Franklin Electric Co Inc (FELE) 2025 Q3 法說會逐字稿

Good day, and welcome to the Franklin Electric report's third-quarter 2025 sales and earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded. It is now my pleasure to introduce CFO, Jennifer Wolfenbarger.

大家好，歡迎參加富蘭克林電氣公司2025年第三季銷售和收益電話會議。（操作人員指示）請注意，今天的會議正在錄音。現在我很高興向大家介紹財務長珍妮佛‧沃爾芬巴格。

Thank you, Andrew, and welcome everyone to Franklin Electric's third-quarter 2025 earnings conference call. Joining me today is Joe Ruzynski our Chief Executive Officer. On today's call, Joe will review our third-quarter business highlights. Then I will provide additional details on our financial performance, and Joe will make some additional comments related to our key growth and value drivers along with our outlook. We will then take questions.

謝謝安德魯，歡迎各位參加富蘭克林電氣公司2025年第三季財報電話會議。今天和我一起的是我們的執行長喬·魯津斯基。在今天的電話會議上，喬將回顧我們第三季的業務亮點。接下來，我將提供更多關於我們財務表現的細節，Joe 將就我們的關鍵成長和價值驅動因素以及我們的前景發表一些補充評論。接下來我們將回答問題。

Before we begin, let me remind you that as we conduct this call, we will be making forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are subject to various risks and uncertainties, many of which could cause actual results to differ materially from such forward-looking statements. A discussion of these factors may be found in the company's annual report on Form 10-K and today's earnings release.

在開始之前，請允許我提醒各位，在本次電話會議中，我們將根據 1995 年《私人證券訴訟改革法案》的規定，做出前瞻性陳述。這些聲明受到各種風險和不確定因素的影響，其中許多因素可能導致實際結果與此類前瞻性聲明有重大差異。有關這些因素的討論可以在公司的 10-K 表格年度報告和今天的收益報告中找到。

All forward-looking statements made during this call are based on information currently available and except as required by law, the company assumes no obligation to update any forward-looking statements. Earlier today, we published a slide deck to accompany our prepared remarks. The slides can be found in the investor relations section of our corporate website at www.franklin-electric.com.

本次電話會議中所做的所有前瞻性陳述均基於目前可獲得的信息，除法律要求外，本公司不承擔更新任何前瞻性陳述的義務。今天早些時候，我們發布了一份幻燈片，作為我們準備好的演講稿的補充。您可以在我們公司網站 www.franklin-electric.com 的投資者關係部分找到這些幻燈片。

With that, I will now turn the call over to Joe. Joe?

那麼，我現在把電話交給喬。喬？

Thank you, Jennifer, and good morning everyone. Thank you for joining today's call. Before we get into the details, I want to start with a few key takeaways from the quarter. Franklin Electric delivered another quarter of strong performance in line with our expectations. The quarter was marked by growth across our end markets, discipline execution, solid integration of our acquisitions, and continued investment in our long-term growth priorities.

謝謝你，珍妮弗，大家早安。感謝您參加今天的電話會議。在深入探討細節之前，我想先總結一下本季的一些關鍵要點。富蘭克林電氣公司本季業績表現強勁，符合我們的預期。本季度，我們的終端市場實現了成長，執行力強，收購業務整合順利，並持續投資於長期成長重點領域。

Despite a dynamic operating environment, our teams delivered solid organic sales with both volume and price, margin expansion, and solid cash generation. These results demonstrate the strength of our strong channel partners, commitment to delivering the best service in the industry, and the diversified global portfolio that our customers trust.

儘管經營環境瞬息萬變，但我們的團隊實現了穩健的有機銷售，銷量和價格均有所增長，利潤率也得到提升，現金流也十分充裕。這些成果證明了我們強大的通路合作夥伴的實力、我們致力於提供業界最佳服務的承諾，以及我們客戶信賴的多元化全球產品組合。

Q3 has shown our ability to manage through varying macro conditions and drive profitable growth. Our teams were able to overcome some challenging weather conditions, regional headwinds, slow existing home sales, and relatively few housing starts to ultimately deliver solid results.

第三季展現了我們應對不斷變化的宏觀環境並實現獲利成長的能力。我們的團隊克服了一些具有挑戰性的天氣條件、區域性逆風、現有房屋銷售緩慢以及房屋開工量相對較少等困難，最終取得了可靠的成果。

Our resilience is in part attributable to ongoing price and cost actions which continue to prove effective. We also maintain strong cost discipline through the quarter with SG&A improving as a percentage of sales despite several one-time acquisition related costs.

我們的韌性部分歸功於持續有效的價格和成本控制措施。本季我們維持了嚴格的成本控制，儘管產生了一些一次性收購相關成本，但銷售、一般及行政費用佔銷售額的比例有所改善。

As we navigate the near-term, we remain focused on our strategic priorities, advancing several key initiatives this quarter, pushing on the pace of innovation, and completing several capacity expansion projects that position us well for the future. With the global footprint, strong balance sheet, and operational excellence, we are building enduring advantages that distinguish our business and support long-term value creation.

在應對近期挑戰的同時，我們將繼續專注於策略重點，在本季度推進幾項關鍵舉措，加快創新步伐，並完成幾個產能擴張項目，從而為未來做好充分準備。憑藉全球佈局、強勁的資產負債表和卓越的營運能力，我們正在建立持久優勢，使我們的業務脫穎而出，並支持長期價值創造。

Moving to slide 4, I want to take a moment to thank our Global Franklin team for their commitment to our customers and to each other. My first year has brought change and an agenda of growth and innovation and market conditions that make great results challenging. We have two new officers that started in the third quarter, and our team has done a great job of getting them up to speed and welcoming them to our Franklin family.

接下來是第 4 張投影片，我想藉此機會感謝我們全球富蘭克林團隊對客戶和彼此的承諾。我上任的第一年充滿了變化，需要製定成長和創新計劃，但市場環境使得取得優異成績充滿挑戰。第三季我們迎來了兩位新警員，我們的團隊出色地幫助他們快速上手，並歡迎他們加入富蘭克林大家庭。

Our culture is strong, and our team is getting stronger. My very humble and sincere thank you to our Global Franklin Electric team. Turning to our results on slide 5. Consolidated sales for the quarter were $582 million up over 9% year-over-year, with strong organic contribution.

我們的企業文化很強大，我們的團隊也越來越強大。我由衷地感謝富蘭克林電氣全球團隊。接下來看一下投影片 5 上的結果。本季合併銷售額為 5.82 億美元，年成長超過 9%，其中內生成長貢獻強勁。

Importantly, pricing was positive as we continue to offset tariff impacts and manage the impacts of inflation through discipline pricing actions. Gross margins were up 20 basis points and operating margins grew by 80 basis points, reflecting strong execution, cost control, and volume leverage.

重要的是，由於我們繼續透過嚴格的定價措施來抵消關稅影響並控制通貨膨脹的影響，因此定價策略是正面的。毛利率上升了 20 個基點，營業利潤率上升了 80 個基點，反映出強勁的執行力、成本控制和銷售槓桿。

Looking at our business segments, water system sales increased 11% year-over-year, driven by price, volume, and acquisitions. Our ability to deliver both price and volume growth this quarter reinforces the strength of our competitive position and demonstrates that our pricing initiatives are holding up well in the market.

從我們的業務部門來看，在價格、銷售和收購的推動下，水系統銷售額年增 11%。本季我們實現了價格和銷售的雙重成長，這鞏固了我們的競爭優勢，也顯示我們的定價策略在市場上表現良好。

Performance was solid across various regions with strength in Europe, the US, and Canada. The US and Canadian markets continue to perform well despite softer housing starts, underscoring our resiliency and ability to capture share even in a challenging environment.

各地區業績表現穩健，其中歐洲、美國及加拿大表現特別強勁。儘管房屋開工量有所放緩，但美國和加拿大市場依然表現良好，這凸顯了我們的韌性和即使在充滿挑戰的環境中也能獲取市場份額的能力。

We're also encouraged by the results of our of several key product lines with groundwater exhibiting momentum and water treatment continuing to gain share and grow organically throughout the year. In energy systems, sales were up nearly 15% year-over-year, reflecting strong growth in the US, Europe, and India.

我們也對幾條主要產品線的業績感到鼓舞，其中地下水業務發展勢頭強勁，水處理業務全年持續擴大市場份額並實現有機增長。在能源系統領域，銷售額較去年同期成長近 15%，反映出美國、歐洲和印度的強勁成長。

As we discussed last quarter, Q2 represents a seasonal peak for this business, and we expected a moderation in Q3 due to timing, product mix, and tariff impacts. Continued price realization efforts will take effect over the coming months, which should help offset the tariff pressure we saw in Q3 and preserve margins as we move into 2026.

正如我們上個季度討論的那樣，第二季度是該業務的季節性高峰，我們預計第三季將因時間、產品組合和關稅的影響而有所放緩。未來幾個月，持續的價格實現努力將發揮作用，這應該有助於抵消我們在第三季度看到的關稅壓力，並在進入 2026 年時保持利潤率。

Order intake remains healthy. The backlog is up, and we continue to see steady demand across the end markets. Our critical asset monitoring business continued to gain traction in the quarter due to deeper customer adoption and ongoing channel expansion.

訂單量保持健康水準。積壓訂單增加，我們持續看到終端市場需求穩定成長。由於客戶接受度的提高和管道的持續擴張，我們的關鍵資產監控業務在本季度繼續取得進展。

In distribution, sales were up 3.4%, driven by both price and volume. This marks the strongest pricing performance we've seen in this business in more than two years and reflects the effectiveness of our self self-help initiatives.

在分銷方面，銷售額成長了 3.4%，這主要得益於價格和銷量的雙重成長。這是兩年多來我們在這個行業中看到的最強勁的定價表現，也反映了我們自助互助舉措的有效性。

Our channel inventory is down slightly year over year and healthy. This is mostly due to stronger performance in our supply chain and shortening of lead times through our value chain. From a macro standpoint, conditions remain variable and residential construction activity remains subdued, leading us to maintain our fo our focus on discipline, execution in this environment.

我們的通路庫存較去年同期略有下降，但整體狀況良好。這主要歸功於我們供應鏈的更有效率運作以及價值鏈中交付週期的縮短。從宏觀角度來看，情勢依然多變，住宅建設活動依然低迷，因此我們仍需在這種環境下保持對紀律和執行的重視。

We continue to perform well relative to the market, supported by strength and key product categories and solid channel relationships. Our wide portfolio and strong customer intimacy provide important earnings durability across evolving market conditions.

憑藉強大的實力、關鍵產品類別和穩固的通路關係，我們持續保持優於市場的良好業績。我們廣泛的產品組合和強大的客戶關係為我們在不斷變化的市場環境中提供重要的獲利穩定性提供了保障。

With that, I'll turn the call back over to Jennifer to discuss the financial results in more detail.

接下來，我將把電話轉回給詹妮弗，讓她更詳細地討論財務表現。

Thank you, Joe. Moving to slide 6, our fully diluted earnings per share was $0.37 for the third-quarter 2025 versus $1.17 for the third-quarter 2024. The company terminated its US pension plan for approximately $55.3 million pre-tax and an estimated EPS impact of approximately $0.93 per share. Our adjusted fully diluted earnings per share was $1.30 for the third-quarter 2025 versus $1.17 for the third-quarter 2024, up 11% versus prior year.

謝謝你，喬。接下來是第6張投影片，我們2025年第三季的完全稀釋後每股收益為0.37美元，而2024年第三季為1.17美元。該公司終止了其美國退休金計劃，稅前損失約 5,530 萬美元，預計每股收益將減少約 0.93 美元。經調整後，2025 年第三季每股收益為 1.30 美元，而 2024 年第三季為 1.17 美元，比去年同期成長 11%。

Moving to slide 7. Third-quarter 2025 consolidated sales were $581.7 million, an increase year-over-year of 9%. The sales increase in the third quarter was due to the incremental sales impact from recent acquisitions and higher volume and price in all three segments.

切換到第7張投影片。2025 年第三季合併銷售額為 5.817 億美元，較去年同期成長 9%。第三季銷售額成長是由於近期收購帶來的增量銷售影響，以及所有三個業務板塊的銷售和價格上漲。

Franklin Electric's consolidated gross profit was $208.7 million for the third-quarter 2025, up from the prior year's gross profit of $189.7 million the gross profit as a percentage of net sales was 35.9% in the third-quarter 2025, an increase of 20 basis points compared to the prior year.

富蘭克林電氣公司 2025 年第三季綜合毛利為 2.087 億美元，高於去年同期的 1.897 億美元；2025 年第三季毛利佔淨銷售額的百分比為 35.9%，比上年同期成長 20 個基點。

Moving on to SG&A expenses, we've seen a 60 basis point improvement in our SG&A as a percentage of sales metric as a result of cost improvement actions taken in the last year. SG&A expenses were $123.5 million in the third quarter of 2025 compared to $116 million in the prior year.

接下來是銷售、一般及行政費用，由於去年採取了成本改善措施，我們的銷售、一般及行政費用佔銷售額的百分比指標提高了 60 個基點。2025 年第三季銷售、一般及行政費用為 1.235 億美元，而去年同期為 1.16 億美元。

The increase in SG&A expenses was primarily due to additional expense impact of her 2025 acquisitions, including various one-time deal related costs. Absent acquisition related SG&A expenses, the company experienced an increase in SG&A expense year over year of approximately $2 million or 2%, primarily driven by compensation.

銷售、一般及行政費用的增加主要是由於其 2025 年收購帶來的額外費用影響，包括各種一次性交易相關成本。除去與收購相關的銷售、一般及行政費用，該公司銷售、一般及行政費用年增了約 200 萬美元，即 2%，主要原因是薪酬支出。

Consolidated operating income was $85.1 million in the quarter, up $11.6 million or 16% from $73.5 million in the prior year. The increase in operating income was primarily due to volume pull through price and cost management. Operating income margin was 14.6%, up from 13.8% in the prior year.

本季綜合營業收入為 8,510 萬美元，比去年同期的 7,350 萬美元增加了 1,160 萬美元，增幅達 16%。營業收入的成長主要歸功於價格和成本控制所帶來的銷售拉力。營業利益率為 14.6%，高於前一年的 13.8%。

Moving to segment results on slide 8. Water system sales in the US and Canada were up 9% compared to the third-quarter 2024. At a product level, sales of large dewatering equipment increased 38%. Sales of water treatment products increased 9%. Sales of all other surface pumping equipment increased 4%, and sales of groundwater pumping equipment were flat compared to Q3 2024.

轉到第 8 張投影片上的細分結果。與 2024 年第三季相比，美國和加拿大的水系統銷售額成長了 9%。從產品層面來看，大型脫水設備的銷售量成長了 38%。水處理產品銷售額成長了9%。除 2024 年第三季外，其他所有地面抽水設備的銷售額增加了 4%，而地下水抽水設備的銷售額與 2024 年第三季持平。

Water system sales in the markets outside the US and Canada increased 15% overall. Foreign currency translation increased sales by 1%, and recent acquisitions added roughly 13% to sales. Excluding the impact of acquisitions and foreign currency translation, sales in the third quarter of 2025 increased 1%, led by higher sales in Europe, partially offset by sales declines in Latin America.

美國和加拿大以外市場的水系統銷售額整體成長了 15%。外幣折算使銷售額增長了 1%，最近的收購使銷售額增長了約 13%。剔除收購和外幣折算的影響，2025 年第三季銷售額成長 1%，主要得益於歐洲銷售額的成長，但部分被拉丁美洲銷售額的下降所抵銷。

Water systems operating income was $60.2 million up $7.4 million or 14% versus the prior year. The increase in operating income was primarily due to higher sales and price offsetting inflation. The third quarter operating margin was 17.9%, an increase of 40 basis points from 17.5% in the third quarter of the prior year.

水務系統營業收入為 6,020 萬美元，較上年增加 740 萬美元，增幅達 14%。營業收入的成長主要是由於銷售額和價格上漲抵消了通貨膨脹的影響。第三季營業利益率為 17.9%，比去年同期的 17.5% 成長了 40 個基點。

Distributions third-quarter sales were $197.3 million versus third-quarter sales in 2024 of $190.8 million an increase of 3%. The distribution segment sales increase was primarily due to higher volumes and price realization.

分銷業務第三季銷售額為 1.973 億美元，而 2024 年第三季銷售額為 1.908 億美元，成長了 3%。分銷通路銷售額的成長主要是由於銷售量和價格的提高。

The distribution segment's operating income was $16.3 million for the third quarter, a year-over-year increase of $4.1 million, or 34%. Operating income margin was 8.3% in the third quarter, an improvement of 190 basis points versus the prior year driven by higher volume, positive price realization, and improved margins as a result of margin and structural cost improvement actions taken in the last year.

第三季分銷部門的營業收入為 1,630 萬美元，較上年同期成長 410 萬美元，增幅達 34%。第三季營業利益率為 8.3%，較上年同期提高 190 個基點，主要得益於銷售成長、價格實現以及去年採取的利潤率和結構性成本改善措施帶來的利潤率提高。

Energy systems sales were $80 million an increase of $10.3 million or 15% compared to third-quarter 2024. Energy system sales in the US and Canada increased 11% year-over-year. The increase was broad-based and across all product lines, led by fuel pumping systems.

能源系統銷售額為 8,000 萬美元，比 2024 年第三季增加了 1,030 萬美元，增幅達 15%。美國和加拿大的能源系統銷售額較去年同期成長 11%。此次成長是全面性的，涵蓋所有產品線，其中燃油泵送系統的成長最為顯著。

Outside the US and Canada, energy system sales increased 26%, led by increased sales in India and our European markets. Energy systems operating income was $25.4 million compared to $24.1 million in 2024. Operating income margin was 31.8% compared to 34.6% in the prior year, a decline of 280 basis points.

在美國和加拿大以外，能源系統銷售額成長了 26%，其中印度和歐洲市場的銷售成長最為顯著。能源系統營業收入為 2,540 萬美元，而 2024 年為 2,410 萬美元。營業利益率為 31.8%，而去年同期為 34.6%，下降了 280 個基點。

Operating income margins decreased primarily due to unfavorable geographic mix in sales, increased tariff impact, and a challenging comparable in 2024. The effective tax rate was 27% for the quarter compared to 24% in the prior year quarter.

營業利益率下降的主要原因是銷售地域組合不利、關稅影響增加以及 2024 年可比業績具有挑戰性。本季實際稅率為 27%，而上年同期為 24%。

The change in the effective tax rate was driven by an increase in foreign earnings, tax rates higher than the US rate, as well as less favorable discrete items. Moving to the balance sheet and cash flows on slide 9, the company ended the third quarter of 2025 with a cash balance of $102.9 million and with $66 million outstanding under its revolving credit agreement.

實際稅率的變化是由海外收入增加、高於美國稅率的稅率以及不利的個別項目所驅動的。在第 9 張投影片中，我們來看資產負債表和現金流量表。截至 2025 年第三季末，該公司現金餘額為 1.029 億美元，循環信貸協議下未償還金額為 6,600 萬美元。

We generated $135 million in net cash flows from operating activities during the third quarter compared to $151 million in 2024. The company did not engage in stock repurchases in Q3 of this year. Year-to-date, we have repurchased approximately 1.4 million shares from shareholders.

第三季度，我們的經營活動產生的淨現金流為 1.35 億美元，而 2024 年預計為 1.51 億美元。該公司今年第三季沒有進行股票回購。今年迄今為止，我們已從股東手中回購了約 140 萬股股票。

As of the end of the third quarter of 2025, the total remaining authorized shares that may be repurchased is approximately 1.1 million shares. Yesterday, the company announced a quarterly cash dividend of $0.265. The dividend will be payable November 20 to shareholders of record on November 6th.

截至 2025 年第三季末，剩餘可回購的授權股份總數約為 110 萬股。昨天，該公司宣布派發季度現金股息，每股0.265美元。股利將於11月20日支付給11月6日登記在冊的股東。

Moving to slide 10, we are holding our full-year expectations of $2.09 billion to $2.15 billion and tightening the range of our EPS guidance. We are maintaining the midpoint of our GAAP EPS guidance, targeting a range of $4 per share to $4.20 per share, adjusted to remove the impact of the termination of our US pension program.

翻到第 10 張投影片，我們維持全年 20.9 億美元至 21.5 億美元的預期，並收緊每股收益預期範圍。我們維持 GAAP EPS 預期中位數，目標區間為每股 4 美元至 4.20 美元，並已調整以消除終止美國退休金計畫的影響。

Now I will turn the call back to Joe for some additional comments. Joe?

現在我將把電話轉回給喬，請他補充一些意見。喬？

Thanks, Jennifer. Turning to slide 11 in our value creation framework centered on four key pillars that guide everything we do at Franklin Electric growth acceleration, resilient margins, strategic investments, and top tier talent.

謝謝你，珍妮弗。接下來請看第 11 張投影片，了解我們的價值創造框架，該框架以四個關鍵支柱為中心，指導我們在富蘭克林電氣所做的一切：成長加速、穩定的利潤率、策略投資和頂尖人才。

This quarter we made great progress toward our growth and investment objectives. This past year we've added great talent. We've improved our integrated operating model, made two important acquisitions, and saw our focused margin efforts in water treatment and distribution gain momentum.

本季我們在實現成長和投資目標方面取得了巨大進展。過去一年我們引進了許多優秀人才。我們改進了一體化營運模式，進行了兩項重要收購，並且我們在水處理和分銷領域集中提升利潤的努力取得了進展。

Moving to slide 12, innovation is core to our growth strategy. As several of our legacy markets are more mature, we are sharpening our focus on customer feedback, aligning our priorities with their evolving needs, and leveraging the strength of our channel partners by delivering targeted solutions, we continue to drive meaningful growth across our business.

翻到第 12 張投影片，創新是我們成長策略的核心。隨著我們一些傳統市場的日趨成熟，我們更加重視客戶回饋，調整我們的優先事項以適應他們不斷變化的需求，並透過提供有針對性的解決方案來發揮通路合作夥伴的優勢，從而持續推動業務的顯著增長。

I'd like to highlight our new pressure boosting platform. Which enhances efficiency and reliability for homeowners, businesses, and contractors. Three new products we are launching this year the VR SpecPAK, which was built to bring a wide range of features in and an industry leading footprint, the Inline SpecPAK designed for an efficient footprint with minimal noise, and our VersaBoost Pro, which is easy to use and solves your residential pressure challenges in an elegant and compact design.

我想重點介紹一下我們新的增壓平台。這提高了房主、企業和承包商的效率和可靠性。今年我們將推出三款新產品：VR SpecPAK，旨在提供廣泛的功能和行業領先的佔地面積；Inline SpecPAK，設計高效，噪音極低；以及我們的 VersaBoost Pro，它易於使用，以優雅緊湊的設計解決您的住宅壓力難題。

These products are seeing strong interest in early adoption. And all the quality and service expected from a Franklin product line. The pressure boosting market is growing, is a growing one and shows our commitment to migrate to faster growing applications in our markets. And now on to slide 13.

這些產品在早期階段就受到了消費者的強烈關注。並且具備富蘭克林產品線一貫的高品質與服務。增壓市場正在成長，並且還在不斷成長，這表明我們致力於向我們市場中成長更快的應用領域轉型。現在來看第13張投影片。

We also made meaningful progress in our global capacity expansion with a new factory on our campus in Izmir, Turkey, the latest addition. We are a global company and growing our capabilities close to our growing customer needs in Eastern Europe and the Middle East are critical for our growth.

我們在擴大全球產能方面也取得了實質進展，在土耳其伊茲密爾的園區內新建了一家工廠，這是最新的成果。我們是一家全球性公司，在東歐和中東地區不斷提升自身能力，以滿足日益增長的客戶需求，對我們的發展至關重要。

We had the chance to review this progress during a recent visit and are pleased to start production in Q1. We will now turn the call over to Andrew for questions. After Q&A, we will return for closing remarks. Andrew?

我們最近有機會考察了這項進展，並很高興能在第一季開始生產。現在我們將把電話交給安德魯，回答大家的問題。問答環節結束後，我們將返回作總結發言。安德魯？

Thank you. (Operator Instructions)

謝謝。（操作說明）

Mike Halloran, Baird.

麥克哈洛蘭，貝爾德。

Hey, good morning, everyone.

嘿，大家早安。

Good morning.

早安.

Good morning, Mike.

早上好，麥克。

Hey, so, can you just give some thoughts on how you see the end markets playing out as we as we move into next year, probably a bigger focus on the water markets as you sit here today, maybe just put takes and and and how you see the sequential trends playing out, sequential trends imply growth next year on a volume basis. Is volume growth something you're planning for in some of those core water markets next year, or is it mostly going to be led by price just kind of understand how those puts and takes are playing out as we sit here today.

嘿，那麼，您能否談談您對明年終端市場發展的看法？鑑於您今天在這裡的關注點，您可能更關注水市場，也許可以談談捕撈量以及您如何看待連續性趨勢？連續性趨勢表明，明年的捕撈量將會成長。明年，您是否計劃在一些核心水市場實現銷售成長？還是銷量成長主要將由價格驅動？我們想了解目前市場供需關係的發展。

Yeah, thanks Mike. I think, as we look at next year if we see market conditions relatively similar, starting with the US and Canada to this year, which is, subdued market, flattish market, but we do expect volume growth. I think, a key part to our story, if you look over the last few quarters is delivering volume expansion in markets that aren't really.

謝謝你，麥克。我認為，展望明年，如果我們看到市場狀況與今年相對相似，從美國和加拿大開始，市場低迷，市場趨於平穩，但我們確實預期銷量會成長。我認為，回顧過去幾個季度，我們故事的關鍵在於在那些實際上並沒有實現銷售成長的市場中實現了銷售成長。

Doing anything that are helping us a ton. If you look at housing starts, if you look at interest rates, all of the other trends that we see in here in the market. But our expectation is volume growth. One of the reasons we like ending this conversation on innovation is, we want to create some of that own space, some of that space for ourselves.

做任何對我們幫助很大的事情。如果你看看房屋開工量，請看看利率，看看我們在這裡看到的市場上的所有其他趨勢。但我們預期銷量會成長。我們喜歡結束關於創新的對話的原因之一是，我們想為自己創造一些空間，一些屬於我們自己的空間。

So I think our good channel partner relationships, some new products we're bringing to market. I think the story of bringing new products to our end customers, this is both distribution, this is in the water systems business overall. And then, adding dealer and expanding our network and water treatment, we feel that that that flywheel has helped us to kind of create some of our own space even in in the more mature markets. I would say when you look outside the US, we're more optimistic about just the market in general for water.

所以我認為，我們良好的通路合作夥伴關係，以及我們正在推向市場的一些新產品，都對我們有所幫助。我認為，將新產品帶給終端客戶的故事，既關乎分銷，也關乎整個水系統業務。然後，透過增加經銷商、擴大我們的網路和水處理業務，我們覺得這種飛輪效應幫助我們即使在更成熟的市場中也開闢了一些屬於我們自己的空間。我認為，放眼美國以外，我們對整個水市場都更加樂觀。

We've built a strong position in Latin America with our acquisition, we're starting to see, some of that pull through on the on the gross energy side there, with our acquisitions in large dewatering, we read about the trends in mining, we read about the trends where we have to move, big volumes of water, getting those products to the markets that need them in Brazil and South Africa and other places, some of the initial trends, on a smaller scale, but they're positive.

我們透過收購在拉丁美洲建立了強大的地位，我們開始看到，在當地的能源總收入方面，我們的一些收購正在發揮作用。我們在大型脫水領域進行了收購，我們了解到採礦業的趨勢，以及我們必須轉移大量水資源的趨勢，並將這些產品運送到巴西、南非和其他地方需要它們的市場。一些初步趨勢雖然規模較小，但都是正面的。

And I think, talking about capacity expansion, where we see growth is really where we're trying to make sure that we're positioned to serve it. We talked a little bit about India, the Middle East, Turkey, just Eastern Europe in general, that position we have in Southeast Europe has been one that's paid some good dividends.

我認為，談到產能擴張，我們看到成長的地方，正是我們努力確保能夠滿足成長需求的地方。我們稍微談了一下印度、中東、土耳其，以及整個東歐地區，我們在東南歐的地位已經帶來了一些不錯的收益。

So we feel better about market growth outside the US flattish, but yes, volume expectation. And we would expect, the opportunity to price for price realization to be more subdued, but we do expect price next year as well.

因此，我們對美國以外地區的市場成長持平的看法有所好轉，但銷售預期確實如此。我們預計，定價以實現價格實現的機會將更加有限，但我們仍然預計明年價格也會有所波動。

And part of that price is just to carry over work that you've gotten this year into next year, right? So that price common is less is more incremental price from what you've already announced.

而這其中一部分費用就是讓你把今年已經完成的工作延到明年，對吧？所以，這個價格通常比你已經公佈的價格低一些，也就是增量價格要高一些。

Exactly. I think you're going to see price carry over in that 1% to 2% range based on what we've done thus far, but our expectation is there'll be some more price. I think Jennifer alluded to this, but you know. We we set price in some of our segments here going into next year. The energy segment is an example, so we do expect incremental price next year as well.

確切地。根據我們目前所做的工作，我認為價格將延續在 1% 到 2% 的範圍內，但我們預計價格還會進一步上漲。我覺得珍妮佛暗示過這一點，但你知道的。我們已經為明年部分產品線設定了價格。能源領域就是一個例子，因此我們預期明年價格也會上漲。

And last question, just maybe help with the energy systems margin profile obviously variability as you work through this year mix I'm assuming is a big component of that. What's the baseline that we should be thinking about for this year as we move into next year? In other words, how do you expect that to play out and what's kind of the base should we should be building off of?

最後一個問題，或許可以幫您分析能源系統利潤率曲線，顯然，隨著您今年的工作，利潤率曲線的波動性會很大，我假設這是其中的一個重要因素。當我們展望明年時，今年我們應該考慮的基準是什麼？換句話說，你認為事情會如何發展？我們應該以什麼樣的基礎為基礎？

Yeah, I'll make a comment and Jennifer can add some color to it. I think we, we've kind of set the set the table that as we grow internationally, you're going to see a slight moderation based on mix and that growth is starting to read out. Middle East India, we call those out specifically.

好的，我會發表一些評論，然後珍妮佛可以補充一些細節。我認為我們已經為國際擴張做好了準備，你會看到基於產品組合的輕微放緩，而這種增長已經開始顯現。中東和印度，我們特別指出這些地區。

From a tariff standpoint, we knew that Q3 would be the most pressure, and part of that is due to that one time April big lift on some of those input costs, coming from China. So one is we're working to normalize that supply chain and make sure that we're prepared for next year, but two is that's, my comment on incremental price. Maybe, Jennifer wants to talk about our thoughts on margin as we go to next year for that energy segment. Yeah.

從關稅角度來看，我們知道第三季壓力最大，部分原因是4月來自中國的某些投入成本大幅上漲。所以，一方面，我們正在努力使供應鏈正常化，並確保我們為明年做好準備；另一方面，這就是我對價格上漲的看法。或許，珍妮佛想和我們談談明年能源板塊的利潤率問題。是的。

I think we're well positioned as Joe mentioned, we did announce a price increase for the energy systems business in September that will kick in in December. That will help as well as we continue to moderate additional tariffs or the tariffs that we're experiencing.

我認為我們目前處境不錯，正如喬提到的那樣，我們在9月份宣布了能源系統業務的價格上漲，該價格將於12月份生效。這將有所幫助，因為我們將繼續緩和額外關稅或我們正在面臨的關稅。

In Q2 we did call out, we shared that that was a little bit of an anomaly and Joe mentioned that we were in the high-30s, in our operating margin that was a little bit of an anomaly given the outsides mix that we saw in the quarter where we ended this quarter, we're very pleased, in the low-30s, we'll continue to see that play out through the balance of the year.

第二季我們確實提到過，那是一個有點反常的情況，喬也提到，考慮到我們上一季的外部因素，我們的營業利潤率在30%以上確實有點反常。我們非常滿意，目前在30%左右，我們希望這種情況能在今年餘下的時間裡繼續保持下去。

Yeah, that low to mid-30s, kind of expecting further income growth next year is the expectation we would set. But we feel good about the strength of that portfolio. It's growing, it's going to grow well outside the US, but the US growth for next year in that segment looks looks strong as well.

是的，我們預期營收將在30歲出頭到30歲中段，並預期明年收入會進一步成長。但我們對該投資組合的實力感到滿意。它正在成長，而且在美國以外地區將會大幅成長，但明年美國該領域的成長看起來也很強勁。

Really appreciate it. Thank you.

非常感謝。謝謝。

Thanks, Mike.

謝謝你，麥克。

Thank you. Bryan Blair, Oppenheimer.

謝謝。布萊恩布萊爾，奧本海默。

Thank you. Good morning, everyone.

謝謝。各位早安。

(multiple speakers)

（多位發言者）

The value crop of the water pressure boosting one, that's pretty clear, you know we still have some of the technology at WEFTEC. It's impressive. I was wondering if you're willing to speak to, your team's opportunity there a bit more, what's the current TAM of the pressure boosting vertical and and what kind of share capture, do you think is realistic over say the medium term?

水壓增壓器的價值所在，這一點很明顯，你知道，WEFTEC 仍然擁有一些相關技術。令人印象深刻。我想請您再詳細談談您團隊在該領域的機會，目前壓力提升垂直領域的潛在市場規模是多少？您認為在中期內，現實的市佔率目標是多少？

Yeah, we feel, I mean, the TAM is in the, high hundreds of millions of dollars that we have access to today, but I would say what what we like about that, about the application in that space is it's a growing market. We see that market continuing to grow as you see, further expansion in suburbs and cities and residential buildings, the need for pressure boosting just becomes more and more as hotels get built, as businesses get built.

是的，我們覺得，我的意思是，我們目前能夠觸及的潛在市場規模高達數億美元，但我想說的是，我們喜歡這個領域應用的原因是，這是一個不斷成長的市場。正如你所看到的，我們看到市場持續成長，郊區、城市和住宅大樓進一步擴張，隨著旅館和商業建築的興建，對增壓的需求也越來越大。

And the the opportunity for us is both on commercial, industrial and residential, which is why we wanted to show a blend of some of those different products there. I think you saw a few of those in terms of the spec pack products.

我們的機會涵蓋商業、工業和住宅領域，所以我們想在那裡展示一些不同產品的組合。我想你在規格包產品中已經看到一些這樣的產品了。

But customers are very specific about, we want to be able to put these in in existing buildings as they have those needs and we have to address those needs, and they're asking for a couple of things. They're asking for a variety of solutions.

但客戶的要求非常具體，我們希望能夠將這些設備安裝到現有建築物中，因為他們有這些需求，我們必須滿足這些需求，他們提出了一些要求。他們要求提供多種解決方案。

All of the elements of those products are designed internal to Franklin, so from software, hardware, the actual panels, the pumps, etc. And they want to be able to park those into compact spots within legacy footprint. So you know we've found good response to those products.

這些產品的所有元素都是富蘭克林公司內部設計的，包括軟體、硬體、實際的控制面板、水泵等等。他們希望能夠將這些產品安裝在現有建築佔地面積內的緊湊位置。所以你知道，我們發現這些產品反應很好。

We think that that's going to continue to grow as you see the urbanization, not just in the US from a commercial industrial standpoint, but really in Latin America and the Middle East and other places. And from a residential standpoint, we're excited we've been working on a, on an elegant residential solution there for a while. So to launch these three products in the back half of this year, the response thus far has been very positive.

我們認為，隨著城市化進程的推進，這種情況將會繼續增長，不僅在美國從商業工業角度來看如此，而且在拉丁美洲、中東和其他地區也是如此。從住宅的角度來看，我們很高興，我們已經為此努力了一段時間，致力於打造一個優雅的住宅解決方案。因此，今年下半年推出的這三款產品，目前為止反應非常正面。

That's very encouraging. Appreciate the color. To ask a finer point on energy margin just to level set there, are you willing to parse out the impact of geographic mix versus tariffs in Q3?

這非常令人鼓舞。欣賞這種顏色。為了更精確地探討能源利潤率問題，您是否願意分析一下第三季地域結構與關稅的影響？

Yeah, I would say, and we're looking, year over year, the majority of that impact is going to be tariffs. I would say probably more than 2/3 of the impact you're seeing on the variance year over year. The balance is going to be really mixed. Yeah, primarily mixed.

是的，我認為，而且我們逐年觀察，大部分影響將來自關稅。我認為，你所看到的年度差異的影響可能超過三分之二。情況將會非常複雜。是的，主要是混合的。

Okay, understood. And one last one if I may, obviously you have. A lot of balance sheet capacity. Your team seems quite keen on on deploying your balance sheet going forward. How are you feeling about the deal environment now? You've obviously transacted a couple of highit deals, and I'll reiterate, there's a ton of capacity there, so curious what you're seeing, the opportunities that action ability, etc.

好的，明白了。如果可以的話，我再問最後一個問題，顯然你已經有了。資產負債表容量充足。您的團隊似乎非常熱衷於在未來運用您的資產負債表。您覺得目前的交易環境如何？顯然你已經完成了幾筆高收益的交易，我再重申一遍，那裡有很多機會，所以我很好奇你看到了什麼，有哪些機會可以付諸行動等等。

Yeah, we think that space is getting a little bit more active. I'll just put it that way, we saw a little bit of a pause in the first half of the year as people were trying to sort out what tariff impacts would be and what the supply chains of these companies looked like, but definitely there's more activity there. We're seeing and hearing more things.

是的，我們認為太空領域正變得越來越活躍。這麼說吧，今年上半年市場出現了一些停滯，因為人們都在努力弄清楚關稅的影響以及這些公司的供應鏈狀況，但現在市場活動肯定更加活躍了。我們看到和聽到的事情越來越多。

I'd say, more than that though, Brian is, we've built, we built a biz dev team to really focus on putting our eyes on markets that we like more and making sure that we're being proactive as well in terms of how we look at those markets and what further products could could bring to us. I think a nice advantage of Franklin is just our commitment to global growth. Doesn't limit us to just the companies in the US.

不過，我想說的是，布萊恩，我們建立了一個業務拓展團隊，真正專注於我們更喜歡的市場，並確保我們在看待這些市場以及未來產品可能為我們帶來什麼方面也保持積極主動。我認為富蘭克林的一大優勢在於我們對全球成長的承諾。這並不將我們局限於美國的公司。

The markets inside and the outside US in terms of what's available and the prices you pay for them are very different. So similar to your reference to our deals in Q1, we cast a global net and if you look. Our funnel, it's a good mixture of companies inside and outside the US, so we're feeling good about it. I think, we want to put that balance sheet to good use next year and we feel better about it coming into '26 than we did, as we came into 2025.

美國境內外的市場，無論是商品種類或價格，都大相逕庭。所以，就像您提到的我們在第一季的交易一樣，我們在全球範圍內撒網，如果您仔細觀察。我們的銷售漏斗很好地融合了美國境內外的公司，所以我們對此感到很滿意。我認為，我們希望明年能好好利用這份資產負債表，而且我們感覺進入 2026 年的情況比進入 2025 年時要好得多。

Helpful color. Thank you again.

有用的顏色。再次感謝。

Thanks, Bryan.

謝謝你，布萊恩。

Thank you. Matt Summerville, DA Davidson.

謝謝。馬特·薩默維爾，地方檢察官戴維森。

Thanks. I want to talk a little bit more about energy. You mentioned seeing some nice backlog sort of growth there. If you can maybe touch on that a little bit. And then, where are we from a cycle standpoint with respect to ongoing investments in fuel and infrastructure and what kind of informs you of that view?

謝謝。我想再多談談能源問題。你曾提到那裡的訂單積壓量出現了不錯的成長。如果您能稍微談談這方面的話。那麼，從週期角度來看，我們在燃料和基礎設施的持續投資處於什麼階段？是什麼因素讓你得出這樣的結論？

Yeah, good morning, Matt. Maybe a couple of thoughts there. One is just starting with kind of that core and our biggest market in the US. The outlook for '26, looks favorable right now. We can see a little further out in that business from a backlog standpoint relative to some of our other.

早安，馬特。或許可以考慮以下幾點。一方面，我們正從核心業務和我們在美國最大的市場起步。目前來看，2026年的前景十分樂觀。從積壓訂單的角度來看，我們可以看到該業務相對於我們其他一些業務而言，前景更為光明。

Businesses and the backlog is is up nicely year over year. You can see, the kind of the revenue trend that really started as we came into into this year and we expect that to continue for some time, but '26 growth prospects for the major marketers, the CSO investment, our view there is that continues to be a positive trend and a good story next year.

企業和積壓訂單量較去年同期均有顯著成長。你可以看到，這種收入趨勢從今年年初就開始了，我們預計這種情況會持續一段時間，但對於主要行銷人員而言，2026 年的成長前景，以及首席策略長的投資，我們認為這將繼續是一個積極的趨勢，明年將會是一個好兆頭。

I think we're where we're also excited about, and this has been, a few areas, these are a few areas we've been working on the last few years, is some of the growth that we see outside the US. We really see some positive trends there as well.

我認為我們也對以下幾個領域感到興奮，這些領域是我們過去幾年一直在努力的方向，那就是我們在美國以外的一些成長領域。我們也確實看到了一些正面的趨勢。

Some of these are regulation driven that that you know we're well positioned to support as people look to strengthen their infrastructure in places like the Middle East. In other instances it's it's building our ability to serve those customers in emerging markets that are serving, more cars, more people, the more need for regulation in countries like India and Latin America. So we see that trend continuing next year is shaping up to be a nice year from a, from an outlook standpoint in energy.

其中一些是監管驅動的，你知道，當人們尋求加強中東等地的基礎設施時，我們完全有能力提供支援。在其他情況下，它是為了增強我們服務新興市場客戶的能力，這些市場擁有更多的汽車和人口，因此像印度和拉丁美洲這樣的國家對監管的需求也更大。因此，我們看到這一趨勢將在明年延續，從能源前景來看，明年將是美好的一年。

Thanks and then I apologize if I missed it. Could you give a little bit more granularity as to groundwater performance, in particular what you saw in North America across Resi and Ag and maybe what your high level thinking is for for next year in those key markets.

謝謝，如果我錯過了，我深感抱歉。您能否更詳細地介紹一下地下水錶現，特別是您在北美住宅和農業領域觀察到的情況，以及您對明年這些關鍵市場的總體規劃？

Yeah, the, yes, the groundwater market in the US, was the market itself was relatively flat this year. I think our volume growth we feel is a bit of an outlier, in our space. I think next year that outlook looks similar where the market, we tend to see as flattish, we'd remind everyone that, one benefit of Franklin is a replacement rate in the groundwater, both Ag and Resi is very high in the high-70s.

是的，今年美國的地下水市場整體而言比較穩定。我認為，在我們這個領域，我們的銷售成長有點異常。我認為明年的前景與往年類似，市場傾向於保持穩定。我們想提醒大家，富蘭克林的一個好處是地下水的補充率，無論是農業用水或生活用水，都非常高，達到 70% 以上。

So from that standpoint, for us it's relatively stable, and then, we look to create our own space. But I think in the US, that market is going to see, low single-digit growth, and part of that is supplemented by, some share taking some additional work that we know we need to do. So not a great ag market for next year. I think similar to this year, but I think we're well positioned to be able to serve that market and continue to see some volume growth.

所以從這個角度來看，對我們來說，情況相對穩定，然後，我們專注於創造屬於我們自己的空間。但我認為在美國，該市場將會出現個位數低成長，而這部分成長將得益於我們所知的需要做的一些額外工作，以搶佔一些市場份額。所以明年的農產品市場前景不太樂觀。我認為情況與今年類似，但我認為我們已經做好充分準備，能夠服務該市場並繼續實現銷售成長。

Thanks.

謝謝。

Yeah, thanks, Matt.

謝謝你，馬特。

Thank you. Ryan Connors, Northcoast Research.

謝謝。Ryan Connors，北海岸研究公司。

Good morning. I, wanted to take a go back to one of the first questions regarding kind of the planning assumptions for 2026, and look at that more from a scenario perspective. I mean you laid out your base case pretty well, but there's a lot of talk about renewed slow renewed weakness and residential, especially on new lot development. But at the same time we have the Fed lowering rates which should be good. I mean, what is there an upside scenario for for 2026 where, talk about if things go well, what could things look like, around that base case?

早安.我想回到最初關於 2026 年規劃假設的問題之一，並從情境分析的角度來看。我的意思是，你已經很好地闡述了你的基本觀點，但是現在有很多關於經濟再次緩慢疲軟以及住宅市場（尤其是新地塊開發）的討論。但與此同時，聯準會正在降低利率，這應該是件好事。我的意思是，2026 年有哪些有利的局面？如果一切順利，在基本情況的基礎上，情況會是什麼樣子？

Right, I feel I was asked this question last year and tried to predict it and maybe didn't do a great job. I would say interest rates, you would have to move quite a bit more before we see yields drop and we see that impact in terms of just, people being able to to get houses started and to make those investments. Our expectation and kind of how we're modeling it is again is is a subdued residential market.

沒錯，我覺得去年有人問過我這個問題，我也試著預測了一下，但可能預測得不好。我認為，利率還需要大幅下降，才能看到收益率下降，並真正對人們購屋和投資產生影響。我們預計，並且我們目前採用的模型也表明，住宅市場將持續低迷。

But I think you know I just call out a couple of things and I know we talked about these in our, in our script here, but you know one is if you look at the water treatment business, we think that's a great example of our ability to succeed in markets that are relatively flat. You know that business has continued to grow.

但我想你知道，我只想提幾點，我知道我們在我們的腳本裡也談到了這些，其中一點是，如果你看看水處理業務，我們認為這是我們在相對平穩的市場中取得成功的一個很好的例子。你知道公司業務一直持續成長。

We've expanded our margin there in a really nice way and part of it is just due to adding customers, adding dealer, adding to our channel. I think you know on the on the other side, if you look at that distribution business, the growth in both volume and price in that business is about bringing products that we can see in certain regions to other products, we now have a fairly nice reach with both our independent distributors and our distribution, arm as well. And finding other opportunities to bring products there whether it's in wastewater or in groundwater. So I think that that template has proven effective and we expect that to continue next year.

我們在該地區的利潤率得到了非常好的提升，部分原因是由於增加了客戶、增加了經銷商、擴大了我們的通路。我認為您也知道，另一方面，如果您看看分銷業務，您會發現該業務的銷售和價格增長，是因為我們能夠將某些地區的產品推廣到其他地區。現在，我們透過獨立經銷商和分銷部門都擁有相當不錯的覆蓋範圍。並尋找其他機會將產品輸送到那裡，無論是廢水還是地下水。所以我認為這個模式已被證明是有效的，我們預計明年將繼續如此。

Even if you know we don't see that upside, I would say just a final comment, your question is there an upside scenario? Well, one is, given our customer intimacy, the fact that we can see in customers. I tell you we're ready for it, we've got a value chain from suppliers to factories to a really strong channel throughout where if we see those trends, our ability to get product there and to serve those markets, I think is is would be an exciting opportunity. Not a whole lot of it baked in our plan here right now as we look at 2026.

即使你知道我們看不到這個好處，我還是想最後補充一點，你的問題是：是否有有利的情況？嗯，其中一個原因是，鑑於我們與客戶的密切關係，我們能夠從客戶身上看到這一點。我告訴你，我們已經準備好了。我們擁有從供應商到工廠的完整價值鏈，以及非常強大的管道。如果我們看到這些趨勢，我們有能力將產品送到這些市場並服務這些市場，我認為這將是一個令人興奮的機會。展望 2026 年，我們目前的計畫中還沒有太多這方面的內容。

I'll just add on to that last comment there on being well positioned and Joe touched on this from a water treatment perspective we've added significant share and storefront there, and then distribution with our on site inventory applications and the ads that we've done in 2025 sets us up for real great success.

我只想補充一下剛才關於定位良好的評論，喬也從水處理的角度談到了這一點，我們在那裡增加了大量的市場份額和門店，然後通過我們的現場庫存應用和我們在 2025 年所做的廣告進行分銷，這將使我們取得真正的巨大成功。

If those macros take off, we'll we'll capitalize on that even more. If they don't, I mean, we're going to continue to grow that and. I think the service, the quality, the lead time that we've been able to demonstrate has really helped us with gaining that share and gaining that customer loyalty, so that will continue.

如果這些宏命令奏效，我們將進一步利用這一點。如果他們不這樣做，我的意思是，我們將繼續發展壯大。我認為我們所展現的服務、品質和交貨時間確實幫助我們贏得了市場份額和客戶忠誠度，這種情況將會持續下去。

Got it thank you. And then the one number that really jumped out large dewatering up 38% if I heard that right, and I know that business does tend to jump around a bit, but that's a big number and I'm just curious any added color there, was that is that is that is a rental fleets involved with that or anything, short-term oriented that that should normalize or does that, set up a difficult comp for next year and any color on that big number and do watering would be helpful.

明白了，謝謝。然後，有一個數字格外引人注目，大面積脫水面積增加了 38%（如果我沒聽錯的話）。我知道業務數據往往會有些波動，但這確實是個很大的數字。我很好奇，這個數字背後是否有其他因素，例如租賃車隊或其他短期用途，這些因素是否會逐漸恢復正常，或者是否會為明年的比較帶來困難？任何關於這個大數字以及澆水情況的解釋都將不勝感激。

Yeah that, so starting with the fleet business, some of that is surely the fleet business and if you remember last year was kind of the low end of that cycle that tends to run in 18 months, kind of an 18 month span. We saw that pick up coming into as we as we exited Q1 coming into Q. And we think that that story continues in 2026, which means that market will be relatively stable and strong.

是的，所以先從車隊業務說起，其中一部分肯定是車隊業務，如果你還記得的話，去年是這個週期（通常持續 18 個月）的低谷期。我們看到，隨著第一季結束進入第二季度，市場開始回升。我們認為這一趨勢將在2026年延續，這意味著市場將保持相對穩定和強勁。

But there's other elements of that large dewatering business that we're excited about, we made a few acquisitions here over the last few years recently in Q1 with PumpEng down in Australia. As we bring those markets to our customer and we start to build that portfolio and take a complete line, in addition to our legacy Pioneer brand, we're seeing some good opportunities there, not only in the industrial and the municipal side in the fleet business, but also in the mining space. So I think dewatering that trend going into next year, we feel it's going to be, a relatively good space for us.

但大型脫水業務的其他方面也讓我們感到興奮，過去幾年我們在這裡進行了一些收購，最近在第一季度收購了澳洲的 PumpEng 公司。隨著我們把這些市場帶給客戶，並開始建立產品組合，推出全系列產品（除了我們傳統的 Pioneer 品牌之外），我們看到了一些很好的機會，不僅在車隊業務的工業和市政領域，而且在採礦領域也是如此。所以我認為，隨著明年這一趨勢的緩解，我們感覺這將是一個相對不錯的發展空間。

Got it okay and then just a couple quick, more very quick ones this this pressure boosting product line sounds very exciting. Is that, is there a big retrofit, opportunity there or is that mostly related to new buildings going up?

明白了，然後快速問幾個問題，這個增壓產品線聽起來非常令人興奮。那是不是意味著有很大的改造機會，還是說這主要與新建築有關？

It's really both from a retrofit standpoint, some of the challenges that customers have, as you add water treatment, as you add other applications for water within legacy, multi-family apartments, hotels, we're finding it's a mixture of customers calling us to say, look, we have problems that, we've got a legacy building here that we need to solve for, same for residents.

從改造的角度來看，客戶面臨的一些挑戰是，當您在老舊建築、多戶公寓、酒店中添加水處理設施以及其他用水應用時，我們發現客戶會打電話給我們說，我們這裡有一些老舊建築需要解決的問題，居民也面臨著同樣的問題。

I think a great time for us is as we're we're servicing that groundwater business or from our water treatment, business to go in and solve those problems. So that one is, it's a mixture. I would say more of that probably is in legacy builds than it is new builds, which again, we're not waiting for interest rates to drop to some for some of those bills to pick up. We think that there's a good market there for us to go serve from a retrofit standpoint. That's probably, it's probably a little bit stronger on the retro than it is on new.

我認為對我們來說，現在正是好時機，因為我們既服務於地下水業務，也透過我們的水處理業務去解決這些問題。所以，那一個是混合物。我認為這種情況在老舊建築中比在新建築中更為常見，而且我們不會等到利率下降到一定程度才去支付這些賬單。我們認為，從改造的角度來看，那裡有一個很好的市場供我們服務。可能，復古風格比新風格更明顯一些。

Got it. And then just a housekeeping for you Jennifer it looks like [4x] was, almost $3 million bad guy year over year in the quarter. I mean, does that stabilize, through the end of the year, or should we expect that to be to shrink a little bit for you any any color there would be helpful.

知道了。珍妮弗，還有一件事要跟你說，看起來[4x]是，本季壞人的營收比去年同期成長了近300萬美元。我的意思是，這種情況會穩定到年底嗎？還是說我們應該預期它會略有下降？如果您能提供一些信息，那就太好了。

We're not really anticipating that's really driven step back a little bit that the FX challenges and what we saw in the third quarter and we saw a bit of it in Q2 as well as hyperinflation really in areas such as Turkey, Brazil, and Argentina. We're not really banking on that, improving into Q4, although I do, anticipate we should see some improvements, particularly in Argentina. We're not banking on it at this point in time.

我們不認為這會真正導致經濟出現一些倒退，因為外匯挑戰以及我們在第三季度看到的情況，還有我們在第二季度看到的一些情況，以及土耳其、巴西和阿根廷等地區的惡性通貨膨脹。我們並沒有真的指望第四季度情況會有所改善，儘管我確實預計我們會看到一些改善，尤其是在阿根廷。我們目前並不指望它發生。

Got it. That's helpful. Thanks for your time.

知道了。那很有幫助。感謝您抽出時間。

Thank you.

謝謝。

Thank you.

謝謝。

Walter Liptak, Seaport Research.

Walter Liptak，海港研究公司。

Hi, thanks. Good morning, everyone.

您好，謝謝。各位早安。

Good Morning --

早安--

I wanted to ask about the distribution business. The 8.3% margin looked pretty good, and I wonder if you could help us understand, the different puts and takes there, the cost structure improvements versus mix, versus anything else that went on.

我想諮詢一下分銷業務方面的問題。8.3% 的利潤率看起來相當不錯，我想知道您能否幫我們理解其中的各種利弊，成本結構改進與產品組合，以及其他任何相關因素。

Yeah, maybe just a few thoughts and then I'll let Jennifer add to it, but you know we've really put a clear focus on this business the last year in a couple ways. One is making sure that you know our input costs are well managed, so strategic strategic contracts upstream, working on consignment models to help us align commodity prices with that sell point, and then also just looking at the overall infrastructure of that business.

是的，我先說幾點想法，然後讓珍妮佛補充。你知道，過去一年我們在幾個方面都非常重視這項業務。一方面要確保我們的投入成本得到良好管理，例如上游的戰略合同，以及寄售模式，以幫助我們使商品價格與銷售點保持一致，另一方面還要審視該業務的整體基礎設施。

I think I've mentioned this before, but as we've grown inquisitively over the last four or five years, our opportunity to streamline the back office to make sure that rooftops align with how we serve market. And Jennifer talked about this a moment ago, but how we get better at hub and spoke OSI, which is on-site inventory, and we've just, we've built out a data and a technology infrastructure that allow us to get a lot more efficient in how we serve those end markets.

我想我以前也提到過這一點，但隨著我們在過去四五年裡不斷求知，我們有機會精簡後台，以確保屋頂與我們服務市場的方式保持一致。Jennifer 剛才也談到了這一點，那就是我們如何改進中心輻射式 OSI（即現場庫存），我們已經建立了一個數據和技術基礎設施，使我們能夠更有效率地服務這些終端市場。

We expect that to continue, I think I've said this before, but But we think that there's margin room. We call that out this year, that that would be a key focus for us. It is going into next year as well. So we've taken some of those cost actions in the last few quarters, in terms of aligning cost with market, but also the self-help piece is better input cost, strategic pricing, management. And then just getting more efficient in terms of that overall value chain of how we touch product and serve and customers. So yeah, we're excited about that story and we're excited to continue to talk about it.

我們預計這種情況會繼續下去，我想我以前也說過，但我們認為還有迴旋餘地。我們今年明確指出，這將是我們的重點工作之一。這項政策也將延續到明年。因此，在過去的幾個季度裡，我們採取了一些成本控制措施，使成本與市場保持一致，但自助方面也包括提高投入成本、策略定價和管理水平。然後，在產品、服務和客戶等整個價值鏈方面，提高效率。是的，我們對這個故事感到興奮，也很高興能繼續討論它。

Just to just to pile on there I want to take a moment to give a shout out to our teams in the distribution space that have really worked to improve the margin and the structural cost of our business. That's really driven what you're seeing read out, we saw it in Q2, we saw it in Q3, Joe touched on the margin enhancement just to can maybe provide a little bit of a deeper insight, it's buying better, spending better, but also working with our customers, we had to make some tough decisions and.

最後，我想特別表揚我們分銷領域的團隊，他們為提高公司利潤率和降低業務結構成本做出了巨大努力。這確實推動了你們所看到的業績，我們在第二季看到了這一點，在第三季也看到了這一點。喬談到了利潤率的提高，這或許可以提供一些更深入的見解，那就是採購更有效率、支出更合理，同時也與我們的客戶合作，我們必須做出一些艱難的決定。

In certain skews and so forth to rationalize and make sure that we're we're not sacrificing service to our customers and providing the right products at the right price but also ensuring we reap the respectable margin, for that business.

在某些偏差等等情況下，為了合理化並確保我們不會犧牲對客戶的服務，不會以合適的價格提供合適的產品，同時也要確保我們能從業務中獲得可觀的利潤。

And then the structural work really we did much of that work back in late 2024. You're seeing that read out we continue to make adjustments throughout our our structure to make sure that we have the right structure in place leveraging technology we'll continue to do that as we head into 2026.

至於結構性工作，我們實際上在 2024 年底就完成了大部分工作。從這份報告中可以看出，我們將繼續調整我們的組織結構，以確保我們擁有合適的組織結構，並充分利用技術，我們將繼續這樣做，直到 2026 年。

Okay, great, thank you for that and so for the 2025 cost structure actions and A profit benefits, what kind of magnitude can you if the market were flat next year, could you see profit growth?

好的，非常感謝。那麼對於 2025 年的成本結構措施和利潤收益，如果明年市場保持平穩，您認為利潤成長的幅度會有多大？

Yeah, we expect profit growth in that business for next year. So even with less help from the market, maybe one other comment to just, on the market, I think a big benefit that we've got from that distribution business as well is bringing new products to our end to the end market. So again, with macro headwinds, wherever they may be, we still expect to grow volume and and our margin for that business in 2026.

是的，我們預計該業務明年的利潤將實現成長。所以即使市場提供的幫助較少，關於市場還有一點要補充，我認為我們從分銷業務中獲得的一個巨大好處是，可以將新產品帶到終端市場。所以，儘管宏觀經濟面臨許多不利因素，但我們仍預期到 2026 年，該業務的銷售和利潤率將會成長。

Okay, great. And on the the factory expansion in Izmir, Turkey, is that going to become a creative in 2026? Is there a cost that we should be, modeling in?

好的，太好了。位於土耳其伊茲密爾的工廠擴建項目，能否在 2026 年取得突破性進展？我們是否應該將成本納入考量？

Our expect is to start production in Q1. Clearly anytime you start a new factory, there's some costs associated with ramping that up and commissioning, the equipment. So there could be some impact in the first half of next year, but I would say, our expectation is to run at normalized margins as we get into the back half and then finding ways to make that more efficient.

我們預計將於第一季開始生產。顯然，任何時候開設新工廠，都會產生一些與設備啟動和調試相關的成本。因此，明年上半年可能會受到一些影響，但我認為，我們預計下半年利潤率將恢復正常，然後我們會想辦法提高效率。

We've got a great op team, they know how to start this up. One beautiful thing about that factory is it's on the same campus where we have another factory. So it's not a green field in a new country in a new place. So our expectation is we get to normalize margins, in fairly quick order. So nothing to model at this point. I think this is work that our team needs to do, but we're excited about the start and we're actually ahead of schedule there too.

我們有一個很棒的營運團隊，他們知道如何啟動這個專案。這家工廠的一個優點是它和我們另一家工廠位於同一個園區內。所以這裡不是在新國家、新地方的一片綠地。因此，我們預期利潤率能夠很快恢復正常水準。所以目前沒有什麼可以建模的。我認為這是我們團隊需要做的工作，但我們對目前的進展感到興奮，而且實際上我們在這方面也提前完成了任務。

So, okay, great. Thank you.

好的，太好了。謝謝。

Thank you. I'll now hand the call back over to CEO, Joe Ruzynski for any closing remarks.

謝謝。現在我將把電話交還給執行長喬·魯津斯基，請他作總結發言。

Appreciate it, Andrew. So in summary, a great quarter, we're excited about another solid quarter of both volume and profitability. We continue to execute well, invest strategically, and build momentum for the future. Our team is going to innovate. We're going to focus on growth, and we're going to lead with our great products, our great people, and how we serve our customers.

謝謝你，安德魯。總而言之，這是一個非常棒的季度，我們對銷售和獲利能力在下一個季度都保持穩健成長感到興奮。我們持續保持良好的執行力，進行策略性投資，並為未來發展積蓄力量。我們的團隊將進行創新。我們將專注於成長，並以我們優秀的產品、優秀的人才以及我們服務客戶的方式為先導。

We have more great opportunities in front of us and are pleased with the team that we're building, the strategy we've developed, and the progress thus far in 2025. Our consistent performance through varied market conditions demonstrates the strength of this model and the dedication of our global team. Thank you, everyone, and have a great day.

我們面前還有更多絕佳的機會，我們對正在組建的團隊、制定的策略以及 2025 年迄今為止的進展感到滿意。我們在各種市場環境下都能保持穩定的業績，證明了這個模式的優勢和我們全球團隊的奉獻精神。謝謝大家，祝大家今天過得愉快。

Ladies and gentlemen, thank you for participating. This does conclude today's program, and you may now disconnect.

女士們、先生們，感謝各位的參與。今天的節目到此結束，您可以斷開連線了。