Hillenbrand Inc (HI) 2024 Q4 法說會逐字稿

Greetings and welcome to the Hillenbrand’s fourth-quarter fiscal year 2024 earnings call.

歡迎參加 Hillenbrand 的 2024 財年第四季財報電話會議。

(Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce Sam Mynsberge, Vice President, Investor Relations. Thank you, you may begin.

（操作員指示）謹此提醒，本次會議正在錄製中。現在我很高興向大家介紹投資者關係副總裁 Sam Mynsberge。謝謝，你可以開始了。

Thank you, operator, and good morning everyone. Welcome to Hillenbrand's fourth quarter and fiscal year-end 2024 earnings call. I'm joined by our President and CEO, Kim Ryan and our Senior Vice President; and CFO, Bob VanHimbergen. I'd like to direct your attention to the supplemental slides posted on our IR website that will be referenced on today's call.

謝謝接線員，大家早安。歡迎參加 Hillenbrand 第四季和 2024 財年終收益電話會議。我們的總裁兼執行長 Kim Ryan 和我們的高級副總裁也加入了我的行列。財務長鮑伯‧範‧希姆伯格 (Bob VanHimbergen)。我想請您注意我們 IR 網站上發布的補充幻燈片，今天的電話會議將引用這些幻燈片。

Turning to slide 3, please note that our comments may contain certain forward-looking statements that are subject to the Safe Harbor provisions of the securities laws. These statements are not guarantees of future performance, and our actual results could differ materially.

轉向投影片 3，請注意，我們的評論可能包含某些受證券法安全港條款約束的前瞻性陳述。這些陳述並不是對未來績效的保證，我們的實際結果可能會有重大差異。

Also, during the course of this call, we will be discussing our results on a continuing operations basis, which excludes any impact from the discontinued operations of Batesville as well as certain non-GAAP operating performance measures, including organic comparisons for our segments, which exclude the impacts from acquisitions, divestitures, and foreign currency exchange rates.

此外，在本次電話會議期間，我們將在持續經營的基礎上討論我們的業績，其中不包括貝茨維爾已終止經營的任何影響以及某些非公認會計原則經營業績指標，包括我們部門的有機比較，其中排除收購、剝離和外幣匯率的影響。

I encourage you to review the appendix in slide 3 of the earnings call presentation, which can be found on our website as well as our 10-K which will be filed later this month, for a deeper discussion of non-GAAP information, forward-looking statements, and the risk factors that could impact our actual results.

我鼓勵您查看收益電話會議演示文稿幻燈片 3 中的附錄（可以在我們的網站上找到）以及將於本月晚些時候提交的 10-K，以更深入地討論非 GAAP 信息，前瞻性-查看聲明以及可能影響我們實際結果的風險因素。

Finally, as a reminder on August 1, Schenck Process Food and Performance Materials business was rebranded under our existing Coperion brand, but will be referred to as FPM throughout today's call. With that, I'll now turn the call over to Kim.

最後，作為 8 月 1 日的提醒，申克工藝食品和高性能材料業務已在我們現有的科倍隆品牌下重新命名，但在今天的電話會議中將被稱為 FPM。現在，我將把電話轉給 Kim。

Thanks, Sam, and good morning, everyone. Thank you for joining us today. I'd like to start by recognizing our Hillenbrand associates for their dedication and determination throughout the year. While we face demand pressure from persistent macroeconomic challenges, our teams rose to the occasion by accelerating initiatives to optimize our cost-structure and drive trade-working capital efficiencies, by diligently managing our discretionary costs, and by delivering stronger-than-planned FPM margins through the execution of our integration.

謝謝，山姆，大家早安。感謝您今天加入我們。首先，我要對 Hillenbrand 員工全年的奉獻精神和決心表示認可。雖然我們面臨持續的宏觀經濟挑戰帶來的需求壓力，但我們的團隊透過加快優化成本結構和提高貿易營運資本效率的舉措、努力管理可自由支配成本以及提供高於計劃的FPM 利潤來應對這一挑戰。

Guided by our purpose to shape what matters for tomorrow, we continue to pursue excellence, collaboration, and innovation for our customers, our colleagues, and our communities. And I'm truly grateful for a team that embodies that purpose each and every day.

我們以塑造明天的目標為指導，繼續為我們的客戶、同事和社區追求卓越、協作和創新。我真的很感謝一支每天都體現這目標的團隊。

As we've completed our first full year as a pure-fly global industrial company, we remain confident about our future. Throughout our transformation, we've established a portfolio of leading brands and highly engineered processing technologies, serving large and attractive end-markets with long-term growth that's driven by an expanding global middle-class and an increasing focus on sustainable solutions.

作為一家純粹的全球工業公司，我們已經完成了第一個完整的年度，我們對未來仍然充滿信心。在我們的轉型過程中，我們建立了一系列領先品牌和高度工程化的加工技術，為龐大且有吸引力的終端市場提供服務，並在不斷擴大的全球中產階級和對永續解決方案的日益在關注的推動下實現長期成長。

The breadth of our product offering, world-class applications engineering and process technology expertise, and exceptional systems integration capabilities, enable us to offer compelling value propositions to our customers.

我們的產品範圍廣泛、世界一流的應用工程和工藝技術專業知識以及卓越的系統整合能力，使我們能夠為客戶提供令人信服的價值主張。

We are able to deliver the highest quality and highest output equipment and systems anywhere in the world, and then leverage our global network of service professionals to maintain, upgrade, and modernize this equipment to maximize its value for our customers throughout its life cycle. This fosters strong enduring partnerships and positions us as a preferred and trusted supplier for our customer's future needs.

我們能夠在世界任何地方提供最高品質和最高產量的設備和系統，然後利用我們的全球服務專業人員網路來維護、升級和現代化這些設備，以在其整個生命週期中為我們的客戶實現價值最大化。這促進了牢固持久的合作夥伴關係，並使我們成為滿足客戶未來需求的首選且值得信賴的供應商。

While demand for large polyolefin systems and aftermarket parts and service was robust for the year, orders from mid-size equipment were more challenged than originally expected as uncertainty around inflation, interest rates, geopolitical events, and global economic activity slowed capital investments.

儘管今年對大型聚烯烴系統以及售後零件和服務的需求強勁，但由於通膨、利率、地緣政治事件和全球經濟活動的不確定性減緩了資本投資，中型設備的訂單比最初預期面臨的挑戰更大。

Project quoting pipelines remained very active and test labs remain full, but many of our customers significantly delayed their capital investment decisions across several key end markets. In response, we executed a number of strategic initiatives during the year to help mitigate the impact to the bottom line. We will continue to evaluate and implement additional actions as necessary until the demand environment normalizes.

專案報價管道仍然非常活躍，測試實驗室仍然滿員，但我們的許多客戶大大推遲了在幾個關鍵終端市場的資本投資決策。為此，我們在這一年中實施了多項策略性舉措，以幫助減輕對利潤的影響。我們將繼續評估和實施必要的額外行動，直到需求環境正常化。

Now, touching on our Q4 performance, we delivered revenue of $838 million, up 10% in total, but down 1% organically, though this reflects an improvement from prior quarter. This was slightly above our expectations coming into the quarter, supported by another record level of aftermarket performance.

現在，談到我們第四季的業績，我們實現了 8.38 億美元的收入，整體成長了 10%，但有機下降了 1%，儘管這反映了較上一季的改善。這略高於我們對本季的預期，這得益於售後市場表現再創新高的水平。

Teams in both segments also did an excellent job executing orders from backlog. With the incremental volume and continued cost discipline, our adjusted earnings per share of $1.01 was just above the high end of our previous guidance.

這兩個部門的團隊在執行積壓訂單方面也表現出色。隨著產量的增加和持續的成本控制，我們調整後的每股收益為 1.01 美元，略高於我們先前指導的上限。

Additionally, our ongoing focus on working capital and cash optimization resulted in $167 million of operating cash flow in the quarter, allowing us to reduce our leverage to 3.3 times, down sequentially from 3.5 times. This underlines our stated priority of debt pay down.

此外，我們持續關注營運資本和現金優化，導致本季營運現金流達到 1.67 億美元，使我們能夠將槓桿率從 3.5 倍降至 3.3 倍。這強調了我們所聲明的優先償還債務。

For the full year, consolidated revenue increased 13%, primarily driven by the FPM acquisition and strong aftermarket growth. Organically, total revenue was down 5%. Organic revenue in our advanced process solutions or APS segment was down 2%, reflecting customer decision delays on capital equipment orders, which more than offset record aftermarket performance.

全年綜合收入成長 13%，主要得益於 FPM 收購和售後市場強勁成長。總體而言，總收入下降了 5%。我們的先進製程解決方案或 APS 部門的有機收入下降了 2%，反映出客戶對資本設備訂單的決策延遲，這遠遠抵消了創紀錄的售後市場表現。

Revenue in our molding technology solutions or MTS segment declined 11%, primarily driven by lower backlog entering the year for our injection molding equipment and ongoing soft demand for hot runners globally, but particularly within North America. While we remain cautious in our demand outlook over the near term, I'm pleased with our teams executed to finish the year.

我們的成型技術解決方案或 MTS 部門的收入下降了 11%，主要是由於今年我們的注塑設備積壓訂單減少以及全球（尤其是北美）對熱流道的需求持續疲軟。雖然我們對近期的需求前景保持謹慎，但我對我們的團隊在今年完成的工作感到滿意。

I'll now provide a little more color on the factors driving performance in each of our segments. Starting with MTS, we were pleased to see orders improve once again on both year-over-year and a sequential basis in the fourth quarter, primarily driven by injection molding equipment demand. Although this progress is encouraging, we have not yet seen enough demand growth to call this an inflection in the overall market.

現在，我將詳細介紹每個細分市場中推動績效的因素。從 MTS 開始，我們很高興看到第四季度的訂單年比和環比再次有所改善，這主要是由注塑設備需求推動的。儘管這一進展令人鼓舞，但我們尚未看到足夠的需求成長，不足以將其稱為整個市場的轉折點。

India, where we are a leading provider of injection molding equipment, continues to perform well. And China hot runner demand improved year-over-year and sequentially for the second consecutive quarter, though it remained low relative to historical levels. As I mentioned, we saw pockets of increased investment in the quarter for injection molding equipment in the US and India, however, hot runner demand continues to be relatively flat globally.

我們是印度領先的注塑設備供應商，該國的表現持續良好。中國熱流道需求連續第二季同比和環比有所改善，但相對於歷史水準仍較低。正如我所提到的，我們看到本季美國和印度的注塑設備投資增加，但全球熱流道需求仍然相對穩定。

Our fiscal 2025 outlook for MTS assumes demand will remain relatively consistent with 2024. We expect relatively stronger injection molding performance, which comes at a lower relative margin and continued price cost pressure is expected to partially offset productivity and the incremental $12 million of benefits from the previously announced restructuring program. In addition, we will continue to be disciplined on all discretionary costs.

我們對MTS 的2025 財年展望假設需求將與2024 年保持相對一致。收益。此外，我們將繼續遵守所有可自由支配費用的紀律。

Turning to APS. Orders were up sequentially this quarter, but overall capital equipment demand remained soft for mid-sized equipment, though generally in line with what we expected coming into the quarter. As I mentioned, coal pipelines and test lab demand remains robust, but we have experienced significant delays in customer decisions throughout the year across key end markets, such as engineering plastics, recycling, pet food, and other specialty materials.

轉向 APS。本季訂單環比增加，但中型設備的整體資本設備需求仍然疲軟，儘管整體符合我們對本季的預期。正如我所提到的，煤炭管道和測試實驗室的需求仍然強勁，但全年我們在工程塑膠、回收、寵物食品和其他特殊材料等關鍵終端市場的客戶決策方面都經歷了嚴重延遲。

As a result, backlog is down year-over-year and given the longer lead time nature of projects in APS, this is expected to put pressure on revenue performance in fiscal 2025. But generally in line with the expectations we discussed on last quarter's call.

因此，積壓訂單同比下降，並且考慮到 APS 專案的交付時間較長，預計這將對 2025 財年的收入表現構成壓力。

Capital equipment investments remained subdued during the year, but we continued to see solid demand for aftermarket, particularly for larger modernization projects. And we're making great strides in driving aftermarket performance within our newer food businesses.

今年資本設備投資仍然低迷，但我們仍然看到售後市場的強勁需求，特別是大型現代化項目。我們在推動新食品業務的售後市場表現方面取得了長足進展。

Our focus on aftermarket, coupled with the strength of our installed base, resulted in consecutive years of double-digit organic expansion in aftermarket. While we expect growth rates to moderate going forward, we anticipate this more stable, highly profitable part of our business will continue to perform well in 2025.

我們對售後市場的關注，加上我們安裝基礎的實力，導致售後市場連續多年實現兩位數的有機擴張。雖然我們預計未來成長率將放緩，但我們預計我們業務中這一更穩定、高利潤的部分將在 2025 年繼續表現良好。

Finally, a key focus area. This year has been the continued execution of our integration program which progressed well throughout the year, we are pleased by the enhancements we've made across the combined food health and nutrition portfolio, including alignment of go to market strategies, standardization of pricing practices, and approved operational efficiencies as exemplified by the strong margin performance we've delivered in this part of the business.

最後，一個重點關注領域。今年我們繼續執行我們的整合計劃，該計劃全年進展順利，我們對我們在食品健康和營養組合組合方面所做的改進感到高興，包括市場戰略的調整、定價實踐的標準化、並認可運營效率，我們在這部分業務中實現的強勁利潤率表現就是例證。

We remain on track to achieve our $30 million run rate cost savings. And with significant portion of that already realized, we have additional opportunities still ahead of us. While lower backlog coming into the year is expected to be a headwind in 2025, we continue to focus on accelerating initiatives around cost structure optimization, strategic pricing and targeted commercial opportunities.

我們仍有望實現 3000 萬美元的營運成本節省。由於其中很大一部分已經實現，我們仍然面臨著更多的機會。儘管今年積壓訂單減少預計將成為 2025 年的阻力，但我們將繼續專注於加速圍繞成本結構優化、策略定價和有針對性的商業機會的舉措。

We remain very confident in the strategic fit of these assets as we leverage our systems expertise, global footprint and operating model capabilities across the APS segment. We believe there is a clear path to achieving continued margin expansion and solid topline growth once the demand environment normalizes.

我們對這些資產的策略契合度仍然充滿信心，因為我們利用我們在 APS 領域的系統專業知識、全球足跡和營運模式能力。我們相信，一旦需求環境正常化，就有一條明確的道路可以實現利潤率的持續擴張和營收的穩健成長。

Now, before I turn the call over to Bob, I'd like to highlight some recent updates related to our Board of directors and our sustainability disclosures. We are committed to the development of our Board and ensuring the skill sets of our directors aligned with the strategic direction and priorities of the company.

現在，在將電話轉給鮑伯之前，我想強調一下與我們的董事會和永續發展揭露相關的一些最新動態。我們致力於董事會的發展，並確保董事的技能與公司的策略方向和優先事項保持一致。

Last month, we announced the election of Joseph lower to our board. Joe is a seasoned financial executive with deep skill set in finance operations, strategic planning, capital markets and business development. We are excited for Joe to join the board on December 1, and look forward to leveraging his expertise as we work together to deliver long term value for our shareholders.

上個月，我們宣布選舉約瑟夫擔任董事會成員。喬是一位經驗豐富的財務主管，在財務營運、策略規劃、資本市場和業務發展方面擁有深厚的技能。我們很高興 Joe 於 12 月 1 日加入董事會，並期待在我們共同努力為股東創造長期價值時利用他的專業知識。

In addition, we announced the establishment of vice chairperson roles for two key committees, the audit committee and the nominating and corporate governance or NCG committee. Given Mr. Lower's extensive financial background. He has been named as the vice chairperson of the audit committee and current director Inderpreet Sawhney has been named as vice chairperson of the NCG committee.

此外，我們也宣佈為兩個關鍵委員會（審計委員會以及提名和公司治理或 NCG 委員會）設立副主席職位。鑑於Lower 先生廣泛的財務背景。他被任命為審計委員會副主席，現任董事 Inderpreet Sawhney 被任命為 NCG 委員會副主席。

Finally, in October, we published our first task force on climate related financial disclosures or PCFD report. This report demonstrates our continued transparency and sustainability disclosures and progress towards meeting the global regulatory requirements. I'm proud of the team's efforts in achieving this milestone with that. I'll now turn the call over to Bob to discuss our financials and our outlook.

最後，我們在 10 月發布了第一個氣候相關財務揭露工作小組或 PCFD 報告。本報告展示了我們持續的透明度和永續性揭露以及在滿足全球監管要求方面取得的進展。我為團隊為實現這一里程碑所做的努力感到自豪。我現在將把電話轉給鮑勃，討論我們的財務狀況和前景。

Thanks Kim and good morning, everyone. Turning to our consolidated fourth quarter performance on slide 5, we delivered revenue of $838 million an increase of 10% overall compared to the prior year due to the FPM acquisition, favorable pricing and strengthened EPS aftermarket parts and services, which was partially offset by lower volume for midsize capital equipment across a variety of end markets.

謝謝金，大家早安。轉向幻燈片5 中我們第四季度的綜合業績，我們實現了8.38 億美元的收入，與上一年相比總體增長了10%，這得益於FPM 收購、有利的定價以及EPS 售後零件和服務的增強，但部分收入被較低的收入所抵消。

Organically, revenue is down 1%. Adjusted EBITDA of $144 million decreased 2% or 13% organically due to cost inflation and more volume partially offset by pricing and cost actions including savings from the MTS restructuring program.

從有機角度來看，收入下降了 1%。調整後 EBITDA 為 1.44 億美元，有機下降 2% 或 13%，原因是成本上漲，而銷售增加則部分被定價和成本行動（包括 MTS 重組計劃節省的成本）所抵消。

We report a GAAP net income of $12 million down from $17 million in the prior year. Primarily due to an increase in business integration costs and higher tax expense related to corporate restructuring actions partially offset by a gain in the quarter related to the previously announced sale leaseback transaction.

我們報告的 GAAP 淨利潤為 1200 萬美元，低於前一年的 1700 萬美元。主要是由於業務整合成本的增加以及與企業重組行動相關的稅收費用增加，部分被先前宣布的售後回租交易相關的本季度收益所抵消。

Adjusted net income of $71 million resulted in earnings per share of a $1, which was slightly above our expectations coming into the quarter, but down 11% compared to the prior year as cost inflation or organic volume and an increase in interest expense, more than offset the incremental contribution of the FPM acquisition pricing and cost actions.

調整後淨利潤為 7,100 萬美元，每股收益為 1 美元，略高於我們對本季度的預期，但與上一年相比下降了 11%，原因是成本通膨或有機數量以及利息支出的增加超過抵銷了FPM 收購定價和成本行動的增量貢獻。

Our adjusted effective tax rate in the quarter was 27.4%. We generated cash flow from operations of $167 million in the quarter. An increase of 93 million over the prior year, primarily due to trade working capital benefits and cash received related to the settlement of our US pension plans. Capital expenditures were $13 million in the quarter.

本季調整後的有效稅率為 27.4%。本季我們的營運現金流為 1.67 億美元。比上年增加 9,300 萬，主要是由於貿易營運資金收益和與我們的美國退休金計畫結算相關的收到的現金。本季資本支出為 1300 萬美元。

Now moving to segment performance starting with APS on slide 6. APS revenue for the quarter of $591 million increased 15% compared to the prior year. Primarily driven by the FPM acquisition. Organic revenue decreased 2% year over year as favorable pricing and record aftermarket revenue was more than offset by lower capital equipment volume.

現在從幻燈片 6 上的 APS 開始細分效能。該季度 APS 營收為 5.91 億美元，較上年同期成長 15%。主要由 FPM 收購推動。有機收入年減 2%，原因是有利的定價和創紀錄的售後收入被資本設備數量的減少所抵消。

Adjusted EBITDA of $117 million was essentially flat year over year. But down 14% organically as cost inflation and lower volume, more than offset pricing and synergies adjusted even a margin of 19.8% was down 300 basis points over the prior year. But at the high end of our expectations for the quarter.

調整後 EBITDA 為 1.17 億美元，與去年同期基本持平。但由於成本通膨和銷售下降，抵銷定價和綜效的影響，有機下降了 14%，甚至 19.8% 的利潤率也比前一年下降了 300 個基點。但處於我們對本季預期的高端。

As Kim mentioned orders improved sequentially but remained soft overall as we anticipated backlog of $1.7 billion decreased 10% compared to the prior year and 3%. Sequentially, order pipelines remain healthy across most of our key markets and regions. But as we discussed previously, customer decision timing continues to be uncertain in this macro environment.

正如 Kim 所提到的，訂單量環比有所改善，但總體仍疲軟，因為我們預計積壓訂單量為 17 億美元，較上年減少 10%，比上年減少 3%。因此，我們大多數主要市場和地區的訂單管道保持健康。但正如我們之前討論的，在這種宏觀環境下，客戶決策時機仍然不確定。

Now turning to MTS on slide7, Q4 revenue of $247 million was essentially flat to the prior year. And ahead of our expectations due to better than expected execution of backlog and higher orders. Adjusted EBITDA of $42 million decreased 8% largely driven by cost inflation and unfavorable product mix, partially offset by the restruction and benefit and other cost actions.

現在轉向幻燈片 7 上的 MTS，第四季營收為 2.47 億美元，與前一年基本持平。由於積壓訂單的執行情況優於預期且訂單量增加，因此超出了我們的預期。調整後 EBITDA 為 4,200 萬美元，下降 8%，主要是由於成本通膨和不利的產品組合，但部分被重組和福利及其他成本行動所抵消。

Adjusted EBITDA margin of 17% decreased 150 basis points compared to the prior year. But was generally in line with expectations. Backlog of $231 million decreased 1% compared to the prior year, and 3% sequentially, orders were up 10% year over year and 5% sequentially primarily driven by injection molding equipment while hot runner demand remains muted.

調整後 EBITDA 利潤率為 17%，較前一年下降 150 個基點。但整體符合預期。積壓訂單量為 2.31 億美元，與上年相比下降 1%，環比下降 3%，訂單年增 10%，環比增長 5%，這主要是由注塑設備推動的，而熱流道需求仍然低迷。

Although this quarter's order slightly exceeded our expectations. External market indicators such as machine realization and mold making activity remain relatively soft and we have yet to see signs of a sustained recovery in demand.

雖然本季的訂單稍微超出了我們的預期。機器實現和模具製造活動等外部市場指標仍然相對疲軟，我們尚未看到需求持續復甦的跡象。

The team remains focused on driving productivity and managing discretionary costs to ensure we are well positioned to return to profitable growth once the demand environment improves. Now, I'll briefly cover full year results on slide 8, consolidated revenue of $3.18 billion increased 30% over the prior year but decreased 5% organically as favorable pricing record aftermarket revenue and an increase in revenue for large polyolefin systems were offset by the persistent order delays for midsize capital equipment.

團隊仍專注於提高生產力和管理可自由支配成本，以確保一旦需求環境改善，我們就能恢復獲利成長。現在，我將在幻燈片8 上簡要介紹全年業績，綜合收入為31.8 億美元，比上年增長30%，但有機下降5%，因為有利的定價記錄售後市場收入和大型聚烯烴系統的收入成長被中型資本設備的訂單持續延遲。

Adjusted EBITDA of $512 million increased 6% but was down 12% organically compared to the prior year as lower volume and cost inflation. More than offset pricing restructuring benefits synergies and productivity. We reported GAAP net loss of $230 million down from net income of $107 million in the prior year, largely driven by the noncash impairment charge taken in Q3 related to our MTS segment.

調整後 EBITDA 為 5.12 億美元，成長 6%，但由於產量和成本通膨下降，與前一年相比有機下降 12%。抵銷定價重組帶來的好處不僅僅是協同效應和生產力。我們報告的 GAAP 淨虧損為 2.3 億美元，低於上一年淨利潤 1.07 億美元，這主要是由於第三季與我們的 MTS 部門相關的非現金減損費用造成的。

Ajusted net income of $234 million resulted in adjusted earnings per share of $3.32, a decrease of 6% compared to the prior year. That was lower organic volume, cost inflation, and an increase in interest expense will more than offset the impact of the FPM acquisition pricing and cost actions.

調整後淨利為 2.34 億美元，調整後每股收益為 3.32 美元，比上年下降 6%。也就是說，較低的有機銷售、成本通膨和利息支出的增加將足以抵消 FPM 收購定價和成本行動的影響。

The adjusted effective tax rate for the year was 28.1% which was consistent with our expectations. We generated full year operating cash flow of $191 million, down 16 million compared to the prior year as lower earnings and fewer customer advances on large projects were partially offset by reduced inventory.

全年調整後有效稅率為28.1%，符合我們預期。我們全年營運現金流為 1.91 億美元，比前一年減少 1,600 萬美元，因為大型專案的收入下降和客戶預付款減少，部分被庫存減少所抵消。

Capital expenditures for the year were $54 million and we returned approximately $63 million to shareholders through quarterly dividends. Turning to slide 9, net debt at the end of the fourth quarter was $1.69 billion and net debt to adjust it EBITDA ratio was 3.3 times. Debt reduction continues to be our number one priority for capital allocation.

本年度的資本支出為 5,400 萬美元，我們透過季度股息向股東返還約 6,300 萬美元。轉向投影片 9，第四季末的淨負債為 16.9 億美元，調整後的淨負債 EBITDA 比率為 3.3 倍。減債仍然是我們資本配置的第一要務。

We made good progress this quarter with solid cash flow and the execution of an opportunistic sale leaseback transaction. However, given the uncertain trajectory of orders over the coming year, our anticipated deleverage time that remains prolonged.

本季我們取得了良好的進展，現金流穩定，並執行了機會性售後回租交易。然而，鑑於未來一年訂單軌跡的不確定性，我們預期的去槓桿時間仍然較長。

Due to our typical seasonality of earnings and cash flow along with lower starting backlog and the expectation that orders will remain relatively soft in Q1, we expect leverage to slightly increase in our fiscal first quarter, as this is normally a cash outflow quarter to the timing of certain annual cash payments.

由於我們的利潤和現金流具有典型的季節性，加上較低的起始積壓以及第一季訂單將保持相對疲軟的預期，我們預計第一季的槓桿率將略有增加，因為這通常是現金流出的季度某些年度現金付款。

Now let me conclude my remarks with our 2025 outlook on slide 10. Our guidance for fiscal '25 reflects the potential for ongoing uncertainty in the macro environment and the impact on the timing of orders throughout the year.

現在讓我用幻燈片 10 上的 2025 年展望來結束我的演講。我們對 25 財年的指引反映了宏觀環境中持續存在不確定性的可能性以及對全年訂單時間的影響。

We anticipate total company revenues of approximately $2.93 billion to $3.09 billion down 3% to 8% compared to the prior year. This decline is primarily driven by our APS segment which we expect to be down 5% to 10%. We expect our MTS segment to be relatively steady with revenues expected to be down 2% to up 2%.

我們預計公司總收入約為 29.3 億美元至 30.9 億美元，比上年下降 3% 至 8%。這一下降主要是由我們的 APS 部門推動的，我們預計該部門將下降 5% 至 10%。我們預計 MTS 部門將相對穩定，營收預計將下降 2% 至成長 2%。

We expect adjusted EBITDA to be in the range of $452 million to $488 million, down 5% to 12% and adjusted earnings per share of $2.80 to $3.15. We're assuming interest expense of approximately $105 million and an adjusted effective tax rate of approximately 29% for the year.

我們預計調整後 EBITDA 為 4.52 億美元至 4.88 億美元，下降 5% 至 12%，調整後每股收益為 2.80 美元至 3.15 美元。我們假設今年的利息支出約為 1.05 億美元，調整後的有效稅率約為 29%。

We are targeting approximately $200 million in operating cash flow for fiscal year 2025 reflecting lower earnings payment timing related to the previously announced restructuring actions and payments associated with synergy realization and accelerated productivity initiatives.

我們的 2025 財年營運現金流目標約為 2 億美元，反映出與先前宣布的重組行動相關的收益支付時間的減少以及與實現協同效應和加速生產力計劃相關的支付。

We expect these impacts to be more than offset by our ongoing efforts to enhance trade working capital efficiency. We expect capital expenditures to be approximately $50 million for the year. Now I'll quickly provides some additional color for our segments.

我們預計這些影響將被我們持續努力提高貿易營運資本效率所抵銷。我們預計今年的資本支出約為 5000 萬美元。現在我將快速為我們的片段提供一些額外的顏色。

For APS, as I mentioned, we anticipate revenue of $2.05 billion to $2.175 billion, down 5% to 10% driven by a decrease in capital equipment volume to the lower starting backlog, partially offset by modest growth and aftermarket at the midpoint.

正如我所提到的，對於APS，我們預計收入為20.5 億美元至21.75 億美元，下降5% 至10%，原因是資本設備數量減少至較低的起始積壓，部分被中點的溫和增長和售後市場所抵銷。

We are assuming orders remain essentially flat to 2024 with modest sequential improvements starting in our fiscal second quarter based on expected customer decision timing as capital budgets reset in the new calendar year. We expect adjusted EBITDA margin to be 18% to 18.5% which reflects better flow through than our standard detrimental margin due to ongoing focus on managing discretionary spend accelerating productivity and cost energy initiatives and favorable mix of aftermarket revenue.

我們假設訂單到 2024 年基本上保持不變，並根據新日曆年資本預算重置的預期客戶決策時間，從第二財季開始出現適度的環比改善。我們預計調整後的EBITDA 利潤率為18% 至18.5%，這反映出我們的流量比我們的標準有害利潤率更好，因為我們持續專注於管理可自由支配支出，加快生產力和成本能源計劃，以及售後市場收入的有利組合。

For MTS, we anticipate revenue of $875 million to $915 million down 2% to up 2% with slight growth in our injection molding product line and relatively flat performance and our hot runner product line assumed at the midpoint

對於 MTS，我們預計收入為 8.75 億至 9.15 億美元，下降 2% 至增長 2%，我們的注塑產品線略有增長，業績相對平穩，假設我們的熱流道產品線處於中點

We are targeting adjusted even a margin of 16.3% to 17% reflecting approximately 70 basis points of margin expansion at the midpoint. As we realize the carryover benefit of the restructuring actions taken in 2024 and continued focus on controlling costs and driving productivity partially offset by ongoing price cost pressure and expected unfavorable product mix from a higher proportion of injection molding equipment.

我們的目標是調整利潤率 16.3% 至 17%，反映出中點利潤率擴張約 70 個基點。我們意識到 2024 年採取的重組行動的結轉效益，並繼續專注於控製成本和提高生產率，但部分被持續的價格成本壓力和注塑設備比例較高帶來的不利產品結構所抵消。

Due to ongoing macro uncertainty, we are providing Q1 guidance as well. We expect total revenues of $685 million to $705 million in adjusted earnings per share of $0.52 to $0.57 down year over year, primarily driven by decreased volume due to lower starting backlog. Please review slide 10 for additional guidance assumptions.

由於持續的宏觀不確定性，我們也提供第一季指引。我們預計總收入為 6.85 億美元至 7.05 億美元，調整後每股收益將年減 0.52 美元至 0.57 美元，主要是由於起始積壓訂單減少導致銷售減少。請查看投影片 10 以了解更多指導假設。

With that, I'll turn the call back over to Kim.

這樣，我會將電話轉回給 Kim。

Thanks Bob. Before we open the line for Q&A, I'll end our presentation with a few closing remarks. I'm incredibly proud of the team for delivering solid results to end our fiscal year. Although we haven't seen clear signals of meaningful demand recovery yet, we're confident in our strategy, the strength of our market position and the underlying health of our end markets, which we fully anticipate will return to a solid growth trajectory.

謝謝鮑勃。在我們開始問答之前，我將用一些結束語來結束我們的演示。我為我們的團隊在本財年結束時所取得的紮實成果感到無比自豪。儘管我們尚未看到有意義的需求復甦的明確訊號，但我們對我們的策略、市場地位的實力以及終端市場的基本健康狀況充滿信心，我們完全預期終端市場將恢復穩健的成長軌跡。

Once current macro uncertainties are resolved, I firmly believe our teams have the right tools and capabilities to manage the business through these near term headwinds and come out stronger. On the other side, we will continue to diligently manage costs, drive productivity and innovation and execute our integration plans to position Hillenbrand for long term success.

一旦當前的宏觀不確定性得到解決，我堅信我們的團隊擁有正確的工具和能力來管理業務，克服這些近期的不利因素，並變得更強大。另一方面，我們將繼續努力管理成本，提高生產力和創新，並執行我們的整合計劃，以使 Hillenbrand 取得長期成功。

With that operator, please open the line for questions.

請透過該接線生撥打電話提問。

(Operator Instructions)

（操作員說明）

Daniel Moore, CJS Securities.

丹尼爾·摩爾，CJS 證券。

Thanks, Kim Bob. Good morning. Thanks for taking the questions. You gave pretty good color. Maybe just drill down a little bit. It sounds like orders starting to improve modestly in Q4. How do you see order rates, trend -- order trends playing out in fiscal '25 across end markets, any additional color, relative to those comments you just gave?

謝謝，金鮑勃。早安.感謝您提出問題。你給的顏色很好。也許只是深入一點。聽起來第四季的訂單開始略有改善。相對於您剛剛發表的評論，您如何看待 25 財年終端市場的訂單率、趨勢——訂單趨勢，是否有其他顏色？

And then when might would you expect backlogs to start to level off and begin to grow again? Is that -- is it, maybe late '25 or more likely in fiscal '26? Just based on what you see today.

那麼您預計積壓訂單何時會開始趨於平穩並再次開始成長？是嗎——是嗎，也許是在 25 年末或更可能是在 26 財年？僅基於您今天所看到的。

So I'll, take that, question here. So as we, mentioned on the last call, 90 days or so ago, we clearly see capital budgets really being locked down for the rest of this calendar year. And obviously, we had back -- three months ago, we had a couple of unknowns, one certainly the the Presidential election where that would land, but also interest rates and just broader macro economic topics I would say.

所以我會在這裡提出這個問題。因此，正如我們在大約 90 天前的最後一次電話會議中提到的那樣，我們清楚地看到本日曆年剩餘時間的資本預算確實被鎖定。顯然，三個月前，我們有一些未知因素，其中之一肯定是總統選舉，還有利率和我想說的更廣泛的宏觀經濟話題。

And so obviously, we have the the election behind us. So that's known, but we still have the interest rate environment and, and obviously with Trump being elected, obviously he's, he's spoken about, what he's thinking, but it's still early days to determine exactly where things are going to land.

顯然，選舉已經過去了。所以這是眾所周知的，但我們仍然面臨利率環境，而且顯然隨著川普當選，顯然他正在談論他的想法，但現在要確定事情的具體走向還為時過早。

But with that being said, just based on discussions with our customer base and obviously where we see interest rates ultimately going, we're not expecting a steep recovery here in Q1, but as capital budgets are unlocked here starting in our fiscal second quarter, I think we'll start seeing orders trickle in in that second quarter and continue to accelerate through the second half of the year.

但話雖這麼說，僅根據與我們的客戶群的討論以及我們對利率最終走向的預期，我們預計第一季不會出現大幅復甦，但隨著資本預算從第二財季開始解鎖，我認為我們將在第二季開始看到訂單不斷增加，並在下半年繼續加速成長。

Helpful and maybe shifting just more specifically to hot runner demand. Seems like it continues to bounce along the bottom. Can you give any more granularity on what you're seeing across industries as well as geographies from an end market perspective? And I've got a quick follow up there. Thanks.

有幫助，也許只是更具體地適應熱流道需求。看起來它繼續沿著底部反彈。您能否從終端市場的角度更詳細地介紹您在各個產業和地區所看到的情況？我在那裡得到了快速跟進。謝謝。

Yeah. So Dan, it's Kim, what we continue to see is this is the second quarter in a row that we've seen, a good bit of stability and a little bit of growth in that hot runner market. Specifically, we've continued to see a strong quarter in India.

是的。Dan，我是 Kim，我們繼續看到的是，這是我們連續第二個季度看到的，熱流道市場的穩定性和成長。具體來說，我們繼續看到印度季度表現強勁。

And we've also seen good stability in China, although obviously, it low levels than we had originally been experiencing there. Some of the activities that we've taken are really moving actively into a variety of end markets in order to expand our reach.

我們在中國也看到了良好的穩定性，儘管顯然，它的水平比我們最初在那裡經歷的要低。我們採取的一些活動實際上正在積極進入各種終端市場，以擴大我們的影響力。

And we've through new product innovation, moved into some end markets that I think are going to create some opportunities for us specifically in China and India with a couple of products that are going to hit that top of the Midtier.

我們已經透過新產品創新進入了一些終端市場，我認為這將為我們創造一些機會，特別是在中國和印度，一些產品將達到中端市場的頂峰。

And those products are some areas that we're looking to expand. We're also continuing to monitor markets like medical and market, which we believe will continue to show positive signs of growth in the coming 12 months and will require some additional capital infusion in order to address some of those market opportunities.

這些產品是我們希望擴展的一些領域。我們也持續監控醫療和市場等市場，我們相信這些市場將在未來 12 個月內繼續顯示出積極的成長跡象，並且需要一些額外的資本注入才能抓住其中一些市場機會。

Great. And maybe last for me, and I'll jump back in queue. It's only been a few quarters, but I'm just wondering if you're surprised by the degree and duration of the pullback in spending in food and pharma, I realize it's subject to the same macro, challenges and budget constraints.

偉大的。也許對我來說是最後一個，我會插回隊列。這才過去了幾個季度，但我只是想知道您是否對食品和製藥支出縮減的程度和持續時間感到驚訝，我意識到它也受到同樣的宏觀、挑戰和預算限制。

But just curious if -- in terms of the confidence around the thesis that, that those markets will hold up, generally better in a downturn for capital spending. And maybe your sense for pent up demand when the cycle does turn, would you expect to see a period of maybe outsized growth beyond the typical mid to high single digits or is that just too early to call? Thanks again.

但只是好奇，就圍繞這一論點的信心而言，這些市場將保持穩定，而且在資本支出低迷時期通常會更好。也許當週期確實轉變時，您對被壓抑的需求的感覺是，您是否預計會看到一段時期的超額增長，超出典型的中高個位數，或者現在判斷還為時過早？再次感謝。

I think the pent up part of your question is a little bit too early to call. I think that the key driver there in those markets is consumer demand and discretionary income and those are affected by the factors that we brought forward, interest rates and inflation and those types of topics.

我認為你問題中被壓抑的部分現在打電話還為時過早。我認為這些市場的關鍵驅動因素是消費者需求和可自由支配收入，這些因素受到我們提出的因素、利率和通貨膨脹以及此類主題的影響。

And so those are some of the things that consumer demand is what companies are looking for in order to drive incremental investments in capacity and new products. And the those are the things that we continue to watch. We've seen pretty stable markets, I would say on the food side, remember FPM is a combination of food businesses and also performance materials.

因此，這些是消費者需求的一些東西，也是公司為了推動產能和新產品增量投資而尋求的東西。這些都是我們持續關注的事情。我們看到了相當穩定的市場，我想說在食品方面，請記住 FPM 是食品業務和高性能材料的結合。

I think we've seen good performance, relatively stable performance, even as people are pausing some of the investments on the food side of this equation. And that's, really in line with what we expected to see in this market.

我認為我們已經看到了良好的表現，相對穩定的表現，即使人們暫停了食品方面的一些投資。這確實符合我們對這個市場的預期。

We're also continuing to use this time to really focus our energies on getting the integrations done and really taking advantage of this opportunity to leverage the scale that we've created with these businesses drive cost efficiencies which you have seen and then be able to attack those markets in a coordinated way. As the timing of those orders, becomes a little less dynamic as these market conditions continue to stabilize.

我們還將繼續利用這段時間真正集中精力完成集成，並真正利用這個機會來利用我們與這些業務創建的規模來提高成本效率，您已經看到了這一點，然後能夠以協調一致的方式攻擊這些市場。隨著市場狀況繼續穩定，這些訂單的時機變得不那麼活躍。

That's really helpful. I'll drop back with any follow ups. Thank you.

這真的很有幫助。我會回過頭來進行任何後續行動。謝謝。

Matt Summerville, D A Davidson.

馬特·薩默維爾，D·A·戴維森。

Good morning. So when I look at the APS deleveraging with organic down 2% EBITDA down 14%, I think it was with the benefit of generating record aftermarket revenue. What are the influencing factors that drove that deleverage and embedded in your guide is a material less impact from deleverage. So if you can bridge that, that would be helpful? And then I have a follow up.

早安.因此，當我看到 APS 去槓桿化導致有機性下降 2% EBITDA 下降 14% 時，我認為這是因為產生了創紀錄的售後市場收入。推動去槓桿化的影響因素有哪些，您的指南中包含的內容是去槓桿化的影響較小。那麼如果你能彌補這一點，那會有幫助嗎？然後我有一個後續行動。

Yeah. So if you think about -- if your question is more on Q4, Matt I think we over a year, certainly our EBITDA percent was a little bit better than what we thought going into the quarter. But year over year, we did have an impact of volumes. We did have timing of incentive comp that was a headwind for us, in the quarter versus last year.

是的。因此，如果你想一想，如果你的問題更集中在第四季度，馬特，我認為我們一年多來，我們的 EBITDA 百分比肯定比我們對本季度的預期要好一些。但年復一年，我們確實受到了銷量的影響。與去年相比，本季的激勵補償時機確實對我們來說是不利的。

And then we did have a mix of projects, lower margin projects that we executed this quarter versus, versus last quarter. If I'm thinking forward to fiscal '25 in our guide, order volume is going to be relatively flat. What we see is, we just as I mentioned earlier on the call we do see some modest improvements in in aftermarket volume and pricing, but we're going to see some mixed pressure, I'd say within our food health and nutrition business as well. So with all that being said, I think we're going to continue to focus on cost containment actions and integration that Kim's just highlighted.

然後，我們確實有一系列項目，與上個季度相比，我們本季執行的利潤率較低的項目。如果我在我們的指南中展望 25 財年，訂單量將相對持平。我們看到的是，正如我之前在電話會議中提到的那樣，我們確實看到售後市場銷售和定價方面出現了一些適度的改善，但我們將看到一些混合壓力，我想說的是，在我們的食品健康和營養業務中，出色地。因此，儘管如此，我認為我們將繼續關注 Kim 剛才強調的成本控制行動和整合。

Got it. And you mentioned in your prepared remarks that you're seeing continuing to see price pressure on the MTS side of the business. Can you maybe quantify that a little bit and then talk about what you're thinking is in terms of incremental price capture to your last comment, Bob, for APS in fiscal '25 relative to fiscal '24. Thank you.

知道了。您在準備好的發言中提到，您看到 MTS 業務方面繼續面臨價格壓力。鮑勃，您能否稍微量化一下，然後談談您對 25 財年 APS 相對於 24 財年的增量價格捕獲的看法。謝謝。

Sure. Yeah, sure. So if I think about pricing in Q4, it's been relatively consistent from what we've seen all year. So APS continues to see, price cost coverage well above 100%. MTS we've been pressured all year and then below 100% and total Hillenbrand above 100% which is great.

當然。是的，當然。因此，如果我考慮第四季度的定價，它與我們全年看到的相對一致。因此，APS 繼續看到，價格成本覆蓋率遠高於 100%。MTS 我們一整年都承受著壓力，然後低於 100%，而 Hillenbrand 的總得分高於 100%，這很​​棒。

MTS specifically, though I'd say in Q4, we actually saw some improvements this quarter from what we've seen throughout the last couple of quarters. And so that's certainly something we're pleased to see. But as we think forward to fiscal '25 at this point, we're not assuming a continued steep recovery in pricing. So we're still assuming some muted pressure on that front going into '25.

具體來說，MTS，雖然我在第四季度說過，但我們實際上在本季度看到了過去幾季的一些改進。這當然是我們很高興看到的事。但當我們展望 25 財年時，我們並不認為定價會持續大幅復甦。因此，進入 25 年後，我們仍會在這方面承受一些微弱的壓力。

Got it. Thank you.

知道了。謝謝。

Mitch Moore, KeyBanc Capital Markets.

Mitch Moore，KeyBanc 資本市場。

Hey guys, good morning. This quarter came in a bit higher than you'd guided to. Just wondering if you could speak to what trended better for you in the quarter relative to your expectations a couple of months ago.

嘿夥計們，早安。本季的業績比您的預期要高一些。只是想知道您是否可以談談與幾個月前的預期相比，本季哪些趨勢對您來說更好。

Yeah, I'd say so if I think about about APS certainly, we higher revenue on the food health and attrition as well as the plastic side, aftermarket revenue was another record quarter for us and FPM specifically continues to perform on the EBITDA side, so we bought that business a year ago at 13% margins.

是的，我會這麼說，如果我當然考慮APS，我們在食品健康和消耗以及塑料方面的收入更高，售後市場收入對我們來說又一個創紀錄的季度，FPM 特別繼續在EBITDA 方面表現出色，所以我們一年前以 13% 的利潤率收購了該業務。

And as Kim's highlighted on some of the integration that we've seen, we're well ahead of what our expectations are on that front. And so I think we'll consistently see that business operating at that midteens margins as we had here recently and going into 2025.

正如 Kim 所強調的我們所看到的一些整合，我們在這方面遠遠超出了我們的預期。因此，我認為，進入 2025 年，我們將持續看到該業務的利潤率保持在 15 左右，就像我們最近的情況一樣。

And so we'll continue to see that business perform well. On the MTS side, revenues came in stronger on the injection molding business. And we saw that strength both in the Americas as well as India on the hot runner business. I'd say still bouncing around the bottom of the cycle.

因此，我們將繼續看到該業務表現良好。MTS 方面，注塑業務的營收成長強勁。我們在美洲和印度都看到了熱流道業務的優勢。我想說仍在周期底部徘徊。

Although we did see some some slight improvements in China, particularly in the automotive space. And so that business when it does return, is it does spike up. We are not assuming that now, but we're seeing some signs of some recovery there. So that's really what drove the really the benefit in the quarter versus the guide that we gave.

儘管我們確實看到中國取得了一些細微的進步，特別是在汽車領域。因此，當業務確實回歸時，它確實會激增。我們現在並不這麼認為，但我們看到了一些復甦的跡象。因此，與我們提供的指南相比，這確實是推動本季收益的真正原因。

Great, that's helpful. And then just on MTS seems like it's becoming stable at a low level of potentially turning a corner here. Just with your initial guidance. How did you get comfortable with the flat sales guide for the year?

太好了，很有幫助。然後，就 MTS 而言，它似乎在低水平上變得穩定，可能會出現拐點。只需您的初步指導即可。您對今年的公寓銷售指南感覺如何？

Yeah, I mean -- so again, based on discussions with our customers, we've seen spikes in the last year where we, have a good month and then, the next month is a bit muted. And so as we sit here today, obviously, Trump, that's one box that got checked, but certainly interest rates is still something that is a wait and see.

是的，我的意思是——根據與客戶的討論，我們在去年看到了高峰，我們度過了愉快的一個月，然後，下個月就有點平靜了。因此，當我們今天坐在這裡時，顯然，川普，這是一個被選中的方框，但利率肯定仍然是一個等待觀望的東西。

And the customer base within MTS is a little bit more subject to the interest rate environment. So as we sit here today, we're seeing recovery in the injection molding side, that hot runner business, maybe a little bit less recovery.

MTS 內部的客戶群更容易受到利率環境的影響。因此，當我們今天坐在這裡時，我們看到注塑成型領域、熱流道業務的復甦，但復甦可能會稍微少一些。

And so right now, it's a wait and see until we see some orders really gotten unlocked. And at this point in time, just being cautious. And the one thing I would highlight though is we did take some restructure actions as we've highlighted the last couple of quarters.

所以現在，我們需要等待，直到我們看到一些訂單真正解鎖。而在這個時候，只能保持謹慎。我要強調的一件事是，我們確實採取了一些重組行動，正如我們在過去幾季所強調的那樣。

And so we do see margin improvement on the MTS side because we have completed all those restructuring actions. And so we will see that incremental $12 million of benefit coming through fiscal '25. So as a reminder, we did have that charge of $25 million, $20 million dollars of synergies coming from that. And so we'll see that here throughout 2025.

因此，我們確實看到 MTS 方面的利潤率有所改善，因為我們已經完成了所有這些重組行動。因此，我們將看到 25 財年將增加 1,200 萬美元的收益。提醒一下，我們確實有 2500 萬美元、2000 萬美元的綜效費用。因此，我們將在 2025 年看到這一點。

Great, thanks. I'll hop back in you.

太好了，謝謝。我會跳回你身邊。

(Operator Instructions)

（操作員說明）

John Franzreb, Sidoti & Company.

約翰‧弗蘭茲雷布 (John Franzreb)，西多蒂公司 (Sidoti & Company)。

Good morning. Thanks for taking the questions. I want to discuss a little bit about the changes in geography and in demand in both India and China. It seems like there's inflection points going on in both regions.

早安.感謝您提出問題。我想討論一下印度和中國的地理和需求變化。這兩個地區似乎都出現了轉折點。

Yeah, I would say relative to India, we're continuing to -- we continue to see a lot of opportunity in India. I think you heard us comment on the fact that we saw a good quarter in our India injection molding business, a good level quarter in our hot runner business.

是的，我想說，相對於印度，我們將繼續——我們繼續在印度看到很多機會。我想您聽到了我們的評論，我們的印度注塑業務季度表現良好，熱流道業務季度表現良好。

And that continues to be an opportunity for growth as we think about projects on the APS side of the equation as well, as we anticipate further investments in India due to that growing global middle class, which as is an underpinning of why additional products and services are are going to continue to grow in that region and hence the need for our equipment.

當我們考慮 APS 方面的項目時，這仍然是一個增長機會，因為我們預計由於全球中產階級的不斷壯大，印度將進一步投資，這也是為什麼需要額外產品和服務的基礎將在該地區繼續增長，因此需要我們的設備。

In terms of China, China has really been -- while we had experienced, a significant downsizing of volume in that market over the last year and a half, especially on the MTS side of our business and hot runners that has leveled out and continues to bounce around. It's not growing at historical growth rates, but it continues to be stable and especially as we continue to invest.

就中國而言，儘管我們經歷過，但在過去的一年半中，中國市場的銷量確實大幅縮減，特別是在我們業務的 MTS 方面，熱流道已經趨於平穩並繼續下降。 。它並沒有以歷史成長率成長，但它仍然保持穩定，尤其是在我們繼續投資的情況下。

As I mentioned on Dan's question in that upper mid tier and some interesting end markets for us. I think we're going to be able to continue to look for opportunities to leverage our footprint there. We are very focused from a supply chain standpoint on a real local -- for local approach, both in India and in China and in the US, which allows us to we believe be able to compete over the long term.

正如我在丹的問題中提到的，在中高端市場和一些對我們來說有趣的終端市場。我認為我們將能夠繼續尋找機會來利用我們在那裡的足跡。從供應鏈的角度來看，無論是在印度、中國或美國，我們都非常注重真正的在地化——在地化方法，這使我們相信能夠長期競爭。

Even as some of these macroeconomic situations work out, we think we're best positioned with that footprint to be able to attack opportunities in each of those geographies.

即使其中一些宏觀經濟情勢出現了變化，我們認為我們最有能力抓住這些地區的機會。

Fair enough. Thank you. And in the past, you talked about test labs as being an indicator of future demand. Can you update us on the test lab activity and is that still the case?

很公平。謝謝。過去，您談到測試實驗室是未來需求的指標。您能否向我們介紹測試實驗室活動的最新情況？

Yeah, we have continued to see -- we do a lot of R&D with customers and typically that test lab experience is what allows them to do proof of concept. And that's a precursor often almost always for their capital investments, specifically because those are collaborative experiments in those test labs and those are a pay to play environment.

是的，我們繼續看到 - 我們與客戶進行了大量的研發，通常測試實驗室的經驗使他們能夠進行概念驗證。這通常幾乎總是他們資本投資的先兆，特別是因為這些是在這些測試實驗室中進行的協作實驗，並且是付費遊戲環境。

So it's not just an environment where they come in and utilize test facilities, they are also paying for those trials. And so there are, it really connotes a very serious investment on their side and on our side to investigate viability for those lines, the recycling labs are full, the polyol and labs are full, the food labs are full. So we do feel very encouraged by that.

因此，這不僅僅是他們進入並使用測試設施的環境，他們還為這些試驗付費。因此，這確實意味著他們和我們都需要進行非常大的投資來調查這些生產線的可行性，回收實驗室已滿，多元醇和實驗室已滿，食品實驗室也已滿。所以我們確實對此感到非常鼓舞。

And as we have mentioned before, typically, we see those lab trials really slow down if we are entering a downcycle and that has not occurred here. Nor have we seen downcycling of our parts and services business. In fact, those could have, as we've mentioned, continue to be very robust.

正如我們之前提到的，通常情況下，如果我們進入下行週期，我們會發現這些實驗室試驗的速度確實會減慢，而這裡並沒有發生這種情況。我們也沒有看到我們的零件和服務業務的降級循環。事實上，正如我們所提到的，這些可能會繼續非常強勁。

And so those are both bellwethers for some of the optimism we feel as we look into the next year. And some of the things that we continue to to double down on as we look for some of these capital decisions to start working themselves through the pipeline as we enter the beginning of the calendar year.

因此，這些都是我們在展望明年時感到樂觀的風向標。當我們進入年初時，我們會繼續加倍努力，尋找一些資本決策來開始透過管道發揮作用。

That's good to hear. Thanks a lot Kim, thanks for the detail.

很高興聽到這個消息。非常感謝金，謝謝你的詳細資料。

Daniel Moore, CJS Securities.

丹尼爾·摩爾，CJS 證券。

Thank you again. I apologize if you mentioned it. I may have missed it. How much of the 30 million synergies were realized as of September 30, and what's left in terms of incremental benefit for '25 and beyond.

再次感謝您。如果您提到這一點，我深表歉意。我可能錯過了。截至 9 月 30 日，3,000 萬綜效中有多少已經實現，以及 25 年及以後的增量效益還剩下多少。

Yeah. So our original guide going into the year, Dan, we thought we'd have about seven to nine of that achieved and we're closer to like two times that amount here in the year. And I think we'll continue to see acceleration there on -- within 2025 and into 2026 as well.

是的。所以我們最初的指南進入今年，丹，我們認為我們會實現大約七到九個目標，我們接近今年這個數字的兩倍。我認為我們將在 2025 年和 2026 年繼續看到這方面的加速發展。

And they had a reminder that those are cost synergies and we feel very comfortable with the cost synergies. And you see that coming through in the margin. they performed very well on execution of the projects that they had in their pipeline.

他們提醒我們，這些都是成本綜效，我們對成本綜效感到非常滿意。你會在邊緣看到這一點。他們在執行正在進行的專案時表現非常出色。

They've also been able to bring forward a lot of valuable benefit from the shared services and from their operating model implementation. And also now the cobranding and the simplification of that branding story into the marketplace, which was completed in September.

他們還能夠從共享服務和營運模式實施中帶來許多有價值的好處。現在，聯合品牌以及將品牌故事簡化到市場中，已於 9 月完成。

That we also obviously see opportunities on aftermarket collaboration and the organization just went into place October 1, for combined aftermarket approach and also the operating model that they put in place to really create synergies among all of the food companies.

我們也顯然看到了售後市場合作的機會，該組織於 10 月 1 日剛成立，旨在整合售後市場方法以及他們為真正在所有食品公司之間創造協同效應而採取的營運模式。

And how we're approaching all of that. And that has organizationally created a number of synergies as well that started being implemented in June and then completed its implementation on October 1. So we're, really pleased with the way that it is going and the cadence and the rigor with which we are managing that implementation and the folks that are doing that on our team.

以及我們如何實現這一切。這在組織上也產生了許多協同效應，這些效應於 6 月開始實施，並於 10 月 1 日完成實施。因此，我們對它的進展方式、我們管理實施的節奏和嚴格程度以及我們團隊中執行此操作的人員感到非常滿意。

Got it really helpful and I think I can answer this one. But the guidance in terms of cash EPS for '25 doesn't include, doesn't assume any material change in tax rates. Correct.

真的很有幫助，我想我可以回答這個問題。但 25 年現金每股收益的指引不包括也不假設稅率有任何重大變化。正確的。

Correct. That's right.

正確的。這是正確的。

And lastly, I appreciate the guide for operating cash flow as well as CapEx. Is there a working capital headwind embedded in the $200 million OCF guide as demand -- and as demand for mid and large sized systems recovers. How much of a tailwind could that be as we look out to '26 and beyond? I'm just wondering how quickly we can get back to $250 million, maybe even $300 million in operating cash flow in an environment where demand does pick up. Thank you again.

最後，我很欣賞有關營運現金流和資本支出的指南。隨著需求以及中型和大型系統需求的復甦，2 億美元的 OCF 指南中是否存在營運資金逆風？當我們展望 26 年及以後時，這會帶來多大的動力？我只是想知道，在需求確實回升的環境下，我們的營運現金流要多快才能恢復到 2.5 億美元，甚至可能是 3 億美元。再次感謝您。

Yeah, so I'll give you some color on that then. So if you think about the $200 million and just maybe just talk about free cash flow net of the CapEx. You think about where we landed in fiscal '24 we had $137 million of free cash flow coming in the door. If you think about what that looks like for for fiscal '25 we do have lower earnings. So obviously, that would be a headwind.

是的，那麼我會給你一些顏色。因此，如果您考慮 2 億美元，也許只是談論扣除資本支出的自由現金流。你想想我們在 24 財年的情況，我們有 1.37 億美元的自由現金流進來。如果您考慮一下 25 財年的情況，我們的收入確實較低。顯然，這將是一個逆風。

We also had a onetime pension settlement that you saw in our remarks in our press release as well. As previously discussed, we did offload our pension assets and liabilities to an insurance company this year. And so there's $27 million of cash left over from that.

我們還達成了一次性退休金和解協議，您也在我們的新聞稿中的言論中看到了這一點。正如之前所討論的，我們今年確實將退休金資產和負債轉移給了一家保險公司。這樣就剩下了 2700 萬美元的現金。

So that was shown as a onetime item in our cash flow statement here, this quarter. So you have a couple of headwinds there. And then what we really see is upside with lower interest expense and then actually working capital improvement, particularly on inventory AR and AP, we continue to focus on trade, working capital percent of sales, the things that we can control.

因此，這在本季我們的現金流量表中顯示為一次性項目。所以你有一些阻力。然後我們真正看到的是利息支出降低的好處，然後實際上是營運資本的改善，特別是在庫存應收帳款和應付帳款方面，我們繼續關注貿易、營運資本佔銷售的百分比，以及我們可以控制的事情。

And certainly some recovery in advances in that second half of the year. Now, if order trends pick up a little bit quicker, obviously, we know with the cash advances, that could move that $150 million free cash flow number North. Really that would come in, I guess probably Q3, Q4 is what what I would say there.

當然，今年下半年的預付款肯定會回升。現在，如果訂單趨勢明顯加快一點，我們知道隨著現金預支，這可能會使 1.5 億美元的自由現金流數字向北移動。真的，我想可能會提到第三、第四個問題。

The thing I want to highlight is if you're trying to bridge your free cash flow year over year, we did have that sale back transaction that we announced in Q4. That was about $55 million of cash coming in. That's actually shown as investing cash flows. It is not in our $137 million.

我想強調的是，如果您想年復一年地彌補自由現金流，我們確實在第四季度宣布了回售交易。大約有 5500 萬美元的現金流入。這實際上顯示為投資現金流。它不在我們的 1.37 億美元之內。

So it's additional cash that came in the door, we used to pay down debt. So that's a bridge year over year. And then again, because of the lumpiness of orders, it's hard to predict when those advances come in. But that certainly the upside in the second half of the year.

所以這是額外的現金進來，我們用來償還債務。所以這是一座年復一年的橋樑。但話又說回來，由於訂單數量龐大，很難預測這些進展何時會出現。但這肯定是下半年的好處。

I think fair to say, Dan, look places where we've had the most pressure is on those -- in that midsized tier, mid to large. And when I say large, I don't mean like mega large, I mean, I don't mean giant polyolefin. It's been that engineering plastic space, those are POC projects, those do come with down payments. Those down payments are for both our engineering hours as well as buyout.

我認為公平地說，丹，看看我們壓力最大的地方是那些——在中型級別，中型到大型。當我說大時，我的意思不是巨型聚烯烴。工程塑膠領域，那些是 POC 項目，那些確實需要首付。這些首付款既用於我們的工程時間，也用於買斷。

So those are the types of business that we're waiting to break on these orders is the type of business that is accompanied with down payments. The businesses that have been very steady and a steady pay as you go as the parts business, the individual equipment business.

因此，我們正在等待打破這些訂單的業務類型是伴隨著預付款的業務類型。零件業務、個體設備業務等業務一直非常穩定，並且按量付費。

So smaller projects, those are the types of businesses that have been a little more steady in over the course of the last year. And it's those midsize with the companying down payments that are that create some opportunity if those break, if those break more quickly.

因此，較小的項目，這些是去年以來比較穩定的業務類型。而那些擁有公司預付款的中型企業，如果這些企業破產，或破產得更快，就會創造一些機會。

Makes sense and safe to assume that debt repayment remains a priority beyond dividends as it relates to, that use of incremental cash generation, at least in your term.

可以合理且安全地假設，債務償還仍然是股息之外的優先事項，因為它涉及增量現金生成，至少在您看來是這樣。

Yes.

是的。

Perfect. Thank you again.

完美的。再次感謝您。

Matt Summerville, D A Davidson.

馬特·薩默維爾，D·A·戴維森。

Just following up on the last point. In the context that your integration activities with FPM have been seemingly quite successful, maybe ahead of the trajectory you had laid out when you bought the business and knowing what I think at least is your desire to get back into the M&A market sooner versus later to continue that acquisitive pivot towards more secularly attractive businesses.

只是跟進最後一點。鑑於您與 FPM 的整合活動似乎相當成功，也許超出了您購買該業務時所製定的軌跡，並且知道我至少認為您希望儘早重返併購市場，而不是稍後再進入併購市場。轉向更具長期吸引力的企業。

If that is indeed the case, how should we be thinking about this 3% dividend yield in context of me thinking about where you guys want to go and the idea that you would probably want to get back in the market sooner versus later from an M&A standpoint, I guess, Kim, how are you thinking about all that?

如果情況確實如此，那麼在我考慮你們想要去哪里以及你們可能希望早點而不是晚點通過併購重返市場的背景下，我們應該如何考慮這個 3% 的股息收益率我想，金，你是如何看待這一切的？

Yeah, Dan, that's obviously a topic as we discuss our capital allocation priorities, we continue to discuss that and evaluate that with our Board and, and obviously in consideration of our investor base. And so we continue to look at that as we look at our priorities, and as we look at our portfolio of all of those things as a part of our normal processes with our Board.

是的，丹，這顯然是我們討論資本分配優先事項時的一個話題，我們將繼續與董事會討論並評估這個問題，並且顯然會考慮到我們的投資者基礎。因此，當我們考慮我們的優先事項時，當我們將所有這些事情的組合視為我們與董事會正常流程的一部分時，我們將繼續關注這一點。

And so I can tell you that we are -- we have active considerations about exactly what we think best use of cash is for the benefit of shareholders and we'll continue to do that. And, if any changes are on the horizon, well obviously we'll share that if and when that is appropriate.

所以我可以告訴你，我們正在積極考慮我們認為現金的最佳使用方式是為了股東的利益，我們將繼續這樣做。而且，如果即將發生任何變化，顯然我們會在適當的時候分享。

Thanks again.

再次感謝。

Thank you at this time, I'll turn the floor back to Kim Ryan for closing remarks.

這次謝謝大家，我將請 Kim Ryan 做結束語。

All right. Thanks again, everyone for joining us on the call today. We appreciate your ownership and interest in Hillenbrand and look forward to talking to you again in February with our first quarter results. Have a great rest of your day.

好的。再次感謝大家今天加入我們的電話會議。我們感謝您對 Hillenbrand 的所有權和興趣，並期待在二月份再次與您討論我們的第一季業績。祝您有個愉快的一天。

Thank you. This does conclude today's teleconference. We thank you for your participation. You may now disconnect your lines at this time.

謝謝。今天的電話會議到此結束。我們感謝您的參與。此時您可以斷開線路。