Littelfuse Inc (LFUS) 2025 Q2 法說會逐字稿

Good day, everyone, and welcome to the Littelfuse second quarter 2025 Earnings Conference Call. Today's call is being recorded.

大家好，歡迎參加 Littelfuse 2025 年第二季財報電話會議。今天的通話正在錄音。

At this time, I will turn the call over to the Head of Investor Relations, David Kelly. Please proceed.

現在，我將把電話轉給投資者關係主管戴維凱利 (David Kelly)。請繼續。

Good morning, and welcome to the Litter Second Quarter 2025 Earnings Conference Call. With me today are Greg Henderson, President and CEO; and Abhi Khandelwal, Executive Vice President and CFO, and -- this morning, we reported results for our second quarter, and a copy of our earnings release and slide presentation is available on the Investor Relations section of our website. A webcast of today's conference call will also be available on our website. Please advance to slide 2 for our disclaimers. Our discussions today will include forward-looking statements.

早安，歡迎參加 Litter 2025 年第二季財報電話會議。今天與我一起出席的還有總裁兼首席執行官 Greg Henderson 和執行副總裁兼首席財務官 Abhi Khandelwal，今天上午，我們報告了第二季度的業績，您可以在我們網站的投資者關係部分找到我們的收益報告和幻燈片演示的副本。今天的電話會議的網路直播也將在我們的網站上提供。請翻到投影片 2 查看我們的免責聲明。我們今天的討論將包括前瞻性陳述。

These forward-looking statements may involve significant risks and uncertainties. Please review today's press release and our forms 10-K and 10-Q for more detail about risks that could cause actual results to differ materially from our expectations. We assume no obligation to update any of this forward-looking information.

這些前瞻性陳述可能涉及重大風險和不確定性。請查看今天的新聞稿以及我們的 10-K 和 10-Q 表格，以了解有關可能導致實際結果與我們的預期有重大差異的風險的更多詳細資訊。我們不承擔更新任何前瞻性資訊的義務。

Also, our remarks today refer to non-GAAP financial measures. A reconciliation of these non-GAAP financial measures to the most comparable GAAP measures is provided in our earnings release available in the Investor Relations section of our website.

此外，我們今天的評論涉及非公認會計準則財務指標。我們網站的投資者關係部分提供的收益報告中提供了這些非 GAAP 財務指標與最可比較的 GAAP 指標的對帳。

I will now turn the call over to Greg.

現在我將電話轉給格雷格。

Thank you, David, and thank you to everyone for joining us today. I want to start this morning with highlights of our second quarter and then provide an update on the progress we're making on our strategic priorities. We're in the early process of capitalizing on our numerous growth and operational enhancement opportunities. An important milestone in this process was the hiring of our new CFO, Abhi Khandelwal, to the quarter. Avi joins us from IDEX Corporation, and he brings more than two decades of financial and operational leadership.

謝謝你，大衛，也謝謝今天參加我們活動的所有人。今天上午，我想先介紹我們第二季的亮點，然後介紹我們在策略重點方面的進展。我們正處於利用眾多成長和營運增強機會的早期階段。這一過程中的一個重要里程碑是聘請我們新的財務長 Abhi Khandelwal 擔任本季的財務長。Avi 來自 IDEX 公司，擁有超過二十年的財務和營運領導經驗。

He has significant experience in driving strategic growth, both organic and acquisitions as well as in scaling operations. Abhi has already had a significant impact in his first month at Lote. I look forward to continuing our partnership as we focus on scaling our business for long-term growth, enhanced profitability and best-in-class shareholder returns.

他在推動策略性成長（包括有機成長和收購）以及擴大營運方面擁有豐富的經驗。阿比在 Lote 的第一個月就已經產生了重大影響。我期待繼續我們的合作，因為我們專注於擴大業務規模，實現長期成長、提高獲利能力和一流的股東回報。

In the second quarter, we demonstrated broad-based strength across our businesses, delivering revenue growth of 10% relative to the prior year. Our performance reflects our leadership position in safe and efficient electrical energy transfer, the ongoing meaningful technology evolutions in front of us and the fact that our customers deeply value our trusted and essential capabilities. Across our segments, we observed continued momentum in the second quarter. Our Electronics segment benefited from improved demand for passive electronics and protection products.

在第二季度，我們各項業務均展現出強勁成長勢頭，營收較上年同期成長了 10%。我們的業績反映了我們在安全高效的電能傳輸方面的領導地位、我們面前正在進行的有意義的技術變革以及客戶對我們值得信賴和必不可少的能力的高度重視。在我們的各個部門中，我們觀察到第二季度的持續成長勢頭。我們的電子部門受益於被動電子和保護產品需求的成長。

In our Transportation segment, we delivered broad-based growth, while our strong Industrial segment performance reflects our unique market and customer positioning. Our end markets continue to move to higher power and higher energy density, and we are leveraging our market leadership and unique product portfolio to help our customers solve increasingly complex challenges.

在運輸領域，我們實現了廣泛的成長，而工業領域的強勁表現反映了我們獨特的市場和客戶定位。我們的終端市場繼續朝著更高的功率和更高的能量密度發展，我們正在利用我們的市場領導地位和獨特的產品組合來幫助我們的客戶解決日益複雜的挑戰。

Supporting this, our second quarter book-to-bill again tracked above 1, while our bookings exited the quarter at the highest run rate since the first half of 2022. We expect our solid growth performance to continue into the third quarter. Our second quarter earnings results also exceeded the high end of our prior guidance range, reflecting strong execution. Abhi will discuss specific results in more detail shortly, but I want to thank our teams for their hard work and dedication.

為證明這一點，我們第二季度的訂單出貨比再次超過 1，而本季結束時我們的訂單量達到了 2022 年上半年以來的最高運行率。我們預計穩健的成長動能將持續到第三季。我們第二季的獲利結果也超出了我們先前預期範圍的高端，反映出強勁的執行力。Abhi 很快就會更詳細地討論具體結果，但我要感謝我們團隊的辛勤工作和奉獻精神。

With that, I wanted to update everyone on the specific progress we're making on each of our strategic priorities that I highlighted last quarter. Our first strategic priority is to enhance our focus to better capitalize on future growth opportunities. Our teams are sharpening their focus on higher voltage and higher energy density applications as our customers are pushing for higher power next-gen solutions.

因此，我想向大家通報我們在上個季度強調的每個策略重點上所取得的具體進展。我們的首要策略重點是加強關注，以更好地利用未來的成長機會。由於我們的客戶正在推動更高功率的下一代解決方案，我們的團隊正在將重點放在更高電壓和更高能量密度的應用上。

This evolution is leading to complex safety and efficiency challenges, and our products are increasingly important to solving these challenges at the architecture level. Importantly, this transition is happening across all of our end markets, and we are seeing the benefits of our heightened focus on these expanding opportunities real time.

這種演進帶來了複雜的安全性和效率挑戰，我們的產品對於在架構層面解決這些挑戰越來越重要。重要的是，這種轉變正在我們所有的終端市場發生，而且我們正在即時看到我們高度關注這些不斷擴大的機會所帶來的好處。

Let me provide you with an example in enterprise computing, where the industry is transitioning from 5-volt to higher power 48-volt capabilities for single cable combined power connectivity interfaces. This evolution requires more advanced and unique safety and protection solutions while meeting the increasingly demanding data rate and electromagnetic compatibility requirements.

讓我為您提供企業運算中的一個例子，該行業正在從 5 伏特過渡到更高功率的 48 伏特，以實現單電纜組合電源連接介面。這種演進需要更先進、更獨特的安全和保護解決方案，同時滿足日益嚴苛的資料速率和電磁相容性要求。

In the second quarter, we worked with a market leader to develop a next-gen semiconductor protection solution. Our solution supports higher power and data rates at faster charging speeds and will begin shipping in the third quarter.

第二季度，我們與市場領導者合作開發了下一代半導體保護解決方案。我們的解決方案支援更快的充電速度和更高的功率和數據速率，並將於第三季開始出貨。

Broadly, our heightened focus on the secular trends across our end markets will continue to drive expanded new business opportunities. We are seeing meaningful traction in our pipeline and year-to-date, our new business opportunity funnel is up double digits. Our second strategic priority is to provide more complete solutions for a broader set of our customers. Customers deeply value our capabilities and our scale is a significant advantage, yet we can further harness our unique and market-leading product portfolio to help more of our customers solve complex challenges around safe and efficient power transfer.

總體而言，我們對終端市場長期趨勢的高度關注將繼續推動新業務機會的擴大。我們看到我們的管道和年初至今取得了有意義的進展，我們的新業務機會管道已經成長了兩位數。我們的第二個策略重點是為更廣泛的客戶提供更完整的解決方案。客戶非常重視我們的能力，我們的規模是一個顯著的優勢，但我們可以進一步利用我們獨特且市場領先的產品組合，幫助更多客戶解決安全高效電力傳輸的複雜挑戰。

To support this opportunity, we are further aligning our technology capabilities and our sales structure to better serve our customers with our full product portfolio. We are also leveraging our collaborative product development, engineering and testing processes to better support our broad customers as they drive ongoing product innovations. As an example, last quarter, we discussed the meaningful role we play in data center advancements. We are seeing an accelerating pipeline of opportunity as we have been expanding our go-to-market strategy.

為了抓住這個機會，我們正在進一步調整我們的技術能力和銷售結構，以便透過我們的全套產品組合更好地為客戶服務。我們也利用我們的協作產品開發、工程和測試流程來更好地支援我們的廣大客戶推動持續的產品創新。例如，上個季度，我們討論了我們在資料中心發展中發揮的重要作用。隨著我們不斷擴大市場進入策略，我們看到了不斷加速的機會。

I'm pleased to announce several new data center design wins in the second quarter with market leaders ranging from a global digital infrastructure provider to a leading compute platform player. Our second quarter wins range from liquid cooling to one Ford and power distribution applications and position us well for continued strong data center sales growth.

我很高興地宣布，第二季有幾家新的資料中心設計公司贏得了市場領導者的青睞，包括全球數位基礎設施供應商和領先的運算平台參與者。我們第二季的勝利涵蓋了從液體冷卻到福特和配電應用等各個領域，這為我們繼續保持強勁的資料中心銷售成長奠定了基礎。

Last quarter, we also discussed our opportunities in the rapidly growing grid storage market. Today, I wanted to discuss the broader sustainable grid ecosystem where we are building momentum globally. In the second quarter, we won a design with a leading player in green hydrogen, where we will provide high-speed, high-voltage industrial fuses. Our solution enables pairing to the grid and plays a critical role in reliable renewable energy transfer. We also work with a solar supplier to develop a next-gen microinverter.

上個季度，我們也討論了在快速成長的電網儲存市場的機會。今天，我想討論一下我們在全球範圍內正在積聚勢頭的更廣泛的可持續電網生態系統。第二季度，我們贏得了綠色氫能領域一家領先企業的設計合同，我們將為其提供高速、高壓工業保險絲。我們的解決方案能夠與電網配對，在可靠的再生能源傳輸中發揮關鍵作用。我們也與一家太陽能供應商合作開發下一代微型逆變器。

Our solution enables compatibility with higher power solar panels and improved battery integration. Broadly, we observed strong renewables and grid storage sales growth in the second quarter, and we see continued momentum as these markets transition to higher power solutions.

我們的解決方案能夠相容於更高功率的太陽能電池板並改善電池整合。總體而言，我們觀察到第二季再生能源和電網儲存銷售成長強勁，並且隨著這些市場向更高功率解決方案轉型，我們看到其持續成長勢頭。

Turning to our third strategic priority. We see an opportunity to drive further operational excellence while enhancing long-term profitability as we grow. We can better leverage areas of best-in-class operating practices and apply those across our businesses. We can also further optimize our operating structure to support our growth opportunities and enhance long-term performance. In the second quarter, we established a new global operations team that will focus on driving best-in-class operational capabilities across our global sites.

談談我們的第三個戰略重點。我們看到了在發展過程中進一步推動卓越營運並提高長期獲利能力的機會。我們可以更好地利用一流的營運實踐，並將其應用於我們的業務。我們還可以進一步優化營運結構，以支持我們的成長機會並提高長期績效。在第二季度，我們成立了一個新的全球營運團隊，專注於推動我們全球站點一流的營運能力。

Led by this team, we are in the process of establishing and driving best practices with a heightened emphasis on safety, quality, delivery, cost and inventory. While this is a long journey, we have begun applying this enhanced focus to some of our North American factories.

在該團隊的領導下，我們正在建立和推動最佳實踐，並更加重視安全、品質、交付、成本和庫存。雖然這是一個漫長的過程，但我們已經開始將這種加強的關注應用到我們的一些北美工廠。

We saw early benefits of these efforts in the quarter, reflected in our second quarter transportation operational performance. Taking a step back, we delivered a strong second quarter, and we are well positioned to drive continued growth into the third quarter. We are seeing the benefits of our flexible operating model and global footprint that is closely aligned to our customers and their supply chains.

我們在本季度看到了這些努力的早期效益，這反映在我們第二季度的運輸營運業績中。回顧一下，我們第二季表現強勁，我們已準備好推動第三季的持續成長。我們看到了靈活的營運模式和與客戶及其供應鏈緊密結合的全球影響力所帶來的好處。

We will continue to work closely with our customers and partners through an evolving environment to deliver on the meaningful opportunities in front of us. Finally, while we have made significant progress to date, we remain focused on our strategic priorities as we aim to position and ultimately scale our company with the goal of delivering long-term best-in-class performance.

我們將繼續在不斷變化的環境中與我們的客戶和合作夥伴密切合作，抓住我們面前的有意義的機會。最後，雖然我們迄今為止已經取得了重大進展，但我們仍然專注於我們的策略重點，因為我們的目標是定位並最終擴大我們的公司規模，以實現長期一流的業績。

With that, I will hand the call over to Abhi.

說完，我會把電話交給 Abhi。

Thank you, Greg, and thank you everyone joining us today. I'm excited to have joined this great organization as we scale our business for the next growth phase of Littelfuse. One month into the role, I've been working with Greg and our leadership team as we build on our strategic priorities. I see opportunities to enhance our secular growth momentum, further optimize our portfolio and strengthen our talent as we drive immediate long-term returns.

謝謝你，格雷格，也謝謝今天加入我們的所有人。我很高興能夠加入這個偉大的組織，我們正在擴大業務規模，為 Littelfuse 的下一個成長階段做好準備。上任一個月後，我一直與格雷格和我們的領導團隊合作，共同製定策略重點。我看到了增強我們長期成長勢頭、進一步優化我們的投資組合和加強我們的人才團隊建設的機會，因為我們可以獲得直接的長期回報。

With that, please turn to slide 7 to start with details on our second quarter results. As Greg mentioned, we exceeded the high end of our guidance range for revenue and adjusted EPS. Going forward, comparisons I will discuss will be relative to the prior year, unless stated otherwise. Revenue in the quarter was $613 million, up 10% in total and up 6% organic. The [Dortmund] acquisition contributed 2% to sales growth, while FX was a 1% tailwind.

請翻到投影片 7 來了解我們第二季的業績詳情。正如格雷格所提到的，我們的收入和調整後每股收益超出了預期範圍的上限。展望未來，我將討論的比較將與前一年相關，除非另有說明。本季營收為 6.13 億美元，整體成長 10%，有機成長 6%。收購多特蒙德為銷售額成長貢獻了 2%，而 FX 則帶來了 1% 的順風。

Adjusted EBITDA margin finished at 21.4%, up 280 basis points.

調整後的 EBITDA 利潤率達到 21.4%，上漲 280 個基點。

Our solid margin expansion reflects strong conversion on higher sales growth, improved operational performance as well as the benefit due to the timing of tariff collections and payments. Second quarter adjusted diluted earnings was $2.85, up 45% and exceeded the high end of our guidance range. This reflects solid sales growth across our segments as well as margin expansion across our Transportation and Industrial segments. Please note, our second quarter adjusted effective tax rate was 23%, in line with our expectations.

我們穩健的利潤率成長反映了銷售額成長強勁、營運績效改善以及關稅收取和支付時間帶來的好處。第二季調整後攤薄收益為 2.85 美元，成長 45%，超過了我們預期範圍的高端。這反映了我們各部門的穩健銷售成長以及運輸和工業部門的利潤率擴大。請注意，我們第二季調整後的有效稅率為 23%，符合我們的預期。

Please turn to slide 8 for updates on capital allocation. We delivered strong cash generation in the second quarter. Operating cash flow was $82 million, and we generated $73 million in free cash flow. Year-to-date, we have generated $150 million of free cash flow, yielding a strong 114% conversion rate. We ended the quarter with $685 million of cash in hand and net debt-to-EBITDA leverage of 1.1x.

請翻到投影片 8 了解資本配置的最新情況。我們在第二季度實現了強勁的現金創造。經營現金流為 8,200 萬美元，我們產生了 7,300 萬美元的自由現金流。今年迄今為止，我們已產生 1.5 億美元的自由現金流，轉換率高達 114%。本季末，我們手頭上有 6.85 億美元現金，淨負債與 EBITDA 比率為 1.1 倍。

In the quarter, we returned $17 million to shareholders via our cash dividend. We will continue to prioritize our cash flow for organic investments and strategic acquisitions. And we'll also continue to return capital to our shareholders through our dividend as well as strategic share buybacks. Please turn to slide 9 for our segment highlights. Starting with the Electronics Products segment.

本季度，我們透過現金股利向股東返還了 1,700 萬美元。我們將繼續優先考慮用於有機投資和策略性收購的現金流。我們也將繼續透過股利和策略性股票回購向股東返還資本。請翻到投影片 9 觀看我們的精彩片段。從電子產品領域開始。

Sales for the segment were up 10% versus last year and up 4% organically. The Dorman acquisition contributed 4%, while FX contributed 1 point to growth. Sales across passive products were up 14% organically, while semiconductor products declined 5% in the quarter.

該部門銷售額較去年同期成長 10%，有機成長 4%。Dorman 的收購貢獻了 4%，而 FX 則為成長貢獻了 1 個百分點。本季無源產品銷售額有機成長 14%，而半導體產品銷售額下降 5%。

Our strong passive product sales growth in the quarter reflects improved orders from channel partners and increased demand from OEM customers. Within our semiconductor products exposure, we observed continued soft power semiconductor demand that offset improved protection product volumes. Adjusted EBITDA margin of 21.6% was flat versus the prior year. Favorable year-over-year volume leverage on our passive and protection product sales growth was offset by lower power semiconductor volumes.

本季我們強勁的被動產品銷售成長反映了通路合作夥伴訂單的增加和 OEM 客戶需求的增加。在我們的半導體產品曝光中，我們觀察到持續的軟實力半導體需求抵消了保護產品數量的增加。調整後的 EBITDA 利潤率為 21.6%，與前一年持平。我們的被動和保護產品銷售成長帶來的有利的年銷售槓桿被功率半導體銷售的下降所抵消。

Moving to our Transportation Products segment on slide 10. Segment sales increased plus 6% as organic sales increased 4% for the quarter, while FX contributed 2 points to growth. In the passenger car business, sales increased 3% organic. Passenger car sales increased across North America, Europe and China as we benefited from share gains and growth in global car builds. Commercial vehicle sales for the quarter increased 5% organically and benefited from market share gains despite ongoing soft end market conditions.

前往第 10 張投影片上的運送產品部分。本季有機銷售額成長 4%，因此部門銷售額成長 6%，而外匯對成長貢獻了 2 個百分點。在乘用車業務方面，銷售額有機成長了 3%。由於我們受益於市場份額的成長和全球汽車產量的成長，北美、歐洲和中國的乘用車銷量均有所成長。儘管市場持續疲軟，本季商用車銷售仍有機成長 5%，並受惠於市佔率的成長。

For the segment, adjusted EBITDA margin of 20.5% was up 610 basis points. In the quarter, we benefited from volume leverage, while our focus on profitability initiatives continued to drive improved operational performance.

該部門調整後的 EBITDA 利潤率為 20.5%，上漲 610 個基點。本季度，我們受惠於銷售槓桿，同時我們對獲利計畫的關注繼續推動營運績效的提高。

On slide 11, Industrial Products segment sales grew 17% organically for the quarter. Second quarter sales benefited from strong grid storage, renewable, data center, industrial safety and HVAC growth. Adjusted EBITDA margin was 22.1% in the quarter, up 610 basis points. Our strong margin performance reflects improved volume leverage and solid operational execution.

在投影片 11 中，工業產品部門銷售額本季有機成長了 17%。第二季的銷售受惠於電網儲存、再生能源、資料中心、工業安全和暖通空調的強勁成長。本季調整後的 EBITDA 利潤率為 22.1%，上升 610 個基點。我們強勁的利潤率表現反映了銷售槓桿的提高和穩健的營運執行。

Please move to slide 12 for the forecast. We entered the third quarter with a strong backlog and remain well positioned to deliver continued growth as we focus on driving operational excellence. With that in mind, our third quarter guidance incorporates current market conditions, trade policies and FX rates as of today.

請移至投影片 12 查看預測。我們在進入第三季時擁有大量積壓訂單，由於我們專注於推動卓越運營，因此仍處於有利地位，可以實現持續成長。考慮到這一點，我們的第三季指引綜合了截至今天的當前市場狀況、貿易政策和外匯匯率。

We expect third quarter sales in the range of $610 million to $630 million, which assumes 6% organic growth at the midpoint and 2 points of growth stemming from our Dortmund acquisition. We are projecting third quarter EPS to be in the range of $2.65 to $2.85, which assumes a 38% flow-through at the midpoint. Third quarter guidance also assumes an unfavorable impact from stock and variable comp of $0.21 and a $0.12 headwind from a prior year favorable mark-to-market and a higher adjusted effective tax rate. At current FX and commodity rates, we're expecting an $0.08 headwind to EPS versus the prior year.

我們預計第三季的銷售額將在 6.1 億美元至 6.3 億美元之間，假設中間值有機成長率為 6%，而多特蒙德的收購將帶來 2 個百分點的成長。我們預計第三季每股收益將在 2.65 美元至 2.85 美元之間，假設中間點的流通率為 38%。第三季指引也假設股票和浮動薪酬將帶來 0.21 美元的不利影響，而上年有利的以市價計算的市值將帶來 0.12 美元的不利影響，並且調整後的有效稅率也將提高。以目前的外匯和商品價格，我們預計每股收益將比上年下降 0.08 美元。

Moving to slide 14. Let me add some additional details on our full year 2025. We continue to expect 2% total sales growth stemming from our Dortmund acquisition with a neutral impact to EPS. At current rates, we expect FX and commodities will represent a 1% tailwind to sales and a $0.14 benefit to EPS.

移至投影片 14。讓我補充一些有關我們 2025 年全年的更多細節。我們繼續預計，收購多特蒙德將帶來 2% 的總銷售額成長，對每股盈餘產生中性影響。按照當前匯率，我們預計外匯和大宗商品將為銷售額帶來 1% 的推動力，並為每股收益帶來 0.14 美元的收益。

On other modeling items, we are assuming $58 million in amortization expense and $35 million in interest expense, about 2/3 of which we expect to offset from interest income from our cash and investment strategies. We're estimating a full year tax rate between 23% and 25%. We also expect to spend $90 million to $95 million in capital expenditures.

在其他建模項目上，我們假設攤銷費用為 5,800 萬美元，利息費用為 3,500 萬美元，其中約 2/3 預計可以從我們的現金和投資策略的利息收入中抵銷。我們估計全年稅率在 23% 至 25% 之間。我們也預計將花費 9,000 萬至 9,500 萬美元的資本支出。

In closing, our second quarter results reflect our unique technology positioning, flexible operating model and solid execution. As we look forward, we have a strong business model and balance sheet, and we will maintain our financial discipline and focus on shareholder returns. We will continue to build on our strategic priorities to scale our business and drive long-term value.

最後，我們第二季的業績反映了我們獨特的技術定位、靈活的營運模式和穩健的執行力。展望未來，我們擁有強大的商業模式和資產負債表，我們將保持財務紀律並專注於股東回報。我們將繼續以我們的策略重點為基礎，擴大我們的業務規模並推動長期價值。

With that, operator, please open the call for Q&A

接線生，請打開問答環節

(Operator Instructions)

（操作員指示）

Luke Junk, Baird.

盧克·簡克，貝爾德。

Good morning. Thanks for taking the questions. Greg or Abhi, maybe to start, if you could just help us to put the margin upside in both Transportation and Industrial, just in context relative to history, both recent history and some of the longer-term targets that have been out there. Transportation, in particular, the company has had a long-held 15% margin target. You're right there this quarter. Just how should we square current trends with what the historical context has been for that business operating wise? And then, Abhi, I think you mentioned some tariff timing impacts to margins.

早安.感謝您回答這些問題。格雷格或阿比，首先，如果您能幫助我們將運輸和工業領域的利潤率上昇放在歷史背景下，包括近期歷史和一些已經存在的長期目標。特別是在運輸領域，該公司長期以來一直堅持 15% 的利潤率目標。本季您就在那裡。我們究竟該如何將當前趨勢與企業營運的歷史背景相協調呢？然後，Abhi，我想您提到了關稅時間對利潤率的影響。

If you could just clarify what that was.

如果你能解釋一下那是什麼的話。

Sure. Thanks, Luke. This is Greg. I'll just start, just maybe I'll take them one at a time. So starting with our Transportation segment.

當然。謝謝，盧克。這是格雷格。我剛開始，也許我會一次完成一件事情。因此，從我們的運輸部門開始。

I think as we mentioned in the prepared remarks, One of the key areas that we're focusing on is scaling our operational excellence. And actually, we've been working on focusing on that inside of our transportation business.

我認為，正如我們在準備好的演講中提到的那樣，我們關注的關鍵領域之一是擴大我們的卓越營運。實際上，我們一直致力於在運輸業務中關注這個問題。

So strategically, we kind of have two initiatives in transportation. One is that we're strategically focused on diversifying our portfolio, so diversifying our market exposure. So we have a strong exposure, as you know, the passenger car, maybe traditional transportation like heavy trucks. But we have a strategy to try to diversify. So we're winning new designs in more diversified areas, things like agriculture and other customers that we don't penetrate today.

因此從策略上講，我們在交通運輸方面有兩項舉措。一是我們在策略上致力於實現投資組合多元化，從而實現市場多元化。因此，如您所知，我們在乘用車以及重型卡車等傳統運輸領域有著強烈的影響力。但我們有嘗試多樣化的策略。因此，我們在更加多樣化的領域贏得了新的設計，例如農業和我們目前尚未滲透的其他客戶。

But also we have a focus on scaling our operational excellence. And so this is one of the areas that it's still in early innings for us, but we're working on optimizing our factory performance, taking some of our best-in-class capabilities and scaling them across our factories. And we saw meaningful improvement in our transportation margin in the quarter because of that, and Abhi can give some more color to that.

但我們也專注於擴大我們的卓越營運。因此，這是我們仍處於早期階段的領域之一，但我們正在努力優化工廠性能，利用一些一流的能力並在我們的工廠中推廣它們。因此，我們本季的運輸利潤率有了顯著提高，Abhi 可以對此進行更詳細的說明。

In Industrial, I would say that we continue to have positive revenue growth and margin. And I would say a lot of the performance in industrial is related to the markets we're playing in. So we're continuing to play in focus of energy storage, data center, industrial safety, we had strong growth in HVAC. So in our industrial business, I would say that our top line growth and our focus on high-value markets is also driving the performance there. And maybe I'll hand to Abhi if you have more color on that.

在工業領域，我想說我們的營收和利潤率持續保持正成長。我想說，工業領域的許多表現都與我們所處的市場有關。因此，我們將持續專注於能源儲存、資料中心、工業安全，並在暖通空調領域取得強勁成長。因此，在我們的工業業務中，我想說我們的營收成長和對高價值市場的關注也推動了該業務的業績。如果您對此有更多的了解，我可能會交給 Abhi。

Yes. So, first of all, pleasure to talk to you and look forward to our partnership here. But let's start with transportation, building on what Greg said, there's a couple of things I'll point out. First of all, if you look at the performance in the quarter and look at 4% organic growth, I think what that the margin reflects is the power of leverage -- operating leverage. So you see that play itself out in the quarter.

是的。所以，首先，我很高興與您交談並期待我們的合作。但是讓我們從交通開始，根據格雷格所說的，我要指出幾點。首先，如果你看本季的業績，看看 4% 的自然成長率，我認為利潤率反映的是槓桿的力量——經營槓桿。因此，您會看到這種情況在本季度得到體現。

Secondly, as Greg mentioned, look, we've done a lot of work around operational execution. We continue to focus on that. That's one of our strategic priorities. So as we move forward, right, we will continue to build on that. Now keep in mind, transportation is -- margins are not going to be linear because there's sales that move over time quarter-by-quarter given seasonality.

其次，正如格雷格所提到的，我們在營運執行方面做了很多工作。我們將繼續關注這一點。這是我們的策略重點之一。因此，隨著我們不斷前進，我們將繼續在此基礎上繼續努力。現在請記住，運輸利潤率不會是線性的，因為考慮到季節性，銷售額會隨時間逐季度變化。

But I do expect over the longer haul, transportation as a segment has more margin upside. We'll work the details out as we go through the back half of the year and solidify our strategy.

但我確實預計，從長遠來看，運輸業作為一個細分領域將擁有更大的利潤上升空間。我們將在下半年制定細節並鞏固我們的策略。

Talking about Industrial, look, we're really, really pleased with the performance that we saw in the quarter, both on the top line and the bottom line. Again, this is pretty much the same story, which is around organic growth translating into powerful operating leverage, which you see for itself out in the margin line. look, transportation exited the quarter -- or sorry, exited the quarter at about 19% op margin, right.

談到工業，我們對本季的表現感到非常非常滿意，無論是營收還是利潤。再說一次，這幾乎是同一個故事，即有機成長轉化為強大的營運槓桿，你可以在利潤率中看到這一點。你看，運輸業務在本季結束時——或者抱歉，在本季結束時的營運利潤率約為 19%，對吧。

Now keep in mind, one of the things to consider here is as we start to see our organic growth at 17%, some of the margin drop-through, we're going to invest back in the business to continue to fuel growth as we move forward. But again, we're pretty pleased with the performance.

現在請記住，這裡要考慮的事情之一是，當我們開始看到我們的有機成長率達到 17% 時，部分利潤率會下降，我們將重新投資於業務以繼續推動未來的成長。但我們仍然對性能感到非常滿意。

You can see the work that we're doing around our third strategic priority on operational execution really play itself out in the quarter across the company.

您可以看到，我們圍繞第三個策略重點（即營運執行）所做的工作確實在本季度在整個公司範圍內發揮了作用。

Thank you for that and Abhi, great to meet you in this context as well. Just on the tariff timing impacts, yes, could you just clarify what you mentioned in the script as well?

謝謝你，Abhi，也很高興在這種情況下認識你。僅就關稅時間影響而言，是的，您能否澄清一下您在腳本中提到的內容？

Yes, absolutely. Look, what I said in the script is something that basically comes down to the timing of the realization of price versus when we incurred the cost in the quarter. So what really that means is if you think about it sequentially, right, in Q2, we had about a $0.15 benefit or tailwind that will become a headwind in Q3.

是的，絕對是。你看，我在腳本中所說的基本上歸結為價格實現的時間與我們在本季度產生成本的時間。所以這實際上意味著，如果你按順序考慮，那麼在第二季度，我們獲得了大約 0.15 美元的收益或順風，但在第三季度，它將成為逆風。

So really, all it is timing between the quarters in terms of the timing of price realization versus cost that we incur on the P&L. So that's what I meant by that. There's about a $0.15 good guide in Q2. That's going to reverse itself out in Q3 and be a bad guide sequentially.

因此，實際上，就價格實現的時間與我們在損益表中產生的成本而言，這都是季度之間的時間安排。這就是我的意思。Q2 中有一個大約 0.15 美元的良好指導。這將在第三季度發生逆轉，並成為後續的糟糕指引。

Okay. Understood. That's helpful. Second, maybe just a little bigger picture, Greg, but really strong results within Industrial quarter. Historically, this has been a smaller just because of the size of the business, somewhat an even segment for the company historically.

好的。明白了。這很有幫助。第二，格雷格，也許只是稍微大一點的圖景，但工業季度的業績確實強勁。從歷史上看，由於業務規模的原因，這個份額一直較小，從歷史上看，對於公司來說，這是一個相當均衡的份額。

As you come into the company, is your perception of the business different? I guess I'm thinking, especially your priority around aligning the company's technology capabilities and sales structures. Could that have a sort of outsized impact on the Industrial segment specifically, Greg?

當您加入公司後，您對業務的看法有什麼不同嗎？我想我正在思考，特別是您優先考慮協調公司的技術能力和銷售結構。格雷格，這是否會對工業領域產生巨大影響？

Yes. I think what I'd say is I think we're actually really excited about the industrial segment. When we think about our bigger picture strategy of focusing on safe and efficient transfer electrical energy and about our customers' transition to higher power, high-voltage high current, this plays really well. This is a big megatrend in that industrial sector.

是的。我想說的是，我們實際上對工業領域感到非常興奮。當我們考慮我們的更大策略，重點關注安全、高效的電能傳輸以及我們的客戶向更高功率、高壓大電流的過渡時，這一點發揮了非常好的作用。這是該工業領域的一大趨勢。

And actually, I think we focused in our Industrial segment on some of these markets that are maybe leading in this transition. And then we built technology. So for example, solar, grid storage, these are some of the areas that are leading in this transition. We built technology.

實際上，我認為我們在工業領域重點關注了一些可能引領這一轉變的市場。然後我們建立了技術。例如，太陽能、電網存儲，這些都是引領這一轉變的一些領域。我們打造了技術。

Actually, now some of the technology from our industrial business is now a big part of our data center solutions. So as we talked about data center, some of the data center customers, and actually, we sell to two sides of that. We sell to what we would call maybe industrial infrastructure customers that make that do maybe the grid side, bringing the power into the data center, doing the cooling for the data center, that's part of our industrial business, but also products for our industrial business are playing straight to the hyperscalers directly that are going to the next-generation high-voltage architecture.

實際上，現在我們工業業務的一些技術已經成為我們資料中心解決方案的重要組成部分。因此，當我們談論資料中心時，一些資料中心客戶實際上向雙方銷售產品。我們的產品銷售給所謂的工業基礎設施客戶，這些客戶可能負責電網側，將電力引入資料中心，為資料中心提供冷卻，這是我們工業業務的一部分，但我們工業業務的產品也直接面向即將採用下一代高壓架構的超大規模企業。

So broadly, we feel that industrial is a growth sector for us. You heard obviously that it's actually -- it's a high growth but also a good margin, but we're going to continue to invest in this. So industrial segment is one that aligns well to our strategy, and we will continue to see, in my opinion, both top line and bottom line positive outcomes from this.

因此，從總體上看，我們認為工業對我們來說是一個成長領域。您顯然聽說了，這實際上是——它不僅增長很快，而且利潤率也很高，但我們將繼續對此進行投資。因此，工業部門與我們的策略非常契合，我認為，我們將繼續看到該部門在營收和利潤方面都取得積極成果。

Got it. And then jumping off on that on the data center piece specifically, Greg, maybe a multipart question here. You touched on some of the infrastructure side. Can you remind us from an electronics standpoint, where data center exposure is? And I think historically, for the company in total, it's been a good exposure, but not necessarily one of the company's largest -- kind of just where is that today?

知道了。然後具體談談資料中心部分，格雷格，這可能是一個多部分的問題。您談到了一些基礎設施的問題。您能否從電子的角度提醒我們，資料中心的暴露位置在哪裡？我認為從歷史上看，對於整個公司來說，這是一個很好的曝光機會，但不一定是公司最大的曝光機會之一——那麼今天這種情況又如何呢？

I get the sense that it's growing.

我感覺它正在成長。

And as you lean into new engagements and opportunities on next-gen, higher power type applications, it sounds like some of those things are maybe coming to fruition earlier than expected. Can you just help us understand magnitude of that tailwind?

當您傾向於下一代更高功率類型應用程式的新參與和新機會時，聽起來其中一些事情可能會比預期更早實現。您能幫助我們了解一下順風的強度嗎？

Yes. I mean I think data center, we consider as inside of our Electronics segment and the products in our Electronics segment are also having strong traction in data center. We mentioned design wins we had this time in liquid cooling, but also in onboard. And so we have a lot of products from our electronics segment that are onboard power protection products and actually our semiconductor protection products actually going to data center onboard.

是的。我的意思是，我認為資料中心屬於我們的電子部門，而且我們電子部門的產品在資料中心也有很強的吸引力。我們提到了這次我們在液體冷卻以及板載方面取得的設計勝利。因此，我們的電子部門有許多產品，包括機載電源保護產品，實際上我們的半導體保護產品實際上都用於機載資料中心。

And I think actually, interestingly, like one of the trends that's happening in this -- you all hear about data center market and the data centers gigawatts of power, et cetera. But every step of the chain in the data center is going to higher energy density. And so our solutions, a lot of our electronics products are about -- they tend to be slightly smaller than, say, the industrial products.

我認為實際上有趣的是，就像正在發生的趨勢之一——你們都聽說過資料中心市場和資料中心千兆瓦的功率等等。但資料中心鏈條中的每一步都朝著更高的能量密度發展。因此，我們的解決方案，我們的許多電子產品都是 - 它們往往比工業產品略小。

But again, you're trying to put more energy into a small area and still have that protection. So we have some surface map, for example, our surface fuses, our low-voltage devices, our semiconductor protection devices are playing well in that space. What was the second half of the question, Luke?

但同樣，您試圖將更多的精力投入到一小塊區域，同時仍保持這種保護。因此，我們有一些表面圖，例如，我們的表面保險絲、低壓設備、半導體保護設備在這個領域發揮著良好的作用。盧克，這個問題的後半部是什麼？

Yes. So just maybe sizing the data center exposure, like I said, it's been a good exposure historically, but not only the largest, but it feels like that's growing right now.

是的。因此，也許只是確定資料中心曝光度的規模，就像我說的，從歷史上看，這是一個很好的曝光度，但不僅是最大的，而且感覺現在還在增長。

Yes. I think what I would say is that data center is materially important to Littelfuse, but I also think it's going to be more important as time goes on. So I think the thing to understand about this, we talked about our second strategic priority about selling more of our complete solutions. And this is really about also how we align our go-to-market so that we're more leveraging our broad capabilities.

是的。我想說的是，資料中心對於 Littelfuse 來說非常重要，但我認為隨著時間的推移，它會變得更加重要。所以我認為要理解這一點，我們討論了我們的第二個策略重點，即銷售更多完整的解決方案。這實際上也涉及我們如何調整我們的市場進入方式，以便更好地利用我們廣泛的能力。

Interestingly, I talked about some of our industrial products selling straight into data center. So the go-to-market for our data center is right now focusing in our electronics segment, but we're trying to better scale that go-to-market. So data center is a key kind of early area where we're focusing the scaling of go-to-market to bring more of our portfolio to our customers. And so this is an area where we're building pipeline. We have good design wins, but we also have growing pipeline.

有趣的是，我談到了我們的一些工業產品直接銷售到資料中心。因此，我們資料中心的行銷目前主要集中在電子領域，但我們正努力更好地擴大行銷規模。因此，資料中心是一個關鍵的早期領域，我們專注於擴大市場規模，為我們的客戶帶來更多的產品組合。這是我們正在建造管道的區域。我們已經贏得了良好的設計成果，但我們的管道也不斷擴大。

And so we will continue to see momentum in that --

因此，我們將繼續看到這一勢頭--

All very helpful. I'll leave it there.

一切都非常有幫助。我就把它留在那裡。

Thank you.

謝謝。

Thanks.

謝謝。

Christopher Glynn of Oppenheimer.

奧本海默的克里斯托弗·格林。

Yes. Just would like to dive into the passenger vehicle share gains kind of point in time. I don't think you called it out last quarter. Obviously, you flipped to positive organic. But is this kind of a midstream activity that's just kind of hitting past the starting line presently?

是的。只是想深入了解乘用車份額成長的時間點。我認為你上個季度沒有提到這一點。顯然，你轉向了正向的有機體。但這是否是一種剛剛越過起跑線的中游活動？

Yes. Thanks, Chris. I think look, when we look at passenger vehicle, I think the thing that I'll say is that we have a very strong market position and good exposure globally. And so we participate in the North American market, in the China market and in the European market. And we participate strongly actually in EV and also traditional ICE vehicles as well.

是的。謝謝，克里斯。我認為，當我們看乘用車時，我想說的是，我們在全球範圍內擁有非常強大的市場地位和良好的知名度。因此，我們參與北美市場、中國市場和歐洲市場。我們實際上也積極參與電動車和傳統內燃機汽車的發展。

So we have a pretty good market exposure.

因此我們的市場曝光率相當高。

And I would say so we have good strong exposure and share. And we talked about before that on average, EVs tend to have higher content. So therefore, when they have higher content, we tend to have more dollar share that goes with that, but we have good share across. So I would say, from my perspective, the share gains here is really about kind of where our market exposure is and how our position is. And that's going to go up and down.

我想說的是，我們擁有良好的曝光度和份額。我們之前討論過，平均而言，電動車的含量往往較高。因此，當他們擁有更高的內容時，我們往往會擁有更多的美元份額，但我們擁有良好的份額。因此我想說，從我的角度來看，這裡的份額成長實際上取決於我們的市場曝光度和我們的地位。而且它會時漲時跌。

But I would also say just emphasizing, I think, our -- when we talk about our transportation segment, passenger vehicle is an important part of that. But I think you'll continue to see our strategy is to try to continue to diversify passenger vehicle is an important part of our Transportation segment. But our strategy is to continue to diversify with some key design wins in the quarter in areas like agriculture that is diversifying out from our traditional customer base, and we consider those to be high growth and SAM opportunities for us.

但我還要強調的是，當我們談論交通運輸領域時，客運車輛是其中重要的一環。但我認為你會繼續看到我們的策略是嘗試繼續實現乘用車多樣化，這是我們交通運輸部門的重要組成部分。但我們的策略是繼續多元化，本季在農業等領域贏得一些關鍵的設計勝利，這些領域正在從我們的傳統客戶群中多元化出來，我們認為這些對我們來說是高成長和 SAM 機會。

Okay. Great. And then we just talked about the share gain in transportation. Industrial, you have good market targeting and penetration. Electronics is a little bigger, more diversified.

好的。偉大的。然後我們剛剛討論了運輸領域的份額成長。工業領域，您擁有良好的市場定位和滲透力。電子產品規模更大，更加多樣化。

It's tougher to discern how it ties into better capitalizing on future growth and more complete solutions. You've talked about BMS and medical in the past. Just wondering how the kind of momentum is playing behind the scenes there overall at electronics relative to the kind of more visible at the 2 smaller segments.

更難的是辨別它如何與更好地利用未來成長和更完整的解決方案聯繫起來。您過去曾談論過 BMS 和醫療。我只是想知道，相對於兩個較小領域的更明顯的發展勢頭，電子產品領域的幕後發展勢頭如何。

Yes. I think what's important to understand about this strategy, and I think from my perspective, we're -- we're in the early innings of this strategy right now. But what's important is that in all of our segments in Electronics and industrials and transportation, we're trying to get more disciplined and deliberate about, okay, what are the growth drivers in the segment? What are the parts of the market that are growing, where do we want to focus? So -- and then how -- what's our position there.

是的。我認為了解這項策略很重要，而且我認為從我的角度來看，我們現在正處於這項策略的早期階段。但重要的是，在電子、工業和運輸等所有領域，我們都在努力變得更加自律和深思熟慮，好吧，這些領域的成長動力是什麼？市場中哪些部分正在成長，我們應該關注哪些方面？那麼——我們的立場是什麼？

So we're focused on these areas where they're focused on transition to higher voltage, higher current. I gave an example actually in the script that comes from the electronics segment, which is actually in enterprise computing. And actually, that example, what's interesting about that to me is we talk about transition to high voltage on high current, and we've talked in the past about data center going to 400 or 800 volts and people think all very high voltage.

因此，我們專注於這些領域，重點是向更高電壓、更高電流的過渡。實際上，我在腳本中給出了一個來自電子領域的例子，該領域實際上是企業計算領域。實際上，對我來說，這個例子很有趣，因為我們談論的是高電流向高電壓的轉變，我們過去曾討論過資料中心電壓達到 400 伏特或 800 伏特，人們認為電壓都非常高。

But actually, this enterprise computing market for this application of connectivity is transitioning from 5-volt to 48 volt. Now 48-volt is not high in the context of 800-volt. But in the context of the application, it's a high voltage, and we've actually developed completely new solutions around semiconductor protection because it's a very demanding requirement in terms of power density and electromagnetic compatibility. So that's a good example.

但實際上，這種連接應用的企業運算市場正在從 5 伏特過渡到 48 伏特。現在48伏在800伏特的背景下並不算高。但在應用環境中，它是一種高電壓，我們實際上已經圍繞半導體保護開發了全新的解決方案，因為它在功率密度和電磁相容性方面有著非常嚴格的要求。這是一個很好的例子。

And so what we're trying to do is find where in these markets and in the subsegments, whether it be building automation and electronics or medical or aerospace and defense, where do we have opportunities where we can leverage those megatrends on electrification with our technology. And so you'll be hearing more about that as we build out the strategy over the next quarters.

因此，我們正在嘗試做的是找到這些市場和細分市場中我們有機會利用我們的技術來利用電氣化大趨勢的地方，無論是樓宇自動化和電子、醫療、航空航太和國防。因此，當我們在接下來的幾季制定策略時，您將聽到更多有關這方面的資訊。

Okay. And then last for me. I was just curious, the electronics margin slightly down sequentially on 9% sequential sales growth. I don't know if stock and variable comp plays in there. It looks like that's a 21% year-over-year drag in the third quarter.

好的。然後對我來說是最後的。我只是好奇，電子產品的利潤率較上季略有下降，而銷售額則連續成長 9%。我不知道股票和可變補償是否在其中發揮作用。看起來，第三季的年減幅度為 21%。

Maybe we could level set the context of that third quarter timing as well as the electronics sequential margins.

也許我們可以設定第三季的時間背景以及電子產品的連續利潤率。

Yes. So Chris, this is Abhi. So what I'll say is this. I mean if you look at the Electronics margin profile, what you're seeing in there in the second quarter is really strong drop-through in our passive products and our protection business within our semiconductor product business, right, which is partially getting offset by deleverage of power semi business. and the acquisition of Dortmund.

是的。克里斯，這是阿比。所以我要說的是這個。我的意思是，如果你看一下電子產品的利潤率概況，你會看到第二季度我們的被動產品和半導體產品業務中的保護業務出現了非常強勁的下降，但這部分被電力半導體業務的去槓桿化和對多特蒙德的收購所抵消。

Now all that said, what we are seeing is improved orders in our power semi. So as we start to see the volume recover over time, what you see is rescaling and solid margin performance coming out of the Electronics segment. But just to clear one more time on the electronics side, we did see strong drop-through on passive products protection business within our semiconductor product business, which got offset by power semi.

綜上所述，我們看到的是電力半導體訂單的增加。因此，隨著我們開始看到銷售隨著時間的推移而恢復，您會看到電子部門的重新調整和穩健的利潤表現。但是，在電子方面，我們再次明確指出，我們確實看到半導體產品業務中被動產品保護業務的大幅下滑，但卻被功率半導體業務所抵消。

On the Q3 question, what I'll tell you is, I think if you look at our guide for Q3 and look at what we've laid out from a true operational execution standpoint, what you're seeing is year-over-year a flow-through of 38% on EBITDA conversion, which is getting offset by 2 things really. Number one is stock and variable comp. And within that, there's 2 pieces. If you recall, on the stock-based compensation for retirement-eligible employees, instead of taking the hit all in Q2, we spread it between Q2 and Q3. So part of the impact in that $0.21 that you see on the page is tied to that.

關於第三季的問題，我想告訴你的是，如果你看一下我們第三季的指南，並從真實的營運執行角度來看我們所列出的內容，你會看到 EBITDA 轉換的流通量同比增長了 38%，但這實際上被兩件事所抵消。第一是股票和可變薪酬。其中有兩件。如果您還記得的話，對於符合退休條件的員工的股票薪酬，我們並沒有將其全部影響到第二季度，而是將其分攤到第二季度和第三季度。因此，您在頁面上看到的 0.21 美元的部分影響與此有關。

Second piece is the AIP. So if you recall last year, given where the company's performance were, we had to lower the bonus accrual. So this year, what you see in here is the bonus being accrued at 100% on a target. And so that's why year-over-year, you see an impact.

第二部分是 AIP。所以如果你還記得去年的情況，考慮到公司的業績，我們就得降低獎金累積金額。因此，今年，您在這裡看到的是按目標 100% 累積的獎金。這就是為什麼你會看到年復一年的影響。

And then the other bucket is nothing more than two things. There was a mark-to-market good guy last year that won't repeat this year. And then there's the differential in tax rate that's playing a bit of a role on a year-over-year basis. But again, true operational performance is really strong if you look at it on a year-over-year basis, a 38% conversion on the EBITDA line.

而另一個桶子裡只不過是兩件東西。去年有一個以市價計價的好人，但今年不會再發生這種情況。然後，稅率的差異在年比上也扮演了一定的角色。但是，如果以年比來看，實際營運績效確實強勁，EBITDA 轉換率達到 38%。

Great, thanks for all that.

太好了，謝謝你。

Thanks for your questions.

感謝您的提問。

Saree Boroditsky, Jefferies.

薩裡‧博羅迪茨基 (Saree Boroditsky)，傑弗里斯 (Jefferies)。

I think you talked a lot on the call about kind of the focus on growth opportunities. And I know it's early days, but I was just curious if you had any thoughts on what this could add to the top line? And then are these opportunities accretive to margins? Or do they need higher investments?

我認為您在電話中談了很多關於關注成長機會的問題。我知道現在還為時過早，但我只是好奇您是否認為這會為營收帶來什麼成長？那麼這些機會是否會增加利潤呢？或者他們需要更高的投資？

Thanks, Saree, I'll just start. I mean I think it's -- we Big picture, we believe that we have significant opportunity to grow and scale the company. So I think we're focusing our strategy. We're focusing around the safe and efficient transfer of energy in all three of our markets, we see opportunity there.

謝謝，Saree，我這就開始。我的意思是，我認為——從大局來看，我們相信我們有很大機會發展和擴大公司規模。所以我認為我們正在集中精力製定戰略。我們專注於三個市場中能源的安全高效傳輸，我們看到了其中的機會。

So big picture, we believe we have top line growth. We're building our long-term models now that we're going to be rolling out as we go forward. So we'll be able to talk more in future quarters about kind of the details of our growth model. But I think early indicators that I can say, we've mentioned in the call that we have double-digit growth in pipeline. I do believe that we're seeing traction already from a customer engagement perspective on how we're aligning our go-to-market.

所以從整體來看，我們相信我們的收入會成長。我們現在正在建立我們的長期模型，並將在未來逐步推廣。因此，我們將能夠在未來幾個季度中更多地談論我們的成長模式的細節。但我認為我可以說的早期指標，我們在電話會議中提到，我們的管道實現了兩位數的成長。我確實相信，從客戶參與的角度來看，我們已經看到了我們如何調整行銷策略的吸引力。

So we're building these long-term models as we go, and we'll be talking about that more in future quarters, but we do believe that we will be driving top line growth -- but we also want to drive bottom line growth as well. So that's part of the second half. We do believe we have untapped opportunity from an operational perspective. That's part of our scaling operational excellence.

因此，我們正在建立這些長期模型，我們將在未來幾個季度中更多地討論這個問題，但我們確實相信我們將推動營收成長 - 但我們也希望推動利潤成長。這就是下半部的一部分。我們確實相信，從營運角度來看，我們還有尚未開發的機會。這是我們擴大卓越營運的一部分。

We saw some early results on that as well. So we believe that we can grow both top line and bottom line. Obviously, the top line will require some investments, but that's kind of the scale, I would say. And I mean, you're Abhi give your views to how you see that as well.

我們也看到了一些早期成果。因此我們相信我們可以同時實現營業收入和利潤的成長。顯然，營收成長需要一些投資，但我想說，這就是規模。我的意思是，你是 Abhi，也請你發表一下你對此的看法。

Yes, absolutely. I mean look, first of all, thanks for the question. Pleasure to meet you. I guess I'll tell you, the strategic priorities. What's really exciting about the journey that we are on is a couple of things.

是的，絕對是。我的意思是，首先，感謝您的提問。很高興見到你。我想我會告訴你戰略重點。我們所經歷的旅程中真正令人興奮的是幾件事。

First of all, as we sharpen our focus and go after opportunities that's really going to help us grow our top line, that's the work we're doing right now. And as I mentioned, we're going to repeat that in the fall. But in plastic fashion, if you kind of think about our portfolio and think about our business model, right? When you see organic growth, just the way we saw in Q2, when you start to move the organic needle, what that translates into is bottom line margin expansion and bottom line growth, right? And that's what we're really excited about.

首先，我們要集中精力，尋找真正能幫助我們提高收入的機會，而這就是我們現在正在做的工作。正如我所提到的，我們將在秋季重複這項做法。但是在塑膠時尚領域，如果您考慮我們的產品組合併考慮我們的商業模式，對嗎？當您看到有機成長時，就像我們在第二季度看到的那樣，當您開始移動有機指針時，這意味著底線利潤率的擴大和底線的成長，對嗎？這才是我們真正興奮的事。

But I think Greg's point in his page 3 on the slide deck around focusing and capitalizing on future growth opportunities, really providing more broader solutions for our customer and following that with operational execution is what I'm really excited about. And I think that will translate into top line growth, bottom line growth over the longer haul. And to Greg's point, in February of next year, we plan to lay that out as part of our 3-year target in terms of what we believe the organic, the inorganic piece is going to convert into over the next 3 years and what that means from a bottom line standpoint.

但我認為，格雷格在投影片第 3 頁中提出的觀點是，專注並利用未來的成長機會，真正為我們的客戶提供更廣泛的解決方案，並隨後進行營運執行，這才是我真正興奮的地方。我認為從長遠來看這將轉化為收入成長和利潤成長。正如格雷格所說，明年 2 月，我們計劃將其作為 3 年目標的一部分，說明我們認為有機部分和無機部分在未來 3 年內將轉換為什麼，以及從底線角度來看這意味著什麼。

I look forward to having those targets. Maybe just sticking on the subject, you talked in the beginning about some higher voltage solutions, data centers. Maybe just any sense of the competitive environment there and maybe your market share today versus what you think it can be?

我期待實現這些目標。也許只是堅持這個話題，您一開始就談到了一些更高電壓的解決方案、資料中心。也許只是對那裡的競爭環境有任何感覺，也許您目前的市場份額與您想像的相比如何？

Yes. Thanks, Saree. Well, I mean, listen, we feel very comfortable with our technology position. And in general, I would say, our position is that as the markets move to these higher voltage, higher current, higher power, we are more differentiated. I've met with some of these customers, even the data center customers myself.

是的。謝謝，莎莉。嗯，我的意思是，聽著，我們對我們的技術地位感到非常滿意。總的來說，我想說，我們的立場是，隨著市場轉向更高電壓、更高電流、更高功率，我們的差異化程度也會更高。我親自會見了其中一些客戶，甚至是資料中心的客戶。

And they really value Littelfuse's capability there.

他們確實重視 Littelfuse 在這方面的能力。

And I think there's a big part of our capability and brand that plays to our strength there because we have experience and people know, okay, they can count on Littelfuse working in that model. Of course, we have competition. We have competition in all the markets and places that we play.

我認為我們的能力和品牌在很大程度上發揮了我們的優勢，因為我們有經驗，人們知道，他們可以信賴 Littelfuse 在該模式下的工作。當然，我們有競爭。在我們參與的所有市場和領域都存在競爭。

But I would say, in general, we feel good about our technology and capability. And in general, as we move to these higher energy density applications, our products are more differentiated and also the problems that the customers are more challenging. And so therefore, we are a bigger part of the solution. So in general, that's a good trend for us and for ours.

但我想說，總的來說，我們對我們的技術和能力感到滿意。總的來說，隨著我們轉向這些更高能量密度的應用，我們的產品更加差異化，客戶面臨的問題更具挑戰性。因此，我們是解決方案的重要組成部分。總的來說，這對我們和我們自己來說都是一個很好的趨勢。

Thanks for the question. Congrats on the quarter.

謝謝你的提問。恭喜本季取得佳績。

(Operator Instructions)

（操作員指示）

David Williams, Benchmark Company.

大衛威廉斯 (David Williams)，Benchmark 公司。

Congrats on the really solid execution here. I guess maybe first is just kind of thinking about the power semi segment, and you've talked about the orders improving there. But when do you think we can see that leverage really return and begin to see some real impact from the power semi side?

恭喜您在這裡取得了真正出色的執行力。我想也許首先只是考慮一下電力半導體領域，並且您已經談到了那裡的訂單正在改善。但是您認為我們什麼時候才能看到槓桿真正回歸並開始看到來自電力半導體方面的一些真正影響？

Yes. Thanks, David. Just to start, just kind of maybe zoom on and hear and Abhi referred to this a little bit in his remarks earlier. we zoom out and look at our semiconductor business, about 50% of our semiconductor business is our semiconductor protection business. That was actually the example we gave on the call here enterprise computing.

是的。謝謝，大衛。首先，我們稍微放大一下，聽聽 Abhi 之前在評論中提到過這一點。我們縮小範圍，看看我們的半導體業務，大約 50% 的半導體業務是半導體保護業務。這實際上是我們在企業計算電話會議上給出的例子。

And so that business has actually been doing very well, very strong and actually been following our kind of path and electronics business.

因此，這項業務實際上一直表現得非常好，非常強勁，並且實際上一直在遵循我們的路徑和電子業務。

The other half of our semiconductor business is our power semiconductor business. The market for the power semiconductor business has been soft, as you know. And so we've had a soft market position. We also will be transparent that we've had some of our own execution challenges in the power semiconductor business. But I would say the good news is that we are starting to see areas of improvement in power semi.

我們的半導體業務的另一半是功率半導體業務。如您所知，功率半導體業務市場一直疲軟。因此我們的市場地位一直處於弱勢。我們也將坦誠地承認，我們在功率半導體業務方面遇到了一些執行挑戰。但我想說的好消息是，我們開始看到電力半導體領域的改進。

And 2 things. First, I would say that in general, our market position in power semi, when you get the higher energy density solutions, just like we are in our passive business, we are more differentiated and we have more value to our customers. But also from a market perspective, we're starting to see signs of stabilization or is it been improving. And so we do expect positive momentum sequentially in the power semiconductor business. And that's areas where we are going to continue as well to focus on improving our execution and things that we can talk about more in future homes.

還有兩件事。首先，我想說，總的來說，當您獲得更高能量密度的解決方案時，我們在功率半導體領域的市場地位就像我們在被動業務中一樣，我們會更加差異化，並為我們的客戶帶來更多價值。但從市場角度來看，我們也開始看到穩定或改善的跡象。因此，我們確實預期功率半導體業務將呈現連續的正面動能。這也是我們將繼續致力於提高執行力的領域，也是我們可以在未來的家中談論更多的事情。

Great, and then secondly, just on the visibility and maybe how you see the in demand here, do you feel like, what we're seeing in terms of the improvement across your segments, does this feel like, an inflection maybe on the in demand side or do you think there's some tariffs, maybe uncertainty that's pulling things forward anything that that you see that's maybe outside of just that normal inflection and demand that you think is driving this? Thank.

太好了，其次，僅從可見性以及您如何看待這裡的需求來看，您是否覺得，就各個細分市場而言，我們看到了什麼改善，這是否感覺像是需求方面的一個拐點，或者您是否認為存在一些關稅，也許是不確定性在推動事情的發展，您所看到的可能超出正常拐點和需求的任何因素，您認為這些因素正在推動這一趨勢？感謝。

Great. And then secondly, just on the visibility and maybe how you see the end demand here. Do you feel like what we're seeing in terms of the improvement across your segments, does this feel like an inflection maybe on the end demand side? Or do you think there's some tariff maybe uncertainty that's pulling things forward? Anything that you see that's maybe outside of just that normal inflection in demand that you think is driving this?

偉大的。其次，僅就可見性以及您如何看待這裡的最終需求而言。您是否覺得我們所看到的各細分市場的改善，是終端需求方面的轉捩點？或者您認為某些關稅方面的不確定性會推動事情的發展？您認為有哪些因素可能超出了推動此現象的正常需求變化範圍？

I mean, like, I think what we said on the call, right, we had solid momentum in the quarter, strong backlog and bookings. And we are, I would say, from our perspective, seeing improved stability in our end markets. We're still in a dynamic macro environment. But one thing I think we would say is that if we compare this to maybe 3 to 6 months ago, we have more -- we have better visibility. So we feel better about our kind of medium- to near-term visibility than we did three to six months ago, given that the environment that we're in.

我的意思是，就像我們在電話會議上說的那樣，我們本季發展勢頭強勁，積壓訂單和預訂量強勁。我想說，從我們的角度來看，我們的終端市場正在變得更加穩定。我們仍然處於動態的宏觀環境。但我想說的是，如果我們將現在的情況與 3 到 6 個月前進行比較，我們將會有更多——更好的可見性。因此，考慮到我們所處的環境，我們對中期和近期的可見性比三到六個月前感覺更好。

Yes, David, and I mean, even if I take a step back and kind of think about our Q3 guide, I mean if you look at it on a year-over-year basis, we are talking about a 9% reported 6% organic. So again, if you just look at Q3 performance, back to your question, we are expecting a pretty nice 6% organic for the quarter on a year-over-year basis.

是的，大衛，我的意思是，即使我退一步思考我們的第三季度指南，如果你按同比來看，我們談論的是 9% 的報告 6% 的有機增長。所以，如果您只看第三季的表現，回到您的問題，我們預計本季的有機成長率將達到 6%，這相當不錯。

And all three segments, as I think about all three segments, 2Q to 3Q, I expect Electronics and Industrial to go up sequentially. Now Transportation seasonally is down two to three due to shutdowns. And then on a year-over-year basis, as I kind of look at our performance, that's a part of this guide across all three segments, you should expect growth.

對於所有三個領域，當我考慮所有三個領域時，從第二季度到第三季度，我預計電子和工業領域將連續上升。現在，由於停工，運輸量季節性下降了兩到三個月。然後，從同比來看，當我觀察我們的業績時，這是涵蓋所有三個部門的指南的一部分，你應該期待成長。

This concludes the question and answer session. I'll turn the call to Greg Henderson for the closing remarks.

問答環節到此結束。我將把電話轉給格雷格·亨德森 (Greg Henderson) 來做結束語。

Okay, thank you. I just want to thank you. I appreciate all of you coming and asking questions and support a little, it's early innings here for us in our strategy, but we're really excited about the future world building in this safe and efficient energy transfer, and I look forward to future quarters where we can update you on progress on our strategy. So thank you very much.

好的，謝謝。我只是想謝謝你。我感謝大家的到來並提出問題和支持，我們的戰略才剛剛起步，但我們對未來在這種安全高效的能源傳輸中建設世界感到非常興奮，我期待著未來幾個季度我們可以向大家通報我們戰略的進展情況。非常感謝。

This concludes today's conference call.

今天的電話會議到此結束。

Thank you for joining. You may now disconnect.

感謝您的加入。您現在可以斷開連線。