ITT Inc (ITT) 2024 Q4 法說會逐字稿

Welcome to ITT's 2024 fourth-quarter conference call. Today is Thursday, February 6, 2025. Today's call is being recorded and will be available for replay beginning at 12:00 p.m. Eastern Time. (Operator Instructions)

歡迎參加 ITT 2024 年第四季電話會議。今天是 2025 年 2 月 6 日，星期四。今天的通話正在錄音，將於中午 12 點開始重播。東部時間。 （操作員指令）

It is now my pleasure to turn the floor over to Mark Macaluso, Vice President, Investor Relations and Global Communications. You may begin.

現在我很高興將發言權交給投資者關係和全球傳播副總裁馬克‧馬卡魯索 (Mark Macaluso)。你可以開始了。

Thank you, Gigi, and good morning. Joining me in Stanford today are Luca Savi, ITT's Chief Executive Officer and President; and Emmanuel Caprais, Chief Financial Officer. Today's call will cover ITT's financial results. For the 3 and 12-month period ended December 31, 2024, which we announced this morning.

謝謝你，吉吉，早安。今天與我一起來到史丹佛的還有 ITT 的執行長兼總裁 Luca Savi；以及財務長 Emmanuel Caprais。今天的電話會議將討論 ITT 的財務表現。我們今天早上宣布了截至 2024 年 12 月 31 日的 3 個月和 12 個月期間。

Please refer to slide 2 of the presentation available on our website, where we note that today's comments will include forward-looking statements based on our current expectations. Actual results may differ materially due to several risks and uncertainties, including those described in our 2023 annual report on Form 10-K and other recent SEC filings.

請參閱我們網站上的簡報的第 2 張投影片，我們指出今天的評論將包括基於我們目前預期的前瞻性陳述。由於多種風險和不確定因素，包括我們 2023 年 10-K 表年度報告和其他近期 SEC 文件中所述風險和不確定性，實際結果可能存在重大差異。

Except or otherwise noted, the fourth quarter and full year results we present this morning will be compared to the fourth quarter and full year 2023 and include certain non-GAAP financial measures. The reconciliation of such measures to most comparable GAAP figures are detailed in our press release and in the appendix of our presentation, both of which are available on our website.

除非另有說明，我們今天上午展示的第四季度和全年業績將與 2023 年第四季度和全年業績進行比較，並包括某些非 GAAP 財務指標。這些指標與大多數可比較 GAAP 資料的調整詳見我們的新聞稿和簡報的附錄，均可在我們的網站上查閱。

With that, it's now my pleasure to turn the call over to Luca, who will begin on slide 3.

現在我很高興將發言權交給 Luca，他將從第 3 張幻燈片開始發言。

Thank you, Mark, and good morning. First and foremost, I would like to sincerely thank our ITT-ers for their commitment day in and day out to deliver for our customers, no matter the challenge.

謝謝你，馬克，早安。首先，我要由衷感謝我們的 ITT 員工，無論面臨何種挑戰，他們都日復一日地致力於為我們的客戶提供服務。

2024 was a pivotal year for ITT. We grew outperforming most of our end markets. We executed delivering significant margin expansion, and we are transforming our portfolio with the divestiture of Wolverine and the acquisitions of Svanehøj and kSARIA.

2024 年對 ITT 來說是關鍵的一年。我們的成長表現超越了大多數終端市場。我們實現了利潤率的大幅提高，並且透過剝離 Wolverine 以及收購 Svanehøj 和 kSARIA 來轉變我們的投資組合。

Let me get into 2024 financial highlights. We grew orders 10% or 5% organic, resulting in an ending backlog of $1.6 billion, up 34% year over year. We grew revenue 11% or 7% organic, with a strong performance in all businesses, including also our kSARIA and Svanehøj acquisitions.

讓我來了解一下 2024 年的財務亮點。我們的訂單成長了 10% 或 5% 有機成長，導致期末積壓訂單達到 16 億美元，年增 34%。我們的營收成長了 11% 或 7% 有機成長，所有業務都表現強勁，包括我們對 kSARIA 和 Svanehøj 的收購。

We expanded margin by 80 basis points to almost 18%. We generated nearly $440 million of free cash flow and delivered 12% EPS growth, after over 17% growth in 2023. We did all of this while absorbing the loss of earnings from the divestiture of Wolverine and higher interest expense stemming from the acquisitions of Svanehøj and kSARIA. As you can see, a truly remarkable year.

我們將利潤率提高了 80 個基點，達到近 18%。我們產生了近 4.4 億美元的自由現金流，實現了 12% 的每股盈餘成長，而 2023 年的成長幅度超過 17%。我們在完成所有這些的同時，也吸收了 Wolverine 資產剝離帶來的收益損失以及收購 Svanehøj 和 kSARIA 帶來的更高利息支出。如您所見，這真是非凡的一年。

Fourth quarter was equally strong. 12% revenue growth or 6% organic driven by pump project and (inaudible) cycle and connectors. Operating margin reached 17.5% with MT surpassing 19% and IP eclipsing 21%. EPS $1.50 grew 12%, and we finished with a strong cash performance to cap of 2024.

第四季同樣強勁。營收成長 12% 或 6% 的有機成長，主要得益於泵浦項目和（聽不清楚）循環和連接器。營業利益率達 17.5%，其中 MT 超過 19%，IP 超過 21%。每股收益 1.50 美元，成長 12%，到 2024 年，我們實現了強勁的現金表現。

On 2024, let me share some highlights. On revenue, all our businesses delivered outstanding growth. Connect & Control Technologies grew 9% organic, driven by continued growth in defense, industrial connectors and also aerospace. IP grew 8% organic, powered by growth in all short-cycle categories and high-teens growth in pump projects. Motion Technologies grew 5% organic with fixed outperforming global automotive production by 730 basis points, whilst KONE Rail grew 20%.

2024 年，讓我分享一些亮點。在收入方面，我們所有業務都實現了出色的成長。連接與控制技術部門有機成長了 9%，這主要得益於國防、工業連接器以及航空航天業的持續成長。 IP 有機成長了 8%，這得益於所有短週期類別的成長以及泵浦項目的高成長。 Motion Technologies 的有機成長率為 5%，比全球汽車產量高出 730 個基點，而 KONE Rail 的成長率為 20%。

On profitability, strong volumes, coupled with favorable price cost actions drove 16% of ITT's income growth, which is all the more impressive considering that we overcame the loss of approximately $15 million of income from the Wolverine divestiture. MT margin finished at almost 19%, and IP nearly reached 21%. With this performance, we surpassed our long-term margin target two years ahead of plan.

在獲利能力方面，強勁的銷售加上有利的價格成本行動推動了 ITT 收入成長 16%，考慮到我們克服了 Wolverine 資產剝離造成的約 1500 萬美元的收入損失，這一增長就更加令人印象深刻。 MT 利潤率接近 19%，IP 利潤率接近 21%。憑藉這一業績，我們提前兩年超越了長期利潤目標。

As you can see, our above-market organic growth and margin expansion is creating shareholder value, and it is here to stay. And now we are compounding this with impactful M&A. In 2024, we deployed $865 million to the acquisition of cryogenic pump manufacturers Svanehøj and defense interconnect specialist kSARIA.

如您所見，我們高於市場的有機成長和利潤率擴張正在創造股東價值，而且這種趨勢將持續下去。現在我們正透過有影響力的併購來實現這一點。 2024 年，我們斥資 8.65 億美元收購低溫幫浦製造商 Svanehøj 和國防互連專家 kSARIA。

And our strategy is starting to bear fruit. Svanehøj orders grew 26% for the full year, and kSARIA is already contributing meaningfully after just three months. These acquisitions were possible, thanks to nearly $440 million of free cash flow. And importantly, our M&A pipeline remains active. On top of this, we returned more than $200 million to shareholders.

我們的策略已開始取得成效。 Svanehøj 的訂單全年增長了 26%，而 kSARIA 僅在三個月後就已做出了有意義的貢獻。這些收購之所以能夠實現，要歸功於近 4.4 億美元的自由現金流。重要的是，我們的併購管道仍然活躍。除此之外，我們也向股東返還了2億多美元。

I am humbled by our team's efforts to drive these results. As friction or perform in every region and in niche powertrain. As an example, in the internal combustion engine segment, we grew 1% in a market that was down 10%. Our connector team in Nogales has operated for more than five years with a perfect safety record and achieved record growth and record profitability in 2024. And in Saudi, (inaudible) and team continue to drive near perfect on-time performance with unmatched service to our customers.

我對我們團隊為取得這些成果所付出的努力感到榮幸之至。作為摩擦或在每個區域和利基動力系統中發揮作用。例如，在內燃機領域，在市場下滑 10% 的情況下，我們卻實現了 1% 的成長。我們在諾加萊斯的連接器團隊已經運作了五年多，擁有完美的安全記錄，並在 2024 年實現了創紀錄的成長和創紀錄的獲利能力。在沙特，（聽不清楚）團隊繼續以近乎完美的準時表現為我們的客戶提供無與倫比的服務。

To sum it all up, we grew, we executed and We transformed shaping our portfolio.

總而言之，我們成長，我們執行，我們轉型，塑造了我們的投資組合。

With this performance in mind, let's turn to Slide 4 to discuss the differentiation that will continue to feed ITT's results. Our differentiation in Saudi Arabia has driven recurring wins in the region. For example, IP secured more than $30 million of orders on the Riyas project. Part of a $12 billion in investment to be the natural gas processing facility in (inaudible).

考慮到這一表現，讓我們轉到投影片 4 來討論將繼續推動 ITT 績效的差異化。我們在沙烏地阿拉伯的差異化推動了該地區的不斷勝利。例如，IP 在 Riyas 專案上獲得了超過 3000 萬美元的訂單。這是投資 120 億美元建造天然氣處理設施的一部分（聽不清楚）。

And in 2025, we secured additional awards on this very project. This win builds on earlier awards in the region, such as the Emirate project we previously talked about. Because of all of this growth, we continue investing in the region and expanding our manufacturing capabilities. Last November, I was very fortunate to be there, walk the ground and listened to [Hallett] and be energized by the local team sharing their vision for the new site expansion.

2025年，我們又以這個計畫獲得了更多獎項。此次獲獎是建立在我們之前在該地區獲得的獎項的基礎上的，例如我們之前談到的酋長國計畫。由於所有這些增長，我們繼續在該地區投資並擴大我們的製造能力。去年 11 月，我非常有幸在那裡走訪並聆聽 [Hallett] 的演講，並受到當地團隊分享他們對新站點擴建的願景的鼓舞。

On friction, the outperformance continues. Our global market share surpassed 30% in 2024 for the very first time. Friction is again poised to outperform thanks to another near record number of platform awards secured in 2024 on internal combustion engines, hybrids and electric vehicles alike.

在摩擦方面，其優異表現仍在持續。 2024年，我們的全球市佔率首次超過30%。由於 2024 年在內燃機、混合動力和電動車領域獲得的平台獎項數量再次接近創紀錄水平，Friction 預計將再次表現出色。

KONE Rail to considerable market share with over 35% orders growth and high teens revenue growth, an incredible outperformance for the second straight year. We expect this growth to continue with our recent validation on a new high-speed train platform capable of traveling 450 kilometers per hour.

通力軌道交通佔了相當大的市場份額，訂單量成長超過35%，營收成長率高達百分之十幾，連續第二年表現優異。隨著我們最近對時速 450 公里的新型高速列車平台的驗證，我們預計這種成長動能也將持續下去。

On defense, the rapid prototyping capabilities of our connectors business provides faster lead times to develop customized products for our defense customers. This drove awards on the Columbia class of Marine, the joint (inaudible) fighter, a radar survey system and qualification on the net Warrior program.

在國防方面，我們的連接器業務的快速成型能力提供了更快的交貨時間，為我們的國防客戶開發客製化產品。這為海軍陸戰隊的哥倫比亞級戰艦、聯合（聽不清楚）戰鬥機、雷達測量系統和網路勇士計畫的資格帶來了獎項。

Moving to differentiation through innovation. Let's discuss the embedded motor drive, truly a game changer. Today, $300 billion are spent annually on moving industrial fluids globally and 80% of the pumps and motors operate inefficiently, wasting energy. The EMD solved this problem and is the only industrial smart motor of this kind today. With this technology, our customer will be able to swap their existing motor with ITT's EMD and immediately see a cost reduction as the rotating equipment will consume less energy and produce less CO2.

透過創新走向差異化。讓我們來討論一下嵌入式馬達驅動器，這是一個真正的遊戲規則改變者。目前，全球每年在工業流體運輸上的花費高達 3000 億美元，而且 80%​​ 的泵浦和馬達運作效率低下，浪費能源。 EMD解決了這個難題，並且是當今唯一此類工業智慧馬達。利用這項技術，我們的客戶將能夠用 ITT 的 EMD 替換他們現有的電機，並立即看到成本的降低，因為旋轉設備將消耗更少的能源並產生更少的二氧化碳。

The EMD significantly expands IP's growth profile and addressable market. Dan and I can't wait to show it to you at our Capital Markets Day in May after we launch it commercially in Q2.

EMD 顯著擴展了 IP 的成長前景和潛在市場。我們在第二季將其商業化推出後，丹和我迫不及待地想在 5 月的資本市場日上向您展示它。

Now let me turn the call over to Emmanuel to review our Q4 results, close the book on 2024 and discuss our outlook for 2025.

現在，讓我將電話轉給 Emmanuel，讓他回顧我們的第四季業績，總結 2024 年的業績，並討論我們對 2025 年的展望。

Thank you, Luca, and good morning.

謝謝你，盧卡，早安。

We ended 2024 with a strong performance across the board in orders, revenue, margin, EPS and cash. Our teams delivered 6% organic revenue growth from higher volumes and price realization. IP grew 22% in pump projects and 7% in short cycle, while Svanehøj added 16 points to IP's total growth. Just to note, for the year, IP projects grew 19% organically after 31% in 2023.

2024 年結束時，我們在訂單、收入、利潤率、每股盈餘和現金等方面均取得了強勁的表現。我們的團隊透過更高的銷售量和價格實現了 6% 的有機收入成長。 IP 在泵浦專案中成長了 22%，在短週期專案中成長了 7%，而 Svanehøj 為 IP 的總成長貢獻了 16 個百分點。值得注意的是，今年 IP 專案有機成長率為 19%，而 2023 年則為 31%。

CCT grew 9%, thanks to strong defense and industrial connected deliveries, both of which were above 40% this quarter. While kSARIA contributed over 29 points to total growth, fully offsetting the Boeing work stoppage impact. In MT, KONE grew 12% on share gains and cloud conversion in real, while Friction OE outperformed global automotive production by 410 basis points.

CCT 成長 9%，得益於國防和工業相關交付的強勁成長，本季這兩項交付均超過 40%。而 kSARIA 為總成長貢獻了超過 29 個百分點，完全抵銷了波音停工的影響。在 MT，通力憑藉市場份額增長和雲端轉換實現實際增長 12%，而 Friction OE 的表現比全球汽車產量高出 410 個基點。

On profitability, operating income grew 16%, more than double the organic sales growth rate primarily driven by higher price, productivity and volume despite the loss of earnings from the Wolverine divestiture. MT margin exceeded 19% and with 220 basis points of margin expansion and a 120 basis point improvement sequentially to close out 2020. Notably, despite roughly $40 million less in revenue due to the Wolverine divestiture, MT was able to increase operating income. Once again, MT over delivered.

在獲利能力方面，儘管 Wolverine 資產剝離造成收益損失，但營業收入成長了 16%，是有機銷售額成長率的兩倍多，這主要得益於價格、生產力和銷量的提高。 MT 利潤率超過 19%，截至 2020 年末，利潤率擴大了 220 個基點，較上季提高了 120 個基點。值得注意的是，儘管由於 Wolverine 資產剝離導致收入減少約 4,000 萬美元，但 MT 仍能夠增加營業收入。 MT 再次超額完成了任務。

Moving to IP. The team drove 60 basis points of expansion to overcome 280 basis points of dilution from the Svanehøj acquisition. Legacy IP expanded margin 340 basis points, driven by higher volume leverage, more favorable price cost and continued sourcing and supply chain productivity.

轉向 IP。該團隊推動了 60 個基點的擴張，以克服因收購 Svanehøj 而造成的 280 個基點的稀釋。由於更高的銷售槓桿、更優惠的價格成本以及持續的採購和供應鏈生產力，Legacy IP 的利潤率擴大了 340 個基點。

Finally, in CCT, excluding temporary M&A dilution, CCT margin would be up 60 basis points, driven by higher pricing actions and volume. The price renegotiations in aerospace continue with more to come in 2025.

最後，在 CCT 中，不包括暫時的併購稀釋，受定價行動和交易量增加的推動，CCT 利潤率將上升 60 個基點。航空航太領域的價格重新談判仍在繼續，2025 年將有更多談判。

With the volume growth and price realization this quarter, we drove double digits earnings growth to $1.50 of EPS, overcoming roughly $0.07 of earnings loss from the Wolverine divestiture and $0.08 from higher interest expense related to M&A.

隨著本季銷售成長和價格實現，我們推動每股盈餘達到兩位數成長，達到 1.50 美元，彌補了 Wolverine 資產剝離造成的約 0.07 美元收益損失和與併購相關的更高利息支出造成的 0.08 美元收益損失。

Lastly, on free cash flow, our performance accelerated sequentially, thanks to the efforts of our team to reduce inventory and drive stronger elections as well as contributions from our acquisitions. This resulted in a 42% increase year over year and over 20% free cash flow for the quarter.

最後，在自由現金流方面，由於我們團隊努力減少庫存、推動更強有力的選舉以及收購帶來的貢獻，我們的業績連續加速。這使得本季的自由現金流年增 42% 並超過 20%。

Let's turn to the full year EPS bridge on slide 6. Here, you can see the main drivers of our performance, which are similar to Q4. Operational performance from volume growth, price cost and productivity compounded by accretion from our acquisitions allowed us to overcome headwinds from temporary amortization, the Wolverine divestiture and higher interest expense. Keep in mind that most of these impacts were not considered in our initial guidance for 2025.

讓我們來看看投影片 6 上的全年每股盈餘預測。在這裡，您可以看到我們業績的主要驅動因素，它們與第四季度類似。銷售成長、價格成本和生產力帶來的營運績效，加上我們透過收購獲得的成長，使我們能夠克服臨時攤銷、Wolverine 資產剝離和更高的利息支出所帶來的阻力。請記住，我們在 2025 年的初步指導中並未考慮到大多數這些影響。

We also continued to fund strategic investments for future growth, including our geopolymer brake pad formulation, our high-performance brake pad business and the embedded motor drive. We delivered a strong performance with 12% EPS growth that previews the value creation potential of ITT's portfolio.

我們也持續為未來成長提供策略性投資，包括我們的地質聚合物煞車片配方、我們的高性能煞車片業務和嵌入式馬達驅動器。我們取得了強勁的業績，每股盈餘成長了 12%，這預示著 ITT 產品組合的價值創造潛力。

With this in our rearview mirror, let's turn to Page 8 to discuss 2025. We entered 2025 with a robust backlog that is up 34% in total, fueled by our acquisitions and growth in legacy pumps and connectors. The large pump awards from 2023 and 2024 should start shipping in a meaningful fashion in 2025, while friction, rail and connectors should continue to outperform. We expect this will drive revenue to over $3.7 billion with organic revenue growth of 3% to 5% and the strongest growth expected in IP and CCT.

回顧過去，讓我們翻到第 8 頁討論 2025 年。進入 2025 年，我們擁有強勁的積壓訂單，總計成長了 34%，這得益於我們的收購以及傳統泵浦和連接器的成長。 2023 年和 2024 年的大型泵浦獎項應該會在 2025 年開始以有意義的方式出貨，而摩擦、鐵路和連接器應該會繼續表現出色。我們預計這將推動營收超過 37 億美元，有機收入成長 3% 至 5%，預計 IP 和 CCT 的成長最為強勁。

We expect that our ability to continually reduce costs to our growing revenue will drive further margin expansion of 90 basis points to 18.6% at the midpoint. Contributions from our acquisitions are expected to increase considerably in 2025 to roughly $0.20. This will be driven by (inaudible) growth on new fuel vessels due to a 26% order increase in 2024.

我們預計，我們不斷降低成本以增加收入的能力將推動利潤率進一步擴大 90 個基點，達到中間值的 18.6%。我們收購帶來的貢獻預計將在 2025 年大幅增加至約 0.20 美元。這將受到 2024 年訂單量增加 26% 導致的新燃料船 (聽不清楚) 成長的推動。

On kSARIA, the team continues to execute our plan with several large new orders expected in the first half of 2025 that will support our growth outlook. This results in EPS growth of 8% at the midpoint, even while absorbing an incremental $0.09 headwind from foreign currency given the stronger US dollar. Furthermore, if you exclude the roughly $0.17 of temporary intangible amortization, which will end by end of the year, EPS growth will be over 10%.

在 kSARIA 上，團隊繼續執行我們的計劃，預計 2025 年上半年將有幾筆大型新訂單，這將支持我們的成長前景。儘管由於美元走強而吸收了外幣帶來的 0.09 美元增量逆風，但這仍導致每股收益在中點增長 8%。此外，如果不包括將於今年年底結束的約 0.17 美元的臨時無形資產攤銷，每股收益將增長超過 10%。

Finally, on cash, we expect to generate free cash flow of roughly $475 million at the midpoint, amounting to a 12% to 13% free cash flow margin for the year.

最後，就現金而言，我們預計中期將產生約 4.75 億美元的自由現金流，相當於全年自由現金流利潤率為 12% 至 13%。

Let's turn to slide 9 to discuss our outlook in each business. Beginning with Connect and Control Technologies. Increased global spend on defense modernization platforms, coupled with a gradual Boeing ramp beginning in Q2 to drive strong demand in CCT, we expect kSARIA to add roughly 15 points of growth to the total. Industrial process, is expected to convert its record backlog of more than $900 million, powered by large project awards, which should generate mid-single-digit organic growth.

讓我們翻到第 9 張投影片來討論一下我們對每個業務的展望。從連接和控制技術開始。全球在國防現代化平台的支出增加，加上波音公司從第二季開始的逐步增產將推動 CCT 的強勁需求，我們預計 kSARIA 將為總量增加約 15 個點的成長。工業流程，預計將轉換其超過 9 億美元的創紀錄積壓訂單，受大型項目獎勵的推動，這將產生中等個位數的有機增長。

In Motion Technologies, we expect Friction to outperform global automotive production driven by share gains in all regions, while growth in the aftermarket is expected to be in the low single-digit range. Longer term, Friction's high-performance business will be another catalyst for profitable growth. On Rail, we expect mid- to high single-digit growth on strength of share gains in Europe and China, continued public investment mass transit in North America.

在運動技術方面，我們預期摩擦技術的表現將超過全球汽車生產，這得益於所有地區的份額成長，而售後市場的成長預計將處於個位數的低點。從長遠來看，Friction 的高性能業務將成為獲利成長的另一個催化劑。在鐵路方面，我們預計，由於歐洲和中國的市場份額成長以及北美公共交通的持續公共投資，鐵路將實現中高個位數成長。

Let's turn to slide 10 to review our EPS bridge for 2025. Once again, most of our earnings increase is expected to come from organic growth and margin expansion in our core business. This will drive 8% EPS growth for the year at the midpoint. Importantly, we're absorbing $0.30 from the loss of earnings from the Wolverine divestiture a higher effective tax rate and unfavorable FX.

讓我們翻到第 10 張投影片來回顧我們 2025 年的每股盈餘預測。再次重申，我們的大部分獲利成長預計將來自核心業務的有機成長和利潤率擴大。這將推動今年中期每股收益成長 8%。重要的是，我們將吸收因 Wolverine 資產剝離、更高的有效稅率和不利的外匯損失而產生的 0.30 美元的收益損失。

I'd like to briefly discuss the phasing of our 2025 outlook. EPS is expected to be flat to slightly up in Q1. We anticipate a revenue decline in the low single-digit range, driven mostly by MT due to the reduction in global vehicle production, while IP and CCT should be roughly flat.

我想簡單討論一下我們 2025 年展望的分階段進展。預計第一季每股收益將持平或略有上升。我們預計收入將下降個位數偏低，主要原因是全球汽車產量減少導致 MT，而 IP 和 CCT 應該大致持平。

Operating margin should expand 90 basis points to just shy of 18%. Excluding the loss of earnings from the Wolverine divestiture and higher interest, EPS would be up approximately 6% in Q1, more in line with our full year outlook, and we expect growth to ramp throughout the rest of 2025.

營業利益率應擴大 90 個基點至略低於 18%。不計 Wolverine 資產剝離造成的收益損失和更高的利息，第一季的每股收益將成長約 6%，與我們的全年預期更加一致，我們預計 2025 年剩餘時間內的成長率將加快。

Before we wrap up, I wanted to share our thinking on tariffs. Our 2025 guidance does not include any anticipated impacts from tariffs. We are working diligently with our teams and supply chain organization to evaluate different scenarios and are developing granular action plans. We're looking to mitigate any impact to commercial and operational actions.

在結束之前，我想分享我們對關稅的看法。我們的 2025 年指引不包括關稅預期的任何影響。我們正在與我們的團隊和供應鏈組織密切合作，評估不同的情況並制定詳細的行動計劃。我們正在尋求減輕對商業和營運活動的影響。

Let me turn the call back to Luca to wrap up.

讓我把電話轉回盧卡結束通話。

Thank you, Emmanuel. Before moving to Q&A, let me summarize the key points from an outstanding year. We accomplished a lot in 2024. We grew.

謝謝你，伊曼紐。在進入問答環節之前，讓我先總結一下這一年中精彩的要點。我們在 2024 年取得了許多成就。我們成長了。

We executed. We transformed. We grew orders and revenue brought by double digits. We executed expanding our margin and surpassing our long-term target two years ahead of plan. We transformed with two strategic acquisitions and divestiture shifting our portfolio to higher growth and higher-margin businesses.

我們執行了。我們轉型了。我們的訂單和收入都實現了兩位數的成長。我們提前兩年實現了利潤的擴大，並超越了長期目標。我們透過兩次策略性收購和資產剝離實現了轉型，將投資組合轉向成長更快、利潤率更高的業務。

Moving forward, the formula remains the same for ITT. Our value creation through organic growth and margin expansion is here to stay, and now we're compounding to add even greater value through M&A.

展望未來，ITT 的模式依然維持不變。我們透過有機成長和利潤率擴大所創造的價值將繼續存在，現在我們正在透過併購來創造更大的價值。

Finally, it is my pleasure to invite you to our next Capital Markets Day taking place on May 15 in New York City. A lot has happened since our last event in 2022. And importantly, there is much more to come. You will see our differentiation through execution, innovation and now M&A brought to life. In addition, you will miss some of the ITT-ers who differentiate us from the competition and who drive our results day in and day out.

最後，我很高興邀請您參加我們於 5 月 15 日在紐約舉行的下一屆資本市場日活動。自 2022 年我們舉辦上一次活動以來，發生了很多事情。重要的是，未來還會有更多的事情發生。您將看到我們透過執行、創新以及現在的併購實現的差異化。此外，您還會懷念一些使我們在競爭中脫穎而出並日復一日推動我們取得成果的 ITT 人。

I look forward to speaking with you throughout the year and seeing many of you in May or before.

我期待著全年與你們交談，並在五月或之前見到你們。

(Operator Instructions) Joe Ritchie, Goldman Sachs.

（操作員指示）高盛的喬·里奇。

Congratulations on another strong year. I guess maybe where I'll start is just the guidance for 2025. I know you guys historically have tended to guide fairly conservatively. But maybe, Emmanuel, if you can just kind of step me through how are we thinking about the cadence for this year from an earnings standpoint? And are there any things that we need to be aware of, particularly like in the first quarter, just that could potentially impact Q1 and maybe gets better as the year progresses?

恭喜您又度過了豐收的一年。我想也許我應該從 2025 年的指引開始。我知道你們歷來傾向相當保守的指引。但是，伊曼紐爾，你能否告訴我，從盈利的角度看，我們是如何考慮今年的節奏的？我們需要注意哪些事情，尤其是第一季的事情，這些事情可能會對第一季產生影響，並且隨著時間的推移可能會變得更好？

Yeah. So as I mentioned, Joe, the cadence is a little tilted towards the second half of the year. So we have an unusually soft Q1. And so let's think about a little bit what the puts and takes here. So we expect Q1 to be -- from an EPS standpoint, to be roughly flat to 2024. We have to keep in mind that the main impact here is the Wolverine divestiture, which results in less revenue and income, and that's about $0.06 of EPS.

是的。正如我所提到的，喬，節奏有點傾向於今年下半年。因此，我們的第一季表現異常疲軟。所以讓我們稍微思考一下這裡需要付出什麼和得到什麼。因此，從每股盈餘的角度來看，我們預計第一季的業績將與 2024 年基本持平。我們必須記住，這裡的主要影響是 Wolverine 的資產剝離，這導致收入和收益減少，約為每股收益 0.06 美元。

We also expect organic revenue declines of mainly 1% to 2%, driven by MT, which is expected to outperform original equipment production, but overall, will still decline due to lower auto demand. IP and CCT sales would be flat to slightly up. And so overall, Q1 will be -- in terms of sales would be the lowest quarter by quite a bit.

我們也預計有機收入將主要下降 1% 至 2%，這主要是受 MT 的影響，預計 MT 的表現將超過原始設備生產，但總體而言，由於汽車需求下降，收入仍將下降。 IP 和 CCT 銷售額將持平或略有上升。因此總體而言，就銷售額而言，第一季將是最低的季度。

However, all businesses are expected to expand margins. Excess CTC will be up 150 basis points, if it wasn't for the kSARIA margin dilution, which is around 400 basis points. We will be impacted by higher interest expense and this is due to the kSARIA acquisition that happened last September in 2024.

不過，所有企業的利潤率預計都會擴大。如果不是因為 kSARIA 利潤率稀釋（約 400 個基點），超額 CTC 將上漲 150 個基點。我們將受到更高的利息支出的影響，這是由於 2024 年 9 月發生的 kSARIA 收購。

And then in Q1, Svanehøj and kSARIA do not contribute meaningfully to EPS. This is due to the temporary intangible amortization, and that will disappear in Q2 for Svanehøj and in Q4 for kSARIA. So overall, we expect Q1 to still weak, but a nice recovery than in Q2 and Q3 and Q4 with continued margin expansion and also organic revenue growth.

然後在第一季度，Svanehøj 和 kSARIA 對 EPS 沒有有意義的貢獻。這是由於暫時無形資產攤銷造成的，對於 Svanehøj 來說，這一現象將在第二季度消失，對於 kSARIA 來說，這一現象將在第 4 季消失。因此總體而言，我們預計第一季仍然疲軟，但將比第二季、第三季和第四季有所復甦，利潤率將繼續擴大，有機收入也將成長。

Super helpful and detailed. And then maybe the longer-term question, and I'm sure we'll get a lot more at the Investor Day in May. Look, you guys have done a great job on the margin expansion piece, getting to your targets a couple of years in advance. The commentary around the price renegotiations on CCT is interesting. I'd be curious if you can maybe talk a little bit more about what's going on there and ultimately, the opportunity potentially within that segment.

非常有幫助而且詳細。然後也許是長期問題，我相信我們會在五月的投資者日上得到更多資訊。你看，你們在利潤擴張方面做得很好，提前幾年就達到目標了。有關 CCT 價格重新談判的評論很有趣。我很好奇您是否可以再多談談那裡發生的事情以及該領域內的潛在機會。

Sure. Joe, this is Luca. I think that price is definitely a good lever in CCT. It has been a good level in 2024 and we're going to see more of that also in 2025. So we talked about our -- some big contracts have been renegotiating right now and we are still in that process and the signs are positive. I would say the price/cost equation overall has been positive for the entire ITT in 2024, and it will be the same as well in 2025.

當然。喬，這是盧卡。我認為價格絕對是 CCT 的一個很好的槓桿。 2024 年的水準很好，2025 年我們還將看到更多這樣的情況。所以我們談到了——一些大合約目前正在重新談判，我們仍處於這一過程中，而且跡像是積極的。我想說，2024 年整個 ITT 的價格/成本方程式總體上是正數，2025 年也將如此。

Mike Halloran, Baird.

麥克·哈洛倫，貝爾德。

Could you just talk about what you're seeing from an order pattern on the IP side of things, both from the short cycle side as well as the project activity? Obviously, strong backlog coming into the year, how is that backlog feeling? I know you commented on robust short cycle there. What are you seeing kind of sequential dynamics and anything worth noting in some of the end markets?

您能否談談您從 IP 方面的訂單模式中看到的情況，包括從短週期方面以及專案活動方面？顯然，今年的積壓訂單量很大，積壓訂單的感覺如何？我知道您在那裡評論了強勁的短週期。您看到哪些連續動態以及在某些終端市場中有什麼值得注意的？

Thanks, Mike. Orders were good in Q4. So let's leave the acquisition on a side for a second. If we look on an organic perspective, the orders grew 12% in the quarter. Projects were up 25% and short cycle, Mike, was up 8%, 2% was price, 6% was volume. And particularly good in Q4 was service parts and valves. Now if we look at Q4, our weekly run rate of orders was the second highest on record. Q4 was actually the best ever. So Q4 has been really good on the short cycle.

謝謝，麥克。第四季的訂單情況良好。因此我們先暫時把收購放在一邊。如果我們從有機角度來看，本季訂單成長了 12%。專案增加了 25%，短週期增加了 8%，價格增加了 2%，數量增加了 6%。第四季尤其出色的是服務零件和閥門。現在，如果我們看一下第四季度，我們的每週訂單運行率是有史以來第二高的。 Q4 實際上是有史以來最好的。因此，從短週期來看，第四季表現非常好。

On a full year basis, our organic orders were up 5%. Projects were 13% up year over year. And this on a tough compare. Last year was a very good year and up 20%. Short cycle, like you asked, was 2% for the full year, 1% price and 1% volume. If you add to that, and that will be my comment on Svanehøj. Svanehøj had a book-to-bill of 1.3 for the full year. And their orders grew 26%. So a very good performance from another perspective on Svanehøj as well.

從全年來看，我們的有機訂單成長了 5%。項目數量較去年同期成長13%。這是一個艱難的比較。去年是非常好的一個年頭，成長了20%。正如您所問的，短週期是全年 2%、價格 1% 和數量 1%。如果您對此進行補充，那就是我對 Svanehøj 的評論。 Svanehøj 全年的訂單出貨比為 1.3。他們的訂單增加了26%。因此，從另一個角度來看，Svanehøj 的表現也非常出色。

And I suppose, how are you expecting that to roll through to this year from a trend perspective? I mean is that front log of opportunities still really strong. And what are the customers are saying? And so maybe just kind of roll through the momentum and how you think that plays out?

我想，從趨勢角度來看，您預計今年的情況會如何？我的意思是，前期的機會仍然非常強大。那麼顧客們都說了什麼呢？因此也許只是沿著這個勢頭發展，您認為結果會如何？

So the audio is -- so I hope I got the question. You tell me if I'm not answering your question, Mike. So in terms of the funnel and the opportunities, it stays rich. I have to say with the book-to-bill considerably higher with this performing in orders. Our funnel came down a little bit.

音訊是——我希望我理解了你的問題。如果我沒有回答你的問題，你告訴我，麥克。因此，從管道和機會方面來看，它仍然很豐富。我不得不說，隨著訂單量的增加，訂單出貨比明顯增加。我們的漏斗下降了一點。

At the end of January, it was probably down 8% or 10% year-over-year, but it's still very high. And good opportunities are across different regions, particularly when it comes to the Middle East, the (inaudible) in Latin America is even higher than last year. And of course, there are customers talking about further investment because also some changes that are happening with the new administration.

1 月底，它可能比去年同期下降了 8% 或 10%，但仍然很高。不同地區都有良好的機遇，特別是中東和拉丁美洲的機會甚至比去年更高。當然，也有客戶談論進一步投資，因為新政府正在發生一些變化。

Jeff Hammond, KeyBanc Capital Markets Inc.

哈蒙德（Jeff Hammond），KeyBanc Capital Markets Inc.

I just wanted to understand the temporary intangible amortization. Because last quarter, you called out $0.21 going away, maybe that is, but you had a footnote with $0.17 intangible. So just trying to understand the delta because, I guess, I look at your (inaudible) this year plus that $0.21 is kind of your starting point, and that would imply just kind of limited earnings growth in the guide?

我只是想了解暫時無形資產攤銷。因為上個季度，您宣布 0.21 美元將會消失，也許就是這樣，但是您在腳註中有一個 0.17 美元的無形資產。所以只是想了解增量，因為，我想，我看了你今年的（聽不清楚）加上 0.21 美元是你的起點，這是否意味著指南中的盈利增長有限？

No. So in 2024, we had $0.17 of intangible amortization temporary. And we expect that number to be roughly the same in 2025, around $0.16. So we don't really get any benefit from intangible amortization disappearing. We will start getting a benefit for Svanehøj in Q2, but that is compensated by the kSARIA intangibles that will run -- the amortization will run until end of Q4.

不。所以在 2024 年，我們有 0.17 美元的臨時無形資產攤提。我們預計到 2025 年該數字將大致相同，約為 0.16 美元。因此，無形攤銷的消失其實並沒有為我們帶來任何好處。我們將在第二季開始獲得 Svanehøj 的收益，但這將由 kSARIA 無形資產補償——攤銷將持續到第四季末。

Okay. Maybe give us a sense of core -- these acquisition -- these moving pieces as it makes it messy, but core incremental margins in the fourth quarter for IP CCT, it looks like underlying margins were really good, but again, masked by the deal. And then just on '25, I think the midpoint is 90 basis points of margin expansion. Just I don't know if order of magnitude where you see the segment's lining up. Again, I know there's noise segment by segment, given the deals.

好的。也許能讓我們了解核心——這些收購——這些活動的部分，因為它讓情況變得混亂，但對於 IP CCT 來說，第四季度的核心增量利潤率看起來好像基礎利潤率真的很好，但同樣被交易掩蓋了。然後就在25日，我認為中間點是利潤率擴大90個基點。只是我不知道您看到片段排列的數量級。再說了，我知道考慮到交易情況，各個部分之間都會存在噪音。

Yes. So on the incrementals in IP, we had a really good performance 64% in Q4 and then 45% for the full year. That's excluding the impact of acquisitions. And for CCT, for the full year, we were around 20%. And then if we look at 2025, we expect really good incrementals to continue at around 60% -- between 50% and 60%, and also CCT pretty good incrementals as well. In Motion Technologies, obviously, the incrementals don't really work because we are increasing the OI and reducing the revenue. And that's why Motion Technologies is expected to be at 20% in 2025.

是的。因此，就 IP 的增量而言，我們在第四季度的表現非常好，達到了 64%，全年增長了 45%。這還不包括收購的影響。就 CCT 而言，全年成長率約為 20%。然後，如果我們展望 2025 年，我們預計真正良好的增量將繼續保持在 60% 左右 - 50% 到 60% 之間，而且 CCT 的增量也相當不錯。在 Motion Technologies，顯然增量策略並不奏效，因為我們增加了 OI 卻減少了收入。這就是為什麼 Motion Technologies 預計在 2025 年達到 20% 的原因。

Scott Davis, Melius Research.

戴維斯 (Scott Davis)，Melius Research。

Congrats on a great year. Slide 18, you guys just referenced the M&A muscle, and I think you said it a couple of times in the prepared remarks, but what does that really mean functionally? Is that diligence and integration? Is it more that you beefed up the diligence side? Kind of walk us through the changes you've made at least and what that really -- what that means to you guys?

恭喜您度過了美好的一年。投影片 18，你們剛剛提到了併購實力，我認為你們在準備好的發言中提到過幾次，但這在功能上到底意味著什麼？這就是勤奮和融入嗎？您是否更加加強了勤奮方面？請至少向我們介紹一下你們所做的改變以及這些改變對您來說意味著什麼？

Okay. Scott, I think that when you see it in the results of 2024, right? And you see in the capital deployment that has happened in the last couple -- in the last five years, where roughly $1.2 billion is through M&A. Now when you look at right now what it means there is a lot of cultivation. So there is a lot of cultivation going on between the businesses and also the enterprise with our target.

好的。斯科特，我認為當你在 2024 年的結果中看到它時，對嗎？您可以看到，在過去的幾年中，也就是過去五年中，資本配置中大約有 12 億美元是透過併購獲得的。現在，當你看看現在這意味著什麼時，你會發現有很多的耕耘。因此，我們與目標企業之間以及企業之間都需要進行大量的培養。

So if you think about both Svanehøj and kSARIA and Habonim that are the last three acquisitions. Those were cultivated. And in a couple of those, we were able to get to an exclusive deal.

因此，如果您考慮 Svanehøj、kSARIA 和 Habonim，它們是最後三次收購。那些是經過栽培的。在其中幾項交易中，我們還達成了獨家協議。

Now I'm not saying that this is going to happen always -- but today, we are busy in cultivating and developing the relationship as well as some due diligence in some of the deals. Obviously, you hear only the one that we are executing. But in the last few months, also, we walked away from some opportunities where we had the due diligence.

我並不是說這種情況會一直發生——但今天我們正忙於培養和發展關係以及對一些交易進行盡職調查。顯然，您只聽到我們正在執行的那個。但在過去的幾個月裡，我們也放棄了一些本來應該盡職盡責的機會。

Damian Karas, UBS.

瑞銀的 Damian Karas。

So I wanted to ask you about your guidance for Motion Technologies kind of up low single digits for the segment. Could you maybe spell out a little bit more what you're baking in, in terms of global auto production? How much you're expecting Friction to outperform as well as KONE and the Rails business?

所以我想問一下您對 Motion Technologies 部門成長的預期，大概是低個位數成長。您能否更詳細地說明一下，就全球汽車生產而言，您考慮的具體內容是什麼？您預期 Friction 的表現會比 KONE 和 Rails 業務好多少？

Sure. So when you look at 2024, obviously, auto production had a tough year in 2024. North America and Europe were down China showed the residence went up. So when it comes to -- and the picture deteriorated in the second half compared to the first half, Q4 probably being the worst.

當然。因此，當你展望 2024 年時，顯然，汽車生產在 2024 年經歷了艱難的一年。北美和歐洲的汽車產量下降，而中國的汽車產量上升。所以說到——與上半年相比，下半年的情況惡化，第四季可能是最糟糕的。

So when it comes to 2025, on the positive side is we see that the inventories are down worldwide as well as in Europe and in China, but we project the production to come down to roughly 89 million vehicles produced.

因此，展望 2025 年，積極的一面是，我們看到全球、歐洲和中國的庫存都在下降，但我們預計產量將下降至約 8,900 萬輛。

So it's a little bit of a decline worldwide. And we have China flat our assumption and Europe and North America down with Europe probably being worse. When it comes to the -- we continue to think that we will outperform the market, and we're thinking roughly 400 basis points of outperformance in the market. And this is for auto. When it comes to Rail, we have a good backlog, and we had two years of outperformance in Rail with KONE and (inaudible).

因此，全球範圍內的下降趨勢都有所減弱。我們的預測與中國持平，而歐洲和北美的情況則有所下降，歐洲的情況可能更糟。說到——我們仍然認為我們的表現將優於市場，我們預計我們的表現將優於市場約 400 個基點。這是用於汽車的。說到鐵路，我們有大量積壓訂單，並且與通力合作，我們在鐵路領域有兩年的優異表現（聽不清楚）。

So we think that we will continue to outperform that as well.

因此我們認為我們也將繼續表現出色。

And if I can slip one point on profitability. So as I mentioned, we expect Motion Technologies to be at 20% in 2025. And a lot of it is going to be driven by productivity. Motion Technologies is an engine for productivity, and we expect around 150 to 200 basis points of margin impact coming from productivity.

如果我可以在獲利能力方面提出一點看法的話。正如我所提到的，我們預計運動技術的份額到 2025 年將達到 20%。其中很大一部分將由生產力驅動。運動技術是生產力的引擎，我們預期生產力將對利潤率產生約 150 到 200 個基點的影響。

We will also be -- we will have a positive impact on price because we continue to be able to offset the cost inflation that we received in '22 and '23 by not giving it back entirely in 2024 and in 2025. So we are very attentive to this because it's important for us, as we said many times, to overall over several years to recover the entire cost inflation that we suffered from starting in '22.

我們也將對價格產生積極影響，因為我們能夠繼續抵消我們在 2022 年和 2023 年收到的成本通膨，而不會在 2024 年和 2025 年將其完全返還。因此，我們非常關注這一點，因為對我們來說，正如我們多次說過的那樣，總體而言，在幾年內收回我們從 2022 年開始遭受的全部成本通膨非常重要。

That's very helpful. And sticking on the Motion Technologies business, could you possibly give us an update on how Friction is doing in the high-performance market? Any trends that you're seeing there? As well as are there any possible strategic changes this year? I know in the past, you've talked about exploring, maybe opening up into some of the aftermarkets in Asia, China specifically, or maybe moving a little bit into the light vehicle trucking side of the Friction market. We appreciate any perspective on that.

這非常有幫助。繼續談論運動技術業務，您能否向我們介紹一下 Friction 在高性能市場的表現？您看到什麼趨勢了嗎？以及今年可能會出現哪些策略變化？我知道您過去曾談到探索，或許可以開拓亞洲、特別是中國的一些售後市場，又或許可以稍微涉足摩擦市場的輕型車輛運輸領域。我們感謝對此的任何觀點。

Damian, so let me start -- address the second question first. So as of today, no, we keep on exploring and we keep on talking strategically, but there are no strong action put in place that will change the strategic direction of Motion Technology infliction. When it comes to the high performance, the project is progressing well.

達米安，首先讓我來回答第二個問題。所以截至今天，我們不會在繼續探索，也不會繼續進行策略性討論，但是還沒有採取強有力的行動來改變運動技術所施加的戰略方向。當談到高性能時，該專案進展順利。

As a matter of fact, two weeks ago, Daniel and the team send me a video of all the automation in actions in the plant and the photo of the first brake pad for our customers being produced. So we are ramping up production. We will be able to launch the program, the platform that we're supposed to launch in Q1 and in Q2 perfectly on time.

事實上，兩週前，丹尼爾和他的團隊向我發送了工廠內所有自動化運行的視頻，以及正在為客戶生產的第一塊煞車片的照片。因此我們正在提高產量。我們將能夠準時推出該計劃和我們應該在第一季和第二季推出的平台。

And then we also took our Board of Directors there in October to monitor -- to witness the investment that they authorize and to monitor the progress and the level of automation that we have on the plan. So very good progress.

然後，我們也在十月帶領董事會到那裡進行監督——見證他們授權的投資，並監督我們計劃的進展和自動化水平。進展非常好。

Now what you will see in 2025, we are ramping up these programs. We are winning what we had in the plan. So the business case stands and it probably is also a little bit better. You will not necessarily see a lot in 2025 because, of course, we are launching you will start seeing more sizable impact in '26 and '27. But remember, you will see probably more on the profitability side than on the growth side because of the business that high performance is.

現在您將在 2025 年看到，我們正在加強這些計劃。我們正在實現計劃中的一切。因此，商業案例是成立的，而且可能會更好一些。你不一定會在 2025 年看到很多變化，因為當然，我們正在推出，你會在 26 年和 27 年看到更顯著的影響。但請記住，由於高績效的業務，您可能更多地看到的是盈利能力方面而不是成長方面。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），斯蒂費爾（Stifel）。

I guess I'll start on the tariff side of this because you guys have some fairly material operations in Mexico. So obviously, there aren't any tariffs yet, but there may be. So a couple of questions around those. Firstly, I would imagine the Motion Technologies business, the business in Mexico primarily sells to OEMs in Mexico. So any tariffs on those brake pads would actually be on the OEM rather than on you. Is that the correct way to think about the -- at least the brake pad business?

我想我將從關稅方面開始談，因為你們在墨西哥有一些相當重要的業務。顯然，目前還沒有任何關稅，但可能會有。圍繞著這些問題，我有幾個問題。首先，我認為 Motion Technologies 業務，其墨西哥業務主要向墨西哥的 OEM 銷售。因此，對這些煞車片徵收的任何關稅實際上都是由 OEM 承擔，而不是由您承擔。這是思考煞車片業務的正確方式嗎？

Okay. So Nathan, you are on the right track there. In terms of -- you really need to look at case by case. So if you take specifically our (inaudible) plant in Mexico, you really need to be surgical and super granular. Let me give you an example. If you take one platform, where we are on the front and the rear, the front axle brake pad that gets delivered to a Tier 1 in Mexico. So that's -- it's not going to be impacted by the tariffs.

好的。因此，Nathan，你的思路是對的。就這一點而言——你確實需要具體問題具體分析。因此，如果您特別注意我們在墨西哥的（聽不清楚）工廠，您確實需要進行精細化和超精細化操作。讓我給你舉個例子。如果你採用一個平台，我們位於前部和後部，前軸煞車片將運送到墨西哥的一級供應商。所以——它不會受到關稅的影響。

Now if you look at the rear axle. The rear axle brake pad comes to the US to a Tier 1 plant in the US. But then after it has been assembled, but the majority of it goes back to Mexico to the OEM assembly plant where they assemble the vehicle and a small portion stays in the US. So you really need to go -- to be surgical, go contract by contract, platform by platform, front-rear axle and even within the relaxes a example, you have some split. So you really need to do this work.

現在如果你看一下後軸。後軸煞車片運往美國的一級工廠。但在組裝完成後，大部分零件都會返回墨西哥的 OEM 組裝廠進行車輛組裝，而一小部分零件則留在美國。所以你真的需要去——進行外科手術，逐個合約、逐個平台、前後軸進行檢查，甚至在放鬆的例子中，你也會有一些分裂。所以你確實需要做這項工作。

And what I can tell you that our business, our supply chain leader, are already working on this front, and we have our action plans to be ready to be executed. And so -- but that's the case for Motion Technologies.

我可以告訴你們，我們的業務、我們的供應鏈負責人已經在這方面開展工作，並且我們已經準備好執行行動計畫。就是這樣——但這就是 Motion Technologies 的情況。

Well, let me ask it this way. You guys obviously had some issues with auto OEMs passing through inflation during COVID and are still recovering that now. But you have commented that some of those contracts have been changed so that inflation passes through on a bit more of a real-time basis to the OEMs.

嗯，那我這樣問吧。你們顯然在汽車原始設備製造商在 COVID 期間經歷通貨膨脹時遇到了一些問題，現在仍在恢復中。但您評論說，其中一些合約已經發生了變化，以便通貨膨脹能夠更即時地轉嫁給 OEM。

Would that be the case if you saw a tariff? Or would you need to pursue pricing? And then I guess, saying as part of my follow-up question, I'll ask you to talk about the potential impact of tariffs on the CCT business as well.

如果您看到關稅的話，情況會是這樣嗎？還是您需要追求定價？然後我想，作為我後續問題的一部分，我會請您談談關稅對 CCT 業務的潛在影響。

Sure. So when it comes to the OEMs and Tier 1s, you really need to look at it case by case, Nathan. And so we are working both and we have actions here, both on the operational side as well as the commercial side, and we've already started talking to our customers on that front.

當然。因此，當談到 OEM 和 Tier 1 時，你確實需要逐案研究，Nathan。因此，我們正在進行兩項工作，並採取了行動，包括營運方面和商業方面，我們已經開始就這方面與客戶進行溝通。

Yes. And then, Nathan, if we talk about CCT, so you know that we have a large footprint in Nogales with our (inaudible) plant there. And this is -- and Nogales is one of our best performing plants. You heard earlier that this is a plan that had five years without any safety incidents and achieved a record profitability and growth in Q4. So we'll need to address the eventual tariff impacts both commercially that means through price and also operationally by driving more productivity.

是的。然後，內森，如果我們談論 CCT，那麼你知道我們在諾加萊斯擁有很大的影響力，我們的（聽不清楚）工廠就在那裡。這是－諾加萊斯是我們表現最好的工廠之一。您之前聽說，該計劃五年來沒有發生任何安全事故，並且在第四季度實現了創紀錄的盈利和增長。因此，我們需要從商業角度（透過價格）和營運角度（透過提高生產力）來應對最終的關稅影響。

So I think that in CCT, one thing that is important to note is that, similar to IP, there is a lot of the business that goes through distribution. And so for those customers, we've already started sending letters to inform them of the situation. So that would be pretty straightforward.

因此我認為，在 CCT 中，需要注意的一點是，與 IP 類似，許多業務都是透過分銷進行的。因此，對於那些客戶，我們已經開始發送信函告知他們情況。所以會非常簡單。

The other piece is we have defense contracts also and we'll need to talk it with our customers. So I would say also here a very complex subject, and we are obviously driving a lot of the actions right now in order to be ready when tariffs take effect.

另一件事是我們還有國防合同，我們需要與客戶溝通。所以我想說，這是一個非常複雜的問題，我們顯然正在採取很多行動，以便在關稅生效時做好準備。

And if I may add, Nathan, in your note, you were asking also about differences with the competitors, right? As a matter of fact, when you look at the CCT and the connector business, and you move across the board that you will see the footprint -- the connector footprint of ITT for sure, as you said, of many of our competitors, too. So it's an industry-wide issue that need to be tackled.

而且，如果可以的話，內森，在您的筆記中，您還詢問了與競爭對手之間的差異，對嗎？事實上，當您查看 CCT 和連接器業務並全面了解時，您會看到 ITT 的連接器足跡，正如您所說，也包括我們許多競爭對手的足跡。所以這是一個需要解決的全行業問題。

Joe Giordano, TD Cowen.

喬·吉奧達諾（Joe Giordano），TD Cowen。

Just going back to the IP side. When you think about your guidance mid-single digits, it feels fairly conservative just given the level of orders that you've won. I'm just curious how -- when you build that out, is it -- are you kind of layering in potential elongation of project time lines due to like geopolitical type stuff? Just curious how you came up with that? It just feels like maybe there's upside to that number, where the orders are?

回到 IP 方面。當您想到您的指導價格在中等個位數時，考慮到您贏得的訂單水平，這感覺相當保守。我只是很好奇——當您構建它時——您是否會因為像地緣政治之類的原因而延長專案時間表？只是好奇您是怎麼想到這個的？感覺這個數字可能還有上升空間，訂單在哪裡？

Yes. So when you think about the sales guidance for IP, I mean, we are in the mid-single digits. So you're talking 5% to 6%, which is really strong in addition to the 8% we grew in 2024. So I just want to set the record here because I think those are pretty strong numbers. And definitely, the market is not growing by those percentages.

是的。因此，當您考慮 IP 的銷售指導時，我的意思是，我們處於中等個位數。所以你說的是 5% 到 6%，除了我們在 2024 年成長 8% 之外，這確實很強勁。所以我只是想在這裡創下紀錄，因為我認為這些都是相當強勁的數字。但可以肯定的是，市場並沒有按照這些百分比成長。

I think one thing to keep in mind is that you're right. Our orders have been up and our project orders have been up. But keep in mind that a project takes around 12 to 18 months before it converts. And those are for like the small- to medium-sized projects.

我認為要記住的一件事是你是對的。我們的訂單增加了，項目訂單也增加了。但請記住，一個項目需要大約 12 到 18 個月才能完成轉換。這些適用於小型到中型專案。

If you talk about some of those (inaudible) projects that we got, it's more like 24 months. So we will start seeing some of those projects convert in 2025, but it will be towards the latter part of the year. And as a result, we won't get as much growth as the level of orders could imply.

如果您談論我們得到的一些（聽不清楚）項目，它更像是 24 個月。因此，我們將在 2025 年開始看到其中一些項目的轉變，但這將是在下半年。因此，我們的成長幅度不會像訂單水準所暗示的那麼大。

And if I may build on what Emmanuel said, Joe, is that what -- you may remember a couple of years ago, the -- our backlog was made of 60% offshore cycle and 40% of projects. If you look at today, our backlog is 57% project and 43% offshore cycle. So has been shifting. So this is one point, which makes the improvement in terms of the profitability of IP even more outstanding because the projects are generally not as profitable as the short cycle.

喬，如果我可以延續伊曼紐爾所說的話，那就是——你可能還記得幾年前——我們的積壓工作由 60% 的離岸週期和 40% 的項目組成。如果你看看今天，我們的積壓訂單中有 57% 是項目，43% 是離岸週期。因此一直在轉變。所以這是一點，這使得IP獲利能力的提升更加突出，因為專案一般不如短週期的獲利能力強。

Okay. Yes, that's all fair. I'm still probably going to take the over on your growth there, but I appreciate the comments. Luca, just given what's going on politically now, does it change -- you've done so well with some of these international deals. Does it change your strategy on acquiring businesses that are based outside the US, just given what's going on with tariffs and all those -- all the rhetoric there?

好的。是的，這一切都很公平。我可能仍會關注你的成長，但我很感謝你的評論。盧卡，考慮到現在的政治形勢，情況會改變嗎——你們在一些國際交易中表現得非常好。考慮到目前關稅和其他相關言論的進展，你們收購美國以外企業的策略是否會改變？

Well, if you look at the last three acquisitions that we have made, they've been very successful, and they will be successful in the foreseeable future also with the geopolitical situation that we have. Now think about Svanehøj is a global business, absolutely, but it plays an incredible role in the energy transition. So we're talking about what the new administration is doing with LNG, that plays in our field. What is happening with LPG, that plays in our field. So Svanehøj is a great success.

嗯，如果你看看我們最近進行的三次收購，它們都非常成功，而且考慮到我們目前的地緣政治形勢，它們在可預見的未來也將繼續取得成功。現在想想 Svanehøj 是一家全球性企業，當然，但它在能源轉型中發揮著不可思議的作用。所以，我們正在討論新政府對液化天然氣採取的措施，這對我們的領域至關重要。液化石油氣 (LPG) 的情況如何，這對我們的領域有影響。因此，Svanehøj 取得了巨大的成功。

If you look at kSARIA, kSARIA is the connectors, we focus particularly on the air and defense. This automatically is in -- mainly in North America, so this is good. The only thing that I would say we might have been impacted geopolitically with happening because it's our valves business, great global business and with our factory in Israel. So now the team has been incredibly resilient. The results have been good even with extra cost that we put in the business just to protect our people.

如果你看一下 kSARIA，kSARIA 是連接器，我們特別關注空中和防禦。這自然而然地主要發生在北美，所以這是好事。我唯一想說的是，我們可能受到地緣政治的影響，因為這是我們的閥門業務，巨大的全球業務，而且我們在以色列有工廠。所以現在這支球隊已經展現出令人難以置信的韌性。即使我們為了保護員工而投入了額外的成本，但結果仍然很好。

Now -- so our focus on flow, on connectors, when it comes to connectors, mainly aero and defense, I think is not really changing. And on top, I would say bear in mind that our strategy is always to be in the region for the region, and therefore, trying to reduce some of the challenges that we could have.

現在 - 所以我們對流程、連接器的關注，當談到連接器時，主要是航空和防禦，我認為並沒有真正改變。最重要的是，我想說請記住我們的策略始終是在該地區為該地區服務，因此，我們試圖減少我們可能面臨的一些挑戰。

I think about also the divestiture on the other side, I would say that now we are in a better position than we were in 2018 regarding tariffs because we divested Wolverine, which was a business that was most impacted by it.

我還考慮了另一方的資產剝離，我想說，現在我們在關稅方面的狀況比 2018 年要好，因為我們剝離了受關稅影響最大的業務 Wolverine。

Brad Hewitt, Wolfe Research.

布拉德休伊特（Brad Hewitt），沃爾夫研究公司。

So maybe sticking with IP, just curious within the mid-single-digit organic growth outlook there for 2025 and how does that break down between projects and short cycle? And then from a margin perspective, it looks like you're implying about 100 basis points of margin expansion ex Svanehøj. So just curious if you could kind of break down the drivers of that 100 basis points kind of on the left IP business there?

因此，也許堅持使用 IP，只是好奇 2025 年的中等個位數有機成長前景，以及它在專案和短週期之間如何分解？然後從利潤率的角度來看，看起來你暗示了利潤率擴大約 100 個基點（Svanehøj 除外）。所以我很好奇，您是否可以分解左側 IP 業務中這 100 個基點的驅動因素？

So let me address the improvement in terms of margin in IP. If you look at -- we expect our legacy business to continue to improve the margin, absolutely right. And this is even more outstanding you think that project will be -- will play a bigger role. Now some of it will come by -- with price. We will have a price cost equation that is going to be positive.

因此，讓我來談談 IP 利潤方面的改善。如果你看一下——我們預計我們的傳統業務將繼續提高利潤率，絕對正確。您認為這個項目將會發揮更大的作用，這甚至更加出色。現在，其中一些將會以價格的形式出現。我們將有一個正值的價格成本方程式。

Some of it will be on the supply chain. I think there is a lot of work that we can do on the purchasing side to gain profitability on that front. And then there is also a lot on the productivity side in our operations. I was in Seneca Falls together with (inaudible) and with [Biotech].

其中一些將出現在供應鏈上。我認為我們可以在採購方面做很多工作來獲得利潤。我們的營運在生產力方面也有很多進步。我和 (聽不清楚) 以及 [Biotech] 一起在塞內卡福爾斯。

And we know that we have a productivity in the way that we can bring home in the way that we run our machine. And I would say that is on a legacy point of view. And then we also have an improvement with the acquisition.

我們知道，我們可以透過運行機器的方式來提高生產力。我認為這是從歷史遺留的角度來看的。我們在收購方面也取得了進展。

Yes. So a few things to keep in mind. So you're right, Brad, the margin is expected to -- in IP is expected to increase by a little bit more than 100 basis points. That is including this Svanehøj dilution. But given the fact that Svanehøj started mid-January, that dilution is pretty low, right? So we expect strong -- as Luca was saying, strong volumes, strong price and very positive price cost.

是的。有幾件事要記住。所以你是對的，布拉德，預計 IP 的利潤率將增加 100 個基點多一點。這包括 Svanehøj 稀釋。但考慮到 Svanehøj 在一月中旬開始比賽，這種稀釋度相當低，對嗎？因此我們預計——正如盧卡所說的那樣，銷量強勁，價格強勁，價格成本非常積極。

Now if you think about Svanehøj as it compares to 2024, we're going to continue to see margin expansion and super strong growth, right? We're expecting Svanehøj to grow in the double digits from a revenue standpoint and EBITDA to also expand and we're going to be closer to the 20% mark, a little bit below the 20% mark. So we're doing well. The team is performing well and we're making sure that we -- as ITT, we can add value to their business model.

現在，如果您將 Svanehøj 與 2024 年進行比較，我們將繼續看到利潤率擴大和超強勁增長，對嗎？我們預計 Svanehøj 的營收將達到兩位數成長，EBITDA 也將擴大，我們將更接近 20% 的目標，略低於 20% 的目標。因此我們做得很好。團隊表現良好，我們確保—作為 IT​​T，我們可以為他們的商業模式增值。

Okay. That's helpful. Appreciate that. And then maybe as we think about CCT margins it sounds like margins for 2025 ex kSARIA should be around 20.5%. So just trying to think about as the kSARIA amortization winds down a year do you still think the 22% margin target in 2026 could be in play for CCT?

好的。這很有幫助。非常感謝。然後，當我們考慮 CCT 利潤率時，聽起來 2025 年（不包括 kSARIA）的利潤率應該在 20.5% 左右。所以，試想想，隨著 kSARIA 攤銷一年後結束，您是否仍然認為 2026 年 22% 的利潤率目標對 CCT 有用？

That's correct. You nailed it. 2025 without kSARIA will be above 20% for the full year. kSARIA will be around 300 basis points of dilution impact. And so that sets us well given the fact that we'll be between 20% and 21%, probably closer to 21%. That sets us well for us achieving. So that's 22% margin target in 2025, excluding kSARIA.

沒錯。你成功了。 2025年（不含kSARIA）全年成長率將超過20%。 kSARIA 將產生約 300 個基點的稀釋影響。考慮到我們的比率將在 20% 至 21% 之間，可能更接近 21%，這對我們來說是有利的。這為我們取得成就奠定了基礎。因此，不包括 kSARIA，2025 年的利潤率目標為 22%。

Vlad Bystricky, Citi Group.

花旗集團的 Vlad Bystricky。

Thanks for squeezing me in here. So just following up and digging in on some of the questions around backlog and visibility. I guess just going into the year with $1.6 billion of backlog, can you give any color on how you're thinking about how much of that converts actually within the year versus the portion that might be longer dated tied to some of those longer projects?

謝謝你擠我來這裡。因此，我們只是跟進並深入探討有關積壓和可見性的一些問題。我想，今年的積壓訂單量為 16 億美元，您能否說明一下，您認為其中有多少可以在一年內實際轉換，以及有多少部分可能與一些較長的項目掛鉤，但期限較長？

Vlad, now I think that the order performance has been fantastic. You see it in the book-to-bill of Svanehøj. You see it in the legacy business of IP. You see it with KONE and Rail that orders that went up 37%. And now when you look at all these businesses, they tend to be more long term. Think about in Rail, you win an award, you win a platform and you might win that platform for the next 20 years.

弗拉德，現在我認為訂單表現非常出色。您可以在 Svanehøj 的帳簿上看到它。您可以在 IP 傳統業務中看到這一點。您可以看到通力和 Rail 的訂單增加了 37%。現在當你審視所有這些業務時，它們往往更注重長期目標。想想在鐵路行業，你贏得了一個獎項，你贏得了一個平台，你可能會在未來 20 年內贏得這個平台。

We talked about the product backlog in IP. Two years ago, 60% was short cycle and 40 projects. Now it's the reverse. Almost 60% is projects and 40% short cycle. And those projects in IP tend to have an execution of two to three years.

我們討論了 IP 中的產品積壓。兩年前，60%是短週期，40個項目。現在情況正好相反。幾乎60％是項目，40％是短週期。而這些 IP 專案的執行週期通常為兩到三年。

In the prepared marks when we talk about Riyas project or the (inaudible) project, those projects are a project that will last two years. And some also of the green project that we won for with (inaudible) carbon capture. Those are projects that have lasted two, three years, and we are going to close in 2025. Now another data point, I will say when we look at IP, probably today, our sales coverage is above 40% for 2025.

在準備好的標記中，當我們談論 Riyas 項目或（聽不清楚）項目時，這些項目將持續兩年。還有一些我們透過（聽不清楚）碳捕獲贏得的綠色項目。這些項目已經持續了兩三年，我們將在 2025 年完成。現在我要說的是另一個數據點，當我們查看 IP 時，可能今天，我們的 2025 年銷售覆蓋率將超過 40％。

That was helpful color. I guess just one last follow-up for me. Just on the CCT mid-single-digit organic growth, I know you mentioned in the slides Boeing expected ramp beginning in 2Q. I guess, can you talk about how material that Boeing ramp is to your outlook and how you're thinking about or how we should think about any potential risks to that growth if there are operational challenges there linger more than what's baked into your outlook?

那是有用的顏色。我想這對我來說只是最後一次跟進。就 CCT 中位數有機成長而言，我知道您在幻燈片中提到波音預計從第二季開始成長。我想，您能否談談波音公司的產能提升對您的前景有多重要，以及您如何看待或我們應該如何看待這種增長面臨的任何潛在風險，如果運營方面的挑戰比您前景中所考慮的更為嚴重？

Yeah. So if you look at our aerospace expected revenue, we're still expecting this to be down in the low single digits in 2025 compared to '24. So I think that with what we know that has been communicated by the customer, we think that our forecast is appropriate. As we mentioned in the past, Boeing represents roughly $10 million in terms of revenue per quarter. So it is meaningful.

是的。因此，如果你看看我們的航空航太預期收入，我們仍然預期 2025 年的這筆收入將與 24 年相比下降到個位數。因此我認為，根據客戶所傳達的訊息，我們認為我們的預測是合理的。正如我們過去提到的，波音公司每季的營收約為 1000 萬美元。所以這是有意義的。

But I think that given what's happening in defense, for instance, and what's happening in (inaudible) in our connectors business, we expect that we're still going to be able to deliver roughly 4% to 5% in terms of growth for CCT in 2025.

但我認為，考慮到國防領域的情況，以及我們的連接器業務的情況（聽不清楚），我們預計到 2025 年 CCT 仍將能夠實現約 4% 至 5% 的成長率。

And Vlad, I just want to make sure you and everyone else saw the mention of the Capital Markets Day on May 15. So you'll be able to see a lot of stuff we talk about sort of come to life, and I hope you and everyone else can join us then.

弗拉德，我只是想確保你和其他人都看到了 5 月 15 日資本市場日的提及。因此，你將能夠看到我們討論的許多東西都變成了現實，我希望你和其他人都能加入我們。

Thank you. This does conclude today's conference. Please disconnect your lines at this time, and have a wonderful day.

謝謝。今天的會議到此結束。請立即斷開您的線路，祝您有美好的一天。