Fortive Corp (FTV) 2023 Q2 法說會逐字稿

My name is Rob, and I will be your conference facilitator this afternoon. At this time, I would like to welcome everyone to the Fortive Corporation's Second Quarter 2023 Earnings Results Conference Call. (Operator Instructions)

我叫羅布，今天下午我將擔任你們的會議主持人。現在，我歡迎大家參加 Fortive 公司 2023 年第二季度盈利結果電話會議。 （操作員說明）

I would now like to turn the call over to Ms. Elena Rosman, Vice President of Investor Relations. Ms. Rosman, you may begin your conference.

我現在想將電話轉給投資者關係副總裁埃琳娜·羅斯曼女士。羅斯曼女士，您可以開始會議了。

Thank you, Rob, and thank you, everyone, for joining us on today's call. With us today are Jim Lico, our President and Chief Executive Officer; and Chuck McLaughlin, our Senior Vice President and Chief Financial Officer.

謝謝羅布，也謝謝大家參加今天的電話會議。今天與我們在一起的有我們的總裁兼首席執行官吉姆·利科 (Jim Lico)；以及我們的高級副總裁兼首席財務官查克·麥克勞克林 (Chuck McLaughlin)。

We present certain non-GAAP financial measures on today's call. Information required by Regulation G are available on the Investors section of our website at fortive.com. Our statements on period-to-period increases or decreases refer to year-over-year comparisons unless otherwise specified.

我們在今天的電話會議上提出了某些非公認會計準則財務指標。 G 條例要求的信息可在我們網站 fortive.com 的投資者部分獲取。除非另有說明，我們關於期間增減的陳述均指同比比較。

During the call, we will make forward-looking statements, including statements regarding events or developments that we expect or anticipate will or may occur in the future. These forward-looking statements are subject to a number of risks, and actual results might differ materially from any forward-looking statements that we make today. Information regarding these risk factors is available in our SEC filings, including our annual report on Form 10-K for the year ended December 31, 2022. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update.

在電話會議期間，我們將做出前瞻性聲明，包括有關我們預期或預計未來將或可能發生的事件或發展的聲明。這些前瞻性陳述面臨許多風險，實際結果可能與我們今天做出的任何前瞻性陳述存在重大差異。有關這些風險因素的信息可在我們向SEC 提交的文件中找到，包括我們截至2022 年12 月31 日的年度10-K 表格年度報告。這些前瞻性陳述僅代表截至其發布之日的情況，我們不承擔任何責任。承擔任何更新義務。

With that, I'd like to turn the call over to Jim Lico.

說到這裡，我想把電話轉給吉姆·利科。

Thanks, Elena. Hello, everyone, and thank you for joining us. I'll begin on Slide 3. Our second quarter results once again demonstrated the durability of our portfolio and the strength of our execution, allowing us to deliver higher core growth, margins, earnings and free cash flow.

謝謝，埃琳娜。大家好，感謝您加入我們。我將從幻燈片 3 開始。我們第二季度的業績再次證明了我們投資組合的耐久性和執行力，使我們能夠實現更高的核心增長、利潤率、收益和自由現金流。

Core revenue growth of 5.5% reinforces that our strategy is working, building leading positions across our customers' critical connected workflows with performance reinforcing the resilience of our transformed portfolio. We also delivered record margins in the second quarter, expanding adjusted gross margins by 250 basis points to 59.5% and adjusted operating margins by 190 basis points to 26%. We're converting more revenue to earnings and more earnings to cash with 90% growth in adjusted earnings per share and free cash flow in the quarter.

5.5% 的核心收入增長強化了我們的戰略正在發揮作用，在客戶的關鍵互聯工作流程中建立了領先地位，其業績增強了我們轉型後的產品組合的彈性。我們在第二季度還實現了創紀錄的利潤率，調整後毛利率擴大了 250 個基點，達到 59.5%，調整後營業利潤率提高了 190 個基點，達到 26%。我們正在將更多收入轉化為收益，並將更多收益轉化為現金，本季度調整後每股收益和自由現金流增長了 90%。

Our ability to consistently drive our performance is directly tied to our culture of continuous improvement and dedication to the Fortive Business System. Our mandate this year, to unleash FBS, which is driving record productivity from Kaizen activity across the enterprise and increasing our confidence in our raised outlook for the year that we believe further positions Fortive for accelerated compounding in 2024 and beyond.

我們持續提升績效的能力與我們持續改進和致力於 Fortive 業務系統的文化直接相關。我們今年的任務是釋放 FBS，它正在推動整個企業的 Kaizen 活動創紀錄的生產率，並增強了我們對今年提高的前景的信心，我們相信這進一步使 Fortive 在 2024 年及以後加速復合。

Turning to Slide 4. I wanted to provide an update on what we are seeing and what we are expecting over the course of the rest of the year. Starting with health care, industry recovery is on track as labor and productivity challenges continue to moderate. We are seeing traction on our pricing and productivity initiatives, yielding sequential growth and profitability in the second quarter. We expect further improvement in AHS in the second half, with higher core growth and operating margins.

轉向幻燈片 4。我想提供有關我們在今年剩餘時間內所看到的情況和預期的最新情況。從醫療保健開始，隨著勞動力和生產力挑戰持續緩解，行業復甦已步入正軌。我們看到我們的定價和生產力計劃受到牽引，在第二季度實現了連續增長和盈利。我們預計下半年 AHS 將進一步改善，核心增長和營業利潤率將更高。

We also continue to drive growth in our software and services businesses with SaaS revenue up mid-teens on strong enterprise growth and bookings. Hardware products have also been running ahead of expectations as traction on new product launches and leveraged to secular drivers are helping to provide more backlog to buffer the normalization of industrial demand. As we sit here today, we now expect to have over $200 million of excess backlog heading into next year, well positioning us for 2024.

我們還繼續推動軟件和服務業務的增長，憑藉強勁的企業增長和預訂，SaaS 收入實現了十幾歲左右的增長。硬件產品的運行也超出了預期，因為新產品發布的牽引力和長期驅動因素的利用有助於提供更多的積壓，以緩衝工業需求的正常化。當我們今天坐在這裡時，我們預計明年將有超過 2 億美元的超額積壓訂單，這為我們在 2024 年做好了準備。

Our strategy to create a more durable growth company is working. Our recurring revenue businesses are expected to accelerate first half to second, led by higher software and consumables growth. Combined with favorable pricing and discrete productivity initiatives, we now expect over 125 basis points of adjusted operating margin expansion for the year. Lastly, our robust free cash flow and low leverage profile provides further flexibility to accelerate compounding with an attractive funnel of M&A opportunities aligned to our workflow strategy.

我們創建一家更持久的成長型公司的戰略正在發揮作用。在軟件和消耗品增長的帶動下，我們的經常性收入業務預計將在上半年和下半年加速增長。結合有利的定價和離散的生產力計劃，我們現在預計今年調整後的營業利潤率將增長超過 125 個基點。最後，我們強勁的自由現金流和低杠桿狀況提供了進一步的靈活性，可以通過與我們的工作流程策略相一致的有吸引力的併購機會漏斗來加速復合。

Turning to Slide 5. Our success in the quarter demonstrates our ability to leverage our domain expertise in hardware and accelerate software and data analytics across our 5 customer connected workflows, where we are enabling progress in a number of high-impact fields, all benefiting from customer investments in automation and digitization, the energy transition and the need for productivity solutions to address labor, manufacturing, inflation and regulatory challenges globally. For example, solar energy is one of the fastest-growing renewable energy sources worldwide. From the grid to hybrid and backup systems, connected reliability solutions are ensuring the maintenance and efficiency of critical infrastructure, enabling the energy transition and IoT expansion.

轉向幻燈片5。我們在本季度的成功證明了我們有能力利用我們在硬件方面的領域專業知識，並在5 個客戶連接的工作流程中加速軟件和數據分析，在這些工作流程中，我們正在許多高影響力領域取得進展，所有這些都受益於客戶對自動化和數字化的投資、能源轉型以及對生產力解決方案的需求，以應對全球勞動力、製造、通貨膨脹和監管挑戰。例如，太陽能是全球增長最快的可再生能源之一。從電網到混合動力和備用系統，互聯可靠性解決方案可確保關鍵基礎設施的維護和效率，從而實現能源轉型和物聯網擴展。

Environmental health and safety solutions are safeguarding workers and enabling customers' ESG reporting and compliance. Our leading facility and asset life cycle software applications are improving asset performance, optimizing workplaces and accelerating customer productivity efforts. Our innovations in the product realization workflow are solving customers' toughest technical challenges, the speed breakthroughs in a wide range of applications including helping to increase the proliferation of electrified and connected devices and advance the democratization of high-performance compute and AI-driven data analytics as well as in the perioperative loop, where we're helping health care providers deliver exceptional patient care more efficiently, with industry-leading clinical safety and productivity solutions. In summary, we are seeing strong customer success on new product launches, highly aligned to these secular trends where our innovation funnels remain focused, which I'll take a moment to discuss further on Slide 6.

環境健康和安全解決方案正在保護工人並促進客戶的 ESG 報告和合規性。我們領先的設施和資產生命週期軟件應用程序正在提高資產性能、優化工作場所並加快客戶生產力的提高。我們在產品實現工作流程方面的創新正在解決客戶最棘手的技術挑戰，在廣泛的應用中實現快速突破，包括幫助增加電氣化和互聯設備的普及，並推動高性能計算和人工智能驅動的數據分析的民主化以及圍手術期，我們通過行業領先的臨床安全和生產力解決方案幫助醫療保健提供者更有效地提供卓越的患者護理。總之，我們看到客戶在新產品發布上取得了巨大成功，與我們的創新渠道仍然關注的長期趨勢高度一致，我將花點時間在幻燈片 6 上進一步討論這一點。

As we highlighted at our Investor Day in May, our FBS growth tools are accelerating innovation cycles to drive share gains and maximize R&D returns to create and sustain our competitive advantage in a number of exciting new areas. For example, we highlighted new product launches at Fluke to accelerate the distributed energy strategy and penetrate the high-growth EV storage equipment market with new testing tools that ensure technicians' safety and asset performance.

正如我們在5 月份的投資者日所強調的那樣，我們的FBS 增長工具正在加速創新周期，以推動份額增長並最大限度地提高研發回報，從而在許多令人興奮的新領域創造並維持我們的競爭優勢。例如，我們重點介紹了福祿克推出的新產品，以加速分佈式能源戰略，並通過確保技術人員安全和資產性能的新測試工具滲透高增長的電動汽車存儲設備市場。

At Gordian, our unique planning tools, RSMeans data and technical expertise helped the California County optimize their infrastructure, resulting in millions of yearly cost savings and a significant reduction in project completion time lines. Tektronix is providing performance scopes and wave form generators to help customers develop quantum computing to advance AI applications, including a large aerospace and defense customer win in the quarter.

在 Gordian，我們獨特的規劃工具、RSMeans 數據和技術專業知識幫助加州縣優化其基礎設施，每年節省數百萬美元的成本，並顯著縮短項目完成時間。泰克正在提供高性能示波器和波形發生器，幫助客戶開發量子計算以推進人工智能應用，包括在本季度贏得了大型航空航天和國防客戶。

Provation's latest cloud-based documentation software is saving physicians roughly 16 hours per month in documentation and reporting which is why Provation continues to be the provider of choice with accelerated win rates and Apex adoption. Lastly, Intelex leveraged lean portfolio management to expand its foothold in environmental accounting, compliance and reporting. Accelerating the launch of its new ESG corporate reporting solution.

Provation 最新的基於雲的文檔軟件每月為醫生節省大約 16 個小時的文檔和報告時間，這就是 Provation 繼續成為首選提供商的原因，並加快了獲勝率和 Apex 採用率。最後，Intelex 利用精益投資組合管理來擴大其在環境會計、合規性和報告方面的立足點。加速推出新的 ESG 企業報告解決方案。

Fortive is committed to innovation across all aspects of the company. And this quarter, we received 2 notable recognitions for our innovative sustainability efforts. In May, USA Today and Statista have named Fortive one of America's Climate Leaders in 2023. This award recognizes us as a leader in greenhouse gas emissions reductions and singled out Fortive as a top emissions reducer among more than 2,000 companies nationwide. And in June, Fortive was selected as a finalist for the 2023 World Sustainability Awards in the Profit with a Purpose category, which recognizes companies that link revenue generation to sustainability. We're incredibly proud of our culture of innovation and continuous improvement and how that not only shows up in the solutions we deliver for our customers but also in the positive impact we are making around the world.

Fortive 致力於公司各個方面的創新。本季度，我們的創新可持續發展努力獲得了兩項顯著認可。 5 月，《今日美國》和Statista 將Fortive 評為2023 年美國氣候領導者之一。該獎項認可了我們在溫室氣體減排方面的領導者地位，並在全國2,000 多家公司中將Fortive 評選為頂級減排者。 6 月，Fortive 入圍 2023 年世界可持續發展獎“有目的的利潤”類別的決賽，該獎項旨在表彰將創收與可持續發展聯繫起來的公司。我們對我們的創新和持續改進文化感到無比自豪，這不僅體現在我們為客戶提供的解決方案中，而且體現在我們在世界各地產生的積極影響中。

I'll now provide more details on each of our 3 segments, beginning with Intelligent Operating Solutions on Slide 7. IOS grew core revenue by 4%, driven by good growth in most regions. Strong FBS-driven execution resulted in 420 basis points of adjusted operating margin expansion. Driving operating margins to a record 33%. Looking at our performance drivers by workflow and connected reliability, Fluke core revenues were up slightly, lapping the Shanghai recovery last year, with mid-single-digit orders growth in the quarter. Fluke margins expanded by more than 300 basis points year-over-year, driven by productivity initiatives and solid price realization. eMaint saw record quarterly bookings, fueled by the continued success of the new X5 CMMS product launch.

現在，我將提供有關我們3 個細分市場中每一個細分市場的更多詳細信息，從幻燈片7 上的智能操作解決方案開始。在大多數地區的良好增長的推動下，IOS 的核心收入增長了4%。 FBS 驅動的強大執行力使調整後的營業利潤率擴大了 420 個基點。將營業利潤率推至創紀錄的 33%。從工作流程和連接可靠性方面的績效驅動因素來看，福祿克核心收入略有增長，超越了去年上海的複蘇，本季度訂單增長達到中個位數。在生產力計劃和穩定的價格實現的推動下，福祿克的利潤率同比增長了 300 個基點以上。在新 X5 CMMS 產品發布的持續成功推動下，eMaint 的季度預訂量創歷史新高。

EHS revenues grew by high single digits with record iNet growth at ISC and strong SaaS momentum in Intelex. Further, Intelex saw strong bookings for its new ESG corporate reporting solution.

EHS 收入實現高個位數增長，ISC 的 iNet 增長創紀錄，Intelex 的 SaaS 勢頭強勁。此外，Intelex 的新 ESG 企業報告解決方案獲得了強勁的預訂。

Moving to facilities and asset life cycle. We had low double-digit growth in the second quarter, driven by mid-teens SaaS growth. Gordian had strong growth and operating margin expansion in the quarter as more customers utilize their job order contracting platform to procure and manage their large infrastructure projects. Accruent is seeing sustained improvements in win rates and good growth in their streamlined portfolio, supported by FBS-led innovation and pipeline generation efforts. ServiceChannel had an acceleration in growth and profitability as planned, driven by strong SaaS bookings and resulting take rate as customers leverage the service channel network to maximize their cost savings. A large retail customer is already $2 million ahead of their $14 million cost savings goal in 2023 after taking advantage of the automation capabilities of the platform, a powerful testament to the secular drivers underpinning the FAL workflow strategy.

轉向設施和資產生命週期。在 SaaS 增長的推動下，我們第二季度實現了兩位數的低增長。隨著越來越多的客戶利用其工作訂單承包平台來採購和管理大型基礎設施項目，Gordian 在本季度實現了強勁增長和營業利潤率擴張。在 FBS 主導的創新和管道生成工作的支持下，Accruent 的勝率持續提高，精簡的產品組合也實現了良好的增長。在強勁的 SaaS 預訂和客戶利用服務渠道網絡最大限度地節省成本的推動下，ServiceChannel 的增長和盈利能力按計劃加速增長。在利用該平台的自動化功能後，一家大型零售客戶已經比 2023 年 1400 萬美元的成本節省目標提前了 200 萬美元，這有力地證明了支撐 FAL 工作流程策略的長期驅動因素。

Turning now to Slide 8. Precision Technologies continued its momentum with another strong quarter, with 8% core revenue growth and 190 basis points of adjusted operating margin expansion, reflecting volume and price benefits more than offsetting inflation in FX. Some highlights in the quarter include record second quarter revenue at Tektronix, with orders better than expectations and strong point of sale in all major regions. The team delivered mid-teens growth, which was over 20% on a 2-year stack basis in the second quarter. Tektronix is executing on robust backlog and power and digital test and measurement solutions and delivering outstanding margin -- operating margin expansion. As orders continue to normalize, we anticipate Tektronix growth will moderate to mid-single-digit levels in the second half, and we expect we will end the year with elevated backlog levels again heading into 2024.

現在轉向幻燈片 8。Precision Technologies 繼續保持強勁勢頭，季度業績強勁，核心收入增長 8%，調整後營業利潤率擴張 190 個基點，反映出數量和價格效益超過了外匯通脹的抵消。本季度的一些亮點包括泰克第二季度創紀錄的收入、訂單好於預期以及所有主要地區的強勁銷售點。該團隊實現了十幾歲左右的增長，第二季度的 2 年堆棧增長超過 20%。泰克正在執行強大的積壓訂單以及電源和數字測試與測量解決方案，並提供出色的利潤——營業利潤擴張。隨著訂單繼續正常化，我們預計下半年泰克的增長將放緩至中個位數水平，並且預計到 2024 年，我們將在年底積壓訂單水平再次上升。

Sensing Technologies came in better than expected, up slightly, driven by strong price realization across all businesses and continued broad strength at Qualitrol. Lastly, Pacific Scientific EMC reported a strong sales quarter with mid-teens growth as it benefits from strong customer demand and Kaizen activity to improve manufacturing capacity and operational execution to deliver on record backlog.

受所有業務強勁的價格實現以及 Qualitrol 持續強勁的推動，傳感技術業務的表現好於預期，小幅增長。最後，Pacific Sc​​ientific EMC 報告稱，該季度的銷售強勁，增長幅度達到中位數，這得益於強勁的客戶需求和Kaizen 活動，旨在提高製造能力和運營執行力，以交付創紀錄的積壓訂單。

Moving now to Slide 9 in Advanced Healthcare Solutions. Core revenues were up 4% in the second quarter as the industry continues its modest pace of recovery. Consistent with expectations, adjusted operating profit margins contracted by 60 basis points year-over-year. The benefits of sequential volume, price and productivity drove operating margins higher by 180 basis points versus the first quarter. China electric procedures remained at normalized levels throughout the quarter, only slightly trailing global rates, allowing for double-digit growth. Our outlook continues to assume that electric procedures remain close to pre-COVID levels in all major regions.

現在轉到高級醫療保健解決方案中的幻燈片 9。隨著行業繼續溫和復蘇，第二季度核心收入增長 4%。與預期一致，調整後營業利潤率同比下降 60 個基點。連續銷量、價格和生產率帶來的好處使營業利潤率比第一季度提高了 180 個基點。中國電力程序在整個季度保持在正常水平，僅略微落後於全球水平，實現兩位數增長。我們的前景仍然假設所有主要地區的電力程序仍接近新冠疫情前的水平。

Some highlights for the quarter include ASP/Censis had mid-single-digit core growth, driven by capital expansion at ASP and double-digit SaaS growth at Censis. ASP saw sequential growth in consumables as planned and U.S. channel transition to direct is on track, contributing to sequential price benefits, driving margins higher, a trend we will expect will continue through the rest of the year.

本季度的一些亮點包括，在 ASP 資本擴張和 Censis 兩位數 SaaS 增長的推動下，ASP/Censis 實現了中個位數核心增長。消耗品平均售價按計劃實現環比增長，美國渠道向直銷的過渡也已步入正軌，這有助於實現環比價格優勢，推高利潤率，我們預計這一趨勢將在今年剩餘時間內持續下去。

Supply chain constraints are largely resolved, yielding good growth at Fluke Health Solutions, and Provation had another great quarter with mid-teens core revenue growth, driven by Apex SaaS adoption and new logos.

供應鏈限制已基本得到解決，Fluke Health Solutions 實現了良好的增長，而在 Apex SaaS 採用和新徽標的推動下，Provation 又迎來了一個出色的季度，核心收入實現了十幾歲左右的增長。

With that, I'll pass it over to Chuck, who will provide more color on our second quarter financials and our 2023 outlook.

接下來，我將把它交給 Chuck，他將為我們第二季度的財務狀況和 2023 年的前景提供更多信息。

Thanks, Jim, and hello, everyone. I'll begin on Slide 10 with a quick recap of our second quarter revenue performance. We generated year-over-year revenue growth of 4% with core growth of 5.5%. FX was a 90 basis point headwind to growth.

謝謝吉姆，大家好。我將從幻燈片 10 開始快速回顧我們第二季度的收入表現。我們的收入同比增長 4%，核心增長 5.5%。外匯對經濟增長構成 90 個基點的阻力。

Turning to the geographies. North America revenue grew high single digits with growth in all 3 segments. Western Europe revenue was essentially flat in the quarter, following mid-teens growth the prior year. Asia revenue grew mid-single digits with over 20% growth in Japan and India and low single-digit growth in China. We saw strength in health care in China. As expected, however, growth was muted by COVID reopening tailwinds that benefited the hardware products revenue in the second quarter of 2022. Looking ahead, we continue to expect China growth to moderate in the second half as we lap outsized growth in prior years.

轉向地理。隨著所有三個細分市場的增長，北美收入實現了高個位數增長。西歐地區的收入在上一年實現十幾歲左右的增長後，本季度基本持平。亞洲收入實現中個位數增長，其中日本和印度增長超過 20%，中國增長較低個位數。我們看到了中國醫療保健領域的實力。然而，正如預期的那樣，由於新冠疫情重新開啟的順風車，增長受到抑制，這有利於2022 年第二季度的硬件產品收入。展望未來，我們繼續預計下半年中國經濟增長將放緩，因為我們將經歷前幾年的大幅增長。

Turning to Slide 11. We show operating performance highlights in the second quarter. As Jim mentioned earlier, adjusted gross margins increased 250 basis points to a record 59.5%, driven by volume, FBS initiatives and strong price realizations, which more than offset higher inflation.

轉向幻燈片 11。我們展示了第二季度的運營業績亮點。正如 Jim 之前提到的，在銷量、FBS 舉措和強勁價格實現的推動下，調整後毛利率增長了 250 個基點，達到創紀錄的 59.5%，這足以抵消通脹上升的影響。

Adjusted operating profit margins expanded 190 basis points to 26%, another Fortive record, reflecting higher gross margins and productivity initiatives that have started to gain traction in the quarter. Adjusted earnings per share increased 9% to $0.85 despite higher year-over-year interest and tax expense. Free cash flow was $300 million, which reflects approximately 100% free cash flow conversion, a testament to our working capital efficiency enabled by the Fortive businesses.

調整後的營業利潤率擴大了 190 個基點，達到 26%，這是 Fortive 的另一項記錄，反映了毛利率的提高和生產力舉措在本季度開始受到關注。儘管利息和稅費支出同比增加，但調整後每股收益仍增長 9%，達到 0.85 美元。自由現金流為 3 億美元，反映了大約 100% 的自由現金流轉換，證明了 Fortive 業務使我們的營運資本效率提高。

Turning now to the guidance on Slide 12. We are raising our previous 2023 guidance to reflect the outperformance in the second quarter. Starting with the third quarter, we expect core growth of 3.5% to 4.5%, with revenues reflecting our normal linear profile and adjusted operating profit margins are estimated to be up over 100 basis points year-over-year. Adjusted earnings per share are expected to be in the range of $0.82 to $0.85 in Q3 and reflect a 17% estimated effective tax rate. Our fourth quarter guidance assumes a seasonal uplift in all segments, with core revenue growth of 3.5% to 4.5% year-over-year and strong margin expansion, reflecting the cumulative benefits of our productivity initiatives.

現在轉向幻燈片 12 上的指引。我們正在提高之前的 2023 年指引，以反映第二季度的優異表現。從第三季度開始，我們預計核心增長率為 3.5% 至 4.5%，收入反映了我們正常的線性狀況，調整後的營業利潤率預計將同比增長超過 100 個基點。第三季度調整後每股收益預計在 0.82 美元至 0.85 美元之間，反映了 17% 的估計有效稅率。我們的第四季度指引假設所有細分市場都出現季節性增長，核心收入同比增長 3.5% 至 4.5%，利潤率強勁擴張，反映了我們生產力計劃的累積效益。

Adjusted EPS is expected to be in the range of $0.94 to $0.97, up 7% to 10%. For the full year 2023, we have raised our core revenue growth to be in the range of 5% to 6%. Adjusted operating profit is now expected to increase 10% to 11%, with margins higher in the range of 25.5% to 26%. We are increasing our adjusted diluted net EPS guidance to $3.36 to $3.42, which includes approximate $0.06 headwind from higher interest and tax expense versus the prior guidance. Free cash flow for the year is now expected to be approximately $1.26 billion. This represents conversion of 105% of adjusted net income and 21% free cash flow margin as well as over 30% growth on a 2-year stack basis.

調整後每股收益預計在 0.94 美元至 0.97 美元之間，增長 7% 至 10%。 2023 年全年，我們將核心收入增長率提高至 5% 至 6%。調整後的營業利潤目前預計將增長 10% 至 11%，利潤率將在 25.5% 至 26% 之間。我們將調整後的稀釋後淨每股收益指導提高至 3.36 美元至 3.42 美元，其中包括與先前指導相比較高的利息和稅收費用帶來的約 0.06 美元的阻力。目前預計今年的自由現金流約為 12.6 億美元。這意味著 105% 的調整後淨利潤和 21% 的自由現金流利潤率以及 2 年堆棧基礎上超過 30% 的增長。

With that, I'll pass it back to Jim to provide some closing remarks.

接下來，我將把它傳回給吉姆，以提供一些結束語。

Thanks, Chuck. I'll start to wrap up on Slide 13. At our Investor Day in May, we highlighted our progress executing our strategy over the last several years, building on our strong foundation and enduring principles that underpin our unique and compelling culture. Talk about the operating rigor and leverage of FBS growth tools to innovate and enhance leading positions across our 3 segments and 5 connected workflows contributing to outstanding fundamental financial performance.

謝謝，查克。我將開始總結幻燈片13。在5 月份的投資者日上，我們強調了過去幾年我們在執行戰略方面取得的進展，這些進展建立在我們堅實的基礎和持久的原則之上，這些原則支撐著我們獨特而引人注目的文化。談論 FBS 增長工具的運營嚴謹性和槓桿作用，以創新和增強我們在 3 個細分市場和 5 個互聯工作流程中的領先地位，從而實現出色的基本財務業績。

Since 2019, we have doubled our core growth rate and delivered more than 100 basis points of adjusted operating margin expansion per year, driven predominantly by higher gross margins. We've driven double-digit earnings -- annual earnings per share growth, cut working capital as a percent of sales nearly in half, allowing for us to run our businesses more efficiently and contributing to more than double free cash flow generation over the period. We are now generating 50% more free cash flow per dollar of revenue, which is a testament to our portfolio transformation and the power of FBS, fueling our current and future success. And with a $60 billion served market, we have substantial runway to accelerate growth organically and inorganically.

自 2019 年以來，我們的核心增長率翻了一番，調整後的營業利潤率每年增長超過 100 個基點，這主要是由於毛利率提高。我們實現了兩位數的盈利——每股年盈利增長，將營運資本佔銷售額的百分比減少了近一半，使我們能夠更有效地運營我們的業務，並在此期間為自由現金流量的產生增加一倍以上。現在，我們每美元收入產生的自由現金流增加了 50%，這證明了我們的投資組合轉型和 FBS 的力量，推動了我們當前和未來的成功。憑藉 600 億美元的服務市場，我們擁有巨大的空間來加速有機和無機增長。

Wrapping up on Slide 14, the combination of portfolio work we have done, the rigor of the Fortive Business System and the development of leadership capability around the world is driving better-than-expected growth and operating performance in 2023 despite a continued evolving macro environment. As a result, we've raised our outlook for the year. And as we look ahead to 2024 and beyond, we are confident in our ability to accelerate our progress.

總結幻燈片 14，儘管宏觀環境持續變化，我們所做的投資組合工作、Fortive 業務體系的嚴格性以及全球領導能力的發展正在推動 2023 年的增長和運營業績好於預期。因此，我們上調了今年的展望。展望 2024 年及以後，我們對加速進步的能力充滿信心。

With a high-quality portfolio of desirable brands, segment strategies favorably aligned to sustainable secular trends, industry-leading margins and free cash flow and best-in-class execution, Fortive is poised to deliver exceptional earnings and free cash flow compounding in the years to come. Our attractive funnel of bolt-on and adjacent M&A opportunities across our 3 segments and 5 connected workflows drives upside, making Fortive a more durable, high-growth cash flow compounder and a premier company delivering exceptional value to shareholders.

憑藉高質量的理想品牌組合、符合可持續長期趨勢的細分戰略、行業領先的利潤率和自由現金流以及一流的執行力，Fortive 有望在未來幾年實現卓越的盈利和自由現金流複合來。我們跨越3 個細分市場和5 個互聯工作流程的有吸引力的補充和相鄰併購機會推動了上行，使Fortive 成為更持久、高增長的現金流複合公司和一家為股東提供卓越價值的一流公司。

With that, I'll turn it back to Elena.

這樣，我會把它轉回給埃琳娜。

Thanks, Jim. That concludes our formal comments. Rob, we are now ready to take questions.

謝謝，吉姆。我們的正式評論到此結束。羅布，我們現在準備好回答問題。

(Operator Instructions) Your first question comes from the line of Jeff Sprague from Vertical Research.

（操作員說明）您的第一個問題來自 Vertical Research 的 Jeff Sprague。

Can we just drill a little deeper into Tek? Just want to clarify what you said about orders. So orders decel but were stronger than expected. And I guess you're talking about backlog being pretty healthy. So are you actually running at a book-to-bill above 1 in Tek?

我們可以更深入地了解 Tek 嗎？只是想澄清一下您所說的有關訂單的內容。因此訂單減少，但強於預期。我猜你說的是積壓工作相當健康。那麼，您在 Tek 中的訂單出貨比實際上是否高於 1？

Jeff, it's Jim. A couple of things. One, I think it was better than expected. As we mentioned in the prepared remarks, we've seen some slowing in some places, obviously, or maybe more moderating, for sure, places like China as an example, but we're seeing some acceleration in investments from places like aerospace and defense customers. So the book-to-bill -- I think our orders were down about 10% in the second quarter. But to put it in some context, it's up -- those orders are still up 30% from 3 years ago. So we're still seeing good demand here. And the backlog is actually above our expectations. We've talked about that excess backlog, and that backlog today is above expectations to what we thought going into the year. So anyway, I'll stop there and if you have any follow-up.

傑夫，是吉姆。有幾件事。第一，我認為這比預期要好。正如我們在準備好的發言中提到的，我們看到某些地方的投資明顯放緩，或者肯定會更加緩和，例如中國等地方，但我們看到航空航天和國防等地方的投資有所加速顧客。因此，我認為第二季度我們的訂單量下降了約 10%。但從某種角度來看，訂單數量仍然比 3 年前增長了 30%。所以我們仍然看到這裡有良好的需求。而且積壓的訂單實際上超出了我們的預期。我們已經討論過積壓過多的問題，今天的積壓超出了我們對今年的預期。不管怎樣，我就到此為止，如果你有任何後續行動的話。

No, I'll just switch gears to AHS then. On the channel distribution shift that sounds like -- I don't know if you viewed it as a hump, but maybe kind of the risk of any kind of leakage during the transition would have happened in this quarter. Is that fair? And then you've got kind of a bit clearer sailing on how things play out over the balance of the year.

不，那我就切換到 AHS。關於渠道分銷的轉變，聽起來像是 - 我不知道您是否將其視為一個駝峰，但也許在本季度會發生過渡期間發生任何洩漏的風險。這公平嗎？然後你就會對今年餘下的時間裡事情的發展情況有了更清晰的了解。

Yes. We're really pleased with the performance of ASP in the quarter. As we said, we had really strong capital placements, which bodes well for the rest of the year and obviously into the future given the consumables. Our project, what we call [Elevate] is on track, and it certainly was a headwind in the second quarter, but nothing that we didn't plan for. So I think when you look at it mid-single-digit growth, even better than that ex Russia and our exit out of Russia. So really a strong performance from a growth perspective in the quarter, and we think really as we kind of play out the rest of the year, we're going to see continued performance there just given the work we've done and given that headwind from Elevate really -- there's a little bit in the third, and then it really goes away completely in the fourth.

是的。我們對本季度 ASP 的表現非常滿意。正如我們所說，我們的資本配置非常強勁，這對今年剩餘時間來說是個好兆頭，考慮到消耗品，顯然對未來也是如此。我們的項目，我們稱之為“Elevate”，正在步入正軌，這在第二季度確實是一個逆風，但沒有什麼是我們沒有計劃的。所以我認為，當你看到中等個位數的增長時，甚至比前俄羅斯和我們退出俄羅斯的增長還要好。因此，從本季度增長的角度來看，這確實是一個強勁的表現，而且我們認為，隨著我們在今年剩餘時間裡的表現，考慮到我們所做的工作和逆風，我們將看到持續的表現來自“提升”真的——第三個中有一點，然後第四個就完全消失了。

Your next question comes from the line of Steve Tusa from JPMorgan.

您的下一個問題來自摩根大通的史蒂夫·圖薩（Steve Tusa）。

Just wanted to follow up on the AHS question. It looks like the margin was tweaked lower just adding up the quarters. I think like maybe 50 basis points below that 24%. You had talked about it in your Investor Day. Maybe just a little bit of a more shallow recovery in the second half, but still ending strong in the fourth quarter. Just curious, as we kind of look out to next year, on the way to that 30% margin, I just wonder obviously reaffirm that. And do you like step up to more of a linear move from what you thought this year would be and kind of capture that? Next year in the margin? Or are we just kind of like a little bit of a shallower inflection on the way to that, that 30%? I'm just trying to figure out if '24 is kind of like a more linear year considering '23 is a little bit below expectations.

只是想跟進 AHS 問題。看起來，僅僅將季度加起來，利潤率就被調整得更低了。我認為可能比 24% 低 50 個基點。您在投資者日討論過這個問題。也許只是下半場的複蘇稍顯緩慢，但第四季度的表現仍然強勁。只是好奇，當我們期待明年達到 30% 的利潤率時，我只是想清楚地重申這一點。你是否喜歡從你今年的想法開始採取更多的線性行動並抓住這一點？明年的利潤率？或者我們只是在實現 30% 的過程中稍微有點淺薄的變化？我只是想弄清楚，考慮到 23 年的表現略低於預期，24 年是否是一個更線性的一年。

Yes, Steve, this is Chuck. I think the change this year in terms of -- on the guidance is it's Invetech being a little bit lower than we expected in Q2. As far as moving forward, we note the sequential improvements that you talk about here and then that's with -- as COVID comes off and our self-help with some of the productivity initiatives and also seeing more price.

是的，史蒂夫，這是查克。我認為今年的變化是——在指導方面，Invetech 的業績略低於我們第二季度的預期。就前進而言，我們注意到您在這裡談論的連續改進，然後就是隨著新冠病毒的爆發以及我們對一些生產力計劃的自助，並且也看到了更多的價格。

As you look into next year -- well, we're not calling next year, but we expect to still have those tailwinds around COVID and pricing. And I think sequentially, it'd be above the margin expansion that we normally would expect. We talked about mid-single digit and 75 basis points, it will be elevated from that, but we're not going to get to 30% next year. But we're going to continue to make progress and have good margin expansion in -- through next year, and you'll see it as the electric procedures recover. We will expect that to continue to be a tailwind for quite a while.

當你展望明年時——嗯，我們不會打電話給明年，但我們預計在新冠疫情和定價方面仍然會有這些順風車。我認為依次來看，它會高於我們通常預期的利潤率擴張。我們談到了中個位數和 75 個基點，之後會有所提高，但明年我們不會達到 30%。但我們將繼續取得進展，並在明年之前實現良好的利潤率擴張，隨著電力系統的恢復，您將看到這一點。我們預計這將在相當長一段時間內繼續成為推動因素。

Yes. I guess my question was more along the lines of like is next year -- should we view next year as kind of a plot in a linear -- from a linear perspective on the way to that 30%? Or is it -- does what happen this year kind of make that target more back-end loaded to maybe '25, '26, '27 type time period. That was my question. Is '24 more of a nice recovery year early on? Or is it more back-end loaded to that 30%?

是的。我想我的問題更像是明年——我們是否應該將明年視為一種線性情節——從線性角度來看通往 30% 的道路？或者是 - 今年發生的事情是否會讓該目標更多地後端加載到“25”、“26”、“27”類型的時間段。這就是我的問題。 24 年初是一個更好的複蘇年嗎？還是後端負載增加到了 30%？

I don't think the back-end loaded, [March], it's not back-end loaded. I think you're going to see good progress towards that and because I think we're going to see stronger top line.

我不認為後端已加載，[三月]，它沒有後端加載。我認為你會看到在這方面取得的良好進展，因為我認為我們將看到更強勁的營收。

I would just add, I mean, when you look at the trajectory now, we already have -- when you look at Provation, when you look at Fluke Health, when you look at the Censis part of our sterilization business, those are already plus 30% operating profit businesses. So the growth trajectory of ASP is really what we're talking about. And when you think about it, I mean the fact that we -- what we did in the quarter relative to placements going to accelerate consumables in '24, consumables coming back. And I think our launch pad here, I don't want to get too ahead of our skis, but we took a good step forward in the second quarter relative to margins for health.

我只想補充一點，我的意思是，當你看看現在的發展軌跡時，我們已經有了——當你看看Provation 時，當你看看Fluke Health 時，當你看看我們滅菌業務的Censis 部分時，這些已經是加值了。營業利潤30%的企業。所以ASP的增長軌跡確實是我們正在討論的。當你想到這一點時，我的意思是我們在本季度所做的相對於安置的工作將加速 24 年消耗品的回歸。我認為我們的發射台在這裡，我不想太領先我們的滑雪板，但我們在第二季度相對於健康利潤率向前邁出了一大步。

Yes, yes, totally. And then just one last one. Where is the $350 million today? You had $350 million of excess. You say it's going to be $200 million or something at the end of the year. Where is the -- where is that number today at the end of the 2Q?

是的，是的，完全如此。然後只有最後一張。今天的3.5億美元在哪裡？你有 3.5 億美元的超額資金。你說今年年底會達到 2 億美元左右。今天第二季度末的數字在哪裡？

So about -- we still have about $330 million of excess at this...

那麼，我們目前還有大約 3.3 億美元的超額資金……

All right. I'll round that up to $350 million.

好的。我將其四捨五入為 3.5 億美元。

Your next question comes from the line of Scott Davis from Melius Research.

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

The IOS margins up 400 basis points on pretty limited volume is impressive, of course. But what -- is that sustainable? I mean it sounds like it's sustainable given your guidance and such, but will -- is there any risk that some of that price cost spread that you're capturing right now perhaps goes the other direction on you in the next 12 months or so?

當然，在數量相當有限的情況下，IOS 利潤率上漲了 400 個基點，令人印象深刻。但這是可持續的嗎？我的意思是，考慮到您的指導等，聽起來它是可持續的，但是，您現在捕獲的部分價格成本價差可能會在未來12 個月左右的時間內向另一個方向發展，是否存在任何風險？

No, I think there's a couple of things going on. As you said, I think we had really -- I think it speaks to the power of what we've been trying to do in IOS as we continue to accelerate the, obviously, acquisitions that we made several years ago, FAL did exceptionally well, or EHS. So you're seeing the margin improvements from those businesses. Fluke, while a little slower in the quarter, still very strong in the year and it's obviously been a perennial good margin improver. So I think you probably won't see 400 basis points every quarter. That's probably a little strong. But I think it just speaks to the fact that the work we've been doing over the last few years to really get the entire segment up. And I think the second quarter was a good view of what the potential is in the entire segment.

不，我認為有幾件事正在發生。正如你所說，我認為我們確實 - 我認為這說明了我們一直在 IOS 中努力做的事情的力量，因為我們繼續加速，顯然，我們幾年前進行的收購，FAL 做得非常好，或EHS 。所以你會看到這些企業的利潤率有所提高。福祿克雖然在本季度表現稍慢，但今年仍然非常強勁，而且它顯然是長期良好的利潤改善因素。所以我認為你可能不會每個季度看到 400 個基點。這大概有點強吧但我認為這只是說明了一個事實，即我們在過去幾年中一直在努力真正提升整個細分市場。我認為第二季度很好地展示了整個細分市場的潛力。

Okay. That makes sense, Jim. Now I want to just follow up on Steve a little bit here on this one. But the comment on the slide, I just lost the slide, but that said pockets of industrial slowing. Can you parse out what part of that might be inventory destock versus kind of real sell-through demand that could be leaking a bit?

好的。這是有道理的，吉姆。現在我想在這個問題上稍微跟進一下史蒂夫。但關於幻燈片的評論，我剛剛失去了幻燈片，但這表明工業放緩。您能否分析出其中哪一部分可能是庫存去庫存，而不是可能略有洩漏的實際銷售需求？

Yes. I think what we -- a couple of things maybe. In PT, as we think about the entire segment, the book-to-bill is about 1.0 for the year. That's better than we thought. So year-to-date, we thought we'd be about 0.9, we're at 1.0. So I think what we've seen is better orders in the year than we anticipated, obviously, on stronger growth on the revenue side.

是的。我想我們——也許有幾件事。在 PT 中，當我們考慮整個細分市場時，全年的訂單出貨比約為 1.0。這比我們想像的要好。今年迄今為止，我們原以為我們會達到 0.9 左右，但我們現在是 1.0。因此，我認為我們今年看到的訂單比我們預期的要好，顯然是因為收入方面的強勁增長。

What we have seen in Sensing, in particular, is parts of Sensing are doing really well. Qualitrol is executing very well. We think Anderson-Negele is going to be good through the year, parts of the rest of Sensing. But we are seeing some slowing in industrial businesses, particularly in Europe with some automation customers.

我們在傳感領域尤其看到的是，傳感領域的某些部分做得非常好。 Qualitrol 執行得非常好。我們認為安德森-內格爾今年將會表現出色，這是傳感領域其他部分的一部分。但我們看到工業企業的發展有所放緩，特別是在擁有一些自動化客戶的歐洲。

We're seeing some slowing in places like HVAC with some OEM customers. Mostly on the OEM side in Sensing is what that comment really has to do and also in some of the semiconductor business -- parts of the business in Sensing. So that's the slowing. And we would anticipate -- this is kind of -- nothing different than we originally thought would happen. But that's kind of what we're seeing right now and what we anticipate will continue through the sort of second half of the year.

我們發現一些 OEM 客戶在暖通空調等領域的發展速度有所放緩。主要是在傳感領域的 OEM 方面，這是該評論真正要做的事情，而且在一些半導體業務中——傳感領域的部分業務。這就是放緩的原因。我們預計——這與我們最初想像的不會有什麼不同。但這就是我們現在所看到的情況，我們預計這種情況將持續到今年下半年。

Your next question comes from the line of Deane Dray from RBC Capital Markets.

您的下一個問題來自加拿大皇家銀行資本市場 (RBC Capital Markets) 的迪恩·德雷 (Deane Dray)。

Wanted to circle back on this concept of the excess backlog, and I know you just sized it. But just be interested, I know there's the implied earnings visibility that you get from elevated backlog, but can you share with us some thoughts about the flexibility within the backlog?

我想回顧一下過剩積壓的概念，我知道你剛剛確定了它的大小。但只要感興趣，我知道您可以從增加的積壓中獲得隱含的收益可見性，但是您能與我們分享一些關於積壓中靈活性的想法嗎？

Like let's say, something happens, whether it's supply chain or customer readiness, how much flexibility do you have to immediately just draw down next in line on the backlog and have that kind of seamlessly flow through to the P&L? Because when we hear excess backlog, we immediately think there's flexibility, but sometimes it may not be as flexible based upon customer timing and so forth. But any color there would be helpful.

比如說，發生了一些事情，無論是供應鏈還是客戶準備情況，您需要多大的靈活性才能立即提取積壓訂單中的下一個訂單，並無縫地流入損益表？因為當我們聽到過多的積壓時，我們立即認為存在靈活性，但有時根據客戶時間等因素，它可能不那麼靈活。但任何顏色都會有幫助。

Yes. A couple of things, Deane. So as Chuck said, we've got about -- the excess backlog is higher than we anticipated at the start of the year. It's about $330 million. We'll probably get that down in the $200 million range by the end of the year. And it's -- I would call it, it kind of depends. But if we were to think about half of that excess is at Tektronix, that's relatively flexible and has been -- I wouldn't say within a month, it's necessarily flexible because it does have some supply chain aspects to it. But it's, in the sort of 90 days kind of timeframe, pretty flexible.

是的。有幾件事，迪恩。正如查克所說，我們已經了解到——過剩的積壓量高於我們年初的預期。大約是3.3億美元。到今年年底，我們可能會將其降低到 2 億美元的範圍內。我會稱之為，這取決於情況。但如果我們考慮到多餘的一半是在泰克，那是相對靈活的，並且一直 - 我不會說在一個月內，它必然是靈活的，因為它確實有一些供應鏈方面的問題。但在 90 天的時間範圍內，它非常靈活。

Sensing a little bit less, depends on some of the OEM customers; so -- and in Fluke, pretty flexible. So I would say that's kind of where it stands. And that's why we think it is a good insurance policy relative to slowing, and that's what you saw in the second quarter, right? You saw us be a little -- get a little bit more backlog out. EMC was a little stronger as well than we anticipated. And so those are places where we think we can use the backlog in a way that sort of prevents any near-term challenges.

傳感少一點，取決於一些OEM客戶；所以——在福祿克，非常靈活。所以我想說這就是現狀。這就是為什麼我們認為相對於經濟放緩來說這是一個很好的保險政策，這就是你在第二季度看到的，對嗎？你看到我們稍微多了一點積壓的訂單。 EMC 也比我們預期的要強一些。因此，我們認為我們可以在這些地方利用積壓的工作，以防止任何近期挑戰。

And also maybe just to add on to the Scott question because I didn't answer the destocking piece. We're really not seeing a lot of destocking or debooking, very little, pretty much around our normal numbers, which is pretty small. We see some rescheduling of backlog on the OEM side in Sensing. That's why Sensing is a little slower in the second half than maybe the rest of the portfolio, but we really haven't seen destocking. We haven't asked -- distributors really not asking to cancel orders or anything like that. That's been pretty minimal to the point. That's why we think the backlog remains flexible.

也許只是為了補充斯科特的問題，因為我沒有回答去庫存的問題。我們確實沒有看到大量的去庫存或取消預訂，非常少，幾乎與我們的正常數字相當，這個數字非常小。我們看到 OEM 方面對傳感領域的積壓工作進行了一些重新安排。這就是為什麼下半年 Sensing 的表現可能比投資組合的其他部分慢一些，但我們確實沒有看到庫存減少。我們沒有要求——分銷商真的沒有要求取消訂單或類似的事情。就這一點而言，這已經是相當小的了。這就是為什麼我們認為積壓工作仍然靈活。

All right. On behalf of Scott, I'll thank you for the destocking answer. And then my follow-up, just any color on the excess of 20% in India and Japan. Is that a comp issue? Is there anything specific on the business side you call out?

好的。我謹代表斯科特感謝您對去庫存的回答。然後我的後續行動，就是印度和日本超過 20% 的任何顏色。這是一個補償問題嗎？您提到的業務方面有什麼具體的內容嗎？

Yes, it's a little bit of a comp thing on the Japan side. We'll still see, I think, high single-digit growth in Japan in the remaining part of the year, but certainly a little bit of a comp side in Japan. India, no. We've seen good growth in India. We're seeing -- I think we're getting some benefit of some of the reshoring and some of the investments that are going -- the sort of foreign direct investments that have been going into India here over the last 12 months; we benefit from that.

是的，這對日本來說有點比較。我認為，在今年剩餘時間內，我們仍將看到日本實現高個位數增長，但日本的比較方面肯定會有所改善。印度，沒有。我們在印度看到了良好的增長。我們看到——我認為我們正在從一些回流和一些正在進行的投資中獲得一些好處——過去12個月里外國直接投資一直進入印度；我們從中受益。

Our big companies like Fluke and Tek and ASP are seeing the benefits of that, but even more broadly in some of the rest of the portfolio. So we think India is going to be probably 20% the rest of the year. Those are smaller regions, and some, like Western Europe, so they can move a little bit more on a big chunk of business. But we like the demand dynamics right now in India, in particular.

我們的大公司，如 Fluke、Tek 和 ASP，都看到了這一點的好處，而且更廣泛地體現在其他一些產品組合中。因此，我們認為印度在今年剩下的時間裡可能會達到 20%。這些地區規模較小，有些地區（例如西歐）因此可以在大塊業務上多做一些工作。但我們尤其喜歡印度目前的需求動態。

Your next question comes from the line of Andrew Obin from Bank of America.

您的下一個問題來自美國銀行的安德魯·奧賓（Andrew Obin）。

I was going to ask kind of AI question, but I was made fun of. So I'm going to ask something else. I'm going to keep beating down this dead horse with inventories. In the revenue breakout, and maybe this is not the best way of looking at this, but I think revenue through distribution was down 13% year-over-year this quarter. So how do you think just inventory levels among your distributors? Because I think our data shows that actually people continue to build inventory in the channel. And I know you've sort of talked about it quite a bit.

我本來想問一些人工智能問題，但我被嘲笑了。所以我要問別的事情。我將繼續用庫存打敗這匹死馬。在收入突破中，也許這不是看待這個問題的最佳方式，但我認為本季度通過分銷獲得的收入同比下降了 13%。那麼您認為經銷商的庫存水平如何？因為我認為我們的數據表明實際上人們繼續在渠道中建立庫存。我知道你已經談論過很多次了。

I always think of demand -- I always think of inventory in the channel as a function of demand. And so as demand moderates a little bit around just the big numbers we've had over the last couple of years, there are pockets of inventory where we might see some increased inventory.

我總是考慮需求——我總是將渠道中的庫存視為需求的函數。因此，隨著需求在過去幾年的大量數據附近略有放緩，我們可能會看到一些庫存增加。

But as I said in the previous couple of questions, we don't see any of that in a major way. We do get, particularly in the U.S. and Europe around Fluke and Tek, we get pretty good visibility to the inventories. And so I think the places that -- we don't -- obviously those channel numbers that are in the Q and the filing represent also channel inventory relative to what we see in ASP, what we see in Sensing. So it's a broader view of channels, and in many cases, international partners.

但正如我在前幾個問題中所說，我們並沒有在很大程度上看到這一點。我們確實得到了，特別是在美國和歐洲的福祿克和泰克周圍，我們對庫存有很好的了解。因此，我認為，顯然，Q 和文件中的那些渠道數字也代表了與我們在 ASP 中看到的、我們在傳感中看到的渠道庫存相關的地方——我們不這麼認為。因此，這是對渠道的更廣泛的看法，在許多情況下是對國際合作夥伴的看法。

So I think where it really matters relative to how we think about demand creation, we see modest -- we're still seeing strong point-of-sale at Tek. And so that's really fulfilling the backlog, and customers are really hanging around for those orders and they're getting them. And so we're still seeing strong POS. At Fluke, it's a little bit more mixed, but it's still -- it's really more of a moderation than it is anything.

因此，我認為，相對於我們如何看待需求創造而言，真正重要的地方是，我們認為，我們仍然看到 Tek 的強勁銷售點。因此，這確實滿足了積壓訂單，客戶確實在等待這些訂單，並且他們已經收到了。因此，我們仍然看到強勁的 POS。在福祿克，情況有點複雜，但仍然是——它實際上更多的是一種節制。

We still saw mid-single-digit POS growth at Fluke in the second quarter in the United States. We saw even better growth in China, and even Europe was pretty good for POS. So as those things moderate, there'll be some verticals that probably will get a little bit of channel inventory. But we really have a strong process for understanding that and putting out demand creation vehicles for that.

我們在美國第二季度仍看到福祿克 POS 實現中個位數增長。我們看到中國有更好的增長，甚至歐洲的 POS 也相當不錯。因此，隨著這些事情的緩和，一些垂直行業可能會獲得一些渠道庫存。但我們確實有一個強大的流程來理解這一點並為此推出需求創造工具。

I would say the other thing is we have a number of -- we probably have -- we have a very good second half for innovation and product launches. And so I think that's also an opportunity for us to continue to really help the demand creation side where we might have some excess inventory.

我想說的另一件事是，我們有很多——我們可能有——我們下半年的創新和產品發布非常好。因此，我認為這也是我們繼續真正幫助創造需求的機會，因為我們可能有一些過剩的庫存。

No, I appreciate this. And just a question on Fluke and Tek. I remember being in China in 2018 when sort of Chinese CapEx hit a wall and that these businesses were hit. In reverse with all these mega projects in the U.S., right, how much visibility do you have related to specifically Fluke and Tek to these projects? When would you expect to get orders? And does it structurally change the growth rate for these businesses over the next couple of years?

不，我很欣賞這一點。還有一個關於 Fluke 和 Tek 的問題。我記得 2018 年在中國，當時中國的資本支出遇到了困難，這些業務也受到了打擊。與美國所有這些大型項目相反，對吧，您對福祿克和泰克對這些項目有多少了解？您預計什麼時候收到訂單？它是否會從結構上改變這些企業未來幾年的增長率？

Well, I think on the Tek side, we are starting to get visibility. In fact, even in some semiconductor businesses where the business has obviously slowed a little bit, we have already had conversations with customers along a number of product lines about 2024 investments. And I think what's been good about Tek is that they've taken that part of -- they've taken advantage of some other opportunities in power and in the aerospace and defense customers to continue to offset some of that. So that's a good story and will hopefully be a good story in '24, although still too early to tell.

嗯，我認為在 Tek 方面，我們已經開始獲得知名度。事實上，即使在一些業務明顯放緩的半導體業務中，我們也已經與多個產品線的客戶就2024年的投資進行了對話。我認為泰克的優點在於他們已經利用了電力、航空航天和國防客戶領域的其他一些機會來繼續抵消其中的一些影響。所以這是一個好故事，並且有望在 24 年成為一個好故事，儘管現在說還為時過早。

On the Fluke side, it's really going to be less around when those facilities are getting built as much as it is going to be keeping those facilities up and running. So we're probably a few years out from some of that. When a manufacturing plant gets built, obviously, there's some advantage to what we do through the build cycle, electrical contractors buying more Fluke equipment to build some of these facilities.

在福祿克方面，當這些設施建成後，它確實會減少，而會保持這些設施的正常運行。所以我們可能還需要幾年的時間才能實現這一點。顯然，當製造工廠建成時，我們在整個建設週期中所做的事情有一些優勢，電氣承包商購買更多的福祿克設備來建造其中一些設施。

But the real opportunity is going to be once those facilities are up and running and the maintenance staff in those facilities are building out those opportunities. I think we're probably a little off from that opportunity. But I think, until then, we're seeing good -- the secular drivers that we've got at Fluke in power and solar and some of the sustainable investments that we talked about in the prepared remarks are -- remain a good opportunity for us.

但真正的機會將是一旦這些設施投入運行並且這些設施的維護人員正在創造這些機會。我認為我們距離這個機會可能還有點距離。但我認為，在那之前，我們看到的都是好的——福祿克在電力和太陽能領域的長期驅動力以及我們在準備好的發言中談到的一些可持續投資——仍然是一個很好的機會我們。

Your next question comes from the line of Josh Pokrzywinski from Morgan Stanley.

您的下一個問題來自摩根士丹利的 Josh Pokrzywinski。

Just wanted to follow up on FAL and some of the, I guess, changes going on in the construction markets, maybe a little bit of mix divergence, more manufacturing, a little less in some of these commercial or warehouse verticals. Anything that you guys are seeing across customer base that gives you any kind of cyclical impulse, whether this business is countercyclical, more pro-cyclical? Like I guess this is maybe one of the first real construction cycles since you guys have owned some of these assets. Like anything that you would just point out cyclically that you guys are noticing? It seems like your business is doing well, but anything would be helpful.

只是想跟進 FAL 以及建築市場中正在發生的一些變化，可能是一些混合差異，更多的製造業，一些商業或倉庫垂直領域的變化。你們在客戶群中看到的任何東西都會給您帶來某種週期性衝動，這項業務是反週期的還是更順週期的？就像我想這可能是自從你們擁有其中一些資產以來第一個真正的建設週期之一。就像你們會周期性地指出你們注意到的任何事情一樣？看起來你的生意做得很好，但任何事情都會有幫助。

Yes. I don't -- we don't have a lot of exposure to commercial buildings really in the sense of traditional in FAL. So I think maybe we have commercial customers or maybe 5% of sales or something like that. So it's not a big driver. What we are seeing is, quite frankly, on the positive side, at Gordian is a lot of deferred maintenance. And what Gordian Solutions and, quite frankly, what we see in FAL is take advantage of deferred maintenance and seeing the opportunity for deferred maintenance, improving project time line. So that's really been a big growth driver for FAL, and I think it really played out in the quarter. And we think it plays out certainly in the second half.

是的。我不知道——我們對 FAL 傳統意義上的商業建築沒有太多接觸。所以我認為也許我們有商業客戶，或者可能佔銷售額的 5% 或類似的東西。所以這不是一個大的驅動力。坦率地說，我們看到的是積極的一面，Gordian 的維護工作被推遲了很多。 Gordian Solutions 以及坦率地說，我們在 FAL 中看到的是利用延期維護並看到延期維護的機會，從而改善項目時間線。因此，這確實是 FAL 的一大增長動力，我認為它在本季度確實發揮了作用。我們認為這肯定會在下半場發揮作用。

So I think that leads to some of the infrastructure improvements that not only is going on in state and local, but also in commercial, just more broadly. What we're seeing from customers really in FAL also is the fact that people want to understand the capital in this time of return to work and how are my real estate assets working, particularly with things like retail customers. They really want to understand their investments, and we really do -- our solutions are really oriented towards understanding that, how to bring facilities costs down.

因此，我認為這會帶來一些基礎設施的改進，這些改進不僅在州和地方進行，而且在更廣泛的商業領域也在進行。我們從 FAL 客戶那裡真正看到的是，人們希望了解在重返工作崗位期間的資本以及我的房地產資產如何運作，尤其是零售客戶等。他們確實想了解他們的投資，我們也確實如此——我們的解決方案確實旨在了解如何降低設施成本。

So really, in some respects, the reassessment that people are doing around their commercial infrastructure, to some extent, is a growth driver for us and that we sell software that really helps them bring that together and really helps them understand their expense, what they're spending and where they're spending it, and how they might take opportunities to save money. We talked about in the prepared remarks about a customer that is ahead of schedule on a $14 million cost savings because of our solutions. So quite frankly, I think a number of the sort of noise that's in the commercial real estate market that I think your question is really oriented at, in many respects, is, to some extent, a driver for us because of the solutions we have.

因此，實際上，在某些方面，人們圍繞商業基礎設施進行的重新評估在某種程度上是我們的增長動力，我們銷售的軟件確實可以幫助他們將這些基礎設施整合在一起，並真正幫助他們了解他們的費用，他們的收入他們正在花錢，花在哪裡，以及他們如何利用機會省錢。我們在準備好的評論中談到，一位客戶由於我們的解決方案而提前節省了 1400 萬美元的成本。坦白說，我認為商業房地產市場中的一些噪音，我認為你的問題真正針對的，在很多方面，在某種程度上，是我們的驅動因素，因為我們擁有解決方案。

Got it. Makes sense. It seems what the numbers say as well. And then maybe just shifting gears. We've seen a few folks thus far this earnings season have maybe a bit more of a reaction from customers from lead times normalizing, so not necessarily a destocking or a change in point in sale -- point of sale. But are your lead times across some of the hardware businesses improving more materially here in 2Q? And is there sort of a customer impulse reaction to that?

知道了。說得通。數字似乎也說明了這一點。然後也許只是換檔。到目前為止，我們已經看到一些人在本財報季節可能對交貨時間正常化的客戶做出了更多的反應，因此不一定是去庫存或銷售點的變化。但是，第二季度某些硬件業務的交貨時間是否有更實質性的改善？客戶對此是否有某種衝動反應？

Yes. I think where we see a little bit of that is at Tektronix where our lead times have come down and it does create a little bit of a pause. That was embedded in our guide. That's why we thought orders would be the way they were. So yes, to some extent, we're seeing that. As lead times moderate and you don't need to order something 18, 20 weeks in advance, you can now order at 6 to 8 weeks in advance, there is some moderation. But that's really what's been embedded in our guide from the first places.

是的。我認為我們在泰克看到了一些這樣的情況，我們的交貨時間已經縮短，這確實造成了一些停頓。這已嵌入我們的指南中。這就是為什麼我們認為訂單應該是這樣的。所以，是的，在某種程度上，我們看到了這一點。由於交貨時間適中，您不需要提前 18、20 週訂購，現在可以提前 6 至 8 週訂購，有一定的節制。但這確實是我們指南中從一開始就包含的內容。

We've made some assumptions around that. And by and large, that's come into play the way we thought. At Fluke, a little bit less so because our lead times have been always pretty good. So I think to the extent we're seeing any of that, it's really at Tektronix. And as I said, we've embedded that. As we give you sort of the book-to-bill dynamics and we give you some of the order growth rate, it's really embedded in those kinds of numbers.

我們對此做了一些假設。總的來說，這就是我們所想的那樣。在福祿克，情況稍差一些，因為我們的交貨時間一直都非常好。因此，我認為就我們所看到的這些而言，這確實是在泰克。正如我所說，我們已經將其嵌入其中。當我們向您提供訂單到賬單動態以及一些訂單增長率時，它確實嵌入在這些數字中。

Your next question comes from the line of Julian Mitchell from Barclays.

你的下一個問題來自巴克萊銀行的朱利安·米切爾。

Maybe just wanted to circle back to AHS as people seem very focused on that one given the history and so forth. So if I look at the second half, it looks like you're assuming sort of $30 million, $40 million of profit step-up, I think, half-on-half in AHS and maybe sort of $50 million or so step-up from the top line there. And obviously, last year, we had a more stable half-on-half performance. So is the delta on the top line this year, a lot of that is the elective procedures element? And then when we look at the profit step-up with that, is it sort of just normal leverage plus some of that distribution channel shift and maybe some cost savings? Any sort of color as to that half-on-half move.

也許只是想回到 AHS，因為考慮到歷史等等，人們似乎非常關注這一點。因此，如果我看一下下半年，你似乎假設利潤增加了 3000 萬美元、4000 萬美元，我認為，AHS 的利潤增加了一半，也許增加了 5000 萬美元左右。從頂行那裡。顯然，去年我們的半比半表現更加穩定。那麼，今年的增量是否位於頂線，其中很多是選擇性程序元素？然後，當我們考慮由此帶來的利潤增長時，這是否只是正常的槓桿加上一些分銷渠道的轉變以及可能的一些成本節省？任何關於半對半動作的顏色。

Hi, Julian, this is Chuck. A couple of things going on there. Yes, I think you've got the numbers roughly right in terms of the first half, second half step-up, things going on in the second half. Basically, normal seasonality takes into account a lot of that, especially in the fourth quarter. But also coming out of Q1 in the first half, China was obviously really low with COVID and the electric procedures there. That was -- that made Q1 lower.

嗨，朱利安，我是查克。那裡發生了一些事情。是的，我認為從上半場、下半場升級以及下半場發生的事情來看，你的數字大致正確。基本上，正常的季節性因素考慮了很多因素，尤其是在第四季度。但從上半年第一季度來看，中國的新冠疫情和電力程序顯然非常低。這使得第一季度下降。

But [Project Elevate], the dealer shift is going to give us more revenue in Q4 as we -- when we -- as we work through that, and also more profit. And then we're getting more price in as we go through the year. So I think those are 3 things that really help. And then the self-help that we put in, the productivity things that we announced earlier in the year are also helping us. Our incrementals going from first half to second half on that step-up is 65%. That's all the things I mentioned and including seeing more consumables into Tek now. Let me stop there and see if I covered the bases here.

但是[Project Elevate]，經銷商的轉變將為我們在第四季度帶來更多收入，當我們解決這個問題時，也會帶來更多利潤。然後隨著一年的過去，我們的價格會更高。所以我認為這三件事確實有幫助。然後我們投入的自助，我們今年早些時候宣布的生產力方面的事情也對我們有所幫助。從上半年到下半年，我們的增量為 65%。這就是我提到的所有內容，包括現在 Tek 中看到更多消耗品。讓我停在這裡，看看我是否已經覆蓋了這裡的基礎。

That's very clear, Chuck. And then maybe switching tack. I don't think capital deployment has come up much on the call yet. I think the buyback did sort of get going again in the second quarter after a quiet 6 months or so. And clearly, on M&A, it's been quiet for 18 months given the -- partly given the tough M&A backdrop. But I think we get lots of questions around whether there's been any change in view fundamentally about M&A or some of the types of deals. And then also, is there more of an effort now to balance M&A with buybacks in terms of cash usage? So just any sort of thoughts on that given that buyback spend in Q2.

這很清楚，查克。然後也許會改變策略。我認為資本部署尚未在電話會議上提及太多。我認為，在經歷了大約 6 個月的平靜之後，回購確實在第二季度再次開始。顯然，在併購方面，18 個月以來一直處於平靜狀態，部分原因是艱難的併購背景。但我認為我們有很多關於併購或某些類型交易的觀點是否發生根本性變化的問題。另外，現在是否會在現金使用方面做出更多努力來平衡併購與回購？考慮到第二季度的回購支出，對此有任何想法。

Julian, let me take the buyback, and then I'll pitch it over to Jim to talk about M&A. We remain opportunistic with our buyback. I think we -- Q1 is our lowest cash flow in the quarter, and we didn't do any there. But we'll be opportunistic as we move forward when we think that we're undervalued and see an opportunity. So I think that's going to continue to be the case. I think from a capacity standpoint, what we're doing here doesn't change anything about when you look at 3 to 5 years with actual capacity. So we've got plenty of capacity at the...

朱利安，讓我來負責回購，然後我會把它交給吉姆談論併購。我們的回購仍然是機會主義的。我認為我們——第一季度是本季度現金流最低的時候，我們沒有在那裡做任何事情。但當我們認為自己被低估並看到機會時，我們就會在前進的過程中抓住機會。所以我認為這種情況將會繼續下去。我認為從容量的角度來看，當你考慮 3 到 5 年的實際容量時，我們在這裡所做的事情不會改變任何事情。所以我們有足夠的能力...

Yes, Julian, I would say we've been very busy this year. As you point out, it's been Provation -- since we did Provation. But I think where we stand today is activity is actually pretty good. And we've seen some things transact in the market lately that wouldn't suggest prices have come down necessarily. But there are some pockets of that. And our bolt-on activity is very, very busy right now. And -- but we remain disciplined.

是的，朱利安，我想說我們今年非常忙碌。正如你所指出的，自從我們進行了 Provation 以來，這就是 Provation。但我認為我們今天的立場是活動實際上相當不錯。我們最近在市場上看到的一些交易並不表明價格一定會下降。但也有一些這樣的地方。我們的補充活動現在非常非常繁忙。而且——但我們仍然遵守紀律。

There's a number of processes that have failed given some sellers lack of desire to sort of get pricing into what we think is the appropriate frame. So we'll remain disciplined and -- around the opportunities. But we do think there's a number of things out there that are possible. And we'll continue to work through them. And with the work we do and the diligence we do and we look forward to when those things get done. We don't have a burning time clock of getting something done for the sake of getting something done. As you well know, we'll remain disciplined and there are opportunities for us, I think, at the back half of the year to do that.

由於一些賣家缺乏將定價納入我們認為合適的框架的意願，因此許多流程都失敗了。因此，我們將保持紀律，並圍繞機會。但我們確實認為有很多事情是可能的。我們將繼續解決這些問題。通過我們所做的工作和我們所做的勤奮，我們期待這些事情能夠完成。我們沒有為了完成某件事而完成某件事的緊迫時間表。正如你所知，我們將保持紀律，我認為，今年下半年我們有機會做到這一點。

Your next question comes from the line of Andy Kaplowitz from Citi.

您的下一個問題來自花旗集團的安迪·卡普洛維茨（Andy Kaplowitz）。

Jim, can you give us more color by region and especially what's going on in China and Europe? Obviously, China has become more of a concern recently and [midyear]. But I think you already did say China is one of those pockets of industrial weakness, and that will continue to decelerate moving forward. But could you give us more details regarding how China and Europe are reflecting your guidance moving forward?

吉姆，您能為我們提供更多按地區劃分的信息，特別是中國和歐洲的情況嗎？顯然，中國最近和[年中]變得更加令人擔憂。但我認為您已經說過，中國是工業薄弱的地區之一，而且這一趨勢將繼續放緩。但您能否向我們提供更多有關中國和歐洲如何反映您的指導方針的詳細信息？

Yes, sure. We've obviously had a -- we've had a strong North America view, and that will continue second half, probably in that mid-single-digit range. And quite frankly, when you look at the 2-year stack in North America, very, very good, kind of mid-teens kind of numbers. So we feel good about where we're at in North America. And obviously, as you know, Andy, that's where a majority of our software businesses are. We're getting the benefit of obviously that in our North American growth rate. We're getting the benefit of a lot of the great work that our ASP team is doing as well. So that's kind of North America.

是的，當然。顯然，我們對北美市場有強烈的看法，這種情況將在下半年繼續下去，可能會在中個位數的範圍內。坦率地說，當你看看北美的 2 年籌碼時，會發現非常非常好的數字。因此，我們對北美的現狀感到滿意。顯然，正如你所知，安迪，這就是我們大多數軟件業務的所在。顯然，我們在北美的增長率中受益匪淺。我們也從 ASP 團隊所做的許多出色工作中受益。這就是北美。

I think relative to Western Europe, probably roughly flattish. Europe has been so strong for a while now. It will be mid-teens. And it was mid-teens in a 2-year stack for the second quarter. So we think it will be more flattish around the second half of the year, maybe up a little bit. We're seeing some good traction in some places, but we're also seeing some, as I mentioned, in Sensing, where we're seeing some industrial OEMs slowdown, and that will be -- that's reflected in our second half guide.

我認為相對於西歐，可能大致持平。歐洲已經如此強大已經有一段時間了。這將是十幾歲左右。第二季度的 2 年堆棧中，該數字為 15 左右。因此，我們認為下半年情況會更加平穩，甚至可能會有所上升。我們在某些地方看到了一些良好的牽引力，但正如我提到的，在傳感領域，我們也看到了一些，我們看到一些工業原始設備製造商放緩，這將反映在我們的下半年指南中。

Relative to China, as you mentioned, I think we've been consistent from really all 6 months of the year and is that we've had 4 really, really strong quarters of growth in China, stands up exceptionally well against many, almost everyone. But we did think the market would take a little bit of a breather in the second half, and we said that back in February, and that's really -- we really still believe that. So embedded in our guide is really more kind of low single-digit growth in China for the second half. And that's more like high teens, accelerating kind of low 20s on a 2-year stack. So we're really accelerating in China on a 2-year stack. So business is still there pretty good. It's just off a very large base from the second half.

正如您提到的，相對於中國，我認為我們在一年中的6 個月中一直保持穩定，並且我們在中國經歷了4 個非常非常強勁的增長季度，與許多幾乎所有人相比都表現得非常出色。但我們確實認為市場會在下半年稍作喘息，我們在二月份就說過這一點，而且我們確實仍然相信這一點。因此，我們的指南中實際上更多的是中國下半年的低個位數增長。這更像是十幾歲的時候，在兩年的籌碼中加速到二十多歲的時候。因此，我們在中國確實在兩年內加速發展。所以生意還是不錯的。與下半場相比，這只是一個非常大的基礎。

And then high-growth markets, as I mentioned, on the India conversation, we still think there's a number of opportunities in the second half to take advantage of some opportunities. But those are -- those kind of go -- they're a little bit smaller, so they tend to -- the growth rates tend to move around a little bit, but we do feel like we've got some opportunities in some of the high-growth markets in the second half.

然後是高增長市場，正如我在印度對話中提到的，我們仍然認為下半年有很多機會可以利用一些機會。但那些是——那些是——它們有點小，所以它們傾向於——增長率傾向於稍微移動，但我們確實覺得我們在某些方面有一些機會下半年市場高速增長。

Got it. So you can make fun of me, but I'm going to ask an AI-related question. But I'm going to ask it in the context of Precision. You talked about some of the verticals fueled by geopolitics and investment in AI and compute. And I think PacSci EMC, you had guided much lower for the quarter than you actually reported. So I think you talked about A&D inflecting, maybe you can talk about the inflection you saw in PacSci. Was it AI-related? What's going on there? And what does it mean for the future?

知道了。所以你可以取笑我，但我要問一個與人工智能相關的問題。但我要在精度的背景下問這個問題。您談到了地緣政治以及人工智能和計算投資推動的一些垂直行業。我認為 PacSci EMC 本季度的指導值比實際報告的要低得多。所以我認為你談到了 A&D 的變形，也許你可以談談你在 PacSci 中看到的變形。與人工智能有關嗎？那裡發生了什麼事？這對未來意味著什麼？

Yes. I think there's probably 2 places that we've seen from a customer investment perspective. I would say, number one is we're seeing investments in quantum computing and R&D organizations that are really working towards opportunities for AI. So obviously, you got to get the hardware in order to get the benefits of AI. And Tektronix is really playing strongly in that regard. And we mentioned -- we obviously mentioned that order in the prepared remarks.

是的。我認為從客戶投資的角度來看，我們可能看到了兩個地方。我想說，第一是我們看到對量子計算和研發組織的投資，它們真正致力於為人工智能創造機會。顯然，你必須獲得硬件才能獲得人工智能的好處。泰克在這方面確實表現強勁。我們提到——我們顯然在準備好的發言中提到了這個順序。

EMC is really more a geopolitical aspect of less AI-related, just more in general of what they've historically done. They've got a tremendous backlog of the business. It really extends. We don't even include that backlog in our hardware backlog because the number is very positive. But we've had some supply chain capacity challenges.

EMC實際上更多的是與人工智能相關的地緣政治方面，只是更籠統地描述了他們歷史上所做的事情。他們有大量積壓的業務。它確實延伸了。我們甚至沒有將該積壓包括在我們的硬件積壓中，因為這個數字非常大。但我們在供應鏈能力方面遇到了一些挑戰。

We got more out in the second quarter than we anticipated, as you said, and we're continuing to work through that. But we, in the second half, we probably have some opportunity in the second half to do better than that, but we've -- we'll see where that goes and some of the improvements we've made are really good, but we want to see those more sustainable, particularly with our supply base at EMC. But we -- the demand for EMC right now is at an all-time high.

正如您所說，我們在第二季度的業績超出了預期，我們正在繼續努力解決這個問題。但是，在下半年，我們可能有機會做得更好，但我們會看看會發生什麼，我們所做的一些改進確實很好，但是我們希望看到這些更具可持續性，特別是在我們EMC的供應基地。但我們現在對 EMC 的需求正處於歷史最高水平。

Your next question comes from the line of Nigel Coe from Wolfe Research.

您的下一個問題來自 Wolfe Research 的 Nigel Coe。

I think we've covered AI. So let's move to price. So you're one of the few companies actually seeing better price Q-o-Q, I think, 50 basis points better, if I'm not mistaken, maybe a bit more than that. So just curious, it seems like you're still pushing price, especially in AHS. So what is your perspective on how pricing looks in the back half of the year, especially within AHS? Is there still more runway in health care? And then I'm just also quite curious as well how pricing looks across software and services.

我想我們已經討論過人工智能了。那麼讓我們轉向價格。因此，你們是少數幾家真正看到比上一季度價格更好的公司之一，我認為，比上一季度好 50 個基點，如果我沒記錯的話，可能比這還要高一點。所以只是好奇，看來你們仍在推高價格，尤其是在 AHS 領域。那麼，您對今年下半年的定價有何看法，尤其是 AHS 內部的定價？醫療保健領域還有更多跑道嗎？然後我也很好奇軟件和服務的定價如何。

Yes. So I would say a couple of things. In the quarter, a little bit better than we anticipated, really around Sensing. As we said, we overdelivered in Sensing, and I think that brings the number up where we probably are getting the most price of, if you will. Relative to health care, it will accelerate a little bit in the second half just because of [Elevate] and the channel mix change that we have; that will probably be more true in the fourth and in the third, but we will see that.

是的。所以我想說幾件事。本季度，比我們預期的要好一些，尤其是在傳感方面。正如我們所說，我們在傳感領域超額交付，我認為這使我們可能獲得最高價格的數字上升，如果你願意的話。相對於醫療保健，由於[Elevate]和我們擁有的渠道組合變化，下半年它會加速一點；在第四個和第三個中可能更是如此，但我們會看到這一點。

And yes, we're continuing to see price in upselling and cross-selling. Our net dollar retention, as an example, has continued to improve, and we're getting some opportunities to really push more price. That's sum of the story of the margin improvements in 2Q and IOS is really the good work we've done.

是的，我們繼續看到追加銷售和交叉銷售的價格。例如，我們的淨美元保留率持續改善，並且我們有一些機會真正推高價格。這就是第二季度利潤率改善的故事的總和，iOS 確實是我們所做的出色工作。

The leader in the clubhouse of net dollar retention is service channel. I think we're at almost 115% now. And I think it just gives you an example of us continuing to push the opportunity for really value. I think it's -- and on the software side, it's really about value and the value you bring. And if we can continue to have those features that we can go cross-sell and upsell, we didn't talk much about it on the question around AI, but AI does present us an opportunity over time to create more features and opportunities within our software business to improve net dollar retention.

淨美元保留率中的領先者是服務渠道。我想我們現在幾乎是 115%。我認為這只是為您提供了一個我們繼續推動機會實現真正價值的例子。我認為，在軟件方面，這實際上與價值以及您帶來的價值有關。如果我們能夠繼續擁有那些可以進行交叉銷售和追加銷售的功能，我們在人工智能問題上並沒有過多討論，但隨著時間的推移，人工智能確實為我們提供了一個機會，可以在我們的業務範圍內創造更多的功能和機會。軟件業務以提高淨美元保留率。

We've seen that at Censis, as an example, with the AI launch that we had with them in the second quarter. So we do think there's plenty of opportunity for net dollar retention to really continue to go up, Nigel. And that's really where we'll see the price component of what we do in our software businesses.

例如，我們在 Censis 上看到了這一點，我們在第二季度與他們一起推出了人工智能。因此，我們確實認為淨美元保留率有很多機會真正繼續上升，奈傑爾。這確實是我們在軟件業務中看到價格組成部分的地方。

Okay. That's great. And then moving on to Fluke. The flat revenues, it sounds like units down mid-single digits. I think you called out China comp has been quite tough there. But are there any other pockets of headwinds that you called out? Just curious because this is the canary in the coal mine.

好的。那太棒了。然後轉向福祿克。收入持平，聽起來像是個位數下降了。我認為你指出中國公司的處境相當艱難。但您還指出了其他一些不利因素嗎？只是好奇，因為這是煤礦裡的金絲雀。

Yes. I think when we -- we've probably, if anything, had such a strong first quarter there. When we look at the mid-single-digit growth in the first half, at Fluke, we really feel good about that number. And yes, there's a -- I would say the industrial business has got a little bit of slowing there, but the calibration business and other components of the business are accelerating. So all up, I think the mid-single-digit number on the back of such a good first half last year, I really think speaks to the strength of Fluke.

是的。我認為當我們——如果有的話，我們可能有一個如此強勁的第一季度。當我們看到福祿克上半年實現的中個位數增長時，我們對這個數字感到非常滿意。是的，我想說，工業業務略有放緩，但校準業務和業務的其他組成部分正在加速。總而言之，我認為去年上半年如此出色的中個位數數字確實說明了福祿克的實力。

The second half will look similarly in terms of about mid-single digits for the second half, and that's really on the backs of even higher growth last year in the second half. So in many respects, kind of an acceleration from a 2-year stack. So overall, we like the trajectory in the business. You're right, there's a couple of places, pockets of things we're continuing to watch. We continue to watch the PMI and industrial production. But I think the team has been executing well, a number of good technology launches.

下半年的情況也將類似，下半年的增長率約為中個位數，這實際上是基於去年下半年更高的增長。所以在很多方面，這都是兩年堆棧的加速。總的來說，我們喜歡該業務的發展軌跡。你是對的，我們正在繼續關註一些地方和一些事情。我們繼續關注PMI和工業生產。但我認為團隊執行得很好，推出了許多優秀的技術。

We had -- the eMaint business is performing really well. So we've built some things that are into the portfolio over time, as you well know, trying to make Fluke less cyclical, more tied to secular drivers, and we believe that will continue to play out here in the second quarter. We've got a number of new product launches that could take advantage of those opportunities as well. So if there is some slowing in the marketplace, we think that can -- a number -- we've got a number of actions out there that we think can countermeasure some of the potential slowness.

我們的 eMaint 業務表現非常好。因此，正如您所知，隨著時間的推移，我們已經在投資組合中建立了一些東西，試圖使福祿克的周期性減少，與長期驅動因素的聯繫更加緊密，我們相信這將在第二季度繼續發揮作用。我們推出了許多新產品，也可以利用這些機會。因此，如果市場出現一些放緩，我們認為可以——在一定程度上——我們已經採取了一些行動，我們認為可以抵消一些潛在的放緩。

And your next question comes from the line of Joe Giordano from TD Cowen.

您的下一個問題來自 TD Cowen 的 Joe Giordano。

Again, I want to -- just on the short cycle stuff. One, I just want to make sure I understand, Fluke, flattish this quarter. It accelerates in 2 half, in the second half. I just want to make sure I understood that.

再說一次，我想——只是關於短週期的事情。第一，我只是想確保我明白，福祿克，本季度表現平平。它在下半場加速。我只是想確保我理解這一點。

And then, on Tek, you mentioned earlier, orders were down 10%, but still up 30% from 3 years ago. Like that's obviously very positive. But at the same time, does it like scare you in a way that like what's the rate amount of like the normal level for a business like that? Because if we're talking about 350-ish of excess backlog going to $200 million, and half of that is Tek, it's like $75 million of excess revenue delivery versus orders in the second half alone, which is pretty significant. So I just want to understand like where these businesses exit the year and what it means for comps into next year from like a 4Q starting point?

然後，您之前提到的 Tek 訂單量下降了 10%，但仍比 3 年前增長了 30%。這顯然是非常積極的。但與此同時，它是否會讓您感到害怕，比如像這樣的企業的正常水平的費率是多少？因為如果我們談論的是 350 左右的超額積壓訂單，達到 2 億美元，其中一半是 Tek，那麼僅下半年的訂單就相當於 7500 萬美元的超額收入交付，這是相當重要的。所以我只想了解這些企業今年在哪裡退出，以及從第四季度的起點到明年的比較意味著什麼？

Yes. So let me clarify the Fluke comment. What I said about Fluke is we were mid-single digits in the first half this year, will be mid-single digits in the second half; so from that standpoint, no acceleration. The quarters might move a little bit, but just if we think about first half to second half, about the same. However, because we grew more in the second half of last year, the 2-year stack does accelerate a little bit. So hopefully, that clarifies the Fluke comment.

是的。讓我澄清一下福祿克的評論。我對福祿克的看法是，今年上半年我們的業績處於中個位數，下半年也將達到中個位數；所以從這個角度來看，沒有加速。每個季度可能會發生一些變化，但如果我們考慮上半場和下半場，情況大致相同。然而，由於我們在去年下半年增長較多，因此 2 年堆棧確實有​​所加速。希望這能澄清福祿克的評論。

I think relative to Tek, we always knew that there were a number of parts of the business that we're really fulfilling over time. And as I mentioned, plus lead times going down would ultimately impact orders. What's been nice to see is in the strength of point-of-sale at Tek, which, around the world, has continued to be good. And I think it continues to solidify our belief that the demand is real and that the demand can be played out over time. And that's why that -- we believe that demand -- the excess backlog, if you will, remains in insurance policy against anything that might occur relative to some slowing that's going on. So I think that -- I'll stop there, and hopefully that clarifies the 2 points.

我認為相對於 Tek，我們一直都知道，隨著時間的推移，我們確實在實現業務的許多部分。正如我所提到的，加上交貨時間的縮短最終會影響訂單。令人高興的是 Tek 銷售點的實力，在全球範圍內一直表現良好。我認為這繼續堅定了我們的信念，即需求是真實的，並且需求可以隨著時間的推移而發揮作用。這就是為什麼——我們相信需求——過剩的積壓，如果你願意的話，仍然保留在保險單中，以防止與正在發生的某些放緩相關的任何可能發生的情況。所以我認為——我就到此為止，希望這能澄清這兩點。

And then just a follow-up on margins. Like if I look at your Slide 16, obviously, a big ramp in all 3 segments from 1Q to 4Q. And I just want to kind of -- if you can frame out maybe how much of that variance from 1Q to 4Q is like normal seasonal? And how much is like a new jumping off point from the fourth quarter level into next year?

然後只是對利潤率進行跟進。就像我看你的幻燈片 16 一樣，顯然，從 1Q 到 4Q 的所有 3 個部分都有一個很大的斜坡。我只是想——如果你能弄清楚從第一季度到第四季度的差異有多少是正常季節性的？從第四季度水平到明年的新起點有多少？

I think the -- Rob, it's normal seasonal. It's just it's more -- I'm sorry, Joe, sorry. This is normal seasonality step-up from Q3 to Q4 when you're talking about what's going on there at the fall-through margins. I do think that -- but embedded in there is some of the self-help we did in the first half, and that will carry over and be held in the -- certainly in the first half of next year and then the pricing that we've been putting in.

我認為——羅布，這是正常的季節性。只是更多的是——對不起，喬，對不起。當您談論利潤下降時發生的情況時，這是從第三季度到第四季度的正常季節性上升。我確實認為 - 但其中包含我們在上半年所做的一些自助，這將延續並保留在 - 當然是明年上半年，然後是我們的定價已經投入了

So to a certain extent, it is a better jumping off point going into next year, but keep in mind that Q4 to Q1 step down. But when you look year-on-year, I think those things are going to be tailwinds with pricing self-help. And then the [Elevate] help margins, perhaps it gives a great stepping off into the first half of next year.

因此，在某種程度上，這是進入明年的更好的起點，但請記住，第四季度到第一季度會下降。但當你逐年觀察時，我認為這些事情將成為定價自助的順風車。然後[提升]幫助利潤率，也許它為明年上半年提供了一個很好的起點。

And your next question comes from the line of Joe O'Dea from Wells Fargo.

您的下一個問題來自富國銀行的 Joe O'Dea。

First, just one related to a comment around channel distribution in AHS. And I think you talked about how it's still a headwind in the third quarter, the headwind goes away in the fourth quarter. I guess I'm curious about the tailwinds associated with this and what that looks like. And I don't know any framing around kind of the cost headwinds you've seen so far. But then as you sort of reach that transition point, how long you think it takes to then sort of reach the more elevated margin target opportunity that you have there.

首先，只有一個與 AHS 中渠道分佈相關的評論。我想你談到了第三季度仍然是逆風，第四季度逆風就消失了。我想我對與此相關的順風以及它的樣子感到好奇。我不知道您迄今為止所看到的成本逆風的任何框架。但是，當您達到該轉變點時，您認為需要多長時間才能達到更高的利潤目標機會。

Well, I would say relative to just the transition itself, the biggest impact -- I think we ought to think about, the biggest impact is in the second quarter. There's some impact in the third, and that sort of equates itself out of the number by the fourth quarter. So that's kind of the sort of the sequential aspects of the impact of it.

嗯，我想說的是，相對於過渡本身，最大的影響——我認為我們應該考慮一下，最大的影響是在第二季度。第三季度會產生一些影響，這相當於第四季度的影響。這就是它的影響的一系列方面。

We think that benefits -- I think we talked about this, it benefits margins from the perspective of we think we get better price. And so in that sense, it has a margin impact as well. I also think it has a growth impact, and this will probably be more a late Q4 in the '24 impact. And we still need to see it.

我們認為這有利於——我想我們討論過這一點，從我們認為我們獲得更好價格的角度來看，它有利於利潤率。因此從這個意義上說，它也會對利潤率產生影響。我還認為它會對增長產生影響，這可能會在 24 年第四季度末產生影響。我們仍然需要看到它。

But the direct aspects of our terminal sterilization, which is a really strong business for us, allows for us to accelerate the sterilization cycles that go on in our equipment. Meaning that we can -- now that we're direct, we have much more contact with customers. And our application engineers will be more directly working with customers on the sort of efficacy of accelerating sterilization into other products that might be in the sterilization lab. And that should have impact on growth over time.

但我們的終端滅菌的直接方面對我們來說是一項非常強大的業務，它使我們能夠加快設備中進行的滅菌週期。這意味著我們可以——現在我們是直接的，我們與客戶有更多的聯繫。我們的應用工程師將更直接地與客戶合作，研究加速滅菌實驗室中其他產品的滅菌效果。隨著時間的推移，這應該會對增長產生影響。

So not only in terminal sterilization, but also in our biological indicator business. So we feel that there's a real -- there is a growth impetus to this as well. We think there's a customer satisfaction impetus as well. And I think to some extent, the reason why our capital numbers were better in the second quarter was because customers are starting to understand that they're going to have a better opportunity to really have ASP salespeople, ASP application engineers in their hospitals every day helping them out.

因此，不僅在終端滅菌中，而且在我們的生物指示劑業務中也是如此。因此，我們認為這也確實存在增長動力。我們認為客戶滿意度也有推動作用。我認為在某種程度上，我們第二季度的資本數字更好的原因是因為客戶開始明白他們將有更好的機會每天在醫院裡真正擁有 ASP 銷售人員、ASP 應用工程師幫助他們。

And so I think it's a margin and growth story. It certainly is going to -- has already started to play out, I believe, on the capital side. It plays out on the consumable side in the second half and certainly into '24.

所以我認為這是一個利潤和增長的故事。我相信，它肯定會——已經開始在資本方面發揮作用。它在下半場的消耗品方面發揮作用，當然會持續到24年。

And then I wanted to ask one just on orders. I think you talked about Precision Tech book-to-bill at 1.0 better than the 0.9 you were anticipating. I'm not sure about Fluke, but orders up mid-single digit, I guess, if anything, maybe a little bit better than expected. And so I don't know if there's sort of anything overarching about it, but what you would sort of most attribute to seeing some of these order trends kind of better than anticipated out there.

然後我想問一個關於訂單的問題。我認為您談到 Precision Tech 的訂單出貨比為 1.0，比您預期的 0.9 好。我不確定福祿克的情況如何，但我想，如果有的話，訂單可能會比預期好一點。所以我不知道是否有什麼重要的事情，但你最可能歸因於看到其中一些訂單趨勢比預期的要好。

Yes, I think -- well, here's what we're seeing. I mean I really -- if we -- as we started the year, we thought there'd be some slowing in the year just because of the moderating aspects of some of our businesses and maybe some economic impact in [pockets]. We really have seen -- we really haven't seen much of that in the first half of the year. But embedded in our guide is still some aspects of thinking that there's going to be some economic impact. Obviously, PMIs in the world, some of the portfolios still have some ties to industrial production.

是的，我認為——嗯，這就是我們所看到的。我的意思是，我真的 - 如果我們 - 在我們年初時，我們認為今年會出現一些放緩，只是因為我們的一些業務的放緩以及可能對[口袋]的一些經濟影響。我們確實已經看到了——今年上半年我們確實還沒有看到太多這樣的情況。但我們的指南中仍然包含一些認為這將會產生一些經濟影響的想法。顯然，全球PMI中，有一些投資組合與工業生產還是有一定聯繫的。

We've been able to mitigate all that because of the strong strategy around secular drivers and the recurring revenue parts of the business that have played out exceptionally well. So we'll continue to -- that was a book-to-bill of 1.0, which included, by the way, Fluke orders as well on that overall book-to-bill. So I think where we stand today is in a much better position. As we said, the excess backlog number is more robust than we anticipated as we go into the second half.

由於圍繞長期驅動因素的強有力的戰略以及業務的經常性收入部分錶現得非常好，我們能夠緩解這一切。因此，我們將繼續——訂單出貨比為 1.0，順便說一句，其中也包括福祿克的訂單以及整個訂單出貨比。所以我認為我們今天所處的位置要好得多。正如我們所說，進入下半年，超額積壓數量比我們預期的更為強勁。

And I think that bodes well for the 3 things we talk about going into the year. If there was some concerns around the macro that we would have the strong backlog, excess backlog, as I described, software and recurring revenue and the self-help work that's going in AHS. And I think what you saw in the second quarter is all that manifesting well.

我認為這對於我們今年討論的三件事來說是個好兆頭。如果對宏觀方面存在一些擔憂，那麼正如我所描述的那樣，我們將面臨大量的積壓、過多的積壓、軟件和經常性收入以及 AHS 中正在進行的自助工作。我認為你在第二季度看到的一切都表現得很好。

And our final question comes from the line of Brett Linzey from Mizuho Americas.

我們的最後一個問題來自 Mizuho Americas 的 Brett Linzey。

A lot of ground has been covered, but I just want to come back to price. Clearly, advanced here in the industrial cycle and seeing some softness in some of those hardware businesses. How are you thinking about the ability to take more price or hold the ground on price should the macro develop more weekly here, particularly within Sensing?

已經討論了很多內容，但我只想回到價格。顯然，在工業周期中取得了進步，並且看到一些硬件業務出現了一些疲軟。如果宏觀每週發展更多，您如何看待採取更高價格或堅守價格的能力，特別是在傳感領域？

I think, number one, our ability to hold price, we feel very good about it. I think the quality of our franchises, the kind of value and investments we've made in innovation, really speak to our ability to hold price. And we think of it as value creation and our ability to create more value for customers and get paid for it. And I think you see that across -- in a number of the things we were talking about, I think, we see that.

我認為，第一，我們保持價格的能力，我們對此感覺非常好。我認為我們的特許經營權的質量、我們在創新方面所做的價值和投資，確實說明了我們保持價格的能力。我們將其視為價值創造以及我們為客戶創造更多價值並獲得報酬的能力。我認為你在我們談論的許多事情中都看到了這一點，我想，我們看到了這一點。

So we think strongly, we can hold price and we feel we can continue to get it, probably not at the rates we got in '21, as an example, in '22, but we've always been a good price leader relative to, I think, a number of companies. And I think we -- there's no reason why we wouldn't continue to be as we go into '24 and '25.

因此，我們強烈認為，我們可以保持價格，我們覺得我們可以繼續獲得它，可能不是我們在 21 年獲得的價格，例如，在 22 年，但相對於，我想，有很多公司。我認為，當我們進入 24 和 25 年時，我們沒有理由不繼續這樣做。

And this concludes our question-and-answer session. I will now turn the call back over to you, Jim, for some final closing remarks.

我們的問答環節到此結束。吉姆，我現在將把電話轉回給你，讓你做最後的總結髮言。

Thanks, Rob, and thanks, everyone, for the time today. Hopefully, you get a sense of the excitement in the second quarter and the conversations we had. I think as we look into the second half, we -- the raise of our guide really speaks to the confidence that we have out there despite probably some noisy things.

謝謝羅布，也謝謝大家今天的時間。希望您能感受到第二季度的興奮以及我們的對話。我認為，當我們展望下半場時，我們——我們的導遊的加薪確實表明了我們的信心，儘管可能存在一些噪音。

Our strategy is playing out the way we anticipated, and we're excited about that. And we look forward to sharing some of the details with you as we get through the follow-up calls and a number of things that we'll be doing here in the third quarter. Between now and then, have a great summer. Thanks for everyone. We look forward to your follow-up questions, and take care. Thank you.

我們的策略正在按照我們預期的方式發揮作用，我們對此感到興奮。我們期待在接到後續電話以及第三季度我們將在這裡做的一些事情時與您分享一些細節。從現在到那時，祝你度過一個愉快的夏天。謝謝大家。我們期待您的後續問題，請多保重。謝謝。

This concludes today's conference call. Thank you for your participation. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連接。