Generac Holdings Inc (GNRC) 2025 Q2 法說會逐字稿

Good day, and thank you for standing by. Welcome to the Second Quarter 2024-2025 Generic Holdings, Inc. Earnings Call. (Operator Instructions). Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 2024-2025 年第二季 Generic Holdings, Inc. 收益電話會議。（操作員指令）。請注意，今天的會議正在錄音。

I would now like to hand the conference over to your speaker today, Kris Rosemann, Director of Corporate Finance and Investor Relations. Please go ahead.

現在，我想將會議交給今天的發言人，公司財務和投資者關係總監克里斯·羅斯曼 (Kris Rosemann)。請繼續。

Good morning, and welcome to our second quarter 2025 earnings call. I'd like to thank everyone for joining us this morning. With me today is Aaron Jagdfeld, President and Chief Executive Officer; and York Ragen, Chief Financial Officer. We will begin our call today by commenting on forward-looking statements.

早安，歡迎參加我們 2025 年第二季財報電話會議。我要感謝大家今天早上的參加。今天與我一起的有總裁兼執行長 Aaron Jagdfeld 和財務長 York Ragen。今天的電話會議我們將首先對前瞻性陳述進行評論。

Certain statements made during this presentation as well as other information provided from time to time by Generac or its employees may contain forward-looking statements and involve risks and uncertainties that could cause actual results to differ materially from those in these forward-looking statements.

本演示中所做的某些聲明以及 Generac 或其員工不時提供的其他資訊可能包含前瞻性聲明，並涉及風險和不確定性，可能導致實際結果與這些前瞻性聲明中的結果有重大差異。

Please see our earnings release or SEC filings for a list of words or expressions that identify such statements and the associated risk factors. In addition, we will make reference to certain non-GAAP measures during today's call. Additional information regarding these measures, including reconciliation to comparable US GAAP measures, is available in our earnings release and SEC filings. I will now turn the call over to Aaron.

請參閱我們的收益報告或美國證券交易委員會 (SEC) 文件，以取得識別此類聲明和相關風險因素的單字或表達清單。此外，我們將在今天的電話會議中參考某些非公認會計準則指標。有關這些指標的更多資訊（包括與可比較美國公認會計準則 (GAAP) 指標的對帳）可在我們的收益報告和美國證券交易委員會 (SEC) 文件中找到。現在我將把電話轉給 Aaron。

Thanks, Kris. Good morning, everyone, and thank you for joining us today. Our second quarter results exceeded our expectations driven primarily by C&I product sales to our industrial distributors as well as increased shipments of residential energy storage systems. Additionally, adjusted EBITDA margins came in well ahead of our prior forecast for the quarter, as a result of continued strong gross margin performance and better-than-expected operating leverage on the higher shipment volumes. On a year-over-year basis, overall net sales increased 6% to $1.06 billion for the quarter.

謝謝，克里斯。大家早安，感謝大家今天加入我們。我們第二季的業績超出了預期，主要得益於我們向工業分銷商銷售的 C&I 產品以及住宅儲能係統出貨量的增加。此外，由於毛利率持續強勁，且出貨量增加帶來的經營槓桿優於預期，調整後的 EBITDA 利潤率遠高於我們先前對該季度的預測。與去年同期相比，本季整體淨銷售額成長 6%，達到 10.6 億美元。

Residential product sales increased 7% from the prior year, driven by significant growth in shipments of residential energy technology solutions as well as higher portable generator sales. C&I product sales increased 5% year-over-year with increases in shipments to our domestic industrial distributors and telecom channels as well as higher European shipments, partially offset by softness in certain other C&I end markets. Favorable price realization helped gross margins expand by 170 basis points in the quarter, resulting in adjusted EBITDA margins increasing to nearly 18%.

住宅產品銷售額較上年增長 7%，這得益於住宅能源技術解決方案出貨量的大幅增長以及便攜式發電機銷售額的增加。C&I 產品銷售額年增 5%，其中對國內工業分銷商和電信通路的出貨量增加，歐洲出貨量也有所增加，但其他某些 C&I 終端市場的疲軟在一定程度上抵消了這一增長。有利的價格實現有助於本季毛利率擴大了 170 個基點，導致調整後的 EBITDA 利潤率增加至近 18%。

We also continue to execute on numerous new product development initiatives during the quarter, most notably the formal introduction of our large megawatt generators for data centers and other C&I backup power applications. We have experienced very strong receptivity to our initial entry into the data center market, in particular with our global backlog for products serving this important end market growing quickly and now standing at more than $150 million today.

我們也持續本季繼續執行眾多新產品開發計劃，最引人注目的是正式推出用於資料中心和其他 C&I 備用電源應用的大型兆瓦發電機。我們首次進入資料中心市場就獲得了非常強烈的反響，特別是我們服務於這一重要終端市場的全球產品訂單量迅速增長，目前已超過 1.5 億美元。

Given increased visibility into our full year 2025 financial results, including our second quarter outperformance and lower than previously anticipated tariff-related price increases in the second half, we are narrowing our full year net sales growth assumption and increasing the low end of our adjusted EBITDA margin guidance range, resulting in an increase to our full year adjusted EBITDA outlook at the midpoint of these ranges.

鑑於我們 2025 年全年財務業績的可預見性增強，包括第二季度的優異表現以及下半年與關稅相關的價格漲幅低於此前預期，我們縮小了全年淨銷售額增長假設，並提高了調整後 EBITDA 利潤率指導範圍的低端，導致我們對全年調整後 EBITDA 的預期上升至這些範圍的中點。

This guidance assumes that currently implemented tariff levels are maintained for the remainder of the year. We will continue to optimize our pricing strategy within the evolving tariff landscape while aiming to fully offset the cost of tariffs in dollar terms. Additionally, we are executing on a number of supply chain and cost reduction initiatives that will help to further offset the impact of tariffs and other cost increases over the next several quarters. Now discussing our second quarter results in more detail.

本指南假設目前實施的關稅水準在今年剩餘時間內保持不變。我們將在不斷變化的關稅格局中繼續優化我們的定價策略，同時力求以美元完全抵銷關稅成本。此外，我們正在實施一系列供應鏈和成本削減舉措，這將有助於進一步抵消未來幾季關稅和其他成本增加的影響。現在更詳細地討論我們的第二季業績。

Home standby sales were flat from the prior year as the category held a new and higher baseline level of demand despite power outage hours being down significantly as compared to a strong prior year period. As expected with lower outages, home consultations decreased on a year-over-year basis given the strong comparable period that included the benefit of severe storms in the South Central region last year. However, home consultations outside of this region were up nicely from the prior year, highlighted by continued strength in the Southeast resulting from last year's high-profile outage events.

儘管與去年同期相比停電時間大幅減少，但家用備用電源的銷售量與去年持平，因為該類別的需求基線水平達到了新的更高水平。正如預期的那樣，由於停電次數減少，上門諮詢量同比下降，因為去年中南部地區遭受了嚴重風暴的影響，可比期間表現強勁。然而，該地區以外地區的家庭諮詢量較上年有大幅增長，其中東南部地區受去年引人注目的停電事件影響持續保持強勁增長。

Close rates improved sequentially in the second quarter, and we continue to expect further improvement as we move through the remainder of the year, with strong signs of recovery here in the month of July. Importantly, activations or installations of home standby generators increased modestly from the prior year, also driven by the strength in the Southeast region.

第二季成交率較上季上升，我們預計今年剩餘時間成交率還會進一步上升，七月已出現強勁復甦跡象。重要的是，家用備用發電機的啟動或安裝量較上年略有增加，這也是受東南地區強勁成長的推動。

We ended the second quarter with roughly 9,300 industrial dealers in our network, an increase of approximately 400 over the prior year. Our growing dealer network is an important competitive advantage and continues to support a new and higher baseline of consumer awareness to the home standby category, and we remain committed to investing heavily in growing and developing our dealer base. Additionally, we have had continued success in expanding our aligned contractor program, which targets electrical contractors that purchase our products through wholesale distribution and drives incremental engagement and training within this important distribution channel.

截至第二季度，我們的網路中約有 9,300 家工業經銷商，比前一年增加約 400 家。我們不斷成長的經銷商網路是一個重要的競爭優勢，並將繼續支持消費者對家庭待機類別的認知達到新的更高水平，我們將繼續致力於大力投資擴大和發展我們的經銷商基礎。此外，我們在擴大我們的聯合承包商計劃方面取得了持續的成功，該計劃針對透過批發分銷購買我們產品的電氣承包商，並推動這一重要分銷管道內的逐步參與和培訓。

Collectively, these efforts represent a critical element of unlocking the growth potential for the home standby category by expanding our sales, installation and service bandwidth. Additionally, we continue to work towards the upcoming launch of our next-generation home standby generator line, representing the most comprehensive platform update for the product category in more than a decade.

總的來說，這些努力是透過擴大我們的銷售、安裝和服務頻寬來釋放家庭待機類別成長潛力的關鍵因素。此外，我們將繼續致力於即將推出的下一代家用備用發電機系列，這是十多年來該產品類別最全面的平台更新。

In addition to the introduction of the market's first 28-kilowatt air-cooled generator, the new home standby generator line features a lower total cost of ownership lower installation and maintenance costs as well as quieter operation and improved fuel efficiency.

除了推出市場上第一台 28 千瓦風冷發電機外，新型家用備用發電機系列還具有更低的總擁有成本、更低的安裝和維護成本以及更安靜的運作和更高的燃油效率。

The new platform also offers a number of benefits for our channel partners, including lower commissioning times and improved remote diagnostics, enabling operational efficiencies for their businesses and greater uptime and cost savings for their customers.

新平台也為我們的通路合作夥伴提供了許多好處，包括縮短調試時間和改進遠端診斷，從而提高了他們的業務營運效率，並為他們的客戶增加了正常運行時間並節省了成本。

Portable generator sales increased at a robust rate from the prior year despite the year-over-year decline in outage activity. This growth was primarily due to market share gains resulting from our team's success in driving increased shelf space with key retail partners. While we expect these recent wins to support greater baseline demand for these products going forward, the second half of 2025 will face a challenging comparison to the prior year as our guidance does not assume any major outage events in the second half of 2025.

儘管停電次數年減，但便攜式發電機的銷售仍比去年強勁成長。這一成長主要歸功於我們的團隊與主要零售合作夥伴成功推動貨架空間增加，從而帶來了市場份額的成長。雖然我們預計最近的勝利將支持未來對這些產品的更大基線需求，但 2025 年下半年與上一年相比將面臨挑戰，因為我們的指導並不認為 2025 年下半年會發生任何重大停電事件。

Moving to Residential Energy Technology Solutions. Shipments for these products and services exceeded our expectations and grew at a significant rate during the quarter. Our team continued to execute extremely well on our Department of Energy project in Puerto Rico for our energy storage solutions and combined with a record quarter for ecobee sales resulted in strong outperformance for this part of our business in the second quarter.

轉向住宅能源技術解決方案。這些產品和服務的出貨量超出了我們的預期，並且在本季度實現了顯著的成長。我們的團隊繼續出色地執行波多黎各能源部的能源儲存解決方案項目，再加上 ecobee 創紀錄的銷售業績，使得我們這部分業務在第二季度表現出色。

Our ecobee team continued to add to their recent strong sales momentum and drove significant margin improvement compared to the prior year, resulting in positive EBITDA contribution through the first half of 2025. Additionally, the connected homes count for ecobee devices increased to more than 4.5 million residences during the quarter, with energy services and subscription attach rates also continuing to grow, contributing to a rapidly expanding high-margin recurring revenue stream.

我們的 ecobee 團隊繼續保持近期強勁的銷售勢頭，與前一年相比，利潤率大幅提升，從而在 2025 年上半年實現了正的 EBITDA 貢獻。此外，本季度，ecobee 設備的連網家庭數量增加到 450 多萬戶，能源服務和訂閱附加率也持續成長，為快速擴張的高利潤經常性收入流做出了貢獻。

We view ecobee's premium feature set and user experience as a key differentiator within our growing residential energy ecosystem and further integration of our residential solutions with the ecobee platform will continue with every new product we launch. Importantly, we continue to expect ecobee to deliver positive EBITDA contribution for the full year as the team further scales these products and solutions. Shipments of our energy storage systems also increased at a dramatic rate during the second quarter. We are very pleased with the progress we've made in Puerto Rico through the first half of 2025 as this has enabled us to build strong relationships on the island, which is the second largest storage market in the US behind California.

我們將 ecobee 的優質功能集和使用者體驗視為我們不斷發展的住宅能源生態系統中的關鍵差異化因素，隨著我們推出的每個新產品，我們的住宅解決方案將繼續與 ecobee 平台進一步整合。重要的是，隨著團隊進一步擴展這些產品和解決方案，我們繼續預期 ecobee 將在全年實現正的 EBITDA 貢獻。我們的儲能係統的出貨量在第二季也大幅成長。我們對 2025 年上半年在波多黎各取得的進展感到非常滿意，因為這使我們能夠在島上建立牢固的關係，該島是僅次於加州的美國第二大儲存市場。

In addition to our success in Puerto Rico, we began taking orders in the second quarter for [Power Cell 2], our next-generation energy storage system with first shipments of these products beginning earlier this month. We are also making very good progress towards the launch of [Power Micro], our new microinverter product line, which we anticipate will begin shipping during the second half of this year. The impact of the one big beautiful Bill Act on residential solar and storage markets has been well documented over the last several weeks.

除了我們在波多黎各取得成功之外，我們還在第二季度開始接受下一代儲能係統 [Power Cell 2] 的訂單，這些產品的首批發貨已於本月初開始。我們在推出新的微型逆變器產品線 [Power Micro] 方面也取得了非常大的進展，預計該產品將於今年下半年開始出貨。在過去幾週，這項美麗的法案對住宅太陽能和儲能市場的影響已得到充分證明。

Despite the policy-related changes that will reduce or eliminate incentive structures for these products, we continue to view these technologies as important elements in the residential energy ecosystem we are developing that is focused on providing the kind of resiliency and energy savings that homeowners are increasingly demanding. The secular trends of rising power prices and declining component costs within the solar and storage markets provides an attractive long-term backdrop for these markets to further develop and grow as the overall economics improve, absent the incentives.

儘管政策相關的變化會減少或消除這些產品的激勵機制，但我們仍然將這些技術視為我們正在開發的住宅能源生態系統的重要組成部分，該生態系統專注於提供房主日益要求的那種彈性和節能效果。太陽能和儲能市場中電價上漲和零件成本下降的長期趨勢為這些市場在沒有激勵措施的情況下隨著整體經濟的改善而進一步發展和增長提供了有吸引力的長期背景。

That said, we believe the residential solar market in particular, will contract in the years ahead. And as a result, we are evaluating the adjustments necessary to recalibrate our level of investment in these technologies as we are laser-focused on significantly improving the adjusted EBITDA contribution from the residential energy technology portion of our business in the coming years. Now let me provide some commentary on our commercial and industrial product category. Sales to our domestic industrial distributors increased again during the quarter given resilient end market demand and strong operational execution that drove further reduction in C&I product lead times. Project quoting activity and win rates in this important channel also increased on a year-over-year basis during the first half of the year.

儘管如此，我們認為未來幾年住宅太陽能市場將會萎縮。因此，我們正在評估重新調整對這些技術的投資水準所需的調整，因為我們將專注於在未來幾年大幅提高住宅能源技術部分業務的調整後 EBITDA 貢獻。現在，讓我對我們的商業和工業產品類別提供一些評論。由於終端市場需求強勁以及營運執行力強勁，導致 C&I 產品交貨時間進一步縮短，本季我們對國內工業經銷商的銷售額再次增加。今年上半年，這項重要管道的專案報價活動和得標率也較去年同期成長。

We do expect, however, year-over-year shipment declines to develop in the second half of the year given the continued reduction in backlog resulting from our accelerated production output in recent quarters. Shipments to our national telecom customers grew at a strong rate from the prior year during the second quarter as this channel continues to recover and is expected to deliver robust growth for the full year 2025. The telecom market remains a long-term growth opportunity for Generac given the secular trends of expanding global power and network hub counts and increasing reliance on wireless communications that require much higher power reliability. Replacement opportunities within the telecom channel are also becoming more relevant given our large installed base of product and our long history of serving this market. As expected, shipments to our national and independent rental equipment customers remained soft during the quarter and we continue to anticipate weakness throughout the second half of the year.

然而，由於最近幾季我們的產量加快導致積壓訂單持續減少，我們預計下半年出貨量將出現年減。隨著該通路的持續復甦，我們第二季對全國電信客戶的出貨量較上年同期強勁成長，預計 2025 年全年將實現強勁成長。鑑於全球電力和網路樞紐數量不斷增加以及對需要更高電力可靠性的無線通訊的依賴程度不斷提高的長期趨勢，電信市場仍然是 Generac 的長期成長機會。鑑於我們龐大的產品安裝基礎和我們長期服務於該市場的歷史，電信通路內的替代機會也變得更加重要。正如預期的那樣，本季我們對全國和獨立租賃設備客戶的出貨量仍然疲軟，我們預計今年下半年仍將疲軟。

Despite the current cyclical softness with our rental customers, we believe that this end market has substantial runway for growth. Given the critical need for future infrastructure-related projects that leverage our products sold into the rental equipment channel. Internationally, total sales increased 7% from the prior year due to higher intersegment sales and C&I product shipments in Europe, partially offset by softness in other international markets. Adjusted EBITDA in our International segment increased at a robust rate from the prior year, given the solid sales growth and favorable price cost dynamics in certain markets. We expect the combination of recent order trends across multiple C&I product categories and the favorable impact from foreign currencies to drive continued year-over-year sales growth in the second half of the year.

儘管目前我們的租賃客戶處於週期性疲軟狀態，但我們相信這個終端市場具有巨大的成長空間。鑑於未來基礎設施相關項目的迫切需求，利用我們的產品銷售到租賃設備通路。在國際上，由於歐洲的跨部門銷售額和工商業產品出貨量增加，總銷售額較上年增長了 7%，但其他國際市場的疲軟部分抵消了這一增長。鑑於某些市場的穩健銷售成長和有利的價格成本動態，我們國際部門的調整後 EBITDA 較上年同期強勁成長。我們預計，近期多個商業和工業產品類別的訂單趨勢以及外匯的有利影響將推動下半年銷售額繼續同比增長。

We also anticipate an incremental benefit beginning in the third quarter from the initial shipments of our new large megawatt generators to international data center customers. With respect to the important development project around our new large megawatt generators, these products are expected to enable a very significant incremental opportunity for the global C&I part of our business, particularly within the large and growing data center market. These mission-critical solutions are a necessary part of the substantial investment in data centers, which are enabling the accelerated adoption of artificial intelligence. Given the tremendous power requirements of increasingly large data center campuses, demand for backup power for these applications is expected to continue to grow at a dramatic rate for the foreseeable future. This rapidly growing demand for data center power infrastructure has resulted in market supply constraints for backup power equipment.

我們也預計，從第三季開始，我們的新型大兆瓦發電機首次向國際資料中心客戶出貨時，將帶來增量收益。就我們新型大型兆瓦發電機的重要開發項目而言，這些產品預計將為我們業務的全球 C&I 部分帶來非常重要的增量機會，特別是在龐大且不斷增長的資料中心市場中。這些關鍵任務解決方案是資料中心大量投資的必要組成部分，有助於加速人工智慧的採用。鑑於日益龐大的資料中心園區對電力的巨大需求，預計在可預見的未來，這些應用程式對備用電源的需求將繼續急劇增長。資料中心電力基礎設施需求的快速成長導致備用電源設備的市場供應受到限制。

Our highly competitive lead times and the strength of our reputation in the power generation industry contributed to the strong initial response to our formal entrants into this market during the second quarter, and we have quickly built a global backlog of more than $150 million for these applications, with momentum continuing to build around a growing and significant pipeline of new opportunities. We expect global shipments of these products to begin in the second half of the year with a large majority of our existing backlog to be realized in 2026. Additionally, further global market opportunities exist for these products within our traditional end markets. In particular, providing backup power for large manufacturers, distribution centers, health care facilities and other critical infrastructure that have higher backup power requirements. As we continue to ramp our capabilities for large megawatt generators with our expected annual production capacity sitting well above our current backlog, we believe that we are well positioned to take share in this market over time given our unique focus which allows us to provide customized sales, engineering and aftermarket support, while also providing data center customers with a robust service network to ensure uptime for these critical applications.

我們極具競爭力的交貨時間和在發電行業的良好聲譽，促成了我們在第二季度正式進入該市場後獲得了強烈的初步反應，並且我們已迅速為這些應用建立了超過 1.5 億美元的全球訂單積壓，並且隨著新機遇不斷增多，發展勢頭持續增強。我們預計這些產品將於今年下半年開始全球出貨，現有積壓訂單大部分將於 2026 年完成。此外，在我們的傳統終端市場中，這些產品還存在進一步的全球市場機會。特別是為大型製造商、配送中心、醫療保健設施和其他對備用電源要求較高的關鍵基礎設施提供備用電源。隨著我們繼續提升大兆瓦發電機的生產能力，預計年生產能力將遠高於目前的積壓訂單，我們相信，隨著時間的推移，我們有能力在這個市場上佔據一席之地，因為我們獨特的關注點使我們能夠提供定制的銷售、工程和售後支持，同時也為數據中心客戶提供強大的服務網絡，以確保這些關鍵應用程序的正常運行時間。

In closing this morning, our second quarter results reflect strong execution in a dynamic operating environment with broad-based strength across our product categories. We will continue to lean into our core corporate value of agility as we navigate evolving market and policy conditions while maintaining focus on the significant growth opportunities that exist as we further execute on our enterprise strategy. The megatrends of lower power quality and higher power prices are being further supported by numerous underlying trends, providing incremental avenues for future growth in our business, and we firmly believe our portfolio of products and solutions is uniquely positioned to deliver value and protection to homes, businesses and institutions around the world. I'll now turn the call over to York to provide further details on our second quarter results and our updated outlook for 2025. York?

今天上午結束時，我們的第二季業績反映了我們在動態營運環境中的強勁執行力以及我們各產品類別的廣泛優勢。在應對不斷變化的市場和政策條件時，我們將繼續秉承我們的核心企業價值——敏捷，同時在進一步執行企業策略時繼續關注存在的重大成長機會。電能品質下降和電價上漲的大趨勢得到了眾多潛在趨勢的進一步支持，為我們業務的未來成長提供了增量途徑，我們堅信，我們的產品和解決方案組合具有獨特的優勢，可以為世界各地的家庭、企業和機構提供價值和保護。現在我將把電話轉給約克，以提供有關我們第二季業績和 2025 年最新展望的更多詳細資訊。約克？

Thanks, Aaron. Looking at second quarter 2020 results in more detail. Net sales during the quarter increased 6% to $1.06 billion as compared to $998 million in the prior year second quarter. The combined effect of acquisitions in foreign currency had a slight favorable impact on revenue growth during the quarter. Briefly looking at consolidated net sales for the second quarter by product class.

謝謝，亞倫。更詳細地了解 2020 年第二季的業績。本季淨銷售額較去年同期的 9.98 億美元成長 6%，達到 10.6 億美元。外幣收購的綜合效應對本季的營收成長產生了輕微的有利影響。簡要查看按產品類別劃分的第二季綜合淨銷售額。

Residential product sales increased 7% to $574 million as compared to $538 million in the prior year. This growth in residential product sales was driven by a strong increase in shipments of energy storage systems and ecobee home energy management solutions. Portable generator shipments also contributed to the sales growth, while home standby generator sales were flat with the prior year. Commercial and industrial product sales for the second quarter increased 5% to $362 million as compared to $344 million in the prior year. Core sales growth of approximately 4% was driven by strength in shipments to our domestic industrial distributors and telecom customers, as well as strong growth within Europe, partially offset by weakness in shipments to national rental accounts and other international markets.

住宅產品銷售額較前一年的 5.38 億美元成長 7%，達到 5.74 億美元。住宅產品銷售的成長得益於能源儲存系統和 Ecobee 家庭能源管理解決方案出貨量的強勁成長。便攜式發電機的出貨量也促進了銷售的成長，而家用備用發電機的銷售與去年持平。第二季商業和工業產品銷售額較去年同期的 3.44 億美元成長 5%，達到 3.62 億美元。核心銷售成長約 4%，這得益於我們國內工業分銷商和電信客戶的出貨量強勁，以及歐洲內部的強勁成長，但被國內租賃帳戶和其他國際市場的出貨量疲軟部分抵消。

Net sales for the other products and services category increased approximately 8% to $125 million as compared to $116 million in the second quarter of 2024. Core sales increased approximately 6%, and primarily due to growth in aftermarket service parts and accessories, ecobee remote monitoring subscription sales and other installation and maintenance services revenue. Gross profit margin was 39.3% compared to 37.6% in the prior year second quarter, primarily due to favorable pricing and lower input costs, partially offset by unfavorable sales mix.

其他產品和服務類別的淨銷售額較 2024 年第二季的 1.16 億美元成長約 8%，達到 1.25 億美元。核心銷售成長約 6%，主要由於售後服務零件和配件、ecobee 遠端監控訂閱銷售以及其他安裝和維護服務收入的成長。毛利率為 39.3%，而去年同期第二季為 37.6%，這主要得益於優惠的定價和較低的投入成本，但卻被不利的銷售組合部分抵銷。

The favorable price/cost dynamics were partly due to the timing differences between the realization of recent price increases and the higher tariff related input costs. In addition, gross margins exceeded expectations for the quarter partially due to a lower tariff impact relative to our previous guidance.

有利的價格/成本動態部分歸因於近期價格上漲的實現與更高的關稅相關投入成本之間的時間差異。此外，本季毛利率超出預期，部分原因是關稅影響相對於我們先前的預期較低。

Operating expenses increased $33 million or 12% as compared to the second quarter of 2024. This growth in operating expenses was primarily driven by higher variable costs due to higher shipment volumes, increased employee costs to support future growth across the business and ongoing operating expenses related to recent acquisitions.

與 2024 年第二季相比，營運費用增加了 3,300 萬美元，即 12%。營運費用的成長主要是由於出貨量增加導致的變動成本上升、為支持整個業務的未來成長而增加的員工成本以及與近期收購相關的持續營運費用。

Adjusted EBITDA, before deducting for noncontrolling interest, as defined in our earnings release, exceeded expectations at $188 million or 17.7% of net sales in the second quarter as compared to $165 million or 16.5% of net sales in the prior year. I will now briefly discuss financial results for our 2 reporting segments. Domestic segment total sales, including intersegment sales, increased 7% to $884 million in the quarter as compared to $827 million in the prior year, which included approximately 1% sales growth contribution from recent acquisitions.

調整後的 EBITDA（扣除收益報告中定義的非控股權益之前）超過預期，第二季為 1.88 億美元，佔淨銷售額的 17.7%，而去年同期為 1.65 億美元，佔淨銷售額的 16.5%。現在我將簡要討論我們兩個報告部門的財務結果。本季國內分部總銷售額（包括分部間銷售額）較上年同期的 8.27 億美元成長 7%，達到 8.84 億美元，其中包括近期收購貢獻的約 1% 的銷售成長。

Adjusted EBITDA for the segment was $158 million, representing 17.9% of total sales as compared to $140 million in the prior year or 16.9%. International segment total sales, including intersegment sales, increased approximately 7% to $197 million in the quarter as compared to $185 million in the prior year quarter, including an approximate 1% benefit from foreign currency. Adjusted EBITDA for the segment before deducting for noncontrolling interests was $30 million or 15% of total sales as compared to $25 million or 13.6% in the prior year. Now switching back to our financial performance for the second quarter of 2025 on a consolidated basis. As disclosed in our earnings release, GAAP net income for the company in the quarter was $74 million as compared to $59 million for the second quarter of 2024.

該部門調整後的 EBITDA 為 1.58 億美元，佔總銷售額的 17.9%，而去年同期為 1.4 億美元，佔 16.9%。本季國際部門總銷售額（包括部門間銷售額）較去年同期的 1.85 億美元成長約 7%，達到 1.97 億美元，其中約 1% 的收益來自外幣。該部門扣除非控股權益前的調整後 EBITDA 為 3,000 萬美元，佔總銷售額的 15%，而去年同期為 2,500 萬美元，佔 13.6%。現在回到我們 2025 年第二季的合併財務表現。正如我們的收益報告中所揭露的那樣，該公司本季的 GAAP 淨收入為 7,400 萬美元，而 2024 年第二季為 5,900 萬美元。

Our interest expense declined from $23.3 million in the second quarter of 2024 to $18.2 million in the current year quarter as a result of lower borrowings and lower interest rates relative to prior year. GAAP income taxes during the current year second quarter were $15.4 million or an effective tax rate of 17.2% as compared to $19.6 million or an effective tax rate of 25% for the prior year. The decrease in effective tax rate was primarily driven by a favorable [discrete] tax item related to an immaterial business disposition in the current year quarter. Diluted net income per share for the company on a GAAP basis was $1.25 in the second quarter of 2025 compared to $0.97 in the prior year. Adjusted net income for the company, as defined in our earnings release, was $97 million in the current year quarter or $1.65 per share.

由於借款減少且利率與上年相比下降，我們的利息支出從 2024 年第二季的 2,330 萬美元下降至本季的 1,820 萬美元。本年度第二季的 GAAP 所得稅為 1,540 萬美元，有效稅率為 17.2%，去年同期的 GAAP 所得稅為 1,960 萬美元，有效稅率為 25%。有效稅率的下降主要是由於本季與非重大業務處置相關的有利的[離散]稅項目所致。2025 年第二季度，該公司以 GAAP 計算的每股攤薄淨收益為 1.25 美元，去年同期為 0.97 美元。根據我們的收益報告定義，該公司本季的調整後淨收入為 9,700 萬美元，即每股 1.65 美元。

This compares to adjusted net income of $82 million in the prior year or $1.35 per share. Cash flow from operations was $72 million as compared to $78 million in the prior year second quarter, and free cash flow, as defined in our earnings release, was $14 million as compared to $15 million in the same quarter last year. The change in free cash flow was primarily driven by higher working capital and capital expenditures, causing a greater use of cash during the current year quarter, partially offset by higher operating earnings. We expect working capital to be a use of cash again in the third quarter as we continue to replenish portable generator inventories for storm season and prepare for our next-generation home standby product launch later this year. Additionally, we opportunistically repurchased approximately 393,000 shares of our common stock during the quarter for $50 million.

相比之下，去年調整後的淨收入為 8,200 萬美元，即每股 1.35 美元。經營現金流為 7,200 萬美元，而去年同期第二季為 7,800 萬美元；自由現金流（定義見收益報告）為 1,400 萬美元，而去年同期為 1,500 萬美元。自由現金流的變化主要是由於營運資本和資本支出增加，導致本季現金使用量增加，但營業利潤增加部分抵銷了這一變化。我們預計第三季營運資金將再次成為現金用途，因為我們將繼續補充風暴季節的便攜式發電機庫存，並為今年稍後推出的下一代家用備用產品做準備。此外，我們在本季趁機以 5,000 萬美元回購了約 393,000 股普通股。

There is approximately $200 million remaining on our current share repurchase authorization as of the end of the second quarter. On July 1, we amended and extended our existing Term Loan A and revolving credit facility resulting in a new maturity date of July 1, 2030. This agreement updated the Term Loan A outstanding principal balance to $700 million and reduced the revolving facility borrowing capacity to $1 billion. In addition, the amendment eliminated a 10 basis point credit spread adjustment that was included in the previous agreement and also resulted in a more favorable pricing grid based on our leverage ratio. Quarterly principal payments on the Term Loan A will begin in October 2026, with a lump sum due at maturity in July of 2030.

截至第二季末，我們目前的股票回購授權還剩餘約 2 億美元。7 月 1 日，我們修改並延長了現有的定期貸款 A 和循環信貸額度，新的到期日為 2030 年 7 月 1 日。該協議將定期貸款 A 的未償還本金餘額更新為 7 億美元，並將循環貸款借款能力降低至 10 億美元。此外，修訂案取消了先前協議中包含的 10 個基點信用利差調整，並根據我們的槓桿率形成了更有利的定價網格。定期貸款 A 的季度本金支付將於 2026 年 10 月開始，並於 2030 年 7 月到期時支付一筆款項。

Total debt outstanding at the end of the quarter was $1.4 billion, resulting in a gross debt leverage ratio of 1.7x on an as-reported basis. With that, I will now provide further comments on our updated outlook for 2025. As disclosed in our press release this morning, we're updating our full year 2025 outlook given our first half actual results driving increased visibility to expected full year 2025 net sales.

本季末未償還債務總額為 14 億美元，報告顯示總債務槓桿率為 1.7 倍。因此，我現在將對我們更新後的 2025 年展望提供進一步的評論。正如我們今天早上的新聞稿中所披露的那樣，鑑於我們上半年的實際業績提高了預計 2025 年全年淨銷售額的可見性，我們正在更新 2025 年全年展望。

As a result of our second quarter outperformance being mostly offset by lower pricing assumptions in the second half of the year, primarily due to lower-than-expected tariffs, we are narrowing our net sales growth guidance range while holding the midpoint of that range. In addition, we are increasing the low end of our adjusted EBITDA margin guidance range and raising our free cash flow conversion guidance for the full year 2025.

由於我們第二季度的優異表現大部分被下半年較低的定價假設所抵消，這主要是由於關稅低於預期，因此我們正在縮小淨銷售額增長預期範圍，同時保持該範圍的中點。此外，我們正在提高調整後 EBITDA 利潤率指導範圍的低端，並提高 2025 年全年的自由現金流轉換指引。

This guidance includes the following important assumptions: we're assuming that current tariff levels that are in effect today stay in place for the remainder of the year. This includes 30% tariff levels for China compared to 145% assumed in our previous guidance and 20% tariff levels for Vietnam compared to 10% previously assumed. We continue to assume 10% reciprocal tariffs on all other countries and the continued qualification of US MCA for Mexico and Canada, consistent with our prior guidance. Incremental tariffs have also been levied against steel and copper imports since our previous guidance update, and we have assumed higher market prices for these metals in the second half of the year as a result.

該指南包括以下重要假設：我們假設目前有效的現行關稅水準將在今年剩餘時間內保持不變。其中包括對中國的關稅水準為 30%，而我們先前的指導假設為 145%，對越南的關稅水準為 20%，而先前假設為 10%。我們繼續假設對所有其他國家徵收 10% 的互惠關稅，並繼續假設美國對墨西哥和加拿大的 MCA 資格，這與我們先前的指導一致。自從我們上次更新指南以來，鋼鐵和銅進口也已被徵收增量關稅，因此我們預計今年下半年這些金屬的市場價格將會上漲。

Finally, consistent with our historical approach, this outlook assumes a level of power outage activity for the remainder of the year, in line with the longer-term baseline average and does not assume the benefit of a major power outage event in the second half of the year, such as a major landed hurricane or major winter storm. Considering all these factors, we now expect consolidated net sales for the full year to increase between 2% to 5% over the prior year which includes an approximate 1% favorable impact from the combination of foreign currency and acquisitions.

最後，與我們的歷史方法一致，該展望假設今年剩餘時間的停電活動水平與長期基線平均值一致，並且不假設下半年發生重大停電事件（例如登陸的大型颶風或大型冬季風暴）的好處。考慮到所有這些因素，我們現在預計全年綜合淨銷售額將比上年增長 2% 至 5%，其中包括外匯和收購帶來的約 1% 的有利影響。

This compares to our previous guidance of 0% to 7% net sales growth over the prior year. We now project full year 2025 residential product sales to be slightly lower compared to our previous expectation, given lower assumed tariff-related pricing in the home standby category. We also now project full year 2025 C&I product sales to be modestly higher compared to our previous expectation, given second quarter outperformance and favorable foreign currency rates relative to our prior forecast.

相比之下，我們先前預測的淨銷售額成長率為 0% 至 7%。由於假設家用備用類別的關稅相關定價較低，我們現在預計 2025 年全年住宅產品銷售額將略低於我們先前預期的。鑑於第二季的優異表現和相對於我們先前預測的有利的外匯匯率，我們現在也預測 2025 年全年 C&I 產品銷售額將略高於我們先前的預期。

As a result, we now expect Residential Products and C&I products net sales growth to be more level loaded for the full year 2025 relative to our prior expectations. From a seasonal pacing perspective, we expect third quarter overall net sales to be slightly ahead of the prior year with fourth quarter overall net sales approximately flat versus the prior year. Recall that the prior year periods included the benefit of multiple major outage events, which results in a strong prior comparison, in particular for residential products. Looking at our updated gross margin expectations for the full year 2025. We now expect gross margin percent to increase approximately 50 to 100 basis points compared to the full year 2024, coming in at approximately 39.5% at the midpoint.

因此，我們現在預計，2025 年全年住宅產品和商業與工業產品淨銷售額的成長將比我們先前的預期更加穩定。從季節性節奏的角度來看，我們預計第三季的整體淨銷售額將略高於上年，而第四季的整體淨銷售額將與去年持平。回想一下，前一年期間包括多次重大停電事件的好處，這導致了強勁的前期比較，特別是對於住宅產品而言。查看我們對 2025 年全年毛利率的最新預期。我們現在預計毛利率將比 2024 年全年增加約 50 至 100 個基點，中間值約為 39.5%。

This represents an increase from our prior expectation of approximately 39.0% due to our second quarter outperformance and lower tariff assumptions related relative to the prior guidance. Turning to our adjusted EBITDA margin expectations for the full year 2025. Given the factors I outlined in our net sales and gross margin update, we are increasing the lower end of our guidance range for adjusted EBITDA percent to approximately 18% to 19% compared to our previous guidance range of 17% to 19%. In line with normal seasonality, we expect third quarter adjusted EBITDA margins to improve 150 to 200 basis points sequentially from the second quarter given the projected significant operating leverage on seasonally higher sales volumes. Additionally, we are raising our free cash flow conversion forecast given the impact of the one big beautiful Bill Act on our federal income tax payments.

由於我們第二季度的出色表現以及相對於先前指引的較低關稅假設，這比我們先前預期的約 39.0% 有所增加。轉向我們對 2025 年全年調整後的 EBITDA 利潤率的預期。鑑於我在淨銷售額和毛利率更新中概述的因素，我們將調整後 EBITDA 百分比指導範圍的下限提高至約 18% 至 19%，而先前的指導範圍為 17% 至 19%。根據正常的季節性因素，我們預計第三季調整後的 EBITDA 利潤率將比第二季季增 150 至 200 個基點，因為預計季節性銷售量增加將帶來顯著的營運槓桿作用。此外，考慮到《一項偉大的法案》對我們的聯邦所得稅支付的影響，我們正在提高我們的自由現金流轉換預測。

Given the favorable tax impact of immediate expensing of research and development costs, and bonus depreciation on certain capital expenditures, we now expect free cash flow conversion from adjusted net income to be approximately 90% to 100% for the full year 2025 as compared to our -- the previous guidance range of 70% to 90%. Importantly, this would result in over $400 million of free cash flow in fiscal 2025, which provides for further near-term optionality within our disciplined and balanced capital allocation framework. As is our normal practice, we're also providing additional guidance details to assist with modeling adjusted earnings per share and free cash flow for the full year 2025. For full year 2025, our GAAP effective tax rate is now expected to be between 23% to 23.5%, a modest decrease from our prior guidance of 24.5% to 25% due to the second quarter outperformance. Our GAAP effective tax rate for the remaining 2 quarters of the year is expected to be approximately 25%.

鑑於研發成本立即費用化和某些資本支出的獎金折舊產生的有利稅收影響，我們現在預計 2025 年全年調整後淨收入的自由現金流轉換率將達到約 90% 至 100%，而我們之前的指導範圍為 70% 至 90%。重要的是，這將在 2025 財年產生超過 4 億美元的自由現金流，從而為我們嚴謹而均衡的資本配置框架內的進一步短期選擇提供保障。按照我們的慣例，我們還將提供額外的指導細節，以協助模擬 2025 年全年的調整後每股盈餘和自由現金流。對於 2025 年全年，我們預計 GAAP 有效稅率將在 23% 至 23.5% 之間，由於第二季的優異表現，較我們先前預測的 24.5% 至 25% 略有下降。我們預計今年剩餘兩季的 GAAP 有效稅率約為 25%。

Importantly, to arrive at appropriate estimates for adjusted net income and adjusted earnings per share, add-back items should be reflected net of tax using our expected effective tax rate of approximately 25%. We continue to expect interest expense to be approximately $74 million to $78 million for the full year 2025 and assuming no additional term loan principal prepayments during the year. This contemplates a lower interest rate due to our recent amended an extend transaction mostly offset by modestly higher outstanding borrowings. This guidance is a significant decline from 2024 interest expense levels due to a decrease in outstanding borrowings and the full year impact of lower sulfur interest rates. Our capital expenditures are still projected to be approximately 3% of our forecasted net sales for the full year, in line with historical levels.

重要的是，為了對調整後的淨收入和調整後的每股盈餘做出適當的估計，加回項目應使用我們預期的約 25% 的有效稅率來反映稅後淨額。我們繼續預期 2025 年全年利息支出約為 7,400 萬至 7,800 萬美元，並假設當年沒有額外的定期貸款本金預付。由於我們最近修改了延長交易，因此預計利率會降低，但未償還借款的略高抵消了這一影響。由於未償還借款減少以及硫磺利率降低對全年的影響，該指引較 2024 年利息支出水準大幅下降。我們的資本支出預計仍將佔全年預測淨銷售額的約 3%，與歷史水準一致。

Depreciation expense, GAAP intangible amortization expense and stock compensation expense are also expected to remain consistent with last quarter's guidance. Our full year weighted average diluted share count is expected to be approximately 59.4 million to 59.5 million shares as compared to 60.3 million shares in 2024. Finally, this 2025 outlook does not reflect potential additional acquisitions or share repurchases that could drive incremental shareholder value during the year. This concludes our prepared remarks. At this time, we'd like to open up the call for questions.

折舊費用、GAAP 無形資產攤銷費用和股票薪資費用預計也將與上一季的指引保持一致。我們預計全年加權平均稀釋股數約為 5,940 萬至 5,950 萬股，而 2024 年為 6,030 萬股。最後，2025 年的展望並未反映出可能在當年推動股東價值成長的潛在額外收購或股票回購。我們的準備好的演講到此結束。現在，我們想開始提問。

(Operator Instructions)

（操作員指示）

Tommy Moll of Stephens.

史蒂芬斯的湯米·莫爾。

Good morning and thank you for taking my question. Aaron, on the recent entry into the data center market, it sounds like things have gone pretty well so far. But I just wanted to ask for anything else you can give us there when could these revenues start to be meaningful? Are the lead times for some of the incumbents that are still as extended as they have been in recent years? What have you learned so far?

早上好，感謝您回答我的問題。亞倫，關於最近進入資料中心市場的情況，聽起來到目前為止一切進展順利。但我只是想問一下您還能告訴我們什麼，這些收入什麼時候才能開始變得有意義？一些現任者的交貨時間是否仍像近年來一樣長？到目前為止你學到了什麼？

Yes. Thanks, Tommy. So Yes. I mean that -- this has been something we've been talking about for the last few quarters, the entry into this market and something, frankly, we've been working on for a couple of years. We haven't been talking about it much because we wanted to get to the finish line.

是的。謝謝，湯米。是的。我的意思是——這是我們過去幾個季度一直在談論的事情，進入這個市場，坦白說，我們已經為此努力了幾年。我們沒有談論太多，因為我們想要到達終點線。

But it will begin to impact revenues this year in the second half. Our initial shipments in the international market will start in Q3. And then very late this year, we'll start to get our first domestic shipments out to those customers. But not much of an impact this year. It's really a 2026 story right now.

但從今年下半年開始，它將開始影響收入。我們在國際市場的首批出貨將於第三季開始。今年晚些時候，我們將開始向這些客戶發送第一批國內貨物。但今年影響不大。現在這確實是一個 2026 年的故事。

What we're being told, and this is just kind of -- to kind of size the opportunity for us anyway because I think this is, by far and away, one of the biggest needle-moving opportunities that I've seen in my time here in my 3 decades with the company. Just both in the size of the market opportunity, the data centers, in particular, present, but also obviously, the growth rate there. And the fact that this feels like something that's going to go on for a long time. You combine that with the structural deficit in the availability of these backup power products. In our early conversations here over the last several months, nearly every data center developer operator owner and customer has told us that there are 2 major components that they worry about in the lead time for construction of new data centers.

我們被告知的是，這只是某種程度上為我們衡量機會的方式，因為我認為，這是迄今為止我在公司工作 30 年來見過的最大的推動機會之一。不僅從市場機會的規模來看，尤其是資料中心，而且很明顯，那裡的成長率也很高。事實上，這種事情感覺會持續很久。將其與這些備用電源產品可用性的結構性缺陷結合。在過去幾個月的早期對話中，幾乎每個資料中心開發商、營運商所有者和客戶都告訴我們，在建造新資料中心的過程中，他們擔心兩個主要因素。

The first is transformers and the second is backup generators. And so what we've learned, to answer your question, is that we believe, based on our conversations that there appears to be about a structural deficit just in 2026 of something on the order of maybe 5,000 machines based on current capacity in the market and based on current construction completion time lines for the projects that are underway for data centers. So obviously, 5,000 machines is a lot of machines. If you -- if you look at kind of on the high side, every single copy of every machine would be about $1 million all in. So it's a huge -- one, it's a huge market just being served on an annual basis today, much greater in size than anything that we've ever approached.

第一是變壓器，第二是備用發電機。因此，為了回答您的問題，我們了解到，根據我們的談話，我們認為，根據目前的市場容量和正在進行的資料中心專案的當前建設完成時間表，到 2026 年，似乎會出現大約 5,000 台機器的結構性缺口。顯然，5,000 台機器是很多機器。如果你——如果你從高處看，每台機器的每份副本總價值約為 100 萬美元。所以，這是一個巨大的市場——首先，這是一個巨大的市場，按年提供服務，其規模遠遠超過我們曾經接觸過的任何市場。

And two, the structural deficit that's there, I think, will allow for a pretty rapid entry for us into the market. I'm shocked at the over $150 million that we've already booked in hard orders and the size of the pipeline that we're cultivating in this market. We've been very well received with the -- not only just the product, but I think our brand, our reputation, the quality of our distribution, the quality of our balance sheet, frankly, the ability to stand behind these products in these very critical applications, I think we've been very well received initially here. Now we've got to deliver, and we've got to execute. So it's not -- we're not -- this isn't a layup by any stretch of the imagination, but we're taking this very seriously.

其次，我認為，存在的結構性赤字將使我們能夠相當迅速地進入市場。我對我們已經獲得的超過 1.5 億美元的硬訂單以及我們在這個市場上培育的通路規模感到震驚。我們受到了熱烈歡迎——不僅僅是產品，而且我認為我們的品牌、聲譽、分銷質量、資產負債表質量，坦率地說，在這些非常關鍵的應用中支持這些產品的能力，我認為我們最初在這裡受到了熱烈歡迎。現在我們必須兌現承諾，必須執行。所以這不是——我們不是——無論如何這都不是一次上籃，但我們對此非常認真。

We do have good capacity to grow in the next year or so. But given the kind of situation that this market is facing from a structural deficit standpoint in terms of supply versus demand, we believe that based on our early -- the early learnings here and then our early success, we are going to have to make some potentially bold moves around additional capacity if we want that to be available for 2027 and beyond. We think we're in really good shape for '26 and really probably even for parts of '27. But given the size of the deficit that 5,000 machines just for next year, we think there's real opportunity for us if we lean into this and be aggressive. Again, like I said, I've never seen something that can move the needle like this.

我們確實有在未來一年左右實現良好成長的能力。但考慮到這個市場在供需方面面臨的結構性赤字情況，我們認為，基於我們早期的經驗教訓和早期的成功，如果我們希望在 2027 年及以後能夠實現這一目標，我們將不得不在增加產能方面採取一些大膽的舉措。我們認為，26 年我們的狀況非常好，甚至 27 年的部分時間我們的狀況也很好。但考慮到明年缺口規模就高達 5,000 台機器，我們認為，如果我們抓住這個機會並積極進取，我們將面臨真正的機會。再說一次，就像我說的，我從來沒有見過能產生如此大影響的東西。

I think if we do things the right way, I think this part of our business, which has always been a good solid business, right, over -- call it, a $1.5 billion opportunity today. That's our -- that's the size of the C&I products part of our business. That's something that I think can grow dramatically in the next several years. And this -- we could be in a situation in several years where the C&I products are larger than the rest of the company. And so I think it's -- this is just an exciting time and something that we're going to lean into and it's a global opportunity.

我認為，如果我們以正確的方式做事，我們的這部分業務一直都是良好穩固的業務，對吧，今天可以說是一個 15 億美元的機會。這就是我們的——這就是我們業務中 C&I 產品部分的規模。我認為，在未來幾年內，這一領域將會急劇成長。幾年後，我們可能會面臨這樣的局面：C&I 產品比公司的其他產品規模更大。所以我認為這是一個令人興奮的時刻，是我們要抓住的機遇，也是一個全球性的機會。

And it's a global opportunity. I think that's the other exciting piece of that, I could add.

這是一個全球性的機會。我想補充的是，這是另一個令人興奮的部分。

George Gianarikas of Canaccord Genuity.

Canaccord Genuity 的 George Gianarikas。

Good morning and thank you for taking my questions. I'd like to concentrate on some of the comments you made around ecobee and the solar market opportunity at least to me, it appears to be a little bit of a change in tone here around your willingness to continue to invest in the inverter market over the long term over the medium term. I was wondering if you can sort of paint a broad brush and help us understand a little bit around how you might be changing your philosophy around those markets. And maybe just update us on what the dilution was from the clean type business during the first half of the year.

早上好，感謝您回答我的問題。我想集中談談您對 Ecobee 和太陽能市場機會的一些評論，至少對我來說，您似乎在中期內繼續投資逆變器市場的意願上發生了一些變化。我想知道您是否可以大致介紹一下並幫助我們了解您如何改變對這些市場的概念。也許您只是向我們更新今年上半年清潔型業務的稀釋情況。

Thank you.

謝謝。

Yes. Thanks, George. So I don't know if it represents a change in tone, perhaps maybe that's the right way to characterize it. Let me say what hasn't changed. And I think the comments we wrote the specific commentary was we're laser-focused on reducing the drag on earnings from this business, i.e., we want to get it to be in positive territory.

是的。謝謝，喬治。所以我不知道這是否代表了語氣的變化，也許這是描述它的正確方式。讓我說一下什麼沒有改變。我認為，我們寫的具體評論是，我們專注於減少這項業務對盈利的拖累，也就是說，我們希望它處於積極的區間。

We will get it to be in positive territory.

我們將使它處於積極的領域。

Now we have to obviously recalibrate if the overall market size for solar, in particular, if that's going to decrease in the years ahead, and it's likely that it will. The question is how much, right? I think there's still some things that need to be vetted and understood as the one big beautiful Bill kind of now moves from it being passed the legislation into kind of interpretation by treasury and what happens there in terms of the actual impacts to the market. But clearly, the market is going to contract for solar. It's just -- is it going to contract 20%?

現在我們必須重新調整太陽能的整體市場規模，特別是未來幾年是否會減少，而且很可能會減少。問題是多少，對吧？我認為，隨著這項美麗的法案從通過立法階段進入財政部解釋階段，還有一些事情需要審查和理解，以及它對市場的實際影響。但顯然，太陽能市場將會萎縮。只是——它會收縮 20% 嗎？

Or is it going to contract 50%. So but take a range, maybe it's 20% to 50%. We believe that, that market, if you just step back, has been heavily impacted, obviously, by the incentive structures over the years. It's been distorted. That's the word we keep using internally here.

還是會萎縮50%。所以取一個範圍，可能是 20% 到 50%。我們認為，如果你回顧一下，你會發現這個市場多年來顯然已經受到激勵結構的嚴重影響。它已被扭曲。這是我們內部一直在使用的字。

It's a market that's been, frankly, this is one of the major problems you run into in terms of distortions that can happen in markets when you have subsidization for as long as you've had with this market. And the changing kind of time lines around those subsidization, the change in quantums of those subsidization, we actually believe the elimination of subsidies for solar is a good thing for the market. In the long run, it will help this market grow, structurally grow in a way that normal markets grow. Right now, it doesn't look anything like a normal market. In fact, you can look at how a typical solar system is transacted.

坦白說，這是一個市場所面臨的主要問題之一，只要你在市場上有補貼，就可能會出現市場扭曲。隨著這些補貼的時間表不斷變化，補貼數量也不斷變化，我們實際上認為取消對太陽能的補貼對市場來說是一件好事。從長遠來看，它將幫助這個市場成長，以正常市場成長的方式進行結構性成長。現在，它看起來一點也不像一個正常的市場。事實上，你可以看看典型的太陽係是如何運作的。

That transaction almost looks like nothing else on the planet in terms of how it's structured, the financial engineering, the craziness around it. And I think a lot of that has had a negative effect actually on the underlying structural integrity of the market in terms of -- it had kind of a distorted effect on the overall ASP for a project. I think the ASPs for projects are higher. There's a reason that they're considerably higher here in the US than they are in Europe.

從結構、金融工程和周圍的瘋狂程度來看，這筆交易幾乎與地球上的其他交易都不同。我認為其中許多因素實際上對市場底層結構完整性產生了負面影響——它對專案的整體平均銷售價格產生了某種扭曲的影響。我認為專案的平均售價更高。美國的比例明顯高於歐洲，這是有原因的。

And I think a lot of that has to do with the -- just the amount of subsidization, the amount of incentives that go into that and the structures that come out of those transactions with tax equity structures and other elements. I think if we get rid of all of that. Over time, what will be laid there is a market that can work. You can see what's going on in Europe. It works.

我認為這在很大程度上與補貼金額、補貼激勵金額以及交易產生的稅收公平結構和其他要素有關。我想如果我們擺脫這一切。隨著時間的推移，在那裡鋪設的設施將形成一個可以運作的市場。你可以看到歐洲正在發生什麼。有用。

Power prices are going up. You can look at your own power bill, look at your neighbor's power bill, look at power bills across the country. This is, without a doubt, a story that's underreported. We can talk about power outages all we want. But at the end of the day, the cost of power is going up and there's lots of reasons.

電價正在漲。您可以查看自己的電費帳單、查看鄰居的電費帳單、查看全國各地的電費帳單。毫無疑問，這是一個未被充分報導的故事。我們可以隨意談論停電問題。但最終，電力成本還是會上漲，原因很多。

People can pick their reason and it differs by utility, it differs by region, it differs by type of customer. But at the end of the day, your power cost, my power costs have gone up over 30% in the last 5 years and are expected to double in the next 10 or greater. You're already seeing this play out in parts of the country. As power costs increase and as the cost of these technologies, i.e., solar, storage, energy management, all of these technologies continue to come down rapidly in cost. They have done that over the last couple of decades, and they will continue to do so.

人們可以選擇他們的理由，它因效用、地區和客戶類型而異。但最終，你的電力成本，我的電力成本在過去 5 年裡上漲了 30% 以上，預計在未來 10 年或更長時間內還會翻倍。您已經在該國部分地區看到這種情況的發生。隨著電力成本的增加以及太陽能、儲能、能源管理等技術成本的下降，所有這些技術的成本都在持續快速下降。過去幾十年來他們已經這樣做了，並且將繼續這樣做。

You can get to economic outcomes there that are very beneficial to homeowners and businesses by installing solar even without the incentive structures. And that, I think, is where this ultimately lands. Now there's going to be a couple more years of noise here as the incentives taper off, you're going to have some pull forward of demand with safe harboring maybe in the second half of this year. And all of that has to wash through the system. But for us, we think that solar and storage are still important technologies in a residential energy ecosystem.

即使沒有激勵機制，安裝太陽能也可以帶來對房主和企業非常有利的經濟成果。我認為，這就是最終的結果。現在，隨著獎勵措施逐漸減少，這裡還會出現幾年的噪音，也許在今年下半年，安全港政策會提前推動需求。所有這些都必須透過系統來清除。但對我們來說，我們認為太陽能和儲能仍然是住宅能源生態系統中的重要技術。

And parts of that. Now they're not the only parts, okay? We believe EV charging is going to be an important kind of play an important role. We believe that energy management with the ecobee products are going to play an important role. We believe generators are going to play an important role in the energy ecosystem.

以及其中的部分內容。現在它們不是唯一的部分，好嗎？我們相信電動車充電將發揮重要作用。我們相信，ecobee產品的能源管理將發揮重要作用。我們相信發電機將在能源生態系統中發揮重要作用。

All of this linked together is how we're going to keep homeowners and businesses resilient. And we're going to help them save money on their power bills. We're going to give them a lot more independence going forward. It's going to take time to build that out, but we are not going to continue to lose money on this business in perpetuity. We've said that -- the drag on this, I think, York, for the first half of the year, it was about --

所有這些聯繫在一起就是我們如何讓房主和企業保持韌性。我們將幫助他們節省電費。我們將在未來賦予他們更多的獨立性。實現這一目標需要時間，但我們不會永遠在這個業務上虧損。我們已經說過了——我認為，約克，今年上半年的拖累大約是--

That 300 to 400 basis points. But overall, for the year, it's, call it, 300 to 350.

即 300 到 400 個基點。但總體而言，今年的數量大概是 300 到 350。

Yes, that's our expectation. For the full year, but continuing to improve. We've seen that improvement already in ecobee, and we're going to continue to see that in the rest of the business.

是的，這是我們的期望。就全年而言，但仍在持續改善。我們已經在 ecobee 中看到了這種改進，並且我們將繼續在其他業務中看到這種改進。

Now we'll adjust our spending, right? If the market is smaller, we're going to have to adjust the level of our investment, recalibrate our investment. We've got a lot of new product coming to market this year. We won't have a lot of that new product cost, if you will, the development costs we'll start to taper, and we'll go more into a sustaining mode on those new products going into 2026. So I think we're in a good place to make the recalibration that we need to make there.

現在我們要調整我們的支出，對嗎？如果市場規模變小，我們必須調整投資水平，重新校準投資。今年我們有許多新產品上市。我們不會花太多的新產品成本，如果你願意的話，我們將開始減少開發成本，到 2026 年，我們將更重視重新產品的維持模式。所以我認為我們目前處於一個良好的狀態，可以進行我們需要的重新調整。

But we are still committed to this being part of an energy ecosystem, we think, is an important element for us to plant the flag in going forward here at the company.

但我們仍然致力於將其作為能源生態系統的一部分，我們認為，這是我們在公司未來發展中建立旗幟的重要因素。

Mike Halloran of Baird

貝爾德公司的麥克‧哈洛倫

Hey, good morning. Aaron, can you just continue that train of thought then, what is the next, call it, 12, 18 months look like as far as the iterations go for how you get that back to kind of a neutral profitability level, the clean energy piece? What are the types of things you're thinking internally? What's that time line look like? And is this the clean energy piece specifically? Or does that include ecobee, which -- correct me if I'm wrong, but that is already at a profitable level.

嘿，早安。亞倫，您能否繼續這個思路，接下來的 12 到 18 個月會是怎樣的迭代，您如何讓清潔能源部分恢復到中性盈利水平？您內心在想些什麼事？時間軸是什麼樣的？這是專門針對清潔能源的部分嗎？或者這包括 ecobee，如果我錯了請糾正我，但這已經處於盈利水平。

So is that the net of the 2? Or is that exclusive of --

那麼這是 2 的淨值嗎？或不包括--

So yes, no, correct, Mike. Ecobee is profitable year-to-date, and we expect it to be fully profitable for the year. It's done -- that team has done an outstanding job. And the growth rate there is been fantastic. It's a huge part, obviously, of our whole energy technology business when you look at it together.

所以，是的，不，正確，麥克。Ecobee 今年迄今已實現盈利，我們預計其全年將實現完全盈利。完成了－該團隊做得非常出色。那裡的成長率非常驚人。顯然，從整體來看，它是我們整個能源技術業務的重要組成部分。

The big kind of drag remains in what we refer to as our clean energy products, which are the storage products, the solar products where we've had very heavy development cycles ongoing to bring these new products to market. And as I said, kind of on the previous commentary, those new product cycles of new product introduction costs in those cycles should start to taper as we get these new products in the market. So [Power Cell 2], which is our new storage device, just started shipping here earlier in July. And our [Power Micro], our new microinverter product line is going to hit the market later this year. So the development cycles are starting -- we're getting in the final innings of the development cycles, and that's where a lot of the spend has been.

最大的阻礙仍然存在於我們所謂的清潔能源產品中，即儲存產品、太陽能產品，我們經歷了非常繁重的開發週期才將這些新產品推向市場。正如我之前的評論中所說的那樣，隨著這些新產品進入市場，這些新產品週期中的新產品推出成本應該會開始逐漸減少。我們的新儲存裝置 [Power Cell 2] 於 7 月初開始在這裡出貨。我們的新微型逆變器產品線 [Power Micro] 將於今年稍後上市。因此，開發週期開始了──我們正進入開發週期的最後階段，這也是大量支出投入的階段。

Now transitioning that spend over to support, right, and sustaining efforts is -- was kind of the next phase anyway. And so that was already kind of in the plan. And obviously, though, if the market is smaller, you won't need as much support, you won't need as much in terms of sustaining in theory. And so I think there's an opportunity there to look at recalibrating that, depending again on where we think the market is going to be. The answer to your question directly over the next 12 to 18 months is difficult because we don't know where the market is going to be over the next 12 to 18 months.

現在，將支出轉為支持和維持努力是——無論如何，這都是下一階段。所以這已經在計劃中了。顯然，如果市場規模較小，你就不需要那麼多的支持，從理論上講，你也不需要那麼多的維持。因此，我認為這裡有機會重新調整這一點，這又取決於我們對市場走向的判斷。直接回答您關於未來 12 到 18 個月的問題很困難，因為我們不知道未來 12 到 18 個月市場將會如何發展。

That's a piece that we're still kind of -- we're vetting out -- we want to get a very clear understanding where it's going to go. We know it's going to contract from current levels. And by the way, current levels are depressed. I would just point out that current levels are also depressed, though because of 2 factors. One, you had the change in the net metering rules in California from net metering 2.0 to 3.0, which had an impact -- a negative impact on the market.

這是我們仍在審查的部分，我們希望非常清楚地了解它的走向。我們知道它將從當前水平收縮。順便說一句，目前的水平很低。我只想指出，由於兩個因素，目前水準也處於低迷狀態。首先，加州的淨計量規則從淨計量 2.0 變為 3.0，這對市場產生了負面影響。

Now that's largely started to wash through. But the second kind of effect that's been depressing the market is high interest rates. And I think it's -- you could make a case that it's more likely than not that interest rates are going to go down as opposed to up in the future, which should provides a backdrop for a bit stronger market dynamics, all things equal in these -- in the clean energy types of products. So I do think the market is going to contract. There's no doubt we're going to recalibrate spending.

現在，這現像已基本開始顯現。但令市場低迷的第二種影響是高利率。我認為，你可以說，未來利率下降而不是上升的可能性更大，這應該為清潔能源類產品的市場活力提供更強勁的背景，所有條件都相同。所以我確實認為市場將會萎縮。毫無疑問，我們將重新調整支出。

We are still targeting. We had said at our Investor Day a couple of years ago that by 2027, this was a profitable area for us. That's still our focus for the company. We think that we've got to find a path to do that. Ecobee certainly has done their part.

我們仍在瞄準目標。幾年前，我們在投資者日上就說過，到 2027 年，這對我們來說將是一個有利可圖的領域。這仍然是我們公司的關注重點。我們認為我們必須找到一條途徑來實現這一點。Ecobee 確實盡了自己的一份心力。

They are well underway. In fact, I would say they're ahead of plan in terms of where we're coming out there, which is great. Now we've got to turn our attention to the rest of that part of the business. And again, like I said, we're super excited about the new products we've got coming to market and the receptivity we've had with our early discussions with the solar channel in particular. And we've got to see where the market kind of shakes out here.

一切進展順利。事實上，我想說，就我們的進展而言，他們已經領先於計劃，這很好。現在我們必須將注意力轉向該業務的其餘部分。再說一遍，就像我說的，我們對即將上市的新產品以及我們與太陽能通路早期討論的接受度感到非常興奮。我們必須觀察市場將如何震盪。

The overall market in terms of a forecast for 2026 in particular, but also as we think about the next 3 years.

特別是對 2026 年的整體市場預測，同時也對未來 3 年的市場預測。

Jeff Hammond of KeyBanc Capital Markets.

KeyBanc Capital Markets 的 Jeff Hammond。

Hey, good morning, everyone. This is David Tarantino on for Jeff. Maybe on home standby, could you give us more color on the underlying trends here and how we should expect the category to progress through the rest of the year particularly around what the dealers are telling you around the demand after glow from the outage events last year and how inventories look in the channel?

嘿，大家早安。大衛塔倫提諾 (David Tarantino) 為傑夫 (Jeff) 主持節目。也許在家庭備用方面，您能否給我們提供更多關於這裡的潛在趨勢的信息，以及我們應該如何預期該類別在今年剩餘時間內的發展，特別是圍繞經銷商告訴您的關於去年停電事件後的需求以及渠道中的庫存情況？

Yes. Thanks, David. So home standby is pretty -- what's really amazing about home standby is outages have been kind of light here in the first half of the year. We had a great second half of the year, obviously, in terms of outages, very active. Not great, of course, if you experience those and some of the reasons why you experienced them.

是的。謝謝，大衛。因此，家庭待機非常——家庭待機真正令人驚訝的是，今年上半年這裡的停電次數很少。顯然，就停電而言，我們下半年表現非常好，非常活躍。當然，如果你經歷過這些，並且知道經歷這些的原因，那就不太好。

But we're there to help our customers with our products -- and we had a very active second half of last year. That -- as we would normally expect, right? We've always said 6 to 12 months of afterglow, if you will, from those big events. And that's really kind of played out here. In the first half of the year, installations of products are up year-to-date, which is great.

但我們會透過我們的產品來幫助我們的客戶——去年下半年我們的業務非常活躍。那——正如我們通常所期望的那樣，對嗎？我們總是說，如果你願意的話，這些大型活動會有 6 到 12 個月的餘輝。而這確實在這裡得到了體現。今年上半年，產品安裝量年增，這是非常好的。

They were up in the second quarter. So they -- we're kind of holding on to that new and higher baseline. We continue to add dealers, which I think is always one of those things that we watch very closely is the pace at which we continue to add dealers has remained robust. IHCs were down in the quarter, but you would expect that with lower outages Seasonally, the second half of the year is really important, right? So no doubt, we're watching with great attention to what happens in the second half of the year.

他們在第二節領先。所以他們——我們有點堅持那個新的、更高的基準。我們繼續增加經銷商，我認為這始終是我們密切關注的事情之一，即我們繼續增加經銷商的速度一直保持強勁。本季 IHC 有所下降，但您預計由於季節性停電次數減少，下半年真的很重要，對嗎？因此毫無疑問，我們正在密切關註今年下半年的情況。

We don't have -- just remember, we don't put any major events in our guide, which -- so we're guiding our -- that business, that part of our business. We're guiding to a baseline level of outages, which is generally significantly lower, particularly in the back half if you do get major outages. So I would tell you that it's almost like there's a free option there on home standby if we do get some kind of event in the second half. And we've always said those events are between $50 million and $100 million impact. We saw that play out pretty much on point last year.

我們沒有——請記住，我們沒有在指南中放入任何重大事件，所以我們正在指導我們的——那項業務，我們業務的那部分。我們正在指導停電的基線水平，通常會低得多，特別是在後半段如果發生重大停電。所以我想告訴你，如果我們在下半場確實遇到某種事件，那麼這幾乎就像是有一個免費的主場待命選項。我們一直說這些事件的影響金額在 5,000 萬至 1 億美元之間。去年，我們看到了這情況的發生。

And we would say that, that would probably be the situation again this year. I might say the only difference might be we've done a really nice job in portable generators. We've got a new team there that's leading that business. that part of our business, those products. And they've done a great job getting some really major wins at some incredible retailers and expanding our shelf space.

我們可以這麼說，今年的情況可能還是如此。我想說唯一的區別可能是我們在便攜式發電機方面做得非常好。我們在那裡有一個新的團隊來領導這項業務、我們那部分的業務、那些產品。他們做得非常出色，在一些令人難以置信的零售商那裡贏得了一些重大勝利，並擴大了我們的貨架空間。

So we're feeling really good about where we sit from a market share standpoint in portable gens. So if we were to get some major outages, we might actually have a nicer tailwind there. We're going to be set from an inventory standpoint. It's a little bit of the cash flow in the quarter in terms of our working capital needs in Q2 were driven by kind of replanning portables a heavy storm season from last year, but also getting ready for this year's storm season and the fact that we've got increased placement with our -- in the retail channel with those products. So what the market is telling us around home standby though, is -- and it's always been kind of a regional story.

因此，從便攜式發電機的市場份額來看，我們對自己所處的位置感到非常滿意。因此，如果我們遇到一些重大停電，我們實際上可能會有更好的順風。我們將從庫存的角度進行設定。就我們第二季度的營運資金需求而言，本季的現金流有一點減少，這主要是因為重新規劃了便攜式設備以應對去年的暴風雨季節，同時也為今年的暴風雨季節做好了準備，而且我們在零售渠道中增加了這些產品的投放量。因此，市場告訴我們有關家庭待機的情況是——這一直是一個區域性的故事。

So the Southeast remains pretty robust, right, coming out of last year, the activity there is great. There are other parts of the country where it's weaker because we haven't had the outage activity. But I think if you stand back and you look at it on a hole and you look at kind of the home standby business or the products there as a segment as a group, it's been incredible how it continues to grow. And after every one of those major events like we had last fall, it holds on to that higher baseline level, and it grows from there. Now it might be slower growth for a little bit of time here until we see another inflection point with more outages, but it's an incredible part of our business in terms of the ability to grow that business on the back of outage, high-profile outage events and then to hold on to that growth and move from there.

因此東南部仍然相當強勁，從去年開始，那裡的活動就很棒。由於我們尚未發生停電事件，因此該國其他地區的訊號較弱。但我認為，如果你退一步，從某個角度來觀察它，並將家庭待機業務或其產品作為一個整體部分來看待，你會發現它持續增長的方式令人難以置信。在經歷了去年秋天這樣的重大事件之後，它仍然保持較高的基線水平，並從那裡開始增長。現在，在我們看到更多停電事件發生的另一個拐點之前，這裡的增長可能會在一段時間內放緩，但這是我們業務中不可思議的一部分，因為我們有能力在停電、引人注目的停電事件的背景下發展業務，然後保持這種增長並從那裡繼續前進。

So really pleased with kind of how that business has continued to pace.

我對業務持續發展感到非常高興。

Brian Drab of William Blair.

威廉布萊爾的布萊恩德拉布。

Hi, thanks for taking my question. Can you just -- can you just talk about pricing and so we had the 7% to 8% increase, I guess, in March and you said that it had some positive impact on gross margin. But how was that received overall in the market, any effect on demand? And how are you adjusting your plan for pricing on the new product line, given how tariffs have evolved?

你好，謝謝你回答我的問題。您能否談談定價？我猜 3 月份我們的價格上漲了 7% 到 8%，您說這對毛利率產生了一些積極影響。但市場整體反應如何？對需求有何影響？鑑於關稅的變化，您如何調整新產品線的定價計畫？

Yes. Thanks for the question, Brian. So pricing, obviously, dynamic environment we're in, we're all kind of glued to the 24-hour news cycle here on where these trade agreements are coming out. It sounds like the administration is making progress here. It's slow going.

是的。謝謝你的提問，布萊恩。因此，定價顯然是我們處在動態環境中，我們都在 24 小時關注這些貿易協定的新聞發布。聽起來政府正在取得進展。進展很慢。

Obviously, these are major deals, and it takes time to get these deals put together. But I think in the end, we put price into the market in response to what we understood the tariff environment to be. Those were effective. I think at the beginning of April, that was roughly the 7% to 8%, Brian, that you referenced there, that's -- and I'm talking specifically now about the home standby impact there. Did not see much material impact on demand.

顯然，這些都是重大交易，需要時間來達成這些交易。但我認為，最終我們會根據我們所了解的關稅環境來調整市場價格。這些都是有效的。布萊恩，我認為在四月初，這個數字大約是 7% 到 8%，正如你提到的那樣——我現在特別談論的是家庭待機影響。沒有看到對需求產生太大的實質影響。

We did just -- to remind you, we had -- our updated guidance at the time did contemplate some demand destruction on higher price for the remainder of the year. So there is some demand destruction that we built in -- and I think we've largely based on our results, I think it's kind of played out the way that we saw it playing out. The second part of your question, kind of where are we going from here. So we have a new product line coming out in the second half of the year. It's our next-generation home standby product line, which is -- it's phenomenal.

我們剛剛提醒您，我們當時更新的指導方針確實考慮到了今年剩餘時間內價格上漲將導致一些需求遭到破壞。因此，我們建立了一些需求破壞 - 我認為我們很大程度上是基於我們的結果，我認為它就像我們看到的那樣發揮作用。你的問題的第二部分是，我們接下來要去哪裡。因此我們將在今年下半年推出新的產品線。這是我們的下一代家庭備用產品線，它非常出色。

Actually, the product itself is just so far advanced from even the existing platform and so far ahead of where the market is at today. We're super excited about that. There is a bit more cost in that product with some of the feature sets that we've added, which is which is good, but that will require some additional pricing adjustments. And of course, we've got some new -- we've got additional knowledge on the tariff -- the trade deals that have been inked so far and where we're sitting. So there's probably as we release product into the market, we just announced the availability of our new 14-kilowatt and 18-kilowatt units.

實際上，該產品本身比現有平台先進得多，並且遠遠領先於當今市場。我們對此感到非常興奮。由於我們添加了某些功能，該產品的成本會稍微高一些，這是好事，但需要一些額外的價格調整。當然，我們獲得了一些新的資訊——我們對關稅有了更多的了解——了解了迄今為止簽署的貿易協議以及我們目前的狀況。因此，當我們將產品推向市場時，我們剛剛宣布推出新的 14 千瓦和 18 千瓦設備。

That's the first part of the new product line to be released. Those just went on order here this week. As a matter of fact, early this week. The order book opened on those, and we'll begin shipping those next week. And those contain a price increase somewhere in the -- depending on the SKU in the mix, 5% to 7%, call it, of additional price that will go in related to that kind of, again, mostly because of the additional feature sets that we're including with the products, but there's a little bit of kind of rebalancing with some of the tariff information that's now known that wasn't known back when we did the last round of pricing in April.

這是即將發布的新產品系列的第一部分。這些是本週剛開始訂購的。事實上，本週早些時候。這些產品的訂單已開始，我們將於下週開始出貨。這些產品的價格都會有所上漲 - 取決於產品組合中的 SKU，上漲幅度在 5% 到 7% 之間，這主要是因為我們在產品中包含了額外的功能集，但是現在已知的一些關稅信息在我們 4 月份進行上一輪定價時並不知道，這需要進行一些重新平衡。

We still have a good chunk of the product line to be released here in the second half of the year, our larger nodes. So everything from the 20-kilowatt nodes, all the way to the 28-kilowatt nodes, which represent an important part of that product offering and so we haven't released pricing on those nodes yet. So we'll continue to watch the tariff environment. We may have to go back and touch pricing again on the 14s and '18 as something changes, but probably not material at this point. It's probably small.

我們仍有大量產品線將於今年下半年發布，包括更大的節點。因此，從 20 千瓦節點一直到 28 千瓦節點的所有節點都是該產品的重要組成部分，因此我們尚未公佈這些節點的定價。因此我們將繼續關注關稅環境。由於情況發生變化，我們可能不得不回過頭來再次討論 14 和 18 的定價，但目前可能還不是很重要。可能很小。

So we feel pretty good about where we're sitting with respect to pricing. And again, the demand destruction, if you want to call it that, that may have occurred. We think that played out largely in line with our guidance.

因此，我們對目前的定價狀況感到非常滿意。再一次，如果你想這麼稱呼的話，需求破壞可能已經發生了。我們認為這基本上符合我們的指導。

Mark Strouse of JPMorgan

摩根大通的馬克·斯特勞斯

A couple of questions. Going back to the data center opportunity. Can you just kind of talk about the backlog that you have so far in the initial conversations that you're having, are those with kind of larger hyperscaler type data centers? Are they more traditional data centers? Any color there you can provide?

有幾個問題。回到資料中心的機會。您能否談談在初步對話中迄今為止的積壓情況，這些積壓情況是否與大型超大規模資料中心有關？它們是更傳統的資料中心嗎？您能提供任何顏色嗎？

And then going back, Aaron, to your comments about potentially expanding capacity, can you just talk about kind of looking at your footprint, looking at your supply chain, other factors that go into that. How I don't want to use the word easily, but how quickly can that be done? And can you talk about the CapEx requirements if you're going to double capacity, triple capacity, whatever it ends up being, how we should be thinking about that?

然後回到 Aaron，回到你關於潛在擴大產能的評論，你能否談談你的足跡、你的供應鏈以及其他相關因素。我多麼不想輕易使用這個詞，但這能多快完成呢？如果您要將產能增加一倍、三倍，或者無論最終結果如何，您能否談談資本支出要求，我們該如何考慮？

Yes. Thanks, Mark. So just on the pipeline, our opportunities include both the, I would call it, traditional data center owner operators as well as hyperscalers. But the -- where we're getting traction is with the hyperscalers because they are -- their power needs are greater. And frankly, that's where the biggest part of the deficit in the market seems to exist is around those, but it's a market-wide deficit in terms of supply versus demand.

是的。謝謝，馬克。因此，就通路而言，我們的機會包括我所說的傳統資料中心所有者運營商以及超大規模企業。但是，我們之所以能夠獲得關注，是因為超大規模企業對電力的需求更大。坦白說，市場最大的缺口似乎就在於此，但從供需角度來看，這是一個整個市場的缺口。

So we're seeing those opportunities manifest across the board. But we are having, I would say, some of our more interesting conversations are with the hyperscale side of the business. And we're not just talking about 2026 planning with these customers. We're talking about '27 and beyond at this stage because they're planning out -- obviously, they're trying to lock up supply further out. And they're out '27, '28, some cases, 2029, the conversations are out.

因此，我們看到這些機會正在全面顯現。但我想說，我們正在進行的一些更有趣的對話是有關業務的超大規模方面。我們與這些客戶討論的不僅是 2026 年的規劃。我們現階段談論的是 27 年及以後，因為他們正在規劃——顯然，他們正試圖進一步鎖定供應。他們在 2027 年、2028 年，甚至在某些情況下在 2029 年，進行了討論。

So then the second part of your question on footprint. So we have 9 facilities around the world that are capable of producing commercial and industrial products. And so we have 3 here in the US We have 1 in Mexico, 1 in Brazil, 1 in India, 1 in China. We have a facility in Italy and a facility in Spain.

那麼你的問題的第二部分是關於足跡的。因此，我們在全球擁有 9 個能夠生產商業和工業產品的工廠。所以我們在美國有 3 個，在墨西哥有 1 個，在巴西有 1 個，在印度有 1 個，在中國有 1 個。我們在義大利和西班牙各有一個工廠。

I think that's fine, if I did my math right. And so those facilities are capable of producing C&I products. Not all of them are capable of producing the large megawatt products. But what I would say is by expanding capacity in the midrange of our products, we're able to create additional capacity opportunities for large megawatt. I'll give you an example.

如果我的計算正確的話，我想那就沒問題。因此這些設施能夠生產 C&I 產品。並非所有企業都有能力生產大兆瓦產品。但我想說的是，透過擴大我們中端產品的容量，我們能夠為大兆瓦創造額外的容量機會。我給你舉個例子。

Here in North America or here in the US, we just opened a new plant here in Wisconsin. Our biggest plant in the US, 345,000 square feet in Beaverton, Wisconsin. We just commissioned that plant back on April 1, cut the ribbon on it locally here just this past last week. And so that plant is operational. What that plant allows us to do is focused on our mid-range gen sets up to basically up to 1 megawatt.

在北美或美國，我們剛在威斯康辛州開設了一家新工廠。我們在美國最大的工廠，位於威斯康辛州比佛頓，佔地 345,000 平方英尺。我們剛在 4 月 1 日啟動工廠的建設，並在上週在當地舉行了剪綵儀式。現在該工廠已投入運作。該工廠使我們能夠專注於生產功率高達 1 兆瓦的中檔發電機組。

And so that's going to be more of our traditional market, end markets like telecom and some of our traditional backup markets. But what it allows us to do is take a product that we are currently manufacturing those higher output products that we're currently manufacturing in one of our other facilities nearby Oshkosh, Wisconsin and free that facility up to be focused not quite 100%, but close to the opportunities that exist with these large megawatt units. And so by the very nature of that, we've added a lot of capacity in the system by bringing this new plant on even though the new plant wasn't maybe aimed directly at the large megawatt product. That plant that we just brought online is about a $65 million to $70 million investment all in. So as we think about -- and it took us about 15 months to bring the plant, 12 to 15 months depending on -- it's pretty -- actually closer to 12 months than 15 to bring it up to speed and to get it constructed and get it going.

因此，這將更成為我們的傳統市場、電信等終端市場以及一些傳統備份市場。但它使我們能夠將目前在威斯康辛州奧什科甚附近的其他工廠生產的那些更高產量的產品轉移到我們目前在威斯康辛州奧什科甚附近的其他工廠生產的那些產品上，並使該工廠能夠集中精力，雖然不是 100%，但接近這些大型兆瓦裝置所存在的機會。因此，就其本質而言，透過引入這個新工廠，我們為系統增加了大量容量，儘管新工廠可能不會直接針對大兆瓦產品。我們剛投入營運的工廠總投資約為 6,500 萬至 7,000 萬美元。因此，當我們考慮 — — 我們花了大約 15 個月的時間來建造這座工廠，根據情況需要 12 到 15 個月 — — 這相當 — — 實際上更接近 12 個月而不是 15 個月來使其達到速度並建造並運行。

So as we think about the future, and again, 2026, we're fine. We have plenty of capacity. We're well over the $150 million backlog we've got, and we're going to get orders of magnitude over that in terms of what our raw capacity is globally for these large systems. But when we think about the opportunity that exists for '27, '28 and beyond, I want to get ahead of this, and I want to get ahead of it now. And so we're going to have to take and make some big bold bets on additional capacity.

所以當我們思考未來，再想想 2026 年，我們會很好。我們有足夠的產能。我們的積壓訂單金額已遠遠超過 1.5 億美元，而且就我們在全球範圍內對這些大型系統的原始產能而言，我們的訂單量還將比這個數字高出幾個數量級。但當我們考慮到 27 年、28 年及以後存在的機會時，我希望能夠領先一步，我希望現在就領先一步。因此，我們必須對額外產能進行大膽的押注。

And that could come through organic efforts. We could build some factories, we could buy some buildings. We can do some things there that are, frankly, in our wheelhouse in terms of -- again, I referred to this in my prepared remarks, but our core corporate agility, one of them is -- our core corporate value is agility. We just moved fast at the company. We know how to do that.

這可以透過有機努力實現。我們可以蓋一些工廠，可以買一些建築物。坦白說，我們可以做一些我們所能做的事情——我再次在準備好的發言中提到了這一點，但我們的核心企業敏捷性，其中之一就是——我們的核心企業價值是敏捷性。我們公司的發展非常迅速。我們知道如何做到這一點。

We're comfortable with that. It's a legacy of serving kind of -- honestly, it comes from our residential side of our business. It's a legacy of being able to react to exogenous events that happen. We think that our supply chain, we've got great partnerships built in the supply chain for these large megawatt units, and they are prepared -- they've got a lot of capacity already. They're prepared to add more.

我們對此感到滿意。這是一種服務的傳統——老實說，它來自於我們住宅業務方面。這是對發生的外部事件做出反應的能力的遺產。我們認為，我們的供應鏈，我們在這些大型兆瓦機組的供應鏈中建立了良好的合作夥伴關係，他們已經做好了準備——他們已經擁有了很多產能。他們準備增加更多。

What we need to do is continue to look at all elements of the value chain there end-to-end to make sure that there are not other constraints that exist. And if there are, how do we solve for them. So this is going to be an all-out effort by the company to figure out how we grow this segment of our business very, very quickly in the years ahead. And it's going to come -- we're going to need to invest. The good news is we've got a really great balance sheet.

我們需要做的是繼續端到端地審視價值鏈的所有元素，以確保不存在其他限制。如果有，我們該如何解決？因此，公司將竭盡全力尋找在未來幾年內如何快速發展這一業務領域的方法。而它將會到來——我們需要投資。好消息是我們的資產負債表非常好。

We generate a lot of cash flow. We generate $400 million -- $400 million this year.

我們產生了大量現金流。我們今年的營收是 4 億美元——4 億美元。

We've got a head of steam.

我們已擁有強大的動力。

And we got ahead of steam. Yes, in terms of our momentum going forward here. So with our backlog. So we feel like we're well positioned to maybe you want to call it a rotation of investment. Somewhat out of some of the energy technology things we've been focused on and into the C&I opportunity, which we just want to -- we just think we can win there with our approach. So super excited about that.

我們已領先一步。是的，就我們前進的勢頭而言。我們的積壓工作也是如此。因此，我們覺得自己已經做好了準備，也許你可以稱之為投資輪調。我們一直專注於一些能源技術，現在我們轉向了 C&I 機會，我們只是想——我們只是認為我們可以透過我們的方法在那裡取得成功。我對此感到非常興奮。

Keith Housum of Northcoast Research

Northcoast Research 的 Keith Housum

Good morning guys, and thanks for the opportunity here. Hoping you guys could perhaps just dimensionalize a little bit the current industry capacity for these data centers. You mentioned a deficit of about 5,000 devices. How much can the market do today? And then perhaps what is your capacity? Is it $300 million, $400 million, as you guys currently have built?

大家早安，感謝有這樣的機會。希望你們能夠稍微量化一下這些資料中心目前的產業容量。您提到了大約 5,000 台設備的短缺。市場今天能做多少？那你的能力是什麼？你們目前建造的這個工程是花費 3 億美元還是 4 億美元？

Yes. Thanks, Keith. So the overall market size, again, there's a lot of moving pieces there, but it's significantly above the 5,000 deficit, obviously, but it continues to evolve. And a lot of that is going to be -- it's going to be defined by how quickly the data centers can come online.

是的。謝謝，基斯。因此，整體市場規模再次顯示出許多變動，但顯然遠高於 5,000 個缺口，而且還在繼續發展。其中很大一部分將取決於資料中心上線的速度。

One of the challenges that still has to be solved by the data centers is the ability to connect to the grid, right? So what we're seeing, and I think what you -- for those of you who track some of the companies in the marketplace that provide different solutions for what we refer to as [Bridge] power, right? Maybe unique solutions, individual solutions that can create a somewhat independent, almost microgrid, if you will, for a data center site so that they can operate independent of the grid and they can stand up that data center and bring it online more quickly. Those solutions are also -- there's capacity constraints within those solutions as well. So a lot of the overall size of the market is being dictated by how quickly can these data centers be put into service, either by connecting to the grid or through their self-sufficiency with some kind of bridge power solution until they can connect to the grid.

資料中心仍需解決的挑戰之一是連接電網的能力，對嗎？所以我們看到，我想你們——對於那些追蹤市場上一些公司的人來說，這些公司為我們所說的[橋樑]力量提供了不同的解決方案，對嗎？也許獨特的解決方案、單獨的解決方案可以為資料中心站點創建一個有點獨立的、幾乎是微電網的解決方案，以便它們可以獨立於電網運行，並且可以建立該資料中心並使其更快地上線。這些解決方案也存在容量限制。因此，市場的整體規模很大程度上取決於這些資料中心投入使用的速度，要么透過連接到電網，要么透過某種橋接電源解決方案實現自給自足，直到它們能夠連接到電網。

So it's a moving number. It's a moving target. Again, the 5,000 deficit that we referenced is kind of based on what the individual market participants have told us that they believe and not market participants in terms of gen set participants with the customers for data centers, what they believe it to be a deficit in the market. So they're not telling us how big the whole thing is. They're just saying they believe there's -- there are thousands and thousands of units short here even for 2026.

所以這是一個移動的數字。這是一個移動的目標。再一次，我們提到的 5,000 個缺口是基於個別市場參與者告訴我們他們所相信的，而不是發電機組參與者和資料中心客戶的市場參與者所相信的，他們認為這是市場缺口。所以他們沒有告訴我們整件事情有多大。他們只是說，他們認為即使到 2026 年，這裡仍缺少成千上萬個單位。

Our own capacity, just kind of looking at what we think we can do in terms of capacity for next year, I think it's easily north of $500 million in terms of what we have as capacity today. Based on the 9 facilities we have, based on bringing Beaver Dam online here this year and also some expansion that we're doing, investing in some areas in some of our other plants to allow them to do even more, to expand their capacity of large megawatt product, in particular, either through additional test capacity, which is generally the constraint or through some of the other production capacity. What we need to do is size that with our supply chain as well. We think right now, our supply chain could keep up with that. But this is where I think real quick -- very quickly, you think about $500 million.

我們自己的產能，只是看看我們認為明年我們可以在產能方面做些什麼，我認為就我們目前的產能而言，這個數字很容易超過 5 億美元。基於我們現有的 9 個設施，基於今年 Beaver Dam 的上線以及我們正在進行的一些擴建，投資於我們其他一些工廠的某些領域，使它們能夠做更多的事情，擴大其大兆瓦產品的產能，特別是通過額外的測試能力（這通常是限制因素）或通過一些其他生產能力。我們需要做的是調整我們的供應鏈的規模。我們認為現在我們的供應鏈可以跟上這一點。但我很快就想到了這一點——很快，你就想到了 5 億美元。

I mean that's 1/3 of our entire C&I business today. So I mean, it's -- again, I keep using the term needle moving because that is truly a needle-moving opportunity. But the good news is we've got good capacity in place. We've got, as York mentioned, momentum with our backlog and we're willing to commit to additional capacity as the market grows and as our participation grows alongside of it.

我的意思是，這佔了我們今天整個 C&I 業務的 1/3。所以我的意思是——我再次繼續使用“針移動”這個詞，因為這確實是一個針移動的機會。但好消息是我們已經擁有了良好的能力。正如約克所提到的，我們的積壓訂單量成長勢頭強勁，隨著市場的成長和我們參與度的提高，我們願意投入更多的產能。

Dimple Gosai of Bank of America.

美國銀行的 Dimple Gosai。

Thank you.I appreciate the time today. You raised EBITDA margins to 18% to 19% from 17% to 19% previously. My question is what's driving the confidence in margin expansion, right? How much of this is due to structural improvements, say, in input costs or temporary tailwinds from mix pricing as opposed to uplifts from tariffs, right? And how sustainable are these margins into 2026?

謝謝。我很感激今天能抽出時間。你們將 EBITDA 利潤率從之前的 17% 到 19% 提高到了 18% 到 19%。我的問題是，是什麼推動了利潤率擴張的信心？其中有多少是由於結構性改善，例如投入成本的改善，或是混合定價帶來的暫時順風，而不是關稅的上漲，對嗎？這些利潤率到 2026 年還能維持多久？

Yes. No, I think we've been -- our gross margin performance has been quite strong, I would say, for the last 4 quarters. So we've demonstrated that we can execute on strong gross margin. So that alone gives us confidence that, that can continue on. Now from a tariff standpoint, the market has absorbed the pricing.

是的。不，我認為我們——我想說，過去 4 個季度我們的毛利率表現一直相當強勁。因此，我們已經證明我們可以實現強勁的毛利率。因此，僅憑這一點，我們就有信心，這種情況可以繼續下去。現在從關稅的角度來看，市場已經吸收了定價。

And you can see from our Q2 performance that we were able to withstand that. We believe in the second half. We'll continue that. We've got confidence that the impact of tariffs will get offset by price, and that will allow us to hold those strong margins. And I think the increase from our prior outlook is just a function of holding those margin dollar levels on slightly lower sales and slightly lower pricing.

從我們第二季的表現可以看出，我們能夠承受這一點。我們相信下半場。我們會繼續這樣做。我們有信心，關稅的影響將被價格所抵消，這將使我們能夠保持強勁的利潤率。我認為，相較於我們先前的預期，這一成長僅僅是由於在銷售和定價略低的情況下維持利潤水準所致。

So that alone will drive your margins up. But what we've seen today is we believe we can offset those tariff impacts.

因此僅此一點就會提高你的利潤率。但我們今天看到的情況是，我們相信我們可以抵消這些關稅的影響。

I would say -- I would add to that, Dimple, that when you think about longer-term margins, again, as we continue to focus on reducing the drag from some of the energy tech products that we talked about earlier. And then if we -- as that C&I business begins to rapidly grow the leverage that we're going to get from that growth is going to also be, I think, a positive overall for our margins. So the combination of those 2 factors as well gives me confidence longer term that our margins have opportunity to continue to expand. I mean we had laid that out also at our last IR event. We were targeting higher margins even than where we're operating today.

我想說——我想補充一點，迪普爾，當你考慮長期利潤時，我們將繼續專注於減少我們之前談到的一些能源技術產品帶來的拖累。然後，如果我們——隨著 C&I 業務開始快速成長，我們從這種成長中獲得的槓桿作用也將對我們的利潤率產生積極影響。因此，這兩個因素的結合也讓我有信心，從長遠來看，我們的利潤率有機會繼續擴大。我的意思是我們在上次 IR 活動中也已經闡述了這一點。我們的目標是獲得比現在更高的利潤率。

We believe that, that is still very achievable. And that's even kind of before we get to some of the potential opportunities within the data center market that we've been talking about this morning.

我們相信，這仍然是可以實現的。這甚至是在我們討論今天早上所討論的資料中心市場中的一些潛在機會之前。

Definitely on the EBITDA line -- on the EBITDA the operating leverage on the EBITDA line will be large.

肯定在 EBITDA 線上 - 在 EBITDA 上，EBITDA 線上的經營槓桿會很大。

Sean Milligan of Janney.

詹妮 (Janney) 的肖恩·米利根 (Sean Milligan)。

Thank you for taking the question guys. In terms of the data center piece, you just kind of hit on it, but I was trying to understand how we should think about margins for that book of business. Are they -- I guess, both from a gross and EBITDA side within the C&I piece? Like are they going to drag that margin profile higher over the next couple of years also?

謝謝你們回答這個問題。就資料中心部分而言，你只是稍微提到了這一點，但我試圖了解我們應該如何考慮該業務的利潤率。我想，它們是從 C&I 部分的總額和 EBITDA 兩方面來看的嗎？例如，他們是否也會在未來幾年內提高利潤率？

I think at the gross margin line, if you just looked at those projects on their own, they don't look tremendously different than our C&I product margins. There may be a little bit softer basis, but actually, they're quite a bit stronger than our initial business case going into this market presented. We thought that those percentages would be more challenging, and they would be potentially dilutive at the gross margin line. I don't necessarily see it happening that way with C&I products now given where -- because of the structural deficit in the market, pricing of those products to the market has gone up from our initial business case and is putting us in a place with gross margins on those products that look a lot more like our traditional C&I products. And as a result, and even if we were to do the business case that we -- if we were talking about the business case we originally had, we were going to see accretion on the EBITDA margin line because of that leverage.

我認為，從毛利率來看，如果你只單獨看這些項目，它們與我們的 C&I 產品利潤率並沒有太大差別。基礎可能稍微軟一些，但實際上，它們比我們進入這個市場時最初提出的商業案例要強大得多。我們認為這些百分比會更具挑戰性，並且可能會稀釋毛利率。我不認為這種情況現在會發生在 C&I 產品上，因為由於市場的結構性缺口，這些產品的市場定價已經從我們最初的商業案例中上升，並且使我們在這些產品的毛利率看起來更像我們的傳統 C&I 產品。因此，即使我們執行我們最初的商業案例，我們也會看到 EBITDA 利潤線因槓桿作用而成長。

We're going to see -- it's going to work out even better now because the gross margins also will be stronger than we had initially planned for and you'll get the leverage on the operating leverage at the EBITDA margin line. So net-net, Sean, I think it's -- this is again where kind of my previous answer to Dimple's question, why I've got confidence that our EBITDA margins can continue to expand in the future is in particular, on the back of what we're looking at doing here in data centers.

我們將會看到——現在情況會變得更好，因為毛利率也將比我們最初計劃的更高，而且您將獲得 EBITDA 利潤線上的經營槓桿。所以，肖恩，我認為——這又是我之前對 Dimple 的問題的回答，為什麼我有信心我們的 EBITDA 利潤率在未來能夠繼續擴大，特別是基於我們在數據中心所做的事情。

Even on a consolidated basis.

即使是按合併計算。

Even on a consolidated --

即使在合併--

Maybe dilutive about the gross margin line on a consolidated basis, but accretive to --

可能會稀釋合併基礎上的毛利率，但會增加--

Some accretive on a consolidated basis, EBITDA margin for sure.

在合併基礎上肯定會有一些增值，EBITDA 利潤率也肯定會增加。

Joseph Osha of Guggenheim Partners.

古根漢合夥公司的約瑟夫‧奧沙。

Hi, thanks. I'm wondering if you could talk a little bit about your diesel sourcing strategy. I'm wondering whether for starters, that supply chain is showing some signs of stress as well, given how busy data centers are and also how you're thinking about where you might procure in particular what your opportunities are outside of China.

你好，謝謝。我想知道您是否可以談談您的柴油採購策略。我想知道，首先，考慮到資料中心的繁忙程度，以及您如何考慮在哪裡採購，特別是在中國以外的採購機會，供應鏈是否也顯示出一些壓力的跡象。

Thank you.

謝謝。

Yes. Thanks, Joe. It's a great question because, obviously, at the heart of every one of those machines is what we refer to as a large board diesel engine that produces the kind of output that is required in each of these machines. And these are engines that -- they've been around a long time, but they've been traditional and they've been used in power generation in the traditional market sense. But typically, you see them in rail.

是的。謝謝，喬。這個問題問得很好，因為顯然，每台機器的核心都是我們所說的大型柴油發動機，它可以產生每台機器所需的輸出功率。這些引擎已經存在很長時間了，但它們是傳統的，並且在傳統市場中用於發電。但通常情況下，你會在鐵路上看到它們。

You see them in mining. You see them in marine in those larger power applications. When you look across the planet, there are a handful of manufacturers of these large diesel engines. And a couple of them are very well known. Caterpillar, Cummins, and they also have very well-known power generation divisions or groups that are leading the charge forward on kind of serving the data center markets but that's where the constraints lie.

您可以在採礦中看到它們。您可以在船舶的較大功率應用中看到它們。放眼全球，生產這種大型柴油引擎的製造商屈指可數。其中有幾個是非常有名的。卡特彼勒、康明斯，他們也擁有非常知名的發電部門或集團，在服務資料中心市場方面處於領先地位，但這也是限制因素所在。

And for them, they both -- both [CAT] and Cummins have announced expansion plans for capacity in those diesel engine -- in the diesel engine production capacity that will come online in the next several years. And that's somewhat unique for them because normally, those markets, the primary markets of rail, marine and mining can be cyclical, right? And in the past, I think the reticence to add capacity in those large bore diesel engines for manufacturing capacity, it's expensive. And so it's a capital intensive a bit expensive to add capacity. So typically, they've kind of, I think, held the line on doing that and just waited for markets to roll over.

對他們來說，CAT 和康明斯都已宣布了柴油引擎產能擴張計劃，這些計劃將在未來幾年內上線柴油引擎生產能力。這對他們來說有點獨特，因為通常情況下，這些市場，鐵路、海運和採礦的主要市場是週期性的，對吧？過去，我認為不願意增加大缸徑柴油引擎的產能，因為製造成本太高。因此，增加產能需要大量資金，成本也比較高。所以通常情況下，我認為他們會堅持這樣做，只是等待市場轉變。

in terms of cycles. But this time, I think they all view it differently. I think -- which is actually a very bullish sign. I think overall that there's a belief that this part of the market is going to run for a lot longer and is going to be relevant in a big way going forward and is worthy of making that next level of capacity investment. That said, our supply chain, Generac, we've worked very hard over the last few years to put a deal together with a supplier there that is not new to the market, but maybe new to the US

就週期而言。但這一次，我想他們的看法都不同了。我認為——這實際上是一個非常樂觀的信號。我認為總體而言，人們相信這個市場將會持續更長時間，並且在未來將具有重大意義，值得進行下一階段的產能投資。話雖如此，我們的供應鏈 Generac，我們在過去幾年裡一直非常努力地與那裡的一家供應商達成協議，這家供應商對市場來說並不陌生，但對美國來說可能是新的

market. And so we've been working with that partner to get those products qualified for US certification. They were qualified last year for use in Europe, and that's why our European team is maybe a quarter or 2 ahead of where we're at here in the US, and the products are now qualified for duty here in the US market.

市場。因此，我們一直與該合作夥伴合作，以使這些產品獲得美國認證資格。它們去年就已獲得在歐洲使用的資格，因此我們的歐洲團隊可能比美國團隊領先四分之一或兩倍，而這些產品現在也已獲得在美國市場銷售的資格。

It's a world-class manufacturer, and they have a tremendous amount of capacity and they have a very large appetite for additional investment. So we feel that we're paired there with a very competent supplier and one that is going to give us a lot of room to run in terms of -- with this initial foray into the market, one of the major reasons why we've been successful is we've been able to quote considerably shorter lead times and where the market's at, maybe half the lead time of the market today and that's great. But that's not what you build the business on. We've got to build the business on a reputation that's stated by our performance as well. Performance to the equipment itself, but also the uptime of the equipment and our ability to serve and support those customers in a way that we think we know how, given our long history in serving some areas like telecommunications as an example, on a direct basis.

它是一家世界級的製造商，擁有巨大的產能，並且對額外投資有著極大的興趣。因此，我們覺得我們與一家非常有能力的供應商合作，這家供應商將給予我們很大的發展空間——在首次進入市場時，我們成功的主要原因之一是我們能夠報出相當短的交貨時間，而市場的情況可能是當今市場交貨時間的一半，這很好。但這並不是你開展業務的基礎。我們必須以業績所體現的聲譽來打造業務。不僅包括設備本身的性能，還包括設備的正常運行時間，以及我們以我們認為我們知道的方式為這些客戶提供服務和支援的能力，考慮到我們在直接服務電信等某些領域方面有著悠久的歷史。

So we think our supply chain is in really good shape there, Joe. We think we've got the right partner. And again, I think we're poised for some significant growth.

所以，喬，我們認為我們的供應鏈狀況非常好。我們認為我們找到了合適的合作夥伴。我再次認為我們已準備好實現顯著的成長。

I would now like to turn the conference back to Chris for closing remarks.

現在我想請克里斯致閉幕詞。

We want to thank everyone for joining us this morning. We look forward to discussing our third quarter 2025 earnings results with you in late October. Thank you again, and goodbye.

我們要感謝今天上午與我們一起參加的各位。我們期待在 10 月下旬與您討論我們的 2025 年第三季財報結果。再次感謝您，再見。

And this concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。