LKQ Corp (LKQ) 2026 Q2 法說會逐字稿

Hello, everyone. Thank you for joining us, and welcome to LKQ Corporation's second quarter 2026 earnings conference call. After today's prepared remarks, we will host a question-and-answer session. (Operator Instructions)

各位好。感謝各位加入，歡迎參加 LKQ Corporation 2026 年第二季財報電話會議。在今天的預先準備發言之後，我們將進行問答環節。(接線員指示)

I will now hand the conference over to Joe Boutross, Vice President of Investor Relations. Joe, please go ahead.

現在我將把會議交給投資人關係副總裁 Joe Boutross。Joe，請開始。

Thank you, operator. Good morning, everyone, and welcome to LKQ's second quarter 2026 earnings conference call.

謝謝，接線員。各位早安，歡迎參加 LKQ 2026 年第二季財報電話會議。

With us today are Justin Jude, LKQ's President and Chief Executive Officer; and Rick Galloway, our Senior Vice President and Chief Financial Officer. Please refer to the LKQ website at lkqcorp.com for our earnings release issued this morning as well as the accompanying slide presentation for this call.

今天與會者包括 LKQ 總裁暨執行長 Justin Jude，以及資深副總裁暨財務長 Rick Galloway。請參閱 LKQ 網站 lkqcorp.com，上面有我們今早發布的財報新聞稿，以及本次電話會議的隨附簡報。

Now let me quickly cover the Safe Harbor. Some of the statements that we make today may be considered forward-looking. These include statements regarding our expectations, beliefs, hopes, intentions or strategies.

現在我快速說明「安全港」聲明。我們今天所做的部分陳述可能被視為前瞻性陳述。其中包括關於我們的預期、信念、希望、意圖或策略的陳述。

Actual events or results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors. We assume no obligation to update any forward-looking statements. For more information, please refer to the risk factors discussed in our Form 10-K and subsequent reports filed with the SEC.

由於各種因素，實際事件或結果可能與前瞻性陳述中明示或暗示者有重大差異。我們不承擔更新任何前瞻性陳述的義務。更多資訊請參閱我們的 Form 10-K 以及後續向美國證券交易委員會（SEC）提交之報告中所討論的風險因素。

During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release and slide presentation. Hopefully, everyone has had a chance to look at our 8-K, which we filed with the SEC earlier today. And as normal, we are planning to file our 10-Q in the coming days.

在本次電話會議中，我們將同時呈現 GAAP 與非 GAAP 財務衡量指標。GAAP 與非 GAAP 指標之調節表已包含於今日的財報新聞稿與簡報中。希望各位都已看過我們今天稍早向 SEC 提交的 8-K。並且如同往常，我們計畫在未來幾天內提交 10-Q。

And with that, I am happy to turn the call over to our CEO, Justin Jude.

接下來，我很高興把電話會議交給我們的執行長 Justin Jude。

Thanks, Joe. Good morning, everyone, and thank you for joining us. The question I hear most often is why investors should have confidence in LKQ's ability to improve performance. The answer is simple, confidence comes from evidence.

謝謝，Joe。各位早安，感謝各位加入。我最常聽到的問題是，投資人為何應該對 LKQ 改善績效的能力有信心。答案很簡單：信心來自證據。

As I look across LKQ today, I see a company that has a unique global distribution network for auto parts and a relentless focus on serving our customers. While this quarter fell short of our expectations, this is a company that is stronger and better than the reported results may suggest.

當我放眼今日的 LKQ，我看到的是一家擁有獨特的全球汽車零件配送網路，並且持續專注於服務客戶的公司。雖然本季未達我們的預期，但這家公司其實比財報數字所呈現的更強、更好。

Our North American segment returned to positive organic growth for the first time in nine quarters. Preparable claims showed another quarter of sequential improvement and alternative part utilization continued to increase.

我們的北美事業部在連續九個季度後，首次回到正向的有機成長。可修復理賠件數再度呈現連續季度改善，而替代零件使用率也持續提升。

Specialty also continued to deliver organic growth, demonstrating the resilience of its market position. In Europe, our reported results were affected by ERP implementation challenges in Germany and softer performance in certain European markets. We take accountability for those results.

Specialty 事業也持續帶來有機成長，展現其市場地位的韌性。在歐洲，我們的報告結果受到德國 ERP 導入挑戰以及部分歐洲市場表現較疲弱的影響。我們對這些結果承擔責任。

While the implementation has been more challenging and taken longer to stabilize than planned, we've identified the issues, implemented recovery projections and remain confident in the long-term strategic value of the ERP investment. It expands our common platform footprint, creates the foundation for a more integrated operating model and supports better service, productivity and margin performance over time.

雖然導入過程比原先規劃更具挑戰、且穩定所需時間也更長，但我們已找出問題、實施復原計畫，並且仍對 ERP 投資的長期策略價值充滿信心。它擴大我們共用平台的覆蓋範圍，為更整合的營運模式奠定基礎，並在時間推進下支持更好的服務、生產力與毛利率表現。

The investments we're making today are designed to increase LKQ's earnings power for many years and this quarter does not fully reflect the underlying earnings potential of the business. We continue to execute on our strategic initiatives designed to enhance our long-term competitive position and earnings power.

我們今天所做的投資，旨在於未來多年提升 LKQ 的獲利能力，而本季並未充分反映該業務的內在獲利潛力。我們持續推進各項策略性計畫，以強化我們的長期競爭地位與獲利能力。

This morning, I will review the progress in North American specialty, discuss our recovery actions and long-term opportunity in Europe and then address our full year outlook and strategic review before turning the call over to Rick for a more detailed financial review.

今天早上，我將回顧北美 Specialty 的進展，說明我們在歐洲的復原行動與長期機會，接著談全年展望與策略檢視，然後把電話會議交給 Rick 進行更詳細的財務回顧。

Now let me address each segment in a little more detail, beginning with North America. The progress in North America was solid. North America delivered positive growth in the quarter of 0.5% compared to a decline of repairable claims of 1% to 3% for the quarter, showing once again how North America can outperform the market.

現在我將更詳細地說明各事業部，先從北美開始。北美的進展相當穩健。北美本季成長 0.5%，相較之下，本季可修復理賠件數下滑 1% 至 3%，再次顯示北美能夠優於市場表現。

While the market has not fully recovered, several external indicators continue to reinforce our belief that collision markets are improving. Not only has used car pricing continue to improve, both May and June showed negative insurance CPI on a year-over-year basis, putting pressure on carrier margins, creating a need to reduce repair costs.

雖然市場尚未完全復甦，但多項外部指標持續強化我們對碰撞維修市場正在改善的看法。不僅二手車價格持續改善，5 月與 6 月的保險 CPI 也在年增率基礎上呈現負值，對保險公司利潤率造成壓力，進而產生降低維修成本的需求。

One of the most effective levers they have to reduce cost of repair is to utilize more alternative parts. And alternative parts usage or APU, was over 40% of the quarter, surpassing the previous record achieved in Q1 of this year, which is a positive trend for our business. While there is still room for improvement, the underlying trends are moving in the right direction.

他們降低維修成本最有效的槓桿之一，就是提高替代零件的使用。而替代零件使用率（APU）本季超過 40%，超越今年第一季創下的前一項紀錄，這對我們的業務而言是正向趨勢。雖然仍有改善空間，但基本趨勢正朝正確方向發展。

Our execution also improved. Salvage gross margin exceeded our expectations through improved procurement and operations, there was sequential improvement in fill rates and North America exceeded our free cash flow expectations. Paint volume remained a headwind, but the broader trajectory in collision and salvage improved.

我們的執行也有所改善。透過更好的採購與營運，報廢車（salvage）毛利率高於我們預期；供貨滿足率（fill rates）較前一季改善；北美的自由現金流也超出我們預期。塗料（paint）銷量仍是逆風，但碰撞維修與報廢車業務的整體走勢有所改善。

North America remains focused on enhancing our salvage procurement, improving fill rates, strengthening our pricing and analytics capabilities and consistently executing against our operational initiatives.

北美仍專注於強化報廢車採購、提升供貨滿足率、強化定價與分析能力，並持續穩定地落實各項營運計畫。

Turning to our European segment. The challenges we face in Europe are ours to address. While market demand was softer in certain regions, the primary drivers of our underperformance were implementation and execution challenges that are actively being addressed.

接著談我們的歐洲事業部。我們在歐洲面臨的挑戰，需要由我們自己來解決。雖然部分地區的市場需求較疲弱，但我們表現不如預期的主要原因，是導入與執行上的挑戰，而這些問題正在積極處理中。

As I mentioned earlier, the ERP conversion remains an important and needed step in modernizing the business. While the implementation created disruption, we moved with urgency to address the issues.

如我先前提到，ERP 轉換仍是業務現代化的重要且必要的一步。雖然導入造成干擾，但我們以高度急迫性來處理相關問題。

The customer impact lingered longer than expected, but our recovery has gained momentum. The system performance has improved and operational processes have normalized, and we finished last week above 85% of our normal revenue run rate in Germany. This is a meaningful milestone that demonstrates the progress our teams have made.

對客戶的影響持續時間比預期更久，但我們的復原已逐步加速。系統效能已改善、營運流程也已恢復正常，而我們在上週結束時，德國的營收運行率已回到正常水準的 85% 以上。這是一個重要的里程碑，展現我們團隊所取得的進展。

While there is still work ahead, we are encouraged by the trajectory of the business and remain confident in our ability to restore service levels, win back our share of wallet and realize long-term benefits of this transformation. This conversion was a scaling event and increases the share of our European business operating on a common platform from approximately 5% to more than 30% providing a strong foundation for a more integrated operating model.

雖然前方仍有工作要做，但我們對業務走勢感到鼓舞，並且仍有信心能恢復服務水準、贏回客戶錢包份額（share of wallet），並實現這項轉型的長期效益。這次轉換是一個規模化事件，使我們歐洲業務在共用平台上運作的占比從約 5% 提升至超過 30%，為更整合的營運模式提供堅實基礎。

Over time, we expect this to drive productivity gains, simplify our technology landscape, enhance customer service capabilities and support margin improvement across Europe. The most difficult scaling step is now behind us. The recovery is underway and the long-term benefits of the program remain fully intact.

隨著時間推進，我們預期這將帶來生產力提升、簡化我們的技術版圖、強化客戶服務能力，並支持歐洲整體毛利率改善。最困難的規模化步驟如今已經過去。復原正在進行中，而該計畫的長期效益仍完全不受影響。

Outside of Germany, the UK and the Benelux regions underperformed on the revenue side. While softer demand contributed to the results, our commercial execution in these regions did not meet our expectations.

除德國之外，英國與比荷盧地區在營收方面表現不如預期。雖然需求轉弱對結果有所影響，但我們在這些地區的商業執行未達我們的期望。

To combat the lower volumes, we delivered more than $40 million on a year-over-year improvement in the quarter through the initiatives we put in place, including cost structure optimization, procurement savings, productivity gains and the closure of underperforming locations.

為因應較低的銷量，我們透過已推動的各項措施，在本季相較去年同期實現超過 4,000 萬美元的改善，包括成本結構最佳化、採購節省、生產力提升，以及關閉表現不佳的據點。

We also changed leadership where performance was unacceptable and sharpened our recovery plans around commercial execution, cost control and customer retention. We made additional progress in the quarter with respect to our SKU rationalization objectives.

我們也在表現不可接受之處更換了領導團隊，並針對商業執行、成本控管與客戶留存，強化我們的復原計畫。本季在 SKU 精簡（rationalization）目標方面，我們也取得了額外進展。

I am pleased to say that we have completed our review of our full product brand portfolio. As I have previously stated, completion of this review is required before further delisting action items can be considered to ensure a full understanding of both opportunities and risks are known.

我很高興地表示，我們已完成對全產品品牌組合的檢視。如我先前所述，在能夠考量進一步的下市相關行動項目之前，必須先完成此檢視，以確保對機會與風險都有全面的理解。

Our private label initiative continued to make progress in the quarter with volume penetration reaching 26.6% which puts us well on our way toward meeting our objectives of reaching 30% over the coming years. Our priorities in Europe are to restore service levels in Germany, recapture revenue, improve commercial execution, maintain gross margin discipline and continue to align the cost structure with the current demand.

本季我們的自有品牌計畫持續取得進展，銷量滲透率達到26.6%，使我們朝未來數年達成30%目標的方向穩步前進。我們在歐洲的優先事項是恢復德國的服務水準、重新奪回營收、改善商業執行、維持毛利率紀律，並持續使成本結構與目前需求相匹配。

We know what needs to be done, and we will hold ourselves accountable for delivering it. Ultimately, we see our European business being more efficient, more productive, serving the best customers in the market and generating double-digit EBITDA margins.

我們清楚知道需要做什麼，並將對交付成果負起責任。最終，我們期望歐洲業務更有效率、更具生產力，服務市場上最優質的客戶，並創造兩位數的EBITDA利潤率。

Turning to Specialty. The segment delivered resilient top line performance. Organic revenue increased 4.5% for the quarter and revenue was essentially in line with our expectations for both the quarter and for the first half of the year.

接著談Specialty。該事業部展現出具韌性的營收表現。本季有機營收成長4.5%，營收表現基本符合我們對本季及上半年整體的預期。

Operationally, we continue to see opportunities to improve gross margin, enhance operating efficiency and better leverage our existing cost structure. Our priority is to convert Specialty's resilient revenue profile into stronger and more consistent earnings performance.

在營運面，我們持續看到提升毛利率、強化營運效率，以及更有效運用既有成本結構的機會。我們的優先事項是將Specialty具韌性的營收特性，轉化為更強勁且更一致的獲利表現。

Turning to our full year outlook. We are confident that North America remains firmly on track to meet its full year plan and Specialty continues to consistently demonstrate resilient revenue, although we still have work to do to improve its margins.

接著談我們的全年展望。我們有信心北美仍穩健地按計畫推進以達成全年目標，而Specialty也持續穩定展現具韌性的營收，儘管我們仍需努力改善其利潤率。

Europe remains challenged. The result of all this combined is that we are reducing our outlook to reflect the reality of Europe's performance, but we are not changing our long-term strategic priorities. Our focus remains on disciplined execution improving returns on invested capital and creating long-term shareholder value.

歐洲仍面臨挑戰。綜合上述因素，我們下調展望以反映歐洲表現的現實情況，但我們不會改變長期策略優先事項。我們仍將專注於有紀律的執行、提升投入資本報酬率，並創造長期股東價值。

Let me close with an update on our previously announced strategic review. The process remains active in the company together with its advisers at Bank of America and Goldman Sachs continues to engage with multiple parties. We will share updates when appropriate.

最後，我補充先前宣布的策略檢討最新進度。該流程仍在進行中，公司與其顧問美國銀行（Bank of America）及高盛（Goldman Sachs）持續與多方接洽。我們將在適當時機分享更新。

Rick will now review the consolidated and segment results and our revised outlook. With that, I will turn the call over to Rick.

接下來Rick將回顧合併與各事業部的業績，以及我們修訂後的展望。那麼，我把電話會議交給Rick。

Thank you, Justin, and good morning, everyone. I'll be discussing our consolidated and segment results, cash flow and balance sheet and revised full year outlook.

謝謝你，Justin，各位早安。我將說明我們的合併與各事業部業績、現金流與資產負債表，以及修訂後的全年展望。

Beginning with our consolidated results. Second quarter revenue was approximately $3.4 billion compared with $3.5 billion in the prior year period. Diluted earnings per share were $0.52 and adjusted diluted earnings per share were $0.67 compared with adjusted diluted EPS of $0.84 in the prior year period. The year-over-year decline largely reflects lower revenue and profitability in Europe due to the factors Justin mentioned earlier.

先從合併業績開始。第二季營收約為34億美元，較去年同期的35億美元略降。稀釋每股盈餘為0.52美元，調整後稀釋每股盈餘為0.67美元，去年同期調整後稀釋EPS為0.84美元。年對年下滑主要反映歐洲因Justin先前提到的因素而出現較低的營收與獲利。

Turning to segment results. North America parts and services organic revenue increased 0.5%, the segment's first quarter of growth since 2023. Aftermarket collision revenue increased approximately 2%, and our Canadian hard parts business grew in the mid-single digits, while Paint remained a headwind to the overall growth rate. As Justin noted, repairable claims are showing signs of improvement, and while we are encouraged by the progression, we are not assuming a significant market recovery in our revised outlook.

接著看各事業部表現。北美零件與服務的有機營收成長0.5%，為該事業部自2023年以來首個出現成長的季度。售後碰撞維修營收約成長2%，加拿大硬件零件業務成長達中個位數百分比，而塗料（Paint）仍對整體成長率造成壓力。如Justin所述，可修復理賠件數正顯示改善跡象；儘管我們對此進展感到鼓舞，但在修訂後的展望中，我們並未假設市場會出現顯著復甦。

North America segment EBITDA was $207 million, representing a segment EBITDA margin of 14.1%. The quarter included a $10 million expense related to a legal reserve resulting in a drag on segment EBITDA margin of approximately 70 basis points, meaning the underlying performance was in the high 14% range. This reserve relates to an isolated onetime event and it helps explain the difference between the reported margin and the operational progress we saw in the quarter.

北美事業部EBITDA為2.07億美元，EBITDA利潤率為14.1%。本季包含一筆與法律準備金相關的1,000萬美元費用，使事業部EBITDA利潤率約降低70個基點，亦即其基礎表現約落在14%後段。該準備金與一項孤立的一次性事件相關，並有助於解釋報告利潤率與本季所見營運改善之間的差異。

Europe parts and services organic revenue declined 12.6%. The primary driver was the disruption related to the ERP implementation in Germany. We estimate the quarterly revenue impact was approximately $140 million. Europe segment EBITDA was $109 million, a year-over-year decline of $42 million, representing a margin of 7.5%. The decline primarily reflects the ERP implementation challenges in Germany as well as softer demand in the UK and Benelux.

歐洲零件與服務的有機營收下滑12.6%。主要驅動因素為德國ERP導入相關的營運中斷。我們估計本季營收影響約為1.4億美元。歐洲事業部EBITDA為1.09億美元，年對年減少4,200萬美元，EBITDA利潤率為7.5%。下滑主要反映德國ERP導入挑戰，以及英國與比荷盧（Benelux）需求較疲弱。

We estimate the ERP disruption reduced EBITDA by approximately $50 million during the quarter, while the volume pressures predominantly in the UK and Benelux reduced EBITDA by roughly $30 million. Despite these headwinds, the business delivered meaningful productivity gains and cost reductions through the restructuring and efficiency initiatives we have discussed in prior quarters.

我們估計ERP中斷使本季EBITDA減少約5,000萬美元，而主要來自英國與比荷盧的銷量壓力使EBITDA再減少約3,000萬美元。儘管面臨這些逆風，該業務仍透過我們在前幾季討論過的重整與效率提升措施，實現顯著的生產力提升與成本降低。

Absent the ERP disruption, Europe was on track to generate double-digit EBITDA margins for the quarter, even while absorbing the volume pressures in the UK and Benelux. This demonstrates that the team is controlling the factors within its influence, prioritizing profitable revenue and steadily improving the underlying earnings power of the region.

若不計ERP中斷影響，歐洲本季原本可望達成兩位數的EBITDA利潤率，即使同時吸收英國與比荷盧的銷量壓力亦然。這顯示團隊正掌控其可影響的因素，優先追求具獲利性的營收，並穩步提升該區域的基礎獲利能力。

Specialty organic revenue increased 4.5% and segment EBITDA was $33 million with an EBITDA margin of 6.7%. Revenue performance remained resilient, while gross margin and mix remain areas for improvement, and freight and fuel costs were headwinds for the quarter.

Specialty有機營收成長4.5%，事業部EBITDA為3,300萬美元，EBITDA利潤率為6.7%。營收表現仍具韌性，但毛利率與產品組合仍有改善空間，且運費與燃料成本為本季逆風。

Moving on to our cash flow and balance sheet. Second quarter operating cash flow was $111 million, and free cash flow was $60 million. For the first six months of the year, operating cash flow was $55 million and free cash flow was negative $36 million, which was slightly below our expectations due primarily to softer Europe performance. We ended the quarter with total liquidity of $1.9 billion and net leverage of 2.8 times EBITDA.

接著看現金流與資產負債表。第二季營運現金流為1.11億美元，自由現金流為6,000萬美元。今年前六個月，營運現金流為5,500萬美元，自由現金流為負3,600萬美元，主要因歐洲表現較疲弱而略低於我們預期。本季末我們的總流動性為19億美元，淨槓桿倍數為EBITDA的2.8倍。

During the quarter, we returned $129 million to shareholders through share repurchases and dividends. In July, we prepaid the outstanding $500 million US term loan originally due in Q1 2027 with proceeds from our revolving credit facility. We expect to use free cash flow generated over the balance of the year to reduce the outstanding balance of our revolving credit facility following the prepayment of the term loan.

本季我們透過庫藏股回購與股利，向股東返還1.29億美元。7月，我們以循環信用額度的資金提前償還原訂於2027年第一季到期的5億美元美國定期貸款餘額。我們預期將使用今年剩餘期間所產生的自由現金流，在提前償還定期貸款後，降低循環信用額度的未償餘額。

Our capital allocation priorities remain unchanged. We will continue to deploy capital in a disciplined manner, balancing investment that support growth in the business, containing a strong balance sheet and returning capital to shareholders.

我們的資本配置優先順序維持不變。我們將持續以有紀律的方式配置資本，在支持業務成長的投資、維持強健的資產負債表，以及回饋股東之間取得平衡。

Finally, with respect to our guidance, our revised 2026 outlook and assumptions are included on slide 11. Operationally, North America remains on track against its full year plan. The outlook assumes repairable claims remain near current levels with modest improvements during the second half.

最後，關於我們的財測指引，修訂後的2026年展望與假設已列於第11頁投影片。在營運面，北美仍按全年計畫推進。展望假設可修復理賠件數維持在目前水準，並在下半年出現溫和改善。

We are encouraged by the improvement seen during the quarter, particularly in June, but are not assuming a significant market recovery. Europe remains the primary area of operational focus and is driving the majority of the reduction in guidance.

我們對本季、特別是6月所見的改善感到鼓舞，但並未假設市場會出現顯著復甦。歐洲仍是營運聚焦的主要領域，並驅動本次指引下調的大部分幅度。

Our revised outlook assumes continued improvement in service levels and revenue in the affected German operations during the second half but at a more measured pace than we previously expected. It also assumes that conditions in the UK and Benelux remain soft and that benefits of our leadership, cost and productivity actions build progressively over the remainder of the year.

我們修訂後的展望假設受影響的德國營運在下半年服務水準與營收持續改善，但改善步調較我們先前預期更為審慎。同時也假設英國與比荷盧的市場狀況仍偏疲弱，且我們在領導力、成本與生產力方面的措施效益，將在今年剩餘期間逐步累積。

Specialty continues to grow organically, although our outlook reflects there is work to be done to improve margin and mix. Based on these assumptions, we expect organic parts and services revenue in the range of negative 1% to negative 3%.

Specialty仍持續有機成長，但我們的展望也反映出仍需努力改善利潤率與產品組合。基於上述假設，我們預期零件與服務的有機營收將介於負1%至負3%之間。

We expect adjusted diluted earnings per share of $2.60 to $2.90 compared with our previous range of $2.90 to $3.20. We believe the revised range reflects the current pace of recovery and the operating risks we see in the second half.

我們預期調整後稀釋每股盈餘為 2.60 美元至 2.90 美元，相較於先前區間 2.90 美元至 3.20 美元。我們認為修訂後的區間反映了目前的復甦步調，以及我們在下半年所看到的營運風險。

Additionally, we now expect full year free cash flow of $625 million to $775 million compared to our previous outlook of $700 million to $850 million. In summary, North America is showing encouraging sequential improvement, Specialty continues to grow.

此外，我們目前預期全年自由現金流為 6.25 億美元至 7.75 億美元，相較於先前展望的 7.00 億美元至 8.50 億美元。總結來說，北美呈現令人鼓舞的連續改善，Specialty 業務持續成長。

Our focus is on getting Europe back on track. Our priorities are restoring service levels in Germany, improving execution in the UK and Benelux and continuing to manage cash flow and the balance sheet with discipline.

我們的重點是讓歐洲重回正軌。我們的優先事項是恢復德國的服務水準、改善英國與比荷盧的執行力，並持續以紀律管理現金流與資產負債表。

With that, I will turn the call back over to Justin.

接下來，我把電話交回給 Justin。

Thank you, Rick. North America is showing meaningful progress and specialty continues to demonstrate resilient revenue. We are focused on sustaining the strength of North American specialty and executing the recovery of Europe with urgency and discipline. We have clear operating visibility and measurable service targets. We will continue to communicate candidly about our progress and hold ourselves accountable for the results.

謝謝你，Rick。北美正展現實質進展，而 Specialty 業務持續展現具韌性的營收。我們專注於維持北美 Specialty 的強勁表現，並以緊迫感與紀律推動歐洲的復甦執行。我們對營運有清楚的能見度，並有可衡量的服務目標。我們將持續坦率溝通我們的進展，並對結果自我負責。

While we are reducing our outlook to reflect the reality of Europe's performance, our long-term strategy hasn't changed. Lastly, I want to thank our more than 42,000 employees around the world for their work through a demanding quarter and thank you to our customers and shareholders for their continued engagement.

雖然我們下調展望以反映歐洲表現的現實情況，但我們的長期策略並未改變。最後，我要感謝全球超過 42,000 名員工在充滿挑戰的一季中的付出，也感謝我們的客戶與股東持續的參與與支持。

With that, we are happy to open the call to questions.

接下來，我們很高興開放提問。

(Operator Instructions) Jeff Lick, Stephens Inc.

(接線員指示) Jeff Lick，Stephens Inc.。

I want to focus maybe on wholesale North America and just the evolution of the progress that's being made there. First, if you could add a little bit more on your view on the repairable claims where you thought you saw those for 2Q?

我想把焦點放在北美批發業務，以及那邊進展的演變。首先，能否請你們再多談一些你們對第二季可修復理賠（repairable claims）的看法？你們當時認為會落在什麼水準？

And then, Justin, on the last call, you talked about how in a depressed environment the business first goes to the MSO and then it's hard to see improving conditions that will go to the India operators and that should help margin. Where do you see that on that progress, where we're at in terms of the evolution there?

另外，Justin，在上次電話會議中你提到，在低迷環境下，業務會先流向 MSO，之後當景氣改善時，會流向獨立經營者（independent operators），這應該有助於毛利率。你怎麼看這方面的進展？我們目前在這個演變過程中處於什麼位置？

And then just a quick one for Rick. Is the legal settlement, Rick in the $420 million of SG&A for WNA?

最後再快速問 Rick 一題。那筆法律和解金是否包含在北美批發（WNA）4.20 億美元的 SG&A 之中？

On the North American side, we saw the repairable claims being down negative 1% to 3% range, which is an improvement in Q1. Some of the macro trends that we're seeing out there with used car prices, insurance premiums -- insurance premiums coming negative in May and June, these are all benefiting us and showing that market recovery. So we feel pretty good that the market is heading in the right direction.

在北美方面，我們看到可修復理賠量下滑約 1% 到 3% 的區間，相較第一季有所改善。我們看到的一些總體趨勢，例如二手車價格、保險費率——保險費率在 5 月與 6 月轉為負成長——這些都對我們有利，並顯示市場正在復甦。因此我們對市場正朝正確方向發展感到相當樂觀。

With the volume still being down, though, to your point, the insurance companies are looking to cut costs and the easiest way they do that is use more alternative parts and improve cycle time. and MSOs typically lead in that world. So a lot more business is being driven to the MSOs right now. Now MSOs are the bigger customers. They get the best prices.

不過如你所說，儘管量仍在下滑，保險公司正尋求降低成本，而他們最容易採取的方式就是使用更多替代零件並改善週期時間（cycle time），而 MSO 通常在這方面領先。因此目前有更多業務正被導向 MSO。現在 MSO 是較大的客戶。他們能拿到最好的價格。

But at the end of the day, they do use more alternative parts than a non-MSO rooftop, so we see a bigger share of opportunity of wallet to grow with those guys. They're much larger scale, so we have less SG&A to deliver. So from a margin standpoint, we actually do better on the MSO side. But yes, MSOs continue to get share right now in that depressed market. But once again, we do see that the market is recovering in the right direction.

但歸根結底，他們確實比非 MSO 的單店（rooftop）使用更多替代零件，因此我們看到與這些客戶合作有更大的「錢包份額」（share of wallet）成長機會。他們規模更大，因此我們需要投入的 SG&A 較少。所以從毛利率角度來看，我們在 MSO 端其實表現更好。但沒錯，在目前低迷的市場中，MSO 仍在持續取得市占。不過再次強調，我們確實看到市場正朝正確方向復甦。

And Jeff, on the SG&A, yes, that's the biggest driver of the $18 million increase is this onetime legal settlement.

Jeff，關於 SG&A，是的，這次 1,800 萬美元增加的最大驅動因素就是這筆一次性的法律和解。

Okay. Just as a quick follow-up, can you get us going on Europe because I'm quite sure some of my peers are going to do that a little bit more. But you made the comment that ex the disruptions from the ERP implementation, things were largely on track and even alluded to the double-digit EBITDA margin.

了解。再快速追問一下，能否先帶我們談談歐洲？我很確定其他同業分析師會更深入問這部分。但你提到，若排除 ERP 導入造成的干擾，整體大致上都在軌道上，甚至提到雙位數的 EBITDA 利潤率。

Could you just set the table there? I'm sure there can be more questions, can you just get us going on -- is that really the case? And how do you see this playing out?

你能否先幫我們鋪陳一下背景？我相信後續會有更多問題，但能否先說明——情況真的是如此嗎？你們認為接下來會如何發展？

Yes. So you look at our conversion that occurred in Germany. And then so if you take the Germany market out of our overall European performance, you can see EBITDA dollars increase on a year-over-year basis, and we did see EBITDA percentage. So a lot of the operating initiatives that we have in place and working on in Europe are starting to take hold.

是的。你看我們在德國發生的系統轉換。如果把德國市場從我們整體歐洲表現中剔除，你會看到 EBITDA 金額年對年增加，而且我們也看到 EBITDA 比率的改善。因此，我們在歐洲推動並執行的許多營運措施正開始發揮效果。

Yes. I think just to add on to that a little bit is we saw the volume tightening up in Benelux and the UK, as I talked about, we were more than able to offset that with over $40 million of overall productivity initiatives heavily driven by the head count reduction, taking the model that we had in North America through productivity, driving performance and transplanting that over to Europe. Those are taking hold and we're seeing the benefits of those that we've been talking about the last few quarters.

是的。我想再補充一點：如我先前提到，我們看到比荷盧與英國的量在收緊，但我們透過超過 4,000 萬美元的整體生產力計畫（主要由人力縮減所驅動）完全足以抵消；我們把北美透過生產力提升來推動績效的模式移植到歐洲。這些措施正在落地，我們也正看到其效益，這正是我們過去幾季一直在談的。

And a quick follow-up there. Where are you at on the private label pricing evolution? You talked about migrating a decent chunk of the business to private label on that, you had to have some gateway pricing to entice people. Does the ERP implementation slow that progress down? And any update on the ramp and being able to walk that price up now?

再快速追問一下。自有品牌（private label）定價的演變目前進展到哪裡？你提到把相當一部分業務轉向自有品牌，為了吸引客戶你們需要一些「入門價」（gateway pricing）。ERP 導入是否會放慢這個進度？另外，關於放量（ramp）以及現在能否逐步把價格往上調，有沒有最新進展？

Yes. The ERP doesn't have much impact on it. We have seen a slight margin improvement, a slight price increase on our private label. We will continue to drive that price over time as the adoption rate continues to grow and it has. I mean we're nearly 27% on adoption rate of private label.

是的。ERP 對此影響不大。我們確實看到自有品牌毛利率小幅改善、價格小幅上調。隨著採用率持續提升（而且確實在提升），我們會隨時間推動價格上行。我的意思是，我們自有品牌的採用率已接近 27%。

But yes, we did, to your point, we had introductory pricing. And look, there's still economic concerns over there, consumers paying more at the pump. A lot of cost sensitivity going on, and that allows us to introduce that private label at that introductory pricing. But once again, in Q2, we did see a slight price increase and a slight margin increase in private label.

不過是的，如你所說，我們先前採取了導入期定價。而且你看，當地仍有經濟疑慮，消費者在加油站的支出更高。成本敏感度很高，這也讓我們能以導入期定價推出自有品牌。但再次強調，在第二季我們確實看到自有品牌價格小幅上調、毛利率也小幅提升。

Craig Kennison, Baird.

Craig Kennison，Baird。

Justin, what are the plans to roll out this ERP system across Europe? I know you started in Germany, but wondering if investors should be prepared for rolling disruptions as you move to other countries?

Justin，你們計畫如何在歐洲推廣這套 ERP 系統？我知道你們從德國開始，但想了解投資人是否需要為你們推進到其他國家時可能出現的持續性干擾做好準備？

Yes. Great question, Craig. Let me maybe start off with the why again on -- I know I covered this in Q1, why are we doing the system conversion. I mean we've added acquisitions plus in Europe. We have 30-plus ERP systems.

是的。很好的問題，Craig。我先再從「為什麼」談起——我知道我在第一季已經說過——我們為什麼要做系統轉換。我們在歐洲新增了多起併購。我們有 30 多套 ERP 系統。

It's a patchwork of aging systems that were quite honestly built for much smaller operations. They're becoming increasingly difficult to support and many of those lack capabilities that our customers are asking for. As customers get bigger, they want integration. And in many cases, we're not able to do that.

這是一個由老舊系統拼湊而成的組合，坦白說，這些系統是為規模小得多的營運所建置的。它們越來越難以支援，而且其中許多缺乏客戶所要求的功能。隨著客戶規模變大，他們希望能夠整合。而在許多情況下，我們做不到。

And so transforming to a single ERP brings efficiencies, it brings common data model, standardize processes, gives us better control, resulting in higher visibility, higher efficiencies. And so at the end of the day, we need to continue to drive over -- drive our ERP over there.

因此，轉換到單一 ERP 能帶來效率提升，帶來一致的資料模型、流程標準化，讓我們有更好的控管，進而提高可視性、提升效率。所以歸根結底，我們需要持續推動——把我們的 ERP 推進到那邊。

Now with the conversion in Germany, a lot of lessons learned, a lot of things that we realized that we could do better, but it was a scaling event for us. We had roughly $300 million of revenue on a legacy system supporting three steps. So three-step business is much more simple stockholders.

現在就德國的轉換而言，我們學到很多教訓，也發現很多可以做得更好的地方，但對我們來說那是一個規模化事件。我們大約有 3 億美元的營收是在一套舊系統上運作，支援三步驟流程。所以三步驟的業務對股東來說要簡單得多。

And then now we have a $2 billion revenue on the platform servicing two-step businesses where there's a lot more transactions, a lot more customers, a lot more people, a lot more employees on that. Once again, we've learned a lot on it, but it was a scaling event.

而現在我們在這個平台上有 20 億美元的營收，服務的是兩步驟業務，交易更多、客戶更多、人更多、員工也更多。再一次，我們從中學到很多，但那確實是一個規模化事件。

In all future conversions, we don't have any slated for this year, but all future conversions that are going to go into next year. become easier, right? Because now it's not a large scaling event. It's much smaller businesses, much small ERP systems, migrating into a $2 billion platform. So much more confidence that they'll be quicker, they'll be less disruptive and bring better cost savings in the future as well.

在所有未來的轉換中，我們今年沒有排定任何轉換，但所有將進入明年的未來轉換都會變得更容易，對吧？因為現在不再是大型的規模化事件。而是更小的業務、更小的 ERP 系統，遷移到一個 20 億美元的平台上。因此我們更有信心它們會更快、干擾更小，未來也能帶來更好的成本節省。

Thanks. but just to follow up. I think investors are going to want to try to model this. It's been a big disappointment this quarter. And it feels like it's going to happen next year, we're just trying to figure out how to think through the revenue and EBITDA implications of this.

謝謝。不過我想追問一下。我認為投資人會想嘗試把這件事建模。這一季的表現讓人非常失望。而感覺明年還會發生，我們只是想弄清楚該如何看待這對營收與 EBITDA 的影響。

I totally get the long-term benefit of this and the absolute need to get on one platform, but we want to get the estimates right --

我完全理解這件事的長期效益，以及必須上到單一平台的絕對必要性，但我們希望把預估做準確--

Yes. Look, it's a great point, Craig. And as we give guidance into the next year, I mean nothing is going to be converted in the coming quarters. We obviously got a continued hyper care in the German market, continue to refine and recover on the revenue side. But once again, we've learned a lot of lessons.

是的。聽著，Craig，你提得很好。而且當我們對明年提供指引時，我的意思是接下來幾個季度不會有任何轉換。我們顯然會在德國市場持續進行密集支援（hyper care），持續精進並在營收端恢復。但再一次，我們確實學到了很多教訓。

We built a scale -- not just a scaled system, but a scaled team that supports it. And so we have much higher confidence that when we do the next conversion, which once again will be next year, and we'll come out with that in the future when those will occur in our guidance, but we have much more higher confidence that that it will be less disruptive. Obviously, a lot of lessons learned on this, really needed initiative that we have.

我們建立了一個可擴展的——不只是可擴展的系統，還有支援它的可擴展團隊。因此我們更有信心，當我們進行下一次轉換（同樣會在明年）時——我們未來會在指引中說明何時發生——但我們更有信心它會更不具干擾性。顯然，這次我們學到很多教訓，這也是我們一項非常必要的倡議。

And not to Rick, you hop on the calls for Justin on that. I totally appreciate the need to do this. But you've also changed management quite a bit in Europe to try to get the right talent in place. They haven't been in the chair that long in some cases. Is it just a lot to ask relatively new leaders to take on a project like this?

另外，Rick，你也可以加入 Justin 的電話會議來談這件事。我完全理解必須這麼做。但你們也在歐洲更換了不少管理層，試圖把合適的人才放到位。在某些情況下，他們坐上那個位置的時間還不長。對相對較新的領導者來說，要他們承擔這樣的專案會不會要求太高？

Yes. I mean some of the leaders that we brought on have experience on transformation. They've got experience on integration. If you look at the backside operations, whether it's in our IT leadership or our transformation leaders as well as some of our operational leaders. So their background was in distribution.

是的。我的意思是，我們引進的一些領導者有轉型經驗。他們也有整合經驗。如果你看後端營運，不論是我們的 IT 領導、轉型領導，或是一些營運領導。所以他們的背景是在配銷領域。

They have backgrounds of large complexes, backgrounds of transformation and conversions and immigration. So I mean they have that experience in the past, and so that's one of the reasons we brought those folks on because they have that right mindset and skill set to help us get through these conversions in the future.

他們有大型複雜組織的背景，也有轉型、轉換以及移轉的背景。所以他們過去確實有那樣的經驗，而這也是我們把這些人找來的原因之一，因為他們具備正確的思維與技能組合，能幫助我們在未來完成這些轉換。

Jash Patwa, JPMorgan.

Jash Patwa，摩根大通。

Curious if you could split the $200 million annualized tariff exposure across automotive and nonautomotive segments and how the recent gapping of Section 232 automotive parts tariffs on import from Taiwan should reduce that tariff exposure? And then how should we expect any benefit to be split between gross profit benefit or pass-through to customer savings? And I have a follow-up.

想請教你們是否能把每年年化 2 億美元的關稅曝險在汽車與非汽車部門之間拆分一下？以及最近針對自台灣進口的第 232 條汽車零件關稅的落差（gapping）應如何降低該關稅曝險？另外，我們應該如何預期任何效益會在毛利改善與讓利給客戶（節省）之間分配？我還有一個追問。

Thanks, Josh. I can go ahead and take that. As far as the tariffs goes, as most people realize the IEEPA tariffs that came through those were items that we have processed, and we are starting to get some refunds on some of those that were deemed illegal.

謝謝，Josh。我可以來回答。就關稅而言，如同多數人所了解，先前依 IEEPA 徵收的關稅涉及的是我們已經處理過的品項，而對於其中被認定為違法的部分，我們開始收到一些退稅。

Those are pretty small. And those were very, very small portion of what we've got. And we got a few million dollars in our specialty business. That's where most of that comes through.

那些金額相當小。而且那只占我們整體的一個非常、非常小的部分。我們在特種業務那邊拿到幾百萬美元。大多數就是從那裡來的。

On the 232, the big change for us happened on May 1 when 232 for Taiwan, the Taiwan trade deal is moving from 25% down to 15%, so that's a good news story for us. What we're cautiously optimistic is in the back half of the year as we get a turn of inventory through this, how much of that will we be able to hold on to as far as pricing goes.

至於第 232 條，對我們來說最大的變化發生在 5 月 1 日：針對台灣的 232（台灣貿易協議）稅率從 25% 降到 15%，所以這對我們是個好消息。我們審慎樂觀的是，在今年下半年，隨著庫存周轉一輪之後，就定價而言我們能保留多少。

Look, the assumption that I've got in my guide is we weren't able to get any margin enhancement on the way up. I'm assuming we're not going to get much on the way down as we're staying competitive in the pricing. But there is a 40% reduction on those overall tariffs. And that was the lion's share of what we have as far as the overall tariff amounts.

你看，我在指引中的假設是：在關稅上調時，我們無法取得任何毛利提升。我也假設在下調時，我們也不會取得太多，因為我們會在定價上保持競爭力。但整體關稅確實下降了 40%。而那占了我們整體關稅金額中的最大部分。

The new tariffs have very minimal impact on us as far as that 301 tariffs, those are pretty, pretty tiny for us because we're actually under that 232 tariff, so we're monitoring it closely. We're seeing what it is. I don't have a further benefit or hit as far as the rest of the year goes on the Taiwanese deal.

至於新的關稅，對我們的影響非常有限；就第 301 條關稅而言，對我們來說也非常、非常小，因為我們其實是在第 232 條關稅之下，所以我們正密切監控。我們在觀察其狀況。就台灣協議而言，我不認為今年剩餘期間還會有進一步的利多或利空影響。

It is better news than -- well, it's definitely better news than it going in the opposite direction. And so we're looking to make sure we maintain our overall margins and make sure we have an ability to maintain whatever we can on the pricing side.

這是比——嗯，肯定比往相反方向走要好得多的消息。因此我們會確保維持整體毛利率，並確保在定價端能保留我們所能保留的部分。

That's very helpful. I appreciate all the color. And just as a quick follow-up, I was wondering if you could break out the price versus volume split in North America for Q2.

這非常有幫助。感謝你提供這麼多細節。另外快速追問一下，我想知道你們能否拆分一下北美第二季價格與銷量的貢獻？

So on the pricing, I did talk about it briefly in my overall communication. The pricing is positive -- the overall revenue is positive primarily because of pricing. So the tariff pass-through that we got brought us to 0.5% overall revenue growth. So that's great. The overall net volumes are still negative, slightly negative.

關於定價，我在整體說明中確實簡要提過。定價是正向的——整體營收為正主要是因為定價。我們取得的關稅轉嫁（pass-through）使整體營收成長達到 0.5%。所以這很好。整體淨銷量仍然是負的，略為負成長。

But the positive thing that we should look at is aftermarket collision was actually up about 2%. So we actually had about 2% improvement in aftermarket collision. We also saw bumper to bumper in the mid-single digits. Our hard parts business in Canada is growing above market. We think it's taken some pretty good share.

但我們應該看到的正面之處是，售後碰撞（aftermarket collision）其實成長了約 2%。所以我們在售後碰撞業務上約有 2% 的改善。我們也看到 bumper-to-bumper 在中個位數成長。我們在加拿大的硬件零件（hard parts）業務成長高於市場。我們認為我們拿到了一些相當不錯的市占。

Where we've been negative is primarily on the paint business, which is the most discretionary thing that you can do within the repair, so when there's a discretionary component to not do on their overall repair, it tends to be the paint, and so paint has been down and paint's the drag as far as the overall volume goes.

我們表現較為負面的主要是在塗料業務上，因為在維修範圍內，塗料是你能做的最具可選擇性的項目；因此當整體維修中有可選擇不做的部分時，往往就是塗料。所以塗料一直下滑，而就整體量能而言，塗料是主要拖累。

John Babcock, Barclays.

John Babcock，巴克萊。

Just wanted to dig back into Europe a little bit here. I guess with regards to the UK and Benelux. In the UK, you've discussed some competitive factors in the past. Just curious if that's what's been driving the weakness there or if there's anything else going on? And then if you could just talk a little bit more about what you're seeing in Benelux, that would be useful.

我想再深入談一下歐洲這部分。我想是關於英國與比荷盧。在英國，你們過去談過一些競爭因素。想請教這是否就是那邊疲弱的主因，或還有其他因素在發生？另外，如果你們也能多談一點在比荷盧看到的情況，會很有幫助。

It is just heightened competition with a new -- I mean, an entry that's expanded in a number of locations. So several years ago, they had 80, now they're up to 230. There's not a lot more markets necessarily that makes sense to expand into, but any time they expand and open, it creates some margin pressure and pricing pressure and volume pressure, and we've seen that continue on.

就是競爭加劇，因為有一家新進者——我是說，一個進入者在多個地點擴張。幾年前他們有80個據點，現在增加到230個。不一定還有很多合理的市場可以再擴張，但他們每次擴張、開新點，都會帶來一些毛利壓力、定價壓力與量能壓力，而我們看到這種情況持續存在。

We've obviously got action items going. We changed some leadership there to get a little bit more aggressive on that, the erosion of revenue that we're seeing and ensure that we're getting our cost out and we did. So we talked about, even though we had revenue declines in the UK and Benelux, we still over-delivered on an EBITDA standpoint.

我們顯然已經在推動一些行動項目。我們也更換了那邊部分領導層，讓作風更積極，以因應我們看到的營收侵蝕，並確保把成本降下來，而我們也做到了。所以我們提到，儘管英國與比荷盧的營收下滑，但在EBITDA表現上我們仍然超出預期。

On the Benelux standpoint, it's really what I would call a three-step business. There are some three -- large three-step customers that we decided to walk away from. It was a low-margin business. We're still pushing on our two-step over there, trying to get more two-step business, but we walked away from that three-step business, but then we offset some of that lost revenue with SG&A reductions and productivity. So overall, still EBITDA was up in those markets.

就比荷盧而言，這基本上是我所稱的「三段式」業務。有一些大型三段式客戶我們決定退出。那是低毛利的業務。我們仍在那邊推動「兩段式」，努力爭取更多兩段式業務；但我們退出了三段式業務，同時透過SG&A削減與生產力提升，抵銷了部分流失的營收。因此整體而言，那些市場的EBITDA仍然是成長的。

And then in Germany, the ERP disruption there, can you just maybe talk a little bit more about what exactly happened, like why did things go a little sideways there? .

另外在德國，關於ERP導入造成的干擾，你能否再多談一些到底發生了什麼？例如為什麼事情會有點失控？.

Yes. Look, good question. It's a short question, but it's going to be probably a little bit more longer answer and I'll be a little bit more transparent and candid with you guys. When we first went live over there in the first couple of weeks, a lot of stability issues with the system, slowness, systems were crushing.

可以。你問得很好。這問題很短，但答案可能會比較長一點，我也會更透明、更坦白地跟各位說。我們在那邊上線後的前幾週，系統有很多穩定性問題、速度很慢，系統甚至會當機。

And then towards the end of April, we stabilized the system, it was up and running, customers placing orders, and we saw revenue ramp up pretty quick. And so towards the end of April, we were really positive on that.

接著到4月底左右，我們把系統穩定下來，系統恢復運作，客戶開始下單，我們看到營收很快回升。所以在4月底時，我們對此其實相當正面。

But then as you get that revenue flowing through that new system, you start uncovering basic things that normally happen with conversions. Obviously, we had a little bit more than we expected. But things like bad data, maybe the system processes weren't operating as they should have, so call them bugs.

但當營收開始透過這套新系統流轉時，你就會開始發現一些轉換時通常會出現的基本問題。顯然，我們遇到的狀況比預期多一些。例如資料錯誤，或系統流程沒有如應有方式運作，我們就稱之為bug。

A lot of those things have been resolved through May and June. And so when that happened, our service levels weren't great, and customers are used to strong service levels from our Stahlgruber business in Germany. Stahlgruber is over a 100-year company, so customers are -- have known us and use us for many, many -- for a generation.

這些問題在5月與6月大多已經解決。但在那段期間，我們的服務水準不理想，而客戶對我們在德國的Stahlgruber業務一向習慣高服務水準。Stahlgruber是一家超過100年的公司，所以客戶——他們認識我們、使用我們已經很多很多——可以說是一個世代。

And so when we were failing on our service levels, on our fill rates, customers had no choice but to find alternatives, and so we fixed a lot of the bugs. We've corrected data. We've continued to refine processes to make sure they're more -- they're efficient. We are on a much more stronger system, much more robust system, but it is a new system.

因此當我們的服務水準與到貨滿足率（fill rates）出問題時，客戶別無選擇只能尋找替代方案；我們已修復了許多bug。我們也修正了資料。並持續優化流程，確保流程更——更有效率。我們現在使用的是更強、更穩健的系統，但它畢竟是新系統。

And so the other piece that we're continuing to work through is just training those folks that were on that legacy system, that were used to that legacy system, just getting them more and more familiar with the new system.

另外一個我們持續在處理的部分，就是訓練那些原本使用舊系統、習慣舊系統的人員，讓他們越來越熟悉新系統。

And I would say the majority of our branches are performing well on service levels. They're performing well on revenue. We have a couple of dozen locations that are -- we've got to go in and get them retrained up, and we've sent tiger teams there to help out.

我會說我們大多數分點在服務水準上表現良好。在營收表現上也不錯。但我們有二十幾個據點——我們必須進去把他們重新訓練到位，我們也派了突擊小組（tiger teams）去協助。

I would say when we were battling through some of the system issues, we took all of our outside sales folks and helped put out fires, take care of transaction issues, customer service issues. Now that we've got the system stabilized and it's really just getting our teams continue to train and improve on our service levels, we've taken those sales teams in the last couple of weeks and put them back in the field and then calling on those customers letting them know that things have returned to normal.

我會說，當我們在處理一些系統問題時，我們把所有外勤業務人員都拉來協助滅火，處理交易問題、客服問題。現在系統已穩定，接下來主要就是讓團隊持續訓練並提升服務水準；過去幾週我們已把這些業務團隊再派回前線，拜訪客戶並告知一切已恢復正常。

And so it's just a lot of different situations, mainly, I would say, escalated because of the scale of that system. I mean the first couple of weeks is what really set us off and got us off on a bad start, and we've been climbing out of that. But I would say today, the system is stable. It is up and running. No issues with that, and we're just now once again, getting our teams retrained to make sure they can operate as efficient as they did prior to the conversion.

所以這是很多不同情況的綜合，主要我會說，是因為那套系統的規模而被放大。前幾週才是真正讓我們出師不利、起步就不順的關鍵，而我們一直在努力爬出那個坑。但我會說就今天而言，系統是穩定的。它已經上線運作。這方面沒有問題；我們現在只是再次讓團隊重新受訓，確保他們能像轉換前一樣有效率地運作。

Okay. That's very helpful. And then just last question before I turn it over. I was just wondering if there are any updates on the considered sale of the specialty business and also whether or not the performance there is maybe leading you to consider potentially reevaluating what to sell that business?

了解。這非常有幫助。最後一個問題，然後我就交給下一位。我想請問，關於考慮出售專業（specialty）業務是否有任何更新？以及那邊的表現是否會讓你們考慮重新評估要不要出售該業務？

Yes, no update on that process of the specialty other than we have a strategic alternative review on the whole company and specialties included in that. And then so through that process, obviously, we'll be evaluating and talking to different folks on the best outcome for our overall business and different portions of our business, and so that will be covered in there.

是的，關於專業業務的流程沒有更新；不過我們正在對整家公司進行策略替代方案的檢視（strategic alternative review），專業業務也包含在其中。因此在這個過程中，我們當然會評估並與不同對象洽談，以尋求對整體業務以及各個業務板塊的最佳結果，這些都會涵蓋在該檢視中。

And look, at the end of the day, they are the number one -- specialty is number one in their space. They are growing and outperforming the market, which we still think is flat to down, and so they are performing well, but obviously, we launched the process and so we thought we may not be the right owners of that, even though it's a great asset and performing really well. But once again, it'll be evaluated with the overall strategic review that we have going on.

而且說到底，他們在其細分領域是第一名——專業業務在其領域排名第一。他們正在成長且表現優於市場；我們仍認為市場是持平到下滑，所以他們的表現確實很好。但顯然我們已啟動該流程，我們認為即便這是一項很棒、表現也很好的資產，我們可能不是最合適的持有人。不過同樣地，這會在我們正在進行的整體策略檢視中一併評估。

Bret Jordan, Jefferies.

Bret Jordan，Jefferies。

On the European business, I think you guys were confident in the first quarter that the short-term pain of the ERP process would benefit second half margin. But are we thinking that we're going to have a further step down in EBITDA margin in Europe, just given the share loss in the UK, Benelux, Germany, that there's going to have to be some aggressive near-term spend to try to bring volumes back and we go lower before we go higher? Or are you -- do you think Q2 was a low watermark from an EBITDA margin standpoint?

關於歐洲業務，我記得你們在第一季時很有信心，認為ERP流程帶來的短期陣痛會在下半年帶來毛利率改善。但考量英國、比荷盧、德國的市占流失，我們是否應該預期歐洲的EBITDA利潤率還會再往下走一步，因為可能需要在短期內更積極投入支出來把量拉回來，先更低再更高？還是你們認為第二季在EBITDA利潤率角度已經是低點（low watermark）？

Yes. I think I can take that at the start, Bret. And then Justin, if you want to add some things. As far as the low water mark, we think that Q2 would be the low watermark. One of the reasons why we pointed out that if you look at the overall Europe, I think this is what you were talking about, Justin.

是的。我想我可以先回答這個，Bret。然後 Justin，如果你想補充一些內容。就低水位而言，我們認為第二季會是低點。我們之所以指出這一點，其中一個原因是，如果你看整體歐洲，我想這就是你在說的，Justin。

When we look at Europe, excluding the ERP, even with the volume declines we saw in Benelux and the UK, we were able to offset that through overall productivity initiatives across all of Europe. And so we actually made more EBITDA dollars and more EBITDA percent. We were in double digits if you back out that ERP.

當我們看歐洲（不含 ERP）時，即使我們在比荷盧與英國看到出貨量下滑，我們仍能透過全歐洲的整體生產力提升措施來抵銷。因此我們實際上創造了更多的 EBITDA 金額與更高的 EBITDA 比率。如果把 ERP 影響扣除，我們的 EBITDA 比率是雙位數。

When we look at Q3 and Q4, as I go through the guidance and what I have in my estimations is we're still going to have some volume declines. It won't be near as much as what we saw in Q2 for Germany, and then it's going to continue to get better in Q4. We think we finished the end of the year much closer to 100% of our volume, but it's going to be a steady improvement of our German operations. That's the big drag in EBITDA.

當我們看第三季與第四季時，依我在指引與估算中的看法，我們仍會有一些出貨量下滑。但對德國而言，不會像第二季看到的那麼多，並且第四季會持續改善。我們認為年底時的出貨量會更接近 100%，但這會是德國營運穩步改善的過程。那是 EBITDA 的主要拖累。

I don't think that we have pricing we're going after. The big aggression that we did was the low-margin customers that we have, there's sometimes that we're not going to compete on that price. So what we did instead is we went after the overall cost and said, we may forgo on low-end pricing, and we're still going to make more EBITDA dollars and more EBITDA percent along the way. So Justin, I don't know if you want to add anything.

我不認為我們正在追求漲價。我們做的主要強勢作法，是針對我們的一些低毛利客戶，有時我們不會在那個價格上競爭。因此我們改為從整體成本著手，並表示我們可能會放棄低端價格，但在過程中仍會創造更多 EBITDA 金額與更高 EBITDA 比率。所以 Justin，我不知道你是否想補充。

Yes. And then on the recovery for Germany, I know Rick talked about it, our goal is to get back to 100% by year end going into 2027. Obviously, the team is challenged to do that at a faster rate. The good news is we haven't really seen that we've lost customers. We just lost some share of wallet of those customers where the customer had real sensitive on service times of getting a part.

是的。另外關於德國的復甦，我知道 Rick 談過，我們的目標是在年底前回到 100%，並在邁入 2027 年時達成。當然，團隊也被要求以更快的速度做到。好消息是，我們其實沒有看到客戶流失。我們只是從這些客戶那裡流失了一部分錢包份額，因為客戶對零件到貨的服務時間非常敏感。

They may have to call one of our competitors. And it's unfortunate, but now that we've got our service levels back up and running, we've got our sales teams back engaged we're giving and showing the customer confidence that now they can start giving that share of wallet back to us.

他們可能不得不打給我們的競爭對手。這很可惜，但現在我們的服務水準已恢復運作，我們的銷售團隊也重新投入，我們正在給客戶、並向客戶展現信心，讓他們現在可以開始把那部分錢包份額再交回給我們。

So once again, our teams are challenged to grow at a faster rate. But right now, we have that recovery in Europe -- or I'm sorry, in Germany being 100% going into 2027.

所以再說一次，我們的團隊被要求以更快的速度成長。但就目前而言，我們對歐洲的復甦——抱歉，是德國——的目標是在邁入 2027 年時回到 100%。

Okay. And then I guess on specialty, just on an operating leverage question, it seems from a sales standpoint that might be the outperforming business in the portfolio, but not seeing as much on the margin. I mean, it is a distinct supply chain. You think that sales growth would improve EBITDA with leverage, is there anything going on there that's either incremental cost or pricing that's impacting?

好的。那我想在專業（specialty）業務方面，問一個關於營運槓桿的問題：從銷售角度看，它似乎可能是投資組合中表現最好的業務，但在利潤率上沒有看到同樣幅度的反映。我的意思是，它有一條獨立的供應鏈。你會認為銷售成長應該透過槓桿帶動 EBITDA 改善；那裡是否有任何事情——例如新增成本或定價——正在造成影響？

Yes. Brett, that's a great question, good observation. If you look at the earnings presentation, I put in the earnings presentation, there's actually a onetime cost item on the acquisition that we did, where there's customer of our -- or a vendor of ours that we had lent some dollars to.

是的。Brett，這是個很好的問題，觀察得很到位。如果你看財報簡報，我在簡報裡有提到，我們做的那筆併購其實有一項一次性成本項目：我們的一位客戶——或說我們的一家供應商——我們曾借給他們一些資金。

We ended up acquiring them as they were having some trouble in the financials and there was an $8 million noncash reserve we had to make on a credit loss that hit our SG&A, and that hit in the specialty business, that's the main driver of the decrease in overall margin.

由於他們財務狀況出現一些問題，我們最後收購了他們，並且我們必須就信用損失提列 800 萬美元的非現金準備，這筆費用進入了我們的 SG&A，且發生在 specialty 業務中，這是整體利潤率下降的主要原因。

So if you add that back, we're back to the levels that you're talking about. So -- and that's what I think we get to -- when we get back into Q3 and Q4.

所以如果把那筆加回來，我們就回到你所提到的水準。因此——我想這也是我們在第三季與第四季會回到的狀態。

Gary Prestopino, Barrington Research.

Gary Prestopino，Barrington Research。

A couple of questions. It looks like -- and again, these are my numbers, but based on my adjusted EBITDA estimate, if I kick back the $50 million you did beat what I was looking for. I mean what was the impact of earnings per share, adjusted EPS on what happened with the ERP issue?

有幾個問題。看起來——而且這是我的數字——但根據我對調整後 EBITDA 的估算，如果把你們那 5,000 萬美元加回去，你們確實超出我原本的預期。我的意思是，ERP 問題對每股盈餘（EPS）、調整後 EPS 的影響是什麼？

Yes, Gary, it's about $0.15, so $0.15 in the quarter year over year is the ERP, the legal reserve will be about $0.03, and the item that I just talked to Brett about would be another $0.02. So you got about $0.20, $0.21 of ERP and these onetime items that hit us quarter over quarter.

是的，Gary，大約是 0.15 美元，也就是本季年對年約 0.15 美元是 ERP 的影響；法律準備金大約是 0.03 美元；而我剛才跟 Brett 談到的那個項目大約是 0.02 美元。所以 ERP 加上這些一次性項目，季對季合計大約影響我們 0.20 到 0.21 美元。

When you look at the $0.84 from last year, you dropped down about $0.20, $0.21 on these onetime type items. And then you look at the overall performance, and that's the tough thing about the discussion we're having because there's obviously the onetime we take accountability for them, we need to improve them. but there are some nonoperating items that came through our numbers.

如果你看去年同期的 0.84 美元，這些一次性類型的項目讓你下降了大約 0.20、0.21 美元。然後再看整體營運表現——這也是我們討論中困難的地方，因為顯然有些一次性項目我們要負起責任、也需要改善；但也有一些非營運項目反映在我們的數字裡。

Okay. And then with specialty, this is, I believe, the second quarter where we've had an increase in credit losses. You explained what happened in this quarter, was it the same vendor that led to some -- the increase in credit losses in Q1? Or is there something different there? And is that all behind you now?

好的。另外在 specialty 方面，我相信這是第二季我們看到信用損失增加。你解釋了本季發生的事情，那第一季信用損失增加也是同一家供應商造成的嗎？還是有不同的原因？而且現在都已經過去了嗎？

Yes, you're spot on. It's the same vendor, which is the reason why we acquired them in Q2 to stop the bleeding and improve overall performance, and now we've been in improving performance since we acquired them in the middle of Q2.

是的，你說得完全正確。就是同一家供應商，這也是我們在第二季收購他們的原因，為了止血並改善整體表現；而自從我們在第二季中期收購他們以來，我們一直在改善營運表現。

And is it behind you?

那現在都已經過去了嗎？

Yes. Yes, that's behind us now.

是的。是的，現在已經過去了。

Okay. And just real briefly, when you release numbers in Q1, you mentioned that the sale of the specialty business has gotten gummed up a little bit because of geopolitical and credit issues. Are you starting to see entities, if this thing can be sold starting to reengage with you now that some of those geopolitical issues and the credit issues may have become a little more clearer?

好的。再很簡短地問一下，當你們在第一季發布數字時，你們提到 specialty 業務的出售因地緣政治與信用問題而有點卡住。現在一些地緣政治問題與信用問題可能變得更明朗了，你們是否開始看到一些實體（如果這項業務可以出售）重新與你們接洽？

Yes. The -- it hasn't really changed any of the communication with some of the bidders in the past. And so as I mentioned earlier on one of the questions, we just rolled specialty into the overall strategic review that we're doing for the whole company. So that will get repicked up if there's other interested parties in the holdco or other interested parties and pieces of the business, that will all be evaluated.

是的。這——其實並沒有改變我們與先前一些投標方的溝通。因此如我先前在某個問題中提到的，我們只是把 specialty 納入我們針對整個公司的整體策略檢討之中。所以如果有其他對控股公司（holdco）有興趣的對象，或對業務某些部分有興趣的對象，這些都會重新被提起並加以評估。

But the overall geopolitical that created some concerns hasn't necessarily -- even though it may have changed and showed that there's some improvement, it hasn't necessarily gotten some of those bidders back to table.

但造成一些疑慮的整體地緣政治因素，並不一定——即使它可能有所變化並顯示有些改善——也不一定能讓其中一些投標方回到談判桌上。

Scott Stember, Roth Capital Partners.

Scott Stember，Roth Capital Partners。

This is Jack Weisenberger on for Scott. Just on talking about guidance, what does the low end of the new range, assuming about Germany's recovery timing versus the high end? I know you mentioned you plan on getting to 100% recovery by the end of the year. Is that the mid-range? And how much were the other European markets factor in that lowered guidance?.

我是代 Scott 發言的 Jack Weisenberger。就指引來談，新區間的低端相對於高端，假設的是德國復甦時程的哪些差異？我知道你提到你們計畫在年底前恢復到 100%。那是中位數情境嗎？另外，其他歐洲市場在下修指引中占了多少因素？

The bulk of it is because -- Jack, I appreciate the question. The bulk of it is because of the ERP implementation and a slower recovery. We thought we would be a little bit more recovered than we are right now. And so we think it's prudent for us to slow this down as far as the overall recovery. That's the bulk of the further reduction that we have.

主要原因在於——Jack，感謝你的提問。主要是因為ERP導入以及復甦較慢。我們原本以為復甦程度會比目前更好一些。因此，就整體復甦而言，我們認為放慢腳步是較為審慎的作法。這就是我們進一步下修的大部分原因。

The assumption that I've got into the numbers is that I continue to improve in Q3 and Q4. And as we talked about, that we get back to about 100% by the time we exit the year. If you look at the low end, the low end would assume it's more of the status quo.

我在數字中採用的假設是，我們在第三季與第四季會持續改善。如同我們討論過的，我們會在年底前回到約100%。如果看指引區間的低端，低端假設更偏向維持現狀。

So if you look at the low end of the guide, it's more of a status quo in the ERP, and that would be the overall impact. And then as far as the rest of Europe, we did assume that we would have market recovery in the back half of the year.

所以如果你看指引的低端，ERP方面更偏向維持現狀，這會是整體影響。至於歐洲其他地區，我們確實假設下半年市場會復甦。

So there would be some recovery. What we're assuming now is that we have the status quo. So the current run rate essentially for the Benelux and the UK are more of the norm for Q3 and Q4, and that's the remainder a couple of cents that we've got coming down for the back half of the year.

因此會有一些復甦。我們現在的假設是維持現狀。所以Benelux與英國目前的運行水準（run rate）基本上會成為第三季與第四季的常態，而這就是我們在下半年下修的剩餘部分，大約是幾美分。

Okay. Great. And then just with repairable claims having improved sequentially for the past few quarters. What are you seeing in July? Are you seeing the same continue into 3Q?

好的。很好。另外，關於可修復理賠（repairable claims）在過去幾季逐季改善。你們在7月看到什麼情況？第三季是否也會延續同樣趨勢？

Yes, we don't necessarily have data on what is happening with repairable claims overall from a summary standpoint. We do see somewhat consistent volumes in North America coming out of June into July, though.

是的，我們不一定有從彙總角度來看整體可修復理賠目前發生什麼的數據。不過，我們確實看到北美從6月到7月的量大致維持一致。

(Operator Instructions) Jash Patwa, JPMorgan.

（接線員指示）Jash Patwa，摩根大通。

I was just wondering if you could quantify the margin headwind from the spike in diesel costs across the segments. And then as a follow-up, a lot of the initial Germany disruption seems known by April and at the time of Q1 earnings.

我想請問你是否可以量化柴油成本飆升對各事業部門毛利率造成的逆風影響。另外追問一下，德國最初的干擾似乎在4月、以及第一季財報時就已經為人所知。

So I'm curious if it was the pace of recovery through the remainder of the quarter that came in below where you'd expected. And was there something on the competitive response that surprised you to the downside.

所以我想了解的是，是否是該季剩餘期間的復甦速度低於你們原先預期。以及競爭對手的反應是否有什麼讓你們意外、導致表現不如預期的地方。

Jash, I missed the question. Were you talking diesel prices?

Jash，我沒聽清楚你的問題。你是在問柴油價格嗎？

Yes. Just the margin headwind as a result of that?

是的。就是因此造成的毛利率逆風？

Yes. So we have had a little bit of margin headwind. We've done the best we can to offset that as far as overall revenue and then working on overall efficiencies as well. But it has been a little bit of a headwind. We haven't we -- weren't going to quantify the exact amount, but there is a bit of a headwind on that.

是的。所以我們確實面臨一些毛利率逆風。我們已盡最大努力在整體營收面以及提升整體效率方面來抵銷。但它確實帶來了一些逆風。我們不——我們不打算量化確切金額，但確實有一些逆風影響。

We think that net-net, we're usually able to pass along those price increases. But in the short run, it does tend to be a bit of a headwind, which we look to offset.

我們認為從淨額對淨額（net-net）來看，我們通常能把這些漲價轉嫁出去。但短期內，它確實往往會形成一些逆風，我們會設法加以抵銷。

The second part of the question I didn't quite get. Did you jump over to Europe?

第二部分的問題我沒有完全聽懂。你是跳到歐洲那邊了嗎？

Yes. I was just trying to -- I mean, a lot of the initial Germany disruptions seem to be known by April end when you had Q1 earnings, so I was curious like if there was something in the competitive response that surprised to the downside and perhaps impeded the recovery through the remainder of the quarter?

是的。我只是想——我的意思是，德國最初的干擾在4月底、你們公布第一季財報時似乎就已經知道了，所以我想了解是否有競爭對手的反應在下行方面讓你們意外，並且可能阻礙了該季剩餘期間的復甦？

Not necessarily on the competitive side. No. I mean, as I mentioned earlier, in the first couple of weeks, we had a lot of stability issues. But then coming into the back half of April, we saw revenue climbing at a very, very fast rate. And so it gave us confidence going into May and June, as that revenue continues to climb, we started uncovering as I mentioned, some system issues whether that was bad data, whether it was some bugs.

不一定是競爭面的因素。沒有。我的意思是，如我先前提到的，前幾週我們有很多穩定性問題。但到了4月後半段，我們看到營收以非常、非常快的速度攀升。因此這讓我們對進入5月與6月更有信心；隨著營收持續攀升，我們開始發現如我所提到的一些系統問題，不論是錯誤資料，或是一些程式漏洞。

All those things got resolved, which slowed us down from the faster recovery coming into May and June. All those things have been resolved. And now we're just in a retraining standpoint to make sure we get our service levels at a couple of dozen branches back up to par where the majority of our branches are performing today to get that revenue recovered.

這些問題都已解決，但也讓我們在5月與6月原本更快的復甦速度放慢了。這些問題現在都已經解決。目前我們主要是在再訓練（retraining）階段，確保我們在約數十個分點的服務水準能回到應有水準，達到目前大多數分點的表現，讓營收得以恢復。

We have now reached the end of the Q&A session. I will now turn the call back to Justin Jude for closing remarks.

我們現在已到問答環節結束。接下來我將把電話交回給Justin Jude作結語。

Thanks, operator. Just three things I want you to take away from this is we talked about North America. I mean we are seeing great positive trends in the macro environment with insurance premiums coming down, used car prices continuing to climb, repairable claims actually improving into Q2. We had obviously a positive performance on revenue in North America, our first time in nine quarters, so showing great trends in North America.

謝謝，接線員。我希望大家從這次電話會議帶走三點：我們談到北美。我們在總體環境中看到非常好的正向趨勢：保險保費下降、二手車價格持續上升、可修復理賠在第二季實際上有所改善。北美營收表現顯然是正面的，這是我們九個季度以來的第一次，因此顯示北美有很好的趨勢。

Then if you jump over to Europe and you put ERP to the side, we talked about it. But even though we had some volume pressure, the team is actively pursuing all the initiatives they need to take productivity improvements to offset that volume and we actually saw EBIT improvements outside of the ERP country that we converted as well as -- I'm sorry, EBITDA dollars and EBITDA percent, so the team is performing pretty well.

接著看歐洲，如果先把ERP放一邊，我們也談過。儘管我們面臨一些量的壓力，團隊正積極推動所有必要的措施，透過提升生產力來抵銷這些量的影響；而且我們也看到在已轉換ERP的國家以外，EBIT有所改善——抱歉，我是指EBITDA金額與EBITDA百分比，因此團隊表現相當不錯。

The ERP side of Germany, yes, it was disruptive. Yes, it was a little bit more than we expected, but we have great recovery plans. We have clear line of sight of what we need to do, and we're showing continual improvement on that, and we feel confident we'll hit that run rate by the end of the year. And with that, I will end the call. I appreciate everybody joining the call today.

至於德國的ERP部分，是的，確實造成干擾。是的，影響比我們預期稍大，但我們有很好的復甦計畫。我們清楚知道需要做什麼，也持續看到改善，我們有信心在年底前達到那個運行水準（run rate）。以上，我就結束本次電話會議。感謝各位今天參與。

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

今天的電話會議到此結束。感謝各位出席。您現在可以掛線。