Fortive Corp (FTV) 2024 Q2 法說會逐字稿

Greetings and welcome to the Fortive Corporation second quarter 2024 earnings call. At this time, all participants are in a listen-only mode. A brief question and answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

歡迎參加 Fortive Corporation 2024 年第二季財報電話會議。此時，所有參與者都處於只聽模式。正式演講後將舉行簡短的問答環節。（操作員指示）謹此提醒，本次會議正在錄製中。

It is now my pleasure to introduce your host, Elena Rosman, Vice President, Investor Relations. Thank you. You may begin.

現在我很高興向您介紹主持人，投資者關係副總裁 Elena Rosman。謝謝。你可以開始了。

Thank you, Diego, 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. We present certain non-GAAP financial measures on today's call. Information required by Regulation G is 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.

謝謝迭戈，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執行長 Jim Lico 和我們的高級副總裁兼財務長 Chuck McLaughlin。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 條例要求的資訊可在我們網站 Fortive.com 的投資者部分取得。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 statement 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, 2023. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements.

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所做的任何前瞻性陳述有重大差異。有關這些風險因素的資訊可在我們向 SEC 提交的文件中找到，包括我們截至 2023 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作出之日的情況，我們不承擔更新任何前瞻性陳述的義務。

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

說到這裡，我想把電話轉給吉姆。

Thanks, Elena. Hello, everyone. Thank you for joining us. I'll begin on Slide 3.

謝謝，埃琳娜。大家好。感謝您加入我們。我將從幻燈片 3 開始。

Our second quarter results showcase strong execution across our businesses, allowing us to deliver earnings and free cash flow at the high end of our guidance, with 90 basis points of adjusted operating margin expansion and 9% adjusted earnings growth, despite revenue at the low end of our guidance. Our performance continues to reflect our ability to adapt to the low growth environment and deliver differentiated financial results, enabled by FBS-led innovation and productivity actions. Our leadership positions across durable growth markets are reflected in the upside performance in Advanced Healthcare Solutions and continued momentum in Intelligent Operating Solutions, positioning Fortive well for the future. As we look ahead, we are excited to see the acceleration of our innovation and new product launches, delivering more value for customers and sustained growth for Fortive. We are confident in our updated outlook for the year, reflecting strong growth in our recurring revenue businesses and continuing our track record of mid-single-digit through-cycle core growth and compounding earnings and free cash flow by double digits in 2024.

我們第二季的業績展示了我們業務的強勁執行力，使我們能夠在指導的高端實現盈利和自由現金流，儘管收入處於低端，但調整後的營業利潤率擴張了90 個基點，調整後的獲利成長了9%我們的指導。我們的業績繼續反映了我們適應低成長環境並提供差異化財務表現的能力，這得益於 FBS 主導的創新和生產力行動。我們在持久成長市場中的領導地位體現在高階醫療保健解決方案的上產業績和智慧操作解決方案的持續成長勢頭上，為 Fortive 的未來奠定了良好的基礎。展望未來，我們很高興看到我們的創新和新產品發布的加速，為客戶帶來更多價值，並為 Fortive 帶來持續成長。我們對今年更新的展望充滿信心，反映出我們經常性收入業務的強勁增長，並繼續保持中個位數的整個週期核心增長的記錄，並在2024 年實現兩位數的複合收益和自由現金流。

Turning to Slide 4, I'll provide an overview of our second quarter and year to date results as well as what we're seeing as we look ahead. Second quarter revenues were up 2%, with flat core growth. Acquisitions contributed 3 points to growth, partially offset by a foreign exchange headwind. Strong operational execution contributed to record second quarter adjusted gross and operating margins and earnings per share of $0.93. Year to date, we achieved 100 basis points of adjusted operating margin expansion and double-digit earnings and free cash flow growth on 3% revenue growth.

轉向幻燈片 4，我將概述我們第二季度和今年迄今為止的業績以及我們展望未來的情況。第二季營收成長 2%，核心成長持平。收購為成長貢獻了 3 個百分點，但部分被外匯逆風所抵銷。強勁的營運執行力使得第二季調整後毛利率和營業利潤率以及每股收益達到創紀錄的 0.93 美元。今年迄今為止，我們實現了 100 個基點的調整後營業利潤率擴張、兩位數的盈利和自由現金流增長以及 3% 的收入增長。

Turning to what we are seeing across our businesses. Intelligent Operating Solutions and Advanced Healthcare Solutions continue their momentum, benefiting from durable and recurring revenue as well as new product introductions aligned to secular growth drivers. This demonstrates the success of our capital deployment strategy in these segments, where we continue to focus our bolt-on efforts to further enhance growth. Across Fortive, our recurring revenue is now 42% of our portfolio, growing low double digit year to date. We expect that pace of growth to continue in the second half. Government spending delays broadly contributed to revenue coming in at the low end of our second quarter guide, primarily driven by delayed military and government R&D projects impacting Tektronix, as funding continues to be prioritized to production-related programs, and slower job order contracting growth at Gordian, as they lacked government stimulus funding in 2022 and 2023.

轉向我們在我們的業務中所看到的情況。智慧營運解決方案和進階醫療保健解決方案持續保持成長勢頭，受益於持久和經常性收入以及與長期成長驅動力一致的新產品推出。這表明我們在這些領域的資本部署策略取得了成功，我們將繼續集中精力進一步促進成長。在 Fortive 中，我們的經常性收入目前占我們投資組合的 42%，今年迄今以兩位數的速度成長。我們預計下半年將繼續保持這種成長速度。政府支出延遲在很大程度上導致了我們第二季度指南低端的收入，這主要是由於影響泰克的軍事和政府研發項目延遲，因為資金繼續優先用於與生產相關的項目，並且工作訂單合約成長放緩。

Orders at Precision Technologies were down in the quarter as expected, and book-to-bill was stable at 1.0. Consistent with our prior outlook, we expect orders to return to low single-digit growth in the third quarter. However, our updated 2024 revenue outlook does reflect a slower-than-expected recovery in certain end markets in PT in the second half of the year. We are offsetting lower revenue with new productivity actions, and have reflected the delay in global minimum tax implementation in our tax rate guidance for the year. Chuck will cover the outlook for the rest of the year in more detail shortly.

Precision Technologies 本季的訂單量如預期下降，訂單出貨比穩定在 1.0。與我們先前的預期一致，我們預計第三季訂單將恢復到低個位數成長。然而，我們更新的 2024 年收入前景確實反映了下半年 PT 某些終端市場的復甦速度慢於預期。我們正在透過新的生產力行動來抵消收入的下降，並在今年的稅率指導中反映了全球最低稅實施的延遲。查克很快就會更詳細地介紹今年剩餘時間的前景。

Lastly, our free cash flow performance continues to differentiate, with industry-leading free cash flow margins, allowing us to repurchase 2 million shares in the second quarter and continue that pace the remainder of the year.

最後，我們的自由現金流表現繼續與眾不同，擁有業界領先的自由現金流利潤率，使我們能夠在第二季度回購 200 萬股股票，並在今年剩餘時間繼續保持這一速度。

Turning to slide 5, I will provide more detail on second quarter segment performance as well as our expectations for the full year. Intelligent Operating Solutions total revenue growth was 4%, with core up 3%. Acquisitions were favorable, partially offset by an FX headwind. Adjusted operating margins were down slightly versus the prior year, although up approximately 400 basis points on a two year stack, with strong price realization and volume growth more than offset by growth investments. Additional highlights include: Fluke revenues were up low-single-digit plus, including mid-single-digit industrial products and double-digit ARR growth in the quarter, strong proof point of our efforts to make the business more resilient. Fluke's bolt-on acquisitions, Solmetric and Azima DLI, continued to outperform, contributing to Fluke's growth in the quarter.

轉向幻燈片 5，我將提供有關第二季度部門業績以及我們對全年的預期的更多詳細資訊。智慧營運解決方案總收入成長 4%，其中核心收入成長 3%。收購活動有利，但部分被外匯逆風抵銷。調整後的營業利潤率與上年相比略有下降，儘管兩年來增長了約 400 個基點，強勁的價格實現和銷量增長被增長投資所抵消。其他亮點包括：福祿克營收實現低個位數以上成長，包括本季工業產品的中位數成長和兩位數的 ARR 成長，有力證明了我們為提高業務彈性所做的努力。Fluke 的補充收購 Solmetric 和 Azima DLI 繼續表現出色，為 Fluke 本季度的成長做出了貢獻。

AHS grew low single digit, paced by recurring revenue contributions, including strong SaaS and iNet growth, partially offset by slower product sales at ISC. [SAL] grew mid single digit or mid teens on a two year stack, with continued normalizing growth at Gordian and lapping the wind-down of pass-through revenue at service channel. SAL maintained its pace of high single digit SaaS growth, and we expect to see that reflected in accelerated core growth in the second half. For the full year, we expect IOS to deliver mid-single-digit core growth, with approximately 100 basis points of adjusted operating margin expansion.

AHS 成長幅度較低，主要得益於經常性收入貢獻，包括 SaaS 和 iNet 的強勁成長，但部分被 ISC 產品銷售放緩所抵銷。 [SAL] 在兩年內實現了中個位數或中十幾位數的成長，Gordian 的成長持續正常化，並結束了服務管道直通收入的逐漸減少。SAL 維持 SaaS 高單位數成長速度，我們預期這一點將反映在下半年核心業務加速成長。就全年而言，我們預計 IOS 將實現中個位數核心成長，調整後營業利潤率擴張約 100 個基點。

Precision Technologies was down 1.5% in the quarter, with core decline of 6.6%. Acquisitions, net of divestitures, contributed 6 points to growth, partially offset by FX. Adjusted operating margins were down slightly year over year, with lower core volumes almost fully offset by productivity benefits, favorable price and M&A. Additional highlights include: Tektronix core revenues was down mid teens, as revenues normalized to bookings. We saw pushout of large Mil/Gov projects in the Americas and slower recovery in China, partially offset by mid-single-digit services growth. EA has seen large EV mobility and battery expansion projects push out, reducing its revenue outlook for the year to approximately $130 million. While sales cycles are longer for these large projects, EA has seen a doubling of its sales funnel on smaller run-rate projects across industries, validating the go-to-market synergies with Tektronix and positioning the business well for 2025 and beyond. Sensing was down mid single digit in the quarter, with continued strength in utility grid, food and beverage, and health care end markets more than fully offset by weaker industrial and factory automation demand. And lastly, Pacific Scientific delivered another quarter of mid teens core revenue growth, driven by robust demand. We finished Q2 with a stable 1-to-1 book-to-bill and are expecting revenue to return to growth in the second half. For the full year, we now expect PT growth down low single digits, with adjusted operating margins approximately flat.

Precision Technologies 本季下跌 1.5%，核心下跌 6.6%。扣除資產剝離後的收購對成長貢獻了 6 個百分點，但部分被外匯抵銷。調整後的營業利潤率較去年同期略有下降，核心銷售的下降幾乎完全被生產力優勢、優惠的價格和併購所抵銷。其他亮點包括：隨著收入標準化為預訂，泰克核心收入下降了十幾歲。我們看到美洲大型軍事/政府項目的推出以及中國復甦的放緩，但部分被中等個位數的服務業成長所抵消。EA 看到大型電動車和電池擴建項目的推出，將其今年的收入前景下調至約 1.3 億美元。雖然這些大型專案的銷售週期較長，但 EA 的跨行業小型運行率專案的銷售管道翻了一番，驗證了與泰克的上市協同效應，並為 2025 年及以後的業務做好了定位。本季感測業務下降了個位數中位，公用電網、食品和飲料以及醫療保健終端市場的持續強勁完全被工業和工廠自動化需求疲軟所抵消。最後，在強勁需求的推動下，太平洋科學公司的核心收入又實現了四分之一的成長。我們以穩定的 1:1 訂單出貨比結束了第二季度，預計營收將在下半年恢復成長。就全年而言，我們現在預計 PT 成長率將下降至低個位數，調整後的營業利潤率大致持平。

Advanced Healthcare Solutions revenue growth was 3% with core growth of 5%, partially offset by unfavorable FX of approximately 2%. Adjusted operating margins expanded 260 basis points, with strong volume, price realization and productivity benefits more than offsetting growth investments. Additional highlights include: ASP Censis grew mid single digits, driven by double-digit consumables growth, enabled by the successful North American channel transition at ASP and new doors and cross-sell expansion at Censis. Fluke Health Solutions was up low single digits, with double digit dosimetry services growth. Provation grew low single digits, lapping a large prior-year licensing win, while SaaS revenues up nearly 50% in the quarter. Given the strong first-half performance, we now expect AHS full year core growth to be at the high end of mid single digits, with over 150 basis points of adjusted OMX for the year.

高級醫療保健解決方案收入成長 3%，其中核心成長 5%，部分被約 2% 的不利匯率所抵銷。調整後的營業利潤率擴大了 260 個基點，強勁的銷售量、價格實現和生產力收益超過了成長投資的抵銷。其他亮點包括：在 ASP 成功的北美通路轉型以及 Censis 的新門和交叉銷售擴張的推動下，ASP Censis 成長了中個位數，這得益於兩位數的消耗品成長。福祿克健康解決方案 (Fluke Health Solutions) 的股價小幅上漲，劑量測定服務則達到兩位數的成長。Provation 實現了低個位數成長，超越了去年的授權許可，而本季度 SaaS 收入成長了近 50%。鑑於上半年的強勁表現，我們現在預計 AHS 全年核心成長將達到中個位數的高端，全年調整後的 OMX 成長將超過 150 個基點。

Moving to slide 6, several short-cycle industrial markets served by our Precision Technology segment faced headwinds in the second quarter. We saw continued customer caution, weighing election and macro uncertainty contributing to OEM and channel weakness and further CapEx-related project delays. North American revenues were up slightly, benefiting from mid-single-digit growth at IOS, driven by strong industrial and software growth, mid teens growth in Healthcare consumables and continued strength at PacSci, partially offset by lower Tektronix revenues. In Europe, we saw revenues normalize to booking, with a mid teens decline at PT, partially offset by low-single-digit growth at IOS and low double-digit growth in Healthcare. Core revenue in Asia was down low single digits, driven by slower government spending and distributor destocking in China. Japan was up mid single digit or better in all segments and in India, we saw slower growth given election uncertainty impacting project timing at Tektronix.

轉向幻燈片 6，我們精密技術部門服務的幾個短週期工業市場在第二季面臨阻力。我們看到客戶持續保持謹慎態度，權衡選舉和宏觀不確定性，導致 OEM 和管道疲軟以及資本支出相關項目進一步延遲。北美收入小幅增長，受益於工業和軟體強勁增長、醫療保健消耗品中十幾位數增長以及 PacSci 持續強勁增長推動的 IOS 中等個位數增長，但部分被泰克收入下降所抵消。在歐洲，我們看到預訂收入正常化，PT 的收入下降了十幾位數，部分被 IOS 的低個位數成長和醫療保健的低兩位數成長所抵消。由於中國政府支出放緩和經銷商去庫存，亞洲的核心收入下降了低個位數。日本的所有細分市場都實現了中個位數或更好的成長，而在印度，由於選舉的不確定性影響了泰克的項目進度，我們看到成長放緩。

Core growth for the quarter largely centered on our high-growth markets, excluding China. These regions have now eclipsed China in size and account for approximately 14% of sales. Looking ahead, we expect improvement in core growth in the back half of the year, driven by favorable order rates as well as continued strength in AHS and software.

本季的核心成長主要集中在我們的高成長市場，不包括中國。這些地區的規模現已超過中國，約佔銷售額的 14%。展望未來，我們預計，在有利的訂單率以及 AHS 和軟體業務持續強勁的推動下，下半年核心成長將有所改善。

With that, I'll turn it over to Chuck to talk through our updated third quarter and full year guidance.

接下來，我將把它交給查克來討論我們更新的第三季和全年指導。

Thanks, Jim, and hello, everyone. Turning to slide 7, I will provide our Q3 outlook as well as an updated outlook for the full year.

謝謝吉姆，大家好。轉向幻燈片 7，我將提供我們的第三季展望以及全年的最新展望。

For the third quarter, we anticipate revenue growth of 3% to 4.5% with core growth of 2% to 3.5%, driven by continued momentum in IOS and AHS and roughly flat core growth at PT. Adjusted operating profit margin is estimated at approximately 27%, up over 100 basis points year over year. Adjusted diluted EPS guidance of $0.92 to $0.95, up 8% to 12%, and free cash flow is expected to be approximately $360 million. For the full year, total growth is now expected in the range of 3% to 4%, approximately 1.5% lower than the prior guidance, driven by the revised outlook at Precision Technologies and further FX headwinds. Core growth is now expected to be in range of 2% to 3%.

在 IOS 和 AHS 持續成長以及 PT 核心成長大致持平的推動下，我們預計第三季營收將成長 3% 至 4.5%，核心成長 2% 至 3.5%。調整後營業利潤率預計約 27%，年增超過 100 個基點。調整後稀釋後每股盈餘指引為0.92至0.95美元，成長8%至12%，自由現金流預計約3.6億美元。在 Precision Technologies 修訂後的前景和進一步的外匯不利因素的推動下，全年總成長率預計在 3% 至 4% 之間，比先前的指導低約 1.5%。目前預計核心成長率將在 2% 至 3% 之間。

Adjusted operating profit margin is still expected to be in the range of 27% to 27.5%, up 100 to 150 basis points year over year. Note, we have offset roughly half of the operating profit shortfall related to the lower revenue with productivity actions and as a result, we are still expecting to average 60% incremental margins, given the proactive restructuring we did coming into the year. The other half of the earnings offset is coming from a lower effective tax rate, now expected to be approximately 12% for the year. As a result, we are raising our adjusted diluted EPS range to $3.80 to $3.86, up 11% to 13% year over year.

調整後營業利益率仍預計在27%至27.5%範圍內，較去年同期成長100至150個基點。請注意，我們已經透過生產力行動抵消了大約一半與收入下降相關的營業利潤缺口，因此，考慮到我們在今年進行的積極重組，我們仍預計平均利潤率將增加 60%。另一半收益抵銷來自較低的有效稅率，目前預計今年約為 12%。因此，我們將調整後稀釋每股收益範圍提高至 3.80 美元至 3.86 美元，年增 11% 至 13%。

Looking at the right side of the slide, you can see the benefits of our portfolio transformation, improving the through cycle durability and growth rates of the portfolio. Fortive's continued growth is enhanced by increasing level of recurring revenue and our focus on innovation, which I'll highlight on the next slide.

查看投影片的右側，您可以看到我們的投資組合轉型的好處，提高了投資組合的整個週期耐久性和成長率。Fortive 的持續成長得益於經常性收入水準的提高和我們對創新的關注，我將在下一張投影片中強調這一點。

For the last eight years, we have been intentional about building a proven tool set around how we prioritize and develop new products, bring them to market faster, to drive greater returns on R&D investments and deliver differentiated value for our customers. We have several examples of how our increased innovation philosophy is contributing to the core growth, with a pipeline of new products, including in Q2, Fluke launched its new EV charging station analyzer, which allows technicians to perform multiple tests with a single tool. FAL recently launched the Gordian Cloud Platform, an integrated cloud-based capital planning tool, and Accruent Space Intelligence, a comprehensive real estate planning and space management and optimization platform.

在過去的八年裡，我們一直致力於建立一套經過驗證的工具集，圍繞如何優先考慮和開發新產品、更快地將其推向市場、提高研發投資回報並為客戶提供差異化價值。我們有幾個例子來說明我們不斷增強的創新理念如何透過一系列新產品促進核心成長，包括在第二季度，福祿克推出了新型電動車充電站分析儀，該分析儀允許技術人員使用單一工具執行多項測驗。FAL 最近推出了基於雲端的整合資本規劃工具 Gordian Cloud Platform 和綜合性房地產規劃及空間管理和最佳化平台 Accruent Space Intelligence。

In PT, Tektronix continues to enhance its oscilloscopes platforms, bringing more power analysis tools to the engineer's bench. They recently launched the 4 Series D, with more powerful processor system to speed up analysis for power converters being designed for a broad range of industrial applications.

在 PT 領域，泰克繼續增強其示波器平台，為工程師的工作台帶來更多功率分析工具。他們最近推出了 4 系列 D，具有更強大的處理器系統，可加快針對廣泛工業應用而設計的電源轉換器的分析。

At ASP, new innovations are also enhancing core growth. They recently secured US FDA approval on a new steam monitoring biological indicator, which allows them to ramp up sales on this product in the second half of the year.

在 ASP，新的創新也促進了核心成長。他們最近獲得了美國 FDA 批准一種新型蒸汽監測生物指示器，這使他們能夠在今年下半年提高該產品的銷售量。

FBS is driving success as we identify and expand to new growth markets, speed innovation cycles and maximize investment returns across all three operating segments. For example, we reduced the amount of sustaining engineering spend as a percentage of the total by roughly 20% and redeploying the savings to fund future growth with new products and software features. As a result, we have created a funnel of over $1 billion in new market and revenue opportunities, roughly 3x what it was just three years ago.

隨著我們發現並拓展新的成長市場、加快創新週期並最大限度地提高所有三個營運部門的投資回報，FBS 正在推動成功。例如，我們將維持工程支出佔總支出的比例減少了約 20%，並將節省的資金重新用於新產品和軟體功能的未來成長。結果，我們創造了價值超過 10 億美元的新市場和收入機會，大約是三年前的 3 倍。

AI has also been a key enabler to our success, although we are still in the early innings. We created our vision several years ago with the establishment of The Fort, our incubation hub and center of excellence for AI and machine learning. Coupled with our partnership with startup studios Pioneer Square Labs, we test new AI ideas developed by our operating companies. In Q2, our teams incubated seven new growth ideas, some of which are likely to become new Fortive products, while others potentially new startups.

儘管我們仍處於早期階段，但人工智慧也是我們成功的關鍵推動因素。幾年前，我們透過建立 The Fort 來製定我們的願景，The Fort 是我們的人工智慧和機器學習孵化中心和卓越中心。加上我們與新創工作室 Pioneer Square Labs 的合作，我們測試了我們營運公司開發的新人工智慧想法。在第二季度，我們的團隊孵化了七個新的成長想法，其中一些可能成為新的 Fortive 產品，而有些則可能成為新的新創公司。

In summary, we view R & D as a high-return investments and a critical driver of our improved through-cycle growth, operating leverage and return on invested capital. With that, I will turn it back to Jim to provide an update on our long-term targets.

總之，我們將研發視為高回報投資，是提高整個週期成長、營運槓桿和投資資本報酬率的關鍵驅動力。接下來，我會將其轉回吉姆，以提供有關我們長期目標的最新資訊。

Thanks, Chuck. I'll continue on Slide 9. Our revised full year outlook yields double digit adjusted EPS and free cash flow growth in 2024 and keeps us well on path to achieving our long-term targets. While we hae seen both tailwinds and headwinds since we first issued those targets, we have also seen how we have adapted to the lower growth environment in 2024 and still raised our earnings guidance through the year. This is a testament to our culture of continuous improvement and our relentless focus on delivering for shareholders in any environment.

謝謝，查克。我將繼續幻燈片 9。我們修訂後的全年展望預計 2024 年調整後每股收益和自由現金流將實現兩位數成長，並使我們能夠順利實現長期目標。儘管自首次發布這些目標以來，我們既看到了順風，也看到了逆風，但我們也看到了我們如何適應 2024 年較低的增長環境，並仍然上調了全年的盈利指引。這證明了我們持續改進的文化以及我們在任何環境下堅持不懈地致力於為股東提供服務的精神。

We also still expect to generate over $8 billion in free cash flow in the next five years, which allows us to further accelerate earnings growth and shareholder returns through disciplined and accretive capital deployment. Our priority remains bolt-on acquisitions to existing growth platforms in areas of demonstrated strength while also enhancing returns to shareholders. We continue to believe share repurchases are a good use of capital, and we expect buybacks in the range of 5 million to 6 million shares for the year, consistent with our recent track record. Further, we announced our first dividend increase in 2023 and plan to continue to grow our dividends in line with earnings and free cash flow. With the powerful combination of the Fortive Business System and disciplined capital deployment, we think the best is yet to come, with an opportunity to roughly double our adjusted EPS and free cash flow over the next five years.

我們也預計未來五年將產生超過 80 億美元的自由現金流，這使我們能夠透過嚴格和增值的資本部署進一步加速獲利成長和股東回報。我們的首要任務仍是在實力雄厚的領域對現有成長平台進行補強收購，同時提高股東回報。我們仍然認為股票回購是一種很好的資本利用方式，我們預計今年將回購 500 萬至 600 萬股股票，這與我們最近的業績記錄一致。此外，我們宣佈於 2023 年首次增加股息，並計劃根據收益和自由現金流繼續增加股息。憑藉 Fortive 業務系統和嚴格的資本部署的強大結合，我們認為最好的時刻尚未到來，我們有機會在未來五年內將調整後的每股收益和自由現金流大約翻一番。

I'll wrap up now on Slide 10. With a strong start to the year and track record of improved through-cycle performance, our continued strategy to build a more durable company is playing out, as evidenced by our strong growth in recurring revenue businesses. We are confident in the achievement of our revised 2024 outlook, which demonstrates the benefits of durable growth drivers and tailwinds from innovation investments, while the de-risking the areas of protracted recovery. Our free cash flow generation continues to be robust, underscoring the differentiation of the Fortive Business System and the compounding capability of our portfolio.

現在我將在投影片 10 上進行總結。憑藉今年的強勁開局以及整個週期業績改善的記錄，我們打造一家更持久的公司的持續策略正在發揮作用，我們經常性收入業務的強勁增長就證明了這一點。我們對實現修訂後的 2024 年展望充滿信心，這證明了持久成長動力和創新投資帶來的推動力的好處，同時消除了長期復甦領域的風險。我們的自由現金流產生持續強勁，凸顯了 Fortive 業務系統的差異化和我們投資組合的複合能力。

By executing the Fortive formula for value creation, we are poised for higher returns on invested capital. The deals we've done since our inception continue to get better, and we remain disciplined on further capital deployment to enhance value creation.

透過執行 Fortive 價值創造公式，我們準備好獲得更高的投資資本回報。我們自成立以來所做的交易不斷變得更好，我們仍然嚴格遵守進一步的資本部署以增強價值創造。

With that, I'll turn it to Elena.

有了這個，我會把它交給艾琳娜。

Thanks, Jim. That concludes our formal comments. Diego, we are now ready for questions.

謝謝，吉姆。我們的正式評論到此結束。迭戈，我們現在準備好提問了。

Thank you. We will now be conducting our question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員說明）

Our first question comes from Scott Davis with Melius Research. Please state your question.

我們的第一個問題來自 Melius Research 的 Scott Davis。請說出你的問題。

Hey, good morning to you, guys. Jim and Chuck and Elena. I wanted to dig in on R&D a little bit. Is it fair to say you're seeing the impact of R&D on the margin line, but not on growth yet? Or is there any way to kind of tease that out a little bit?

嘿，大家早安。吉姆、查克和艾琳娜。我想深入研究研發。可以公平地說，您看到了研發對利潤線的影響，但尚未看到對成長的影響嗎？或者有辦法稍微解決一下這個問題嗎？

Yes, sure. I think really both. What we tried to highlight, and obviously we did last quarter as well, is to give a sense of one, how FBS is really moving a portion of our sustaining engineering capability into innovation, obviously has a long-term compounding effect, but we've been doing that for several years now. And I think some of the examples that we talked about, that Chuck had in the prepared remarks, are certainly evidence of better growth. Fluke's durability here is certainly part of their engagement, their new product development process. We talked about the FDA approval on a product at ASP that takes a little longer in Healthcare to to really see that.

是的，當然。我想確實兩者都有。我們試圖強調的是，顯然我們上個季度也這樣做了，就是要給人一種感覺，FBS 如何真正將我們的部分維持工程能力轉化為創新，顯然具有長期的複合效應，但我們'這樣做已經好幾年了。我認為我們討論的一些例子，查克在準備好的發言中提到的，無疑是更好增長的證據。福祿克在這裡的耐用性當然是他們的參與和新產品開發過程的一部分。我們討論了 FDA 對 ASP 的一款產品的批准，在醫療保健領域需要更長的時間才能真正看到這一點。

So certainly on the gross margin front, because we're pretty disciplined about making sure that products that we launch, if they're replacing products, they replace them at better gross margins, better -- which is really more value to the customer. And then you're seeing also a number of the places where we've got tailwinds relative to growth. Part of that is certainly an innovation story.

因此，當然在毛利率方面，因為我們非常嚴格地確保我們推出的產品，如果它們要替代產品，它們會以更好的毛利率取代它們，更好——這對客戶來說確實更有價值。然後你也會看到一些我們在成長方面處於有利地位的地方。其中一部分肯定是一個創新故事。

Okay. Makes sense, Jim. I'm just looking at slide 9. I'm trying to figure out what's implied here on capital deployment. (multiple speakers) your five-year with buybacks, is that -- this white part that's capital deployment upside. Is that the buybacks plus M&A? Could it be entirely buybacks? Is it possible to get there with the current plan?

好的。有道理，吉姆。我只是在看投影片 9。我試圖弄清楚這裡對資本部署意味著什麼。 （多位發言者）您的五年回購是－這個白色部分是資本部署的優勢。是回購加上併購嗎？可以完全回購嗎？按照目前的計劃可以實現嗎？

Scott, this is Chuck. Clearly, we've already done some M&A, but we do include buybacks as part of our capital deployment. So we think that that, with the bolt-ons that we did in the fourth quarter and what we're likely to do going forward, we still think that we have line sight to that accretion in 2025.

斯科特，這是查克。顯然，我們已經進行了一些併購，但我們確實將回購作為我們資本部署的一部分。因此，我們認為，憑藉我們在第四季度所做的補充以及我們未來可能採取的行動，我們仍然認為我們預計在 2025 年實現這一增長。

Okay. Best of luck, guys. Thank you. I'll pass it on

好的。祝你好運，夥計們。謝謝。我會把它傳給你

Thanks, Scott.

謝謝，斯科特。

Our next question comes from Julian Mitchell with Barclays. Please state your question.

我們的下一個問題來自巴克萊銀行的朱利安·米切爾。請說出你的問題。

Hey, good morning, Jim. Maybe just first off, so just trying to understand the sort of revenue guide for third and fourth quarter. So last year your sales were down low single digits sequentially in Q3, and then up mid single digit in Q4 sequentially. It looks like this you're assuming you're sort of flat sequentially Q3 and then up mid single Q4. But I guess versus last year, you have a smaller backlog today and there's more macro uncertainty, I think it's fair to say. So maybe help us understand sort of the confidence in that revenue outlook, please.

嘿，早上好，吉姆。也許只是首先，所以只是想了解第三季和第四季的營收指南。因此，去年您的銷售額在第三季度連續下降了低個位數，然後在第四季度連續上升了中個位數。看起來你假設你在第三季度連續持平，然後在第四季度中間上升。但我想與去年相比，今天的積壓量較小，宏觀不確定性也較多，我認為這是公平的說法。因此，也許可以幫助我們了解人們對收入前景的信心。

So Julian, I'll make a couple of comments first. What we've got in here is basically normal seasonality, maybe even a little bit less, when you just look at the percentage in the first half versus second half. And also as you go forward from Q3 into Q4, obviously we've got a couple of -- we've got IOS and AHS really showing up as we would expect. And then we've derisked PT going through there. But we think that we've got a pretty reasonable breakout between both of those quarters, in terms of the revenue.

朱利安，我先發表幾點評論。當你只看上半年與下半年的百分比時，我們這裡得到的基本上是正常的季節性，甚至可能稍微少一些。而且，當你從第三季進入第四季時，顯然我們已經得到了一些——我們的 IOS 和 AHS 確實如我們所期望的那樣出現了。然後我們就避免了 PT 穿過那裡的風險。但我們認為，就收入而言，這兩個季度之間的突破相當合理。

Hey, Julian, I would just say on a two-year stack basis, they look pretty similar from where we've been, so that gets into the comp question. We do think -- we will see orders grow here in PT in the second half, so I think it's an important distinction, is that we will see some of that's comps obviously. So we will see a little bit of order growth in the second half and we're confident in that happening.

嘿，朱利安，我只想說，在兩年堆疊的基礎上，它們看起來與我們之前的情況非常相似，所以這涉及了補償問題。我們確實認為，下半年我們將看到太平洋時間的訂單成長，所以我認為這是一個重要的區別，我們將明顯看到其中的一些比較。因此，我們將在下半年看到訂單的一點成長，我們對此充滿信心。

That's helpful. Thank you. And then just a follow up, looking out to the fourth quarter on slide 12. So you have that very hefty margin increase dialed in there sequentially, going from 27% to 29% plus. When we look at sort of last year's fourth quarter, I think the PT margin was flat. If we're looking at sort of the -- some of those sequential moves, I guess, what gives us that confidence on that very large sequential increase? Is it all top line? Or is there something coming in around cost savings? Anything else, perhaps, that's really pushing up that margin so much sequentially?

這很有幫助。謝謝。然後是跟進，展望幻燈片 12 上的第四季度。因此，利潤率連續大幅成長，從 27% 增加到 29% 以上。當我們看看去年第四季的情況時，我認為利潤率持平。如果我們正在考慮其中一些連續的變動，我想，是什麼讓我們對如此巨大的連續成長充滿信心？都是頂線嗎？或是有什麼可以節省成本的措施嗎？也許還有什麼其他因素確實連續大幅推高了利潤率？

So when we look -- when I look at it going from Q3 to Q4, we've got about the same dollar step-up going there, and that's falling through sequentially. Usually don't love sequential margins but about 60% falling through from Q3 to Q4 to get to those margins. That's really approximately the same dynamic that we demonstrated last year, in terms of going up, that sequential incrementals from Q3 to Q4, and that's what we've got built in here. So nothing other than that, it's really about the top one. A little different if you go by segments, but I think you can see it's really just the top line step-up, is the biggest piece of it.

因此，當我們觀察從第三季到第四季時，我們的美元漲幅大致相同，而且是依次下降的。通常不喜歡連續利潤率，但大約 60% 的公司是從第三季到第四季才達到這些利潤率的。這實際上與我們去年展示的動態大致相同，即從第三季度到第四季度的連續增量，這就是我們在這裡構建的。所以除此之外別無他物，這實際上是關於頂級的。如果按細分來看，情況會有所不同，但我認為您可以看到，這實際上只是頂線的提升，是其中最大的一部分。

And that overall yearly incrementals at 60%, we think shows pretty well. I think it speaks to in -- you know, as we've said in the prepared remarks, the proactive restructuring that we did at the beginning of the year, the continued productivity actions that we've taken throughout the year as we've seen things, I think, gives us confidence in that sort of margin expansion. If you think about first half of the year, we were about 100 basis points of margin expansion in the first half. So a really good launch point in which to get to, and as Chuck described, the incremental's very similar to what we've seen in previous years.

我們認為總體每年增量為 60%，這表明情況相當不錯。我認為這說明了——你知道，正如我們在準備好的演講中所說的那樣，我們在年初進行的主動重組，我們全年採取的持續生產力行動，因為我們已經我認為，所見所聞讓我們對這種利潤率擴張充滿信心。如果你想想今年上半年，我們上半年的利潤率擴張了約 100 個基點。因此，這是一個非常好的啟動點，正如查克所描述的，增量與我們前幾年所看到的非常相似。

Great. Thank you.

偉大的。謝謝。

Our next question comes from Nigel Coe with Wolfe Research. Please state your question.

我們的下一個問題來自 Wolfe Research 的 Nigel Coe。請說出你的問題。

Thanks. Good morning, everyone. So, Chuck, I think you mentioned PT flat organically in 3Q and that's obviously a big improvement from down 7. I understand the two year stack, but when we look at the sequential, I think it's up 3% PT q-over-q, which again is unusual. So I am just wondering, some of these delays you called out, the military and government, so are you assuming that comes back in the third quarter? And then maybe on top of that, just talk about what we're seeing in the channel, sell-in versus sell-out. Are we seeing some big impacts right now?

謝謝。大家早安。所以，查克，我認為你在第三季度有機地提到了 PT 持平，這顯然比下降 7 有很大進步。我了解兩年的堆棧，但當我們查看順序時，我認為 PT q-over-q 上漲了 3%，這又是不尋常的。所以我只是想知道，您指出的一些延誤，軍隊和政府，那麼您是否認為這種情況會在第三季度再次出現？然後也許最重要的是，談談我們在通路中看到的情況，賣出與賣出。我們現在看到一些重大影響嗎？

So I think you're right, there's a bit of a step-up, mostly from probably a big deal that moved from Q2 to Q3. Otherwise, I think you'd see PT revenue look about flat, and that's that's the single biggest difference.

所以我認為你是對的，有一些進步，主要是因為可能是從第二季轉移到第三季的一項大交易。否則，我認為你會看到 PT 收入看起來持平，這就是最大的區別。

As Jim mentioned, we expect bookings to return to positive growth in Q3 and I think that also helps. Then you've got some click-down. We've got a couple of businesses in PT, Qualitrol, Anderson and EMC, to name three, that are actually helping with that step-up as well.

正如吉姆所提到的，我們預計預訂量將在第三季恢復正成長，我認為這也有幫助。然後你就可以點擊了。PT、Qualitrol、Anderson 和 EMC 等幾家企業實際上也在幫助實現這一目標。

I would just add, Nigel, that on the inventory level, we do see distributor inventories are largely pretty normalized across all the regions, which does give us confidence in the order rates returning to growth in the second half.

奈傑爾，我想補充一點，在庫存水平上，我們確實看到所有地區的經銷商庫存基本上都相當正常化，這確實讓我們對下半年訂單率恢復增長充滿信心。

Okay. That's helpful. Thanks. And then a quick quick one on EA, the $130 million. I mean, I don't think we're shocked by the EV and battery project delays. But I think the impact on revenues was surprising. I think the second half is lower than the first half. So I'm just wondering to what extent do you think you've now derisked that outlook and sort of how much battery EV revenues are remaining right now in EA?

好的。這很有幫助。謝謝。然後是 EA，1.3 億美元。我的意思是，我認為我們不會對電動車和電池專案的延誤感到震驚。但我認為對收入的影響是令人驚訝的。我認為下半場比上半場要低。所以我只是想知道你認為你現在在多大程度上已經消除了這種前景的風險以及 EA 目前還剩下多少電池電動車收入？

Yes. We don't have a lot. We really derisked EA at this point. I think we've seen for a few quarters -- you know, we had always come into the year knowing that EV in particular would be low. But we did have a number of projects in the funnel that customers were fairly confident that those would happen in the year. As we progressed through the year, those have gotten pushed and pushed. And so we've decided to just mostly de-risk all of that out of the year. So we really -- unfortunately, that's not going to be in the year, but we still -- those orders have not disappeared. What we're really seeing is we haven't seen the step-up in some of the other aspects; broader battery storage is an example.

是的。我們沒有很多。此時我們確實放棄了 EA 的風險。我想我們已經看到了幾個季度的情況——你知道，我們總是在進入這一年時就知道電動車的價格會很低。但我們確實有一些項目在通路中，客戶對這些項目將在今年實現相當有信心。隨著這一年的進展，這些目標不斷被推動。因此，我們決定在今年內主要降低所有這些風險。所以我們真的 - 不幸的是，那不會在今年，但我們仍然 - 這些訂單並沒有消失。我們真正看到的是，我們還沒有看到其他一些方面的進步；更廣泛的電池儲存就是一個例子。

So we're really on track. We're actually ahead of the game on our synergy opportunities in the funnel. So we'll see a little bit -- certainly that's probably going to be a 2025 aspect, too. So so I think the net-net on all that, Nigel, is we've derisked the year. We continue to see the industrial logic of the deal, strategically, product technology, all of those things. But certainly we're putting in a little bit of a pause from a customer and (inaudible) perspective and those -- we continue to believe those will happen sometime in 2025.

所以我們真的步入正軌了。事實上，我們在漏斗中的協同機會方面處於領先地位。所以我們會看到一些——當然這也可能是 2025 年的一個面向。所以，我認為，奈傑爾，我們已經消除了這一年的風險。我們持續關注這筆交易的產業邏輯、策略、產品技術等等。但當然，我們從客戶和（聽不清楚）的角度來看，我們仍然相信這些會在 2025 年的某個時候發生。

Okay. Very helpful. Thanks, Jim.

好的。非常有幫助。謝謝，吉姆。

Our next question comes from Stephen Tusa with JPMorgan Chase. Please state your question.

我們的下一個問題來自摩根大通的史蒂芬·圖薩。請說出你的問題。

Hi, guys, how's it going? Can you just talk about just the industrial, more the industrial software parts of the portfolio, putting Provation aside, what just broadly you're seeing there? I mean, you mentioned a couple of businesses and their growth rates. What's the total growth rate for those businesses, and any theme you're seeing there on customer budgets, perhaps going to more direct AI applications as opposed to ones that are going to weave it in over time?

嗨，夥計們，最近怎麼樣？您能否只談談工業方面，更多的是產品組合中的工業軟體部分，將 Provation 放在一邊，您大致上看到了什麼？我的意思是，您提到了幾家企業及其成長率。這些業務的總成長率是多少，以及您在客戶預算中看到的任何主題，也許會轉向更直接的人工智慧應用程序，而不是隨著時間的推移將其融入其中的應用程式？

Yes, Steve, we had a very good quarter for software. So if were were to think about FAL as an example, mid single digit in the quarter, but ARR was up high single digits growth. So we still believe FAL will be high single digit for the year. We had a little bit of a dip for Provation after a couple of years of what we would call accelerated growth, more on the reoccurring part of the business. Generally, we've seen a lot of budget flush relative -- because of stimulus in 2022 and 2023. We didn't see as much of that flush in this year. But we continue -- we have a number of new customers starting in the second half of the year, particularly in the federal world.

是的，史蒂夫，我們的軟體季度表現非常好。因此，如果我們以 FAL 為例，該季度的 FAL 為中等個位數，但 ARR 則呈現高個位數成長。因此，我們仍然相信今年 FAL 將達到高個位數。經過幾年我們所謂的加速成長（更多的是業務的重複部分）之後，我們的 Provation 經歷了一些下滑。一般來說，由於 2022 年和 2023 年的刺激措施，我們看到了許多相對充裕的預算。今年我們沒有看到那麼多的紅潮。但我們仍在繼續——從今年下半年開始，我們將迎來一些新客戶，特別是在聯邦世界。

So we really feel good about Gordian, in particular, as we get in. Accruent continues to improve. Their order growth rate has been very good for the first half of the year. And ServiceChannel is very good as well. So we see that inflecting in the second half of the year, really a couple of points because we were good in the -- we were high single digit in the first quarter, I think.

所以我們真的對 Gordian 感覺很好，尤其是當我們進入時。應計繼續改善。他們上半年的訂單成長率非常好。ServiceChannel 也非常好。因此，我們看到下半年的情況發生了變化，確實有幾個點，因為我們在第一季表現出色，我認為我們在第一季的表現很高。

So if we just take FAL in general, our gross dollar retention is at 99%, very strong. Our net dollar retention is 102%, 103%. We've seen some really -- we're probably not seeing, as you know, to your question maybe a little bit of new logo distancing than what's normal. But we but as we mentioned in the prepared remarks, both Gordian Cloud and our space intelligence at Accruen , we've now got even better innovation into the market in both those businesses. So we think the demand environment for those opportunities is really good as well. So we feel good about that. On the Intelex side or EH&S side, we continue to see good SaaS growth at Intelex as well. So we're in a -- getting in a high single digit range.

因此，如果我們只考慮整體的 FAL，我們的總美元留存率為 99%，非常強勁。我們的淨美元留存率為 102%、103%。我們確實看到了一些——正如你所知，我們可能沒有看到你的問題，可能比正常情況有一點新標誌的距離。但正如我們在準備好的發言中所提到的，Gordian Cloud 和 Accruen 的空間情報，我們現在在這兩個業務的市場上都取得了更好的創新。因此，我們認為這些機會的需求環境也非常好。所以我們對此感覺良好。在 Intelex 方面或 EH&S 方面，我們也持續看到 Intelex 的 SaaS 良好成長。所以我們正處於一個高個位數的範圍內。

So we're in a good place here. And quite frankly, I think we're making some great -- we're creating some great opportunities for us into the future with a number of innovations that we're excited about, both in the second half and into 2025.

所以我們現在處於一個很好的位置。坦白說，我認為我們正在取得一些偉大的成果——我們正在透過一系列令人興奮的創新為我們的未來創造一些巨大的機會，無論是下半年還是 2025 年。

And then lastly, you guys are doing a pretty good job of delivering on expectations, but it looks like there's a bit of upside needed in consensus to hit that, your long-term target next year. When would you kind of reevaluate that, the $4.50 number or, you know, act to get there, whether it's kind of paying down debt or like when would we kind of reevaluate that EPS target? Because the street right now is obviously comfortably below that, not moving very much.

最後，你們在實現預期方面做得非常好，但看起來需要共識才能實現明年的長期目標。你什麼時候會重新評估 4.50 美元的數字，或者你知道，採取行動實現這一目標，無論是償還債務還是我們什麼時候會重新評估 EPS 目標？因為現在的街道明顯低於該數值，移動幅度不大。

Yes. I mean, I think we've always thought $4.50 was aspirational but achievable. We talked about the confidence in the prepared remarks. We've certainly got some tailwinds and headwinds. A number of the tailwinds we talked about, like Healthcare and the new product innovation and certainly some some of the software businesses I just described. A little bit of headwind, but there's a couple -- we've talked for a couple of quarters now that there's a few ways to get there. The buyback -- maybe a little bit accelerated on the buyback front. Obviously, M&A, EA is going to be a little bit of a headwind, but our bolt-ons, the other four bolt-ons we did last year are all accelerated and are over-delivering as well.

是的。我的意思是，我認為我們一直認為 4.50 美元是理想的但可以實現的。我們談到了對準備好的講話的信心。我們當然會遇到一些順風和逆風。我們討論了一些有利因素，例如醫療保健和新產品創新，當然還有我剛才描述的一些軟體業務。有點逆風，但有幾個——我們已經討論了幾個季度了，現在有幾種方法可以實現這一目標。回購－回購方面可能有點加速。顯然，併購、EA 將會有點逆風，但我們的補充，我們去年所做的其他四個補充都在加速，並且也超額交付。

So yes, we'll certainly update that number. But we as we said, and we've said continually, if I think about the starting point the year, we're going to beat our EPS this year, but we're going to get there a little differently than we anticipated in January.But what we know to be true is we're still going to beat that original EPS target a number of ways. We will always have tailwinds and headwinds, and we'll certainly give a much -- an update on that as we get closer to 2025 for sure.

所以是的，我們肯定會更新這個數字。但正如我們所說，而且我們一直在說，如果我考慮今年的起點，我們今年的每股收益將超過我們的每股收益，但我們的目標將與我們一月份的預期略有不同但我們所知道的是，我們仍然會透過多種方式超越最初的每股盈餘目標。我們總是會有順風和逆風，隨著 2025 年的臨近，我們肯定會提供更多更新。

Great. Thanks a lot.

偉大的。多謝。

Thank you. Our next question comes from Jeffrey Sprague with Vertical Research Partners. Please go ahead with your question.

謝謝。我們的下一個問題來自垂直研究合作夥伴的 Jeffrey Sprague。請繼續你的問題。

Hello, everyone. I hope everybody is doing well. Hey, I just wanted to put a finer point on Tek specifically, make sure at least I have it dialed right, maybe for the benefit of others also. Can you just clarify what is the expected performance for Tek specifically for the year? And what was it previously terms of year-over-year revenue decline?

大家好。我希望每個人都做得很好。嘿，我只是想對 Tek 提出更具體的觀點，確保至少我撥對了，也許也是為了其他人的利益。您能具體說明一下 Tek 今年的預期表現嗎？之前收入年減的情況是什麼？

Just on a core growth at Tek, we now expect it to be down low double digit, in terms of revenue, and previously we had expected it to be down mid single digit, mid single digit plus.

僅就泰克的核心成長而言，我們現在預計其收入將下降兩位數，而此前我們預計將下降中個位數、中個位數以上。

Jeff, just a little bit of color on that, probably. I would say the two things that have really changed: one, we described some of that Mil/Gov business moving out and then after moving a few times, we decided to take some of that out.

傑夫，也許只是一點點色彩。我想說的是真正發生了變化的兩件事：第一，我們描述了一些軍事/政府業務的遷移，然後在遷移了幾次之後，我們決定將其中的一些刪除。

The second piece is China. We're not seeing the recovery in China we had anticipated. As you know, the Chinese government had put a number of incentives into play in the back half of the -- or the end of the first quarter. One of those is around replacement investments. We thought we'd get more traction in the economy than it has, and so it's really those two things that are the big changes relative to what we've seen. So as Elena just said, we're going to be down low double digit. Now, just -- if we step back for three years, that's still on an average of mid single digit growth over -- a three year (inaudible). We'll still be even with that number of mid single digit.

第二塊是中國。我們沒有看到中國的復甦。如您所知，中國政府在下半年或第一季末推出了一系列激勵措施。其中之一是關於替代投資。我們認為我們會在經濟中獲得比現在更大的牽引力，所以相對於我們所看到的情況來說，確實是這兩件事是巨大的變化。正如埃琳娜剛才所說，我們的業績將下降兩位數。現在，如果我們退後三年，三年的平均成長率仍然是中等個位數（聽不清楚）。我們仍然會與中間個位數的數字持平。

And then maybe just -- I don't have all the comps in front of me. I'll dig them out after the call. But just on the progression into the remainder of the year for Tek, you said orders are expected to be up. Will that convert relatively quickly to revenues? How would you expect the revenues to kind of play sequentially off this Q2 level?

然後也許只是——我面前沒有所有的比賽。打完電話我會把它們挖出來。但就泰克今年剩餘時間的進展而言，您表示訂單預計會增加。這會相對較快地轉化為收入嗎？您預計第二季的營收將如何繼續發揮作用？

I would say on a year-over-year basis, our expectation for Tek for year over year is it's going to be down in that low double digit range for Q3 and Q4. There's a slight uptick, as obviously some of the orders that we've already seen in Tek will turn to revenue. But it's really still at a down -- call it low double digit in both Q3 and Q4 on a core basis.

我想說，與去年同期相比，我們對 Tek 的預期是，第三季和第四季的業績將在兩位數的低點範圍內下降。略有上升，因為顯然我們在 Tek 看到的一些訂單將轉化為收入。但它實際上仍然處於下降狀態——在核心基礎上，第三季和第四季都處於低兩位數水平。

We are seeing some longer cycle aspects of the business, you know, that are setting up for ordering or shipments in the late part of the year and early part of 2025.

您知道，我們看到業務中有一些週期較長的方面，這些方面正在準備在今年年底和 2025 年年初進行訂購或發貨。

Got it. Thanks. I'll leave it there. Appreciate it.

知道了。謝謝。我會把它留在那裡。欣賞它。

Our next question comes from Deane Dray with RBC Capital Markets. Please state your question.

我們的下一個問題來自加拿大皇家銀行資本市場部的迪恩德雷 (Deane Dray)。請說出你的問題。

Thank you. Good day, everyone. Hey, I wanted to circle back. It's related to Steve's earlier question, but we're hearing more issues in the software side about risk of churn and disintermediation by some cheaper AI-enabled products. This has come up on other calls. Are you seeing any issues and maybe specifically for Accruent and ServiceChannel? Thanks.

謝謝。大家好。嘿，我想繞回來。這與史蒂夫之前的問題有關，但我們在軟體方面聽到了更多關於一些更便宜的人工智慧產品的流失和脫媒風險的問題。這在其他電話中也出現過。您是否發現任何問題，可能是專門針對 Accruent 和 ServiceChannel 的問題？謝謝。

We're not. And in fact, both Accurent and ServiceChannel are going to accelerate through the year from a core growth perspective. So this has always dated back to our workflow strategy, Deane, in many respects, where we really were working really hard in our assessments of businesses, that we wanted ones that had real vertical expertise, some of which was built on our hardware experience. And so we've got real opportunity to provide some AI solutions into our workflows, as well. We mentioned Gordian Cloud as a good example. We now bring together all of Gordian's solutions into one cloud offering.

我們不是。事實上，從核心成長的角度來看，Accurent 和 ServiceChannel 都將在今年加速發展。因此，這可以追溯到我們的工作流程策略，Deane，在很多方面，我們在業務評估中確實非常努力，我們希望擁有真正的垂直專業知識的人，其中一些是建立在我們的硬體經驗之上的。因此，我們也有真正的機會在我們的工作流程中提供一些人工智慧解決方案。我們提到 Gordian Cloud 就是一個很好的例子。現在，我們將 Gordian 的所有解決方案整合到一個雲端產品中。

So we feel really good about the position of those businesses. We are always looking for competitive threats, no matter whether it's AI or any other competitive threat. [Also things] of scale positions that we've got in some of those places, while they're nichey, they are good positions. FAL, we're the number one player in the market, as an example. Provation would be the same, so as -- moving to the Healthcare side of the house.

因此，我們對這些企業的地位感到非常滿意。我們一直在尋找競爭威脅，無論是人工智慧還是任何其他競爭威脅。 [還有]我們在其中一些地方擁有的規模地位，雖然它們是小眾的，但它們是很好的地位。FAL，舉個例子，我們是市場上的第一大玩家。證明是一樣的，所以——搬到房子的醫療保健一側。

So I think we're in a good place to take advantage of AI. We mentioned in the prepared remarks, seven new ideas that we're working through in the business relative to just this last quarter with our partnership with Pioneer Square Labs. So we're going to continue to really look for AI as a solution set. But to your specific question, we've not seen any disintermediation or competitive threat at this point.

所以我認為我們處於利用人工智慧的好地方。我們在準備好的演講中提到，我們正在與 Pioneer Square Labs 合作，在上個季度的業務中實現七個新想法。因此，我們將繼續真正尋找人工智慧作為解決方案集。但對於你的具體問題，我們目前還沒有看到任何脫媒或競爭威脅。

Great. That's really helpful. And then one for Chuck. Maybe just give us some color and context around the lower tax guide for the second half. What's driving that? Is that mix? Is there anything one off like a reversal of an accrual? Just if you could share that, thank you.

偉大的。這真的很有幫助。然後是給查克的。也許只是給我們一些下半年較低稅收指南的背景和背景。是什麼推動了這一點？那是混合嗎？是否有像應計費用沖銷這樣的一次性事項？如果你能分享一下，謝謝。

Well, there's always a lot of things going in tax, Deane. But the big thing by far here is to move out of the Pillar Two for us. The minimum global tax rate isn't going to impact us this year. And so that pushed out, and that's the single biggest thing.

嗯，稅收方面總是有很多事情，迪恩。但到目前為止，最重要的是我們要擺脫第二支柱。全球最低稅率今年不會對我們產生影響。所以這被推出了，這是最重要的事情。

Thank you. And our next question comes from Joe Giordano with TD Cowen. Please state your question.

謝謝。我們的下一個問題來自 Joe Giordano 和 TD Cowen。請說出你的問題。

Thanks for taking my questions. How would you respond to someone who says that you guys are being a little bit late to the party in some of these cuts to some of the cyclical markets? Like when I see Tek, this is two quarters in a row, but like some of your competitors have had [done it]. So I think you're arriving at the right place, I guess are you getting there a little bit slowly? And then like with EA, and I believe we were talking almost $200 million at the beginning of the year, right? And now we're at $130 million? So how would you respond to that kind of comment?

感謝您回答我的問題。如果有人說你們對某些週期性市場的削減有點晚了，你們會如何回應？就像我看到 Tek 時一樣，這是連續兩個季度，但就像你的一些競爭對手一樣[做到了]。所以我認為你到達了正確的地方，我想你到達那裡的速度有點慢嗎？然後就像 EA 一樣，我相信我們在年初談論了近 2 億美元，對吧？現在我們的營收是 1.3 億美元？那麼你會如何回應這種評論呢？

Yes, we were closer to 185, 190-ish, I think, but that's probably close. Some of that's FX. I wouldn't say we're late to the party. But obviously, what we've seen is some things that are abnormal to what we've seen in the past. As an example, even last year when orders were tough, that Mil/Gov segment was really strong. We've got a multimillion dollar repeat order that moved that we did in the second quarter of last year, that has moved into the second half and we've cut in half. So that's an unusual -- we had real good line of sight to that. That's a that's a piece of the move. The other is we've typically seen, I think over 20 years, the Chinese government's actions get traction. So I think those things maybe are a little unique to us, but maybe not. So I think we certainly got prepared for it from a cost perspective, and that's why you still continue to see strong margin and EPS growth for the year, but I think at this point it's appropriate, getting into the year, with six months left, to take stock for where we're at, and that's our story.

是的，我認為我們更接近 185、190 左右，但這可能已經很接近了。其中一些是外匯。我不會說我們參加聚會遲到了。但顯然，我們所看到的一些事情與我們過去所看到的東西不正常。舉例來說，即使去年訂單困難，軍事/政府部門也非常強勁。我們收到了一份價值數百萬美元的重複訂單，與去年第二季的訂單一樣，已經進入下半年，我們已經削減了一半。所以這很不尋常——我們對此有很好的視野。這就是這項舉措的一部分。另一個是我們通常看到的，我認為20多年來，中國政府的行動得到了關注。所以我認為這些東西對我們來說可能有點獨特，但也可能不是。因此，我認為我們當然從成本角度做好了準備，這就是為什麼今年你仍然繼續看到強勁的利潤率和每股收益增長，但我認為現在是合適的，進入今年，還剩下六個月，評估我們所處的位置，這就是我們的故事。

And if I'm thinking on M&A now, I'm guessing you guys -- you just did a big deal, you're buying back some stock. But if you if your M&A from here is going to be a little bit closer to home, closer to the existing assets, like how are you thinking about where you want to go like near term? Is it more about like, hey, this is something that's under pressure, we can get a good deal, but there might be downside? Or are you more inclined to pay higher for something that is moving in the right direction and ? You feel more confident with the near-term growth outlook? What's that calculus like internally?

如果我現在考慮併購，我猜你們剛剛做了一筆大交易，正在回購一些股票。但是，如果您在這裡進行的併購將離家更近一些，更接近現有資產，那麼您如何考慮近期想去的地方？是不是更多的是，嘿，這是面臨壓力的事情，我們可以達成一筆好交易，但可能會有負面影響？或者，您是否更傾向於為朝著正確方向發展的事物支付更高的費用？？您對近期成長前景更有信心嗎？這個微積分的內部是什麼樣的呢？

Well, I take stock of what we've done over the last several years, and we typically do one or two deals a year, from a bolt-on perspective. But when you think about the recurring revenue that we have now, 42% of sales growing at low double digit, all of that is acquired assets. So we're really seeing the benefit and the resiliency of the acquisition strategy that we have. And now that we built these foundations, those four bolt-ons that we did last year all into the workflows and growth platforms we have today, we think we're just seeing the benefit of that. So those are real strong opportunities for us; we'll continue to do that.

嗯，我盤點了我們過去幾年所做的事情，從補充的角度來看，我們通常每年都會進行一到兩筆交易。但當你考慮我們現在擁有的經常性收入時，42% 的銷售額以低兩位數成長，所有這些都是收購的資產。因此，我們確實看到了我們所擁有的收購策略的好處和彈性。現在我們已經建立了這些基礎，我們去年所做的這四個附加項目都已融入我們今天擁有的工作流程和成長平台中，我們認為我們剛剛看到了其中的好處。所以這些對我們來說是真正強大的機會；我們將繼續這樣做。

But again, we're going to be selective. And while we're we remain busy on things, you're not seeing a lot of deals transacted this year thus far. And I think that's because you continue to see seller interests very often not aligned with buyer interests. And so we'll continue to be disciplined. And we're in a great position, given the number of deals we did in 2023, to continue to work on those and make [them a great partner for us] like we have the deals that were in 2019 and 2020 and 2021 that you're seeing the benefit of play out in 2024 for us.

但同樣，我們將有選擇性。雖然我們仍然忙於處理事情，但今年到目前為止，您還沒有看到很多交易成交。我認為這是因為你經常看到賣家的利益與買家的利益不一致。因此，我們將繼續遵守紀律。考慮到我們在2023 年完成的交易數量，我們處於有利位置，可以繼續致力於這些交易，並使[他們成為我們的優秀合作夥伴]，就像我們在2019 年、2020 年和2021 年進行的交易同樣我們看到了 2024 年比賽的好處。

Thanks, guys.

謝謝，夥計們。

Our next question comes from Jamie Cook with Truist. Please state your question.

我們的下一個問題來自傑米庫克和 Truist。請說出你的問題。

Good morning. Thanks for the question. One, just on your guide for Europe and for Asia, you maintained your core growth guide for both of those geographies. However, sales core growth deteriorated in the second quarter relative to the first quarter for both of those regions. So just trying to understand confidence level or is there recovery expected in the back half of the year?

早安.謝謝你的提問。第一，就在歐洲和亞洲的指南中，您保留了這兩個地區的核心成長指南。然而，這兩個地區第二季的核心銷售成長均較第一季惡化。那麼只是想了解信心程度還是預計下半年會出現復甦呢？

And then my second question, Not to be mid nitpicky, but the IOS margins were down 20 basis points year over year. You still had core growth. You had positive pricing. You are maintaining your guide for the year. But was there any nuance in the second quarter that drove the margins down year over year? Thank you.

然後是我的第二個問題，不是吹毛求疵，IOS 利潤率較去年同期下降了 20 個基點。你仍然有核心成長。你的定價是積極的。您正在維護今年的指南。但第二季是否存在任何細微差別導致利潤率年減？謝謝。

Thanks, Jamie. I'll maybe (inaudible) this with Chuck. Yes, I mean, we brought Europe down a little bit. It's a little bit within the low single digit framework. So it's down a little bit from where we're at. We feel -- we see Healthcare has been really good in Europe, as we see it continued. So there are some pieces of Europe that have remained pretty good. So on a core perspective, we brought it down a little bit. North America will be our highest growth region this year for sure, and that just speaks to all the parts of the business within North America were a greater chunk of our recurring revenue [business]. But on the IOS margins --

謝謝，傑米。我也許會（聽不清楚）跟查克一起。是的，我的意思是，我們讓歐洲陷入了一些低迷。它有點在低個位數框架內。所以它比我們現在的位置下降了一點。我們覺得——我們看到歐洲的醫療保健非常好，而且我們看到它還在繼續。所以歐洲的一些部分仍然相當不錯。因此，從核心角度來看，我們把它降低了一點。北美肯定將是我們今年成長最快的地區，這說明北美業務的所有部分都占我們經常性收入的很大一部分[商業]。但在IOS的邊緣--

Well, IOS margins are at like 34% or so, down nominally with a little bit of mix but that's on a two year stack. [We think they are up] 300 basis points. So we're very happy with those margins and I would expect that we'll continue to see that margin expansionI continue at the normal rate in Q3 and Q4.

嗯，IOS 的利潤率約為 34% 左右，名義上略有下降，但這是兩年的情況。 [我們認為上漲了] 300 個基點。因此，我們對這些利潤率非常滿意，我預計我們將繼續看到利潤率擴張——第三季和第四季繼續以正常速度成長。

And sorry, just a follow-up. You didn't answer on Asia, the guide? It's maintained even though Asia got worse. It doesn't sound like China is getting better.

抱歉，只是後續行動。導遊，你沒有回答亞洲問題嗎？儘管亞洲的情況變得更糟，但它仍然得以維持。聽起來中國沒有好轉。

China got worse within the guide, for sure. The rest of Asia is a little bit better, so I think where we stand now, China is now just about 10% of our sales in our high-growth markets. Ex China are now 14% of our sales. So we've really got a -- we're seeing good growth. We mentioned in the prepared remarks that India was a little slow in the quarter, but we see good India growth the rest of the year, as one example. So we just think that the other parts of Asia will -- you know, we mentioned in the prepared remarks that Japan was pretty good.So we think the other parts of Asia will hold up, as they have in China, but we did -- as part of our de-risking, particularly in PT, we didn't take China down for the year.

當然，中國在指南中變得更糟。亞洲其他地區的情況要好一些，所以我認為就我們目前的情況而言，中國目前僅占我們高成長市場銷售額的 10% 左右。目前，除中國以外的銷售額占我們銷售額的 14%。所以我們確實看到了良好的成長。我們在準備好的發言中提到，印度在本季有點緩慢，但我們看到印度在今年剩餘時間成長良好，舉個例子。所以我們只是認為亞洲其他地區會——你知道，我們在準備好的發言中提到日本相當不錯。作為我們去風險的一部分，特別是在PT方面，我們今年沒有拿下中國。

Thank you.

謝謝。

Thank you. And our next question comes from Rob Mason with Baird. Please state your question.

謝謝。我們的下一個問題來自 Rob Mason 和 Baird。請說出你的問題。

Yes, good morning. Just wanted to see if you could comment on your pricing outlook for the balance of the year. A couple of your segments saw a step-up. AHS and IOS saw a step-up in pricing during the quarter and just how you're thinking about pricing for the balance of the year?

是的，早安。只是想看看您是否可以對今年剩餘時間的定價前景發表評論。你的幾個部分看到了進步。AHS 和 IOS 在本季的定價有所提高，您如何考慮今年剩餘時間的定價？

Hey, Rob. We're thinking overall 2% to 3% is a pretty good number, and that's been coming down, the amount of price versus, you know, last year and the year before. What we're seeing about now is what I would expect to see in the second half. Keep in mind that Healthcare, we worked very hard to be able to get price into our contracts and you're starting to see that. So I think that pretty much holds going forward, but in that 2% to 3% range in the second half.

嘿，羅布。我們認為總體來說 2% 到 3% 是一個相當不錯的數字，而且與去年和前年相比，價格一直在下降。我們現在所看到的正是我期望在下半年看到的。請記住，在醫療保健領域，我們非常努力地將價格納入我們的合約中，您已經開始看到這一點。因此，我認為未來這一情況基本上成立，但下半年將在 2% 到 3% 的範圍內。

And then just a follow-up around EA., I'm curious, Jim or Chuck, just how are you thinking about what's possible, the potential in terms of capturing synergies, some of the commercial synergies you've talked about as you go into 2025, against a -- if we end up at $130 million in revenue this year, and you talked about that funnel maybe doubling and smaller orders. What what kind of contribution may we be thinking about?

然後是關於 EA 的後續行動。我們今年的收入達到1.3 億美元，並且您談到該漏斗可能會增加一倍並且訂單會減少。我們可能會考慮什麼樣的貢獻？

Well, we'll see what the number ends up being, because some of it will be what we end up transacting here at the end of the year. But you know, that number is, we think, somewhere in the neighborhood of $10 million to $20 million right now and growing. So that's the funnel. So as we -- we've got, we won't collect all of that funnel, but that funnel is starting to build here. So we feel good about it. We're ahead of the game. Let's see where we transact the remaining part of the year and as we get into next year. But I think what we've seen and as mentioned before, is the technology's good, customers like the business. We haven't seen -- very little cancellations from orders. It's just as we know, a number of the customers have just delayed their investment cycle, but we still believe new battery chemistries are critical to battery storage, data center and battery storage is still going to be really important. EV mobility eventually will come back. So a number of the long-term growth drivers are still there, but we certainly are seeing a momentary lapse in some of the customer investments for sure.

好吧，我們會看看最終的數字是多少，因為其中一些將是我們年底在這裡最終交易的。但我們認為，這個數字目前約為 1,000 萬至 2,000 萬美元，而且還在持續成長中。這就是漏斗。因此，正如我們所知道的，我們不會收集所有的漏斗，但這個漏斗正在開始在這裡建立。所以我們對此感覺良好。我們在比賽中處於領先地位。讓我們看看今年剩餘時間和明年的交易情況。但我認為我們所看到的以及正如之前提到的，技術是好的，客戶喜歡這項業務。我們還沒有看到訂單取消的情況非常少。正如我們所知，許多客戶剛剛推遲了投資週期，但我們仍然相信新的電池化學物質對電池儲存、資料中心和電池儲存至關重要。電動車出行最終將會回歸。因此，許多長期成長動力仍然存在，但我們肯定會看到一些客戶投資的暫時衰退。

I see. Thank you.

我懂了。謝謝。

Our next question comes from Andy Kaplowitz with Citigroup. Please state your question.

我們的下一個問題來自花旗集團的安迪·卡普洛維茨。請說出你的問題。

Hello, everyone. Jim, you mentioned the 60% incrementals for the year was obviously quite good and partially based on restructuring you did coming into the year. But what does that kind of performance tell you for how you might be able to bridge toward that $4.50 next year? Do you still see a good likelihood of above-average incrementals in next year's Healthcare, for instance, continues to recover and your short-cycle businesses do start to come back?

大家好。吉姆，您提到今年 60% 的增量顯然相當不錯，部分是基於您今年進行的重組。但這種表現告訴您什麼，您明年如何達到 4.50 美元？例如，您是否仍然認為明年的醫療保健業務增量超過平均水平的可能性很大，繼續復甦，並且您的短週期業務確實開始復甦？

Yes. Andy, this is Chuck. We see -- first of all, we've got two segments, IOS and AHS, that are really on a good path into what we wanted them to be in 2025. And then as you noted, well, we did productivity and cost savings out last year and we'll be doing more of that in the back half of this year. It's not as dramatic, but to get onto the right glide path into that 2025 number. So we'll alter, spend less, and slow the rate of spending in there and then take a little bit of cost of (inaudible) in PT.

是的。安迪，這是查克。我們看到，首先，我們有兩個細分市場，IOS 和 AHS，它們確實正在朝著我們希望在 2025 年實現的目標邁進。正如您所指出的，我們去年提高了生產力並節省了成本，今年下半年我們將在這方面做得更多。雖然沒有那麼戲劇化，但進入了 2025 年數字的正確下滑路徑。因此，我們將進行改變，減少支出並放慢支出速度，然後在 PT 中採取一點（聽不清楚）成本。

Got it. It's interesting. No questions on AHS. They must be doing something right So let me just ask you, then. Consumables up double digits, hospitals seemed to recover in the U.S. Does this seem like an extended period now of good growth for AHS? And how are you performing in terms of improving the ASP business in China?

知道了。這很有趣。沒有關於 AHS 的問題。他們一定在做正確的事情所以讓我問你。消耗品增加了兩位數，美國的醫院似乎正在復甦。你們在改善中國 ASP 業務方面表現如何？

Yes, you know, the ASP business has been on a good run for several quarters. And obviously, we had some noise with the North American channel transition and the exit of Russia and a number of [states]. When you look across the -- you know, now the last several years, that's a good growth and we believe strongly that that's the benefit of the business. We're just now getting the innovation ball going, right? We mentioned the steam sterilization product that we just launched, which is a 7 second BI. We're in a really good place from an innovation front. We'll start to get that innovation flywheel moving. The team has done a great job from a commercial success perspective. So we think ASP is an important part of the transition in health, and on the backs of Censis's SaaS revenue growth, we mentioned on the prepared remarks, the Provation SaaS business was up over 50%.

是的，您知道，ASP 業務幾個季度以來一直表現良好。顯然，我們對北美通路轉型和俄羅斯退出等議題產生了一些噪音。[國]。當你縱觀過去幾年時，你知道，這是一個良好的成長，我們堅信這是業務的好處。我們現在才剛啟動創新球，對嗎？我們提到了我們剛推出的蒸氣滅菌產品，它是一個7秒BI。從創新方面來看，我們處於一個非常好的位置。我們將開始啟動創新飛輪。從商業成功的角度來看，該團隊做得非常出色。因此，我們認為 ASP 是健康領域轉型的重要組成部分，在 Censis SaaS 收入成長的支持下，我們在準備好的發言中提到，Provation SaaS 業務成長了 50% 以上。

So we've got a number of good things and obviously, we continue to improve the margins. The fall-through, as you described in the previous question, is good there. So we think we're on a good run here. There will always be some puts and takes, but we feel good about it. We feel good about where we're at, and the team is doing a really nice job from an execution perspective.

所以我們有很多好的東西，顯然我們的利潤率還在繼續提高。正如您在上一個問題中所描述的那樣，失敗是很好的。所以我們認為我們在這裡進展順利。總是會有一些調整和調整，但我們對此感覺良好。我們對自己所處的位置感覺良好，從執行的角度來看，團隊做得非常好。

Appreciate the color.

欣賞顏色。

Our next question comes from Joe O'Dea with Wells Fargo. Please state your question.

我們的下一個問題來自富國銀行的 Joe O'Dea。請說出你的問題。

Hi, thanks for taking my question. Can you just sort of characterize a little bit what you've seen over the past three months when we talk about EA? I think on the sort of Sensing side within PT you also noted some softer trends in industrial and factory automation demand. Really trying to understand the degree to which there were expectations for things to get a little bit better, and that just hasn't happened as things pushed to the right or the degree to which things kind of softened sequentially over the course of the quarter, and then what you attribute that to. So any color there would be helpful.

您好，感謝您提出我的問題。您能否簡單描述一下過去三個月我們談論 EA 時您所看到的情況？我認為在 PT 的感測方面，您也注意到工業和工廠自動化需求的一些疲軟趨勢。真正試圖了解人們對情況好轉的預期程度，但隨著情況向右發展或在本季度中情況逐漸軟化的程度，這種情況並沒有發生，然後你將其歸因於什麼。所以任何顏色都會有幫助。

Please stand by, we would need to just reconnect the speakers. Stand by, please.

請稍候，我們需要重新連接揚聲器。請稍等。

Thank you for your patience, ladies and gentlemen. We'll continue with the question-and-answer session. Go ahead, Mr. O'Dea.

女士們、先生們，感謝您的耐心等待。我們將繼續問答環節。繼續吧，奧黛先生。

Hi. Thanks a lot. I just thought you hated my question, but I'll try again. [laughter] No worries. Basically just wanted to understand trends over the course of the quarter. I think we see kind of a reset on expectations of EA. I think in prepared remarks, you talked about within PT in the Sensing side, a little bit softer activity in industrial and factory automation. And so I wanted to understand whether what you saw over the course of the quarter was sequential softening or if it was more a matter of earlier expectations for things to get better, and that's just kind of pushing out to the right. So overall just how you would characterize those trends over the course of the quarter.

你好。多謝。我只是以為你討厭我的問題，但我會再試一次。[笑聲]不用擔心。基本上只是想了解本季的趨勢。我認為我們對 EA 的期望有所重置。我認為在準備好的發言中，您談到了 PT 感測方面的活動，即工業和工廠自動化領域的一些溫和活動。因此，我想了解您在本季所看到的情況是否是連續疲軟，或者是否更多的是早期對情況好轉的預期，而這只是一種向右推動的問題。總的來說，您將如何描述本季的這些趨勢。

Yes, obviously, I would say Healthcare was good throughout the quarter. IOS, obviously, with the software businesses, those are pretty consistent throughout the quarter. Fluke, on the POS front, actually got better in June. So that was -- we haven't talked about Fluke, but we had a very good quarter with Fluke, and should have a good year with Fluke. Our industrial business, the industrial group business at Fluke, was actually up mid single digit in the quarter. So we feel good about some of the trends there. That's a [decent front] on the non CapEx side of our business.

是的，顯然，我想說整個季度的醫療保健狀況都很好。顯然，IOS 以及軟體業務在整個季度都非常穩定。Fluke 在 POS 方面實際上在 6 月有所好轉。所以，我們還沒有談論福祿克，但我們與福祿克度過了一個非常好的季度，並且應該與福祿克一起度過美好的一年。我們的工業業務，即福祿克的工業集團業務，本季實際上成長了中個位數。所以我們對那裡的一些趨勢感到滿意。在我們業務的非資本支出方面，這是一個[不錯的方面]。

What we really saw in most cases was really the larger projects moving. So we tend to close those later in the quarter, is the nature of some of -- the way that business transacts. Mil/Gov tends to be a little later in the quarter. And we just saw those things push to the right. Now, some of those things have been pushing for a few -- as an example, on the EA front, some of those projects were being pushed from previous quarters.

在大多數情況下，我們真正看到的是更大的項目正在移動。因此，我們傾向於在本季稍後關閉這些業務，這是某些業務交易方式的本質。Mil/Gov 的發佈時間往往會在本季稍晚。我們剛剛看到那些東西往右推。現在，其中一些項目已經被推動了——例如，在 EA 方面，其中一些項目是從前幾季開始推動的。

So the de-risking really came out of really three things. Number one was seeing those projects continuing to get pushed and now maybe being out of the shipment window at Tek, maybe more broadly a little bit more slower OEMs in some of the dispensing businesses. And I would say finally is the China recovery being pushed out. Those three things. And so I would say that what falls into your expectation versus just what we saw, most of it was things we saw -- maybe there's one expectation front probably of the China aspect where we thought China might get better here in the quarter and it hasn't, and now we anticipate that recovery is going to be slower through the year.

因此，去風險化其實源自於三件事。第一是看到這些項目繼續推進，現在可能已經超出了 Tek 的發貨窗口，更廣泛地說，可能是一些分配業務中 OEM 的速度稍慢一些。最後我要說的是，中國的復甦被延後了。這三件事。因此，我想說的是，與我們所看到的相比，落入您的預期的大部分是我們所看到的——也許有一個可能是中國方面的預期，我們認為中國在本季度可能會變得更好，但它並沒有不是，現在我們預計今年的復甦將會更加緩慢。

That's helpful color. And then just related, in the conversations you're having with customers and as they sort of push things to the right a little bit, what you're hearing from them, in terms of why are they doing that? What are they waiting for? How much of it is kind of macro and election and interest rates or other things that they're paying attention to, and waiting on some spending as a result?

這是有用的顏色。然後，在您與客戶的對話中，當他們將事情稍微推向正確的時候，您從他們那裡聽到了什麼，為什麼他們這樣做？他們還在等什麼？其中有多少是宏觀、選舉、利率或其他他們正在關注的事情，並等待一些支出的結果？

Yes, I would call it a combination of uncertainty related to the maybe geo-political a little bit. That's kind of a global point, not as much a U.S. point, but certainly around the world. That's probably part of it. And I think some of it is macro uncertainty. Obviously, PMI is starting to recover, but maybe not around the world as quickly as possible. And so I think people certainly decided to hold off a little bit. And certainly on the Mil/Gov front, that's got a government spending aspect to it, uncertainty of what the defense budget is going to be. Obviously, much of the defense spending is going towards production type things and not -- and the one thing you can delay is the R&D investments. And so a lot of that pushing out of the Mil/Gov piece is that R&D investment, that is much more easy to push than obviously the production side of things.

是的，我將其稱為與地緣政治相關的不確定性的組合。這是一個全球性的問題，而不是美國的問題，但肯定是全世界的問題。這可能是其中的一部分。我認為其中一些是宏觀不確定性。顯然，PMI 正在開始復甦，但可能不會在全球範圍內盡快復甦。所以我認為人們肯定決定推遲一下。當然，在軍事/政府方面，這與政府支出有關，國防預算的不確定性。顯然，大部分國防支出都用於生產型產品，而不是用於生產型產品，而你可以推遲的一件事就是研發投資。因此，軍用/政府部門的大部分推動都是研發投資，這比生產方面顯然更容易推動。

That's helpful. Thank you.

這很有幫助。謝謝。

Thank you. And there are no further questions at this time. I'll hand the floor back over to Jim Lico for final comments. Thank you.

謝謝。目前沒有其他問題。我將把發言權交還給吉姆·利科（Jim Lico）徵求最後意見。謝謝。

Diego, thank you, and thanks, everyone, for being on the call. We appreciate your patience as we switch phone lines here and we'll try to figure out what happened there. But obviously, we've got plenty of time for follow-up calls and opportunity to catch up to give you more clarity as to what we are talking about today.

迭戈，謝謝你，也謝謝大家參加電話會議。感謝您的耐心等待，我們將在這裡切換電話線路，我們將盡力找出那裡發生了什麼。但顯然，我們有足夠的時間進行後續電話和跟進的機會，讓您更清楚地了解我們今天所討論的內容。

As we said in the prepared remarks, we feel the portfolio we've built -- a lot of resiliency. You see that, as I mentioned on the recurring revenue growing in low double digits, we feel strongly about the importance of de-risking the year while at the same time, really being able to drive double digit EPS growth, double digit free cash flow on a little bit lower revenue than we anticipated. Feel good about where we're at right now strategically, as we talked -- a number of points we made on the call, as we are seeing some market things, but obviously, our share position and our continued ability to innovate has never been greater. And so we feel out portfolio is in good shape to do that on a continuous basis.

正如我們在準備好的演講中所說，我們感覺到我們建立的投資組合具有很大的彈性。你看，正如我提到的經常性收入以低兩位數增長一樣，我們強烈感受到降低今年風險的重要性，同時真正能夠推動兩位數的每股收益增長，兩位數的自由現金流收入比我們預期的要低一些。正如我們所說，我們對目前的戰略地位感到滿意——我們在電話會議上提出了一些觀點，因為我們看到了一些市場情況，但顯然，我們的份額地位和持續創新的能力從未如此更大。因此，我們認為投資組合狀況良好，可以持續做到這一點。

Look forward to talking to everyone in follow-ups. If we don't see you before the fall, have a great summer. Thank you.

期待後續與大家交流。如果我們在秋天之前沒有見到你，那就祝你有個愉快的夏天。謝謝。

Thank you, and this concludes today's conference. All parties may disconnect. Have a good day.

謝謝大家，今天的會議到此結束。所有各方都可以斷開連接。祝你有美好的一天。