Graco Inc. (GGG) 2026 Q1 法說會逐字稿

Good morning, and welcome to the first quarter conference call for Graco Inc. If you wish to access the replay for this call, you may do so by visiting the company's website at www.graco.com. Graco has additional information available in the PowerPoint slide presentation which is available as part of the webcast player. (Operator Instructions)

各位早安，歡迎參加 Graco Inc. 第一季財報電話會議。若您希望收聽本次電話會議的重播，可造訪公司網站 www.graco.com。Graco 亦在 PowerPoint 投影片簡報中提供更多資訊，該簡報可於網路直播播放器中取得。(接線員指示)

During this call, various remarks may be made by management about their expectations, plans, and prospects for the future. These remarks constitute for looking statements for the purposes of the Safe Harbor provisions of the Private Securities Litigation Reform Act.

在本次電話會議中，管理階層可能會就其對未來的預期、計畫與展望發表各項評論。就《私人證券訴訟改革法》之「安全港」條款而言，這些評論構成前瞻性陳述。

Actual results may differ materially from those indicated as a result of various risk factors, including those identified in Item 1A of the company's 2025 annual report on Form 10-K and in Item 1A of the company's most recent quarterly report on Form 10-Q. These reports are available on the company's website at www.graco.com and the SEC's website at www.sec.gov.

由於各項風險因素，實際結果可能與所示內容存在重大差異，包括公司 2025 年 Form 10-K 年報第 1A 項，以及公司最近一期 Form 10-Q 季報第 1A 項所辨識之風險因素。上述報告可於公司網站 www.graco.com 及美國證券交易委員會（SEC）網站 www.sec.gov 查閱。

Forward-looking statements reflect management's current views and speak only as of the time they are made. The company undertakes no obligation to update these statements in light of new information or future events.

前瞻性陳述反映管理階層目前觀點，且僅截至其發表時點有效。公司不承擔因新資訊或未來事件而更新該等陳述之任何義務。

I will now turn the conference over to Chris Knutson, Vice President, Controller and Chief Accounting Officer.

接下來我將把會議交給 Chris Knutson，副總裁、財務控制長暨首席會計長。

Good morning, everyone, and thank you for joining the call. I'm here today with Mark Sheahan, David Lowe, and Sanjiv Gupta. I'll begin with a brief overview of our first quarter results and then turn the call over to Mark for additional commentary.

各位早安，感謝加入本次電話會議。今天與我一同出席的有 Mark Sheahan、David Lowe 與 Sanjiv Gupta。我將先簡要概述第一季業績，接著把電話交給 Mark 進一步說明。

Yesterday, Graco reported first quarter sales of $540 million, up 2% from the same quarter last year. Acquisitions contributed 5% growth and currency translation added 3% growth, partially offset by a 6% decline in organic sales.

昨日，Graco 公布第一季銷售額為 5.40 億美元，較去年同期成長 2%。併購帶來 5% 的成長，匯率換算增加 3% 的成長，但部分被有機銷售下滑 6% 所抵銷。

Reported net earnings were $119 million down 5% or $0.70 per diluted share. Excluding excess tax benefits from stock option exercises, adjusted non-GAAP net earnings were $0.66 per diluted share, down 6%.

公告淨利為 1.19 億美元，年減 5%，稀釋後每股盈餘為 0.70 美元。排除股票選擇權行使所產生的超額稅務利益後，調整後（非 GAAP）淨利為稀釋後每股 0.66 美元，年減 6%。

Gross margin decreased 60 basis points versus the first quarter last year. The benefit from our pricing actions helped offset higher product costs from lower factory volume, lower margin rates from acquired operations, and incremental tariffs. Tariffs increased product costs by $7 million in the quarter.

毛利率較去年第一季下降 60 個基點。我們的定價措施所帶來的效益，有助於抵銷因工廠產量較低而導致的較高產品成本、併購業務較低的毛利率，以及新增關稅的影響。本季關稅使產品成本增加 700 萬美元。

Operating expenses increased $9 million or 7% in the quarter. Excluding $5 million in incremental expenses from acquired operations and the effects of currency translation, expenses were flat.

本季營業費用增加 900 萬美元，增幅 7%。若排除併購業務新增的 500 萬美元費用及匯率換算影響，費用持平。

In the quarter, the operating margin rate in both our contractor and expansion market segments was 24%, consistent with the same period last year. Industrial segment operating margin was 32%, down from 34% in the prior year quarter. The decline is due primarily to unfavorable volume and tariffs that were not offset by price realization.

本季，我們承包商（Contractor）與擴張市場（Expansion Market）兩個事業部門的營業利益率皆為 24%，與去年同期一致。工業（Industrial）事業部門營業利益率為 32%，低於去年同期的 34%。下滑主要係因出貨量不利與關稅影響，且未能由價格實現（price realization）所抵銷。

Total company operating earnings decreased $6 million or 4% in the quarter. Operating earnings as a percentage of sales were 26% compared to 27% in the same period last year. The adjusted effective tax rate was 20%, in line with our expected full year adjusted tax rate of 20% to 21%.

公司整體營業利益本季減少 600 萬美元，降幅 4%。營業利益占銷售額比率為 26%，去年同期為 27%。調整後有效稅率為 20%，符合我們對 2026 全年調整後稅率 20% 至 21% 的預期。

Cash provided by operations totaled $120 million for the year, down $5 million or 4%. Cash provided by operations as a percentage of adjusted net earnings was 107% for the quarter. Year to date, uses of cash include share repurchases of 189,000 shares totaling $16 million, dividends of $49 million and capital expenditures of $12 million. These uses were partially offset by share issuances of $40 million.

本年度迄今，營運活動提供之現金合計 1.20 億美元，較去年同期減少 500 萬美元，降幅 4%。本季營運活動提供之現金占調整後淨利比率為 107%。年初至今現金用途包括：庫藏股回購 18.9 萬股、合計 1,600 萬美元；股利 4,900 萬美元；資本支出 1,200 萬美元。上述用途部分由發行股份取得的 4,000 萬美元所抵銷。

A few comments as we look forward to the rest of the year. Based on current exchange rates and assuming similar volume, product mix and business mix as in 2025, currency is expected to have a 1% favorable impact on net sales and a 2% favorable impact on net earnings for the full year 2026.

展望今年剩餘期間，補充幾點說明。依目前匯率，並假設與 2025 年相近的出貨量、產品組合與業務組合，預期匯率對 2026 全年淨銷售額將有 1% 的正面影響，對淨利將有 2% 的正面影響。

For the full year, we continue to expect unallocated corporate expenses of $40 million to $43 million and capital expenditures of $90 million to $100 million, including approximately $50 million for facility expansion projects. 2027 will be a 53-week year with an extra week occurring in the fourth quarter.

就全年而言，我們仍預期未分攤之公司費用為 4,000 萬至 4,300 萬美元，資本支出為 9,000 萬至 1.00 億美元，其中約 5,000 萬美元用於廠房擴建專案。2027 年將為 53 週年度，第四季將多出一週。

And finally, in the attached materials, we updated our outlook slide to highlight performance by segment and region, with the size of each color dot indicating its relative size versus the others.

最後，在隨附資料中，我們更新了展望投影片，以突顯各事業部門與各區域的表現，且每個彩色圓點的大小代表其相對於其他項目的規模。

With that, I'll turn the call over to Mark for more details on our segment and regional performance.

接下來我將把電話交給 Mark，請他更詳細說明我們各事業部門與各區域的表現。

Thank you, Chris. Good morning, everybody. Overall sales increased 2% in the quarter with acquisitions contributing 5% and foreign currency adding another 3%. That growth was partially offset by a 6% decline in organic revenue. Organic revenue started the year slower than expected, particularly in January. The business activity improved steadily as the quarter progressed, with bookings up 3% at actual currency rates, driving nearly a $26 million increase in backlog, primarily in our Industrial segment. If those orders have been converted to revenue at the end of the quarter, organic revenue at actual currency rates, would have increased 2% and total sales, including acquisitions, would have been up 7%.

謝謝你，Chris。各位早安。整體而言，本季銷售額成長 2%，其中併購貢獻 5%，外幣因素再增加 3%。該成長部分被有機營收下滑 6% 所抵銷。有機營收年初起步較預期疲弱，特別是在一月。隨著季度推進，業務活動穩步改善；以實際匯率計算，接單（bookings）成長 3%，帶動在手訂單（backlog）增加近 2,600 萬美元，主要來自我們的工業事業部門。若這些訂單在季末已轉為營收，則以實際匯率計算的有機營收將成長 2%，而包含併購在內的總銷售額將成長 7%。

The Middle East region represents about $35 million of sales on a full year basis for Graco. To date, we've not seen any significant impact on demand or operations, though the environment remains uncertain. We are staying close to our customers and channel partners and are monitoring order patterns and logistics carefully. From an exposure standpoint, the Contractor segment will be the most impacted primarily related to our protective coating product application.

中東地區以全年基礎計算約占 Graco 3,500 萬美元的銷售額。截至目前，我們尚未看到對需求或營運造成任何重大影響，但整體環境仍具不確定性。我們持續與客戶及通路夥伴保持密切聯繫，並審慎監控訂單型態與物流狀況。就曝險而言，承包商事業部門受影響最大，主要與我們的防護塗層產品應用相關。

Let me provide some additional color on our segments and regions.

接著我將就各事業部門與各區域補充更多說明。

In the Contractor segment, sales increased 2% in the quarter, with acquisitions and currency translation each contributing 3%, partially offsetting a 4% decline in organic revenue. Within the segment, our form polyurea and protective coatings businesses continued to be bright spots, supported by strong global demand tied to infrastructure, border wall, and data center projects. That said, construction demand remains softer than we would like, particularly in the Americas. Housing starts are expected to be relatively flat year over year with fewer new home sales and only modest improvement in existing home sales. Overall, the market has shown limited growth over the past four years, and we expect those conditions to persist this year.

在承包商（Contractor）事業部門，本季銷售額成長 2%，其中併購與匯率換算各貢獻 3%，部分抵銷有機營收下滑 4%。在該部門內，我們的成型聚脲（form polyurea）與防護塗層業務持續表現亮眼，受惠於與基礎建設、邊境圍牆及資料中心專案相關的全球強勁需求。然而，建築需求仍較我們期望疲弱，尤其在美洲地區。預期住宅開工數年增率大致持平，新屋銷售減少，成屋銷售僅小幅改善。整體而言，市場在過去四年成長有限，我們預期今年這些狀況仍將持續。

Turning to the Industrial segment. Sales increased 4% in the quarter, with acquisitions contributing 8% and currency translation adding another 4%. This growth was partially offset by an 8% decline in organic revenue. Despite the organic decline, bookings were up 5% at actual currency rates, driving a $23 million increase in backlog. If those orders have been converted to revenue within the quarter, organic revenue at actual currency rates would have increased 6%.

接著談工業（Industrial）事業部門。本季銷售額成長 4%，其中併購貢獻 8%，匯率換算再增加 4%。該成長部分被有機營收下滑 8% 所抵銷。儘管有機營收下滑，以實際匯率計算接單仍成長 5%，帶動在手訂單增加 2,300 萬美元。若這些訂單在本季內已轉為營收，則以實際匯率計算的有機營收將成長 6%。

Industrial Americas performed well delivering revenue growth despite lower project-based activity in our Powder group. Bookings in the region were up double digits, supported by broad-based strength across multiple end markets. EMEA and Asia Pacific were more heavily impacted by the timing of completion and acceptance of project-based activity, which drove the decline in the quarter. That said, both regions saw activity improve as the quarter progressed, with quoting levels moving higher.

工業美洲地區表現良好，儘管我們粉體（Powder）事業群的專案型活動較少，仍交出營收成長。該地區接單呈雙位數成長，受惠於多個終端市場的廣泛強勁需求。EMEA 與亞太地區則較受專案型活動完工與驗收時點影響，導致本季下滑。不過，兩個地區的活動皆隨季度推進而改善，報價水準亦走高。

In our Expansion Markets segment, organic revenue declined 5% in the quarter, driven primarily by our semiconductor business, which was coming off an exceptionally strong prior year comparison. Semiconductor delivered its largest quarter of the year in 2025, growing 51%. Despite the tough comparison, semiconductor demand remained solid with first quarter bookings up at least 20% in each region.

在我們的擴張市場（Expansion Markets）事業部門，本季有機營收下滑 5%，主要是受到我們半導體業務的影響，因為去年同期基期異常強勁。半導體業務在 2025 年交出全年最大單季表現，成長 51%。儘管比較基期嚴峻，半導體需求仍然穩健，第一季各區域的接單（bookings）至少都成長 20%。

We're also seeing improvement in our environmental business. While the year started slowly, activity has picked up meaningfully with a strong start to the second quarter, and bookings are trending positive year to date.

我們也看到環境事業有所改善。雖然年初起步較慢，但隨著第二季強勁開局，活動量已明顯回升，且年初至今接單趨勢轉為正向。

Moving on to the outlook. Despite the slow start to the year, we're encouraged by demand trends across our broader end markets. We saw a meaningful pickup in both ordering and quoting activity in our industrial and semiconductor businesses throughout the quarter. And based on current order rates, strength in these areas should help offset continued softness in the Contractor segment. As a result, we're maintaining our 2026 revenue guidance of low single-digit organic growth on a constant currency basis and mid-single-digit growth, including contributions from acquisitions. Looking ahead, second half comparisons are more favorable, reflecting an easier contractor comparison in the third quarter and the expected timing of project activity in the industrial businesses towards the end of the year.

接著談展望。儘管今年開局偏慢，我們對更廣泛終端市場的需求趨勢感到鼓舞。本季期間，我們在工業與半導體業務的下單與報價活動都出現明顯回升。並且依據目前的訂單速度，這些領域的強勁表現應可抵銷承包商（Contractor）部門持續疲弱的影響。因此，我們維持 2026 年營收指引：以固定匯率計算的低個位數有機成長，以及包含併購貢獻在內的中個位數成長。展望未來，下半年比較基期更為有利，反映第三季承包商業務的比較基期較容易，以及工業業務專案活動預期在年底前後發生的時點。

Finally, I'd like to take a moment to welcome Sanjiv Gupta to Graco. Sanjiv comes from General Motors, where he spent more than 20 years in finance and operating roles across the globe, most recently as CFO of GM International. He brings deep experience across corporate finance, operations, manufacturing, and supply chain and a strong track record of leading global teams.

最後，我想花點時間歡迎 Sanjiv Gupta 加入 Graco。Sanjiv 來自通用汽車（General Motors），在全球各地的財務與營運職務累積超過 20 年經驗，最近的職務是 GM International 的財務長（CFO）。他在公司財務、營運、製造與供應鏈方面具備深厚經驗，並且在領導全球團隊方面有卓越的實績。

In addition, I want to recognize and thank David Lowe for his more than 30 years of dedicated service as he prepares for retirement. David's leadership, deep financial expertise, and steady guidance have played an important role in shaping our company and supporting our long-term success. On behalf of the entire organization, I want to thank David for his many contributions and wish him the best in his next chapter.

此外，隨著 David Lowe 準備退休，我也要表達肯定並感謝他超過 30 年的投入與奉獻。David 的領導力、深厚的財務專業，以及穩健的指引，在塑造公司並支持我們的長期成功方面扮演了重要角色。我謹代表全體同仁，感謝 David 的諸多貢獻，並祝福他在人生下一篇章一切順利。

In closing, I want to take a moment to recognize an important milestone for our company. On April 26, we will celebrate our centennial. This milestone reflects the strength of our people, the durability of our business model, and the deep relationships we've built with customers and partners around the world.

在結語之前，我想花點時間表彰公司的一個重要里程碑。4 月 26 日，我們將慶祝公司成立一百週年。這個里程碑反映了我們人才團隊的實力、商業模式的韌性，以及我們與全球客戶與合作夥伴所建立的深厚關係。

While we're proud of our history, this anniversary is really about the future, continuing to invest in innovation, supporting our customers, and building on the foundation that has sustained the company for a century.

雖然我們以歷史為榮，但這個週年紀念其實更關乎未來：持續投資創新、支持客戶，並在支撐公司走過一個世紀的基礎上再接再厲。

That concludes the prepared remarks. Operator, we'll open it up for questions.

以上是預先準備的發言。接線員，我們現在開放提問。

(Operator Instructions) Deane Dray, RBC Capital Markets.

(接線員指示) RBC Capital Markets 的 Deane Dray。

Can I add my welcome to Sanjiv and to wish David all the best? Since we're in an uncertain macro here, Mark, maybe you can just take us through the major verticals and what surprised you versus expectations? I know housing remains tough, but semiconductor looks like that's a positive side. And then just same thing on the geographies. And if you could elaborate a bit more on the Middle East exposure for contractor.

我可以一起歡迎 Sanjiv，並祝 David 一切順利嗎？由於目前總體環境不確定，Mark，也許你可以帶我們快速梳理一下主要垂直領域，哪些表現相較預期讓你感到意外？我知道房市仍然艱困，但半導體看起來是正面因素。另外地理區域也是同樣的問題。以及如果可以的話，請再多談一些承包商業務在中東的曝險。

Yeah. I guess I'd start at a high level and just say that our industrial bookings in the quarter were actually up mid-single digits, which was good. And unfortunately, we weren't able to convert that into revenue that you all saw.

好的。我想先從較高層次開始說：我們工業業務本季的接單其實是中個位數成長，這點不錯。但很可惜，我們沒能把這些接單轉化為你們看到的營收。

But in terms of how that mid-single-digit booking growth took place, it was really across multiple product categories. Look at liquid finishing, process, our lubrication businesses, both ALE, automatic lubrication, as well as our vehicle service business, and a little bit of pressure in our sealant and adhesive business offset some of that. But overall, I was pretty happy with the growth in industrial in the quarter.

至於這個中個位數的接單成長是如何發生的，主要是來自多個產品類別。包括液體塗裝（liquid finishing）、製程（process）、我們的潤滑業務，包含 ALE（自動潤滑，automatic lubrication），以及車輛服務（vehicle service）業務；同時，我們的密封膠與黏著劑（sealant and adhesive）業務有些壓力，抵銷了部分成長。但整體而言，我對本季工業業務的成長相當滿意。

The powder business, again, was influenced mostly by some project activity on the bookings front that booked right at the end of the quarter that we just couldn't convert. Now those projects usually take time between booking and billing. And then the overall Gema or powder business, again, in aggregate, was in line with our long-term expectation for the full year of the low single-digit organic growth, constant currency.

粉體（powder）業務同樣主要受到一些專案活動影響：在接單面，有些案子是在季末才完成接單，我們來不及轉成營收。而這些專案通常在接單到開立帳單（billing）之間需要一段時間。另外，整體 Gema 或粉體業務的表現，合計而言仍符合我們對全年長期預期：以固定匯率計算的低個位數有機成長。

Obviously, the home center and the paint channel continue to be a little bit of a headwind for us. I wouldn't characterize them as down significantly, but they were down in the quarter.

顯然，居家賣場（home center）與油漆通路（paint channel）仍持續對我們形成一些逆風。我不會形容它們大幅下滑，但本季確實是下滑的。

We did see nice growth in the areas that I mentioned in my script on the high-performance coatings and foam business that wasn't quite enough to offset all of the headwinds that we had in the traditional paint and home center channels. But overall, booking for the quarter was only down 1%, which is okay in an environment where we're still experiencing some pain.

我們確實在我講稿中提到的高性能塗料（high-performance coatings）與發泡（foam）業務看到不錯的成長，但仍不足以完全抵銷傳統油漆與居家賣場通路所面臨的所有逆風。不過整體而言，本季接單僅下滑 1%，在我們仍感受到一些壓力的環境下，這樣的表現還可以。

When it came to the environmental business, yeah, the bookings and for semiconductor the bookings were fantastic. We're starting to see a little bit of a pickup on our environmental business. And I would say that the HIP high-pressure business that's in there as well is also experiencing growth within line of what we're expecting for the full year.

至於環境事業，是的，環境業務的接單以及半導體的接單都非常出色。我們開始看到環境業務有些回升。我也會說，其中包含的 HIP 高壓（high-pressure）業務同樣在成長，且符合我們對全年預期的走勢。

Geographically, you've seen the numbers, but Europe is doing okay. Asia is somewhat influenced by the adhesive business that I referenced previously on the industrial side. So we're off to a bit of a slower start, but the team is pretty optimistic that we'll be able to make that up as we finish out the next three quarters of the year. And North America has been okay here so far this year, where booking rates are up in our low single digit -- low to mid-single-digit guide.

就地理區域而言，你們已經看到數字：歐洲表現還可以。亞洲則在某種程度上受到我先前提到的工業端黏著劑業務影響。因此我們開局稍慢一些，但團隊相當樂觀，認為在接下來三個季度結束前能把進度補回來。北美今年迄今也還可以，我們的接單速度呈現低個位數上升——符合我們低到中個位數的指引。

So all in all, I wish we would have been able to convert more of the bookings into billings. It's only 13 weeks, and we do feel like we've got -- given the order momentum, that we've got a good chance to be able to get to our low single-digit guide for the full year.

總體來說，我希望我們能把更多接單轉成出貨開票（billings）。畢竟只有 13 週，而我們也覺得——考量訂單動能——我們很有機會達成全年低個位數的指引。

Great. And then just if you could follow up with any specifics around the Middle East exposure, you called out contractor. And then I'll give you my follow-up question. Just you said tariffs were a $7 million bad guy for the quarter. Can you talk about pricing? How much price action have you taken? And is this a potential year of a second price increase? What's your crystal ball say?

很好。接著如果你能補充一些關於中東曝險的具體細節，你剛才點到承包商業務。然後我再問追問問題。你提到關稅本季造成 700 萬美元的不利影響。能談談定價嗎？你們採取了多少調價行動？今年是否可能再進行第二次漲價？你的水晶球怎麼看？

Yeah. So I'll handle the Middle East and give just a quick thing on the tariffs, but I welcome my colleagues here to chime in on those as well.

好的。我先回應中東部分，並簡單談一下關稅；也歡迎在座同事就這些議題補充。

Middle East has not been a problem for us so far. As I said, we're monitoring the situation. We don't have any hung up orders or anything like that that we're really that concerned about. Maybe the bigger concern would be, with respect to if this blockade extends for a longer period of time, it will create some pressure with respect to the materials that we move.

到目前為止，中東對我們並不是問題。如我所說，我們正在監控情勢。我們沒有任何卡住的訂單或類似狀況，是我們真正特別擔心的。也許更大的疑慮是：如果這次封鎖持續更長時間，可能會對我們運輸的材料造成一些壓力。

So you think about paints, adhesives, those are materials that require quite a bit of petroleum-based products. And to the extent that there is pressure there and those products increase in cost to consumers, et cetera, that may eventually make its way into our business.

例如油漆、黏著劑等，這些材料需要相當多的石油基產品。若相關供給出現壓力，導致這些產品對消費者等的成本上升，最終可能也會傳導到我們的業務上。

Right now, we're not that worried about it. My personal belief is that things will get cleaned up and we'll be able to move forward. But that's probably the bigger unknown risk for Graco and every other company that's out there moving those kinds of materials, at least here in the short term.

目前，我們對此並沒有那麼擔心。我個人的看法是，事情會被整理好，我們也能夠繼續往前走。但這可能是 Graco 以及所有在外面運送這類材料的公司，至少在短期內，較大的未知風險。

On the tariff front, I would say, overall, we're doing a good job. I think we've really offset the cost pressures that we've seen in the P&L from input costs so far year to date. And really, the pressure that we saw in the gross margin line in the quarter was really in a couple of areas.

在關稅方面，我會說整體而言，我們做得不錯。我認為截至目前為止，我們確實已經抵銷了損益表（P&L）中因投入成本帶來的成本壓力。而且，本季我們在毛利率項目上看到的壓力，主要集中在幾個領域。

One, obviously, volume, running a little bit below what we were planning for, really due to the cadence of the orders coming in at a softer pace at the beginning of the quarter versus what we saw at the end of the quarter. Our pricing actions are really offsetting a lot of that activity that we've had.

第一，顯然是出貨量，略低於我們原先的規劃，主要是因為本季初訂單進來的節奏較慢、較疲弱，相較之下季末的情況較好。我們的定價措施確實抵銷了我們所面臨的許多這類影響。

I also point out that the mix in the quarter, the mix of the products that came in, was a little bit unfavorable for us as well. So I really have no concerns on the gross margin line for the rest of the year.

我也要指出，本季的產品組合，也就是進來的產品組合，對我們而言也稍微不利。因此，我對今年剩餘期間的毛利率表現其實沒有疑慮。

I think the teams are doing a great job managing operating expenses, which are actually flat to down slightly in the quarter. So we're managing the P&L appropriately given the level of business that we had in Q1. Any other comments from you guys?

我認為團隊在管理營運費用方面做得很好，本季營運費用實際上持平到略為下降。所以，考量到我們在第一季（Q1）的業務水準，我們對損益表的管理是恰當的。你們還有其他補充嗎？

Well, on the pricing side, I think that we have -- the way that we are looking at it, we have covered tariff costs. And there have been some volume-related things that made that a little less effective.

嗯，在定價方面，我認為我們——以我們的看法——已經涵蓋了關稅成本。而且確實有一些與出貨量相關的因素，使得效果稍微沒那麼明顯。

But we have for the -- in most of our businesses beginning last year, we were -- we have been pursuing around the world our annual pricing adjustment drumbeat. In fact, we started a little earlier in the regions than we would ordinarily. Here in North America, we have a handful of key channel partners that we have agreed to pricing adjustments that are going to begin to become, call it, live early or sometime in Q2. So we're feeling really good about the implications of what those can also help us with as we get through the balance of the year.

但就——在我們大多數業務上，從去年開始，我們——一直在全球推動每年的例行調價節奏。事實上，我們在各區域啟動的時間比以往通常更早一些。在北美這裡，我們與少數幾個關鍵通路夥伴已同意進行價格調整，這些調整將在第二季（Q2）初或某個時間點開始生效。因此，對於這些措施在今年剩餘期間能帶來的幫助，我們感覺非常好。

Jeff Hammond, KeyBanc Capital Markets.

Jeff Hammond，KeyBanc Capital Markets。

This is Mitch Moore on for Jeff. Just on the low single-digit organic guide. Just maybe with the start -- with the slower start of the year, I think it implies mid-single digit-ish growth through the remainder of the year. Could you just help us frame the segment level building blocks to get you there? And what's giving you confidence in that outlook?

我是 Mitch Moore，代 Jeff 發問。關於有機成長低個位數的指引。考量到今年開局較慢，我想這意味著今年剩餘期間需要達到中個位數左右的成長。你們能否協助我們從各事業部層級的構成要素來理解，如何達成這個目標？以及是什麼讓你們對這個展望有信心？

Yeah. If I had to point to one thing, I'd say we're up low single digit on our bookings for the first quarter. So I think our bookings rate lines up with what the guide was. And so that gives us the confidence that we're going to be able to get within that guided range when we look out through the whole year. I don't know if you guys have any other comments you want to make.

是的。如果要我指出一個重點，我會說我們第一季的接單（bookings）是低個位數成長。所以我認為我們的接單率與指引是一致的。因此，當我們放眼全年時，這讓我們有信心能落在指引區間內。我不知道你們是否還有其他想補充的。

I'll also say that, as Mark mentioned, the backlog build in the quarter. But also subsequent to the end of the quarter into April here, we've also seen another $21 million build in the backlog. So the order rates are there to support it. It might be a little bit lumpier on a quarter-by-quarter basis, but we have confidence we'll get there by the end of the year.

我也想補充，如 Mark 所提到的，本季在手訂單（backlog）有所增加。而且在季末之後、進入四月，我們又看到在手訂單再增加了 2,100 萬美元。因此，訂單速度足以支撐這個目標。雖然以季度來看可能會比較不平均，但我們有信心到年底能達成。

Okay. Great. And then just for my follow-up. I know we touched on tariffs a bit, but just -- is there any update you guys can provide with the updates to the Section 232 tariffs and if that changes your expectations for price costs for the year?

好的。很好。接著是我的追問。我知道我們稍微談到關稅，但——關於第 232 條關稅更新後的變動，你們是否有任何最新資訊可提供？這是否會改變你們對今年價格成本的預期？

I will say that the change with the 232, where they're moving from a direct aluminum and steel to the full component, we're still working on assessing how much that's going to impact us. We do have some highly manufactured equipment.

我會說，第 232 條的變動，也就是他們從直接針對鋁與鋼，改為涵蓋整個零組件，我們仍在評估這會對我們造成多大影響。我們確實有一些高度製造的設備。

So when you switch to a full value of the imported goods, it would imply a higher tariff. But for us, a lot of our stuff is already manufactured here. So a lot of the import of the aluminum and steel is typically in its raw form.

因此，當你改為以進口貨品的完整價值計算時，就意味著關稅會更高。但對我們而言，我們很多產品已經是在本地製造。所以鋁與鋼的進口多半通常是以原料形式進來。

Bryan Blair, Oppenheimer.

Bryan Blair，Oppenheimer。

Welcome, Sanjiv. And congratulations, David, I think you ended up a little short of Dale's tenure, but a great run nonetheless.

歡迎你，Sanjiv。也恭喜你，David，我想你的任期最後比 Dale 的年資稍短一些，但仍然是一段很棒的歷程。

Hey, I can stay at -- maybe, consider staying another 18 years.

嘿，我可以再待——也許，考慮再待 18 年。

All right. I would like to follow up on the backlog expansion in Q1 and then Q2 to date just to level set. How much of the total build has been your Gema business? Have there been project deferrals or is this strictly a matter of order timing? And is this type of backlog build or the magnitude of it significantly out of the ordinary for the early part of the year?

好。我想追問第一季（Q1）以及截至目前第二季（Q2）的在手訂單擴張，先把基準釐清一下。整體增加的部分，有多少來自你們的 Gema 業務？是否有專案延後，還是純粹只是訂單時點的問題？而且，這種在手訂單的增加，或其幅度，在年初這段時間是否明顯不同於以往？

Yeah. I think that they're pretty similar. I think if I look across the legacy Graco Industrial businesses and the backlog that we've built there as well as the backlog that we built in the Gema business, including projects, et cetera, I didn't see anything jump off the page at me that says that they're heavily weighted toward the powder business. I think it's generally pretty consistent across both those segments.

是的。我認為兩者相當類似。如果我看整個傳統的 Graco 工業業務所累積的在手訂單，以及 Gema 業務（包含專案等）所累積的在手訂單，我沒有看到任何特別突出的跡象顯示它們明顯偏向粉體業務。我認為在這兩個事業群之間整體上相當一致。

And I would add, especially the orders that we've seen since the close of the quarter, it's been quite balanced in the -- to use our internal terminology -- the Industrial division, which is the legacy Graco, the original legacy Graco plus the Gema business.

我再補充一下，特別是我們在季末之後看到的訂單，在——用我們內部的術語——工業事業部（Industrial division）裡相當均衡；這個事業部包含傳統的 Graco（原本的傳統 Graco）加上 Gema 業務。

As part of this exercise, we ran some stress tests. And being an old sales guy, I kicked the tires pretty hard on not only just the industrial side but also on the contractor side. And I kept coming to the same place that, given the level of activity we're seeing in industrial and not really relying on a meaningful uptick in contractor, low single digit is achievable.

作為這項作業的一部分，我們做了一些壓力測試。而我以前是做業務的，所以我不只在工業端，也在承包商端做了相當嚴格的檢視。我最後得到的結論仍然是：以我們在工業端看到的活動水準來看，而且不需要仰賴承包商端出現顯著回升，低個位數成長是可以達成的。

Okay. I appreciate the color. And following up on the revised tariff framework again, just to level set. Is there a meaningful assumed change in net cost impact for your operations? And perhaps more importantly, as a largely domestic manufacturer, do you see any incremental competitive advantages or opportunities under the new structure?

好的。感謝這些說明。再追問一次關於修訂後的關稅架構，先把基準釐清。你們的營運在淨成本影響上，是否假設有任何顯著變化？以及更重要的是，作為一家以國內製造為主的廠商，你們是否在新架構下看到任何額外的競爭優勢或機會？

Yeah, I don't think there's any obvious competitive advantages. And the way I'm thinking about the tariffs here, short term and long term.

是的，我不認為有任何明顯的競爭優勢。而我對關稅的思考方式，是分成短期與長期來看。

The big question is, I think, what is going to stick. Are we going to have -- the tariffs that are in place today, obviously, the Supreme Court ruled the way they did, but they put in new tariffs. So when you look at -- if they stick incrementally, it's not going to have a big impact to Graco in terms of the absolute level that we're paying.

我認為最大的問題是，哪些措施會留下來。我們是否會——目前已實施的關稅，顯然最高法院做出了那樣的裁決，但他們又推出了新的關稅。所以當你看——如果這些新增的關稅確實持續下去，對 Graco 而言，就我們實際支付的絕對金額水準來看，影響不會很大。

I will note, and we did talk about this, we will be applying for our tariff refunds like every other company. And as those come in, we -- our intention would be to highlight those in results so that you know what they are as they come in.

我想說明一下，而且我們也談過這點，我們會像其他公司一樣申請關稅退稅。而當這些退稅陸續入帳時，我們——我們的意圖是會在業績結果中把它們特別揭露，讓你們能在它們進來時就知道是什麼。

At this point, until we actually see the refunds, we're not really going to talk about the levels or the amounts or anything like that. So I think from a modeling perspective, it would probably make some sense just to leave them out. And when they come in, we'll break them out and then you can know what they are.

在目前這個時間點，在我們實際看到退稅之前，我們不會真的去談水準、金額或任何類似的事情。所以我認為從建模的角度來看，可能比較合理的是先把它們排除在外。等它們進來之後，我們會把它們拆分揭露，然後你們就能知道它們是什麼。

But to answer your question again, to reiterate, when you just think about the absolute level of tariff that this company is incurring, with the new structure that's in place, it's pretty similar to what we experienced before the new structure was put in place.

但再回答一次你的問題、再重申一下，當你只看這家公司所承擔的關稅絕對水準時，在目前新的架構之下，跟我們在新架構上路之前所經歷的情況其實相當接近。

Matt Summerville, D.A. Davidson.

Matt Summerville，D.A. Davidson。

Maybe just a minute on contractor. Can you talk about what sell-in, sell-through trends you're seeing in both the home center and pro paint channel? And then can you also talk about how we should be thinking about the new product load-in this year maybe relative to last? And then I have a follow-up.

也許花一點時間談談承包商（contractor）業務。你們能談談在家居賣場（home center）以及專業塗料通路（pro paint channel）看到的鋪貨（sell-in）與終端銷售（sell-through）趨勢嗎？另外，你們也能談談今年新產品上架/導入（load-in）相較於去年，我們應該如何看待嗎？然後我還有一個追問。

Yeah. In terms of sell-in, sell-through, there's not a big difference. I think most of the channel partners that we do business with have been pretty careful with their inventory. And I think that they're continuing to be careful with their inventory. So I would characterize our sales and our bookings to be really pretty similar to what they're experiencing on an out-the-door basis, which I think makes sense given the environment that they're playing in.

好的。就鋪貨與終端銷售而言，差異不大。我認為我們合作的大多數通路夥伴在庫存方面一直都相當謹慎。而且我認為他們會持續保持謹慎。所以我會把我們的銷售與接單形容為，基本上與他們在門店端（out-the-door）的實際表現非常接近；考量到他們所處的環境，這樣的結果也合理。

We do have, as every year, products that we're launching; and we're planning to launch products here in Q2. I would not be baking in any large incremental increase compared to last year. I think it's a fairly stable, fairly similar new product launch here for the contractor business, what we've experienced in the past.

我們確實像每一年一樣會推出一些產品；而且我們計畫在第二季推出產品。我不會把任何相較去年大幅增加的增量納入預期。我認為承包商業務的新產品推出相當穩定、相當類似，跟我們過去的經驗差不多。

We've got a couple of things that we're excited about for sure that we can talk about after they're actually launched. But again, I think it will be a similar year to what we saw in '25. David, if you got any --

我們確實有幾件讓我們很興奮的事情，等實際上市後我們一定可以談。但再說一次，我認為今年會跟我們在 2025 年看到的情況相似。David，如果你有任何--

Yeah. I -- just a coincidence, I had a conversation with commercial management earlier this morning and just to underline two of Mark's points.

是的。我——剛好今天一早我和商用管理團隊聊了一下，想再強調 Mark 的兩點。

On the home center side, the positive side of the story is the foot traffic has not deteriorated year over year. And the -- although it still remains off the record levels that we saw in '20 and '21 and such. So there's an opportunity for recovery there. Those channel partners do, I would say, a very good job managing their working capital, and we feel pretty good the inventory level there is satisfactory.

在家居賣場這邊，故事的正面之處是來客數（foot traffic）並沒有年對年惡化。而且——雖然它仍低於我們在 2020 年、2021 年等時期看到的創紀錄水準。所以那裡仍有復甦的機會。我會說，那些通路夥伴在營運資金管理上做得非常好，我們也覺得那邊的庫存水位令人滿意。

On the paint store side, always of interest to us, I think the key point there is we feel -- I'd say at the ground level of the business, our commercial team indicates that the sell-through has been satisfactory. And so that -- in that really important space for us, call it, the retail demand is pretty -- is also pretty close to the wholesale, which is important, especially as we get some of these new products launched to that channel.

在塗料門市（paint store）這邊，一直是我們關注的重點；我認為關鍵點是，我們覺得——我會說在業務第一線，我們的商用團隊表示終端銷售（sell-through）令人滿意。因此——在對我們非常重要的那個領域，我們稱之為零售需求（retail demand）相當——也相當接近批發端（wholesale），這點很重要，尤其當我們把一些新產品推向該通路時。

And so I think that the -- where we are at vis-a-vis our partners is they're ready to go and ready to order when they see retail demand, out the door demand, increase .

所以我認為——就我們與合作夥伴的相對狀態而言，他們已經準備就緒；當他們看到零售需求、門店端需求（out-the-door demand）上升時，就會準備好下單。

Got it. And then as a follow-up, maybe can you guys comment on how you're thinking about the M&A outlook, funnel actionability to the funnel depth, if you will, and where you may be seeing most activity?

了解。那接著追問一下，你們能否評論一下你們對併購（M&A）展望的看法、管道（funnel）的可執行性相對於管道深度（funnel depth）（如果可以這麼說），以及你們目前在哪些地方看到最多活動？

Yeah, I'd characterize the market as still pretty favorable. I think that there's properties out there that we're interested in. Our pipelines are well populated. We're having discussions with a lot of different companies.

可以，我會把市場形容為仍然相當有利。我認為外面有一些我們感興趣的標的。我們的案源管道很充實。我們正在和許多不同的公司進行討論。

I do think there's been over the last year or so, a renewed appetite on the part of sellers to take a look at opportunities to realize value and they're looking at strategic buyers in a lot of cases. And we're going to remain active. We like businesses that -- where we can add value.

我確實認為在過去一年左右，賣方重新燃起了意願，願意看看實現價值的機會，而且在很多情況下他們在尋找策略買家。而我們會保持積極。我們喜歡那些——我們能夠加值的企業。

I see a fair amount of opportunities within the Industrial segment, in particular. Contractor also has a couple of things, but there's probably more lively stuff in the industrial side right now.

我看到工業（Industrial）部門內有相當多的機會，尤其如此。承包商（Contractor）也有幾個方向，但目前工業端可能更熱絡一些。

Interestingly, I did go back and I looked at some information back from 2012 until the end of last year, and 2012 was the year that we acquired Gema. About 30% of Graco's revenue that we finished the year with in 2025 is acquired businesses.

有趣的是，我回頭看了從 2012 年到去年年底的一些資料，而 2012 年是我們收購 Gema 的那一年。我們在 2025 年結束時的 Graco 營收中，大約有 30% 來自併購而來的業務。

So we have had a pretty good track record of acquiring businesses, integrating them, maintaining and improving our profitability over that time horizon. And that's really what we're trying to do with our M&A growth going forward.

因此我們在收購企業、整合它們、並在那段期間維持與提升獲利能力方面，有相當不錯的紀錄。而這正是我們未來透過併購成長想要持續做到的事情。

We have a target long term, 10% top line growth, one-third coming from M&A. And if you look back historically, we've been able to do that. So we're proud. The teams are doing a good job and hopefully, we get some more opportunities here as we finish out the year.

我們有一個長期目標：營收（top line）成長 10%，其中三分之一來自併購。而如果你回頭看歷史，我們一直有能力做到。所以我們很自豪。團隊做得很好，希望在今年剩下的時間裡，我們能再拿到一些機會。

Brad Hewitt, Wolfe Research.

Brad Hewitt，Wolfe Research。

So at the gross margin line, it looks like incrementals were about 25% in the quarter. Should we think about that year-over-year margin pressure is largely driven by price cost or are there any other factors you would highlight there?

在毛利率這一行，看起來本季的增量利潤率（incrementals）大約是 25%。我們是否應該認為年對年的毛利率壓力主要是由價格/成本（price cost）所驅動，還是你們會強調其他因素？

I think it's mostly mix and a little bit on the volume side. But Chris, if you could probably give more color on that.

我認為主要是產品組合（mix），以及一點點的出貨量（volume）因素。不過 Chris，如果你能補充更多細節會更好。

It was mixed volume and acquired businesses that really impacted for the quarter. Price cost was not a headwind outside of having lower factory volume to absorb the overhead.

本季主要影響的是組合、出貨量，以及併購而來的業務。價格/成本並不是逆風，除了工廠產量較低、導致吸收製造費用（overhead absorption）較差之外。

Okay. Great. And then maybe switching over to the backlog side of things. Just curious if you can elaborate a little bit more on visibility of expected backlog conversion as it relates to the rest of the year? And do you see any risk of project cancellations or maybe slippage of backlog conversion into next year?

好的。很好。那再切換到在手訂單（backlog）這邊。想請你們再多談一點，關於今年剩餘期間預期在手訂單轉換（backlog conversion）的能見度？以及你們是否看到任何專案取消的風險，或是可能把在手訂單轉換延後到明年？

Yeah, I don't think we see any risk at this point. It's always there, it could happen, but nothing that we're concerned about on stuff that we've already booked and they're in our backlog. And I think that we said in Chris' comments that we expect most of that will convert in the second half of the year. It's hard sometimes to know the exact timing, but this is not something that we're going to keep on the books for more than that period of time.

是的，我認為目前我們沒有看到任何風險。風險永遠存在、確實可能發生，但對於我們已經接到、且已在在手訂單中的案子，沒有任何讓我們擔心的跡象。而且我想我們在 Chris 的評論中也提到，我們預期其中大部分會在下半年轉換。有時候很難掌握精確時點，但這不是我們會把它留在帳上超過那段期間的事情。

Yeah. The risk of -- Mark is right. The risk cancellation, be it in our legacy business or in even our Gema business. with their direct system sales activity, in my experience is quite low. In the legacy business, typically, -- our stuff is among -- I'm thinking of an industrial application for sealant equipment or for something in the paint shop.

是的。取消的風險——Mark 說得對。以我的經驗，不論是在我們的既有業務，甚至在 Gema 業務（他們有直接系統銷售活動）中，取消風險都相當低。在既有業務中，通常——我們的產品屬於——我想到的是工業應用，例如密封膠設備，或是塗裝車間裡的某些設備。

Our stuff is some of the last that is actually ordered in a project. And -- so for example, the expansion of a paint line. I mean, we're literally being dropped in a month or two before it's going to be commissioned and come on stream. So things that we have in our pipeline in that business is quite tangible and rarely is it canceled altogether.

我們的產品通常是專案中實際下單時點最靠後的一批。所以——例如，塗裝線的擴建。我的意思是，我們真的會在它即將試車、投入運轉前的一兩個月才被安排進場。因此，我們在該業務管線中的事項相當具體可見，而且很少會被完全取消。

On the Gema powder equipment side, I'd say that program -- that organization is even one step more sophisticated in direct sale activity for systems is to accept an order requires a down payment, a very meaningful down payment, approaching half the project cost.

至於 Gema 粉體設備這一端，我會說那個方案——那個組織在系統的直銷活動上又更成熟一個層級：要接受訂單必須先收取訂金，而且是非常可觀的訂金，接近專案成本的一半。

And so the buyers are very committed if an order receives gets developed to that point and shows up in our backlog. In my experience, I was involved with the team at Gema for a few years. I think in the eight or nine years, I was involved over all that time, one project was canceled.

因此，當訂單推進到那個階段並出現在我們的在手訂單（backlog）中時，買方其實是非常投入、非常承諾的。以我的經驗，我曾在 Gema 團隊待過幾年。我想在我參與的那八、九年期間，整段時間裡只有一個專案被取消。

Joe Ritchie, Goldman Sachs.

Joe Ritchie，高盛。

David, thank you for all the help throughout the years. Wish you the best in retirement. And Sanjiv, welcome. So yeah. So maybe my first question, I just want to make sure that I fully understand the -- like the backlog conversion on the powder finishing systems.

David，感謝你這些年來的所有協助。祝你退休生活一切順利。Sanjiv，歡迎加入。所以，是的。那也許我的第一個問題是，我想確認我完全理解——例如粉體塗裝系統的在手訂單轉換（backlog conversion）。

So was this simply that just the orders that you were expecting to come through in the first quarter came through later than you expected them to come through? Or was there anything else related to either supply chain or manufacturing that also impacted the conversion?

所以這是否只是你原本預期會在第一季到位的訂單，實際上比你預期更晚才到？還是有任何其他因素，例如供應鏈或製造端，也影響了轉換？

Yeah, I don't think there was any crazy stuff. We did get a couple of nice orders right at the end of the -- right at the end of the quarter, but we were also converting on to the backlog that we had built in the month of February out at that same time.

是的，我不認為有什麼離譜的狀況。我們確實在季度末拿到幾筆不錯的訂單——就在季度末，但同時我們也在把二月份累積起來的在手訂單在那段時間轉成出貨/認列。

So they offset one another. But no, we're not constrained in our operations. We're not constrained with the supply chain. It's really just the cadence of these orders coming in, and we will get them out the door. We just didn't get them off the door by the end of March.

所以兩者彼此抵消。但不，我們的營運沒有受限。供應鏈也沒有受限。真的只是這些訂單進來的節奏問題，而我們會把它們出貨。只是我們沒能在三月底前把它們送出門。

Okay. All right, helpful. And I know you touched on the margin headwind, I think, in the first quarter being largely driven by lower volumes. I'm just curious, like with the acquisitions also coming through the industrial segment, how much of an impact did the acquisitions have to the margin degradation in 1Q?

了解。好，這很有幫助。我知道你提到第一季的毛利率逆風，我想主要是由較低的出貨量所驅動。我只是好奇，隨著併購也併入工業事業部，併購對 1Q 毛利率下滑的影響有多大？

On a total company basis, it's about 50 basis points related to the acquired revenue on a total company basis. So the stuff going through industrial was by far the majority.

以全公司口徑來看，與併購帶來的營收相關的影響大約是 50 個基點。所以流入工業事業部的部分占了絕大多數。

Okay. All right. Cool. And then one last one. So last quarter, I think we talked a little bit about these like upfront licensing revenues that you were seeing from some of your OEM customers. I didn't hear it get called out today. Just any progress on that specifically would be helpful.

好的。好。很棒。最後一個問題。所以上一季，我想我們稍微談到你從一些 OEM 客戶看到的那種前期一次性授權收入。我今天沒有聽到特別提到。如果能更新一下那部分的進展會很有幫助。

Yeah. We've got a couple of other ones that we're working on, but we didn't really book anything here in Q1. So that's why we were silent on it. We still like the prospects for potential to get future license agreements with a lot of the technology.

是的。我們還有幾個案子正在推進，但第一季我們沒有實際入帳任何一筆。所以我們才沒有特別提。我們仍然看好未來就多項技術取得更多授權協議的可能性。

We've got it running through Graco products. Every time we meet with customer or an OEM, they're excited about the compact size of these motors, the fact that they take less material that they're high torque. So we're hopeful that we're able to do more in that area, but nothing in Q1.

我們已經把它應用在 Graco 的產品中。每次我們與客戶或 OEM 會面，他們都對這些馬達的緊湊尺寸、用料更少以及高扭矩的特性很興奮。所以我們希望能在這方面做得更多，但第一季沒有。

Yeah. I know we've talked about this before, Joe. It's strategic -- it's a master class in strategic selling. Frequently, we are cultivating very large companies with large decision-making bodies and organizations and keeping their processes moving. One large organization can be relatively responsive, quick, and enthusiastic. Another organization can be equally enthusiastic, but the decision-making process moves at a different pace.

是的。Joe，我知道我們之前談過。這是策略性——堪稱策略銷售的大師課。我們經常在培育非常大型的公司，這些公司有龐大的決策團隊與組織架構，並讓他們的流程持續往前推進。某個大型組織可能相對反應快、決策迅速且熱情。另一個組織可能同樣熱情，但決策流程的節奏不同。

So I think the nature of this is, while we're excited and Mark is right about the technology, the visible results that you're going to see over time are not going to have the same degree of predictability as our standard products business.

所以我認為這件事的本質是：雖然我們很興奮，而且 Mark 對技術的看法是對的，但你隨時間看到的可見成果，其可預測性不會像我們標準產品業務那麼高。

Andrew Buscaglia, BNP Paribas.

Andrew Buscaglia，法國巴黎銀行（BNP Paribas）。

So yeah, so it seems starting out a little bit of a repeat with two years ago -- same scenario, all end markets are down. And that year, you struggled to overcome things.

所以，是的，看起來一開始有點像兩年前的重演——同樣的情境，所有終端市場都在下滑。而那一年，你們很難克服各種因素。

So my question is, we're two years later in the same setup. And the question does arise amongst investors. Like is there something -- this seems to be cyclical, but is there something more structural? And maybe does Graco needs to think about -- I don't know if it's a change of tack in terms of how you get volume, whether it's to touch your pricing or what.

所以我的問題是，我們在兩年後又遇到同樣的局面。投資人之間就會出現這個疑問。例如，這看起來是景氣循環，但是否有更結構性的因素？也許 Graco 需要思考——我不知道，是否要改變取得出貨量的策略，例如調整定價之類的。

But I think at this point, you're three years in, and it just seems like the top line can't grow. So are there other discussions you guys have around anything around if there is anything under the hood structurally that's changed in the last three years?

但我想在這個時間點，你們已經三年了，而看起來營收就是無法成長。所以你們是否有討論過，過去三年在結構面上是否有任何「引擎蓋底下」的變化？

I will just say that we have grown the top line. And I will say that, of course, every day, we come in here and we're doing everything we can to grow the business.

我只想說，我們的營收是有成長的。而且我也要說，當然，我們每天來到這裡，都在盡一切努力讓業務成長。

When you're reporting every 13 weeks, sometimes the quarters can look better than maybe the overall business might look and sometimes they don't look as good. We have been fighting some pretty substantial headwinds with respect to half of the revenue of the company that's tied to contractor and construction.

當你每 13 週就要對外報告一次時，有時候單季看起來可能比整體業務實況更好，有時候則看起來沒那麼好。我們一直在對抗相當顯著的逆風，因為公司有一半的營收與承包商與建築市場相關。

And if you look at the macro data on anything, any metric that you look at over the last four to five years, that has been a really tough market to be in. And I'm proud that our teams have actually been able to drive the results that we have driven given the environment that we're in.

如果你看任何宏觀數據、任何指標，在過去四到五年，那一直都是一個非常艱難的市場。在我們所處的環境下，我為團隊仍能推動我們所達成的成果感到自豪。

We get up every day. We're working hard. We're pushing our teams. We're launching products. Our teams are incentivized around growth. So there's absolutely no reason why they shouldn't be driving for better results.

我們每天起床。我們努力工作。我們督促團隊。我們推出新產品。我們的團隊以成長作為激勵目標。所以他們絕對沒有理由不去追求更好的成果。

There's nothing structurally wrong with the company. It's still extremely profitable. It still generates a tremendous amount of cash. And we have been also very active on redeploying that cash, both through the form of share buybacks as well as M&A.

公司在結構上沒有任何問題。它仍然極具獲利能力。它仍然能產生大量現金。而且我們也一直非常積極地重新配置這些現金，包括透過庫藏股回購以及併購（M&A）。

So no, there's nothing here that I think we need to do that's different. I think that we're doing everything that we can as we always have done.

所以不，我不認為我們需要做任何不同的事。我認為我們正在做我們一向以來所做的一切，盡我們所能。

Well, on that note, I think there's a little bit of there's some enthusiasm with this recent reorganization that there's something outside of what the market is giving you that you can find some incremental growth. And I guess where are we seeing that or to date, like -- where is that evident in your numbers? And will we see more a more pronounced impact going forward from that change you guys made a year ago? .

嗯，順著這個話題，我認為這次近期的重組帶來了一些熱情，覺得你們可以在市場本身所提供之外，找到一些額外的增量成長。我想問的是，我們在哪裡看到這一點？或者截至目前——你們的數字中哪裡能看出來？而且，從你們一年前做出的那項變更來看，未來我們會看到更明顯的影響嗎？.

Well, again, we did guide to low single-digit growth, organic constant currency for the full year. For the quarter, our industrial business was up mid-single digit growth, which was nice to see. Our expansion markets group is up high single digits growth.

嗯，再次說明，我們對全年給出的指引是：以有機、固定匯率計算的低個位數成長。就本季而言，我們的工業業務成長了中個位數，看到這點很不錯。我們的擴張市場事業群成長了高個位數。

And those were offset by the fact that our contractor business was down 1%. So again, going back to the earlier comments, we're happy with what we're seeing. We'd like it to be better, obviously. We're pushing the team hard. We still feel confident that we're going to get to the guide that we talked about a couple of months ago.

而這些被我們承包商業務下滑 1% 的情況所抵銷。所以回到先前的評論，我們對目前看到的狀況感到滿意。當然，我們希望能更好。我們正在對團隊施加很大壓力。我們仍然有信心能達到幾個月前談到的那個指引。

(Operator Instructions) Walter Liptak, Seaport Research.

(接線員指示) Walter Liptak，Seaport Research。

I wanted to ask just get a better understanding of the monthly trends. You talked about January being weak. I wonder if you could attribute that to anything. And then February, we have the war heating up. But it doesn't seem like, from what you said about orders, that that has been impacting the trend for orders too much.

我想問的是，想更了解每月的趨勢。你提到 1 月偏弱。我想知道這能歸因於什麼因素。然後 2 月戰事升溫。但從你對訂單的說法來看，似乎這並沒有對訂單趨勢造成太大影響。

But -- so I guess I'm asking like what are you hearing from customers, both in North America and other parts of the world? And as we got more of this behind us, are you getting more confidence that the customers can just work through these macro uncertainties?

不過——所以我想問的是，你們從客戶那邊聽到什麼回饋，包含北美以及世界其他地區？而且隨著我們逐漸把這些事情拋在身後，你們是否更有信心，客戶能夠消化並度過這些總體不確定性？

Well in our businesses, there's different kinds of decision makers. On the contractor side of the business, maybe the decision making you typically can be quicker or a little more reactive because generally, the buyers represent -- they're smaller organizations or entrepreneurs and such.

嗯，在我們的業務中，決策者的類型不同。在承包商端的業務，決策通常可能更快或更具反應性，因為買方一般代表——他們是較小的組織或創業者之類。

There, I would say not -- despite all the challenges of the world in our contractor business, which, again, Mark reminds -- is reminding us that it's 50% of our overall construction broadly defined. The largest market there is here in North America and specifically the US.

在那邊，我會說——儘管世界上有各種挑戰，在我們的承包商業務中（再次提醒，Mark 一直提醒我們）它占我們整體「廣義建築」約 50%。其中最大的市場在北美，特別是美國。

And really, we haven't seen a change in the, I call it, the momentum of that business for a while and certainly not in the last couple of months despite all the global noise because the fundamental issues are -- remain the ones that you're familiar with about affordability and even mortgage rates.

而且老實說，我們一段時間以來都沒有看到我所稱的該業務動能出現變化，最近幾個月更是如此；即便全球雜音很多，因為基本面的問題——仍然是你們熟悉的可負擔性，甚至是房貸利率。

I would say that, focusing on the micro and not the macro, I was really excited when for a few days, the 30-year mortgage rate got below 6% in late February. And now of course, it's, I want to say, about 6.30% or 6.35% currently.

我會說，聚焦在微觀而非宏觀，讓我很興奮的是在 2 月下旬有幾天 30 年期房貸利率降到 6% 以下。而現在當然，我想目前大約是 6.30% 或 6.35%。

I think it gets more the world and decision-making when you look at industrial companies and how they make their decisions. And while I've got a list here I'll spare everybody in the interest of time, for example, we would say, oh, the auto industry market was slow for us. The auto OEM market was slow for us. We had some tough comps, and we didn't see too much activity in the first quarter.

我認為當你看工業公司以及它們如何做決策時，會更受到世界局勢與決策環境影響。我這裡有一份清單，但為了節省時間我就不一一列舉；例如，我們可能會說，汽車產業市場對我們來說偏慢。汽車 OEM 市場對我們來說偏慢。我們面臨一些較高的比較基期，而在第一季沒有看到太多活動。

But actually, we feel pretty good about our pipeline in the automotive industry, even in some markets like China where think of combustion conversion to EV and requiring additional investments in the body and the paint shop. We're seeing greater inquiries and expanded pipeline from before the end of the quarter, even through the current period.

但其實，我們對汽車產業的案源（pipeline）感覺相當不錯，即便是在像中國這樣的市場——想想內燃機轉向電動車，並需要在車身與塗裝車間追加投資。我們看到詢問度提高，案源也比季末之前更擴大，甚至延續到目前這段期間。

And it suggests to me that big picture, big manufacturers, they know the world is a noisy place. But if they're committed to moving in certain directions, they're going to make those investments. So it's a long-winded way of saying I don't see a lot of demand implications on the things -- on the new things that we have been absorbing here in the first four months of the year.

這讓我覺得，從大方向來看，大型製造商知道世界很吵雜。但如果他們承諾要往某些方向前進，他們就會做出那些投資。所以用比較冗長的方式來說，我沒有看到今年前四個月我們所吸收的這些新事件，對需求造成太多影響。

Okay. Great. And then I guess thinking about the second quarter and maybe the delays of the timing of shipments, especially for some of those powder orders, do we get like a normal seasonal bump up in the second quarter plus some of the orders that should have shipped in the first? Is that how we should think about it?

好的。很好。那我想再談第二季，以及可能的出貨時點延後，特別是一些粉體（powder）訂單，我們是否會在第二季看到正常的季節性上升，再加上原本應該在第一季出貨的一些訂單？我們應該這樣理解嗎？

Yeah. I think for the contractor business, our history has always been that Q2 is the top quarter. So I don't see any changes to that cadence. And I think on the orders that we just got in and recently, I mean, those are probably going to go off more in the back half with respect to the powder business. But for the legacy industrial business, we should be able to move those a little bit quicker.

是的。我認為就承包商業務而言，我們過去的歷史一直是第二季是最高的一季。所以我不認為那個節奏會有任何改變。而且我認為，至於我們剛拿到、近期拿到的那些訂單，就粉體業務而言，可能更多會在下半年反映出來。但對於既有的工業業務，我們應該能更快推動出貨。

Okay. Great. And then maybe a last one for me is on buybacks. You guys weren't too aggressive in the first quarter. How are you thinking about buybacks versus M&A deals? Can you do both?

好的。很好。那最後一個問題是關於庫藏股回購。你們在第一季並不算太積極。你們如何看待回購相對於併購（M&A）交易？兩者可以同時進行嗎？

This is Sanjiv Gupta. So I -- maybe I'll take a shot at it. So again, I think very consistent with how we've always done it. We will be very disciplined with our capital allocation framework. And obviously, the goal here is to drive shareholder return while maintaining our financial flexibility. So a strong balance sheet, we'll continue to preserve that.

我是 Sanjiv Gupta。所以我——我來嘗試回答。再次強調，我認為這與我們一貫的做法非常一致。我們會非常嚴謹地遵循資本配置框架。而且很明顯，目標是在維持財務彈性的同時，推動股東報酬。因此，我們會持續維持強健的資產負債表並加以保護。

And then whatever operating cash flow we generate, which we have been generating very positively, we'll be using that cash to fund our growth. We've talked about internal growth that will be invested in projects which meet our return thresholds.

接著，不論我們產生多少營運現金流——而我們一直都產生相當正向的現金流——我們會用這些現金來支持成長。我們談過內生成長，會投資於符合我們報酬門檻的專案。

And second priority would be the growth, which is external growth through disciplined M&A. Mark talked about it. And that really needs to meet our share -- needs to create the shareholder value and meet the return and integration threshold for us. And you've seen that recently with our current acquisitions, COROB, Color Service, and Radia.

第二優先順序會是成長，也就是透過嚴謹的併購來進行外生成長。Mark 也提到過。而那必須符合我們的——必須為我們創造股東價值，並達到報酬與整合門檻。你們最近也看到我們目前的收購案：COROB、Color Service，以及 Radia。

And then in terms of shareholder return, obviously, we'll continue with the dividend. And any excess cash will be returned to the shareholders, and we'll be doing it very opportunistically as we've always done. So in summary, very consistent with our capital allocation framework, which we have deployed in the market, that that will continue.

然後在股東報酬方面，很明顯我們會持續發放股利。任何多餘的現金都會回饋給股東，而且我們會一如既往地以非常機會主義的方式來執行。總結來說，這會非常一致地延續我們已向市場說明並已部署的資本配置框架。

Thank you. If there are no further questions, I will now turn the conference over to Mark Sheahan.

謝謝。如果沒有進一步的問題，我現在把電話會議交回給 Mark Sheahan。

Okay. Thank you very much for participating today. I look forward to seeing you some time down the road here, and thanks again for your interest in Graco.

好的。非常感謝各位今天的參與。期待未來某個時間再與各位見面，也再次感謝各位對 Graco 的關注。

This concludes our conference for today. Thank you all for participating and have a nice day. All parties may now disconnect.

今天的電話會議到此結束。感謝各位參與，祝各位有美好的一天。各方現在可以掛線。