ITT Inc (ITT) 2025 Q2 法說會逐字稿

Welcome to ITT's 2025 second-quarter conference call. Today is Thursday, July 31, 2025. Today's call is being recorded and will be available for replay beginning at 12:00 PM Eastern Time. (Operator Instructions)

歡迎參加 ITT 2025 年第二季電話會議。今天是 2025 年 7 月 31 日，星期四。今天的通話將被錄音，並將於美國東部時間中午 12:00 開始重播。（操作員指示）

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 Mark Macaluso。你可以開始了。

Thank you, Bella, 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 three-month period ended June 28, 2025.

謝謝你，貝拉，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 6 月 28 日的三個月的財務表現。

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 second-quarter results we present this morning will be compared to the second 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二季業績將與 2024 年第二季進行比較，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 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. I'd like to begin, as always, with a heartfelt thank you to all our ITTers. We could not have delivered these results without each and every one of you and your hard work. I'm humbled by our team's ability to achieve such strong performance once again.

謝謝你，馬克，早安。像往常一樣，我首先要向我們所有的 ITT 員工表示衷心的感謝。如果沒有你們每個人的辛勤工作，我們就不可能有這些成果。我對我們團隊能夠再次取得如此出色的表現感到榮幸之至。

In May, we were fortunate to see many of you at our Capital Markets Day in New York City. There, we showcased ITT's enterprise strategy and value creation pillars: first, organic growth and margin expansion; second, the compounding with M&A. And when you look at our second quarter results, you see all of this value creation in action.

五月份，我們很榮幸在紐約資本市場日上見到了你們中的許多人。在那裡，我們展示了 ITT 的企業策略和價值創造支柱：首先，有機成長和利潤擴張；其次，透過併購實現複合成長。當您查看我們第二季的業績時，您會看到所有這些價值創造都在發揮作用。

Let me share some highlights. In Q2, we delivered $1 billion of orders, up 16% total and 13% organic, as all our businesses delivered a strong order intake, bolstered by the kSARIA and Svanehøj acquisitions. We generated record quarterly revenue of more than $970 million, up 7% total and 4% organic, with all segments contributing.

讓我分享一些亮點。在第二季度，我們交付了價值 10 億美元的訂單，總額增長 16%，有機增長 13%，這得益於我們所有業務的訂單量強勁增長，並得益於 kSARIA 和 Svanehøj 收購。我們創造了創紀錄的季度收入，超過 9.7 億美元，整體成長 7%，有機成長 4%，所有部門都做出了貢獻。

Operating income grew more than twice the organic sales growth rate, and operating margin expanded over 100 basis points excluding M&A. Our profitable growth and continued operational improvements resulted in adjusted EPS growth of 10% or 16% excluding the Wolverine divestiture.

營業收入成長是有機銷售額成長率的兩倍多，不包括併購，營業利潤率擴大了 100 個基點以上。我們的獲利成長和持續的營運改善導致調整後的每股盈餘成長 10% 或 16%（不包括 Wolverine 資產剝離）。

Finally, we grew free cash flow to $214 million year-to-date, making significant progress to nearly $0.5 billion for the full year. Furthermore, free cash flow margin was 14% in Q2. To round out the highlights, we repurchased $500 million of ITT shares year-to-date, reaffirming our confidence in the long-term outlook of ITT, and lowering our weighted average share count by 3%.

最後，今年迄今為止，我們的自由現金流已成長至 2.14 億美元，全年取得了重大進展，達到近 5 億美元。此外，第二季自由現金流利潤率為 14%。為了完善亮點，我們今年迄今已回購了價值 5 億美元的 ITT 股票，重申了我們對 ITT 長期前景的信心，並將加權平均股數降低了 3%。

As you can see, a strong performance in Q2 built on ITT's pillars of value creation, organic growth, and margin expansion, compounded now with M&A as we laid out at Capital Markets Day. Now let's get into the details.

如您所見，第二季的強勁表現建立在 ITT 的價值創造、有機成長和利潤率擴張等支柱之上，現在又加上了我們在資本市場日列出的併購。現在讓我們來了解一下細節。

Orders, definitely one of the highlights of the quarter. Industrial Process grew 22%, driven by strength in Goulds Pumps and Svanehøj. Notably, in the first six months of 2025, Svanehøj holders of nearly $200 million were above their full-year 2024 revenue, a strong first half to say the least.

訂單絕對是本季的亮點之一。工業流程業務成長了 22%，這得益於 Goulds Pumps 和 Svanehøj 的強勁表​​現。值得注意的是，2025 年上半年，Svanehøj 持有的近 2 億美元收入高於其 2024 年全年收入，至少可以說是強勁的上半年。

Furthermore, Bornemann won large awards on leading energy projects with two oil majors in Australia and the Middle East. The former, in one of the world's largest LNG fields, where Bornemann again thanks to our superior technology, our customer service, and our execution on the current pump project.

此外，Bornemann 還在與澳洲和中東兩家石油巨頭合作的領先能源項目中贏得了巨額獎項。前者位於世界上最大的液化天然氣田之一，Bornemann 再次感謝我們卓越的技術、客戶服務以及我們在目前泵浦項目中的執行。

The latter, at an onshore oil field in the UAE, where our customers standardize on Bornemann's twin-screw pumps based on the performance track record of our existing solutions. And this is despite aggressive pricing by our competition during the bidding phase. Well done, [Jeroen] and Bornemann team.

後者位於阿聯酋的陸上油田，我們的客戶根據我們現有解決方案的性能記錄對 Bornemann 的雙螺桿泵進行標準化。儘管我們的競爭對手在投標階段提出了激進的定價，但我們仍取得了這樣的成績。幹得好，[Jeroen] 和 Bornemann 團隊。

Moving to Connect and Control, we grew 9% organic, driven by defense and commercial aerospace awards and grew total orders 36%. kSARIA continued to secure content on coveted defense platform, such as the Abrams tank and the battlefield communications program. As a result, their orders grew more than 25% this quarter.

在連結與控制領域，我們實現了9%的有機成長，這主要得益於國防和商用航空航太合約的推動，總訂單量也成長了36%。 kSARIA繼續確保令人垂涎的國防平台上的內容安全，例如艾布拉姆斯坦克和戰場通訊計畫。結果，本季他們的訂單增加了25％以上。

I was fortunate to be at kSARIA headquarters in New Hampshire with Michael and the leadership team to work together on executing our commercial synergies. The team successfully replaced a competitor's connector with our Cannon HDx on an important existing kSARIA platform. And there are many more still to capture.

我很榮幸能夠與邁克爾和領導團隊一起來到新罕布夏州的 kSARIA 總部，共同實現我們的商業協同效應。該團隊成功地在重要的現有 kSARIA 平台上用我們的 Cannon HDx 替換了競爭對手的連接器。還有很多尚未捕獲。

In Motion Technologies, the Friction team won 49 new electrified platform award, with leading OEMs in China, Europe, and North America, including Zeekr, Chery, BYD, and Mercedes-AMG. And in KONI, once again, we saw strong orders across the board, mainly driven by rail and defense, including a notable win on a prominent US battle vehicle.

在Motion Technologies領域，Friction團隊斬獲49個全新電動平台獎項，合作廠商包括Zeekr、奇瑞、比亞迪、梅賽德斯-AMG等中國、歐洲、北美的領先OEM廠商。在 KONI 方面，我們再次看到了全面的強勁訂單，主要來自鐵路和國防領域，其中包括一款著名美國戰車的顯著訂單。

All in, our book-to-bill of 1.1 resulted in ending backlog of nearly $2 billion, up 34% versus prior year and up 9% sequentially. On revenue, we saw a broad-based organic growth across all segments as we work to convert our robust backlog. IP grew 5% organically on project strength. Svanehøj also delivered strong top-line performance, growing 43%.

總體而言，我們的訂單出貨比為 1.1，最終積壓訂單金額接近 20 億美元，比上年增長 34%，比上一季增長 9%。在收入方面，隨著我們努力轉化大量積壓訂單，我們看到所有部門都實現了廣泛的有機成長。IP 在專案強度上有機成長了 5%。Svanehøj 的營收表現也十分強勁，成長了 43%。

CCT grew 4% organically as defense momentum continues and aerospace demand improves. And in MT, Friction OE grew 7% organically, continued to outperform global auto production in all geographies. On profitability, we continue to expand margin, growing 30 basis points after overcoming headwinds from temporary M&A amortization and foreign currency transaction costs.

隨著國防勢頭持續和航空航天需求改善，CCT 有機增長了 4%。在 MT 地區，Friction OE 有機成長了 7%，繼續超越所有地區的全球汽車產量。在獲利能力方面，我們繼續擴大利潤率，在克服臨時併購攤銷和外幣交易成本帶來的阻力後，利潤率增加了 30 個基點。

IP grew margin 100 basis points to nearly 22%, driven by volume, productivity, and price. The Svanehøj team also drove improvements in profitability as they are efficiently ramping up production capacity. MT grew margin by 140 basis points, driven by productivity savings and this, after offsetting 100 basis points of unfavorable FX impact. And finally, CCT grew margin 270 basis points, excluding M&A dilution. This was driven mainly by strategic pricing actions, with two additional customer price negotiations closed this quarter.

受產量、生產率和價格的推動，IP 利潤率成長了 100 個基點，達到近 22%。Svanehøj 團隊也透過有效提高生產能力來提高獲利能力。在抵銷了 100 個基點的不利外匯影響後，受生產力節約的推動，MT 的利潤率成長了 140 個基點。最後，不包括併購稀釋，CCT 的利潤率增加了 270 個基點。這主要受到策略性定價行動的推動，本季又完成了兩筆客戶價格談判。

On capital deployment, an incredibly strong cash performance, which put us in a position to act quickly to repurchase $400 million of ITT shares in April and May alone. And on M&A, we continue to progress several acquisition targets of size through the funnel, building our M&A muscle that will drive the next leg of value creation for ITT.

在資本配置方面，現金表現異常強勁，這使我們能夠迅速採取行動，僅在 4 月和 5 月就回購了價值 4 億美元的 ITT 股票。在併購方面，我們持續透過通路推動幾個較大的收購目標，打造我們的併購實力，推動 ITT 的下一階段價值創造。

Lastly, on the outlook, given our strong first outperformance, ramping contribution from acquisition, and a less volatile environment, we are raising our full-year adjusted EPS outlook to $6.45 at the midpoint, amounting to 10% growth versus prior year or 13% growth if we exclude the lost earnings from our 2024 Wolverine divestiture.

最後，展望未來，鑑於我們強勁的首次表現、收購帶來的貢獻不斷增加以及波動性較小的環境，我們將全年調整後每股收益預期中位數上調至 6.45 美元，相當於比上年增長 10%，如果不包括 2024 年 Wolverine 資產剝離造成的收益損失，則增長 13%。

This is a testament to our team's ability to deliver day in and day out for our customers and our shareholders, no matter the environment. Emmanuel will talk more about our revised guidance shortly. Now let's spend a few moments discussing our 2025 Capital Markets Day and a few examples of how, in Q2, we differentiated through execution, innovation, and M&A.

這證明了我們的團隊無論在何種環境下都能日復一日地為客戶和股東提供服務的能力。伊曼紐很快就會詳細介紹我們修訂後的指南。現在，讓我們花點時間討論一下我們的 2025 年資本市場日，以及一些我們在第二季度如何透過執行、創新和併購實現差異化的例子。

First, on execution. In our engineered valves business, thanks to the value of our patented and vision technology and the impeccable service we are providing to a large biopharma customer, our team is expected to double the size of the previous valve order to roughly $50 million.

第一，關於執行。在我們的工程閥門業務中，由於我們的專利和視覺技術的價值以及我們為大型生物製藥客戶提供的無可挑剔的服務，我們的團隊預計將先前的閥門訂單規模擴大一倍至約 5000 萬美元。

Next, Friction China. To industrialize the new award that (inaudible) the China team won in the last 18 months, we performed more than 150 process validations in Q2. This means that the team had to stop production lines two times per day to run more test batches of the newly awarded (inaudible). And despite of this, our overall plant efficiency in Wuxi was more than 90% in Q2. Well done, Friction.

接下來是摩擦中國。為了使中國團隊在過去 18 個月內獲得的新獎項（聽不清楚）實現工業化，我們在第二季進行了 150 多次工藝驗證。這意味著團隊每天必須停止生產線兩次，以運行更多新獲獎產品的測試批次（聽不清楚）。儘管如此，我們無錫工廠第二季的整體效率仍超過 90%。幹得好，摩擦。

Next, on innovation. At Capital Markets Day, you heard us talk about the geopolymers, the next breakthrough material science in brake pads at ITT. In Barge, Italy, I was fortunate to see the production line with design that will make the geopolymer. We have the product, we have the manufacturing technology, and we have a customer. Today, we are one step closer to the commercialization of this unique and patented technology.

接下來，關於創新。在資本市場日，您聽到我們談論地質聚合物，這是 ITT 煞車片領域的下一個突破性材料科學。在義大利的巴赫，我有幸看到了生產土工聚合物的生產線設計。我們有產品，有製造技術，也有客戶。今天，我們距離這項獨特的專利技術的商業化又更近了一步。

Then in Svanehøj, we recently launched our new high-pressure fuel pump. The lab testing demonstrated this new pump will outlast our competitors' product. It has been running on an operating vessel since March, and the second pump will be installed on another vessel in August. This type of innovation for harsh environment will sustain Svanehøj's share gain momentum.

然後在 Svanehøj，我們最近推出了新的高壓燃油泵。實驗室測試表明，這種新泵浦的使用壽命將比我們競爭對手的產品更長。該泵浦自三月起已在一艘營運船上運行，第二台泵浦將於八月安裝在另一艘船上。這種針對惡劣環境的創新將維持 Svanehøj 的份額成長動能。

Last but not least, VIDAR, our revolutionary compact motor that embeds variable speed capabilities to deliver energy efficiency and better reliability for our customers. At our launch event in June in Houston, we secured strategic wins. And now we have deployed VIDAR in trials at two of the world's largest oil companies. The team already secured more than $1 million in orders, and last week, we started shipping.

最後但同樣重要的是，VIDAR，我們革命性的緊湊型電機，嵌入了變速功能，為我們的客戶提供能源效率和更好的可靠性。在六月於休士頓舉行的記者會上，我們取得了戰略勝利。目前，我們已經在全球兩家最大的石油公司試驗中部署了 VIDAR。該團隊已經獲得了超過 100 萬美元的訂單，並且上週我們開始發貨。

Finally, on M&A, we are still early on our M&A journey. But the success with Habonim, Svanehøj, and kSARIA is promising, as Bartek shared at Capital Markets Day. We continue to progress acquisition targets through the funnel with rigor and a disciplined framework for deal selection, execution, and integration.

最後，關於併購，我們的併購之旅還處於早期階段。但正如 Bartek 在資本市場日分享的那樣，Habonim、Svanehøj 和 kSARIA 的成功令人鼓舞。我們將繼續透過嚴謹的交易選擇、執行和整合框架來推進收購目標。

Now with all of this in mind, let me reiterate our 2030 financial targets on slide 4. We expect to drive more than 5% organic revenue growth and approximately 10% growth in total on an average annual basis. Margin is expected to reach 23%, representing over 500 basis points of expansion compared to 2024.

現在考慮到所有這些，請允許我在第 4 張投影片上重申我們的 2030 年財務目標。我們預計年均有機收入將成長 5% 以上，總收入將成長約 10%。預計利潤率將達到 23%，與 2024 年相比成長 500 個基點以上。

This will drive more than $11 of adjusted EPS from our existing businesses and more than $12 including anticipated M&A. And free cash flow margin should reach 14% to 15%. As you can see, we have now started our journey towards this target, and Q2 was a very good first step in that direction.

這將推動我們現有業務的調整後每股收益超過 11 美元，如果包括預期的併購，則將超過 12 美元。自由現金流利潤率應達14%至15%。如您所見，我們現在已經開始朝著這個目標邁進，而第二季度是朝著這個方向邁出的非常好的第一步。

Now let me turn the call over to Emmanuel to discuss our Q2 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二季業績。

Thank you, Luca, and good morning. As you can see, ITT delivered another strong performance in the second quarter. We saw a step-up in nearly every financial metric while also putting a significant amount of capital to work earlier in the quarter. Let's talk about some of the many highlights.

謝謝你，盧卡，早安。如您所見，ITT 在第二季度再次表現強勁。我們看到幾乎所有財務指標都有所提升，同時在本季度早些時候投入了大量資金。讓我們來談談其中的一些亮點。

On revenue, all segments contributed to the performance, growing 7% in total and 4% organically. Industrial Process led the way with 5% organic growth on the strength of the project business. And from an orders perspective, we saw growth in every short-cycle product category this quarter, leading to a book-to-bill of 1.2.

就收入而言，所有部門都對業績做出了貢獻，整體成長了 7%，有機成長了 4%。工業流程憑藉著專案業務的強勁成長，實現了 5% 的有機成長，處於領先地位。從訂單角度來看，本季我們看到每個短週期產品類別都有成長，訂單出貨比達到 1.2。

CCT grew 4% organically with strength in both aerospace and defense, and grew revenue over 30% in total, including kSARIA. Organic orders growth was also strong at 9%, led by commercial aerospace and defense awards on coveted platforms.

CCT 在航空航太和國防領域的強勁表現推動下實現了 4% 的有機成長，包括 kSARIA 在內的總收入成長超過 30%。有機訂單成長也強勁，達到 9%，其中，商業航空航太和國防領域令人垂涎的平台訂單成長最為強勁。

Finally, in Motion Technologies, our rail business grew 10%, driven by share gains in KONI. Friction OE outperformed global auto production by over 500 basis points, growing 7%, led once again by our differentiation in China and strong execution in Europe and North America. Friction's performance has been remarkable in what continues to be a highly competitive global automotive market.

最後，在 Motion Technologies 方面，我們的鐵路業務成長了 10%，這得益於 KONI 的份額成長。摩擦原廠配件的業績比全球汽車產量高出 500 個基點，成長 7%，這再次得益於我們在中國的差異化以及在歐洲和北美的強勁執行力。在競爭持續激烈的全球汽車市場中，Friction 的表現令人矚目。

On profitability, we grew operating margin 30 basis points to 18.4% on higher volumes, pricing actions, including related to tariffs, and continued operational improvements, more than offset the unfavorable foreign currency transaction impact, stemming from a weaker US dollar and the impact of temporary acquisition amortization from kSARIA.

在獲利能力方面，由於銷售增加、定價行動（包括與關稅相關的行動）以及持續的營運改進，我們的營業利潤率提高了 30 個基點，達到 18.4%，這足以抵消因美元走弱和 kSARIA 臨時收購攤銷的影響而產生的不利外匯交易影響。

At this point, the temporary amortization from Svanehøj has ceased, and it will end for kSARIA in Q4. Notably, in MT, [Yaron] and the KONI team delivered outstanding profitability, which is driving MT above 20% margin. The revenue growth and continued margin expansion drove adjusted EPS to $1.64, up 10% year over year and up 13% sequentially. If you exclude the loss of earnings from our 2024 divestiture of Wolverine, EPS growth in Q2 would be 16% year over year.

此時，Svanehøj 的臨時攤銷已停止，kSARIA 的臨時攤銷將於第四季結束。值得注意的是，在 MT 領域，[Yaron] 和 KONI 團隊實現了出色的獲利能力，推動 MT 的利潤率超過 20%。營收成長和利潤率持續擴大推動調整後每股收益達到 1.64 美元，年增 10%，季增 13%。如果排除我們 2024 年剝離 Wolverine 所造成的收益損失，第二季的每股盈餘成長率將達到 16%。

Finally, on cash, the teams drove strong cash collections while making progress on managing inventory and executing customer advances in the project business. These actions pushed free cash flow margin in the quarter to 14%, while still funding further strategic CapEx toward innovation and productivity to ensure performance will continue.

最後，在現金方面，團隊在管理庫存和執行專案業務中的客戶預付款方面取得進展的同時，推動了強勁的現金收集。這些措施將本季的自由現金流利潤率推高至 14%，同時仍為創新和生產力提供進一步的策略資本支出，以確保業績持續成長。

We are driving improvements in working capital, especially in MT, and leveraging the learnings from Svanehøj, whose working capital as a percentage of sales is just 9%. We also repurchased $0.5 billion of ITT shares through May, which lowered our weighted average share count by 3%. All in, a very strong high-quality performance across the board.

我們正在推動營運資本的改善，特別是在 MT 方面，並利用 Svanehøj 的經驗，其營運資本佔銷售額的比例僅為 9%。截至 5 月份，我們也回購了價值 5 億美元的 ITT 股票，這使我們的加權平均股數降低了 3%。整體而言，各方面表現都非常出色，品質也很高。

Let's quickly turn to the Q2 adjusted EPS bridge on slide 6. The key takeaway here is that the strong operational performance across our businesses, contributions from our acquisitions, and a lower share count enabled us to grow EPS for overcoming temporary M&A amortization impacts and favorable foreign currency transaction costs, higher interest expense, and the lost earnings from the Wolverine divestiture. Excluding the divestiture, adjusted EPS would be up 16%.

讓我們快速轉到投影片 6 上的 Q2 調整後 EPS 橋接器。這裡的關鍵點是，我們各項業務的強勁營運表現、收購帶來的貢獻以及較低的股份數量使我們能夠克服暫時的併購攤銷影響和有利的外匯交易成本、更高的利息支出以及 Wolverine 資產剝離造成的收益損失，從而實現每股收益增長。不計資產剝離，調整後的每股盈餘將成長 16%。

Now let's move to slide 7 to discuss our revised 2025 guidance. After a strong first-half performance during which we grew new expanded margin, repurchased $500 million of ITT shares, we are raising our total revenue and adjusted EPS outlook for 2025. On revenue, our total growth is now expected to be slightly higher to 5% to 7%, given the tailwind from foreign currency compared to our assumptions at the beginning of the year, while organic revenue remains within our original range of 3% to 5%.

現在讓我們轉到第 7 張投影片來討論我們修訂後的 2025 年指引。在上半年業績表現強勁之後，我們實現了新的利潤成長，回購了價值 5 億美元的 ITT 股票，我們正在提高 2025 年的總收入和調整後的每股盈餘預期。在收入方面，考慮到外匯的順風，與年初的假設相比，我們目前預計的總成長率將略高至 5% 至 7%，而有機收入仍保持在我們最初的 3% 至 5% 的範圍內。

Our visibility to a strong second half is improving given the Q2 execution and the better-than-expected backlog position. We expect continued growth in the project business in IP, firm demand in aerospace and defense, and outperformance in Friction OE and rail to continue in the second half.

鑑於第二季的執行情況和好於預期的積壓情況，我們對下半年強勁表現的預見性正在提高。我們預計，下半年智慧財產權計畫業務將持續成長，航空航太和國防領域的需求將保持強勁，摩擦原廠配件和鐵路領域也將維持優異表現。

On margin, we are narrowing adjusted operating margin to approximately 18.4% at the midpoint, up 60 basis points versus prior year. We expect this improvement will be driven by continued productivity in the legacy businesses and significant margin expansion in our acquisitions through year-end.

在利潤率方面，我們將調整後的營業利潤率縮小至中間值約 18.4%，較上年上升 60 個基點。我們預計，這項改善將得益於傳統業務的持續生產力以及年底前收購帶來的利潤率大幅提升。

In addition, we are driving considerable pricing, particularly in CCT. Excluding M&A, we expect margin expansion to be more than 100 basis points for the year. On EPS, we are raising the midpoint of our guidance by $0.15 to $6.45, a step change in our EPS outlook for the year, with a $0.25 increase at the low end and $0.05 improvement at the high end.

此外，我們正在推動相當可觀的定價，特別是在 CCT 方面。不計併購，我們預計今年的利潤率成長將超過 100 個基點。對於每股收益，我們將預期中位數上調 0.15 美元至 6.45 美元，這是我們對今年每股收益預期的一個重大變化，最低上調 0.25 美元，最高上調 0.05 美元。

This is due to improved productivity and FX benefits, partially offset by unfavorable mix and higher M&A-related costs. On cash, higher operating income and improving working capital puts us in a position to deliver close to $0.5 billion of free cash flow this year.

這是由於生產力提高和外匯收益增加，但被不利的產品組合和更高的併購相關成本部分抵消。在現金方面，更高的營業收入和不斷改善的營運資本使我們今年能夠實現近 5 億美元的自由現金流。

Next, I would like to spend a moment addressing our updated assumptions on tariffs. Given the current economic landscape and status of negotiations with key US trade partners, we now estimate the gross tariff costs before mitigation to be approximately $25 million in 2025, half our previous estimate. We are offsetting this with pricing and productivity actions. And as such, there is no material impact expected in 2025.

接下來，我想花點時間談談我們對關稅的最新假設。鑑於目前的經濟狀況和與美國主要貿易夥伴的談判狀況，我們目前估計，到 2025 年，減免關稅前的總關稅成本約為 2,500 萬美元，是我們先前估計的一半。我們正在透過定價和生產力行動來抵消這一影響。因此，預計 2025 年不會產生重大影響。

Briefly looking ahead to Q3, we expect double-digit growth in revenue or low single-digit growth on an organic basis, led by Industrial Process, and Connect and Control. Friction will once again outperform global auto production, while strength in rail should continue, driving MT to end roughly flat for the quarter.

簡要展望第三季度，我們預期營收將實現兩位數成長或低個位數有機成長，主要由工業流程、連接和控制推動。摩擦產量將再次超過全球汽車產量，而鐵路產量將繼續保持強勁，推動 MT 產量在本季基本持平。

Operating margin will be up slightly year over year, led by continued margin expansion at IP and MT. In CCT, pricing and productivity will only partially offset the temporary amortization from kSARIA, while total corporate costs will increase slightly compared to Q2 due to anticipated M&A-related costs. All this should result in EPS representing low teens growth year over year, slightly above the second quarter.

營業利益率將較去年同期略有上升，主要得益於IP和MT利潤率的持續擴大。在 CCT 中，定價和生產力只能部分抵銷 kSARIA 的臨時攤銷，而由於預期的併購相關成本，企業總成本將與第二季相比略有增加。所有這些都將導致每股盈餘同比呈現低十幾個百分點的成長，略高於第二季。

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

現在，讓我將電話轉回盧卡來結束演講。

Thanks, Emmanuel. A few points before Q&A. Our Q2 performance is a great first step towards our long-term commitments. We keep on driving the organic value creation through growth and margin expansion. All our businesses grew organically, and we saw strong margin expansion in many parts of the portfolio.

謝謝，伊曼紐。在問答之前有幾點需要注意。我們第二季的業績是我們實現長期承諾的重要第一步。我們不斷透過成長和利潤擴張來推動有機價值創造。我們的所有業務都實現了有機成長，並且投資組合的許多部分的利潤率都實現了強勁增長。

And as I said at Capital Markets Day, this is here to stay. On the inorganic front, our acquisitions are performing well and over-delivering on their commitments. Cash continues to ramp towards an expected $0.5 billion of free cash flow this year, with a 14% free cash flow margin in Q2.

正如我在資本市場日所說的那樣，這種情況將會持續下去。在無機方面，我們的收購表現良好，超額履行了承諾。現金持續增加，預計今年自由現金流將達到 5 億美元，第二季自由現金流利潤率為 14%。

And lastly, as a result of all of this, we raised the midpoint of our full-year EPS outlook by $0.15. It is ITT's differentiation through execution, innovation, and now M&A that will ensure the value creation continues. As you can see, it was a strong quarter on all fronts, fully aligned to the value-creation pillars we laid out at Capital Markets Day.

最後，基於以上所有因素，我們將全年每股盈餘預期中位數上調了0.15美元。 ITT透過執行力、創新以及如今的併購，實現了差異化，這將確保其價值創造的持續性。如您所見，本季各方面表現強勁，完全符合我們在資本市場日提出的價值創造支柱。

Thank you for joining ITT today. As always, it has been my pleasure to speak with you. Bella, please open the line for Q&A.

感謝您今天加入 ITT。像往常一樣，我很高興與您交談。貝拉，請開通問答專線。

(Operator Instructions) Mike Halloran, Baird.

（操作員指示）麥克·哈洛倫，貝爾德。

Hey, thanks for taking the questions. So first, maybe just get some thoughts on what you're seeing on the capital side of things, capital equipment, larger projects, not specifically to any segment.

嘿，謝謝你回答這些問題。因此，首先，也許只是對您在資本方面所看到的情況、資本設備、大型專案有一些想法，而不是具體針對任何部分。

Did you see any pause in the second quarter? Obviously, the orders are pretty good. I know the short cycle piece was up across all segments. Any signs of hesitancy or pushouts or any change in the forward-thought process from your customers anywhere?

您看到第二季有任何停頓嗎？顯然，訂單情況相當不錯。我知道短週期片段在所有片段中都有出現。您的客戶是否有猶豫、延遲或前瞻性思考過程發生任何變化的跡象？

Hi, Mike. Thanks for the question. Yes, when you look at our performance in terms of orders, it has been remarkable. And of course, there is a lot of market share gains in there. When you look at the projects, even on the legacy business, going up 22% year over year. It was not an easy compare when you look at 2024.

你好，麥克。謝謝你的提問。是的，從訂單方面來看我們的表現非常出色。當然，這也意味著市場佔有率的大幅成長。如果你看一下這些項目，你會發現即使是遺留業務，其項目數量也比去年同期成長了 22%。當你展望 2024 年時，這並不是一個容易的比較。

So -- and then you look at the Svanehøj performance of the orders year-to-date for the six months, which is equivalent to their 2024 full-year revenue. So definitely a great performance on the orders front. Now when we look at the funnel, the funnel is still elevated. It's down year over year, but this is because of really a tough compare.

那麼 — — 然後你看看 Svanehøj 今年迄今為止六個月的訂單表現，這相當於他們 2024 年全年的收入。因此，訂單方面的表現絕對非常出色。現在，當我們查看漏斗時，漏斗仍然處於升高狀態。與去年同期相比有所下降，但這是因為比較起來確實很困難。

So we haven't seen any major shift -- and we have seen probably just a couple of orders that shifted to the right. But no major change that will make us concerned right now. So when we look at the orders, very strong. You were talking about market, very strong on the oil and gas, a very strong also in the general industry.

因此，我們還沒有看到任何重大的轉變——我們可能只看到幾個向右移動的訂單。但目前還沒有什麼重大變化令我們擔憂。因此，當我們查看訂單時，發現訂單非常強勁。您談到了市場，石油和天然氣市場非常強勁，一般工業市場也非常強勁。

That's helpful. And then maybe can you just give your latest view on what you see the auto landscape developing is? And obviously, the outperformance in this quarter, and well, the ones that come out of stock really is incredible. So maybe talk about what you're assuming on that side as well.

這很有幫助。那麼，您能否談談您對汽車產業發展的最新看法？顯然，本季的優異表現以及缺貨情況確實令人難以置信。所以也許可以談談你對此的假設。

Sure. So let me start with the market first. So the market in Q2, the production was up 2.6%. So that was a nice figure. And if you look at the forecast for the full year, it's a little bit better than what we thought three months ago.

當然。那麼讓我先從市場開始。因此第二季的市場產量增加了 2.6%。所以這是一個很好的數字。如果你看一下全年的預測，它比我們三個月前的預測要好一點。

So we think that the full-year production will be roughly flat or slightly positive to 90 million vehicles produced that will be produced in 2025. Granted, the story here is mainly a China story. Both Europe and North America will be down, but this is the market.

因此，我們認為全年產量將與 2025 年的 9,000 萬輛大致持平或略有成長。誠然，這裡的故事主要是中國故事。歐洲和北美都會下滑，但這就是市場。

Now when you look at our outperformance, the outperformance was spread across all the three different regions. You're talking about outperforming in Europe, outperforming in China by a lot, and outperforming in North America and also outperforming across all the three different type of powertrain, internal combustion engine, hybrid, and EV. So the outperformance, I'm happy to see, is continuing.

現在，當您查看我們的優異表現時，您會發現優異表現遍布所有三個不同的地區。你說的是在歐洲表現出色，在中國表現出色，在北美表現出色，並且在內燃機、混合動力和電動車這三種不同類型的動力系統上表現出色。因此，我很高興看到這種優異表現仍在持續。

Thank you. Really appreciate it.

謝謝。真的很感激。

Thanks, Mike.

謝謝，麥克。

Operator, I think we can go to the next question.

接線員，我想我們可以進入下一個問題了。

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），Stifel。

Morning, Nathan.

早安，內森。

Hi, Nathan.

你好，內森。

Yeah. Hi, good morning, guys. This is Adam Farley, on for Nathan. So maybe starting on CCT orders, really strong orders growth. I know you're getting a lot of price. Maybe you could help us think about the differences in share gains versus just overall market growth?

是的。大家好，早安。我是亞當法利 (Adam Farley)，代替內森 (Nathan)。因此，也許從 CCT 訂單開始，訂單成長確實強勁。我知道你得到了很多的報酬。也許您可以幫助我們思考一下份額成長與整體市場成長之間的差異？

Yeah. Thank you, Adam. So yeah, you're right. We saw a significant growth, 9% from an order standpoint in the quarter. And a lot of that growth was fueled by aerospace and defense, specifically defense, where both our legacy business and our kSARIA business continues to do really well.

是的。謝謝你，亞當。是的，你是對的。我們看到了顯著的成長，從本季的訂單角度來看成長了 9%。其中很大一部分成長是由航空航太和國防推動的，特別是國防業務，我們的傳統業務和 kSARIA 業務都繼續表現良好。

Our legacy business was up 25%; kSARIA was up by 36%. So on the defense, we are pretty confident that we continue to make the difference and differentiate for our customers. And as a result, we're gaining share on some really good platforms.

我們的傳統業務成長了 25%；kSARIA 成長了 36%。因此，在防禦方面，我們非常有信心繼續為客戶帶來差異化和差異化。因此，我們在一些真正優秀的平台上獲得了越來越多的份額。

We talked about in Q1 about the large award that kSARIA had on the F-35. And then we have more awards this quarter on coveted platforms. Aerospace is doing well as well at plus 12%. And here, frankly, we are doing the best we can to support Boeing in their ramp-up plans, especially on the 737 MAX.

我們在第一季度談到了 kSARIA 在 F-35 上獲得的巨額獎項。本季度，我們將在令人垂涎的平台上獲得更多獎項。航空航太業表現同樣出色，增幅達 12%。坦白說，我們正在盡最大努力支持波音公司的增產計劃，特別是 737 MAX 計劃。

Thank you for that. Then shifting gears a little bit to Motion Technologies margins, the FX impact on margins kind of stood out. What is the FX relationship there that's causing the margin compression?

謝謝你。然後稍微轉向 Motion Technologies 的利潤率，外匯對利潤率的影響就變得非常突出。導致利潤率壓縮的外匯關係是怎麼樣的？

Sure. So we've seen during the first half a depreciation of the dollar compared to the euro. And so while this helps from a translation standpoint, it hurts us from a transaction standpoint. And so what we're seeing here is the transaction impact that has an outsized impact on Motion Tech's margins.

當然。因此，我們看到上半年美元兌歐元貶值。因此，雖然從翻譯的角度來看這有幫助，但從交易的角度來看卻有害。因此，我們在這裡看到的是交易影響對 Motion Tech 的利潤產生了巨大的影響。

Makes sense. Thank you for taking my questions.

有道理。感謝您回答我的問題。

Thanks, Adam.

謝謝，亞當。

Joe Ritchie, Goldman Sachs.

高盛的喬·里奇。

Good morning, Joe.

早安，喬。

Hi, Joe.

你好，喬。

Hey, guys. Hey, good morning. Can we double-click on Svanehøj for a second? Growing greater than 40% this quarter, you can't imagine that the end market is growing that quickly. Like maybe just give us a little bit more color what's happening there. What's -- where are you really seeing the strength in that business?

嘿，大家好。嘿，早安。我們可以雙擊 Svanehøj 一下嗎？本季成長超過40%，你無法想像終端市場成長如此之快。也許只是給我們稍微詳細地介紹一下那裡發生的事情。您真正看到該業務的優勢在哪裡？

Sure. Probably, you remember that when we communicated this acquisition, we always expected this business to grow substantially in the years to come. I think that what is driving this outperformance of the market is really flawless execution by our team when it comes to project and also service, as well as a differentiation on the product side, differentiation on the product side that they keep on feeding with R&D investment and with new products like the one that I shared in the prepared remarks, the new high-pressure fuel pumps. And it is across the board when you think about LNG, LPG, ammonia, and also large carriers.

當然。您可能還記得，當我們傳達這項收購時，我們一直預期這項業務在未來幾年將大幅成長。我認為推動市場表現優異的是我們團隊在專案和服務方面的完美執行，以及產品方面的差異化，他們透過研發投資和新產品（例如我在準備好的發言中分享的新型高壓燃油泵）不斷實現產品方面的差異化。當您考慮液化天然氣、液化石油氣、氨以及大型運輸船時，它就變得全面了。

And, Joe, if I can complement what Luca was saying with some numbers. So in the first half, Svanehøj grew orders by more than 80%. We expect for the full year for them to be a little bit above 20%. And this is because we have anticipated a lot of the orders that we were expecting in the second half in the first half.

喬，我可以用一些數字來補充盧卡所說的話。因此，上半年 Svanehøj 的訂單增加了 80% 以上。我們預計全年成長率將略高於 20%。這是因為我們已經預期上半年會出現許多下半年預計的訂單。

So really strong performance even for the full year. And from a revenue standpoint, also for the full year, we expect them to be up by 30% because we are converting all those orders that we got in 2024, we're now converting them in terms of revenue.

因此，即使就全年而言，其表現也確實非常強勁。從收入的角度來看，我們預計全年收入也將成長 30%，因為我們正在將 2024 年收到的所有訂單轉換為收入。

So obviously, from a book-to-bill standpoint, the picture is really strong. For the first half, we were over 2 times, and then will be largely over 1 for the full year.

因此，顯然，從訂單出貨比的角度來看，前景非常樂觀。上半年，我們的銷售額超過了 2 倍，全年銷售額將基本超過 1 倍。

And, Joe, it's not just a question of orders and growth. I mean, if I can credit [Stor] and John and the entire team, they generated year-to-date in terms of cash, almost the same amount of cash that they generated in full-year 2024. And their working capital is a single digit. So great performance across the board.

喬，這不僅僅是訂單和成長的問題。我的意思是，如果我能將功勞歸於 [Stor]、約翰和整個團隊，那麼他們今年迄今為止產生的現金幾乎與 2024 年全年產生的現金相同。而他們的營運資金只有個位數。整體表現非常出色。

Yes. That's amazing. That's great color. And congrats so far on that acquisition. Maybe just my second question, really focusing on the pump business. Clearly, really good order growth this quarter. You did mention a couple of project delays. And there's been other peers that have also been mentioning some things kind of slipping to the side. And at the same time, Luca, you had some comments around aggressive pricing as well.

是的。太棒了。顏色真棒。到目前為止，我對這項收購表示祝賀。也許這只是我的第二個問題，真正關注的是泵浦業務。顯然，本季的訂單成長確實很好。您確實提到了幾個項目延遲。其他同行也提到了一些被忽略的事情。同時，盧卡，你也對激進定價發表了一些評論。

So just -- maybe just give a -- it's hard to kind of like totally square the fact that your orders have been really good. You guys are executing really well, but at the same time, there's some gyrations in the market. I just -- we're just trying to understand that a little bit better.

所以只是 — — 可能只是給出 — — 很難完全接受你的訂單一直都很好這個事實。你們的表現確實很好，但同時，市場也出現了一些波動。我只是——我們只是想更好地理解這一點。

Sure. So I would say when you look at the funnel, the funnel is down year over year, but was exceptionally high last year. So it's still a very healthy funnel, what we see, and really the move that we saw to the right or just a couple of examples.

當然。所以我想說，當你查看漏斗時，你會發現漏斗逐年下降，但去年卻異常高。因此，我們看到的仍然是一個非常健康的管道，實際上我們看到的向右的移動，或者只是幾個例子。

I think that the story here is really a story of share gains, Joe. And even when you look at the Bornemann, I mean the -- we were able to win those orders because the service that the team has provided, the project execution with the customer.

喬，我認為這裡的故事實際上是一個關於市場份額成長的故事。即使你看看Bornemann，我的意思是——我們之所以能夠贏得這些訂單，是因為團隊提供的服務，以及與客戶一起執行的專案。

And therefore, in one case, the customer came straight to us, no competition at all. In the second case, despite incredible competition from a price point of view, they stayed loyal because of the performance and the service. So it's really a market share gain story.

因此，在某種情況下，客戶直接來找我們，根本沒有競爭。在第二種情況下，儘管從價格角度來看競爭非常激烈，但由於性能和服務，他們仍然保持忠誠。所以這其實是一個市場佔有率增加的故事。

Great to hear. Thanks, guys.

很高興聽到這個消息。謝謝大家。

Thank you, Joe.

謝謝你，喬。

Jeff Hammond, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Jeff Hammond。

Hey, good morning, guys.

嘿，大家早安。

Hi, Jeff.

你好，傑夫。

So I think you said third-quarter low single-digit organic. I'm just trying to understand the cadence in the fourth quarter. It seems like you'd have to have a step-up. And just as you look at this order strength, how much is kind of giving you the visibility for second half versus giving you longer-dated visibility into '26?

所以我認為你說的是第三季的有機成長率為低個位數。我只是想了解第四季的節奏。看起來你必須要有所進步。正如您所看到的訂單強度，它對下半年的可見性有多大，對 26 年的長期可見性有多大？

Yes. So I would say that for the projects that we're getting today, those are going to be delivered in 2026. So from a project standpoint, our backlog is full. And we are secured in terms of delivering the revenue. It's a little bit different for the short cycle that we still need to get mostly in pumps and also in connectors.

是的。所以我想說，我們今天承接的專案將於 2026 年交付。因此從專案角度來看，我們的積壓工作已經滿了。我們在收入交付方面是有保障的。對於短循環來說，情況略有不同，我們仍然需要主要將其放入泵浦和連接器中。

But other than this, I think from an order standpoint, when it relates to projects, we are covered. We expect in Q4 similar growth rate -- organic growth rate from a revenue standpoint than in Q3 and yeah, so in the low to the mid-single digits.

但除此之外，我認為從訂單的角度來看，當它涉及項目時，我們都會受到保障。我們預期第四季的成長率－從收入角度來看的有機成長率與第三季相似，是的，也就是在低到中等個位數之間。

Okay. Great. I think you called out a healthy funnel, some acquisitions of size. I think you called out a step-up in corporate around M&A. Just speak to -- I guess, maybe put a frame around what you consider an acquisition of size and just a little more color on that on the funnel.

好的。偉大的。我認為您提到了一個健康的管道，一些較大的收購。我認為您呼籲企業在併購方面加大力度。只是說一下——我想，也許可以圍繞你認為的規模收購設置一個框架，並在漏斗上添加一些顏色。

Sure. When we look at the funnel, the majority of the company that we are cultivating and that we see in the funnel, revenue between $200 million and $400 million. So this is the bulk of the opportunity that we have in the funnel. And if you look at this is also the last couple of acquisitions that we made, Svanehøj and kSARIA, that are executing and over-delivering over approximately that size. So the majority are around that size.

當然。當我們查看漏斗時，我們發現我們正在培育的以及在漏斗中看到的大多數公司的收入都在 2 億美元到 4 億美元之間。這就是我們在通路中擁有的大部分機會。如果你看一下，這也是我們最近進行的幾次收購，Svanehøj 和 kSARIA，它們的執行情況和超額交付都超過了大約這個規模。所以大多數都是這個尺寸左右。

Okay. Thanks a lot.

好的。多謝。

Thanks, Jeff.

謝謝，傑夫。

Brad Hewitt, Wolfe Research.

布拉德休伊特（Brad Hewitt），沃爾夫研究公司。

Good morning, guys. Thanks for taking my questions.

大家早安。感謝您回答我的問題。

Hi, Brad.

你好，布拉德。

So you mentioned Svanehøj and kSARIA trending ahead of expectations, and I think that's pretty visible in the order numbers. But as we think about next year, is there any help you can give us in terms of thinking about the building blocks of the incremental year-over-year accretion from the two deals in 2026?

所以您提到 Svanehøj 和 kSARIA 的趨勢超出預期，我認為這在訂單數量上非常明顯。但當我們考慮明年時，您能否為我們提供幫助，幫助我們思考 2026 年這兩筆交易帶來的逐年增量成長的基礎？

Yes. So thank you, Brad, for the question. So when you look at from a profitability standpoint, both Svanehøj and kSARIA are progressing well compared to our plans. So when Luca is saying they're outperforming, they're outperforming from an orders, sales, profitability, and cash.

是的。所以謝謝你，布拉德，提出這個問題。因此，從獲利能力的角度來看，與我們的計劃相比，Svanehøj 和 kSARIA 都進展順利。因此，當 Luca 說他們的表現優異時，是指他們的訂單、銷售額、獲利能力和現金表現優異。

And so we saw some really strong year-over-year EBITDA margin improvement in Svanehøj, as well as in kSARIA. So we're very pleased with that. I think that as to have in mind kind of a guideline for what we expect out of acquisitions, we probably expect around 100 basis points of margin improvement every year. Maybe in some years, it'll be a little bit more. Maybe in others, it'll be a little less. But that's the average we expect.

因此，我們看到 Svanehøj 和 kSARIA 的 EBITDA 利潤率較去年同期都有顯著提升。所以我們對此感到非常高興。我認為，考慮到我們對收購的預期，我們預計利潤率每年將提高約 100 個基點。也許過幾年，這個數字還會多一點。在其他情況下，可能就會少一些。但這是我們預期的平均值。

Okay. Great. That's helpful. And then maybe switching over to the short cycle side of IP, so you mentioned that orders inflected from negative in Q1 to positive in Q2. I'm curious if you saw any change in order activity on the short cycle side as you progressed through the quarter or maybe even end of July.

好的。偉大的。這很有幫助。然後也許切換到 IP 的短週期方面，所以您提到訂單從第一季的負面轉變為第二季的正面。我很好奇，隨著整個季度或甚至七月底的進展，您是否看到短週期方面的訂單活動有任何變化。

Not through the quarter, Brad. I think that Q2 was a very good quarter across the board, both the baseline parts, service, and valves, with service and valve growing double digit when we look at the orders. As a matter of fact, Q2 was probably the second highest quarterly orders performance in short cycle when you look at the weekly rate.

布拉德，本季還沒結束。我認為第二季整體表現非常好，包括基礎零件、服務和閥門，從訂單來看，服務和閥門都實現了兩位數的成長。事實上，從周率來看，第二季可能是短週期內第二高的季度訂單表現。

Now July was a little bit softer, but tends to be this thing. July is the first week. It's always a little bit softer. So that happened last year and happened again this year. So no different trend, I would say, in the quarter.

現在七月的情況稍微緩和一些，但趨勢是這樣的。七月第一週。它總是稍微柔軟一點。去年發生了這樣的事，今年又發生了。所以我想說，本季沒有什麼不同的趨勢。

Great. Thanks, Luca.

偉大的。謝謝，盧卡。

Thank you, Brad.

謝謝你，布拉德。

Vlad Bystricky, Citigroup.

花旗集團的 Vlad Bystricky。

Morning, guys. Thanks for taking my call.

早安，大家。謝謝您接聽我的電話。

Hi, Vlad.

你好，弗拉德。

Morning. So I just wanted to ask you about the IP projects a little more. You mentioned the price competition you saw in Bornemann. It sounds like you were able to hold margins despite that.

早晨。所以我只是想多問您一些關於 IP 項目的問題。您提到了在 Bornemann 看到的價格競爭。聽起來儘管如此你仍然能夠保持利潤。

But can you talk in general about the margins you're booking into backlog on project wins in IP today versus segment margin, and how we should think about mix going forward?

但是，您能否大致談談目前您在 IP 項目勝利積壓訂單中的利潤與細分利潤的關係，以及我們應該如何考慮未來的組合？

Sure. So a very good point. Because when you look at our mix in the backlog, you go back two years and the mix was 60% short cycle, 40% project. Now you look at the backlog today, it's the reverse, 58% project, 42% short cycle. So this makes the improvement that you see in the margin of IP even more remarkable when you see that this big headwind that they have in terms of mix.

當然。這是一個非常好的觀點。因為當你查看我們積壓的工作組合時，回顧兩年前，我們發現組合中 60% 是短週期，40% 是專案。現在你看看今天的積壓情況，情況正好相反，58%是項目，42%是短週期。因此，當您看到他們在組合方面面臨巨大阻力時，您在 IP 利潤率方面看到的改善就更加顯著。

And the reason for that is because the team is able, A, to improve the margin in the project when we are booking, when we are winning, thanks to the execution, thanks to the performance that we have with those customers.

原因在於，A，當我們預訂時，當我們獲勝時，由於執行力，由於我們與這些客戶的表現，團隊能夠提高專案的利潤率。

And the second point, Vlad, very important, is that when we look at this project, when we close the project, when we ship everything, the margin of the project tends to be higher than the margin of when we book the project when we won the order, which is a testimony to the great execution of the team, of the project manager.

第二點，弗拉德，非常重要的一點是，當我們審視這個項目時，當我們結束這個項目時，當我們運送所有貨物時，項目的利潤往往高於我們贏得訂單時預訂項目時的利潤，這證明了團隊和項目經理的出色執行力。

So well done, [Matt] and the project management team. So mix is a headwind, but we're able to compensate through the continuous improvement in execution.

幹得好，[Matt] 和專案管理團隊。因此，混合是一個阻力，但我們能夠透過執行的不斷改進來彌補。

And so if you look at the year-over-year margin progression on all the projects that we shipped, we're in the neighborhood of 400 basis points improvement versus the prior year.

因此，如果您查看我們交付的所有項目的同比利潤率增長，您會發現與前一年相比，我們的利潤率提高了約 400 個基點。

That's really helpful color. I appreciate that. And then, just shifting to CCT, can you just talk about shorter cycle visibility at CCT, and how you're thinking about the durability of growth momentum there?

這顏色確實很有幫助。我很感激。然後，轉到 CCT，您能否談談 CCT 的較短週期可見性，以及您如何看待那裡的成長勢頭的持久性？

Sure. When we look at the short cycle in CCT, we're mainly talking about connectors. And I would say connectors orders in Q2 was the second highest quarter order performance ever. And after a growth in orders in Q1 of 11%, the orders grew 12%.

當然。當我們查看 CCT 中的短週期時，我們主要討論的是連接器。我想說的是，第二季的連接器訂單是有史以來第二高的季度訂單表現。繼第一季訂單成長11%之後，今年訂單成長了12%。

I'm just talking about connectors without kSARIA here, so the -- without the acquisition. And so very good performance on the orders front. And granted, a lot of that comes from aero and defense. And -- but we will expect for the full year also continue to grow double digit.

我在這裡只談論沒有 kSARIA 的連接器，所以 - 沒有收購。因此訂單方面的表現非常好。當然，其中很多都來自航空和防禦。而且——但我們預計全年仍將繼續實現兩位數成長。

Got it. That's helpful, Luca. Appreciate it. I'll get back in queue.

知道了。這很有幫助，盧卡。非常感謝。我會回到隊列中。

Thank you.

謝謝。

Sabrina Abrams, Bank of America.

美國銀行的薩布麗娜‧艾布拉姆斯 (Sabrina Abrams)。

Good morning, everyone. Good morning. Thanks for the question. So I just want to be clear. I think you trimmed the -- so I'll ask this as a two-parter. So I guess, you trimmed the high end of margin guide. Just want to understand what the driver of that is.

大家早安。早安.謝謝你的提問。所以我只是想說清楚。我認為你刪減了——所以我會把這個問題分成兩部分來問。所以我猜，您削減了保證金指南的高端。只是想了解背後的驅動因素是什麼。

And then I think because of the cadence of the 3Q year-over-year comments, you need to have a bigger year-over-year margin expansion in 4Q. So I just want to understand that dynamic a little bit better. Thank you.

然後我認為，由於第三季同比評論的節奏，你需要在第四季度實現更大的同比利潤率擴張。所以我只是想更好地理解這種動態。謝謝。

Sure. So I mean, it's really a small adjustment, and we like to be precise. So I would say that the headwinds we're facing is a little bit of a higher M&A cost than what we were expecting. And then from a mix standpoint, those numbers that we talked about for Svanehøj, them growing really fast.

當然。所以我的意思是，這確實是一個小的調整，我們希望做到精確。所以我想說，我們面臨的阻力是併購成本比我們預期的高一點。然後從混合的角度來看，我們為 Svanehøj 討論的那些數字成長得非常快。

Their margin, even though it's improving, it's still dilutive to the overall ITT margin. And so as a result, we take a little bit of a hit there. And then from a 4Q performance, yeah, I mean, we're expecting not a big difference between third Q and 4Q from a margin standpoint. So we're pretty confident that our outlook from a margin standpoint is achievable and realistic.

儘管他們的利潤率正在提高，但仍然會稀釋整體 ITT 利潤率。因此，我們受到了一點打擊。然後從第四季的表現來看，是的，我的意思是，從利潤率的角度來看，我們預計第三季和第四季之間不會有太大差異。因此，我們非常有信心，從利潤率的角度來看，我們的前景是可實現的和現實的。

Thank you. And I think looking at the CCT, I guess, if I take the core earnings, excluding the temporary amortization, you have really strong incrementals. I think the core incrementals are over 80%. And I think in the slides, there was some mention about pricing actions.

謝謝。我認為，看看 CCT，如果我把核心收益排除在臨時攤銷之外，你就會得到非常強勁的增量。我認為核心增量超過80%。我認為幻燈片中提到了一些有關定價行動的內容。

I know this has been a big focus for you, particularly on the aero side. Just can you talk about what's going so well here, like the strong execution in CCT? And yeah, I would just love to know what's driving the really strong incrementals, whether it's more aero or short cycle side. Thank you.

我知道這是你關注的重點，特別是在空氣動力學方面。您能談談這裡進展順利的原因嗎，例如 CCT 的強勁執行力？是的，我只是想知道是什麼推動了真正強勁的增量，無論是更多的空氣動力學還是短循環方面。謝謝。

Yes. Thank you, Sabrina. So yeah, I think we're really happy with the way CCT is performing, even the legacy CCT. We are at 21.5% margin if you exclude kSARIA, which is a really, really strong number. And so the incrementals are around 70%, as you mentioned, so really strong performance.

是的。謝謝你，薩布麗娜。是的，我認為我們對 CCT 的表現非常滿意，即使是傳統的 CCT。如果不考慮 kSARIA，我們的利潤率為 21.5%，這是一個非常非常強勁的數字。正如您所說，增量約為 70%，因此性能確實非常強勁。

We have a really good contribution from pricing. And here, pricing is on two aspects. One is to make sure that we get compensated for inflation on some of the old contracts we had. And as we mentioned, we closed another two contracts this quarter.

我們在定價方面做出了非常好的貢獻。這裡的定價包括兩個面向。一是確保我們能因一些舊合約的通貨膨脹而得到補償。正如我們所提到的，本季我們又簽訂了兩份合約。

And the second one is strategic pricing, and that's more around the aftermarket and the repair and overhaul. And so that is generating 450 basis points of margin improvement just due to pricing. Some of that is offset by inflation, but it's a net positive.

第二個是策略定價，這更多是圍繞著售後市場以及維修和大修。因此，僅透過定價就能產生 450 個基點的利潤率提高。雖然其中一部分會被通貨膨脹所抵消，但總體而言還是有利的。

I would say the last point I would make about CCT is that we talked for a long time about automation. And we're getting those projects in action right now. So we have implemented automation project in our Orchard Park facility and then now up and running, especially in the machining area, which is causing a lot of productivity. And then we are about to kick off automation also in our Valencia plant for valves and switches, which we should continue to help us expand margins.

我想說的關於 CCT 的最後一點是，我們討論了很長時間的自動化問題。我們現在正在實施這些項目。因此，我們在 Orchard Park 工廠實施了自動化項目，目前已開始運行，特別是在機械加工領域，這大大提高了生產力。然後，我們還將在瓦倫西亞工廠啟動閥門和開關的自動化，這將繼續幫助我們擴大利潤。

Thank you. I'll pass it on.

謝謝。我會傳達的。

Damian Karas, UBS.

瑞銀的 Damian Karas。

Hey, good morning, everyone.

嘿，大家早安。

Hi, Damian. Good morning.

你好，達米安。早安.

Hi. Sorry if I missed this earlier, but I was wondering if you could maybe talk to us a little bit about the pricing actions that you've taken since last quarter. And is there any additional price that you think you'll need to take in the second half, just thinking about some of the updated tariffs? And maybe just to fill us in on what your updated assessment is of your tariff exposure as well. Thanks.

你好。抱歉，如果我之前錯過了這個，但我想知道您是否可以和我們談談自上個季度以來您採取的定價行動。考慮到一些更新後的關稅，您認為下半年是否需要承擔額外的費用？也許只是為了讓我們了解您對關稅風險的最新評估。謝謝。

Sure. When you look at the tariffs, the exposure for 2025 today is half of what we thought a quarter ago, so roughly $25 million. And this is mainly for some of the things that we're importing from Asia, some exposure on product that -- for (inaudible) absorbers from Europe to North America, and a small portion of non-USMCA-compliant products in CCT.

當然。當你查看關稅時，今天 2025 年的風險敞口是我們一個季度前認為的一半，大約是 2500 萬美元。這主要針對我們從亞洲進口的一些產品、從歐洲到北美的吸收器產品，以及 CCT 中一小部分不符合 USMCA 標準的產品。

But when you look at the 25% -- $25 million impact, we are able to mitigate it through price and actions together with the supplier and productivity actions also ourselves. So zero impact when it comes to income.

但是，當您看到 25%——2500 萬美元的影響時，我們能夠透過價格和行動以及供應商和生產力行動來減輕它。因此對收入沒有任何影響。

Now if you look at the pricing, I would say price cost has been positive for Q2 for ITT, both from an income point of view and also margin. We expect that to be the same for the full year and across all the three different businesses. And I would say no major difference in terms of our pricing actions from Q2 to Q3, strategic pricing and pricing to cover for inflation and tariffs.

現在，如果你看一下定價，我會說價格成本對於 ITT 第二季來說是正面的，無論是從收入角度還是從利潤率角度來看。我們預計全年以及所有三個不同業務部門的情況都將如此。我想說，從第二季度到第三季度，我們的定價行動、策略定價以及應對通貨膨脹和關稅的定價沒有太大區別。

Okay. That's helpful. And, Luca, there's been a lot of deal activity in Industrial Process out there, it seems. For example, Baker Hughes has been involved in a couple of transactions. From your perspective, are you starting to see a riper deal environment in IP space? And I'd be curious to hear your thoughts on where you think some of these deals are pricing.

好的。這很有幫助。盧卡，看來工業流程領域有很多交易活動。例如，貝克休斯已經參與了幾筆交易。從您的角度來看，您是否開始看到智慧財產權領域的交易環境更加成熟？我很想聽聽您對這些交易定價的看法。

Sure. So when we look at our funnel, the majority of the opportunity -- you know that we are going after in terms of the funnel in the connector specifically on the aero defense and inflow. And therefore, when we're looking at the funnel, those are the areas where we are focusing.

當然。因此，當我們查看我們的漏斗時，大多數機會 - 您知道我們正在追求連接器中的漏斗，特別是在航空防禦和流入方面。因此，當我們查看漏斗時，這些就是我們關注的領域。

And it's fair to say that the majority of opportunities are actually in the flow area. So we are actively working the funnel. We are cultivating. And as you can see, our M&A costs are probably ramping up. So two of the past acquisitions that we made, Habonim and Svanehøj, are in flow. So it's still a very fragmented market. So for sure, more acquisitions there will happen.

可以公平地說，大多數機會實際上都在流動領域。因此，我們正在積極開展工作。我們正在耕耘。如您所見，我們的併購成本可能正在上升。我們過去收購的兩家公司 Habonim 和 Svanehøj 都已投入營運。所以這仍然是一個非常分散的市場。因此可以肯定的是，將會有更多的收購發生。

Sounds good. Looking forward to see what that ends up looking like. Good luck.

聽起來不錯。期待看到最終結果。祝你好運。

Me, too. Thank you.

我也是。謝謝。

Thanks, Damian.

謝謝，達米安。

Joe Giordano, TD Cowen.

喬·喬達諾（Joe Giordano），TD Cowen。

Hi, good morning. This is Chris, on for Joe. Most of my questions have been addressed. But maybe -- when you look at the strength in -- on pumps, what types of applications are driving that strength? Is it greenfield versus expansions of existing sites, and how would you characterize customer urgency versus a normal level?

嗨，早安。我是克里斯，代表喬發言。我的大部分問題都已經得到解答了。但是也許—當您觀察泵浦的強度時，哪些類型的應用推動了這種強度？這是新建案還是現有站點的擴建？您如何描述客戶緊急程度與正常水平？

Yeah. Thanks, Chris. So yeah, we got some fantastic orders in IP in Q2, up 23%. And we saw some real strength in oil and gas, so energy, as well as in general industrial. And then on the green type of projects, we are also very happy with that. Because if you look at our year-to-date green orders, they're almost in line with what we get for the full year in 2024. So that's very positive, obviously.

是的。謝謝，克里斯。是的，我們在第二季度獲得了一些非常棒的 IP 訂單，成長了 23%。我們看到石油和天然氣、能源以及一般工業領域確實表現強勁。對於綠色項目，我們也感到非常高興。因為如果你看看我們今年迄今為止的綠色訂單，它們幾乎與我們 2024 年全年的訂單一致。顯然，這是非常積極的。

Luca mentioned an order for Australia that we got. And this is a decarbonization order with a major oil company. And we got the first project in 2023 which was for more than $20 million. And we got a follow-on order as we executed perfectly from a project management standpoint with that same customer for that same field.

盧卡提到了我們收到的一份發往澳洲的訂單。這是與一家大型石油公司簽訂的脫碳訂單。我們在 2023 年獲得了第一個項目，價值超過 2000 萬美元。由於我們從專案管理的角度與同一客戶在同一領域完美地執行了任務，因此我們獲得了後續訂單。

So we were happy with the way the green projects are developing and the market share we're able to make.

因此，我們對綠色專案的發展方式以及我們能夠佔據的市場份額感到滿意。

Thanks very much.

非常感謝。

Thank you, Chris.

謝謝你，克里斯。

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。