Helios Technologies Inc (HLIO) 2024 Q3 法說會逐字稿

Ladies and gentlemen, greetings, and welcome to the Helios Technologies third-quarter 2024 financial results conference call. (Operator Instructions)

女士們、先生們，大家好，歡迎參加 Helios Technologies 2024 年第三季財務業績電話會議。（操作員說明）

As a reminder, this conference is being recorded. It is now my pleasure to introduce your host, Tania Almond, Vice President of Investor Relations and Corporate Communications. Please go ahead.

提醒一下，本次會議正在錄製中。現在我很高興向您介紹主持人，投資者關係和企業傳播副總裁 Tania Almond。請繼續。

Thank you, operator, and good day everyone. Welcome to the Helios Technologies third-quarter 2024 financial results conference call. We issued a press release announcing our results yesterday afternoon. If you do not have that release, it is available on our website at hlio.com. You will also find slides there that will accompany our conversation today.

謝謝您，接線生，祝大家有美好的一天。歡迎參加 Helios Technologies 2024 年第三季財務業績電話會議。我們昨天下午發布了一份新聞稿，宣布了我們的結果。如果您沒有該版本，可以在我們的網站 hlio.com 上取得。您還可以在那裡找到伴隨我們今天談話的幻燈片。

On the line with me is Sean Bagan, Interim President, Chief Executive Officer, and Chief Financial Officer. Sean will review our third quarter results along with our outlook for the remainder of 2024. We will then open the call to your questions.

和我一起在線的是臨時總裁、執行長兼財務長 Sean Bagan。Sean 將回顧我們第三季的業績以及我們對 2024 年剩餘時間的展望。然後我們將開始電話詢問您的問題。

If you turn to slide 2, you will find our Safe Harbor statement. As you may be aware, we will make some forward-looking statements during this presentation and the Q&A session.

如果您翻到投影片 2，您會找到我們的安全港聲明。如您所知，我們將在本次演示和問答環節中做出一些前瞻性陳述。

These statements apply to future events that are subject to risks and uncertainties, as well as other factors that could cause actual results to differ materially from those presented today. These risks and uncertainties and other factors have been provided in our 10-K filing as well as our upcoming 10-Q to be filed with the Securities and Exchange Commission.

這些陳述適用於受風險和不確定性以及可能導致實際結果與今天呈現的結果有重大差異的其他因素影響的未來事件。這些風險和不確定性以及其他因素已在我們的 10-K 文件以及即將向美國證券交易委員會提交的 10-Q 文件中提供。

You can find these documents on our website or at sec.gov. I'll also point out that during today's call, we will discuss some non-GAAP financial measures, which we believe are useful in evaluating our performance. You should not consider the presentation of this additional information in isolation or as a substitute for results prepared in accordance with GAAP.

您可以在我們的網站或 sec.gov 上找到這些文件。我還要指出，在今天的電話會議中，我們將討論一些非公認會計準則財務指標，我們認為這些指標有助於評估我們的績效。您不應孤立地考慮此附加資訊的呈現，也不應將其視為根據 GAAP 準備的結果的替代品。

We have provided reconciliations of comparable GAAP with Non-GAAP measures in the tables that accompany today's slides.

我們在今天的投影片隨附的表格中提供了可比較 GAAP 與非 GAAP 指標的調整表。

Please reference slides 3 and 4 now. With that, it's my pleasure to turn the call over to Sean.

現在請參考投影片 3 和 4。至此，我很高興將電話轉給肖恩。

Thanks, Tania and welcome everyone. We appreciate you joining us today.

謝謝，塔妮亞，歡迎大家。我們感謝您今天加入我們。

I would like to start the call with a heartfelt thank you to our suppliers, customers, business partners and importantly the global Helios team as we made advancements in the business during a challenging period for the organization. We delivered a solid quarter and made further improvements to our financial profile. We hit sales within our guidance range for the quarter while contending with contracted markets.

在通話開始時，我謹向我們的供應商、客戶、業務合作夥伴，尤其是全球 Helios 團隊表示衷心的感謝，因為我們在組織面臨挑戰的時期取得了業務進步。我們實現了穩健的季度業績，並進一步改善了我們的財務狀況。我們在本季度的指導範圍內實現了銷售額，同時與合約市場競爭。

We generated nearly $35 million in cash and reduced debt by over $19 million. Our strong cash generated from operations is up almost three-fold as we continue to unlock working capital. These results validate the progress we are making with enhanced discipline around costs, capturing efficiencies, managing inventory, and honing our capital priorities.

我們產生了近 3500 萬美元的現金，並減少了超過 1900 萬美元的債務。隨著我們繼續釋放營運資金，我們營運產生的強勁現金幾乎增加了三倍。這些結果驗證了我們在加強成本控制、提高效率、管理庫存和優化資本優先事項方面所取得的進展。

We also had meaningful margin improvement on lower sales reflecting the team's effort to align costs with current conditions, reduce input costs, drive manufacturing productivity, and realize the expected cost adjustments primarily from the officer transition. We utilized our excess cash to reduce debt for the fifth consecutive quarter and have brought down our net debt to adjusted EBITDA leverage ratio to 2.8 times.

我們在銷售額下降的情況下也實現了有意義的利潤率改善，這反映出團隊努力使成本與當前條件保持一致，降低投入成本，提高製造生產力，並主要透過官員過渡實現預期成本調整。我們連續第五個季度利用多餘現金減少債務，並將淨債務與調整後 EBITDA 槓桿率降至 2.8 倍。

Over the course of a two-month period, we faced three hurricanes here in Florida, two within two weeks of each other, including a direct hit to Sarasota by Category 3 Hurricane Milton. We can count our blessings because every member of the Helios and Sun Hydraulics teams made it through without injury.

在兩個月的時間裡，我們在佛羅裡達州遭遇了三場颶風，兩週內兩次，其中包括三級颶風米爾頓直接襲擊薩拉索塔。我們可以慶幸的是，Helios 和 SunHydraulics 團隊的每位成員都安然度過了難關。

Operations were shut down for 18 cumulative shifts throughout these storms. One of our three manufacturing facilities in Sarasota requires some additional repair before it is 100% operational. All things considered we pulled through relatively well.

在這些風暴期間，累計有 18 個班次的營運被關閉。我們位於薩拉索塔的三個製造工廠之一需要進行一些額外的維修才能 100% 運作。從各方面考慮，我們都相對順利地度過了。

Additionally, many of our people had to deal with the destruction the hurricanes caused to their homes and families. Our global Helios team stepped up wholeheartedly and contributed much needed supplies and support for us and our community. Their physical and emotional support touched everyone here and we cannot thank them enough.

此外，我們許多人還必須應對颶風對其家園和家人造成的破壞。我們的全球 Helios 團隊全心全意地挺身而出，為我們和我們的社區提供急需的物資和支援。他們的物質和情感支持感動了這裡的每個人，我們對他們感激不盡。

It is a testament to the incredible people that we have in our organization and the shared values that we all live by every day. While I am encouraged by the progress the team is making to improve the underlying fundamentals of the business, given extended weakness in key end markets combined with the operational impacts of the storms, we are updating our guidance for the remainder of the year.

這證明了我們組織中擁有令人難以置信的員工以及我們每天賴以生存的共同價值觀。雖然我對團隊在改善業務基本面方面取得的進展感到鼓舞，但考慮到關鍵終端市場的持續疲軟以及風暴的營運影響，我們正在更新今年剩餘時間的指導。

I'll turn now to discuss our results for the quarter in further detail on slides 5 through 8. Sales were $195 million, near the midpoint of our quarterly guidance and down 3% compared with last year. Strong sales in health and wellness over the year ago period partially offset the continued weakness in the agriculture, industrial and recreational markets.

我現在將在投影片 5 至 8 中進一步詳細討論我們本季的業績。銷售額為 1.95 億美元，接近我們季度指引的中點，與去年相比下降 3%。去年同期健康和保健領域的強勁銷售部分抵消了農業、工業和娛樂市場的持續疲軟。

The third quarter contains our typical patterns which generally tend to be lighter than our second quarter, especially in Europe with the summer holiday shutdowns and maintenance work. The extended market weakness that we are seeing are reflected in the declines in both Hydraulics and Electronics sales year-over-year.

第三季包含我們的典型模式，通常比第二季輕，特別是在歐洲，因為暑假停工和維護工作。我們看到的市場持續疲軟反映在液壓和電子產品銷售額的年減。

By region, sales in APAC were the relative bright spot, as there were declines in EMEA and the Americas when comparing with last year. During this time, we remain focused on bringing our best effort to customers with respect to quality, service levels, and responsiveness.

按地區劃分，亞太地區的銷售額相對亮點，而歐洲、中東和非洲地區和美洲地區的銷售額較去年有所下降。在此期間，我們仍然致力於在品質、服務水準和回應能力方面盡最大努力為客戶提供服務。

We are reducing our lead times, continuing to invest in product innovation, and staying very close to our customers. Our Sun Hydraulics past due backlog is at a 12-month low as we have stabilized from the post-Daman acquisition integration period, particularly as it relates to supply bottlenecks created from our manifolds Center of Excellence. The team is actively accelerating delivery dates and driving order commitment improvements.

我們正在縮短交貨時間，繼續投資於產品創新，並與客戶保持密切聯繫。我們的 SunHydraulics 逾期積壓訂單處於 12 個月以來的最低點，因為我們已經從達曼收購後的整合期中穩定下來，特別是因為它與我們的歧管卓越中心造成的供應瓶頸有關。該團隊正在積極加快交貨日期並推動訂單承諾的改進。

Our gross margin expanded 150 basis points over last year despite $7 million in lower sales and the mix weighting of our Balboa business. Concerted efforts to reduce overhead costs as well as lower material costs have benefited gross profit. We believe we will continue to make progress toward our goal of returning to the mid-to-high 30% range for gross margin over time from a combination of enhanced cost controls, productivity improvements, and most importantly, growing volume.

儘管銷售額下降了 700 萬美元，而且巴爾博亞業務的混合權重有所下降，但我們的毛利率比去年增長了 150 個基點。減少管理費用和材料成本的共同努力使毛利受益。我們相信，透過加強成本控制、提高生產力以及最重要的是不斷增長的銷量，我們將繼續朝著毛利率恢復到 30% 中高水平的目標取得進展。

This includes the optimization of our manufacturing operations. For example, we have had line transitions from Tulsa to Tijuana, stood up our two Hydraulics Centers of Excellence in the Americas last year, and we are aligning manufacturing processes regionally in EMEA and APAC for improved efficiencies.

這包括優化我們的製造業務。例如，我們已經將生產線從塔爾薩轉移到蒂華納，去年在美洲建立了兩個液壓卓越中心，我們正在調整歐洲、中東和非洲和亞太地區的製造流程以提高效率。

Operating margin of 11.4% was up 450 basis points from last year. Non-GAAP adjusted operating margin of 16.6% was up 290 basis points from last year. We have steadily improved operating margin through the year even as depressed sales from challenging end market conditions.

營業利益率為 11.4%，比去年上升 450 個基點。非 GAAP 調整後營業利潤率為 16.6%，比去年上升 290 個基點。儘管終端市場條件嚴峻導致銷售低迷，但我們全年的營業利潤率仍穩定提高。

Adjusted EBITDA margin expanded 320 basis points over the prior year period. These favorable variances reflect gross margin improvement, cost control measures, and the previously mentioned expected cost adjustment.

調整後 EBITDA 利潤率較上年同期擴大 320 個基點。這些有利的差異反映了毛利率的改善、成本控制措施以及前面提到的預期成本調整。

Our effective tax rate in the third quarter was 14% and was primarily due to an overall increase in discrete tax benefits driven by the officer transition in July 2024. We now expect our effective tax rate for the full year of 2024 to be in the range of 20% to 21%.

我們第三季的有效稅率為 14%，主要是由於 2024 年 7 月的官員換屆推動了離散稅收優惠的整體增加​​。我們現在預計 2024 年全年的有效稅率將在 20% 至 21% 之間。

Diluted EPS was $0.34 in the quarter, up 209% over last year. Diluted non-GAAP EPS was $0.59 in the quarter, up 34% over last year. Starting on slide 9, I'll give more color by segment.

本季稀釋後每股收益為 0.34 美元，比去年同期成長 209%。本季稀釋後非 GAAP 每股收益為 0.59 美元，比去年同期成長 34%。從幻燈片 9 開始，我將逐段提供更多顏色。

Hydraulics sales declined 2% over the prior year period with gross profit dollars flat. The 2% sales decline was driven by declines in agriculture, partially offset by growth in the industrial and mobile end markets. Foreign exchange had a $600,000 favorable impact on segment sales.

液壓銷售額比去年同期下降 2%，毛利持平。2% 的銷售額下降是由農業下降造成的，但部分被工業和行動終端市場的成長所抵消。外匯對部門銷售產生了 60 萬美元的有利影響。

Power and Motion recently published statistics from the National Fluid Power Association, reflecting the continued industry decline in total fluid power shipments of 14.9% in August 2024 compared to the previous year, as shown in our supplemental slides.

Power and Motion 最近發布了國家流體動力協會的統計數據，反映出 2024 年 8 月行業流體動力總出貨量與前一年相比持續下降 14.9%，如我們的補充幻燈片所示。

We also just received the September data, and it reflects a 13.9% annual decline. The ag economy barometer published by Purdue University, along with the AEM A tractor and Combine report continue to reflect the US agriculture market remains in decline. We are seeing these trends reflected in our hydraulics sales.

我們也剛收到 9 月的數據，年率下降 13.9%。普渡大學發布的農業經濟晴雨表以及 AEM A 拖拉機和聯合收割機報告繼續反映出美國農業市場仍在下滑。我們看到這些趨勢反映在我們的液壓系統銷售中。

We have maintained investments in new products and we'll continue to protect this investment as it's the lifeblood of Helios. This quarter, Sun Hydraulics announced a high-capacity electro proportional flow control valve solution. The FPJP valve takes full advantage of Sun's XMD Series valve driver co-developed in partnership with Helios operating company, Enovation Controls, demonstrating the power of our integrated strategy.

我們一直保持對新產品的投資，並將繼續保護這項投資，因為它是 Helios 的命脈。本季度，SunHydraulics 推出了一款大容量電比例流量控制閥解決方案。FPJP 閥門充分利用了 Sun 與 Helios 營運公司 Enovation Controls 共同開發的 XMD 系列閥門驅動器，展示了我們整合策略的力量。

Sun also commercialized Energen in the quarter, and we have multiple pilot customers currently working to bring this into production. In addition, the Hydraulics team has a handful of new product launches planned before year-end with a robust product pipeline that will continue to expand.

Sun 也將在本季將 Energen 商業化，我們目前有多位試點客戶正在努力將其投入生產。此外，液壓團隊還計劃在年底前推出一些新產品，並擁有將繼續擴大的強大產品線。

Gross profit was relatively unchanged year over year, while gross margin expanded 50 basis points on lower overhead. Operating income grew 32%, driven by targeted cost controls in the current demand environment, along with previously mentioned allocation of expected cost adjustments. Run rate SEA expenses declined over last year, displaying our work to adjust to changing market conditions and customer order timings.

毛利比去年同期相對不變，而毛利率因管理費用降低而擴大了 50 個基點。在當前需求環境下有針對性的成本控制以及先前提到的預期成本調整分配的推動下，營業收入增加了 32%。運行率 SEA 費用比去年有所下降，這表明我們為適應不斷變化的市場條件和客戶訂單時間所做的努力。

Turning to slide 10. I'll now discuss the electronics segment.

轉到投影片 10。我現在將討論電子領域。

Year over year, electronics sales declined 6%. Continued strength in health and wellness partially offset declines in recreational, industrial, and mobile markets. In the quarter, Balboa launched a new compact Climate Zone 2 heat pump, along with new touch pads and advanced controllers, which have been integrated into several customers' cold plunge products.

電子產品銷售額較去年同期下降 6%。健康和保健領域的持續強勁部分抵消了娛樂、工業和行動市場的下滑。本季度，Balboa 推出了一款新型緊湊型 Climate Zone 2 熱泵，以及新型觸控板和先進控制器，這些產品已整合到多家客戶的冷浸產品中。

We also released a new Spot Touch 4 display with upgraded software and light controllers that have been adopted by several spa OEMs. We also continue to invest in new display and control platforms from innovation controls with electronic subsystem solutions launches planned in Q4 and early 2025.

我們還發布了一款新的 Spot Touch 4 顯示屏，其軟體和燈光控制器已升級，已被多家水療中心 OEM 所採用。我們也持續投資於創新控制的新顯示和控制平台，並計劃在第四季和 2025 年初推出電子子系統解決方案。

We are encouraged by the early customer reception of recent display product launches cutting across multiple industries, including the 1 and 15-inch Ultimate Series, the 7-inch Pro Series, and the 10.25-inch custom display in the recreational space.

我們對最近推出的跨多個行業的顯示器產品（包括 1 英寸和 15 英寸 Ultimate 系列、7 英寸 Pro 系列以及娛樂空間中的 10.25 英寸定制顯示器）的早期接受感到鼓舞。

Electronics gross profit was up $1 million, while gross margin expanded 330 basis points over last year, reflecting the concerted focus on operational efficiencies and facility footprint optimizations.

電子產品毛利增加了 100 萬美元，毛利率比去年增長了 330 個基點，反映出對營運效率和設施佔地面積優化的一致關注。

Operating income grew 62% from gross profit benefits along with previously mentioned allocation of expected cost adjustments. Run rate SG&A expenses in this segment also declined over last year, displaying our work to adjust to changing market conditions and customer order timings.

得益於毛利收益以及前面提到的預期成本調整分配，營業收入增加了 62%。該細分市場的運作率 SG&A 費用也比去年有所下降，這表明我們為適應不斷變化的市場條件和客戶訂單時間所做的努力。

Slide 11 clearly presents how effective our cash management efforts have been with a free cash flow conversion rate of 244%. We generated cash from operations of $34.8 million in the quarter, up nearly 3 times over the third quarter of last year.

投影片 11 清楚地展示了我們的現金管理工作的有效性，自由現金流轉換率為 244%。本季我們的營運現金為 3,480 萬美元，比去年第三季成長近 3 倍。

We continue to reduce inventory, which is now down 7% since the end of last year. This is a meaningful part of our efforts to improve our liquidity profile as we finish out 2024. Capital expenditures in the quarter were $6 million or 3% of sales.

我們繼續減少庫存，目前庫存比去年年底下降了 7%。這是我們在 2024 年結束時改善流動性狀況的努力的一個有意義的部分。本季的資本支出為 600 萬美元，佔銷售額的 3%。

Spending is focused on strategic investments in operational improvement and productivity, including machines, tooling, and footprint optimization. Based on the investments we have made over the last couple of years, our capital expenditure needs will be driven primarily by maintenance and opportunistic investments for the foreseeable future.

支出主要用於營運改善和生產力方面的策略投資，包括機器、工具和占地面積優化。根據我們過去幾年的投資，在可預見的未來，我們的資本支出需求將主要由維護和機會性投資所驅動。

Turning to slide 12. At the end of the third quarter, cash and cash equivalents were $47 million, and we had $325 million available on our expanded revolver. Despite year-to-date sales contraction, total debt was down 8% or $41 million from the end of fiscal year 2023 and has shown steady declines over the last five quarters, bringing our net debt to adjusted EBITDA leverage ratio down to 2.8 times.

轉到投影片 12。截至第三季末，現金和現金等價物為 4,700 萬美元，我們擴大後的左輪手槍可用資金為 3.25 億美元。儘管今年迄今的銷售額出現收縮，但總債務較2023 財年末下降了8%，即4100 萬美元，並且在過去五個季度中呈穩步下降趨勢，使我們的淨債務與調整後EBITDA 槓桿率降至2.8 倍。

We have a solid balance sheet and the financial flexibility to continue to pay down debt and invest organically in innovation and productivity. Importantly, our strong cash-generating capabilities support our over 27 years of consistent dividend payments or 111 consecutive quarters.

我們擁有穩健的資產負債表和財務靈活性，可以繼續償還債務並有機投資於創新和生產力。重要的是，我們強大的現金產生能力支持我們超過 27 年或連續 111 個季度的持續股息支付。

Turning to slide 13. As I mentioned earlier, we are adjusting our full year outlook to reflect the weakened end markets combined with impact from the storms. As referenced in the beginning, the cumulative impact of the 18 lost manufacturing shifts equates to approximately $10 million in revenue.

轉到投影片 13。正如我之前提到的，我們正在調整全年展望，以反映終端市場的疲軟以及風暴的影響。如本文開頭所述，18 個生產班次損失的累積影響相當於約 1,000 萬美元的收入。

In addition, we estimate approximately $3 million in recovery expenses. The remaining reduction in revenue is due to markets in EMEA and the Americas continuing to decline with customers pushing out delivery dates as well as a weakened order book.

此外，我們估計恢復費用約為 300 萬美元。剩餘的收入減少是由於歐洲、中東和非洲和美洲市場持續下滑，客戶推遲交貨日期以及訂單減少。

We are adjusting our full-year sales range to $800 million to $805 million. This implies revenue for 2024 down approximately 4% at the midpoint compared with 2023.

我們正在將全年銷售額範圍調整為 8 億至 8.05 億美元。這意味著 2024 年的收入中位數較 2023 年下降約 4%。

We expect our adjusted EBITDA margin to be in the range of 19.0% to 19.6% and adjusted diluted non-GAAP earnings per share to be in the range of $2.10 to $2.20. Even with this updated outlook, we still expect to pay down debt in the fourth quarter while reducing our net debt to adjusted EBITDA leverage ratio further by the end of the year. You can find the other modelling line items in the supplemental slides.

我們預計調整後的 EBITDA 利潤率將在 19.0% 至 19.6% 之間，調整後的稀釋非 GAAP 每股盈餘將在 2.10 美元至 2.20 美元之間。即使更新後的展望，我們仍預計將在第四季度償還債務，同時在年底前進一步減少淨債務與調整後 EBITDA 槓桿率。您可以在補充幻燈片中找到其他建模訂單項目。

Slide 14 provides some additional understanding of where we see our market and operational drivers by segment, along with updated full year sales projections. Turning to slide 15.

投影片 14 提供了我們對市場和細分市場營運驅動因素的更多了解，以及更新的全年銷售預測。轉到投影片 15。

I believe our results this quarter and year-to-date show that we are making progress against our financial priorities. We have been demonstrating our ability to elevate the business even with the tough backdrop of weakening end markets and managing through multiple hurricanes.

我相信我們本季和今年迄今的業績表明我們在財務優先事項方面正在取得進展。即使在終端市場疲軟和應對多次颶風的嚴峻背景下，我們也一直在展示我們提升業務的能力。

This is our third quarter in a row that we have expanded our operating margins. The changes we have made are yielding positive outcome. This is the fourth quarter in a row that we have delivered on the forward quarter financial outlook that we have provided.

這是我們連續第三季擴大營業利潤。我們所做的改變正在產生正面的成果。這是我們連續第四個季度公佈我們提供的前瞻性季度財務前景。

While we acknowledge we have had to make full year adjustments and there is room for us to keep improving our forecasting abilities, this highlights the short-cycle order patterns and lead times we have across our businesses. For five quarters in a row, we have been able to reduce our debt balance and improve our leverage ratio, further strengthening our balance sheet.

雖然我們承認我們必須進行全年調整，我們還有繼續提高預測能力的空間，但這凸顯了我們整個業務的短週期訂單模式和交貨時間。我們連續五個季度減少了債務餘額，提高了槓桿率，進一步強化了我們的資產負債表。

Through 2024, we have kept our foot on the gas from a product development perspective and continue to innovate and bring products to market. We are poised to capitalize on growth as and when markets turn.

到 2024 年，我們從產品開發的角度出發，不斷創新，將產品推向市場。當市場轉變時，我們準備好利用成長。

Our underlying business is more diversified than it has been historically, and this, combined with benefits of our focused efforts on continuous improvement will become more apparent in our results as market conditions improve.

我們的基礎業務比歷史上更加多元化，再加上我們專注於持續改進的好處，隨著市場狀況的改善，我們的業績將變得更加明顯。

As we approach the end of 2024 and commence planning for 2025, we are starting to form our views of the year ahead. We are cautiously optimistic that our end markets will start to exit their cycle troughs as they lap softer comps, especially come the back half of 2025.

隨著 2024 年接近尾聲並開始規劃 2025 年，我們開始形成對未來一年的看法。我們謹慎樂觀地認為，我們的終端市場將開始走出週期低谷，因為它們的競爭更加疲軟，特別是在 2025 年下半年。

We plan to provide our modelling expectations when we report our fourth quarter results. Global GDP is forecasted for growth in 2025. Interest rates are expected to come down further.

我們計劃在報告第四季度業績時提供我們的建模預期。預計 2025 年全球 GDP 將會成長。預計利率將進一步下降。

Industry data is pointing towards end market recoveries to begin at staggered timings in 2025 and our preliminary internal plans considering current customer demand forecasts are reflecting annual growth.

產業數據顯示終端市場復甦將在 2025 年錯開時間開始，考慮到當前客戶需求預測，我們的初步內部計畫反映了年度成長。

Based on the investments we have made over the last several years, combined with our ability to continue to strengthen our financial profile, I could not be more excited about the prospect of shifting gears into growth mode by capitalizing on the opportunities that lie before us.

根據我們過去幾年所做的投資，再加上我們持續增強財務狀況的能力，我對利用擺在我們面前的機會轉向成長模式的前景感到非常興奮。

In closing, I want to once again thank our global Helios team who has demonstrated that through adversity, we can continue to unite. The resilience, dedication and energy are undeniable across the Helios team. It is driven by a connectedness and engagement that is more powerful than it has ever been during my first 15 months with the company.

最後，我要再次感謝我們的全球 Helios 團隊，他們證明了我們可以在逆境中繼續團結起來。Helios 團隊的韌性、奉獻精神和活力是不可否認的。它是由一種比我在公司的頭 15 個月中更強大的聯繫和參與所驅動的。

There are no bounds to our potential as we continue to transform the business. With that, let's open the lines for Q&A, please.

隨著我們不斷進行業務轉型，我們的潛力是無限的。現在，讓我們開始問答環節。

(Operator Instructions) Mig Dobre, Baird.

（操作員說明）Mig Dobre，Baird。

Sean, maybe we can start with the cost side of the equation. At least to me, when I looked at your report here, what stood out was the SG&A. And if I'm looking at SG&A in Hydraulics in particular, quite a significant year-over-year decline.

肖恩，也許我們可以從等式的成本方面開始。至少對我來說，當我在這裡查看你們的報告時，最突出的是SG&A。如果我特別關注液壓領域的銷售、一般管理費用（SG&A），我會發現比去年同期下降幅度相當大。

So I guess two questions. The first one is, can we sort of separate out what was unique in the quarter in terms of benefits, whether it's like bonus accruals that reversed or something of the sort versus what might be kind of like sustainable as we think about savings into the fourth quarter and maybe even into 2025?

所以我猜有兩個問題。第一個是，我們能否區分出本季在福利方面的獨特之處，無論是逆轉的應計獎金還是類似的東西，還是當我們考慮第四季度的儲蓄時，可能有點可持續的東西季度甚至2025 年？

Mig, thanks for joining. Appreciate the question. And yes, let me try and unpack a bit of that. So the biggest adjustment was a stock-based compensation accrual reversal in the third quarter due to the officer transition. And not to get too detailed in the accounting, but there's two methods you do that.

米格，感謝您的加入。感謝這個問題。是的，讓我試著解開其中的一些內容。因此，最大的調整是由於高階主管換屆，第三季以股票為基礎的薪酬應計逆轉。不要在會計中過於詳細，但有兩種方法可以做到這一點。

One method, the company elects to take them on an estimated basis and you assume a forfeiture rate throughout your periods that the stock-based comp is being expensed or alternatively, you take the expense on a cash basis at the time of forfeiture. We elect the former. So we take the onetime benefit.

一種方法是，公司選擇在估計的基礎上收取它們，並且您在股票補償費用期間假設沒收率，或者您在沒收時以現金為基礎收取費用。我們選擇前者。所以我們接受一次性的好處。

So I'll give it to you on a full year -- year-to-date basis, -- that adjustment was $2.7 million of an expense pickup net of the cost. In the third quarter, in isolation, it was $5.5 million.

因此，我將向您提供全年（年初至今）的數據，調整後的費用扣除成本後為 270 萬美元。第三季的銷售額為 550 萬美元。

So when you take that out for our third quarter, just from a run rate perspective, we were still down $2.1 million from the prior year. And as you highlighted, there are specific actions we had taken.

因此，當你把第三季的費用去掉時，僅從運行率的角度來看，我們仍然比去年減少了 210 萬美元。正如您所強調的，我們已經採取了一些具體行動。

As you know, when we put out our guidance for the full year, it was predicated on a back half growth story. And with that back half growth story, we had assumed that we would be layering in more cost to support that growth.

如您所知，當我們發布全年指導時，它是基於後半部分的成長故事。有了後半部分的成長故事，我們假設我們將投入更多成本來支持這種成長。

As we saw that not materializing starting in the second quarter, and now reinforced even further with our cut in the fourth quarter, we tapped the brakes and frankly, took some cost actions to try and match with the current demand environment. And I can talk specifically to some of those, but they're the ones you would think about. When you look at our cost buckets, head count is a big one.

當我們看到這種情況從第二季度開始並沒有實現，並且現在隨著第四季度的削減而進一步加強時，我們踩了剎車，坦率地說，採取了一些成本行動來嘗試與當前的需求環境相匹配。我可以具體談談其中的一些，但他們是你會考慮的。當你看看我們的成本桶時，你會發現員工數量是一個很大的數字。

And so it's not adding those incremental roles. It's not being as quick from a backfill perspective. Those more discretionary costs like travel, I'm not going to call it a travel freeze. I'll call it a travel frost unless it's really truly customer-facing and we need to take that trip, dial that back. A lot of the corporate expenses, minimizing that, consultants, -- those sales and marketing efforts, those engineering efforts, we're not cutting there.

因此，它不會添加這些增量角色。從回填的角度來看，速度並沒有那麼快。那些可自由支配的費用，例如旅行，我不會稱之為旅行凍結。我將其稱為旅行霜，除非它真的是真正面向客戶的，並且我們需要進行該旅行，然後將其撥回。很多公司開支，盡量減少，顧問，那些銷售和行銷工作，那些工程工作，我們不會削減這些。

We're continuing to invest there because we see this as temporary market headwinds that we want to be positioned really well coming out of it as our markets recover. And I think I tried to highlight some of those things on the call in terms of our product development and our new products that we've launched that will help support that growth as and when these markets turn.

我們將繼續在那裡投資，因為我們認為這是暫時的市場逆風，隨著市場復甦，我們希望能夠真正擺脫它。我想我試圖在電話會議上強調我們的產品開發和我們推出的新產品方面的一些事情，這些事情將有助於在這些市場轉變時支持這種成長。

I see. That's helpful. You referenced gross margin several times in your prepared remarks, talking about getting back to a more normalized level. But if we're looking at hydraulics specifically, you're running, call it, 31%-ish gross margin. Looking back, this business just a couple of years ago was at 35%, 36%.

我懂了。這很有幫助。您在準備好的演講中多次提到毛利率，談論回到更正常化的水平。但如果我們專門關注液壓系統，毛利率約為 31%。回想起來，幾年前這個業務還只有35%、36%。

At a point in time, it's even higher than that at 37% -- now there's been some volume compression. We recognize that over the past couple of years. But I'm kind of curious as to how you think about this business going forward? At what point in time do you guys have to make some decisions around the existing capacity, the cost structure fundamentally in here to try to boost margins? Is this a story that -- is just dependent on volume?

在某個時間點，它甚至高於 37%——現在已經進行了一些體積壓縮。我們在過去幾年中認識到了這一點。但我有點好奇你對這項業務的未來有何看法？你們在什麼時間點必須圍繞現有產能、成本結構做出一些決定，試圖提高利潤率？這是一個只取決於數量的故事嗎？

We just have to wait for volume to get better whenever later in '25 or '26? Or is there something that you can proactively do to get margins closer to what you would consider to be a more normalized level?

我們只需要等待 25 年或 26 年稍後銷售好轉？或者您可以主動採取哪些措施來使利潤率更接近您認為更正常化的水平？

Yes. Great question. And specific to Hydraulics, recognize the gross margin contraction, but 100% would point first and foremost to the volume, and you've seen that contract.

是的。很好的問題。具體到液壓領域，要認識到毛利率收縮，但 100% 首先也是最重要的是銷量，而且您已經看到了這種收縮。

And keep in mind too, during this period of contraction, there's also been new acquisitions that have been added to the Hydraulics segment, specifically Schultes and Damon. And so you factor in that incremental growth as well, and then that highlights that the Sun and Faster businesses have had more contraction.

也要記住，在這段收縮時期，液壓部門也增加了新的收購，特別是 Schultes 和 Damon。因此，您也將增量成長考慮在內，然後這會凸顯 Sun 和 Faster 業務的收縮幅度更大。

Those acquisitions didn't come with the same gross margin profile that we enjoyed at Faster and Sun. And so they've been dilutive at the gross profit level. But from an EBITDA perspective, pretty strong given they have lower cost structures.

這些收購並沒有帶來與我們在 Faster 和 Sun 相同的毛利率狀況。因此，它們的毛利水準被稀釋了。但從 EBITDA 的角度來看，考慮到它們的成本結構較低，這一點相當強勁。

The other thing I'd maybe highlight just within the segment of Hydraulics is that mix segment, like particularly this year, we've been more impacted by the Ag down cycle, which the Faster business is more indexed towards. And the Sun business is actually holding pretty flat year-over-year from the cartridge valve and the manifolds.

我可能要在液壓領域強調的另一件事是混合領域，尤其是今年，我們受到農業下行週期的影響更大，更快的業務更容易受到影響。實際上，Sun 的插裝閥和歧管業務比去年同期持平。

And from a margin perspective, that faster business typically runs a little higher. And so within the segment, you got a little bit of a bad guide develop there as well. But overall, with the volumes, that's the number one factor.

從利潤角度來看，速度較快的業務通常會運作得更高一些。因此，在該部分中，您也有一些糟糕的指南在那裡發展。但總的來說，就數量而言，這是第一個因素。

And as we get -- as we return those, we will expect and we will show and demonstrate that. I think you would have seen that too in the first half of the year, looking at it sequentially to the back half of last year. And now we're in this constrained environment right now, but we would expect to grow that.

當我們得到——當我們返回這些時，我們將期望並且我們將展示和證明這一點。我想你在今年上半年也會看到這一點，從去年下半年開始依序看。現在我們正處於這種受限的環境中，但我們希望能夠擴大這種環境。

Last thing I'll point to is there was numerous centers of excellence, repositioning of products, manufacturing plants, not only here in the Americas, but also what we're working on in Europe and in Asia, positioned really well. The Asian market continues to be a bright spot for us. So as and when the volume returns and you have that fixed cost structure already in our actual results, we're going to naturally get more leverage out of that.

我要指出的最後一件事是，不僅在美洲，而且我們在歐洲和亞洲也有許多卓越中心、產品重新定位、製造工廠，定位非常好。亞洲市場仍然是我們的亮點。因此，當銷售量恢復並且我們的實際結果中已經有了固定的成本結構時，我們自然會從中獲得更多的槓桿作用。

So it sounds to me that we just have to wait for higher volumes. If that's the case, what sort of volume do you think is required here given all the changes that you talked about in order to get back to 35%, 36% gross margin? Is that target even achievable or it's tangible at this point? Or should we have to set our sights a little bit lower?

所以在我看來，我們只需要等待更高的銷售量。如果是這樣的話，考慮到您談到的所有變化，您認為需要多大的銷售量才能恢復到 35%、36% 的毛利率？該目標目前是否可以實現或是切實可行的？還是我們應該把目光放低一點？

No. I think it's the levels that we've achieved as a company before. It's the $225 million type quarters where we expect to be in the mid-30s at that point. And as we can push towards that $1 billion run rate of $250 million quarters and beyond, that's when we see our ability to surpass the 35% and be marching towards the upper 30s.

不。我認為這是我們作為一家公司之前所達到的水平。我們預計屆時該季度的營收將達到 30 多億美元，為 2.25 億美元。當我們能夠推動 10 億美元的運行率達到 2.5 億美元季度及以上時，我們就會看到我們有能力超越 35% 並邁向 30 多歲。

Last question for me. It sounds in the way you've described the setup for 2025, it's likely going to be a year with sort of tale of two halves, right? You're starting slow in your hydraulics business, probably down year-over-year, maybe things get better in the back half.

對我來說最後一個問題。聽起來就像你描述 2025 年的安排一樣，這一年很可能會經歷兩半的故事，對吧？您的液壓業務起步緩慢，可能逐年下降，也許下半年情況會好轉。

And I recognize that I've already kind of asked this question, but how do you plan on running the business to sort of address that slow start to 2025? Is there something else that you can do from a temporary cost standpoint? Or should we basically think about modeling average or above-average decremental margins to start the year?

我知道我已經問過這個問題了，但是您計劃如何經營業務來解決 2025 年開局緩慢的問題？從臨時成本的角度來看，您還可以做些什麼嗎？或者我們應該考慮在年初對平均或高於平均的遞減利潤進行建模？

Yes. Thanks, Mig. Yes. For me, that's the million-dollar question, and we don't want to cut too deep that we're not ready when the markets return. But for us, it's continuing to focus on those discretionary type expenses.

是的。謝謝，米格。是的。對我來說，這是一個價值百萬美元的問題，我們不想切入太深，以免市場回歸時我們還沒準備好。但對我們來說，它繼續關注那些可自由支配的支出。

But we came out of our long-range planning, strategic planning cycle, and we're in the midst of our budget planning. And certainly, there's still a lot of mixed signals out there. But what we're seeing is the timing and the duration of these market downturns and the cycles historically that these markets have operated in has to be coming to an end. They've been sustained down for too long. And so we will be very cautious to not get ahead of ourselves and continue to operate.

但我們已經結束了長期規劃、策略規劃週期，並且正處於預算規劃之中。當然，仍然存在許多混合訊號。但我們看到的是這些市場低迷的時機和持續時間，以及這些市場歷史上運行的周期必須結束。他們已經被壓抑太久了。因此，我們將非常謹慎，不要超前並繼續運營。

For instance, in the fourth quarter, implied in our guidance would be year-over-year operating expense reductions. We will continue to maintain that run rate. And as and when we see the orders tick up and the leading indicators in the macro data would be when we will trigger to invest further.

例如，在第四季度，我們的指導中暗示營運費用將年減。我們將繼續保持這一運行率。當我們看到訂單增加以及宏觀數據中的領先指標時，我們就會觸發進一步投資。

But we also have the playbook of what do we have to do if it gets worse and look at where could we take down costs further. So I wouldn't say we're at a point that we're -- that we won't have some levers still, but it's going to be more predicated on the macro for us.

但我們也有如果情況變得更糟我們必須做什麼的劇本，並看看我們可以在哪裡進一步降低成本。所以我不會說我們現在已經沒有一些槓桿了，但對我們來說，這將更多地取決於宏觀因素。

Chris Moore, CJS Securities.

克里斯摩爾，CJS 證券。

So you talked about total fluid power shipments down 14.9% in August, 13.9% annual decline. Is the expectation for kind of slow and steady improvement when it does begin? Or is there the opportunity for a quick turnaround in certain products or end markets?

所以你談到8月流體動力總出貨量下降14.9%，年降幅13.9%。當它真正開始時，是否期望有某種緩慢而穩定的改善？或者某些產品或終端市場是否有機會快速轉變？

Yes. Thanks, Chris. I don't see it as a hockey stick drastic move. Despite the market weakness that we highlighted and is well documented out there through the industry data, we feel actually pretty good. From a Sun Hydraulics perspective, we're flattish this year and year-over-year.

是的。謝謝，克里斯。我不認為這是一個曲棍球棒的激烈舉動。儘管我們強調了市場疲軟，並且透過行業數據有充分記錄，但我們實際上感覺相當不錯。從 SunHydraulics 的角度來看，我們今年的業績和去年同期持平。

So implied in that is we're regaining some market share. We certainly, last year, had our own inflicted pain with our centers of excellence, if you recall, building the backlog with the Damon acquisition and quick expansion and moving all the manifold assembly up from Sarasota to Indiana.

這意味著我們正在重新獲得一些市場份額。當然，去年我們的卓越中心也給我們帶來了痛苦，如果你還記得的話，通過收購達蒙和快速擴張以及將所有歧管裝配從薩拉索塔搬到印第安納州而積壓了積壓的訂單。

And so as these markets do recover, I would expect that we can outperform because, one, we're doing that now, and we would expect that to continue. But on top of that, we're pretty excited about the product pipeline. I referenced a couple of products in the prepared remarks.

因此，隨著這些市場確實復甦，我預計我們能夠跑贏大盤，因為第一，我們現在正在這樣做，我們預計這種情況會繼續下去。但最重要的是，我們對產品線感到非常興奮。我在準備好的評論中提到了一些產品。

And I will tell you, I'm just as excited about what we haven't talked about yet that really will help accelerate. And then the final thing that's really important in that market is our ability to hit our commitments on delivery lead times.

我會告訴你，我對我們尚未討論的事情同樣感到興奮，這確實有助於加速。在該市場中真正重要的最後一件事是我們履行交付週期承諾的能力。

That backlog didn't help last year. I understand, and I apologize to our customers on some of the delays that we had in fulfilling their orders. But as we highlighted, we're in a way different spot right now with a 12-month low on that backlog and our commitment to not only hitting our delivery times, but now moving to the next phase of improving them and getting back to what our legacy Sun customers are accustomed to with us.

去年的積壓並沒有起到什麼作用。我理解，並且對於我們在履行客戶訂單方面出現的一些延誤，我向他們表示歉意。但正如我們所強調的，我們現在處於一個不同的境地，積壓訂單數量創 12 個月新低，我們承諾不僅要滿足交付時間，而且現在要進入下一階段的改進，並回到原來的狀態。的老Sun客戶已經習慣我們了。

And so you put those factors together, and that's what gives us confidence that we can actually outperform there.

所以你把這些因素放在一起，這讓我們有信心我們實際上可以在這方面表現出色。

Got it. That's helpful. APAC looks like one of the bright spots, revenue growth, I think, both segments for Q2 and Q3. Maybe talk a little bit more about what you're seeing there? I'm just trying to remind us how far below peak revenue are you there currently? And just how important is it to have local manufacturing there, especially in China?

知道了。這很有幫助。我認為，亞太地區似乎是亮點之一，收入成長，第二季和第三季的兩個細分市場。也許可以多談談您在那裡看到的情況？我只是想提醒我們您目前的收入比高峰低多少？在那裡擁有本地製造，尤其是在中國，到底有多重要？

Yes. I think there's two stories to the APAC region. hydraulics and electronics story. And to your specific question, we're not back to levels that were pre-pandemic. And certainly, the APAC region was most severely impacted from us in our sales that went down the first.

是的。我認為亞太地區有兩個故事。液壓和電子的故事。至於你的具體問題，我們還沒有回到大流行前的水平。當然，亞太地區受到我們的影響最嚴重，其銷售額首先下降。

So we still got room to get back to where that was at and then start growing it. But when -- and I was over in the region in the second quarter. And what I see from a hydraulics perspective is we've got the in the region for the region strategy, which is serving us very well to service our customers, be closer to them, don't have the long lead times, whether it's the supply chain or our deliveries to our customers.

因此，我們仍然有空間回到原來的位置，然後開始種植它。但是當我在第二季度結束該地區時。我從水力學的角度來看，我們已經制定了區域策略，這對我們為客戶提供很好的服務，更接近他們，沒有很長的交貨時間，無論是供應鏈或我們向客戶的交付。

And within that, there was just a show here this past month in China. And what we're seeing a trend develop is there's a lot of local manufacturers. It's not the big American and European OEMs that are selling the volume in China. It's local manufacturers.

其中，上個月在中國剛舉辦了一場演出。我們看到的趨勢是有很多本地製造商。在中國銷量大的並不是美國和歐洲的大型原始設備製造商。都是本土廠商。

And what was very noticeable at the show was a technology advancement to position ourselves both from an electronics but also hydraulics perspective to capitalize on that, for instance, faster. We sell a lot of couplers in China. We've got our subsidiary that sells directly to unique OEMs there.

展會上非常引人注目的是一項技術進步，它從電子和液壓的角度定位我們自己，以便更快地利用這一點。我們在中國銷售大量耦合器。我們的子公司直接向當地獨特的原始設備製造商銷售產品。

But our advanced products from a faster perspective and our system solutions would be perfect for that as that market advances. And so we're excited about that. But also within the Hydraulics segment, we've got a beautiful business in Australia called CFP that continues to outpace the rest of the region and continues to outpace our Hydraulics segment growth and even our overall company growth.

但隨著市場的發展，我們從更快的角度來看的先進產品和我們的系統解決方案將是完美的。所以我們對此感到興奮。而且在液壓領域，我們在澳洲有一項名為 CFP 的出色業務，該業務繼續超越該地區其他地區，並繼續超過我們液壓領域的成長，甚至超過我們整個公司的成長。

It's a distribution business, but also heavy into the mining industry. So we sell our sun cartridge valves through that, but also servicing business from an engineering perspective and the mines. Unfortunately, from a mix perspective, it's not as profitable as the rest of the hydraulics segment, just purely selling cartridge valve components or coupler components at faster.

這是一家分銷企業，但也涉足採礦業。因此，我們透過這種方式銷售我們的太陽插裝閥，同時也從工程角度和礦場提供服務。不幸的是，從混合的角度來看，它的利潤不如液壓領域的其他部分，只是純粹以更快的速度銷售插裝閥組件或耦合器組件。

And so it actually has been a headwind from a profitability perspective, but the top line has been a good trend. When I move to electronics, one particular trend that we're seeing there is on the health and wellness side. The Chinese manufacturers are getting very aggressive.

因此，從獲利角度來看，這實際上是一個逆風，但營收一直是一個很好的趨勢。當我轉向電子產品時，我們看到的一個特殊趨勢是在健康和保健方面。中國製造商變得非常積極。

We've been on the ground recently and seeing a tremendous amount of investment in manufacturing, automation. And a lot of those spas are right now being made in China and exported to Europe. We think the market will come to the US as well, but there's obviously a lot of formidable customers of ours, OEMs in the US that already have supply chain and manufacturing here.

我們最近在實地看到了在製造和自動化方面的大量投資。其中許多水療中心目前在中國製造並出口到歐洲。我們認為市場也會來到美國，但顯然我們有許多強大的客戶，美國的原始設備製造商已經在這裡擁有供應鏈和製造。

But it could be a trend there. And so we're seeing our health and wellness grow aggressively right now, and that was thanks to the (inaudible) acquisition, if you remember that we made back in 2021. So we have full manufacturing capabilities, and it's part of that strategy of in the region for the region. So that's where a lot of our growth is coming from right now in Asia.

但這可能是那裡的趨勢。因此，我們現在看到我們的健康狀況正在急劇增長，這要歸功於（聽不清楚）收購，如果您還記得我們在 2021 年進行的收購的話。因此，我們擁有完整的製造能力，這是該地區策略的一部分。因此，我們目前的大部分成長都來自亞洲。

Got it. Very helpful. Maybe just one last quick one. Given the election results, just any thoughts from a tariff perspective?

知道了。非常有幫助。也許只是最後一件事。鑑於選舉結果，從關稅角度有什麼想法嗎？

Yes. Obviously, we've been watching that closely. I think from the tariff perspective, not as concerning for us, and that goes back to the in the region for the region strategy. Most of our supply chain is localized. So I think it's more impactful for products that are end markets or if you have a strategy of sourcing from China for components into your production in the Americas.

是的。顯然，我們一直在密切關注這一點。我認為從關稅的角度來看，這對我們來說並不重要，這可以追溯到該地區的區域戰略。我們的供應鏈大部分都是本地化的。因此，我認為這對於終端市場的產品，或者如果您有從中國採購零件並用於美洲生產的策略，影響更大。

So that is not as impactful for us. But certainly, we are excited about the opportunity to reduce corporate tax rates. We think local manufacturing will be rewarded. We're proud to have manufacturing throughout the United States across both of our segments. And overall, I think it should be a net neutral or a net good guy for us from an EPS perspective.

所以這對我們來說影響不大。但當然，我們對降低企業稅率的機會感到興奮。我們認為本地製造業將會得到回報。我們很自豪能夠在美國各地擁有我們兩個部門的製造業務。總的來說，我認為從每股收益的角度來看，它對我們來說應該是一個網路中立者或一個網路好人。

Nathan Jones, Stifel.

內森瓊斯，斯蒂菲爾。

I just wanted to start off following up on Mig's line of questioning on getting back to mid-30s gross margins in Hydraulics. You mentioned $225 million kind of quarterly run rate to get back to that level. You guys have added a fairly significant amount of capacity since a couple of years ago when you were at that level.

我只是想開始跟進 Mig 關於液壓行業毛利率回到 30 年代中期的問題。您提到了 2.25 億美元的季度運行率才能回到這個水平。自從幾年前你們處於那個水平以來，你們已經增加了相當多的容量。

Can you get back to that kind of historical gross margin levels at historical volume levels? Or do you need additional volume to absorb that capacity that's been installed over the last couple of years?

你能在歷史銷售水準上恢復到這種歷史毛利率水準嗎？或者您需要額外的容量來吸收過去幾年安裝的容量？

Yes. Well, so just to clarify, my $225 million wasn't just specific to Hydraulics. I know Mig's question was, so that was total company, obviously. But I think if you look at we were in the mid the lower 30s in the first half of the year, approaching kind of 34% and not quite at that $225 million level.

是的。好吧，澄清一下，我的 2.25 億美元不僅僅專門用於液壓系統。我知道米格的問題是，所以這顯然是完全的陪伴。但我認為，如果你看看今年上半年我們的銷售額處於 30 多歲左右，接近 34%，但還沒有達到 2.25 億美元的水平。

The additional activities we've done and the investments we continue to make from a CapEx perspective are focused no longer on capacity because we view that we have ample capacity to support hundreds of millions of dollars of incremental sales collectively through all our plants.

從資本支出的角度來看，我們已經完成的額外活動和我們繼續進行的投資不再關注產能，因為我們認為我們有足夠的能力來支持我們所有工廠共同實現數億美元的增量銷售。

And so as that volume goes through it, we don't need to add fixed costs or anything. And so that's going to drop. So I don't -- I think we can get there with the existing footprint cost structure at that $225 million level to the mid-30s.

因此，當這個量通過時，我們不需要增加固定成本或任何東西。所以這個數字將會下降。所以我不認為——我認為我們可以透過現有的足跡成本結構在 2.25 億美元的水平到 30 年代中期實現這一目標。

And again, I'd point back to where we were in the first half of the year to give you a little confidence in that and not to mention some of the other just overall mix headwinds we've had this year, for instance, on the electronics side, the growth is coming from the health and wellness space, the Balboa space that we know is lower margin than our innovation controls, indexed heavily to that rec and marine space.

再次，我想回顧一下我們今年上半年的情況，讓你們對此有一點信心，更不用說我們今年遇到的其他一些整體組合逆風，例如，在電子產品方面，增長來自健康和保健領域，我們知道巴爾博亞領域的利潤率低於我們的創新控制，很大程度上與娛樂和海洋領域相關。

So as and when that market turns, that will also help.

因此，當市場轉向時，這也會有所幫助。

Okay. I guess a follow-up question. You guys took down revenue guidance for the full year, about $25 million, most of which is in the fourth quarter. If I do some math on that, $3 million of recovery costs in the fourth quarter, some kind of normal decremental margins on that revenue decline.

好的。我想有一個後續問題。你們取消了全年收入指引，大約 2500 萬美元，其中大部分來自第四季。如果我對此進行一些計算，第四季度的恢復成本為 300 萬美元，這是收入下降的某種正常的利潤遞減。

It does appear that the fourth quarter kind of from an operating perspective was maybe -- is maybe a little bit better than you were expecting before. If you hadn't have had these headwinds, it would have seemed that the margin would have been better than anticipated the business outside of these disruptions that you're seeing?

從營運角度來看，第四季度確實可能比您之前預期的要好一些。如果您沒有遇到這些不利因素，那麼除了您所看到的這些幹擾之外，業務的利潤率似乎會比預期的要好？

Yes. Well, certainly from a trend and a sequential and an improvement, absolutely, we would have expected the fourth quarter to continue to improve. When we did have to adjust it down, certainly, that hurt from a gross profit rate perspective.

是的。嗯，當然從趨勢、連續性和改善來看，我們絕對預計第四季將繼續改善。當我們確實必須下調它時，從毛利率的角度來看，這當然會造成傷害。

But I would also say because we hadn't paced in the expense that we had planned earlier in the year, that certainly is helping as well. Roughly 300 to 400 basis points. So what was your -- what was the number you threw up there, Nathan? Sorry, I missed it.

但我還要說，因為我們沒有按照今年早些時候計劃的開支進行調整，這當然也是有幫助的。大約300到400個基點。那你吐出來的數字是多少，內森？抱歉，我錯過了。

I think without the headwinds of lower revenue and the additional expenses for the hurricanes and things like that, that the EBITDA margins in the fourth quarter were probably looking at something in the low 20s before all of these adjustments around. It would have been higher than was embedded in the prior guidance. It's just a question.

我認為，如果沒有收入下降和颶風等額外費用的不利影響，在所有這些調整之前，第四季度的 EBITDA 利潤率可能會在 20 左右。它會高於先前指導中的水平。這只是一個問題。

Agree. No, you're exactly. I'm aligned with you. Sorry, I just missed that first part of your question.

同意。不，你確實是這樣。我和你是一致的。抱歉，我剛剛錯過了你問題的第一部分。

No worries. Okay. So maybe you could just talk about what's led to just better core operating performance in the businesses there.

不用擔心。好的。所以也許你可以談談是什麼導致了那裡的企業核心營運績效更好。

Sure. So the normalization of all of the activities from a back-end operational footprint certainly have helped. From a specific activity perspective, I would refer to the centers of excellence. So one is our continued efforts from the Tulsa to Tijuana facility. So we continue to ramp up production in our Mexico.

當然。因此，後端營運足跡中所有活動的標準化肯定有所幫助。從具體活動的角度來看，我會提到卓越中心。其中之一就是我們從塔爾薩到蒂華納工廠的持續努力。因此，我們繼續提高墨西哥的產量。

You know we expanded that facility last year. And as we get more leverage and fill that up, that certainly helps us from a lower cost perspective. I think the in the region for the region strategy is paying off. I mentioned the acquisition of Joyn Way that has helped on the electronics side. But we continue to make other efforts on optimizing that footprint even within EMEA right now.

你知道我們去年擴建了那個設施。隨著我們獲得更多槓桿並填補這一空白，從降低成本的角度來看，這無疑對我們有幫助。我認為以區域為區域的策略正在發揮成效。我提到收購 Joyn Way 對電子產品有所幫助。但我們目前仍在繼續努力優化足跡，甚至在歐洲、中東和非洲地區也是如此。

We acquired NEM, as you know, more recently and between the NEM and faster booking in Italy, some optimization efforts there. So these benefits will ramp and continue to gain traction and improve, but will span multiple quarters and right now are subdued just because of the volumes. So those would be the ones I would point to that are having the most impact here in the near term.

如您所知，我們最近收購了 NEM，並在 NEM 和義大利更快的預訂之間進行了一些優化工作。因此，這些效益將不斷增加，並繼續獲得關注和改善，但將跨越多個季度，目前僅因數量而受到抑制。因此，我要指出的是，這些因素在短期內影響最大。

Jeff Hammond, KeyBanc Capital Markets.

Jeff Hammond，KeyBanc 資本市場。

Maybe just give us an update on system win progress. Is the weaker markets kind of slowing that sales cycle? Or are you still seeing good progress on that?

也許只是向我們提供有關係統獲勝進度的更新。市場疲軟是否會減緩銷售週期？或者您仍然看到這方面取得了良好進展？

Yes, for sure. Thanks, Jeff. So absolutely fully committed to that strategy and also very excited about what we've done over the last quarter in terms of progress in advancing some system solution opportunities.

是的，當然。謝謝，傑夫。因此，我們絕對完全致力於該策略，並且對我們上個季度在推進某些系統解決方案機會方面取得的進展感到非常興奮。

In fact, next week, we'll likely early in the week, have a press release out about a new subsystem win in the electronics segment. And it will be a great example of what I've been talking about of us getting closer to our customers, gaining more wallet share from them, being in an extension of their engineering facilities.

事實上，下週，我們可能會在本周初發布有關電子領域新子系統勝利的新聞稿。這將是我一直在談論的一個很好的例子，我們與客戶更加接近，從他們那裡獲得更多的錢包份額，並擴展他們的工程設施。

This particular one is -- and I also have highlighted in the past, this is a space that came from that it takes a while. You got to get in early in the product development cycle, multiple years.

這個特別的空間是──我過去也強調過，這是一個需要一段時間才能形成的空間。您必須在產品開發週期的早期就進入多年。

And so this particular one we'll talk about was three years ago, an existing customer where we were sitting with them with the drawings up on the wall, the cardboard cutouts of what it needed to look like and then partnering sitting next to them along that process all the way up to, all right, get the clay models, here's the production build.

所以我們要討論的這個特殊的例子是三年前的，我們和一位現有客戶坐在一起，牆上掛著圖紙，用紙板剪出所需的外觀，然後一起坐在他們旁邊這個過程一直到，好吧，得到粘土模型，這是生產版本。

Let's validate, test it, let's tweak it. And so that's an example. But I would also tell you that's a big part of our strategy going forward is our go-to-market plans and building that funnel further, getting closer to the customers.

讓我們驗證、測試它、調整它。這就是一個例子。但我還要告訴你，我們未來策略的一個重要部分是我們的上市計劃，並進一步建立管道，更貼近客戶。

So we -- and as a reminder, we don't put any of these into our guide until we know. And we are working some larger ones still. And once we know them and have them, we will absolutely talk about them, we'll absolutely put them in, but we don't want to get in front of ourselves. But I would highlight, I'm as excited as I was since I've been here because there's very real opportunities that the team across both segments are chasing.

所以，提醒一下，在我們了解之前，我們不會將這些內容放入我們的指南中。我們仍在研究一些更大的項目。一旦我們了解並擁有它們，我們絕對會談論它們，我們絕對會把它們放進去，但我們不想放在自己面前。但我要強調的是，自從我來到這裡以來，我一直很興奮，因為這兩個部門的團隊都在追逐非常真實的機會。

And frankly, as we get our leverage down, we've said we want to run this business between 2 times and 3 times. We're making good progress on that. that's going to be core to our M&A strategy of how we become more beneficial to a customer, how we provide them with value and more solutions that makes it stickier.

坦白說，當我們降低槓桿率時，我們已經說過我們希望將這項業務運作 2 到 3 倍。我們在這方面取得了良好進展。這將成為我們併購策略的核心，即我們如何為客戶帶來更多利益，如何為他們提供價值和更多解決方案以提高客戶黏著度。

And many times, we're displacing multiple suppliers with these types of projects. And once we're in, it's hard to eliminate that. And partially, that's on us to continue to innovate, listen to the voice of the customer, partner with those customers to develop the things that their customers want and ultimately delight them.

很多時候，我們會用這些類型的項目取代多個供應商。一旦我們介入，就很難消除這種情況。在某種程度上，我們有責任繼續創新，傾聽客戶的聲音，與這些客戶合作開發他們的客戶想要的東西並最終讓他們滿意。

So a long-winded answer, I know, Jeff, but no, we're really excited about that.

這是一個冗長的答案，我知道，傑夫，但不，我們對此感到非常興奮。

No, that's helpful. Just on the $10 million revenue loss from the hurricane. I'm just wondering if there's a catch-up period in 1Q or first half '25? Or is kind of the markets weakening make that less clear?

不，這很有幫助。僅就颶風造成的 1000 萬美元收入損失而言。我只是想知道 25 年第一季或上半年是否有一個追趕期？或者市場的疲軟是否讓這一點變得不那麼清晰？

Well, not only less -- maybe -- yes, a little less clear, but also what that happening now in a period where markets are a little constrained, it's actually an okay time for that. I think we do get the volume back, but we're running three shifts. So we've got three facilities here in Sarasota that make cartridge valves, and they're running three shifts.

嗯，不僅不太——也許——是的，有點不太清楚，而且在市場有點受限的時期現在發生的事情，實際上是一個不錯的時機。我認為我們確實恢復了銷量，但我們實行三班倒。因此，我們在薩拉索塔擁有三個生產插裝閥的工廠，並且實行三班制。

So it's not like we can add additional production, but we also are experiencing 12-month high distributor inventory levels across the globe from a valve perspective. Now it's continued to increase each quarter.

因此，我們不可能增加額外的產量，但從閥門的角度來看，我們也正在經歷全球經銷商庫存水準長達 12 個月的高水準。現在每季都在持續成長。

And so one thing that's important and the easy button for us would have been, let's just continue building, let's continue to grow our own inventory and to help preserve our margins. But we haven't done that. As we've talked about, we've taken inventory down $7 million.

因此，對我們來說重要且簡單的一件事是，讓我們繼續建設，讓我們繼續增加我們自己的庫存並幫助保持我們的利潤。但我們還沒有這樣做。正如我們所說，我們已經減少了 700 萬美元的庫存。

It's a big part of our working capital initiatives and debt reduction. And so I think it will be volume that can come back over time, but it will be more predicated on just the general markets improvements.

這是我們營運資金計畫和債務削減的重要組成部分。因此，我認為隨著時間的推移，成交量會回升，但更多的是取決於整體市場的改善。

Okay. And then last one, it seems like maybe more markets got worse than better this quarter. But as we move into '25, what do you think are some end markets that are maybe more clearly stabilizing or showing signs of maybe being the earlier to return to growth?

好的。最後一個，本季似乎更多的市場變得更糟而不是更好。但隨著我們進入 25 世紀，您認為哪些終端市場可能更明顯穩定或顯示出可能更早恢復成長的跡象？

Yes, you're right. I mean, certainly, we felt that more markets turned negatively than positively. And again, hence, why we guided down a little bit lower. But again, some of the positions in the market cycles that these challenging markets are would tell us that they could be troughing and returning to growth next year. I'll point to the space that I came from.

是的，你說得對。我的意思是，當然，我們認為更多的市場轉為負面而不是轉為正面。這也是我們為何將指引下調一點的原因。但同樣，這些充滿挑戰的市場在市場週期中的一些狀況將告訴我們，它們可能會在明年陷入低谷並恢復成長。我會指出我來自的空間。

I mean, certainly, the OEMs in the marine and powersports space have maintained really strict inventory and production discipline in response to their current market demand. And as a critical component supplier to them, when they're not producing or they're cutting their builds, that hurts us.

我的意思是，當然，船舶和動力運動領域的原始設備製造商一直保持著非常嚴格的庫存和生產紀律，以滿足當前的市場需求。作為他們的關鍵零件供應商，當他們不生產或削減產量時，我們就會受到傷害。

But I do think, with interest rates, one cut is not enough to move that market. But as further cuts develop, if they develop, that will bring those payment buyers back into that market, and that's going to be needed because a lot of that product is financed. And as that comes back in, I think that will help our innovation controls business.

但我確實認為，就利率而言，一次降息不足以推動市場。但隨著進一步的削減，如果削減的話，這將使那些支付買家重新回到該市場，而這是必要的，因為許多產品都是融資的。當它回來時，我認為這將有助於我們的創新控制業務。

And I also highlight that we're operating off of relatively low comps and relatively low expectations for a sustained period that, again, I think that gives us an opportunity to start growing, whether or not our existing customers grow or all of those diversification efforts and going deeper with existing customers or getting old customers to return to us as well.

我還強調，在一段時間內，我們的經營業績和期望相對較低，這再次讓我們有機會開始成長，無論我們現有的客戶是否成長，或者所有這些多元化努力是否成長與現有客戶進行更深入的合作，或是讓老客戶也回歸我們。

(Operator Instructions) Jon Braatz, Kansas City Capital.

（操作員說明）Jon Braatz，堪薩斯市首府。

Sean, I'd like to return to Faster a little bit. And I'm curious how far out you can see the business, obviously, it's OEM-related? And how far out does the order book extend? And then secondly, the agricultural cycle, at times, has some legs and it takes a while before things to turn around.

肖恩，我想回到更快一點。我很好奇你能在多大程度上看到這項業務，顯然它是與 OEM 相關的？訂單簿延伸多遠？其次，農業週期有時會有一定的影響，需要一段時間才能扭轉局面。

And should this cycle extend a little bit longer than maybe what you might think, do you have some levers to pull at Faster to improve the cost structure, maybe labor force reductions or something like that?

如果這個週期比你想像的要長一點，你是否有一些槓桿可以更快地改善成本結構，也許是減少勞動力或類似的東西？

Just curious how you might look at the business if the cycle continues to be soft for an extended period of time.

只是好奇如果週期在較長時間內持續疲軟，您會如何看待業務。

Yes. Jon, thanks for the question. Certainly, that's an area that, for us, when you -- we talked about last year, Faster having a record year. It was the best year ever despite there was already some ag weakness in the marketplace.

是的。喬恩，謝謝你的提問。當然，對我們來說，這是一個領域，當我們去年談到「更快」創紀錄的一年。儘管市場上已經出現了一些農業疲軟，但這是有史以​​來最好的一年。

And I give Matteo Arduini and the team over there a lot of credit for really trying to diversify, not away from ag, but adding just construction, mobile end markets and looking for those adjacent markets that use couplers.

我對 Matteo Arduini 和那裡的團隊給予很大的讚揚，因為他們真正嘗試實現多元化，不是遠離農業，而是只增加建築、行動終端市場，並尋找那些使用耦合器的相鄰市場。

And with our Board at the strategy session, that was a key topic for Faster. How we can go deeper and look for those other markets. There's a lot of things that use couplers in this world. And we're positioned really well to attack some of them. And so where are those growth markets.

在我們董事會的策略會議上，這是 Faster 的關鍵議題。我們如何更深入地尋找其他市場。這個世界上有很多東西都使用耦合器。我們處於非常有利的位置來攻擊其中的一些。那麼那些成長市場在哪裡呢？

And so from that piece, longer term, we think we can sustain this and whether it continues on further, we certainly don't see that improving in the first half, at least from our perspective into next year, but back half isn't out of the question. But in the near term, to your question on what can we do, I will point to the diversification efforts, and we continue to increase that sales funnel and go-to-market strategies there.

因此，從長遠來看，我們認為我們可以維持這種情況，無論它是否進一步持續下去，我們當然不會看到上半年有所改善，至少從我們明年的角度來看，但後半段並沒有改善不可能。但在短期內，對於你關於我們能做什麼的問題，我將指出多元化的努力，我們將繼續增加那裡的銷售管道和進入市場策略。

But also from a cost perspective, we're taking this opportunity in the back half of the year, particularly as we got through the European holidays and now as we get into the holiday season at the end of the year, for instance, our NEM facility, where our production, it is closed down every Friday for the rest of the year.

但同樣從成本角度來看，我們在今年下半年抓住了這個機會，特別是當我們度過了歐洲假期，現在當我們進入年底的假期季節時，例如，我們的 NEM我們生產的工廠在今年餘下的時間每週五都會關閉。

We're extending a little bit of that to our faster business as well. And frankly, slow playing some of the expansion that we talked about going on there, we're pacing that accordingly because we don't need that capacity.

我們也將其中的一點擴展到我們更快的業務。坦白說，緩慢地播放我們談論的一些擴展，我們正在相應地調整節奏，因為我們不需要那個容量。

So there's leverage there, but it goes back to we don't want to cut too deep because as and when that market returns or those diversification opportunities are realized, we need to be able to aggressively grow that business and get it back to where it was.

因此，那裡有槓桿，但它可以追溯到我們不想削減太深，因為當市場回報或那些多元化機會實現時，我們需要能夠積極發展該業務並將其恢復到原來的水平曾是。

And the last thing I would highlight just from a cost, one thing we've done here in the Americas is we've absorbed the faster US business into our Sun Hydraulics facilities and Daman facilities, so that helps certainly just from a cost perspective as well.

我要從成本方面強調的最後一件事是，我們在美洲所做的一件事是，我們已將更快的美國業務吸收到我們的SunHydraulics 設施和達曼設施中，因此，從成本角度來看，這肯定會有所幫助，因為出色地。

Mig Dobre, Baird.

米格·多布雷，貝爾德。

And this is really related to a question somebody asked earlier about the election and the outcomes here. I mean you mentioned your Tijuana facility several times. And obviously, we know that you have good exposure there, and there's -- obviously, tariffs for Mexico are on the table, NAFTA gets renegotiated in 2026.

這確實與之前有人提出的有關選舉和結果的問題有關。我的意思是您多次提到您的蒂華納工廠。顯然，我們知道你在那裡有很好的曝光度，而且很明顯，墨西哥的關稅已經擺在桌面上，北美自由貿易協定將在 2026 年重新談判。

And I recognize it's a little bit early to have a definitive answer here. But in terms of how you think about managing the business, are we sort of to expect that you're going to be relocating maybe some of your manufacturing if tariffs are being imposed back to Oklahoma or other US locations?

我承認現在給出明確的答案還為時過早。但就您如何看待管理業務而言，如果關稅被徵收回俄克拉荷馬州或美國其他地區，我們是否預計您可能會將部分製造業務遷回俄克拉荷馬州或其他美國地點？

Or is it that you're just going to try to manage through that with price increases and other cost savings or efficiencies that you might get, but still maintain sort of the existing manufacturing strategy that you have in place?

或者您只是想嘗試透過價格上漲和其他可能實現的成本節約或效率來解決這個問題，但仍然維持現有的現有製造策略？

The news as well on Mexico and the large ag OEMs challenge there. But for us, I wouldn't say we're backing off anything right now. We always have to evaluate our manufacturing footprint to have it optimized. If there was a negative impact, that's the beauty of we do have dual manufacturing capabilities. What we do in Tijuana can be replicated here in the United States and our Tulsa facilities and other facilities in the Midwest as well or vice versa.

墨西哥的新聞以及大型農業原始設備製造商在那裡面臨的挑戰。但對我們來說，我不會說我們現在正在放棄任何事情。我們始終必須評估我們的製造足跡以對其進行最佳化。如果有負面影響，那就是我們擁有雙重製造能力的好處。我們在蒂華納所做的事情可以在美國、我們的塔爾薩工廠和中西部的其他工廠複製，反之亦然。

We've certainly enjoyed the benefit, particularly on the Enovation controls shift of some of the Tulsa to Tijuana manufacturing from a cost perspective. But to your point, if tariffs, new tariffs or new NAFTA renegotiated that -- abate those, then yes, we would look at different footprint optimization.

我們當然享受了好處，特別是從成本角度來看，改造控制將塔爾薩的一些製造轉移到蒂華納。但就你的觀點而言，如果關稅、新關稅或新的北美自由貿易協定重新談判——減少這些，那麼是的，我們會考慮不同的足跡優化。

I don't see a scenario that we shut down a plant completely because when you look at like the Balboa business, that's how -- when we acquired Balboa, how we acquired the Mexico footprint from a manufacturing perspective, that's important strategically, too. A lot of those customers are out there on the West Coast.

我不認為我們會完全關閉一家工廠，因為當你看看巴爾博亞業務時，這就是當我們收購巴爾博亞時，我們如何從製造角度獲得墨西哥足跡，這在戰略上也很重要。其中很多客戶都在西海岸。

We also have a facility in the United States for Balboa down in Otay, near the border in San Diego that we could look to help augment some of that as well. So tough to prognosticate or speculate right now, but certainly something we're aware of and watching.

我們還在美國巴爾博亞的奧泰設有一個設施，靠近聖地牙哥邊境，我們也可以尋求幫助增強其中的一些功能。現在很難預測或推測，但肯定是我們已經意識到並正在觀察的事情。

As there are no further questions, I would now like to hand the conference over to Tania Almond for closing comments.

由於沒有其他問題，我現在想將會議交給塔尼亞·阿爾蒙德（Tania Almond）進行總結評論。

Great. Thank you, operator, and thanks, everyone, for joining us today. We published our upcoming conference schedule for the next few months this morning, and we look forward to seeing many of you on the road and virtually. Thank you so much, and have a great day.

偉大的。謝謝運營商，也謝謝大家今天加入我們。今天早上，我們發布了未來幾個月即將舉行的會議日程，我們期待在路上和虛擬地見到你們中的許多人。非常感謝，祝您有美好的一天。

Thank you. This concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.

謝謝。今天的電話會議到此結束。此時您可以斷開線路。感謝您的參與。