於小型項目，即那些低於 10 億美元的項目，我們在上次財報電話會議上報告稱，我們看到 10 億美元以下項目的成長模式非常相似。

In fact, I don't recall the number off hand, but

事實上，我已經不記得電話號碼了，但是

--

--

16%.

16%。

16%, roughly, up 16%.

16%，粗略地說，上漲了16%。

So, we are really seeing a broad-based increase in our project-related business, whether it's the mega projects that we spend a lot of time talking about or the stuff that tends to be more of the smaller flow projects that we've always seen inside the business.

因此，我們確實看到了專案相關業務的廣泛成長，無論是我們花大量時間討論的大型項目，還是我們一直以來的小型流程項目企業內部可見。

And so, no, I would say today, we have not seen any let up at all in the level of activity.

所以，不，我今天要說的是，我們沒有看到活動水平有任何放鬆。

And as we talked about in the mega project slide, Q2 was one of the biggest quarters ever.

正如我們在大型專案幻燈片中談到的，第二季是有史以來最大的季度之一。

Those projects continue to come in at a significant rate.

這些項目繼續以顯著的速度進入。

Our negotiations overall, in our electrical business continued to be at record high levels.

我們的電氣業務整體談判繼續處於創紀錄的高水準。

And so, we're obviously mindful and watchful but we've not seen a slowdown.

因此，我們顯然非常謹慎和警惕，但我們並沒有看到放緩的情況。

And by the way, I'll assure you, by the way, we do to all the other prints as well.

順便說一句，我向你保證，我們也會處理所有其他印刷品。

We are obviously staying attuned to what's going on more broadly in the marketplace and our business continues to do well.

顯然，我們一直在關注市場上更廣泛的情況，並且我們的業務繼續表現良好。

Interesting stuff.

有趣的東西。

And then maybe just a little bit more color on the global side of electrical, Olivier, hit some of it in his prepared remarks.

然後，奧利維爾在他準備好的演講中談到了全球電氣方面的一些更多色彩。

But some of these secular forces ought to come to bear in Europe and elsewhere, eventually.

但其中一些世俗力量最終應該在歐洲和其他地方發揮作用。

Is it just resi weakness and kind of general kind of macro-related pressures that hold it back?

是否只是房地產疲軟和宏觀相關壓力阻礙了它的發展？

Obviously, I'm not expecting it to grow like Americas, but it just seems like there should be prospects for growth there to pick up maybe perhaps as we move into next year.

顯然，我並不期望它像美洲那樣增長，但似乎隨著我們進入明年，那裡的成長前景應該會有所回升。

Yes.

是的。

I think, I mean your statement is largely accurate that the megatrends that we talk about of energy transition, electrification, digitalization, all of those trends are just as relevant in Europe as they are in the North America market.

我認為，我的意思是，您的說法在很大程度上是準確的，我們談論的能源轉型、電氣化、數位化的大趨勢，所有這些趨勢在歐洲和北美市場都同樣重要。

I will say, though, if you think about some of the big differences in what's driving perhaps this outperformance in the US is really a lot of reindustrialization, a lot of investments in manufacturing and LNG and other sectors, data center, where you have manufacturing that is historically taking place in other regions of the world.

不過，我想說的是，如果你考慮推動美國這種優異表現的一些巨大差異，也許實際上是大量的再工業化，對製造業、液化天然氣和其他行業、數據中心、製造業的大量投資。

Now, those investments are being made in the US Obviously, these investments are also being helped and supported by a number of these stimulus programs as well.

現在，這些投資正在美國進行。

And so over time, we would clearly expect Europe to see more significant impact, although within those same verticals, data centers, for example, utilities, we are seeing good growth in our global businesses. not at the same extent as the US, but it's being overwhelmed by the macro market for sure in terms of the overall economy that we see in Europe, and you don't see the same reindustrialization trend taking place there.

因此，隨著時間的推移，我們顯然預期歐洲將受到更重大的影響，儘管在相同的垂直產業、資料中心（例如公用事業）中，我們的全球業務看到了良好的成長。其程度與美國不同，但就我們在歐洲看到的整體經濟而言，它肯定被宏觀市場壓垮了，而且你看不到那裡正在發生同樣的再工業化趨勢。

And the markets overall doing well, and we're pleased.

市場整體表現良好，我們很高興。

Great.

偉大的。

Thank you.

謝謝。

Andrew Obin, Bank of America.

安德魯‧奧賓，美國銀行。

Yes, good morning.

是的，早安。

Morning, Andrew.

早安，安德魯。

I just want to touch on maybe just digging a little bit more into AI data centers.

我只是想稍微深入了解一下人工智慧資料中心。

Can you just talk about sort of the pace of electrical orders and your win rate on -- specifically on the AI data center side?

您能否談談電力訂單的節奏以及您的獲勝率——特別是在人工智慧資料中心方面？

Andrew, I appreciate the question because, obviously, this is perhaps the hottest topic in the world right now in terms of what's going on with AI and how that's driving increased investments in data centers.

安德魯，我很欣賞這個問題，因為顯然，就人工智慧的發展以及人工智慧如何推動資料中心投資的增加而言，這可能是目前世界上最熱門的話題。

And as I think this group is well aware, these AI-centric or training data centers consume a lot more power and a lot more electricity than your conventional data center, so the basic cloud-based data centers.

我認為這個小組很清楚，這些以人工智慧為中心或訓練的資料中心比傳統資料中心消耗更多的電力和電力，因此基本的基於雲端的資料中心。

The first thing I would say is that when you think about the growth that we're seeing today in our data center business, and you think about the growth projections over time, very little of this today is a result of specific investments in AI.

我要說的第一件事是，當你思考我們今天在資料中心業務中看到的成長以及隨著時間的推移的成長預測時，你會發現今天的成長很少是人工智慧特定投資的結果。

It's coming.

它來了。

We're quoting a lot of projects.

我們引用了很多項目。

I think if you take a look at what the industry -- some of the industry leaders talked about last year, that 5% to 10% of their capital spending is an AI-related data centers.

我想如果你看看這個行業——一些行業領導者去年談到的，他們的資本支出的 5% 到 10% 是與人工智慧相關的資料中心。

So, I would say most of the growth related to this expansion that we expect to come is still out in front of us with respect to AI data centers.

因此，我想說，與我們預期的擴張相關的大部分成長在人工智慧資料中心方面仍然遙遙領先。

It's coming.

它來了。

And I'd say, in terms of its contribution to our orders, is very much aligned with that.

我想說，就其對我們訂單的貢獻而言，與此非常一致。

Most of the orders that we're getting, 90-plus percent of the orders that we're getting are really tied to your conventional data centers as more and more companies like our zone, move applications to the cloud from on-premise.

我們收到的大部分訂單，90% 以上的訂單實際上都與傳統資料中心相關，因為越來越多的公司（例如我們的區域）將應用程式從本地遷移到雲端。

If you think about this, this massive increase in data that we're all generating, consuming and storing, that's really what's driving the growth in data centers today.

如果你想一想，我們產生、消費和儲存的資料的大量增加，確實是當今資料中心成長的推動力。

In AI, I would tell you, it fell largely a future.

我告訴你，在人工智慧領域，它很大程度上是一個未來。

And in fact, when you look at the total backlog today, of data center projects close to $140 billion.

事實上，如果你看看今天的總積壓數據，你會發現資料中心專案接近 1,400 億美元。

And if you look at that in the context of historical build rates, that's eight years of production, and we haven't hit the inflection point yet for AI.

如果你從歷史建構率的角度來看，那是八年的生產時間，而我們還沒有達到人工智慧的轉折點。

So, we think what happens ultimately is that this market expansion and this build-out cycle just gets extended for quite a number of additional years.

因此，我們認為最終發生的情況是，這種市場擴張和建設週期會延長很多年。

Great to hear.

很高興聽到。

Thank you for a comprehensive answer.

感謝您的全面回答。

Another question, just a follow-up on capital allocation.

另一個問題，只是資本配置的後續。

Just buybacks, you bought back, I think, $740 million in the first half.

只是回購，我認為上半年你回購了 7.4 億美元。

So how should we be thinking about the cadence of buybacks for the balance of the year?

那我們該如何考慮今年剩餘時間的回購節奏呢？

Andrew, we see today based upon what we see in the market, a strong upside in the value of our stock.

安德魯，根據我們在市場上看到的情況，我們今天看到我們股票價值的強勁上漲。

So, we will continue to buy back shares.

因此，我們將繼續回購股票。

We have said that we would buy back about 2 billion for the year.

我們說過今年回購約20億。

That's what the midpoint of our guide implies.

這就是我們指南的中點所暗示的內容。

But based upon where we see the stock price today, we believe we would be more at the high end of our guidance range, and we would balance this buyback between Q3 and Q4, but we will remain obviously opportunistic, Andrew.

但根據我們今天看到的股價，我們相信我們將更多地處於指導範圍的高端，我們將在第三季和第四季之間平衡回購，但我們顯然仍將保持機會主義，安德魯。

Thanks so much.

非常感謝。

I'll go back in the queue.

我會回到隊列中。

Thank you.

謝謝。

Steve Tusa, JPMorgan.

史蒂夫圖薩，摩根大通。

Congrats on another strong print here, good execution.

恭喜這裡又一個強大的印刷品，良好的執行力。

Just on the backlog, can that continue to grow in electrical through the rest of this year?

就積壓而言，今年剩餘時間電力的積壓能否持續成長？

I think it's a great question.

我認為這是一個很好的問題。

And if you'd ask me that question at the beginning of the year, I would have imagined that we would start to see a leveling out in the backlog and perhaps even eating some backlog this year.

如果你在今年年初問我這個問題，我會想像我們會開始看到積壓的情況趨於平穩，甚至可能會在今年吃掉一些積壓。

But given how strong markets have remained, the backlog, as we talked about, up 27% year-over-year, growing still quarter-over-quarter.

但鑑於市場依然強勁，正如我們所說，積壓訂單年增 27%，季比仍在成長。

From where I sit today, Steve, and based upon the activities and negotiations we're seeing, my guess is we'll probably continue to build backlog.

史蒂夫，從我今天坐的位置來看，根據我們所看到的活動和談判，我的猜測是我們可能會繼續積壓。

The industry as well is it's reached a level where there are some constraints today that are, quite frankly, limiting our ability to produce at the rate at which we're receiving orders.

該行業也已經達到了今天存在一些限制的水平，坦白說，這些限制限制了我們以接收訂單的速度進行生產的能力。

And at some point, those will certainly converge.

在某些時候，這些肯定會收斂。

But I would say tough to tell for sure, given the -- especially the advent of these big mega projects and what they do to your backlog, and the other dynamic that we've talked about before that's taking place in the industry is that we are having some of these big hyperscale data center customers giving us multiyear orders.

但我想說很難肯定地說，考慮到——尤其是這些大型項目的出現以及它們對積壓工作的影響，以及我們之前討論過的行業中發生的另一個動態是，我們其中一些大型超大規模資料中心客戶向我們提供了多年訂單。

So, it wouldn't surprise me at all that the back -- continue to grow.

因此，背部繼續生長，我一點也不感到驚訝。

So, like sequentially for the next couple of quarters, effectively you can grow backlog for 3Q and 4Q?

那麼，就像接下來幾季的順序一樣，您可以有效地增加第三季和第四季的積壓訂單嗎？

I think the truth is, I don't have -- I don't know I can't really give you a definitive answer.

我認為事實是，我沒有——我不知道我不能真正給你一個明確的答案。

I mean the negotiations are up about 18% or so in our Electrical business.

我的意思是，我們的電氣業務的談判量增加了 18% 左右。

And so, we continue to grow our negotiations, and we're growing our negotiations at a faster rate than we're growing our sales.

因此，我們繼續擴大談判，而且談判的速度比銷售額的成長速度還要快。

That math would suggest that it's certainly possible that we're going to continue to build backlog.

這個數學表明我們肯定有可能繼續積壓訂單。

But we'll just have to wait and see how it all plays out.

但我們只能等待，看看這一切會如何發展。

Okay.

好的。

And then just one more on the electrical margins.

然後還有一個關於電氣裕度的問題。

I think last quarter, you guys talked about some estimates hitting the margins, but here we are again with another pretty nice upside print on that front.

我認為上個季度，你們談到了一些達到利潤的估計，但在這裡我們再次在這方面帶來了另一個相當不錯的上行趨勢。

You raised the guidance for the year, it does show a bit of a step down in incremental, still very strong in the second half, no doubt about it.

您提高了今年的指導，這確實表明增量有所下降，下半年仍然非常強勁，這是毫無疑問的。

What's driving the step-down in incrementals?

是什麼推動了增量的下降？

Again, I'm not saying it's negative or anything like that.

再說一次，我並不是說這是負面的或類似的東西。

I'm just saying it's -- I want to kind of understand as things mature in the back half, what's the bit of the step down in incrementals?

我只是說──我想了解，隨著後半段事情的成熟，增量的下降幅度是多少？

No, no, I appreciate that question.

不，不，我很欣賞這個問題。

And without a doubt, a very strong first half of incrementals in our electrical businesses, and I'd say that lots of contributions from our team's execution.

毫無疑問，我們的電氣業務上半年成長非常強勁，我想說這很大程度上來自我們團隊的執行力。

And quite frankly, we've had on a relative basis, more to higher contribution of price in the first half than we had we'll have in the second half of the year and very much consistent with what we mentioned last quarter.

坦白說，相對而言，我們上半年的價格貢獻比下半年更高，並且與我們上季度提到的非常一致。

We are ramping spending.

我們正在增加支出。

We have capacity coming online that brings, obviously, depreciation and obviously, the work that we need to ramp up new capacity, and we continue to make growth investments in the business, and those tend to be more heavily back and loaded.

我們的產能上線，顯然會帶來折舊，顯然，我們需要增加新產能，我們將繼續對業務進行成長投資，而這些投資往往會更加沉重地回饋和負載。

And so clearly, those margin numbers that we provided to you is our best view.

很明顯，我們向您提供的這些保證金數字是我們最好的觀點。

But our teams have continued to surprise us as well with their execution.

但我們的團隊的執行力也持續帶給我們驚喜。

And so, if you think about the electrical margins, the range that we provided, I think the range is a good range, and we're hopeful that they can be at the end of the range.

因此，如果您考慮電氣裕度，即我們提供的範圍，我認為該範圍是一個很好的範圍，並且我們希望它們能夠位於該範圍的末端。

But at this point, that's the best view.

但此時此刻，這就是最好的風景。

Great.

偉大的。

Thank you.

謝謝。

Thanks for the detail.

謝謝你的詳細資料。

David Raso, Evercore ISI.

大衛·拉索，Evercore ISI。

Yes, hi, thank you.

是的，嗨，謝謝。

Electrical Americas, price cost.

電氣美洲，價格成本。

Can you give us some update on where we stand on that right now, particularly if you can give us any sense of volume versus price in the Electrical Americas growth, which 13% this quarter, 17% last quarter?

您能否給我們一些關於我們目前立場的最新信息，特別是您能否讓我們了解一下美洲電氣公司增長量與價格的關係，本季度增長 13%，上季度增長 17%？

And then also, given some of long lead times, how should we think about, as we sit here today, pricing power into '25?

然後，考慮到一些較長的交付週期，當我們今天坐在這裡時，我們應該如何考慮 25 世紀的定價能力？

Thank you.

謝謝。

I appreciate the question.

我很欣賞這個問題。

And I would say that certainly, as we come through this inflationary period over the last couple of years, we were a little bit upside down for a period of time on price versus cost.

我當然想說，當我們經歷過去幾年的通貨膨脹時期時，我們在一段時間內的價格與成本有點顛倒。

Today, I'd say the equation is back balanced, which means not only that are we recovering the inflation but the incrementals that we need to maintain our margins.

今天，我想說這個等式已經恢復平衡，這意味著我們不僅正在恢復通貨膨脹，而且還意味著我們需要維持利潤率的增量。

And so probably balance today between what we'd expect to see from the business in terms of the relationship between price and cost.

因此，今天我們可能會在價格和成本之間的關係方面平衡我們期望從業務中看到的情況。

On volume versus pricing, as I mentioned a moment ago, Obviously, we -- pricing in the second half of the year will be less on a year-over-year basis than we saw in the first half.

關於銷售與定價，正如我剛才提到的，顯然，我們下半年的定價將低於上半年。

And that's simply a function of timing of when prices went in last year.

這只是去年價格上漲時間的函數。

So, it's kind of in the base already.

所以，它已經在基地了。

And so, I would say today, volume versus price, specifically in terms of separating those two pieces.

因此，我今天要說的是數量與價格，特別是在區分這兩部分。

As we've said before, we don't provide that number, and we don't provide that number for, we think, a lot of the right reasons in terms of the variability, depending upon who the customer is and inflation varies by customer and our ability and need to recover varies by customer.

正如我們之前所說，我們不提供這個數字，而且我們認為，我們不提供這個數字是因為在可變性方面有很多正確的原因，這取決於客戶是誰以及通貨膨脹的變化。能力和需求因客戶而異。

So, we don't want to create an unintended problem for us is by separating the two when that number could be different from one customer versus the other.

因此，當一個客戶與另一個客戶的數字可能不同時，我們不想透過將兩者分開來給我們帶來意想不到的問題。

To your point on this balance between pricing power today within the business, I'd say we continue to be in an advantageous position with respect to our overall demand versus capacity.

對於您關於當今企業內部定價能力之間平衡的觀點，我想說，就我們的整體需求與產能而言，我們仍然處於有利地位。

And so, I would expect as we go forward that we continue to be in an advantageous position.

因此，我預計隨著我們的前進，我們將繼續處於有利地位。

What we've said historically and continue to believe that we have tremendous opportunities to expand our margins by running the company better.

我們過去說過並且仍然相信，透過更好地經營公司，我們有巨大的機會來擴大利潤。

And as we think about the margin expansion that's in front of us and there is plenty of opportunities to expand margins every place, it will largely come from our abilities to run the company better.

當我們考慮擺在我們面前的利潤擴張時，每個地方都有很多擴大利潤的機會，這很大程度上取決於我們更好地經營公司的能力。

Quick follow-up.

快速跟進。

Electrical Global.

電氣全球。

The rest of the year, the revenue growth organically has to accelerate to up five after the first half was two, two and change.

今年剩下的時間裡，收入的自然成長必須加速到上半年的兩位、兩位和變化後的五位。

Is that simply the function of the easier comps in the second half?

這僅僅是下半場較容易的比賽的作用嗎？

Or is there anything you're seeing that would suggest that could accelerate?

或者您是否看到任何事情表明這種情況可能會加速？

No.

不。

And it's largely a function of comps.

這在很大程度上是比較的函數。

The European market, the electrical Europe market, if there's been a market that's been a little bit of a disappointment this year relative to our expectations.

歐洲市場，歐洲電氣市場，如果今年有一個市場相對於我們的預期有點令人失望的話。

Coming into the year, it would have been the electrical business specifically in Europe that's embedded in our Electrical Global segment.

進入今年，特別是歐洲的電力業務將納入我們的全球電力部門。

Asia is doing great. high single-digit growth.

亞洲表現出色。高個位數成長。

We're doing fine in our guides business, but we have had some -- a little bit weaker results in markets specifically, and you see all the data coming out of Europe.

我們的導遊業務做得很好，但我們在市場上的表現有些疲軟，你會看到所有數據都來自歐洲。

So, we're not at all unique in that regard.

因此，我們在這方面並不是獨一無二的。

But we think pretty much -- it's really a function of comps more than it is.

但我們認為，這實際上是比較的函數，而不是它本身。

We expect a second half turnaround in the European electrical market.

我們預計下半年歐洲電力市場將會出現改善。

Thank you.

謝謝。

Deane Dray, RBC.

迪恩·德雷，加拿大皇家銀行。

Thank you.

謝謝。

Good morning everyone.

大家，早安。

Good morning, Deane.

早上好，迪恩。

I wanted to stay in Electrical Global, if we could.

如果可以的話，我想留在 Electrical Global。

And could you put the spotlight on your data center business outside of the US, talk about win rates and market share because -- and how much of that is in that segment today?

您能否專注於您在美國以外的資料中心業務，談談獲勝率和市場份額，因為—以及目前該細分市場中有多少？

And I would have thought that would be lifting the growth rates a little bit more.

我以為這會進一步提高成長率。

But just some color there would be helpful.

但只要有一些顏色就會有幫助。

Yes.

是的。

I appreciate the question, Dean.

我很欣賞這個問題，迪恩。

I will tell you that today, very much consistent with the balance of the Eaton franchise.

今天我要告訴你的是，這與伊頓特許經營權的平衡非常一致。

We don't today have as much let's say, electrical content in a data center in Europe as we would have in North America.

比如說，我們現在歐洲資料中心的電氣內容並不像北美那麼多。

And that's just largely a function of the share position that we have in North America and not just UPS, but in electrical switchgear in products like transformers.

這在很大程度上取決於我們在北美的份額地位，不僅是 UPS，還包括變壓器等電氣開關設備產品。

And so, in the North America market or in the Americas market, we have the ability to sell a complete suite of solutions end to end into data centers.

因此，在北美市場或美洲市場，我們有能力向資料中心銷售端到端的一整套解決方案。

And in the European market, we don't have the same strength.

而在歐洲市場，我們沒有同樣的實力。

We have the same strength, for example, in UPS but we wouldn't have the same, let's say, position of strength in the electrical switch gear.

例如，我們在 UPS 方面具有相同的優勢，但在電氣開關設備方面我們不會具有相同的優勢位置。

The other thing I would add is that when you look at the data center market in Europe as a percent of the total market, it represents a much smaller share of the total business.

我要補充的另一件事是，當您查看歐洲資料中心市場佔總市場的百分比時，它在總業務中所佔的份額要小得多。

And so those are really the factors that I'd say are really holding back the relative results of global business versus Americas one, just the breadth of the portfolio; secondly, the size of the relative market.

因此，我想說的是，這些因素確實阻礙了全球業務與美洲業務的相對業績，只是投資組合的廣度；其次，相對市場的規模。

As you know, historically, Europe has been much more focused on manufacturing and machine OEMs and automation in the data center space.

如您所知，從歷史上看，歐洲更加關注資料中心領域的製造和機器原始設備製造商以及自動化。

That's really helpful color, and thanks for that distinction.

這是非常有用的顏色，感謝您的區分。

And just sticking with data center, if you think about your backlog today on your quote activity, how far out are the deliveries.

只要堅持使用資料中心，如果您考慮一下今天報價活動中的積壓，交付還有多遠。

Are you -- I would imagine it's over two years now, especially in transformers, but any kind of color there, please?

我想現在已經兩年多了，尤其是變形金剛，但有什麼顏色嗎？

I'd say that when you think about it, I guess it depends upon your perspective on -- I think I told to the industry in data centers is looking at perhaps as much as an eight-year backlog unless fundamentally we find a way collectively across the industry to step up what we do in building out data centers at a much faster rate.

我想說，當你思考這個問題時，我想這取決於你的觀點——我想我告訴數據中心行業正在考慮可能長達八年的積壓，除非我們從根本上找到一種共同的方法整個業界加快我們以更快的速度建立資料中心的步伐。

It's one of the reasons, for example, we talked about the deal that we did in Europe due to these EPODs, which is a standardized modular design, something that enables you to stand up a data center in a much shorter period of time than we have historically.

這是原因之一，例如，我們談到了我們在歐洲所做的交易，因為這些 EPOD 是一種標準化的模組化設計，可以讓您在比我們短得多的時間內建立一個資料中心。有過。

So, I think the question comes, as I think about Eaton in terms of our constraints, the bigger constraints will not be what comes from Eaton.

所以，我認為問題來了，當我從我們的限制角度考慮伊頓時，更大的限制不是來自伊頓。

It will largely what comes from the industry and the industry's ability to find the land, to find the power, to build out the data centers at a faster rate than they have historically.

這很大程度上取決於該行業以及該行業以比歷史更快的速度尋找土地、尋找電力、建造資料中心的能力。

So, we're going to be fine in terms of what we do.

所以，就我們所做的事情而言，我們會做得很好。

We're not going to be the bottleneck for the industry.

我們不會成為業界的瓶頸。

But the industry will have challenges to keep up with this growth rate.

但該行業將面臨跟上這一成長速度的挑戰。

Thank you.

謝謝。

Thanks.

謝謝。

We appreciate it.

我們很感激。

Julian Mitchell, Barclays.

朱利安米切爾，巴克萊銀行。

Hi, good morning.

早安.

Good morning.

早安.

Maybe just a question on the electrical sort of products side of things.

也許只是關於電氣產品方面的問題。

And I think that when we look at that business, for example, in the Americas, it's been fairly sluggish the last kind of nine months versus very, very high growth in systems.

我認為，當我們觀察這項業務時，例如在美洲，過去九個月的成長相當緩慢，而係統的成長卻非常非常高。

And there was maybe some destocking that had weighed on that that's now passed.

也許有一些去庫存的影響現在已經過去了。

And then to a degree, a similar phenomenon in the electrical global side with weaker products and pretty good systems growth.

某種程度上，全球電氣領域也出現了類似的現象，產品較弱，系統成長卻相當不錯。

So, I just wondered sort of how you're thinking about that products piece from here?

所以，我只是想知道你是如何看待這裡的產品的？

I think the systems revenue growth, we could sort of rightly or wrongly take for granted for a few quarters because of the very large backlogs.

我認為，由於積壓量很大，我們可以正確或錯誤地認為幾季的系統收入成長是理所當然的。

But products, I suppose you have this mix of easier comps in the back half, but also maybe the short-term macro numbers per the ISM this morning and so forth are worse.

但產品方面，我想你在後半段有更簡單的組合，但今天早上 ISM 的短期宏觀數據也可能更糟。

So maybe help us understand kind of how you see that product side of things, revenue-wise in EA and the EG playing out?

那麼也許可以幫助我們了解您如何看待產品方面的事情，即 EA 和 EG 中的收入方面？

Hey, appreciate the question, Julian.

嘿，謝謝你的問題，朱利安。

And I know it's time I know [time of times] challenge, really got insight to what's going on in these individual markets.

我知道現在是我了解[時代]挑戰的時候了，真正了解這些個別市場正在發生的事情。

And as I think most of you are aware, we really don't look at our business anymore by product versus systems.

我想你們大多數人都知道，我們真的不再透過產品與系統來看待我們的業務。

We really look at it largely around the various end markets that we sell into.

我們實際上主要圍繞著我們銷售的各個終端市場來看待它。

And to your point, Julian, there are certain end markets that we sell into that tend to be more product-centric versus system-centric.

朱利安，就您的觀點而言，我們銷售的某些終端市場往往更以產品為中心，而不是以系統為中心。

But that -- but we really do look at it by end market, if you think about an end market of resi, the residential market, which today would account for maybe 12%, 13% of our total business.

但是，我們確實透過終端市場來看待它，如果你考慮 Resi 的終端市場，即住宅市場，今天它可能占我們總業務的 12%、13%。

That market has clearly been slow.

該市場顯然進展緩慢。

We think we've seen some evidence of bottoming in general, but that business today comps get much easier going forward.

我們認為我們已經看到了一些總體觸底的證據，但今天的業務比較變得更容易向前發展。

And we think perhaps with some cuts in the federal rate, the federal funds rate that we'll see that business start to take off.

我們認為，也許隨著聯邦利率和聯邦基金利率的一些削減，我們將看到該業務開始起飛。

But once again, it's a smaller part of the company.

但再一次，它只是公司的一小部分。

The same thing could be said for what's happening today and what we call OEM, the machine builders.

對於今天發生的事情以及我們所說的 OEM（機器製造商）來說，也可以說同樣的事情。

We do sell components into that market, and that market has been weak, especially in Europe, which tends to be more manufacturing-centric.

我們確實向該市場銷售零件，但該市場一直疲軟，尤其是在歐洲，那裡往往更以製造業為中心。

Once again, as that market bottomed, we think so, the comps do get easier.

再次，隨著市場觸底，我們認為，比較確實變得更容易。

So, let's have to wait and see.

所以，我們還得拭目以待。

But most of our businesses, if you think about it in the context of the end markets that we sell into, be that data center, utility, industrial, commercial, institutional, which is the way we think about the business.

但我們的大多數業務，如果你在我們銷售的終端市場的背景下考慮它，那就是資料中心、公用事業、工業、商業、機構，這就是我們思考業務的方式。

We're not seeing any sluggishness.

我們沒有看到任何遲緩的情況。

And obviously, whatever sluggishness we're seeing in these smaller pieces of the portfolio are being more than offset and overwhelmed by the mega trends and what's going on in the biggest part of our business.

顯然，我們在投資組合的這些較小部分中看到的任何低迷都被大趨勢和我們業務最大部分中正在發生的事情所抵消和淹沒。

So hopefully, that's helpful to you in terms of as we think about it, it's really if you want a proxy for products and the way you think about it, it's what's happening in resi and what's happening and, let's call it, MOEM, machinery OEMs would be probably the best two proxies for products inside of Eaton.

因此，希望這對您有所幫助，因為我們的想法是，如果您想要產品的代理以及您思考它的方式，這就是Resi 中正在發生的事情以及正在發生的事情，我們稱之為MOEM、機械OEM 可能是伊頓內部產品的最佳兩個代理。

Yes, it has been slow.

是的，進展很慢。

Maybe we're reaching a bottom, comps do get easier going forward.

也許我們已經觸底，未來的競爭確實會變得更容易。

Thanks very much, Craig.

非常感謝，克雷格。

And then just a more sort of short-term question looking at maybe margins for a second.

然後是一個更短期的問題，看看利潤率。

So, I think the guidance seems to imply sort of midpoints and so on and where there's some rounding no doubt.

因此，我認為該指導似乎暗示了某種中點等，並且毫無疑問地存在一些舍入。

But it seems to imply the operating margins are sort of flattish sequentially in Q3, I think, and then sort of flat year on year.

但我認為，這似乎意味著第三季的營業利潤率連續持平，然後與去年同期持平。

And then in Q4, it looks like they're sort of flattish again sequentially.

然後在第四季度，看起來它們再次變得持平。

So just trying to understand that because I suppose normally the operating margin goes up sequentially, Q3 down sequentially in Q4.

所以只是想了解這一點，因為我認為通常營業利潤率會依次上升，第三季會在第四季依序下降。

And then as we're thinking year on year, I understand your investments are stepping up a bit, so that's crimping the firm-wide operating leverage in Q3.

然後，當我們逐年思考時，我了解您的投資正在增加，因此這會限制第三季公司範圍內的營運槓桿。

And but it's sort of interesting that the margins are guided to be flat despite the 8%, 9% growth.

但有趣的是，儘管成長了 8%、9%，但利潤率卻持平。

Yes.

是的。

What I would tell you, we talked about this a little bit already, Julian, is that we are investing.

我要告訴你的是，朱利安，我們已經討論過這個問題了，我們正在投資。

We are bringing on additional manufacturing capacity, and that brings on, obviously, start-up expenses.

我們正在增加額外的製造能力，這顯然會帶來啟動費用。

It brings on depreciation.

它會帶來貶值。

We are investing in commercial front-end resources to essentially deal with the growth that we're seeing.

我們正在投資商業前端資源，以從根本上應對我們所看到的成長。

And so yes, I mean, margins on balance in the back half of the year, flat.

所以，是的，我的意思是，今年下半年的利潤率持平。

We'll see where we end up. but that's essentially our current view.

我們會看看最終結果如何。但這基本上就是我們目前的觀點。

And our team continues to execute as well as they have, there could be some upside there, but it's our current view from where we sit today.

我們的團隊繼續像他們一樣執行，可能會有一些好處，但這是我們今天所持的觀點。

Thanks very much.

非常感謝。

Nicole DeBlase, Deutsche Bank.

妮可‧德布拉斯 (Nicole DeBlase)，德意志銀行。

Yes, thanks.

對了謝謝。

Good morning, guys.

早上好傢伙。

So, another really strong set of results.

所以，又是一組非常強的結果。

I guess maybe the one blip was Aerospace margin down year on year.

我想也許唯一的問題是航空航太利潤率逐年下降。

I guess I'm a bit surprised that you maintained the full year guidance.

我想我對你們維持全年指導感到有點驚訝。

It embeds a pretty big step-up in second half.

它在下半場嵌入了相當大的進步。

So, can you just talk about what happened with Aero margins in the second quarter?

那麼，您能談談第二季 Aero 利潤率的情況嗎？

And then what drives the implied step up in the back half?

那麼是什麼推動了後半場隱含的進步呢？

Yes.

是的。

I appreciate the question, Nicole.

我很欣賞這個問題，妮可。

And I would just say that in Aerospace, margins can be lumpy.

我只想說，在航空航太領域，利潤率可能會很不穩定。

And that's largely because there's such a big difference between margins in aftermarket and margins on OEs and which OE platform do you ship and how much in a given quarter.

這主要是因為售後市場的利潤與原始設備的利潤之間存在巨大差異，以及您在哪個原始設備平台上發貨以及在給定季度內發貨的數量。

So, I would just say -- I would just think about it as noise.

所以，我只想說——我只會將其視為噪音。

We're confident in the second half outlook is based upon essentially orders that we have in-house and have pretty clear visibility.

我們對下半年的前景充滿信心，這主要基於我們內部的訂單，並且具有相當清晰的可見性。

So, we're confident in the outlook, and I would just look through the noise in the quarter and attribute it largely to -- yes, we had some operating inefficiencies in the quarter.

因此，我們對前景充滿信心，我只是回顧一下本季度的噪音，並將其很大程度上歸因於——是的，我們本季度存在一些營運效率低下的情況。

They will go away, but mostly, it's a function of mix that we shipped in a given quarter that really drives the margin outlook.

它們會消失，但最重要的是，我們在特定季度發貨的混合功能真正推動了利潤率前景。

Got it.

知道了。

That makes sense, Craig.

這是有道理的，克雷格。

And then I guess on the NordicEPOD investment, is there opportunity to bring that modular solution to the US?

然後我想在 NordicEPOD 投資上，是否有機會將模組化解決方案引入美國？

Or do you view that as more as a European-centric opportunity?

或者您認為這更像是一個以歐洲為中心的機會？

Thank you.

謝謝。

Yes.

是的。

We'll have to see how the North American market evolves.

我們必須看看北美市場如何發展。

I mean, modular solutions.

我的意思是，模組化解決方案。

We see it in Europe for sure.

我們在歐洲肯定會看到這一點。

We see it in Asia, two regions of the world where we're seeing more of this modular approach to data center build-outs.

我們在亞洲以及世界上的兩個地區看到了這種情況，在這兩個地區我們看到了更多這種模組化資料中心擴建方法。

The US, especially the hyperscale customers tend to be more specific and customized in their build.

美國，尤其是超大規模客戶的建置往往更加具體和客製化。

So, we'll have to wait and see how that plays out.

因此，我們必須等待，看看結果如何。

But as of today, it does tend to be more what's taking place outside of the US versus what's in the US.

但截至今天，與美國境內發生的事情相比，它確實更傾向於美國以外發生的事情。

Thank you.

謝謝。

I'll pass it on.

我會把它傳遞下去。

Thank you.

謝謝。

Scott Davis, Melius Research.

斯科特·戴維斯，Melius 研究公司。

Yes, good morning/afternoon.

是的，早上好/下午好。

I think it's turned afternoon.

我想現在已經是下午了。

But anyways, good morning and congrats on the results.

但無論如何，早安，祝賀結果。

Thanks, Scott.

謝謝，斯科特。

I appreciate it.

我很感激。

(technical difficulty) the last couple of years.

（技術難度）過去幾年。

Craig, a couple of kind of small things.

克雷格，有一些小事。

I mean you quote the 40% win rate.

我的意思是你引用的是 40% 的勝率。

I don't recall what that was historically, but if you went back like five years or something, would it be in that ballpark?

我不記得歷史上那是什麼，但如果你回到五年左右，它會在那個球場嗎？

Is this meaningfully higher than that than maybe where you guys were historically?

這是否比你們歷史上的水準高得多？

Yes.

是的。

I would say that the win rate, and once again, we're relatively early, right, in mega projects overall, with some 15% of them having started.

我想說的是，我們在整體大型專案中相對較早，其中約 15% 已經開始，這是正確的。

And so, it's a good start at 40%, and that would be higher than our underlying market share in North America.

因此，40% 是一個好的開端，這將高於我們在北美的基本市場份額。

And so clearly, we're encouraged by the start that we're seeing it.

很明顯，我們對看到它的開始感到鼓舞。

And -- but I would say, in general, the bigger and the more complex project in general, the more likelihood that Eaton is going to win and our market share in general tends to be higher in larger, more sophisticated projects.

但我想說，總的來說，專案越大、越複雜，伊頓獲勝的可能性就越大，而且我們的市場份額在更大、更複雜的專案中總體上往往更高。

Yes.

是的。

That makes a lot of sense.

這很有意義。

And then Craig, not that anybody is chasing you out the door, you've done an amazing job, but any update on the CEO succession?

然後克雷格，並不是說有人把你趕出家門，你做得非常出色，但執行長繼任者有什麼最新消息嗎？

No.

不。

I'll just say thank you, first and all for the acknowledgment.

我首先要說謝謝你們的認可。

It's been a pleasure, and it will continue to be a pleasure.

這是一種樂趣，而且將繼續是一種樂趣。

As everybody on the call is probably aware, we have a mandatory retirement age of 65.

參加電話會議的每個人可能都知道，我們的法定退休年齡是 65 歲。

I'll turn 65 in May of next year, and I'll leave at the end of May.

明年5月我就65歲了，5月底就要離開。

In the meantime, continuing to enjoy the job and having a lot of fun and I can't think of a better time by the way to be in my chair and be a part of these industries that we're associated with.

同時，繼續享受這份工作並享受很多樂趣，我想不出比坐在我的椅子上並成為我們相關行業的一部分更好的時光了。

But the Board is very busy working on that particular question.

但董事會正忙於解決這個特定問題。

And we certainly we'll announce things as soon as the Board is ready to share their feedback and their decision on who's going to be the next leader.

當然，一旦董事會準備好分享他們的回饋以及他們對誰將成為下一任領導者的決定，我們就會立即宣布此事。

Well, though I have big shoes to follow in.

好吧，雖然我有大鞋要穿。

So best of luck.

祝你好運。

I'll pass it on.

我會把它傳遞下去。

Thank you.

謝謝。

Nigel Coe, Wolfe Research.

奈傑爾·科，沃爾夫研究中心。

Thanks.

謝謝。

Good afternoon, everyone.

大家下午好。

And Craig, what an amazing career you've had.

克雷格，你的職業生涯真是太棒了。

So, I know you're not leaving.

所以，我知道你不會離開。

This is not the last call, but also I just want to acknowledge you've done a fantastic job here.

這不是最後一次通話，但我只是想感謝您在這裡做得非常出色。

So, on the investment spending, the $1 billion, 2 million square feet of additional capacity, can you just remind us where are we in that ramp up?

那麼，就投資支出而言，10 億美元、200 萬平方英尺的額外產能，您能否提醒我們，我們目前處於什麼階段？

When does that capacity come online?

該容量何時上線？

And I know it's coming on in sequences, but can you just give us a sense there.

我知道它會按順序發生，但你能給我們一個感覺嗎？

And this investment spend sort of sequentially in Electrical Americas.

這項投資在某種程度上是依序花在美洲電氣公司的。

Is that mainly depreciation?

主要是折舊嗎？

Or are there some other cash expenses to think about as well?

或者還有其他一些現金支出需要考慮嗎？

Yes.

是的。

So, the first question around when, and I'd say, really, I would tell you that it really starts beginning in the second half of this year, where some of the investments that we announced in the early part of that $750 million North America spend.

所以，第一個問題是關於什麼時候，我想說，真的，我會告訴你，它真正開始於今年下半年，我們在早期宣布的 7.5 億美元北方投資中的一些投資美國花錢。

It really starts to come online this year.

今年它才真正開始上線。

Some of the other investments that tend to be a little longer term maybe towards the end or so of next year or even some into 2026.

其他一些投資的期限往往較長，可能要等到明年年底左右，甚至有些要等到 2026 年。

But I'd say it really does begin beginning in the second half of the year. where we're adding capacity that allows us to obviously address the overall market demand and some of the backlog efficacy.

但我想說，這確實是從今年下半年開始的。我們正在增加產能，這使我們能夠明顯滿足整體市場需求和一些積壓的效率。

I'm not sure I understood the second part of the question, though.

不過，我不確定我是否理解問題的第二部分。

Maybe, Nigel, you can just

也許，奈傑爾，你可以

(multiple speakers) --?

（多位發言者）－？

Yes, just -- yes, so the spending, the kind of the investment headwinds in Electrical Americas that you're referencing, is that a depreciation on this new capacity?

是的，只是 - 是的，所以你提到的美國電氣公司的支出和投資逆風，是對這種新產能的貶值嗎？

Or are there other investments that we should think about as well?

或者我們還應該考慮其他投資嗎？

Yes.

是的。

No, there's certainly -- it's depreciation and then it's also the ramp-up cost, right, when you ramp up a new manufacturing facility or a new line, there's obviously inefficiencies that you have to absorb until these lines come up and reach their targeted capacity levels.

不，當然有——它是折舊，然後也是增加成本，對吧，當你增加一個新的製造設施或一條新生產線時，你必須吸收明顯的低效率，直到這些生產線出現並達到其目標能力水平。

And so, there's manufacturing inefficiencies, it's depreciation.

因此，存在製造效率低下和折舊的問題。

And then the investments that we're making in our commercial front end to really address some of this growth that we're seeing both now and into the future.

然後，我們在商業前端進行的投資是為了真正解決我們現在和未來看到的一些成長問題。

Okay.

好的。

My follow-up question is, I guess, related in some ways, but the announcement by Cleveland-Cliffs, can't believe I actually mentioned Cleveland-Cliffs on this call, but they have announced a transformer manufacturing investment of $150 million three-phase transformers, which I thought was kind of random, but I'd be interested to kind of get your view here in terms of kind of a new entrant in this market kind of how much capacity are we seeing coming online in transformers?

我想我的後續問題在某些方面是相關的，但是克利夫蘭克里夫斯的聲明，不敢相信我實際上在這次電話會議上提到了克利夫蘭克里夫斯，但他們已經宣布了一項1.5 億美元的變壓器製造投資三-相位變壓器，我認為這是隨機的，但我有興趣了解您對這個市場新進入者的看法，即我們看到變壓器上線的容量有多大？

And how long do you think this market is going to be undersupplied for?

您認為這個市場供應不足還會持續多久？

I mean are we still undersupplied for the next couple of years?

我的意思是，未來幾年我們仍然供應不足嗎？

I mean any thoughts there would be great.

我的意思是任何想法都會很棒。

Yes.

是的。

I mean, we obviously saw the announcement as well from Cleveland-Cliffs.

我的意思是，我們顯然也看到了克利夫蘭懸崖的公告。

I mean they have not historically been a supplier to transformers it into the market.

我的意思是，他們歷史上並不是將其轉化為市場的供應商。

They, at one point, had rumored to be partnering with another transformer manufacturer in that investment.

有傳言稱，他們曾與另一家變壓器製造商合作進行這項投資。

I can just tell you, based upon the size of the investment and what we know about transformer manufacturing, we're not worried about Cleveland-Cliffs and what amounts to a very modest investment in transformer manufacturing.

我可以告訴你，根據投資規模和我們對變壓器製造的了解，我們並不擔心克利夫蘭懸崖以及變壓器製造的投資非常有限。

So, we're not -- we've seen it. but we're not worried about it.

所以，我們沒有──我們已經看到了。但我們並不擔心。

I don't think it's going to have any impact at all on our growth rate and very little of any impact on the industry given the size of the investment.

我認為這不會對我們的成長率產生任何影響，考慮到投資規模，對產業的影響也很小。

And how long?

以及多長時間？

I'd say that we talk about these trends.

我想說我們談論這些趨勢。

And as you can imagine, transformers go everywhere.

正如你可以想像的那樣，變形金剛無處不在。

I mean they go into data centers.

我的意思是他們進入資料中心。

They go into industrial buildings that go into utility applications.

他們進入工業建築，進入公用事業應用。

And so, transformer demand that we're seeing today is comprehensive across every one of our end markets.

因此，我們今天看到的變壓器需求在我們每個終端市場都是全面的。

And I would imagine what they're doing is focusing perhaps on maybe one of these verticals, I'm not sure.

我想他們正在做的可能是專注於這些垂直領域之一，我不確定。

But I don't see transformer demand and capacity coming into alignment for a number of years.

但我認為變壓器的需求和容量多年來都沒有達到一致。

I think that market is going to be good for a long time, and we'll have to wait until it all plays out.

我認為市場將在很長一段時間內保持良好狀態，我們必須等到一切結束。

But our markets as we've articulated, are expected to continue to see very attractive growth for a long time for now.

但正如我們所闡明的，我們的市場預計在很長一段時間內將繼續出現非常有吸引力的成長。

Sure, thank you.

當然，謝謝。

Thanks, Craig.

謝謝，克雷格。

Joe O'Dea, Wells Fargo.

喬奧迪，富國銀行。

Hi.

你好。

Thanks for taking my question.

感謝您提出我的問題。

Actually, on that topic, Craig, could you just provide a little bit more detail on the $750 million of spend on capacity in the Americas.

事實上，關於這個話題，克雷格，您能否提供有關美洲 7.5 億美元容量支出的更多細節。

Any perspective on some of the categories that are going to see some of the biggest capacity addition.

對某些類別的任何看法都將看到一些最大的容量增加。

And so, what will be the step up in your transformer capacity, anything on switchgear capacity just to better sort of understand where there's some of the more sizable investments.

因此，變壓器容量會增加多少，開關設備容量會增加多少，只是為了更好地了解哪裡有一些更大規模的投資。

Yes.

是的。

I think the right way to think about that is that we're making the investments in those product lines, and there's obviously a chart in the outbound commentary around the various businesses that are going to be impacted.

我認為正確的思考方式是我們正在對這些產品線進行投資，並且在對外評論中顯然有一個圖表圍繞著將受到影響的各種業務。

But every place that we have capacity constraints today or where we see capacity constraints over the next few years, we're making investments, and we're making those investments in line with our and our customers medium and long-term outlook for what the demand will be.

但是，在我們今天面臨產能限製或未來幾年出現產能限制的每個地方，我們都在進行投資，並且我們的這些投資符合我們和我們的客戶對未來幾年的中長期前景。

And including, as I mentioned, in many cases, getting customer commitments for the capacity that we're bringing online.

正如我所提到的，在許多情況下，包括讓客戶承諾我們提供的線上容量。

And so, lots of different products, lots of different businesses.

因此，有很多不同的產品，很多不同的業務。

It's difficult to really perhaps answer the question as precisely as you've asked it, other than to say, we're making the needed investments as I said in the last earnings call, we don't intend to be a bottleneck for the industry in terms of our capacity to support the growth outlook.

很難像你問的那樣準確地回答這個問題，除了說，正如我在上次財報電話會議中所說，我們正在進行所需的投資，我們不打算成為該行業的瓶頸就我們支持增長前景的能力而言。

And we're comfortable what we're spending and where we're spending it.

我們對自己的支出和支出的地點感到滿意。

And then I just want to ask on backlog.

然後我只想問一下積壓的情況。

If you go back last quarter, the backlog expected to ship in the next 12 months was up like $2 billion or 20% sequentially.

如果回顧上個季度，預計未來 12 個月內出貨的積壓訂單將比上一季增加 20 億美元，即 20%。

And so just curious in terms of meeting that demand, how much of that is dependent on capacity that would be coming on in the back half of the year?

因此，我們好奇的是，在滿足這項需求方面，其中有多少取決於今年下半年的產能？

And then any specifics, the order activity and the end markets that, that was directed into with that $2 billion increase in the next 12 months backlog.

然後是未來 12 個月積壓訂單增加 20 億美元所針對的具體細節、訂單活動和最終市場。

Yes.

是的。

That's another difficult question to really piece that together in terms of how much of the specific backlog is tied to the capacity expansion.

這是另一個難題，要真正將其拼湊起來，即具體積壓的訂單有多少與產能擴張有關。

The backlog is obviously quite large and the backlog cuts across every one of our businesses, some of which or getting additional capacity, some of which are not.

積壓顯然相當大，積壓涉及我們的每項業務，其中一些或正在獲得額外的產能，而另一些則沒有。

So, difficult to really answer that question maybe in a satisfactory way to really address that other than to say, once again, where we have capacity constraints, where lead times have stretched beyond what we think are reasonable and we're making those investments to get out in front of it so that we can deliver -- reduce our lead times to customers and can continue to grow.

因此，很難真正回答這個問題，也許很難以令人滿意的方式真正解決這個問題，除了再次說，我們有能力限制，交貨時間已經超出了我們認為合理的範圍，我們正在將這些投資用於走在前面，這樣我們就可以交付——縮短交付給客戶的交貨時間，並且能夠繼續成長。

But difficult to really answer that question in the context of these investments other than to say that if you think about it -- and these are the incremental investments.

但在這些投資的背景下很難真正回答這個問題，除非你仔細想想──這些都是增量投資。

On a relative basis, most of the backlog, most of the backlog is not tied to these capacity investments, right?

相對而言，大部分積壓，大部分積壓與這些產能投資無關，對嗎？

We talk about adding 2 million square feet of capacity impacting 25 of our sites, we have north of 100 sites.

我們談論的是增加 200 萬平方英尺的容量，影響我們的 25 個站點，我們有超過 100 個站點。

So, I would just say that most of the investments or most of the backlog is obviously going to be satisfied by our facilities where we don't necessarily need to add capacity, but we have some real tight spots in some of the businesses, and that's what we're addressing.

因此，我只想說，大部分投資或大部分積壓顯然將透過我們的設施來滿足，我們不一定需要增加產能，但我們在某些​​業務中確實存在一些緊張的地方，而這就是我們正在解決的問題。

Got it.

知道了。

I appreciate it.

我很感激。

Okay.

好的。

Thank you.

謝謝。

Phil Buller, Berenberg.

菲爾·布勒，貝倫貝格。

Hi.

你好。

Thanks for squeezing me in here.

謝謝你把我擠在這裡。

You used to talk, Craig, about an investment or portfolio strategy of, I think it was growing the head and shrinking the tail.

克雷格，你曾經談論過一種投資或投資組合策略，我認為它是長頭縮尾。

I think that was the phrase you used to use, but essentially throwing all the weight of investment dollars behind the most attractive end markets and dining back or exiting the least attractive part.

我認為這是您曾經使用過的短語，但本質上是將所有投資資金投入到最具吸引力的終端市場上，並減少或退出最不有吸引力的部分。

And obviously, that's worked really well.

顯然，這非常有效。

I think it's clear today what the best bits are.

我認為今天最精彩的部分是什麼已經很清楚了。

But is there much happening now on the tail, is there a tail?

但現在尾巴上發生了很多事嗎？

Or are there any less strategic parts of the business where we might expect potential disposals?

或者我們可能會預期將業務中是否存在策略性較低的部分進行處置？

No, I appreciate the question.

不，我很欣賞這個問題。

And the short answer is absolutely, there's a tail and there's a tail everywhere.

簡而言之，答案是絕對的，有尾巴，而且到處都有尾巴。

We posted close to 30% margins in our Electrical Americas business this quarter.

本季我們的電氣美洲業務利潤率接近 30%。

The Electrical Americas business has a tail.

美洲電氣業務有尾巴。

And so, I would tell you that the way we really think about this is that every one of our business leaders has to be a portfolio manager.

因此，我想告訴你，我們真正思考這個問題的方式是，我們的每位業務領導者都必須是一位投資組合經理。

They have to be looking at products, applications, customers, markets where we don't make the returns don't have the right growth prospects and they'll be actively addressing that.

他們必須專注於那些我們無法帶來回報、沒有良好成長前景的產品、應用、客戶和市場，他們將積極解決這個問題。

And the inverse is also true, by the way.

順便說一句，反之亦然。

There's a head too.

還有一個頭。

There's places where we ought to be doubling down and in making incremental investments and really playing the win because we have the right technology, the right to win, great margins, great growth industries.

在某些地方，我們應該加倍努力，進行增量投資，真正贏得勝利，因為我們擁有正確的技術、獲勝的權利、龐大的利潤、龐大的成長產業。

And so, I think the short answer is, absolutely.

所以，我認為簡短的答案是，絕對。

We continue to do portfolio management every place, and there's opportunities every place across the Company to be more focused in the places that we decide to play and where we think we can win.

我們繼續在每個地方進行投資組合管理，公司每個地方都有機會更專注於我們決定參與和我們認為可以獲勝的地方。

Thanks.

謝謝。

And just to follow up, I guess, an extension of that question.

我想，只是為了跟進這個問題的延伸。

Broadly speaking, what's your current assessment of the attractiveness of commercial aerospace?

從廣義上講，您目前對商業航空航太的吸引力有何評價？

I get that backlogs are high, traffic is secular and so on.

我知道積壓量很高，流量是長期的等等。

But airlines are profit warning daily at the moment.

但航空公司目前每天都會發出獲利預警。

It seems, Airbus and Boeing have a lot of their own challenges to ramp up.

看來，空中巴士和波音都有很多自己的挑戰需要克服。

I know it's an attractive long-term industry, but what's your evolving view on the sort of three-year view on commercial aerospace and its relative attractiveness versus the wider portfolio?

我知道這是一個有吸引力的長期行業，但您對商業航空航天的三年前景及其相對於更廣泛的投資組合的相對吸引力有何看法？

I certainly appreciate the question, right, given today, some of the challenges that some of the OEMs are having, why you'd asked the question in terms of how we feel about it?

我當然很欣賞這個問題，對吧，考慮到今天一些原始設備製造商面臨的一些挑戰，為什麼你會問我們對此有何看法的問題？

But I can tell you, we think the aerospace, commercial aerospace industry is an outstanding industry in the short, medium and long term.

但我可以告訴你，我們認為航空航太、商業航空航太產業從短期、中期和長期來看都是一個出色的產業。

And why?

為什麼？

It has all of the characteristics of businesses we like.

它具有我們喜歡的企業的所有特徵。

It's a business that pays for technology, it's a business where you can differentiate.

這是一個為技術付費的企業，這是一個可以讓您脫穎而出的企業。

It's a business that has a very large aftermarket.

這是一個擁有非常大的售後市場的業務。

It's a business that has a wide moat where if you're on a platform, you on a platform for life.

這是一個擁有寬闊護城河的企業，如果你在一個平台上，你就在一個終生的平台上。

It is a long-term growth industry, and it's an industry where we make very attractive returns.

這是一個長期成長的產業，也是一個我們能獲得非常有吸引力的回報的產業。

And so, despite the fact that maybe one of the customer or two is going through a little bit of a short-term issue, the growth outlook for commercial aerospace continues to be one of the best growth outlooks that we have in the company.

因此，儘管事實上可能有一兩個客戶正在經歷一些短期問題，但商業航空航太的成長前景仍然是我們公司最好的成長前景之一。

Aftermarket continues to be very attractive.

售後市場仍然非常有吸引力。

And so no, we like the space, and we like the fundamentals, and we think it's a very attractive asset.

所以不，我們喜歡這個空間，我們喜歡基本面，我們認為這是一項非常有吸引力的資產。

That's great.

那太棒了。

Thank you.

謝謝。

Thank you.

謝謝。

Okay.

好的。

Great.

偉大的。

Thanks, guys.

多謝你們。

We've reached the end of our call, and I appreciate everybody's questions.

我們的通話結束了，感謝大家的提問。

As always, the IR team is ready to any follow-up questions.

與往常一樣，投資者關係團隊已準備好回答任何後續問題。

Thanks for joining us.

感謝您加入我們。

Have a great day.

祝你有美好的一天。

Thank you.

謝謝。

And that does conclude our conference for today.

我們今天的會議到此結束。

Thank you for your participation and using AT&T teleconference.

感謝您參與並使用 AT&T 電話會議。

You may now disconnect.

您現在可以斷開連線。