Kennametal Inc (KMT) 2025 Q4 法說會逐字稿

Good morning. I would like to welcome everyone to kind of meal 4th quarter and fiscal 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star and the number 1 on your telephone keypad. If you would like to withdraw your question, please press star, then the number 2. Please note that this event is being recorded. I would now like to turn the conference over to Michael Peay, Vice President of Investor Relations. Please go ahead.

早安.歡迎大家參加第四季和 2025 財年財報電話會議。所有線路均已靜音，以防止任何背景噪音。演講者發言後，將進行問答環節。如果您想在此期間提問，只需按下電話鍵盤上的星號和數字 1 即可。如果您想撤回您的問題，請按星號，然後按數字 2。請注意，此事件正在被記錄。現在，我想將會議交給投資者關係副總裁 Michael Peay。請繼續。

Thank you, operator. Welcome, everyone, and thank you for joining us to review Canada Metal's 4th quarter and fiscal 2025 results. This morning we issued our earnings press release and posted our presentation slides on our website. We will be referring to that slide deck throughout today's call. I'm Michael Peay, Vice President of Investor relations.

謝謝您，接線生。歡迎大家，感謝您與我們一起回顧加拿大金屬公司第四季和 2025 財年的業績。今天早上，我們發布了收益新聞稿，並在我們的網站上發布了簡報幻燈片。在今天的電話會議中，我們將一直參考該投影片。我是投資者關係副總裁 Michael Peay。

Joining me on the call today are Sanjay Chaoe, President and Chief Executive Officer, and Pat Watson, Vice President and Chief Financial Officer.

今天與我一起參加電話會議的還有總裁兼執行長 Sanjay Chaoe 和副總裁兼財務長 Pat Watson。

After Sanjay and Pat's prepared remarks, we will open the line for questions.

在桑杰和帕特發表完準備好的演講後，我們將開放提問環節。

At this time, I'd like to direct your attention to our forward-looking disclosure statement. Today's discussion contains comments that constitute forward-looking statements and as such involve a number of assumptions, risks, and uncertainties that could cause the company's actual results, performance, or achievements to differ materially from those expressed in or implied by such statements. These risk factors and uncertainties are detailed in Canan Metals SEC filings. In addition, we will be discussing non-gap financial measures on the call today. Reconciliations to GAAP financial measures that we believe are most directly comparable can be found at the back of the slide deck and on our form AK on our website.

此時，我想提請您注意我們的前瞻性揭露聲明。今天的討論包含構成前瞻性陳述的評論，因此涉及許多假設、風險和不確定性，可能導致公司的實際結果、業績或成就與此類陳述中表達或暗示的結果、業績或成就有重大差異。這些風險因素和不確定性在 Canan Metals SEC 文件中有詳細說明。此外，我們將在今天的電話會議上討論非差距財務措施。我們認為最直接可比較的與 GAAP 財務指標的對帳可以在投影片背面和我們網站上的 AK 表格中找到。

And with that, I'll turn the call over to Sanjay.

說完這些，我會把電話轉給桑傑。

Thank you, Mike. Good morning and thank you for joining us.

謝謝你，麥克。早安，感謝您加入我們。

I'll begin the call today with a brief overview of the full year.

今天我將首先簡要回顧一下全年的情況。

And then some and market commentary.

然後是一些市場評論。

From there, that will cover the quarterly financial results as well as the fiscal '26 outlook.

從那裡開始，它將涵蓋季度財務業績以及 26 財年的展望。

Finally, I'll make some comments reflecting on my 1st year as CEO and provide an update as to our plans moving forward.

最後，我將對我擔任執行長的第一年做出一些回顧，並提供我們未來計劃的最新情況。

Then we'll open the line for questions.

然後我們將開放問答熱線。

Turning to slide 3, Let me begin by highlighting some of the accomplishments the team delivered despite market headwinds.

翻到投影片 3，首先讓我來重點介紹團隊在面臨市場逆風的情況下所取得的一些成就。

During the fourth quarter, our infrastructure team secured a $25 million multi-year award with the US defense customer.

第四季度，我們的基礎設施團隊與美國國防客戶簽訂了 2,500 萬美元的多年合約。

In metal cutting, we secured winds in aerospace and defense, as well as project winds in power generation, supporting AI data centers within the energy and market.

在金屬切削領域，我們確保了航空航太和國防領域的風能，並規劃了發電領域的風能，為能源和市場內的人工智慧資料中心提供支援。

These key wins position as well, moving forward in markets that are benefiting from long term secular growth trends.

這些關鍵勝利也使公司在受益於長期成長趨勢的市場中取得了進展。

We successfully executed tariff mitigation actions to address the impact of trade policies on our business.

我們成功實施了關稅減免措施，以因應貿易政策對我們業務的影響。

Where appropriate, we rerouted internal supply chain as well as leverage our global footprint to optimize product flow.

在適當的情況下，我們重新規劃了內部供應鏈並利用我們的全球影響力來優化產品流程。

We also implemented surcharges and while we experienced an impact in the quarter as anticipated, we remain committed to fully offsetting the impact moving forward.

我們也實施了附加費，雖然我們在本季度受到了預期的影響，但我們仍致力於全面抵消未來的影響。

On the cost front, in January we announced plans to lower structural costs by reducing employment costs and consolidating manufacturing operations.

在成本方面，我們於一月份宣布了透過降低僱用成本和整合製造業務來降低結構性成本的計劃。

During the 4th quarter, we ceased operations in Greenfield, Massachusetts, and we consolidated facilities in Spain to advance our footprint rationalization efforts.

在第四季度，我們停止了在馬薩諸塞州格林菲爾德的業務，並整合了西班牙的設施，以推進我們的足跡合理化工作。

We also recognized $6 million in restructuring savings this quarter, and we have achieved run rate savings of approximately $65 million inception to date for all cost out actions at the end of fiscal '25 and expect approximately $90 million by the end of fiscal '26.

本季我們也實現了 600 萬美元的重組節餘，截至 2025 財年末，所有成本削減措施的運行率節餘已達到約 6,500 萬美元，預計 2026 財年末將達到約 9,000 萬美元。

We made modest progress on portfolio optimization by completing the sale of our Goshen facility in early June.

我們在 6 月初完成了 Goshen 工廠的出售，在投資組合優化方面取得了一定進展。

I want to thank the team for their support, and while we have made headway on our structural costs and portfolio actions, we have much more to do.

我要感謝團隊的支持，雖然我們在結構性成本和投資組合行動方面取得了進展，但我們還有很多工作要做。

I will provide some additional comments on this later in the call.

我稍後會在電話會議中對此發表一些補充評論。

The results reflect the continued broad market weakness that has impacted our end markets for the past eight quarters.

這一結果反映出，過去八個季度以來，持續的整體市場疲軟已經影響了我們的終端市場。

Weak global production volume.

全球產量疲軟。

Declining US land-based wig counts and slowing light vehicle production, especially in EA, continued to pressure our performance.

美國陸基假髮數量下降以及輕型車輛生產放緩（尤其是在東非），繼續給我們的業績帶來壓力。

Adding to these pressures are supply chain disruptions in certain markets and continued uncertainty around tariffs and the potential effect tariffs have on global production.

某些市場的供應鏈中斷、關稅的持續不確定性以及關稅對全球生產的潛在影響也加劇了這些壓力。

Now turning to the full year.

現在轉向全年。

In addition to market softness in several markets, foreign exchange headwinds pressured our top line as sales declined 4% organically.

除了多個市場的市場疲軟之外，外匯逆風也給我們的營收帶來壓力，導致銷售額有機下降 4%。

On a segment basis, metal cutting declined 5%, infrastructure declined 2%.

從細分市場來看，金屬切削下降 5%，基礎設施下降 2%。

Most of our markets experienced mid single digit declines on a constant currency basis, though aerospace and defense was a bright spot with mid single digit growth.

以固定匯率計算，我們的大多數市場都經歷了中等個位數的下滑，但航空航太和國防市場是一個亮點，實現了中等個位數的成長。

Energy was flat.

能源持平。

All regions on a constant currency basis experienced low single digit declines.

以固定匯率計算，所有地區均出現低個位數下降。

Adjusted EPS was $1.34 as several one-time items and restructuring savings offset the lower sales and production volumes.

調整後的每股收益為 1.34 美元，因為幾項一次性項目和重組節省抵消了較低的銷售和生產量。

Cash flow from operating activities for the year was $208 million.

本年度經營活動產生的現金流量為 2.08 億美元。

Finally, we return $122 million to shareholders through share repurchases of $60 million and dividends of $62 million.

最後，我們透過 6,000 萬美元的股票回購和 6,200 萬美元的股息向股東返還 1.22 億美元。

In summary, our performance reflected market softness in our continued efforts to get the best results possible in that environment.

總而言之，我們的業績反映了市場疲軟，我們繼續努力在這種環境下取得最好的結果。

We know we have a lot more to do here, which I'll speak to more in a moment.

我們知道我們還有很多事情要做，稍後我會詳細講。

Slide 16 in the appendix for additional details on our full year results.

有關我們全年業績的更多詳細信息，請參閱附錄中的第 16 張幻燈片。

Now I want to provide some color around in market conditions deflected in our fiscal '26 outlook at the mid point of our range.

現在，我想提供一些有關 26 財年展望中處於區間中點的市場狀況的資訊。

In aerospace and defense overall, we expect low double digit growth, reflecting higher OEM build rates as production and supply chain conditions improve.

在航空航太和國防領域，我們預計整體成長率將達到兩位數，這反映出隨著生產和供應鏈條件的改善，原始設備製造商的建造率將更高。

Defense continues to experience growth from increased spending and projects.

國防開支和項目不斷增加，國防支出持續成長。

Transportation is expected to decline in mid single digit based on IHS global production forecasts, which have been especially volatile as customers are working through product mix evolution.

根據 IHS 全球生產預測，預計運輸量將下降中位數個位數，由於客戶正在努力應對產品組合的演變，因此生產量波動較大。

In supply chain reconfiguration due to trade policies.

由於貿易政策導致的供應鏈重組。

General engineering is expected to be down low single digit as global production metrics continue to remain stagnant.

由於全球生產指標持續停滯不前，預計通用工程產量將下降個位數。

We anticipate the energy and market to be flat.

我們預計能源和市場將保持穩定。

Finally, earthworks is projected to be down mid single digit.

最後，土方工程預計將下降個位數中段。

17 in the appendix for additional detail on our markets.

17 有關我們市場的更多詳細信息，請參閱附錄。

Now let me turn the call over to Pat, who will review the 4th quarter financial performance and the fiscal '26 outlook.

現在，讓我將電話轉給帕特，他將回顧第四季度的財務表現和 26 財年的展望。

Thank you, Sanjay, and good morning everyone. I will begin on slide 4 with a review of the Q4 operating results.

謝謝你，桑傑，大家早安。我將從第 4 張投影片開始回顧第四季的經營業績。

Our results for the quarter reflect the continued broad-based market softness affecting all of our end markets and regions.

本季的業績反映出持續廣泛的市場疲軟影響了我們所有的終端市場和地區。

The sales in the quarter came in slightly below our expectations as a result of modest shortfalls in general engineering from continued market softness, mining pressures in earthworks, and supply chain disruptions in aerospace and defense.

由於市場持續疲軟導致一般工程銷售略有下降、土方工程採礦壓力以及航空航太和國防供應鏈中斷，本季銷售量略低於我們的預期。

On an organic basis in Q4, sales decreased year over year at 5%, with metal cutting declining 4% and infrastructure declining 5%.

第四季有機銷售額較去年同期下降 5%，其中金屬切割下降 4%，基礎設施下降 5%。

Regionally, on a constant currency basis, we experience low to mid single digit declines.

從地區來看，以固定匯率計算，我們經歷了低至中等個位數的下降。

Similarly, by end market, we experience low to mid single digit declines in all of our end markets.

同樣，就終端市場而言，我們所有的終端市場都經歷了低至中等個位數的下滑。

In energy, the decline was due to lower energy activity in EEA and lower rig counts in the Americas.

能源領域的下降是由於歐洲經濟區能源活動減少以及美洲鑽井數量減少。

Transportation within metal cutting was impacted by continued OEM production softness, mainly in EEA.

金屬切割領域的運輸受到原始設備製造商 (OEM) 生產持續疲軟的影響，主要發生在歐洲經濟區 (EEA)。

We experienced an unusual decline in aerospace and defense sales in the Americas. We lapped a large order delivery and infrastructure last year and had a temporary supply chain disruption at one of our metal cutting customers this year.

我們在美洲的航空航太和國防銷售出現了異常下滑。去年，我們完成了一筆大訂單的交付和基礎設施建設，今年，我們的一位金屬切割客戶的供應鏈出現了暫時中斷。

These discrete items were partially offset by growth anemia from OEM build rates.

這些離散項目被 OEM 製造率的成長乏力部分抵消。

Lower industrial production continues to affect general engineering across both segments.

工業產量下降繼續影響兩個領域的一般工程。

And lower mining activity in the Asia Pacific and the Americas was partially offset by higher construction and earthworks.

亞太地區和美洲採礦活動的減少被建築和土方工程的增加部分抵消。

Adjusted EBA margin was 14.8% versus 17.7% in the prior year quarter.

調整後的 EBA 利潤率為 14.8%，而去年同期為 17.7%。

The decline in adjusted EEA margin was primarily from lower volumes across the business as well as the expected unfavorable effect of tariffs netted the surcharges we implemented.

調整後的 EEA 利潤率下降主要是由於整個業務量的下降以及關稅扣除我們實施的附加費的預期不利影響。

These unfavorable items were not offset by the higher prices, restructuring benefits, and the positive net effect from the tornado which occurred in the prior year.

這些不利因素並未因價格上漲、重組收益以及上一年龍捲風帶來的淨正面效應而得到抵銷。

During the quarter, we realized approximately $6 million in savings from the restructuring program we announced in January.

本季度，我們透過一月份宣布的重組計劃節省了約 600 萬美元。

Additionally, we have increased this program and now expect approximately $35 million in annualized savings, up from the $15 million we originally communicated.

此外，我們已擴大該計劃的規模，目前預計每年可節省約 3500 萬美元，高於我們最初宣布的 1500 萬美元。

At year end we achieved $65 billion of run rate savings against the $100 million dollar target we set at our last investor day.

截至年底，我們實現了 650 億美元的運行率節省，而我們在上一次投資者日設定的目標是 1 億美元。

Adjusted EPS declined to $0.34 compared to $0.49 in the prior year quarter. And finally, as part of our capital allocation strategy, we continued the share repurchase program with $5 million of shares bought back and $15 million in dividends paid.

調整後每股收益從去年同期的 0.49 美元下降至 0.34 美元。最後，作為我們資本配置策略的一部分，我們繼續股票回購計劃，回購了 500 萬美元的股票並支付了 1500 萬美元的股息。

The bridge on slide 5 shows the effect on EPS of operations, including all the factors I just discussed, plus currency, taxes, and share count.

第 5 張投影片上的橋樑展示了營運對每股盈餘的影響，包括我剛才討論的所有因素，以及貨幣、稅收和股票數量。

The year over year effect of operations this quarter was negative. This reflects lower sales and production volumes, higher wage and general inflation, higher raw material costs, pricing, and incremental year after year restructuring savings of approximately $6 million.

本季的營運較去年同期影響為負面。這反映了銷售量和產量的下降、工資和普遍通貨膨脹的上升、原材料成本和定價的上升、以及逐年增加的約 600 萬美元的重組節省。

The $0.07 net benefit related to the tornado that occurred last year includes a $0.04 benefit from the charges incurred in the prior year and $0.03 from the net insurance proceeds received this year.

與去年發生的龍捲風相關的 0.07 美元淨收益包括前一年產生的費用帶來的 0.04 美元收益和今年收到的淨保險收益帶來的 0.03 美元收益。

Currency impact of $0.04, which reflects transaction gains, including a preferential Bolivia exchange rate.

貨幣影響為 0.04 美元，反映了交易收益，包括優惠的玻利維亞匯率。

As discussed last quarter, unmitigated tariff costs were 4 cents of EPS.

正如上個季度所討論的，未減免的關稅成本為每股收益的 4 美分。

You can also see the effects of the tax rate, which was $0.02. Other reflects lower share count and interest expense, which was neutral.

您還可以看到稅率的影響，即 0.02 美元。其他反映了較低的股票數量和利息支出，這是中性的。

Slide 6 and 7 detail the performance of our segments this quarter.

第 6 張和第 7 張投影片詳細介紹了我們本季各部門的表現。

Metal cuttings reported and organic sales declined 4% compared to the prior year quarter regionally excluding the effects of currency exchange, Asia Pacific was down 1%, the Americans declined 4%, and EEA declined 5%.

金屬切削液報告顯示，有機銷售額與去年同期相比下降了 4%，排除貨幣匯率的影響，亞太地區下降了 1%，美洲地區下降了 4%，歐洲經濟區下降了 5%。

Looking at sales by end market on a constant currency basis, aerospace and defense grew 1% year by year from higher OEM production in EMEA, partially offset by prior year OEM project timing and the customer supply chain disruption in the Americas this quarter.

以固定匯率計算，從終端市場銷售來看，航空航太和國防領域由於歐洲、中東和非洲地區 OEM 產量增加而年增 1%，但部分被上年 OEM 專案時間安排和本季美洲客戶供應鏈中斷所抵銷。

Transportation declined 4%, mainly due to lower volume in EIA.

運輸量下降了 4%，主要是由於 EIA 運輸量下降。

General engineering declined 5% with weakness due to lower industrial activity in EMEA and prior year indirect channel order timing in the Americas. And lastly, energy declined 6% this quarter from lower activity due to weak energy prices.

由於歐洲、中東和非洲地區工業活動減少以及美洲地區去年間接通路訂單時間安排不佳，一般工程業務下滑 5%。最後，由於能源價格疲軟，本季能源活動減少，導致能源價格下降 6%。

Metal cutting adjusted operating margin of 7.9% decreased 550 basis points year by year due to lower volumes, higher wages, inflation, and net tariff costs of approximately $4 million partially offset by price and restructuring savings of $4 million.

金屬切割調整後的營業利潤率為 7.9%，年減 550 個基點，原因是產量下降、工資上漲、通貨膨脹以及約 400 萬美元的淨關稅成本，但部分被 400 萬美元的價格和重組節省所抵消。

Turning to slide 7 for infrastructure.

翻到幻燈片 7，了解基礎設施。

Organic sales decreased by 5% year over year with unfavorable business days and the effect of the divestiture at 1% each.

由於營業日不佳以及資產剝離的影響，有機銷售額年減 5% 。

Foreign exchange contributed a 1% tailwind.

外匯貢獻了1%的順風。

Regionally, on a constant currency basis, Asia Pacific declined 4%, EEA declined 5%, and the Americas declined 7%.

從地區來看，以固定匯率計算，亞太地區下降 4%，歐洲經濟區下降 5%，美洲下降 7%。

From an end market perspective, energy grew 1%, mainly from project timing in EMEA, partially offset by lower US land rig counts and drilling activity in the Americas.

從終端市場角度來看，能源成長了 1%，主要得益於歐洲、中東和非洲地區的專案時機，但美國陸地鑽機數量減少和美洲鑽井活動減少部分抵消了這一增長。

General engineering declined 5% with lower demand in the Americas and EMEA partially offset by modest growth in Asia Pacific.

通用工程下降了 5%，美洲和歐洲、中東和非洲地區的需求下降被亞太地區的溫和成長部分抵消。

Earthworks declined 7% from lower mining activity due to lower coal prices in the Americas and Asia Pacific, partially offset by higher America's construction activity. Lastly, aerospace and defense declined 16% due to a large prior year order in the Americas.

由於美洲和亞太地區煤炭價格下跌，採礦活動減少，土方工程業務下降了 7%，但美國建築活動的增加部分抵消了這一影響。最後，由於美洲地區去年的訂單量較大，航空航太和國防領域下降了 16%。

An adjusted operating margin declined year by year to 6.8%, primarily from lower sales and production volumes, including certain plant shutdowns and higher raw material costs partially offset by the $7 million net effect of the tornado, price and restructuring savings of $2 million.

調整後的營業利潤率逐年下降至 6.8%，主要原因是銷售量和產量下降，包括某些工廠停工和原材料成本上升，但被龍捲風造成的 700 萬美元淨效應以及 200 萬美元的價格和重組節省部分抵消。

Now turning to slide 8 to review our free operating cash flow and balance sheet.

現在翻到第 8 張投影片回顧我們的自由經營現金流和資產負債表。

Our full year free operating cash flow was $121 million compared to $175 million reported in the prior year.

我們的全年自由經營現金流為 1.21 億美元，而前一年為 1.75 億美元。

The decline in cash flow is primarily the result of lower net income versus the prior year and an increase in inventory from higher tungsten costs compared to a reduction in inventory in FY24.

現金流下降主要是由於淨收入較上年下降，以及鎢成本上升導致庫存增加（而 2024 財年的庫存則減少）。

Net capital expenditures were $87 million compared to $102 million in the prior year.

淨資本支出為 8,700 萬美元，而去年同期為 1.02 億美元。

In total, we returned approximately $20 million to shareholders through our share repurchase and dividend programs this quarter.

總體而言，本季我們透過股票回購和股利計畫向股東返還了約 2,000 萬美元。

During the quarter, we repurchased 232,000 shares or $5 million under our $200 million dollar authorization. And as we have every quarter since becoming a public company over 50 years ago, we paid a dividend to our shareholders.

在本季度，我們根據 2 億美元的授權回購了 232,000 股，即價值 500 萬美元。自 50 多年前成為上市公司以來，我們每季都會向股東派發股息。

We remain committed to returning cash to shareholders while executing our strategy to drive growth and marginal improvement in this challenging environment.

我們將繼續致力於向股東返還現金，同時執行我們的策略，以在充滿挑戰的環境中推動成長和邊際改善。

We continue to maintain a healthy balance sheet and debt maturity profile with $840 million of cash and revolver availability at quarter end.

我們繼續保持健康的資產負債表和債務到期狀況，季末擁有 8.4 億美元的現金和循環信貸額度。

The full balance sheet can be found on slide 21 in the appendix.

完整的資產負債表可以在附錄的第 21 張投影片中找到。

Turning to slide 9 regarding our full year outlook, we are providing a range for both the full year and the 1st quarter, beginning now with the full year.

轉到有關全年展望的第 9 張幻燈片，我們提供了全年和第一季的範圍，從全年開始。

We expect FY26 sales to be between $1.95 billion and $2.05 billion with volume ranging from 5% to flat.

我們預計 26 財年的銷售額將在 19.5 億美元至 20.5 億美元之間，交易量將在 5% 至持平之間。

Price and tariff surcharge realization of approximately 4% combined.

價格和關稅附加費實現總額約為4%。

And an approximate 2% tailwind from foreign exchange.

外匯帶來約 2% 的順風。

As a point of information, the recent divestiture represented approximately 1.5% of FY25 sales.

值得一提的是，最近的資產剝離約佔 25 財年銷售額的 1.5%。

On an operating income basis, foreign exchange is expected to be an $8 million dollar tailwind, and non-cash pension expense is expected to be a headwind of $5 million.

從營業收入來看，預計外匯將帶來 800 萬美元的順風，而非現金退休金支出預計將帶來 500 萬美元的逆風。

Approximately $35 million of restructuring savings has been included.

其中包括約 3500 萬美元的重組節省。

From a timing perspective, we expect these restructuring benefits to be 4,060 weighted first half to second half.

從時間角度來看，我們預計這些重組收益在上半年至下半年的加權值為 4,060。

We expect adjusted EPS to be in the range of $0.90 to $1.

我們預計調整後的每股盈餘將在 0.90 美元至 1 美元之間。

On the cash side, the full year outlook for capital expenditures is approximately $90 million and free operating cash flow is approximately 120% of adjusted net income.

現金方面，全年資本支出預計約 9,000 萬美元，自由經營現金流量約為調整後淨收入的 120%。

The bridge on slide 10 highlights the main drivers impacting EPS at the midpoint of our outlook.

幻燈片 10 上的橋樑突顯了影響我們展望中期 EPS 的主要驅動因素。

The year over year effect of operations is positive. This reflects higher price and restructuring savings partially offset by lower sales and production volume, higher raw material and tariff costs, higher wages, and general inflation.

經營績效年比呈現正向態勢。這反映了價格和重組節省的增加，但被銷售和生產量下降、原材料和關稅成本上升、工資上漲和普遍通貨膨脹部分抵消。

The outlook includes approximately $0.15 of headwinds from prior year one-time items related to IRA manufacturing credits and the net insurance proceeds from the impact of the FY24 tornado.

該前景包括與 IRA 製造業信貸相關的上一年一次性項目帶來的約 0.15 美元的不利因素以及 FY24 龍捲風影響帶來的淨保險收益。

You can also see the effects of the tax rate and currency on EPS with taxes of 6 cents and currency neutral as the weaker US dollar is offset by favorable transactional FXs related to Bolivia recorded in the prior year.

您還可以看到稅率和貨幣對每股盈餘的影響，稅率為 6 美分，貨幣中性，因為美元疲軟被上一年記錄的與玻利維亞相關的有利交易外匯所抵消。

Other reflects lower interest income partially offset by lower share count.

其他因素反映利息收入減少，但被股份數量減少部分抵銷。

Turning to slide 11 regarding our first quarter outlook, we expect Q1 sales to be between $465 million and $485 million with volume ranging from 7 to 3%, price and tariff surcharge realization of approximately 4%, and 2% positive impact from foreign exchange. Our Q1 range reflects a volumetric decline that is generally in line with our historical norms. And also includes a sequential step up from foreign exchange and price.

轉到有關我們第一季展望的第 11 張投影片，我們預計第一季銷售額將在 4.65 億美元至 4.85 億美元之間，銷量將在 7% 至 3% 之間，價格和關稅附加費實現約為 4%，外匯帶來 2% 的正面影響。我們的 Q1 範圍反映出產量下降，這與我們的歷史常態基本一致。並且還包括外匯和價格的連續上漲。

We expect adjust the EPS in the range of 20 to $0.30. The other key assumptions for the quarter are noted on the slide, and with that, I'll turn it back over to Sanjay.

我們預計每股收益將在 20 美元至 0.30 美元之間調整。投影片上列出了本季的其他關鍵假設，然後我將把發言權交還給 Sanjay。

Thank you, Pat.

謝謝你，帕特。

Turning to slide 12.

翻到第 12 張投影片。

I want to take a moment to reflect on my 1st year as CEO.

我想花點時間回顧我擔任執行長的第一年。

And provide a framework for the future.

並為未來提供一個框架。

During the year, I spent a lot of time with customers and employees across both segments.

在這一年中，我花了很多時間與兩個部門的客戶和員工在一起。

My focus was to learn about the broader enterprise and continue to identify opportunities for improvement.

我的重點是了解更廣泛的企業並繼續尋找改進的機會。

Which I'll talk about in a moment.

我稍後會談到這一點。

We continued our focus on growth, winning key projects in defense and AI power generation, among others.

我們繼續專注於成長，贏得了國防和人工智慧發電等領域的重點項目。

We made progress on a $100 million dollar fiscal '27 cost our target, exiting fiscal '25 with approximately $65 million of annualized savings.

我們在實現 27 財年 1 億美元成本目標方面取得了進展，到 25 財年結束時，年度節省金額約為 6,500 萬美元。

We strengthen our capabilities in lean tools.

我們加強了精實工具方面的能力。

By conducting over 35 Kaizen events company-wide and strategic growth projects.

透過開展超過 35 項全公司範圍的改善活動和策略性成長項目。

Such as our digital customer experience initiative.

例如我們的數位客戶體驗計劃。

By expanding our partnerships with the investment in Toolpath.

透過對 Toolpath 的投資來擴大我們的合作夥伴關係。

Building upon our existing relationships with Autodisk and module works.

建立我們與 Autodisk 和模組工作的現有關係。

We completed our first portfolio action with the sale of our Goshen facility.

我們透過出售戈申工廠完成了我們的第一個投資組合行動。

Additionally, in line with the plans we laid out at Investor Day in 2023, we executed footprint actions that included two site closures.

此外，根據我們在 2023 年投資者日制定的計劃，我們實施了包括關閉兩個站點在內的足跡行動。

I also strengthened our executive bench, bringing in Dave Bertolini to lead the metal cutting team and promoting Fazal Hamadi to run infrastructure.

我還加強了我們的管理團隊，聘請戴夫·貝爾托里尼 (Dave Bertolini) 領導金屬切割團隊，並提拔法扎爾·哈馬迪 (Fazal Hamadi) 負責基礎設施建設。

One of the things that I have realized during this 1st year.

這是我在第一年意識到的事情之一。

It's just how much opportunity for improvement can a metal have.

這只是金屬有多少改進的機會。

In order to unlock that value, we must fix the structural cost issues holding back our performance.

為了釋放這一價值，我們必須解決阻礙我們表現的結構性成本問題。

Additionally, it has become apparent that modernization, while necessary to upgrade our operational and technical capabilities.

此外，顯然現代化對於提升我們的作戰和技術能力是必要的。

Resulted in more capacity than current market conditions support.

導致產能超出當前市場條件所支持的水平。

These factors drove us to look at our strategy and long term goals differently.

這些因素促使我們以不同的方式看待我們的策略和長期目標。

And while we remain committed to our value creation pillars, We are prioritizing right sizing capacity in our cost structure to set the company up for long term success.

在我們繼續致力於價值創造支柱的同時，我們優先考慮成本結構中的適當產能，以確保公司的長期成功。

Let me elaborate here.

讓我在這裡詳細說明一下。

Previously we committed to 3 to 5 plant consolidations based on a set of assumptions that included 1 to 2% market keger.

此前，我們根據包括 1% 至 2% 的市場啤酒份額在內的一系列假設，承諾合併 3 至 5 家工廠。

Frankly, that assumption is no longer relevant.

坦白說，這個假設不再適用。

Due to continued market pressure.

由於持續的市場壓力。

As a result, capacity optimization remains one of our top priorities.

因此，產能優化仍然是我們的首要任務之一。

With the goal to reduce our global footprint across both businesses.

我們的目標是減少這兩項業務的全球影響力。

This includes consolidation of operations and maximizing the efficiency and utilization rates of all locations.

這包括整合營運並最大限度提高所有地點的效率和利用率。

The plan is to complete this in 2 phases.

計劃分兩個階段完成。

Phase one, complete foreclosures by the end of fiscal '27 with an updated cost savings of $125 million.

第一階段，在 27 財年結束前完成止贖，最新成本節省 1.25 億美元。

Exceeding our original target by $25 million.

超出我們原定目標 2500 萬美元。

We now expect this program to incur cash restructuring costs of 125 million.

我們現在預計該計劃將產生1.25億美元的現金重組成本。

Phase 2 will result in the reduction of 2 additional facilities by the end of fiscal '28.

第二階段將導致在 28 財政年度結束時減少另外 2 個設施。

Together these two phases reflect 6 total consolidations.

這兩個階段總共反映了 6 次合併。

Which exceeds our previous target of 3 to 5 outlined at investor day.

這超過了我們在投資者日制定的 3 到 5 個目標。

And extends the overall timeline by 12 months.

並將整體時間表延長 12 個月。

These actions are complex.

這些行動很複雜。

Will take time to complete and need to be thoughtfully executed to minimize customer disruptions.

需要花費一些時間才能完成，並且需要經過深思熟慮才能執行，以盡量減少對客戶的干擾。

We believe these actions will enable us to operate efficiently in the current environment and still maintain flexibility for a more robust recovery when that does occur.

我們相信，這些行動將使我們能夠在當前環境下有效運營，並在經濟復甦時保持靈活性，以實現更強勁的復甦。

This is an important step toward addressing our structural costs.

這是解決結構性成本的重要一步。

And should help ease the margin pressures caused by current low volumes.

並有助於緩解當前低銷售造成的利潤壓力。

In addition, We will continue to advance our initiatives focused on above market growth and continuous improvement while also evaluating opportunities to enhance our portfolio.

此外，我們將繼續推動專注於超越市場的成長和持續改進的舉措，同時評估增強我們產品組合的機會。

By taking this disciplined approach, we can advance our near term priorities while also moving forward with our full value creation strategy for the long term.

透過採取這種嚴謹的方法，我們可以推進我們的近期優先事項，同時推進我們的長期全面價值創造策略。

And with that, operator, please open the line for questions.

接線員，請打開熱線來回答問題。

Thank you. And ladies and gentlemen, if you would like to ask a question during this time, simply press stars and the number 1 on your telephone keypad. If you would like to withdraw your question, please press stars in the number 2.

謝謝。女士們、先生們，如果您想在這段時間內提問，只需按下電話鍵盤上的星號和數字 1 即可。如果您想撤回您的問題，請按數字 2 中的星號。

And our first question today will come from A Castillo with Morgan Stanley. Please go ahead.

今天我們的第一個問題來自摩根士丹利的 A Castillo。請繼續。

Thanks and good morning. Just wanted to maybe, hi, just quick question maybe on the fiscal year '26 outlook, can you provide just a little bit more color on kind of what you're seeing maybe fiscal one date and just how that kind of informs your views on on the segment outlook for the full year.

謝謝，早安。只是想，你好，我只是想問一個關於 26 財年展望的快速問題，您能否提供更多關於您所看到的財年第一日期的信息，以及這些信息如何影響您對全年分部前景的看法。

Yeah, sure, Angel. First, let me start by saying, we have taken a balanced view on our outlook for 26 as we looked at the market indicators, we cite industrial production index, PMI, and also, we talk to customers, we look at the all the accounts and all that. So overall what we see, like I've said before, mid single digit. Declines in transportation, oil and gas and earthworks, aerospace and defense growing into low double digit.

是的，當然，安吉爾。首先，我要說的是，當我們查看市場指標、引用工業生產指數、PMI 時，我們對 26 年的前景持平衡看法，而且，我們與客戶交談，我們查看所有帳戶等。所以總體而言，正如我之前所說的，我們看到的是中等個位數。運輸、石油天然氣和土方工程、航空航太和國防領域的降幅均達兩位數。

So I think we are kind of seeing similar start to the year like what we are projecting here for the full year.

所以我認為我們看到的年初情況與我們對全年的預測類似。

So at this point pretty much on track to what I will say at midpoint.

因此，現在基本上已經與我在中間要說的內容相符了。

Got it. That's helpful. And then I wanted to touch on just the discussion about the shift in strategy to maybe more kind of portfolio optimization. I guess the way I'm kind of reading that, and correct me if I'm wrong, but just the changes and maybe more focus on cost and production footprint seems to maybe screen as a little less conservatism given near term demand and more kind of a structural, challenges that need to be kind of fixed. Can you maybe talk about Maybe two sides of that like how much of that is just kind of metal positioning given I kind of thought you would probably be a better positioned for the domestic market versus competitors and so maybe how much of it is just specific to can metal versus maybe more macro, factors where you're seeing just overall kind of slowdown in production or that you think will persist longer than kind of the near term kind of dislocations we've seen.

知道了。這很有幫助。然後我想談談關於策略轉變到可能更多的投資組合優化的討論。我想我是這樣理解的，如果我錯了請糾正我，但僅僅是變化以及可能更多地關注成本和生產足跡，似乎可能看起來不那麼保守，因為短期需求和更多的結構性挑戰需要解決。您能否談談其中的兩個方面，例如其中有多少只是金屬定位，因為我認為您可能比競爭對手更適合國內市場，所以其中有多少只是特定於金屬罐，還是更多的宏觀因素，您看到的整體生產放緩或您認為將持續更長時間的因素比我們所看到的短期混亂更長時間。

Thank you. Yeah, sure.

謝謝。是的，當然。

Yeah, Angel, I think it will be a combination of both. I do think that, we have seen two years of slowdown in the market and now, we're projecting even volume decline in fiscal '26. So of course there are a lot of different factors out there. It's very difficult to project calendar year 26 at this point, but based on what we have available at this point, we have taken. A balanced approach on that. However, we also know that the things that we are doing with respect to right size and capacity and cost structure, these are going to be sustainable changes. We're making changes structurally, and we are also prepared, for volume to come back, and we do believe that volume will come back because we do participate in a lot of markets that still have, good long term prospects.

是的，安吉爾，我認為這將是兩者的結合。我確實認為，我們已經看到市場連續兩年放緩，現在，我們預測 26 財年的銷售量還會下降。當然，還有很多不同的因素。目前很難預測 26 年的日曆，但根據我們目前掌握的信息，我們已經採取行動。對此採取平衡的方法。然而，我們也知道，我們在合適的規模、產能和成本結構方面所做的事情將是可持續的變化。我們正在進行結構性變革，我們也為交易量的回升做好了準備，我們確實相信交易量會回升，因為我們確實參與了許多仍然具有良好長期前景的市場。

Thank you.

謝謝。

And our next question will come from Julianne Mitchell with Berkeys. Please go ahead.

我們的下一個問題來自 Berkeys 的 Julianne Mitchell。請繼續。

Hi, good morning.

嗨，早安。

Good morning. Maybe you just wanted to start with the fiscal '26 outlooks, maybe help us if you can with any kind of seasonality of earnings, first half, second half, and what's embedded on the top line. And also when I'm looking at that slide 10, which is very helpful on the EPS bridge.

早安.也許您只是想從 26 財年的展望開始，如果可以的話，請您幫我們了解一下收益的季節性、上半年、下半年以及收入組成方面的情況。而且當我查看幻燈片 10 時，它對 EPS 橋段非常有幫助。

Maybe put a finer point on, I'm not sure, maybe tariff headwinds because it looks like your guidance embeds no operating margin expansion or perhaps operating margins down in fiscal 26, perhaps tariffs are part of that. I think that was a $0.04 headwind in the June quarter and maybe help us understand what's embedded for the full year ahead.

或許可以更詳細地說明一下，我不確定，也許是關稅阻力，因為看起來您的指導意見沒有包含營業利潤率擴張，或者 26 財年的營業利潤率下降，也許關稅是其中的一部分。我認為這是 6 月季度的 0.04 美元逆風，也許可以幫助我們了解未來全年將面臨什麼。

Yeah, so maybe the best place for us to start, I think I'll hit all of your kind of questions here, Julian, is you know we just think about the business. I'll say starting from a sales volume perspective, if you think about where we ended Q4 at about $516 million worth of revenue, you kind of have to normalize that for the divestis that we had during the quarter. If you do that, you'll get to a number that's closer to a 510. And then from that point, right, we would see, I would say normal seasonal sequential development volumetrically, and you know we generally talk about being down 8 to 10%, Q1 to Q2, or excuse me, Q4 to 1. And so we expect that volumetric decline, but layered in on top of that, we're going to have some tailwinds coming from, pricing and tariff surcharges as well as favorability from an FX perspective. And so that kind of sets you up for from a seasonality perspective in Q1 and on that basis, you kind of roll forward, we're anticipating the year pretty much rolling out in a normal sequential pattern throughout the year.

是的，所以也許我們開始的最好地方是，我想我會在這裡回答你所有的問題，朱利安，你知道我們只考慮生意。我想說，從銷售量的角度來看，如果你想到我們第四季結束時的收入約為 5.16 億美元，那麼你必須將這一數字與我們在本季度進行的資產剝離相比較而言正常化。如果你這樣做，你會得到一個更接近 510 的數字。然後從那時起，對的，我們會看到，我想說正常的季節性連續發展量，你知道我們一般談論的是下降 8% 到 10%，第一季到第二季度，或者對不起，第四季度到 1 季度。因此，我們預計交易量會下降，但除此之外，我們還將獲得一些來自定價和關稅附加費以及外匯的有利因素。因此，從第一季的季節性角度來看，這為您做好了準備，在此基礎上，您可以向前推進，我們預計全年的進展基本上會按照正常的連續模式進行。

Now I think it's important to kind of think about that. Obviously we've talked about having some, unfavorable volume as we move throughout the year, but on the other side of that, we've had a pretty significant uptick in tungsten costs over the last 4 or 5 months. There's a significant amount of pricing that will come about as part of that. As we move through the year, and I would say as from an earnings perspective as well, we're going to see a pretty normal cadence of, about 40% of EPS in the first half, about 60% of EPS in the back half. And so while you've got a lot of toing and froing going on here, some big things going on, I'd say at the top level it looks like a pretty normal pattern for the entire year.

現在我認為思考這一點很重要。顯然，我們已經談到了全年中一些不利的交易量，但另一方面，在過去的 4 或 5 個月中，鎢成本出現了相當大的上漲。其中，相當一部分定價將會出現。隨著一年的推進，我想從獲利角度來看，我們將看到一個相當正常的節奏，上半年每股收益約為 40%，下半年每股收益約為 60%。因此，儘管這裡發生了很多事情，也有一些大事發生，但我想說，從最高層面來看，這看起來像是全年的一個非常正常的模式。

Getting back to your question with respect to tariffs, we did have a $0.04 headwind as we expected. I think we had talked about a potential $0.05 headwind in Q4, moving into Q1 and then for the balance of the year, either through operational ways or. Through our surcharge, we are covered on tariffs, as they stand right now at the beginning of August in terms of what's been announced and in place at this point in time. And so obviously that's that's a coverage issue. So yes, you're going to see a little bit of margin compression relative to the tariff situation.

回到你關於關稅的問題，正如我們預期的那樣，我們確實遇到了 0.04 美元的逆風。我認為我們已經討論過第四季度可能出現的 0.05 美元逆風，這種逆風將持續到第一季度，然後在今年餘下的時間裡，無論是通過運營方式還是其他方式。透過我們的附加費，我們可以享受關稅優惠，就目前已宣布和實施的 8 月初的關稅而言。顯然這是一個覆蓋問題。所以是的，相對於關稅情況，你會看到利潤率稍微壓縮。

Thanks a lot. And then just my second question, maybe confirm is the margins in your EPS guide midpoint are operating margins sort of down a bit. I just wanted to confirm that in fiscal 26, and Sanjay, people on this call and investors, they've heard half a dozen restructuring programs at Kenne Metal in the last, couple of decades. For various reasons those haven't generated sustainable margin expansion.

多謝。然後是我的第二個問題，也許可以確認一下您的 EPS 指南中點的利潤率是否比營業利潤率略有下降。我只是想確認一下，在 26 財年，Sanjay、參加本次電話會議的人員和投資者，他們聽說 Kenne Metal 在過去幾十年中實施了六個重組計劃。由於各種原因，這些措施未能實現可持續的利潤率擴張。

Maybe any pointers from you as to how you think this plan is different in the confidence of it being able to deliver some kind of sustained margin expansion.

您是否能就該計劃在實現某種持續利潤擴張方面的信心方面有何不同提出一些建議？

Thank you.

謝謝。

Yeah, sure, I think Julia, first part again Pat can jump in on that one too, but on the operating margin, if you look at the bridge, we are projecting operating margin improving.

是的，當然，我認為朱莉婭，第一部分帕特也可以加入這個主題，但就營業利潤率而言，如果你看一下橋樑，我們預計營業利潤率會提高。

In 26, there are other factors that you can see in the EPS bridge. Now coming to your question, very good, obviously valid question.

26.在EPS橋中還可以看到其他因素。現在回到你的問題，非常好，顯然是有效的問題。

What I can speak to is from the time of investor day what we have said, about the $100 million dollar target, and now you know we have implemented 65 and then projecting all the way to $125.

我可以說的是，從投資者日開始我們就談到了 1 億美元的目標，現在你知道我們已經實現了 65 億美元，然後預計會達到 1.25 億美元。

Based on the details that we are managing, I'm very confident that we are taking. The actions which are very structural, whether it's a footprint related or organizational structure changes or our material cost sourcing related improvement projects, productivity which are sustainable, so I feel very confident that these improvements are sustainable and When the volume does come back, we'll see the bigger impact of that. Obviously over the last, 2. 5 years we have seen a huge negative impact of volume, so it's not showing up in our overall performance. But I'm confident that what we're doing is going to stick.

根據我們正在管理的細節，我非常有信心我們正在採取行動。這些行動非常結構化，無論是與足跡相關還是組織結構變化，還是與材料成本採購相關的改進項目，生產力都是可持續的，所以我非常有信心這些改進是可持續的，當產量恢復時，我們將看到更大的影響。顯然，在過去的兩年半里，我們已經看到了數量的巨大負面影響，所以它並沒有體現在我們的整體表現上。但我堅信，我們所做的一切將會堅持下去。

Okay just to clarify on the operating margin there, Julian, Sanjay referencedop that's if you pull out some of the positive one timers we had in. Fiscal '25 relative to the tornado effect and the tax credit on the tungsten. I think once you normalize those things out, that's up, but if you keep them in, it will be modestly down.

好的，只是為了澄清一下那裡的營業利潤率，朱利安，桑傑參考了dop，如果你拿出我們擁有的一些積極的一次性計時器。25 財年與龍捲風效應和鎢的稅收抵免有關。我認為，一旦你將這些事情正常化，它就會上升，但如果你保留它們，它就會適度下降。

That's very helpful.

這非常有幫助。

And our next question will come from Stephen Volkman with Jeffrey. Please go ahead.

我們的下一個問題來自 Jeffrey 的 Stephen Volkman。請繼續。

Great, good morning guys, maybe there's a pet question, tungsten is obviously up actually a lot here recently. Normally that's pretty strong positive correlation with your margins, but it doesn't seem like you're really factoring that in for FY 26, am I thinking about it the right way?

太好了，大家早上好，也許有一個寵物問題，鎢的價格最近顯然上漲了很多。通常，這與您的利潤率呈相當強的正相關性，但您似乎並沒有將這一點真正考慮在 26 財年中，我的想法正確嗎？

Yeah, I'd say if we think back, let's call it talk about a normal cycle, Steve, we would see tungsten prices positively correlated with higher, I'll just say industrial production or activity in our end markets. And so one of the things that's unique at the moment is we are seeing a pretty significant ramp up in tungsten costs. We will be able to absolutely pass that on to our customers, but we're not getting the added benefit at the moment.

是的，我想說，如果我們回想一下，讓我們稱之為正常的周期，史蒂夫，我們會看到鎢的價格與更高的價格呈正相關，我只想說工業生產或終端市場的活動。目前獨特的情況之一是，我們看到鎢成本大幅上漲。我們絕對能夠將其轉嫁給我們的客戶，但目前我們還沒有獲得額外的好處。

In terms of the additional volume in the end market, so this situation is just a little bit different now you think about that from a margin perspective, I would say absolutely as we think about infrastructure margins, specifically in the first half of 206, we will see some lift in the margins as we always get that price starts coming up, raw material costs remains subdued, as we'll get as we get to the back half of the year. We'll get more neutral. And so based on where tungsten sits right now and the recent pricing trends we've had, I would expect that as we move into Q3 we would see neutrality happen somewhere latter half of Q3 and then be fully neutralized in Q4. But as we'll know more as the weeks go along in terms of what the development from a tungsten price perspective it is here out.

就終端市場的額外銷售而言，現在的情況略有不同，從利潤率的角度來看，我想說，當我們考慮基礎設施利潤率時，特別是在 206 年上半年，我們會看到利潤率有所提升，因為我們總是會看到價格開始上漲，原材料成本保持低迷，正如我們在今年下半年看到的那樣。我們將變得更加中立。因此，根據鎢目前的狀況和我們最近的價格趨勢，我預計隨著進入第三季度，我們會看到中性出現在第三季後半段，然後在第四季度完全中性。但隨著時間的推移，我們將從鎢價格的角度了解更多發展。

Okay, thank you. And then maybe one for Sanjay, it doesn't seem like your competitors or your distributors are getting, quite as much of the headwinds as you are, and I'm curious, as you've done your 1st year review, are there just pieces of this business that you shouldn't be in that are sort of, it's time to 80/20 this thing rather than just shut factories and Actually exit certain low performing businesses, so you can kind of clear the decks for for growth when that comes back.

好的，謝謝。然後也許對桑傑來說，看起來你的競爭對手或分銷商並沒有像你一樣面臨那麼多的阻力，我很好奇，正如你所做的第一年回顧一樣，這個行業中是否存在你不應該涉足的部分，現在是時候進行 80/20 的事情了，而不是僅僅關閉工廠並退出某些表現不佳的業務，這樣你就可以為經濟復甦時的增長掃清障礙。

Yeah, thank you, Steve. Good question. Look, first of all, I think our competitors and others, have only talked about the calendar year 25.

是的，謝謝你，史蒂夫。好問題。首先，我認為我們的競爭對手和其他人只談論了 25 年。

At this point, I believe that there is alignment on when you look at the next 6 months. I do think that transportation, we look at the OEMs, they have come out in the US, mid single digit kind of declined for the second half of this year. When you look at the oil and gas measures, they have also talked about that they are not really planning to, really invest a lot more on new oil rigs and things like that. And then when you look at the earthworks and mining, so I think if you look at these three industries transportation, oil and gas, and earthworks. We are very similar in what we're seeing from our customers and aerospace defense, including space and defense, we are doing quite well there, we will expect. To, take advantage of the market growth, but also on top of that, winning a little bit bigger share of the wallet. So I think that our outline for the next 6 months will be very similar. We are taking it next, following 6 months at this point, yes, there could be some argument that we, who knows what's going to happen in the calendar year 26th, but we believe that we have taken a balanced view in an overall projection.

就這一點而言，我相信，展望未來 6 個月，情況是一致的。我確實認為，就運輸業而言，我們看看原始設備製造商 (OEM)，它們在美國已經出現，今年下半年出現了中等個位數的下降。當你看到石油和天然氣措施時，他們也談到他們實際上並沒有計劃在新的石油鑽井平台和類似的東西上投入更多資金。然後，當你看土方工程和採礦業時，我認為如果你看這三個行業運輸、石油和天然氣以及土方工程。我們從客戶和航空航天防禦（包括太空和防禦）中看到的情況非常相似，我們在那裡做得很好，這是我們所期望的。利用市場成長的優勢，同時贏得更大的市場份額。所以我認為我們未來 6 個月的概要會非常相似。我們接下來會進行下一步，目前已經過去了 6 個月，是的，可能會有人爭論說，誰知道 26 日會發生什麼，但我們相信，我們在整體預測中已經採取了平衡的觀點。

Now coming to your other question. Should we exit some of the business, of course, we have spoken about that, a year ago I talked about portfolio optimization, so we are looking at our product and business mix and making sure that we improve our performance, and we have taken some actions and the actions, we continue to work on things. Many of those will include organic actions to improve performance of those areas where we think we need to do more.

現在來談談你的另一個問題。我們是否應該退出部分業務，當然，我們已經討論過這個問題，一年前我談到了投資組合優化，所以我們正在研究我們的產品和業務組合，並確保我們提高業績，我們已經採取了一些行動，並且我們會繼續努力。其中許多將包括有機行動，以提高我們認為需要做更多工作的領域的績效。

Okay, thanks.

好的，謝謝。

And our next question will come from Tammy Zakaria with JP Morgan. Please go ahead.

我們的下一個問題來自摩根大通的 Tammy Zakaria。請繼續。

Hey, good morning.

嘿，早安。

Thank you so much. My question is on the energy and market outlook. I think you're expecting flattish for this fiscal.

太感謝了。我的問題是關於能源和市場前景的。我認為您預計本財年的經濟將保持穩定。

Does that embed any pick up and recounts in North America or essentially what's driving that flattish outlook for energy?

這是否意味著北美經濟將有所回升和重新計票，或者本質上是什麼導致了能源前景平淡？

Yeah, good question, Tammy. I think it's kind of buried in our information there. Overall recount, we do expect it to come down by mid single digits. One of the, reasons it's again, we're projecting flat because material cost with higher APT price and all that and a lot of our products that go into oil and gas applications are very heavy on material content. So as a result, at this point from a revenue perspective we're staying flat, but we know that from a piece volume perspective it will be down.

是的，塔米，問得好。我認為它隱藏在我們的訊息中。總體而言，我們確實預計它會下降個位數左右。我們再次預測持平的原因之一是材料成本隨著 APT 價格的上漲而上升，而且我們許多用於石油和天然氣應用的產品的材料含量非常高。因此，從收入角度來看，目前我們的收入保持平穩，但我們知道，從產量角度來看，收入將會下降。

Understood. That's very helpful. And then similarly for aerospace and defense, I think you're expecting up high single digit. Is the expectation that it's stable high single digit growth throughout the fiscal year or do you start out slow but then get better any seasonality to think about for that end market?

明白了。這非常有幫助。同樣，對於航空航天和國防來說，我認為你預計會出現高個位數的增長。是否預計整個財政年度都會保持穩定的高個位數成長，還是一開始成長緩慢，但隨後會好轉，需要考慮終端市場的季節性因素？

I think besides the normal seasonality that happens, we are basically expecting at this point aerospace and defense to continue to get better as the supply chain constraints have gotten better and also OEM production have improved.

我認為，除了正常的季節性因素外，我們基本上預計，隨著供應鏈限制的改善和原始設備製造商生產的提高，航空航太和國防產業將繼續好轉。

At this point, definitely, Boeing production has been continuously improving. I think there are some challenges with European-based OEM. In terms of supply chain and the strike and things like that that they mentioned in their earnings call, so I do believe those things should be resolved as the year progresses. At this point, our projection on aerospace defense is low double digit growth.

目前，波音的生產無疑一直在不斷提高。我認為歐洲的 OEM 面臨一些挑戰。至於供應鏈、罷工等問題，他們在財報電話會議上提到過，我相信這些問題應該會隨著時間的推移而解決。目前，我們對航空航太國防的預測是低兩位數成長。

Got it. Okay, thank you.

知道了。好的，謝謝。

And once again, if you would like to ask a question, please press one. Our next question will come from Steve Barger with Key Bank Capital Markets. Please go ahead.

再次強調，如果您想提問，請按 1。我們的下一個問題來自 Key Bank Capital Markets 的 Steve Barger。請繼續。

Thanks. $2 billion dollar revv.

謝謝。20 億美元的營業收入。

Hey, good morning.

嘿，早安。

The $2 billion dollar revenue guide is the 5th year at this level, plus or minus about $50 million and as you noted, volume has consistently been under pressure the last couple of years despite the new winds you talk about. Has competitive pressure increased, or are you seeing a structural decline in cutting tool demand in some of your end markets?

20 億美元的收入指南是連續第五年保持這一水平，上下浮動約 5000 萬美元，正如您所說，儘管您談到了新風，但過去幾年的交易量一直面臨壓力。競爭壓力是否加大了，或者您發現某些終端市場對切削刀具的需求出現結構性下降？

Yeah, Steve, overall, I think volume decline in transportation, oil and gas, over the last couple of years, is very palpable, right? I mean you can see it in all different data points.

是的，史蒂夫，總的來說，我認為過去幾年運輸、石油和天然氣的產量下降是非常明顯的，對嗎？我的意思是您可以在所有不同的數據點中看到它。

And I think that's what we're saying as far as If there is a competitive pressure or things like that, we have also demonstrated in the last 2.5 years, where we have the public fear, data available that we are able to compete and outperform and at a minimum, match the performance. So we don't think that we're losing any share. In fact, we believe that we are winning share. And at this point, the way we are also positioning ourselves, in aerospace defense, going forward, we will expect to win more shares there. So I think that it is a broader market situation and as far as, overall the addressable market situation. By nature, this business does have some of that built because our job is to improve our customers, improve performance from tooling, so that will put some pressure, but there's plenty of opportunities out there for us to maximize, and I think overall, the last 2.5, 3 years we have not seen a cycle. Upcycle generally cycles last, 6 to 8 quarters. This is very unusual what's going on, but of course we all know a lot of different factors, including now, trade policies and other things. So long term we still feel positive about outlook, but near term we do know that there are challenges out here.

我認為這就是我們要說的，如果存在競爭壓力或類似因素，我們也在過去 2.5 年中證明了這一點，我們有公眾的擔憂，有數據表明我們能夠競爭並超越，至少能夠匹敵表現。所以我們不認為我們會失去任何份額。事實上，我們相信我們正在贏得份額。目前，我們也在航空航太防禦領域進行自我定位，展望未來，我們期望在那裡贏得更多的份額。所以我認為這是一個更廣泛的市場情況，就總體而言，這是一個可解決的市場情況。從本質上講，這項業務確實已經建立了一些，因為我們的工作是改善我們的客戶，提高工具的性能，所以這會帶來一些壓力，但我們有很多機會可以最大化，我認為總的來說，在過去的 2.5 到 3 年裡我們還沒有看到一個週期。上升週期一般持續 6 至 8 季。這種情況很不尋常，但當然我們都知道很多不同的因素，包括現在的貿易政策和其他因素。因此，從長期來看，我們仍然對前景持樂觀態度，但從短期來看，我們確實知道這裡有挑戰。

Okay, and the structural cost changes you're facing aren't new. This has been a restructuring story for years, so I wanted to ask a question about the board. Can you talk about their sense of urgency around these challenges? What's been the tone of the last few meetings?

好的，您面臨的結構性成本變化並不是什麼新鮮事。多年來，這一直是一個重組故事，所以我想問一個有關董事會的問題。您能談談他們對這些挑戰的迫切感嗎？最近幾次會議的基調如何？

And with the average tenure of the board being about 10 years, is it maybe time to get some new thinking in the room?

董事會的平均任期約為 10 年，是否應該引入一些新想法了？

Yeah, there is a very high sense of urgency, Steve, in that regard, and that's why, when we talk about unlocking the future value, my last slide. We are, we know that we need to do more on, above market growth and lean transformation and also improving our overall portfolio, but we're emphasizing right sizing capacity and the structural cost actions because of that sense of urgency. So management team and board are very much aligned. We're taking a very balanced but also very, with a high sense of urgency, these actions.

是的，史蒂夫，在這方面，我有一種非常強烈的緊迫感，這就是為什麼當我們談論釋放未來價值時，這是我最後一張幻燈片。我們知道，除了市場成長和精實轉型之外，我們還需要做更多的事情，同時改善我們的整體產品組合，但由於這種緊迫感，我們強調正確的產能規模和結構性成本行動。因此管理團隊和董事會非常一致。我們採取的行動非常平衡，但同時也非常緊迫。

I would only add to that that you know just from a board composition perspective, right, you noted the tenure there. I would just simply note as well, we've got a couple of new people on the board here as well, so there has been some recent additions to the board bringing in new perspectives and experiences too.

我只想補充一點，從董事會組成的角度來看，對吧，你注意到了任期。我還要簡單地指出，我們的董事會也加入了一些新成員，因此董事會最近也增加了一些新成員，帶來了新的觀點和經驗。

Okay, thanks.

好的，謝謝。

And this will conclude our question and answer session. I'd like to turn the conference back over to Sanjay for any closing remarks.

我們的問答環節到此結束。我想將會議交還給桑傑，請他做最後發言。

Thank you, operator, and thank you everyone for joining the call today. As always, we appreciate your interest and support.

謝謝接線員，也謝謝大家今天參加電話會議。一如既往，我們感謝您的關注與支持。

Please don't hesitate to reach out to Mike if you have any questions. Have a great day.

如果您有任何疑問，請隨時聯繫 Mike。祝你有美好的一天。

Thank you.

謝謝。

A replay of the event will be available approximately 1 hour after its conclusion. To access the replay, you may dial toll-free within the United States by 877-344-7529. Outside of the United States, you may dial 412-317-0088. You will be prompted to enter the conference ID 789. 3,708 then the pound or hash symbol you'll be asked to record your name and company. The conference is now concluded.

活動結束後約 1 小時將提供重播。若要收聽重播，您可以撥打美國境內免費電話 877-344-7529。在美國境外，您可以撥打 412-317-0088。系統將提示您輸入會議 ID 789。3,708 然後是井號或雜湊符號，系統會要求您記錄您的姓名和公司。會議現已結束。

Thank you for attending today's presentation. You may now disconnect your lines.

感謝您參加今天的演講。現在您可以斷開線路了。