Kadant Inc (KAI) 2025 Q1 法說會逐字稿

Ladies and gentlemen, thank you for standing by and welcome to Kadant first quarter 2025 earnings conference call. (Operator Instructions). I would like now to turn the conference over to Michael McKenney, executive Vice President and Chief Financial Officer. Please go ahead, sir.

女士們、先生們，感謝大家的支持，歡迎參加 Kadant 2025 年第一季財報電話會議。（操作員指令）。現在，我想將會議交給執行副總裁兼財務長 Michael McKenney。先生，請繼續。

Thank you, Michelle. Good morning, everyone, and welcome to Kadant first quarter 2025 earnings call. With me on the call today is Jeff Powell, our President and Chief Executive Officer. Before we begin, let me read our Safe Harbor statement. Various remarks that we may make today about Kadant, future plans and expectations, financial and operating results.

謝謝你，米歇爾。大家早安，歡迎參加 Kadant 2025 年第一季財報電話會議。今天與我一起參加電話會議的是我們的總裁兼執行長傑夫鮑威爾。在我們開始之前，請允許我宣讀我們的安全港聲明。我們今天可能會對 Kadant、未來計劃和期望、財務和營運業績發表各種評論。

And prospects are forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to known and unknown risks and uncertainties that may cause our actual results to differ materially from these forward-looking statements.

並且前景是 1995 年私人證券訴訟改革法案的安全港條款所定義的前瞻性陳述。這些前瞻性陳述受到已知和未知的風險和不確定性的影響，可能導致我們的實際結果與這些前瞻性陳述有重大差異。

As a result of various important factors including those outlined at the beginning of our slide presentation and those discussed under the heading risk factors in our annual report on Form 10-K for the fiscal year ended December 28, 2024 and subsequent filings with the Securities and Exchange Commission.

由於各種重要因素，包括幻燈片演示開始時概述的因素以及截至 2024 年 12 月 28 日的財政年度 10-K 表年度報告以及隨後向美國證券交易委員會提交的文件中風險因素標題下討論的因素。

In addition, any forward-looking statements we make during this webcast represent our views and estimates only as of today. While we may elect to update forward-looking statements at some point in the future, we specifically disclaim any obligation to do so, even if our views or estimates change. During this webcast, we will refer to some non-GAAP financial measures.

此外，我們在本次網路廣播中所做的任何前瞻性陳述僅代表我們截至今天的觀點和估計。雖然我們可能選擇在未來某個時間點更新前瞻性陳述，但我們明確表示不承擔任何這樣做的義務，即使我們的觀點或估計發生變化。在本次網路廣播中，我們將參考一些非公認會計準則財務指標。

These non-GAAP measures are not prepared in accordance with generally accepted accounting principles. A reconciliation of non-GAAP financial measures for the most directly comparable GAAP measures is contained in our first quarter earnings press release and the slides presented on the webcast and discussed in the conference call, which are available in the investor section of our website at kadant.com.

這些非公認會計準則指標並非依照公認會計原則編製。我們的第一季財報新聞稿以及網路廣播中提供和電話會議中討論的幻燈片中包含了非 GAAP 財務指標與最直接可比較的 GAAP 指標的調整表，這些內容可在我們網站 kadant.com 的投資者專區找到。

Finally, I wanted to note that when we refer to GAAP earnings per share or EPS and adjust the EPS on the call, we are referring to each of these measures as calculated on a diluted basis. With that, I'll turn the call over to Jeff Powell, who will give you an update on Kadant business and future prospects. Following Jeff's remarks, I'll give an overview of our financial results for the quarter, and we will then have a Q&A session. Jeff

最後，我想指出的是，當我們參考 GAAP 每股盈餘或 EPS 並在電話會議上調整 EPS 時，我們指的是按稀釋基礎計算的每個指標。說完這些，我將把電話轉給傑夫鮑威爾 (Jeff Powell)，他將向您介紹 Kadant 的業務和未來前景的最新情況。在傑夫演講之後，我將概述本季的財務業績，然後我們將進行問答環節。傑夫

Thanks, Mike. Hello, everyone. Thank you for joining us this morning to review our first quarter results and discuss our business outlook for 2025. Before I get into my remarks on our Q1 performance, I'd like to take a few minutes to outline the actions that we've taken so far to understand the implementation, the implications of the tariffs on our industries, supply lines.

謝謝，麥克。大家好。感謝您今天早上加入我們，回顧我們的第一季業績並討論我們對 2025 年的業務展望。在我對第一季的業績發表評論之前，我想花幾分鐘概述我們迄今為止所採取的行動，以了解實施情況以及關稅對我們的行業和供應線的影響。

Customs and how we might respond based on a variety of scenarios we considered. Each of our operating teams is assessing their supply chain vulnerability to understand our exposure to potential tariffs and the impact it could have on our operations. This assessment includes potential changes in cost, impacts on production and lead time, and how we would address these factors.

海關以及我們根據考慮過的各種情況可能做出的反應。我們的每個營運團隊都在評估其供應鏈的脆弱性，以了解我們面臨的潛在關稅風險及其對我們營運可能產生的影響。該評估包括成本的潛在變化、對生產和交貨時間的影響以及我們如何解決這些因素。

I should note that one of the strategic benefits of our decentralized structure is our ability to respond quickly to changing economic circumstances. We are also exploring alternate supply sources with the feasibility of switching suppliers in response to changed trade relationships and tariffs.

我應該指出，我們分散結構的戰略優勢之一是我們能夠對不斷變化的經濟環境做出快速反應。我們也正在探索替代供應來源，並根據貿易關係和關稅的變化尋找更換供應商的可行性。

While we have a good handle on the known alternatives, the fluidity and the trade policies make decision making more complicated in the short term. We are fortunate to have experienced operations leaders around the globe who base decisions on local conditions and information from our global network of companies.

雖然我們對已知的替代方案有很好的掌握，但流動性和貿易政策使得短期決策變得更加複雜。我們很幸運，擁有遍布全球的經驗豐富的營運領導者，他們根據當地情況和來自我們全球公司網路的資訊做出決策。

Based on our analysis to date, we believe we are well positioned to react to changes in trade policy and relationships while maintaining our high level of support to our customers. As Kadant, with few exceptions, manufacturers in the regions we sell in. Currently, we do not believe any of our competitors gain a benefit from the tariffs.

根據迄今為止的分析，我們相信我們已準備好應對貿易政策和關係的變化，同時保持對客戶的高水準支持。作為凱登公司，除少數例外，我們都是其銷售區域的製造商。目前，我們認為我們的任何競爭對手都不會從關稅中獲益。

Later in our review, Michael will provide our estimate of the financial impact tariffs could have on our business. Now let's go into the first quarter performance. I will begin with our operational highlights. Despite the high level uncertainty fueled by the global tariffs and stiff economic headwinds in Europe and China, our first quarter came in as expected across most financial metrics.

在我們稍後的審查中，邁克爾將提供關稅可能對我們的業務造成的財務影響的估計。現在我們來看看第一季的表現。我先介紹一下我們的營運亮點。儘管全球關稅以及歐洲和中國經濟的強勁逆風引發了高度不確定性，但我們第一季的大多數財務指標都符合預期。

Demand for aftermarket parts was robust and our operations teams around the globe once again executed extremely well in a challenging environment and delivered high value to our customers. This led to strong margin performance and solid free cash flow. Turning now to our first quarter financial performance and slide six, I'd like to highlight a few metrics that I believe are fundamental to our growth story.

售後零件的需求強勁，我們遍佈全球的營運團隊在充滿挑戰的環境中再次表現出色，為客戶帶來了高價值。這帶來了強勁的利潤率表現和穩健的自由現金流。現在談談我們的第一季財務業績和第六張投影片，我想強調一些我認為對我們的成長故事至關重要的指標。

First, our new order activity was up in the first quarter, despite the relatively low capital business. Uncertainty created by the rapidly evolving tariff situation has delayed capital equipment orders as our customers assess the potential impact on their businesses. Aftermarket parts bookings represented 74% of our total bookings and was a record $190 million.

首先，儘管資本業務相對較低，但第一季我們的新訂單活動有所增加。由於關稅情勢的快速變化，不確定性導致我們的客戶正在評估其業務可能受到的影響，從而推遲了資本設備訂單。售後零件訂單占我們總訂單的 74%，達到創紀錄的 1.9 億美元。

As many of the first quarter of the year is often our strongest quarter in terms of parts bookings as our customers prepare for annual maintenance shutdowns. This strong demand benefits from our large installed base and our ability to deliver exceptional value to our customers. Second, our free cash flow remained healthy at $19 million.

由於我們的客戶正在為年度維護停工做準備，因此每年的第一季往往是我們零件預訂量最大的季度。這種強勁的需求得益於我們龐大的安裝基礎以及我們為客戶提供卓越價值的能力。其次，我們的自由現金流保持健康，達到 1,900 萬美元。

Our asset-like operating model enables us to capture solid cash flows even during challenging and volatile economic times. Revenue in the first quarter declined 4% compared to the same period last year due to weaker capital shipments in our industrial processing segment. Our aftermarket parts revenue made up 75% of Q1 revenue and was up 5% to a record $179 million. Well, our gross margin performance was excellent.

我們的資產式營運模式使我們能夠即使在充滿挑戰和動盪的經濟時期也能獲得穩定的現金流。由於工業加工部門的資本出貨量較弱，第一季營收與去年同期相比下降了 4%。我們的售後零件收入佔第一季營收的 75%，成長 5%，達到創紀錄的 1.79 億美元。嗯，我們的毛利率表現非常好。

Our adjusted EBITDA $48 million was down 8%. And lower operating leverage led to a decline in the adjusted EBITDA margin of 100 basis points compared to the same period last year. Next, I'd like to discuss the performance of each of our three operating segments, beginning with the flow control segment.

我們的調整後 EBITDA 為 4800 萬美元，下降了 8%。而較低的經營槓桿導致調整後的 EBITDA 利潤率與去年同期相比下降了 100 個基點。接下來，我想討論我們三個營運部門的表現，從流量控制部門開始。

The flow control segment experienced solid demand in the first quarter, led by North American businesses. Bookings of $100 million were up 6% compared to Q1 of last year. Q1 revenue increased 7% to $92 million with strong performance in our fluid handling product line, which includes our most recent acquisition.

在北美業務的帶動下，流量控制部門第一季需求強勁。1億美元的預訂金額與去年第一季相比成長了6%。第一季營收成長 7%，達到 9,200 萬美元，這得益於我們流體處理產品線（包括我們最近的收購）的強勁表現。

Aftermarket parts revenue made up 76% of total Cuban revenue and is expected to remain stable as the year progresses. A high percentage of aftermarket parts revenue helped drive adjusted EBITDA up 8%, resulting in adjusted EBITDA margin of 28.3%. We expect to deliver strong performance again this year in our flow control segment, despite transitory headwinds being introduced by the current geopolitical climate.

售後零件收入佔古巴總收入的 76%，預計今年將保持穩定。售後零件營收佔比較高，推動調整後 EBITDA 成長 8%，調整後 EBITDA 利潤率達 28.3%。儘管當前的地緣政治氣候帶來了暫時的逆風，但我們預計今年我們的流量控制部門將再次取得強勁表現。

Turning now to our industrial processing segment and slide eight, our aftermarket parts business was relatively stable, which helped to offset the weaker capital business in the first quarter. G1 revenue declined 15% compared to then record $106 million set in the same period last year.

現在轉到我們的工業加工部門和第八張幻燈片，我們的售後零件業務相對穩定，這有助於抵消第一季較弱的資本業務。G1 的營收與去年同期創下的 1.06 億美元相比下降了 15%。

This was largely due to a significant decline in capital shipments that was expected based on the relative softness in capital projects through 2024, particularly in our wood processing product line. Aftermarket parts revenue of Q1 made up a record 80% of total revenue in the segment. Q1 bookings on the other hand, were up 3% compared to the prior year period to $92 million.

這主要是由於資本出貨量大幅下降，這是根據 2024 年資本項目相對疲軟（尤其是我們的木材加工產品線）所預期的。第一季售後零件收入佔該部門總收入的 80%，創歷史新高。另一方面，第一季的預訂量與去年同期相比成長了 3%，達到 9,200 萬美元。

There continues to be significant capital project activity developed in this segment, though the current chaotic geopolitical environment makes the timing of these orders even more uncertain. The weaker revenue volume led to reduced operating leverage and adjusted EBITDA margin of 24.2%. Overall, our first quarter performances segment was soft.

儘管當前混亂的地緣政治環境使得這些訂單的時間更加不確定，但該領域仍在繼續進行重要的資本項目活動。收入減少導致經營槓桿下降，調整後的 EBITDA 利潤率為 24.2%。整體而言，我們第一季的業績表現疲軟。

This segment has high exposure to large capital business and the elevated uncertainty in global trade policy has significantly impacted the timing of capital projects. In our material handling segment, we experience solid demand for aftermarket parts which helped to offset a softer capital environment in the first quarter. Revenue of $57 million was up slightly compared to the prior year period with aftermarket parts making up 65% of Q1 revenue.

該部門對大型資本業務的曝險很大，全球貿易政策的不確定性增加嚴重影響了資本項目的時機。在我們的物料搬運部門，我們對售後零件的需求強勁，這有助於抵消第一季較弱的資本環境。營收為 5,700 萬美元，與去年同期相比略有成長，售後零件佔第一季營收的 65%。

Demand for capital equipment was down from the prior year period and overall bookings were flat. We're seeing growing activity in this segment, particularly in our high performance Below product line, and expect the number of capital projects to be executed in the coming quarters, although the timing can be somewhat uncertain. Adjusted EBITDA margin of 20.2% of revenue was flat compared to the same period last year.

資本設備需求較上年同期下降，整體預訂量持平。我們看到該領域的活動日益增多，特別是在我們的高性能 Below 產品線中，預計未來幾季將執行大量資本項目，儘管時間可能有些不確定。調整後的 EBITDA 利潤率為 20.2%，與去年同期持平。

Despite the geopolitical and trade uncertainties, the outlook for this segment remains positive as the end markets we serve, such as aggregates, mining, waste management, recycling are fundamentally strong. As we look to the second quarter of 2025 in the full year, we remain focused on strengthening our businesses around the world and adapting to navigate these challenging times.

儘管存在地緣政治和貿易不確定性，但由於我們服務的終端市場（如骨材、採礦、廢棄物管理、回收）基本面強勁，該領域的前景依然樂觀。展望 2025 年第二季全年，我們將繼續專注於加強全球業務並適應這些充滿挑戰的時期。

Despite the increasing uncertainty that limits our visibility. The longer term underlying fundamentals of our markets remain strong. Our aftermarket business continues to provide strength and stability even as capital project activity is affected by global trade and tariff uncertainties. We are confident in our ability to deliver our value proposition. Our balance sheet remains healthy.

儘管越來越多的不確定性限制了我們的可見性。我們的市場長期基本面依然強勁。即使資本項目活動受到全球貿易和關稅不確定性的影響，我們的售後市場業務仍繼續提供強勁和穩定。我們對自己實現價值主張的能力充滿信心。我們的資產負債表依然健康。

Our ability to generate strong free cash flow is solid. And with that, I'll turn the call over to Mike.

我們產生強勁自由現金流的能力是堅實的。說完這些，我將把電話轉給麥克。

Thank you, Jeff. I'll start with some key financial metrics from our first quarter. Gross margin was 46.1% in the first quarter '25, the highest gross margin since 2017. Gross margin was up 150 basis points compared to 44.6% in the first quarter '24. Over half this increase relates to the negative effect of acquired profit and inventory amortization, which lowered gross margin in the first quarter '24 by 90 basis points.

謝謝你，傑夫。我將從我們第一季的一些關鍵財務指標開始。2025 年第一季毛利率為 46.1%，為 2017 年以來的最高毛利率。毛利率較 2024 年第一季的 44.6% 上升了 150 個基點。這一增長中有一半以上與收購利潤和存貨攤銷的負面影響有關，這導致 24 年第一季的毛利率降低了 90 個基點。

The remaining increase is primarily associated with a higher overall percentage of aftermarket parts, which represented 75% in the first quarter '25 compared to 69% in the prior year. We only had a minor impact in the first quarter from tariffs. I'll discuss the prospect, prospective tariff impact when I review the guidance.

其餘的成長主要與售後零件整體比例的增加有關，2025 年第一季售後零件整體比例為 75%，而去年同期為 69%。第一季我們僅受到關稅的輕微影響。當我審查指導意見時，我將討論前景和預期的關稅影響。

SG&A expenses as a percentage of revenue increased to 29.8% in the first quarter '25 compared to 28.2% in the prior year period, primarily due to the comparatively lower revenue performance in '25. SG&A expenses increased $0.9 million or 1% to $71.2 million in the first quarter '25 compared to $70.3 million in the first quarter 24.

2025 年第一季度，銷售、一般及行政費用佔收入的百分比從去年同期的 28.2% 上升至 29.8%，這主要是由於 2025 年的收入表現相對較低。2025 年第一季度，銷售、一般及行政費用 (SG&A) 增加了 90 萬美元，即 1%，達到 7,120 萬美元，而 2024 年第一季為 7,030 萬美元。

This included an increase of $3.2 million from our acquisitions, partially offset by a $1.4 million favorable foreign currency translation effect and a $1.2 million decrease in acquisition related costs. Our effective tax rate in the first quarter was 24.3% and included tax benefits related to the vesting of equity awards, which lowered the effective tax rate by 1.3%.

其中包括來自我們收購的 320 萬美元的增加，但部分被 140 萬美元的有利外幣折算效應和 120 萬美元的收購相關成本減少所抵消。我們第一季的有效稅率為 24.3%，其中包括與股權獎勵歸屬相關的稅收優惠，這使有效稅率降低了 1.3%。

Our GAAP EPS decreased 3% to $2.04 in the first quarter, and our adjusted EPS decreased 12% to $2.10 which exceeded the high end of our guidance range by $0.05. Adjusted EBITDA decreased 8% to $47.9 million compared to $52.2 million in the first quarter of '24, principally due to lower capital revenue at our industrial processing segment, which led to reduced EBITDA performance.

第一季度，我們的 GAAP 每股盈餘下降 3% 至 2.04 美元，調整後每股盈餘下降 12% 至 2.10 美元，超出我們預期區間的上限 0.05 美元。調整後息稅折舊攤銷前利潤 (EBITDA) 下降 8% 至 4,790 萬美元，而 2024 年第一季為 5,220 萬美元，主要原因是我們工業加工部門的資本收入減少，導致 EBITDA 業績下降。

As a percentage of revenue adjusted EBITDA was 20% compared to 21% in the first quarter '24. Operating cash flow at $22.8 million was flat compared to the first quarter '24. Free cash flow increased 15% to $19 million in the first quarter '25 compared to $16.6 million in the first quarter '24. First quarter tends to be the weakest cash flow quarridor, as was the case in '24, due in part to the payment of management incentives.

調整後的 EBITDA 佔營收的百分比為 20%，而 24 年第一季為 21%。經營現金流為 2,280 萬美元，與 24 年第一季相比持平。2025 年第一季自由現金流成長 15%，達到 1,900 萬美元，而 2024 年第一季為 1,660 萬美元。第一季往往是現金流最弱的季度，就像 2024 年的情況一樣，部分原因是支付了管理層激勵措施。

Other non-operating uses of cash in the first quarter of '25 included $14 million of repayments on our debt, $3.8 million for capital expenditures, $3.8 million for dividends on our common stock, and $6 million for tax withholding payments related to the vesting of stock awards. Let me turn next to our EPS results for the quarter. Our adjusted EPS decreased $0.28 from $2.38 in the first quarter of '24 to $2.10 in the first quarter '25.

25 年第一季的其他非經營性現金用途包括 1,400 萬美元的債務償還、380 萬美元的資本支出、380 萬美元的普通股股息以及 600 萬美元的與股票獎勵歸屬相關的預扣稅支付。接下來我來介紹本季的每股盈餘結果。我們的調整後每股收益從 24 年第一季的 2.38 美元下降 0.28 美元至 25 年第一季的 2.10 美元。

This included increases of $0.08 due to a higher gross margin percentage, $0.07 due to lower operating expenses, $0.05 from the operating results of our acquisitions, and $0.05 due to lower net interest expense. These increases were offset by decreases of $0.52 due to lower revenue and $0.01 due to a higher non-controlling interest expense.

其中包括由於毛利率提高而增加 0.08 美元、由於營運費用降低而增加 0.07 美元、由於收購的營運結果而增加 0.05 美元以及由於淨利息費用降低而增加 0.05 美元。由於收入下降導致的 0.52 美元減少和非控制權益支出增加導致的 0.01 美元減少抵消了這些增加。

Collectively included in all the categories I just mentioned, was an unfavorable foreign currency translation effect of $0.08 in the first quarter '25 compared to the first quarter of last year due to the strengthening of the US dollar. Looking at our liquidity metrics on slide 15, our cash conversion days, which we calculate by taking days in receivables plus days in inventory and subtracting days in accounts payable.

綜合考慮我剛才提到的所有類別，由於美元走強，2025 年第一季與去年第一季相比，外幣折算產生了 0.08 美元的不利影響。檢視投影片 15 上的流動性指標，也就是我們的現金轉換天數，計算方法是將應收帳款天數加上庫存天數，再減去應付帳款天數。

Increased to 130 at the end of the first quarter '25 compared to 128 at the end of the first quarter '24. Working capital as a percentage of revenue was 16.8% in the first quarter '25 compared to 15.7% in the first quarter of '24. Our net debt, that is debtless cash, decreased$ 10 million sequentially to $183 million at the end of the first quarter of '25.

2025 年第一季末，數量為 130 家，而 2024 年第一季末，數量為 128 家。2025 年第一季營運資本佔營收的百分比為 16.8%，而 2024 年第一季為 15.7%。我們的淨債務（即無債務現金）季減 1,000 萬美元，至 2025 年第一季末的 1.83 億美元。

Our leverage ratio calculated in accordance with our credit agreement decreased to 0.95 at the end of the first quarter '25 compared to 0.99 at the end of '24. At the end of the first quarter '25, we had $133 million of borrowing capacity available under our revolving credit facility and an additional $200 million of uncommitted borrowing capacity. Before I review our guides for '25, I'll make some comments on tariffs.

根據我們的信貸協議計算的槓桿率在 2025 年第一季末下降至 0.95，而 2024 年末為 0.99。截至 2025 年第一季末，我們的循環信貸額度下有 1.33 億美元的可用借款能力，另外還有 2 億美元的未承諾借款能力。在回顧 25 年的指南之前，我想對關稅發表一些評論。

As you are well aware, in the first quarter, the Trump administration-initiated tariffs, modified tariffs, added new tariffs, and then reduced tariffs for 90 days on most countries while leaving a baseline tariff rate of 10% in place in addition to the tariffs put in place on steel and aluminum. The administration has imposed a very high tariff rate on imports from China, with China initiating a retaliatory tariff on US exports to China.

大家知道，第一季度，川普政府對大多數國家啟動關稅、修改關稅、增加新關稅，然後在90天內降低關稅，同時除了對鋼鐵和鋁徵收關稅外，還維持10%的基準關稅稅率。美國政府對來自中國的進口產品徵收了極高的關稅，中國也對美國對華出口產品徵收了報復性關稅。

Among the various impacts from the announced tariffs, the most significant impact kadant related the import of products from China and tariffs on imports of steel and aluminum. Specific to the steel and aluminum tariffs, the impact on steel is important to us. We noted that regardless of the country of origin, steel prices in the US increased 20% to 30%, essentially right after the tariffs were put in place.

在宣布的關稅帶來的各種影響中，最顯著的影響與凱登從中國進口的產品以及鋼鐵和鋁進口關稅有關。具體到鋼鐵和鋁關稅，對鋼鐵的影響對我們來說很重要。我們注意到，無論原產國是哪裡，美國的鋼鐵價格在關稅實施後基本上立即上漲了20%至30%。

We believe we'll be able to mitigate the impact of the steel price increase by working with our suppliers and cost sharing with our customers. The China tariffs will impact us over the short term while we work to realign our supply chain. We are estimating incremental material costs of approximately $5 million to $6 million or $0.32 to $0.39 per share in our April forecast associated with tariffs that cannot be mitigated in the short term.

我們相信，透過與供應商合作並與客戶分攤成本，我們將能夠減輕鋼鐵價格上漲的影響。在我們努力調整供應鏈期間，中國的關稅將在短期內對我們產生影響。在 4 月的預測中，我們估計與短期內無法緩解的關稅相關的增量材料成本約為 500 萬至 600 萬美元或每股 0.32 至 0.39 美元。

The majority of this impact is occurring in the second and third quarter prior to the full benefit of mitigation efforts being realized. This estimate is obviously subject to change based on the ongoing tariff negotiations. We continue to pursue opportunities to reduce the impact of these costs by finding alternative suppliers through cost sharing and in some cases making investments to change our manufacturing capabilities.

這種影響大部分發生在第二季和第三季度，當時緩解措施的效益尚未全部實現。根據正在進行的關稅談判，這一估計顯然可能會改變。我們將繼續尋求機會，透過分攤成本尋找替代供應商，並在某些情況下進行投資以改變我們的製造能力，以減少這些成本的影響。

And manufacture components at different kadant facilities. Another significant impact related to tariffs is the resulting uncertainty in the market which has impacted our customers' decision making process for our capital equipment. We have a very healthy level of activity for our capital equipment, and we have seen little disruption to capital order activity related to maintenance and mission critical equipment.

並在不同的凱登工廠生產零件。與關稅相關的另一個重大影響是由此產生的市場不確定性，這影響了我們的客戶對我們資本設備的決策過程。我們的資本設備活動水準非常健康，與維護和關鍵任務設備相關的資本訂單活動幾乎沒有受到干擾。

However, if customers have flexibility with the timing for their equipment purchase, they are delaying placing the order until there is more certainty and stability in the markets they serve. Some projects have already been delayed into the back half of '25 or into next year.

然而，如果客戶在設備購買時間上具有靈活性，他們會推遲下訂單，直到他們所服務的市場更加確定和穩定。一些項目已經被推遲到2025年下半年或明年。

That this is especially true for larger projects and greenfield projects where it is critical for the customer to understand how tariffs may impact future input and output costs. This environment has made it extremely difficult for our operations to forecast the timing of capital orders requiring significant judgment on order timing and future material costs.

對於大型專案和綠地專案來說尤其如此，對於這些專案來說，客戶了解關稅如何影響未來的投入和產出成本至關重要。這種環境使我們的營運極為難以預測資本訂單的時間，需要對訂單時間和未來材料成本進行大量判斷。

We will continue to monitor these tariff changes and will provide further updates as the year progresses and there is more clarity with the new regulations. As a result of these tariff-related impacts, we are revising our full year '25 guidance. We now expect revenue of $1.020 billion to $1.040 billion in '25 revised from our previous guidance of $1.040 billion to $1.065 billion.

我們將繼續監控這些關稅變化，並隨著時間的推移和新法規的進一步明確提供進一步的更新。由於這些與關稅相關的影響，我們正在修改 25 年全年指引。我們現在預計 2025 年的營收為 10.20 億美元至 10.40 億美元，高於先前預測的 10.40 億美元至 10.65 億美元。

And we now expect adjusted EPS of $9.05 to $9.25 which excludes $0.08 of acquisition related costs revised from our previous adjusted EPS guidance of $9.70 to $10.05. The revised adjusted EPS guidance includes a $0.32 to $0.39 impact directly from tariffs. The remainder of the guidance change is due to delays in capital orders as a result of the uncertainty created by the tariffs.

我們目前預計調整後每股收益為 9.05 美元至 9.25 美元，其中不包括 0.08 美元的收購相關成本，該成本與先前調整後的每股收益預期 9.70 美元至 10.05 美元相比有所修正。修訂後的調整後每股盈餘預期包含了 0.32 美元至 0.39 美元的關稅直接影響。指導方針變化的其餘部分是由於關稅造成的不確定性導致資本訂單延遲。

Looking at our quarterly revenue and EPS performance in '25, we expect that the second half of the year will be significantly stronger than the first half. Our revenue guidance for the second quarter '25 is $243 million to $250 million and our adjusted EPS guidance for the second quarter is $1.90 to $2 which excludes $0.01 of acquisition related costs.

縱觀我們 25 年的季度營收和每股盈餘表現，我們預計下半年的表現將明顯強於上半年。我們對 25 年第二季的營收預期為 2.43 億美元至 2.5 億美元，我們對第二季調整後每股收益預期為 1.90 美元至 2 美元，其中不包括 0.01 美元的收購相關成本。

The second quarter adjusted EPS guides includes an estimated $0.14 to $0.18 impact from tariffs. We now anticipate gross margins for '25 will be 44.2% to 44.7%. As a percentage of revenue, we now anticipate SG&A will be approximately 27.2% to 27.7%. For '25, we now anticipate slightly lower net interest expense of approximately $12 million to 12.4 million. And we now expect our recurring tax rate will be approximately 26% to 27%.

第二季調整後的每股盈餘指南包括關稅預計產生的 0.14 美元至 0.18 美元的影響。我們現在預計 25 年的毛利率將達到 44.2% 至 44.7%。作為收入的百分比，我們現在預計銷售、一般及行政費用將約為 27.2% 至 27.7%。對於 25 年，我們目前預計淨利息支出將略有下降，約 1,200 萬美元至 1,240 萬美元。我們現在預計我們的經常性稅率將約為 26% 至 27%。

In addition, the following guidance estimates remain unchanged for '25. R&D expense will be approximately 1.5% of revenue, depreciation and amortization expense of $49 million to $50 million and CapEx spending of $24 million to $26 million. That concludes my review of the financials, and then I will now turn the call back over to Michelle for our Q&A session. Michelle.

此外，以下指導估計對於 25 年保持不變。研發費用約佔收入的 1.5%，折舊和攤提費用為 4,900 萬至 5,000 萬美元，資本支出為 2,400 萬至 2,600 萬美元。這就是我對財務狀況的審查，然後我現在將電話轉回給米歇爾進行我們的問答環節。米歇爾。

Thank you. (Operator Instructions). And our first question will come from Ross Sparenblek with William Blair. Your line is open.

謝謝。（操作員指令）。我們的第一個問題來自 William Blair 的 Ross Sparenblek。您的線路已開通。

Hey good morning gentlemen.

嘿，先生們，早安。

Morning Ross.

早安，羅斯。

Hey, maybe just starting high level on the order book, I can appreciate it sounds like there's a bit of a pause. It also sounds like you guys have some pretty strong visibility to maybe just 20 million to 25 million of orders, being deferred in the 2026.

嘿，也許只是在訂單簿上開始高層，我可以理解這聽起來像是有一點停頓。聽起來你們對 2026 年推遲的訂單數量（可能只有 2000 萬到 2500 萬）有相當強的預見性。

Kind as we think about your customer conversations, and the sensitivity to that that push out, is there anything else we should look for, be aware of that might, cause further or deferrals in the next year and you get the sense that the overall kind of project funnel is still, pretty strong, or is there any risk of contraction here?

當我們考慮與客戶的對話以及對此的敏感性時，我們還應該尋找什麼，注意可能導致明年進一步的延期，您是否感覺到整體項目漏斗仍然很強勁，或者是否存在收縮的風險？

Yeah, Ross, one of the issues, of course, is that the projects get pushed off a quarter to the revenue recognition sometimes pushes it into the next year, and that's part of what we're dealing with here. I would say the discussion level and the activity level actually is reasonably strong, and before the craziness of these tariffs kicked in, several weeks ago, we, there was a, I would say an increase in activity.

是的，羅斯，當然，其中一個問題是，項目被推遲了一個季度，收入確認有時會推遲到下一年，這就是我們在這裡處理的部分問題。我想說的是，討論水平和活動水平實際上相當強勁，在這些關稅瘋狂實施之前的幾週，我們的活動有所增加。

We signed a nice order, early in the second quarter, a big capital order, and we're in discussions on a few more. So, I think it's still yet to be seen, how much of a pause the current environment will will cause. I think. We haven't seen any projects canceled. I think it's just an issue that, they just say, okay, I'm going to wait another two weeks here and see where things fall out.

我們在第二季初簽署了一項不錯的訂單，這是一筆大額資本訂單，我們還在討論其他一些訂單。所以，我認為，當前環境將造成多大的停頓還有待觀察。我認為。我們還沒有看到任何項目被取消。我認為這只是一個問題，他們只是說，好吧，我要在這裡再等兩個星期，看看事情會如何發展。

So, I would tell you that, and we've been saying this for some time that we're really in the beginning of the third year of what we consider to be a capital equipment recession started really in second quarter of '23, and our experience, in this business for our companies have been around for 100 plus years.

所以，我想告訴你，我們已經說了一段時間了，我們實際上正處於我們認為的資本設備衰退的第三年開始，這場衰退實際上始於 23 年第二季度，我們公司在這個行業的經驗已經存在 100 多年了。

We know that you can't continue to go without investing new equipment, and so they're going to have to start making these investments. One of the reasons we're still booking record levels of parts and consumables, even though the operating rates aren't at record levels right now, is because they're running old tired equipment, and it's taken a lot more parts of consumables to keep it running.

我們知道，如果不投資新設備就無法繼續經營，所以他們必須開始進行這些投資。儘管目前的營運率尚未達到創紀錄的水平，但我們仍然預訂了創紀錄水平的零件和消耗品，原因之一是他們正在運行老舊設備，並且需要更多的消耗品零件來維持其運作。

So they're going to have to start to invest in the business and we thought that this year, certainly the back half of the year, that was going to be the case. And it still might be, but there's just an added level of uncertainty now with all the chaos that this, these trade, negotiations is causing, and as you obviously know, they, depending on the day and the time of the day, they're different everywhere.

因此，他們將不得不開始投資這項業務，我們認為今年，尤其是下半年，情況將會發生這種情況。現在可能仍然如此，但由於這些貿易談判造成的所有混亂，現在的不確定性又增加了一層，而且正如你所知，根據日期和時間的不同，各地的情況都不同。

So it's just a very chaotic time right now, but we don't see any signs that projects are going away. If they get delayed a quarter, it can, push back our revenue recognition by [25%] on them, and some of that if it comes late in the year we'll slip into next year.

所以現在是一個非常混亂的時期，但我們沒有看到任何項目消失的跡象。如果它們延遲一個季度，我們的收入確認就會推遲 [25%]，如果它們延遲到今年晚些時候，我們的部分收入確認就會推遲到明年。

Yeah, I know that that's a good segue here. I mean, kind of thinking about that maintenance cycle. I mean, I believe last year the order book on the capital equipment side was a lot more greenfield related. Do you have a sense, I mean, is this, a year, two years of excess demand for kind of the maintenance spend?

是的，我知道這是一個很好的過渡。我的意思是考慮維護週期。我的意思是，我相信去年資本設備方面的訂單更與綠地相關。您是否感覺到，我的意思是，這是一年或兩年的維護支出過度需求？

Are we, yeah, is the average age of the installed base elevated by an excess couple of years, and then are we still kind of thinking 10% to 20%, order growth for 2025 and the capital equipment.

是的，安裝基數的平均使用年限是否增加了幾年，然後我們是否仍然認為 2025 年的訂單和資本設備成長率為 10% 到 20%。

Well, we know that the average age of our equipment is older than historical norms, which is often the case when you get economic uncertainty, where everybody pulls back, and so, we are benefiting from, our parts consumable, aspect because of that, but I think, we also put a lot of brand new capital out, and, in '21, '22, and it takes a couple years before that starts to generate parts business.

我們知道，我們設備的平均使用年限比歷史標準要長，當經濟出現不確定性時，通常就會出現這種情況，每個人都會退縮，因此，我們從零件消耗品方面受益，但我認為，我們也投入了大量全新的資本，在 21、22 年，需要幾年時間才能開始產生零件業務。

And so we will start to see, over the next couple of years, I think we'll start to see that new all that new installed equipment that we booked and sold, in 2021 '22, we'll see that start to generate parts as it starts to get some age on it. Consumables will pick up, of course, if operating rates start to pick up. They're kind of a function of economic activity and operating rates.

因此，我們將開始看到，在接下來的幾年裡，我認為我們將開始看到我們預訂和銷售的所有新安裝的設備，在 2021 年或 2022 年，我們將看到它們開始產生零件，因為它們開始老化了。當然，如果開工率開始回升，消耗品價格也會回升。它們有點像是經濟活動和營運率的函數。

But what we really, so I don't, we don't expect a big drop off in parts of consumables, but what we do expect is to see an increase in capital because capital is clearly performing below market, and they can't do that forever. And so, it's just a question of, when they start to get the comfort level to start to make those investments.

但我們實際上並不認為部分消耗品會大幅下降，但我們確實預期資本會增加，因為資本的表現明顯低於市場，而且他們不可能永遠這樣做。所以，問題只是，他們何時開始感到舒適，可以開始進行這些投資。

And as I said, we we're seeing a little activity, we booked a big project a couple weeks ago and we're in discussions on a few more, so we're seeing some activity, just a question of timing.

正如我所說，我們看到了一些活動，幾週前我們預訂了一個大項目，我們正在討論其他幾個項目，所以我們看到了一些活動，只是時間問題。

Awesome, I'll hop back into you. Thanks guys.

太棒了，我會跳回你身邊。謝謝大家。

And the next question will come from Gary Prestopino with Barrington. Your line is open.

下一個問題來自 Barrington 的 Gary Prestopino。您的線路已開通。

Good morning, Jeff and Mike. Mike, would you have the percentage of the revenue of consumables by segment for last year's first quarter, handy?

早安，傑夫和麥克。麥克，您能提供一下去年第一季各部門消耗品收入的百分比嗎？

Yeah, See in in flow control. It was 74%. In industrial processing it was 69% and material handling 62% and then overall as I mentioned in my comments 69%.

是的，請參閱流量控制。比例為 74%。在工業加工中，這一比例為 69%，在材料處理中，這一比例為 62%，而總體上，正如我在評論中提到的，這一比例為 69%。

Okay great. You know everything's in a quandary here because of these tariffs and I guess do you get the sense that. Once there's clarity on these tariffs. If there ever will be that your at least discretionary capital projects will then kind of move ahead or is there any potential that some of these things could just overall be canceled just because the tariffs become so onerous.

好的，太好了。你知道，由於這些關稅，這裡的一切都陷入了困境，我想你是否感覺到了這一點。一旦這些關稅明確起來。如果您的至少可自由支配的資本項目能夠繼續推進，或者是否有可能僅僅因為關稅變得如此繁重，其中一些項目就可能被取消。

Just trying to get an understanding of what your your in markets are feeling doing and saying.

只是想了解你在市場上的感受、行為和言論。

Yeah, it's really, it's pretty rare for projects to get canceled and we do see projects, every few years you'll see a project go away, but as far as as significant, a large number of projects getting canceled, it just doesn't happen, in this business. It's very, even in [0809], we had the financial crisis, things got put on hold for a couple of years, but then it came back pretty strong after that.

是的，項目被取消的情況確實很少見，我們確實會看到項目，每隔幾年你就會看到一個項目消失，但就重要性而言，大量項目被取消的情況，在這個行業中是不可能發生的。即使在 [0809] 年，我們遭遇了金融危機，事情被擱置了幾年，但之後又強勢回歸。

So they just now, is it possible that you know that the tariffs so disrupt global trade? Yeah, but you know what's going to happen is, of course, they're going to source from other places and because we're, international, we operate in every country in the world, we'll be, we'll pick up that business elsewhere, if it's not being produced and in Europe.

那麼他們剛才，您是否知道關稅會如此擾亂全球貿易？是的，但你知道會發生什麼，他們當然會從其他地方採購，因為我們是國際化的，我們在世界各國都有業務，如果不是在歐洲生產，我們就會在其他地方接手這項業務。

Then it'll be produced in the US or if it's not being produced in China, it'll be produced in Europe. So we'll chase that business because we're active everywhere in the world, to the extent that there's still global growth, we'll we'll benefit from that, although there could be some disruptions and relocations, associated with this.

然後它將在美國生產，或者如果它不在中國生產，它將在歐洲生產。因此，我們會追逐這項業務，因為我們在世界各地都很活躍，只要全球仍然保持成長，我們就將從中受益，儘管這可能會帶來一些中斷和遷移。

Okay, so very few of these things ever do get canceled then it's unusual.

好的，所以這些事情很少被取消，這很不尋常。

Normally when things get canceled, it's because, frankly, it's been in the developing world and it's mainly been because of lack of financing not so much demand.

通常情況下，當某項活動被取消時，坦白說，這是因為該活動發生在發展中國家，主要原因是缺乏資金，而不是需求不足。

And most of this impact on the capital side is going to be felt in the industrial processing segment this year.

今年，資本方面受到的影響大部分將在工業加工領域中體現。

If you look at the first quarter, flow control had a very good first quarter, really, and material handling was flat. It was really industrial processing on the capital side.

如果你看一下第一季度，你會發現流量控制確實表現得非常好，而材料處理則持平。這實際上是資本方面的工業加工。

That's the segment where we believe we'll have the strongest level of capital bookings this year.

我們相信，今年該領域的資本預訂量將達到最高水準。

Okay thank you appreciate it.

好的，謝謝。

And the next question comes from Kurt Yinger with D.A. Davidson. Your line is open.

下一個問題來自 D.A. Davidson 的 Kurt Yinger。您的線路已開通。

Great thanks and good morning everyone I I just wanted to start off, if we look at the Q2 guide and and some of the pressures there, how much of that is, maybe bookings in Q1 that that some of those projects have been deferred in the back half and and you have pretty good visibility at this stage and then I guess as we think about the ramp.

非常感謝，大家早上好，我只是想開始，如果我們看一下第二季度的指南和那裡的一些壓力，其中有多少，也許是第一季度的預訂量，其中一些項目在後半段被推遲了，並且您在這個階段有很好的可見性，然後我想當我們考慮坡道時。

That's kind of assumed in the back half for for sales. What would that suggest in terms of, the level of capital bookings that you'll need to see kind of in Q2 and Q3?

這對於銷售的後半部分來說是假設的。就您需要在第二季和第三季看到的資本預訂水平而言，這表明了什麼？

Yeah, you're right, Kurt, that the weakness here in the first quarters really has impacted some of what we thought we'd start to see some revenue in the second quarter along with good bookings in the second quarter, which would really lead us to a very strong second half. So I think when you, looking at what we're looking at currently.

是的，庫爾特，你說得對，第一季的疲軟確實影響了我們的預期，我們原以為第二季會有收入，同時會有良好的預訂量，這將使我們下半年的業績非常強勁。所以我認為當你看看我們目前正在看的東西時。

On the bookings front, we are going to really need, you've heard me mention kind of that 10% to 20%. We are going to need, I'd say 15% to 20% order flow on increase in order flow on the on capital to really make those, make the back half of the year, as Jeff said, there are, we've seen some good activity thus far in the second quarter, so. And we have a number of projects that we're tracking.

在預訂方面，我們確實需要，你聽我提到過 10% 到 20% 左右。我想說，我們需要將資本上的訂單流增加 15% 到 20%，才能真正實現這些目標，正如傑夫所說，在今年下半年，到目前為止，我們已經看到了第二季度的一些良好活動，所以。我們正在追蹤多個項目。

So we know they're there. I think my overarching concern, and you saw that in the guidance, is I think we could end up with a case where we actually get the orders, but because they have incrementally moved out, they'll, it'll get pushed to revenue in '26, so we could end up with a year with really quite good orders, but. Some of that revenue is going to be a '26 revenue.

所以我們知道他們在那裡。我認為我最擔心的是我們最終可能會收到訂單，但由於他們已經逐步撤出，所以訂單會在 26 年計入收入，因此我們最終可能會迎來訂單相當不錯的一年，但是。其中一些收入將成為 26 年收入。

Got it okay and I guess generally since you know the big tariff announcements at the beginning of this month, have you seen, a little bit of shock and awe at the start from customers and maybe some acceptance and realization that it's not the end of the world.

好的，我想一般來說，既然你知道本月初的重大關稅公告，你是否看到，客戶一開始有點震驚和敬畏，也許有些接受並意識到這不是世界末日。

Let's continue to move forward, or I guess what are you hearing in those conversations in terms of the push out you've already seen, and maybe what gives you confidence that those are still on the board this year?

讓我們繼續前進，或者我猜您在這些對話中聽到了什麼，就您已經看到的推動而言，也許是什麼讓您有信心今年這些仍在董事會中？

Yeah, it's, you're exactly right. Everybody's, kind of still in shock, so I don't know if they fully informed their thinking right now, because it changes, every day, literally. I remember we were in a meeting two weeks ago and we went in in the morning and we had one tariff for the project, and we came out in the afternoon and we had a different set of tariffs for the project.

是的，你說得完全正確。每個人仍然處於震驚之中，所以我不知道他們現在是否完全了解情況，因為它每天都在變化。我記得兩週前我們開過一次會，早上我們進去時，對這個項目制定了一種關稅，下午我們出來時，對這個項目制定了一套不同的關稅。

So literally the cost input costs changed in one day. So it's, I think it's just that right now people are still trying to figure out, exactly what's going on and as it's just human nature when there's that kind of uncertainty. You just don't do anything.

因此，成本投入成本實際上在一天之內就改變了。所以，我認為現在人們仍在試圖弄清楚到底發生了什麼，因為當存在這種不確定性時，這只是人性。你什麼都不做。

And so they're just even things that were very close to being let, they just are sitting on their hands, okay, we got the contract, we're negotiating the contracts, we're waiting for the signatures. They're just signatures are coming more slowly because everybody's saying, Well, let's let's understand what all this means. So it's, I think it's just the chaotic nature of it that that I think is causing the pause, but I think that.

因此，他們只是對那些幾乎就要被允許的事情袖手旁觀，好吧，我們得到了合同，我們正在談判合同，我們正在等待簽名。只是簽名來得慢了些，因為大家都在說，好吧，讓我們來了解這一切意味著什麼。所以，我認為正是它的混亂性質導致了停頓，但我認為是這樣。

Most of our customers believe ultimately this as we do, frankly, that this is going to get sorted out, there probably will be some tariffs that do survive and we'll have to, try to mitigate those as much as possible, but I think people think that it probably is going to get sorted out. The issue you have now though, of course, is you saw that they just released the first quarter GDP and it was down.

坦白說，我們的大多數客戶最終都和我們一樣相信這個問題會得到解決，可能會有一些關稅仍然存在，我們必須盡可能地減輕這些關稅的影響，但我認為人們認為這個問題可能會得到解決。當然，你現在面臨的問題是，你看到他們剛發布的第一季 GDP 數據下降了。

And so, that clearly, and this chaos kind of started really late, right in the quarter, although there were some hints that it was coming. So now the question is, are we going to see a further economic slowdown in the second quarter because of all of this, and I wouldn't be surprised if we do.

顯然，這種混亂開始得非常晚，就在本季度，儘管有一些跡象表明它即將到來。所以現在的問題是，由於所有這些因素，我們是否會看到第二季經濟進一步放緩？如果真是這樣，我不會感到驚訝。

And again, that always, it adds another layer of, to the decision-making process, okay, now we're in a re technical recession, how does that factor into our thinking? But as I said a few minutes ago, these projects, our equipment tends to be part of a very expensive project, we're a small piece of it. We're, $5 million or $10 million in a $200 million or $400 million project.

再說一次，這總是會為決策過程增加另一層影響，好吧，現在我們正處於技術衰退之中，這對我們的思考有何影響？但正如我幾分鐘前所說的那樣，這些項目中，我們的設備往往是非常昂貴的項目的一部分，我們只是其中的一小部分。我們在 2 億美元或 4 億美元的專案中投入了 500 萬美元或 1000 萬美元。

And so normally when these things get started. Yeah, these guys are long term planners just like we are and they don't let short term disruptions kind of totally stop the project. They just slow it down.

通常當這些事情開始時。是的，這些人和我們一樣都是長期規劃者，他們不會讓短期幹擾完全阻止專案。他們只是放慢了速度。

Okay. That makes sense and then just with the revision to guidance, Mike maybe you could just update us in terms of kind of what you're assuming in terms of parts versus capital mix in terms of sales this year and.

好的。這是有道理的，然後僅通過對指導的修改，邁克，也許您可以向我們更新您對今年銷售方面的零件與資本組合的假設。

I guess implicit in that question would be, do you accept, expect the strength and parts and consumables that you saw here in Q1 to persist or maybe, was there any pull forward benefit, given that maintenance dynamic or even maybe some anticipation by customers that that prices for parts and components would go up and maybe a little bit of an inventory build.

我想這個問題隱含的意思是，您是否接受，預計您在第一季度看到的零部件和消耗品的優勢會持續下去，或者，考慮到維護動態，或者甚至客戶預期零部件價格會上漲，以及可能會有一點庫存增加，是否存在任何提前效益。

Yeah, I do think Kurt, that there was some folks who pre-bought, when I talked to the people in the field, I. There was some of that, but I think it ended up just really, being a few million, it wasn't anything that I felt like I really needed to, I better, make sure this is in the call and that of course is factored into our guides for the second quarter, but to on the, on your question in regards to parts and consumables.

是的，庫爾特，我確實認為，有些人預先購買了，當我與該領域的人交談時，我。有一些這樣的人，但我認為最終真的只有幾百萬，這不是我真正需要的，我最好確保這在電話會議中，當然，這也被考慮到我們第二季度的指南中，但關於零件和消耗品的問題。

It relates to percent of revenue going forward. In the back half of the year where we hope to have better capital revenues than in the first half. I'm looking at, I have right now, third and fourth quarter at 68% and 64% and the year on parts and consumables coming out at 69%.

它與未來的收入百分比有關。我們希望下半年的資本收入能比上半年更好。我正在查看，目前，第三季和第四季分別為 68% 和 64%，全年零件和消耗品的佔比為 69%。

So, as you recall, some of the businesses we bought, were heavy parts and consumable business, so that is giving us a little bit of a uplift here. We finished out last year at 66 and if our forecasts are correct, we'll end up this year at 69.

所以，正如你記得的，我們收購的一些業務是重型零件和消耗品業務，所以這給我們帶來了一點提升。去年我們的成績是 66 名，如果我們的預測正確的話，今年我們的成績將會是 69 名。

Okay, excellent appreciate the colour guys thank you.

好的，非常感謝你們的顏色，謝謝。

You're Welcome.

不客氣。

(Operator Instructions). And the next question comes from Walter Liptak with Seaport Research. Your line is open.

（操作員指令）。下一個問題來自 Seaport Research 的 Walter Liptak。您的線路已開通。

Hey, good morning, guys. So, Martin, so Trump just started a cabinet meeting, so maybe the tariffs will change again, by lunchtime.

嘿，大家早安。馬丁，川普才剛開始內閣會議，所以也許到午餐時間關稅會再次改變。

We were thinking about putting the tariff charge in on all of our prices, but after he hammered Amazon yesterday, we rethought that and said, okay, we probably won't show the tariff impact on our pricing doesn't seem to like that.

我們原本考慮將關稅費用加到我們所有的價格中，但在他昨天嚴厲批評亞馬遜之後，我們重新考慮了這個想法，並說，好吧，我們可能不會在定價中顯示關稅的影響，我們似乎不喜歡這樣。

Oh, alright, well I wanted to ask about that specifically. You called out some numbers I think $36 million and you put an EPS bracket around it. What is that exactly? Is that, prices that tariffs that you're expecting that you're going to have to absorb into the margins, or is that, selling prices that you're expecting, I guess, or is that volume?

哦，好吧，我想具體問一下這個問題。您提到了一些數字，我認為是 3600 萬美元，並且您給它加上了 EPS 括號。那到底是什麼？這是您預期必須吸收到利潤中的關稅價格嗎？還是您預期的銷售價格，或數量？

That you don't think you'll get because of the tariffs. what is in that estimate of the tariff hit that you presented?

您認為您不會因為關稅而得到這些。您給出的關稅衝擊估計是多少？

Yeah, that it's a so it's $5 million to $6 million and that will be included in our material cost. So and it's, these are, it's the direct impact of the tariffs that as best we can estimate we will end up having to incur before our mitigation efforts are completed.

是的，大約是 500 萬到 600 萬美元，這將包含在我們的材料成本中。所以，這就是關稅的直接影響，據我們估計，在我們的緩解措施完成之前，我們最終將不得不承擔這些影響。

So kind of when you look at the guidance, we're down, say on the low end, $0.65 on the high end, $0.80, and roughly half that decrease on those is the impact of what we believe we'll have to pay in tariffs as we procure material for for jobs.

因此，當您查看指導意見時，我們會發現我們的成本下降了，比如說低端下降了 0.65 美元，高端下降了 0.80 美元，其中大約一半的下降是我們認為在為工作採購材料時必須支付關稅的影響。

Okay, but won't you, as you invoice customers, put in a surcharge or something for those incremental costs?

好的，但是當您向客戶開立發票時，您會不會對這些增量成本加收附加費或其他費用呢？

Yes, we have a number of levers we're pulling surcharges will be one of them, but the issue is that that isn't instantaneous. So although the divisions have those plans and will execute on them. Most of the units are saying we'll start to have traction. I mean, frankly, they've, I believe, essentially already addressed the steel issue, which was, that that was a blow in and of itself with prices going up 25% to 30%.

是的，我們正在採取多種措施，附加費就是其中之一，但問題是這不是瞬間就能實現的。儘管各部門都有這些計劃並且會執行。大多數單位都表示我們將開始獲得牽引力。我的意思是，坦白說，我相信他們基本上已經解決了鋼鐵問題，這本身就是一個打擊，因為價格上漲了 25% 到 30%。

So now we're down to the, I'll say the rest of the tariffs and where you're sourcing from and again they can't be mitigated instantly. So what we're planning on doing, hoping to do is we'll pull the levers and as we go through the year, hopefully we'll, by the time we get to the end of the year, we'll have large, we'll be able to largely mitigate any impact of the tariffs on a go forward basis.

所以現在我們要討論的是其餘的關稅以及你的採購來源，而且它們無法立即緩解。因此，我們計劃要做的、希望做的就是，我們將採取各種措施，隨著時間的流逝，希望到年底時，我們將能夠在很大程度上減輕關稅在未來帶來的影響。

Okay, do you with the tariffs, you would you hope to be, I guess tariff price/cost neutral by the end of the year is so this is just a catch up or do you think you'll have to absorb some of those tariffs permanently?

好的，您對關稅有什麼看法？我猜到今年年底關稅價格/成本會保持中性，所以這只是一個追趕，還是您認為您必須永久吸收其中的一些關稅？

Yeah, it's a great question. I mean, it kind of remains to be seen, but our goal, of course, is to be neutral. But you know that remains to be seen as Jeff mentioned, we think our competitors are essentially in the same boat as us, so we don't think we're at a competitive disadvantage.

是的，這是一個很好的問題。我的意思是，這還有待觀察，但我們的目標當然是保持中立。但正如傑夫所提到的，這還有待觀察，我們認為我們的競爭對手基本上與我們處於同樣的境地，所以我們不認為我們處於競爭劣勢。

Okay, alright, I appreciate that and then just one follow up for me on understanding the. The back half and the full year guidance, so in the guidance you're expecting that there's going to be some recovery in capital projects, but it sounds like you need to get some of those projects that are in the funnel right now to get.

好的，好吧，我很感激，然後我只需要跟進一下就可以理解了。下半年和全年的指導，所以在指導中你預計資本項目會有所復甦，但聽起來你需要獲得一些現在正在進行的項目。

Let go or you know to get awarded to you by in the second quarter or we'll be looking at the numbers coming down again for the back half of the year is that right?

放手，或者你知道在第二季度給你獎勵，或者我們會看到下半年的數字再次下降，對嗎？

Yeah, I, we do need some to come in here in the second quarter for sure, some, and then we need that activity on the capital side to continue in the third and fourth quarter. So and that's, I, we took down the revenue is really by the, on our guidance ranges buying the low end $20 million, the high end $25 million.

是的，我們確實需要一些資金在第二季度進入，然後我們需要資本方面的活動在第三季和第四季繼續進行。所以，我們根據指導範圍扣除了實際收入，最低為 2000 萬美元，最高為 2500 萬美元。

Because, basically in the first quarter we had very soft capital activity, but the projects are still there and now we are seeing some projects, better activity here in the second quarter. So, but that even just that delay, that as I said, answering a question a little bit earlier, that's my kind of my overarching concern is we may end up having a great booking year on capital, but it may come in later, late enough that it causes the revenue to go into '26.

因為，基本上在第一季我們的資本活動非常疲軟，但專案仍然存在，現在我們看到一些專案在第二季的活動有所改善。所以，但即使只是這種延遲，正如我之前回答問題時所說的那樣，我最擔心的是，我們最終可能會在資本上有一個很棒的預訂年，但它可能會來得更晚，太晚以至於導致收入進入 26 年。

Okay, right, because of the percentage of completion for the long cycle projects.

好的，對，因為長週期專案的完成百分比。

We. Well, that's, it's a good comment on your part, on the percent complete or now they call it over time that is really largely in our fiber processing. So when you hear us say oh we got a fiber processing order those tend to be on an overtime basis but on the other.

我們。嗯，這是你對完成百分比的一個很好的評論，或者現在他們稱之為隨著時間的推移，這實際上主要是在我們的纖維加工中。因此，當您聽到我們說「哦，我們收到了一份纖維加工訂單」時，這些訂單往往是加班完成的，但另一方面。

Areas like I'll say wood products where we see a number of good order possibilities those will be point in time which basically means we're going to recognize revenue when we ship it and that's my concern if those projects say move out a few months or a quarter then instead of it being delivered in the fourth quarter '25 could be first quarter '26, so.

我會說，在木製品等領域，我們看到了許多良好的訂單可能性，這些訂單將是按時完成的，這基本上意味著我們將在發貨時確認收入，我擔心的是，如果這些項目推遲幾個月或一個季度，那麼交付時間就不是在 2025 年第四季度，而是 2026 年第一季度。

Okay, got it. Okay, thank you.

好的，明白了。好的，謝謝。

Yeah.

是的。

And our next question comes from Kurt Yinger with D.A. Davidson. Your line is open.

下一個問題來自 D.A. Davidson 的 Kurt Yinger。您的線路已開通。

Great thanks appreciate it. Just two quick follow ups the $5 million to $6 million I guess if we were to think about the overall cost impact without mitigation efforts and kind of the current tariff environment what would that kind of total additional cost be?

非常感謝。只需快速跟進兩個問題，500 萬至 600 萬美元，我想如果我們考慮一下沒有緩解措施和當前關稅環境的總體成本影響，那麼這種總額外成本是多少？

Well, it's $0.32 to $0.39.

嗯，是 0.32 美元到 0.39 美元。

No we're mitigating a lot of the tariffs 5 to 6 is what we haven't mitigated. Do we know what the total care.

不，我們正在減輕很多關稅，但第 5 至第 6 項關稅我們還沒有減輕。我們知道什麼是全面照護嗎？

Excellent question, Kurt, and the people in the field were swimming upstream to keep up with all the changes, so we, I boiled down the request to just tell us what you won't be able to mitigate immediately, in the near future immediately, and we'll put that into our guidance.

庫爾特，這個問題問得好，現場的人們都在逆流而上，跟上所有的變化，所以我把請求歸結為告訴我們哪些是你們在不久的將來無法立即緩解的，我們會把這些納入我們的指導中。

So I don't, I can't tell you it's twice this number. But, like I said, the steel is 25% to 30%, and I think our folks have largely addressed that.

所以我不知道，我不能告訴你它是這個數字的兩倍。但是，就像我說的，鋼鐵佔25%到30%，我認為我們的員工基本上已經解決了這個問題。

That's our single biggest cost, single biggest input cost to steel.

這是我們最大的單筆成本，也是鋼鐵最大的單筆投入成本。

Got you, so it's more of a steel dynamic as opposed to, some of the imports versus China. The steel would be the much larger bucket of those two. Is that the right way to think about it?

明白了，所以這更多的是一種鋼鐵動態，而不是一些進口產品與中國之間的動態。鋼桶是兩者中較大的一個。這是正確的思考方式嗎？

Well, overall, steel is significant. It's significant to us. When I, when we look at sourcing, of course the in terms of what hasn't been mitigated yet, the biggest piece of that is from is both coming in from China and stuff from US to China.

嗯，總的來說，鋼鐵很重要。這對我們來說意義重大。當我們考慮採購時，當然就尚未緩解的情況而言，其中最大的一部分是來自中國的貨物以及從美國到中國的貨物。

We were surprised. I was surprised at how much we still sell into China from from here when we started looking at the numbers, and we know. I knew we were going to have the tariff hit for the things we bring in from our from our divisions there. You, you'll remember that about 80% of what we build in China stays in the China market, and then they may about 20% they build for their sister divisions.

我們很驚訝。當我們開始查看這些數字時，我很驚訝我們仍然從這裡向中國銷售這麼多產品，我們知道這一點。我知道我們從那裡的部門進口的商品將會受到關稅影響。您會記得，我們​​在中國生產的產品約有 80% 留在中國市場，然後可能有約 20% 是為其姊妹部門生產的。

Some in the US, and that's where we're getting the hit. But I was a little surprised actually how much because China put a reciprocal tariff on. I was surprised at how much that was for stuff we're sending to China still. It was a lot more than I would expect it. So, to the extent that, the US and China can get this under control, that would be pretty impactful for us.

一些在美國，這就是我們受到打擊的地方。但其實我有點驚訝，因為中國也徵收了互惠關稅。我對我們仍要寄往中國的物品的價格感到很驚訝。這比我預期的要多得多。因此，如果美國和中國能夠控制住這個局面，那麼對我們來說將會產生很大的影響。

Right, and not to get too sidetracked, but in terms of what you might be making here and shipping to China, would that primarily be related to, acquisitions you've done over time where you've leverage some of the sales force there and, brought businesses that that previously weren't international over there or is that maybe too general?

好的，我們不要跑題，但就您在這裡生產並運往中國的產品而言，這主要是否與您長期以來的收購有關？在收購中，您利用了那裡的一些銷售人員，並將之前不國際化的業務帶到了那裡，還是這可能太籠統了？

Well, there's some critical parts that we still make here that that that our Chinese divisions incorporate into the into their products. There's some technology that we've kind of safeguarded here that, they don't engineer that we send over fully built, as just as an IP protection standpoint. So that's a lot of it.

嗯，我們仍然在這裡生產一些關鍵零件，我們的中國分部將這些零件融入他們的產品中。我們在這裡保護了一些技術，他們沒有設計我們發送的完整技術，這只是從智慧財產權保護的角度來看。就這麼多了。

Yeah got you. Okay, perfect. And then, thinking ahead potentially a little bit, do you, I guess size for us, how much of Carmana's business that's manufactured in in can kind of ultimately get shipped down to the US and I mean it doesn't seem like any of that's exposed to tariffs at this stage but you know if something were to change, how would you think about kind of framing that?

是的，明白了。好的，完美。然後，稍微提前考慮一下，我想您可以估算一下，Carmana 在美國生產的業務中有多少最終可以運往美國，我的意思是，目前看來這些業務似乎都沒有受到關稅的影響，但是如果情況發生變化，您會如何考慮呢？

They, the capital equipment, the machines that are made are made at in Canada, and they come in under the USMCA, so they're, there, there's no tariffs on those currently.

這些資本設備和機器都是在加拿大製造的，而且是根據 USMCA 進口的，所以目前這些設備沒有關稅。

I mean, but if you know if they, if something was to go with, if it was to flip on the USMCA, then you know they would, it would be impacted by that and if it was if we thought it was long term, then we'd have to look at, other alternatives. But as of right now they're they they qualify under the you know our our trade agreement.

我的意思是，但如果你知道他們，如果要採取某些行動，如果要顛覆 USMCA，那麼你知道他們會受到影響，如果我們認為這是長期的，那麼我們就必須考慮其他替代方案。但截至目前，他們符合我們的貿易協定的資格。

Got it. Okay, thank you.

知道了。好的，謝謝。

(Operator Instructions) I am showing no further questions at this time. I would now like to turn the call back over to Jeff Powell for closing remarks.

（操作員指示）我目前沒有其他問題。現在我想將電話轉回給傑夫鮑威爾，請他作最後發言。

Thanks, Michel. So before we wrapping up the call today, I just want to leave you with a few takeaways. The newer activity was up for the start of '25, and it was kind of broad-based. There's still a lot of discussions going on around new projects, although the timing of these projects is more uncertain than normal because of the issues that we've just discussed here today.

謝謝，米歇爾。因此，在我們結束今天的通話之前，我只想給你們留下一些要點。較新的活動於 25 年初開始，並且具有廣泛的基礎。圍繞新項目仍在進行大量討論，儘管由於我們今天剛剛討論的問題，這些項目的時機比平時更加不確定。

Despite the continued geopolitical and trade policy uncertainty, our employees around the globe continue to focus on meeting our customers' needs and finding new ways to deliver long term value to our to our stakeholders. And lastly, our financial health is still excellent.

儘管地緣政治和貿易政策的不確定性持續存在，但我們全球的員工仍繼續專注於滿足客戶的需求，並尋找新的方式為我們的利害關係人提供長期價值。最後，我們的財務狀況依然良好。

We still have strong free cash flows. Our balance sheet is in very good position, and we look forward to delivering good value to our stakeholders again in 2025. So with that, I want to thank you for joining us today and we look forward to talking to you in the future.

我們仍然擁有強勁的自由現金流。我們的資產負債表狀況非常好，我們期待在 2025 年再次為我們的利害關係人帶來良好的價值。因此，我要感謝您今天的參與，我們期待將來與您交談。

This concludes today's conference call. Thank you for participating. You may now disconnect.

今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。