FRANKLIN ELECTRIC CO., INC. (FELE) 2026 Q1 法說會逐字稿

Good day, and welcome to the Franklin Electric reports first-quarter 2026 sales and earnings conference call. (Operator Instructions) Please be advised that today's conference is being recorded.

各位好，歡迎參加富蘭克林電氣（Franklin Electric）2026 年第一季銷售與盈餘電話會議。（接線員指示）請注意，今天的會議將被錄音。

It is now my pleasure to introduce Director of Investor Relations, Dean Cantrell.

現在我很榮幸介紹投資人關係總監 Dean Cantrell。

Thank you, Andrew, and welcome, everyone, to Franklin Electric's first-quarter 2026 earnings conference call. Joining me today is Jennifer Wolfenbarger, our Chief Financial Officer; and Joe Ruzynski, our Chief Executive Officer.

謝謝你，Andrew，也歡迎各位參加富蘭克林電氣 2026 年第一季財報電話會議。今天與我一同出席的有我們的財務長 Jennifer Wolfenbarger，以及我們的執行長 Joe Ruzynski。

On today's call, Joe will review our first quarter business highlights, Jennifer will provide additional details on our financial performance and then Joe will make some additional comments highlighting our Distribution segment. We will then take your questions. A replay link of the webcast will be archived for seven days, and a transcript and audio version of this call will be available on our website tomorrow.

在今天的電話會議中，Joe 將回顧第一季的業務重點，Jennifer 將提供更多財務表現細節，接著 Joe 會補充一些評論，重點說明我們的配銷（Distribution）事業部。之後我們將開放提問。網路直播的重播連結將保存七天，而本次電話會議的逐字稿與音訊版本將於明天在我們的網站上提供。

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 in today's earnings release.

在開始之前，提醒各位：在本次電話會議進行期間，我們將依據 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）的定義，發表前瞻性陳述。這些陳述受到各種風險與不確定性影響，其中許多因素可能導致實際結果與前瞻性陳述存在重大差異。相關因素的討論可見於公司 Form 10-K 年報以及今天的財報新聞稿。

During this call, we will present both GAAP and certain non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in the appendix of our earnings presentation. 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.

在本次電話會議中，我們將同時呈現 GAAP 與若干非 GAAP 財務衡量指標。GAAP 與非 GAAP 指標之間的調節表已收錄於我們財報簡報的附錄。所有在本次電話會議中所作的前瞻性陳述，均基於目前可得資訊；除法律另有規定外，公司不承擔更新任何前瞻性陳述之義務。

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.

今天稍早，我們已發布投影片簡報以搭配我們的事先準備發言。投影片可於我們公司網站 www.franklin-electric.com 的投資人關係（Investor Relations）專區取得。

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

接下來，我將把電話會議交給 Joe。

Thank you, Dean, and good morning, everyone. Thank you for joining today's call. I'm pleased to share our results for the first quarter with you all today.

謝謝你，Dean，各位早安。感謝各位參加今天的電話會議。我很高興今天能與各位分享我們第一季的業績表現。

Let's move to slide 3. Our first quarter was a strong one for all segments. Organic growth was healthy across our end markets with volume growth and disciplined pricing across our segments. Our quarter finished with healthy backlogs and order trends as we entered the second quarter. Our balance sheet remains healthy as we look to continue to invest in our strategic initiatives and returns for our shareholders. Our launch of the Value Acceleration Office is off to a great start with a strong funnel and some good initial returns.

我們請看投影片第 3 頁。第一季對所有事業部而言都表現強勁。我們各終端市場的有機成長維持健康，各事業部在出貨量成長與嚴謹定價方面均有良好表現。進入第二季時，我們以健康的在手訂單（backlog）與訂單趨勢作結。我們的資產負債表仍然穩健，並將持續投資於策略性計畫以及為股東創造回報。我們成立的「價值加速辦公室」（Value Acceleration Office）開局良好，專案管線（funnel）強勁，且已看到一些初步的良好回報。

If we could move to slide 4, I'd like to look at our performance in terms of our strategic objectives and specifically, growth. Our sales were up 10% and each segment saw volume growth along with positive pricing and contribution from new products, channels, and new customers. Our operating income was up 9% with adjusted income up 17%. GAAP EPS was up 15% with adjusted EPS up 24%. Our adjusted EPS growth in Q1 more than doubled our sales growth year over year.

請看投影片第 4 頁，我想從策略目標的角度，特別是成長面向，來檢視我們的表現。我們的銷售額成長 10%，各事業部皆出現出貨量成長，並伴隨正向的定價，以及新產品、新通路與新客戶的貢獻。我們的營業利益成長 9%，調整後利益成長 17%。GAAP 每股盈餘（EPS）成長 15%，調整後 EPS 成長 24%。第一季調整後 EPS 的年增幅度超過銷售成長的兩倍。

This was helped by strong improvement in our income and SG&A productivity. We've worked through some thoughtful restructuring as we align our capacity and production to our regions and markets that are growing, and we work to streamline parts of our business that have grown through acquisition these past few years. We are positioned well for 2026 with a backlog of 10% and a positive book-to-bill as we entered the quarter.

這主要受惠於我們獲利能力與銷售、一般及行政費用（SG&A）生產力的顯著改善。我們已完成一些審慎的重整措施，使產能與生產配置更貼近成長中的區域與市場，同時也致力於精簡過去幾年透過併購而擴張的部分業務。以 2026 年來看，我們具備良好態勢：進入本季時，在手訂單成長 10%，且接單出貨比（book-to-bill）為正。

If we move to slide 5, I'd like to share our progress on some of our strategic priorities. Our value creation model starts with clearer growth focus, and we continue to see opportunities to innovate and serve markets which are good underlying strength. Our dewatering business was driven by 10% growth in the mineral OpEx market, and we are thoughtfully bringing together recent acquisitions in this space, channel expansions and customer acquisition together to build a great part of our portfolio.

請看投影片第 5 頁，我想分享我們在若干策略優先事項上的進展。我們的價值創造模型始於更清晰的成長聚焦，而我們持續看到創新與服務市場的機會，這些市場具備良好的基本面強度。我們的排水（dewatering）業務受惠於礦業營運支出（OpEx）市場 10% 的成長所帶動；同時，我們也正審慎整合近期在此領域的併購，並結合通路擴張與客戶開發，打造我們產品組合中的重要板塊。

In Q1, we launched a great addition to our pressure boosting portfolio with our new VersaBoost product. We are thinking of scale and velocity for new products, and our VersaBoost Pro delivers smarter, reliable water pressure with effortless installation and lasting performance in residential markets. These types of launches will help us set a new bar in 2026 and 2027 for new product vitality and revenue. Our margin expansion efforts are on track with our new Value Acceleration Office launched in 2025. Our funnel is growing, and we expect to solve our biggest growth and productivity challenges with sound governance and speed.

在第一季，我們推出了加壓增壓（pressure boosting）產品組合中的一項重要新產品：VersaBoost。我們在新產品方面著眼於規模與速度；VersaBoost Pro 可在住宅市場提供更智慧、可靠的水壓，安裝更省力，且具備持久的效能。這類產品上市將協助我們在 2026 與 2027 年為新產品活力與營收設定更高標準。我們的毛利率擴張工作正按計畫推進，並由 2025 年成立的價值加速辦公室推動。專案管線持續成長，我們預期透過健全的治理與速度，解決最大的成長與生產力挑戰。

We see our office delivering over $15 million in productivity this year with an opportunity to accelerate this as we move into 2027. Our expectation is to deliver over 100 basis points of productivity a year once we ramp up our efforts. We are pleased to see our focused margin improvement efforts in water treatment, up 410 basis points, and our Distribution business up 210 basis points in the full year 2025. This demonstrates that growth and efficiency can work hand in hand.

我們預期該辦公室今年可帶來超過 1,500 萬美元的生產力提升，並有機會在邁入 2027 年時進一步加速。我們的目標是在投入全面展開後，每年可帶來超過 100 個基點的生產力提升。我們也很高興看到聚焦的毛利率改善成果：水處理業務提升 410 個基點，而配銷業務在 2025 全年提升 210 個基點。這證明成長與效率可以相輔相成。

We are expanding our capital deployment for new projects this year and have recently inaugurated our new water factory in Izmir, Turkey, with more focused expansions and regional efforts in India, South America and Mexico, to name a few. We've continued to smartly buy back shares, 120,000 in Q1, and have continued our dividend expansion in 2026, now at 34 years of growth.

今年我們將擴大資本配置以投入新專案，並且近期已在土耳其伊茲密爾（Izmir）為我們新的水務工廠舉行啟用典禮；此外也在印度、南美與墨西哥等地推動更聚焦的擴建與區域性布局。我們也持續有紀律地回購股票，第一季回購 120,000 股；並在 2026 年持續提高股利，至今已連續 34 年成長。

Most importantly, on team and talent, a big thank you to Franklin's employees as our growth happens every day with every customer serves. Every problem we solve, growth strategy we execute, and employee we keep safe helps us to grow and to build on our strong culture. Our people and our talent are our bedrock.

最重要的是在團隊與人才方面，我要向富蘭克林的員工致上誠摯感謝；我們的成長每天都在發生，體現在每一次對客戶的服務上。我們解決的每一個問題、執行的每一項成長策略，以及確保每一位員工安全，都有助於我們成長並鞏固強大的企業文化。我們的人才與團隊是我們的基石。

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

接下來，我將把電話會議交給 Jennifer，請她更詳細說明財務結果。

Thank you, Joe. Please turn to slide 6. Our fully diluted earnings per share was $0.77 for the first quarter of 2026 versus $0.67 for the first quarter of 2025. First quarter adjusted diluted EPS was $0.83, a new first quarter record compared to our 2025 first quarter adjusted diluted EPS of $0.67. The 24% year-over-year expansion in adjusted diluted EPS was primarily driven by the expansion of our adjusted operating income year over year. This is a testament to our commitment to expand the earnings power of our business.

謝謝你，Joe。請看投影片第 6 頁。2026 年第一季完全稀釋後每股盈餘為 0.77 美元，對比 2025 年第一季為 0.67 美元。第一季調整後稀釋 EPS 為 0.83 美元，創下第一季新高，對比 2025 年第一季調整後稀釋 EPS 為 0.67 美元。調整後稀釋 EPS 年增 24% 主要由調整後營業利益的年增所驅動，這也印證我們致力於提升公司獲利能力的承諾。

There were $3.9 million in restructuring costs in the first quarter of 2026 compared to $0.2 million in the prior-year first quarter. Restructuring costs in the quarter are primarily related to structural improvement initiatives across our global water operations. These actions will deliver savings in 2026 and will be accretive in 2027. The effective tax rate was 24.2% for the quarter compared to 25% in the prior-year quarter. The change in effective tax rate was driven by favorable discrete stock compensation in Q1 of 2026.

2026 年第一季重整費用為 390 萬美元，對比前一年第一季為 20 萬美元。本季重整費用主要與我們全球水務營運的結構性改善計畫相關。這些行動將在 2026 年帶來節省，並在 2027 年具增益效果（accretive）。本季有效稅率為 24.2%，對比前一年同期為 25%。有效稅率的變動主要由 2026 年第一季股票薪酬的一次性有利稅務影響所致。

Moving to slide 7. First-quarter 2026 consolidated sales were $500.4 million, a year-over-year increase of 10%. The sales increase in the first quarter was primarily due to price and volume growth across all three segments as well as the positive impact of foreign currency translation and the incremental sales impact from recent acquisitions. Franklin Electric's consolidated gross profit was $175 million for the first quarter of 2026, up from the prior year's gross profit of $163.9 million. The gross profit as a percentage of net sales was 35% in the first quarter of 2026 compared to the first quarter of 2025 gross profit of 36%, a decline of 100 basis points compared to the prior year. The gross profit margin was unfavorably impacted in the quarter of 2026 by higher material costs driven by the hangover of tariffs.

請看投影片第 7 頁。2026 年第一季合併銷售額為 5.004 億美元，年增 10%。第一季銷售成長主要來自三大事業部全面的價格與出貨量成長，以及外幣換算的正面影響與近期併購帶來的增量銷售貢獻。富蘭克林電氣第一季合併毛利為 1.75 億美元，高於前一年同期的 1.639 億美元。毛利占淨銷售比重在 2026 年第一季為 35%，對比 2025 年第一季為 36%，較前一年下降 100 個基點。2026 年本季毛利率受到較高原物料成本的不利影響，主要源自關稅的後續效應（hangover）。

Selling, general, and administrative expenses were $123 million in the first quarter of 2026 compared to $119.6 million in the first quarter of 2025. The increase in SG&A expenses was primarily due to the incremental impact of our acquisitions in the past year. SG&A as a percentage of net sales was 24.6% in the first quarter of 2026 and 26.3% in the first quarter of 2025. Without the impact of acquisitions, our SG&A as a percentage of net sales was 24%, an improvement year-over-year of 230 basis points.

2026 年第一季銷售、一般及行政費用（SG&A）為 1.23 億美元，對比 2025 年第一季為 1.196 億美元。SG&A 費用增加主要來自過去一年併購所帶來的增量影響。SG&A 占淨銷售比重在 2026 年第一季為 24.6%，而 2025 年第一季為 26.3%。若排除併購影響，我們的 SG&A 占淨銷售比重為 24%，年對年改善 230 個基點。

Consolidated operating income was $48.1 million in the first quarter of 2026, up $4 million or 9% from $44.1 million in the first quarter of 2025. The increase in operating income was primarily due to higher sales volumes in the first quarter. As previously mentioned, there were $3.9 million in restructuring costs in the first quarter of 2026 versus $0.2 million in the prior year first quarter. These were related to structural improvement initiatives across our global water operations. Consolidated operating income before restructuring was $52 million in the first quarter 2026, up $7.7 million or 17% from $44.3 million in the first quarter of 2025. The first-quarter 2026 adjusted operating income margin was 10.4% versus 9.7% in the first quarter of last year, up 70 basis points year over year.

2026 年第一季合併營業利益為 4,810 萬美元，較 2025 年第一季的 4,410 萬美元增加 400 萬美元或 9%。營業利益的增加主要來自第一季較高的銷售量。如先前所述，2026 年第一季的重整費用為 390 萬美元，而前一年第一季為 20 萬美元。這些費用與我們全球水務營運的結構改善計畫相關。扣除重整前的合併營業利益於 2026 年第一季為 5,200 萬美元，較 2025 年第一季的 4,430 萬美元增加 770 萬美元或 17%。2026 年第一季調整後營業利益率為 10.4%，相較去年第一季的 9.7%，年增 70 個基點。

Moving to the segment results starting on slide 8. Global Water Systems sales were up 11% compared to the first quarter 2025, driven by strong price, favorable currency exchange on sales, and additional volumes from our recent acquisitions. Water Systems sales in the US and Canada were up 7% compared to the first quarter of 2025. The sales increase was led by sales of all other surface pumping equipment up 17% as sales of water treatment products increased 8% and sales of groundwater pumping equipment increased 3%.

接著看第 8 頁的部門表現。全球水系統（Global Water Systems）銷售額較 2025 年第一季成長 11%，主要受惠於強勁的價格因素、銷售端有利的匯率變動，以及近期併購帶來的額外銷量。美國與加拿大的水系統銷售額較 2025 年第一季成長 7%。銷售成長主要由其他各類地表抽水設備銷售成長 17% 所帶動，同時水處理產品銷售成長 8%，地下水抽水設備銷售成長 3%。

These sales increases were partially offset by lower sales of dewatering equipment, large dewatering equipment of 9% compared to 2025 in the US and Canada. Sales increased 1% in the first quarter due to the positive impact of foreign exchange rates as compared to the prior year. Water Systems sales in markets outside the US and Canada increased 17% overall.

上述銷售成長部分被排水設備銷售下滑所抵銷；在美國與加拿大，大型排水設備銷售較 2025 年下降 9%。由於外匯匯率相較前一年帶來正面影響，第一季銷售額增加 1%。美國與加拿大以外市場的水系統銷售額整體成長 17%。

Foreign currency translation increased sales by 8% and recent acquisitions added roughly 7%. Excluding the impact of acquisitions and foreign currency translation, sales in the first quarter of 2026 increased in Asia Pacific and Latin America as EMEA sales were down year-over-year. EMEA sales volumes, specifically in the Middle East and Eastern Europe were negatively impacted by the ongoing conflict in the Middle East.

外幣換算使銷售額增加 8%，近期併購約貢獻 7%。若排除併購與外幣換算影響，2026 年第一季銷售在亞太與拉丁美洲增加，而 EMEA（歐洲、中東及非洲）銷售則較去年同期下滑。EMEA 的銷售量，特別是中東與東歐，受到中東持續衝突的不利影響。

Global Water Systems operating income was $44.4 million, up $1 million versus the first quarter of 2025. The operating income margin was 14%, a year-over-year decrease of 110 basis points. There were $3.9 million in restructuring costs in the first quarter of 2026 in the Water segment. Restructuring costs in the quarter are primarily related to structural improvement initiatives across our Global Water operations. Adjusting for restructuring charges, the Water Systems adjusted operating income was $48.3 million, up $4.9 million or 11% from the prior year. With operating income margin of 15.2%, up 10 basis points from the first quarter of last year.

全球水系統營業利益為 4,440 萬美元，較 2025 年第一季增加 100 萬美元。營業利益率為 14%，較去年同期下降 110 個基點。2026 年第一季水務部門發生 390 萬美元的重整費用。本季重整費用主要與我們全球水務營運的結構改善計畫相關。調整重整費用後，水系統調整後營業利益為 4,830 萬美元，較前一年增加 490 萬美元或 11%。營業利益率為 15.2%，較去年第一季提高 10 個基點。

Moving to slide 9. Distribution's first-quarter sales were $150.9 million versus first-quarter 2025 sales of $141.9 million, an increase of 6%. The Distribution segment sales increase was primarily due to higher volumes and price realization. The Distribution segment's operating income was $3 million for the first quarter, a year-over-year increase of $0.9 million. Operating income margin was 2% of sales in the first quarter, an improvement of 50 basis points versus the prior year. Operating income margin increased primarily due to higher sales volume, strong price realization and solid leverage on SG&A costs from higher sales.

接著看第 9 頁。配銷（Distribution）第一季銷售額為 1.509 億美元，對比 2025 年第一季的 1.419 億美元，增加 6%。配銷部門銷售成長主要來自較高的銷量與價格實現。配銷部門第一季營業利益為 300 萬美元，較去年同期增加 90 萬美元。第一季營業利益率為銷售額的 2%，較前一年改善 50 個基點。營業利益率提升主要因銷售量增加、價格實現強勁，以及在銷售成長帶動下對 SG&A（銷售、一般及行政）費用形成良好槓桿。

Moving to slide 10. Energy Systems sales in the first quarter of 2026 were $71.8 million, an increase of $5 million or 7% compared to the first quarter 2025. Energy Systems sales in the US and Canada increased 3% compared to the first quarter of 2025. Outside the US and Canada, Energy System sales increased 29%, primarily in Asia Pacific. Energy Systems operating income was $24.2 million compared to $21.9 million in the first quarter of 2025. The first-quarter 2026 operating income margin was 33.7% compared to 32.8% in the prior year, an improvement of 90 basis points. Operating income margin increased primarily due to higher sales volume, solid price realization, and strong leverage on SG&A costs from higher sales.

接著看第 10 頁。2026 年第一季能源系統（Energy Systems）銷售額為 7,180 萬美元，較 2025 年第一季增加 500 萬美元或 7%。美國與加拿大的能源系統銷售額較 2025 年第一季增加 3%。在美國與加拿大以外，能源系統銷售額增加 29%，主要來自亞太地區。能源系統營業利益為 2,420 萬美元，對比 2025 年第一季的 2,190 萬美元。2026 年第一季營業利益率為 33.7%，相較前一年 32.8%，改善 90 個基點。營業利益率提升主要因銷售量增加、價格實現穩健，以及在銷售成長帶動下對 SG&A 費用形成強勁槓桿。

Moving to the balance sheet and cash flow on slide 11. The company ended the first quarter of 2026 with a cash balance of $80.4 million and with $88 million outstanding under its revolving credit agreement. We used $40.9 million in net cash flows from operating activities during the first quarter compared to $19.5 million in the first quarter of 2025. The main driver for the change versus prior year is higher accounts receivable of $20 million, driven by a year-over-year increase in net sales for the company. The company purchased 120,000 shares of its common stock for approximately $11.3 million in the open market during the first quarter of 2026.

接著看第 11 頁的資產負債表與現金流。公司於 2026 年第一季末的現金餘額為 8,040 萬美元，循環信用協議項下未償餘額為 8,800 萬美元。第一季營運活動淨現金流出為 4,090 萬美元，對比 2025 年第一季的 1,950 萬美元。與前一年相比變動的主要原因為應收帳款增加 2,000 萬美元，係由公司淨銷售額年增所帶動。公司於 2026 年第一季在公開市場以約 1,130 萬美元回購 120,000 股普通股。

As of the end of the first quarter of 2026, the total remaining authorized shares that may be repurchased is about 0.7 million shares. Yesterday, the company announced a quarterly cash dividend of $0.28. The dividend will be payable on May 21 to shareholders of record on May 7.

截至 2026 年第一季末，剩餘可回購的核准股數約為 70 萬股。昨日，公司宣布每季現金股利為 0.28 美元。股利將於 5 月 21 日支付給 5 月 7 日登記在冊的股東。

Moving to slide 12. The first-quarter financial results were in line with our expectations and underlying demand remains. Although our confidence in the outlook is increasing, we are holding our full-year sales expectations of $2.17 billion to $2.24 billion and full-year adjusted diluted EPS to a range of $4.40 to $4.60. This range reflects some uncertainty in our global markets as we further assess the macroeconomic and geopolitical outlook. Our outlook does not include a clawback of tariff-related expenditures. We have formally submitted our request and are awaiting a response, and we'll know more in our Q2 earnings call.

接著看第 12 頁。第一季財務結果符合我們的預期，且基本需求仍然存在。雖然我們對展望的信心正在提升，但我們維持全年銷售預期為 21.7 億至 22.4 億美元，以及全年調整後稀釋 EPS（每股盈餘）為 4.40 至 4.60 美元。此區間反映了在我們進一步評估總體經濟與地緣政治前景時，全球市場仍存在一些不確定性。我們的展望未包含關稅相關支出的追溯返還（clawback）。我們已正式提交申請並正等待回覆，並將在第二季財報電話會議中掌握更多資訊。

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

現在我把電話會議交回給 Joe，請他補充一些額外評論。

Thanks, Jennifer. If we move to slide 13, we want to give a deeper look at our segments these next few quarters. We'll share what we like about the businesses we are in and why we are optimistic about our opportunity to profitably grow them. We'll start this quarter with a look at our Distribution business. As many of you know, we built this segment fairly recently in our history, growing through our strategy of building channel solutions, adding new offerings and smart acquisitions.

謝謝你，Jennifer。若我們看第 13 頁，接下來幾個季度我們希望更深入地檢視各部門。我們將分享我們喜歡所處業務的哪些面向，以及為何我們對能夠以獲利方式成長抱持樂觀。我們將從本季先檢視配銷業務開始。各位多數人都知道，我們在公司歷史中相對近期才建立這個部門，透過打造通路解決方案、增加新產品/服務，以及精準併購的策略來成長。

It has become a recognized leader in the water distribution and services space, along with our strategic partnerships and other leading distributors in the US, it has helped us to develop the strongest channel in our industry. This is an important channel for Franklin Electric manufactured pumps, motors and drives, but also brings together leading products in a wide portfolio to serve the residential groundwater, wastewater, industrial, agricultural, and water treatment markets. This business is now over $700 million with a solid return on invested capital and great opportunities to productively grow.

它已成為水務配銷與服務領域公認的領導者；結合我們的策略夥伴關係以及美國其他領先配銷商，協助我們打造出業界最強的通路。這是一個對 Franklin Electric 製造的泵浦、馬達與驅動器而言非常重要的通路，同時也整合了廣泛產品組合中的領先產品，以服務住宅地下水、污水、工業、農業及水處理市場。此業務目前規模已超過 7 億美元，具備穩健的投入資本報酬率，並擁有極佳的高效率成長機會。

Although we are proud of our 84 branches and 650 OSI locations and wide product portfolio, the real value in this segment is how we help our customers win and how we win with our customers. Starting with how we help our customers win. Critical inventory at customer sites enables them to win jobs and deliver with speed, accelerate growth, and invest in strategic initiatives rather than tying up cash in inventory. Our on-site inventory program, or OSIs, couple real-time inventory with efficient replenishment and a continuously learning supply chain. We offer the most unique solutions in the industry and have grown our OSIs, from 0 to 650 as customers learn how having a wide range of products on their site, we filled at the right time for them to pull as their job requires can lead to winning more business.

雖然我們以 84 個分支據點與 650 個 OSI 據點以及廣泛的產品組合為傲，但此部門真正的價值在於我們如何協助客戶成功，以及我們如何與客戶一起成功。先從我們如何協助客戶成功談起。客戶現場的關鍵庫存使其能夠贏得專案並快速交付、加速成長，並投資於策略性計畫，而不是把現金綁在庫存上。我們的現場庫存計畫（on-site inventory program），亦即 OSI，將即時庫存與高效率補貨及持續學習的供應鏈結合。我們提供業界最獨特的解決方案，並將 OSI 從 0 擴展到 650；隨著客戶了解在其現場備有廣泛產品、並由我們在適當時間補齊以便其依工作需求提取，能夠帶來更多業務勝利。

For customers that order products from us for their daily business, we have built technology solutions to give them 24/7 visibility with our integrated customer portal, simplifying order placement, viewing invoices and payments through one single platform.

對於向我們訂購產品以支援其日常營運的客戶，我們已建立技術解決方案，透過整合式客戶入口網站提供 24/7 的可視性，並在單一平台上簡化下單流程，以及查看發票與付款資訊。

And our ability to help customers win means we work with them on the site, during the job planning process to go beyond transactional support and offer value-added services, including delivery, on-site support, training, design and assembly services. How we win with our customers is by assessing their wider needs to ensure we bring the right solutions at the right time. We have grown our business and value to the markets we serve through a program we call cross-pollination. As we see customer needs in areas like wastewater or water treatment, we have pulled on our expertise and products within Franklin and partnered with the industry leaders to attend the markets that are growing faster. And we are doing it with the efficient service and leading technology platforms we are known for.

而我們協助客戶致勝的能力，意味著我們會在現場、在工作規劃流程中與客戶合作，超越單純交易式的支援，並提供加值服務，包括交付、現場支援、訓練、設計與組裝服務。我們與客戶共同致勝的方式，是評估其更廣泛的需求，確保在正確的時間提供正確的解決方案。我們透過一項稱為「交叉授粉」的計畫，擴大了業務規模，並提升了我們對所服務市場的價值。當我們看到客戶在廢水或水處理等領域的需求時，我們會運用 Franklin 內部的專業與產品，並與產業領導者合作，以切入成長更快的市場。而我們正以我們聞名的高效率服務與領先的技術平台來推動這一切。

Being part of the wider Franklin team has allowed us to think about data more strategically from end to end through manufacturing and to our suppliers. Our technology and data to close the last mile realize operational efficiencies and to provide the best-in-class customer experience, both externally and internally is truly a differentiator.

成為更廣泛的 Franklin 團隊一員，使我們能夠從端到端、更具策略性地思考數據，涵蓋製造流程並延伸至供應商。我們運用技術與數據來完成「最後一哩路」，實現營運效率，並在對外與對內提供同級最佳的客戶體驗，這確實是一項差異化優勢。

Our Distribution segment has grown by adding products, services, technology solutions and customers. We believe our current progress to grow margins will have the same success, and we have grown -- as we have grown organically and inorganically, we are now realizing the benefits of streamlining our processes, leveraging our spend and creating an efficient footprint. Our margin expansion focus brings with its solutions to better serve through technology and data that benefit all of our partners. Last year, we expanded our margins over 200 basis points, and we improved again in Q1. We feel that growing volume, creating more value to our customers and margin expansion can work seamlessly together.

我們的配銷事業部透過增加產品、服務、技術解決方案與客戶而成長。我們相信目前推動毛利率成長的進展也將同樣成功；而且，隨著我們以有機與無機方式成長，我們如今正逐步實現流程精簡、提升採購支出槓桿並打造高效率營運版圖的效益。我們的毛利率擴張重點，也帶來透過技術與數據更好服務的解決方案，讓所有合作夥伴受益。去年我們的毛利率擴張超過 200 個基點，且在第一季再次改善。我們認為，提升出貨量、為客戶創造更多價值與毛利率擴張可以無縫並行。

With that, we'll now turn the call back over to Andrew for questions before a few closing thoughts. Andrew?

接下來，我們把電話交回給 Andrew 進行提問，之後再做幾點結語。Andrew？

(Operator Instructions) Mike Halloran, Baird.

（接線員指示）Baird 的 Mike Halloran。

So like when I look at the guide and I look at the trends for the remainder of the year, it seems like a pretty prudent approach to guidance. Sequential seem maybe a little below normal as we work through the rest of the year. Maybe just help me understand what's embedded in guidance from a revenue progression perspective? Is this a conservative thought process given what we don't know. And any nuances by end markets as we think through the rest of the year that we think -- that you think we should know?

所以當我看你們的指引、再看今年剩餘期間的趨勢時，感覺這是一個相當審慎的指引作法。就序列（季對季）來看，隨著我們走完今年剩下的時間，似乎可能略低於常態。能否幫我理解一下，從營收推進（revenue progression）的角度，指引中包含了哪些假設？這是否是一種在面對未知時較保守的思考方式？另外，當我們思考今年剩餘期間時，按終端市場來看是否有任何細節差異——你們認為我們應該知道的？

Yeah. Good question, Mike. I think the -- what we don't know is obviously what we don't know. We see the quarters on a stand-alone basis to be positive top and bottom line here through the next three. So you're going to see from a sequential standpoint, that normal performance, which is obviously a bit more muted given the growing seasons and the weather in Q1 and 4, but we -- our outlook for 2 and 3 looks robust and looks on track.

是的。好問題，Mike。我想——我們不知道的，顯然就是我們不知道的。我們把接下來三個季度單獨來看，預期營收與獲利（上、下線）都會是正向的。因此從序列角度，你會看到那種正常表現；當然，因為第一季與第四季的生長季節與天氣因素，表現會相對更溫和一些。但我們對第二季與第三季的展望看起來很強勁，也符合進度。

I think the parts that we don't know and Jennifer alluded to those in the call, were obviously -- we've talked before about India and the Middle East and some of these green shoots that we see in some fast growth regions. We're trying to temper some of those expectations, but the underlying business looks solid. We feel the market demand is steady. We made a couple of comments there on book-to-bill and backlog here as we came into Q2, and it looks on track. So I think from what we can see, the underlying business looks healthy.

我認為我們不知道的部分，Jennifer 在電話會議中也提到了——我們之前談過印度、中東，以及我們在一些高速成長地區看到的「新芽」。我們試著對這些期待做一些降溫，但基本盤看起來很穩健。我們覺得市場需求是穩定的。我們也就訂單出貨比（book-to-bill）與積壓訂單（backlog）在進入第二季時做了幾點評論，看起來都在軌道上。所以就我們目前能看到的，基本盤是健康的。

Some of those unknowns in terms of ag prices, freight impact from Middle East conflict, some of the new customers that we've been fostering that are affected by those fuel prices or that disruption. Those are really some of the unknowns. But the rest of the business read out largely as we expected, and it trends that way here as we go into Q2.

一些未知因素包括農產品價格、中東衝突對運費的影響，以及我們正在培育的一些新客戶，可能會受到燃料價格或供應中斷的影響。這些確實是一些未知數。但其餘業務的表現大致如我們預期，且在進入第二季時也呈現同樣趨勢。

And maybe something comparable on the margin side of things. Obviously, the fueling margins in particular, where Energy Systems margins, in particular, were robust in the quarter, and that seems to be even with some of the international mix in there. How should I think about the margin progression through the year? Or it feels like you're issuing a step down but I understand there's variances quarter-to-quarter there. Anything in the Water or Distribution side as well that you think should be relevant as we're thinking forward?

那在毛利率方面是否也能做類似的說明？顯然，尤其是加油相關的毛利率——特別是能源系統（Energy Systems）的毛利率在本季表現強勁，而且即便包含一些國際組合因素也是如此。我該如何看待今年的毛利率走勢？感覺你們給的是一個往下的階梯，但我理解季度之間會有波動。水務或配銷端是否也有任何你們認為在往前看時需要注意的重點？

Yeah. I'll give just a couple of comments and let Jennifer add. But yeah, the energy business had a great first quarter. We talked about the timing and expecting sequential improvement and year-over-year improvement here as we go into Q1. Q2 is a little bit of a blip for us where we got price out in front of tariffs. So that comp will look a little bit challenged, but it was a high amount Q2 last year.

是的。我先簡單說幾點，再讓 Jennifer 補充。能源業務第一季表現非常好。我們談過時點因素，並預期在進入第一季時會出現序列改善與年對年改善。第二季對我們來說會有一點小波動，因為我們在關稅之前先行調價。因此比較基期看起來會有些吃力，因為去年第二季的金額很高。

The underlying margins, we expect to be strong even with the nice growth that we're seeing around the world for that business, which just shows the underlying strength. If there's headwinds that come from the Middle East conflict and some of the questions about oil and gas, it's a slight tailwind for sure here in the US in that space. And we expect to continue to see that.

基本毛利率方面，即便我們看到該業務在全球有不錯的成長，我們仍預期會維持強勁，這也顯示其內在韌性。如果中東衝突以及對油氣的一些疑慮帶來逆風，在美國這個領域反而確實會形成些許順風。我們預期會持續看到這種情況。

I think from a distribution standpoint, there definitely was was some, I would say, mix challenges. It performed as we expected, but some of their faster-growing business. We're still working on upstream leverage. We're still working on on a couple of different things there. But again, good expansion.

我認為從配銷的角度來看，確實有一些——我會說是產品組合（mix）上的挑戰。它的表現符合我們預期，但其中一些成長較快的業務，我們仍在努力提升上游槓桿（upstream leverage），也還在推進幾件不同的事情。不過，整體而言仍是良好的擴張。

We expect them to expand, and you're going to see that increase here as we get to the mid quarters of the year. So on track there from a volume expansion standpoint. And then from a water standpoint, we have a number of things we're working on. Jennifer reference restructuring. Clearly, as we're building factories and there's some work that we're doing there, some adds, and some consolidations.

我們預期他們會持續擴張，而當進入年中的幾個季度時，你會看到那個提升。因此從量的擴張角度來看是按計畫進行。至於水務方面，我們正在推進多項工作。Jennifer 提到了重整。很明顯，當我們在建廠時，會有一些相關工作，包括一些新增與一些整併。

There's a little bit of inefficiency that we saw here in Q1. We expect that to normalize. Some of those efficiencies that we're bringing into that business is to continue to work on post-acquisition synergies in Barnes. So you see a portion of that sitting in Latin America, but also new factories started in it's obviously (technical difficulty) from a year-over-year standpoint (technical difficulty)

第一季我們看到了一些效率不彰。我們預期這會回歸正常。我們為該業務導入的一些效率措施，將持續聚焦於 Barnes 併購後的協同效益。因此你會看到其中一部分反映在拉丁美洲，但也有新工廠啟動，顯然（技術問題）從年對年角度（技術問題）。

(technical difficulty) comment as I mentioned in my prepared remarks (technical difficulty) across our business. And then (technical difficulty) in Q2 sequentially (technical difficulty)

（技術問題）如同我在事先準備的講稿中提到的（技術問題）在我們的業務範圍內。（技術問題）然後（技術問題）在第二季的序列上（技術問題）。

Bryan Blair, Oppenheimer.

Oppenheimer 的 Bryan Blair。

I apologize if I missed this detail. I had some technical difficulty. But what was volume and price contribution in Q1? And if we assume your team is trending towards the high end of the revenue guide, that seems realistic for the time being. What should we think about in terms of full year volume and price contribution?

如果我漏掉了這個細節，先致歉。我遇到了一些技術問題。但第一季的出貨量（volume）與價格（price）貢獻各是多少？另外，如果我們假設你們團隊的表現趨向營收指引的高端，短期看起來是合理的。那麼就全年而言，我們應該如何看待出貨量與價格的貢獻？

And how different is that by segment?

而這在各事業部之間有多大差異？

Yeah. Good question. The performance on volume and price was nicely balanced for us in Q1. If you look at the sales growth, volume was just under 30%. Price was just over 30%, with acquisition and FX kind of rounding out those other two, as you've seen.

是的。好問題。第一季在出貨量與價格方面的表現對我們而言相當均衡。若看銷售成長，出貨量略低於 30%，價格略高於 30%，併購與匯率（FX）則如你所見，補足了其餘兩部分。

I think from a volume standpoint, we've done a lot of work in terms of leading indicators. You've heard us talk about this the last few quarters, innovation, new products. We like to highlight this, how we're finding those markets that are growing faster. Sometimes it's hard to predict where and when that volume will hit. That being said, Q1 read out largely as we expected.

我認為就出貨量而言，我們在領先指標方面做了很多工作。你們在過去幾個季度也聽我們談過：創新、新產品。我們也喜歡強調我們如何找到成長更快的市場。有時很難預測出貨量會在何時、何地反映出來。即便如此，第一季的表現大致符合我們預期。

Price is going to be probably -- it would be a comparable spread at the higher level here in Q2 as we put some of those price increases in. But we expect volume and price to be fairly balanced throughout the year. So that's at a higher level.

價格方面，第二季在較高層級上可能——會呈現可比的幅度，因為我們會落實其中一些漲價。但我們預期全年出貨量與價格會相對均衡。因此這是較高層級的看法。

Jennifer, if you want to comment on the segment.

Jennifer，如果你想就各事業部補充評論。

Yeah. I'd say that the caveat there is we continue to see inflation in various pockets, and we'll continue to be very disciplined in our price strategy as we see those commodity inflation come through, whether it be on the plastic side or copper. We're going to take the opportunity to pass that through from a price perspective as we've done historically.

是的。我會說需要補充的一點是，我們仍在不同領域看到通膨，我們也會在價格策略上保持高度紀律；當我們看到大宗商品通膨傳導進來時——不論是塑膠端或銅——我們都會把握機會，從價格角度將其轉嫁出去，正如我們過去一貫的做法。

I think, Bryan, just last comment. That volume line is one that we're watching closely. We're investing in R&D. We're investing in new products. We've been talking about this channel expansion, making sure that we're out serving in terms of the end market.

我想，Bryan，最後再補充一句。出貨量這條線是我們密切關注的。我們正在投資研發（R&D），投資新產品。我們一直在談通路擴張，確保我們在終端市場的服務覆蓋到位。

So we like that as an indicator at a start to the year that volume number.

所以我們喜歡把這個量的數字，作為年初的一個指標。

Understood. I appreciate the detail. And then Joe, you offered a pretty good segue way there. In terms of innovation and new product development, I just wanted to level set a bit, what timeframe of new product intros do you roll into any vitality calculation and the $160 million in new revenue by year 3, is that a 2026 to '28 reference? Or in general, what you're targeting on a rolling basis?

了解。感謝你提供這些細節。接著 Joe，你剛好做了一個很好的銜接。就創新與新產品開發而言，我想先把基準釐清一下：你們在做任何活力（vitality）計算時，會把多長時間範圍內的新產品導入納入計算？以及第 3 年新增 1.6 億美元新營收，那是指 2026 到 2028 年嗎？或者更一般而言，你們是以滾動方式在鎖定什麼目標？

And then how should we, given current visibility, think about the contribution to Water and Energy segment growth?

另外，以目前的能見度來看，我們應該如何看待其對水務與能源（Water and Energy）事業部成長的貢獻？

So it is a '26 to '28 number. But I would tell you this, we're looking to add to that. We think that there's more that we can do, and we'll continue to refresh that number and that outlook. We generally are using a three-year vitality. So products launched in the last three years contribution to new product revenue.

是的，那是 2026 到 2028 的數字。不過我也想說，我們希望在此基礎上再增加。我們認為還有更多可以做的，我們也會持續更新這個數字與展望。我們一般採用三年的活力指標，也就是過去三年內推出的產品，對新產品營收的貢獻。

And really, what our team likes is this idea of new product revenue. So we normalize for cannibalization, of course, but this is a big focus for us. And we think we look at our end markets, that opportunity is going to increase. It's going to increase or really for two reasons. One is, as we've acquired some companies, our ability to add technology on to that and bring those to new markets helps us from a new product to a new region.

而且我們團隊真正喜歡的是「新產品營收」這個概念。當然我們會把自我侵蝕（cannibalization）因素做標準化調整，但這對我們來說是很大的重點。我們認為，隨著我們觀察終端市場，這個機會會增加。它會增加主要有兩個原因：第一，隨著我們收購了一些公司，我們把技術加到這些平台上、並把它們帶到新市場的能力，能幫助我們把新產品帶到新區域。

The other is some of those faster-growing markets that we referenced, like the data center market, we look at energy infrastructure. Those opportunities for us to launch new products and bring those to market, we think will help us to accelerate that. So yes, I think the outlook for new products continues to be positive. We are excited about VersaBoost. We just discussed that today.

第二，是我們提到的一些成長更快的市場，例如資料中心市場；我們也看能源基礎設施。對我們而言，在這些領域推出新產品並導入市場的機會，我們認為將有助於加速成長。所以是的，我認為新產品的展望仍然正向。我們對 VersaBoost 很興奮，我們今天也剛討論過。

And these are bigger numbers. Our effort has been shrink the funnel, but more volume and scale for fewer launches and then really to pay attention to doing those successfully. And as a last quick comment on those. Our expectation is new products are accretive. So it helps us in a number of ways.

而且這些是更大的數字。我們的努力方向是縮小漏斗，但讓更少的上市案具備更大的量與規模，並且真正專注把這些案子成功落地。最後再快速補充一點：我們預期新產品是具增益性的（accretive），所以它在多個面向都能幫助我們。

Ryan Connors, North Coast Research.

Ryan Connors，North Coast Research。

And yeah, like Bryan, I also had some -- you're breaking up for a little while there. So hopefully, I'm not asking something that's already been covered. But I wanted to touch on dewatering for a bit. You mentioned Australia strong. But if I heard you right, Jennifer, you were mentioning actually softness in kind of dewatering and specifically mine dewatering, I was a little surprised by that.

對，跟 Bryan 一樣，我也有一些——你剛剛有一段時間訊號斷斷續續。所以希望我問的不是已經講過的內容。不過我想談一下排水（dewatering）。你提到澳洲很強。但如果我沒聽錯的話，Jennifer，你其實提到排水、特別是礦山排水（mine dewatering）有些疲軟，這讓我有點意外。

I mean, I know that we've got kind of a mining CapEx cycle kicking off to kind of see some strength in that large dewatering piece. So can you just unpack that dewatering piece, what's going on in Australia and then why we're not seeing more of that elsewhere?

我的意思是，我知道礦業資本支出（CapEx）循環正在啟動，理論上應該會在大型排水這塊看到一些強勁。你能否拆解一下排水這塊的情況：澳洲發生了什麼事？以及為什麼我們在其他地區沒有看到更多？

I'll just make a quick comment. Global dewatering is a great story for us, Ryan. So I think Jennifer's comment was the timing of orders in North America pointed to a year-over-year that was flattish to slightly down. But globally, this is a real healthy space. Australia, it's a very healthy space.

我先快速評論一下。Ryan，全球排水對我們來說是一個很好的故事。我認為 Jennifer 的評論是指北美訂單時點的因素，使得年對年看起來持平到略為下滑。但從全球來看，這是一個非常健康的領域。澳洲也是非常健康的市場。

Rest of the world, dewatering for us is up 30-plus points. So a smaller base, but we quickly are seeing that global business for dewatering outpace and we think it will be as big or even bigger than what we have in the US just to start.

在世界其他地區，我們的排水業務成長超過 30 個百分點。基期較小，但我們很快就看到排水的全球業務在加速超越，我們認為一開始它就會跟我們在美國的規模一樣大，甚至更大。

The comment was really on US and Canada, and we did see some timing impact, and that was more on the fleet piece of dewatering, not necessarily the mining side. And our outlook for overall for dewatering for the full year is still growth expected across the globe, including US and Canada. So a little bit of timing on the fleet side in Q1 was really what my comment

那個評論其實主要是針對美國與加拿大。我們確實看到一些時點影響，而且更多是在排水的租賃設備（fleet）那一塊，不一定是礦業端。我們對全年整體排水的展望仍然是預期全球成長，包括美國與加拿大。所以 Q1 在租賃設備端有一點時點因素，這才是我評論的重點。

Yeah, that clears it up nicely. And then I wanted to follow up on the question earlier on energy and the margin specifically. It's pretty remarkable. I mean, if you look at the quick calculation, energy contributing 13% of revenue and more than 1/3 of operating income. So two questions on that.

好，這樣就很清楚了。接著我想追問先前關於能源與毛利率（margin）那題，尤其是利潤率，真的很驚人。因為如果做個快速計算，能源貢獻 13% 的營收，卻貢獻超過 1/3 的營業利益。所以我有兩個問題。

Thinking big picture and longer term, I mean, are we going to kind of top out here just big picture on margins for energy, long term? Or is there any scenario where we could actually get north of this kind of pretty amazing 34%, low to mid-30s type of range? And then strategically, Joe, how do you think about the fact that segment that's relatively small in the mix on a revenue basis is becoming such a huge contributor to the bottom line. Just curious what your strategic thoughts are on that.

從大方向與長期來看，能源的利潤率是不是差不多會在這裡見頂？還是有任何情境下，我們其實可以高於這個相當驚人的 34% 左右、也就是 30% 出頭到中段的區間？另外在策略上，Joe，你怎麼看待這個在營收組合中相對較小的事業部，卻正在成為獲利端如此巨大的貢獻者？想聽聽你的策略想法。

Yeah. I would answer it two ways. I view it as we're okay with that right now. And there's a couple of things that have contributed to their income expansion. One is when we look at at transformation 80/20 and some of the good productivity work that we have in front of us still at Franklin.

好。我會用兩個角度回答。我認為就目前而言，我們對這樣的狀態是可以接受的。有幾個因素促成了他們的獲利擴張。第一，當我們看轉型 80/20，以及 Franklin 目前仍在推進的一些良好生產力提升工作。

I would say that energy business because they really went into the post-COVID hangover with some thoughtfulness and the leaders there did a great job of really reinforcing that we can operate and operate healthy even when volumes are slightly off. It's a really -- it's a great template and the blueprint, and we expect you're going to see that readout in the other segments. We've seen it in pockets in distribution and water treatment as we've talked about. Water is that we have a great opportunity there. So we -- I'm okay with it as it sits today.

我會說，能源業務在面對 COVID 後的「宿醉期」時，其實是帶著相當周全的思考進入的，那邊的領導團隊做得很好，強化了即使量略有下滑，我們仍能健康營運的能力。這真的是一個很好的模板與藍圖，我們預期你會在其他事業部看到同樣的成果。我們也如先前所說，在通路（distribution）與水處理（water treatment）的一些區塊已經看到。至於水務，我們在那裡有很好的機會。所以——我對目前的狀態是可以接受的。

You're going to see a better balance, though, out two or three years in terms of margin expansion in the other parts of the business. Your other question in terms of, is there a high end or a limit to what we see from an energy margin standpoint. I would tell you, we're confident in performance at that level. But a few things that have really contributed to their growth. And these are parts of their business that are growing faster is as they're investing in sensing technology, critical asset monitoring in the grid space, those are helpful from a mix standpoint.

不過在兩到三年後，你會看到更好的平衡，也就是其他業務部分的利潤率擴張會更明顯。至於你另一個問題：能源利潤率是否有上限或極限？我會說，我們對維持在這個水準的表現很有信心。但有幾個因素確實推動了他們的成長，而且這些是他們成長更快的業務：例如他們投資於感測技術、電網領域的關鍵資產監測（critical asset monitoring），從產品組合（mix）角度來看是有幫助的。

So as their higher-margin business becomes a bigger part of just that energy segment, even if we look at growth around the world, even if we look at some of the growth that's maybe lower margin, that is going to outpace it and at least keep us in a real healthy band there in the mid-30s, as Jennifer talked about.

因此，當他們較高毛利的業務在能源事業部中的占比提高時，即便我們看全球成長、即便有些成長可能是較低毛利的，它也會被更快成長的高毛利部分所超越，至少能讓我們維持在一個非常健康的區間，也就是如 Jennifer 所說的 30% 中段。

In terms of what is that opportunity? I would say this, I thought I might say this a few times today, but we're working on midterm guidance, and we'll share that during our Investor Day, haven't announced the time yet, but stay tuned for that. But we still see opportunity to expand further just based on smarter technology from a mix perspective. And then again, a business that's done a great job from a productivity execution here these last few years.

至於機會有多大？我會這麼說：我想我今天可能會提好幾次，我們正在準備中期指引（midterm guidance），並會在投資人日（Investor Day）分享；時間尚未公布，但請持續關注。不過我們仍看到進一步擴張的機會，主要來自更智慧的技術帶來的組合優化；再加上這個業務在過去幾年於生產力執行方面做得非常好。

Got it. Okay. Very helpful. And then last one just for me on kind of a big picture question, but hearing more and more about AI being leveraged in the industrial landscape for pricing specifically, sort of algorithmic pricing strategies for industrial companies and particularly for industrial distribution. So curious, given your comments there on Distribution business, Joe, is that something that you're using anywhere in the company but specific to Distribution?

了解。好，很有幫助。最後一題是比較宏觀的：我越來越常聽到 AI 在工業領域被用來做定價，尤其是定價方面的應用，例如演算法定價策略（algorithmic pricing strategies），特別是在工業通路（industrial distribution）。所以我想問，基於你剛剛對通路業務的評論，Joe，你們公司內部是否有在任何地方使用這類工具，尤其是在通路業務？

And just curious whether that's something you're doing?

也想了解你們是否正在做這件事？

Yes. Our -- we have a fairly dynamic pricing approach in Distribution. I would say it is not embedded with AI where we sit today. We're fortunate to have really intimate business owners. So our regional presidents in that business are looking at competition.

有。我們——在通路業務上有相當動態的定價方法。不過我會說，以我們目前的狀態，還沒有把 AI 內嵌進去。我們很幸運有非常貼近業務的一線負責人。因此該業務的區域總裁會觀察競爭狀況。

They're looking at the weather. They're looking at input costs on a real-time basis. And essentially they allow us to stay well in front of that. There's more we can do. We've got a great and a lot of great work done in terms of simplifying part numbers.

他們會看天氣、會即時看投入成本。基本上，這讓我們能夠始終走在前面。我們還能做得更多。我們在簡化料號（part numbers）方面已經做了很多很棒的工作。

We've got rationalization and consolidation, so we can see the same number from coast to coast now. This took us a couple of years. We've got a great ERP system. And I would tell you, we hear the same thing, and we see the same opportunity you mentioned, which is AI can help us to take that to the next level to be smart about pricing. But we've really done some good work this last couple of years.

我們也做了精簡（rationalization）與整併（consolidation），所以現在我們可以從東岸到西岸看到同一個料號。這花了我們幾年時間。我們也有很好的 ERP 系統。我會說，我們也聽到同樣的趨勢，並看到你提到的同樣機會：也就是 AI 可以幫助我們把這件事提升到下一個層級，讓定價更聰明。不過過去這幾年我們確實已經做了不少好工作。

Pricing is one of those elements that's helped them to lift that margin, and we expect to see further margin expansion throughout the year based on smart or dynamic pricing.

定價是幫助他們提升該利潤率的要素之一，我們預期在智慧或動態定價的帶動下，全年利潤率將進一步擴張。

Walter Liptak, Seaport Research.

Walter Liptak，Seaport Research。

Some of the comments were breaking up on my end as well, too. But I wanted to ask about the new products that you guys called out, the $160 million, I wonder if you could review for us the data center products like where your run rate is currently? And what's the expected growth that you think you'll be at three years out within that $160 million?

我這邊也有些評論聽起來斷斷續續。不過我想問一下你們提到的新產品，那個1.6億美元的部分，想請你們回顧一下資料中心相關產品的情況，例如目前的運行率（run rate）大概在哪裡？以及在那1.6億美元之中，你們預期三年後的成長會到什麼程度？

Yeah. So what we will do is to share what part of that commercial and industrial space is data centers here as we get into -- in our Q2 earnings. But I think we've mentioned this before. It's a sub-$50 million business for all products for us today. Where our focus is, right now, Walt, is -- it is just simply the fastest-growing space for pumps, motors and drives, not only in the US, but just around the world.

是的。所以我們會在第二季財報時，分享在商用與工業領域中，資料中心占比是多少。不過我想我們之前也提過：就我們目前所有產品而言，這仍是一個低於5,000萬美元的業務。我們現在的重點，Walt，是——資料中心就是泵、馬達與驅動器成長最快的領域，不僅在美國，在全球也是如此。

And given our application expertise, given the fact that we've built supply chain expertise, that's really been a key focus for us right now is to serve. There's a great set of CDU manufacturers around the world and here in the US that have done a great job kind of putting a space together there. We like our ability to respond with speed, with velocity.

而且憑藉我們的應用專業能力，以及我們已建立的供應鏈專長，這確實是我們目前服務的關鍵重點。全球以及美國本土都有一批很優秀的CDU製造商，他們在整合這個領域方面做得非常出色。我們也看好自己能以速度、以效率快速回應的能力。

Our first production line. We've been doing this kind of embedded in parts of our business, but a stand-alone production line is going up right now in our big facility here in the US. And what we'll do is we'll share that outlook in terms of how we see order trends and our expectation in terms of volume growth here as we get into Q3. But it's an exciting space. It's a fast-moving space for anyone that follows that market.

我們的第一條量產線——我們過去在業務的某些部分已經以嵌入式方式在做，但現在一條獨立的生產線正在我們美國的大型工廠建置中。我們會在進入第三季時，分享我們對訂單趨勢的看法，以及對出貨量成長的預期。但這是一個令人振奮的領域，也是任何關注該市場的人都知道的快速變動領域。

I think the trends here in the last couple of years point to a next good three to five years in that space for what we can see, and we'll be ready for it.

我認為過去幾年的趨勢顯示，未來三到五年在這個領域會有一段不錯的成長期；就我們所見，我們也會做好準備。

Okay. Great. And in the first quarter, the Water segment had better-than-expected organic growth. Is that -- was part of that from data center-related products?

好的，很好。那第一季水務事業部的有機成長優於預期。這其中有一部分是來自資料中心相關產品嗎？

A small part, not material. I would tell you a couple of things that really read out well. One is just is just our traditional business in resi and ag in the groundwater space, had a nice first quarter of both volume and price. I would say, we talked about this in our Q4 call, where we saw a little bit of a pullback in terms of channel inventory and that RSS or that surface pumping business. That's bounced back nicely.

只占很小一部分，不具重大性。我會說有幾件事表現得很不錯。第一，我們在地下水領域的傳統業務——住宅與農業（resi 和 ag）——第一季在量與價兩方面都有不錯表現。第二，我們在第四季電話會議提到，通路庫存以及RSS或地表抽水業務曾出現一些回落；現在已經明顯反彈。

So we made a comment on where we touch HVAC or some of the specific resi market -- the specific resi markets, excuse me. Those had a nice recovery, not just the sequential recovery but year-over-year showed some strength. So surface pumping overall was strong in the RSS space. And then again, that global dewatering business was up for us about 10%, even with the blip in North America due to some of the fleet timing. So what was interesting about Q1 there is the kind of consistent strength across those product segments.

所以我們也提到我們在HVAC或某些特定住宅市場的接觸——更正，是特定住宅市場——那些市場出現了不錯的復甦，不只是季比季回升，年比年也顯示出一些強度。因此在RSS領域，地表抽水整體表現強勁。再者，即便北美因部分車隊時點造成短暫波動，我們的全球排水（dewatering）業務仍年增約10%。所以第一季有趣之處在於，這些產品線呈現相當一致的強勢。

We're obviously watching places like ag, but it's a more normal year. We don't talk a ton about weather here, but it's a more normal year. So it looks solid. And then the rest of the business, again, a blend of new products, new markets, new customers, they seem to be gaining some traction.

我們當然也在觀察像農業這些領域，但今年比較接近正常年。我們不太常在這裡談天氣，但今年確實更正常，所以看起來很穩健。至於其他業務，同樣是新產品、新市場、新客戶的組合，似乎也開始取得一些進展。

And I might just add a comment regionally, we also performed very nicely across regions. We touched on -- Australia was a really strong, posted really good strong growth in the quarter. We started to see some recovery in Mexico, a smaller piece of our business, but good to see that as that was kind of depressed in the last couple of quarters. I touched on (technical difficulty)

我再補充一點，就區域來看，我們在各地區的表現也非常不錯。我們提到——澳洲在本季非常強勁，繳出很好的成長。我們也開始看到墨西哥出現一些復甦，雖然占我們業務比重較小，但很高興看到這點，因為過去幾季那邊相對低迷。我剛提到（技術問題）

Okay. You broke up a little bit there at the end again. And then I think the last one for me, the Energy segment, the growth was good this quarter, but it seems like it was driven more on the international side. For 2026, I think some of your competitors are calling out a pretty strong retail fueling market. And I think that's both US and international. What are you seeing in the marketplace?

好的，你最後那段又有點斷訊。然後我最後一個問題：能源事業部本季成長不錯，但看起來更多是由國際市場帶動。對於2026年，我想你們的一些競爭對手提到零售加油市場會相當強勁，我認為這包含美國與國際。你們在市場上看到的是什麼？

Yes. We see -- the outlook for the US starting there is good. It's healthy. Backlog looks healthy.

是的。我們看到——先從美國來看，展望是好的、健康的。在手訂單看起來也很健康。

The -- what we're seeing -- I think I've mentioned this before, all where we can see a little further in that business in other parts of our business. So if you look at the age backlog, it points to kind of through the summer, the build season looks robust. Globally, that business, the leader Jay and his team have done a really nice job building some further opportunities in places like India and the Middle East. Those we're watching a little more closely. We had a good quarter in Q1 in some of those areas where we see faster growth.

我們看到的——我想我之前提過，在這個業務上，我們能看得比公司其他部分更遠一些。所以如果你看在手訂單的年齡結構（age backlog），它大致指向整個夏季，建置旺季看起來很強勁。全球方面，該業務的負責人Jay和他的團隊在印度與中東等地建立了更多機會，這些我們會更密切關注。我們在第一季於其中一些成長較快的區域表現不錯。

It looks like Q2 is going to be a little bit slower just based on the global dynamic and how that touches. Fuel price fuels some of that investment. Other than we're still helping out with infrastructure. So as there's a need for that real time we do. But the US looks great. It's still the biggest part of our market.

看起來第二季可能會稍微慢一些，主要是基於全球動態及其影響。燃油價格會推動部分投資。除此之外，我們仍在協助基礎建設；因此只要有即時需求，我們就會投入。但美國看起來很棒，仍是我們市場中最大的一塊。

And the international prospects are still healthy. We think if and when the Middle East settles down, our view is out two or three years. We had some really nice growth opportunities. The timing of those may be off slightly here this year.

國際市場的前景仍然健康。我們認為如果、以及當中東局勢趨於穩定，我們以兩到三年的視角來看，會有一些非常好的成長機會。今年這些機會的時點可能會稍微延後一些。

Matt Summerville, D.A. Davidson.

Matt Summerville，D.A. Davidson。

Hi, this is PJ Heilbronn on for Matt Summerville. I was just wondering if you're seeing any impact from the updated Section 232 tariffs.

你好，我是PJ Heilbronn，代替Matt Summerville提問。我想請問你們是否看到更新後的《232條款》關稅帶來任何影響？

Yeah. Good question. The updated tariffs really had a fairly neutral impact to us. Our business, our products. So we did a complete review of that when that was announced earlier in April.

是的，問得好。更新後的關稅對我們的影響相當中性。我們的業務、我們的產品——所以在四月初宣布時，我們做了完整的檢視。

And in general, no major change there. The tariff news that's come out the last few months for us has been neutral to slightly positive just given the position of our products, where we manufacture it. And we're largely an in-region, for-region manufacturer. So that's helped us a little bit to kind of create some stability. We still are doing a little bit of work in terms of -- and this includes the 232s of resetting our supply chain.

整體而言，沒有重大變化。過去幾個月出現的關稅消息，對我們而言是中性到略為正面，主要是因為我們產品的定位以及我們的製造地。我們大多是「在地區內、為該地區」的製造商，因此這在某種程度上幫助我們建立穩定性。我們仍在做一些工作——其中也包含232關稅——以重新調整我們的供應鏈。

But we expect to see some good progress and to finish some of that work up here over the next few quarters. But the latest announcement had a largely neutral impact to us.

但我們預期在接下來幾個季度會看到不錯的進展，並完成其中一些工作。不過最新的公告對我們的影響大致上是中性的。

I will now hand the call back over to CEO, Joe Ruzynski, for any closing remarks.

現在我將把電話交回給執行長Joe Ruzynski，請他做結語。

Thanks, Andrew. Our first quarter was a great start to the year. Our execution for strategy transformation and serving our customers every day was strong. Our growth engine is fueled by serving faster-growing markets, innovation, and channel expansion. Leading indicators show us we're working on the right areas.

謝謝你，Andrew。我們第一季為今年開了個好頭。我們在策略轉型與每日服務客戶方面的執行力很強。我們的成長引擎來自於服務成長更快的市場、創新，以及通路擴張。領先指標顯示我們正把力氣用在正確的領域。

Our productivity path is on the right trajectory with pockets of strength and some great opportunities to accelerate. We're confident in 2026, despite global challenges and risks. Our strategy will give us the avenues to add customers, serve new markets, and increase our productivity throughout the year. We're confident in our strategy. We like the businesses that we're in.

我們的生產力提升路徑正走在正確的軌道上，既有一些強勢領域，也有很好的加速機會。儘管面臨全球挑戰與風險，我們對2026年仍有信心。我們的策略將為我們提供途徑，以增加客戶、服務新市場，並在全年提升生產力。我們對策略有信心，也看好我們所處的業務。

Thanks, everyone, and have a great week.

謝謝各位，祝大家有個美好的一週。

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

各位女士、先生，感謝您的參與。今天的會議到此結束，您現在可以掛線。