Helios Technologies Inc (HLIO) 2025 Q1 法說會逐字稿

Greetings and welcome to the Helios Technologies first quarter 2025, financial results conference call.

大家好，歡迎參加 Helios Technologies 2025 年第一季財務業績電話會議。

(Operator Instructions).

（操作員指令）。

It is now my pleasure to introduce your host, Tania Almond, Vice President of Investor Relations and Corporate Communications.

現在我很高興介紹主持人、投資者關係和企業傳播副總裁 Tania Almond。

Thank you. You may begin.

謝謝。你可以開始了。

Thank you, operator, and good day everyone. Welcome to the Helios Technologies first quarter 2025, 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 helio.com. You will also find the slides that will accompany our conversation today as well as our prepared remarks. Here with me is Sean Bagan, President, Chief Executive Officer, and Chief Financial Officer. While the search process for a new CFO is ongoing, please welcome back our Vice President, corporate Controller Jeremy Evans as well.

謝謝接線員，大家好。歡迎參加 Helios Technologies 2025 年第一季財務業績電話會議。我們昨天下午發布了新聞稿，宣布了我們的結果。如果您還沒有收到這份新聞稿，請造訪我們的網站 helio.com。您還可以找到我們今天談話的幻燈片以及我們準備好的演講稿。和我一起的是總裁、執行長兼財務長 Sean Bagan。在尋找新任財務長的同時，我們也歡迎我們的副總裁、公司財務總監傑里米·埃文斯 (Jeremy Evans) 的回歸。

Sean will start the call with highlights from the First quarter, then hand it over to Jeremy to review our first quarter financial results in detail.

肖恩 (Sean) 將在電話會議上首先介紹第一季度的亮點，然後交給傑里米 (Jeremy) 詳細回顧我們第一季度的財務業績。

Sean will then conclude our prepared remarks with our latest thoughts on our 2025, outlook, our current thinking on potential tariff impacts on our business, financial and operational priorities, and key focus areas. We will then open the call to your questions.

肖恩隨後將以我們對 2025 年展望的最新想法、我們目前對關稅對我們的業務、財務和營運重點以及重點關注領域的潛在影響的看法來結束我們的準備好的發言。然後我們將開始回答您的問題。

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. 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.

如果您翻到投影片 2，您會看到我們的安全港聲明。您可能知道，我們將在本次演示和問答環節中做出一些前瞻性陳述。這些聲明適用於受風險和不確定性影響的未來事件，以及可能導致實際結果與今天呈現的結果大不相同的其他因素。

These risks and uncertainties and other factors can be found in our annual report on Form 10K for 2024 and will be provided as well in our upcoming 10Q to be filed with the Securities and Exchange Commission. You can find these documents on our website or at FCC.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. We have provided reconciliations of comparable GAAP with non-GAAP measures in the tables that accompany today's slides. Please reference slides 3 and 4 now. With that, it's my pleasure to turn the call over to Sean.

這些風險和不確定性以及其他因素可以在我們 2024 年 10K 表格年度報告中找到，並且也將在我們即將向美國證券交易委員會提交的 10Q 報告中提供。您可以在我們的網站或 FCC.gov 上找到這些文件。我還想指出，在今天的電話會議上，我們將討論一些我們認為有助於評估我們績效的非公認會計準則 (non-GAAP) 財務指標。您不應孤立地看待這些附加資訊的呈現，也不應將其視為根據 GAAP 編制的結果的替代方案。我們在今天的幻燈片附帶的表格中提供了可比較 GAAP 與非 GAAP 指標的對帳表。現在請參考投影片 3 和 4。說完這些，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。感謝您今天加入我們。

Since being appointed permanent CEO in the first quarter, I have nearly completed my listening tour with the Helios team to get deeper internal insights and I've also engaged with our business partners, customers, and shareholders to get the outside in external impressions of Helios. With that feedback, we have already begun to refocus the organization.

自從第一季被任命為常任執行長以來，我幾乎完成了與 Helios 團隊的傾聽之旅，以獲得更深入的內部見解，並且我還與我們的業務合作夥伴、客戶和股東進行了接觸，以了解外界對 Helios 的印象。有了這些回饋，我們已經開始重新調整組織的重點。

The changes and decisions being made are centered on our customers with the objective of driving business success to create prosperity for our customers, employees, and investors.

所做的改變和決定都以我們的客戶為中心，目的是推動業務成功，為我們的客戶、員工和投資者創造繁榮。

The ultimate sign of success is organizational longevity while generating superior shareholder returns over the long term. I see an amazingly bright future for Helios, leveraging all our assets.

成功的最終標誌是組織長壽，同時長期產生優異的股東回報。我看到 Helios 擁有無比光明的未來，能夠充分利用我們所有的資產。

As I look back on the first quarter, we fortified the management team and are reallocating resources towards growing our go to market initiatives. We continue to evaluate our facility footprint, operating structure, and portfolio of companies. We believe we are in a solid position by building an optionality to our plans that respond quickly to the ever evolving macro environment.

回顧第一季度，我們加強了管理團隊，並重新分配資源以擴大我們的市場開拓計畫。我們將繼續評估我們的設施足跡、營運結構和公司組合。我們相信，透過為我們的計劃建立可選性，以便快速響應不斷變化的宏觀環境，我們處於穩固的地位。

As we'll discuss further, our response to the tariff landscape highlights how our size enables us to remain nimble and act decisively, both to mitigate the impact on our business and to capitalize on emerging opportunities because of the shifting tariff backdrop.

正如我們將進一步討論的那樣，我們對關稅情況的反應凸顯了我們的規模如何使我們能夠保持靈活並果斷採取行動，既可以減輕對我們業務的影響，又可以利用關稅背景變化帶來的新興機遇。

We remain concerned about the downstream effects of a prolonged tariff escalation, particularly rising costs, pricing pressures and potential impact on end market demand. We are committed to making long-term strategic decisions as we navigate near-term volatility.

我們仍然擔心長期關稅升級的下游影響，特別是成本上升、價格壓力以及對終端市場需求的潛在影響。在應對短期波動時，我們致力於做出長期策略決策。

We had a better start to 2025 than expected as we overdrove our first quarter estimates, Sales of $195 million exceeded the top end of our guidance range, but remains below prior year sales levels on continued and market weakness.

由於我們超出了第一季的預期，2025 年的開局比預期要好，1.95 億美元的銷售額超過了我們指導範圍的最高值，但由於市場持續疲軟，仍低於去年同期的銷售水平。

That said, our early wins for our go to market focus are promising, and we'll share more details during the call.

也就是說，我們在進入市場的早期勝利是有希望的，我們將在電話會議中分享更多細節。

The additional first quarter sales volume resulted in better than expected adjusted EBITDA dollars while delivering a margin rate of 17.3%, showing the expected incremental flow through.

第一季的額外銷售量帶來優於預期的調整後 EBITDA 美元，同時實現了 17.3% 的利潤率，顯示出預期的增量流出。

We generated $19 million in cash from operations, a 7% increase over last year's first quarter, despite the sales contraction.

儘管銷售額萎縮，但我們的營運現金流為 1,900 萬美元，比去年第一季成長 7%。

The actions taken by the team to improve our working capital efficiency over the last year are showing in our results, including an 11% inventory reduction as compared to the prior year.

團隊在過去一年中為提高營運資金效率而採取的行動已體現在我們的業績中，其中包括與上一年相比庫存減少了 11%。

We manage our cost of goods sold to align with the lower sales and realize savings and SEA expenses year over year.

我們管理銷售成本以適應較低的銷售額，並逐年實現成本節約和 SEA 費用的減少。

We are being judicious with all our spending, including capital expenditure outflow, which will be used for only the most impactful projects with quick payback periods.

我們對包括資本支出流出在內的所有支出都十分謹慎，這些支出將僅用於最有影響力且回報期較快的項目。

Additionally, we proved our financial profile further by paying down $4 million in debt throughout the first quarter, down 15% over last year, and have now consistently reduced our debt for seven consecutive quarters. We have a stronger balance sheet, a stronger cash engine, and nearly $400 million in liquidity. This provides a firm footing for us to operate from.

此外，我們在第一季償還了 400 萬美元的債務，比去年同期下降了 15%，進一步證明了我們的財務狀況，並且已經連續七個季度持續減少債務。我們擁有更強勁的資產負債表、更強勁的現金引擎以及近 4 億美元的流動資金。這為我們的經營提供了堅實的基礎。

As it's materializing, we expected our first half year over year comparables would be challenging, though we are pleased with the progress made against our plans to start the year.

隨著這一目標的實現，我們預計上半年同比業績將面臨挑戰，但我們對年初計畫的進展感到滿意。

While the majority of our end markets remain persistently weak, we are starting to see some positive transforming in the order intake over the last several months. In our largest business, Sun Hydraulics, distributors' orders are typically lumpy, but we did see their inventories continue to decline in the first quarter, which is a healthy sign. We do estimate there was a small amount of advanced purchasing from distributors at the end of the quarter in response to tariffs, though not material.

儘管我們的大多數終端市場仍然持續疲軟，但我們開始看到過去幾個月訂單量出現一些正面轉變。在我們最大的業務Sun Hydraulics中，分銷商的訂單通常不穩定，但我們確實看到他們的庫存在第一季持續下降，這是一個健康的信號。我們確實估計，由於關稅的影響，本季末分銷商確實進行了少量的提前採購，但數量並不大。

Looking at our end markets, as I noted, we continue to see persistent weakness in most of them. However, our health and wellness and recreational and market sales did experience growth over the year ago period. It was good to see our electronic segments stabilize. However, given the recent consumer sentiment readings and that forecasted interest rate cuts have not materialized, we remain cautious.

正如我所指出的，縱觀我們的終端市場，我們仍然看到大多數終端市場持續疲軟。然而，我們的健康、保健、娛樂和市場銷售額與去年同期相比確實有所成長。很高興看到我們的電子部門趨於穩定。然而，鑑於最近的消費者信心指數以及預測的降息尚未實現，我們仍然保持謹慎。

For our industrial, mobile, and agriculture markets, improving manufacturing PMI data earlier in the year had been encouraging, although it remains inconsistent and not showing definitive positive trends yet.

對於我們的工業、行動和農業市場而言，今年稍早製造業 PMI 數據的改善令人鼓舞，儘管它仍然不一致且尚未顯示出明確的正面趨勢。

We are gradually gaining traction with our invigorated customer centric go to market initiatives. Our more targeted sales focus is resulting in growing our sales funnels, and we are starting to get some new business winds across the finish line. We have had two recent wins leveraging our acquisition of them and their leading parts and body hydraulics technology.

我們正透過充滿活力的以客戶為中心的行銷措施逐漸獲得關注。我們更有針對性的銷售重點正在擴大我們的銷售管道，並且我們開始在終點線上獲得一些新的業務機會。我們最近憑藉對他們的收購以及他們領先的零件和車身液壓技術取得了兩項勝利。

Both winds are in the construction and market with major OEMs. We also had a new win in our Sun hydraulics business in the aerial work platform and market with the global OEM.

兩種風力發電機均在與主要原始設備製造商合作建造和銷售。我們的 Sun 液壓業務在高空作業平台和全球 OEM 市場也取得了新的勝利。

Our teams at Damon and Sun are also making headway on their win back strategy stemming from the backlog issues we created when we were building out and integrating our manifold center of excellence in Indiana over a year and a half ago.

戴蒙和太陽的團隊也在贏回戰略方面取得進展，這一戰略源於我們在一年半前在印第安納州建設和整合多方面卓越中心時產生的積壓問題。

Our win rate on Damon custom manifold quotes is improving with the ability to expedite quick turn prototype manifolds within three weeks, which is a great benefit for our customers. We've been driving active customer outreach to highlight our improved manifold and integrated package lead times, delivery, and quick turn prototypes. Significant progress has been achieved with notable successes from these efforts year to today.

由於能夠在三週內加快快速生產原型歧管，我們對 Damon 客製化歧管報價的贏率正在提高，這對我們的客戶來說是一個巨大的優勢。我們一直在積極推動客戶拓展，以強調我們改進的歧管和整合封裝交貨時間、交付和快速轉彎原型。經過一年多的努力，目前各項工作已經取得了顯著進展和顯著成效。

On the electronic side, the innovation control team celebrated their fifteen-year partnership with [IDEX] Fire and Safety. This is a great example of selling system solutions and evolving with our customers' needs over time. Innovation also had new business one selling recently introduced displays, including the S35 and the P70 into the recreational, off-road, and commercial vehicle markets.

在電子方面，創新控制團隊慶祝了與 [IDEX] 消防與安全部門合作十五週年。這是銷售系統解決方案並隨著客戶需求不斷發展的一個很好的例子。創新部門還擁有一項新業務，即銷售最近推出的顯示器，包括面向休閒、越野和商用車市場的 S35 和 P70。

Also within the electronic segment, Balboa had first quarter new business wins in the bass space and cold plunge markets.

同樣在電子領域，Balboa 第一季在低音空間和冷浸市場取得了新業務勝利。

We have also recently announced several new product launches reflecting our accelerated pace of bringing new innovations to market driven by customer feedback by deepening customer relationships and advancing our product portfolio, we believe we are well positioned to navigate near term volatility and capitalize on opportunities as market conditions improve.

我們最近也宣布推出幾款新產品，這反映了我們透過深化客戶關係和推進產品組合，加快向市場推出新創新產品的步伐，這些創新是由客戶反饋推動的，我們相信，我們已做好準備應對短期波動，並在市場條件改善時抓住機遇。

With that, let me turn the call over to Jeremy to cover the details of our first quarter financial results, and then I will come back to discuss how we are addressing the tariffs and our outlook during this highly unsettled macro environment.

說完這些，讓我把電話轉給傑里米，讓他介紹一下我們第一季財務業績的細節，然後我會回來討論我們如何在這個高度不穩定的宏觀環境下應對關稅和我們的前景。

Thanks, Sean, and good morning everyone. As I review our first quarter results, please reference slides 5 through 8.

謝謝，肖恩，大家早安。當我回顧我們的第一季業績時，請參考投影片 5 至 8。

Sales in the quarter were $195 million exceeding the top end of our guidance range, which was $190 million.

本季銷售額為 1.95 億美元，超過了我們預期範圍的最高值 1.9 億美元。

We estimate the impact of customers pulling orders ahead as a result of announced tariffs to be approximately $2 to $3 million.

我們估計，由於宣布徵收關稅而導致客戶提前撤回訂單的影響約為 200 萬至 300 萬美元。

Please also note that foreign exchange unfavorably impacted sales by $2.3 million compared to the year ago period as we had forecasted.

另請注意，正如我們預測的那樣，與去年同期相比，外匯對銷售額產生了 230 萬美元的不利影響。

Sales declined in all regions compared with last year. One [greenho] to highlight was our Asia Pacific sales and our electronics segment, which were up 24% year over year as the health and wellness and market has returned to growth.

與去年相比，所有地區的銷售額均有所下降。值得強調的是，我們的亞太地區銷售額和電子產品部門年增了 24%，因為健康和保健市場已經恢復成長。

While year over year sales comparables are still negative, the profitability flow through on our sequential sales step up validates the leverage we can quickly see in our model with volume growth.

儘管同比銷售額可比值仍然為負，但我們連續銷售額成長帶來的獲利能力驗證了我們可以在模型中透過銷售成長快速看到的槓桿作用。

For the quarter, gross margin contracted 110 basis points over last year. The decline in labor and overhead costs partially offset lower volume and higher material costs, primarily as a reflection of the higher mix of electronic sales.

本季毛利率較去年同期下降了 110 個基點。勞動成本和管理成本的下降部分抵消了銷售下降和材料成本上升的影響，這主要反映了電子產品銷售結構的變化。

Sequentially, gross margin expanded 50 basis points on higher volume in both segments.

由於兩個部門的銷量增加，毛利率較上月擴大了 50 個基點。

We continue to prioritize operational efficiency and believe our focus on safety, quality, delivery, and cost will continue to come through with improved margin rates as markets stabilize and volume returns.

我們繼續優先考慮營運效率，並相信隨著市場穩定和銷售回升，我們對安全、品質、交付和成本的關注將繼續實現利潤率的提高。

Operating income in the first quarter was down just $3.3 million at $7.3 million reduction of gross profit on lower volume was somewhat offset by a $4.4 million reduction in SEA expenses.

第一季的營業收入僅下降了 330 萬美元，為 730 萬美元，由於銷售下降導致的毛利減少被 SEA 費用減少 440 萬美元所抵銷。

Operating margin declined 90 basis points to 8.7%. On an adjusted basis, operating margin was 13.4%, down 110 basis points, and adjusted EBITDA that margin declined 90 basis points compared to the prior year period.

營業利益率下降90個基點至8.7%。調整後，營業利益率為 13.4%，下降 110 個基點，調整後的 EBITDA 利潤率與去年同期相比下降 90 個基點。

Our effective tax rate in the first quarter was 23.5%, reflecting the income mix in the various tax jurisdictions.

我們第一季的有效稅率為23.5%，反映了不同稅收管轄區的收入組合。

Diluted EPS was $0.22 in the quarter, down 21% over last year, primarily as a result of the lost leverage from the 8% decline in sales.

本季稀釋每股收益為 0.22 美元，較去年同期下降 21%，主要由於銷售額下降 8% 導致槓桿率喪失。

Diluted non-GAAP EPS was $0.44 in the quarter, down 17% over last year, but importantly up 33% over the fourth quarter.

本季稀釋非公認會計準則每股收益為 0.44 美元，較去年同期下降 17%，但重要的是比第四季成長 33%。

Starting on slide 9, I'll give more color by segment.

從第 9 張投影片開始，我將按部分提供更多顏色。

Hydraulic sales declined 11% over the prior year period.

液壓產品銷售額較上年同期下降了 11%。

This decline reflected weakness in agriculture, mobile, and industrial and markets.

這種下降反映了農業、行動通訊、工業和市場的疲軟。

Foreign exchange had an unfavorable $2.2 million dollar impact on the segment compared with the prior year period.

與去年同期相比，外匯對該部門造成了 220 萬美元的不利影響。

Hydraulics gross profit and gross margin contracted year by year 16% and 170 basis points respectively, reflecting loss leverage on lower volume.

液壓毛利和毛利率分別較去年同期下降 16% 和 170 個基點，反映出銷量下降導致的虧損。

Material variable costs declined year by year and were relatively flat as a percentage of sales aligning with the lower demand environment.

材料變動成本逐年下降，佔銷售額的百分比相對平穩，與較低的需求環境一致。

SEA expenses were down 12% compared with the prior year period, demonstrating cost savings realized.

與去年同期相比，SEA 費用下降了 12%，顯示實現了成本節約。

Operating income was down $4.4 million, reflecting the contraction in sales partially offset by the SEA savings. Please turn to slides and and we'll discuss the electronic segment.

營業收入下降 440 萬美元，反映出銷售額的萎縮被 SEA 節省的部分抵消。請翻到幻燈片，我們將討論電子部分。

Year over year, electronic sales remained relatively unchanged. Higher sales and health and wellness and recreational helped counter ongoing declines in industrial and mobile end markets compared with the same period last year.

與去年同期相比，電子產品銷售額基本維持不變。與去年同期相比，銷售額的成長以及健康和保健及娛樂業務的強勁成長有助於抵消工業和行動終端市場的持續下滑。

Electronics gross profit declined slightly while gross margin helped steady, reflecting holding cost in line with volume.

電子產品毛利略有下降，但毛利率維持穩定，反映持有成本與銷售量一致。

SEA expenses were down 7% year over year due to realized cost savings.

由於實現了成本節約，SEA 費用年減了 7%。

Operating income improved by 13% and margin expanded 140 basis points attributable to quantifiable decreases in SDA costs.

由於 SDA 成本顯著下降，營業收入提高了 13%，利潤率提高了 140 個基點。

Slide 11 shows our heavy focus on cash management continues to pay off with the trailing 12 month free cash flow conversion rate of 258%.

投影片 11 顯示，我們對現金管理的高度重視持續帶來回報，過去 12 個月的自由現金流轉換率為 258%。

We generated cash from operations of $19 million in the quarter, a 7% improvement over the first quarter last year despite lower sales.

本季我們的營運現金流為 1,900 萬美元，儘管銷售額有所下降，但比去年第一季成長了 7%。

This included a $4.8 million insurance reimbursement related to the 2023 fire and weather related incidents at Basar.

其中包括與 2023 年巴薩爾火災和天氣相關事件相關的 480 萬美元保險賠償。

We use part of that cash to reduce debt further and strengthen our financial flexibility.

我們使用部分現金進一步減少債務並增強我們的財務靈活性。

The first quarter has historically been the lightest quarter of the year from a cash generation perspective, and optimizing cash flow will remain a focus for 2025.

從現金產生的角度來看，第一季歷來是一年中現金流最清淡的一個季度，而優化現金流仍將是 2025 年的重點。

We've reduced inventory in the last 12 months by $24 million or 11%, which contributed to lower working capital and growing cash.

過去 12 個月，我們將庫存減少了 2,400 萬美元，即 11%，這導致營運資本減少，現金增加。

Capital expenditures in the quarter were $6.1 million, or 3% of sales.

本季資本支出為 610 萬美元，佔銷售額的 3%。

Our capital expenditure plans for 2025, will be prioritized with a focus on maintenance and productivity enhancements that demonstrate evident returns on investment.

我們的 2025 年資本支出計畫將優先關注維護和生產力提升，以實現明顯的投資回報。

Turning to slide 12, at the end of the first quarter, cash and cash equivalents were $46 million and we had $353 million available on our revolving credit facility.

翻到第 12 張投影片，第一季末，現金和現金等價物為 4,600 萬美元，我們的循環信貸額度為 3.53 億美元。

Despite sales softening and unfavorable foreign exchange impact on our EUR denominated debt, we paid down debt for the seventh consecutive quarter.

儘管銷售額下降且外匯對我們以歐元計價的債務產生不利影響，但我們還是連續第七個季度償還了債務。

We've reduced debt by 15% or $76 million over the last 12 months.

在過去的 12 個月中，我們減少了 15% 的債務，即 7,600 萬美元。

Our net debt to adjusted even leverage ratio is down to 2.7 times from 3.1 times a year ago.

我們的淨債務與調整後槓桿比率從一年前的 3.1 倍下降至 2.7 倍。

Our capital priorities remain focused on further reducing debt, generating organic growth, and paying our long-standing dividend as we have consistently done for over 28 years.

我們的資本重點仍然是進一步減少債務、實現有機成長以及支付長期股息，正如我們 28 年來一貫所做的那樣。

We also have the option to utilize our recently established share repurchase program that we announced earlier this year.

我們還可以選擇利用我們今年稍早宣布的最近建立的股票回購計劃。

We will continue to focus on what we can control and look to maximize shareholder value from all facets by focusing on our customers, developing innovative products to maintain and expand our leading market positions for mission critical applications and solutions, while remaining agile as we navigate the continually evolving macro landscape.

我們將繼續專注於我們能夠控制的事情，並透過專注於客戶、開發創新產品來維持和擴大我們在關鍵任務應用和解決方案方面的領先市場地位，同時在不斷變化的宏觀環境中保持敏捷，從各個方面尋求股東價值最大化。

I will now turn the call back over to Sean.

我現在將電話轉回給肖恩。

Thanks Jeremy.

謝謝傑里米。

Turning to slides 13 and 14, I will frame the current tariff landscape for Helios, which has created more uncertainty as we step through fiscal year 2025. This is not unique to Helios, and we believe we are well prepared and positioned to manage through this unprecedented period.

轉到投影片 13 和 14，我將概述 Helios 當前的關稅狀況​​，這在我們進入 2025 財年時帶來了更多不確定性。這並不是 Helios 獨有的，我們相信我們已經做好了充分的準備，能夠度過這個前所未有的時期。

We have estimated. The various potential cost impacts in the second half of 2025, would be $15 million if we took no tariff risk mitigation action as the impacts on the first half of 2025, are limited due to inventory capitalization accounting methods.

我們已經估算過了。如果我們不採取任何關稅風險緩解措施，2025 年下半年的各種潛在成本影響將達到 1500 萬美元，因為由於庫存資本化會計方法，2025 年上半年的影響有限。

These estimates do not try to anticipate how global demand could be impacted and the potential downstream effects, as we believe that is too wide of a range of scenarios to predict all possible outcomes.

這些估計並未試圖預測全球需求將如何受到影響以及潛在的下游效應，因為我們認為，範圍太廣，無法預測所有可能的結果。

As of today, our analysis indicates that we are relatively insulated from the impacts due to our in the region for the region strategy, which we have been executing over the last few years with the aim of servicing our geographic revenue streams more efficiently for our customers. This has proven to be very helpful as it provides optionality to contend with the current tariff dynamics. I would also point out that nearly all the products we produce and ship from our Tijuana, Mexico facility to the US are USMCA compliant, which is a positive for us and a competitive opportunity.

截至今天，我們的分析表明，由於我們在該地區為該地區制定的策略，我們相對而言沒有受到太大影響。過去幾年來，我們一直在執行這項策略，目的是更有效地為我們的客戶提供地理收入流服務。事實證明這非常有用，因為它提供了應對當前關稅動態的可選性。我還要指出的是，我們從墨西哥蒂華納工廠生產並運往美國的幾乎所有產品都符合 USMCA 標準，這對我們來說是一個利好，也是一個競爭機會。

When you look at our direct tariff exposure by country, raw material imports from China and exports to China from the US carry the largest tariff burden.

如果按國家/地區查看我們的直接關稅風險，就會發現從中國進口的原材料和從美國出口到中國的原材料承擔著最大的關稅負擔。

Based on the variety of components we are using across our different operating companies, we estimate China-related tariffs to be approximately $13 million of the total $15 million direct tariff cost exposure in the second half of 2025.

根據我們不同營運公司所使用的各種組件，我們估計與中國相關的關稅約佔 2025 年下半年 1,500 萬美元直接關稅成本總額中的 1,300 萬美元。

Within China, we already have electronics manufacturing capabilities from our acquisition of [Dhuyan Wei] plus other hydraulics manufacturing facilities that we have had in China and the APAC region for many years. We intend to leverage these facilities to help mitigate the tariff impact for our China customers.

在中國，我們透過收購 [Dhuyan Wei] 已經具備了電子製造能力，此外，我們在中國和亞太地區已經擁有多年的其他液壓製造設施。我們打算利用這些設施來幫助減輕關稅對中國客戶的影響。

We also analyzed and projected our second half tariff exposure at the segment level. When you add up the gross tariff expense of approximately $15 million roughly $9 million would be in our hydraulic segment with about $6 million in our electronic segment. Again, to reiterate, this would be the gross impact before any mitigation efforts.

我們也從細分市場層級分析並預測了下半年的關稅風險。如果將大約 1500 萬美元的總關稅費用加起來，其中大約 900 萬美元用於我們的液壓部門，而大約 600 萬美元用於我們的電子部門。再次重申，這將是採取任何緩解措施之前的整體影響。

Another potential risk for Helios if current imposed tariffs remain relates to our US export sales to China-based customers. For the second half of 2025, approximately $20 million in sales for China-based customers would have traditionally been exported from the US, which is currently subject to punitive retaliatory tariffs. We are in the process of transferring manufacturing and assembly into the region to mitigate that risk as best we can.

如果目前徵收的關稅持續存在，Helios 面臨的另一個潛在風險與我們向中國客戶出口的美國產品銷售有關。到 2025 年下半年，中國客戶的銷售額將約為 2,000 萬美元，這筆銷售額傳統上將來自美國，而目前美國正受到懲罰性報復性關稅的製裁。我們正在將製造和組裝業務轉移到該地區，以盡可能降低風險。

It is also worth noting we see an opportunity for more sales of the products we manufacture in the US for our US customers. For example, competitors that rely on their Chinese manufactured products exported to the US have now become sales conquest opportunities due to the punitive tariffs, which allows us to play offense with early wins already occurring.

另外值得注意的是，我們看到了為美國客戶增加我們在美國生產的產品的銷售機會。例如，由於懲罰性關稅，依賴向美國出口中國製造產品的競爭對手現在已成為銷售征服機會，這使我們能夠在已經取得早期勝利的情況下發動攻擊。

To contend with the cost and demand pressures from tariffs, as well as to capitalize on the opportunities they present, we have a continuous assessment of mitigation work streams across our businesses. We are responding to developments and have deployed various mitigation tools including pricing actions, alternative sourcing, use of bonded warehouses, leveraging our global manufacturing footprint, and identifying ways to creatively leverage our strengths to play offense and win business.

為了應對關稅帶來的成本和需求壓力，並利用其帶來的機遇，我們對整個業務的緩解工作流程進行了持續評估。我們正在應對事態發展，並已部署各種緩解工具，包括定價行動、替代採購、使用保稅倉庫、利用我們的全球製造足跡，以及尋找創造性地利用我們的優勢來進攻並贏得業務的方法。

Turning to slides 15 and 16, we have 2.5 more quarters in 2025 to navigate in this rather tenuous global trade environment with shifting geopolitical tensions. Tariffs have created more uncertainty in the second half of 2025. We are not withdrawing our full year outlook, but we are shifting our guidance to focus on just the next forward quarter where we have the highest visibility and have established a track record with meeting our commitments over the last six quarters.

翻到第 15 和 16 張投影片，在 2025 年，我們還有 2.5 個季度的時間可以在這個相當脆弱的全球貿易環境中以及地緣政治緊張局勢不斷變化的情況下度過。關稅為2025年下半年帶來了更多不確定性。我們不會撤回全年展望，但我們正在調整我們的指導方針，只關注下一個季度，因為我們在這一季度的知名度最高，並且在過去六個季度中已經建立了履行承諾的記錄。

We expect second quarter sales to be in the range of $198 to $206 million a sequential step up from our first quarter sales. We also project adjusted EBITDA margin to improve over the first quarter to a range of 17.5% to 18.5%. The improving sequential margin profile reflects further operating leverage from the anticipated increased volume. While the second quarter sales are expected to be down compared with the year ago period, the implied sequential sales step up is in the range of plus 1% to plus 5%, with strong flow through to the bottom line. Diluted non-GAAP earnings per share is expected to sequentially increase in the range of plus 5% to plus 23% or $0.46 to $0.54, more than tripling the rate of sequential sales growth.

我們預計第二季的銷售額將在 1.98 億美元至 2.06 億美元之間，較第一季的銷售額將較第一季的銷售額將較上季成長。我們也預計調整後的 EBITDA 利潤率將在第一季提高至 17.5% 至 18.5% 之間。持續改善的利潤率狀況反映了預期增加的銷售所帶來的進一步的經營槓桿作用。雖然預計第二季銷售額與去年同期相比有所下降，但隱含的環比銷售額增幅將在 1% 至 5% 之間，並將強勁轉化為利潤。預計稀釋非公認會計準則每股收益將環比增長 5% 至 23% 或 0.46 美元至 0.54 美元，為環比銷售額增長率的三倍多。

Looking at the latter half of 2025, we still currently see a path for sales growth over 2024. Until we know with certainty what the final tariff rulings will be and how the demand environment could start to be impacted, we will keep our focus on delivering our near term commitments and be ready to respond to the various demand outcomes.

展望 2025 年下半年，我們目前仍看到 2024 年銷售額將成長。在我們確切地知道最終的關稅裁定結果以及需求環境將如何受到影響之前，我們將繼續專注於履行近期承諾，並準備應對各種需求結果。

As a reminder, our second half sales comparable from last year was significantly depressed from the persistent and market weakness. With our go to market initiatives supporting growth and our planned acceleration of new product introductions, we feel well positioned to capitalize on any market stabilizations.

提醒一下，由於持續的市場疲軟，我們下半年的銷售額與去年同期相比大幅下降。透過我們支持成長的市場舉措和我們計劃加速推出新產品，我們感到能夠充分利用任何市場穩定。

These are unprecedented times.

這是前所未有的時代。

We will stay focused on what we can control and communicate with you on the details as we have them with as much certainty as feasible.

我們將繼續專注於我們能夠控制的事情，並盡可能確定地與您溝通細節。

Turning to slides 17 and 18, I believe our results in the first quarter validate that the financial priorities we laid out at the beginning of the year remain sound. We are addressing our 2025 key focus areas to re-energize our go to market initiatives rooted in customer centricity. Returning to profitable sales growth is imperative, and we have a handful of green shoots being realized despite the challenge markets. We have increased the pace of new product launches so far in 2025. We have new revenue generating incremental products launched in the first half across our four flagship brands, including Innovation Controls S35 display, as well as their T keypad, Sun hydraulics expanded line of electro-proportional cartridge valves, Faster's multi-slide, and Balboa's Pure zone water chemistry Management Solution. We have streamlined our organization to capitalize on customer relationships and industry know-how, and the exciting part is we have only just begun.

轉到第 17 和 18 張投影片，我相信我們第一季的業績證實了我們在年初制定的財務重點仍然合理。我們正在解決 2025 年的重點關注領域，以重新激發以客戶為中心的行銷舉措。恢復獲利性銷售成長勢在必行，儘管市場充滿挑戰，但我們仍看到了一些復甦的跡象。到2025年為止，我們已經加快了新產品發表的腳步。我們在上半年為四個旗艦品牌推出了新的創收增量產品，包括 Innovation Controls S35 顯示器及其 T 鍵盤、Sun Hydraulics 擴展的電比例插裝閥系列、Faster 的多滑塊和 Balboa 的 Pure zone 水化學管理解決方案。我們已經精簡了組織結構，以利用客戶關係和行業知識，令人興奮的是，我們才剛開始。

I'll conclude our prepared remarks with where I started in that true organizational longevity goes beyond simply remaining in business. It involves building a sustainable, thriving organization that can adapt, innovate, and continue to contribute to its industry for the long term.

我將以我一開始的觀點來結束我們準備好的發言：真正的組織長壽不僅僅是簡單地維持業務。它涉及建立一個可持續發展、蓬勃發展的組織，該組織能夠適應、創新並長期為其行業做出貢獻。

In April, we surpassed 55 years of being in business going back to the founding of Sun Hydraulics in 1,970 by Bob Kosky and John Allen. We have changed and evolved quite significantly over the past decade in particular. I remain incredibly excited about our future and confident in our ability to continue executing on our commitments. I would like to thank each one of the Helios employees across the globe for all their daily efforts and thank you for being part of today's call and for your ongoing engagement in support of Helios Technologies. With that, let's open the lines for Q&A please.

今年 4 月，我們的經營歷史已超過 55 年，最早可追溯到 1970 年 Bob Kosky 和 ​​John Allen 創立的 Sun Hydraulics。特別是過去十年來，我們發生了相當大的變化和發展。我對我們的未來仍然感到無比興奮，並對我們繼續履行承諾的能力充滿信心。我要感謝全球每一位 Helios 員工的日常努力，感謝你們參加今天的電話會議並持續支持 Helios Technologies。現在，讓我們開始問答環節。

(Operator Instructions).

（操作員指令）。

Our first question comes from the line of Chris Moore with CJS Securities. Please proceed with your question.

我們的第一個問題來自 CJS Securities 的 Chris Moore。請繼續您的問題。

Hey, good morning, guys. Thanks for taking a couple.

嘿，大家早安。謝謝你帶了一對。

Yeah, maybe we start at a little bit higher level. So Sean, you talked about, finishing up your listening tour with the company, maybe just a little bit more in terms of what specifically you're hearing and, kind of the specific actions that came out of that those conversations that you're looking to take.

是的，也許我們從更高的層次開始。肖恩，您剛才談到了與公司一起完成傾聽之旅，也許您能多談談您具體聽到了什麼，以及您希望採取的具體行動。

Hey, Chris, good morning. Thanks for the question.

嘿，克里斯，早安。謝謝你的提問。

So I, when I got appointed CEO in January, obviously I had the benefit of operating the prior 6 months as the interim CEO, which afforded me the opportunity to work very closely with our board of directors and gain alignment on where we wanted to take the company in the future through an in-depth strategic planning process and allowed the board to see myself and our talented Presidents and executive team operate and I think Provided the confidence to remove that interim tag and with that it was important to me just to really step back at that point and solidify what were the internal impressions and the external impressions of the company. Obviously I had formed that over my year and a half with the company, but really took the opportunity being new, allowing people to in an unguarded way that to really share, strengths, weaknesses, opportunities where we need to invest, but then also the external perspective with the customers and how they feel and our investors, our analyst group, outside partners, and I really would boil it down to a couple key things that that we're continuing to work on. You've certainly heard throughout our prepared remarks about the focus on go to market. I'd simply put that as We're no longer fishing, we're becoming hunters. We're being much more aggressive with our engagement with our customers, customer centricity. We've been to all of our product development, but also driving the accountability as well.

因此，當我在一月份被任命為首席執行官時，顯然我有在前 6 個月擔任臨時首席執行官的優勢，這讓我有機會與董事會密切合作，並通過深入的戰略規劃流程就我們希望公司未來的發展方向達成一致，並讓董事會看到我和我們才華橫溢的總裁和執行團隊的運作，我認為這一步給了我摘掉內部標籤的信心，對我來說，重要的是真正退一步和外部公司的信心，對我來說，重要的信心顯然，我在公司工作的一年半時間裡已經形成了這種觀念，但我真的抓住了新機會，讓人們以一種不設防的方式真正分享優勢、劣勢、我們需要投資的機會，同時也分享客戶的外部視角以及他們的感受，以及我們的投資者、分析師團隊、外部合作夥伴，我真的可以將其歸結為我們正在繼續努力的幾個關鍵事項。您肯定已經聽過我們關於進入市場的準備發言。我簡單地說，我們不再是捕魚者，而是獵人。我們在與客戶的互動、以客戶為中心方面更加積極。我們一直致力於所有產品的開發，同時也推動責任制。

The second thing is with the team, getting the right team on the bus, getting the executive management team fortified, so we've made some changes there.

第二件事是與團隊合作，讓合適的團隊上車，加強執行管理團隊，因此我們在這方面做出了一些改變。

And then lastly, just overall portfolio assessment since I've joined the company, there were no acquisitions done, but over the last decade the company's transformed significantly from just being Sun Hydraulics as of December 2016. When innovation controls joined the Helios Group and and each one of those acquisitions we've done is deployed a lot of capital, and the company's done a remarkable job to delever and that focus is clear from a capital deployment perspective and that's not changing right now. Our focus is on Paying down debt, but we also have a remarkable company from a diversification perspective, from a profitability perspective, from a cash flow generation. And so it's really how do we more of that of the progress we've made over the last year. And so with the tariffs coming into the mix, certainly has didn't foresee that obviously when we entered the year and put out our original guidance and so we're we're cautious, but we actually see that as a nice opportunity as well and we've had some early wins so. That's just high level and I'm happy to go a little deeper into any of them if you'd like.

最後，自加入公司以來，對整體投資組合進行評估，沒有進行任何收購，但在過去十年中，該公司已從 2016 年 12 月的 Sun Hydraulics 發生了重大轉變。當創新控制加入 Helios 集團時，我們所做的每一次收購都投入了大量的資金，公司在去槓桿方面做得非常出色，從資本配置的角度來看，這一重點是明確的，現在這一點並沒有改變。我們的重點是償還債務，但從多元化角度、獲利角度和現金流產生角度來看，我們也是一家卓越的公司。因此，我們真正要考慮的是如何在過去一年中取得更多進展。因此，隨著關稅的加入，我們在進入今年並發布最初的指導時顯然沒有預見到這一點，因此我們很謹慎，但實際上我們也認為這是一個很好的機會，而且我們已經取得了一些早期的勝利。這只是高層次的，如果你願意的話，我很樂意更深入地探討其中任何一個。

No, that's perfect. That's what I was at.

不，那太完美了。我當時就是這麼想的。

Thank you. Yeah, maybe just one or two on tariffs. You talk about the $20 million from the US to China-based customers just trying to, how long will that take to to transfer the manufacturing assembly? Is it, how costly is it? And is this something that you would have thought of doing at some point in time regardless of the tariffs?

謝謝。是的，也許只有一兩個與關稅有關。您談到美國向中國客戶投資 2000 萬美元，只是想問一下，轉移製造組裝需要多長時間？是嗎，有多貴？無論關稅如何，您是否會在某個時候想到要這麼做？

Yeah, that's a great question. And when we look at the opportunity there or the risk, however we want to say it, that that $20 million is just kind of generally what we would have expected to ship a product that was assembled in the US to our China market. But the good thing is, as we highlighted, is we do have a manufacturing footprint there and assembly capabilities. We already are.

是的，這是一個很好的問題。當我們審視其中的機會或風險時，無論我們想怎麼說，那 2000 萬美元基本上就是我們預期將在美國組裝的產品運送到中國市場所需的金額。但正如我們所強調的，好消息是我們確實在那裡擁有製造基地和組裝能力。我們已經是了。

Doing that for some of our cartridges from the sun perspective, and we intend to make additional ones. At the end of the day for the tariff environment or absent the tariff environment, our objective of this in the region for the region is all about making more products in the regions that we're selling them and absent tariffs, that's still a good thing from from our go to market perspective of our customer centricity, serving our customers more timely and then being able to localize supply chains and limit logistics costs, we see that as a good opportunity. So that was something we were already looking at prior to tariffs but also has accelerated. Some of the work from an investment perspective, it's minimal because we already have the operation, we have the capacity and beyond just our China operations, we have other Asian manufacturing capabilities as well in South Korea, so. I would say it's accelerating our focus, and we think we can do that over the next quarter and be ramped up with the with the products we want to assemble there. There likely still will be some export and certainly if there's any de-escalation in the tariff and the non-punitive retaliatory tariffs, it wouldn't be something that we would necessarily change the direction on anyhow.

從太陽的角度看，我們針對一些墨盒進行了這樣的處理，並且我們打算製造更多的墨盒。歸根結底，無論是關稅環境還是沒有關稅環境，我們在該地區的目標都是在我們銷售產品的地區生產更多的產品，而且沒有關稅，從我們以客戶為中心的市場視角來看，這仍然是一件好事，可以更及時地為客戶服務，然後能夠本地化供應鏈並限制物流成本，我們認為這是一個很好的機會。所以這是我們在關稅實施前就已經開始考慮的事情，而且這個問題還在加速解決。從投資角度來看，部分工作量很小，因為我們已經有了營運、擁有了產能，除了中國業務之外，我們在韓國也擁有其他亞洲製造能力。我想說的是，它正在加速我們的關注，我們認為我們可以在下個季度做到這一點，並加大我們想要在那裡組裝的產品的力度。可能仍會有一些出口，當然，如果關稅和非懲罰性報復性關稅有任何降級，我們無論如何都不會改變方向。

Got it, very helpful. I, I'll leave it there, jump back in line.

明白了，非常有幫助。我，我就把它留在那裡，然後重新排隊。

Thank you.

謝謝。

Thanks, Chris.

謝謝，克里斯。

Our next question comes from a line of [Nathan Jones with Steeple]. Please proceed with your question.

我們的下一個問題來自[Nathan Jones 與 Steeple]。請繼續您的問題。

Good morning, everyone.

大家早安。

Hi Nathan.--

你好，內森。 --

I guess I'll start off with one on the competitive positioning around tariffs. You talked about it a little bit in your prepared remarks, but I mean, clearly there should be some pretty nice opportunities if you're manufacturing in the US and you're any of your competitors are importing from China, just given what are now massive cost differences on that front.

我想我首先要談談關稅方面的競爭定位。您在準備好的發言中稍微談到了這一點，但我的意思是，如果您在美國製造並且您的任何競爭對手都從中國進口，那麼顯然應該有一些非常好的機會，因為現在這方面存在巨大的成本差異。

Any information you can give us on where you think those opportunities are, what percentage of the market is imported. I think for a lot of your business, 100% manufactured in the US. So just where you see that those opportunities and does it create opportunities to go off the market share gain or price to market and improve margins or some of both and what's the priority there?

您能否提供任何信息，告訴我們您認為這些機會在哪裡，以及進口市場份額佔比是多少。我認為你們的很多業務都是 100% 在美國製造的。那麼，您在哪裡看到這些機會？它是否創造了增加市場份額或提高市場價格並提高利潤率的機會，或者兩者兼而有之？那裡的優先事項是什麼？

Yeah, Nathan, I think for us the way we're looking at it is a market share gain opportunity, not necessarily a costsplay.

是的，內森，我認為對我們來說，這是一個獲得市場份額的機會，而不一定是成本遊戲。

A lot of our competitors in, well, let's just take it hydraulics versus electronics, and so from a hydraulics perspective, there's plenty of copycat Chinese products from our sun cartridge belt perspective and so that's an immediate opportunity for those folks that do not have some sort of US based manufacturing capability. To your point, it's become, it's not cost competitive at that 145% tariff on US imports. The other opportunity is with our faster business too, and we've seen some wins there already in the coupling business where there are US operations but relying on Chinese manufacturing, and those are those sales conquest opportunities we've already realized. I think on the electronic side it's a little bit different competitive landscape. If you look at like our Balboa business, as you're aware, we have our Tijuana facility that majority over 95% of USMCA compliant of our products, but some of our competitors have different footprints there and so we see that also as an opportunity. And on the innovation controls as much as our manufacturing footprint is here, it's truly also the app development and the hardware enabled sales by the software that we develop and so we're continuing to double down on our software development and differentiation and actually have some really cool enhancement products that we have already soft launched one. One notable one is in the op road recreational marine space called No Roads that we're pretty excited about, that opportunity to again try and conquest sales from our competitors.

我們有很多競爭對手，就拿液壓技術與電子技術來說吧，從液壓技術的角度來看，從我們的太陽彈帶技術的角度來看，有很多中國山寨產品，所以對於那些不具備美國製造能力的人來說，這是一個直接的機會。正如您所說，美國進口產品徵收 145% 的關稅，它不再具有成本競爭力。另一個機會也在於我們的快速業務，我們已經在聯軸器業務中看到了一些勝利，該業務在美國有業務，但依賴中國製造，這些都是我們已經實現的銷售征服機會。我認為電子方面的競爭格局有點不同。如果您看一下我們的巴爾博亞業務，您就會知道，我們的蒂華納工廠生產的大多數產品 95% 以上符合 USMCA 標準，但我們的一些競爭對手在那裡有不同的足跡，因此我們也將此視為一個機會。在創新控制方面，我們的製造足跡就在這裡，這也是應用程式開發和硬體透過我們開發的軟體實現的銷售，因此我們將繼續加倍投入軟體開發和差異化，實際上我們已經軟推出了一些非常酷的增強產品。其中值得注意的是，我們非常興奮的是在名為「No Roads」的海上休閒空間，這是一個再次嘗試從競爭對手手中奪取銷售額的機會。

These tariffs are, they were implemented extremely quickly and so those tariff impacts on some of those competitors importing from China are going to happen pretty quickly.

這些關稅實施得非常快，因此對一些從中國進口的競爭對手的影響將很快顯現。

And I'm sure your customers are scrambling, looking for, domestic sources. Is this something that we could see the benefit of your results in the second quarter, or is it third quarter? I mean, I imagine this stuff happens, it's going to happen pretty rapidly.

我確信您的客戶正在爭先恐後地尋找國內貨源。這是我們能在第二季或第三季看到業績效利益的事情嗎？我的意思是，我可以想像這些事情會發生，而且發生得相當快。

Yeah, as you can imagine, we're aggressively identifying those opportunities and going after them in line with our go to market kind of targeted approach.

是的，正如您所想像的，我們正在積極地尋找這些機會，並按照我們針對市場的有針對性的方法來爭取這些機會。

I see it more as a back half opportunity just given the inventory positions that, A lot of folks have, three to six months type inventory levels, so that isn't tariff burden and will burn through the system. But again, we have seen winds already and we will get some Q2 revenue out of that, but we're not counting on it to be a significant impact until the back half, and that's only if, July 9th Annex 1 rulings come up and I mean this is so evolving and changing by the day that that could change drastically as well. But nonetheless we think once we get in and the stickiness of our business and the quality of our products, even with that, if you get in that there's an opportunity to land up, particularly if it's in an OEM.

我認為這更像是一個後半段的機會，因為考慮到庫存狀況，許多人都有三到六個月的庫存水平，所以這不是關稅負擔，也不會燒毀整個系統。但是，我們已經看到了風，並且我們將從中獲得一些第二季度的收入，但我們並不指望它會在下半年產生重大影響，而且那還得等到 7 月 9 日附件 1 的裁決出台，我的意思是，這種情況每天都在發展和變化，也可能會發生巨大變化。但儘管如此，我們認為，一旦我們進入該領域，考慮到我們業務的粘性和產品質量，即使如此，如果你進入該領域，就有機會實現目標，特別是如果它是 OEM 領域。

Opportunity where it's related to the design of the product and you get into the manufacturing cycle. So we see it as a good opportunity and and trying to pursue all that aggressively.

這是一個與產品設計相關並且能進入製造週期的機會。因此，我們認為這是一個很好的機會，並試圖積極地追求這一切。

Understood. I guess a follow up question. I wanted to talk about the go to market strategy.

明白了。我想這是一個後續問題。我想談談行銷策略。

You talked about, hunting, not fishing. Can you talk about, a little bit of, what you thought was incorrectly positioned in terms of the commercial organization, what changes that you've made, and, what hunting, not fishing actually means to Helios.

您談論的是狩獵，而不是釣魚。您能否稍微談談，您認為商業組織中的哪些定位是錯誤的，您做了哪些改變，以及狩獵而不是捕魚對 Helios 來說實際上意味著什麼。

Yes, definitely. So, When I look at the organization and our products, great products, great quality, typically outlast whatever application machine they're going into, yet being a very critical component for those products and if that goes down, that whole piece of equipment goes down, and for us it was a bit of a and broad brushing the organization. I'm going to go into a little bit more specifics on the four flagship brands, but broad brush of us just not being aggressive, just sitting back. A bit of the phishing common is a little bit of the system sales organization that we had of expecting this volume to come to us and my background at an OEM, I clearly understand how OEMs buy and they don't buy on a System from a perspective, particularly with us when you're trying to pair hydraulics with electronics, you're dealing with different purchasing groups, different buyers, and so a lot of the sales were just taken in an intake of opportunities that would come to us when I talk about the hunting, it goes back to the strategic planning and really understanding those product categories and markets that we're entitled to win with our products and then taking those targeted segments and going after them specifically with aligning resources and a process behind that. To go win new business and then also with our existing customers going deeper with them and we've got we've got new wins in that we try to highlight some of them in the call as well.

是的，當然。因此，當我審視組織和我們的產品時，我發現，優質的產品、卓越的品質通常比它們所應用的任何機器的壽命都長，而且它是這些產品中非常關鍵的組件，如果它發生故障，那麼整個設備就會發生故障，對我們來說，這對組織來說是一種廣泛的衝擊。我將對這四個旗艦品牌進行更詳細的介紹，但總體來說，我們不會咄咄逼人，只是保持觀望態度。網路釣魚常見的一點是，我們有一個系統銷售組織，我們期望這個數量的產品來到我們這裡，而我在 OEM 的背景，我清楚地了解 OEM是如何購買的，他們不會從系統上購買，特別是當您嘗試將液壓系統與電子設備配對時，您要與不同的採購群體、不同的買家打交道，因此很多銷售只是在我們遇到的機會中獲得的，當我談到狩獵時，它又回到了戰略規劃，真正了解我們有權用我們的產品贏得的那些產品類別和市場，然後瞄準它們去贏得新業務，然後與現有客戶建立更深入的聯繫，我們獲得了新的勝利，我們也試圖在電話會議中強調其中的一些。

And then on the back end it's really about how we incentivize our sales team and and the things we're trying to accomplish that supports our strategy because I'm a firm believer in our system solution strategy when we pair our businesses together and the products, it's a powerful value proposition. So incentivizing that cross selling and also engaging them more deeply with our customers and driving that accountability culture not only internally with our teams but also with our customers.

然後在後端，這實際上是關於我們如何激勵我們的銷售團隊以及我們試圖完成的支持我們策略的事情，因為我堅信我們的系統解決方案策略，當我們將我們的業務和產品結合在一起時，這是一個強大的價值主張。因此，激勵交叉銷售，並讓他們與我們的客戶進行更深入的互動，不僅在我們的團隊內部，而且在我們的客戶中推動這種問責文化。

---And Nathan, this is Jeremy. I just wanted to add, I come from a distribution background and Sean talked about the OEMs, but we have a similar focus on our distribution partners, right? they're key in our go to market strategy, and we've been engaging with them to to understand where they're growing, how do we partner with them to get more face time with those end customers and really promote those new products that we're coming out with and. And I would echo what Sean said. I think it was a bit more passive. I'm sure it's fluctuated over time, but since me joining the company, I think it's been more of a passive relationship and, our teams have done a really good job in the last months of re-engaging with those distribution partners as well.

---內森，這是傑瑞米。我只是想補充一下，我有分銷背景，Sean 談到了 OEM，但我們對分銷合作夥伴的關注度是一樣的，對嗎？他們是我們市場策略的關鍵，我們一直在與他們合作，以了解他們的成長點，我們如何與他們合作以便與這些最終客戶有更多的面對面交流，並真正推廣我們即將推出的新產品。我贊同肖恩的說法。我認為這是比較被動的。我確信它會隨著時間的推移而波動，但自從我加入公司以來，我認為這更像是一種被動的關係，而且我們的團隊在過去幾個月與這些分銷合作夥伴重新合作方面做得非常好。

Awesome thanks for taking my questions.

非常感謝您回答我的問題。

Thanks, Nathan.

謝謝，內森。

Our next question comes from the line of Jeff Hammond with Keybanc. Please proceed with your questions.

我們的下一個問題來自 Keybanc 的 Jeff Hammond。請繼續提問。

Hey, good morning everyone.

嘿，大家早安。

Maybe just starting with the $15 million of tariff headwind, how much would you expect to cover of that with price? What price increases would be kind of implemented already through the systems? And then if we looked at 2026 and we annualized that at $30 million, how much can you take that number down through, sourcing, bonded warehouse, the stuff you laid out on on slide 14?

也許僅從 1500 萬美元的關稅逆風開始，您預計可以用價格彌補多少？哪些價格上漲將透過系統實施？然後，如果我們展望 2026 年，並將其年化為 3000 萬美元，那麼透過採購、保稅倉庫以及您在第 14 張投影片上列出的內容，您能將這個數字降低多少？

Hey Jeff, thanks for the question.

嘿，傑夫，謝謝你的提問。

Right now, we have deployed price increases across all four of our kind of flagship brands.

目前，我們已經對所有四個旗艦品牌實施了提價。

Our intent overall to the tariff risk wherever it lands is to cover the dollar. It could put some margin pressure, obviously if you're just covering the dollar impact, but we're trying to attack it from all angles. So using the local China Assembly example, that one you can solve obviously without putting price increases in place, and in fact there's likely opportunities to get some margin enhancement if we can build the products at a more cost competitive position than we do in the US. So, Really it's a bit of a reaction to ultimately where the final rulings land and with the objective again of building products where they're consumed, where our customers are, and so that's kind of the first step, but then certainly we have direct cost impacts that we're feeling already. We're not going to feel as much of it in the first or the second quarter just due to our inventory position coming into the second quarter and capitalizing those costs, but as those start rolling out, those price increases will help offset some of that.

無論關稅風險落在哪裡，我們的整體意圖都是用美元來彌補。如果你只是要彌補美元的影響，那麼這可能會對利潤率造成一些壓力，但我們正在嘗試從各個角度解決這個問題。因此，以中國本地組裝為例，顯然可以在不提高價格的情況下解決這個問題，事實上，如果我們能夠以比美國更具成本競爭力的價格生產產品，就有可能提高利潤率。所以，這其實有點像是對最終裁決結果的一種反應，其目標仍然是在產品消費地、客戶所在地生產產品，所以這是第一步，但當然我們已經感受到了直接的成本影響。由於我們進入第二季度的庫存狀況以及將這些成本資本化，我們在第一季或第二季不會感受到太大的影響，但隨著這些成本開始推出，這些價格上漲將有助於抵消其中的一些影響。

We're continually looking at our supply chain and sourcing and what we can do on the back end, like we said with the bonded warehouses that may not come into play as much, particularly if USMCA stays intact, at least for our health and wellness space, but then.

我們一直在關注我們的供應鏈和採購，以及我們可以在後端做些什麼，就像我們所說的那樣，保稅倉庫可能不會發揮太大作用，特別是如果 USMCA 保持完整，至少對於我們的健康和保健領域而言，但是。

I go back to the volume and the go to market initiatives and the aggressiveness on trying to conquest wins, and that's a bit of that playing offense and just the incremental volume we can create will help offset that and actually help expand margins as we know we've got a bit of an overcapacity situation right now with the company and so filling that up will help us leverage that fixed cost basis. So all in intent is to cover dollar for dollar, but we're being flexible with where the final rulings land.

我回到產量和進入市場的舉措以及試圖贏得勝利的積極性，這有點像進攻，而我們可以創造的增量產量將有助於抵消這一點，實際上有助於擴大利潤率，因為我們知道我們現在公司有點產能過剩的情況，因此填補這一缺口將有助於我們利用固定成本基礎。因此，我們所有的意圖都是一美元一美元地解決，但我們對最終裁決結果持靈活態度。

Okay, great. And then Sean, you mentioned, kind of assessing the portfolio maybe is part of your listening tour. Do you think that entails the vestitures of maybe some of the more recent acquisitions you made or, it's more fine tuning than that.

好的，太好了。然後肖恩，你提到，評估作品集也許是你傾聽之旅的一部分。您是否認為這可能意味著您最近進行的一些收購的結果，或者這需要更精細的調整。

Yeah, I think we're keeping an open mind to all of it. I think as I step back, it's looking at first the strategic fit and the financial performance of the various businesses and we've had a lot of cycles and a lot of due to COVID and a lot of end market weakness that that we're still battling.

是的，我認為我們對所有這些都持開放態度。我認為，當我退一步來看時，首先要看的是各個業務的戰略契合度和財務表現，我們經歷了很多周期，很多是由於 COVID 和很多終端市場疲軟，我們仍在與之抗爭。

So a bit of it is, do we see a path to growth and a path to a creative returns.

所以其中一點是，我們是否看到了一條成長之路和一條創意回報之路。

We have taken some small actions already within the business that we've talked about, particularly on the engineering side of the organization to get it much more targeted and focused and absorbing that into the business, which does involve cost savings when you're taking away a rooftop or in an office. Additionally, on the back end with the manufacturing footprint, tariffs is causing us to move some things around. But also we had absorbed the faster US operations into our Indiana and Florida facilities and so we'll continue to look at the back end, but absolutely we'll be evaluating the portfolio and continue to look at does it fit and does it have a path to helping our creative returns over time.

我們已經在談到的業務中採取了一些小行動，特別是在組織的工程方面，以使其更有針對性和重點並將其吸收到業務中，這確實涉及在拆除屋頂或辦公室時節省成本。此外，在製造足跡的後端，關稅導致我們轉移一些產品。而且，我們還將速度更快的美國業務吸收到了印第安納州和佛羅裡達州的工廠中，因此我們將繼續關注後端，但我們絕對會評估投資組合，並繼續研究它是否合適，以及是否有途徑幫助我們隨著時間的推移獲得創造性的回報。

But we also We are not interested in cutting our way to growth either. And so if if we ever are looking to Shrink the portfolio, we would be in a much better capital position to then get more acquisitive from an M&A perspective like the company's done over the last decade, but currently have to focus on debt reduction to have that flexibility to start looking at M&A more seriously, which likely won't happen until next year given the current projections for the company.

但我們也不想透過削減開支來實現成長。因此，如果我們希望縮減投資組合，我們將擁有更好的資本狀況，從而從併購的角度獲得更多收購機會，就像公司過去十年所做的那樣，但目前我們必須專注於減少債務，以便擁有靈活性，開始更認真地考慮併購，根據公司目前的預測，這可能要到明年才會發生。

Okay, thanks a lot, Sean.

好的，非常感謝，肖恩。

(Operator Instructions).

（操作員指令）。

Our next question comes from line of [Ma Dore with Baird]. Please proceed with your question.

我們的下一個問題來自[Ma Dore 與 Baird 在一起]。請繼續您的問題。

Good morning. So Q1 came in ahead of your initial expectations. When you look at your Q2 guide, how does that compare relative to the original plan?

早安.因此，第一季的表現超出了您最初的預期。當您查看 Q2 指南時，它與原計劃相比如何？

Hey, [Meg], good morning.

嘿，[梅格]，早安。

Thanks for the question.

謝謝你的提問。

So from an original plan perspective, obviously we got it first quarter and we got it to the full year.

因此，從最初的計劃來看，顯然我們在第一季就實現了這一目標，並且全年也實現了這一目標。

I would tell you that we are ahead from a first half perspective relative to our internal plan. So it's better when you combined our first quarter actual results and our second quarter guide. So we're feeling pretty good going into the first half of the year and certainly that. It changed when the tariffs came on to add more uncertainty, but as we said in our prepared remarks, we still believe and see a path to growth this year over prior year, which effectively was closer to that midpoint of our original annual guidance. But from the first half perspective, we feel we're ahead.

我想告訴你，從上半年的角度來看，我們相對於內部計畫是領先的。因此，將我們的第一季實際結果與第二季指南結合會更好。因此，我們對今年上半年的前景感到十分樂觀。當關稅出台並增加了更多不確定性時，情況發生了變化，但正如我們在準備好的發言中所說的那樣，我們仍然相信並看到今年的增長路徑將超過去年，這實際上更接近我們最初年度指導的中點。但從上半場來看，我們感覺我們領先。

Okay, and, then is sort of the implication here in a way we're kind of like modeling and thinking about the business that we should take your prior EBITDA guidance subtract the $15 million worth of cost impact that you've outlined for the second half.

好的，那麼，這裡的含義是，我們在建模和思考業務時，應該將您之前的 EBITDA 指導減去您為下半年概述的價值 1500 萬美元的成本影響。

And then maybe make some some of our own assumptions on demand. I mean, is that how you think about it? Is the $150 million dollar drag to sort of be fully realized in the back half, or is it less than that because you're raising price, you have some kind of mitigation strategies that you've qualitatively discussed previously?

然後也許根據需求做出一些我們自己的假設。我的意思是，您是這麼想的嗎？1.5 億美元的拖累是否會在下半年完全實現，或者由於您提高了價格，所以拖累金額會低於這個數字，您之前已經定性討論過一些緩解策略？

Yeah, definitely the latter make it won't be just taken and layering on $15 million of cost.

是的，後者肯定不會只是花費 1500 萬美元。

We don't feel there's that impact, that big of an impact here in the second quarter. Certainly we didn't really feel much in the first quarter. It's obviously a cash flow drain because we've got to pay the tariffs at the time of importing the products, but it's really the back half. And as I said, our intent is to cover the tar of the $15 million. Now there's going to be some timing issues with that and how quickly can we absorb it and does anything change, but I wouldn't layer on just $15 million of costs. I would. I would at least expect $10 to $15 million of abatement through the actions we take, and by the way, $15 million might not be that high if we're moving production and and abating the tariffs from the current ruling.

我們認為第二季不會產生那麼大的影響。當然，我們在第一季並沒有感受到太多。這顯然是現金流的流失，因為我們必須在進口產品時支付關稅，但這確實是後半部分。正如我所說，我們的目的是彌補 1500 萬美元的損失。現在會存在一些時間問題，我們能多快吸收它，以及是否會發生任何變化，但我不會只花費 1500 萬美元的成本。我會的。我預計透過採取的行動至少可以減少 1000 萬到 1500 萬美元的關稅，順便說一句，如果我們轉移生產並降低現行裁決規定的關稅，1500 萬美元可能就沒那麼高了。

So we're going to be flexible as they. Change and adapt quickly and I think that's a huge benefit to the size and scale of our company relative to bigger conglomerates that we can move quickly and we also have that footprint already. I talked about one of the things I love about our organization is the diversification of it and you look at even our revenue where just over half of it's in the US and call it a 25% and 25% in the EMEA. And Asia Pacific and our employee count emulates that as well and so it speaks to the capabilities of the operations just to move quickly and adapt so.

因此，我們會像他們一樣靈活。快速改變和適應，我認為這對我們公司的規模來說是一個巨大的優勢，相對於大型企業集團而言，我們可以快速行動，而且我們已經擁有了這樣的足跡。我說過，我喜歡我們公司的一個原因是它的多元化，看看我們的收入，其中超過一半來自美國，另外 25% 來自 EMEA 地區。亞太地區和我們的員工數量也模仿了這一點，因此它說明了營運的快速行動和適應能力。

Trying to provide a little bit more color than than just what you asked, but I would not add in $15 million of cost with no assumption of recovery.

嘗試提供比您所要求的更多的信息，但我不會在沒有恢復假設的情況下增加 1500 萬美元的成本。

Yeah, because I mean that's the question you're understandably kind of pulling the full year guide, but in terms of right setting, right sizing the numbers for the back half of the year if the message here is look. We have the $15 million of headwinds, but we think we can mitigate most of that. Then it would seem to me that relative to the prior, the original guidance that you have issued, the only variants would then really be change in demand, whether or not demand is actually getting worse relative to where you initially guided. So correct me if I'm wrong there, but related to this, the question is in the month of April, other than the pre-buy that you talked about, have you seen any other changes in demand either from your customers or or your distributors that would suggest, directionally kind of what might happen here as the year progresses.

是的，因為我的意思是，這是一個可以理解的問題，您可以參考全年指南，但就正確設定而言，如果這裡的資訊是看的話，那麼請正確調整下半年的數字。我們面臨 1500 萬美元的阻力，但我們認為我們可以減輕大部分阻力。那麼在我看來，相對於之前您發布的原始指導，唯一的變數實際上就是需求的變化，無論需求是否相對於您最初的指導而言實際上變得更糟。如果我錯了，請糾正我，但與此相關的是，問題是在四月份，除了您談到的預購之外，您是否看到客戶或分銷商的需求有任何其他變化，這些變化可以指示出隨著時間的推移這裡可能會發生什麼方向性的事情。

100% alignment with you on how you characterize that and that's how we thought about it coming into the call in terms of the guidance.

我完全同意您對此的描述，這也是我們在指導方面對此進行思考的方式。

We're not going to try and predict the various outcomes of the tariff rulings and ultimately what that downstream effect is on the back half of the year. So that's why we were trying to be very specific on our on our Q2 guidance and H1-- for as I've shared on prior calls when we get to these calls, it really comes down to an execution play to deliver our our forward quarter because we do see positive demand trends and one thing I would say is our order intake is exceeding our quarterly sales in the first quarter for five consecutive months. Our order will continue to increase, so we are seeing positive signs, but is that going to stick? Is there going to be impacts from from tariffs longer term? So.

我們不會試圖預測關稅裁決的各種結果以及最終對下半年的下游影響。因此，這就是為什麼我們試圖非常具體地說明我們第二季度和上半年的業績指引——正如我在之前的電話會議中所分享的那樣，這實際上取決於執行情況，以實現我們未來季度的業績，因為我們確實看到了積極的需求趨勢，我想說的是，我們的訂單量連續五個月超過了第一季度的季度銷售額。我們的訂單將繼續增加，因此我們看到了積極的跡象，但這種情況會持續下去嗎？長期來看關稅會產生影響嗎？所以。

That's we didn't try to be cute with our guidance and then pretend like we have the precision in the back half because there are just too many variables and uncertainties right now, but I will reiterate, we see a path to growth this year just as we did coming into the year. And so it's not about as much about pulling our guidance or affirming our guidance. It's just acknowledging that that demand on the back half is a big question mark, but What we have in our control and what we're focused on is that go to market and customer centricity, and I think you've probably seen that with some of the product launches we've done and some of the changes we've made made there to really attack those underserved markets, incremental revenue streams, and driving that accountability with our customers to be on this journey of growth with us. Go ahead, Jeremy.--

也就是說，我們並沒有試圖對我們的指導保持可愛，然後假裝我們在後半部分擁有精確性，因為現在有太多的變數和不確定性，但我要重申，我們看到今年的成長道路，就像我們進入今年一樣。因此，這不僅僅關乎撤回我們的指導或確認我們的指導。只是承認後半部分的需求是一個大問號，但我們可以控制的和我們關注的是進入市場和以客戶為中心，我想你可能已經看到了這一點，我們推出了一些產品，並做出了一些改變，真正打入了那些服務不足的市場，增加了收入來源，並推動了與客戶的責任，讓他們與我們一起踏上成長之旅。繼續吧，傑瑞米。 ——

Just a couple other points to add to the demand comment. For the first time in a while we saw the recreational space within electronics grow. We've been talking a lot about that being down, that that was a positive sign in the quarter, as well as in terms of the orders that the orders in hydraulics were up and higher than the sales. And one of the things we mentioned was the win back focus with our our son and Damon business when we established the the Center of Excellence. We know we created some disruption within our customer base there. We had a backlog that was growing and extended lead times, so we've got that back where where it needs to be from an operation perspective and we're engaging with those customers and we're seeing some early progress there in terms of a quote and and order win so.

只需補充幾點需求評論即可。這是我們第一次看到電子產品的娛樂空間不斷擴大。我們一直在談論銷售額下降，這是本季度的一個積極信號，而且就訂單而言，液壓訂單有所增加，且高於銷售額。我們提到的其中一件事是，當我們建立卓越中心時，我們重新將注意力集中在我們的兒子和達蒙的生意上。我們知道我們為那裡的客戶群帶來了一些混亂。我們的積壓訂單不斷增加，交貨時間也延長了，因此，從營運角度來看，我們已經將其恢復到了應有的水平，並且我們正在與這些客戶接觸，並且在報價和訂單方面我們看到了一些早期進展。

The broader demand environment, what's going to happen, what happens with the tariffs, a lot of uncertainty there, but at least, as we entered into to Q1 and and throughout Q1, there were some positive signs for us.

更廣泛的需求環境、將會發生什麼、關稅會發生什麼，都存在著許多不確定性，但至少，當我們進入第一季以及整個第一季時，我們看到了一些積極的信號。

Understood. One final question for me, you.

明白了。最後一個問題，請問我，

You talked about not cutting your way to growth. I can appreciate that comment, but the question is whether or not there needs to be cutting or restructuring of any form to adjust for the volume conditions that that you do have, and I'm talking about the hydraulics business specifically.

您談到了不削減開支來實現成長。我很欣賞這個評論，但問題是是否需要削減或重組任何形式以適應你所擁有的產量條件，我具體談論的是液壓業務。

When we're sort of looking here, your gross margins are looking pretty materially different than they did back in 2022, 2023. Admittedly, the revenue is lower as well, but within your cost structure, right, SGNA has really not been where the drag has been on your hydraulic margin. It's really been gross margin. So, as you mentioned, there's a capacity issue here. There's a lot of capacity and not enough volume to sort of support it. So I guess my question would be this, at what point in time?

從這個角度來看，你們的毛利率與 2022 年、2023 年相比有很大不同。無可否認，收入也較低，但在您的成本結構內，SGNA 實際上並沒有成為拖累您的液壓利潤率的因素。這確實是毛利率。所以，正如您所說，這裡存在容量問題。容量很大，但體積卻不足以支撐它。所以我想我的問題是，在什麼時間點？

Do you start really thinking hard about the amount of capacity that you have in this business, because realistically we have seen now multiple quarters where we're running on almost 2 years of organic declines in this hydraulic business. So how do you how do you think about the pure cyclical component of the of the business and what you have to do just from a short term standpoint to manage that gross margin relative to maybe something that's a little more structural. To get us back to where we were a couple of years ago even on lower volume.

您是否開始認真思考您在這個業務中擁有的產能，因為實際上我們已經看到我們的液壓業務在多個季度中經歷了近兩年的有機下滑。那麼，您如何看待業務的純週期性成分，以及從短期角度您需要做什麼來管理毛利率，相對於一些可能更具結構性的東西。讓我們回到幾年前的狀態，即使音量較低。

Thank you.

謝謝。

Yeah, that's a good observation and I would answer a couple different ways relative to faster and relative to sun, but even a broader comment, certainly the absorption. To me is the number one opportunity there. I want to address the not going to cut our way to growth, but I will highlight we have been judicious with our cost. If you look over the last four quarters, we've taken our operating expense, SCA cost down and tried to manage that. But now as you look up to the to the top of the P&L and that cost of goods sold mine, absolutely the volume is causing the the dilutive effect on the gross margins.

是的，這是一個很好的觀察，我會從幾個不同方面來回答，相對於速度更快和相對於太陽，但即使是更廣泛的評論，肯定是吸收。對我來說，那裡是最大的機會。我想強調的是，我們不會透過削減開支來實現成長，但我要強調的是，我們在成本方面一直非常謹慎。如果你回顧過去四個季度，你會發現我們已經降低了營運費用和 SCA 成本，並試圖實現這一目標。但是現在，當您查看損益表頂部和銷售成本時，您會發現，銷售量確實對毛利率產生了稀釋作用。

The other thing I would highlight this broad is that our profile of our hydraulics business has changed acquisitively and as I said earlier on one of my Answers to the question that all of our acquisitions that have come in since we were Sun Hydraulics have been at a dilutive state to what Sun Hydraulics was on a stand-alone basis. So there's a little bit of the mixed dynamic there, but I also see that as a Tremendous opportunity when I go back to my listening tour and hearing from an acquisition integration perspective, we've got way more opportunities to do more with what we have bought and actively pursuing that Jeremy just referenced one with our win back strategy in Damon.

我想強調的另一件事是，我們的液壓業務概況已經發生了收購性的變化，正如我之前在回答這個問題時所說的那樣，自從我們成為 Sun Hydraulics 以來，我們進行的所有收購都處於稀釋狀態，相對於 Sun Hydraulics 的獨立狀態。因此，這其中存在一些混合動態，但我還認為這是一個巨大的機會，當我回到我的傾聽之旅並從收購整合的角度聽到時，我們有更多的機會利用我們所購買的東西做更多的事情，並積極追求傑里米剛才提到的我們在達蒙的贏回戰略。

When I look at faster specifically, as we know, they're highly indexed agricultural segment and that. Industry that markets continue to be down for 4 years in a row in the US with registrations. We are seeing positive signals there in indicative order books and the team doing a tremendous job from a diversification perspective to get more into the commercial and construction space just over at Bama where I know you were as well. You just see the tremendous opportunity in major OEMs there [Palfinger], that we've got great relationships to go deeper with, so we feel faster is clearly on the right path and we see growth for that business for the balance of the year if if there isn't something disruptive in the overall geopolitical macro space, including tariffs from a sun hydra. Perspective, it's all about partnering with our distributors, as we go to market through distribution on that business with some OEM direct business where it makes sense, like we talked about an aerial work platform opportunity that we want in the first quarter, but the distributor business, when we talk about go to market, it's really partnering with them and getting back to what made Sun great. We spent a lot of time with our customer engagement, the product trainings, our largest customer, distribution customer in the US. We just had a great event with them here in Sarasota to celebrate that, and it's really driving that accountability and putting data and statistics analytics behind. To demonstrate where we do have underperforming distributors, we need them to improve and if they aren't, then we're going to find the right partners and give the distributors that we have very long standing relationships and success with to bet on them and give them more territory and opportunity to continue to grow. With us, but at the end of the day we see a lot of tremendous green shoot opportunities that that order book, that distributor inventory level declining again for the third quarter in the US gives us positive signs that as this grows, which the NFPA, our main. Industry association we belong to on the fluid power side shows that second half recovery coming, so we are, we are excited and we'll do what's needed to create that growth.

當我具體地觀察時，正如我們所知，它們是高度指數化的農業部門。產業表示，美國市場註冊量已連續四年下滑。我們在指示性訂單簿中看到了積極的信號，團隊從多元化的角度做了大量工作，在巴馬的商業和建築領域取得了更多進展，我知道你也在那裡。您會看到那裡的主要 OEM [Palfinger] 中存在著巨大的機遇，我們與這些 OEM 建立了良好的關係，可以進行更深入的發展，因此我們覺得 Faster 顯然走在正確的道路上，如果整個地緣政治宏觀領域不發生破壞性事件，包括來自太陽九頭蛇的關稅，我們預計該業務在今年餘下時間裡將會增長。從這個角度來看，這一切都與我們的經銷商合作有關，因為我們透過分銷業務進入市場，有一些 OEM 直接業務是有意義的，就像我們談到我們在第一季度想要的高空作業平台機會一樣，但是對於分銷商業務，當我們談到進入市場時，實際上是與他們合作，並回到 Sun 的偉大之處。我們花了大量時間與客戶互動、產品培訓、以及我們最大的客戶、美國的分銷客戶。我們剛剛在薩拉索塔與他們一起舉辦了一場盛大的活動來慶祝這一點，這確實推動了問責制並將數據和統計分析拋在了身後。為了表明我們確實存在表現不佳的分銷商，我們需要他們改進，如果他們不改進，那麼我們將找到合適的合作夥伴，並讓與我們有長期合作關係和成功經驗的分銷商押注他們，並為他們提供更多的領域和機會來繼續發展。對我們來說，但最終我們看到了很多巨大的綠芽機會，訂單簿、美國分銷商庫存水平第三季度再次下降，這給了我們積極的信號，隨著這一增長，NFPA，我們的主要。我們所屬的流體動力產業協會顯示，下半年復甦即將到來，因此我們感到很興奮，並將盡一切努力創造這種成長。

So it sounds like we're waiting for more volume rather than Restructuring capacity.

因此聽起來我們在等待更多的產量而不是重組產能。

I would say everything's on the table though. I mean, we're not, we're not satisfied absolutely with where we're at, but I'm not disappointed in what the customers and our team delivered in the first quarter and the path we're on right now. If growth doesn't materialize for the 3rd consecutive year, we absolutely need to do something from a capacity perspective. So I wouldn't consider anything off the table and keeping a very open mind to that, but I will highlight again we are very optimistic about the green shoots and the new products we've launched and the customer engagement we have that we would like to, we like to grow our way into this, but if the growth doesn't materialize, yes, other actions will be on the table.

我想說的是，一切都已擺在桌面上。我的意思是，我們對目前的狀況並不完全滿意，但我對客戶和我們的團隊在第一季的表現以及我們目前所走的道路並不失望。如果連續第三年沒有成長，我們絕對需要從產能角度採取一些措施。因此，我不會考慮任何不可能的事情，並對此保持非常開放的心態，但我要再次強調，我們對綠芽、我們推出的新產品以及我們擁有的客戶參與度非常樂觀，我們希望以這種方式發展，但如果增長沒有實現，是的，我們會考慮其他行​​動。

Thank you very much.

非常感謝。

We have reached the end of the question and answer session, Ms. Almond I'd like to turn the floor back over to you for closing comments.

問答環節已經結束，阿蒙德女士，我想把發言權交還給您，請您發表最後評論。

Great, thank you, operator, and thanks everyone for joining us today. We look forward to seeing a number of you at upcoming trade shows and investor conferences. As always, if you have any follow-up questions, feel free to reach out to me directly. Have a great day.

太好了，謝謝你，接線員，也謝謝大家今天的加入我們。我們期待在即將舉行的貿易展覽會和投資者會議上見到你們。像往常一樣，如果您有任何後續問題，請隨時直接與我聯繫。祝你有美好的一天。

Ladies and gentlemen, this does conclude today's teleconference. You may disconnect your lines at this time.

女士們、先生們，今天的電話會議到此結束。現在您可以斷開線路。

Thank you for your participation and have a wonderful day.

感謝您的參與並祝您有美好的一天。