Hubbell Inc (HUBB) 2026 Q2 法說會逐字稿

Thank you for standing by, and welcome to the Hubbell Incorporated second quarter 2026 earnings conference call. (Operator Instructions) As a reminder, today's program is being recorded.

感謝各位稍候，歡迎參加 Hubbell Incorporated 2026 年第二季財報電話會議。(接線員指示) 提醒各位，今天的會議將被錄音。

And now I'd like to introduce your host for today's program, Dan Innamorato, Vice President, Investor Relations. Please go ahead, sir.

現在我想介紹今天會議的主持人，投資人關係副總裁 Dan Innamorato。先生，請開始。

Thanks, operator. Good morning, everyone, and thank you for joining us. Earlier this morning, we issued a press release announcing our results for the second quarter of 2026. The press release and slides are posted to the Investors section of our website at hubbell.com.

謝謝，接線員。各位早安，感謝各位加入我們。今天稍早，我們已發布新聞稿，公布 2026 年第二季的業績結果。新聞稿與簡報已張貼於我們網站 hubbell.com 的「投資人」專區。

I'm joined today by our Chairman, President and CEO, Gerben Bakker; and our CFO, Joe Capozzoli. Please note our comments this morning may include statements related to the expected future results of our company. These are forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Please note the discussion of forward-looking statements in our press release and considered incorporated by reference into this call.

今天與會的還有我們的董事長、總裁暨執行長 Gerben Bakker，以及財務長 Joe Capozzoli。請注意，我們今天上午的評論可能包含與本公司預期未來業績相關的陳述。這些屬於 1995 年《私人證券訴訟改革法》所定義的前瞻性陳述。請參閱我們新聞稿中對前瞻性陳述的討論，並視為以引用方式納入本次電話會議。

Additionally, comments may also include non-GAAP financial measures. Those measures are reconciled to the comparable GAAP measures, which are included in the press release and slides.

此外，我們的評論也可能包含非 GAAP 財務衡量指標。這些指標與可比較的 GAAP 指標之調節表已包含於新聞稿與簡報中。

Now let me turn the call over to Gerben.

現在我把電話交給 Gerben。

Great. Thanks, Dan. Good morning, and thank you for joining us to discuss Hubbell's second quarter 2026 results. Hubbell delivered strong financial performance with double-digit growth in sales, adjusted operating profit, and adjusted earnings per share in the second quarter as well as year-to-date through the first half of 2026.

很好。謝謝你，Dan。各位早安，感謝各位加入我們，一同討論 Hubbell 2026 年第二季的業績。Hubbell 在第二季以及 2026 年上半年累計期間，於銷售額、調整後營業利益與調整後每股盈餘皆繳出雙位數成長的強勁財務表現。

Our strong positions in attractive end markets as well as continued execution on our strategy are demonstrated by our first half performance. As megatrends continue to accelerate, most notably in data center markets and load growth-related investment in utility T&D markets, we are seeing continued strength in our order book, which gives us increased visibility to our second half outlook.

我們在具吸引力的終端市場中擁有強勢地位，並持續落實策略，這些都反映在上半年的表現上。隨著大型趨勢持續加速，尤其是資料中心市場，以及公用事業輸配電（T&D）市場中與負載成長相關的投資，我們看到訂單簿持續強勁，讓我們對下半年展望的能見度提高。

Operationally, we are managing inflation effectively through price and productivity actions, investing in capacity expansion to serve our customers in high-growth areas and deploying capital to further upgrade our portfolio in high-growth and margin areas within our core.

在營運面，我們透過定價與生產力提升措施有效管理通膨，同時投資擴充產能以服務高成長領域的客戶，並運用資本進一步優化我們核心業務中高成長與高毛利領域的產品組合。

We are raising our full year 2026 guidance this morning to reflect double-digit growth in organic sales, adjusted operating profit, and adjusted earnings per share at the midpoint of our range.

今天上午我們上調 2026 年全年財測指引，以反映在區間中點，內生成長銷售額、調整後營業利益與調整後每股盈餘皆為雙位數成長。

Turning to page 4. We're pleased to have closed on the previously announced acquisition of NSI in early June. NSI is a business we know very well and have followed for a long time. It operates in the end markets with common customers, similar manufacturing processes, and a broad portfolio of critical electrical components with low cost of ownership and high cost of failure.

請看第 4 頁。我們很高興在 6 月初完成先前已宣布的 NSI 收購案交割。NSI 是我們非常熟悉、且長期關注的企業。其所服務的終端市場擁有共同客戶、相似的製造流程，並具備涵蓋廣泛的關鍵電氣元件產品組合，這些元件具備低持有成本但故障成本極高的特性。

The acquisition of NSI fits squarely within our overall strategy and enables us to double down on our attractive core while adding another high-growth, high-margin business to our portfolio.

收購 NSI 完全符合我們的整體策略，使我們能在具吸引力的核心業務上加碼投入，同時為產品組合新增另一項高成長、高毛利的業務。

Strategically, acquiring a leading electrical fittings brand in Bridgeport Fittings fills a key product line gap in our HES segment in a high-value niche. While the Polaris brand complements our leading Burndy brand in electrical grounding and connectors and NSI's exposure in network infrastructure provides opportunity to further penetrate datacom, broadband, and data center markets.

在策略面，收購 Bridgeport Fittings 這一領先的電氣配件品牌，補足我們 HES 事業部在高價值利基市場中的關鍵產品線缺口。同時，Polaris 品牌可在電氣接地與連接器領域補強我們領先的 Burndy 品牌，而 NSI 在網路基礎設施的布局也提供機會，進一步滲透資料通訊、寬頻與資料中心市場。

We're also confident that the (technical difficulty) of NSI will further accelerate our successful HES segment unification journey, which has resulted in market outgrowth and significant margin expansion over the last several years.

我們也有信心，NSI 的（技術性困難）將進一步加速我們 HES 事業部成功的整合進程；過去數年，這一進程已帶來超越市場的成長與顯著的利潤率擴張。

Our recent sales force realignment and vertical market investment will enable enhanced cross-selling and deeper penetration into high-growth verticals, while the leverage of scale and best practices across the two strong businesses will drive long-term productivity and cost savings, enhanced service, and optimization of capacity and manufacturing processes.

我們近期的銷售團隊重整與垂直市場投資，將促成更強的交叉銷售與對高成長垂直領域的更深度滲透；同時，透過兩家強勢業務在規模與最佳實務上的槓桿效益，將帶動長期生產力與成本節省、提升服務水準，並優化產能與製造流程。

Now let me turn the call over to Joe to give you some more details on the financial impact of the NSI acquisition as well as our second quarter results.

現在我把電話交給 Joe，請他就 NSI 收購案的財務影響以及我們第二季業績提供更多細節。

Thank you, Gerben, and good morning, everyone. From a financial standpoint, we anticipate NSI to be accretive to both the Electrical Solutions segment and total Hubbell's growth and margin profile, and we expect the acquisition to add adjusted earnings accretion of approximately $0.20 in 2026 and approximately $0.80 in 2027.

謝謝你，Gerben，各位早安。從財務角度來看，我們預期 NSI 將對電氣解決方案事業部以及 Hubbell 整體的成長與利潤率結構帶來增益；並預期本次收購在 2026 年可帶來約 0.20 美元的調整後每股盈餘增益，在 2027 年可帶來約 0.80 美元的增益。

Looking further ahead, we are targeting attractive revenue and cost synergies over the next three years, including 2% to 3% sales synergies from increased channel and vertical market penetration as well as approximately 3% to 5% cost synergies from leveraging the combined scale of our respective operations, supply chains, IT systems, and back-office capabilities.

展望更長期，我們目標在未來三年實現具吸引力的營收與成本綜效，包括因通路與垂直市場滲透提升而帶來 2% 至 3% 的銷售綜效，以及透過整合後在營運規模、供應鏈、IT 系統與後勤支援能力上的槓桿，帶來約 3% 至 5% 的成本綜效。

The $3 billion purchase price was financed with a combination of term loan, a bond offering and commercial paper, and our pro forma leverage moves to approximately 2.9 times net debt to EBITDA following the acquisition.

30 億美元的收購價款以定期貸款、債券發行與商業本票的組合方式融資；收購完成後，我們的備考槓桿比率約為淨負債對 EBITDA 的 2.9 倍。

As we continue to generate strong free cash flow in the second half of 2026 and beyond, we intend to continue aggressively investing in high-return CapEx to drive further growth and productivity while also returning cash to shareholders through dividend growth and modest share repurchases.

隨著我們在 2026 年下半年及其後持續產生強勁自由現金流，我們計畫持續積極投資於高報酬的資本支出（CapEx），以推動進一步成長與生產力，同時也透過股利成長與適度的庫藏股回購向股東返還現金。

We also intend to pay down significant portions of debt and deleverage our balance sheet over the next 24 to 30 months, which will drive strong adjusted EPS accretion in 2027 and position our strong balance sheet for further accretive M&A investment over the next several years.

我們也計畫在未來 24 至 30 個月償還相當部分的債務並降低槓桿，這將在 2027 年帶來強勁的調整後每股盈餘增益，並使我們強健的資產負債表得以在未來數年進一步進行具增益性的併購投資。

Moving to the second quarter results on slide 5. Hubbell's second quarter financial performance was strong with double-digit growth across sales, adjusted operating profit and adjusted earnings per diluted share. Net sales of $1.712 billion in the second quarter of 2026 increased by 15% as compared to the prior year.

接著看投影片 5 的第二季業績。Hubbell 第二季財務表現強勁，銷售額、調整後營業利益與調整後稀釋後每股盈餘皆呈現雙位數成長。2026 年第二季淨銷售額為 17.12 億美元，較去年同期成長 15%。

Organic growth of 10% was driven by 6% organic growth in Utility Solutions and 18% organic growth in Electrical Solutions, an acceleration relative to our prior quarters, driven primarily by strong performance in electric distribution and data center markets, supported by capacity expansion investments and incremental price realization.

內生成長 10%，主要由公用事業解決方案 6% 的內生成長與電氣解決方案 18% 的內生成長所帶動；相較前幾季成長加速，主要受惠於配電與資料中心市場的強勁表現，並由產能擴充投資與額外的價格落實所支撐。

Acquisitions contributed 5 points to growth in the second quarter, driven primarily by DMC Power and a partial month of contribution from NSI, both high-growth and high-margin businesses, which are off to strong starts and integrating nicely within our Utility Solutions and Electrical Solutions segments.

併購在第二季對成長貢獻 5 個百分點，主要由 DMC Power 以及 NSI 部分月份的貢獻所帶動；兩者皆為高成長、高毛利業務，開局表現強勁，並順利整合至我們的公用事業解決方案與電氣解決方案事業部。

From an operational standpoint, Hubbell generated $409 million of adjusted operating profit in the second quarter, representing 13% growth versus the prior year, with adjusted operating margins of 23.9%, representing modest contraction relative to a strong comparison in the prior year.

從營運角度來看，Hubbell 第二季創造 4.09 億美元的調整後營業利益，較去年同期成長 13%；調整後營業利益率為 23.9%，相較去年同期強勁的比較基期略有收縮。

Growth in adjusted operating profit was primarily driven by strong volume growth in high-margin areas as well as the impact of acquisitions. While cost inflation continues to increase, our pricing and productivity actions are keeping pace, and we are confident in our ability to continue to manage this equation throughout the second half of 2026, just as we have demonstrated very successfully over the past several years. We also continued to invest in our business throughout the second quarter to expand capacity in high-growth areas and generate future productivity.

調整後營業利益的成長主要來自高毛利領域的強勁出貨量成長，以及併購的影響。儘管成本通膨持續上升，我們的定價與生產力提升措施仍能跟上，我們有信心在 2026 年下半年持續管理好這個方程式，正如過去數年我們已非常成功地證明。我們在第二季也持續投資業務，以擴充高成長領域的產能並創造未來的生產力。

Adjusted earnings per diluted share were $5.52 in the second quarter, representing a 12% increase versus the prior year, driven primarily by adjusted operating profit growth. Below the line, higher interest expense associated with the recent borrowings for the NSI acquisition were largely offset by a lower year-over-year tax rate and a lower share count as a result of share repurchase investments made in the first half of 2026.

第二季調整後稀釋後每股盈餘為 5.52 美元，較去年同期成長 12%，主要由調整後營業利益成長所帶動。在營業利益以下項目方面，與 NSI 收購案近期借款相關的利息費用上升，主要被較去年同期更低的稅率以及因 2026 年上半年進行庫藏股回購投資而降低的流通股數所大致抵銷。

While second quarter free cash flow of $213 million was down relative to the prior year on working capital and timing and acquisition costs, first half year-to-date free cash flow of $259 million was up 12% year-on-year. On a full year basis, we are on track to deliver approximately 90% conversion of free cash flow to adjusted net income, which absorbs the impact of increased capital expenditures and acquisition costs.

儘管第二季自由現金流為2.13億美元，因營運資金與時點因素以及併購成本而較去年同期下降，但上半年年初至今自由現金流為2.59億美元，年增12%。以全年為基礎，我們正按計畫達成自由現金流約90%轉換為調整後淨利，並吸收資本支出增加與併購成本的影響。

Turning to page 6 to review our performance by segment. Utility Solutions delivered another strong quarter with double-digit growth in sales and adjusted operating profit. Utility Solutions generated net sales in the second quarter of $1.026 billion, which represented growth of 10% versus the prior year and includes organic growth of 6% and acquisitions that contributed 4%.

接著請看第6頁，檢視我們按事業部門的表現。公用事業解決方案（Utility Solutions）再度交出強勁的一季，銷售與調整後營業利益均呈現雙位數成長。公用事業解決方案第二季淨銷售額為10.26億美元，較去年同期成長10%，其中包含6%的有機成長以及併購貢獻的4%。

Our larger, higher-margin grid infrastructure business grew 7% organically in the second quarter, driven by strong double-digit growth in distribution markets. Transmission & substation growth was solid in the second quarter and we continue to expect double-digit growth on a full year basis in these markets as large projects ramp up in the second half and capacity investments come online.

我們規模更大、毛利率更高的電網基礎設施業務在第二季有機成長7%，主要受配電市場強勁的雙位數成長帶動。輸電與變電站市場在第二季成長穩健；隨著大型專案於下半年加速推進且產能投資陸續到位，我們仍預期這些市場全年將維持雙位數成長。

In Grid Automation, we were pleased to return to year-over-year growth in the second quarter as anticipated with continued strong growth in protection and controls, most notably in our substation switching products, while meters and AMI revenue grew sequentially and delivered strong orders that position us for continued recovery in the second half of 2026 and into 2027.

在電網自動化（Grid Automation）方面，我們很高興如預期在第二季恢復年對年成長；保護與控制持續強勁成長，尤其是我們的變電站開關產品。同時，電表與AMI營收較前一季成長，且取得強勁訂單，使我們有望在2026年下半年並延續至2027年持續復甦。

As Gerben highlighted in his opening remarks, orders were strong in the first half. And while we're not typically a backlog-driven business, our first half book-to-bill ratio of approximately 1.2 times for Utility Solutions is strong and provides high visibility to our second half outlook, where we expect organic growth to improve modestly relative to first half performance.

如Gerben在開場致詞中所強調，上半年訂單表現強勁。雖然我們通常不是以積壓訂單（backlog）驅動的業務，但公用事業解決方案上半年接單出貨比（book-to-bill）約為1.2倍，表現強勁，為我們下半年的展望提供高度能見度；我們預期有機成長將較上半年表現小幅改善。

This demand is broad-based across T&D markets, but with particular strength in orders and quoting activity for transmission and substation projects driven by load growth and data center build-outs. We continue to believe utility T&D markets are in the early stages of a multiyear investment cycle, and we are investing proactively in additional capacity to serve the long-term needs of our customers.

此需求在輸配電（T&D）市場中呈現廣泛基礎，但在輸電與變電站專案的訂單與報價活動上尤為強勁，主要受負載成長與資料中心建置帶動。我們仍相信公用事業輸配電市場正處於多年投資循環的早期階段，並正主動投資擴充產能，以滿足客戶長期需求。

Operationally, the Utility Solutions segment delivered $263 million of adjusted operating profit in the second quarter, representing 10% growth in adjusted operating profit versus the prior year, with adjusted operating margins up slightly year-over-year on a difficult prior year comparison. Operating profit growth was primarily driven by strong volume growth and acquisitions, while we continue to drive price and productivity actions to mitigate increased cost inflation.

在營運面，公用事業解決方案事業部第二季調整後營業利益為2.63億美元，較去年同期成長10%；在去年同期比較基期較具挑戰的情況下，調整後營業利益率年對年小幅上升。營業利益成長主要由強勁的出貨量成長與併購帶動；同時，我們持續推動定價與生產力措施，以緩解成本通膨上升的影響。

Moving to page 7. Electrical Solutions results were also strong in the quarter. On the top line, Electrical Solutions generated net sales of $686 million, which represented growth of 25% versus the prior year. Organic growth of 18% was driven by strength in data center, light industrial and nonresidential markets. Data center sales were up approximately 65% in the quarter as capacity additions, new product introductions and content gains drove outgrowth in a strong underlying market.

接著看第7頁。電氣解決方案（Electrical Solutions）本季表現同樣強勁。在營收方面，電氣解決方案淨銷售額為6.86億美元，較去年同期成長25%。18%的有機成長主要來自資料中心、輕工業與非住宅市場的強勁需求。資料中心銷售本季約成長65%，在強勁的基本市場環境下，產能擴增、新產品導入與內容份額提升帶動成長超越市場。

Our vertical market strategy and sales force alignment initiatives continue to drive commercial success in the data center markets and other high-growth areas of our Electrical Solutions portfolio.

我們的垂直市場策略與銷售團隊對齊（alignment）計畫，持續推動資料中心市場及電氣解決方案產品組合中其他高成長領域的商業成功。

The acquisition of NSI contributed $35 million of sales for the partial month of June, representing approximately 7 points of sales growth at accretive adjusted operating margins, in line with our expectations. Our integration efforts are off to strong starts, early order activity has been favorable and customer response has been positive. As Gerben noted earlier, NSI is a strong strategic fit within our Electrical Solutions portfolio, and we are confident that this business will drive near-term and long-term value creation for our shareholders.

NSI的併購在6月的部分月份貢獻了3,500萬美元銷售額，約相當於7個百分點的銷售成長，且在具增益（accretive）的調整後營業利益率下，符合我們的預期。我們的整合工作開局良好，早期接單活動表現有利，客戶回饋也相當正面。如Gerben先前所述，NSI與我們的電氣解決方案產品組合具有高度策略契合度；我們有信心此業務將為股東創造短期與長期價值。

Operationally, the Electrical Solutions segment delivered $146 million of adjusted operating profit in the second quarter, representing 18% growth versus the prior year. Strong volume growth, strong price and productivity realization and attractive profit contributions from NSI were partially offset by higher cost inflation and increased year-over-year restructuring and related investments within the quarter.

在營運面，電氣解決方案事業部第二季調整後營業利益為1.46億美元，較去年同期成長18%。強勁的出貨量成長、定價與生產力落實，以及NSI帶來的具吸引力獲利貢獻，部分被較高的成本通膨，以及本季年對年增加的重整（restructuring）與相關投資所抵銷。

Adjusted operating margins of 21.2% were down 130 basis points versus a difficult comparison in the prior year, largely driven by the net margin impact of price/cost productivity as well as approximately 60 basis points of higher restructuring investment.

調整後營業利益率為21.2%，在去年同期比較基期較具挑戰的情況下下降130個基點，主要原因為價格/成本生產力的淨利率影響，以及約60個基點較高的重整投資。

However, we have continued to take incremental pricing and productivity actions throughout the second quarter, and we are confident that the Electrical Solutions segment will return to adjusted operating margin expansion in the second half of 2026.

然而，我們在第二季持續採取額外的定價與生產力措施，並有信心電氣解決方案事業部將在2026年下半年恢復調整後營業利益率擴張。

Turning to page 8 to discuss our full year outlook. We are raising our 2026 outlook for sales growth, adjusted operating profit growth, adjusted operating margin and adjusted earnings per share. On sales, we are raising our growth outlook from plus 8% to 11% to plus 16% to 18%, reflecting an additional 5 points of acquisition contribution from NSI as well as an increased organic growth outlook from plus 6% to 9% to plus 9% to 11%.

接著看第8頁，討論我們的全年展望。我們上調2026年銷售成長、調整後營業利益成長、調整後營業利益率以及調整後每股盈餘的展望。在銷售方面，我們將成長展望由+8%至11%上調至+16%至18%，反映NSI額外帶來5個百分點的併購貢獻，以及有機成長展望由+6%至9%上調至+9%至11%。

We are raising our Utility Solutions organic growth outlook to plus 7% to 9%, largely reflecting strong visibility in T&D as a result of first half orders, and we are raising our Electrical Solutions organic growth outlook to plus 12% to 14%, driven by our increased expectations for data center growth of approximately 50% for the full year as well as stronger nonresidential and light industrial markets. Our organic growth raise is primarily driven by stronger volumes, along with modest incremental price realization relative to our prior outlook in both segments to offset increased inflation.

我們將公用事業解決方案的有機成長展望上調至+7%至9%，主要反映上半年訂單帶來的輸配電（T&D）高度能見度；並將電氣解決方案的有機成長展望上調至+12%至14%，主要由我們對全年資料中心約50%成長的預期提高，以及非住宅與輕工業市場更為強勁所帶動。本次上調有機成長主要由更強的出貨量驅動，同時兩個事業部相較先前展望亦有小幅額外的定價落實，以抵銷通膨上升。

Operationally, we anticipate adjusted operating margins of 23.1% to 23.4%, representing 40 to 70 basis points of year-over-year expansion. This outlook includes margin accretion from NSI, accelerated investments in service and capacity expansion to support customer needs in high-growth areas of our portfolio and increased full year restructuring investment.

在營運面，我們預期調整後營業利益率為23.1%至23.4%，代表年對年擴張40至70個基點。此展望包含NSI帶來的利潤率增益（margin accretion）、為支援產品組合中高成長領域客戶需求而加速的服務與產能擴張投資，以及全年重整投資增加。

Additionally, we anticipate an improvement in price/cost productivity relative to our prior outlook, driven by anticipated net benefit of $20 million in the quarter, largely as a result of IEPA refunds, net of potential customer considerations and a slight increase in underlying tariff costs from recent changes to the Section 301 tariff framework.

此外，我們預期價格/成本生產力相較先前展望將有所改善，主要受本季預期2,000萬美元淨效益帶動，這主要來自IEPA退款，扣除可能的客戶考量後，並反映近期《301條款》關稅架構變更導致的基礎關稅成本小幅上升。

Below the line, increased net interest expense of $170 million is driven by borrowings for the NSI acquisition. We expect a full year adjusted tax rate of 22.0% to 22.5%, though we anticipate a higher tax rate of approximately 24% in the third quarter driven by timing of discrete items.

在業外方面，淨利息費用增加至1.70億美元，主要由NSI併購融資借款所致。我們預期全年調整後有效稅率為22.0%至22.5%；不過，由於一次性項目的時點因素，我們預期第三季稅率將較高，約為24%。

We are raising our full year outlook for adjusted earnings per share from a range of $19.30 to $19.85 to a range of $20.25 to $20.55, which represents an increase of approximately 4% at the midpoint and a range of 11% to 13% growth year-over-year. We anticipate approximately 90% free cash flow conversion on adjusted net income in 2026, which reflects the impact of increased year-over-year spending on capital expenditures and NSI acquisition costs.

我們將全年調整後每股盈餘展望由19.30至19.85美元上調至20.25至20.55美元，按區間中點計約提升4%，並代表年對年成長11%至13%。我們預期2026年自由現金流對調整後淨利的轉換率約為90%，反映年對年資本支出增加與NSI併購成本支出的影響。

Finally, I'll highlight that our full year outlook reflects approximately 20% adjusted operating profit growth at the midpoint of our range, reflecting highly attractive underlying operating performance.

最後我要強調，我們的全年展望在區間中點反映約20%的調整後營業利益成長，顯示基本營運表現極具吸引力。

Now let me turn the call back over to Gerben to provide some concluding remarks.

現在我把電話交回給Gerben，請他做一些結語。

Great. Thanks, Joe. We are confident in our ability to execute over the second half to deliver on a strong 2026 financial outlook. In the near term, we are focused on driving outgrowth in our attractive end markets through product and service differentiation, executing on investments to support customer needs and continuing to effectively manage price and productivity in an inflationary environment.

很好。謝謝你，Joe。我們對於在下半年執行到位、實現強勁的2026年財務展望充滿信心。短期內，我們將聚焦於透過產品與服務差異化，在具吸引力的終端市場推動超越市場的成長；落實投資以支援客戶需求，並在通膨環境下持續有效管理定價與生產力。

Longer term, we continue to believe that our utility and electrical end markets are in the early stages of a highly attractive multiyear investment cycle, and we look forward to sharing more details with you on our long-term strategy and outlook in our next Investor Day, which we plan to host at our Utility Solutions training center in Centralia, Missouri on March 4, 2027.

從較長期來看，我們仍然相信公用事業與電氣終端市場正處於一個極具吸引力的多年投資循環的早期階段。我們也期待在下一次投資人日與各位分享更多關於我們長期策略與展望的細節；我們計畫於 2027 年 3 月 4 日在密蘇里州 Centralia 的 Utility Solutions 訓練中心舉辦。

With that, let me turn the call over to Q&A.

接下來，我把電話交給問答環節。

(Operator Instructions) Jeffrey Sprague, Vertical Research.

（接線員指示）Jeffrey Sprague，Vertical Research。

Can we just dive a little bit more into the machinations of separative re-structure? The strength in distribution, I thought was notable. So wondering there if there's some inventory restock after destock you've gone through for a while there.

我們能否再更深入一點談談分拆式重組的運作機制？配電端的強勁表現我覺得很值得注意。因此想請教，是否在你們經歷了一段時間去庫存之後，通路端出現了一些補庫存？

And then on the Transmission & Substation side, it sounds like it wasn't particularly strong on the top line in the quarter, but obviously, you have all these orders. Was there some timing benefit that impacted that part of the business in Q2 that fortifying your view on the second half?

另外在輸電與變電站（Transmission & Substation）方面，聽起來本季營收端並不是特別強，但你們顯然有很多訂單。Q2 是否有一些時點上的因素影響了這部分業務，進而強化你們對下半年表現的看法？

Yes, Jeff, thanks for the question. And certainly, strong order rates, as we mentioned, up 1.2 times in the quarter, pretty broad-based across our business, both from grid infrastructure as well as grid automation and within grid infrastructure, also broad between distribution and transmission.

是的，Jeff，謝謝你的問題。如我們提到的，本季訂單率確實強勁，達到 1.2 倍，且在我們業務中相當廣泛，涵蓋電網基礎建設與電網自動化；而在電網基礎建設內部，配電與輸電也都相當全面。

So certainly, with distribution up double digits, Transmission and substation also growing very nicely in the quarter and accelerating in the second half, and that comes through the visibility that we have with the orders and the backlog. The pipeline certainly in the quoting activity continues to accelerate.

因此，配電雙位數成長，輸電與變電站本季也有非常不錯的成長，且下半年將加速；這主要來自我們對訂單與在手訂單（backlog）的可見度。在報價活動方面，管線（pipeline）也持續加速。

So when we look ahead at the multiyear investment cycle, we see strong momentum, long-term growth supported by data center and utility CapEx and our position. Our position in these markets is really a leading position with the installed base with spec position with our reputation. So we feel really good.

展望這個多年投資循環，我們看到強勁動能；長期成長由資料中心與公用事業資本支出（CapEx）以及我們的市場地位所支撐。我們在這些市場的地位確實領先，包含既有裝機基礎、規格導入（spec）地位以及我們的聲譽。所以我們感覺非常好。

Certainly, as you think about transmission and substation, which you point out, perhaps being a little bit lower. We're up high single digits in the first half, and we expect to be up double digits in the second half here. And I'd say there's really nothing to read into this beyond, you get a little bit of project timing when sometimes these projects.

至於你提到的輸電與變電站可能稍微偏低的部分，上半年我們是高個位數成長，而我們預期下半年會達到雙位數成長。我想這沒有太多需要過度解讀的地方，主要就是一些專案時點的影響，因為有時候這些專案……

So quarter-to-quarter may have a slight noise in it. But again, based on what we're seeing in the market, based on our quote activity and our orders and backlog, we feel really good with the increased organic growth guidance that we're giving for the year in the second half.

因此季度之間可能會有些微雜訊。但再次強調，基於我們在市場上看到的情況、我們的報價活動、訂單與在手訂單，我們對於下半年上調的年度有機成長指引非常有信心。

Right. And the size of the guide obviously can base the confidence. Is there anything though like kind of the variance around that in terms of supply chain, your own capacity additions or project timing that creates sort of a variable outcome in the second half in your opinion?

了解。而指引幅度本身顯然也反映了信心。不過就你看來，下半年是否存在一些可能造成結果波動的因素，例如供應鏈、你們自身的產能擴增，或是專案時點等？

Yes. I would say nothing really to say on the supply chain. We are continuing to add capacity in our business, our substation part of the business, particularly where we're adding capacity. But again, this is embedded in our guidance, supported by the orders and the backlog. So it's why we're confident that we'll see growth accelerating there as we go into the second half.

是的。我會說供應鏈方面沒有什麼特別需要補充的。我們持續在業務中增加產能，尤其是在變電站相關業務這一塊，我們正在擴增產能。但這些都已反映在我們的指引中，並且有訂單與在手訂單支撐。因此我們有信心，隨著進入下半年，那裡的成長會加速。

And then maybe just one final one, maybe it's for Joe. But just thinking about sort of the implicit margin expansion in the back half that's part of the guide here. Would we level load that across the quarter, a little bit more back loaded? I mean, I guess you got the tariff refund in Q3, so maybe it's front-loaded Q3 to Q4. Just a little bit of color there, I think, would be helpful.

最後再問一題，可能是給 Joe 的。就本次指引所隱含的下半年毛利率/利潤率擴張來看，這會在各季平均分布，還是會更偏向後段？我的意思是，Q3 有關稅退稅，所以也許會是 Q3 相對 Q4 更前置？如果能提供一些補充說明，我覺得會很有幫助。

Yes. You put your finger on it there, Jeff. We're anticipating it is going to be a little more front-loaded given the nature and the timing of those, IEPA the tariff refunds and how they roll through, but really confident in that back half margin expansion playing out.

是的。Jeff，你說到重點了。考量 IEPA 的關稅退稅等事項的性質與入帳時點，以及它們如何反映在財務數字上，我們預期會稍微偏前置；但我們對下半年利潤率擴張的實現非常有信心。

Chris Snyder, Morgan Stanley.

Chris Snyder，摩根士丹利。

You guys talked about in utility specifically, the first half book-to-bill of 1.2 times gives you guys pretty good visibility into the back half. I guess my question is, are you guys starting to build any sort of visibility into '27? Or is it still too early to see that in the order book and the backlog? And then just maybe if you can't see it there, like how have customer conversations trended on '27? Does it feel like you guys can sustain maybe something at the higher end or even above the organic target?

你們提到在公用事業領域，上半年 1.2 倍的接單出貨比（book-to-bill）讓你們對下半年有相當不錯的可見度。我的問題是，你們是否已開始建立對 2027 年的某種可見度？還是說從訂單簿與在手訂單來看仍然太早？另外，如果在那裡還看不出來，那客戶對 2027 年的對話趨勢如何？是否感覺你們能維持在較高端、甚至高於有機成長目標的水準？

Yes. I would -- there's an echo here. We are seeing orders starting to be booked into 2027. That's particularly on the Transmission & Substation side of the business. Again, if you look at what utilities are doing, they're having to plan well into the future with some of these load growth and capacity that they're bringing online as we see higher voltage systems, those tend to book out further.

是的。我這邊有回音。我們確實開始看到訂單被排入 2027 年。這特別發生在輸電與變電站這一側的業務。再者，如果你看公用事業公司正在做的事情，隨著一些負載成長與即將上線的產能，他們必須把規劃拉到更長的未來；而當我們看到更高電壓等級的系統時，這些通常會更早、排得更遠。

So yes, we're seeing orders being booked in our transmission substation area into '27. And again, we feel based on both what we're seeing in the order book, the conversations we're having. And if you just think about with what's going on, right, with the data center build-out and the need to add additional load in addition to what we've been talking about for years, which is a system that needs to be hardened. It's just -- it's multiyear and utilities are starting to look further out.

所以是的，我們在輸電與變電站領域已看到訂單排到 2027 年。而且，基於我們在訂單簿中看到的情況以及我們正在進行的對話，我們的感受是正向的。如果你再想想目前正在發生的事情——資料中心建置帶動的需求，以及除了我們多年來一直在談的系統需要強韌化（hardened）之外，還需要新增額外負載——這就是一個多年期的趨勢，公用事業公司也開始把視野放得更遠。

I appreciate that. And maybe if I could just follow up on price. And I don't remember much prepared commentary on this. But if I remember correctly, you guys pushed through price, I think it was in April. Can you just maybe talk about the realization of that?

了解，謝謝。我想再追問一下價格。我不記得你們在事先準備的講稿中有太多提到這點。但如果我沒記錯，你們在 4 月推動了漲價。能否談談這項漲價的落實/實現情況？

Has there been any pushback in the channel to the action? And then should we expect more price action here into the back half, just given the clear inflationary pressure that's out there in the world?

通路端對這項措施是否有任何反彈？另外，考量全球明顯的通膨壓力，下半年我們是否應預期你們還會有更多的價格調整？

Sure. Chris. So yes, on the price equation, we did push price through in April. And the expectation of that price increase, which was broadly across utility and electrical, we were anticipating about 1 point of price to come out of that action. And at that point, was raising our full year price expectation to about 3 points.

當然可以。Chris。是的，在價格方面，我們確實在 4 月推動了漲價。對於這次廣泛涵蓋公用事業與電氣領域的漲價，我們原先預期可帶來約 1 個百分點的價格貢獻。在那個時間點，我們也把全年價格貢獻的預期上調到約 3 個百分點。

And since then, we've experienced a little more inflation, and we've gone out with additional price in July. And our expectation for that most recent price increase is to see about another 0.5 point in the back half of the year. So coming into the year, we were anticipating 2 points. We had the April price increase at a point, and now we're adding roughly another 0.5 point or so. So think about it like 3 to 4 points for the full year, Chris.

而在那之後，我們又遇到一些額外的通膨，因此我們在 7 月再度推出額外的漲價。對於最近這次漲價，我們預期在下半年可再帶來約 0.5 個百分點的貢獻。所以年初我們原本預期是 2 個百分點；4 月漲價帶來 1 個百分點；現在再加上約 0.5 個百分點左右。因此你可以把全年想成約 3 到 4 個百分點，Chris。

Chad Dillard, Bernstein.

Chad Dillard，Bernstein。

Just a question for you guys on your capacity expansion. Can you give a little bit more color on what verticals are you expanding? How do you think about the revenue unlock? And when do you think that will be completed?

想請教你們關於產能擴張的問題。能否更具體說明你們正在擴張哪些垂直領域？你們如何看待這將解鎖的營收？以及你們預期何時完成？

Chad, so the capacity expansion story is a really important part of our growth initiatives here as we continue to service strengthening demand out of the market. And so our CapEx investment this year, we're anticipating roughly $175 million to $190 million of CapEx, and that's up from our $155 million last year. A lot of our CapEx spend is going towards adding capacity and to adding productivity initiatives, but largely focused on capacity. Over the last couple of years, we continue to bring new capacity online.

Chad，因此，產能擴張的故事是我們在此推動成長計畫中非常重要的一環，因為我們持續服務市場端日益強勁的需求。因此，我們今年的資本支出（CapEx）投資，預期約為1.75億至1.90億美元，較去年的1.55億美元增加。我們的CapEx支出有很大一部分用於增加產能以及提升生產力的計畫，但主要仍聚焦在產能。在過去幾年裡，我們持續讓新的產能上線。

And every quarter, as that gets turned on, we continue to absorb new revenues into that capacity. It's hard to say exactly how much that translates to every quarter. But if you think about on a go-forward basis, bringing on roughly $25 million of new capacity-ish. It's not always linear, but we'll continue to do that as we progress the back half of '26 and as we work our way through '27.

而且每一季，隨著這些產能啟用，我們也持續把新的營收吸收到這些產能中。很難精確地說每一季會轉化成多少。但如果你從未來的角度來看，大概相當於新增約2,500萬美元左右的新產能。這不一定是線性的，但我們會在26年下半年推進的同時，以及一路走到27年時持續這麼做。

Got you. That's super helpful. And then just secondly, it sounds like you're seeing a larger slug of projects flowing through. So I'd be just curious, how does your win rate on those larger projects compare versus the corporate average? And then maybe you can talk a little bit more about your modular approach and how that helps you win?

了解。這非常有幫助。另外第二點，聽起來你們看到有更大一波的專案在流入。所以我想請教，這些較大型專案的得標率，和公司整體平均相比如何？另外也許你可以多談談你們的模組化方法，以及它如何幫助你們贏得案子？

Yes. So maybe starting on the modular, and then I'll come back to the win rate here, Chad, is it's actually a trend that we're seeing broadly in our business, and I think in the market, and it's a lot driven by labor availability and by quality control of something that you can build in a factory setting versus doing it on site.

是的。那我先從模組化談起，然後再回到得標率這一點，Chad。這其實是我們在整體業務中、我想也是在市場上廣泛看到的一個趨勢，而這在很大程度上是由勞動力供給情況，以及在工廠環境中建造相較於在現場施工所能達到的品質控管所驅動。

So if you think about our businesses in the electrical side, like data center and the PCX business where we do power skids or if you think about the substation business with system control where you do the control houses and you're basically building these in a factory environment with good quality control that you then plug and play into the system.

所以如果你看我們電氣端的業務，例如資料中心以及PCX業務（我們做電力滑撬 power skids），或是你看變電站業務中的系統控制（system control），我們會做控制室（control houses），基本上是在工廠環境中、在良好品質控管下建造，之後再以即插即用的方式整合到系統中。

But you're also seeing it on more on a SKU level and component and DCM -- DMC, sorry, is a really good example of a connector that where you're crimping the connector onto the bus bar and the traditional way of that would have been to do a weld in the field and now you can do a crimp in the field with less skilled labor requirement quicker.

但你也會在更偏SKU層級、零組件層級看到這種趨勢，而DCM——抱歉，是DMC——就是一個很好的例子：一種連接器，你把連接器壓接（crimp）到母排（bus bar）上。傳統做法是在現場進行焊接，但現在你可以在現場用壓接方式完成，對熟練勞工的需求更低、速度也更快。

So there's absolutely a trend going on where you're bundling more. And we have a great position. We -- if you think about the portfolio and the breadth of our SKUs, there's a lot of opportunities for us to either bundle things together or find solutions how one component can integrate each with the other. So certainly a trend in the market. As it relates to project and project flow, and I'd say this has accelerated.

所以確實有一個趨勢正在發生，也就是你會把更多東西打包在一起（bundling）。而我們具備很好的有利位置。如果你看我們的產品組合以及SKU的廣度，我們有很多機會把產品打包整合，或是找到解決方案，讓某個零組件能與另一個零組件相互整合。所以這確實是市場上的一個趨勢。至於專案與專案流入，我會說這已經加速了。

And if you look, for example, in our transmission and substation business. The project quotes have about doubled in the last couple of years, and that's driven in part by these higher voltage projects where utilities are just looking further out. They're planning these further out and by the strength of our portfolio to be able to offer some of those projects.

例如，如果你看我們的輸電與變電站業務。過去幾年，專案報價（quotes）大約翻了一倍，部分原因是這些更高電壓的專案，公用事業公司（utilities）正在把規劃視野拉得更長。他們把這些專案規劃得更早、更長期，同時也受惠於我們產品組合的強度，使我們能夠提供其中一些專案的方案。

So I'd say the win rate on those is probably similar to what we've seen traditionally, but there's just more of those coming through right now.

所以我會說，這些專案的得標率大概與我們傳統看到的相近，只是目前流入的案子更多。

Tommy Moll, Stephens.

Tommy Moll，Stephens。

Gerben, I wanted to start with the recent trends in distribution. Great to see up double digits this quarter, but that's clearly above the trend line for that business. So what more can you tell us about what's driving that strength? And what are you embedding for your assumption in the second half there?

Gerben，我想先從配電（distribution）的近期趨勢談起。很高興看到本季成長達到兩位數，但這顯然高於該業務的趨勢線。所以你能否多談談是什麼在推動這股強勁表現？以及你們在下半年假設中納入了什麼？

Yes. Thanks. So distribution is off to a good start, I would say. It is a reflection of the strong underlying markets. But also, if you recall, destock of the last couple of years and in a year over, I'd say the comps are still somewhat easy to lap.

是的。謝謝。所以我會說，配電業務開局不錯。這反映了強勁的基本面市場。但同時，如果你還記得，過去幾年的去庫存（destock），以年對年來看，我會說比較基期（comps）仍然相對容易跨越。

There's a lot of investment going on into transmission and substation market, and that's great to see. But underlying distribution markets also remain very strong. And the foundation of that strength and I see that as a long-term positive is the age of that infrastructure and the need to harden and the resiliency.

輸電與變電站市場正在進行大量投資，這點很高興看到。但配電的基本面市場也仍然非常強勁。而這股強勁的基礎——我認為是長期利多——在於基礎設施的老化，以及強化（harden）與提升韌性（resiliency）的需求。

And that still remains even though it's oftentimes overshadowed right now by the need for load growth, the need to there's a good support for that. You see that embedded in the CapEx budgets as well. So we believe the underlying -- we see the underlying market to be strong, but a little bit of Comcast.

即使目前常常被負載成長（load growth）的需求所掩蓋，但這些需求仍然存在，而且也有很好的支撐。你也可以在資本支出預算（CapEx budgets）中看到這點。所以我們認為基本面——我們看到基本面市場仍然強勁，但有一點Comcast。

So longer term, we see this continue to be attractive and certainly going into the second half and going into 2027. And we continue to see over the longer term for this to be a mid-single-digit plus market.

所以從長期來看，我們認為這仍會持續具吸引力，當然也包括下半年以及走向2027年。而且從更長期來看，我們仍認為這會是一個中個位數以上（mid-single-digit plus）的市場。

Yes. Yes. I also wanted to ask about the recent trends you called out in meters and AMI. I think you said you started to see a steadily improving market there and maybe some orders suggesting continued growth second half this year, even into next year. That's a very different tone than what we've heard recently. And so any gaps you can fill in would be appreciated.

是的。是的。我也想問你提到的電表（meters）與AMI的近期趨勢。我想你說你開始看到那邊的市場穩步改善，可能也有一些訂單顯示今年下半年會持續成長，甚至延續到明年。這和我們最近聽到的語氣非常不同。所以如果你能補充一些細節，我會很感謝。

Yes, a little bit. And if you think back on what we said, right, so Grid Automation had gone through some declines for several quarters, led by the Aclara business that we talked a lot about. And what we had said last quarter that we expected Grid Automation to return to slight growth in the second quarter, and that indeed happened. The book-to-bill also there was above 1. And so that gives us confidence that what we also called to see continued growth into the second half, and this provides us certainly confidence on that.

是的，稍微補充一下。如果你回想我們說過的內容，電網自動化（Grid Automation）已經連續幾季下滑，主要是由我們談了很多的Aclara業務所帶動。而我們上季說過，我們預期電網自動化在第二季會回到小幅成長，而確實也發生了。那邊的接單出貨比（book-to-bill）也高於1。因此，這讓我們對於我們所提到的下半年持續成長更有信心，也確實為此提供了信心。

If you then go specifically, I think your question was on the Aclara one. We're seeing improvement in the project flow there, particularly in the muni and co-op space. And if you recall, this is really an area we refocused on last year to really pivot the investment more to that to take some of the investments -- prior investments that we're making out and rightsized the business a little bit. And we're starting to see that pay off right now. So small and medium projects, some international projects that we're seeing that sets us up for growth in the second half even in the Aclara business right now.

如果再更具體一點，我想你的問題是針對Aclara那一塊。我們看到那邊的專案流入正在改善，特別是在市政（muni）與合作社（co-op）領域。如果你還記得，這其實是我們去年重新聚焦的一個領域，目的是把投資更明確地轉向那裡，並把先前正在進行的一些投資移出，同時也把業務規模做了一些適度調整（rightsized）。而我們現在開始看到這些措施帶來成效。因此，我們看到一些小型與中型專案、以及一些國際專案，這讓我們在下半年、甚至在Aclara業務本身也具備成長動能。

So yes, it's a little bit what we expected to see here, Tommy, but it's -- we're certainly happy that it's unfolding that way.

所以是的，這有點符合我們原本預期會看到的情況，Tommy，但——我們當然很高興它正以這樣的方式展開。

Christopher Glynn, Oppenheimer.

Christopher Glynn，Oppenheimer。

On the accelerated data center growth, you talked about the impact of the markets, capacity adds, new products as well as content. I just want to drill into the content component there. Is that a change in the allocations you're getting for certain product categories or really an expansion of the scope of your design wins?

關於資料中心成長加速，你談到市場影響、產能增加、新產品以及內容（content）。我想更深入探討一下其中的內容這一塊。這是你們在某些產品類別上獲得的配額（allocations）有所變化，還是你們設計導入（design wins）的範疇真的擴大了？

I would call it more of the same. And so as we continue to add capacity on core product lines that are going into the data center, what's really important in a lot of this, we call it our short-cycle data center support business is if you've got the inventory available right time, right place, they're pulling it pretty quickly.

我會把它稱為大同小異。因此，當我們持續在導入資料中心的核心產品線上擴增產能時，其中很重要的一點是——我們稱之為短週期的資料中心支援業務——只要你能在對的時間、對的地點備有庫存，客戶就會很快把貨拉走。

And we've been very aggressive in adding capacity and making sure we're investing in the inventory on the shelf. So that's really supporting our vertical market strategy, which is putting us in the position to slice that business, but that's a big piece of it.

而且我們在擴增產能、並確保投資於架上庫存方面一直非常積極。所以這確實在支撐我們的垂直市場策略，讓我們有能力切入並分割那塊業務，而這是其中很大的一部分。

Yes. And maybe the only thing I would add there, as you see data centers evolve where there are certainly higher capacity data centers, we're adapting some of our products for those applications. So I'd say there's a decent bit of new product development. If you think about our new Pin & Sleeve devices that are going to higher amperage to the 800-volt infrastructure, it contributes as well.

是的。另外我可能只想補充一點：隨著資料中心演進，確實出現更高容量的資料中心，我們也在調整部分產品以符合那些應用。所以我會說有相當程度的新產品開發。如果你想到我們新的 Pin & Sleeve（插針與套筒）裝置，將安培數提升以配合 800 伏特基礎設施，也同樣有所貢獻。

Great. And then just the seasonality at Electrical was pretty pronounced. Even if you strip out NSI, it was up about 15% sequentially. Wondering if June was really killer in particular. It's often the pull factor in the seasonal strength, I think.

很好。接著，Electrical 的季節性相當明顯。即使扣除 NSI，按季仍成長約 15%。想請問是否特別是 6 月非常強勁。我認為它常常是季節性走強的拉動因素。

And if the non-res acceleration, was that just kind of normalizing on project releases? Because I think the trend in those markets where project releases were just gummed up, but now tariffs and different factors have become normalized in the baseline.

另外，非住宅（non-res）加速成長，是不是只是專案釋出回到正常節奏？因為我認為那些市場的趨勢是：專案釋出之前被卡住，但現在關稅與其他因素已在基準面上趨於正常化。

Yes. I would highlight that there was nothing noteworthy of June relative to the second quarter and that being particularly pronounced. We saw a really solid growth over the course of the quarter within Electrical. And then in terms of some of the products and projects that we've got slated, we see continued growth and visibility on the electrical side, although it continues to remain short cycle, a lot of book and bill, and we've got good momentum both on nonres and on data center and light industrial.

是的。我想強調的是，相較於第二季整體而言，6 月並沒有什麼特別值得一提、或特別突出的地方。我們在 Electrical 這一塊在整個季度期間看到非常扎實的成長。至於我們已排定的一些產品與專案，我們在電氣端仍看到持續成長與能見度，雖然它仍屬短週期、很多是接單與出貨（book and bill），而且我們在非住宅、資料中心與輕工業兩端都有不錯的動能。

I would highlight that we have seen non-res starting to click up over the last couple of quarters, and we were -- we saw that in the fourth quarter, signs of an uptick. We saw that continue in 1Q, and we really saw that gaining momentum. We're a little cautious to say that that's going to continue to accelerate, but non-res has been pretty solid.

我也想強調，我們看到非住宅在過去幾個季度開始上行——我們在第四季就看到回升的跡象。第一季延續了這個趨勢，第二季我們真的看到動能在增強。我們對於它是否會持續加速仍稍微保守，但非住宅表現一直相當穩健。

Nigel Coe, Wolfe.

Nigel Coe，Wolfe。

We've covered a lot of ground already, but I did want to try and unpack the 40 bps increase in the operating margin for the full year. My wonky math gets 30 bps from tariff. I'm guessing about 40 bps from NSI. Maybe that's 70 -- you can clarify that. And what I'm trying to get at here is, how is the kind of the core price cost productivity kind of trended from your initial view?

我們已經談了很多，但我確實想試著拆解一下全年營業利益率提升 40 個基點（bps）。我用比較怪的算法算出關稅貢獻 30 個基點。我猜 NSI 約 40 個基點。也許合計是 70——你們可以澄清一下。我想問的是：核心的價格／成本／生產力（productivity）相較於你們最初的看法，趨勢如何？

You talked about the price increase in the back half of the year. Just wondering how that's all playing out together.

你們提到下半年會有提價。想了解這些因素加在一起目前是如何發展的。

Nigel, definitely, you're right on the 30 bps from net tariff, the 40 bps on NSI squares up with our math. And then we've got, we'll call it, operational, which is really volume growth, which is coming primarily from the electrical side, nonres, light industrial, data center uptick. That's being partially offset by higher levels of investment that we're anticipating making back into supporting all of this growth. And so that investment, which is partially offsetting that volume growth is really the other piece of the equation there.

Nigel，沒錯，你算的關稅淨影響 30 個基點是對的，NSI 的 40 個基點也和我們的計算一致。接著還有我們稱之為營運面的部分，主要是量的成長，主要來自 Electrical 端：非住宅、輕工業、資料中心的上行。但這部分會被我們預期為支撐這些成長而提高的投資水準所部分抵銷。因此，這些投資（部分抵銷量的成長）就是方程式中的另一塊。

Okay. Understood. And then the tariff, the $20 million, does that land disproportionately within electrical versus utility? And then looking beyond 3Q and into 4Q, do you think electrical will be back to margin growth in 4Q?

好的。了解。那關稅的 2,000 萬美元，是否在 Electrical 相對於 Utility 之間分布不均？另外，從第三季往後看第四季，你們認為 Electrical 在第四季會回到毛利率／利潤率成長嗎？

So first off, the tariff, we would split that roughly half and half between electrical and utility, and that's going to be concentrated in the third quarter. And the second piece of your question around electrical margin, we do see electrical margin returning to expansion in the back half, both in 3Q and in 4Q. 3Q, we'll see the surge with that IEPA refund dynamic, but we're anticipating continued margin expansion year-over-year in the fourth quarter in electrical.

首先，關稅我們大致會在 Electrical 與 Utility 之間各半分攤，而且會集中在第三季。至於你問的 Electrical 利潤率，我們確實看到 Electrical 的利潤率在下半年回到擴張，第三季與第四季都是。第三季會因 IEPA 退款的動態而出現一波拉升，但我們預期第四季 Electrical 的利潤率仍會呈現年對年擴張。

And I'm sorry, if I'm not being annoying and just deduct that tariff in 3Q, would electrical still be expansion?

抱歉，如果我這樣問不會太煩：如果把第三季的關稅扣掉，Electrical 還會是擴張嗎？

Yes. I mean that's hard to reconcile right now, Nigel, and I don't know if we can take that offline.

會的。我的意思是，Nigel，這件事現在很難精確對帳，我不確定我們能不能私下再談。

Alexander Virgo, Evercore ISI.

Alexander Virgo，Evercore ISI。

I wonder if I could dig into the book-to-bill, just that a little bit more. So 1.2 times book-to-bill implies about $2.4 billion in the first half. I'm guessing that not all of it is expected to be delivered in H2. So I wonder if you could just expand that a little bit for us and maybe help us with any color on duration and I guess, any changing dynamics in terms of customer projects duration that will, I guess, keep building that into the end of the year and building up for 2027.

我想再深入問一下接單／出貨比（book-to-bill）。1.2 倍的 book-to-bill 意味著上半年大約 24 億美元。我猜不是全部都預期在下半年交付。所以想請你們再多說一點，並提供一些關於期間長短（duration）的資訊；以及我想問的是，客戶專案期間是否有任何變化的動態，會讓接單一路累積到年底，並為 2027 年做準備。

Yes. Thanks, Alexander. And it's hard to exactly do all the math for you, but let me try to just broadly talk about it. So we are a short-cycle business. So part of that book and bill, we will see in the second half.

是的。謝謝你，Alexander。要把所有數學精確算給你看確實不容易，但我試著用較宏觀的方式說明。我們是一個短週期的業務。因此，那些接單與出貨（book and bill）的一部分，我們會在下半年看到。

It's the reason why we're taking our organic growth guidance up for the second half. But as the question came earlier as well of are you seeing bookings into 2027. And I would say part of this is specifically, if you look at the longer cycle product lines like in transmission and the substation.

這也是為什麼我們把下半年的有機成長指引上調。但如同先前也有人問到：你們是否看到接單延伸到 2027 年？我會說其中一部分是特別針對較長週期的產品線，例如輸電（transmission）與變電站（substation）。

There's part of that, that's booking into 2027. But I would say there, too, it gives us a lot of confidence on our longer-term framework that we've been talking about that this investment cycle is really multiyear and that we expect to continue to have attractive performance and results longer term. So it's a little bit of both, more confidence and increased expectations for the second half and a good setup for '27.

那裡面有一部分的確是接到 2027 年。但我也會說，這同樣讓我們對我們一直在談的長期框架更有信心：這一輪投資循環確實是多年期的，我們預期長期仍能維持具吸引力的表現與成果。所以兩者都有：對下半年更有信心、預期更高，同時也為 2027 年打下良好基礎。

Okay. And then could I follow up with just a question on the 60 bps of headwinds from restructuring at HES year-on-year. Is that something we need to think about for the second half as well? Or is it more to do with the NSI acquisition and integration costs, and therefore, it's more of a one-off?

好的。接著我想追問一下：HES 的重整（restructuring）年對年帶來 60 個基點的不利因素。這在下半年也需要納入考量嗎？還是它更多與 NSI 的收購與整合成本有關，因此屬於一次性？

Yes, not really related to the NSI acquisition that just is part of our ongoing Electrical segment transformation program. And so we're anticipating, as our guidance implied approximately $20 million of restructuring related in the full year, for which roughly half of that, maybe slightly more than half was spent in the first half and a lot of that was in Electrical. We continue to invest in that program in Electrical.

是的，這其實和 NSI 收購沒有太大關係，而是我們 Electrical 事業部持續推動的轉型計畫的一部分。因此，正如我們的指引所暗示的，我們預期全年約有 2,000 萬美元的重整相關支出，其中大約一半、或略多於一半已在上半年支出，而其中很大一部分發生在 Electrical。我們會持續在 Electrical 端投資這個計畫。

So we're anticipating the back half is also pretty heavily loaded with restructuring-related investments that will set us up and continue to position for efficiency and margin expansion in '27 and beyond related to that program among other things. But I think that's the most constructive way to think about that restructuring investment in Electrical.

因此，我們預期下半年也會相當大幅度地投入與重組相關的投資，這些投資將為我們奠定基礎，並使我們在該計畫等因素帶動下，於 2027 年及之後持續提升效率並擴大利潤率。但我認為，這是思考電氣業務重組投資最具建設性的方式。

Neal Burk, UBS.

Neal Burk，瑞銀。

So last quarter, you provided some commentary on the high-voltage transmission opportunity, the $1.5 billion over 10 years. And maybe this was part of some of the strength that you saw in book-to-bill in the quarter. But any update you can provide on these projects and the size of the opportunity as I think some of these projects should be starting around now in the second half of the year.

所以上一季，你們對高壓輸電的機會做了一些評論，也就是 10 年內 15 億美元。也許這是你們本季在接單出貨比（book-to-bill）看到部分強勁表現的原因之一。但你能否更新一下這些專案以及機會的規模？因為我認為其中一些專案應該差不多會在今年下半年左右開始。

Right. Yes. So indeed, you're right, it's pretty broad-based, I would say, and we see it where load growth in data centers are going in. That's where the request for interconnections are the highest. And our first 765, which we talked about winning, will start shipping in '27.

對。是的。所以確實，你說得沒錯，我會說這是相當廣泛的趨勢，我們看到資料中心的負載成長正在發生。那裡的併網（interconnections）申請需求最高。而我們先前提到贏得的第一個 765 kV 專案，將在 2027 年開始出貨。

We're also seeing 550 kV, which is similarly an application used for these interconnects that we're shipping this year in the second half of this year. So you're right to point out that it's about happening at later part of this year and then certainly into next year.

我們也看到 550 kV，同樣是用於這些併網的應用，我們將在今年下半年開始出貨。所以你指出得沒錯，這大約會在今年較後段開始發生，並且肯定會延續到明年。

The quoting pipeline activity is strong. I mentioned earlier, we're quoting about twice the volume that we were a couple of years ago, and a lot of this is driven by those higher kV projects. And just a reminder of our position in this market. I mean, we have the leading installed base of Transmission & Substation infrastructure. We have the relationships and the capabilities to innovate these higher voltage projects.

報價管線（quoting pipeline）的活動很強勁。我先前提到，我們目前的報價量大約是兩年前的兩倍，而其中很大一部分是由那些更高 kV 的專案所驅動。也提醒一下我們在這個市場的地位。我的意思是，我們擁有輸電與變電站（Transmission & Substation）基礎設施最大的既有裝機基礎。我們具備關係與能力，能在這些更高電壓專案上進行創新。

We're doing this in concert with our customers, specified in that process. We have very capable lab that we use to test and spec these products in with.

我們與客戶協同進行，在該流程中完成規格指定（specified）。我們也有非常有能力的實驗室，用來測試並將這些產品納入規格。

So it's a very attractive area, and we're well positioned. And as far as the growth rate, what we talked about, about $1.5 billion opportunity over the next 10 years. And if you think about that for our business, given our position, our win rate, it's about 1 point of additional growth over the next several years.

因此這是一個非常具吸引力的領域，而我們也具備良好布局。至於成長率，我們談到的是未來 10 年約 15 億美元的機會。如果你把這放到我們的業務來看，考量我們的市場地位與得標率，未來幾年大約可額外貢獻 1 個百分點的成長。

And just one follow-up question on the growth outlook for this year. In Grid Infrastructure, I believe you said it was expected to be up double digits in the back half of the year. Please let me know if that's correct. But the comp gets a lot harder in 4Q.

另外再追問一題，關於今年的成長展望。在電網基礎設施（Grid Infrastructure）方面，我記得你說下半年預期會有雙位數成長。請告訴我這是否正確。但第四季的比較基期會變得更難。

So curious about how to think about revenues sequentially in the grid infrastructure business. Is there any reason revenues in this business can't be up in 4Q given the momentum you've seen in book-to-bill? Or is there some seasonality that will limit growth from 3Q to 4Q?

所以我想了解該如何看待電網基礎設施業務的營收季對季走勢。鑑於你們在接單出貨比看到的動能，是否有任何原因使得該業務第四季營收無法成長？或者是否有某些季節性因素會限制第三季到第四季的成長？

Yes. Grid infrastructure revenue pacing around double digits for the year. We would anticipate that continues. You're right to highlight there's a tough comp in the fourth quarter, but grid infrastructure continues with its momentum. So that's about the right way to think about the back half of the year, including the fourth quarter.

是的。電網基礎設施的營收節奏，今年大約是雙位數成長。我們預期這會持續。你指出第四季有較難的比較基期是對的，但電網基礎設施仍持續保持動能。所以這就是看待下半年的正確方式，包括第四季。

Brett Linzey, Mizuho.

Brett Linzey，瑞穗。

Question is on price/cost productivity. So the improvement, the net $20 million in Q3, it sounds like that's all refund. What's implied for Q4 in terms of the refund impact, if any? And then I guess, is there any benefit that's more structural from the recent changes on 232 or 301 that might be embedded in the guide or potentially incremental?

問題是關於價格/成本生產力（price/cost productivity）。所以第三季淨改善 2,000 萬美元，聽起來那全部都是退款（refund）。那第四季在退款影響方面（如果有的話）隱含的是什麼？另外我想問，近期 232 或 301 的變動是否有任何較結構性的好處，可能已反映在指引中或可能帶來額外增量？

Yes. So I'll take those two. The first one on refund, the refund we're anticipating is in the guide is all in the third quarter. If there's any more that sprinkled over, we would certainly update and be transparent about that, but it's all third quarter. And then in terms of any structural changes to 301 or 232, I'd say over the course of this year, there's been minor changes along the way, nothing of any substance one way or another.

是的。我來回答這兩點。第一個關於退款，我們在指引中預期的退款全部都在第三季。如果之後還有任何零星的部分，我們當然會更新並保持透明，但目前就是全部在第三季。至於 301 或 232 是否有任何結構性變化，我會說今年以來一路有些小幅變動，但沒有任何實質性的重大變化，不論正面或負面。

There's been some minor pluses and minuses. And I'd say that continued right on up through last week as the 122 sunset and were replaced with the new framework for 301, quick assessment on our business is minor impact on a go-forward basis. So by and large, over the course of this year, any changes in tariff have been relatively small.

期間有一些小幅的正負變化。而且我會說這種情況一直延續到上週，當 122 到期（sunset）並由 301 的新框架取代；就我們業務的快速評估而言，對未來的影響很小。因此總體來看，今年以來任何關稅變動的幅度都相對不大。

That said, it's still a very inflationary environment, right? And we still see copper and aluminum and steel and all the likes inflating this year.

話雖如此，這仍然是一個通膨非常高的環境，對吧？我們仍看到銅、鋁、鋼等各類原物料在今年持續上漲。

Okay. Great. I appreciate that. And I guess just on free cash flow is tracking to 90% of adjusted net this year. I imagine there's some one-timers on M&A and things running through there. How are you thinking about the progression and the ability to get back to 100%-plus over the next 12-plus months as maybe some of those items roll off?

好的。很好。謝謝你的說明。另外關於自由現金流，今年看起來會達到調整後淨利的 90%。我想其中可能有一些併購（M&A）等一次性項目流經其中。你們如何看待未來 12 個月以上的進展，以及在某些項目逐步消退後，回到 100% 以上的能力？

Yes. I think over the next, let's say, 12 to 24, we're anticipating continuing to pace at elevated levels of CapEx. So if CapEx used to be less than 2% of sales when we were converting at 100% of net income, we're now pacing at 2.5% to 3% of sales, which is going to have a natural headwind to that conversion rate, which is why we're anticipating kind of pacing around 90% for the next couple of years as we do continue to invest to support all of this growth that's out there in the market that we're talking about that we do need to add capacity.

是的。我認為在接下來大約 12 到 24 個月，我們預期資本支出（CapEx）仍會維持在較高水準。所以如果過去在我們能以淨利 100% 轉換時，CapEx 低於營收的 2%，那麼現在我們的節奏是營收的 2.5% 到 3%，這自然會對轉換率形成逆風；這也是為什麼我們預期未來幾年大致會維持在 90% 左右，因為我們確實需要持續投資，以支援我們所談到的市場上所有成長，並且需要擴增產能。

The other dynamic, obviously, when we've got growth ahead, we have to invest certain amounts in working capital, and that's another part of the equation, a smaller part of the equation, but that is another part of the equation there on our conversion rate.

另一個動態當然是，當我們面前有成長時，就必須在營運資金上投入一定金額，這也是方程式的一部分；它在整體中占比較小，但確實也是影響我們轉換率的另一個因素。

This does conclude the question-and-answer session of this program. I'd like to hand the program back to Dan Innamorato for any further remarks.

本節目問答環節到此結束。我想把節目交回 Dan Innamorato，請他做進一步的結語。

Great. Thanks, everyone, for joining us. We'll be around all day for calls. Thank you.

很好。感謝各位今天加入我們。我們今天一整天都會在，方便接聽電話。謝謝。

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

感謝各位女士、先生參與今天的會議。本節目到此結束。您現在可以斷線。祝您有美好的一天。