Hayward Holdings Inc (HAYW) 2025 Q2 法說會逐字稿

Greetings. Welcome to Hayward Holdings second-quarter 2025 earnings call. My name is Latanya, and I will be your operator for today's call. (Operator Instructions) Please note, this conference call is being recorded.

問候。歡迎參加 Hayward Holdings 2025 年第二季財報電話會議。我叫拉塔尼亞 (Latanya)，今天我將擔任您的電話接線生。（操作員指示）請注意，本次電話會議正在錄音。

I will now turn the call over to Kevin Maczka, Vice President of Investor Relations and FP&A. Mr. Maczka, you may begin, please.

現在我將把電話轉給投資者關係和 FP&A 副總裁 Kevin Maczka。Maczka 先生，請您開始。

Thank you, and good morning, everyone. We issued our second-quarter 2025 earnings press release this morning, which has been posted to the Investor Relations section of our website at investor.hayward.com. There, you can also find the earnings slide presentation referenced during this call.

謝謝大家，早安。我們今天上午發布了2025年第二季財報新聞稿，該新聞稿已發佈在我們網站的「投資者關係」版塊（網址：investor.hayward.com）。您也可以在那裡找到本次電話會議中提到的收益簡報。

I'm joined today by Kevin Holleran, President and Chief Executive Officer; and Eifion Jones, Senior Vice President and Chief Financial Officer.

今天與我一起出席的還有總裁兼執行長 Kevin Holleran 和資深副總裁兼財務長 Eifion Jones。

Before we begin, I would like to remind everyone that during this call, the company may make certain statements that are considered forward-looking in nature, including management's outlook for 2025 and future periods. Such statements are subject to a variety of risks and uncertainties, including those discussed in our most recent Forms 10-K and 10-Q filed with the Securities and Exchange Commission that could cause actual results to differ materially. The company does not undertake any duty to update such forward-looking statements.

在我們開始之前，我想提醒大家，在本次電話會議中，公司可能會做出某些被視為前瞻性的聲明，包括管理階層對 2025 年及未來時期的展望。此類聲明受各種風險和不確定因素的影響，包括我們向美國證券交易委員會提交的最新 10-K 和 10-Q 表格中討論的風險和不確定因素，這些因素可能會導致實際結果大不相同。本公司不承擔更新此類前瞻性陳述的任何義務。

Additionally, during today's call, the company (technical difficulty) non-GAAP measures. Reconciliations of historical non-GAAP measures discussed on this call to the comparable GAAP measures can be found in our earnings release and the appendix to the slide presentation. All comparisons will be made on a year-over-year basis, unless otherwise indicated.

此外，在今天的電話會議中，公司（技術難題）採用非公認會計準則來衡量。本次電話會議上討論的歷史非 GAAP 指標與可比較 GAAP 指標的對帳可以在我們的收益報告和幻燈片演示的附錄中找到。除非另有說明，所有比較均以同比為基礎。

I will now turn the call over to Kevin Holleran.

現在我將電話轉給 Kevin Holleran。

Thank you, Kevin, and good morning. It's my pleasure to welcome all of you to Hayward's second quarter earnings call. I'll begin on slide 4 of our earnings presentation with today's key messages. I'm pleased to report second quarter results exceeded expectations. Net sales increased 5% with growth across both our North America and Europe and Rest of World segments.

謝謝你，凱文，早安。我很高興歡迎大家參加海沃德第二季財報電話會議。我將從我們的收益報告的第 4 張投影片開始介紹今天的關鍵資訊。我很高興地報告第二季的業績超出了預期。淨銷售額成長了 5%，北美、歐洲和世界其他地區均實現了成長。

We delivered strong profitability with gross profit margins increasing to a record 52.7% and adjusted EBITDA margin increasing to 29.5%. This represents the 10th consecutive quarter of year-over-year gross margin expansion, a direct result of the strong performance of our commercial and operations teams.

我們實現了強勁的獲利能力，毛利率增加至創紀錄的 52.7%，調整後 EBITDA 利潤率增加至 29.5%。這是毛利率連續第 10 個季度同比增長，這直接得益於我們的商業和營運團隊的強勁表現。

Robust sales growth and profitability, coupled with effective working capital management, enabled us to significantly reduce net leverage to 2.1 times. This is near the low end of our targeted range of 2 to 3 times and the lowest level in over three years, providing enhanced financial flexibility as we execute our strategic growth plans.

強勁的銷售成長和獲利能力，加上有效的營運資本管理，使我們能夠大幅降低淨槓桿率至 2.1 倍。這接近我們 2 至 3 倍目標範圍的低端，也是三年多來的最低水平，為我們執行策略成長計畫提供了增強的財務靈活性。

During this period of tariff uncertainty, we continue to aggressively execute our plans to mitigate the impact of tariffs, support margins and deliver on our commitments to shareholders and customers. We have a resilient business model with approximately 85% of our sales aligned with serving the aftermarket needs of the existing installed base.

在關稅不確定的時期，我們繼續積極執行我們的計劃，以減輕關稅的影響，支持利潤率並履行對股東和客戶的承諾。我們擁有靈活的商業模式，約 85% 的銷售額用於滿足現有安裝基地的售後市場需求。

I'm confident in our team's ability to navigate this dynamic environment. We are refining our guidance for the full year 2025, raising the low end of our guidance range for net sales. We now expect net sales to increase approximately 2% to 5%, and we continue to expect adjusted EBITDA of $280 million to $290 million.

我對我們的團隊應對這動態環境的能力充滿信心。我們正在完善 2025 年全年的預期，提高淨銷售額預期範圍的下限。我們現在預計淨銷售額將成長約 2% 至 5%，我們繼續預期調整後的 EBITDA 為 2.8 億美元至 2.9 億美元。

Turning now to Slide 5, highlighting the results of the second quarter. Net sales increased 5% to approximately $300 million, driven by a 5% increase in net price, 2% lower volumes and a 2% contribution from the ChlorKing acquisition. By segment, total net sales increased 6% in North America and 3% in Europe and Rest of World.

現在翻到投影片 5，重點介紹第二季的結果。淨銷售額成長 5% 至約 3 億美元，這得益於淨價格上漲 5%、銷量下降 2% 以及收購 ChlorKing 的貢獻 2%。按部門劃分，北美地區的總淨銷售額成長了 6%，歐洲和世界其他地區的總淨銷售額成長了 3%。

End demand improved in June, resulting in customer orders generally in line with normal seasonal patterns for the quarter. Nondiscretionary aftermarket maintenance demand remains resilient, but the more discretionary elements of the market have been pressured, consistent with the trend of prior quarters.

6月終端需求有所改善，導致客戶訂單整體符合本季的正常季節性模式。非自由支配的售後市場維護需求仍然保持彈性，但市場中更具自由支配性的元素受到了壓力，這與前幾季的趨勢一致。

Homeowners building new pools or remodeling existing pools are increasingly electing to add technology to deliver the desired ambience and experience rather than cutting costs to defeature their pool investment. Last quarter, we introduced you to OmniX, an industry-first suite of innovative products for the aftermarket. This automation platform provides a cost-effective way to accelerate technology adoption in the installed base, increasing aftermarket equipment content per pool pad and advance our technology leadership position in the market.

建造新泳池或改造現有泳池的房主越來越多地選擇添加技術來提供所需的氛圍和體驗，而不是削減成本來降低泳池投資。上個季度，我們向您介紹了 OmniX，這是業界首款針對售後市場的創新產品套件。這個自動化平台提供了一種經濟有效的方式來加速已安裝基礎的技術採用，增加了每個池墊的售後設備內容，並提升了我們在市場上的技術領導地位。

We are pleased with the initial dealer response to the new OmniX-enabled variable speed pump and will launch other product categories with embedded OmniX control capabilities in the coming quarters. In addition, our commercial pool business continues to grow organically and benefit from the addition of the ChlorKing acquisition in June of 2024.

我們對經銷商對新型支援 OmniX 的變速幫浦的初步反應感到滿意，並將在未來幾季推出具有嵌入式 OmniX 控制功能的其他產品類別。此外，我們的商業泳池業務持續有機成長，並受益於 2024 年 6 月收購 ChlorKing。

As I reflect on our first full year of ownership, this has been a very successful integration for Hayward, providing a key building block as we expand our commercial pool business, delivering the expected sales and operational synergies. Year-to-date, our commercial sales in North America have approximately doubled while generating strong profitability. Consolidated gross profit margins increased 170 basis points to a quarterly record 52.7%.

回顧我們擁有所有權的第一年，我認為這對 Hayward 來說是一次非常成功的整合，為我們擴展商業泳池業務提供了關鍵基石，實現了預期的銷售和營運協同效應。今年迄今為止，我們在北美的商業銷售額成長了約一倍，同時產生了強勁的獲利能力。綜合毛利率增加170個基點，達到季最高紀錄的52.7%。

Adjusted EBITDA increased 7% to $88 million and adjusted EBITDA margin increased 50 basis points to 29.5%. We continue to make SG&A investments in the business to drive future growth. We are investing in advanced engineering and new product development to continue bringing innovative, industry-leading products to market. On the commercial side, we are increasing investments in customer care and executing targeted sales and marketing strategies to further increase our presence in high-growth regions and capture market share.

調整後的 EBITDA 成長 7% 至 8,800 萬美元，調整後的 EBITDA 利潤率增加 50 個基點至 29.5%。我們將繼續對業務進行銷售、一般及行政費用投資，以推動未來成長。我們正在投資先進的工程和新產品開發，以繼續向市場推出創新的、領先業界的產品。在商業方面，我們正在增加對客戶服務的投資，並執行有針對性的銷售和行銷策略，以進一步增加我們在高成長地區的影響力並佔領市場份額。

During the quarter, Hayward sponsored the prestigious 2025 Pool & Spa Network Top 50 Builder Awards event. As we continue to invest in the industry and build upon our unified customer-first approach, we are seeing greater traction with higher-end builders and servicers. Finally, adjusted diluted EPS increased 14% to $0.24.

本季度，海沃德贊助了享有盛譽的 2025 年泳池和水療網絡 50 強建築商頒獎活動。隨著我們繼續對該行業進行投資並建立統一的客戶至上方法，我們看到高端建築商和服務商的吸引力越來越大。最後，調整後的稀釋每股收益成長 14% 至 0.24 美元。

Turning now to Slide 6. The tariff environment continues to evolve and will likely remain unsettled for some time. As of our last earnings call, the incremental tariffs were 145% for China and 10% for the Rest of World. Since then, we have seen movement in those rates, most significantly a reduction to 30% incremental for China.

現在翻到幻燈片 6。關稅環境持續變化，並可能在一段時間內保持不穩定。截至我們上次財報電話會議，對中國的增量關稅為 145%，對世界其他地區的增量關稅為 10%。自那時起，我們看到這些稅率有所變動，其中最顯著的是，中國的稅率增量降至 30%。

As a reminder, we are predominantly a domestic manufacturer with approximately 85% of our North America sales produced in the United States and increasing, as I'll discuss in a moment.

提醒一下，我們主要是一家國內製造商，北美銷售的約 85% 的產品產自美國，而且這一數字還在不斷增長，我稍後會討論。

However, we do source certain products from our Hayward facility in China and other third-party Chinese suppliers who are also impacted by the tariffs. Based on the latest available information, we estimate a total annualized tariff impact of approximately $30 million, with a partial year impact in 2025 of approximately $18 million, most related to China. This is down from an annualized impact of approximately $85 million when the China tariff was 145%.

然而，我們確實從位於中國的海沃德工廠和其他第三方中國供應商採購某些產品，這些供應商也受到關稅的影響。根據最新可用信息，我們估計年度關稅總影響約為 3000 萬美元，2025 年的部分年度影響約為 1800 萬美元，其中大部分與中國有關。這比中國關稅為 145% 時約 8,500 萬美元的年化影響有所下降。

Our planning assumption is the current tariff arrangements remain in place and our outlook does not consider any changes that may potentially take effect in August. We remain agile and prepared to respond as needed. Our team is focused on aggressively executing our mitigation action plans. As previously communicated, we expect our direct sourcing from China into the US as a percent of cost of goods sold to decline from approximately 10% to 3% by year-end.

我們的規劃假設是當前的關稅安排保持不變，我們的展望不考慮可能在 8 月生效的任何變更。我們保持敏捷並準備好根據需要做出反應。我們的團隊致力於積極執行我們的緩解行動計劃。如同先前所傳達的，我們預計到年底，我們從中國直接採購到美國的商品佔銷售成本的百分比將從約 10% 下降到 3%。

We intend to achieve that target regardless of the eventual tariff resolution as it derisks our supply chain and limits exposure to geopolitical uncertainty.

無論最終的關稅決議如何，我們都打算實現這一目標，因為它降低了我們的供應鏈風險並限制了地緣政治不確定性的影響。

On the pricing side, we announced a 3% tariff-related price increase in North America effective late April. This will remain in place. However, we elected not to implement a previously announced second price increase after the 145% China tariff was reduced. Our teams are working diligently to support our customers while protecting profitability. At this point, we expect to fully offset the current tariff-related cost increases.

在定價方面，我們宣布自 4 月底起，北美地區的關稅相關價格將調高 3%。此政策將繼續實施。然而，我們選擇不實施先前宣布的在145%中國關稅降低後的第二次漲價。我們的團隊正在努力支持我們的客戶，同時保護盈利能力。此時，我們預計將完全抵消當前與關稅相關的成本增加。

And with that, I'd like to turn the call over to Eifion to discuss our financial results in more detail.

接下來，我想將電話轉給 Eifion，更詳細地討論我們的財務表現。

Thank you, Kevin, and good morning. I'll start on slide 7. As Kevin stated, we are pleased with our second quarter financial performance. Net sales increased 5% and exceeded expectations. We delivered strong growth and adjusted EBITDA margin expansion to 52.7% and 29.5%, respectively, and significantly reduced net leverage to 2.1 times.

謝謝你，凱文，早安。我將從第 7 張投影片開始。正如凱文所說，我們對第二季的財務表現感到滿意。淨銷售額成長5%，超出預期。我們實現了強勁成長，調整後 EBITDA 利潤率分別擴大至 52.7% 和 29.5%，並將淨槓桿率大幅降低至 2.1 倍。

Looking at the results in more detail. The net sales increase of 5% to approximately $300 million was driven by a 5% positive net price realization, 2% lower volume and a 2% contribution from the acquisition of ChlorKing. Gross profit in the second quarter increased 9% to $158 million. Gross profit margin increased 170 basis points to a record 52.7%, with a 220 basis point increase in North America, offsetting a reduction in Europe and Rest of World.

更詳細地查看結果。淨銷售額成長 5% 至約 3 億美元，這得益於 5% 的正淨價格實現、2% 的銷量下降以及收購 ChlorKing 的 2% 貢獻。第二季毛利成長9%，達到1.58億美元。毛利率增加 170 個基點，達到創紀錄的 52.7%，其中北美增加 220 個基點，抵消了歐洲和世界其他地區的下降。

We took steps in recent quarters to improve the performance in Europe and Rest of World and are pleased to see the sequential margin progress again this quarter, increasing 390 basis points from 35% in the first quarter and 750 basis points from 31.4% in the fourth quarter 2024.

最近幾個季度，我們採取措施改善歐洲和世界其他地區的業績，並很高興看到本季利潤率再次環比增長，從第一季度的 35% 增加了 390 個基點，從 2024 年第四季度的 31.4% 增加了 750 個基點。

Adjusted EBITDA increased 7% to $88 million in the second quarter, and adjusted EBITDA margin increased 50 basis points to 29.5%. As a reminder, we are strategically reinvesting in the business to drive future growth with targeted initiatives in sales and marketing, customer service and engineering. Our effective tax rate was approximately 25% in the second quarter, consistent with our guidance. Adjusted diluted EPS increased 14% to $0.24.

第二季調整後 EBITDA 成長 7% 至 8,800 萬美元，調整後 EBITDA 利潤率增加 50 個基點至 29.5%。提醒一下，我們正在對業務進行策略性再投資，透過在銷售和行銷、客戶服務和工程方面的有針對性的舉措來推動未來成長。我們第二季的有效稅率約為 25%，與我們的預期一致。調整後稀釋每股收益成長 14% 至 0.24 美元。

Turning to slide 8 for a review of reportable segment results for the second quarter. North American net sales increased 6% to $255 million, driven by 6% net price realization, 3% lower volume and 3% from the ChlorKing acquisition. Net sales in the US increased 6% and Canada was down modestly. Seasonal demand increased as expected as we entered the peak of the 2025 pool season.

翻到投影片 8，回顧第二季可報告的分部表現。北美淨銷售額成長 6%，達到 2.55 億美元，這得益於淨價格實現 6%、銷量下降 3% 以及收購 ChlorKing 3% 的推動。美國淨銷售額成長 6%，加拿大淨銷售額略有下降。隨著我們進入 2025 年泳池季節的高峰期，季節性需求如預期般增加。

Income and orders were healthy and consistent with our expectations for the quarter and strong in commercial, up double digits organically. Gross profit margin increased 220 basis points to a robust 55.1% and adjusted segment income margin increased 110 basis points to 34.9%.

營收和訂單狀況良好，符合我們對本季的預期，商業表現強勁，有機成長兩位數。毛利率增加 220 個基點，達到 55.1%，調整後分部利潤率增加 110 個基點，達到 34.9%。

Turning to Europe and Rest of World. Net sales for the quarter increased 3% to $44 million, driven by 1% favorable net pricing, 1% lower volume and 3% favorable foreign currency translation. Net sales reduced 4% in Europe and increased 16% in Rest of World. Certain Middle East and Asian markets were significantly impacted in the prior year by macroeconomic and geopolitical conditions, and we are encouraged by the improving year-to-date trends. We are pleased to see the continued margin progression in the quarter.

轉向歐洲和世界其他地區。本季淨銷售額成長 3% 至 4,400 萬美元，這得益於 1% 的有利淨定價、1% 的銷量下降和 3% 的有利外幣折算。歐洲淨銷售額下降 4%，世界其他地區淨銷售額成長 16%。去年，某些中東和亞洲市場受到宏觀經濟和地緣政治條件的嚴重影響，我們對今年迄今的改善趨勢感到鼓舞。我們很高興看到本季利潤率持續成長。

On a sequential basis, gross profit margins increased 390 basis points to 38.9% compared to 35% in the first quarter, and adjusted segment income margins increased 150 basis points to 18.1%.

以環比計算，毛利率較第一季的 35% 增加 390 個基點至 38.9%，調整後分部收入利潤率增加 150 個基點至 18.1%。

Turning to slide 9 for a review of our balance sheet and cash flow highlights. We are pleased with the quality of our balance sheet and the significant reduction in net leverage during the quarter and over the last two years. Net debt to adjusted EBITDA improved to 2.1 times compared to 2.8 times at the end of the first quarter and 2.8 times in the year ago period.

翻到第 9 張投影片回顧我們的資產負債表和現金流重點。我們對資產負債表的品質以及本季和過去兩年淨槓桿率的大幅下降感到滿意。淨債務與調整後 EBITDA 比率改善至 2.1 倍，而第一季末為 2.8 倍，去年同期為 2.8 倍。

Reduced leverage provides additional flexibility as we invest in the business and execute on our strategic growth plans. Total liquidity at the end of the second quarter was $528 million, including $365 million in cash and equivalents plus availability under our credit facilities of $163 million.

當我們投資業務並執行策略性成長計劃時，降低槓桿率提供了額外的靈活性。第二季末的總流動資金為 5.28 億美元，其中包括 3.65 億美元的現金和等價物，以及 1.63 億美元的信貸額度下的可用資金。

We have no near-term maturities on our debt as the term debt and the undrawn ABL mature in 2028. Our borrowing rate benefits from $600 million in debt currently tied to fixed interest rate swap agreements maturing in 2026 through 2028, limiting our cash interest rate on our term facilities to 6% in the quarter.

我們的債務沒有近期到期，因為定期債務和未提取的 ABL 將於 2028 年到期。我們的借款利率受益於目前與 2026 年至 2028 年到期的固定利率互換協議掛鉤的 6 億美元債務，從而將我們定期貸款的現金利率限制在本季度為 6%。

Our average interest rate earned on global cash deposits for the quarter was 3.8%. Our business has strong free cash flow generation characteristics driven by high-quality earnings. Cash flows are seasonal and the company typically has strong cash generation in the second quarter related to collection of early buy receivables.

本季我們全球現金存款的平均利率為 3.8%。我們的業務具有由高品質收益驅動的強勁自由現金流生成特徵。現金流具有季節性，公司通常在第二季產生大量現金，這主要與收取早期購買應收帳款有關。

Year-to-date cash flow from operations was $188 million compared to $210 million in the year ago period, largely reflecting strategic inventory management ahead of tariff-related cost increases. Our outlook for the full year is unchanged. CapEx is $13 million in the first half was modestly higher than the prior year, reflecting strategic growth investments and project timing. Consequently, free cash flow was $175 million.

年初至今的營運現金流為 1.88 億美元，而去年同期為 2.1 億美元，主要反映了在關稅相關成本增加之前實施的策略性庫存管理。我們對全年的展望保持不變。上半年資本支出為 1,300 萬美元，略高於上年，反映了策略性成長投資和專案時機。因此，自由現金流為 1.75 億美元。

Turning now to capital allocation on slide 10. We maintain a disciplined and balanced approach to capital allocation, emphasizing strategic growth investments and manufacturing asset investments for tariff mitigation, maximizing long-term shareholder returns while maintaining prudent financial leverage.

現在轉到第 10 張投影片上的資本配置。我們保持嚴謹、均衡的資本配置方式，強調策略性成長投資和製造資產投資以降低關稅，在維持審慎財務槓桿的同時實現長期股東回報最大化。

We continue to pursue additional acquisition opportunities to augment our organic growth plans in addition to potential share repurchases. Hayward's Board of Directors recently authorized the repurchase of up to $450 million in shares over three years to replace a similar expired authorization.

除了潛在的股票回購之外，我們還將繼續尋求其他收購機會，以增強我們的自然成長計劃。海沃德董事會最近批准在三年內回購價值高達 4.5 億美元的股票，以取代類似的過期授權。

Turning now to slide 11 for our full year 2025 outlook. We are refining our guidance for the year, raising the low end of our guidance range for net sales. For fiscal year 2025, Hayward now expects net sales to increase approximately 2% to 5% to $1.07 billion to $1.1 billion and adjusted EBITDA of $280 million to $290 million.

現在翻到第 11 張投影片，了解我們對 2025 年全年的展望。我們正在完善今年的預期，提高淨銷售額預期範圍的下限。對於 2025 財年，Hayward 目前預計淨銷售額將成長約 2% 至 5%，達到 10.7 億美元至 11 億美元，調整後 EBITDA 為 2.8 億美元至 2.9 億美元。

We continue to expect solid execution across the organization, positive price realization and continued product technology adoption. We expect nondiscretionary aftermarket maintenance demand to remain resilient with pressure on the more discretionary elements of the market.

我們繼續期待整個組織的穩健執行、積極的價格實現和持續的產品技術採用。我們預期非自由支配的售後市場維護需求將保持彈性，而市場上更具自由支配性的要素將面臨壓力。

In April, we implemented an out-of-cycle price increase of approximately 3% in North America to offset the anticipated tariff-related inflation. As a result of the partial year benefit of this increase, we now anticipate a positive full year net price contribution of at least 4%.

4月份，我們在北美實施了約3%的非週期性價格上漲，以抵消預期的關稅相關通膨。由於此次成長在部分年度內帶來收益，我們預計全年淨價格貢獻將至少達到 4%。

Our guidance does not contemplate potential new tariffs effective on or after July 27. If these do materialize, we will take mitigation actions to offset as appropriate. We continue to expect solid cash flow generation in 2025 with a conversion of greater than 100% of net income at approximately $150 million.

我們的指導意見並未考慮 7 月 27 日或之後生效的潛在新關稅。如果這些確實發生，我們將採取適當的緩解措施來抵消。我們繼續預期 2025 年將產生穩健的現金流，淨收入轉換率將超過 100%，達到約 1.5 億美元。

We are confident in our ability to successfully execute in a dynamic environment and remain very positive about the long-term growth outlook for the pool industry, particularly the strength of the aftermarket.

我們對自己在動態環境中成功執行的能力充滿信心，並對泳池產業的長期成長前景，特別是售後市場的實力保持非常樂觀的態度。

And with that, I'll now turn the call back to Kevin.

說完這些，我現在將電話轉回給凱文。

Thanks, Eifion. I'll pick back up on slide 12. Before we close, let me reiterate how appreciative I am of the team's strong performance. In a continued challenging and uncertain environment, Hayward delivered another strong quarter, exceeding expectations. Net sales increased 5% and margins continued to expand, including a record gross margin.

謝謝，Eifion。我將從第 12 張投影片繼續講下去。在結束之前，請允許我重申我對團隊出色表現的讚賞。在持續充滿挑戰和不確定性的環境中，海沃德又取得了一個強勁的季度業績，超越了預期。淨銷售額成長 5%，利潤率持續擴大，包括創紀錄的毛利率。

We significantly delevered the balance sheet to 2.1 times, while investing in the business to drive future growth. We refined our guidance for the full year, raising the low end of our net sales guidance and effectively implementing measures to counter the current tariff headwinds. As the macroeconomic and tariff environments continue to evolve, we are excited about the fundamentals that drive our business and confident in our ability to execute our growth strategies and create shareholder value.

我們大幅降低了資產負債表的槓桿率至 2.1 倍，同時投資業務以推動未來成長。我們完善了全年業績指引，提高了淨銷售額指引的低端，並有效實施措施以應對當前的關稅逆風。隨著宏觀經濟和關稅環境的不斷發展，我們對推動業務發展的基本面感到興奮，並對我們執行成長策略和創造股東價值的能力充滿信心。

With that, we're now ready to open the line for questions.

現在，我們可以開始回答問題了。

(Operator Instructions) Ryan Merkel, William Blair.

（操作員指示）瑞安·默克爾、威廉·布萊爾。

Hey, good morning all, and congrats on a nice quarter in a tough market.

嘿，大家早上好，祝賀您在艱難的市場中取得了一個良好的季度業績。

Thanks, Ryan

謝謝，瑞安

My first question is on gross margin. It really pops off the page. Just curious on your thoughts on the outlook for the second half because it feels like you're not really raising the expectations there. So a little color there would be helpful.

我的第一個問題是關於毛利率的。它確實引人注目。我只是好奇您對下半年前景的看法，因為感覺您並沒有真正提高那裡的期望。所以有一點顏色會有幫助。

Good morning, Ryan. Yeah, let me just first kind of highlight what drove Q2, and then we'll transition into how we see the second half. It was great to report a strong result, which really was driven by that margin performance and the record at 52.7%. And it does represent a great work collectively that the Hayward team across the operations and the supply chain and the commercial teams are doing. In some ways, I really think what we just posted in Q2 shows the possibilities for what we can deliver. We look at it across kind of 4 main pillars.

早安，瑞安。是的，首先讓我重點介紹一下推動第二季業績的因素，然後我們再討論一下對下半年的展望。很高興能報告強勁的業績，這實際上是由利潤率表現和 52.7% 的記錄推動的。這確實代表了海沃德團隊在營運、供應鏈和商業團隊方面所做的偉大工作。從某種程度上來說，我確實認為我們在第二季發布的內容展示了我們可以實現的可能性。我們從四大支柱來看這個問題。

Firstly, and we've talked about this publicly before, but just to reiterate, from a productivity standpoint, the things going on inside our 4 walls. They don't really grab headlines and they're ongoing, whether they're our continuous improvement culture or weekly Kaizens, things that drive productivity and some investments we're making in automation to be more efficient and more productive with the volume that we have.

首先，我們之前已經公開談論過這個問題，但只是想從生產力的角度重申我們公司內部發生的事情。它們實際上並不引人注目，而且它們持續進行，無論是我們持續改進的文化還是每週的改進，這些都推動了生產力的發展，我們在自動化方面進行了一些投資，以便在現有產量下提高效率和生產力。

Secondly is really what we're doing with the product line as we're rationalizing out some lower-volume and some low-margin SKUs, at the same time introducing higher-value, higher-margin new products to the marketplace. Q2 was better volume than we have kind of in Q1 or Q3.

其次，我們實際上正在對產品線進行調整，淘汰一些產量較低、利潤較低的 SKU，同時向市場推出價值更高、利潤更高的新產品。第二季的銷售量比第一季或第三季好。

So again, we show there what can occur as we start utilizing more of our capacity in our global footprint. And then, of course, from a price/cost standpoint, we continue to expect to be able to deliver price/cost neutrality as we face inflation and more recently, tariffs. As for the second half, I'll -- and going forward, I'll ask Eifion to address how we pull that guide and the outlook together.

因此，我們再次展示了當我們開始在全球範圍內利用更多產能時可能出現的情況。當然，從價格/成本的角度來看，在面臨通貨膨脹和最近的關稅的情況下，我們仍然期望能夠實現價格/成本中立。至於下半部分，我將——展望未來，我將請 Eifion 談談我們如何將該指南和展望結合起來。

Sure. Ryan, as we step into the second half, the incremental tariff price action that we took in April in North America, that will benefit the entire second half and is expected to offset approximately dollar for dollar the tariff that we expect to incur in the second half. That will keep the absolute gross profit margin dollars protected but will obviously moderate the gross profit margin percentage, given net sales is priced up and gross profit dollars remain the same as we anticipated.

當然。瑞安，隨著我們進入下半年，我們四月在北美採取的增量關稅價格行動將使整個下半年受益，預計將一比一抵消我們預計下半年將產生的關稅。這將保證絕對毛利率受到保護，但顯然會降低毛利率百分比，因為淨銷售額上漲，而毛利仍與我們預期的一樣。

As we complete our operational mitigation programs, that will be the driver to open back up again the gross profit margin percentage. And as we've discussed, those programs are well progressed, and they will take through the end of this year into next year to fully execute.

隨著我們完成營運緩解計劃，這將成為再次提高毛利率百分比的動力。正如我們所討論的，這些項目進展順利，並將在今年年底到明年全面實施。

I think what's super positive is despite a moderating gross profit margin percentage in the second half, our full year guidance implies year-over-year gross profit margin percentage improvement, which we're super proud of. And as Kevin mentioned, it takes a village here to tackle the entirety of what's been thrown at us, and we feel really positive about how things have developed through the second quarter here.

我認為非常積極的一點是，儘管下半年毛利率百分比有所放緩，但我們的全年預期意味著毛利率百分比將同比增長，我們對此感到非常自豪。正如凱文所提到的，我們需要整個村莊的共同努力來解決我們面臨的所有問題，我們對第二季事態的發展感到非常樂觀。

Thanks for that. That was great color. My second question is on the new pool outlook, I guess, a near-term question and a long-term question. So near term, what are you expecting for new pool for this year? And then it seems to me that the new pool market has been a category that's corrected the most since COVID. And do you feel like we're at a durable bottom here at this point?

謝謝。顏色真棒。我的第二個問題是關於新泳池的前景，我想，這是一個近期問題，也是一個長期問題。那麼短期內，您對今年的新泳池有什麼期待呢？在我看來，新泳池市場是自新冠疫情以來調整幅度最大的一個類別。您是否覺得我們現在已經處於一個持久的底部？

Yeah, in terms of our outlook, I think it remains consistent with our original guide, Ryan, and that is we were calling for modestly down Pkdata, as you well know, kind of the industry source there in the U.S. calculated or communicated low 60s last year. We believe, as we continue to look closely at the permit data, there's a couple of sources for that. But as we triangulate, I would say that it's still tracking to sort of mid-single-digit count off year-on-year, but it is improving as we're working through the year.

是的，就我們的展望而言，我認為它與我們最初的指導一致，瑞安，那就是我們呼籲適度降低 Pkdata，正如你所知，去年美國的行業消息來源計算或傳達了 60 年代的低位。我們相信，隨著我們繼續仔細研究許可證數據，我們會發現有幾個來源可以證明這一點。但當我們進行三角測量時，我想說它仍然追蹤著同比中等個位數的成長，但隨著我們全年的工作，它正在改善。

And again, the values I know it wasn't asked in your question, but the value of what is being built continues to be positive as folks are doing it right and are putting features on their pools.

再說一次，我知道你的問題中沒有問到價值觀，但是，隨著人們做得正確並在他們的游泳池中添加功能，正在建造的東西的價值仍然是積極的。

As for where it can go from here, it's a great question. This is near trough levels. Going back to -- immediately coming out of the GFC, it got a little bit lower at that point. I'd like to think that the macro today isn't quite what it was back 15 years ago. There's an interesting thing we talk about here around new construction.

至於它接下來會走向何方，這是一個很好的問題。這接近低谷水平。回顧—在全球金融危機剛結束的時候，價格就稍微低了一些。我認為今天的宏觀經濟與 15 年前已經不太一樣了。我們在這裡談論有關新建築的一件有趣的事情。

And by no means are any of us proud of a 60,000 accounts coming off the more recent highs. But if you go back 10 years ago, when interest rates were very different than they are today, when housing market or at least turnover existing homes, which is a big driver of remodeling activity was far different, we were building 60,000 pools then.

我們絕對不會有人為近期帳戶數量突破 60,000 個而感到自豪。但如果回顧 10 年前，當時的利率與現在大不相同，當時的房地產市場或至少是現有房屋的周轉率（這是改造活動的一個重要驅動力）也大不相同，當時我們建造了 60,000 個游泳池。

So I think while the homeowner is under much more pressure today and mortgage rates are, call it, 300 basis points higher than they were at that point, we're building the same number of pools, which I think really underscores both the migration that's taken place to warmer climates where a pool is desired or maybe even needed. And I just think that there's a bit of a coiled spring here that as interest rates and housing market starts to improve, that we can inflect upward from a new construction standpoint.

因此，我認為，儘管如今房主面臨著更大的壓力，抵押貸款利率比當時高出了 300 個基點，但我們建造的游泳池數量卻沒有變化，我認為這確實凸顯了人們向氣候更溫暖的地方遷移的趨勢，在氣候更溫暖的地方，人們渴望甚至需要游泳池。我只是認為，這裡有一個有點像彈簧的東西，隨著利率和房地產市場開始改善，我們可以從新建築的角度向上彎曲。

That's really helpful, thanks for that. I'll pass it on.

這真的很有幫助，謝謝。我會傳達的。

Brian Lee, Goldman Sachs.

高盛的 Brian Lee。

Hey guys, good morning, thanks for taking the questions. Maybe just going on the guidance to start off, I know, the macro environment tariffs, all of that's pretty fluid. So last quarter you guys with the information at hand at that time it talked about net price increase of 5% to 6% for the year.

大家好，早安，感謝你們回答問題。也許只是從指導開始，我知道，宏觀環境關稅，所有這些都是相當不穩定的。上個季度，根據你們掌握的信息，全年淨價格將上漲 5% 至 6%。

Now you're talking about 4%, but in that same context you raised the low end of the revenue guidance range for the year, so. Presumably that's coming from a better volume outlook. Is that a fair assumption, and is that coming from the US? Is it coming from Europe? Is it aftermarket maybe walk us through sort of the revenue guidance uptick in the face of a slightly lower, net price increase view.

現在您談論的是 4%，但在同樣的背景下，您提高了今年收入預期範圍的下限，所以。據推測，這是由於更好的銷售前景。這是一個合理的假設嗎？這個假設是來自美國的嗎？它是從歐洲來的嗎？售後市場是否可以向我們介紹一下在淨價格略低上漲的情況下收入預期的上升？

Yeah. I would say what you laid out there is accurate. This time a quarter ago, we were talking 5% to 6% price based upon that announced second off-cycle increase that was really stem -- that was -- well, we backed off of that shortly thereafter when China incremental was changed meaningfully. So price, correct, you're correct at 4%. And with less price being put into the marketplace, we did -- we do assume a stronger volume performance than we had, still slightly negative.

是的。我想說你所說的都是準確的。一個季度前的這個時候，我們根據宣布的第二次非週期性增長談論了 5% 到 6% 的價格，這確實是實質性的——那是——好吧，當中國增量發生重大變化時，我們不久後就放棄了這一目標。所以價格正確，4% 是正確的。由於市場上的價格較低，我們確實認為銷售表現會比以前更強勁，但仍然略微偏負。

We were talking about negative kind of 2.5% this time last quarter to more of a negative 1% overall on volume. And I would say, since the pricing that we're talking about, off-cycle pricing was only going towards US as that has moderated. That's where we expect the volume gains to come back from as that price is no longer placed into the market.

我們談論的是上個季度此時的負 2.5% 左右，總體而言負 1% 左右。我想說，由於我們正在談論定價，因此非週期定價僅朝著美國的方向發展，因為美國已經緩和了。由於該價格不再進入市場，我們預期交易量將會回升。

Okay. Fair enough. No, that's helpful. And then maybe just another question on the gross margin performance here because it's so notable. Kudos to you guys.

好的。很公平。不，這很有幫助。然後也許只是關於毛利率表現的另一個問題，因為它非常引人注目。向你們致敬。

It seems like there's still a lot of torque in that, though, if you think about where utilization rates are for you and also some of these mitigation efforts, which it sounds like would put you on a path to start expanding margins again. But can you maybe quantify those two buckets, if you think they're the right two buckets that could drive the most amount of incremental leverage on margins?

不過，如果您考慮一下您的利用率以及一些緩解措施，似乎其中仍然存在很大的扭矩，這聽起來會讓您走上再次擴大利潤率的道路。但是，如果您認為這兩個桶子是可以對利潤率產生最大增量槓桿作用的正確桶，那麼您能否量化這兩個桶呢？

Just sort of as utilization rates increase from this sort of, I would think at 65%, 70% level, what's sort of the drop-through to the margin? And then also, how are you thinking about -- I understand the time line on the cost mitigation and moving out of China, but what's the actual margin implications? And over what time frame could we see that materialize?

隨著利用率從這種水準上升，我認為在 65%、70% 的水平上，利潤率的下降幅度會是多少？另外，您是如何考慮的——我了解降低成本和撤出中國的時間表，但實際的利潤影響是什麼？我們可以在什麼時間範圍內看到這個目標實現？

Good morning, Brian. We have talked about this before. When we think about gross profit margin development, approximately 10% of our cost of goods sold we would say is fixed. So if we see a 10% growth on the top line, we'd expect 1% leverage to come through the business at the gross margin line. That's the easy math on that one. When you think about adjusted EBITDA, we have mid-20s in terms of combined research development and engineering SG&A.

早安，布萊恩。我們之前已經討論過這個問題。當我們考慮毛利率發展時，我們會說大約 10% 的銷售成本是固定的。因此，如果我們看到營業收入成長 10%，我們預計毛利率將達到 1%。這就是那個問題的簡單數學。當您考慮調整後的 EBITDA 時，我們的綜合研發和工程銷售、一般及行政費用 (SG&A) 為 25% 左右。

We do expect to continue to lever that as the top line grows. It's not all fixed. Obviously, we'll continue to make investments, but that will be leverage opportunity there.

我們確實希望隨著營業額的成長繼續利用這一點。一切還沒解決。顯然，我們將繼續進行投資，但這將是槓桿機會。

In terms of the second bucket, which is the mitigation actions that we're taking to open up the margin again once we get through tariff management here, there's a range of outcomes there. Our manufacturing teams step into each new year with targets to develop the gross profit margin through lean practices and supply chain management initiatives.

就第二部分而言，即一旦我們通過關稅管理，我們將採取緩解措施再次開放利潤，這將產生一系列結果。我們的製造團隊在每個新年都立志透過精實實踐和供應鏈管理措施來提高毛利率。

We've said this previously that we would expect somewhere around about a 25 bp increase year-on-year at a minimum coming from those type of activities. It won't be linear. There will be years where we get more, years where we get more moderated results. But every single year, our team set about to improve the cost of goods sold outlook for our business.

我們之前曾說過，我們預計透過此類活動，我們的經濟成長率至少會比去年同期成長 25 個基點左右。它不會是線性的。未來幾年，我們將會取得更多成果，也將會取得更溫和的成果。但每年，我們的團隊都會著手改善我們業務的銷售成本前景。

Saree Boroditsky, Jefferies.

薩裡‧博羅迪茨基 (Saree Boroditsky)，傑弗里斯 (Jefferies)。

Good morning. This is James on for Saree. I just wanted to touch on the SG&A. So gross margin was very strong, but SG&A as a percentage of sales increased. So could you please share kind of what drove the higher SG&A and whether this level should be expected kind of going forward?

早安.這是詹姆斯為紗麗 (Saree) 拍攝的。我只是想談談銷售、一般和行政費用 (SG&A)。因此毛利率非常高，但銷售、一般及行政費用佔銷售額的百分比卻增加了。那麼，您能否分享一下導致銷售、一般和行政費用增加的原因以及未來是否應該保持這一水平？

We laid out earlier in the year our plan for some very targeted incremental investments around SG&A, and that's what you're seeing with the SG&A percentage increase, specifically around some advanced engineering and some product development augmented by some additional resource around customer care and some commercial resources, both selling as well as marketing. So we laid that out. We're spending that. We're seeing benefits for it very strategically placed, and that's what's driving the incremental SG&A.

我們在今年稍早制定了針對銷售、一般和行政費用 (SG&A) 進行一些非常有針對性的增量投資的計劃，這就是您所看到的銷售、一般和行政費用百分比的增長，特別是圍繞一些先進工程和一些產品開發，以及圍繞客戶服務的一些額外資源和一些商業資源，包括銷售和營銷。所以我們把它制定出來了。我們正在花這些錢。我們看到了它在戰略位置上的優勢，這也是推動銷售、一般和行政費用增加的因素。

Yes. Overall, we would continue to expect -- as I just mentioned in the previous question, we'd expect to continue to lever our installed SG&A base. This is a period of investment to grow the top line and to make sure our new product pipelines are robust. But as we go forward, we will continue to lever our SG&A base. And I've been pretty vocal about our ambition here, which is to drive SG&A as a percentage of sales into the low 20s.

是的。總體而言，我們將繼續預期——正如我在上一個問題中提到的那樣，我們預計將繼續利用我們已安裝的銷售、一般和行政費用基礎。這是一個投資期，旨在增加收入並確保我們的新產品線強勁。但隨著我們不斷前進，我們將繼續利用我們的銷售、一般及行政費用基礎。我已經多次明確表達我們的目標，那就是將銷售、一般及行政費用佔銷售額的比例提高到 20% 出頭。

It won't happen this year, but we will continue to march towards that goal in the medium term.

今年不會實現這一目標，但我們將在中期繼續朝著這一目標邁進。

Great, thanks for the call, and I guess I just wanted to get like more color on this commentary that you guys put on the press release that like timing of the orders for 2025 season kind of impacted the volume. So can you kind of elaborate on these comments?

太好了，感謝您的來電，我只是想更詳細地了解一下你們在新聞稿中發表的評論，即 2025 年訂單的時間對訂單量產生了一定影響。那麼您能詳細說明一下這些評論嗎？

In terms of the order profile, what we typically see is Q4 is a strong order period for us as we get early buy orders coming in. This time last year, we had some additional orders come into Q4 related to some in-season activity, including the hurricane. As we saw in the first half of this year, seasonal orders were as expected, which was great to see. In aggregate, the order profile coming into the business was sound. We don't typically see a tremendous amount of orders in Q1, given the early buy orders that we had received in the previous quarter.

就訂單情況而言，我們通常會看到第四季度是我們訂單強勁的時期，因為我們會收到早期的購買訂單。去年這個時候，我們在第四季度收到了一些與季節性活動（包括颶風）相關的額外訂單。正如我們在今年上半年看到的那樣，季節性訂單符合預期，這是令人高興的。總體而言，該業務的訂單狀況良好。考慮到我們上一季收到的早期購買訂單，我們通常不會在第一季看到大量訂單。

But in Q2 this year, the order profile came in as expected, which was growth year-over-year. So that was good to see.

但今年第二季度，訂單情況如預期般成長。很高興看到這一點。

Great, thank you.

太好了，謝謝。

Jeff Hammond, KeyBanc.

傑夫·哈蒙德，KeyBanc。

Hey, good morning, guys. Can you maybe just talk about what you're seeing on sell-in versus sell-through and just how you're thinking about channel inventories as we kind of get into the second half of the season?

嘿，大家早安。您能否談談您對銷售量和銷售率的看法，以及在進入下半季時您對通路庫存的看法？

Yeah, I would say the sales -- Q2 -- well, let me step back. Q1, as you know, is kind of finishing off early buy. The year-round markets are obviously open for business. As you get into Q2 is when some of the early buy inventories get sold through, you're replenishing.

是的，我想說的是第二季的銷售額——好吧，讓我退一步來說。如您所知，Q1 是早期購買的結束階段。全年開放的市場顯然仍在營業。當進入第二季時，一些早期購買的庫存已經售出，您需要補貨。

And then obviously, as we work through this quarter, Q3 is when those inventories will be drawn down from a days-on-hand standpoint, which really allows both the channel and the dealer network to consider the early buy program, which we'll be publishing in the next several weeks and starting to deliver later this year into first quarter next year.

然後顯然，隨著我們完成本季的工作，從庫存天數的角度來看，第三季度這些庫存將會減少，這實際上使渠道和經銷商網絡都可以考慮早期購買計劃，我們將在接下來的幾週內發布該計劃，並在今年晚些時候到明年第一季開始交付。

In terms of what we see in terms of days on hand, we're very pleased with the progress and how things look there. I think that we're well positioned here in the upcoming quarter here in Q3. And we would expect inventories to be in a position for our channel partners and our dealers to participate at a historically normal level as we get into the early buy.

就我們現有的天數而言，我們對進展和情況感到非常滿意。我認為我們在即將到來的第三季已經做好了準備。我們預計，隨著我們進入早期購買階段，庫存將處於歷史正常水平，以便我們的通路合作夥伴和經銷商能夠參與其中。

So much more attention is paid today than maybe pre-COVID in partnering with the channel to make sure we've got the right product at the right time in the right locations, and I'm very pleased with how that's working to support the channel and the overall market.

與疫情之前相比，如今我們在與通路合作方面投入了更多精力，以確保我們在正確的時間在正確的地點提供正確的產品，我對這種合作如何支持通路和整個市場感到非常滿意。

Okay, and then Kevin, you, I think you had a question on new, but maybe just update us on what you're seeing on remodel upgrade. I know maybe you're expecting that to be most challenged. And then I think one of the distributors talked about, repair versus replace dynamic and more people repairing versus replacing equipment, just wondering if you're seeing the same.

好的，然後凱文，我想你對新內容有疑問，但也許只是向我們更新你在改造升級方面看到的情況。我知道也許您認為這將是最具挑戰性的。然後我認為其中一位經銷商談到了維修與更換的動態，以及更多的人維修而不是更換設備，只是想知道您是否看到了相同的情況。

Yeah, on that last point, we are seeing parts as a percentage on a year-over-year basis is up pretty meaningfully. I do think that, that points to the comment made last week around some of the aftermarket is looking to repair versus full scale -- sorry, to repair rather than replace. I think that is happening to some extent. In terms of remodel, Jeff, I think it's still a bit tempered kind of like the new construction.

是的，關於最後一點，我們看到零件的百分比與去年同期相比有顯著上升。我確實認為，這表明了上週關於部分售後市場正在尋求修復而不是全面修復的評論——抱歉，是修復而不是更換。我認為這種情況在某種程度上正在發生。就改造而言，傑夫，我認為它仍然有點像新建築。

It's still largely discretionary. As you know, the overall installed base is continuing to age, somewhere up around 24 years. So there is some kind of limit to how long it can be pushed to the right before some form of remodel takes place. And we think that, that is something that will improve as interest rates improve and housing market gets going again, that is a big part of the remodel.

它在很大程度上仍是自由裁量的。如您所知，整體安裝基礎正在持續老化，大約已達 24 年。因此，在進行某種形式的重塑之前，向右推的時間存在某種限制。我們認為，隨著利率提高和房地產市場再次活躍，這種情況將會改善，這是重塑的重要組成部分。

I think folks maybe before they're about to sell, they spend a little bit of money sprucing up the backyard in the pool or certainly when a new -- when someone buys into an existing home, they look to put their own personal touch on that pool that they bought with the home. And I think that, that's going to improve as existing home sales starts to increase hopefully in the near future.

我認為人們在出售房屋之前可能會花一點錢來裝飾後院的游泳池，或者當有人購買新房子時，他們希望在隨房而買的游泳池上留下自己的個人特色。我認為，隨著現有房屋銷售在不久的將來開始成長，這種情況將會改善。

Nigel Coe, Wolfe Research.

沃爾夫研究公司的奈傑爾·科伊。

Thanks. Good morning, everyone. Thanks for all the detail. Just want to follow up on Jeff's question on this repair dynamic because it's something that Pentair called out as well. How long has this been sort of developing? Is it something that's been a reaction to the latest price increases? And what are we talking about here, are we talking about reconditioning pumps? I'm just not sure I understand exactly, number one, the extent to this is happening.

謝謝。大家早安。感謝您提供的所有詳細資訊。我只是想跟進 Jeff 關於這個修復動態的問題，因為這也是 Pentair 提到的問題。這種情況已經發展多久了？這是對最近價格上漲的反應嗎？我們在這裡談論的是什麼？我們是在談論修復幫浦嗎？我只是不確定我是否完全理解了這一點，第一，這件事發生的程度。

And based on sort of prior history, when have we seen this before? And is this like a multiyear thing? Or is it something you see as very temporary.

根據以往的歷史，我們什麼時候見過這種情況？這是一件需要多年時間的事嗎？或者您認為這只是暫時現象。

I would say it's -- the parts volume has been a couple of quarters now of -- I mean, we would expect our parts business to always increase. It's another revenue stream in the overall business. But I would say the example that you gave is perhaps the easiest to understand or to explain. You can use the wet end of a pump and you can put a new motor on it or replace or repair a model -- sorry, a motor before you have to fully replace it.

我想說的是——零件銷量已經有幾個季度了——我的意思是，我們預計我們的零件業務將一直成長。這是整體業務的另一個收入來源。但我想說，您給的例子也許是最容易理解或解釋的。您可以使用泵的濕端，然後在其上安裝新電機或更換或修理一個型號 - 抱歉，是電機，然後才必須將其完全更換。

So that is being considered. I think -- I don't know if it's -- if I would say it's the most recent round of pricing increases. As you know, there's been pricing put into the marketplace due to inflation before the more recent tariffs, Nigel. So parts have increased in revenue for several quarters. But I'd say over the last few, we've seen perhaps a little bit more escalation in the year-on-year parts sales.

我們正在考慮這一點。我認為——我不知道這是否是——我是否可以說這是最近一輪的價格上漲。奈傑爾，正如你所知，在最近的關稅實施之前，由於通貨膨脹，市場上的定價已經改變了。因此零件的收入連續幾個季度都有所增加。但我想說，過去幾年，我們看到零件銷售額比去年同期可能略有成長。

Okay. So it sounds like some of the more higher-value parts, maybe a bit more repair activity there. And does that limit the ability to push through price next year? Do you expect next year to be a regular way 2%, 3% price increase on top of what we've seen? And then maybe if you could just address the reshoring of the China production to the US. How does the unit cost of a US-produced parts compare to the landed cost ex tariffs for the China stuff?

好的。因此聽起來，一些價值較高的零件可能需要更多的維修活動。這是否會限制明年的價格上漲能力？您是否預計明年的價格會在現有基礎上正常上漲 2% 或 3%？然後也許您可以談談將中國生產轉移回美國的問題。美國生產的零件的單位成本與中國產品的到岸成本（不含關稅）相比如何？

Yes, I'll let Eifion address the second part of the question. As for next year, we would expect to be able to push through a price increase based upon what we see in terms of inflation. We're starting to look at that pretty closely. We are seeing some of our input costs starting to feel a little bit of pressure around some of the metals. Copper is certainly out there in the headlines, and we consume that in our basket of inputs.

是的，我將讓 Eifion 來回答問題的第二部分。至於明年，我們預計能夠根據通貨膨脹的情況推動價格上漲。我們開始仔細研究這個問題。我們發現，某些金屬的投入成本開始受到一些壓力。銅當然是頭條新聞，而且我們在投入品籃子中也消耗銅。

But we would fully expect to be able to announce and to realize kind of price/cost-neutral increase next year, Nigel.

但我們完全希望明年能夠宣布並實現價格/成本中性增長，奈傑爾。

Yes. When it comes, Nigel, to the comparison of the cost to manufacture in the US versus China, it does vary by product. I would say the landed cost of Chinese manufactured goods at the current tariff levels versus the cost to manufacture that product in one of our US facilities is significantly more than it was 10 years ago.

是的。奈傑爾，說到美國和中國的製造成本比較，不同產品的成本確實有差異。我想說的是，按照目前的關稅水平，中國製成品的到岸成本與在我們美國工廠生產該產品的成本相比，要比十年前高得多。

And that now informs us, it makes much more sense to diversify our product manufacturing away from China and utilize our under-capacitated North American facilities. We've estimated the incremental COGS impact to reorientate the entirety of our supply chain away from China to be less than $10 million or approximately less than 1% of net sales.

現在，我們意識到，將我們的產品製造業務從中國轉移出去並利用我們產能不足的北美工廠是更有意義的。我們估計，將整個供應鏈從中國轉移出去對 COGS 的增量影響將不到 1,000 萬美元，或約佔淨銷售額的 1% 以下。

We will recover that margin impact as I mentioned, as we execute the operational mitigation programs, including investment into our North American facilities for greater automation. And we're moving down that line at a pace. As Kevin mentioned in his prepared remarks, by the end of this year, we expect greater than 90% of our North American product needs to be manufactured or sourced here in North America. But we've now determined that the differential between China and US manufacturing costs is de minimis enough for us to make these changes.

正如我所提到的，隨著我們執行營運緩解計劃，包括投資北美工廠以實現更高程度的自動化，我們將恢復利潤率的影響。我們正沿著這條路線穩步前進。正如凱文在其準備好的演講中提到的那樣，到今年年底，我們預計超過 90% 的北美產品需要在北美製造或採購。但現在我們已經確定，中國和美國製造成本之間的差異足夠小，足以讓我們做出這些改變。

That's great. Thank you.

那太棒了。謝謝。

Mike Halloran, Baird

麥克‧哈洛倫，貝爾德

Hey, good morning, everybody. It's Pez on for Mike. I wanted to take a moment to ask about what's going on in commercial. I know, Kevin, I think you said that your commercial sales as a percentage of revenue have doubled. Can you maybe talk about how much pull-through you're seeing of Hayward legacy products to ChlorKing customers and vice versa? And then more broadly, we're about a year out from close now.

嘿，大家早安。給邁克 (Mike) 穿上 Pez 鞋。我想花點時間詢問一下商業方面的情況。我知道，凱文，我想你說過，你的商業銷售額佔收入的百分比翻了一番。您能否談談 Hayward 傳統產品對 ChlorKing 客戶的轉換率是多少，反之亦然？從更廣泛的角度來看，現在距離結束還有大約一年的時間。

How are you thinking about the trajectory for that end market? And what types of level of outperformance do you think you're experiencing against the market at this point?

您如何看待該終端市場的發展軌跡？您認為目前您的表現相對於市場而言處於什麼水準？

Yeah, we're really excited about what the commercial business for us has become and what it can continue to grow or how it can continue to grow in the future, Pez. It's -- as you say, we are at the one-year mark overall, the combined business, and I say that because the ChlorKing team and our existing commercial team have become one under a common leader, and it has doubled kind of overall. Organically, I would say it's -- I don't know if we're -- if we disclose it publicly, but it's a meaningful pull-through and growth on what was our commercial organic business beforehand.

是的，我們對我們的商業業務的發展以及它能夠繼續成長或未來如何繼續成長感到非常興奮，Pez。正如您所說，我們的合併業務總體上已經一年了，我之所以這麼說，是因為 ChlorKing 團隊和我們現有的商業團隊在共同領導下已經合併為一個團隊，而且總體上已經翻了一番。從有機角度來說，我想說的是——我不知道我們是否——如果我們公開披露它，但這對我們之前的商業有機業務來說是一個有意義的拉動和增長。

In terms of aspirations, commercial was kind of a low to mid-single-digit part of our business. As we round out 2025, we're anxious to see if we can get that to double-digit overall part of our mix. And overall, we're kind of pushing or we're striving for something in the teens overall.

就期望而言，商業在我們的業務中所佔比例大約在個位數到中位數之間。隨著 2025 年的臨近，我們迫切希望看到我們能否將這一比例提升至兩位數。總體而言，我們正在推動或爭取在青少年時期取得一些成就。

I think the size of the commercial market, our presence there, our team, the relationships, the product line that we're building out, I think, gives us all the ingredients to be able to continue outperforming what we see in terms of commercial growth overall. As I've said many times, it was not a focal point of the business before the last few years, and we're really excited about what the future holds for us in this commercial space.

我認為商業市場的規模、我們在那裡的存在、我們的團隊、關係以及我們正在建立的產品線，為我們提供了所有要素，使我們能夠繼續超越我們所看到的整體商業成長。正如我多次說過的，在過去幾年之前，這並不是我們業務的重點，我們對這個商業領域的未來感到非常興奮。

Excellent. No, I appreciate the color. And then I guess switching gears, I'll ask the required questions since nobody's got to it yet. Balance sheet is in a really healthy shape. Maybe talk about how you're thinking about the M&A pipeline, the actionability and if there's particular product categories that are sticking out as attractive in the current backdrop.

出色的。不，我很欣賞這個顏色。然後我想換個話題，我會問一些必要的問題，因為還沒有人問到這個問題。資產負債表狀況非常健康。也許可以談談您如何看待併購管道、可操作性，以及在當前背景下是否有特別有吸引力的產品類別。

Yeah, we're really excited to be where we said we would be here with this kind of 2.1 times net debt. I would say our priorities remain as we've laid out, to continue funding the organic first and foremost, whether that's new product development or with some of the reshoring or onshoring of some production that was in China into our U.S. facilities, that creates the opportunity for us to make some incremental investments around some manufacturing assets and some automation. So that's going to continue to be our top priority.

是的，我們真的很高興能夠實現我們所謂的淨債務 2.1 倍的目標。我想說的是，我們的優先事項仍然和我們已經列出的一樣，繼續首先為有機業務提供資金，無論是新產品開發，還是將部分在中國的生產轉移回我們的美國工廠，這為我們創造了機會，讓我們能夠圍繞一些製造資產和一些自動化進行一些增量投資。因此這將繼續是我們的首要任務。

But second is what you asked around M&A. We have a healthy pipeline of opportunities, ongoing discussions and information gathering. There's opportunities, both domestic and international for some bolt-ons around our core residential business.

但第二個問題是你詢問的有關併購的問題。我們擁有良好的機會管道、持續的討論和資訊收集。在國內和國際上，我們都有機會圍繞核心住宅業務進行一些附加開發。

As we just spoke around ChlorKing, that's going to continue to get resources and interest. Nothing for us to talk about publicly at this point, but know that it's a healthy pipeline and good conversations, good opportunities that we're weighing right now from the M&A standpoint.

正如我們剛才談到的 ChlorKing，它將繼續獲得資源和興趣。目前我們沒有什麼可以公開談論的，但要知道，這是一個健康的管道和良好的對話，我們現在正在從併購的角度權衡良好的機會。

Yeah, I would just add, as you know, we are very pleased again with what we've been able to do with the balance sheet getting down to 2.1 times. At the low end of our communicated range of 2 to 3x, it's a great tick mark against a lot of team members that have worked diligently to improve the balance sheet to that level. We remain dedicated on our capital allocation policy to think about reinvestment into the organic side of the business first.

是的，我只想補充一點，如你所知，我們對能夠將資產負債表降至 2.1 倍感到非常高興。在我們溝通的 2 到 3 倍範圍的低端，對於許多努力將資產負債表改善到這一水平的團隊成員來說，這是一個很好的標記。我們仍然致力於我們的資本配置政策，首先考慮對業務的有機方面進行再投資。

Our CapEx took a tick up in the first half, and we'll continue to invest both in automation and other initiatives around our manufacturing and supply footprint. And just to clarify on my previous remark, even though we are reorientating our supply chain away from China to service North America, we'll continue to use that Chinese facility that we have, a great team there to support our Rest of World business. As Kevin mentioned, M&A remains a core thematic for this business. We are looking at opportunities, and we'll continue to update you as those opportunities may develop.

我們的資本支出在上半年有所增加，我們將繼續在自動化以及製造和供應足跡周圍的其他舉措方面進行投資。為了澄清我先前的評論，儘管我們正在將供應鏈從中國轉移到服務北美，但我們將繼續使用我們現有的中國工廠和一支優秀的團隊來支持我們在世界其他地區的業務。正如凱文所說，併購仍然是這項業務的核心主題。我們正在尋找機會，並且會隨著這些機會的發展而持續向您通報最新情況。

And then lastly, return to shareholder. Given the very strong cash profile characteristics of this organization, we will have the opportunity to return to shareholder, even satisfying organic and inorganic activities. And as we mentioned in the call, we have instituted the next repurchase authorization for $450 million over the next 3 years. And as the opportunities arise, we'll execute if we feel it's appropriate to do so. So again, super pleased with what we've been able to do, and we look forward to continued improvements.

最後，回報股東。鑑於該組織非常強大的現金狀況特徵，我們將有機會回報股東，甚至滿足有機和無機活動。正如我們在電話會議中提到的那樣，我們已經制定了未來 3 年內 4.5 億美元的回購授權。當機會出現時，如果我們認為合適，我們就會去執行。所以，我們對我們所做的一切感到非常滿意，並期待繼續改進。

Thanks everybody. I'll pass it on.

謝謝大家。我會傳達的。

Rafe Jadrosich, Bank of America.

美國銀行的 Rafe Jadrosich。

Hey, hi, good morning. It's Rafe. Thanks for taking my questions. I wanted to just follow up on the trends that you saw through the quarter on sell-out. I think you mentioned there was an improvement in June. So just wondering what you saw in terms of end market demand through the quarter, what maybe drove that improvement in June? And is there any difference between discretionary and nondiscretionary in terms of the more recent trends?

嘿，你好，早安。是雷夫。感謝您回答我的問題。我只是想追蹤本季銷售情況的趨勢。我認為您提到過六月情況有所改善。所以我只是想知道您在本季看到了什麼終端市場需求，是什麼推動了 6 月的改善？從最近的趨勢來看，自由裁量權和非自由裁量權之間有區別嗎？

I don't think we would point to any meaningful change in trend. As we look back on Q2, I know some other public comments mirror this. April was a pretty strong sell-through into the marketplace. Kind of May, mid-May, late May into early June was not great, and then it really did pick up kind of latter half of June. And while we're not talking about the current quarter, July has kind of carried through with some of those trends. So we are feeling really positive about what the pull-through into the marketplace is.

我認為我們不會看到任何有意義的趨勢變化。當我們回顧第二季度時，我知道其他一些公眾評論也反映了這一點。四月份市場銷售相當強勁。五月、五月中旬、五月底到六月初的情況都不太好，但六月底的情況才真正改善。雖然我們談論的不是當前季度，但七月還是延續了部分趨勢。因此，我們對於進入市場的效果感到非常樂觀。

Maybe from an OEM standpoint, weather doesn't impact an OEM quite like it may a channel or a retailer. The quarter in general was extremely hot and extremely wet, except for maybe the West Coast in terms of precipitation. So I think that could have had some impact, at least the precipitation in the mid part of the quarter there. As I said earlier, we are seeing permit data improve. It's still not positive on a year-over-year basis, but the rate of permits filed has actually improved through the second quarter.

也許從 OEM 的角度來看，天氣對 OEM 的影響不像對通路或零售商的影​​響那麼大。本季整體極為炎熱、潮濕，西海岸的降水量可能有所減少。所以我認為這可能會產生一些影響，至少對本季中期的降水有影響。正如我之前所說，我們看到許可數據正在改善。與去年同期相比，申請許可證的數量仍然不太樂觀，但第二季度的許可證申請率實際上有所提高。

So I think that, that could well play into some of the pull-through, Rafe, around new construction or some remodeling activity.

因此，我認為，這很可能對新建築或一些改造活動產生一些拉動動作用，Rafe。

That's helpful. And then can you talk about the market share versus the industry, how you think you're performing? And then also like some of the SG&A investments that you've talked about, like where do you see opportunity to gain share? Where do you feel like you're under-penetrated? And if you could just update us on those initiatives.

這很有幫助。然後您能談談市場佔有率與產業狀況嗎，您認為您的表現如何？然後也像您談到的一些銷售、一般和行政費用投資一樣，您認為在哪裡可以獲得份額？您覺得自己在哪些方面還沒有得到充分的了解？請您向我們介紹這些舉措。

Yeah, II mean I'd say from a share standpoint, we feel good about the pull-through and our performance overall. In terms of sales out, we believe we are net positive. Share gains in this industry are hard-earned through relationship building, service levels, new product introduction, availability, et cetera. And I think we're doing -- the team is doing a good job across all those different elements, Rafe.

是的，我的意思是從股票的角度來看，我們對整體的成長和表現感到滿意。就銷售量而言，我們相信我們的淨利潤為正。這個行業的份額成長是透過建立關係、提高服務水準、推出新產品、可用性等方式來獲得的。我認為我們正在做——團隊在所有這些不同方面都做得很好，Rafe。

In terms of where we think our opportunities lie, we've been pretty open in discussing where we think we're under-punching our weight historically. And we're targeting some of those regions with some incremental investment, whether it's with some of our hubs that we've spoken about for service and installation training to some additional field sales and customer care resources to some targeted marketing programs.

就我們認為我們的機會在哪裡而言，我們一直非常公開地討論我們認為我們在哪些方面的歷史不足。我們正針對其中一些地區進行一些增量投資，無論是透過我們談到的一些服務和安裝培訓中心，還是一些額外的現場銷售和客戶服務資源，還是一些有針對性的行銷計劃。

So I'd say that's really what's driving some of the very targeted SG&A investments that both Eifion and I have spoken about on the call here this morning.

所以我想說，這才是真正推動一些非常有針對性的銷售、一般和行政費用投資的因素，我和 Eifion 今天早上在電話會議上都談到了這一點。

Thank you. At this time, I would like to turn the call back over to Kevin Holleran for closing remarks.

謝謝。現在，我想將電話轉回 Kevin Holleran 做最後發言。

Thanks, Latanya. In closing, I'd like to sincerely thank our dedicated employees and valued partners around the world. Your hard work, passion and unwavering commitment are the driving force behind our success. Please contact our team if you have any follow-up questions, and we look forward to talking to you again on the third quarter earnings call. Thank you for your interest in Hayward.

謝謝，拉塔尼亞。最後，我要真誠感謝我們世界各地敬業的員工和尊貴的合作夥伴。您的辛勤工作、熱情和堅定不移的承諾是我們成功的驅動力。如果您有任何後續問題，請聯絡我們的團隊，我們期待在第三季財報電話會議上再次與您交談。感謝您對 Hayward 的關注。

And Latanya, you can now end the call.

拉塔尼亞，你現在可以結束通話了。

Thank you. This does conclude today's teleconference. You may disconnect your lines at this time. Thank you for your participation and have a great day.

謝謝。今天的電話會議到此結束。現在您可以斷開線路。感謝您的參與並祝您有個愉快的一天。