康寧 (GLW) 2025 Q2 法說會逐字稿

Ladies and gentlemen, thank you for standing by. Welcome to the Corning Inc second quarter 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded. It is my pleasure to introduce to you, Ann Nicholson, Vice President of Investor Relations. Please go ahead.

女士們、先生們，感謝你們的支持。歡迎參加康寧公司 2025 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。我很高興向大家介紹投資者關係副總裁安‧尼科爾森 (Ann Nicholson)。請繼續。

Thank you, and good morning, everybody. Welcome to Corning's second quarter 2025 earnings call. With me today are Wendell Weeks, Chairman and Chief Executive Officer; and Ed Schlesinger, Executive Vice President and Chief Financial Officer.

謝謝大家，早安。歡迎參加康寧 2025 年第二季財報電話會議。今天與我一起出席的是董事長兼首席執行官溫德爾·威克斯 (Wendell Weeks) 和執行副總裁兼首席財務官埃德·施萊辛格 (Ed Schlesinger)。

I'd like to remind you that today's remarks contain forward-looking statements that fall within the meaning of the Private Securities Litigation Reform Act of 1995. These statements involve risks, uncertainties and other factors that could cause actual results to differ materially. These factors are detailed in the company's financial reports. You should also note that we'll be discussing our consolidated results using core performance measures, unless we specifically indicate our comments relate to GAAP data. Our core performance measures are non-GAAP measures used by management to analyze the business.

我想提醒大家，今天的言論包含前瞻性陳述，這些陳述符合 1995 年《私人證券訴訟改革法案》的涵義。這些聲明涉及風險、不確定性和其他可能導致實際結果大不相同的因素。這些因素在公司的財務報告中有詳細說明。您還應該注意，我們將使用核心績效指標來討論我們的合併結果，除非我們特別指出我們的評論與 GAAP 數據有關。我們的核心績效指標是管理階層用來分析業務的非 GAAP 指標。

For the second quarter, the difference between GAAP and core EPS primarily reflected noncash mark-to-market activity associated with the company's translated earnings contracts, foreign denominated debt and constant currency adjustments.

對於第二季度，GAAP 和核心 EPS 之間的差異主要反映了與公司轉換後的盈餘合約、外幣債務和恆定匯率調整相關的非現金以市價計價活動。

As a reminder, mark-to-market accounting has no impact on our cash flow. A reconciliation of core results to the comparable GAAP value can be found in the Investor Relations section of our website at corning.com. You may also access core results on our website with downloadable financials in the Interactive Analyst Center. Supporting slides are being shown live on our webcast. We encourage you to follow along. They're also available on our website for downloading.

提醒一下，以市價計價的會計對我們的現金流量沒有影響。核心績效與可比較 GAAP 值的對帳表可在我們網站 corning.com 的「投資者關係」板塊查看。您也可以存取我們網站的核心業績，並透過互動分析師中心下載財務資料。支援幻燈片正在我們的網路直播中播放。我們鼓勵您繼續關注。您也可以從我們的網站下載它們。

And now I'll turn the call over to Wendell.

現在我將把電話轉給溫德爾。

Thank you, Ann. Good morning, everyone. We delivered outstanding second quarter results. Our record sales and EPS both exceeded guidance. Year-over-year, sales grew 12% to $4 billion. Earnings per share grew more than double the rate of sales to $0.60. Operating margin expanded 160 basis points to 19%. Return on invested capital grew 210 basis points to 13.1%, and free cash flow grew 28% to $451 million.

謝謝你，安。大家早安。我們第二季的業績表現出色。我們的創紀錄銷售額和每股盈餘均超乎預期。與去年同期相比，銷售額成長了 12%，達到 40 億美元。每股收益成長超過銷售額成長率的兩倍，達到0.60美元。營業利益率擴大160個基點，達19%。投資資本報酬率成長 210 個基點，達到 13.1%，自由現金流成長 28%，達到 4.51 億美元。

Overall, key secular trends and our More Corning content strategy, drive demand for our capabilities, and we continue to capture the powerful, profitable growth outlined in our recently upgraded Springboard plan. As we look ahead, we expect our strong Springboard performance to continue. We're seeing a remarkable customer response to both our new Gen AI and US-based solar products and we're driving more Corning content into our mobile consumer electronics, display, automotive and optical communications platforms.

總體而言，主要的長期趨勢和我們的「更多康寧」內容策略推動了對我們能力的需求，並且我們將繼續抓住最近升級的 Springboard 計劃中概述的強勁、盈利的增長。展望未來，我們預期 Springboard 的強勁表現將會持續下去。我們看到客戶對我們的新 Gen AI 和美國太陽能產品反應熱烈，我們正在將更多的康寧內容引入我們的行動消費性電子產品、顯示器、汽車和光通訊平台。

We also expect an additional growth driver to emerge in the coming months as new and existing customers seek to leverage our large US advanced manufacturing footprint. Overall, we are well positioned to deliver durable growth through 2026 and beyond.

我們也預計，隨著新舊客戶尋求利用我們在美國龐大的先進製造業影響力，未來幾個月將出現額外的成長動力。總體而言，我們已做好準備，在 2026 年及以後實現持久增長。

But before we talk about the future, I'd like to take a moment to put our second quarter results in the context of our Springboard plant. We launched Springboard in quarter four 2023, explaining our plan to dramatically improve our sales and enhance our return profile and to increase our operating margin by 400 basis points to 20% by the end of 2026. We're now at the halfway point of our original Springboard plan. When we compare our second quarter 2025 results to our launch point, we grew sales 24%, adding more than $3 billion to our annualized run rate. We expanded operating margin by 270 basis points to 19% showing strong progress towards our target of 20%.

但在我們談論未來之前，我想花點時間將我們第二季的業績放在 Springboard 工廠的背景下。我們於 2023 年第四季度推出了 Springboard，闡述了我們大幅提高銷售額、增強回報狀況以及到 2026 年底將營業利潤率提高 400 個基點至 20% 的計劃。我們現在已經完成了最初的 Springboard 計劃的一半。當我們將 2025 年第二季的業績與我們的起始點進行比較時，我們的銷售額增長了 24%，年化運行率增加了 30 多億美元。我們的營業利潤率提高了 270 個基點，達到 19%，朝著 20% 的目標邁出了堅實的一步。

We grew EPS 54% more than twice the rate of sales. We expanded return on invested capital by 430 basis points, and we generated strong free cash flow. Clearly, this progress is impressive. And we expect our strong performance to continue. So let's look at our journey so far.

我們的每股盈餘成長率為 54%，是銷售額成長率的兩倍多。我們將投資資本回報率提高了 430 個基點，並產生了強勁的自由現金流。顯然，這項進步令人印象深刻。我們預計我們的強勁表現將會持續下去。讓我們回顧一下迄今為止的旅程。

Our original internal Springboard plan, which was the output of the strategic planning process we run with each of our market access platforms, was to add $5 billion in incremental annualized sales by the end of 2026. These were our actual business plans. We set our objectives and our compensation based upon those plans. When our businesses submit plans to corporate, they factor in a variety of probabilistic outcomes, they try to account for the known unknowns.

我們最初的內部 Springboard 計畫是我們針對每個市場進入平台運作的策略規劃流程的成果，目標是到 2026 年底增加 50 億美元的增量年銷售額。這些是我們的實際商業計劃。我們根據這些計劃設定我們的目標和薪酬。當我們的企業向公司提交計劃時，他們會考慮各種機率結果，並嘗試解釋已知的未知數。

The business plans aim for a 70% confidence interval. This means that based on their analysis, there is a 70% chance that they will deliver sales greater than or equal to that number. We then provided a higher confidence plan for our investors. At the corporate level, we probabilistically adjusted for factors, including potential macroeconomic slowdowns, changes in government policy and timing of multiple secular trends and our related innovations. Our risk adjustment was $2 billion. This is how we got to our original $3 billion high confidence plan.

商業計劃的目標是實現 70% 的置信區間。這意味著根據他們的分析，他們實現大於或等於該數字的銷售額的可能性為 70%。然後我們為投資者提供了更高信心的計劃。在公司層面，我們根據機率調整了各種因素，包括潛在的宏觀經濟放緩、政府政策變化、多種長期趨勢的時機以及我們的相關創新。我們的風險調整為20億美元。這就是我們最初制定的 30 億美元高信心計畫。

Remember, we purposely do this as a wedge. We weren't trying to guide every quarter for the next 12 quarters. It wouldn't be a straight line. That being said, our quarterly performance through 2024 demonstrates our powerful momentum. This chart illustrates that we are hitting or exceeding our critical milestones as sales tracked well above both our internal and high confidence plans through the first year.

請記住，我們故意這樣做是為了製造一個楔子。我們並不是想為接下來的 12 個季度的每個季度提供指導。它不會是一條直線。話雖如此，我們在 2024 年的季度業績證明了我們強勁的發展勢頭。這張圖表表明，我們正在達到或超過我們的關鍵里程碑，因為第一年的銷售額遠高於我們的內部和高信心計劃。

Our strategies are working and our customers are loving our innovations. Given our progress in March of this year, we upgraded our internal and high confidence plan by $1 billion, had $6 billion and $4 billion, respectively. So now let's look at our most recent quarter. As you can see, we've added $3.1 billion of incremental annualized sales since the launch of Springbok. Looking ahead, we expect to add another $600 million to our annualized sales run rate in the third quarter. At the halfway point of Springboard, we are on track and expect strong momentum going forward.

我們的策略正在發揮作用，我們的客戶也喜愛我們的創新。鑑於我們今年 3 月的進展，我們將內部和高信心計畫提高了 10 億美元，分別達到 60 億美元和 40 億美元。現在讓我們來看看最近一個季度。如您所見，自 Springbok 推出以來，我們的年銷售額增量已達 31 億美元。展望未來，我們預計第三季的年化銷售額將再增加 6 億美元。在 Springboard 的中途，我們已步入正軌並期待未來能有強勁的發展動能。

Now let me share just a few examples of what is driving our growth. Gen AI is clearly a positive for us. First, in our enterprise business, where we report sales for inside the data center, we saw a record $2 billion in sales last year. In quarter two, we grew enterprise sales 81% year-over-year.

現在，讓我分享幾個推動我們成長的例子。人工智慧對我們來說顯然是有利的。首先，在我們的企業業務中，我們報告資料中心內部的銷售額，去年我們的銷售額達到了創紀錄的 20 億美元。第二季度，我們的企業銷售額年增了 81%。

The primary technical driver behind that growth is what the industry calls the scale out of the network. That basically means that hyperscale customers are scaling out the GPU clusters with more and more connected AI nodes of server rack or simply put larger neural networks. Because each AI node is connected to the others in the cluster by fiber. This creates more volume for Corning.

這一成長背後的主要技術驅動力就是業界所說的網路規模。這基本上意味著超大規模客戶正在使用越來越多的伺服器機架連接的 AI 節點或簡單地使用更大的神經網路來擴展 GPU 叢集。因為每個 AI 節點都透過光纖與叢集中的其他節點相連。這為康寧創造了更多的銷售量。

We also have another significant upside opportunity inside the data center, driven by what the industry calls the scale up of the network. Hyperscalers are creating more capable nodes that move from less than 100 GPUs per node today to hundreds of GPUs per node in the future. Historically, an AI node has been within a single server wrap. As hyperscalers scale up, AI nodes are shifting to stretch across multiple server racks. This causes the distance to link these GPUs within the node to get longer. This will eventually cause the links to reach about 100 gigabit per second meter what we call the electrical to optical Frontier line, which roughly marks the point where fiber connections become more technicaleconomical than copper, creating a large potential opportunity for us.

我們在資料中心內部還有另一個重大的上升機會，這受到業界所謂的網路規模擴大的推動。超大規模運算中心正在創建功能更強大的節點，這些節點將從目前每個節點不到 100 個 GPU 增加到未來每個節點數百個 GPU。從歷史上看，AI 節點一直位於單一伺服器套件內。隨著超大規模的擴大，人工智慧節點正在轉移到跨多個伺服器機架。這使得節點內連接這些 GPU 的距離變得更長。這最終將使鏈路達到每秒約 100 千兆位元米，即我們所說的電到光邊界線，這大致標誌著光纖連接在技術上比銅線更具經濟性，為我們創造了巨大的潛在機會。

To help understand the size of this opportunity a single black well like node has more than 70 GPUs with more than 1,200 links using more than 2 miles of copper. As that node scales up, those 2 miles will eventually be replaced by fiber connections. And those miles will grow over time as more and more GPUs are included in the AI node. I'm sure you've seen announcements regarding co-packaged optics for CPO. That is one of the technologies that help activate the scale-up opportunity for us.

為了幫助理解這個機會的規模，一個黑井狀節點擁有超過 70 個 GPU，超過 1,200 個鏈接，使用超過 2 英里的銅線。隨著該節點規模的擴大，這 2 英里最終將被光纖連接所取代。隨著 AI 節點中包含越來越多的 GPU，這些里程將隨著時間的推移而增長。我相信您已經看到有關 CPO 共同封裝光學元件的公告。這是幫助我們實現擴大規模機會的技術之一。

If we succeed technically, the scale-up opportunity is 2 to 3 times the size of our existing $2 billion enterprise business. And we're working with key customers and partners as we speak, on making that future a reality. Another opportunity for our growth tied to Gen AI is playing out in our carrier business. Now we've been studying this space for some time, and we've been seeing that most long-haul routes were approaching their maximum data rate capacity, creating a need for many new high-bandwidth low-latency lengths between cities and data center campuses. And this essentially requires a rebuild of the long-haul networks.

如果我們在技術上取得成功，那麼擴大規模的機會將是現有 20 億美元企業業務的 2 到 3 倍。目前，我們正在與主要客戶和合作夥伴攜手努力，將這一未來變為現實。與 Gen AI 相關的另一個成長機會正在我們的營運商業務中顯現。我們已經研究這個領域一段時間了，我們發現大多數長途路線都接近其最大資料速率容量，因此需要在城市和資料中心園區之間建立許多新的高頻寬低延遲長度。這實際上需要重建長途網路。

Our customers consider the long-haul rebuilds as they think about that technically and economically, they see great potential economic benefit from fitting more fibers into a given conduit. This means they prefer denser fiber optic cables. To create a high-density solution, we applied our core innovations from inside the data center to this outside plan challenge. We introduced this new technology package to connect data center campuses. In the industry, this is referred to as DCI or Data Center Interconnect.

我們的客戶考慮進行長距離重建，因為他們從技術和經濟角度考慮，他們認為在給定的管道中安裝更多的光纖可以帶來巨大的潛在經濟效益。這意味著他們更喜歡密度更高的光纖電纜。為了創建高密度解決方案，我們將資料中心內部的核心創新應用於此外部計劃挑戰。我們引入了這個新技術包來連接資料中心園區。在業界，這被稱為 DCI 或資料中心互連。

We shared last year that we reached an agreement with Lumen Technologies to provide our new Gen AI fiber and cable system that enables Lumen to fit anywhere from 2 to 4 times the amount of fiber into their existing conduit and the agreement reserved 10% of our global fiber capacity for 2025 and 2026. We've now fully commercialized this product set and we have three industry-leading customers adopting the technology. That being said, we are just in the very beginning of this new market. We expect this business to scale rapidly, reaching a $1 billion opportunity for us by the end of the decade.

我們去年分享了與 Lumen Technologies 達成協議的消息，我們將為其提供新的 Gen AI 光纖和電纜系統，使 Lumen 能夠將 2 到 4 倍的光纖裝入其現有管道，並且該協議為 2025 年和 2026 年預留了 10% 的全球光纖容量。我們現在已經完全商業化了該產品系列，並且有三個領先業界的客戶採用該技術。話雖如此，我們才剛進入這個新市場。我們預計這項業務將迅速擴大，到本世紀末將為我們帶來 10 億美元的業務機會。

Now I'll turn to our growth opportunity in Solar. At our March IR event, we shared our low-risk, high-return strategy to reenter the solar market. We generated over $1 billion in cash from 2020 to 2024 in this platform. We funded the expansion of our manufacturing assets with the growing cash flow generated from the assets we acquired for less than $0.10 on the dollar, customer funding and government support, all while generating positive cash flow every year. As a result, we have now built a strong foundation for rapidly accelerating growth.

現在我將談談我們在太陽能領域的成長機會。在三月的投資者關係活動中，我們分享了重新進入太陽能市場的低風險、高回報策略。2020年至2024年，我們在這個平台上創造了超過10億美元的現金。我們以不到 0.10 美元的價格收購的資產所產生的不斷增長的現金流、客戶資金和政府支持為我們的製造資產擴張提供資金，同時每年產生正現金流。因此，我們現在已經為快速成長奠定了堅實的基礎。

We made advancements to serve higher end ship segment in semiconductors, and we are on track to double our semiconductor business by the end of the decade. We activated idle assets to serve the need for domestic solar polysilicon. And we added the capability to transform our polysilicon into higher-value domestically made solar wafers, all integrated together on our campus in Michigan.

我們在服務高端船舶半導體領域方面取得了進展，我們預計在 2020 年前實現半導體業務翻倍。盤活閒置資產，滿足國內太陽能多晶矽需求。我們還增加了將多晶矽轉化為更高價值的國產太陽能晶片的能力，所有這些都在我們位於密西根州的園區內整合在一起。

We now have committed customers for 100% of our polysilicon and wafer capacity available in 2025 and 80% of our capacity for the next five years. Because we built this platform so quietly while growing our cash flow, our new Solar MAP hasn't garnered much attention from investors relative to the significance of the opportunity. We expect to triple our sales run rate by 2027, adding $1.6 billion of new annualized revenue to Corning's earnings power.

目前，我們已向客戶承諾，2025 年我們將向客戶供應 100% 的多晶矽和晶圓產能，並向客戶承諾未來五年內供應 80% 的產能。由於我們在增加現金流的同時悄悄地建立了這個平台，因此相對於這一機會的重要性，我們的新太陽能 MAP 並沒有引起投資者的太多關注。我們預計到 2027 年我們的銷售運行率將增加兩倍，為康寧的獲利能力增加 16 億美元的新年收入。

Finally, we also expect an additional growth driver to emerge in the coming months, as new and existing customers seek to leverage our large US advanced manufacturing footprint. It is still early days but this could become a major trend depending how trade policy turns out. Watch this space, and we'll keep you posted.

最後，隨著新舊客戶尋求利用我們在美國龐大的先進製造業影響力，我們也預計未來幾個月將出現額外的成長動力。雖然現在還為時過早，但這可能成為一種主要趨勢，具體取決於貿易政策的結果。請關注此空間，我們將及時向您通報最新情況。

With that, I'll leave you with this. We delivered outstanding second quarter results that exceeded expectations. We've made great progress to date on our Springboard plan, halfway through the plan. We grew sales 24%, adding more than $3 billion to our annualized run rate. We expanded operating margin by 270 basis points to 19%, showing strong progress on our target of 20%. We grew EPS 54% more than twice the rate of sales. We expanded return on invested capital by 430 basis points, and we generated strong free cash flow. And we're experiencing strong growth drivers that increase our confidence in maintaining our momentum to 2026 and beyond.

就這樣，我就把這個留給你們了。我們第二季的業績表現優異，超乎預期。到目前為止，我們的 Springboard 計劃已經進行了一半，並且取得了巨大進展。我們的銷售額成長了 24%，年化營業額增加了 30 多億美元。我們的營業利潤率提高了 270 個基點，達到 19%，向我們 20% 的目標邁出了堅實的一步。我們的每股盈餘成長率為 54%，是銷售額成長率的兩倍多。我們將投資資本回報率提高了 430 個基點，並產生了強勁的自由現金流。我們正在經歷強勁的成長動力，這增強了我們對保持成長勢頭至 2026 年及以後的信心。

Now I'll turn it over to Ed for more detail on our results and outlook.

現在我將把話題交給 Ed，讓他詳細介紹我們的業績和前景。

Thank you, Wendell. Good morning, everyone. We delivered excellent second quarter results that exceeded the expectations we set in April. Year-over-year in Q2, sales were up 12%, while EPS grew 28%. Operating margin expanded 160 basis points to 19%, ROIC grew 210 basis points to 13.1% and free cash flow grew 28% to $451 million.

謝謝你，溫德爾。大家早安。我們第二季的業績非常出色，超出了我們四月設定的預期。與去年同期相比，第二季銷售額成長了 12%，每股收益成長了 28%。營業利潤率擴大 160 個基點至 19%，ROIC 成長 210 個基點至 13.1%，自由現金流成長 28% 至 4.51 億美元。

Looking ahead, we expect Q3 to be another strong quarter. We expect double-digit year-over-year sales and earnings growth, with sales of $4.2 billion and profit again growing faster than sales with EPS in the range of $0.63 to $0.67. We expect to continue expanding our operating margin as we march toward our springboard target of 20%. We also anticipate continued strong growth in our enterprise business, driven by our new products for Gen AI, and we're advancing significant growth opportunities across the company, as Wendell just described.

展望未來，我們預計第三季將再次表現強勁。我們預計銷售額和獲利將實現兩位數年成長，銷售額將達到42億美元，利潤成長將再次超過銷售額，每股收益將在0.63美元至0.67美元之間。我們預計營業利潤率將持續提升，並朝著20%的跳板目標邁進。我們也預計，在 Gen AI 新產品的推動下，我們的企業業務將繼續強勁成長，正如溫德爾剛才所描述的，我們正在整個公司範圍內推進重大成長機會。

Two other points I want to note related to our third quarter guidance. First, in Q3, our guidance again factors in about $0.01 to $0.02 for the impact of currently enacted tariffs, about the same level we saw in Q2. Our long-standing philosophy to locate our manufacturing operations close to our customers serves as a natural hedge against tariffs and mitigates the financial impact.

我想指出與我們第三季指引有關的另外兩點。首先，在第三季度，我們的指導再次將目前實施的關稅的影響考慮在內，約為 0.01 至 0.02 美元，與我們在第二季度看到的水平大致相同。我們長期以來的理念是將製造業務設在靠近客戶的地方，這可以自然地對沖關稅並減輕財務影響。

Second, we shared with you last quarter that we are accelerating our production ramp for new products. given high customer demand for our new Gen AI products for inside and outside the data center and for our new Solar offerings.

其次，我們上個季度曾與大家分享過，我們正在加速新產品的生產，因為客戶對我們資料中心內外的新型 Gen AI 產品以及我們的新太陽能產品的需求很高。

Our third quarter guidance includes temporarily higher costs associated with these ramps of $0.02 to $0.03 in the quarter. We expect the impact of these costs to dissipate as our production and sales increase. Overall, we feel great about our Springboard performance to date. As you can see by our guidance, we expect our momentum to continue and we're energized by the tremendous opportunity for value creation we've built for our shareholders.

我們的第三季指引包括與這些成長相關的暫時更高的成本，本季成本將增加 0.02 美元至 0.03 美元。我們預計，隨著產量和銷售量的增加，這些成本的影響將會消失。總體而言，我們對 Springboard 迄今為止的表現感到非常滿意。正如您從我們的指導中看到的，我們預計我們的勢頭將繼續下去，我們為股東創造的巨大價值機會也為我們注入了活力。

With that, let me share some more detail on what we're seeing in our businesses. In Optical Communications, second quarter sales grew 41% year-over-year to $1.6 billion. Growth was led by strong adoption of our AI products in the enterprise space, which was up 81% year-over-year. We also saw strong growth in our carrier business, which was up 16% year-over-year. This was driven by two factors. First, as a reminder, we categorize our Gen AI products that interconnect data centers in our carrier business.

有了這些，讓我來分享一些我們在業務中看到的更多細節。光通訊領域第二季銷售額年增 41%，達 16 億美元。成長主要得益於我們的人工智慧產品在企業領域的大力應用，年增了 81%。我們的承運業務也實現了強勁成長，年成長 16%。這是由兩個因素造成的。首先，提醒一下，我們將互連資料中心的 Gen AI 產品歸類為營運商業務。

We began shipping these products in the first quarter. We doubled sales from first quarter levels in the second quarter. We're still in the very beginning of this opportunity. And as you heard from Wendell, this could be a $1 billion business for us by the end of the decade. Additionally, carriers have completed drawing down inventory they built during the pandemic, and they are now purchasing at their rate of deployment.

我們在第一季開始運送這些產品。我們第二季的銷售額比第一季翻了一番。我們仍處於這項機遇的起步階段。正如溫德爾所說，到本世紀末，這對我們來說可能是一個價值 10 億美元的業務。此外，航空公司已經完成了在疫情期間建立的庫存消耗，目前正在按照部署速度進行採購。

This also contributed to year-over-year sales growth in our carrier business. And as noted in recent public statements, carriers are planning to expand their fiber networks going forward. So this sets the stage for additional growth. Net income for the second quarter was $247 million, up 73% year-over-year with strong incremental profit on the additional volumes. Moving to display.

這也促進了我們的營運商業務銷售額的同比增長。正如最近的公開聲明中所指出的，營運商正計劃擴大其光纖網路。因此，這為進一步的成長奠定了基礎。第二季淨收入為 2.47 億美元，較去年同期成長 73%，新增銷售帶來強勁的增量利潤。移至顯示。

In the second quarter, sales were $898 million, and net income was $243 million, both consistent with the first quarter. For the full year, our expectations for the retail market remain unchanged. We expect TV unit sales to be consistent with 2024 and TV screen size growth of about an inch. As a reminder, we successfully implemented double-digit price increases in the second half of 2024 to ensure that we can maintain stable US dollar net income in a weaker yen environment.

第二季銷售額為8.98億美元，淨利為2.43億美元，均與第一季持平。對於全年而言，我們對零售市場的預期保持不變。我們預計電視銷量將與 2024 年保持一致，電視螢幕尺寸將增長約一英寸。提醒一下，我們在2024年下半年成功實現了兩位數的價格上漲，以確保我們能夠在日圓走弱的環境下保持穩定的美元淨收入。

We hedged our yen exposure for 2025 and 2026 with hedges in place beyond 2026. In 2025, we reset our yen core rate to JPY120 to the dollar, consistent with our hedge rate. We are not recasting our 2024 financials because we expect to maintain the same profitability in display at the new quarry. We guided full year net income of $900 million to $950 million in 2025 and net income margin of 25%, consistent with the last five years. Clearly, we are tracking ahead of that guidance in the first half of 2025.

我們對沖了 2025 年和 2026 年的日圓風險敞口，並在 2026 年後採取了對沖措施。2025年，我們將日圓核心匯率重設為1美元兌120日圓，與我們的對沖利率一致。我們不會重塑 2024 年的財務狀況，因為我們預期新採石場的獲利能力將保持不變。我們預計 2025 年全年淨收入將達到 9 億至 9.5 億美元，淨收入利潤率為 25%，與過去五年保持一致。顯然，我們將在 2025 年上半年提前實現這一目標。

We expect our profitability levels to continue in the second half and now expect to be at the high end of the $900 million to $950 million net income range and for margin to be at least 25%. Looking ahead, we expect the Q3 glass market and our volume to be similar to Q2 and for our pricing to be consistent sequentially. In Display overall, we are maintaining our market technology and cost leadership while benefiting from market growth and a glass supply demand environment that is balanced to tight.

我們預計下半年我們的獲利水準將持續下去，目前預計淨收入將達到 9 億至 9.5 億美元的高端，利潤率至少為 25%。展望未來，我們預計第三季玻璃市場和銷售量將與第二季相似，且我們的定價將保持一致。在整體顯示領域，我們保持了市場技術和成本領先地位，同時受益於市場成長和平衡至緊張的玻璃供需環境。

Turning to Specialty Materials. Sales were up 9% year-over-year, primarily driven by continued adoption of our premium glass innovations in Gorilla Glass. Additionally, some OEM customers purchased in advance of anticipated tariffs. We expect OEMs to adjust their purchases in the second half of 2025 and have factored that into our Q3 guidance. Net income was up 29% year-over-year to $81 million, primarily driven by strong demand for our premium glass innovations.

轉向特種材料。銷售額年增 9%，主要得益於我們持續採用大猩猩玻璃等優質玻璃創新。此外，一些 OEM 客戶在預期關稅之前就進行了購買。我們預計 OEM 將在 2025 年下半年調整其採購量，並將其納入我們的第三季指引中。淨收入年增 29% 至 8,100 萬美元，主要得益於市場對優質玻璃創新的強勁需求。

Turning to Automotive. As a reminder, in Q1, we graduated our auto glass business and together with our Environmental Technologies business, created this segment. We ended 2023 with a triple-digit automotive glass business, and we expect it to triple by the end of 2026.

轉向汽車。提醒一下，在第一季度，我們完成了汽車玻璃業務的升級，並與環境技術業務一起創建了這個部門。截至 2023 年，我們的汽車玻璃業務實現了三位數的成長，預計到 2026 年底將成長兩倍。

In the second quarter, Automotive sales were $460 million, down 4% year-over-year, primarily driven by weaker light and heavy-duty markets in Europe and North America. Net income was $79 million, up 11% year-over-year, driven by strong manufacturing performance offsetting lower sales. We're focused on executing our More Corning growth strategy in automotive as additional content is required in upcoming vehicle emissions regulations and as technical glass and optics gain further adoption in vehicles. In Life Sciences, sales were consistent with the prior year and net income grew 6%.

第二季度，汽車銷售額為 4.6 億美元，年減 4%，主要原因是歐洲和北美輕型和重型市場疲軟。淨收入為 7,900 萬美元，年增 11%，這得益於強勁的製造業績抵消了銷售額的下降。我們專注於在汽車領域實施「更多康寧」成長策略，因為即將出台的汽車排放法規需要增加更多內容，而且技術玻璃和光學元件在汽車中的應用也越來越廣泛。生命科學領域的銷售額與前一年持平，淨收入成長 6%。

And finally, in Hemlock and Emerging Growth Businesses, sales were up 31% year-over-year driven by increased solar and semiconductor polysilicon volume. Our new Solar business currently sits in this segment. We plan to build it into a $2.5 billion revenue stream by 2028. We're commercializing our new made in America ingot and wafer products. We expect our new wafer facility to come online in Q3 and we expect to begin shipping later this year.

最後，在鐵杉和新興成長業務方面，由於太陽能和半導體多晶矽產量增加，銷售額較去年同期成長 31%。我們的新太陽能業務目前屬於這一領域。我們計劃在 2028 年將其打造成為 25 億美元的收入來源。我們正在將新製造的美國錠和晶片產品商業化。我們預計我們的新晶圓工廠將於第三季投入使用，並預計今年稍後開始出貨。

We have committed customers for 100% of our polysilicon and wafer capacity available in 2025 and 80% of our capacity for the next five years. As we guided, our Q2 net income reflected the temporarily higher production ramp costs for our new Solar offerings.

我們已向客戶承諾，2025年將提供100%的多晶矽和晶圓產能，並在未來五年內提供80%的產能。正如我們所預期的，我們的第二季淨收入反映了我們新太陽能產品的暫時較高的生產提升成本。

With that, I'll shift from segment results to free cash flow. We continue making strong progress in 2025. In the second quarter, free cash flow grew 28% year-over-year to $451 million. We continue to expect to generate a significant amount of free cash flow this year, and we expect to invest approximately $1.3 billion in capital. Moving to capital allocation. As we previously shared with you, our upgraded springboard plan includes higher sales and higher profit. We expect to convert that higher profit into more cash flow. And as I just noted, we're making nice progress.

有了這些，我將從分部業績轉向自由現金流。2025年我們將繼續取得長足進步。第二季度，自由現金流年增28%至4.51億美元。我們預計今年仍將產生大量自由現金流，並預計將投資約 13 億美元的資本。轉向資本配置。正如我們之前與您分享的，我們升級的跳板計劃包括更高的銷售額和更高的利潤。我們希望將更高的利潤轉化為更多的現金流。正如我剛才提到的，我們正在取得良好進展。

So how do we choose to invest the expected higher cash flow? Companies do capital allocation in different ways. We prioritize investing in organic growth opportunities that drive significant returns and we grow primarily through innovation. We believe this creates the most value for our shareholders over the long term. Our investors have confirmed this.

那我們該如何選擇投資預期更高的現金流呢？公司以不同的方式進行資本配置。我們優先投資能夠帶來可觀回報的有機成長機會，並且主要透過創新實現成長。我們相信，從長遠來看，這將為我們的股東創造最大的價值。我們的投資者已經證實了這一點。

As we see high return opportunities in the future, we will invest in those opportunities. We also seek to maintain a strong and efficient balance sheet. We're in great shape. We have one of the longest debt tenures in the S&P 500. Our current average debt maturity is about 21 years with only about $1.5 billion in debt coming due over the next five years and we have no significant debt coming due in any given year.

當我們看到未來的高回報機會時，我們就會投資這些機會。我們也力求維持強勁、高效的資產負債表。我們的狀態非常好。我們的債務期限是標準普爾 500 指數中最長的之一。我們目前的平均債務期限約為 21 年，未來五年內到期的債務只有約 15 億美元，而且我們在任何一年都沒有重大債務到期。

Finally, we expect to continue our strong track record of returning excess cash to shareholders. We already have a strong dividend. Therefore, as we go forward, our primary vehicle for returning cash to shareholders will be share buybacks. And we have an excellent track record.

最後，我們希望繼續保持良好的業績記錄，向股東返還超額現金。我們已經獲得了豐厚的股息。因此，在未來的發展中，我們向股東返還現金的主要方式將是股票回購。我們擁有出色的業績記錄。

Over about the last decade, we repurchased 800 million shares, close to a 50% reduction in our outstanding shares, which at today's share price has created $26 billion in value for our shareholders. Because of our growing confidence in Springboard, we started to buy back shares in the second quarter of 2024, and we've continued to do so since then. In the first quarter of 2025, we invested another $100 million in repurchases. In the second quarter, we continue to buy back shares, and we will expect to continue buying back shares in the third quarter.

在過去十年左右的時間裡，我們回購了 8 億股股票，相當於減少了流通股數的 50%，以今天的股價計算，為我們的股東創造了 260 億美元的價值。由於我們對 Springboard 的信心不斷增強，我們從 2024 年第二季開始回購股票，並且從那時起就一直這樣做。2025年第一季，我們又投資了1億美元回購。第二季我們持續回購股票，預計第三季也會繼續回購股票。

So I'll quickly wrap up today. We delivered outstanding second quarter results, exceeding guidance with record sales and EPS. We expect Q3 to be another strong quarter with double-digit sales and earnings growth. Since the start of Springboard, we've significantly grown sales. We've grown EPS more than twice the rate of sales, and we are generating strong free cash flow. We've substantially improved our return profile.

所以我今天就快速結束吧。我們第二季的業績表現出色，銷售額和每股盈餘均創歷史新高，超乎預期。我們預計第三季將再次表現強勁，銷售額和獲利將實現兩位數成長。自 Springboard 成立以來，我們的銷售額顯著成長。我們的每股盈餘成長率是銷售額成長率的兩倍多，我們正在產生強勁的自由現金流。我們已大幅改善了我們的回報狀況。

So overall, we feel great about our progress. With that, I'll turn it back to Ann.

總的來說，我們對我們的進展感到非常滿意。說完這些，我就把它交還給安。

Thanks, Ed. Okay. Operator, we're ready for our first question.

謝謝，艾德。好的。接線員，我們已經準備好回答第一個問題了。

(Operator Instructions)

（操作員指示）

Wamsi Mohan, Bank of America.

美國銀行的 Wamsi Mohan。

Wendell, some of your customers are facing maybe more disruption than you are relative to tariffs. Can you comment on where you've seen pull-forward activity within that customer base, both in the second quarter and where you're expecting some of that might continue into the third quarter of this year as well? If you could just -- it's clear that something happened in specialty, but if you could share some color on that and if there are other markets where this is happening as well.

溫德爾，在關稅方面，你的一些客戶可能比你面臨更大的干擾。您能否評論一下您在第二季度看到的客戶群中的提前活動，以及您預計其中一些活動可能會持續到今年第三季？如果您可以的話——很明顯，專業領域發生了一些事情，但您是否可以分享一些詳細信息，以及是否其他市場也發生了這種情況。

Wamsi, this is Ed. I'll take that one. So I think the two places in particular, where we did see some customers buying ahead of expected tariffs were in Gorilla, as we shared on the call and in display. We are expecting that to adjust in the second half. And in both of those spaces, we're not changing our view of the markets for the full year, the retail markets or the end markets. So we expect that to normalize. Now our guidance for Q3 and the way we're thinking about going forward factors that in.

Wamsi，我是 Ed。我接這個。因此，我認為，特別是在 Gorilla 這兩個地方，我們確實看到一些客戶在預期關稅之前進行購買，正如我們在電話和展示中所分享的那樣。我們預計下半年情況會有所調整。在這兩個領域，我們都不會改變對全年市場、零售市場或終端市場的看法。因此我們期望這種情況能夠正常化。現在，我們對第三季的指導以及我們對未來發展的思考都考慮到了這一點。

Does that makes sense to you, Wamsi? So basically, we do our calculation and our estimates of what we think that is, right? And then we try to take it out of our next quarter guide. It may happen that way. It may not happen that way, but we try to conservatively portray what we see as supply chain.

這對你來說有意義嗎，Wamsi？所以基本上，我們會對我們認為的情況進行計算和估計，對嗎？然後我們嘗試將其從下一季的指南中刪除。有可能會發生這樣的事。事情可能不會這樣發生，但我們試圖保守地描述我們所看到的供應鏈。

Right. No, that makes sense. I guess just to clarify, you're saying that in Q2, you did see an uptick in specialty. So that impacts Q3, Q4 versus first half. But more specifically, are you seeing any impact in Q3 in your guide from a full par perspective as well, understanding that your full year didn't change? Does that mean that sequential trends in Q4 should be worse than normal?

正確的。不，這很有道理。我想澄清一下，您說的是，在第二季度，您確實看到了專業化的上升。因此，這會對第三季、第四季和上半年產生影響。但更具體地說，從全年來看，您是否也看到第三季對您的指南產生了影響，因為全年沒有變化？這是否意味著第四季度的連續趨勢應該比正常情況更差？

No. What we did is -- we'll see what actually happens. But what you note, but Ed is saying, is it in -- I guess, since we did this in Q1 we had this question as well, which was do we see any effects from our customers trying to build supply chain ahead of tests. We said, yes, we see some. And what we do is remain an estimate of that, and then we basically put in our Q2 guide that the supply chain would be reduced. So in other words, it depressed our revenue guide in our earnings guide for Q2.

不。我們所做的是——我們將看看實際會發生什麼。但是您注意到了什麼，但是 Ed 所說的是 - 我想，由於我們在第一季就這樣做了，所以我們也有這個問題，那就是我們是否看到客戶在測試前試圖建立供應鏈的任何影響。我們說，是的，我們看到了一些。我們所做的就是對此進行估計，然後我們基本上在第二季指南中指出供應鏈將會減少。換句話說，它壓低了我們第二季獲利指南中的收入指南。

We're doing the same type thing here for Q3, which is we take a look at the first half, what do we think since we haven't changed our total year outlook. Or what do we think our customers have done to do any pull ahead, right? And then what we've done is we've actually reduced quarter three in our guide by what that amount is. So actually, just to be precise with you, we already tried to take that out of our Q3 guide. Does that make sense, Wamsi?

我們對第三季做了同樣的事情，也就是看看上半年，我們的想法是什麼，因為我們沒有改變全年的展望。或者我們認為我們的客戶做了什麼來取得領先，對嗎？然後我們所做的就是，實際上將指南中的第三季減少了這個數字。因此實際上，為了準確起見，我們已經嘗試將其從我們的第三季指南中刪除。這樣有道理嗎，Wamsi？

Absolutely. No, no, that's great. That makes a lot of sense, Wendell. And if I could, just -- could you share any color -- on you seem very, very bullish on the Solar opportunity. We just had some legislation passed that's taking away some of the incentives on renewables. Can you just put that in context for us we should be thinking about Corning, specifically your progress in that market?

絕對地。不不不，那太好了。這很有道理，溫德爾。如果可以的話，您能否分享一下您似乎非常看好太陽能機會的情況？我們剛剛通過了一些立法，取消了對再生能源的一些激勵措施。您能否為我們簡單介紹一下我們應該考慮康寧的情況，特別是貴公司在該市場的進展？

Yes. If you look at the reconciliation bill, right? There's a lot of changes, but one thing didn't change, is that the US government is continuing to incent a US manufacturing of Solar products and its preference for domestic content.

是的。如果你看和解法案，對嗎？有很多變化，但有一件事沒有改變，那就是美國政府正在繼續激勵美國製造太陽能產品以及對國內產品的偏好。

This plays out in a number of different ways in the actual test of the legislation. But the core piece is that the hunks that we needed around the advanced manufacturing tax credits, they remained in place. And there were additions to various pieces of that encourage more domestic content, more US-based manufacturing. And that was our long-term belief on what the vector would be is that there would be a requirement for US manufacturing of energy, and that continues to be in place.

這在立法的實際檢驗中以多種不同的方式表現出來。但核心問題是，我們在先進製造業稅收抵免所需要的資金仍然到位。此外，還有多項內容被添加，以鼓勵更多國內內容、更多美國製造。我們長期以來的信念是，能源製造業需要美國來生產，而這項信念將繼續存在。

John Roberts, Mizuho.

瑞穗的約翰羅伯茲。

I'm looking at Slide 38, that's at the Solar and semiconductor profitability. You've got start-ups coming in the third quarter as well. So is the recovery in earnings fourth quarter? Or is it out into 2026. Can you give us a sense of kind of how long we'll be under these pressures from the startup expenses?

我正在看第 38 張幻燈片，這是關於太陽能和半導體獲利能力的。第三季也有一些新創公司成立。那麼第四季獲利是否出現復甦？還是要到 2026 年？您能否告訴我們，我們將承受多久的啟動費用壓力？

Yes, a couple of thoughts, John. Thanks for the question. So we shared we started up our wafer factory here in the second quarter. So we expected to have ramp costs for that. We're seeing that continue in the third quarter. We expect to commercialize our new wafer products in the third quarter and for that -- for those sales to start to ramp as we go into the fourth quarter, I think over time, the ramp costs will get better for two reasons. We'll be actually running the factory at full utilization rates, and that will improve our output, but also we'll be selling product. So I don't know that it necessarily all is done by the end of the year, but I would expect it to continue to improve as we go through the year and into 2026.

是的，約翰，我有幾個想法。謝謝你的提問。因此，我們在第二季啟動了這裡的晶圓工廠。因此我們預計這會產生成本。我們看到這種情況在第三季仍在繼續。我們預計將在第三季度將我們的新晶圓產品商業化，隨著我們進入第四季度，這些產品的銷售額將開始上升，我認為隨著時間的推移，由於兩個原因，上升成本將會變得更好。我們實際上將以充分利用率來營運工廠，這將提高我們的產量，同時也將銷售產品。因此，我不知道這一切是否一定能在年底前完成，但我預計，隨著我們度過這一年並進入 2026 年，情況將繼續改善。

Samik Chatterjee, JPMorgan.

摩根大通的 Samik Chatterjee。

Wendell, maybe I'll ask you a broader one just on the Springboard plan here. If I'm looking at your wedges, based on Q3 guide, it looks like -- if you were to sort of look at where you're tracking relative to your plans, you're tracking more closer to the internal plan than the high conference plan. So is there anything from the internal plan that you've sort of envisioned but did not really pan out as you sort of look at the status of things today? And then I'll take your sort of take you up on the high -- the forward opportunities that you talked about with customers looking to leverage Corning's manufacturing in the US? And would that represent upside? And which verticals would you think that's more focused on?

溫德爾，也許我會問你一個關於 Springboard 計劃的更廣泛的問題。如果我根據第三季指南來查看您的楔子，它看起來就像 - 如果您要查看相對於您的計劃的跟踪位置，那麼您的跟踪更接近內部計劃而不是高級會議計劃。那麼，從目前的情況來看，內部計劃中是否有您所設想但尚未實現的事情？然後，我將就您與希望利用康寧在美國製造業務的客戶談論的未來機會進行探討？這是否代表著好處？您認為哪些垂直領域更受關注？

Let's take a look at the second one first and then come back to your key question on the first. So the second one, I can't share too much right now, Samik. These are all confidential negotiations. But we have 34 factories in the US. We're engaged with a number of our major customers in a number of our maps to basically make a major commitment to US-based manufacturing and to help us utilize those factories going forward.

讓我們先來看看第二個問題，然後再回到第一個問題的關鍵問題。所以第二個，薩米克，我現在不能分享太多。這些都是秘密談判。但我們在美國有 34 家工廠。我們與多個地圖上的許多主要客戶合作，基本上對美國製造業做出了重大承諾，並幫助我們在未來利用這些工廠。

Some are our current customers. Some are new to us. And we simply answers to the beginning of these. These negotiations should close out sometime in the pretty near future. So watch the space, my friend sometime in the next few months, we should be able to be a little more clear about the first (inaudible). So before I move to your first question, is that okay on the second, Samik?

有些是我們現有的客戶。有些對我們來說是新的。我們只是簡單地回答這些問題的開頭。這些談判應該會在不久的將來結束。所以，我的朋友，請關注未來幾個月的情況，我們應該能夠更清楚地了解第一個（聽不清楚）。因此，在我回答你的第一個問題之前，薩米克，我可以回答第二個問題嗎？

Yes. I'll wait and watch on that one.

是的。我會等待並觀察這一點。

Okay. On the first one, what a fascinating question. Of course, what has happened to us is a mix of a stronger positive reaction to many of our new products, and that has been more than offsetting some of the places where the secular trends were a little bit later are not as significant as we would have thought. Let me give you a good example sort of our new sets of products for vendable devices. When we built the original plan, we had planned for a more significant uptick in terms of the popularity and placement of some of that foldable tax, and that's been delayed.

好的。關於第一個問題，這是一個非常有趣的問題。當然，我們所發生的事情是對我們的許多新產品產生了更強烈的積極反應，這已經遠遠抵消了一些地方的長期趨勢稍晚一些，這些趨勢並不像我們想像的那麼重要。讓我給你一個很好的例子，說明我們針對可銷售設備的新產品系列。當我們制定最初的計劃時，我們曾計劃在部分可折疊稅的普及度和實施方面有更顯著的提升，但這已經被推遲了。

And that's just an example. And in each of these different maps, you'll see a combination of those pieces where there were faster than we thought, and those where it went a little slower than we thought. There's very few areas that come to mind for me where we're where we don't feel good about the fundamental secular trend that we were believing in. The other is always timing on cyclical return I'd say the carriers took a little bit longer to clear out their inventory build than we thought maybe a quarter or so, but that's now -- they're back to buying at deployment levels. So we've got a good foundation for their growth going forward. But those are some small examples. Those are the areas that you are looking for, Samik.

這只是一個例子。在每張不同的地圖中，你都會看到一些比我們想像的要快的部分，以及一些比我們想像的要慢的部分。在我看來，很少有領域讓我們對我們所相信的基本長期趨勢感到不滿。另一個始終是周期性回報的時間，我想說運營商清理庫存的時間比我們想像的要長一些，大概一個季度左右，但現在他們又回到了部署水平的購買。因此，我們為他們未來的發展奠定了良好的基礎。但這些只是一些小例子。這些就是你正在尋找的領域，薩米克。

Yes. And maybe just then on -- if you aggregate all of that, is there any big missing pieces related to your internal plan to be high conference plan today? Are there any big chunks that you said sort of fell out from the internal plan initiative?

是的。也許就在那時 - 如果您將所有這些匯總起來，那麼與您今天的高層會議計劃相關的內部計劃是否缺少任何重要的部分？您說內部計畫舉措中是否有重大缺失？

So I think which way you look at. So on the high confidence plan, absolutely not, right? Because that really -- remember, what we do is we built into that risk adjustments for big macroeconomic cycles, a variety of sort of being events that we wouldn't have necessarily in our business cycles. In the internal plan, if what we're really seeing in that pattern, what we're trying to show is the graphic is that we are hitting or exceeding almost all of our critical milestones. So if anything, what we're seeing is building momentum.

所以我想你從哪個角度來看。那麼，就高信心計畫而言，絕對不是，對嗎？因為這確實——記住，我們所做的是，我們將大型宏觀經濟週期的風險調整納入其中，這些事件在我們的商業週期中不一定會發生。在內部計劃中，如果我們真正看到的是這種模式，那麼我們試圖透過圖形來表明，我們正在達到或超越幾乎所有關鍵里程碑。因此，無論怎樣，我們看到的都是正在累積的動力。

Now we have to see as some of the next layers of growth that we're planning for our Springboard continue. If they do, then we'll have to deeply think about whether or not we will upgrade our plan again. But that would be a high-class problem. So let's wait and see how we do in the cover quarters.

現在我們必須看到我們為 Springboard 規劃的下一層級的成長仍在繼續。如果他們這樣做，那麼我們將不得不認真考慮是否再次升級我們的計劃。但那將是一個高級問題。因此，讓我們拭目以待，看看我們在掩護方面的表現如何。

Steven Fox, Fox Advisors.

史蒂文‧福克斯，福克斯顧問公司。

Can you hear me okay?

你聽見我說話嗎？

Yes.

是的。

Great. I guess, first of all, Wendell, I was wondering if you can give us your fiber market share by region at a couple of decimal points.

偉大的。首先，溫德爾，我想知道您是否可以提供按地區劃分的光纖市場份額（精確到小數點後幾位）。

Too soon, (laughter)

太快了，（笑聲）

But I did have a question on (inaudible) that I think you can answer. You've mentioned a couple of longer-term sort of optionality around scale-out, DCI, et cetera. Some of those trends you're seeing more indications of, but you're talking longer term about them. I was wondering like what kind of internal and external inflection point should we be looking for that will then translate into those -- that sort of next wave of demand starting to take off?

但我確實有一個關於（聽不清楚）的問題，我想你可以回答。您提到了一些有關橫向擴展、DCI 等方面的長期可選性。其中一些趨勢您已經看到了更多的跡象，但您談論的是長期趨勢。我想知道我們應該尋找什麼樣的內部和外部轉折點，然後將其轉化為——下一波需求開始起飛？

So first of all, I appreciate the humor on my CNBC appearance this morning. Thank you, my friend. Secondly, what a great question. So what we look for is we are engaged right now with multiple innovation partners customers. And what we're looking for is -- does our technology do we win that platform.

首先，我很欣賞今天早上在 CNBC 節目中展現的幽默。謝謝你，我的朋友。其次，這是一個非常好的問題。因此，我們所尋求的是，我們現在與多個創新合作夥伴客戶合作。我們正在尋找的是——我們的技術是否能讓我們贏得這個平台。

Once we win those platforms, then it will be to those platforms then become the successful architecture for those particular chip sets in their deployment in servers. I think the biggest thing you can look for is you'll see announcements by our customers and will be named as one of their partners. You just recently saw a couple of those, I forget when not that long ago from Broadcom and from NVIDIA, right, where they showed us as partners for some of their significant CPO platforms. So I think that will be the first indications that things are going well and that we're well positioned. Then the next will be -- when does that architecture slide in.

一旦我們贏得這些平台，那麼這些平台將成為這些特定晶片組在伺服器中部署的成功架構。我認為您最期待的事情是您會看到我們客戶的公告，並被列為他們的合作夥伴之一。您最近剛剛看到了其中的幾個，我忘了是不久前來自 Broadcom 和 NVIDIA 的，他們將我們展示為他們一些重要 CPO 平台的合作夥伴。所以我認為這將首先表明事情進展順利，而且我們處於有利地位。那麼接下來的問題就是──該架構何時會實現。

And that's a little bit tougher because within all the majors, which you have is the competing platforms do we switch to a photon based architecture, right, in the server racks for the AI nodes or how much burden we can press the electron-based ones and the copper-based ones. And that struggle will continue. But the key is to get positioned for that long-term innovation secular way when it happens. Is that responsive to your question, Steve?

這有點困難，因為在所有主要的競爭平台中，我們是否要切換到基於光子的架構，對吧，在用於 AI 節點的伺服器機架中，或者我們可以在基於電子的架構和基於銅的架構上施加多大的負擔。這場鬥爭還將繼續。但關鍵是當它發生時，要為長期創新世俗方式做好準備。這回答了你的問題嗎，史蒂夫？

Yes, very much. So I was just wondering on the DCI stuff, if there's anything else you would add there.

是的，非常喜歡。所以我只是想知道關於 DCI 的東西，您是否還有什麼要補充的。

DCI, great question. Yes. you will see additional announcements in DCI. You'll see customers will want to talk about it because it's so important to them and they're trying to be able to position their offerings to their customers as being advantaged with the latest optical technology. So you will definitely see customers coming out on that front as well.

DCI，好問題。是的，您將在 DCI 中看到更多公告。您會發現客戶願意談論它，因為它對他們來說非常重要，而且他們正試圖向客戶提供具有最新光學技術優勢的產品。因此，您肯定也會看到客戶從那方面湧現。

Asiya Merchant, Citi.

花旗銀行亞洲人。

Hopefully, you can hear me. Great results here. Just on the optical communications market, again, if I may, have you been experiencing any supply constraints there? And how should we think about pricing power here in the Optical segment, is there an opportunity for Corning to further strengthen their moat just given the technology advancements you have? And is that reflective in pricing currently?

希望你能聽到我的聲音。這裡取得了很好的成果。就光通訊市場而言，如果可以的話，您是否遇到任何供應限制？我們該如何看待光學領域的定價權？鑑於你們的技術進步，康寧是否有機會進一步加強其護城河？這是否反映在目前的定價上？

Both excellent question/suggestion. Things are tight right now, mainly on our new product set. and we expect that to continue. As part of the new product introduction, we introduced pricing that would enhance our margin performance. So far, a lot of that has been eaten up with these -- with our productivity start-ups ramping strongly.

這兩個問題/建議都非常好。目前情況很緊張，主要是我們的新產品系列。我們預計這種情況將持續下去。作為新產品推出的一部分，我們引入了可以提高利潤率的定價。到目前為止，我們的生產力新創公司正在強勁成長，其中很大一部分已被這些消耗。

As you would have heard from Ed, when he lays out the sort of how many cents in EPS on start-up of some of the various elements of it. We would -- so in a way, you haven't seen the power of that pricing be reflected in our financials yet. So that's the most basic answer to your question. Beyond that, to your suggestion, I think it's an excellent suggestion that we continue to evaluate that. This is a very fast-changing environment.

正如您從 Ed 那裡聽到的，當他列出啟動時 EPS 中有多少美分以及其中的一些要素時。我們會—所以在某種程度上，你還沒有看到定價的力量反映在我們的財務狀況中。這就是對你的問題最基本的答案。除此之外，對於您的建議，我認為我們繼續評估這一點是一個很好的建議。這是一個變化非常快的環境。

The key for us is can we create enough value for our customers to using our tech is actually economically advantaged for them. If it's economically advantage for them, but then we usually come to some arrangement to split that value creation. So it's much more about the innovation than it is about short-term supply-demand leases. Is that responsive to your question?

對我們來說，關鍵在於我們能否為客戶創造足夠的價值，以便使用我們的技術實際上為他們帶來經濟優勢。如果這對他們有經濟優勢，那麼我們通常會達成某種安排來分割這種價值創造。因此，這更多的是關於創新，而不是短期供需租賃。這回答了你的問題嗎？

That's great. And if I may No, that's great. Just on the productivity ramps that you guys have talked about. Just help us understand like when are we looking at that powerful margin performance that you're talking about actually being reflected? Like what are some milestones here that we need to be?

那太棒了。如果可以的話，那就太好了。就像你們談到的生產力提升一樣。只是幫助我們理解，什麼時候我們才能真正看到您所說的強勁的利潤表現？例如，我們需要達到哪些里程碑？

I mean, is this an environment which is going to be continually tight just given the ramp that you guys are constantly ramping? Or is there some sort of line of sight where you see those ramps sort of pretty much business as normal and then you start to see big margin inflection?

我的意思是，考慮到你們不斷增加的坡度，這個環境是否會持續緊張？或者是否存在某種視線，讓您看到這些成長基本上與正常業務一樣，然後您開始看到利潤率大幅波動？

Yes, Asiya, I would add to what Wendell said. So our optical communications business net income grew significantly faster than sales, both year-over-year and sequentially in the quarter. So despite us absorbing some of those ramp costs or productivity costs that Wendell talked about, we've made nice progress. I believe our net income margin went up by about 1 point sequentially, and we'll continue to march up. I think it's a combination of us selling more for sure and us being able to make at the right level as we ramp for our new products. So I think there's room to run in optical, and we can actually continue to improve, but we've made some nice progress, and we expect to do that even in the third quarter, as we've guided these costs remaining.

是的，阿西婭，我想補充溫德爾所說的話。因此，我們的光通訊業務淨收入在本季的年增率和環比成長均明顯快於銷售額的成長。因此，儘管我們承擔了溫德爾談到的一些坡道成本或生產力成本，但我們仍然取得了良好的進展。我相信我們的淨利潤率將連續上升約 1 個百分點，並且我們將繼續前進。我認為這是我們的銷售量肯定會增加，而且我們在推出新產品時能夠保持適當的產量。因此，我認為光學方面還有發展空間，我們實際上可以繼續改進，但我們已經取得了一些不錯的進展，我們預計即使在第三季度也能做到這一點，因為我們已經指導了剩餘的成本。

George Notter, Wolf Research.

喬治·諾特（George Notter），沃爾夫研究公司。

I guess back on the same line of questioning. Look, I know you guys made a lot of investments in optical kind of coming off the supply chain crunch unfortunately going into the excess inventory situation. But there were facilities in Gilbert, I think a couple of facilities in Hickory, some Poland facilities you guys added. Can you give us a sense for where you are in terms of capacity in those places? Is there still a lot of excess utilization that you can kind of grow into? Or is most of that filled up at this point?

我想又回到同樣的問題。聽著，我知道你們在光學領域投入了大量資金，但不幸的是，由於供應鏈緊縮，你們陷入了庫存過剩的境地。但在吉伯特有設施，我想在希科利也有幾個設施，你們還增加了一些波蘭設施。您能否告訴我們您在這些地方的產能狀況？是否還存在大量可以增長的過度利用？還是現在大部分都已經被填滿了？

It depends on the components, right. I think the best way to think about this is we still have the opportunity to increase our utilization and therefore, help drive incrementals that you just heard from head. Right now, our strongest tightness is on our newest products in there as much as you would expect since they're new, right? Those tend to be quite tight. We still believe we're in really good shape overall for our available capacity in our fiber assets and our cable assets is when you get more specific to some of these new high-density opportunities that we're feeling that strong tightness.

這取決於組件，對吧。我認為思考這個問題的最好方法是，我們仍然有機會提高我們的利用率，從而幫助推動您剛才聽到的增量。目前，我們最關注的是最新產品，正如您所期望的，因為它們是新產品，對嗎？這些往往相當緊張。我們仍然相信，我們的光纖資產和有線資產的可用容量整體狀況良好，當你更具體地了解其中一些新的高密度機會時，我們會感受到強烈的緊張感。

Got it. And then just as a quick follow-up --

知道了。接下來是快速的跟進——

More productive to meet all that demand. But if demand continues to increase, we'll sit down with our customers and we'll figure out what to do about that at the right time.

提高生產力以滿足所有需求。但如果需求持續增加，我們會與客戶坐下來討論，並在適當的時候找到解決方案。

Could you give us a sense on lead times on some of those next-gen products? I'm thinking about some of the fiber connectivity pieces in the data center and then also some of the high-density fibers you're putting in long-haul optical networks. Is there a sense you could give us on lead times?

您能否向我們介紹一些下一代產品的交貨時間？我正在考慮資料中心中的某些光纖連接件，以及放置在長途光纖網路中的某些高密度光纖。能告訴我們交貨時間嗎？

Yes. So the connectivity piece when we build those bespoke systems for each of the actual buildings that we're going into. That lead time is fast. We're built to be flexible and go at our customers' speed because that's what they need to be able to get their installations in place.

是的。因此，當我們為要進入的每棟實際建築物建造客製化系統時，連接部分就很重要。那個交貨時間很快。我們的目標是靈活並按照客戶的速度行事，因為這是他們完成安裝所需要的。

When you come to core componentry fiber cable and the connectors themselves test high-density offerings. That's a brand-new fiber, brand-new cable, brand-new connector, those we've actually been working on for years to be ready for this moment. And all you're seeing when you hear from (inaudible) about we'd like to see that productivity increase is just ramping those faster and faster and then taking over pieces of equipment that we're making the older generation tech.

當您接觸到核心組件光纖電纜和連接器本身時，請測試高密度產品。這是一種全新的光纖、全新的電纜、全新的連接器，為了迎接這一刻，我們實際上已經為此工作了好幾年。當您聽到（聽不清楚）關於我們希望看到生產力提高的說法時，您所看到的只是越來越快地提高這些設備，然後接管我們正在製造的老一代技術設備。

And so it's less about lead time, and it's more just about the rate of growth and how quickly we can turn over our equipment and make those strong modifications to that equipment to be able to manufacture our newest products. But we design them to be able to work on our fundamental manufacturing platforms.

因此，這與交貨時間關係不大，而更多的是與增長率以及我們能夠多快地更新設備並對設備進行重大改造以便能夠製造我們的最新產品有關。但我們設計它們是為了能夠在我們的基礎製造平台上工作。

Mehdi Hosseini, Susquehanna Finance Group.

薩斯奎漢納金融集團 (Susquehanna Finance Group) 的 Mehdi Hosseini。

Wendell, I want to go back to overall the strategy with the Hemlock. I see the disclosure that now you're involved in manufacturing poly solar wafer and module. And in that context, can you elaborate how the mix is today, the mix of revenue between polysilicon wafer and module? And what is the strategy here? Do you want to ramp the manufacturing of poly or do you want to be equally distributed or exposed to various parts of the Solar? And as a follow-up to that, how should we think about the capital intensity required for scaling that business unit compared to capital intensity for other business units?

溫德爾，我想回顧一下鐵杉的整體策略。我看到揭露的資訊顯示，你們現在參與了多晶太陽能晶片和模組的製造。在此背景下，您能否詳細說明目前多晶矽晶片和模組的收入結構如何？這裡的策略是什麼？您是否想加大多晶矽的生產，或者是否想將多晶矽均勻分佈或暴露於太陽能的各個部分？接下來，我們應該如何看待擴大該業務部門所需的資本強度，並將其與其他業務部門的資本強度進行比較？

Great question and good job noting modules. Our core approach to the low-risk, high-return strategy was to take advantage of the trend opportunity that we saw, that we believe strongly that by that policy there would be strong encouragement of American-made renewable energy as well as carbon-based energy and to put those advanced manufacturing plants here in America.

很好的問題，很好地記錄了模組。我們低風險、高回報策略的核心方法是利用我們所看到的趨勢機會，我們堅信該政策將大力鼓勵美國製造的可再生能源以及碳基能源，並將這些先進的製造工廠設在美國。

So we took a look at which of those areas or skills would fit both in the near term but also the long term for instance and modules. We have some significant innovations we'd like to try out in glass and thermal design in optical coatings that we believe that can significantly increase the conversion efficiency of solar to be able to innovate that effectively, we needed a module position. Of course, in that module position in and of itself, we believe that will be strongly profitable for us, and modules are not capital intense and we could just bring our fundamental manufacturing expertise to bear.

因此，我們研究了哪些領域或技能既適合短期，又適合長期，例如模組。我們希望在玻璃和光學塗層的熱設計方面嘗試一些重大創新，我們相信這些創新可以顯著提高太陽能的轉換效率，為了能夠有效地創新，我們需要一個模組位置。當然，就模組本身而言，我們相信這將為我們帶來豐厚的利潤，而且模組不需要大量資金，我們只需發揮我們的基礎製造專業知識即可。

Our primary product that you see reflected in Poly, that is what we bought from semicon. We're now applying it to Solar. That is the bulk of the revenues that you see today. That was our business. We've been activating idle assets to do that and upgrading some assets to be able to do that.

您在 Poly 中看到的我們的主要產品就是我們從 Semicon 購買的。我們現在將其應用於太陽能。這就是今天我們看到的大部分收入。那是我們的事。我們一直在啟動閒置資產來實現這一點，並升級一些資產以實現這一點。

Then we have wafers on our latest hunk of activated poly be transforming that into higher-value wafers. And that's what we're doing on that same base. So today, almost all that revenue you see in that segment is coming from poly, our basic entry point. You'll start to see hunk of the modules come in these coming quarters. And as you heard from Ed, you'll start to see our wafer facility ramp and turn into revenue starting in quarter four.

然後，我們將最新的活性多晶矽晶圓轉化為更高價值的晶圓。這正是我們在同一個基礎上所做的事情。因此，今天，您在該領域看到的幾乎所有收入都來自我們的基本切入點——聚。您將在接下來的幾個季度中開始看到大量模組的出現。正如您從 Ed 那裡聽到的，您將從第四季度開始看到我們的晶圓工廠產能提升並轉化為收入。

And we don't have an overall balanced approach to say like we expect this much out of modules, this much out of wafers this much on poly. But in terms of volume, the most of the volume will be in poly. There'll be a lesser amount in wafers because we want to serve both the total market and then make sure there's a US source of wafers. And then of that, only a portion of our wafers will end up in our modules.

而且我們並沒有一個整體平衡的方法來說明我們期望從模組中獲得多少，從晶圓中獲得多少，從多晶矽中獲得多少。但就音量而言，大部分音量將以多邊形為主。晶圓的數量將會減少，因為我們既要服務整個市場，也要確保美國有晶圓來源。其中，只有一部分晶圓最終會進入我們的模組。

It's a little like you've studied our optical communications approach, it's like that. We always believe in each of our component levels, each has to be competitive. So we will sell to our competitors on that next layer up. So our base hunk is fiber. We sell that to cablers all over the world.

這有點像你研究過我們的光通訊方法，是這樣的。我們始終相信，我們的每個組件層面都必須具有競爭力。因此，我們將向下一層的競爭對手銷售產品。所以我們的基本塊是纖維。我們將其銷售給世界各地的有線電視公司。

But then we also make our own cable for a significant amount of our fiber output, and we sell those cables to people who build connectorized systems all over the world. But then we do an even less amount than we then do in our full connectorized system. So we're the only one who's fully integrated end-to-end, but we enable people along the way. The same approach in solar. Is that responsive to your question?

但隨後，我們也為大量光纖產量製造自己的電纜，並將這些電纜出售給世界各地建造連接系統的人。但我們所做的工作比我們在完整連接系統中所做的還要少。因此，我們是唯一一家實現端到端完全整合的公司，但我們也在整個過程中為人們提供支援。太陽能領域也採用同樣的方法。這回答了你的問題嗎？

Yes, absolutely. And just, if I may, the capital intensity differences between Solar and the rest of the business units?

是的，絕對是。如果可以的話，請問 Solar 和其他業務部門之間的資本強度有何差異？

It's for a little like fiber optics, again, to keep that analogy. That final product modules is not capital intense at all, right? The most capital-intense would be the poly that we already have and wafer is in between kind of like cable. I think that's a good way to think about it.

再次強調，它有點像光纖，保持這個類比。最終產品模組根本不需要資本密集，對嗎？資本最密集的是我們已經擁有的多晶矽，而晶圓則介於電纜之間。我認為這是一種很好的思考方式。

We've got time for one last question.

我們還有時間回答最後一個問題。

Josh Spector, UBS.

瑞銀的喬希·斯佩克特。

I wanted to follow up on some of the margin commentary earlier. I guess if I look at your 3Q guidance, it looks like it's around a 50% pretax EBIT margin incremental. You've been running closer to 25% to 30%. So can you comment on the driver there? I would normally think seasonality in 3Q would probably be a higher incremental, but we talked about some pull forwards. So is this mix cost savings? Anything else you called out specifically?

我想跟進之前的一些邊注。我想如果我看一下您的第三季指引，它看起來稅前息稅前利潤率增量約為 50%。您的運行速度已接近 25% 至 30%。那你能評論一下那裡的司機嗎？我通常認為第三季的季節性可能會有更高的增量，但我們討論了一些向前的拉動。那麼這種混合能節省成本嗎？您還特別提到了什麼嗎？

Josh, thanks for the comments. So maybe backing up, we've started Springboard about 1.5 years ago, about halfway through our plan. And we've been kind of marching up on gross margin and on operating margin, we set that 20% operating margin target. We did 19% in the second quarter. And I think first of all, we have a lot of the capacity and the technical capabilities and the cost in place.

喬希，謝謝你的評論。回想起來，我們大約在一年半前就開始使用 Springboard，此時我們的計畫已經進行了一半。我們的毛利率和營業利潤率一直在不斷提高，我們設定了 20% 的營業利潤率目標。我們在第二季的業績為 19%。我認為首先，我們擁有充足的產能、技術能力和成本。

So as we grow our sales, we would expect to get really nice incrementals on those sales. In certain places, where we've had accelerated demand on some of our products and maybe we've added capability and added a little bit of cost, that's actually dragged the margin in those places, and we talked a little bit about that in Optical and in Solar. And we continue to manage our operating expenses quite nicely.

因此，隨著銷售額的成長，我們期望銷售額能夠獲得非常好的增量。在某些地方，我們的某些產品的需求加速成長，我們可能增加了產能，也增加了一點成本，但這實際上拖累了這些地方的利潤率，我們在光學和太陽能領域也談到了這一點。我們繼續很好地管理我們的營運費用。

So as we think about going forward, in general, I think our Q3 guide reflects this. Our view is that we'll continue to expand our margins sort of step by step as we get to that 20% and then to the extent we get there, we'll provide an update on how we think about it going forward. So our third quarter guide really reflects higher sales and our managing of our cost structure as we continue to grow.

因此，當我們考慮未來時，總的來說，我認為我們的第三季指南反映了這一點。我們的觀點是，當我們達到 20% 的目標時，我們會繼續逐步擴大我們的利潤率，然後在達到目標的範圍內，我們會提供關於未來想法的最新資訊。因此，我們的第三季指引確實反映了更高的銷售額以及我們在持續成長過程中對成本結構的管理。

It's sort of core to Springboard, is that what we expect is because we have a lot of the capabilities -- technical capabilities and the manufacturing capacity in place. We expect to have really strong incrementals. And that is what's behind of the significant improvement in our return profile that we put in Springboard. And I think all you're seeing is that we're making faster progress than we originally planned for. And so as you look at those numbers and you are working through your modeling, you're seeing enhanced profitability. And yes, you're not doing any math well.

它是 Springboard 的核心，因為我們擁有很多能力——技術能力和製造能力。我們期望獲得真正強烈的增量。這就是我們在 Springboard 中引入的回報狀況顯著改善的原因。我想你們看到的是，我們的進展比我們最初計劃的還要快。因此，當您查看這些數字並透過建模進行分析時，您會看到獲利能力增強。是的，你的數學不太好。

Thanks, Josh. Thanks, Wendell. Okay. I'll wrap it up today. I want to thank everybody for joining us. Before we close, I'll let you know that we're planning to attend Citi's 2025 Global TMT Conference on September 4, and we'll be scheduling management visits to investor offices in select cities. Finally, a web replay of today's call will be available on our site starting later this morning. Once again, thank you for joining us. That concludes our call. Please disconnect all lines.

謝謝，喬希。謝謝，溫德爾。好的。今天我就把這件事總結一下。我要感謝大家的參與。在結束之前，我想告訴大家，我們計劃參加 9 月 4 日舉行的花旗 2025 年全球 TMT 大會，我們將安排管理層訪問特定城市的投資者辦公室。最後，今天上午晚些時候我們將在我們的網站上提供今天電話會議的網路回放。再次感謝您的參與。我們的通話到此結束。請斷開所有線路。

Thank you. This does conclude today's conference call. You may now disconnect.

謝謝。今天的電話會議到此結束。您現在可以斷開連線。