Federal Signal Corp (FSS) 2025 Q2 法說會逐字稿

Greetings, and welcome to the Federal Signal Corporation second quarter earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce Felix Boeschen, Vice President, Corporate Strategy and Investor Relations. Please go ahead.

您好，歡迎參加聯邦訊號公司第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹企業策略和投資者關係副總裁 Felix Boeschen。請繼續。

Good morning, and welcome to Federal Signal's Second Quarter 2025 Conference Call. I'm Felix Boeschen, the company's Vice President of Corporate Strategy and Investor Relations. Also with me on the call today is Jennifer Sherman, our President and Chief Executive Officer and Ian Hudson, our Chief Financial Officer. We will refer to some presentation slides today as well as to the earnings release, which we issued this morning. The slides can be followed online by going to our website, federalsignal.com, clicking on the Investor Call icon and signing into the webcast.

早安，歡迎參加 Federal Signal 2025 年第二季電話會議。我是 Felix Boeschen，公司企業策略與投資人關係副總裁。今天與我一起參加電話會議的還有我們的總裁兼執行長珍妮佛謝爾曼 (Jennifer Sherman) 和財務長伊恩哈德森 (Ian Hudson)。我們將參考今天的一些簡報幻燈片以及我們今天早上發布的收益報告。您可以透過造訪我們的網站 federalsignal.com、點擊「投資者呼叫」圖示並登入網路廣播來在線上觀看投影片。

We've also posted the slide presentation and the earnings release under the Investor tab on our website. Before I turn the call over to Ian, I'd like to remind you that some of our comments made today may contain forward-looking statements that are subject to the safe harbor language found in today's news release and in Federal Signal's filings with the Securities and Exchange Commission. These documents are available on our website. Our presentation also contains some measures that are not in accordance with US generally accepted accounting principles. In our earnings release and filings, we reconcile these non-GAAP measures to GAAP measures.

我們也在網站的「投資者」標籤下發布了幻燈片簡報和收益報告。在我將電話轉給伊恩之前，我想提醒您，我們今天發表的一些評論可能包含前瞻性陳述，這些陳述受今天的新聞稿和聯邦信號向美國證券交易委員會提交的文件中的安全港語言的約束。這些文件可在我們的網站上找到。我們的報告也包含一些不符合美國公認會計原則的措施。在我們的收益報告和文件中，我們將這些非 GAAP 指標與 GAAP 指標進行協調。

In addition, we will file our Form 10-Q later today. Ian will start today with more detail on our second quarter financial results. Jennifer will then provide her perspective on our performance, our revised margin targets and go over our increased guidance for 2025 before we open the line for any questions.

此外，我們將於今天晚些時候提交 10-Q 表。伊恩今天將詳細介紹我們的第二季財務業績。在我們開始解答任何問題之前，Jennifer 將提供她對我們的業績、修訂後的利潤目標的看法，並介紹我們對 2025 年的增加的指導。

With that, I would now like to turn the call over to Ian.

說完這些，我現在想把電話轉給伊恩。

Thank you, Felix. Our consolidated second quarter financial results are provided in today's earnings release. In summary, in what is typically a seasonally strong period, our businesses were able to deliver 15% year over year net sales growth, 20% operating income improvement, gross margin expansion, a 100 basis points improvement in adjusted EBITDA margin, and continued momentum in orders during a record-setting second quarter.

謝謝你，菲利克斯。我們的綜合第二季財務業績已在今天的收益報告中公佈。總而言之，在通常的季節性強勁時期，我們的業務能夠實現同比淨銷售額增長 15%、營業收入增長 20%、毛利率擴大、調整後 EBITDA 利潤率提高 100 個基點，並且在第二季度創下紀錄，訂單繼續保持增長勢頭。

Consolidated net sales for the quarter were $565 million, an increase of $74 million or 15% compared to last year. Organic sales growth for the quarter was $42 million or 9%. Consolidated operating income for the quarter was $97.7 million, up $16.6 million or 20% compared to last year. Consolidated adjusted EBITDA for the quarter was [$119.2 million], up $20.5 million or 21% compared to last year. That translates to a margin of 20.9% in Q2 this year, up 100 basis points compared to last year. GAAP diluted EPS for the quarter was $1.16 per share, up $0.17 per share or 17% compared to last year.

本季綜合淨銷售額為 5.65 億美元，較去年同期增加 7,400 萬美元，增幅 15%。本季有機銷售額成長 4,200 萬美元，增幅 9%。本季綜合營業收入為 9,770 萬美元，較去年同期成長 1,660 萬美元，增幅為 20%。本季綜合調整後 EBITDA 為 [1.192 億美元]，較去年同期成長 2,050 萬美元，增幅為 21%。這意味著今年第二季的利潤率為 20.9%，比去年同期上升了 100 個基點。本季 GAAP 稀釋每股收益為 1.16 美元，較去年同期上漲 0.17 美元，漲幅 17%。

On an adjusted basis, EPS for the quarter was $1.17 per share, an increase of $0.22 per share or 23% from last year. Customer demand remained strong during the quarter with orders of $540 million, representing an increase of $67 million or 14% compared to last year. Backlog at the end of the quarter was $1.08 billion, an increase of $4 million compared to Q2 last year.

經調整後，本季每股收益為 1.17 美元，較去年同期增加 0.22 美元，增幅為 23%。本季客戶需求依然強勁，訂單金額達 5.4 億美元，較去年同期增加 6,700 萬美元，增幅達 14%。本季末積壓訂單為 10.8 億美元，與去年第二季相比增加了 400 萬美元。

In terms of our group results, ESG's net sales for the quarter were $481 million, up $72 million or 18% compared to last year. ESG's operating income for the quarter was $91.9 million, up $19 million or 26% compared to last year. ESG's adjusted EBITDA for the quarter was $110.8 million, up $22.6 million or 26% compared to last year. That translates to an adjusted EBITDA margin for the quarter of 23.1%, an improvement of 150 basis points compared to last year.

就我們集團業績而言，ESG 本季的淨銷售額為 4.81 億美元，比去年同期成長 7,200 萬美元，增幅為 18%。ESG 本季的營業收入為 9,190 萬美元，比去年同期增加 1,900 萬美元，增幅為 26%。ESG 本季調整後的 EBITDA 為 1.108 億美元，較去年同期成長 2,260 萬美元，增幅為 26%。這意味著本季調整後的 EBITDA 利潤率為 23.1%，比去年同期提高了 150 個基點。

ESG reported total orders of $441 million in Q2 this year, an increase of $45 million or 11% compared to last year. SSG's net sales for the quarter were $84 million this year, up $3 million or 3% compared to last year. SSG's operating income for the quarter was $21.5 million, up $3.2 million or 17% compared to last year. SSG's adjusted EBITDA for the quarter was $22.6 million, up $3.3 million or 17%. That translates to a margin for the quarter of 26.9%, up 320 basis points compared to last year. SSG's orders for the quarter were $99 million, up $22 million or 28% from last year.

ESG 報告稱，今年第二季訂單總額為 4.41 億美元，比去年增加 4,500 萬美元，增幅為 11%。SSG 本季的淨銷售額為 8,400 萬美元，比去年同期成長 300 萬美元，增幅為 3%。SSG 本季的營業收入為 2,150 萬美元，比去年同期增加 320 萬美元，增幅為 17%。SSG 本季調整後的 EBITDA 為 2,260 萬美元，成長 330 萬美元，增幅 17%。這意味著本季的利潤率為 26.9%，比去年同期成長了 320 個基點。SSG 本季的訂單金額為 9,900 萬美元，比去年同期增加了 2,200 萬美元，增幅為 28%。

Corporate operating expenses for the quarter were $15.7 million compared to $10.1 million last year, with the increase primarily due to higher post-retirement expenses and increased stock compensation costs. Turning now to the consolidated income statement, where the increase in net sales contributed to a $25.6 million improvement in gross profit. Consolidated gross margin for the quarter was 30%, a 60 basis points increase over last year.

本季企業營運費用為 1,570 萬美元，而去年同期為 1,010 萬美元，增加的主要原因是退休後費用增加以及股票薪酬成本增加。現在來看合併損益表，淨銷售額的成長導致毛利增加了 2,560 萬美元。本季綜合毛利率為30%，較去年同期增加60個基點。

As a percentage of net sales, our selling, engineering, general and administrative expenses for the quarter were down 10 basis points from Q2 last year. Other items affecting the quarterly results include a $700,000 increase in amortization expense, a $300,000 reduction in acquisition-related expenses, a $400,000 increase in other expense and a $300,000 increase in interest expense.

作為淨銷售額的百分比，本季我們的銷售、工程、一般和行政費用比去年第二季下降了 10 個基點。其他影響季度業績的項目包括攤銷費用增加 70 萬美元、收購相關費用減少 30 萬美元、其他費用增加 40 萬美元以及利息費用增加 30 萬美元。

Tax expense for the quarter was $22 million compared to $16.7 million in Q2 last year, with the increase primarily due to the effects of higher pretax income and the nonrecurrence of a $2.6 million discrete tax benefit recognized in the prior year quarter, partially offset by a $700,000 increase in excess tax benefits associated with stock-based compensation activity.

本季度稅費為 2,200 萬美元，而去年第二季為 1,670 萬美元，稅費增長主要由於稅前收入增加以及去年同期確認的 260 萬美元單獨稅收優惠不再發生，但股票薪酬活動相關的超額稅收優惠增加 70 萬美元，部分抵消了這一影響。

Our effective tax rate for Q2 this year was 23.6% compared to 21.5% in Q2 last year. At this time, we are expecting our full year effective tax rate to be between 24% and 25%, excluding additional discrete tax benefits. On an overall GAAP basis, we, therefore, earned $1.16 per share in Q2 this year compared with $0.99 per share in Q2 last year. To facilitate earnings comparisons, we typically adjust our GAAP earnings per share for unusual items recorded in the current or prior year quarters.

我們今年第二季的有效稅率為 23.6%，而去年第二季的有效稅率為 21.5%。目前，我們預計全年有效稅率在 24% 至 25% 之間（不包括額外的單獨稅收優惠）。因此，按照整體 GAAP 計算，我們今年第二季的每股收益為 1.16 美元，而去年第二季的每股收益為 0.99 美元。為了方便比較收益，我們通常會根據目前或上一季記錄的異常項目調整 GAAP 每股盈餘。

In the current and prior quarters, we made adjustments to GAAP earnings per share to exclude acquisition-related expenses, purchase accounting expense effects and certain special tax items where applicable. On this basis, our adjusted earnings for the quarter were $1.17 per share compared with $0.95 per share last year.

在本季和上一季度，我們對 GAAP 每股盈餘進行了調整，以排除收購相關費用、購買會計費用影響和某些適用的特殊稅項目。在此基礎上，我們本季的調整後收益為每股 1.17 美元，而去年同期為每股 0.95 美元。

Looking now at cash flow. We generated $60 million of cash from operations during the quarter, an increase of $19 million or 47% from Q2 last year. That brings the total cash generated from operations in the first half of this year to $96 million, an increase of 34% over the first half of last year. We ended the quarter with $204 million of net debt, and availability under our credit facility of $515 million.

現在來看現金流。本季我們的經營現金流為 6,000 萬美元，較去年第二季增加 1,900 萬美元，增幅達 47%。這使得今年上半年營運產生的現金總額達到 9,600 萬美元，比去年上半年成長 34%。本季末，我們的淨債務為 2.04 億美元，可用信貸額度為 5.15 億美元。

Our current net debt leverage ratio remains low. With our financial position remaining strong, we have significant flexibility to invest in organic growth initiatives, pursue strategic acquisitions and return cash to stockholders through dividends and opportunistic share repurchases. On that note, we paid dividends of $8.5 million during the quarter, reflecting a dividend of $0.14 per share, and we recently announced a similar $0.14 per share dividend for the third quarter. During the quarter, we also repurchased approximately $20 million of shares, buying back around 280,000 shares at an average price of $71.16 per share.

我們目前的淨債務槓桿率仍然很低。由於我們的財務狀況依然強勁，我們擁有很大的靈活性來投資有機成長計劃、進行策略性收購以及透過股息和機會性股票回購向股東返還現金。就此而言，我們在本季度支付了 850 萬美元的股息，即每股 0.14 美元的股息，並且我們最近宣布第三季度的股息為每股 0.14 美元。本季度，我們也回購了價值約 2,000 萬美元的股票，以平均每股 71.16 美元的價格回購了約 280,000 股。

That concludes my comments, and I would now like to turn the call over to Jennifer.

我的評論到此結束，現在我想將電話交給珍妮佛。

Thank you, Ian. We are proud of our second quarter financial results, which included new quarterly records in net sales, operating income, adjusted EBITDA, adjusted EBITDA margin and adjusted EPS, thanks to outstanding contributions from both of our groups. One of our core competitive advantages enabling such growth within the ESG Group is the scale and power of our specialty vehicle platform. This platform spans several operational categories such as sourcing, supply chain optimization, our Federal Signal operational system, sales channel alignment, dealer development, aftermarket support, data analytics and new product development.

謝謝你，伊恩。我們對第二季的財務表現感到自豪，其中包括淨銷售額、營業收入、調整後 EBITDA、調整後 EBITDA 利潤率和調整後 EPS 創下的季度新高，這要歸功於我們兩個集團的傑出貢獻。ESG 集團實現如此成長的核心競爭優勢之一是我們的專用車輛平台的規模和實力。該平台涵蓋採購、供應鏈優化、聯邦訊號營運系統、銷售通路協調、經銷商開發、售後支援、數據分析和新產品開發等多個營運類別。

As I review our financial results in more detail, I will highlight certain platform benefits that we are continuing to realize. Within our Environmental Solutions Group, we delivered 18% year over year net sales growth and a 26% increase in adjusted EBITDA with higher production levels, growth in sales of our aftermarket offerings, proactive management of price cost dynamics and contributions from recent acquisitions representing meaningful year over year contributors.

當我更詳細地回顧我們的財務表現時，我將強調我們正在繼續實現的某些平台優勢。在我們的環境解決方案集團內，我們實現了淨銷售額同比增長 18%，調整後 EBITDA 增長 26%，這得益於生產水平的提高、售後市場產品銷售額的增長、價格成本動態的主動管理以及近期收購的貢獻，這些都為同比增長做出了有意義的貢獻。

In what is typically the seasonally strongest quarter of the year, ESG's adjusted EBITDA margins expanded by 150 basis points year over year to approximately 23%. Given continued strong order levels and an extensive pipeline of internal market share expansion initiatives, our teams remain focused on building more trucks across our family of specialty vehicle businesses.

在通常是一年中季節性最強勁的季度中，ESG 的調整後 EBITDA 利潤率年增 150 個基點，達到約 23%。鑑於訂單量持續強勁以及內部市場份額擴張計劃的廣泛管道，我們的團隊將繼續專注於在我們的專用車輛業務系列中製造更多的卡車。

These efforts to increase production at two largest ESG facilities contributed to increases in sales of street sweepers and safe digging trucks with each up by approximately $10 million year over year. From a capacity perspective, our access to labor remains good, supply chains are largely stable and our large-scale capacity expansions that we completed between 2019 and 2022 position us well to profitably absorb incremental volumes into our existing footprint.

這兩個最大的 ESG 工廠為提高產量所做的努力促進了街道清掃車和安全挖掘卡車的銷售額同比增長約 1000 萬美元。從產能角度來看，我們的勞動力獲取管道仍然良好，供應鏈基本上穩定，而且我們在 2019 年至 2022 年期間完成的大規模產能擴張使我們能夠有利地將增量產能吸收到現有產能中。

I am specifically encouraged by the progress we are making at our Elgin Street Sweeper plant, where we have successfully completed a host of capacity investments spanning fabrication process optimization, expansion of our workforce and several new management hires. These structural changes will enable us to capitalize on the strong demand we see for our RegenX product, a mid-dump regenerative air sweeper that will enable us to expand market share in the historically underserved air sweeper market for Elgin.

我對埃爾金街道清掃車工廠所取得的進展感到特別鼓舞，我們已成功完成一系列產能投資，包括製造流程優化、員工隊伍擴大和多名新管理人員的聘用。這些結構性變化將使我們能夠利用我們的 RegenX 產品（一種中型卸載再生空氣清掃器）的強勁需求，這將使我們能夠擴大埃爾金歷史上服務不足的空氣清掃器市場的份額。

Shifting now to aftermarkets, where demand remains strong with revenues up 13% year over year. Our teams continue to drive higher parts penetration rates across our specialty vehicle businesses, which contributed to a 13% year over year increase in parts sales. Additionally, given strong rental utilization levels, our teams are diligently managing between ensuring sufficient rental equipment availability and used equipment sales to best serve our customers' needs.

現在轉向售後市場，需求依然強勁，營收年增 13%。我們的團隊持續推動專用車輛業務中零件滲透率的提高，這使得零件銷售額年增 13%。此外，鑑於租賃利用率高，我們的團隊正在努力確保充足的租賃設備和二手設備銷售，以最好地滿足客戶的需求。

In the quarter, rental revenue again grew double digits year over year. In the aggregate, aftermarket represented approximately 24% of ESG revenue in Q2 of this year. In the quarter, we also reported double-digit growth in net sales of metal extraction support equipment driven by healthy end market demand, our reputation for high-quality products and continued channel optimization efforts at Ground Force and TowHaul. In fact, since we completed the acquisition of TowHaul in the fourth quarter of 2022, our teams have grown our distribution partner network for metal extraction support equipment by approximately 15%.

本季度，租金收入再次年增兩位數。總體而言，售後市場約佔今年第二季 ESG 營收的 24%。本季度，我們還報告稱，金屬提取支援設備的淨銷售額實現了兩位數成長，這得益於健康的終端市場需求、我們高品質產品的聲譽以及 Ground Force 和 TowHaul 持續的通路優化努力。事實上，自 2022 年第四季完成對 TowHaul 的收購以來，我們的團隊已經將金屬提取支援設備分銷合作夥伴網路擴大了約 15%。

These ongoing channel optimization efforts, coupled with the application of our Federal Signal operating model have helped contribute to more than a 70% increase in combined net sales for Ground Force and TowHaul over that same time frame while expanding margins. As we look ahead, we see further channel optimization opportunities across this platform, and we are energized by an accelerating new product development pipeline, both of which we believe will unlock further share expansion opportunities.

這些持續的通路優化工作，加上我們聯邦訊號營運模式的應用，幫助 Ground Force 和 TowHaul 的合併淨銷售額在同一時間段內成長了 70% 以上，同時擴大了利潤率。展望未來，我們看到該平台上進一步的通路優化機會，並且加速的新產品開發管道也為我們注入了活力，我們相信這兩者都將釋放進一步的份額擴張機會。

Our most recent acquisitions also contributed positively to top line results in the quarter, with Hog contributing approximately $21 million of net sales and Standard (inaudible) adding approximately $12 million of incremental net sales. Shifting to our Safety and Security Systems Group. The team delivered another outstanding quarter with 3% top line growth, a 17% increase in adjusted EBITDA and a 320 basis points improvement in adjusted EBITDA margin.

我們最近的收購也對本季的營收業績做出了積極貢獻，其中 Hog 貢獻了約 2,100 萬美元的淨銷售額，而 Standard（聽不清楚）則增加了約 1,200 萬美元的增量淨銷售額。轉移到我們的安全和安保系統群組。該團隊又一個季度表現出色，營業收入成長 3%，調整後 EBITDA 成長 17%，調整後 EBITDA 利潤率提高 320 個基點。

This improvement was primarily driven by a combination of proactive price cost management, volume increases in our Warning Systems business and the realization of certain cost savings. As we shared on our last earnings call, in-sourcing certain componentry from Asia has been an important strategic lever within our SSG business for several years, including the addition of three printed circuit board manufacturing lines at our University Park facility in Illinois since 2022.

這項改善主要得益於積極主動的價格成本管理、預警系統業務量的增加以及一定程度的成本節約。正如我們在上次財報電話會議上所分享的那樣，多年來，從亞洲採購某些零件一直是我們 SSG 業務中的重要戰略槓桿，包括自 2022 年以來在我們位於伊利諾伊州大學公園的工廠增加了三條印刷電路板生產線。

We continue to see benefits associated with these actions in our financial results in the form of cost savings realization, product quality improvements and expanded available capacity. We are on track to add a fourth printed circuit board manufacturing line before the end of this year, which we expect to provide incremental benefits in 2026 and beyond.

我們繼續看到這些行動在我們的財務表現中帶來的好處，包括實現成本節約、產品品質提高和可用產能擴大。我們計劃在今年年底前增加第四條印刷電路板生產線，預計生產線將在 2026 年及以後帶來增量效益。

Lastly, we had another strong quarter of cash generation with $60 million of cash generated from operations, up 47% over the prior year. As a reminder, on a full year basis, we target 100% cash conversion on a net income basis. Shifting now to current market conditions. Demand for our products and aftermarket offerings remain strong with our second quarter order intake of $540 million, representing a 14% year over year increase and the highest ever second quarter order intake on record for Federal Signal.

最後，我們又度過了一個現金產生能力強勁的季度，營運現金產生量達 6,000 萬美元，比上年成長 47%。提醒一下，在全年基礎上，我們的目標是在淨收入基礎上實現 100% 的現金轉換。現在轉向當前的市場狀況。我們的產品和售後市場產品的需求仍然強勁，第二季的訂單量為 5.4 億美元，年增 14%，創下了 Federal Signal 有史以來第二季訂單量的最高紀錄。

In fact, our SSG team had a record order intake of $99 million during the quarter, an increase of 28% compared to last year. Our backlog at the end of the quarter provides excellent visibility for certain key product lines for the remainder of this year, and into the first half of 2026. Within our end markets, orders for our publicly funded offerings were up double digits year over year with broad-based strength across product categories at both ESG and SSG. Within SSG, we continue to target opportunities to gain share access across several US law enforcement agencies.

事實上，我們的 SSG 團隊在本季的訂單量創下了 9,900 萬美元的記錄，比去年同期成長了 28%。我們在本季末的積壓訂單為今年剩餘時間以及 2026 年上半年的某些關鍵產品線提供了極佳的可視性。在我們的終端市場中，我們公共資助產品的訂單年增兩位數，ESG 和 SSG 的各個產品類別均表現強勁。在 SSG 內部，我們繼續尋找機會獲得美國多個執法機構的存取權限。

Similarly, we are seeing strong market demand for our domestic warning systems and within our European public safety business. We also saw broad-based demand for our industrial offerings with industrial orders also up double digits year over year, notwithstanding a $25 million year over year decline in third-party refuse truck orders associated with the anticipated non-recurrence of certain regulatory-driven fleet orders received from customers in Ontario, Canada during Q2 of last year.

同樣，我們看到國內預警系統和歐洲公共安全業務的市場需求強勁。我們也看到對我們的工業產品有廣泛的需求，工業訂單也比去年同期增長了兩位數，儘管由於去年第二季度來自加拿大安大略省的客戶收到的某些受監管驅動的車隊訂單預計不會再發生，第三方垃圾車訂單同比下降了 2500 萬美元。

We are particularly encouraged by the momentum we are seeing in demand for our safe digging trucks with orders up more than $20 million year over year. As safe digging adoption across the United States continues to increase, we see future volume opportunities, both across our external dealer network and through our expanded direct sales team. In short, demand for our products and services remain strong. Our teams continue to remain focused on reducing lead times for certain product categories, while maintaining a healthy order intake.

我們對我們的安全挖掘卡車的需求勢頭感到特別鼓舞，訂單量同比增長了 2000 多萬美元。隨著美國安全挖掘的採用率不斷提高，我們看到了未來的銷售機會，無論是透過我們的外部經銷商網路還是透過我們擴大的直銷團隊。簡而言之，對我們的產品和服務的需求依然強勁。我們的團隊繼續致力於縮短某些產品類別的交貨時間，同時保持健康的訂單。

I would now like to spend a moment discussing our progress on several strategic growth initiatives and provide an update on our through-cycle margin targets. As a reminder, through cycles, we target annual low double-digit top line growth split roughly evenly between inorganic and organic growth. Execution on our strategic initiatives is an important component of that long-term growth algorithm as we look to drive organic growth in excess of end market growth rates.

現在，我想花點時間討論一下我們在幾項策略性成長計畫上的進展，並提供我們整個週期利潤目標的最新資訊。提醒一下，在整個週期中，我們的目標是實現年度低兩位數的營收成長，大致平均分配無機成長和有機成長。當我們尋求推動超過終端市場成長率的有機成長時，執行我們的策略計畫是長期成長演算法的重要組成部分。

As part of our strategic initiatives, we have been actively accelerating our good, better, best product strategy across several specialty vehicle businesses with the scaling of certain entry-level products aimed at penetrating historically underserved market subsegments for Federal Signal. Examples of such offerings include our Vactor Impact, Elgin Broom Badger and the TRUVAC Paradigm. These products not only unlock deeper penetration of new customer cohorts at different price points, but also represent non-CDL options for customers, thereby expanding their available labor pool.

作為我們策略舉措的一部分，我們一直在積極加速在多個特種車輛業務中推行「好、更好、最好」的產品策略，並擴大某些入門級產品的規模，旨在滲透聯邦信號公司歷史上服務不足的細分市場。此類產品的範例包括我們的 Vactor Impact、Elgin Broom Badger 和 TRUVAC Paradigm。這些產品不僅可以以不同的價格點更深入地滲透新客戶群，而且還為客戶提供非 CDL 選項，從而擴大其可用的勞動力資源。

Looking ahead, as we begin to fully integrate Hog in 2026, we see incremental opportunities to advance this strategy across road marking offerings. Secondly, similar to the success we are seeing at Ground Force and TowHaul, we are pursuing several other cross-selling and sales optimization efforts across our specialty vehicle platform. One such example is our Switch-N-Go product line that we are actively pushing through our company-owned sales channel in Canada. While this initiative remains in early stages today, we are pleased with the progress we are seeing as we look to expand Switch-N-Go brand into Canada. Thirdly, as we continue to execute on our acquisition strategy, each additional acquisition should further strengthen our platform and widen our value proposition in the marketplace. Hog is an excellent example of this.

展望未來，隨著我們在 2026 年開始全面整合 Hog，我們看到了在道路標記產品中推進此策略的漸進機會。其次，與我們在 Ground Force 和 TowHaul 看到的成功類似，我們正在我們的專用車輛平台上進行其他幾項交叉銷售和銷售優化工作。其中一個例子就是我們的 Switch-N-Go 產品線，我們正在透過公司在加拿大的自有銷售管道積極推廣該產品線。雖然該計劃目前仍處於早期階段，但我們對將 Switch-N-Go 品牌擴展到加拿大的進展感到滿意。第三，隨著我們繼續執行收購策略，每次收購都應進一步加強我們的平台並擴大我們在市場上的價值主張。Hog 就是一個很好的例子。

We are encouraged by Hog's first full quarter under Federal Signal ownership and have already identified substantial future synergy opportunities spanning operational efficiencies, go-to-market strategy, aftermarket optimization and the usage of Hog's unique customer education technology across other Federal Signal products.

我們對 Hog 在 Federal Signal 旗下的第一個完整季度的表現感到鼓舞，並且已經確定了未來巨大的協同機會，涵蓋營運效率、市場進入策略、售後市場優化以及 Hog 獨特的客戶教育技術在其他 Federal Signal 產品中的使用。

We remain committed to expanding Hog's margin profile as initial synergies are realized in 2026 and beyond. Looking ahead, our teams continue to work through our pipeline of M&A opportunities spanning both operating groups. We are currently experiencing one of the most active M&A environments since we embarked on our growth strategy in 2016, and believe that Federal Signal is well positioned to continue driving shareholder value via accretive M&A in coming years.

隨著 2026 年及以後初步實現綜效，我們仍致力於擴大 Hog 的利潤率。展望未來，我們的團隊將繼續努力尋找涵蓋兩個營運集團的併購機會。我們目前正經歷自 2016 年實施成長策略以來最活躍的併購環境之一，並相信 Federal Signal 已做好準備，在未來幾年繼續透過增值併購來推動股東價值。

Turning now to our revised EBITDA margin targets. Shortly after I became CEO, we implemented a set of strategic objectives with associated EBITDA margin targets for our groups and the company overall. In setting these targets, our intention was to operate within the range on an annual basis through different business cycles. As demonstrated by our past performance, these margin targets have served as the cornerstone of our business operations, and we have aligned our internal compensation practices accordingly.

現在來談談我們修改後的 EBITDA 利潤率目標。在我擔任執行長後不久，我們為我們的集團和整個公司實施了一系列與 EBITDA 利潤率相關的策略目標。在設定這些目標時，我們的目的是透過不同的商業週期每年在一定範圍內運作。正如我們過去的表現所表明的那樣，這些利潤目標一直是我們業務運營的基石，我們也相應地調整了內部薪酬實踐。

Last year, we raised the EBITDA margin targets for our Safety and Security Systems Group to a range of 18% to 24% from the previous range of 17% to 21%. Today, building on the success that our teams have driven, we are raising our EBITDA margin target for our Environmental Solutions Group to a new range of 18% to 24% from the previous range of 17% to 22%. As a result of increasing the margin targets for ESG, we are also increasing our consolidated EBITDA margin target to a new range of 16% to 22% from the previous range of 14% to 20%. Similar to our past approach, these targets do not present any sort of long-term ceiling, and we remain committed to driving profitable growth going forward.

去年，我們將安全與安保系統集團的 EBITDA 利潤率目標從先前的 17% 至 21% 提高到 18% 至 24% 之間。今天，基於我們團隊所取得的成功，我們將環境解決方案集團的 EBITDA 利潤率目標從先前的 17% 至 22% 提高到 18% 至 24% 的新範圍。由於提高了 ESG 的利潤率目標，我們也將合併 EBITDA 利潤率目標從先前的 14% 至 20% 提高到 16% 至 22% 的新範圍。與我們過去的做法類似，這些目標並未設定任何長期上限，我們仍致力於推動未來的獲利成長。

Turning now to our outlook for the remainder of 2025. With our record-setting second quarter performance, our current backlog and continued execution against our strategic and operational initiatives, we are raising our full year adjusted EPS outlook to a new range of $3.92 to $4.10 from the prior range of $3.63 to $3.90. We are also raising our net sales outlook to a range of $2.07 billion and $2.13 billion from the prior range of $2.02 billion and $2.10 billion. This updated outlook assumes that the current trade agreements and tariff policies remain in place. Lastly, we are reaffirming our CapEx guidance of between $40 million and $50 million for the year.

現在來談談我們對 2025 年剩餘時間的展望。鑑於我們第二季創紀錄的業績、當前的訂單儲備以及戰略和營運舉措的持續執行，我們將全年調整後每股收益預期從先前的3.63美元至3.90美元上調至3.92美元至4.10美元。我們也將淨銷售額預期從先前的20.2億美元至21億美元上調至20.7億美元至21.3億美元。這項更新後的展望假設當前的貿易協定和關稅政策仍然有效。最後，我們重申今年的資本支出指導價為 4,000 萬至 5,000 萬美元。

With that, we are ready to open the line for questions. Operator?

現在，我們準備開始回答問題了。操作員？

(Operator Instructions) Tim Thein, Raymond James.

（操作員指示）Tim Thein，Raymond James。

Hey, good morning, thank you, I had two questions. The first is on the specifics within the margins in the quarter for ESG, you highlighted a few dynamics in the release. I'm just curious if you would highlight -- you mentioned price cost, obviously, the aftermarket growth, though that wasn't as large as the whole goods -- the increase in the whole goods volume. So I don't know, maybe, Ian, is there a notable highlight that you would call out in terms of a particular driver of the improved margins in the quarter?

嘿，早上好，謝謝，我有兩個問題。首先是關於本季 ESG 利潤的具體情況，您在發布中強調了一些動態。我只是好奇您是否會強調——您提到了價格成本，顯然還有售後市場的增長，儘管它不如整體商品那麼大——整體商品數量的增加。所以我不知道，伊恩，您是否可以指出一個值得注意的亮點，作為本季利潤率提高的具體驅動因素？

Yeah, I think probably the largest component, Tim, is, as you mentioned, the increased production at our two largest ESG facilities, we've had the objective to really reduce lead times for quite a while now. And as we've had success kind of increasing production at those facilities, that has some attractive drop-through in terms of leverage. So that, in addition to, as you mentioned, the other components we alluded to in the release, the growth in the aftermarket business, which has a slightly more attractive margin profile. That grew 13% year over year.

是的，提姆，我認為可能最大的因素是，正如你所提到的，我們最大的兩個 ESG 工廠的產量增加，我們一直以來的目標都是真正縮短交貨時間。而且由於我們成功地提高了這些工廠的產量，從槓桿率來看，這具有一定的吸引力。因此，除了您提到的我們在發布中提到的其他組成部分之外，售後市場業務的成長也具有略微更具吸引力的利潤率。較去年同期成長 13%。

The favorable price cost dynamics as we've managed through that, as well as just some of the underlying operating efficiencies that we generate through the [80/20] principles. So that's probably in order of magnitude as I listed those off. But yeah, the biggest component would be just the efficiencies from the increased production levels.

我們透過這種方式實現了有利的價格成本動態，以及透過 [80/20] 原則產生的一些基本營運效率。因此，這可能就是我列出的數量級。但是，是的，最大的因素就是生產水準提高所帶來的效率。

Okay, thank you Ian. And maybe just, I guess, more of a big picture question, just with respect to the recently signed tax reform that can have a myriad of impacts. But I was just thinking, Jennifer, in terms of conversations with customers in terms of maybe from a depreciation standpoint, does it start to maybe move the needle a bit more, probably not so much for your publicly funded customers. But I'm curious about impacts and how you're thinking about it from a demand perspective.

好的，謝謝你，伊恩。我想，這或許只是一個更宏觀的問題，僅就最近簽署的稅務改革而言，它可能會產生無數影響。但是詹妮弗，我只是在想，就與客戶的對話而言，也許從折舊的角度來看，它是否可能會開始產生更大的影響，對於您的公共資助客戶來說可能影響不大。但我很好奇其影響以及您從需求角度如何看待它。

And then I guess, secondarily, do you think that has any impact on just the M&A landscape? Does it maybe bring more properties to the table or not? I'm just curious if you think that has any meaningful impact either way in terms of more M&A volume? Thank you.

然後我想，其次，您認為這對併購格局有影響嗎？它是否可能帶來更多的特性？我只是好奇，您是否認為這對增加併購量有任何有意義的影響？謝謝。

Yeah. We believe that the bonus depreciation provisions in the Big Beautiful Bill could be a benefit for our industrial customers and provide some incentives for those customers to purchase new equipment, given that these bonus depreciation rules make the economics of the equipment purchases more attractive. With respect to the M&A landscape, I guess I'll restate what I said on the call in terms of it is a very active environment that we're in right now. We have a number of opportunities that we're reviewing both for our SSG team and for our ESG team. I don't expect it to have any kind of meaningful impact this particular year.

是的。我們相信，《大美麗法案》中的獎金折舊條款可能對我們的工業客戶有利，並為這些客戶購買新設備提供一些激勵，因為這些獎金折舊規則使設備購買的經濟性更具吸引力。關於併購形勢，我想我會重申我在電話會議上所說的話，我們現在處於一個非常活躍的環境。我們正在為我們的 SSG 團隊和 ESG 團隊審查許多機會。我並不認為它會在今年產生任何有意義的影響。

And I am Tim, just on the bill itself, we aren't expecting a significant impact on our effective tax rate in '25 or '26. However, we are expecting to get some benefit from a cash tax savings standpoint just as a result of the bonus depreciation rules. So yeah, so we're pleased that those tax benefits that we've had in the past have been restored.

我是提姆，僅就法案本身而言，我們預計它不會對 25 年或 26 年的有效稅率產生重大影響。然而，我們期望從現金稅收節省的角度獲得一些好處，這只是獎金折舊規則的結果。是的，我們很高興我們過去享有的稅收優惠得到了恢復。

Ross Sparenblek, William Blair.

羅斯·斯帕倫布萊克、威廉·布萊爾。

Hey, good morning. This is Sam Karlov on for Ross. Thanks for taking my question. I guess I'll start with margins. I mean, outside of the expected overhead absorption from the underutilized manufacturing capacity, can you talk about what other factors led you to increase your through-cycle margin targets?

嘿，早安。山姆·卡洛夫代替羅斯上場。感謝您回答我的問題。我想我會從利潤開始。我的意思是，除了未充分利用的製造能力所帶來的預期間接費用吸收之外，您能否談談還有哪些其他因素促使您提高整個週期的利潤目標？

Yeah, I think it really comes down to -- we examined the pipeline of our internal initiatives that we believe can prove margin additive, and those include several things. kind of first, continuing to raise production and continuing to leverage our capacity expansions, our growing aftermarket business, we are really pleased with the year over year growth in parts, continuing to realize the synergies from acquisitions that we've done.

是的，我認為這實際上歸結為——我們審查了我們認為可以增加利潤的內部舉措，其中包括幾件事。首先，繼續提高產量，繼續利用我們的產能擴張，不斷增長的售後市場業務，我們對零件業務的同比增長感到非常滿意，繼續實現我們收購帶來的協同效應。

We talked about the SSG in-sourcing that we've done. We believe that provides further opportunities and execution of the Federal Signal operating model. So as we move forward, we have a high degree of confidence of our execution of these initiatives in the long term. And again, these margin targets are meant to be kind of through the cycle. They're not aspirational targets. And internally, we take them very seriously, because they are an integral part of our annual compensation system at each of our businesses.

我們討論了我們已經完成的 SSG 內部採購。我們相信這為聯邦信號運營模式提供了進一步的機會和執行。因此，隨著我們不斷前進，我們對長期執行這些舉措充滿信心。再次強調，這些利潤目標是為了貫穿整個週期。它們並不是理想目標。在內部，我們非常重視它們，因為它們是我們每個企業年度薪資體係不可或缺的一部分。

Got it. That's super helpful. And then as a follow-up, can you give us an update on what you're seeing in the territories you reassigned earlier this year? Have you seen any disruption? And have you been able to successfully retain customers in the region?

知道了。這非常有幫助。然後作為後續問題，您能否向我們介紹一下您在今年早些時候重新分配的地區的最新情況？您看到過任何混亂嗎？您是否能夠成功留住該地區的客戶？

Yeah, I would say that the order intake for that particular territory was in line with expectations. We understand that it takes time to gain traction as the new dealers expand their sales teams to serve these territories. They're also making investments in the infrastructure needed to serve these particular territories, and that takes time. But long term, we believe there's opportunity for increased market share for our products. So the short answer is we're very pleased with what we've seen thus far.

是的，我想說該地區的訂單量符合預期。我們明白，隨著新經銷商擴大銷售團隊以服務這些地區，需要時間來獲得吸引力。他們也正在對服務這些特定地區所需的基礎設施進行投資，而這需要時間。但從長遠來看，我們相信我們的產品有機會增加市場份額。簡而言之，我們對目前所看到的情況非常滿意。

Walt Liptak, Seaport Global Securities.

華特·利普塔克（Walt Liptak），Seaport Global Securities。

Hi, thanks guys. Congratulations on a nice quarter.

嗨，謝謝大家。恭喜本季取得良好業績。

Thank you, Walt.

謝謝你，沃特。

Hey, so I just wanted to go over these margin target ranges again, and just to get a clarity, so you increased the ESG margin range, and you went over what it was but SSG, did you increase margin targets there?

嘿，所以我只是想再次回顧一下這些利潤目標範圍，只是為了更清楚一點，所以你增加了 ESG 利潤範圍，並且你回顧了它是什麼，但是 SSG，你是否增加了那裡的利潤目標？

Yeah, I mean we had increased the margin targets for SSG in the second half of last year. And the team's had a fantastic quarter, as we talked about in the prepared remarks. But given that recency, also that particular team, we've talked about has 1% of Federal Signal COGS is exposed to China. It's really the predominant source of that is our SSG team.

是的，我的意思是我們在去年下半年提高了 SSG 的利潤目標。正如我們在準備好的演講中談到的，該團隊度過了一個精彩的季度。但考慮到最近的情況，以及我們討論過的特定團隊，其 1% 的聯邦訊號 COGS 受到中國的影響。這其中最主要的來源確實是我們的 SSG 團隊。

So we're monitoring the tariff situation as we move forward. We have an internal initiative to in-source additional printed circuit board lines that we're on track to do. So given the recency of our raise of the EBITDA margins for SSG, we'll continue to monitor it. But again, I'll emphasize that we are committed to raising those ranges longer term and very pleased with the progress the teams at both SSG and ESG made during the quarter.

因此，我們正在持續監測關稅情況。我們有一個內部計劃，即將額外的印刷電路板生產線納入內部採購，目前該計劃正在按計劃進行。因此，鑑於我們最近提高了 SSG 的 EBITDA 利潤率，我們將繼續對其進行監控。但我再次強調，我們致力於長期提高這些範圍，並對 SSG 和 ESG 團隊在本季取得的進展感到非常滿意。

Okay. Great. Yeah, it sounds like that in-sourcing of sourced components is going great, and you mentioned the fourth PCB line going in. What -- like where -- how far along are you in that in-sourcing? Is this like the final production line? Or is there more to go after this?

好的。偉大的。是的，聽起來採購組件的進展很順利，而且您提到了第四條 PCB 生產線的投入。您在內部採購方面進展到什麼程度了？這就像最終的生產線嗎？或者說這之後還有更多事情要做？

Yeah, I think we're on track, and we expect for it to be fully operational by the end of the year. I think it's important to understand that there are several benefits for our SSG team regarding this in-sourcing initiative. One is that it supports the higher growth volumes, but it provides a lot of flexibility for us as we launch new products. We found that it's really accelerated our new product development efforts.

是的，我認為我們正在按計劃進行，我們預計它將在今年年底全面投入營運。我認為，重要的是要了解，這項內部採購計畫會為我們的 SSG 團隊帶來多種好處。一方面，它支援更高的成長量，另一方面，它為我們推出新產品提供了很大的靈活性。我們發現它確實加速了我們的新產品開發。

We think it could have potential benefits, as we expand the SSG platform through M&A. And so we believe there's future opportunity beyond the fourth printed circuit board line.

我們認為它可能會帶來潛在的好處，因為我們可以透過併購來擴展 SSG 平台。因此，我們相信第四條印刷電路板生產線之外還存在著未來的機會。

Okay. All right. Great. And just to follow up on that first question again. So the profit margins in SSG were really good this quarter. Is that something where we're just being cautious on it? Or is that sort of a sustainable margin in the back half of the year? Is that in the guidance, I guess?

好的。好的。偉大的。我再次跟進第一個問題。因此本季 SSG 的利潤率非常好。我們是不是應該對此保持謹慎？或者說，這是下半年可持續的利潤率嗎？我想這是在指導中嗎？

Yeah, I think, well, obviously, the team had an outstanding quarter, and there was a couple of things that helped on the margin front. We had some favorable changes in inventory reserves, which -- that's not necessarily baked into the guidance that that's going to repeat in the second half of the year. We also had some of the benefits from the in-sourcing initiatives, and that would be something that would be -- we would expect to continue to realize going forward.

是的，我認為，顯然，球隊本季表現出色，並且有幾件事對利潤率有幫助。我們的庫存儲備發生了一些有利的變化，但這不一定會反映在下半年將重複的預期中。我們也從內部採購措施中獲得了一些好處，我們希望在未來繼續實現這些好處。

As Jennifer mentioned, while we do have kind of a fairly limited exposure on the tariff front, the business that does have most of that exposure is SSG. And so we're waiting to see how that really plays out. We've baked into the guide kind of the current state. But I think that was probably in terms of the outlook or the -- not raising the targets. For example, for SSG, we want to kind of wait and see how that plays out just to get some additional time behind us.

正如詹妮弗所提到的，雖然我們在關稅方面的曝光度確實相當有限，但曝光度最高的業務是 SSG。因此，我們正在等待，看看事情最終會如何發展。我們已經將目前狀態融入指南類型中。但我認為這可能與前景有關，或者沒有提高目標。例如，對於 SSG，我們希望等待並觀察其進展情況，以便獲得一些額外的時間。

Okay. Good. And maybe one last one around this in-sourcing. You've done great with the PCB lines. Have you started looking at other things that you might want to in-source and just make yourself? Like is this a longer opportunity? Or do you think the PCB is just a unique opportunity that you had?

好的。好的。也許這是關於內部採購的最後一個問題。您的 PCB 線路設計做得非常好。您是否已經開始考慮其他您可能想要自行採購並製造的東西？這是一個更長的機會嗎？或者您認為 PCB 只是您擁有的獨特機會？

I would say across all of Federal Signal, our businesses are constantly evaluating that in-sourcing, outsourcing balance and looking for opportunities, when it makes sense to bring particular componentry in-house.

我想說，在整個聯邦信號公司，我們的業務都在不斷評估內部採購和外包之間的平衡，並尋找機會，將特定的組件引入內部。

Steve Barger, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Steve Barger。

Thanks, good morning. I think, it's really good to see the product strategy generating strong results. How do you think about the good, better, best approach, increasing the ESG TAM? Or what could that add to the growth algorithm?

謝謝，早安。我認為，看到產品策略產生強勁成果真是太好了。您認為提升 ESG TAM 的好方法、更好方法、最佳方法是什麼？或者這對成長演算法有什麼幫助？

Yeah, so this (inaudible) has been an effort that we've really been working on over the last couple of years. And going back to our long-term growth algorithm, as you know, we want to -- we target low double-digit growth, about half of that coming from organic growth initiatives. And this is one of the strategies that helps us get those kinds of extra points beyond kind of regular end market growth. So we're able to leverage our NPD teams.

是的，所以這（聽不清楚）是我們過去幾年來一直在努力的一件事。回到我們的長期成長演算法，如您所知，我們希望實現低兩位數成長，其中約一半來自有機成長計畫。這是幫助我們獲得超越常規終端市場成長的額外積分的策略之一。因此我們能夠利用我們的新產品開發團隊。

We're able to leverage channel. It really opens up new customer base for us, and kind of given the strength of our brands in those particular end markets, we're encouraged by the success that we've seen thus far. In summary, when we talk about how do we outgrow the market, this is an important part of that particular strategy long term.

我們能夠利用管道。它確實為我們開闢了新的客戶群，並考慮到我們的品牌在這些特定終端市場的實力，我們對迄今為止所取得的成功感到鼓舞。總之，當我們談論如何超越市場時，這是長期特定策略的重要組成部分。

Do you have enough data to really be able to quantify the share gains at the low end where you didn't participate before, I guess?

我想，您是否有足夠的數據來真正量化您之前未參與的低端市場的份額成長？

Yeah, as part of our data analytics team, our teams are getting more granular in terms of understanding market share. And as we look across the various businesses, our market shares range somewhere between 20% and 50%. Part of it is how you define it. So that gives us a lot of opportunity in different categories to continue to expand and grow.

是的，作為我們數據分析團隊的一部分，我們的團隊在了解市場份額方面變得更加細緻。縱觀各個業務，我們的市佔率在 20% 到 50% 之間。部分原因在於你如何定義它。因此，這為我們在不同類別中繼續擴張和發展提供了大量機會。

Got it. And you had a line in the prepared remarks about Hog's internal tech that you're spreading across other product lines. What is that specifically? And can you talk about any other technology initiatives that you have in place that are helping widen competitive advantages?

知道了。您在準備好的演講中提到了有關 Hog 內部技術的言論，並且您正在將該技術傳播到其他產品線。那具體是什麼？您能否談談您採取的其他有助於擴大競爭優勢的技術措施？

Sure, absolutely. Last week, we had our Board meeting down at Hog. And one of the things that we took a look at to demonstrate for our Board is their virtual reality training modules. And it does everything, kind of three parts to it. One is the, how to operate the equipment, which provides very important training, particularly when several of our customers have labor constraints.

當然，絕對是如此。上週，我們在 Hog 舉行了董事會。我們向董事會展示的其中一件事就是他們的虛擬實境培訓模組。它可以完成所有的事情，大致分為三個部分。一是如何操作設備，這提供了非常重要的培訓，特別是當我們的一些客戶面臨勞動力限制的時候。

Number two, provides different live training regarding repairing equipment. And then finally, it provides access to historical manuals. And it is something that we were impressed by the Hog team. And we look to leverage that training for other Federal Signal products. Another example would be their control systems.

第二，提供有關設備維修的不同現場訓練。最後，它提供了對歷史手冊的存取。Hog 團隊給我們留下了深刻的印象。我們希望將此培訓應用於其他 Federal Signal 產品。另一個例子是他們的控制系統。

They've developed very sophisticated control systems that simplify operation of the equipment. And we know in our voice of customer studies, that's something that's very important with -- particularly as labor has turned over for several of our customers. So as we move into '26, we'll be looking for opportunities to leverage that technology across the Federal Signal Specialty vehicle platform.

他們開發了非常複雜的控制系統，簡化了設備的操作。我們從客戶之聲研究中得知，這一點非常重要——尤其是當我們的幾家客戶的勞動力已經轉移的時候。因此，當我們進入 26 年時，我們將尋找機會在 Federal Signal Specialty 車輛平台上利用該技術。

Got it. Okay. And if I can just sneak one more in. On the M&A front, it seems like you've become kind of a preferred buyer. Can you talk about what you're seeing for multiples in the specialty vehicle market broadly and what you're seeing on the books that are crossing your desk?

知道了。好的。如果我能再偷偷溜進去一個的話。在併購方面，您似乎已經成為優先買家。您能否大致談談您對專用車輛市場多元化的看法，以及您在辦公桌上看到的書籍的情況？

Yeah, absolutely. Kind of two parts to it. One is we continue to proactively source deals, and we have developed a reputation as a buyer of choice. And in those deals, just repeating, we're really developing a solid pipeline for our SSG business that we -- our intent is to grow that business both organically and through M&A. On the ESG side, we're continuing to grow that internal pipeline.

是的，絕對是如此。它分為兩部分。一是我們繼續積極尋找交易，並且我們已經贏得了首選買家的聲譽。在這些交易中，我再說一遍，我們確實在為我們的 SSG 業務開發一條堅實的管道，我們的目的是透過有機成長和併購來發展該業務。在 ESG 方面，我們正在繼續擴大內部管道。

We also see deals that are brought just by various bankers. I guess I would say that depending on the asset, the interest in the asset, kind of the multiples are all over. And it would be hard to quantify because there really is kind of a wide range of multiple expectations out there.

我們也看到由不同的銀行家促成的交易。我想說的是，這取決於資產、資產的權益、各種倍數。而且這很難量化，因為確實存在各種各樣的多重期望。

Chris Moore, CJS Securities.

克里斯·摩爾（Chris Moore），CJS 證券。

Good morning. Congrats on a terrific quarter.

早安.恭喜本季取得優異成績。

It is a good morning.

這是一個美好的早晨。

That's right. So orders strong, $450 million, up 14%, especially impressive given the exceptionally strong Q1, $568 million, when you had to wonder if maybe there was some pull-through from the tariffs. I guess it's the same question there. How would you view Q2 from that perspective? Is likely much pull forward from what you can tell?

這是正確的。因此訂單表現強勁，達到 4.5 億美元，成長 14%，考慮到第一季異常強勁的 5.68 億美元，這一表現尤其令人印象深刻，當時你不得不懷疑關稅是否起到了一定作用。我想那裡也有同樣的問題。從這個角度您如何看待第二季？從您所知來看，這很可能會帶來很大的進步嗎？

Yeah, I guess a couple of things I'll comment on. First of all, when we look at the order composition between publicly funded and industrial, it was pretty broad-based across the board, which was encouraging. Our metal extraction support, vacuum trucks, particularly led by safe digging, sweepers, SSG were all up double digits year over year. And we don't believe that we saw any kind of significant pull forward in orders from tariffs.

是的，我想我會對一些事情發表評論。首先，當我們查看公共資助和工業之間的訂單組成時，我們發現它們的組成相當廣泛，這是令人鼓舞的。我們的金屬開採支援、真空卡車（尤其是安全挖掘）、清掃車、SSG 均比去年同期增長了兩位數。我們認為，關稅並未對訂單帶來任何顯著的拉力。

And if you think about our business, 50%-plus is from publicly funded customers. They typically don't pull forward orders given the nature of the RFP or bid board type processes.

如果你考慮我們的業務，你會發現 50% 以上來自公共資助的客戶。鑑於 RFP 或投標委員會類型流程的性質，他們通常不會提前下訂單。

Got it. Very helpful. During the Q1 call, you talked about some SSG competitors sourcing quite a bit from China, and that being potentially helpful down the line. Are you seeing much from that? Or just any thoughts there?

知道了。非常有幫助。在第一季的電話會議上，您談到了一些 SSG 競爭對手從中國採購了相當多的商品，這可能會對未來有所幫助。你從中看到什麼了嗎？或只是有什麼想法嗎？

Yeah, I think that it's probably too early to comment on that particular issue. But I'd just be remiss if I didn't give a shout out to our SSG team. The public safety equipment orders were up $11.4 million domestically and internationally were up $5.2 million. So just really strong across the board.

是的，我認為現在評論這個特定問題可能還為時過早。但如果我不向我們的 SSG 團隊致敬，那我就太失職了。國內公共安全設備訂單增加了 1,140 萬美元，國際訂單增加了 520 萬美元。所以整體表現確實很強。

Our warning systems business was up $2.3 million, mostly domestic. So as I mentioned, they had a record order intake of $99 million in the quarter. And what I want to emphasize here is the teams are really driving strategic initiatives to expand their market share.

我們的預警系統業務成長了 230 萬美元，主要來自國內市場。正如我所提到的，他們本季的訂單量創下了 9,900 萬美元的紀錄。我想在這裡強調的是，這些團隊確實在推動策略性舉措以擴大他們的市場份額。

Got it. I was going there next. So maybe just my last one. Just cash flow overall, terrific first half, cash flow from operations. Just any more thoughts on kind of the balance of '25 moving forward?

知道了。我接下來要去那裡。所以也許這只是我的最後一個。整體現金流方面，上半年的經營現金流表現非常好。對於 25 年以後的平衡，您還有什麼想法嗎？

Yeah, I think, Chris, we continue to target on an annual basis, 100% cash conversion. That's operating cash flow over net income. So I think if you look at where we are year to date, we're at just over 80%. So we think there's still room for some improvement in the second half of the year. I would also note that when you look at the year over year improvement in cash generation, we had $60 million in Q2 this year, and that was up nicely over last year.

是的，克里斯，我認為我們將繼續以年度為目標，實現 100% 的現金轉換。這是經營現金流量除以淨收入。所以我認為，如果你看看我們今年迄今為止的狀況，我們已經達到了 80% 多一點。因此我們認為下半年仍有一些改善的空間。我還要指出的是，當你查看現金產生情況的同比增長時，我們今年第二季的現金產生額為 6000 萬美元，比去年同期有大幅增長。

And that's despite some -- an increase in tax payments year over year because in Q2 last year, we received a refund of about $14 million back. So that increase was notwithstanding the fact that, that didn't repeat. So we were really pleased with the cash generation during the quarter. And we think second half of the year, we'll continue to see strong cash generation.

儘管納稅額年增，但去年第二季我們收到了約 1,400 萬美元的退稅。因此，儘管事實如此，但這種增長並沒有重複。因此，我們對本季的現金產生感到非常滿意。我們認為，今年下半年我們將持續看到強勁的現金創造。

Mike Shlisky, D.A. Davidson & Company.

Mike Shlisky，D.A. Davidson & Company。

Good morning. Can I ask about how orders are progressing so far in the first month of the quarter here in July? And if you got any phone calls maybe after the first week of July with some folks who -- on the industrial side, that felt they could have come out of the work with someone Big Beautiful Bill order, that they've been holding off on until they had some certainty. Has that been a factor at all in the orders in July thus far?

早安.我可以問一下七月本季第一個月到目前為止訂單進展如何嗎？如果您在 7 月的第一周之後接到一些工業方面的電話，他們覺得他們可以按照 Big Beautiful Bill 的命令完成工作，因此他們一直在等待確定性。到目前為止，這是否是影響七月訂單的因素？

Yeah, we don't typically comment on kind of pending quarter orders. We haven't heard a lot yet because it's relatively new on the impact of the bonus depreciation benefits for industrial customers. But we would expect kind of as we move forward, that could be a possible benefit.

是的，我們通常不會對未完成的季度訂單發表評論。我們還沒有聽到太多消息，因為獎金折舊福利對工業客戶的影響相對較新。但我們預計，隨著我們不斷前進，這可能會帶來好處。

Great. Also wanted to ask a little bit more about the good, better, best strategy and the margin impact. As you introduce new products there to kind of fill in spot, some of them -- it sounds like the lower -- the smaller chassis side without CDLs, is there a margin impact we should be thinking about there? Or is kind of having your ATI initiatives enough to keep the overall margins for those products halfway decent here?

偉大的。也想多問一些關於好的、更好的、最好的策略以及利潤影響的問題。當您推出新產品來填補空缺時，其中一些 - 聽起來像是較低的 - 沒有 CDL 的較小底盤側，我們是否應該考慮對利潤率的影響？或者您的 ATI 計劃足以讓這些產品的整體利潤率保持中等水平？

Yeah. So I think it's really important to go back to that each one of our business units has EBITDA margin targets as part of their annual compensation system. So we take these targets that we set with the Street very seriously. And as we develop new products, as we acquire companies, we look through the lens of those margin targets in terms of continuing to increase our EBITDA margins over the long run.

是的。因此，我認為回顧這一點非常重要，即我們每個業務部門都將 EBITDA 利潤率目標作為其年度薪資系統的一部分。因此，我們非常重視與華爾街設定的這些目標。當我們開發新產品、收購公司時，我們會從利潤率目標的角度來考慮如何長期持續提高我們的 EBITDA 利潤率。

With respect to these particular products, there's an important factor, it's also important to look at that we have available capacity. And these particular products would continue to utilize some of that capacity, which has favorable economics. And we've also found that some of these products too can be particularly on the industrial side, in addition to opening up new markets, they might buy a good or better product. And then over time, they would move kind of up into the best product. And finally, it creates stickiness and opportunities for our aftermarket team long run.

對於這些特定產品，有一個重要因素，那就是看我們是否有可用產能，這也很重要。這些特定產品將繼續利用部分產能，這具有良好的經濟效益。而且我們也發現其中一些產品也可能特別在工業方面，除了開拓新市場之外，他們還可能會購買好或更好的產品。然後隨著時間的推移，他們就會開發出最好的產品。最後，它為我們的售後市場團隊長期創造了黏性和機會。

And so it really has been in the products that I cited, the Paradigm, the RegenX, the Badger product, we're really encouraged by the results that we're seeing to date.

因此，在我引用的產品中，Paradigm、RegenX、Badger 產品，我們對迄今為止所看到的結果感到非常鼓舞。

Greg Burns, Sidoti & Company.

格雷格·伯恩斯（Greg Burns），Sidoti & Company。

Good morning. In the SSG segment, when we look at the revenue recognition this quarter versus maybe the strong orders and backlog, was that just a timing issue in terms of when the orders came in? And -- or was there any production bottlenecks, which caused some of that order intake to be pushed out to later quarters? And then within the orders, was there any particularly large fleet type orders or anything to -- worth calling out there? Or was it just broad-based order demand?

早安.在 SSG 部門，當我們查看本季的營收確認與強勁的訂單和積壓訂單時，這是否僅僅是訂單到來的時間問題？或者是否有任何生產瓶頸，導致部分訂單被推遲到以後的季度？那麼在訂單中，是否有任何特別大型的艦隊類型訂單或任何值得注意的訂單？或者這只是廣泛的訂單需求？

Yeah. The order versus sales disparity, Greg, that again, as you mentioned, is mostly timing just in terms of when it came in because typically, within that business, it's -- we can receive the order and ship it within the same quarter sometimes. The backlog for SSG, as you probably would have seen, is at a record level. So backlog typically isn't as relevant a metric for SSG, as it is for some of our ESG businesses. And that's really just a reflection of just the timing of when the orders are received.

是的。格雷格，正如您所提到的，訂單與銷售額之間的差異主要是時間上的差異，因為通常情況下，在那個行業中，我們有時可以在同一季度內收到訂單並發貨。您可能已經看到，SSG 的積壓訂單已達到創紀錄的水平。因此，積壓訂單通常不是 SSG 的相關指標，但對於我們的一些 ESG 業務而言卻是如此。這實際上只是收到訂單的時間的反映。

There wasn't anything of a material nature in terms of large fleet orders. We had some larger orders from certain customers, but nothing I would necessarily call out in terms of an unusually large fleet order on the SSG side.

就大型艦隊訂單而言，沒有任何實質的進展。我們從某些客戶那裡獲得了一些較大的訂單，但就 SSG 方面的異常大型船隊訂單而言，我並不一定會大肆宣揚。

Okay. Great thanks. And then in terms of M&A, are there any new markets, that you're looking at or interested in potentially entering? And within your existing markets, are there any that offer particularly good opportunities for you where you think you're subscale and you'd like to get bigger in those markets given the opportunities that you see ahead for maybe some of those areas?

好的。非常感謝。那麼在併購方面，是否有任何新市場是您正在關注或有興趣進入的？在您現有的市場中，是否有哪個市場能為您提供特別好的機會，您認為您的規模還不夠大，並且考慮到您預見到的某些領域的未來機遇，您希望在這些市場中做大？

Yeah. I'll reiterate that our pipeline is about as active as it's been. And one of the areas that we're encouraged by is the opportunities for our SSG business. We've been working on developing that pipeline over the last couple of years.

是的。我要重申的是，我們的管道和以前一樣活躍。令我們感到鼓舞的領域之一是我們的 SSG 業務所面臨的機會。過去幾年我們一直致力於開發該管道。

And we think there's a number of opportunities, both currently and in the long run. With respect to the ESG side, we're continuing to look at kind of new verticals. We're looking at filling in holes within existing verticals, geographic expansion, particularly for our aftermarket team. So a lot of opportunity out there. And again, that being that buyer of choice proves to be valuable in many of those acquisitions.

我們認為，無論當前或長遠來看，都存在著許多機會。就 ESG 方面而言，我們正在繼續專注於新的垂直領域。我們正在考慮填補現有垂直領域的空白，進行地理擴張，特別是針對我們的售後市場團隊。因此，這裡有很多機會。再次，事實證明，在許多收購中，選擇買家是有價值的。

Thank you. I would like to turn the floor over to Jennifer for closing remarks.

謝謝。我想請詹妮弗做最後發言。

Thank you. In closing, I would like to note that during the quarter, we published our sixth annual sustainability report, which is available on our website. The report highlights our progress against our natural resource reduction goals and our ongoing community engagement efforts.

謝謝。最後，我想指出的是，本季我們發布了第六份年度永續發展報告，可在我們的網站上查閱。該報告重點介紹了我們在實現自然資源減少目標方面取得的進展以及我們正在進行的社區參與工作。

It is our people that define the unique culture at Federal Signal, and we remain committed to investing in the local communities in which we operate. We would also like to express our thanks to our stockholders, distributors, dealers and customers for their continued support. Thank you for joining us today, and we'll talk to you soon.

正是我們的員工定義了 Federal Signal 獨特的文化，我們始終致力於投資於我們營運所在的當地社區。我們也要向股東、經銷商、經銷商和客戶的持續支持表示感謝。感謝您今天加入我們，我們很快就會與您聯繫。

This concludes today's teleconference. You may disconnect your lines at this time and thank you for your participation.

今天的電話會議到此結束。現在您可以斷開您的線路了，感謝您的參與。