Gates Industrial Corporation PLC (GTES) 2025 Q3 法說會逐字稿

Ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Gates Industrial Corporation third quarter 2025 earnings conference call.

女士們、先生們，感謝你們的耐心等待。我叫克麗絲塔，今天我將擔任你們的會議接線生。在此，我謹代表蓋茲工業公司歡迎各位參加2025年第三季財報電話會議。

(Operator Instructions)

（操作說明）

I would now like to turn the conference over to Rich Kwas, Vice President of Investor Relations. Rich, the floor is yours.

現在我將把會議交給投資人關係副總裁 Rich Kwas 先生。Rich，請開始吧。

Greetings, and thank you for joining us on our third quarter 2025 earnings call. I'll briefly cover our non-GAAP and forward-looking language before passing the call over to our CEO, Ivo Jurek, who will be followed by Brooks Mallard, our CFO.

各位好，感謝各位參加我們2025年第三季財報電話會議。我將簡要介紹我們的非GAAP和前瞻性條款，然後將電話會議交給我們的執行長Ivo Jurek，之後將由我們的財務長Brooks Mallard接棒。

Before the market opened today, we published our third quarter 2025 results. A copy of the release is available on our website at investors.gates.com. Our call this morning is being webcast and is accompanied by a slide presentation.

在今天開市前，我們公佈了 2025 年第三季業績。新聞稿全文可在投資者關係網站 investors.gates.com 上查閱。我們今天上午的電話會議正在進行網路直播，並配有幻燈片演示。

On this call, we will refer to certain non-GAAP financial measures that we believe are useful in evaluating our performance. Reconciliations of historical non-GAAP financial measures are included in our earnings release and the slide presentation, each of which is available in the Investor Relations section of our website.

在本次電話會議中，我們將提及一些我們認為有助於評估我們績效的非GAAP財務指標。歷史非GAAP財務指標的調整情況已包含在我們的獲利報告和幻燈片簡報中，這兩份文件均可在我們網站的投資者關係部分找到。

Please refer now to Slide 2 of the presentation, which provides a reminder that our remarks will include forward-looking statements within the meaning of Private Securities Litigation Reform Act. These forward-looking statements are subject to risks that could cause actual results to be materially different from those expressed in or implied by such forward-looking statements.

請參考簡報的第 2 張投影片，其中提醒大家，我們的發言將包含《私人證券訴訟改革法案》意義上的前瞻性陳述。這些前瞻性陳述存在風險，可能導致實際結果與此類前瞻性陳述中明示或暗示的結果有重大差異。

These risks include, among others, matters that we've described in our most recent annual report on Form 10-K and in other filings we make with the SEC, including our Q2 quarterly report on Form 10-Q that was filed in July of 2025. We disclaim any obligation to update these forward-looking statements.

這些風險包括我們在最新的 10-K 表格年度報告以及我們向美國證券交易委員會提交的其他文件中描述的事項，包括我們在 2025 年 7 月提交的 10-Q 表格第二季報告。我們不承擔更新這些前瞻性聲明的任何義務。

This quarter, we will be attending the Baird Global Industrial Conference, the UBS Global Industrials and Transportation Conference and the Goldman Sachs Industrials and Materials Conference and look forward to meeting many of you. Before we start, please note all comparisons are against the prior year period unless stated otherwise.

本季度，我們將參加貝爾德全球工業大會、瑞銀全球工業與交通運輸大會以及高盛工業與材料大會，並期待與各位見面。在開始之前，請注意，除非另有說明，所有比較均與去年同期相比。

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

現在我把電話交給伊沃。

Thank you, Rich. Good morning, everyone, and thank you for joining our call today. Let's begin on Slide 3 of the presentation. Gates posted solid third quarter results with positive core revenue growth of almost 2% on the macro industrial demand conditions that remain subdued.

謝謝你，里奇。各位早安，感謝各位今天參加我們的電話會議。讓我們從簡報的第3張投影片開始。儘管宏觀工業需求依然疲軟，但蓋茲公司第三季業績表現穩健，核心營收實現了近 2% 的正成長。

Our replacement channel grew low single digits, supported by mid-single-digit growth in automotive replacement. Our OEM sales were relatively flat. At the end market level, industrial was mixed. Globally, Off-Highway realized positive growth with stabilizing demand in construction, offsetting incremental weakness in North American and European agriculture.

我們的替換管道實現了低個位數成長，這得益於汽車替換管道的中個位數成長。我們的OEM銷售額相對穩定。從終端市場層面來看，工業領域的情況喜憂參半。在全球範圍內，隨著建築業需求趨於穩定，非公路車輛市場實現了正增長，抵消了北美和歐洲農業的疲軟。

Commercial On-Highway declined mid-single digits, impacted by decreasing production rates in North America. Personal Mobility generated another strong quarter of growth, exceeding 20% year-on-year. Our adjusted EBITDA margin increased nicely year-over-year to 22.9%. We generated record adjusted EBITDA dollars and margin for a third quarter. Our net leverage ratio declined to 2.0 times, a 0.4 times reduction compared to last year's third quarter. With that, we are on pace to reduce our net leverage to under 2 times by year-end. We have updated our 2025 guidance, raising our adjusted EPS midpoint to $1.50 per share.

受北美生產率下降的影響，公路商用車銷量出現中等個位數的下滑。個人出行業務又實現了強勁的季度成長，年成長超過 20%。我們調整後的 EBITDA 利潤率年增至 22.9%。第三季度，我們實現了調整後 EBITDA 金額和利潤率的歷史新高。我們的淨槓桿率下降至 2.0 倍，比去年第三季減少了 0.4 倍。這樣一來，我們預計在年底前將淨槓桿率降至 2 倍以下。我們更新了 2025 年業績預期，將調整後每股盈餘中位數上調至 1.50 美元。

We have maintained our full year 2025 adjusted EBITDA midpoint of $780 million, while slightly lowering our core sales growth outlook at the midpoint. Brooks will provide more color and comments about our updated guidance assumptions later in the presentation. Additionally, our Board recently approved a new $300 million share repurchase authorization that will expire at the end of 2026. The new authorization replaces the prior authorization, which had over $100 million remaining.

我們維持了 2025 年全年調整後 EBITDA 中位數 7.8 億美元不變，同時略微下調了核心銷售成長預期中位數。Brooks 將在稍後的演講中提供更多關於我們更新後的指導假設的細節和評論。此外，我們的董事會最近批准了一項新的 3 億美元股票回購授權，該授權將於 2026 年底到期。新的授權取代了先前的授權，先前的授權還有超過 1 億美元的剩餘資金。

On Slide 4, we have heard from a number of you on the call that you would like to see an update on what is occurring in the end markets. So we have laid out an updated view of our underlying end markets and how they have progressed during 2025.

在第 4 張投影片中，我們聽到一些聽眾在電話會議上表示，他們希望了解終端市場的最新情況。因此，我們對 2025 年的基礎終端市場及其發展進行了更新。

Coming into the year, we did not anticipate a broad macro recovery, but we have continued to see uneven end market performance since we set our initial expectations for the year in February. We did, however, enter the year with some expectations that the PMIs could begin to recover in the second half of 2025. That has not emerged to date.

年初時，我們並未預期宏觀經濟會出現全面復甦，但自 2 月我們設定年初預期以來，終端市場的表現一直不平衡。不過，我們年初時曾預期採購經理人指數 (PMI) 可能會在 2025 年下半年開始復甦。迄今為止，這種情況尚未出現。

Industrial Off-Highway demand trends have continued to languish and softened a bit relative to our expectation during the third quarter in certain geographies on reduced build rates and dealer inventory destock. Additionally, in the On-Highway end market, the North American commercial truck production levels deteriorated as the third quarter evolved.

第三季度，由於生產速度下降和經銷商庫存減少，部分地區的非公路工業需求趨勢持續低迷，略低於我們的預期。此外，在公路運輸終端市場，隨著第三季的推進，北美商用卡車產量水準有所下降。

Despite some of these near-term headwinds, we are still outperforming our underlying markets and believe that many of our challenged end markets are troughing or are close to troughing. Our Automotive Replacement and Personal Mobility business continues to grow nicely, while our data center opportunity set continues to expand. As such, we are optimistic that demand in the majority of our end markets will be more stable to improving at some point in 2026.

儘管近期面臨一些不利因素，但我們仍然跑贏了基礎市場，並相信我們許多面臨挑戰的終端市場正在觸底或接近觸底。我們的汽車零件更換和個人出行業務持續穩定成長，同時我們的資料中心業務機會也不斷擴大。因此，我們樂觀地認為，到 2026 年的某個時候，我們大多數終端市場的需求將會更加穩定或改善。

Please turn to Slide 5. Third quarter total sales were $856 million, which translated to core growth of 1.7%. Total revenues grew 3% and benefited from favorable foreign currency. As I have highlighted earlier, the end market performance was mixed in the quarter. Personal Mobility continued to trend nicely higher with its year-over-year growth rate accelerating compared to the second quarter.

請翻到第5張投影片。第三季總銷售額為 8.56 億美元，核心成長率為 1.7%。總收入成長了3%，並受益於有利的匯率。正如我之前強調的那樣，本季終端市場表現喜憂參半。個人出行市場持續保持良好的成長趨勢，其年成長率較第二季有所加快。

Off-Highway grew mid-single digits with growth in construction and agriculture globally. However, ag declined incrementally in both North America and Europe. Diversified Industrial and Energy were both down slightly and On-Highway demand was soft. Automotive grew low single digits with solid growth in auto replacement more than offset a slight decline in auto OEM.

隨著全球建築業和農業的成長，非公路車輛市場實現了中等個位數的成長。然而，北美和歐洲的農業都逐漸衰退。多元化工業和能源板塊均略有下降，公路運輸需求疲軟。汽車產業實現了個位數低成長，其中汽車替換業務的穩健成長足以抵消汽車OEM業務的輕微下滑。

Our key growth verticals, Personal Mobility and Auto Replacement contributed to the performance. Our revenues from data center also continues to increase, although from a small base. And we see the liquid cooling opportunity in early stages of more broad-based adoption.

我們的主要成長垂直領域，個人出行和汽車置換，為業績做出了貢獻。雖然基數較小，但我們的資料中心收入也持續成長。我們看到液冷技術在更廣泛應用的早期階段就展現了巨大的潛力。

Adjusted EBITDA was $196 million with adjusted EBITDA margin coming in at 22.9%, an increase of 90 basis points and represented a record third quarter margin rate for the company. Our adjusted earnings per share was $0.39, an increase of approximately 18% year-over-year. Operating performance contributed $0.02, while a lower tax rate and consolidated mix of other items each contributed $0.02. We believe we are effectively managing the enterprise across all aspects.

經調整後的 EBITDA 為 1.96 億美元，經調整後的 EBITDA 利潤率為 22.9%，成長了 90 個基點，創下公司第三季利潤率紀錄。我們調整後的每股收益為 0.39 美元，年增約 18%。營運績效貢獻了0.02美元，較低的稅率和其他項目的合併組合各貢獻了0.02美元。我們相信，我們在各方面都有效地管理著這項企業。

On Slide 6, we will review our segment highlights. In the Power Transmission segment, we generated revenues of $533 million in the quarter and core growth of 2.3%. Most industrial end markets realized growth. Personal Mobility continues to be a strong contributor with growth exceeding 20% in the quarter.

在第 6 張投影片中，我們將回顧本節的重點內容。在電力傳輸業務領域，我們本季創造了 5.33 億美元的收入，核心成長率為 2.3%。大多數工業終端市場都實現了成長。個人出行業務持續保持強勁成長勢頭，本季成長率超過 20%。

At a channel level, replacement grew with automotive and industrial channel core growth each growing low single digits. OEM sales also grew low single digits with industrial sales growth more than offsetting a decrease in automotive. We continue to invest in our strategic sales initiatives and innovation to help drive potential outgrowth in the future. Our mobility opportunity pipeline is staying robust.

從通路層面來看，替換率隨著汽車和工業通路核心業務的成長而成長，這兩個業務都實現了個位數低成長。OEM銷售額也實現了低個位數成長，其中工業銷售成長超過了汽車銷售的下降幅度。我們將繼續投資於策略性銷售計劃和創新，以幫助推動未來的潛在成長。我們的人員流動機會儲備依然充足。

In the Fluid Power segment, our sales were $322 million, representing core growth of just under 1%. Many of our key end markets in Fluid Power continued to experience various levels of demand pressure, but our teams have held its own.

在流體動力領域，我們的銷售額為 3.22 億美元，核心成長率略低於 1%。我們在流體動力領域的許多主要終端市場繼續面臨不同程度的需求壓力，但我們的團隊卻頂住了壓力。

Commercial On-Highway sales decreased mid-teens as industry inventories are elevated. Off-Highway grew with positive construction trends offsetting a low single-digit decline in ag. The agriculture performance year-over-year was worse, impacted by incremental OEM production cuts to better align our customers' inventory levels heading into the year-end. We believe the underlying ag market is troughing and should be better positioned for recovery sometimes in 2026.

由於產業庫存高企，公路商用車銷售量下降了十幾個百分點。非公路運輸業的成長得益於正面的建築趨勢，抵消了農業運輸業個位數百分比的下滑。受 OEM 逐步削減產量以更好地調整客戶在年底前的庫存水準的影響，農業業績同比惡化。我們認為，農業基礎市場正在觸底反彈，預計到 2026 年某個時候，市場將迎來更好的復甦階段。

Replacement demand was strong, driven by double-digit growth in Automotive Replacement globally with broad-based growth across regions. Industrial OEM sales declined mid-single digits on a core basis, driven by soft demand trends in agriculture and commercial truck. Our data center opportunity pipeline exceeds $150 million and design-in activities remain robust. With respect to profitability, both segments expanded adjusted EBITDA margins at a similar rate.

替換需求強勁，全球汽車替換市場實現了兩位數成長，各地區均呈現全面成長。受農業和商用卡車需求疲軟的影響，工業OEM核心銷售出現中位數個位數百分比的下降。我們的資料中心專案儲備超過 1.5 億美元，設計引入活動依然強勁。在獲利能力方面，兩個業務部門的調整後 EBITDA 利潤率均以相似的速度成長。

I will now pass the call over to Brooks for further comments on our results.

現在我將把電話轉給布魯克斯，請他對我們的結果作進一步評論。

Thank you, Ivo. I'll begin on Slide 7 and review our core sales performance by region. The majority of our geographic regions generated core growth in the quarter, highlighted by EMEA's return to growth. In North America, core sales were about flat.

謝謝你，伊沃。我將從第 7 張投影片開始，按地區回顧我們的核心銷售表現。本季我們大部分地區的業務都實現了核心成長，其中歐洲、中東和非洲地區的業務恢復成長尤為突出。在北美，核心銷售額基本上持平。

The incremental demand weakness experienced in Agriculture and Commercial On-Highway during the quarter was primarily concentrated within the North American region and led to a low double-digit decline in industrial OEM sales. Industrial Replacement sales were also down slightly. Industrial was offset by growth in automotive as Automotive Replacement sales increased high single digits, supported by year-over-year growth contribution from our new channel partner. Automotive OEM sales grew low single digits.

本季農業和公路商用車需求的疲軟主要集中在北美地區，導致工業 OEM 銷售出現兩位數的下滑。工業替換產品的銷售額也略有下降。工業領域的成長被汽車領域的成長所抵消，汽車替換產品的銷售額實現了接近兩位數的成長，這得益於我們新通路合作夥伴的同比成長。汽車OEM銷售額實現了個位數低成長。

In EMEA, core sales grew 2.6%. Industrial end markets were mixed. Construction returned to growth and more than offset weak demand in agriculture. On-Highway grew while energy and diversified industrial saw declines. Personal Mobility was very strong, growing almost 75%. At the channel level, OEM sales grew high single digits, supported by Construction, On-Highway and Mobility, partially offset by lower automotive OEM.

在歐洲、中東和非洲地區，核心銷售額成長了2.6%。工業終端市場表現不一。建築業恢復成長，足以彌補農業需求疲軟的影響。公路運輸業成長，而能源和多元化工業則出現下滑。個人出行需求成長強勁，增幅接近 75%。在通路層面，OEM 銷售額實現了接近兩位數的成長，這主要得益於建築、公路和旅遊領域的成長，但部分被汽車 OEM 銷售額的下降所抵消。

Sales into replacement channels increased slightly. East Asia and India posted approximately 5% core growth. Most industrial end markets grew. Automotive OEM sales decreased slightly, which was more than offset by high teens growth in Automotive Replacement. China core sales expanded 6% year-over-year with growth across all channels and most end markets. South America core sales declined low to mid-single digits.

透過替換管道實現的銷售額略有成長。東亞和印度核心成長率約為5%。大多數工業終端市場都實現了成長。汽車OEM銷售額略有下降，但汽車替換市場實現了兩位數以上的高速成長，足以抵消這一降幅。中國核心銷售額年增 6%，所有通路和大多數終端市場均成長。南美洲核心銷售額出現個位數低至中度下滑。

On Slide 8, we show the key components of our year-over-year change in adjusted earnings per share. Operating performance contributed approximately $0.02 per share, driven by core growth and higher adjusted EBITDA margin. A lower tax rate contributed $0.02 per share. Other items, including lower interest expense, lower share count and other income together generated about $0.02 per share.

在第 8 張投影片中，我們展示了調整後每股盈餘同比變化的關鍵組成部分。營運績效貢獻了每股約 0.02 美元，主要得益於核心業務成長和調整後 EBITDA 利潤率的提高。較低的稅率使每股收益增加了 0.02 美元。其他項目，包括利息支出減少、股份數量減少和其他收入，合計每股收益約為 0.02 美元。

Slide 9 provides a summary of our cash flow performance and balance sheet metrics. Our free cash flow was $73 million and represented 73% conversion to adjusted net income. Our restructuring cash outflows have increased, which impacted our free cash flow conversion.

第 9 張投影片總結了我們的現金流量表現和資產負債表指標。我們的自由現金流為 7,300 萬美元，轉換率為 73%（調整後淨收入）。我們的重組現金流出增加，影響了我們的自由現金流轉換率。

Our net leverage ratio declined to 2.0 times at the end of the third quarter, which was an improvement on a year-over-year and sequential basis. During the quarter, we paid down $100 million of gross debt. We expect our net leverage to be under 2 times at calendar year-end 2025. Our trailing 12-month return on invested capital was 21.6%, an improvement sequentially as improved operating performance helped offset the impact from internal investments in high-return projects.

第三季末，我們的淨槓桿率下降至 2.0 倍，年比和季比均有所改善。本季度，我們償還了1億美元的總債務。我們預計到 2025 年底，我們的淨槓桿率將低於 2 倍。過去 12 個月的投資資本回報率為 21.6%，環比有所提高，因為營運績效的改善有助於抵消高回報項目內部投資的影響。

On Slide 10, we provide our updated 2025 guidance. We have trimmed our core revenue growth midpoint to 1% and narrowed the range from 0.5% to 1.5% to reflect current macro conditions for the balance of the year. In addition, we have maintained our $780 million adjusted EBITDA midpoint and narrowed the range to $770 million to $790 million.

在第 10 張投影片中，我們提供了更新後的 2025 年指引。為了反映今年剩餘時間的宏觀經濟狀況，我們將核心收入成長中點下調至 1%，並將成長區間從 0.5% 到 1.5% 縮小。此外，我們維持了 7.8 億美元的調整後 EBITDA 中位數，並將範圍縮小至 7.7 億美元至 7.9 億美元。

We have raised our adjusted earnings per share guidance to the range of $1.48 per share to $1.52 per share, the upper half of our previous range. The $1.50 per share midpoint reflects a $0.02 per share increase relative to our prior guidance. Our guidance for capital expenditures is unchanged. We have lowered our free cash flow conversion outlook to a range of 80% to 90% from 90% plus as a result of increased restructuring cash outlays as part of our footprint optimization and restructuring initiatives.

我們將調整後的每股盈餘預期上調至每股 1.48 美元至 1.52 美元，這是我們先前預期範圍的上半部。每股1.50美元的中點數值比我們先前的預期提高了0.02美元。我們對資本支出的預期不變。由於作為我們業務佈局優化和重組計劃的一部分，重組現金支出增加，我們將自由現金流轉換率預期從 90% 以上下調至 80% 至 90%。

Turning to Slide 11. We want to provide an update of our ongoing restructuring plans as well as the strategic system conversion that we have been working on and that we expect to be complete by the middle of 2026. Beginning late in Q4 2025 and finishing by the end of Q2 2026, we expect to close multiple factories, complete a labor realignment and go live with an ERP conversion for most of our European footprint.

翻到第11張幻燈片。我們希望向大家介紹我們正在進行的重組計劃以及我們一直在進行的戰略系統轉換的最新進展，我們預計到 2026 年年中將完成這些工作。從 2025 年第四季末開始，到 2026 年第二季末結束，我們預計將關閉多家工廠，完成勞動力調整，並對我們在歐洲的大部分業務進行 ERP 系統轉換。

As we complete these activities, we will be focused on providing continuity and service for our customers and our affected team members. We expect to incur additional costs and other onetime operational impacts from these projects in the first half of 2026.

在完成這些工作的同時，我們將專注於為我們的客戶和受影響的團隊成員提供持續的服務。我們預計這些項目將在 2026 年上半年產生額外的成本和其他一次性營運影響。

From a financial perspective, we anticipate an unfavorable year-over-year impact of 100 to 200 basis points to our adjusted EBITDA margin in the first quarter and a more modest unfavorable effect in the second quarter, ranging from 25 basis points to 75 basis points year-over-year. In the second half of 2026, as we look towards completion of these various projects, we expect operations to normalize and realized favorable impact to our adjusted EBITDA margin from our restructuring activities of 75 to 125 basis points year-over-year.

從財務角度來看，我們預計第一季調整後的 EBITDA 利潤率將年減 100 至 200 個基點，第二季的不利影響將較為溫和，年減 25 至 75 個基點。2026 年下半年，隨著這些不同項目的完成，我們預計營運將恢復正常，重組活動將對我們的調整後 EBITDA 利潤率產生 75 至 125 個基點的有利影響。

Excluding volume considerations, we expect our footprint optimization, restructuring and material cost-out activities to generate 0 to 25 bps overall adjusted EBITDA margin improvement year-over-year for the full year 2026. We anticipate being at a 23.5% adjusted EBITDA run rate in the second half of 2026 in a volume-neutral environment.

不考慮銷售因素，我們預計，到 2026 年全年，我們的佈局優化、重組和材料成本削減活動將使整體調整後 EBITDA 利潤率同比提高 0 至 25 個基點。我們預期在銷售量不變的情況下，2026 年下半年調整後 EBITDA 運作率為 23.5%。

As I said, we have not taken volume impacts into this analysis and plan to update those assumptions as well as provide further insight into our restructuring activities when we initiate our formal 2026 guidance in conjunction with our Q4 earnings call in February.

正如我所說，我們尚未將銷售影響納入此次分析，併計劃在 2 月份的第四季度財報電話會議上正式發布 2026 年業績指引時，更新這些假設，並進一步提供有關我們重組活動的見解。

I will now turn the call back over to Ivo.

現在我將把通話轉回給伊沃。

Thank you, Brooks. Moving to Slide 12. This is our illustrative update on our walk towards the midterm stated adjusted EBITDA margin target of 24.5%. In 2025, we have experienced a highly fluid business environment and continuation of prolonged negative PMI prints, resulting in constrained volume performance. With that as a backdrop, we now anticipate to complete our initial phase of the committed footprint optimization projects by mid-2026 and still expect that those projects will achieve 100 basis points of savings from the footprint optimization program exiting 2026.

謝謝你，布魯克斯。切換到第12張投影片。這是我們為實現中期既定的調整後 EBITDA 利潤率目標 24.5% 所做的簡要更新說明。2025年，我們經歷了高度不穩定的商業環境和持續的PMI負面數據，導致銷售表現受限。在此背景下，我們預計將於 2026 年年中完成已承諾的佔地面積優化項目的第一階段，並仍然期望這些項目在 2026 年底實現佔地面積優化計劃 100 個基點的節省。

Coupled with our ongoing focus on material cost savings and 80/20, we estimate that our adjusted EBITDA margin will be nearing 24% on a run rate basis exiting next year. Most importantly, this does not assume any margin benefit from a potential broad volume recovery in our industrial end markets. While the end market volatility has not been supportive, we are very pleased with our execution and performance to date. We believe the prospects for incremental improvement over the midterm are positive, especially as the end market conditions begin to potentially inflect.

結合我們持續關注的材料成本節約和 80/20 原則，我們預計到明年年底，我們調整後的 EBITDA 利潤率將接近 24%（按運行率計算）。最重要的是，這並未假設工業終端市場銷售量可能出現全面復甦，從而帶來任何利潤成長。儘管終端市場波動不利，但我們對迄今為止的執行和業績感到非常滿意。我們認為，中期內逐步改善的前景是正面的，尤其是在終端市場狀況開始可能出現轉變的情況下。

With that, let me summarize our views on Slide 13. We believe we have executed well, delivering solid results given the lackluster demand environment we have encountered throughout this year. We generated record third quarter adjusted EBITDA margin rate and achieved our highest quarterly core growth rate since Q2 2023.

最後，讓我總結一下我們對第 13 張投影片的看法。鑑於今年以來市場需求疲軟，我們認為我們執行得不錯​​，並取得了穩健的成績。我們實現了第三季調整後 EBITDA 利潤率的歷史新高，並實現了自 2023 年第二季以來最高的季度核心成長率。

For the year, we are on target to deliver adjusted EBITDA margin expansion and earnings growth in a muted demand backdrop. We continue to make progress with our Personal Mobility and data center strategic initiatives and believe we will encounter a better industrial demand landscape in 2026.

今年，在需求疲軟的背景下，我們預計將實現調整後 EBITDA 利潤率擴張和獲利成長的目標。我們在個人行動旅行和資料中心策略性舉措方面持續取得進展，並相信我們將在 2026 年迎來更好的工業需求環境。

We continue to adjust our structural cost base, and we expect our savings to begin to compound during the second half of '26 and anticipate our adjusted EBITDA margin rate to be approaching near 24% exiting next year. With that as a baseline level, we would expect any volume improvement to be additive to our margin performance.

我們將繼續調整結構性成本基礎，預計到 2026 年下半年，我們的節省將開始累積，預計到明年年底，我們調整後的 EBITDA 利潤率將接近 24%。以此為基準水平，我們預期任何銷售成長都將對我們的利潤率表現起到促進作用。

Lastly, we believe we now possess a strong balance sheet that can be utilized to support various potentially value-creating capital deployment options. Our Board recently approved a new $300 million share repurchase authorization.

最後，我們相信我們現在擁有強勁的資產負債表，可以用來支援各種可能創造價值的資本部署方案。我們的董事會最近批准了一項新的3億美元股票回購授權。

Separately, debt reduction continues to be an option. We just repaid $100 million of debt during the third quarter. And of course, at this juncture, our ability to execute bolt-on M&A transactions is increasing as we move towards our midterm financial leverage target.

此外，減少債務仍然是可行的選擇。我們在第三季償還了1億美元的債務。當然，在這個階段，隨著我們朝著中期財務槓桿目標邁進，我們執行補充性併購交易的能力也不斷增強。

Before taking your questions, I want to thank the approximately 14,000 global Gates associates for their diligence and commitment supporting our customer needs.

在回答各位的問題之前，我要感謝蓋茲公司全球約 14,000 名員工的辛勤工作和敬業精神，感謝他們滿足客戶的需求。

With that, I will now turn the call back over to the operator for Q&A.

接下來，我將把電話轉回給接線生進行問答環節。

(Operator Instructions)

（操作說明）

Nigel Coe, Wolfe Research.

Nigel Coe，Wolfe Research。

Oh, thanks. Good morning, everyone. Thanks for the for the first question. I just wanted to maybe clear up some questions around Slide 12. So it's very clear that the 24% for 2027 is -- should be viewed as more of a floor here, right? I mean if we continue to just bump along the bottom here, 24% is where you see margins and then volume gives us some upside. I just want to make sure that, that's the case. And then maybe just kind of dig into some of these kind of costs you're flagging for the first half of the year? And what sort of benefits you see from this ERP implementation?

哦，謝謝。各位早安。感謝你提出的第一個問題。我只是想澄清一下關於第 12 張投影片的一些問題。所以很明顯，2027 年的 24% 應該被視為一個底線，對吧？我的意思是，如果我們繼續在底部徘徊，24% 的利潤率是可以接受的，而成交量會為我們帶來一些上漲空間。我只是想確認一下，情況是否如此。然後，或許可以深入探討您預計今年上半年將出現的這些成本問題？您認為實施ERP系統能帶來哪些好處？

Yeah, thanks, Nigel. Let me take the first part of your question, and then I'll pass it off to Brooks on the ERP side and some of the other attributes of the cost question that you've had. But thinking about Slide 12, right? So that margin walk was created, if you think about it, more to provide you with an opportunity to model the impacts of the transitory costs to be incurred as a part of our restructuring program restart. And that program is intended to significantly improve our cost structure, all else equal, right? So not representative of growth forecast for our top line in '26.

謝謝你，奈傑爾。讓我先回答您問題的第一部分，然後我會把ERP方面的問題以及您提出的其他一些成本問題轉交給Brooks。但想想第 12 張投影片，對吧？所以，仔細想想，創建利潤率調整方案更多的是為了讓您有機會模擬作為我們重組計劃重啟一部分而產生的暫時性成本的影響。該計劃旨在顯著改善我們的成本結構，在其他條件不變的情況下，對嗎？因此，這並不代表我們對 2026 年營收成長的預測。

So to your point, this is kind of a foundational floor. We do expect growth in '26. The margin impact for the full year in our presentation deck, however, excludes any benefit from revenue growth. Frankly, because we are not providing you an updated guidance for '26 yet, as you know, we will do that at the conclusion of our Q4 fiscal year, we'll do that in January, right? So we -- look, we certainly believe that many of our end markets are at trough or close to troughing, as I said in my prepared remarks, and we believe that they will turn positive in '26.

所以，正如你所說，這算是一個基礎層。我們預計2026年將實現成長。然而，我們在簡報中提到的全年利潤率影響不包括收入成長帶來的任何收益。坦白說，因為我們還沒有向您提供 2026 年的最新業績指引，正如您所知，我們將在第四財季結束時，也就是 1 月份提供，對嗎？所以——你看，我們當然相信，正如我在準備好的演講稿中所說，我們的許多終端市場正處於低谷或接近低谷，我們相信它們將在 2026 年轉為正增長。

In addition, we are excited, and I said it on a number of these calls over the last couple of quarters, we are quite excited about the strategic revenue generation initiatives for next year, and we certainly expect them to contribute nicely to our growth trajectory in 2026.

此外，我們感到非常興奮，我在過去幾季的多次電話會議上也提到過，我們對明年的策略性創收計劃感到非常興奮，我們當然期望這些計劃能為我們 2026 年的成長軌跡做出良好的貢獻。

With that, Brooks, if you want to take the second part of the question, please?

布魯克斯，那麼，如果你想回答問題的第二部分，可以嗎？

Please. Yeah, so there's several things that we expect from a onetime cost perspective. Relative to the restructuring and the headcount alignment as we do the restructuring, there'll be -- we expect some additional freight costs, expediting costs, redundant labor costs and productivity costs as we move through some of these relocations, and that's normal course of business.

請。是的，從一次性成本的角度來看，我們預計會有幾件事。隨著我們進行重組和人員調整，預計在進行這些搬遷的過程中，將會產生一些額外的貨運成本、加急成本、冗餘勞動力成本和生產力成本，這是正常的業務流程。

We do expect, to Ivo's point, I want to remind everyone, a lot of the backdrop for the reason we're doing a lot of these footprint optimization activities is to support our future growth. And so yes, we're going to get a cost benefit. But even moreover, we're going to have additional capacity, both from a machinery and equipment perspective, but more importantly, more capacity from a labor perspective to ramp through the cycle.

正如 Ivo 所說，我們確實期望…我想提醒大家，我們進行這些足跡優化活動的很大一部分原因是為了支持我們未來的成長。所以，是的，我們會獲得成本效益。但更重要的是，我們將擁有額外的產能，無論是從機械設備的角度來看，但更重要的是，我們將擁有更多的勞動力來應對生產週期。

From an ERP perspective, we're replacing a fairly antiquated system with a new system that's going to provide us much more capability in terms of warehouse management, in terms of managing the front end of the business to the back end of the business.

從 ERP 的角度來看，我們正在用一個新系統取代一個相當過時的系統，新系統將在倉庫管理方面為我們提供更強大的功能，從業務的前端到後端都能得到更好的管理。

But we really haven't built any of those benefits into our outlook. We've been very neutral on building those benefits in, but we definitely expect to improve our efficiencies and capabilities and again, support the strategic initiatives of the company with the ERP. But it does take -- we do think it will take us the first half of the year to get that all lined out, which is why we wanted to be transparent and provide you an update of the cost and the impact associated with those activities.

但我們實際上並沒有將這些好處納入我們的規劃中。我們一直對將這些優勢納入其中持非常中立的態度，但我們肯定希望提高效率和能力，並再次利用 ERP 系統來支持公司的策略性舉措。但我們認為，要把所有事情都安排妥當，需要花費上半年的時間。因此，我們希望保持透明，並向您提供相關活動的成本和影響的最新資訊。

Oh yeah, we definitely appreciate that. Just wanted to double-click on growth. You mentioned growth about 4x or 5x there. What kind of tailwinds or visibility do you have right now on some of the structural growth vectors like data center, Personal Mobility.

是的，我們非常感謝。只是想再點成長。你提到那裡的成長大約是4倍或5倍。目前，資料中心、個人行動行程等一些結構性成長領域有哪些有利因素或發展前景？

I'm guessing you're going to have some price carryforward for next year. But more importantly, when you talk about the bottoming in some of these Off-Highway, On-Highway markets, how much visibility do you have on production schedules for your OEM partners? And do you have any visibility on maybe kind of a turn in production for those end markets?

我猜你明年會有一些價格結轉。但更重要的是，當您談到這些非公路和公路市場的觸底反彈時，您對您的 OEM 合作夥伴的生產計劃有多少了解？您是否預見這些終端市場的生產可能會出現某種轉變？

Yeah, sure. So look, great question, Nigel. Thank you for asking that. Very, very optimistic, as you probably noticed over the last couple of earnings calls about some of the growth vectors such as Personal Mobility and liquid cooling and data centers. The Personal Mobility, I think on the last call, we suggested that we anticipate kind of over the next three years.

當然可以。你看，奈傑爾，你問得好。謝謝你的提問。非常非常樂觀，您可能在最近幾次財報電話會議上已經注意到，公司對一些成長領域，例如個人行動出行、液冷和資料中心，持樂觀態度。關於個人出行，我認為在上次電話會議上，我們建議我們預測未來三年內的情況。

And again, while that's not going to be every quarter, I want to kind of remind everybody that things are not always linear, right? But if you kind of take next three years, Personal Mobility, we anticipate Personal Mobility to grow kind of 30% year-on-year compound annually between kind of '25 and '28, right? And there will be time that it's going to grow 22% to 25%. There will be time that it's going to grow 35%.

再次強調，雖然這不會每季都發生，但我還是想提醒大家，事情並不總是線性發展的，對吧？但如果你展望未來三年，以個人出行為例，我們預期個人出行在 2025 年至 2028 年間將以每年 30% 的複合成長率成長，對吧？將來某一天，它的成長率會達到 22% 到 25%。總有一天它會成長35%。

But on aggregate, we believe that, that's going to grow about 30% compound annually. And we have that confidence because of the design wins that we've been talking to you about over the last couple of years. The destock post-COVID has occurred. And obviously, we are delivering a real nice acceleration to the growth trajectory, and that will continue into the next couple of -- two to three years.

但總體而言，我們認為，這將以每年約 30% 的複合速度成長。我們之所以有這樣的信心，是因為在過去幾年裡，我們一直在向大家介紹我們贏得的設計項目。新冠疫情後的去庫存化已經發生。顯然，我們正在為成長軌跡帶來非常好的加速，而且這種情況將持續到未來兩到三年。

So we are quite positive about that. We've talked about the accelerated adoption of liquid cooling. And while I'm not ready to give you a forward-looking revenue forecast for '26 today, and I'll do more of that on our next call, we are seeing tremendous amount of activities out there.

所以我們對此相當樂觀。我們已經討論過液冷技術的加速普及。雖然我今天還不能提供大家 2026 年的營收預測，我會在下次電話會議上詳細說明，但我們看到市場上有很多活動。

And there are some real positive attributes because what we are realizing is there's more cooling that's required, not less in the projects that we are involved with. And we are seeing pretty substantial growth across the various customer base in the design-in activity. And that's a really good precursor into what will be occurring over the next 12, 24, 36 months.

而且，這確實有一些正面的方面，因為我們意識到，在我們參與的專案中，所需的冷卻量不僅沒有減少，反而增加了。我們看到，在設計導入活動中，各個客戶群都出現了相當大的成長。這很好地預示了未來 12、24、36 個月將要發生的事情。

So think about it kind of in a similar vein as when we were discussing Personal Mobility. So we believe that over the next one to two quarters, we're going to be giving you some more tangible attributes associated with the dollars and cents about what that's going to represent in '26 and '27. But so far, quite optimistic about what we see there.

所以，你可以把它想像成我們之前討論個人旅行方式時的樣子。因此我們相信，在接下來的一個到兩個季度裡，我們將向您提供一些與金錢相關的更具體的屬性，說明這在 2026 年和 2027 年意味著什麼。但就目前來看，我們對那裡的情況相當樂觀。

Our Automotive Replacement market, while we don't necessarily talk about it as necessarily a growth torque, we have been growing that market quite substantially and quite nicely over the last couple of years, provided a great deal of stability for our revenue generation, and we believe that, that's going to continue as we move into '26, '27 and '28. There's still plenty of opportunity, plenty of firepower left to be able to continue to grow that market in that kind of 2% to 3% range, which is rather nice for kind of more mature type level of applications.

雖然我們不一定把汽車替換市場視為成長動力，但在過去幾年裡，我們一直在大幅且良好地發展這個市場，為我們的收入提供了很大的穩定性，我們相信，隨著我們進入 2026 年、2027 年和 2028 年，這種情況還將繼續。仍然有很多機會，仍然有足夠的實力繼續將市場增長到 2% 到 3% 的水平，這對於比較成熟的應用來說相當不錯。

So put that aside from kind of the incremental over and above, if you would, growth trajectory to kind of your standard base. Then when I take a look at some of our more traditional end markets, look, we certainly believe that the auto OE business, while it does not represent a significant size of our business, that's stabilizing, and we believe that we will start seeing more additive growth rates in North America and ultimately in 2026 in Europe.

所以，先把這些放在一邊，除了標準基數之外的增量成長軌跡。然後，當我審視我們的一些更傳統的終端市場時，我們當然相信汽車OE業務雖然在我們業務中所佔的規模不大，但正在趨於穩定，我們相信我們將開始看到北美地區出現更大的增長率，並最終在2026年在歐洲地區看到這一增長。

So we believe that those markets are stabilizing post Liberation Day announcements as these companies are starting to -- different countries are developing different agreements with our administration, and I think things are starting to stabilize there. I think people are becoming a little more optimistic about that end market.

因此，我們認為，在解放日公告發布後，這些市場正在趨於穩定，因為這些公司開始——不同的國家正在與我們的政府制定不同的協議，我認為情況正在開始穩定下來。我認為人們對終端市場的看法開始變得更加樂觀了。

We see some positive, I would say, formation of green shoots in certainly in commercial construction end market, and we are starting to hear more positive news about what our customers expect there. Ag is still challenged, and I talked about ag actually got incrementally worse for us in Q3, while we have delivered maybe a positive core growth overall in ag, it got a little bit worse than what we've anticipated, but we do believe that, that's troughing. And that while it's not going to go off to the races in '26, it's going to be significantly less bad than it has been over the last eight quarters. And so we are somewhat positive about that.

我們看到商業建築終端市場出現了一些正面的跡象，可以說正在形成復甦的跡象，我們也開始聽到更多關於客戶期望的正面消息。農業仍然面臨挑戰，我之前說過，第三季度我們的農業狀況實際上有所惡化，雖然我們在農業方面可能實現了整體正增長，但情況比我們預期的要糟糕一些，但我們相信，這種情況正在觸底。雖然2026年不會大幅下滑，但情況肯定會比過去八個季度好得多。因此，我們對此持較為樂觀的態度。

And then ultimately, the diversified industrial market, we've talked about it being kind of more kind of bottoming out over the last couple of quarters, and we certainly believe that that's bottomed out and that should start being more accretive in 2026.

最後，我們已經討論過多元化工業市場在過去幾季已經觸底反彈，我們當然相信它已經觸底反彈，並且應該會在 2026 年開始變得更有成長潛力。

So I don't want to give anybody an idea that we have come out and we have given a forecast that we will not anticipate to have an organic growth rate in 2026. We're actually quite optimistic about it, but we just wanted to give you a visibility on modeling of certain structural cost removals that are going to be going in and out over the first half of the year and resetting our cost structure, becoming more competitive and giving ourselves the opportunity to actually support the growth rate, which we are very optimistic about.

所以我不想讓任何人誤以為我們已經公開預測到 2026 年不會實現有機成長率。我們對此其實相當樂觀，但我們只是想讓您了解今年上半年將要進行的某些結構性成本削減的建模情況，這些削減將重塑我們的成本結構，使我們更具競爭力，並使我們有機會真正支持我們非常樂觀的增長速度。

Great. Thanks you.

偉大的。感謝您。

Deane Dray, RBC Capital Markets.

迪恩德雷，加拿大皇家銀行資本市場。

Thank you. Good morning, everyone. I wanted to circle back on Slide 12 again. I know you've given this as a margin walk. But -- and I don't know if you provided this previously, but can you give us some dimensions of the restructuring? Like how many plants, where are they?

謝謝。各位早安。我想再回顧第 12 張投影片。我知道你已經把這當成一次保底散步了。但是——我不知道您之前是否提供過這方面的信息，但您能否給我們介紹一下重組的具體情況？例如有多少株植物，它們在哪裡？

What kind of headcount reduction, the dollar amount being invested and the dollar kind of payback cadence? I know you're providing it as a margin, but it would be helpful if you provide that dimension to it as well. Maybe you're restricted. I know if it's outside the U.S., you've got some works council, but maybe if you could start there, that would be helpful.

具體裁員規模、投資金額和投資回報週期（以美元計）是多少？我知道您將其作為邊距提供，但如果您也能提供該尺寸，那就更好了。或許你受到了限制。我知道如果是在美國以外的地方，會有職工委員會之類的機構，但也許你可以從那裡入手，那會很有幫助。

Yeah, so look, Deane, it's fairly complicated because it's a combination of -- if you remember when we said we were doing the restructuring, it was mostly around North America and EMEA, right? So we'll kind of leave it at that we're closing multiple factories, and there'll be hundreds of affected employees.

是的，迪恩，你看，這相當複雜，因為它是多種因素的綜合作用——如果你還記得我們說過要進行重組，那主要是在北美和歐洲、中東及非洲地區，對吧？所以我們就簡單說一下，我們將關閉多家工廠，這將影響數百名員工。

I would say the payback generally ranges from one to two years, depending on the amount of severance, the amount of move, the amount of investment that we need to make. When we talk about the headwinds, just to kind of size it, we talked about the 100 to 200 bps and 25 to 75 bps that's kind of a $30 million to $35 million onetime expectation for the first half of 2026. And that also includes the system conversion and all the costs associated with that.

我認為回報期一般為一到兩年，取決於遣散費金額、搬遷費用以及我們需要進行的投資金額。當我們談到不利因素時，為了大致估算一下，我們談到了 100 到 200 個基點和 25 到 75 個基點，這相當於 2026 年上半年一次性預期損失 3000 萬美元到 3500 萬美元。這還包括系統轉換以及與之相關的所有費用。

And so from a -- I would say the other part, if you think about our increased capital spend over the past couple of years, that's part of the investment as well, right? And so if you look at what we spent over the past couple of years, you could say maybe $20 million last year, $20 million this year. So that's part of the investment as well.

所以從另一方面來說，如果你想想我們過去幾年增加的資本支出，那也是投資的一部分，對吧？所以，如果你看看我們過去幾年的支出，可以說去年可能花了 2000 萬美元，今年也花了 2000 萬美元。所以這也是投資的一部分。

So when you calculate all that up, that kind of gives you that one- to two-year payback, again, depending on the timing of when the projects get implemented and when the savings come through. And as I said, we feel as we exit the second half of '26, that the first part of all that restructuring will be complete, and you'll see the flow-through in the second half.

所以，當你把所有這些因素都考慮進去之後，你會發現投資回收期大約是一到兩年，當然，這還要取決於專案實施的時間以及節省成本的時間。正如我所說，我們感覺到了 2026 年下半年，所有重組的第一部分將完成，您將在下半年看到成效。

But let me also say that we're still working on additional projects. And there's still money that we're spending right now that's kind of part of that group that investment I talked about that we haven't put into our run rate yet that we haven't disclosed yet, right?

但我還想說，我們仍在進行其他項目。我們現在仍在支出一些資金，這些資金也屬於我之前提到的那部分投資，但我們還沒有將其計入營運成本，也沒有披露，對吧？

Because we -- when you think about the back half of the year, there's probably $5 million per quarter, so $10 million in the back half of the year of savings, which will also roll over into the first half of '27. So that's kind of $20 million or half of the $40 million. So we're still working on the other half. And those projects will be implemented, and we'll disclose those here over the next year or so. Hopefully, that kind of gives you enough color in terms of how all those things are working.

因為我們——當你考慮到下半年的情況時，每個季度可能節省 500 萬美元，所以下半年節省的金額將達到 1000 萬美元，這些節省的金額也將結轉到 2027 年上半年。所以這大概是 2000 萬美元，也就是 4000 萬美元的一半。所以我們還在努力完成另一半。這些項目將會實施，我們將在未來一年左右的時間內在這裡公佈這些項目。希望這能讓你對所有這些事情的運作方式有足夠的了解。

Yes, it really did. I appreciate that additional color. And then as a follow-up, I was hoping you could take us through kind of the tariff impact, pricing? And do you see any -- and it sounds like there could be some volume falloff because of some demand destruction, but just kind of where does tariff stand on a net basis?

是的，確實如此。我喜歡這種額外的色彩。然後，作為後續問題，我希望您能帶我們了解關稅的影響以及定價方面的情況？你認為－聽起來由於需求萎縮，銷售量可能會下降，但關稅的淨影響究竟如何？

So let me take the cost piece, and I'll let Ivo talk about the volume piece. So from a cost basis, we're okay in terms of the total EBITDA impact. What I would say, though, as you look at some of the gross margin dilution in the back half of 2025, and that will fall through to EBITDA dilution.

那麼，我來談談成本部分，至於銷售部分，就讓伊沃來談談吧。因此，從成本角度來看，就 EBITDA 總影響而言，我們是可以接受的。不過，我想說的是，考慮到 2025 年下半年毛利率的稀釋，這將導致 EBITDA 稀釋。

We're probably seeing 30 to 40 bps of dilution because we're not getting anything in terms of bottom line add from the tariffs, right? We're just kind of holding our own and making sure that we don't cost ourselves money. So the impact from a profitability perspective is kind of 30 to 40 bps, $0 from a total EBITDA dollars perspective.

我們可能會看到 30 到 40 個基點的稀釋，因為關稅並沒有為我們帶來任何利潤成長，對吧？我們只是勉強維持現狀，確保自己不賠錢。因此，從獲利能力的角度來看，影響約為 30 至 40 個基點，從 EBITDA 總金額的角度來看，影響為 0 美元。

And then I'll pass it over to Ivo to talk about the volume piece.

然後我會把麥克風交給伊沃，讓他談談音量方面的問題。

Yeah, Deane, I think that that's -- I'm not sure whether I would call it volume destruction or what have you, but I think I would probably call it more of a short-term transitory growing pains. I believe that there's probably some impact to ag in particular. Certainly, the trade environment has gotten more challenging, particularly for farmers.

是的，迪恩，我覺得那是——我不確定我是否應該稱之為銷量下滑之類的，但我認為我可能會稱之為短期的過渡性成長陣痛。我認為這可能會對農業產生一定影響。貿易環境無疑變得更加嚴峻，尤其對農民而言更是如此。

And that's kind of what we have seen in terms of probably delayed recovery in ag overall. And as I said on the call, ag in Q3 got slightly worse than what we've anticipated at the beginning of Q3 around the edges, but we do believe that, that market will also start normalizing as we enter '26 and sometimes during '26, it should start getting a little less negative.

而這大概就是我們在農業整體復甦可能延遲所看到的現象。正如我在電話會議上所說，第三季農業狀況比我們第三季初的預期略有惡化，但我們相信，隨著我們進入2026年，市場也將開始正常化，並且在2026年期間，情況應該會開始好轉一些。

So around that, I think that you're starting to see more stabilization around the auto businesses. Overall, I think you start seeing forecast maybe getting a little more positive in terms of production output by the carmakers. So I think that some of those transitory headwinds are probably abating. And as we enter '26, I think the environment should be more stable.

所以我覺得，汽車產業逐漸趨於穩定。總的來說，我認為你會看到汽車製造商的產量預測可能會變得更加樂觀。所以我認為，其中一些暫時的不利因素可能正在減弱。進入 2026 年，我認為環境應該會更加穩定。

Julian Mitchell, Barclays.

朱利安米切爾，巴克萊銀行。

Hi, good afternoon maybe just the first question, trying to drill into perhaps a little bit the sort of exit rate from 2025. Just looking at the fourth quarter, for example, you mentioned Ivo was sort of firming of the industrial environment in the prepared material.

您好，下午好，可能只是第一個問題，我想稍微了解一下 2025 年的退出率。例如，就第四季而言，你提到伊沃在某種程度上鞏固了已準備好的材料中的工業環境。

But I think the revenue guide seems to embed sort of fairly normal seasonality for the fourth quarter. Just wondered if you could clarify that? And then similarly on kind of the EBITDA rate in the fourth quarter, often down sequentially. I think this time, it's sort of flat to up. Just wondered if there was anything to call out there in terms of enterprise initiative benefits or mix or something.

但我認為營收預期似乎包含了第四季相當正常的季節性因素。請問您能否解釋一下？類似地，第四季的 EBITDA 比率也往往季減。我覺得這次的情況是，價格從平緩到上漲不等。我只是想知道，在企業計畫的收益、組合或其他方面，有沒有什麼需要特別指出的。

Yes, so look, Julian, I think that you said it correctly. I mean we -- if you think about our Q4 revenue, it really is kind of taking exit rate Q3 environment, applying normalized seasonality. So there really isn't anything peculiar.

是的，朱利安，你看，我覺得你說得對。我的意思是，如果你看看我們第四季的收入，它實際上是在第三季退出率環境下，應用了正常的季節性因素。所以其實沒什麼特別的。

I wouldn't say that we have baked in any further recoveries. We're obviously very cautious around ag but we're taking that present environment, and we say you're probably not going to really see any tangible change in Q4 and taking into account that many of these end markets, many of our customers have had somewhat challenging years. I don't see anybody trying to preposition themselves for 2026.

我不會說我們已經預料到會有進一步的復甦。我們顯然對農業領域非常謹慎，但考慮到目前的情況，我們認為第四季度可能不會出現任何實質性的變化，考慮到許多終端市場，我們的許多客戶都經歷了一些挑戰。我沒看到有人試圖為2026年大選做好準備。

And that, in a way, I would say, is positive that folks are not prepositioning themselves. I think that people are now focusing more on '26. And we are seeing -- or we are hearing certainly more kind of an optimistic outlook about '26 in certain segments of our business. So that being said on the on the demand.

從某種意義上說，我認為人們沒有預先設定自己的位置是一件好事。我認為人們現在更關注的是26年。我們看到——或者說我們聽到——在我們業務的某些領域，對 2026 年的前景更加樂觀。所以，綜上所述，應需求而定。

And I'll let Brooks chime in on the EBITDA for Q4.

接下來，我將請布魯克斯談談第四季的 EBITDA 情況。

Yeah. So from a Q4 perspective, we're still seeing some -- we're seeing some of our initiatives roll through around material costs. That's sort of -- that's offset by some of the tariff dilution and kind of normal seasonality in terms of Q4.

是的。所以從第四季來看，我們仍然看到一些——我們看到我們的一些舉措正在圍繞材料成本。這在某種程度上被關稅減讓和第四季正常的季節性因素所抵銷。

We're pretty -- I think we're pretty happy with where our inventories are in terms of service and then building -- being ready for some of these activities in Q1. So we're not building significant inventories as we head into the end of the year. So all in, nothing -- some puts and takes, right, in terms of things working in our favor, other things that we're taking on and making sure that we're able to deliver EBITDA growth year-over-year, but nothing structurally different as we end the year.

我覺得我們對目前的庫存狀況相當滿意，無論是在服務方面還是在建設方面，我們都為第一季的一些活動做好了準備。因此，在年底臨近之際，我們並沒有建立大量的庫存。所以總的來說，沒有——有些事情有利有弊，對吧？有些事情我們正在努力克服，以確保我們能夠實現 EBITDA 逐年成長，但到年底，結構上沒有任何變化。

But Julian, we are also executing rather well, right? I mean we had 18% EPS growth in Q3, record level of margins in a reasonably muted end market environment. So I think that the organization is doing a good job in managing during some of these challenging times and frankly, delivering differentiated operating results.

但是朱利安，我們的執行情況也相當不錯，對吧？我的意思是，我們在第三季實現了 18% 的每股盈餘成長，在相對低迷的終端市場環境下，利潤率也達到了創紀錄的水平。所以我認為，該組織在應對這些充滿挑戰的時期方面做得很好，坦白說，也取得了差異化的經營成果。

Great. And then just one quick follow-up on the sort of cash conversion. I think you walked down the guide a bit there. There's some higher cash restructuring. Should we expect much improvement in conversion next year? Or no, because of the EMEA and North America restructuring charges will sort of weigh on next year?

偉大的。然後，再快速跟進一下現金兌換的問題。我覺得你剛才有點偏離了導遊的指示。還有一些金額較大的現金重組。我們預計明年的轉換率會有很大提升嗎？或者並非如此，因為歐洲、中東和非洲以及北美地區的重組費用會對明年的業績造成一定影響？

Yeah, we'll have to take a look at that. I mean I would think that the bigger part of what's affecting us in 2025 is the restructuring charges that get -- that are an add-back to adjusted EBITDA and adjusted net income, but flow through the free cash flow and then the higher CapEx as well.

是的，我們得查一下。我的意思是，我認為 2025 年對我們影響最大的因素是重組費用——這些費用會加回調整後的 EBITDA 和調整後的淨收入，但會影響自由現金流，還會導致更高的資本支出。

I would say that we're going to continue to spend CapEx, although I would imagine it starts to dial down just a tad in 2026. And we'll probably see some small headwinds related to the restructuring cash out versus how it shows up in adjusted net income, but probably not as much as we do this year.

我認為我們將繼續增加資本支出，儘管我估計到 2026 年，支出將略微減少一些。我們可能會看到一些與重組現金支出和調整後淨收入之間的小摩擦，但可能不會像今年那麼嚴重。

And again, we called out the headwinds. Those are going to show up in the numbers and show up in the cash. And so that won't really affect the overall cash conversion number because those will be in both places. So we'll update that, and we'll make sure that we call that out specifically when we update our guidance for 2026. But again, that's really just a kind of -- it's in one number. It's not in the other number. And so it's a little bit out of balance. We need to make sure we call that out in our cash conversion.

我們再次提醒大家注意逆風。這些都會體現在數位和現金流上。因此，這不會真正影響整體現金轉換率，因為這些現金將在兩地都有。所以我們會更新這部分內容，並且在更新 2026 年指導方針時，我們會特別指出這一點。但再說一遍，這其實只是一種──它包含在一個數字裡。不在另一個號碼裡。所以現在有點失衡了。我們需要確保在現金轉換過程中明確指出這一點。

Great thank you.

非常感謝。

Jeff Hammond, KeyBanc Capital Markets.

Jeff Hammond，KeyBanc Capital Markets。

Hey, good afternoon. Appreciate all the color. So just to kind of put a bow on this noise around margins and the margin bridge because I think that the message is getting confused that next year is a transition year and maybe your long-term target is getting pushed out.

嘿，下午好。欣賞這繽紛的色彩。所以，我想就利潤率和利潤率橋樑的這些雜音做個總結，因為我認為大家對明年是過渡年，長期目標可能會被推遲的說法感到困惑。

It seems like to me, you had said to get to your margin target, you needed 100 to 150 basis points from volume, and that hasn't played out. And it seems like you've maybe outperformed on internal execution, material savings and the volume has been the whole, but maybe just level set me on that.

在我看來，你之前說過，為了達到你的利潤率目標，你需要成交量增加 100 到 150 個基點，但這並沒有實現。看起來你們在內部執行、材料節約和產量方面可能做得更好，但也許只是讓我對這方面有所了解。

I think, Jeff, you said it perfectly. We've actually -- we're actually delivering on our midterm targets without getting any help from the underlying macro. And we feel really good about that, right, because it's really tough to execute in such negative PMI environment. And so I think that there was the point of delineation where we wanted to ensure that we communicate to the market that the company is executing well. We certainly believe that the volume is going to inflect.

傑夫，我覺得你說得非常到位。實際上，我們——實際上，在沒有宏觀經濟任何幫助的情況下，我們已經實現了中期目標。我們對此感到非常滿意，因為在 PMI 指數如此低迷的環境下，執行起來真的非常困難。因此，我認為，我們想要明確傳達給市場的訊息，即公司運作良好，這就是一個關鍵的界定點。我們堅信成交量將會出現轉折點。

We all certainly know that we -- none of us are very good at being able to call the inflections in the macroeconomics, taking into account that there are so many different moving pieces associated with trade policies and industrial policies and kind of the global behavior of these end markets itself. But I think all of us would anticipate that after 36 months of negative PMI, we would be on a verge at some point in time to see some inversion. And when that occurs, obviously, that's incremental to what we have described in our presentation.

我們當然都知道，我們——我們當中沒有人很擅長預測宏觀經濟的轉折點，因為貿易政策、產業政策以及這些終端市場本身的全球行為都牽涉到許多不同的變動因素。但我認為我們所有人都會預料到，在經歷了 36 個月的負 PMI 之後，我們遲早會看到 PMI 出現倒轉。當這種情況發生時，顯然，這會在我們演講中描述的內容基礎上增加。

Okay. Great. And then just on capital allocation, I sense a little bit of a tone change where you've kind of been saying before, hey, we're just going to buy back our stock. The market doesn't appreciate what we're doing here and the multiple hasn't expanded relative to our peers. But now it seems like you're maybe talking a little more about bolt-ons. And so am I reading that right? Or do we lean in on a day where our stock is down 6% and the market is confused?

好的。偉大的。然後，就資本配置而言，我感覺語氣稍微發生了一些變化，你之前一直在說，嘿，我們打算回購我們的股票。市場並不認可我們正在做的事情，而且相對於同行，我們的估值倍數也沒有擴大。但現在看來，你可能更多是在談論外掛式改裝件。我理解的對嗎？或者，當我們的股票下跌 6% 且市場一片混亂時，我們是否應該加大投資？

Yeah, look, I mean, our stock is -- I think our stock is inexpensive. It's trading at a valuation that is not akin to the performance that the company is delivering. So we'll certainly lean into buybacks. The Board authorized $300 million of buybacks. So we'll certainly be utilizing what we can. But the company as well is generating tremendous amount of free cash flow. So I think that we can do all of the things that have been outlined as plausible outcomes for capital deployment.

是的，你看，我的意思是，我們的股票——我認為我們的股票很便宜。該公司目前的估值與其業績並不相符。所以我們一定會傾向回購股票。董事會批准了3億美元的股票回購計畫。所以我們一定會充分利用一切可以利用的資源。但該公司也產生了巨額自由現金流。所以我認為我們可以實現所有已列出的、作為資本部署可能結果的事情。

We've bought back -- I mean, we've paid down some more debt. We will be strategic about buying back our stock, but we also believe that as our balance sheet is trending towards below the 2x leverage that we have kind of put in a place as a demarcation point for us. And so hopefully, I won't have to be talking about leverage in the future. We believe that we can use all 3 levers for capital deployment, and we will be leaning more aggressively towards bolt-on M&A.

我們已經回購了一些——我的意思是，我們已經償還了一些債務。我們將採取策略性措施回購股票，但我們也相信，隨著我們的資產負債表趨向於低於我們設定的 2 倍槓桿率（這算是我們給自己設定的一個分界點），情況會有所改善。所以，希望以後我不用再談槓桿作用了。我們相信我們可以利用所有 3 個槓桿進行資本部署，並且我們將更加積極地傾向於附加式併購。

Great, thanks, guys.

太好了，謝謝各位。

Andy Kaplowitz, Citigroup.

安迪‧卡普洛維茨，花旗集團。

Hey, good morning or Good afternoon now. You've been talking about accelerating footprint optimization and doing 80/20 since your Investor Day 1.5 years ago. But obviously, your growth since then has been somewhat slow. So I'm just trying to figure out if you're accelerating or enhancing any of your restructuring plans versus when you updated us at that Investor Day. And then maybe can you update us on how 80/20 is impacting Gates as you go into '26 and beyond? If you do organically grow, can you do core incrementals over 40%?

嘿，早安/下午好。自 1.5 年前的投資者日以來，您一直在談論加快優化佔地面積和實施 80/20 法則。但很顯然，你此後的發展速度有些緩慢。所以我想弄清楚，與你在投資者日上向我們介紹的情況相比，你是否正在加速或加強你的任何重組計劃。那麼，您能否向我們介紹一下，隨著2026年及以後的發展，80/20法則對蓋茲公司有何影響？如果採用有機成長，核心成長率能超過 40% 嗎？

Yeah, look, I think that we've -- I want to kind of be fully transparent, right? So as Liberation Day came forward in April, we kind of took a little pause to try to understand what will the new mercantile regime look like? And how do we think about our overall operating structure as a company. And obviously, we have been in region for region for a long time.

是的，你看，我認為我們已經——我想完全坦誠，對吧？隨著四月解放日的臨近，我們稍作停頓，試圖了解新的商業體制會是什麼樣子？那麼，我們身為一家公司，該如何看待我們整體的營運結構呢？顯然，我們已經在區域層面進行了很長時間的討論。

So we just wanted to reassess and get a better sense of what is happening in the world. I think that as we got more comfortable with what we are seeing and how we are organized, we've come to a conclusion that our original plan was the right plan. As Brooks indicated, we need to be capable of having an access to labor that will give us an ability to flex up and down as these cycles occur.

所以我們只是想重新評估一下，以更好地了解世界上正在發生的事情。我認為，隨著我們對所見所聞和組織方式越來越熟悉，我們最終得出結論：我們最初的計劃是正確的計劃。正如布魯克斯所指出的，我們需要能夠獲得勞動力，以便我們能夠隨著這些週期的發生而靈活調整勞動力規模。

We believe that we are on the verge of an up cycle. So we've got to be positioned well to support the growth that we anticipate over the next upcoming up cycle. And so we are really just executing on our original plan, Andy.

我們相信我們正處於上升週期的邊緣。因此，我們必須做好充分準備，以支持我們預期在下一個上升週期中實現的成長。所以，安迪，我們其實只是在執行我們最初的計畫。

Nothing really has dramatically changed around what we have anticipated vis-a-vis our footprint optimization and restructuring. So we are -- I think we are in a very, very good shape, and it also validated that our plan was the right plan. We just needed to hit a pause for a couple of quarters. So that's kind of beyond us, and we are moving forward.

就我們的業務佈局優化和重組而言，實際上並沒有什麼發生重大變化。所以我覺得我們目前的情況非常好，這也驗證了我們的計畫是正確的。我們只需要暫停一下，休息幾個季度。所以這已經超出我們的能力範圍了，我們正在向前看。

As to 80/20, look, 80/20 material cost reductions and driving a better operational focus has been really the attributes that have given us the opportunity to outperform what we've anticipated during our Capital Markets Day in 2023 and still deliver on our midterm targets without the growth. So it's a very powerful tool. We again believe that we are very early innings. We take a look at somebody like ITW that has been doing it for over a decade plus, and they continue to deliver good margin expansion.

至於 80/20 策略，你看，80/20 的材料成本削減和更好的營運重點，才是真正讓我們有機會在 2023 年資本市場日超越預期，並在沒有增長的情況下實現中期目標的關鍵因素。所以它是一款非常強大的工具。我們再次認為，現在還只是比賽的初期階段。我們以ITW為例，他們已經從事這項業務十多年了，並且持續實現良好的利潤成長。

We believe that we not only have the opportunity for a very certainly intermediate future to continue to support 80/20 as the key attributes of our enterprise initiatives to add to our profitability, but also grow our franchise through our strategic growth verticals.

我們相信，我們不僅有機會在未來一段時間內繼續將 80/20 作為我們企業計劃的關鍵屬性，從而提高盈利能力，而且還可以透過我們的策略成長垂直領域來發展我們的特許經營權。

So we think that we can do both, and we think that 80/20 is going to be very additive to us. And if you exclude the benefits from restructuring, and again, I want to be very specific. If you exclude the benefits that we have described on Slide 12, we still believe that in a normalized growth environment that we anticipate kind of in '26 and beyond, we should be generating 30% to 35% incremental over and above the benefits that I described on that page.

所以我們認為我們可以兩者兼顧，而且我們認為 80/20 的模式對我們來說將非常有利。如果排除重組帶來的好處，而且，我再次強調，我想說得非常具體一點。即使排除我們在第 12 頁幻燈片中描述的好處，我們仍然相信，在我們預期的 2026 年及以後的正常增長環境中，我們應該能夠產生比我在該頁中描述的好處多 30% 到 35% 的增量。

Ivo, that's helpful. And then just in terms of growth by region, I think you explained what's going on in North America well. But you also mentioned EMEA returned to growth, which is interesting, and China continues to put up durable growth for you guys. So maybe you could sort of click on or give us a little more color about what you're seeing.

伊沃，這很有幫助。至於各地區的成長情況，我認為你已經很好地解釋了北美的情況。但您也提到 EMEA 地區恢復了成長，這很有意思，而且中國市場也繼續為您帶來持續成長。所以，或許您可以點擊一下，或是給我們更詳細地描述您所看到的內容。

Yeah, look, I mean, I think that North America has been probably most challenged from kind of agriculture end market exposure that got slightly worse. And remember, we -- it wasn't a ton of dollars that we -- that it got around the edges less supportive than what we've anticipated. So it's just around the edges, less supportive there.

是的，你看，我的意思是，我認為北美可能受到的挑戰最大，因為農業終端市場的情況略有惡化。記住，我們——我們投入的資金並不多——它只是在邊緣地帶獲得了一些支持，而這些支持不如我們預期的那樣。所以只有邊緣部分支撐力較弱。

The other end markets, look, I mean, automotive overall grew nicely. Automotive Replacement grew really well for us in North America. Our Industrial Replacement market is growing. So the things are not -- they're not bad in any form of imagination. They're kind of around what we've anticipated with maybe slightly worse behavior in the ag environment.

其他終端市場，例如汽車產業整體發展良好。汽車零件更換業務在北美發展得非常好。我們的工業替換市場正在成長。所以，這些事情並不是──無論從哪個角度想像，它們都不是壞事。它們的表現基本上符合我們的預期，只是在農業環境中可能略微糟糕一些。

South America has been tough last quarter, but it's been predominantly tough after extraordinary several quarters or maybe six quarters of significant growth. So it's kind of a more normalization. And we again anticipate that South America is going to start moving into the growth phase as we kind of exit '26 -- I mean, '25 into '26.

南美洲上個季度情況嚴峻，但這主要是因為先前經歷了幾個季度（或許是六個季度）的顯著增長。所以這是一個更趨於正常化的過程。我們再次預計，隨著我們告別 2026 年——我是說，從 2025 年到 2026 年——南美洲將開始進入成長階段。

Yes, I mean, Europe has been a little bit surprising to us, right? I mean it's behaved a little bit better than what we've kind of envisaged with positive core growth. I would say that the auto markets are quite negative in Europe.

是的，我的意思是，歐洲確實讓我們有點意外，對吧？我的意思是，它的表現比我們預期的正向核心成長要好一些。我認為歐洲汽車市場情況相當悲觀。

I don't think I'm telling you anything that has not been already communicated, but our AR business is performing well. Our industrial first-fit, particularly around the commercial construction segment and mobility has been performing quite well. And IR has been stabilizing and starting to perk up a little bit in Q3. So maybe around the edges, more green shoots than less.

我想我說的這些話大家之前應該都已經知道了，但是我們的 AR 業務表現良好。我們的工業首套方案，尤其是在商業建築領域和移動出行領域，表現相當不錯。而 IR 市場在第三季已經趨於穩定，並開始略有回升。所以也許在邊緣地帶，綠色的嫩芽比較少的嫩芽要多。

And China has been okay. Automotive has been doing quite all right for us in China. Industrial Replacement has been doing quite all right for us. So China has been behaving more or less as we have seen over the last several quarters.

中國的情況一直都還不錯。在中國，汽車產業發展得相當不錯。工業替換業務一直運作良好。所以，中國的行為或多或少與我們在過去幾季看到的情況類似。

And then East Asia and India is growing. I mean we are growing nicely. Our Automotive Replacement business in India. The industrial first-fit business is doing well. I mean I think that India is poised to continue to be on a trajectory of nice growth with the overall economy evolving nicely and becoming a real alternative to China over the midterm. So we are quite optimistic about what we can see out of India in particular.

然後是東亞和印度，它們正在發展。我的意思是，我們發展勢頭良好。我們在印度的汽車零件更換業務。工業首件裝配業務發展良好。我的意思是，我認為印度有望繼續保持良好的成長勢頭，整體經濟發展良好，並在中期內成為中國的真正替代方案。因此，我們對印度的發展前景相當樂觀。

So overall, we're actually reasonably tending to be more optimistic than less. And we believe that '26 should be more positive than perhaps might have been taken out of our release today.

所以總的來說，我們其實傾向於比較樂觀。我們認為，26 年的表現應該比我們今天發布的版本中可能呈現的更加積極。

Thanks for the color.

謝謝你提供的色彩。

Tomohiko Sano, JPMorgan.

佐野智彥，摩根大通。

Hello, everyone.

大家好。

Hi, good morning.

您好，早安。

I'd like to ask about the data centers. And of the $322 million in Fluid Power revenue this quarter, how much was related to data center sales? And what is your expectations for 2025 data center revenue and the conversions of your $150 million plus pipeline in 2026, please?

我想諮詢一下資料中心的情況。本季流體動力業務收入為 3.22 億美元，其中有多少與資料中心銷售有關？那麼，您對 2025 年資料中心收入以及 2026 年超過 1.5 億美元的潛在客戶轉換率有何預期？

Yeah, good afternoon to you. Good morning. We are not going to be addressing exactly the revenue flows because it's still reasonably a small size of revenue that is growing rather nicely for us, but from a very, very small base. So I don't think it's worth to -- at this point in time to spend time yet on the sizing of this.

是啊，下午好。早安.我們不會具體討論收入來源，因為目前收入規模仍然相對較小，雖然成長勢頭良好，但基數非常非常小。所以我覺得目前還不值得花時間來確定這個尺寸。

It's in the millions, not in the tens of millions yet. Our design-in activities remains very, very robust. I mean, we see a significant number of new customers that are coming to us, and we are working with on new design-in opportunities. And we will be providing you with some additional color in January or early February on our Q4 earnings call.

雖然已經達到數百萬，但還沒有達到數千萬。我們的設計融入活動依然非常非常穩健。我的意思是，我們看到大量新客戶湧入，我們正在與他們合作，尋求新的設計合作機會。我們將在1月或2月初的第四季財報電話會議上為您提供更多相關資訊。

But we do continue to be quite optimistic that the data center growth as a vertical is going to ramp up rather nicely. And we still feel that, that $80 million to $200 million, $100 million to $200 million by 2028 is certainly -- doable for us as an intermediate target for us over the next two to three years.

但我們仍然相當樂觀地認為，資料中心作為一個垂直產業，其成長將會相當順利。我們仍然認為，到 2028 年實現 8,000 萬至 2 億美元，或 1 億至 2 億美元，對我們來說，在未來兩到三年內實現這個中期目標肯定是可行的。

We also incidentally are going to be at the show Supercompute next, I think, two weeks from now in St. Louis. So we would invite anybody to still buy and have a conversation with us about some of the new products, innovation, and we can provide additional color on what we are working on from a technology perspective there as well.

順便一提，我們下兩週後（我想應該是兩週後）還會去聖路易斯參加超級計算展。因此，我們歡迎大家繼續購買我們的產品，並與我們交流一些新產品、創新成果，我們也可以從技術角度提供更多關於我們正在進行的研究的資訊。

And a follow-up on pricing perspective. Could you talk about how effective you have been in passing through cost inflation in Q3? And what is your pricing strategy for 2026, please?

最後再補充一點關於定價方面的問題。能否談談您在第三季是如何有效地應對成本上漲的？那麼，你們2026年的定價策略是什麼呢？

Yeah, well, look, I mean, we've -- going back, I mean, we've always been, I would say, as effective as anybody in terms of passing pricing through from an inflation perspective. We -- when the tariff -- all the new tariffs came out, for the most part, we're able to cover that with pricing.

是的，嗯，你看，我的意思是，回顧過去，我認為，就通貨膨脹而言，我們在價格傳導方面一直和任何人一樣有效。我們——當關稅——所有新關稅出台時，大部分情況下，我們都能透過價格來彌補這些損失。

I mean there are certain regions that are a little bit more pricing challenged, particularly in Asia, where we're able to offset it more operationally than through pricing. We've always been very transparent in terms of we're going to cover material utility inflation on a yearly basis with pricing.

我的意思是，某些地區在定價方面面臨更大的挑戰，尤其是在亞洲，在那裡我們可以透過營運而非定價來抵消這些挑戰。我們一直非常透明地表示，我們將每年透過定價來應對材料公用事業通膨。

And then the 80/20, when we implemented 80/20, we added a value pricing lever to our pricing kind of tactical approach. We make hundreds of thousands of SKUs, right? And so some of these SKUs, you want to be more competitive on.

然後，當我們實施 80/20 定價策略時，我們在定價策略中加入了價值定價槓桿。我們生產數十萬種 SKU，對吧？因此，在某些 SKU 上，你希望更具競爭力。

Some of them, you're the only ones that make it and you can price those based on the value you bring because you may be the only one that makes that particular part. And so we continue to use our 80/20 playbook to optimize pricing. And in the aggregate, we're always going to make sure that we use pricing to cover our material and utility inflation.

有些零件只有你們自己生產，你們可以根據自己帶來的價值來定價，因為你們可能是唯一生產該特定零件的人。因此，我們繼續運用 80/20 法則來優化定價。總的來說，我們始終確保透過定價來彌補材料和公用事業成本的上漲。

Thank you, I appreciate it.

謝謝，我很感激。

That concludes our question-and-answer session. I will now turn the conference back over to Rich for closing comments.

我們的問答環節到此結束。現在我將把會議交還給Rich，請他作總結發言。

All right. Thanks, everyone, for joining. If you have any further questions, feel free to reach out. Otherwise, have a great rest of the week. Take care.

好的。謝謝大家的參與。如果您還有其他疑問，請隨時與我們聯繫。祝你本週餘下的日子過得愉快。小心。

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation, and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接了。