Global Industrial Co (GIC) 2025 Q3 法說會逐字稿

Good afternoon, ladies and Gentlemen, and welcome to Global Industrial, a third-quarter '25 earnings call. Please note this event is being recorded. At this time, I would like to turn the call over to Mike Smargiassi of The Plunkett Group. Please go ahead.

女士們、先生們，下午好，歡迎參加全球工業公司2025年第三季財報電話會議。請注意，本次活動正在錄影。此時，我想把電話交給普朗克特集團的麥克‧斯馬吉亞西。請繼續。

Thank you and welcome to the Global Industrial third-quarter '25 earnings call.

謝謝大家，歡迎參加全球工業2025年第三季財報電話會議。

Today's call will include formal remarks from Anesa Chaibi, Chief Executive Officer, and Tex Clark, Senior Vice President and Chief Financial Officer.

今天的電話會議將包括執行長 Anesa Chaibi 和高級副總裁兼財務長 Tex Clark 的正式演講。

Formal remarks will be followed by a question-and-answer session.

正式致詞之後將進行問答環節。

Today's discussion may include certain forward-looking statements. It should be understood that actual results could differ materially from those projected due to a number of factors, including those described under the forward-looking statements caption and under risk factors in the company's annual report on Form 10k and quarterly reports on Form 10Q.

今天的討論可能包含某些前瞻性陳述。應理解，由於多種因素，實際結果可能與預測結果有重大差異，這些因素包括公司年度報告（10-K 表格）和季度報告（10-Q 表格）中「前瞻性聲明」標題和「風險因素」部分所描述的因素。

I would like to remind everyone That in Q4 this year our quarter will close on Saturday, January 3, '26, representing one additional week in our quarter compared to the prior year.

我想提醒大家，今年第四季將於 2026 年 1 月 3 日星期六結束，比前一年多一週。

While we are adding 4 working days to our quarter.

我們將季度增加 4 個工作天。

This is the period between the Christmas and New Year's holiday, which historically represents the lowest sales week of any given year.

這是聖誕節和新年假期之間的這段時間，歷史上這段時間通常是一年中銷售額最低的一周。

The press release is available on the company's website and has been filed with the SEC on a Form 8K.

新聞稿已發佈在公司網站上，並已透過 8K 表格向美國證券交易委員會提交。

This call is the property of Global Industrial Company. I will now turn the call over to Anesa.

本次通話屬於環球工業公司所有。現在我將把通話轉給阿內薩。

Thank you, Mike. Good afternoon, everyone, and Thank you for joining us.

謝謝你，麥克。各位下午好，感謝各位的參與。

Overall, we were pleased with our performance in the period as we delivered our second consecutive quarter of revenue growth, along with strong year-over-year profitability. We continue to manage the business proactively and have executed well.

總體而言，我們對本季的業績感到滿意，實現了連續第二季的營收成長，以及強勁的年成長獲利能力。我們繼續積極主動地管理業務，並且執行得很好。

In the quarter, revenue increased 3.3% to 353.6 million. We grew the top-line each month during the period, and growth has continued into the early parts of the fourth quarter.

本季營收成長3.3%，達3.536億美元。在此期間，我們的營收每個月都實現了成長，而這一成長動能一直延續到第四季初。

Performance was once again driven by our largest strategic accounts where good momentum and sales progress continues.

業績再次主要得益於我們最大的策略客戶，這些客戶保持著良好的銷售動能和持續的銷售進度。

This was partially offset by a reduction in our smallest and more transactional customers, which is in line with efforts to be more intentional and focused on how we go to market.

部分原因是由於我們最小、交易量更大的客戶的減少，這與我們更有意識、更專注於行銷的努力是一致的。

In addition, I'd like to highlight the results of our Canadian operations. Canada generated a second consecutive quarter of strong top-line expansion, which resulted in substantial operating leverage improvements in the local market. Investments made in recent years are delivering upon our expectations.

此外，我還想重點介紹一下我們在加拿大的業務成果。加拿大連續第二季實現了強勁的營收成長，顯著提高了當地市場的營運槓桿。近年來進行的投資正在達到我們的預期效果。

We expanded our distribution capacity, improved supply chain and procurement processes, and invested in our people and culture, all strategic steps that bring us closer to our customers and enable us to deliver the enhanced value they've been looking for.

我們擴大了分銷能力，改善了供應鏈和採購流程，並投資於我們的員工和企業文化，所有這些策略舉措都讓我們更貼近客戶，並使我們能夠提供他們一直尋求的更高價值。

Gross margin was 35.6% for the third-quarter, an increase of 160 basis points over the third-quarter of '24. Operating income improved over 18% (sic - see Financial Results, "18.5%") to 26.3 million, and we had strong cash flow generation in the quarter.

第三季毛利率為 35.6%，比 2024 年第三季成長了 160 個基點。營業收入成長超過 18%（原文如此 - 參見財務業績，「18.5%」），達到 2,630 萬，且本季現金流強勁。

We continue to advance the transformation of our business model and the placement of the customer at the centre of everything that we do.

我們將繼續推動業務模式轉型，並將客戶置於我們一切工作的中心。

We are reframing our go to market strategy to take a more intentional approach to attracting customers, renewing our focus on identifying and targeting key accounts, while aligning the organization to better meet and serve our customers' needs. We are working to expand the solutions and products we offer so that we are better positioned to deepen existing relationships and gain greater share of wallet over time.

我們正在重新調整市場進入策略，採取更有針對性的方式來吸引客戶，重新聚焦於識別和鎖定重點客戶，同時調整組織架構，以更好地滿足和服務客戶的需求。我們正在努力擴展我們提供的解決方案和產品，以便更好地深化現有關係，並隨著時間的推移獲得更大的市場份額。

We are also enhancing our ability to serve customers more effectively and with increased efficiency through implementation of our new CRM and reworking our processes, procedures, and technology to better serve our customers.

我們也透過實施新的客戶關係管理系統，並改善我們的流程、程序和技術，來提高服務客戶的能力，從而提高服務效率，更好地服務客戶。

We are leaning into these efforts and making steady progress against our strategy. My interactions with national vendor partners and customers at the Global Industrial Trade Show in September reinforced my belief that we are on the right track.

我們正全力推進這些工作，並朝著我們的策略穩步前進。9 月在全球工業貿易展上，我與國內供應商合作夥伴和客戶的交流，更加堅定了我之前的想法，那就是我們走在正確的道路上。

The show provided me with the opportunity to meet with a broad cross section of partners representing national brands as well as specialty products. I also met with customers in both structured meetings and breakouts and more importantly through spontaneous discussions on the show floor.

這次展會讓我有機會與眾多合作夥伴會面，他們既有代表全國性品牌的，也有代表特色產品的。我也會透過正式會議和分組討論會與客戶會面，更重要的是，在展會現場與客戶進行了自發性的交流。

These interactions highlighted a clear opportunity to become a more meaningful channel partner for our vendors and to broaden the relationships and the support we provide customers.

這些互動凸顯了一個明確的機遇，即成為供應商更有意義的通路合作夥伴，並擴大我們與客戶的關係以及為客戶提供的支援。

By better showcase casing our capabilities and telling our story with greater clarity.

透過更好地展示我們的能力，更清晰地講述我們的故事。

We will be well positioned for even greater success with a tremendous runway ahead of us and a unique platform to scale organically.

我們將擁有巨大的發展空間和獨特的有機成長平台，從而為更大的成功奠定堅實的基礎。

Now we'll turn the call over to Tex.

現在我們把電話交給Tex。

Thank you, Anesa. Third-quarter revenue was $353.6 million up 3.3% over Q3 of last year. US revenue was up 2.9%, and Canada revenue improved 12.3% in local currency.

謝謝你，阿內薩。第三季營收為 3.536 億美元，比去年第三季成長 3.3%。美國收入成長了 2.9%，加拿大收入以當地貨幣計算成長了 12.3%。

Price was positive, mid single-digits in the quarter. This was partially offset by a slight decline in total volume, which was a result of some intentional actions. While we saw order count growth in our largest and most strategic customers, we continued to see volume declines, primarily in one-time lower order value transactions. We believe the volume decline headwinds in this transactional segment will begin to wane in the fourth-quarter as we start to anniversary prior actions taken near the end of '24.

本季價格實現正成長，達到個位數中段水準。部分原因是由於一些有意為之的措施，導致總銷售量略有下降。雖然我們看到最大、最具戰略意義的客戶訂單數量有所增長，但我們仍然看到交易量下降，主要是一次性低價值訂單交易。我們認為，隨著我們開始慶祝 2024 年底前採取的行動週年紀念日，該交易領域的交易量下降的不利因素將在第四季度開始減弱。

These new actions include efforts to be more focused on how we go to market and emphasize our highest value potential customers. The quarter also saw some decline in federal government spending due to the timing of awards and budget uncertainty.

這些新措施包括更加重視市場推廣方式，並專注於我們最有價值的潛在客戶。由於撥款時間安排和預算不確定性，本季聯邦政府支出也有所下降。

As of today, we have seen growth continue into October.

截至今日，我們看到成長動能延續到了十月。

Gross profit for the quarter was $126 million. Gross margin was 35.6%, up 160 basis points from the third -quarter last year. We were very pleased with this margin performance, which reflects price capture and diminishing favourability of pre-tariff inventory that flows through the cost of sales on a FIFO basis.

本季毛利為1.26億美元。毛利率為 35.6%，較去年第三季成長 160 個基點。我們對此利潤率表現非常滿意，這反映了價格取得以及關稅前庫存的優惠性降低，這些庫存按先進先出法計入銷售成本。

On a sequential basis, as expected, gross margin pulled back from the record level generated in the second quarter of this year.

正如預期，毛利率環比回落，低於今年第二季創下的歷史最高水準。

The tariff environment remains highly fluid, and the cumulative impact of incremental tariffs remains potentially significant.

關稅環境仍然高度不穩定，逐步加徵關稅的累積影響仍可能十分顯著。

Since their second-quarter earnings report, additional tariffs were both announced and went into effect in early August, including reciprocal tariffs and a doubling of duties on steel and aluminium.

自第二季獲利報告發布以來，8 月初宣布並生效了額外的關稅措施，包括對等關稅以及將鋼鐵和鋁的關稅提高一倍。

As a result, we took an additional pricing action in late August which supported margins to the end of the quarter.

因此，我們在 8 月下旬採取了額外的定價措施，從而支撐了季度末的利潤率。

We continue to actively monitor the situation and are focused on supplier diversification, price management, and strategic cost negotiations. We maintain a healthy inventory position and continue to prioritize availability for our customers.

我們將繼續積極關注形勢，並專注於供應商多元化、價格管理和策略成本談判。我們保持健康的庫存狀況，並將繼續優先考慮為客戶提供產品。

Management of our margin profile remains a key area of focus. As we move through the current cycle, our goal is to manage the price/cost neutral.

利潤率管理仍然是我們關注的重點領域。隨著我們進入當前的周期，我們的目標是保持價格/成本中立。

In addition to tariff uncertainty, I would note that historically Q4 generates softer margins in part due to product mix and peak season freight surcharges. In the fourth-quarter, we expect to see continued year-to-year margin expansion. On a sequential quarter basis, there may be some margin pullback in line with historical performance.

除了關稅的不確定性之外，我還注意到，從歷史上看，第四季度的利潤率較低，部分原因是產品組合和旺季運費附加費。我們預計第四季度利潤率將繼續同比增長。從季度環比來看，利潤率可能會出現一些回落，這與歷史業績相符。

Selling general and administrative spending for the quarter was $99.7 million an increase of 6% from last year, and essentially flat on a sequential quarter basis.

本季銷售一般及行政支出為 9,970 萬美元，比去年同期成長 6%，與上一季基本持平。

As a percentage of net sales, SD&A was 28.2%, up 70 basis points from last year.

銷售、管理和行政費用佔淨銷售額的 28.2%，比去年增長了 70 個基點。

SD&A reflects strong general and discretionary cost control. This was offset by a year over year increase in variable compensation expenses related to performance within both selling commissions and our bonus pool accrual increasing compared to last year.

SD&A體現了嚴格的一般成本控制和酌情成本控制。但這被與業績相關的可變薪酬支出同比增加所抵消，銷售佣金和獎金池累計額均較去年有所增長。

Operating income from continuing operations was $26.3 million an increase of 18.5% in the third-quarter, and an operating margin was 7.4%. Operating cash flow from continuing operations was $22.6 million. Total depreciation in amortization expense in the quarter was $2 million including $0.8 million associated with the amortization of intangible assets, while capital expenditures were $0.7 million. We continue to expect '25 capital expenditures of approximately $3 million which primarily reflects maintenance-related investments and equipment within our distribution network.

第三季持續經營業務的營業收入為 2,630 萬美元，成長 18.5%，營業利益率為 7.4%。持續經營產生的經營現金流為2,260萬美元。本季折舊攤銷費用總額為 200 萬美元，其中包括與無形資產攤銷相關的 80 萬美元，而資本支出為 70 萬美元。我們預計 2025 年資本支出約為 300 萬美元，主要反映了我們分銷網絡內的維護相關投資和設備。

The company's tax rate in '25 is 26.4% versus 23.7% in '24. The increased rate in'25 results from an increase in non-deductible executive compensation.

該公司 2025 年的稅率為 26.4%，而 2024 年的稅率為 23.7%。2025 年稅率上升是由於不可抵扣的高階主管薪酬增加所致。

Let me now turn to our balance sheet.

現在讓我來看看我們的資產負債表。

We have a strong and liquid balance sheet with a current ratio of 2.2:1. As of 30 September, we had $67.2 million in cash, no debt, and over $120 million of excess availability under the credit facility.

我們擁有穩健且流動性良好的資產負債表，流動比率為 2.2:1。截至 9 月 30 日，我們擁有 6,720 萬美元現金，無債務，且在信貸額度下還有超過 1.2 億美元的可用餘額。

We continue to fund our quarterly dividend, and our board of directors declared a quarterly dividend of $0.26 per share of common stock. I will now turn it back to Anesa for some closing remarks.

我們繼續按季度派發股息，董事會宣布每股普通股派發 0.26 美元的季度股息。現在我將把發言權交還給阿內薩，請她作總結發言。

Thank you, Tex.

謝謝你，德克薩斯。

The team has done a great job executing our strategy throughout the company. We are effectively navigating the market disruption and uncertainty from the current tariff environment through a focus on what we can control.

團隊在公司內部執行我們的策略方面做得非常出色。我們正透過專注於我們能夠控制的事情，有效地應對當前關稅環境帶來的市場混亂和不確定性。

We are taking actions to better position global industrial to grow and believe we can open the aperture of the total addressable market that we pursue.

我們正在採取措施，更好地促進全球工業發展，並相信我們可以擴大我們所追求的潛在市場規模。

We remain well positioned to continue investing in our growth initiatives and to also evaluate strategic M&A. I'm encouraged by the progress we're making throughout the company and look forward to finishing '25 in a strong position that will set us up for a successful start to '26.

我們仍處於有利地位，可以繼續投資於我們的成長計劃，並評估策略併購。我為公司取得的進步感到鼓舞，並期待在 2025 年結束時取得強勁的成績，這將為我們 2026 年的成功開局奠定基礎。

Thank you for your interest in Global Industrial operator, please open the call for questions.

感謝您對全球工業運營商的關注，請開啟提問環節。

We will now begin the question and the answer session. (Operator Instructions)

現在開始問答環節。（操作說明）

Ryan Merkel, William Blair.

瑞安·默克爾，威廉·布萊爾。

I wanted to start off on price. Could you give us a sense for how much price impacted the quarter? And then I think you mentioned in August price increase. Can you give us a sense of what you think price will be in 4Q?

我想先從價格談起。您能否大致說明一下價格對本季業績的影響程度？然後，我想你還提到了8月的價格上漲。您能否大致預測一下第四季的價格走勢？

Hey Ryan, yeah, I'll go ahead and take that one. So pricing is, as costing the environment is fluid while we are working to diversify our supply chain and make sure like our first goal is inventory availability for our supply chain partners and our customers after the cost and increases due to the tariffs primarily is a real cost that we're incurring right now. So, as you mentioned August, we did take some additional pricing actions as we saw that inventory mix change as our cost of goods was mixing into more tariff inventory as we looked at that cost of goods flow, we saw more of that move in. So again, it was in that mid-single-digits range, just over 5% of price in the period that we saw that would include obviously anything that we took in that mid-August price increase. We would expect that to be pretty consistent or slightly higher in the fourth-quarter just given that timing of that second move. Now we know things are fluid. There are obviously threats in the marketplace of some additional tariffs, but there's also some potential green shoots or bright spots where maybe there's going to be some relaxing of tariffs, and we've seen some of that out there. So, we're going to continue to monitor that, and we'll be ready for those actions, and that's what the team is focused upon.

嘿，瑞恩，好的，我來接下這個任務。因此，定價是動態的，因為環境成本也在不斷變化，我們正在努力實現供應鏈多元化，並確保我們的首要目標是在扣除關稅成本和增加成本後，為我們的供應鏈合作夥伴和客戶提供庫存可用性，這主要是我們目前正在承擔的實際成本。正如您在 8 月提到的，我們確實採取了一些額外的定價措施，因為我們看到庫存結構發生了變化，我們的商品成本更多地融入了關稅庫存中。當我們觀察商品成本流動時，我們發現情況更加明顯。所以，漲幅再次達到了個位數中段，略高於我們所觀察期間價格的 5%，這顯然包括了我們在 8 月中旬價格上漲中納入的所有內容。考慮到第二次行動的時間，我們預計第四季這一數字將相當穩定或略高。現在我們知道情況瞬息萬變。市場上顯然存在一些額外關稅的威脅，但也出現了一些潛在的好轉跡像或亮點，例如關稅可能會有所放鬆，我們已經看到了一些這樣的跡象。所以，我們將繼續關注此事，並做好應對這些行動的準備，這也是團隊目前關注的重點。

Okay, got it. And then you mentioned the large strategic accounts. There was growth and I guess the smaller customers with a little bit of a decline. What, how much did the large strategic customers grow and do you expect to continue to accelerate that part of the business as we think about the next couple of quarters just given the initiatives and the focus there?

好的，明白了。然後您提到了大型策略客戶。整體有成長，但小客戶數量略有下降。大型策略客戶的成長幅度有多大？考慮到我們採取的舉措和重點，您是否預計在接下來的幾個季度裡，這部分業務將繼續加速成長？

Yeah, I guess. Thanks, Ryan, for the question.

嗯，大概是吧。謝謝瑞恩的提問。

Our strategic accounts had continued momentum. We're leaning into those gaining greater share of wallet and doing more to figure out what their needs are and adding assortment, skews, things along those lines so that we can serve that need as we look at.

我們的策略客戶保持了持續成長動能。我們正在向那些錢包份額越來越大的群體靠攏，努力了解他們的需求，並增加產品種類、特色產品等等，以便我們能夠滿足他們的需求。

We shared that we intentionally pulled back in certain areas, and it was for kind of the long tail, more transactional customers, and I think we're now eclipsing that, but we're also focused on as we look to reposition ourselves and go to market in '26 and beyond is realigning the org to then serve customers along specific industries and sectors. And we're piloting that right now, but it's just in the very early innings so that we're positioning ourselves for '26 in a in a positive way. So, we've still got some more work to do, but we are seeing some progress there on all fronts.

我們曾表示，我們有意在某些領域有所縮減，主要是為了服務那些交易量較大的長尾客戶，我認為我們現在已經超越了這些客戶，但我們也專注於在 2026 年及以後重新定位自身並進入市場，同時調整組織架構，以便更好地服務於特定行業和領域的客戶。我們現在正在試行這項計劃，但這只是初期階段，目的是為 2026 年的比賽做好積極準備。所以，我們還有一些工作要做，但我們在各個方面都看到了一些進展。

Okay, perfect. And then just to clean up, you mentioned October, there's continued growth. Should I take that to mean it's at that 3% level, or you mentioned the government's a little weaker, is perhaps the government, slowed down the business a little bit in October.

好的，完美。然後，為了總結一下，你提到了十月份，成長動能依然強勁。我該理解為經濟成長維持在 3% 的水平，還是您提到政府力度稍弱，也許政府在 10 月稍微放緩了商業活動？

We've seen state and local actually be positive. We've also seen some bounce back recovery on the Federal side just based on timing of when some things flowed through and actually were booked and billed, if you will. So, we're seeing some good momentum and we're in the process of close to closing the books for the month of October, but we've seen higher growth rates than what we're reporting today.

我們看到州和地方政府的反應實際上是正面的。我們也看到聯邦方面出現了一些反彈復甦，這僅僅是因為某些事項的流動、實際入帳和計費的時間發生了變化。所以，我們看到了一些良好的發展勢頭，並且我們正在接近完成 10 月的帳目結算，但我們之前看到的成長率比今天公佈的要高。

I don't know if Tex you'd like to add anything or not.

我不知道Tex你是否還有什麼要補充的。

No, I think you covered it perfectly.

不，我覺得你已經解釋得很清楚了。

All right, great to hear. Thanks.

好的，很高興聽到這個消息。謝謝。

Anthony Lebiedzinski, Sidoti and Company.

Anthony Lebiedzinski，Sidoti and Company。

So, certainly realize that you are being more intentional with your go to market strategy and seeing, less of the transactional customer, but just wondering if you we were to adjust for those transactional customers, what are you seeing from you're from the rest of your core S&B customers? Just wondering if you could speak to the health of that customer group, what you're seeing there.

所以，您當然意識到您在市場推廣策略上更加有意識，並且交易型客戶的數量有所減少，但我想知道，如果您調整策略以應對這些交易型客戶，您從其他核心S&B客戶那裡看到了什麼？我想了解您能否談談該客戶群的健康狀況，以及您觀察到的情況。

Okay, yeah, Tex you want to jump in, go ahead and take the lead.

好的，Tex，你想加入嗎？那就請你帶頭吧。

Yeah, thanks, Anesa. So yeah, as we talked about, if you think about some of the go back a year ago and when we had a CEO transition, some of the first things that Richard Leeds highlighted in his first public remarks were that we had gone into some of the activities that may have been a little bit more on the promotional end. They were driving value, they were driving orders, they were driving revenue. But when we look at the lifetime value of those customers, it wasn't the type of customer that that fit right for what we were trying to accomplish and who we could best serve in the long run. So those are some of those key changes that we've made. When we look at our broader portfolio of customers and that recurring revenue, the retention within our core business, not only small, medium business, but the public sector and the larger enterprise customers, we believe it's very healthy. We still see good retention rates in that area and it's an area that that's the area that we're continuing to focus on the intention. And how we service those businesses. So, I think we're fairly bullish on the health of that core customer and it's really been that more transactional customer that we've seen some slowdown and like we said, we think some of that some of those changes we made were about a year ago. They were in the early parts of Q4, so you'll have less headwinds from a year-on-year perspective than we've had so far this year. So that should be a benefit into the fourth-quarter.

是啊，謝謝你，阿內薩。是的，正如我們之前討論過的，如果你回想一下一年前我們進行首席執行官交接的時候，理查德·利茲在他的首次公開講話中強調的第一件事就是，我們開展了一些可能更偏向於宣傳的活動。他們創造了價值，他們帶來了訂單，他們帶來了收入。但當我們查看這些客戶的終身價值時，我們發現他們並不是我們想要實現的目標以及我們能夠長期最好服務的客戶類型。以上就是我們所做的一些關鍵改變。當我們審視我們更廣泛的客戶組合和經常性收入，以及我們核心業務的客戶留存率時（不僅包括中小企業，還包括公共部門和大型企業客戶），我們認為情況非常健康。我們仍然看到該領域擁有良好的客戶留存率，這也是我們將繼續重點關注的領域。以及我們如何為這些企業提供服務。所以，我認為我們對核心客戶的健康狀況相當樂觀，而真正出現放緩的是那些交易型客戶，就像我們之前說的，我們認為我們做出的一些改變大約是在一年前。當時正值第四季初期，因此從年比來看，你們面臨的阻力會比今年到目前為止還要小。所以這應該會對第四季有所幫助。

Gotcha. Okay, that's, that definitely helps. And then, just in terms of your comments about expanding solutions and products, how do we think about [youram] opportunity? I don't know if there's a specific number. I don't know if you're ready to share that, but as we think about, next year and beyond that, I mean, how do we think about, just the opportunity. For global industrial to participate for a higher product offering that you guys are planning to have.

明白了。好的，這肯定很有幫助。那麼，就您提到的擴展解決方案和產品而言，我們如何看待[youram]的機會？我不知道是否有一個具體的數字。我不知道你是否準備好分享這件事，但當我們思考明年以及更遠的未來時，我的意思是，我們該如何看待這個機會？為了讓全球工業界參與進來，以提供你們計劃推出的更高品質的產品。

Yeah, Anthony, that's a great question. I don't have a specific number right off, to share with you or communicate today. We, I have requested that the team look at kind of as we look at the go to market and the industries that we're going to serve. I think that'll help frame up for us respectively across each one of those verticals if you will, and then what we'll do is we'll share what we think that full opportunity is. But as you're well aware in the industrial space, especially in, distribution, industrial distribution. It's a double-digit tam across different dimensions, and it's we're going to be very intentional, and we're going to make some investments across certain industries and lean into others. So, I don't have a number today, but my hope is that I'll be in a better position to share with you once we wrap up the full year and what we're positioning and looking to move forward in '26 with.

是的，安東尼，這是一個很好的問題。我目前沒有具體的數字可以和您分享或溝通。我已經要求團隊研究我們的市場推廣策略以及我們將要服務的行業。我認為這有助於我們分別從各個垂直領域著手，然後我們將分享我們認為的全部機會是什麼。但正如您在工業領域，特別是分銷、工業分銷領域所熟知的那樣。這是一個涵蓋各個維度的兩位數目標，我們將非常有意識地進行投資，並在某些行業進行一些投資，同時增加對其他行業的投入。所以，我今天還沒有確切的數字，但我希望，等到我們結束今年的工作，並確定我們在 2026 年的定位和發展方向後，我能更好地與大家分享。

Understood. Okay. And then my last question, just thinking about your SD&A expenses, is the growth mostly incentive comp accrual, so as I look at the first-quarter, you guys were essentially flat in terms of your expense growth from the prior year. The second-quarter you're up 3.5% and then you're up 6% in the third-quarter. So maybe just help us better understand your expense growth and how do we think about that going forward.

明白了。好的。最後一個問題，關於你們的銷售、管理和行政費用，成長主要來自激勵性薪酬的提列嗎？我看了一下第一季度，你們的費用成長與前一年基本持平。第二季成長了 3.5%，第三季成長了 6%。所以，或許您可以幫助我們更了解您的支出成長情況，以及我們未來該如何應對。

Yeah, Anthony, I'll jump in on that one. So, if you think about it, last year when we reported our third-quarter, we were in a position where we're seeing revenue decline and some softness on the bottom line. As you can imagine that directly correlates to kind of how variable comp is earned both at the selling level of the individual contributor.

好的，安東尼，我也要參與討論。所以，如果你仔細想想，去年我們公佈第三季業績時，我們面臨的情況是營收下降，利潤也略顯疲軟。你可以想像，這與銷售人員的個人貢獻者如何獲得浮動薪酬直接相關。

The third-quarter this year where we're really looking to our plan and thinking about how that that's being accomplished. So, there's a big year to year differential just simply because we're at a point where we're growing our profit this year. Last year we were seeing some pullbacks, so just it's really the timing of that impact that is really the almost exclusive driver of the year-over-year change in our RSGA portfolio.

今年第三季度，我們將重點放在我們的計劃，並思考如何實現這些計劃。所以，之所以會出現較大的年度差異，只是因為我們今年的利潤正在成長。去年我們看到了一些回調，所以真正導致我們 RSGA 投資組合同比變化的幾乎唯一驅動因素，就是這種影響的時機。

Okay. All right, well, sounds good. Well, thank you very much and best of luck.

好的。好的，聽起來不錯。非常感謝，祝你好運。

Thank you.

謝謝。

This concludes our question-and-answer session and also concludes our call today.

我們的問答環節到此結束，今天的通話也到此結束。

Thank you for joining and have a nice evening. You may now disconnect.

感謝您的參與，祝您晚安。您現在可以斷開連線了。