Hillenbrand Inc (HI) 2025 Q2 法說會逐字稿

Greetings and welcome to the Hillenbrand Q2 fiscal year 2025 earnings conference call and webcast. (Operator Instructions)

大家好，歡迎參加 Hillenbrand 2025 財年第二季財報電話會議和網路廣播。（操作員指示）

As a reminder, this conference is being recorded. It's not my pleasure to turn the call over to Trent Schwartz, executive director of Investor Relations. Trent, please go ahead.

提醒一下，本次會議正在錄製中。我不樂意將電話轉給投資者關係執行董事特倫特施瓦茨 (Trent Schwartz)。特倫特，請繼續。

Thank you, operator, and good morning, everyone. Welcome to Hillenbrand's conference call where we will be discussing our fiscal 2nd quarter performance. The pleasure to rejoin you all on today's call as my first quarter as head of investor relations here at Hillenbrand.

謝謝接線員，大家早安。歡迎參加 Hillenbrand 的電話會議，我們將在會議中討論我們第二財季的業績。我很高興在今天的電話會議上再次與大家見面，這是我擔任 Hillenbrand 投資者關係主管的第一個季度。

With me today is 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'll be referenced on today's call.

今天和我一起的還有我們的總裁兼執行長 Kim Ryan。我們的資深副總裁兼財務長 Bob VanHimbergen，我想請您關注我們 IR 網站上發布的補充幻燈片。今天的電話會議將會提到這一點。

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.

請注意，我們的評論可能包含某些前瞻性陳述，這些陳述受證券法安全港條款的約束。這些聲明並不能保證未來的表現，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 certain non-gap operating performance measures. I encourage you to review the presentation as well as our 1, which can be found on our website for a deeper discussion of non-gap information, forward-looking statements, and the risk factors that impact our actual results.

此外，在本次電話會議期間，我們將討論某些非差距營運績效指標。我鼓勵您查看該簡報以及我們的 1，您可以在我們的網站上找到它，以更深入地討論非差距資訊、前瞻性陳述以及影響我們實際結果的風險因素。

Finally, the results we'll be discussing today for the fiscal 2nd quarter still include the full performance of the Milacron injection molding and extrusion business in both our consolidated results and in the molding technology solutions or MTS segment results. With that, I'm going to turn the call over to Kim.

最後，我們今天要討論的第二財季業績仍然包括米拉克龍注塑和擠壓業務在綜合業績以及成型技術解決方案或 MTS 部門業績中的全部表現。說完這些，我將把電話轉給金。

Thanks, Trent, and good morning, everyone. Thank you for joining today's call.

謝謝，特倫特，大家早安。感謝您參加今天的電話會議。

Before discussing our results, I would first like to provide an update on our portfolio following the completion of the divestiture of approximately 51% interest in the Milacron injection molding and extrusion business on March 31, 2025. As a reminder, this is one of several companies acquired as part of the November 2019 transaction. The MTS segment going forward is now composed of the Mold Masters and DME brands which round out the remaining assets from that deal.

在討論我們的表現之前，我首先想提供我們在 2025 年 3 月 31 日完成剝離米拉克龍注塑和擠壓業務約 51% 權益之後的投資組合的最新情況。提醒一下，這是 2019 年 11 月交易中收購的幾家公司之一。MTS 部門未來將由 Mold Masters 和 DME 品牌組成，這兩個品牌補充了該交易剩餘的資產。

Over the past 3 years, we have transformed who Hillenbrand is, our portfolio, our purpose, and our operating model. The completion of this divestiture now allows Hillenbrand to focus on our core strength of highly engineered value added processing technologies and systems serving a diverse set of less cyclical global and markets. Our businesses are focused on performance materials, including plastics, and also food, health and nutrition and markets that are underpinned by long-term secular growth trends.

在過去的三年裡，我們改變了 Hillenbrand 的定位、產品組合、目標和營運模式。這項資產剝離的完成使 Hillenbrand 能夠專注於我們的核心優勢，即高度工程化的增值加工技術和系統，服務於各種不太受週期影響的全球和市場。我們的業務專注於高性能材料（包括塑膠）、食品、健康和營養以及長期成長趨勢支撐的市場。

Our brands are industry leaders in the applications and geographies they serve, and while plastics and food may sound distinctly different, they share a common backbone of key processing steps and highly engineered equipment and a positive long term demand outlook supported by a growing global middle class and a drive for more sustainable solutions.

我們的品牌在其服務的應用領域和地區都是行業領導者，雖然塑料和食品聽起來可能截然不同，但它們擁有共同的關鍵加工步驟和高度工程化的設備，並且在全球中產階級不斷增長和對更可持續解決方案的推動下具有積極的長期需求前景。

This allows us to leverage our most valuable assets, our people, our expertise in systems design, process technology, engineering, and service, as well as our strong global footprint is leveraged across all of our operating companies, brands and customers. I'm proud of our team's efforts in achieving this important strategic milestone, and we're excited for the long-term growth that we can achieve by leveraging this portfolio of products and capabilities for future growth.

這使我們能夠利用我們最寶貴的資產、我們的員工、我們在系統設計、製程技術、工程和服務方面的專業知識，以及我們在所有營運公司、品牌和客戶中的強大的全球影響力。我為我們團隊為實現這一重要戰略里程碑所做的努力感到自豪，我們對利用這一系列產品和能力實現未來成長而獲得的長期成長感到興奮。

I'd now like to give a brief overview of our fiscal 2nd quarter and then provide color on the current macro environment, as well as the actions we're taking to further strengthen the business. Bob will then give a more detailed review of our financials and updated outlook for the remainder of the year.

現在，我想簡要概述我們第二財季的情況，然後介紹一下當前的宏觀環境，以及我們為進一步加強業務而採取的行動。鮑勃隨後將對我們的財務狀況進行更詳細的回顧，並更新今年剩餘時間的前景。

Overall, demand in our 2nd quarter continued to be heavily impacted by the ongoing global macroeconomic uncertainty, which escalated through the quarter, largely driven by tariffs.

總體而言，第二季的需求持續受到持續的全球宏觀經濟不確定性的嚴重影響，這種不確定性在整個季度不斷升級，主要是受關稅的影響。

Despite this, our teams delivered revenue of USD716 million and adjusted earnings per share of USD0.60 per share, ahead of our expectations coming into the quarter, but as expected, down versus the prior year due to lower starting backlog position. Our teams continue to aggressively navigate this challenging environment with great discipline and collaboration across the enterprise.

儘管如此，我們的團隊仍實現了 7.16 億美元的收入，調整後每股收益為 0.60 美元，高於我們本季的預期，但正如預期，由於起始積壓訂單較少，與去年同期相比有所下降。我們的團隊將繼續積極應對這一充滿挑戰的環境，並在整個企業中保持高度紀律性和協作精神。

Now turning to the market dynamics impacting our business. As we entered the calendar year, we were cautiously optimistic that our strong project pipeline would begin converting to orders at a more normalized pace. Since then, however, we've seen tariffs expand and escalate significantly. We've seen business and consumer confidence and sentiment fall. And finally, uncertainty on where or when geopolitical and macroeconomic factors will ultimately settle.

現在來談談影響我們業務的市場動態。隨著我們進入新的一年，我們謹慎樂觀地認為，我們強大的項目管道將以更正常的速度開始轉化為訂單。然而，自那時起，我們看到關稅大幅擴大和升級。我們看到企業和消費者信心和情緒下降。最後，地緣政治和宏觀經濟因素最終將在何時何地解決仍有不確定性。

This unpredictable environment has resulted in delays in our customers' investment plans, with many taking a wait and see approach at this time. We expect this elevated uncertainty to persist over the near term, and we've adjusted our outlook for what we know today, as Bob will cover a little later in the call.

這種不可預測的環境導致我們客戶的投資計畫被推遲，許多客戶目前採取觀望態度。我們預計這種高度不確定性將在短期內持續存在，並且我們已經根據今天所了解的情況調整了我們的展望，正如鮑勃稍後將在電話會議中談到的那樣。

I'll now dive a little deeper into each segment specifically.

現在我將更深入地具體探討每個部分。

Starting with our advanced process solutions or APS segment, we saw year over year improvement in capital orders again this quarter for our food, health, and nutrition, or FHN products. We also experience strong demand in our separation business.

從我們的先進製程解決方案或 APS 部門開始，本季我們再次看到食品、健康和營養或 FHN 產品的資本訂單年增。我們的分離業務也面臨強勁的需求。

Aftermarket and APS continue to provide a stable and profitable base in the quarter as customers continue to steer investment towards parts, service, and refurbishment. However, the increased tariffs and risk of further tariffs has resulted in customers pausing to re-evaluate many larger investments that we expected to close in the year. In other end markets. Quote pipelines continue to be strong across key end markets and geographies, and we have not experienced calculations, but the conversion of quotes to orders remains slow.

由於客戶繼續將投資轉向零件、服務和翻新，售後市場和 APS 在本季度繼續提供穩定且盈利的基礎。然而，關稅的增加和進一步加徵關稅的風險已導致客戶暫停重新評估我們預計在今年完成的許多較大投資。在其他終端市場。報價管道在主要終端市場和地區繼續保持強勁，我們還沒有經歷過計算，但報價到訂單的轉換仍然很慢。

We believe that slowness is macro-driven timing rather than a fundamental shift in the underlying market or our share position, which we're confident remains strong. We continue to be focused on executing cost out initiatives, including cost controls, accelerated footprint consolidation in response to changing environments, but we are maintaining our focus on specific growth opportunities, particularly around our full solution capabilities in FHM and our service offerings.

我們認為，經濟放緩是宏觀驅動的時機問題，而不是基礎市場或我們的股票地位的根本轉變，我們相信這些地位仍將保持強勁。我們將繼續專注於執行成本削減計劃，包括成本控制、加速足跡整合以應對不斷變化的環境，但我們仍將重點關注特定的成長機會，特別是圍繞我們在 FHM 方面的完整解決方案能力和我們的服務產品。

Moving on to MTS.

繼續討論 MTS。

Given the Milacron transaction, my commentary will be focused on the hot runner and mold-based businesses that make up MTS going forward. Orders in the quarter remain stable with improving hot runner demand for consumer goods and packaging, especially in APAC and the Americas, offsetting ongoing broad market sluggishness in Europe.

鑑於米拉克龍交易，我的評論將集中在未來構成 MTS 的熱流道和模具業務。本季訂單保持穩定，消費品和包裝的熱流道需求不斷改善，尤其是在亞太地區和美洲，抵消了歐洲市場持續的低迷。

External market indices were showing gross sentiment through the end of the quarter. So that has reversed as tariffs escalated in early April, particularly in China. So far through April, investments have slowed as larger multinational customers that export out of China have paused to assess the impacts of tariffs and evaluate sourcing and production alternatives outside of China, such as India, where we believe we are already well positioned with local resources in all of our businesses.

截至本季末，外部市場指數均顯示出整體情緒。但隨著 4 月初關稅上調，尤其是在中國，這種情況發生了逆轉。截至 4 月份，投資已經放緩，因為從中國出口的大型跨國客戶已暫停評估關稅的影響，並評估中國以外的採購和生產替代方案，例如印度，我們認為，我們在所有業務中都已憑藉本地資源佔據有利地位。

In addition to the impact tariffs are having on customer sentiment across our segments, there are also higher costs of doing business that must be addressed. Before I turn the call over to Bob, I'll touch on what direct impacts we are seeing. And how our teams are responding. Our teams have been assessing the potential impacts from rapidly evolving tariff policies all over the world and proactively managing our global supply chain. I'm grateful for their tireless efforts in this challenging endeavor, providing Bob and me with daily updates on the status of our exposure and ongoing and evolving mitigation plans.

除了關稅對我們各部門的客戶情緒產生影響之外，還必須解決更高的經營成本問題。在我將電話轉給鮑勃之前，我想談談我們所看到的直接影響。以及我們的團隊如何應對。我們的團隊一直在評估世界各地快速發展的關稅政策可能帶來的影響，並積極管理我們的全球供應鏈。我感謝他們在這項充滿挑戰的任務中所做的不懈努力，每天向鮑勃和我提供有關我們暴露狀況以及正在進行和不斷發展的緩解計劃的最新信息。

As we've discussed previously, our supply chain strategy has evolved significantly since COVID, with our manufacturing and supply chain footprint now primarily serving in region for region demand. This greatly reduces our direct exposure to tariffs, as we mentioned in the last earnings call. However, we do still have a portion of our domestic suppliers that are international due to their special capabilities, representing approximately 5% of our global cost of goods sold.

正如我們之前所討論的，自 COVID 以來，我們的供應鏈策略發生了重大變化，我們的製造和供應鏈足跡現在主要服務於區域以滿足區域需求。正如我們在上次財報電話會議上提到的那樣，這大大減少了我們直接受到關稅的影響。然而，我們仍有一部分國內供應商因其特殊能力而來自國際，約占我們全球銷售成本的 5%。

Spend between China and the US specifically represents only about 1% of our global cost of goods sold. To help mitigate this impact, we have built a comprehensive multi-pronged strategy based on near, medium, and long-term opportunities, including alternative sourcing, strategically shifting inventories and manufacturing capabilities, implementing surcharge pricing, and adjusting contract terms to address higher costs and potential additional tariffs should they go into effect.

具體來說，中國和美國之間的支出僅占我們全球銷售成本的 1% 左右。為了幫助減輕這種影響，我們根據近期、中期和長期機會制定了全面的多管齊下的策略，包括替代採購、策略性地轉移庫存和製造能力、實施附加費定價以及調整合約條款以應對更高的成本和潛在的額外關稅。

Given the unpredictable nature of the situation, we have included roughly USD15 million in direct tariff costs in our updated outlook for the remainder of this year based on assumptions of the current policies in place as of April 29, 2025, and considering the degree to which we can offset the higher costs in the near term.

鑑於情況的不可預測性，我們根據截至 2025 年 4 月 29 日的現行政策假設，並考慮到我們可以在多大程度上抵消短期內更高的成本，在對今年剩餘時間的最新展望中納入了約 1500 萬美元的直接關稅成本。

While we're disappointed in the constrained customer demand we're experiencing in this environment, we remain positive and well positioned with our regional approach and in our leading competitive positions to benefit when demand returns.

雖然我們對這種環境下客戶需求受限感到失望，但我們仍然保持積極態度，並憑藉我們的區域策略和領先的競爭地位，在需求回升時受益。

We believe the long-term demand drivers of our end markets remain firmly intact, and I'm proud of our team's resiliency and agility in responding to the challenges of the day. As we continue to be laser focused on managing what's within our control and ensuring our portfolio of products and capabilities remains well positioned for long-term success in serving our valued customers. With that, I'll turn the call over to Bob to discuss our financial performance and outlook.

我們相信，終端市場的長期需求驅動力依然牢固，我為我們團隊應對當今挑戰的韌性和敏捷性感到自豪。我們將繼續專注於管理我們能夠控制的事物，並確保我們的產品和功能組合能夠長期成功地服務於我們尊貴的客戶。說完這些，我將把電話轉給鮑勃，討論我們的財務表現和前景。

Thanks, Kim, and good morning everyone. As a reminder, the Q2 results I'm discussing today still include the full performance of the Milacron injection molding and extrusion business.

謝謝，金，大家早安。提醒一下，我今天討論的第二季業績仍然包括米拉克龍注塑和擠壓業務的全部業績。

Turning to our consolidated performance on slide 6. Revenue of USD716 million was down 9% compared to the prior year, primarily due to reduced volume stemming from our lower starting backlog. But as Kim mentioned, this was slightly better than we expected coming into the quarter.

轉向幻燈片 6 上的綜合業績。營收為 7.16 億美元，與前一年相比下降了 9%，主要原因是起始積壓訂單減少導致產量減少。但正如 Kim 所提到的，這比我們預期的本季表現略好一些。

Adjusted EBITDA of USD99 million decreased 19% as productivity, synergies, footprint initiatives, favorable pricing, and the impact of cost actions were more than offset by lower volume and cost inflation. We delivered consolidated, adjusted, even a margin of 13.8%, a decrease of 180 basis points compared to the prior year, largely due to the impact of lower volume on operating leverage.

調整後的 EBITDA 為 9,900 萬美元，下降了 19%，因為生產力、協同效應、足跡計劃、優惠定價和成本行動的影響被產量下降和成本通膨所抵消。我們實現了合併調整後的利潤率為 13.8%，比前一年下降了 180 個基點，這主要是由於銷售下降對營運槓桿的影響。

We reported a GAAP net loss of USD41 million down from income of USDSD6 million in the prior year due to a non-cash loss on majority sale of Milicron. Adjusted earnings per share of USD0.60 decreased 21% versus the prior year. But exceeded our expectations as a result of favorable interest expenses and other corporate items. Our adjusted effective tax rate in the quarter was 30.9%, which was 280 basis points higher than the prior year due primarily to our geographic mix of income. However, we still expect our full year rate to be approximately 29%. Our cash flow from operations was approximately USD1 million in the quarter, consistent with the prior year and reflects the typical seasonality of our cash flow. Capital expenditures were USD9 million at the quarter, and we paid approximately USD160 million to shareholders through our quarterly dividend.

我們報告的 GAAP 淨虧損為 4,100 萬美元，低於前一年的 600 萬美元收入，原因是出售 Milicron 多數股權產生了非現金損失。調整後每股收益為 0.60 美元，較前一年下降 21%。但由於利息支出和其他公司項目的優惠，超出了我們的預期。本季我們的調整後有效稅率為 30.9%，比前一年高出 280 個基點，主要歸因於我們的收入地理分佈。不過，我們仍然預計全年利率約為 29%。本季我們的經營現金流約為 100 萬美元，與去年持平，反映了我們現金流的典型季節性。本季資本支出為 900 萬美元，我們透過季度股息向股東支付了約 1.6 億美元。

Now moving to segment performance, starting with VPS on slide 7.

現在轉到細分市場表現，從幻燈片 7 上的 VPS 開始。

Revenue of USD494 million decreased 12% compared to the prior year, governed by lower volumes due to lower starting backlog coming into the quarter. Adjusted EBITDA of USD79 million decreased 22% year over year, primarily due to lower volume and cost inflation, partially offset by productivity, synergies, and favorable pricing. We delivered adjusted even a margin in the quarter of 16%, which was down 200 basis points over the prior year.

營收為 4.94 億美元，與前一年相比下降了 12%，原因是本季開始的積壓訂單較少導致銷量下降。調整後的 EBITDA 為 7,900 萬美元，年減 22%，主要原因是銷售下降和成本通膨，但生產力、綜效和優惠定價部分抵銷了這一影響。我們本季的調整後利潤率為 16%，比前一年下降了 200 個基點。

Backlog of USD1.6 billion decreased 15% compared to the prior year. This is largely stemming from increased macro uncertainty from tariffs which led to weaker than expected orders in the quarter. Given the heightened level of volatility that remains in the market, our updated outlook does not assume these order patterns will improve in the second half of the fiscal year. Though, as Kim said, we remain confident in this persistent order weakness is macro-driven, not permanent, and that our competitive positioning remains strong.

積壓訂單16億美元，較前一年減少15%。這主要是由於關稅帶來的宏觀不確定性增加，導致本季訂單低於預期。鑑於市場波動性依然增強，我們更新後的展望並不認為這些訂單模式會在本財年下半年得到改善。不過，正如金所說，我們仍然相信，這種持續的訂單疲軟是由宏觀因素驅動的，而不是永久性的，而且我們的競爭地位仍然強勁。

Turn it to MTS on slide 8.

將其轉到幻燈片 8 上的 MTS。

Revenue of USD222 million decreased 2% year over year, largely due to unfavorable foreign exchange. Adjusted EBITDA of USD32 million decreased to 4%, and adjusted even a margin of 14.5% was down 40 basis points due to cost inflation, partially offset by productivity. Pricing remained challenged as we've discussed in previous quarters but was relatively stable and in line with expectations.

營收 2.22 億美元，年減 2%，主要原因是外匯不利。調整後的 EBITDA 為 3,200 萬美元，下降至 4%，調整後的利潤率為 14.5%，由於成本通膨而下降了 40 個基點，但部分被生產力所抵消。正如我們在前幾個季度所討論的那樣，定價仍然面臨挑戰，但相對穩定並符合預期。

Backlog of USD55 million now excludes the Milacron injection molding and extrusion business. Orders for our hot runner, mold-based components, and aftermarket parts and services were stable in the quarter and generally in line with expectations. The short cycle nature of this business can recover quickly and in a high flow through to the bottom line, but given the ongoing macro challenges, we're not assuming a broad-based recovery in the near term.

目前 5,500 萬美元的積壓訂單不包括米拉克龍注塑和擠壓業務。本季度，我們熱流道、模具組件以及售後零件和服務的訂單保持穩定，基本上符合預期。該業務的短週期特性使其能夠快速恢復，並大幅提升獲利能力，但鑑於持續存在的宏觀挑戰，我們並不認為短期內會出現廣泛的復甦。

Now turning to slide 9.

現在翻到第 9 張投影片。

Net debt at the end of the second quarter was USD1.46 billion and net debt to pro forma adjusted even a ratio was 3.4 times, inclusive of approximately USD265 million in cash proceeds from the majority sale in Milron, which was slightly above our initial estimate of USD250 million.

第二季末的淨債務為 14.6 億美元，淨債務與備考調整後餘額的比率為 3.4 倍，其中包括出售 Milron 多數股權所得的約 2.65 億美元現金收益，略高於我們最初估計的 2.5 億美元。

Additionally, as announced in our earnings press release yesterday, in conjunction with our joint venture partner, we have entered into a definitive agreement to sell the Tarsource global business for USD245 million with expected net proceeds to Hillenbrand of approximately USD100 million. The net proceeds will be used to pay down debt with a favorable impact or net leverage of roughly 0.2 times.

此外，正如我們昨天在收益新聞稿中宣布的那樣，我們與合資夥伴達成了最終協議，以 2.45 億美元的價格出售 Tarsource 全球業務，預計 Hillenbrand 的淨收益約為 1 億美元。淨收益將用於償還債務，產生有利影響或淨槓桿率約為 0.2 倍。

We expect the transaction to close late in our fiscal 3rd quarter or early fiscal 4th quarter 2025. We are pleased with the outcome of investment and the additional deleveraging benefit it provides. However, given the current environment, including the additional cost of tariffs, our deleverage path remains challenged. We currently expect our pro forma net leverage ratio to remain relatively consistent with the Q2 exit over the near term or until market conditions improve.

我們預計該交易將於 2025 財年第三季末或第四季初完成。我們對投資結果及其帶來的額外去槓桿效益感到滿意。然而，鑑於當前的環境，包括關稅的額外成本，我們的去槓桿之路仍然面臨挑戰。我們目前預計，短期內或直至市場狀況改善，我們的預測淨槓桿率將與第二季的退出保持相對一致。

Now turning to slide 10, I'll cover our updated guides.

現在翻到第 10 張投影片，我將介紹我們更新的指南。

As we've discussed during this call, the uncertain and unpredictable environment has prompted us to adjust our expectations for the remainder of the year. We now anticipate further demand pressure in the market, and that order levels will not improve over the first half of the year with the possibility they could decline further. We expect customers to continue postponing their decisions until there is greater clarity around tariff policies and the broader economic impact.

正如我們在本次電話會議中討論的那樣，不確定和不可預測的環境促使我們調整對今年剩餘時間的預期。我們現在預期市場需求壓力將進一步加大，上半年訂單水準不會改善，甚至可能進一步下降。我們預計客戶將繼續推遲他們的決定，直到關稅政策和更廣泛的經濟影響更加明朗。

Our updated outlook now assumes total revenue of approximately USD2.56 to USD2.62 billion balanced significantly from our previous guidance due to the impact of lower orders in the second quarter and the expectation for a soft order environment in the second half. Adjusted EBITDA is now USD363 to USD395 million reflecting the flow through impact of lower revenue and the impact of drug tariffs, partially offset by tariff mitigation actions and cost controls. Our outlook for adjusted earnings per share is now USD2.10 to USD2.45.

我們更新後的展望現在假設總收入約為 25.6 億美元至 26.2 億美元，與我們之前的指引相比有顯著平衡，原因是第二季度訂單減少的影響以及對下半年訂單環境疲軟的預期。調整後的 EBITDA 目前為 3.63 億美元至 3.95 億美元，反映了收入下降和藥品關稅的影響，但部分被關稅減免措施和成本控制所抵消。我們對調整後每股收益的預期目前為 2.10 美元至 2.45 美元。

Our updated full year operating cash flow is expected to be approximately USD120 million with USD40 million of expected cap backs as we prioritize it the first spend over the near term. This outlook includes approximately USD15 million of impact from direct tariffs. As Kim mentioned, these assumptions are based on tariff policy in place as of April 29th.

我們更新後的全年營運現金流預計約為 1.2 億美元，預計資本回報為 4000 萬美元，因為我們優先將其作為短期內的第一筆支出。這一前景包括直接關稅造成的約 1500 萬美元的影響。正如 Kim 所提到的，這些假設是基於 4 月 29 日實施的關稅政策。

Finally, for Q3, we expect revenue of USD569 million to USD583 million and adjusted earnings per share in the range of USD0.46 to USD0.53, lower sequentially primarily due to the impact of the Milacron transactionand the expected impact of tariffs. Please review slides 10 and 11 for additional guidance assumptions.

最後，對於第三季度，我們預計收入為 5.69 億美元至 5.83 億美元，調整後每股收益在 0.46 美元至 0.53 美元之間，環比下降主要由於米拉克龍交易的影響以及關稅的預期影響。請查看投影片 10 和 11 以了解更多指導假設。

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

說完這些，我就把電話轉回給你。

Thanks, Bob. Before we open up the line for Q&A, I'll end our prepared remarks with a few closing comments. I want to reiterate our commitment to navigating these challenging times with discipline and strategic focus. The steps we've taken to transform the portfolio, including the footprint and operating structure, have been crucial to successfully managing these changing dynamics with speed and coordination across the enterprise.

謝謝，鮑伯。在我們開始問答環節之前，我將以幾句結束語來結束我們準備好的演講。我想重申，我們致力於以紀律和策略重點來度過這些充滿挑戰的時期。我們為轉變投資組合（包括足跡和營運結構）所採取的措施對於在整個企業內以速度和協調的方式成功管理這些不斷變化的動態至關重要。

While the current macroeconomic conditions prevent near term headwinds, we remain confident in the underlying strength of our business, our brands, and most importantly, our people, as well as the long term growth potential for our end markets once macro conditions stabilize. As we move forward, we will continue to monitor the evolving landscape closely and adapt our strategies as needed. I'm proud of the team's dedication and resiliency and believe the work we are doing today will further strengthen the foundation we've been building for long-term success for Hillenbrand and for our shareholders.

雖然當前的宏觀經濟條件阻止了短期逆風的出現，但我們仍然對我們的業務、我們的品牌以及最重要的我們的員工的潛在實力充滿信心，並且一旦宏觀條件穩定下來，我們的終端市場的長期增長潛力也充滿信心。隨著我們不斷前進，我們將繼續密切關注不斷變化的形勢，並根據需要調整我們的策略。我為團隊的奉獻精神和韌性感到自豪，並相信我們今天所做的工作將進一步加強我們為希倫布蘭德和股東的長期成功奠定的基礎。

With that operator, please open the line for questions.

請與該接線員聯繫，以便我們解答疑問。

(Operator Instructions)

（操作員指示）

Our first question is coming from Matt Summerville from D.A. Davidson, Your line is now live.

我們的第一個問題來自 D.A. Davidson 的 Matt Summerville，您的線路現已通電。

Thanks. A couple of questions. First, just to give a little more granularity on the order trend, can you maybe describe the order cadence you saw in the business as the quarter unfolded and what you've seen thus far into April and specifically on APS, if you could give A little additional color around the food health nutrition side versus large plastics versus engineered plastics, and then I have a follow up.

謝謝。有幾個問題。首先，為了更詳細地介紹訂單趨勢，您能否描述一下本季度業務中的訂單節奏，以及截至 4 月的情況，特別是在 APS 方面，您是否可以提供一些關於食品健康營養方面、大型塑料和工程塑料的額外信息，然後我再跟進一下。

Thank you.

謝謝。

Hey Matt, yeah, morning and thanks for the question. So as we worked through the quarter, we were feeling pretty bullish about where we were through February. And then obviously with with Liberation Day as the world changed quite a bit, but specifically to order trends, orders were hanging in there through February and then, unfortunately we had some larger orders that were subject to tariff consideration, particularly within food health nutrition and particularly with between Canada and the US and some of those contracts were at the final stages of completion that unfortunately got put on hold. Now those contracts that that I'm speaking to are not lost, but certainly there's a reevaluation from our customer customer base on what that looks like. And then on the poly side of APS, I would say same thing, orders were generally hanging in there through February, but the macro uncertainty of what the tariff impacts would be caused customers to put that really a pause on. On that as well, we are seeing, subsequent to March close, we're seeing some in-country for country orders being in place, particularly in China. Nothing significant yet, but we're starting to see some of those things come to come to fruition. And then on the MTS side, I would highlight.

嘿，馬特，是的，早安，謝謝你的提問。因此，當我們完成本季的工作時，我們對二月的業績感到非常樂觀。然後顯然隨著解放日的到來，世界發生了很大變化，但具體到訂單趨勢，訂單一直持續到二月份，然後不幸的是，我們有一些較大的訂單需要考慮關稅，特別是在食品健康營養領域，特別是加拿大和美國之間的訂單，其中一些合約處於完成的最後階段，不幸的是被擱置了。現在，我所說的那些合約並沒有遺失，但我們的客戶群肯定會重新評估合約的情況。然後在 APS 的多方面，我想說的是同樣的事情，訂單通常會持續到 2 月份，但關稅影響的宏觀不確定性導致客戶真正暫停了這一進程。我們也看到，在三月底之後，我們看到一些國內訂單已經到位，特別是在中國。目前還沒有什麼重大進展，但我們開始看到其中一些事情開始取得成果。然後在 MTS 方面，我會專注於重點。

China is obviously a major component for our business, particularly with multinationals, and so we are seeing a pause, a hard pause on orders for that hot runner business in China with the likely move of those orders going to India and other Southeastern countries. And specifically to India more recently, although we haven't won any orders yet, we are seeing an increase in quo activity, particularly from customers that would have placed those orders in China.

中國顯然是我們業務的重要組成部分，尤其是跨國公司，因此我們看到中國熱流道業務的訂單暫停，嚴重暫停，這些訂單可能會轉移到印度和其他東南亞國家。具體來說，最近在印度，雖然我們還沒有贏得任何訂單，但我們看到訂單活動增加，特別是來自在中國下訂單的客戶。

Yeah, and that said, despite the situation that Bob referenced on the food health and nutrition, some of the pushouts we did, we saw, we also, as we did comment in the prepared remarks, we do see a year over year increase in FTM as they continue to, and our food health and nutrition group as they continue to work together to offer a fuller solution of products and capabilities into the market. We did continue to see growth again this quarter. So I think that the strategy of what we're trying to take into the market, the portfolio and the collaborative efforts across both the engineering and sales teams is, we are seeing the evidence of that in the commercial, performance in that business as well, just to clarify.

是的，儘管鮑勃提到了食品健康和營養方面的情況，但我們也看到了我們所做的一些推廣，正如我們在準備好的評論中所評論的那樣，我們確實看到 FTM 的同比增長，因為他們繼續，我們的食品健康和營養小組繼續合作，為市場提供更全面的產品和能力解決方案。本季我們確實繼續看到了成長。因此，我認為，我們試圖進入市場的策略、產品組合以及工程和銷售團隊的協作努力，我們在該業務的商業表現中也看到了這一點的證據，只是為了澄清一下。

Appreciate that. And then as a follow up, excuse me, maybe could you talk a little bit about where you're at with synergies with respect to some of the things you've done from an acquisitive standpoint, specifically the FHN related businesses, how you're tracking to that longer term target you've established, and then are there any other assets you would consider monetizing at this point, post the agreement on terror source that you referenced. Thank you.

非常感謝。然後作為後續問題，抱歉，您能否從收購的角度談談您在協同效應方面所取得的進展，特別是與 FHN 相關的業務，您如何實現已設定的長期目標，以及目前您是否考慮將其他資產貨幣化，並發布您提到的恐怖分子來源協議。謝謝。

Right. Relative to the integration piece, I will talk to some of the strategic and action-based, orientation that Bob's going to hit the numbers and we're going to reaffirm what we said last quarter that we are on track with that to achieve our synergies well ahead of schedule. Relative to the changes that have come across that group for integration, we've, it's everything from putting all of our global functions in place, putting our global supply management in place, putting the service, treating service as a separate business with separate leadership and process around it. The operating model has gone into place with leadership and the layers below leadership, the combining of the sales and commercial activities. Those, all of those activities have moved at a very, escalated pace, including some site consolidations. That we have that, two of which we've completed over the last, I'll call it 12 months. So I feel really encouraged with how quickly, especially how quickly the FPM team has come on board, in terms of being able to adapt, into the way we run our businesses and to be able to. To get those many, integration initiatives completed. So we feel very excited about how quickly that team has come on board and how quickly they're integrating in with the links of companies that we also purchased. So I'm going to let Bob hit the other, be more specific on some of the synergy topics, etc.

正確的。相對於整合部分，我將談論鮑伯將要達到的一些策略性和行動性的方向，我們將重申上個季度所說的，即我們正朝著這個目標前進，提前實現協同效應。相對於集團在整合過程中遇到的變化，我們已經做了一切，從落實所有全球職能，落實全球供應管理，到提供服務，將服務視為一項獨立的業務，並圍繞其設立獨立的領導和流程。此營運模式已實施，由領導階層和領導層以下各層組成，將銷售和商業活動結合起來。所有這些活動都以非常快的速度進行，包括一些場地合併。我們已經完成了其中兩項，我稱之為 12 個月。因此，我感到非常鼓舞，尤其是看到 FPM 團隊能夠如此迅速地融入我們經營業務的方式，並且能夠做到這一點。為了實現這些目標，我們完成了多項整合措施。因此，我們對該團隊的快速加入以及他們與我們購買的公司連結的快速整合感到非常興奮。所以我會讓鮑伯談談其他問題，更具體地討論一些協同作用主題等等。

Yeah, so, actually not in your second question, I think Kim's covered this topic, but on the, on your second question with other assets in the portfolio, listen, we continue to look at all of our businesses and assets to see if we're the right owner or not, and you saw us, make the. Decision to sell the Milacron business. You did see TerraSource as as you've highlighted here and so I would tell you, we continue to evaluate again, are we the right owners or not? We'll continue to make the right decisions for the business, as well as the businesses that we're looking at as well as those assets.

是的，所以，實際上不是在你的第二個問題中，我認為 Kim 已經涵蓋了這個主題，但是在你關於投資組合中的其他資產的第二個問題上，聽著，我們繼續審視我們所有的業務和資產，看看我們是否是合適的所有者，你看到我們做出了這樣的決定。決定出售米拉克龍業務。正如您在這裡強調的那樣，您確實看到了 TerraSource，所以我會告訴您，我們會繼續評估，我們是否是合適的所有者？我們將繼續為該業務以及我們正在關注的業務和那些資產做出正確的決策。

Got it. Thank you guys.

知道了。謝謝你們。

Thanks, Beth.

謝謝，貝絲。

Thank you. Next question today is coming from John Franzreb from Sidoti & Company. Your line is now live.

謝謝。今天的下一個問題來自 Sidoti & Company 的 John Franzreb。您的線路現已通電。

Good morning, everybody, and thanks for taking the questions. I'd like to go back to the four levers that you kind of targeted to offset the tariffs. Can you talk about which one you expect to make the most immediate impact and maybe a little bit more about the surcharges you plan to put in place and how targeted are they?

大家早安，感謝你們回答問題。我想回到您為抵消關稅而提出的四個槓桿。您能否談談您預計哪一個會產生最直接的影響，或者再多談談您計劃實施的附加費以及這些附加費的針對性如何？

Yeah, so I would say that the one that's going to have the largest impact your term is going to be really looking at our dual sourcing, John, on the surcharge pricing, there is some targeted pricing in certain aspects of both the EPS business and MTS. I think we'll see stronger pricing power within the EPS business, the MTS business, I'd remind you that we've seen pricing pressure for the last several years. With that being said, we have created a pricing desk that sits up top that analyzes the market where that is, as well as our cost and our pricing, including what our competitors are doing. And so I am comfortable that as that process continues to evolve, we are going to get the right pricing in place. But near term it's going to be more our procurement team that's doing a fantastic job providing Kim and myself literally daily updates with where we are. On on cost and the opportunities we are looking at this as a total cost of ownership. So are we better off, under a make for spy scenario? We're looking at alternative suppliers while also understanding what the tax impact would be. But we've been working on dual sourcing for a while, ever since COVID. There's just a couple more variables today than what we had, 90 days ago, but I'd say those are probably the two that I'd highlight right now, John.

是的，所以我想說，對您的任期影響最大的是真正關注我們的雙重採購，約翰，在附加費定價方面，EPS 業務和 MTS 的某些方面都有一些有針對性的定價。我認為我們將看到 EPS 業務、MTS 業務的定價能力增強，我想提醒大家，過去幾年我們已經看到了定價壓力。話雖如此，我們還是創建了一個定價台，用於分析市場現狀、我們的成本和定價，包括我們的競爭對手的做法。因此，我相信隨著這一進程的不斷發展，我們將會制定出正確的定價。但短期內，我們的採購團隊將發揮更大的作用，每天向 Kim 和我提供最新進展。關於成本和機會，我們將其視為總擁有成本。那麼，在間諜情境下，我們的情況會更好嗎？我們正在尋找替代供應商，同時也了解稅務影響。但自從新冠疫情爆發以來，我們一直致力於雙重採購。與 90 天前相比，今天的變數只多了幾個，但我想說，約翰，我現在要強調的可能是這兩個變數。

Makes sense. And Bob, of that USD15 million is any is any anything built in from those levers into that number or is that just an absolute number without any successes say in surcharges?

有道理。鮑勃，這 1500 萬美元中是否有任何內建在這些槓桿中的因素，或者這只是一個絕對數字，沒有任何成功的附加費？

So there's a little bit that's in this year that's included in that number, but never say never. I would like to think that's the high end of our exposure and again with the daily activities and dedicated resources that we have focused on this across government affairs, finance. And our procurement team, I think there's going to be opportunity to mitigate that as quickly as possible, but I tell you some of these things will be quick and some might take a couple of months to implement. So I feel better about, as we think about what this impact will be in 2026 with maybe some upside in 2025.

因此，今年有一點點已經包含在這個數字中，但永遠不要說永遠。我想認為這是我們曝光度的最高水平，而且我們每天都會開展活動，並投入專門的資源，重點關注政府事務和財政領域。我認為我們的採購團隊將有機會盡快緩解這種影響，但我告訴你們，有些事情會很快完成，有些可能需要幾個月的時間才能完成。因此，當我們思考這種影響在 2026 年會產生什麼影響，以及在 2025 年可能會產生一些好處時，我感覺好多了。

Okay, thanks for the clarity. And one last question, can you just walk us through the TerraSource, divestiture, the time of the cash and what went on there.

好的，謝謝你的澄清。最後一個問題，您能否向我們介紹 TerraSource、資產剝離、現金的時間以及當時發生的事情。

Sure, yeah, so TerraSource was an acquisition that we made back in 2010, as part of the Catron acquisition. And in October of 2021, we essentially sold 51% of this for really a note receivable for about USD26 million. Now that note did have interest being accrued and so as we close this transaction, that note will be approximately USD34 million. Okay. So the sales price of USDSD245 million that business will pay down debt that will include our USD34 million as well as some other third party loans, and then we'll pick up about 46% of the net proceeds and in total that'll be about, 30%. Million dollars from the note and about USD65 million from the net proceeds after paying down debt and so we'll get about USD100 million right now we're targeting that to be at the end of Q3 or early Q4 and you know as I mentioned in our prepared remarks, that will all go to paying down debt.

當然，是的，TerraSource 是我們在 2010 年收購的，是 Catron 收購的一部分。2021 年 10 月，我們基本上將其中的 51% 出售，換取了價值約 2,600 萬美元的應收票據。現在該票據確實有利息，因此當我們完成這筆交易時，該票據的價值將約為 3,400 萬美元。好的。因此，該業務的售價為 2.45 億美元，將償還債務，其中包括我們的 3,400 萬美元以及一些其他第三方貸款，然後我們將獲得約 46% 的淨收益，總計約為 30%。票據中的數百萬美元以及償還債務後的淨收益中的約 6500 萬美元，因此我們現在將獲得約 1 億美元，我們的目標是在第三季度末或第四季度初獲得該金額，正如我在準備好的評論中提到的那樣，這些資金將全部用於償還債務。

Got it. .

知道了。。

Thanks for the clarity, Bob. I'll get back into cue. Thanks.

謝謝你的澄清，鮑伯。我會重新回到提示中。謝謝。

Thank you. As a reminder, that one to be placed into question queue.

謝謝。提醒一下，這個問題需要放入問題隊列。

Our next question today is coming from Jeffrey Hammond from KeyBanc Capital Markets Your line is now live.

我們今天的下一個問題來自 KeyBanc Capital Markets 的 Jeffrey Hammond，您的線路現已上線。

Hey, good morning, everyone.

嘿，大家早安。

Morning.

早晨。

So, I just want to come back to the, surcharge pricing dynamic. It seems like, most of my other companies that have been reporting are talking about significant price actions and and you guys seem to be, a little more targeted. So I'm just wondering maybe. Why not lean in more on on price and surcharges and just maybe for background, talk through the inflationary pressures you saw during COVID and supply chain and how you were able to push price and why, that might be, more difficult or different today.

所以，我只想回到附加費定價動態問題。看起來，我的大多數其他公司都在報告重大價格行動，而你們似乎更有針對性。所以我只是想知道也許。為什麼不更多地關注價格和附加費，也許只是作為背景，談談您在 COVID 和供應鏈期間看到的通膨壓力，以及您如何能夠推高價格，以及為什麼今天這可能會更加困難或有所不同。

A couple of things, Jeff, for good morning. Thanks for the question. So during COVID, our supply chain was, did have a lot more exposure to specifically China, which created challenges for us as well as many other companies, as from stoppage of supply, inability to get goods transported logistically out of the country pending shutdowns too low a supply of ships, etc., So we during COVID and post-COVID have very much focused on an in region for region type of approach for as much of our supply base as we could economically put in each region. So, we, I think you've heard us say before we like to approach this in region for region, we make where we sell and we buy where we make. And so in large part we have mitigated a lot of the exposure that we saw during COVID. I think the difference between COVID and the period that we've just gone through is the demand situation. During COVID. There were for our business. I know not for every business, but for our business you saw an extremely escalated demand and so you had a lot more during that time of very high demand and very high backlogs. Everyone had a lot more pricing capability. Now, as we have said, the APS business has significantly better pricing. Capability in the business, especially because those contracts happen over the long term. You can write the contracts such that, we work with our customers to determine, when these contracts aren't going to execute for 1 year or 2 years, you don't know exactly what the tariff situation is going to look like at the time you're required to deliver the products. And so, really more of that business is focused on making sure that you have the right language so that everybody recognizes how those costs are going to be covered if they are in place when the product delivers 12 or 24 months from now.

傑夫，早安，有幾件事要說。謝謝你的提問。因此，在疫情期間，我們的供應鏈確實更依賴中國，這給我們以及許多其他公司帶來了挑戰，例如供應中斷、無法透過物流將貨物運出國外、停工、船舶供應量過低等。因此，在疫情期間和疫情後，我們非常注重在區域內對區域的方式，盡可能地將我們的供應基地經濟地放在每個地區。所以，我想您之前已經聽我們說過，我們喜歡按地區來處理這個問題，我們在銷售的地方生產，在生產的地方購買。因此，在很大程度上，我們減輕了在 COVID 期間看到的許多暴露。我認為 COVID 與我們剛剛經歷的時期的區別在於需求情況。在 COVID 期間。這是為了我們的生意。我知道不是每個企業都是這樣，但對我們的企業來說，需求急劇增加，因此在需求非常高、積壓量非常大的時期，我們的業務量會更大。每個人的定價能力都增強了。現在，正如我們所說，APS 業務的定價明顯更優惠。業務能力，特別是因為這些合約是長期的。您可以這樣寫合同，我們與客戶一起確定，當這些合同在 1 年或 2 年內不會執行時，您不知道在需要交付產品時關稅情況究竟會是什麼樣的。因此，實際上，該業務的更多重點是確保使用正確的語言，以便每個人都知道，如果在 12 或 24 個月後產品交付時這些成本已經到位，那麼這些成本將如何得到彌補。

That business has, as we have discussed in many previous quarterly calls, that business has the ability to be very transparent about those costs, whether it's logistics or tariffs or whatever the case may be and have that all transparently documented and carried through in the contracting because the way we quote in that. When you've got a quick turn business like we do in the MTS business, your ability, especially with lower demand, as we have seen in on the MTS side of the house, with lower demand, a lot of capacity out there, and everybody fighting for volume, you see a lot of pricing pressure in this space. Hopefully that helps clarify the situation on, kind of that tale of two cities a bit.

正如我們在之前的許多季度電話會議中所討論的那樣，該業務能夠非常透明地展示這些成本，無論是物流還是關稅，或者其他任何情況，並且所有這些都透明地記錄下來並在簽訂合約時貫徹執行，因為我們的報價方式。當你擁有像我們在 MTS 業務中所做的那樣的快速週轉業務時，你的能力，特別是在需求較低的情況下，正如我們在 MTS 方面所看到的那樣，需求較低，產能很大，每個人都在爭奪產量，你會看到這個領域有很多定價壓力。希望這有助於澄清有關「兩個城市的故事」的情況。

Okay, that's helpful. So just to be clear on that, the USD15 million, you're kind of building in your guide that that's kind of fully unmitigated and maybe you can move some stuff around. But if we look, a year out and that's the number, on a half year USD30 million annualized, if we look a year out, what do you think you can do in terms of, getting that number down or offsetting it, with other actions, whether it be price or otherwise.

好的，這很有幫助。因此，為了明確這一點，您在指南中建立了 1500 萬美元，這是完全不受限制的，也許您可以移動一些東西。但如果我們看一下，一年後，這個數字是，半年期的年化收益為 3000 萬美元，如果我們看一下一年後，您認為您可以做些什麼來降低這個數字或通過其他行動來抵消它，無論是價格還是其他方面。

Yeah, I think a year from now, Jeff, I'm not sure I can commit to all of it, but I, based on the things we see, I would expect most of it to be to be mitigated. The USD30 million dollar number, by the way, is probably a bit on the high end because we are seasonally stronger in the second half. So that 15 is probably in the mid-20s as you think about an analyzed annualized number. But again, some of these actions going in place are already, in the works, and so I think 2026 will be able to mitigate most of that.

是的，傑夫，我認為一年後，我不確定我是否可以全力以赴，但根據我們所看到的情況，我預計大部分問題都會得到緩解。順便說一句，3000 萬美元這個數字可能有點偏高，因為我們下半年的季節性表現更為強勁。因此，當您考慮分析的年化數字時，15 可能處於 20 年代中期。但同樣，其中一些行動已經在實施中，因此我認為 2026 年將能夠緩解大部分影響。

Okay, thank you.

好的，謝謝。

Thank you. Next question is coming from Daniel Moore from CJS Securities. Your line is now live.

謝謝。下一個問題來自 CJS Securities 的 Daniel Moore。您的線路現已通電。

Thank you. Good morning, Kim. Good morning, Bob. Touched on it, Kim, I think, but maybe just an update on parts and service business. Are they holding up, as you would expect, given the obviously incremental challenging macro environment.

謝謝。早上好，金。早安，鮑伯。Kim，我想，我已經談過這個問題了，但可能只是關於零件和服務業務的更新。鑑於明顯日益嚴峻的宏觀環境挑戰，他們是否能如您所期望的那樣堅持下去？

Yeah, I could take that one, Dan. So, in the quarter, aftermarket revenue was down low single digits, but sequentially up high single digits. Now, when you, when you double click on that, I'd say, one of the, the downturns we're seeing is just with lower original equipment and Large equipment orders being placed. We generally sell a spare parts package along with that, and so we're seeing a bit of delay on that front. But on the flip side, the true break fix of aftermarket is doing well and so we continue to focus our our team on some of that break fix and being proactive with customers to continue to grow that business.

是的，我可以接受這個，丹。因此，在本季度，售後市場收入下降了個位數，但環比增長了個位數。現在，當你雙擊它時，我想說，我們看到的衰退之一就是原始設備和大型設備訂單的減少。我們通常會同時出售備件包，因此我們在這方面看到了一些延遲。但另一方面，售後市場的真正故障修復做得很好，因此我們繼續將團隊的重點放在部分故障修復上，並積極主動地與客戶合作，以繼續發展該業務。

That's helpful, Bob. Correct me if I, if I'm wrong on the numbers, but at the midpoint, your EBITDA guide is lower by about USD50 million, but your OCF guide lower by about USD80 million relative to initial expectations. How much of the delta is lower upfront payments for large projects? How much is kind of inflationary pressures on COGS just help us kind of think about that.

這很有幫助，鮑伯。如果我的數字有誤，請糾正我，但在中間點，您的 EBITDA 指南比最初的預期低了約 5000 萬美元，但您的 OCF 指南比最初的預期低了約 8000 萬美元。對於大型專案來說，較低的預付款佔差額的多少？通膨壓力對 COGS 的影響有多大可以幫助我們思考這個問題。

Yeah, so our, so you're right on the, on the key but our free cash flow we've brought down from USD105 million in Q1 to USD80 million now, Dan, and that's about earnings of about USD25 million as well as some additional small reduction restructuring payments associated with some of the EPS activities we're doing, and that's partially offset by CapEx. Just reducing, cap back as we, monitor where we are on the macro and certainly in the environment. But, outside of that, it's going to be continued focus on trade working capital. We continue to make good progress on that front, each quarter.

是的，所以，您在關鍵問題上是對的，但我們的自由現金流已從第一季的 1.05 億美元降至現在的 8000 萬美元，丹，這大約是 2500 萬美元的收益，以及與我們正在進行的一些 EPS 活動相關的一些額外的小額減量重組付款，這部分被資本支出所抵消。只是減少，限制，監控我們在宏觀上的位置，當然還有在環境中的位置。但除此之外，我們將繼續關注貿易營運資金。我們每季都在這方面取得良好進展。

Alright, I appreciate that. I'll check that, just looking specifically at kind of legacy coerian businesses and I'm thinking large plastics engineered plastics. When do we need to see orders start to pick up in order to be, flat or, potentially generate some positive revenue growth in fiscal 26, it's just given the nature of, kind of longer term. Nature of some of those projects, when we need to see things turn to to start, kind of thinking about inflecting positively from a revenue perspective.

好的，我很感激。我會檢查一下，只是特別關注傳統的科瑞安業務，我認為是大型塑膠工程塑膠。我們什麼時候需要看到訂單開始回升，才能在 26 財年保持平穩或可能產生一些正收入成長，這只是考慮到長期性質。當我們需要看到事情開始轉變時，我們會考慮從收入角度進行正向轉變。

Yeah, so as you forecast, as we forecast what 2026 will look like, it's going to be under a significant amount of pressure for that to be for 2026 to be higher than 2025. We really need to see orders coming in the last, I'd say the last month and into Q3. And so, as I see here today, we're expecting to end the year with lower backlog in that in that poly business and it's unfortunate because again we're doing well through February. The pipelines still remain strong. Testing facilities are 100% full, but you know I would expect that orders are going to be continued under pressure here for, another couple of months so hopefully the tariff uncertainty is a little bit more clear.

是的，正如您所預測的那樣，正如我們預測的那樣，2026 年的成長率將高於 2025 年，這將面臨巨大的壓力。我們確實需要看到上個月，也就是上個月和第三季的訂單。因此，正如我今天在這裡看到的，我們預計今年年底聚合物業務的積壓訂單會減少，這很不幸，因為我們在二月的表現仍然很好。管道依然堅固。測試設施已滿 100%，但您知道，我預計這裡的訂單將在未來幾個月繼續承受壓力，因此希望關稅的不確定性能夠更加明確一些。

Understood, makes perfect sense. And just lastly, maybe it's maybe you already touched on it, but your revised guidance just it implies, what does it imply from a macro perspective obviously you're, I think you're prudently not anticipating or expecting a pickup in orders. Are you, are we thinking, kind of mild recession, more meaningful fall off. Or just sort of status quo, with where we sit today for, the next several months. Thanks again for the call.

明白了，非常有道理。最後，也許您已經提到過這一點，但您修改後的指導意見只是暗示，從宏觀角度來看，它意味著什麼？顯然，我認為您謹慎地沒有預期或期望訂單增加。您是否認為，我們是否認為，這是溫和的衰退，還是更有意義的衰退。或者只是現狀，即我們今天所處的位置以及未來幾個月的情況。再次感謝您的來電。

Yeah, as we say here today, we're assuming that orders declined from where they were in 2024, so I guess I'd probably put that in the mild recession case, Dan, as you think about the guide we gave when we entered the year, we were, you think about CapEx, for instance, we were cautious on some of the investments that we were projecting, knowing that if, the market turned around a little bit quicker, we'd be in investment mode. So, we kind of entered the year thinking maybe a recession and as we say today, it's a little bit, I, I'd say more in that camp. So we're going to continue with the fundamentals we've been working on discretionary cost, prioritizing cap backs, and focusing on, TRY working capital and those things that are in control, but we're being, I'd say pretty cautious as far as, where we're spending our dollars right now.

是的，正如我們今天在這裡所說的那樣，我們假設訂單量會從 2024 年的水平下降，所以我想我可能會把它放在輕度衰退的情況下，丹，當你想到我們在進入今年時給出的指導時，我們，例如，想想資本支出，我們對我們預測的一些投資持謹慎態度，因為我們知道，如果市場好轉得更快一些，我們就會進入投資模式。所以，我們在進入今年時就想到了可能會出現經濟衰退，正如我們今天所說的那樣，情況有點，我，我想說更多的是這種趨勢。因此，我們將繼續堅持我們一直在努力解決的基本問題，即可自由支配的成本、優先考慮資本回籠、並重點關注 TRY 營運資本和那些可控的事情，但就我們現在花錢的地方而言，我想說，我們非常謹慎。

Understood, thank you.

明白了，謝謝。

Thank you. We've reached the end of our question and answer session. I'd like to turn the floor back over to Kim for any further closing comments.

謝謝。我們的問答環節已經結束。我想將發言權交還給金，請他發表進一步的結論。

Thanks again for joining us, everyone on our 2nd quarter call. We appreciate your ownership and interest in Hillenbrand and look forward to talking with you again this summer when we will cover our 3rd quarter results. Thank you and have a great rest of your day.

再次感謝大家參加我們的第二季電話會議。我們感謝您對 Hillenbrand 的所有權和興趣，並期待今年夏天在我們討論第三季業績時再次與您交談。謝謝您，祝您今天剩餘時間過得愉快。

Thank you.

謝謝。