ITT Inc (ITT) 2025 Q1 法說會逐字稿

Welcome to ITT's 2025 first quarter conference call. Today is Thursday, May 1, 2025. Today's call is being recorded and will be available for replay beginning at 12:00 p.m. Eastern. (Operator Instructions) It is now my pleasure to turn the call over to Mark Macaluso, Vice President, Investor Relations and Global Communications. You may begin.

歡迎參加 ITT 2025 年第一季電話會議。今天是 2025 年 5 月 1 日，星期四。今天的電話會議已被錄音，並將於東部時間中午 12 點開始重播。（操作員指示）現在我很高興將電話轉給投資者關係和全球通訊副總裁馬克·馬卡盧索 (Mark Macaluso)。你可以開始了。

Thank you, Tanya and good morning. Joining me in Stamford 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 three-month period ended March 29, 2025, which we announced this morning following our earnings pre-release on April 10.

謝謝你，Tanya，早安。今天與我一起來到史丹佛的還有 ITT 執行長兼總裁 Luca Savi 和財務長 Emmanuel Caprais。今天的電話會議將討論 ITT 截至 2025 年 3 月 29 日的三個月的財務業績，我們在 4 月 10 日發布盈利預告後於今天上午公佈了該業績。

Please refer to slide 2 of the presentation available on our website, where we note that today's comments will include forward-looking statements that are based on our current expectations. Actual results may differ materially due to several risks and uncertainties, including those described in our 2024 Annual Report on Form 10-K and other recent SEC filings.

請參閱我們網站上簡報的第 2 張投影片，我們注意到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，實際結果可能存在重大差異，包括我們 2024 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因素。

Except for otherwise noted, the first quarter results we present this morning will be compared to the first quarter of 2024 and include certain non-GAAP financial measures. The reconciliation of such measures to the 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，我們今天早上公佈的第一季業績將與 2024 年第一季進行比較，並包括某些非 GAAP 財務指標。這些指標與最具可比性的 GAAP 資料的對帳詳情已在我們的新聞稿和簡報附錄中詳細說明，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 number 3.

現在我很高興將發言權交給 Luca，他從第 3 張幻燈片開始發言。

Thank you, Mark, and good morning. ITT’s first quarter results were resilient and in line with the preliminary earnings we announced on April 10. The environment has been fluid to say the least, and still our ITTers all around the world delivered. Once again, the resilience of our people and other businesses came through.

謝謝你，馬克，早安。ITT 第一季的業績表現強勁，與我們 4 月 10 日公佈的初步收益一致。可以說，環境一直在不斷變化，但我們遍布全球的 ITT 員工仍然在努力工作。我們的員工和其他企業的韌性再次體現。

For this, my heartfelt thank you to all our employees. One of the highlights of the quarter was our orders of more than $1 billion, the most of any quarter ever in ITT. This was bolstered by the kSARIA and Svanehoj acquisitions. Talking about orders, in Q1, we grew 7% or 2% organic. Our book-to-bill was 1.15, resulting in an ending backlog of $1.8 billion, up 21% year-over-year and 10% sequentially.

為此，我向全體員工表達衷心的感謝。本季的一大亮點是我們的訂單金額超過 10 億美元，這是 ITT 歷史上最高的季度。這得歸功於對 kSARIA 和 Svanehoj 的收購。談到訂單，在第一季度，我們成長了 7% 或 2% 的有機成長。我們的訂單出貨比為 1.15，期末積壓訂單金額為 18 億美元，年增 21%，季增 10%。

Moreover, we expanded margin 30 basis points to 17.4% on flat sales. We generated adjusted EPS of $1.45, up 7% without the loss of earnings from the Wolverine divestiture. We generated record Q1 free cash flow of $77 million, up more than 150% and we repurchased $100 million of shares in Q1.

此外，在銷售額持平的情況下，我們的利潤率提高了 30 個基點，達到 17.4%。我們調整後的每股收益為 1.45 美元，成長 7%，且不計 Wolverine 資產剝離帶來的收益損失。我們第一季的自由現金流創下了 7,700 萬美元的紀錄，成長了 150% 以上，我們在第一季回購了價值 1 億美元的股票。

On orders, Industrial Process grew 14% and 11% organic, driven by new large palm project awards including Svanehoj where orders were up nearly 70%.

在訂單方面，工業流程業務增長了 14%，其中有機增長了 11%，這得益於 Svanehoj 等新的大型棕櫚項目合同，訂單增長了近 70%。

We continue to invest in fast growing locations like our IP Saudi and India sites to drive further market share gains. In Q1, I was pleased to spend time with Lala and Jaimin in Vadodara, India to review our investments and market expansion plans in this important growth region for ITT.

我們將繼續投資於快速成長的地區，例如我們的 IP 沙烏地阿拉伯和印度站點，以進一步擴大市場份額。在第一季度，我很高興與印度巴羅達的 Lala 和 Jaimin 一起回顧了 ITT 在這個重要成長地區的投資和市場擴張計劃。

Connect & Control grew nearly 40% driven by kSARIA’s large platform award with Defense Primes including F-35 and both IP and CCT had the book-to-bill above 1.2. On profitability, we continued to expand margin despite headwinds from foreign currency and M&A amortization. The team at KONI led MT to just shy of 20% margin, offsetting 150 basis points of unfavorable FX. CCT grew 170 basis points to nearly 20% excluding M&A dilution, driven by price actions and productivity. And lastly IP grew 60 basis points to over 23% excluding M&A dilution.

連接與控制業務成長近40%，這得益於kSARIA獲得的包括F-35在內的國防主力機隊大型平台合同，並且IP和CCT的訂單出貨比均超過1.2。在獲利能力方面，儘管面臨外匯和併購攤銷的不利因素，我們的利潤率仍持續成長。KONI 團隊帶領 MT 實現了略低於 20% 的利潤率，抵消了 150 個基點的不利外匯影響。在價格行動和生產力的推動下，CCT 成長了 170 個基點，達到近 20%，不包括併購稀釋。最後，IP 成長了 60 個基點，達到 23% 以上（不包括併購稀釋）。

Now on capital deployment, we started 2025 moving at ITT speed. Immediately after quarter-end, we decided to release preliminary earnings. We then went into the market and started repurchasing ITT shares to reaffirm our confidence in the long-term outlook of ITT. We repurchased $300 million of ITT shares in April in addition to the $100 million we did in Q1, lowering our share count by 4% for the year and still our capacity to execute M&A remains.

現在就資本部署而言，我們從 2025 年開始以 ITT 速度前進。季度末一過，我們決定立即發布初步收益。隨後，我們進入市場並開始回購 ITT 股票，以重申我們對 ITT 長期前景的信心。除了第一季回購的 1 億美元 ITT 股票外，我們在 4 月回購了 3 億美元的 ITT 股票，導致今年我們的股票數量減少了 4%，但我們仍然具有執行併購的能力。

Lastly, on the outlook, after a resilient Q1, we have good visibility to a strong second quarter with adjusted EPS growth expected to be roughly 8% at the midpoint. With this, we are maintaining our full year adjusted guidance for 2025, even with the uncertainty around the macro environment in the second half. Our strong cash generation is also expected to continue, driving us towards nearly $0.5 billion for the year, a new milestone for ITT.

最後，展望未來，在經歷了強勁的第一季後，我們對第二季的強勁表現有較好的預期，預計調整後的每股盈餘成長率中位數約為 8%。因此，即使下半年宏觀環境存在不確定性，我們仍將維持 2025 年全年調整後的指引。我們強勁的現金創造能力也有望持續下去，推動我們今年的現金創造能力達到近 5 億美元，這對 ITT 來說是一個新里程碑。

Now moving on from the results. Earlier in Q1, we announced the launch of VIDAR. This is a perfect example of ITT's innovation, driven by our engineering DNA. With innovation, we stay ahead of competition. We do it in friction where our engineers in Europe, North America and China turn engineering challenges into market share gains. We are doing it in Svanehoj with our new cryogenic fuel pumps.

現在繼續討論結果。在第一季早些時候，我們宣布推出 VIDAR。這是 ITT 創新的完美範例，由我們的工程 DNA 驅動。透過創新，我們保持競爭優勢。我們透過摩擦來實現這一目標，我們位於歐洲、北美和中國的工程師將工程挑戰轉化為市場份額的成長。我們正在斯瓦內霍伊使用新型低溫燃料幫浦進行此項工作。

Emmanuel and I were fortunate enough to be together with Soren and the entire Svanehoj team last quarter in Denmark as their new high-pressure pumps were tested with liquid nitrogen at minus 310 degrees Fahrenheit to replicate cryogenic operating conditions.

上個季度，Emmanuel 和我有幸與 Soren 以及整個 Svanehoj 團隊在丹麥一起，用零下 310 華氏度的液態氮測試他們的新型高壓泵，以複製低溫操作條件。

We're doing it in our connectors defense business where our new product development team is co-designing new connectors for harsh environments with our customers and quickly prototyping them. This is driving new awards including shared gains on the world's most advanced defense platforms.

我們在連接器國防業務中也這樣做，我們的新產品開發團隊正在與客戶共同設計用於惡劣環境的新型連接器並快速製作原型。這推動了新的獎勵，包括世界最先進國防平台的共享收益。

And we're doing it through ITT Ventures with our game-changing industrial motor VIDAR, which we believe is going to solve one of the biggest problems facing the global flow industry, wasted energy.

我們透過 ITT Ventures 和我們的變革性工業馬達 VIDAR 來實現這一目標，我們相信這將解決全球流動產業面臨的最大問題之一，即能源浪費。

Let's turn to Slide 4 to discuss VIDAR in more detail. VIDAR is truly a game changer. Let me explain exactly how it will change the flow industry. Nearly 10% of the world's electricity is used to power the motors that drive industrial pumps and fans, translating to an annual energy bill of over $300 billion. Yet, most of these systems rely on outdated motor technology that runs at fixed speed, requiring mechanical controls to regulate the flow.

讓我們翻到投影片 4 更詳細地討論 VIDAR。VIDAR 確實改變了遊戲規則。讓我具體解釋一下它將如何改變流量產業。世界上近 10% 的電力用於驅動工業泵和風扇的電機，這意味著每年的能源費用超過 3000 億美元。然而，大多數此類系統依賴以固定速度運行的過時馬達技術，需要機械控制來調節流量。

In these instances, the only solution available is a variable speed drive. But variable speed drives need space. Not only space, they require a clean room and they are expensive. Therefore, they are used in less than 20% of the cases. And this is where VIDAR comes in. Not only does VIDAR embed variable speed technology into the motor to deliver energy savings and drastically reduce costs and emissions, but VIDAR is also a drop in replacement, meaning customers can simply swap out their existing motor. It does not require a clean room, it does not need more space, but it does quickly pay for itself.

在這些情況下，唯一可用的解決方案是變速驅動器。但變速驅動器需要空間。它們不僅需要空間，還需要潔淨室，而且價格昂貴。因此，它們的使用率不到 20%。這就是 VIDAR 的作用所在。VIDAR 不僅將變速技術嵌入馬達中，從而節省能源並大幅降低成本和排放，而且 VIDAR 還是一種替代品，這意味著客戶只需更換現有馬達即可。它不需要潔淨室，也不需要更多空間，但它很快就能收回成本。

There are multiple customer pilots either underway or completed with thousands of hours of runtime under our belts. Then our VIDAR GM can tell you that at one such pilot site, we replace the existing motor with VIDAR and we open the control valve to 100%. The transformation was immediate. The motor speed dropped by 24%, energy use decreased by over 50% and noise levels plummeted. All whilst, VIDAR delivered the exact same flow at half the operating cost.

我們有多個客戶試點專案正在進行或已經完成，並且已經運行了數千小時。然後我們的 VIDAR GM 可以告訴您，在這樣一個試點站點，我們用 VIDAR 替換了現有的電機，並將控制閥打開到 100%。轉變是立竿見影的。馬達轉速下降了 24%，能耗減少了 50% 以上，噪音水平也大幅下降。同時，VIDAR 提供的流量完全相同，但營運成本卻只有原來的一半。

This single motor saved our customers plant 224,000 kilowatt hours annually, enough electricity to power 30 ohms for an entire year. Additionally, it helped our customer eliminate 160 metric tons of CO2 emissions, the equivalent of removing 34 gas powered cars from the road. And the financial impact was impressive. The plant saved roughly $20,000 per year from just one pump. A typical industrial plant will have hundreds. This revolutionary motor technology enables ITT to enter a new $6 billion addressable market.

這台馬達每年可為我們的客戶工廠節省 224,000 千瓦時的電力，足夠為 30 歐姆的馬達供電一整年。此外，它還幫助我們的客戶減少了 160 公噸的二氧化碳排放，相當於從道路上減少 34 輛燃氣汽車。其財務影響令人印象深刻。該工廠僅靠一台泵浦每年就能節省約 2 萬美元。一個典型的工業工廠將擁有數百個這樣的工廠。這項革命性的馬達技術使 ITT 進入了價值 60 億美元的新目標市場。

You will see and hear much more about VIDAR at our Capital Markets Day on May 15, including our targets for revenue growth. As you can see, VIDAR is a game changer for our customers, for ITT and for the world.

您將在 5 月 15 日的資本市場日上看到和聽到有關 VIDAR 的更多信息，包括我們的收入成長目標。如您所見，VIDAR 為我們的客戶、ITT 和整個世界帶來了改變。

Now let me turn the call over to Emmanuel to discuss our Q1 results in more detail.

現在，讓我將電話轉給 Emmanuel，讓他更詳細地討論我們的第一季業績。

Thank you, Luca and good morning. ITT delivered another solid quarter. Let’s begin with revenue. Growth was flat to prior year on a total and organic basis, mainly driven by our acquisitions and pricing actions, which fully offset lower volumes including from the Wolverine divestiture in the prior year. There were however a number of highlights.

謝謝你，盧卡，早安。ITT 又取得了一個穩健的季度業績。讓我們從收入開始。整體和有機成長與去年持平，主要得益於我們的收購和定價行動，這完全抵消了包括去年 Wolverine 資產剝離在內的銷售下降。然而，也有一些亮點。

In CCT, defense connectors grew over 20% and general industrial connectors grew 4%. kSARIA contributed 26 points of total growth. This was more than offset by lower aerospace volumes primarily due to Boeing as we anticipated. CCT also had the stronger price realization of all the businesses in Q1.

在CCT領域，國防連接器成長超過20%，通用工業連接器成長4%。 kSARIA貢獻了26個百分點的總成長率。正如我們預期的那樣，這被波音公司導致的航空產量下降所抵消。CCT 在第一季的所有企業中實現了更高的價格。

In Motion Technologies, the highlight was double digit growth from Kony share gains. In Friction OE we saw strength in China as well as continued growth in Friction’s independent aftermarket, which offset a market slowdown in North America and Europe.

在 Motion Technologies 中，亮點是 Kony 股價上漲帶來的兩位數成長。在 Friction OE 方面，我們看到了中國市場的強勁表現以及 Friction 獨立售後市場的持續成長，這抵消了北美和歐洲市場的放緩。

Finally, in Industrial Process, strong marine pump shipments in Svanehoj as well as growth in valves offset lower pump shipments.

最後，在工業流程領域，斯瓦內霍伊地區強勁的船用泵出貨量以及閥門的成長抵消了泵浦出貨量的下降。

On profitability, operating income grew 2% on flat sales or 7% excluding the Wolverine divestiture, primarily driven by shop floor productivity and price which more than offset lower volumes in auto and aerospace as well as cost inflation and unfavorable effects.

在獲利能力方面，營業收入在銷售額持平的情況下增長了 2%，若不計 Wolverine 資產剝離則增長了 7%，這主要得益於車間生產力和價格的增長，抵消了汽車和航空航天領域銷量下降以及成本上漲和不利影響。

IP was once again above 20% margin excluding Svanehoj margin would have been up 60 basis points. In MT, the team just reached – just about reached its 20% long-term target despite a larger than expected FX headwind, expanding margin 160 basis points versus prior year and over 300 basis points excluding FX. Finally in CCT, excluding M&A dilution margin was up 170 basis points to nearly 20% driven by price gains and productivity.

IP 的利潤率再次超過 20%，不包括 Svanehoj 的利潤率將上漲 60 個基點。在美林證券，儘管外匯逆風比預期更大，但團隊剛剛——幾乎——達到了 20% 的長期目標，利潤率較上年同期擴大了 160 個基點，不包括外匯則擴大了 300 多個基點。最後，在 CCT 中，受價格上漲和生產力提高的推動，不包括併購稀釋利潤率上漲了 170 個基點，達到近 20%。

We expect CCT to continue to drive higher price realization as renegotiations in aerospace are finalized. This performance combined with a 1% lower share count resulted in adjusted EPS of $1.45. We overcame $0.06 of lost earnings from Wolverine and $0.06 from unfavorable FX.

我們預計，隨著航空航太領域重新談判的最終完成，CCT 將繼續推動更高的價格實現。這一業績加上1%的股數下降，導致調整後每股收益達到1.45美元。我們克服了Wolverine帶來的0.06美元收益損失以及0.06美元的不利匯率影響。

Lastly, on free cash flow. Our cash generation increased over 2.5 times versus prior year and was a record for the first quarter. Our free cash flow margin also increased more than 500 basis points this quarter. This is thanks to the efforts of our team to drive stronger cash collections as well as more than $15 million of operating cash flow from our acquisition.

最後，關於自由現金流。我們的現金產生量比去年增加了 2.5 倍以上，創下了第一季的最高紀錄。本季我們的自由現金流利潤率也增加了 500 多個基點。這要歸功於我們團隊的努力，推動了更強勁的現金收集，以及透過收購實現了超過 1500 萬美元的營運現金流。

Let’s turn to the Q1 operating margin and EPS bridges on Slide 6. The key takeaway here is the strong operational performance of our businesses that allowed us to grow margin on flat sales. Included in the figures are 150 basis points of operational leverage, 40 basis points of productivity, which outweighed the dilutive margin impact of acquisitions and foreign currency.

讓我們來看看幻燈片 6 上的 Q1 營業利潤率和 EPS 橋。這裡的關鍵點是，我們的業務營運表現強勁，這使我們能夠在銷售額持平的情況下提高利潤率。這些數據包括 150 個基點的營運槓桿和 40 個基點的生產率，這些因素超過了收購和外幣對稀釋利潤率的影響。

As you can see on the right, our operational performance along with a contribution from our acquisitions helped us overcome earnings headwinds from the 2024 divestiture of Wolverine, unfavorable foreign currency, higher interest expense and a higher tax rate. Excluding the divestiture, Q1 EPS would be up 7% for the quarter.

正如您在右側看到的，我們的營運表現以及收購帶來的貢獻幫助我們克服了 2024 年剝離 Wolverine、不利的外匯、更高的利息支出和更高的稅率帶來的獲利阻力。不計資產剝離，第一季每股收益將成長 7%。

Now let’s move to Slide 7 to discuss our 2025 guidance. After a solid Q1 performance, we are confirming our full year adjusted outlook. We have good visibility to our performance in the second quarter, which gives us confidence despite the highly uncertain trade environment.

現在讓我們轉到幻燈片 7 來討論我們的 2025 年指導。在第一季表現穩健之後，我們確認了全年調整後的展望。我們對第二季的業績有很好的預見性，儘管貿易環境高度不確定，這還是讓我們充滿信心。

On revenue, our total growth is expected to be slightly higher due to FX, while organic revenue is expected to be within our original range of 3% to 5%.

在收入方面，由於外匯因素，我們的總成長預計會略高，而有機收入預計將在我們原定的 3% 至 5% 的範圍內。

In CCT, we expect to drive growth in defense as well as in aerospace with a ramp in shipments to Boeing and benefits from pricing actions. In IP, we expect growth in project shipments to accelerate in the second quarter, while demand in aftermarket and in valves remains robust.

在 CCT 方面，我們預計隨著對波音的出貨量增加以及定價行動帶來的收益，國防和航空航太領域的成長將得到推動。在IP方面，我們預期第二季專案出貨量的成長將加速，而售後市場和閥門的需求依然強勁。

This is partially attributable to the 90-plus-percent on time delivery in our North America aftermarket business, which is allowing us to gain share. And in MT, we expect outperformance in friction in the U.S. and Europe to accelerate throughout the year. For total ITT price should account roughly 1 to 2 points of growth.

這部分歸功於我們北美售後市場業務 90% 以上的準時交貨率，這使我們獲得了市場份額。在 MT 領域，我們預計美國和歐洲的摩擦性能將在全年加速提升。對於整體 ITT 價格而言，其成長幅度應約為 1 至 2 個百分點。

On margin, as we saw in Q1 productivity and price should continue to drive the bulk of our margin expansion, overcoming the impact of lower volume and higher cost inflation. We have already taken further actions to reduce structural costs while prudently investing in areas of our business that will drive growth such as VIDAR.

在利潤率方面，正如我們在第一季看到的那樣，生產力和價格應該繼續推動我們的利潤率擴張，克服產量下降和成本上漲的影響。我們已經採取進一步措施降低結構性成本，同時審慎投資於能夠推動成長的業務領域，例如 VIDAR。

Our revenue growth and margin expansion are expected to drive adjusted EPS at the midpoint to $6.30. This includes the $0.17 unfavorable impact from temporary intangible amortization that ended in April for Svanehoj and will conclude by the end of the year for kSARIA. Still, the 2024 acquisitions are expected to add approximately $0.20 of accretion this year.

我們的營收成長和利潤率的提升預計將推動調整後每股收益中位數達到6.30美元。這已計入Svanehoj公司4月已結束的暫時無形資產攤銷帶來的0.17美元不利影響，kSARIA公司也將於年底前結束攤銷。不過，預計 2024 年的收購將在今年增加約 0.20 美元的增值。

We will also realize an approximate $0.10 benefit from the $400 million of share repurchases executed through April net of interest expense. Finally, on cash, the solid start in Q1 puts us in position to deliver close to $0.5 billion of free cash flow this year.

截至 4 月份，我們也將從執行的 4 億美元股票回購中獲得約 0.10 美元的收益（扣除利息支出）。最後，在現金方面，第一季的良好開局使我們今年能夠實現近 5 億美元的自由現金流。

Let’s talk briefly about our Q2 outlook. Revenue growth should be in the mid-single digit range in total and low-single digit range on an organic basis led mainly by project shipments in Industrial Process including Svanehoj. Growth in CCT should accelerate quarter-to-quarter as shipments to Boeing ramp up.

讓我們簡單談談我們對第二季的展望。整體營收成長應在中等個位數範圍內，有機收入成長應在低個位數範圍內，主要受包括 Svanehoj 在內的工業流程專案出貨量的推動。隨著對波音出貨量的增加，CCT 的成長應該會逐季加快。

On margin, Motion Technologies should surpass 20% and Industrial Process is expected to be over 21%. CCT margin should improve sequentially by roughly 200 basis points, but will be down year-over-year due to kSARIA amortization. Legacy CCT would have effectively hit their long-term margin targets in Q2.

就利潤率而言，運動技術公司的利潤率應超過 20%，而工業製程公司的利潤率預計將超過 21%。CCT 利潤率應會較上季提高約 200 個基點，但由於 kSARIA 攤銷，年比將有所下降。Legacy CCT 將在第二季有效實現其長期利潤目標。

In total, this should drive operating margin expansion of roughly 50 basis points year-over-year and more than 100 basis points sequentially overcoming higher corporate costs related to the VIDAR launch. Higher income and lower share count is expected to drive adjusted EPS growth of 6% to 10% year-over-year and 8% growth at the midpoint. Excluding the lost earnings from Wolverine, EPS growth would be 14%.

總體而言，這將推動營業利潤率同比增長約 50 個基點，環比增長超過 100 個基點，以克服與 VIDAR 推出相關的更高的企業成本。預計更高的收入和更低的股票數量將推動調整後每股收益同比增長 6% 至 10%，中間值增長 8%。除去金鋼狼的收益損失，每股收益成長率將達 14%。

Before we wrap up, I wanted to address our assumptions on tariffs. Our supply chain and sourcing teams have been working to quantify the potential exposure to ITT and to develop granular action plans to mitigate the impact by working with our customers and suppliers. As it stands today, our estimate of the tariff cost for the balance of 2025 is approximately $50 million to $60 million prior to our mitigation strategies.

在結束之前，我想談談我們對關稅的假設。我們的供應鏈和採購團隊一直致力於量化 ITT 的潛在風險，並透過與客戶和供應商合作制定詳細的行動計劃來減輕影響。按照目前的情況，在實施緩解策略之前，我們估計 2025 年剩餘時間的關稅成本約為 5,000 萬至 6,000 萬美元。

Given the divestiture of Wolverine in MT, the largest impacts are expected in CCT and in IP. Most of our products are USMCA certified and we have assumed these exemptions remain intact. We issued price increases to our customers for the products that are not exempt and we also continue to strictly control our costs, such as the restructuring actions we took in the first quarter in the event of a slowdown in the second half.

鑑於 MT 中 Wolverine 的剝離，預計 CCT 和 IP 中受到的影響最大。我們的大多數產品都經過 USMCA 認證，我們假設這些豁免仍然有效。我們向客戶提高了不享受豁免的產品的價格，我們也繼續嚴格控製成本，例如，我們在第一季度採取了重組措施，以應對下半年經濟放緩的情況。

Taken altogether, we expect our actions will offset the impact from an operating income perspective. There may however be some impact on margin as well as a timing element that could affect cash flow.

總的來說，我們預計我們的行動將從營業收入的角度抵消影響。然而，這可能會對利潤產生一定影響，時間因素可能會影響現金流。

One more thing to note, our 2025 EPS guidance has not changed. This is due to the uncertainty in the second half of the year given the volatility in the macro environment. This is a very fluid situation and we will stay close to this and take further actions as needed.

還有一點要注意，我們對 2025 年每股盈餘的預期沒有改變。這是由於宏觀環境波動導致下半年存在不確定性。情況非常不穩定，我們將密切注意並根據需要採取進一步行動。

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

讓我把電話轉回盧卡來結束演講。

Thanks, Emmanuel. A few points before moving to Q&A. This was another resilient performance. We delivered on our Q1 commitments and have good visibility to a strong second quarter. We continue to expand our margin with more opportunities still to capture.

謝謝，伊曼紐。在進入問答環節之前，我想說幾點。這又是一次堅韌的表現。我們履行了第一季的承諾，並且對第二季的強勁表現充滿信心。我們將繼續擴大利潤，並抓住更多機會。

We’re maintaining our full year guidance despite a great deal of uncertainty. We quickly deployed capital to repurchase shares in April and still there is a lot of value we can create at ITT, including through game changing innovations like VIDAR.

儘管存在著許多不確定性，我們仍維持全年預期。我們在 4 月迅速部署了資本來回購股票，但我們仍然可以在 ITT 創造很多價值，包括透過 VIDAR 等改變遊戲規則的創新。

On May 15, you will be able to see this value creation come to life at ITT’s next Capital Markets Day and hear from some of the ITT leaders delivering our results today and for the years to come. I look forward to seeing you there.

5 月 15 日，您將能夠在 ITT 的下一屆資本市場日上看到這一價值創造的實現，並聽取一些 ITT 領導人介紹我們今天和未來幾年的成果。我期待在那裡見到你。

Thank you for your ongoing support of ITT. As always, it has been my pleasure. Tanya, please open the line for Q&A.

感謝您對 ITT 的持續支持。一如既往，這是我的榮幸。塔妮婭，請開通問答專線。

(Operator Instructions)

（操作員指示）

Scott Davis, Emilius Research. Your line is open, Scott.

斯科特戴維斯，埃米利厄斯研究中心。你的線路已開通，斯科特。

Good morning, Scott.

早安，史考特。

Thank you, very good morning, guys. Morning, Scott. And I think the headline to me at least these order numbers are pretty big. Can you give us a little bit of color on why you think orders picked up so much? Is there maybe some impact of people trying to get ahead of price increases? Is there any other variables out there that you can kind of point to that could explain sequentially, and year-over-year, why you had such a big increase?

謝謝大家，早安。早安，史考特。我認為至少對我來說這些訂單數量是相當大的。您能否稍微解釋一下為什麼訂單量會如此增加？人們試圖搶在價格上漲之前，這是否會產生一些影響？還有其他變數可以解釋為什麼會出現如此大的成長嗎？

Sure. No Scott, we don’t think there is any purchasing ahead of what might happen. Also the reason for that is, if you think about IP for example. IP project orders were up 47%. Those projects, we’ve been working on those projects for months, in some cases for years. So there is no acceleration in any shape or form on that one.

當然。不，斯科特，我們認為在可能發生的情況之前不會進行任何購買。原因也是，例如，如果你考慮 IP。IP項目訂單成長47%。我們已經為這些專案工作了數月，有些甚至數年。因此，無論以何種形式，都不存在加速度。

And then, of course, our great acquisition performance both from kSARIA as well as from Svanehoj. If you think about Svanehoj was up 70% year-over-year with a book to bill of 2.0. So I would say this is for sure partly the market, but partly also market share gains in several sectors.

當然，我們從 kSARIA 和 Svanehoj 的收購表現也十分出色。想想看，Svanehoj 的訂單出貨比年增了 70%，達到了 2.0。所以我認為這部分肯定是市場因素，但部分也反映在多個領域的市佔率成長。

Okay. Helpful. And then just to clarify, the big buyback that you did presumably to help offset Wolverine, but not fully of course, but help. But was that because of market weakness or because you see perhaps a lull in M&A? Any color behind that, please?

好的。很有幫助。然後需要澄清的是，您進行的大規模回購大概是為了幫助抵消金鋼狼的影響，但當然不是完全的，但有所幫助。但這是因為市場疲軟還是因為併購活動陷入低迷？請問那後面有什麼顏色嗎？

Sure. No, I would say that it’s not related to the M&A. As a matter of fact, our pipeline is healthy. We keep it on cultivating and we’re still targeting to do M&A this year. In an ideal world, we will be able to deploy $500 million to $700 million or a little bit more this year on M&A.

當然。不，我想說這跟併購無關。事實上，我們的管道是健康的。我們將繼續培育，並仍計劃今年進行併購。理想情況下，我們今年將能夠在併購上投入 5 億至 7 億美元或更多。

So it’s not related to the lack of opportunity in M&A. It’s just to reaffirm really the confidence in ITT and our medium and long-term outlook. And as you’ve seen, our net debt ratio was probably one of the lowest in the multi industrial. I think in one of your slides you show it at 0.3%, so you might have precipitated to that decision, Scott.

所以這與缺乏併購機會無關。這只是為了重申我們對 ITT 以及中長期前景的信心。如您所見，我們的淨負債比率可能是多種工業中最低的之一。我想您在一張幻燈片中將其顯示為 0.3%，所以您可能已經做出了這個決定，斯科特。

Well, best of luck guys. I’ll pass it on. Thank you.

好吧，祝大家好運。我會傳達它。謝謝。

Mike Halloran from Robert W. Baird & Co.

Robert W. Baird & Co. 的 Mike Halloran

Hi Mike.

你好，麥克。

Hey, good morning. Everyone. Hi, So first, can you just bridge the previous guidance to the current guidance. It feels like pricing moves revenue up a little bit, probably some implicit pressure on the volumes. Not that you're seeing it today, but you're assuming back half maybe a little something FX more favorable. Anything else I should be thinking about from a put and take from previous guidance to the current guide?

嘿，早安。每個人。您好，首先，您能否將先前的指導與當前的指導聯繫起來。感覺定價會使收入稍微增加，可能對銷售造成一些隱性壓力。雖然您今天並沒有看到這一點，但您可以預期後半部分外匯可能會更加有利。我還應該考慮從以前的指導到當前指導的改變嗎？

Yes, Mike. So when you look at guidance to guidance, we -- obviously, as you mentioned, we have a little bit of a positive impact from FX and also from share count as we discussed.

是的，麥克。因此，當您查看指導時，我們 - 顯然，正如您所提到的，我們受到了外匯和股票數量帶來的一些積極影響，正如我們所討論的那樣。

Yes, share count, yes.

是的，分享數量，是的。

I think when you look at a little bit of the headwinds, we have some -- an increased tax rate, a little bit of more cost inflation and also, we expect the second half to be a little lower than originally.

我認為，當你看到一些不利因素時，我們就會面臨一些問題——稅率增加，成本通膨略有上升，而且我們預計下半年的成長率會比最初略低。

So not baking at all a recession, but economic activity maybe to be a little bit slower. So all in all, this is where we stand. We expect acquisitions to deliver a little bit better than originally. So that's really good news. And then when you look at the different components of the guidance -- so as we discussed mid-single-digit organic revenue growth, we expect IP to be leading the pack with around 5% and CCT closely behind and and MT to be roughly flat.

因此，根本不會出現經濟衰退，但經濟活動可能會稍微放緩一些。總而言之，這就是我們的現狀。我們預計收購的結果會比最初更好。這確實是個好消息。然後，當您查看指導的不同組成部分時 - 正如我們所討論的中等個位數有機收入增長一樣，我們預計 IP 將領先，增幅約為 5％，CCT 緊隨其後，而 MT 將大致持平。

One of the things that I think is important to highlight is that we continue to expect obviously margin expansion. We expect that IP for the year will land at close to 22%. MT is expected to be solidly at 20%, in line with our long-term target and CCT just shy of 18%. Because obviously, it is impacted by the kSARIA margin dilution.

我認為需要強調的一點是，我們仍然預期利潤率會明顯擴大。我們預計今年的 IP 將達到接近 22%。預計 MT 將穩定保持在 20%，與我們的長期目標一致，而 CCT 則略低於 18%。因為很明顯，它受到 kSARIA 利潤稀釋的影響。

But without kSARIA, CCT would be above 21%, which is really close to the long-term target. So I think that, all in all, EPS aligned with prior guidance. If everything goes well and the tariffs are resolved, this is good news. Other than this, no major change.

但如果沒有 kSARIA，CCT 將超過 21%，這非常接近長期目標。所以我認為，總的來說，每股收益與先前的指導一致。如果一切進展順利，關稅問題得到解決，這是個好消息。除此之外，沒有重大變化。

That's super helpful. I appreciate that. So then just kind of thinking about the resilience of the model here. I think the IP side, give us your thoughts on how that should track if you do get a little bit of softness? I know the pipeline, the backlog, the all very attractive. How do you think that track? How do you think the customer base respond? Do you think there's enough inertia in what you're doing as well as the need in the market to have some sort of offsets or at least be pretty resilient in the face of that.

這非常有幫助。我很感激。那這裡只是思考一下模型的彈性。我認為在 IP 方面，如果確實出現一點軟化，您認為應該如何追蹤？我知道管道、積壓訂單，一切都非常有吸引力。您覺得這首歌怎麼樣？您認為客戶群會有何反應？您是否認為您所做的事情具有足夠的慣性，以及市場需要某種抵消措施，或至少在面對這種情況時具有相當的彈性。

So when we look at the market in IP, we see a little bit of a slowdown in the funnel. So the funnel is down year-over-year. And we think it accounts for all those projects that have been awarded that have not replenished as fast as we have seen in the past. But I think it's fair to say that the funnel is -- remains at an elevated level, even though it's declining.

因此，當我們觀察 IP 市場時，我們發現漏斗速度略有放緩。因此，漏斗逐年下降。我們認為，這是導致所有已授予的項目都沒有像過去那樣快速獲得資金補充的原因。但我認為可以公平地說，儘管漏斗正在下降，但它仍然處於較高水平。

Some of that decline is coming from North America. And specifically in there, we see decline also from oil and gas and chemical standpoint. But for us, as we discussed, we have a really strong backlog. The backlog in IP is at $1 billion, which is a record. It's up year-over-year 15%, sequentially up 8%, as we discussed, book-to-bill above 1.2. So I think that we are really confident in terms of our revenue number and our growth in 2025 for IP.

部分下降來自北美。具體來說，從石油、天然氣和化學品的角度來看，我們也看到了下滑。但對我們來說，正如我們所討論的，我們確實有大量的積壓訂單。智慧財產權積壓金額達 10 億美元，創下紀錄。正如我們之前討論的，訂單出貨比超過1.2，年增15%，季增8%。因此，我認為我們對我們的收入數字以及2025年知識產權的成長充滿信心。

If I may add 1 point, Mike, if you look at the backlog that man was talking about, in the last three years, it grew from $0.5 billion to $1 billion, so 100% up in three years, and 50% organically. And then also when you look at our project execution, when we closed the project now, the closing margin of this project is higher than the margin of the project when we book them. So I think that this gives us confidence to continue to perform in IP.

麥克，如果我可以補充一點，如果你看一下那位先生談到的積壓訂單，在過去三年中，它從 5 億美元增長到了 10 億美元，所以三年內增長了 100%，有機增長了 50%。然後，當您查看我們的專案執行情況時，當我們現在關閉該專案時，該專案的結束利潤率高於我們預訂時的專案利潤率。所以我認為這給了我們繼續在 IP 領域表現的信心。

Really appreciate it thanks gentlemen.

非常感謝各位先生。

Thank you, Mike.

謝謝你，麥克。

Vladimir Bystricky from Citi Research.

花旗研究部的弗拉基米爾‧比斯特里奇 (Vladimir Bystricky)。

Good Morning guys. Thanks for taking my thanks for taking my question. So maybe just following up on IP. You mentioned continued investments that you're making in Saudi and in India. I guess in the Saudi region, in particular, can you talk about whether -- or how you're thinking about any potential risks to Saudi spending plans as we've seen crude oil prices pull back this year and whether you're hearing any change in tone from your customers there?

大家早安。謝謝您回答我的問題。所以也許只是跟進 IP。您提到了在沙烏地阿拉伯和印度持續進行的投資。我想，特別是在沙烏地阿拉伯地區，您能否談談，由於我們看到今年原油價格回落，您如何看待沙烏地阿拉伯支出計畫可能面臨的風險，以及您是否聽到那裡的客戶態度有任何變化？

Sure. No, actually, we do not see any change in tone. As a matter of fact, when you look at the orders, if you look at the last three years, our orders by market, being oil and gas have been orders up every single year, '22, '23, '24. Chemicals, the same.

當然。不，實際上，我們沒有看到任何語氣變化。事實上，如果你看一下訂單，你會發現過去三年，我們按市場劃分的訂單，即石油和天然氣訂單，每年都在增加，22、23、24 年。化學品也一樣。

General industrial, the same. Q1 '25 energy, oil and gas, keeps on growing. So no major noise on that front. And I will say also that on top of the market, we are benefiting, of course, from market share gains because of our -- because the way and the team are performing in Saudi, more than 95% of time delivery, perfect project execution, so the customers are very loyal to us.

一般工業也一樣。25 年第一季能源、石油和天然氣持續成長。因此這方面沒有什麼大的動靜。我還要說的是，除了市場之外，我們當然也受益於市場份額的成長，因為我們的方式和團隊在沙烏地阿拉伯的表現，超過 95% 的時間交付，完美的專案執行，所以客戶對我們非常忠誠。

That’s great to hear, Luca. I appreciate it. And then maybe just shifting to MT. You mentioned, I think an expectation for Friction OE outperformance to ramp in North America and Europe over the course of the year. Can you just talk about, is that based on OEM production schedules and platform introductions? And do you see any risk of further modifications to those schedules just given the current uncertainty in the environment?

很高興聽到這個消息，盧卡。我很感激。然後也許只是轉向 MT。您提到，我認為今年摩擦原廠配件在北美和歐洲的銷售預計將大幅成長。您能談談嗎，這是基於 OEM 生產計劃和平台介紹嗎？鑑於當前環境的不確定性，您是否認為進一步修改這些時間表有風險？

No. And to be honest with you, Q1 was very challenging for the European and North American market. The European market was down almost 7% in terms of production. North America is down 5%. So the only resilient market that showed good growth was China with operation -- with manufacturing up 11%. So these were the markets number.

不。老實說，第一季對於歐洲和北美市場來說非常具有挑戰性。歐洲市場的產量下降了近7%。北美下降了5%。因此，唯一表現出良好成長的彈性市場是中國，其製造業成長了 11%。這些就是市場數字。

And in China, we outperformed by a few hundred basis points. The reason why we are confident on the 400 basis points for the full year and ramping up is the platform that we won, the start of production that we see and also the order book that we see now, for example, for the next three months. So all of that gives us confidence of the outperformance of 400 to 500 basis points for the full year.

在中國，我們的表現更勝一籌幾百個基點。我們之所以對全年 400 個基點充滿信心並不斷提高產量，是因為我們贏得了平台，我們看到了生產的開始，以及我們現在看到的訂單，例如未來三個月的訂單。因此，所有這些都讓我們對全年業績表現超出預期 400 至 500 個基點充滿信心。

Great. Appreciate it guys.

偉大的。感謝你們。

Thank you, Vlad.

謝謝你，弗拉德。

Jeff Hammond from KeyBanc Capital Markets.

KeyBanc Capital Markets 的 Jeff Hammond。

Yeah, have a good morning.

是的，早安。

Guys. Hi. Hey, so.

夥計們。你好。嘿，那麼。

So just want to hit the -- good color on the tariff exposure. Can you just talk about how much of the $50 million to $60 million you cover with price, where specifically you're announcing price increases? And then just any changes you're implementing around sourcing or otherwise to kind of further mitigate the headwinds?

所以只是想打出——關稅曝光的好顏色。您能否談談這 5,000 萬至 6,000 萬美元中有多少是用價格來支付的，具體是什麼時候宣布漲價的？那麼，您在採購或其他方面實施了哪些變更來進一步緩解不利因素？

Sure. When you look at the total exposure, Jeff, which is roughly between $50 million and $60 million for the next nine months. As we said, we are acting on cost and on the sourcing. So when you're looking at the sourcing where you have a material, for example, where you have two suppliers that are qualified and might be in different geographical location, we're able to use that flexibility and the resilience that we build in the supply chain in the last few years to reduce the impact of the tariff.

當然。傑夫，當你查看總風險敞口時，未來九個月的風險敞口大約在 5000 萬美元至 6000 萬美元之間。正如我們所說，我們根據成本和採購採取行動。因此，當您查看材料的採購時，例如，您有兩個合格的供應商並且可能位於不同的地理位置，我們可以利用過去幾年在供應鏈中建立的靈活性和彈性來減少關稅的影響。

And then when it comes to the commercial actions, the commercial actions are really on all the products that recent are not USMCA compliant. And a lot of those commercial actions that are executed in progress, tend to be the majority through the distribution, so where we also have more pricing power. So all of these enable us to have no net impact to the EPS guidance for 2025.

然後，當涉及商業行動時，商業行動實際上針對的是所有最近不符合 USMCA 要求的產品。許多正在進行的商業行動往往透過分銷進行，因此我們也擁有更多的定價權。因此，所有這些都使我們對 2025 年的 EPS 指引沒有淨影響。

Okay. That's helpful. And then just back on M&A. A lot of companies have said, gosh, it's gotten more difficult. We got to ask a million questions on tariffs. And we don't know what's going to happen from a demand perspective and that makes M&A difficult. But it sounds like you guys still feel like you can get stuff to the finish line. Maybe just speak to actionability and if you've seen stuff fall out because of all this noise.

好的。這很有幫助。然後回到併購話題。許多公司表示，天哪，情況變得更加困難了。我們對關稅有無數個問題。我們不知道從需求角度來看會發生什麼，這使得併購變得困難。但聽起來你們還是覺得自己可以完成目標。也許只是談論可操作性，如果你已經看到事情因為所有這些噪音而失敗。

Sure. I think that now is the time to spend more in cultivating these opportunities on the M&A front. Now the uncertainty means that, of course, you're going to be more granular and understand that it will be more the impact in the short term.

當然。我認為現在是時候在併購方面投入更多精力來培養這些機會了。現在的不確定性意味著，當然，你會更細緻地了解並理解它將在短期內產生更大的影響。

But if you have a very good strategic acquisition with a lot of value creation, sure, you need to be more granular, but largely, the long-term picture will not change. And this is the approach that we are having on the M&A front. So myself and the entire team are busy in cultivating meeting and analyzing the opportunity. Granted, you might need to be a little bit more granular at the -- in your model in the first three, four years.

但是如果你有一個非常好的策略性收購，並且創造了很多價值，當然你需要更加細緻，但總體而言，長期前景不會改變。這就是我們在併購方面採取的方法。因此我和整個團隊都忙於培養會議和分析機會。當然，在最初的三、四年裡，您可能需要對模型進行更細緻的分析。

Okay great we'll see you guys in a couple weeks.

好的，太好了，我們幾週後再見。

Thank you. See you, Jeff.

謝謝。再見，傑夫。

Brad Hewitt from Wolfe Research.

來自 Wolfe Research 的 Brad Hewitt。

Hey good morning guys, thanks for taking my question. So on the IP side, very strong project orders in Q1 with the 47% growth. Just curious if you can walk through your updated growth assumptions for IP between projects and short cycle. I believe your prior guidance was like mid-teens growth in projects and kind of low to mid-singles in short cycles.

嘿，大家早安，感謝你們回答我的問題。因此，在 IP 方面，第一季的專案訂單非常強勁，成長了 47%。我只是好奇您是否可以介紹一下專案和短週期之間 IP 的最新成長假設。我相信您之前的指導就像專案中的十幾歲的成長和短週期內的低到中等的成長。

Yeah, So -- sure. So the guidance really hasn't changed much. Keep in mind, Brad, that while we're very happy with the project orders and the growth of 47%, this will not convert into revenue growth in 2025. Those are long lead projects. They take anywhere between 12 to 24 months. So our assumptions between projects and short cycle, they remain essentially the same. I think that, as I mentioned, in IP, really for us, the focus is to make sure that we convert the backlog in a timely action. We're not really concerned of our -- of hitting our revenue targets for 2025.

是的，所以——當然。因此指導其實並沒有太大改變。請記住，布拉德，雖然我們對項目訂單和 47% 的成長感到非常滿意，但這不會轉化為 2025 年的收入成長。這些都是長期專案。它們需要 12 到 24 個月的時間。因此，我們對項目和短週期的假設基本上保持不變。我認為，正如我所提到的，在 IP 方面，對我們來說，重點是確保我們及時轉換積壓工作。我們其實並不關心能否達成 2025 年的營收目標。

And when you look at the show cycle, Brad, if I may add, if we look at -- sure, the growth in project was very strong, and short cycle not so much. But to be honest, if we look the short cycle orders sequentially, we were up 1%. And the book-to-bill in the short cycle was 1.07, and then even looking at the short cycle, the -- on a weekly basis, the run rate in Q1 was higher than the average weekly rate of 2024. So doesn't have the growth that we saw in the past, but is still staying at a very high level.

布拉德，當我觀察展會週期時，如果我可以補充一點，如果我們觀察——當然，專案的成長非常強勁，而短週期的成長則不那麼強勁。但說實話，如果我們連續查看短週期訂單，我們的成長是 1%。短週期內的訂單出貨比為 1.07，即使從短週期來看，以週計算，第一季的運行率也高於 2024 年的平均週運行率。因此，雖然沒有出現過去那樣的成長，但仍然保持在非常高的水平。

Okay. That's helpful. And then maybe Switching over to the tariff side of things. So you mentioned the $50 million to $60 million in gross headwind for the rest of the year, most of that offset coming from price. I guess, just curious in your guidance, what are you embedding in terms of demand elasticity in response to those price increases?

好的。這很有幫助。然後也許會轉向關稅方面。所以您提到今年剩餘時間內總逆風將達到 5,000 萬至 6,000 萬美元，其中大部分抵銷來自價格。我想，我只是好奇您的指導，您在需求彈性方面嵌入了什麼來應對這些價格上漲？

So as we mentioned, Brad, we do not -- we did not bake anything in terms of -- in the guidance in terms of demand distractions due to those tariffs. We expect to be able to -- we expect to be able, obviously, to pass all the cost increase through price and cost reduction actions as well. I think one thing that it's important to highlight is the fact that we pretty much are in the same condition as everybody else.

正如我們所提到的，布拉德，我們沒有——我們沒有——在指導中考慮到這些關稅對需求造成的影響。我們希望能夠——顯然，我們希望能夠透過價格和降低成本的行動來轉嫁所有成本增加。我認為需要強調的一點是，我們的狀況與其他人幾乎相同。

For instance, in IP, most of the competitors buy their castings from China or from India. So we don't believe that there'll be any competitive disadvantages. And so we expect to be passing on. And we'll see if that results in a little bit of a hit to demand in the second half, we continue to be very prudent and monitor the activity.

例如，在IP中，大多數競爭對手從中國或印度購買鑄件。因此我們認為不會有任何競爭劣勢。因此，我們期望能夠傳承下去。我們將看看這是否會導致下半年需求受到一定打擊，我們將繼續保持謹慎並監控活動。

Great, thank you. Thank you, Brad.

太好了，謝謝。謝謝你，布拉德。

Joseph Ritchie from Goldman Sachs & Co.

高盛公司的約瑟夫·里奇

Thanks. Good morning, guys. Good morning, Joe.

謝謝。大家早安。早安，喬。

Hey, I'm sorry if I missed it. But have you guys said how much of the $50 million to $60 million in tariff cost impact is coming from each segment. Just trying to gauge just in terms of your ability to kind of pass pricing? I know that sometimes it takes a little bit longer for the Friction business. Sure, Joe.

嘿，如果我錯過了，我很抱歉。但你們有沒有說過，5000 萬到 6000 萬美元的關稅成本影響中有多少來自各個部分？只是想根據您傳遞定價的能力來衡量嗎？我知道有時候摩擦業務需要更長的時間。當然，喬。

Sure, Joe. The majority of the impact is actually in IP and in CCT. Because if you remember, in Motion Technologies, with the divestiture of Wolverine, the impact of the tariffs has been greatly reduced. We are in the region for the region, Europe for Europe, China for China and Mexico for North America. And all our products are USMCA compliant. So when it comes to MT, the exposure in MT is only in the that play a role in the aftermarket in the US So majority is IP and CCT.

當然，喬。大部分影響實際上在IP和CCT方面。因為如果你還記得的話，在 Motion Technologies，隨著 Wolverine 的剝離，關稅的影響已經大大降低。我們為該地區提供服務，為歐洲提供服務，為中國提供服務，為北美提供服務，我們為該地區提供服務。我們的所有產品均符合 USMCA 標準。因此，當談到 MT 時，MT 的曝光僅在美國售後市場發揮作用，因此大多數是 IP 和 CCT。

Which is, in a way, very favorable if you think about it from a business case because this is where we also have the largest pricing power, both in distribution and in direct.

從某種程度上來說，如果從商業案例來看，這是非常有利的，因為這也是我們在分銷和直接銷售方面擁有最大定價權的地方。

Yeah ,that's good to hear. And then just a follow-up question. VIDAR seems really interesting. I'm just curious, as you think about the opportunity in getting after this opportunity, Luca. Is it the same like sales force? Are you able to kind of cross-sell this with your pumps business as well? Just like help us understand how you see this playing out.

是的，聽到這個消息真好。然後只是一個後續問題。VIDAR 看起來真的很有趣。我只是很好奇，盧卡，你是如何考慮獲得這個機會的。和銷售團隊一樣嗎？您是否能夠將其與您的泵浦業務進行交叉銷售？就像幫助我們了解您如何看待這結果一樣。

Sure. The way that we are running this business is a completely separate job. So we run it in ventures and who's both the leader of business development and M&A as well as the leader of IP, but it's completely separated.

當然。我們經營這項業務的方式是一項完全獨立的工作。因此，我們在創投中經營它，誰既是業務發展和併購的領導者，又是智慧財產權的領導者，但它是完全分開的。

So there is and his team who are based out of we had -- that have their own sales force and therefore is its own business. Now granted, there might be some synergies. So there might be some incentives that you put in place for your comp sales if they are successful in helping VIDAR launch, but it's completely separated.

因此，我們有自己的銷售隊伍，因此有自己的業務。現在可以肯定的是，可能會有一些協同效應。因此，如果您的同店銷售成功幫助 VIDAR 上市，您可能會為他們提供一些激勵措施，但這是完全分開的。

Okay. Understood. I'm sure we'll get more details at Investor Day.

好的。明白了。我相信我們會在投資者日獲得更多細節。

Thank you. Exactly. So, we're waiting to see you there at the customer market at the capital markets day, so.

謝謝。確切地。所以，我們期待在資本市場日的客戶市場上見到您。

Andrew Obin from Bank of America Securities.

美國銀行證券公司的安德魯‧奧賓 (Andrew Obin)。

You have Sabrina Abrams on for Andrew Obin. Apologies, this is going to be a little long, but you've given some helpful color on the bridge from prior guide to the updated guide, which is helpful and you're keeping the 3% to 5% organic with slower economic activity in the second half. And I guess part of this question is, is the $50 million to $60 million of gross tariff impact, is that over the course of the second half of the year, or is that an annualized number?

薩布麗娜·艾布拉姆斯 (Sabrina Abrams) 代替安德魯·奧賓 (Andrew Obin)。抱歉，這會有點長，但您已經為從先前的指南到更新指南的過渡提供了一些有用的說明，這很有幫助，並且您將在下半年經濟活動放緩的情況下保持 3% 到 5% 的有機增長。我想這個問題的一部分是，5000 萬至 6000 萬美元的總關稅影響是在今年下半年產生的，還是一個年度數字？

And I guess, could you just talk about what's embedded in 3% to 5% organic for pricing versus volume and how that's changed? And then, I guess, the $50 million, $60 million, if that's in your number, I think like the annualized price increase needed to offset would be around 2%. So is that the right way of thinking about tariff pricing?

我想，您能否談談 3% 到 5% 的有機成長對於定價和銷售的影響，以及這種影響是如何變化的？然後，我想，如果這是您的數字，那麼 5000 萬美元、6000 萬美元，我認為需要抵消的年化價格漲幅將在 2% 左右。那麼，這是思考關稅定價的正確方式嗎？

Hi, Sabrina. Okay. So the $50 million to $60 million is for the remaining nine months of the year, right? So this is not an annualized impact, just the remaining months. In terms of -- so it's obviously included in the guidance and no net impact because we're expecting to offset, as I mentioned, with commercial actions as well as cost reductions. So that's one. In terms of pricing, yes, you're correct, it's around 2% price increase that we're planning in organic growth of mid-single digits.

你好，薩布麗娜。好的。那麼 5000 萬到 6000 萬美元是用於今年剩下的九個月，對嗎？所以這不是年度影響，只是剩餘月份的影響。就此而言 - 所以它顯然包含在指導中並且沒有淨影響，因為正如我所提到的，我們希望透過商業行動和成本削減來抵消。這就是其中之一。在定價方面，是的，您說得對，我們計劃將價格上漲約 2%，以實現中等個位數的有機增長。

Thank you, and then the short-cycle distribution business in CCT tends to be I guess, a in the coal mine for you in terms of general macro industrial activity. And I just wanted to ask how that business is trending. I understand you've had really great share gains in that business as well, but I want to understand how is that business trending? And then maybe any commentary on the tone you're hearing from your distributors? Are they showing any signs of weakness?

謝謝，那麼我猜，就一般宏觀工業活動而言，CCT 中的短週期分銷業務往往屬於煤礦。我只是想問一下這項業務的趨勢如何。我知道你們在該業務中的份額也獲得了很大的成長，但我想了解該業務的發展趨勢如何？那麼，您對從分銷商聽到的語氣有什麼評論嗎？他們是否表現出任何軟弱的跡象？

Sure, Sabrina. So when you look at the revenue, connectors revenue grew 4% organic. And of course, here, defense and aero were the main contributors. If you want to look at the leading indicators in terms of orders, connectors orders were up 11% year-over-year, and they were up 27% sequentially.

當然，薩布麗娜。因此，當您查看收入時，連接器收入有機增長了 4%。當然，防禦和空氣動力學是主要因素。如果要看訂單方面的領先指標，連接器訂單年增11%，季增27%。

Now a lot of this is a big play is, of course, on -- from the fans. And -- but then if you look at the distribution, you have a distribution orders that year-over-year are down, but it's up sequentially 20% and it's at a very high elevated level. So overall, still a positive picture, I would say.

當然，現在很多大型演出都是由粉絲參與的。但如果你看一下分佈情況，你會發現分銷訂單雖然同比有所下降，但環比增長了 20%，而且處於非常高的水平。所以我認為總體而言，情況仍然是正面的。

Thank you.

謝謝。

Damian Karas from UBS.

瑞銀的 Damian Karas。

Good morning, Damian.

早安，達米安。

Good Morning Damien. Hey, good morning, everyone. Sorry if I missed this, but I wanted to ask about some of the pricing trends that you're seeing in MT. I'm just curious like is there going to be a transient period here in which you're going to maybe get hit with some of these tariff cost headwinds more immediately. And then over time, you'll offset that with price. Or could you just give us a sense like what kind of how pricing is playing out in that market?

早安，達米安。嘿，大家早安。抱歉，如果我錯過了這一點，但我想問一下您在 MT 中看到的一些定價趨勢。我只是好奇，這裡是否會出現一個過渡時期，你可能會更迅速地受到一些關稅成本逆風的打擊。然後隨著時間的推移，你會用價格來抵消這一點。或者您能否讓我們了解一下該市場的定價情況如何？

Sure. So when you look at -- just to talk about the tariffs for a second. Tariff impact is mainly in IP and CCT. There is very minimum tariff impact in Motion Technologies, and very little in friction because we are in the region for the region. And when you're talking about North America, our product are USMCA compliance. So that is on the tariff front.

當然。因此，當您看一下——只需談論一下關稅。關稅影響主要體現在IP和CCT方面。由於我們位於該地區，因此 Motion Technologies 受到的關稅影響非常小，而且摩擦也很小。當您談論北美時，我們的產品符合 USMCA 標準。這就是關稅方面的問題。

I think that when you look at the price cost equation for ITT overall, we are positive in Q1. It would be positive for the full year, both in dollars and margin. And that picture is the same on the Motion Technology side. So the team is able to gain efficiencies through operations as well as sourcing, and granted, we are sharing some of these efficiencies with our customers, but the price cost equation in MT is positive today.

我認為，當您查看 ITT 整體的價格成本方程式時，我們對第一季持積極態度。無論從美元還是利潤率來看，這對全年來說都是有利的。運動技術方面的情況也是一樣的。因此，團隊能夠透過營運和採購來提高效率，並且我們當然會與客戶分享其中的一些效率，但今天 MT 中的價格成本等式是正的。

And as we said in the past, we are focused on making sure that we recover any fluctuations in commodity from our customers. And I think that as the team really progressed in making sure that they quantify those impacts able to go back to customers and get a fair compensation.

正如我們過去所說的那樣，我們專注於確保從客戶那裡恢復任何商品波動。我認為，隨著團隊真正取得進步，他們能夠量化這些影響，從而回饋客戶並獲得公平的補償。

Okay. That's really helpful. And I'm not sure if you talked about it, but could you just give us a little bit better sense on what's going on with Svanehoj and what's driving all the strength in the 2 times book-to-bill and orders up 70%.

好的。這真的很有幫助。我不確定您是否談論過這個問題，但您能否讓我們更好地了解 Svanehoj 的情況，以及訂單出貨比翻兩倍和訂單增長 70% 的動力是什麼。

Sure. When we cultivated Svanehoj, when decided to acquire Svanehoj, we saw the opportunity in market growing substantially in the foreseeable future. And so there is definitely a trend there due to the market they're operating in, in terms of the marine market and the shift to green energy. So there is a market component to it.

當然。當我們培育 Svanehoj、決定收購 Svanehoj 時，我們看到了在可預見的未來市場大幅成長的機會。因此，就他們所處的市場而言，在海洋市場和向綠色能源的轉變方面，肯定存在著一種趨勢。因此這其中有市場因素。

But I would say also that the good quality product, the great performance and Søren and the team together with Glenn and everybody is delivering to the customers on-time performance, et cetera, enable them to win market share.

但我也想說，優質的產品、出色的性能以及 Søren 和團隊以及 Glenn 以及每個人都按時向客戶提供服務等，使他們贏得了市場份額。

And they are seen as leaders in three of the sectors they're operating in. So market plus performance are delivering these exceptional results. You may remember that after the acquisition, we also committed to probably a double-digit growth for Svanehoj for the next few years. And this is what we are seeing and the orders will continue to deliver that.

他們被視為其所經營的三個領域的領導者。因此，市場加上業績正在帶來這些卓越的成果。您可能還記得，收購後，我們還承諾在未來幾年內 Svanehoj 可能會實現兩位數的成長。這就是我們所看到的，訂單將繼續實現這一點。

Yeah. It seems like that deal is certainly bearing fruit. Best of luck.

是的。看起來這筆交易確實有了成果。祝你好運。

Thank you, Damien Chow.

謝謝你，Damien Chow。

Joseph Giordano from TD Cowen.

TD Cowen 的 Joseph Giordano。

Hey guys, this is Michael on for Joe.

嘿，大家好，我是邁克爾，為喬報道。

Hi Michael.

你好，麥可。

You mentioned earlier about connector strength, and I know some people have been kind of contemplating a prebuy. If there's any kind of color there that would be certainly helpful in the end market dynamics at play as well? I would appreciate it.

您之前提到了連接器強度，我知道有些人一直在考慮預購。如果存在任何一種顏色，那麼對最終的市場動態肯定也會有幫助嗎？我將非常感激。

Yeah, Michael. So we are not aware of any prebuy. When we look at our distributor inventory, it is not excessive. The point-of-sale information is also healthy. So there's nothing that really points to a pre-buy. What's really difficult to understand is that you may have inventory built up at our customers' customers, and that's before the end customer, right? So there may be that possibility.

是的，邁克爾。所以我們不知道有任何預購。當我們查看分銷商庫存時，我們發現庫存並不過多。銷售點資訊也很健康。因此，沒有任何跡象表明存在預購行為。真正難以理解的是，您可能在我們客戶的客戶那裡累積了庫存，而這還是在最終客戶之前，對嗎？所以可能存在這種可能性。

So we do everything we can to understand the situation from a distribution standpoint. One thing that I wanted to highlight, unrelated to tariffs, but we do see evidence of excess inventory in aerospace. And so we are working with our Tier 1s and also our the airframers to make sure that they address the situation and that we continue to be good partners to them.

因此，我們盡一切努力從分銷的角度了解情況。我想強調的一點是，與關稅無關，但我們確實看到了航空航天庫存過剩的證據。因此，我們正在與我們的一級供應商以及飛機製造商合作，以確保他們解決這個問題，並確保我們繼續成為他們的良好合作夥伴。

Great. That's helpful. Actually another question I had, too. I know you mentioned you saw down low -- or excuse me, mid-teens in the quarter. My understanding, if I remember correctly, there was supposed to be like an OE ramp in 2Q. Does this destocking dynamic for A&D change that ramp timing? Any time that you guys are mostly levered to widebody, but any color there would be great.

偉大的。這很有幫助。實際上我還有另一個問題。我知道您提到過，您看到了本季度的低點——或者對不起，十幾歲的水平。我的理解是，如果我沒記錯的話，第二季應該會有一個 OE 坡道。A&D 的去庫存動態是否會改變成長時機？任何時候你們大多會選擇寬體飛機，但任何顏色都很好。

Thank you. Yeah, so we expect in the second half sequentially aerospace orders to pick up. They're still going to be slightly down versus the prior year.

謝謝。是的，因此我們預計下半年航空航天訂單將環比回升。與上年相比仍會略為下降。

And then if you look at the if you look at the full year, we expect our orders to be slightly up, so a recovery in the second half. So we're going to see improvements in the second quarter, continue to improve in the third and in the fourth, and then they're going to start converting into revenue probably in the in the second half.

如果你看一下全年情況，我們預計我們的訂單會略有上升，因此下半年會出現復甦。因此，我們將在第二季看到改善，並在第三季和第四季繼續改善，然後可能在下半年開始轉化為收入。

Great, thanks guys.

太好了，謝謝大家。

Nathan Jones from Stifel.

來自 Stifel 的 Nathan Jones。

This is Adam Farley on for Nathan. One more on tariffs. So your largest exposure to tariffs is in CCT. What are the primary components that are being exposed there? And do you have confidence in dual sourcing there or finding new sources of supply?

亞當法利 (Adam Farley) 代替內森 (Nathan)。再談關稅。因此，您受到的關稅影響最大的是 CCT。那裡暴露的主要部件是什麼？您對在那裡進行雙重採購或尋找新的供應源有信心嗎？

So, when we look at CCT, is the main exposure there is the trade between Mexico and the US That is mainly because there are many things that are going from the US to Mexico, Mexico to US So we are talking mainly about connectors. And in most of the cases, those are USMCA products. And when it's not, we are able to act on a pricing side. And this is in CCT through distribution is also where we have more pricing power. So it's not so much a resourcing strategy when it comes to CCT and connectors as much as a commercial action.

因此，當我們看 CCT 時，主要關注的是墨西哥和美國之間的貿易，這主要是因為有很多東西從美國運往墨西哥，再從墨西哥運往美國，所以我們主要討論的是連接器。大多數情況下，這些都是 USMCA 產品。如果不是，我們可以在定價方面採取行動。而且透過分銷，我們在 CCT 中也擁有更大的定價權。因此，就 CCT 和連接器而言，這與其說是一種資源策略，不如說是一種商業行動。

Okay. That's helpful. And then just maybe high level, I mean, are you actually seeing any signs of customers deferring their capital investment decisions? Or is it more just caution on the back half? And I'll leave it there.

好的。這很有幫助。然後也許只是高層，我的意思是，您是否真的看到任何跡象表明客戶推遲了他們的資本投資決策？還是只是對後半部分更加謹慎？我就把它留在那裡。

Sure. I would say, no, we do not see those kind of things. Sure, you might have one project or two that have shifted to the right. but not to call it a trend. And you see it in the orders of the project, which were up 47%. And the funnel of opportunity in IP is actually staying at elevated level. It's practically flat sequentially.

當然。我想說，不，我們沒有看到這樣的事情。當然，你可能有一個或兩個項目向右移動。但不能稱之為趨勢。你可以從項目訂單中看到這一點，訂單增加了 47%。而智慧財產權的機會漏斗其實仍處於較高水準。它實際上是連續持平的。

And there are some regions like Europe, Middle East and Asia Pacific, where actually the funnel is up. So, so far, we really haven't seen major shift to the right. Just a couple of examples, and that's it.

而在歐洲、中東和亞太等一些地區，漏斗其實是向上的。所以，到目前為止，我們還沒有看到向右的重大轉變。僅舉幾個例子，僅此而已。

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

謝謝。今天的電話會議到此結束。此時請斷開您的線路，祝您有美好的一天。