Lindsay Corp (LNN) 2025 Q2 法說會逐字稿

Good day and welcome to the Lindsay Corporation fiscal second-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

大家好，歡迎參加 Lindsay Corporation 2025 財年第二季財報電話會議。（操作員指示）請注意，此事件正在記錄中。

I would now like to turn the conference over to Randy Wood, President and CEO. Please go ahead.

現在，我想將會議交給總裁兼執行長蘭迪伍德 (Randy Wood)。請繼續。

Thank you and good morning, everyone. Welcome to our fiscal 2025 second quarter earnings call. With me today is Brian Ketcham, our Chief Financial Officer.

謝謝大家，早安。歡迎參加我們的 2025 財年第二季財報電話會議。今天和我在一起的是我們的財務長 Brian Ketcham。

I'm extremely proud of our team and their execution during the second quarter as our results reflect record quarterly net earnings supported by revenue growth in both business segments. These results demonstrate our commitment to deliver on our long-term goals despite market headwinds in our key irrigation markets. Our irrigation business delivered year-over-yearrevenue growth, led by strength in our international markets; while the domestic irrigation market has continued to perform in line with our expectations.

我對我們的團隊及其在第二季度的表現感到非常自豪，因為我們的業績反映了創紀錄的季度淨收益，這得益於兩個業務部門的收入成長。這些結果表明，儘管我們的主要灌溉市場面臨阻力，但我們仍致力於實現我們的長期目標。我們的灌溉業務收入年增，這主要得益於我們國際市場的強勁成長；國內灌溉市場的表現持續符合我們的預期。

We continue to deliver the large project in the MENA region and also saw growth in other non-project business in this part of the world. We're encouraged by the recent improvement in market conditions in Brazil with unit sales volumes returning to levels comparable to prior year.

我們繼續在中東和北非地區實施大型項目，同時也看到該地區其他非項目業務的成長。我們對近期巴西市場狀況的改善感到鼓舞，銷售量已恢復至與去年同期相當的水平。

Turning to our Infrastructure segment. Our team delivered very strong results this quarter as they completed the Road Zipper project in the Northeast valued at over $20 million that we mentioned during our first quarter call. We remain optimistic in our Road Zipper project sales pipeline. However, the timing on large projects such as this one remains challenging to predict. Our leasing revenues and unit sales of road safety products were slightly lower compared to prior year. However, as we've mentioned on prior calls, we remain focused on growing our Road Zipper system leasing business over the long term as this supports a higher and more stable margin profile for the segment and our overall results.

轉向我們的基礎設施部門。我們的團隊本季取得了非常強勁的業績，完成了我們在第一季電話會議上提到的東北地區價值超過 2000 萬美元的 Road Zipper 項目。我們對於Road Zipper專案的銷售管道依然持樂觀態度。然而，像這樣的大型專案的時間表仍然難以預測。我們的租賃收入和道路安全產品的單位銷售額與前一年相比略有下降。然而，正如我們在先前的電話會議中所提到的那樣，我們仍然專注於長期發展我們的 Road Zipper 系統租賃業務，因為這將為該部門和我們的整體業績帶來更高、更穩定的利潤率。

We were also pleased to receive FHWA approval on our new TAU-XR express repair crash cushion in the quarter. This product is designed for high-frequency impact locations, improving safety for motorists and ease of maintenance for work crews. This product ships fully assembled and can be repaired in less than 30 minutes after a head-on or side impact.

我們也很高興本季我們的新型 TAU-XR 快速修復防撞緩衝墊獲得了聯邦公路管理局的批准。本產品專為高頻衝擊位置而設計，可提高駕駛員的安全性並方便工作人員的維護。該產品以完全組裝的形式發貨，在正面或側面碰撞後可在 30 分鐘內修復。

Shifting gears to our market outlook. In North America, we don't expect meaningful improvement in market conditions in the near term. While the USDA is forecasting a 29% increase in net farm income for 2025, this increase is primarily due to higher government support payments while crop receipts are projected to be slightly lower compared to last year. We anticipate demand for irrigation equipment in the second half of our fiscal 2025 will be stable relative to prior year pending any significant storm damage activity.

轉變我們的市場前景。在北美，我們預期短期內市場狀況不會有顯著改善。雖然美國農業部預測 2025 年農場淨收入將增加 29%，但這一增長主要是由於政府支持支付增加，而農作物收入預計比去年略有下降。我們預計，2025 財年下半年對灌溉設備的需求將與前一年相比保持穩定，除非發生重大風暴破壞。

In our international irrigation markets, particularly the developing regions, we expect to see continued growth driven by project activity as these countries continue to prioritize food security and water resource conservation. In Brazil, we are encouraged to see some improvement in commodity prices, supporting increased customer sentiment. However, rising interest rates and a more challenging credit environment does provide a headwind that can temper demand.

在我們的國際灌溉市場，特別是發展中地區，我們預計將看到由計畫活動推動的持續成長，因為這些國家繼續優先考慮糧食安全和水資源保護。在巴西，我們很高興看到商品價格有所改善，這支持了消費者信心的增強。然而，利率上升和信貸環境愈發嚴峻確實會為需求帶來阻力。

Regarding Infrastructure, our strong year-to-date performance sets us up for full-year growth in fiscal 2025. Our Road Zipper sales funnel continues to be strong. And while additional project sales are on the horizon, the timing of these more complex sales remains uncertain. For the second half of the year, we expect overall activity to be comparable with last year.

關於基礎設施，我們今年迄今的強勁表現為我們在 2025 財年實現全年成長奠定了基礎。我們的 Road Zipper 銷售通路持續保持強勁。儘管更多項目銷售即將到來，但這些更複雜的銷售時機仍不確定。我們預計今年下半年的整體活動將與去年相當。

Before I turn the call over to Brian, I would like to outline our approach to addressing the tariff plan released by the White House yesterday. We've already implemented a comprehensive action plan that includes supplier negotiation, strategic inventory placement, and other supply chain initiatives to manage potential cost impacts to our business. We anticipate the impact of the proposed tariffs to result in marginal increase to our cost of goods which we will pass through in increased pricing.

在將電話轉給布萊恩之前，我想先概述一下我們應對白宮昨天發布的關稅計劃的方針。我們已經實施了一項全面的行動計劃，其中包括供應商談判、策略性庫存佈局和其他供應鏈舉措，以管理對我們業務的潛在成本影響。我們預計擬議的關稅的影響將導致我們的商品成本略有增加，我們將透過提高價格來轉嫁這筆成本。

We are also evaluating the potential impact of additional or retaliatory tariffs. While the situation remains fluid, we have the structure in place to react quickly and plan to utilize our global footprint and supply chain to minimize the potential impact of these actions on our business and our customers.

我們也正在評估額外或報復性關稅的潛在影響。儘管情況仍在不斷變化，但我們已經建立了快速反應的架構，並計劃利用我們的全球影響力和供應鏈，盡量減少這些行動對我們的業務和客戶的潛在影響。

I'd now like to turn the call over to Brian to discuss our second quarter financial results. Brian?

現在我想將電話轉給布萊恩，討論我們的第二季財務表現。布賴恩？

Thank you, Randy. And good morning, everyone. Consolidated revenues for the second quarter of fiscal 2025 increased 23% to $187.1 million, compared to $151.5 million in the prior year. Revenue growth in international irrigation and infrastructure was partially offset by lower North America irrigation revenues compared to the prior year. Net earnings for the quarter increased 47% to $26.6 million or $2.44 per diluted share, compared to net earnings of $18.1 million or $1.64 per diluted share in the prior year. As Randy mentioned, these results represent the highest quarterly net earnings and earnings per share in the company's history.

謝謝你，蘭迪。大家早安。2025 財年第二季的綜合營收較上年同期的 1.515 億美元成長 23% 至 1.871 億美元。國際灌溉和基礎設施收入的成長被北美灌溉收入與上年相比的下降部分抵消。本季淨利為 2,660 萬美元，即每股攤薄收益 2.44 美元，而去年同期淨利為 1,810 萬美元，即每股攤薄收益 1.64 美元，年增 47%。正如蘭迪所提到的，這些結果代表了公司歷史上最高的季度淨收益和每股收益。

Turning to our segment results, Irrigation segment revenues for the quarter increased 11% to $148.1 million, compared to $133 million in the prior year. North America irrigation revenues of $77.1 million decreased 7% compared to the prior year. The decrease resulted primarily from lower unit sales volume of irrigation equipment, slightly lower average selling prices, and lower sales of replacement parts, compared to the prior year. This decline in unit sales volume was slightly less than expected as we did see year-over-year growth in certain regions of the U.S.

談到我們的分部業績，本季灌溉分部營收成長 11% 至 1.481 億美元，去年同期為 1.33 億美元。北美灌溉收入為 7,710 萬美元，較前一年下降 7%。下降的主要原因是與去年相比，灌溉設備的單位銷售量下降、平均銷售價格略有下降以及替換零件的銷售下降。由於我們確實看到美國某些地區的銷售量較去年同期成長，因此單位銷售量的下降幅度略低於預期。

In international irrigation markets, revenues of $71 million increased 42% compared to the prior year. The increase resulted from revenues related to our large project in the MENA region, along with higher sales in other parts of this region compared to the prior year. This increase was partially offset by lower revenue in other international markets and by the unfavorable effects of foreign currency translation of approximately $4.7 million compared to the prior year. As Randy mentioned, the Brazil market showed signs of improvement during the quarter with unit sales volume being comparable to the prior year.

在國際灌溉市場，收入為 7,100 萬美元，比上年增長了 42%。成長主要源自於我們在中東和北非地區的大型專案相關收入，以及該地區其他地區的銷售額較上年同期成長。這一增長被其他國際市場收入的下降以及與上年相比約 470 萬美元的外幣折算不利影響部分抵消。正如蘭迪所提到的，巴西市場在本季顯示出改善的跡象，單位銷售量與去年同期相當。

Irrigation segment operating income for the quarter of $27.4 million increased 7% compared to the prior year, while operating margin was 18.5% of sales compared to 19.3% of sales in the prior year. Operating income increased due to higher revenues, while a larger percentage of project revenues resulted in some dilution to operating margin compared to the prior year.

本季灌溉部門營業收入為 2,740 萬美元，較上年增長 7%，營業利潤率為銷售額的 18.5%，而上年為 19.3%。由於收入增加，營業收入增加，但專案收入比例較大導致營業利潤率與上年相比稀釋。

Infrastructure segment revenues for the quarter of $38.9 million more than doubled compared to revenues of $18.5 million in the prior year. The increase resulted primarily from the completion of a large Road Zipper system project valued at over $20 million that was delivered during the quarter, while roads that released revenue and sales of road safety products were slightly lower compared to the prior year.

本季基礎設施部門的營收為 3,890 萬美元，較上年同期的 1,850 萬美元成長一倍多。成長主要源自於本季交付的價值超過 2,000 萬美元的大型 Road Zipper 系統專案的完工，而釋放收入的道路和道路安全產品的銷售額與前一年相比略有下降。

Infrastructure segment operating income for the quarter of $13.3 million more than tripled compared to $3.5 million in the prior year. Infrastructure operating margin for the quarter was 34.1% of sales compared to 19% of sales in the prior year. The increase in operating income and operating margin resulted primarily from higher revenues and a more favorable margin mix of revenues as Road Zipper system sales represented a higher percentage of revenues compared to the prior year.

本季基礎設施部門的營業收入為 1,330 萬美元，較上年同期的 350 萬美元成長了兩倍多。本季基礎設施營業利益率為銷售額的 34.1%，去年同期為 19%。營業收入和營業利潤率的增加主要源自於更高的收入和更有利的收入利潤組合，因為與前一年相比，Road Zipper 系統銷售額佔收入的比例更高。

Turning to the balance sheet and liquidity, our total available liquidity at the end of the second quarter was $236.7 million, which includes $186.7 million in cash equivalents and marketable securities, and $50 million available under our revolving credit facility. The strength of our balance sheet and ample access to liquid capital resources continue to serve as a strategic asset for Lindsay as we execute our capital allocation strategy to create enhanced and sustained value for our shareholders.

談到資產負債表和流動性，我們第二季末的總可用流動資金為 2.367 億美元，其中包括 1.867 億美元的現金等價物和有價證券，以及 5,000 萬美元的循環信貸額度。當我們執行資本配置策略，為股東創造更高、更持續的價值時，強勁的資產負債表和充足的流動資本資源將繼續成為 Lindsay 的策略資產。

This concludes my remarks. And at this time, I'll turn the call over to the operator to take your questions.

我的發言到此結束。現在，我將把電話轉給接線員來回答您的問題。

Thank you. We will now begin the question-and-answer session. (Operator Instructions)

謝謝。我們現在開始問答環節。（操作員指令）

Brian Drab, William Blair.

布萊恩·德拉布，威廉·布萊爾。

Good morning. Thanks for taking my questions. The first one that we wanted to ask was on the international side ahead of our expectation by quite a bit for the quarter in terms of revenue. Jjust wondering if you could dig in a little deeper of how revenue is being recognized. Was any of it maybe pulled forward or maybe a little heavier than expected in the second quarter? And what should we expect from that region over the next few quarters?

早安.感謝您回答我的問題。我們想問的第一個問題是，就收入而言，本季的國際業務比我們的預期高出不少。我只是想知道您是否可以更深入地了解如何確認收入。其中是否有任何部分可能提前了或比第二季度的預期要重一些？那麼，未來幾季我們對該地區的發展有何期待？

Sure, Brian. This is Brian Ketcham. I will say, in the quarter, we did ship a little bit more of the large project than what we had originally anticipated. I think we had indicated roughly $20 million a quarter. We were a little bit above that during the second quarter, but I don't think that affects our expectations for third and fourth which there'll be kind of back to that cadence that we originally planned on. As mentioned in our comments too, we did see revenue growth in other parts of the MENA region as well that were non-project related, compared to the prior year.

當然，布萊恩。我是 Brian Ketcham。我想說的是，在本季度，我們大型專案的出貨量確實比我們最初預期的要多一點。我認為我們預計每季約為 2000 萬美元。我們在第二季度的業績略高於這一水平，但我認為這不會影響我們對第三和第四季度的預期，我們的業績將回到我們最初計劃的節奏。正如我們在評論中提到的那樣，與前一年相比，我們確實看到中東和北非地區其他地區與專案無關的收入成長。

Brazil, we had mentioned unit volume was flat, the currency impact that we talked about was primarily related to Brazil and the difference in the real. And then other parts of the market, not huge differences, but Western Europe and Australi, both being down slightly compared to last year.

巴西，我們曾提到單位數量持平，我們談到的貨幣影響主要與巴西和雷亞爾的差異有關。然後，其他市場的差異並不大，但西歐和澳洲的差異都比去年略有下降。

Okay. All right. Thanks. And then, someone's going to ask you to dig into the tariff situation more on the levers you can pull, so I'll just be the one to do that. But can you just elaborate on, where your most significant exposures are? And really, what other actions are you going to have to take besides just, I guess, passing on, you said, price to the consumers. And really, I guess the main focus here is on the irrigation side, but I think, on the infrastructure side, spending situation has been under pressure in part because prices are higher and the projects are more expensive. Can you just talk about how it affects both businesses a little bit more and and what you can do to offset that?

好的。好的。謝謝。然後，有人會要求你進一步深入研究關稅情況，以了解你可以採取的措施，所以我將負責這項工作。但您能否詳細說明一下，您最重要的曝光在哪裡？實際上，除了將價格轉嫁給消費者之外，您還要採取什麼其他措施？實際上，我猜這裡主要關注的是灌溉方面，但我認為，在基礎設施方面，支出狀況一直面臨壓力，部分原因是價格上漲，專案成本更高。您能否談談它對兩家公司有何影響，以及您可以採取哪些措施來抵消這種影響？

You're right. The biggest impact is going to be on our Irrigation business. And we've been anticipating, at least the China, Mexico, Canada tariffs for some time now. But yesterday, with the additional tariffs, I think, pull in from our standpoint, Taiwan and Korea where we do source some products. But I think that on the cost side, the other thing, we source our steel all domestically, but we have seen steel prices going up, steel coil prices going up. A lot of that's been driven by I think companies building inventories in anticipation of tarrif impact. We don't necessarily consider that to be a long term increase.

你說得對。最大的影響將會是我們的灌溉業務。我們已經預期中國、墨西哥和加拿大至少會徵收關稅一段時間了。但昨天，隨著額外的關稅，從我們的角度來看，我認為，這會拉低台灣和韓國的價格，我們確實從這兩個國家採購了一些產品。但我認為在成本方面，另一件事是，我們的鋼材全部來自國內，但我們看到鋼材價格上漲，鋼捲價格上漲。我認為，這在很大程度上是由於企業為應對關稅影響而建立庫存所致。我們不一定認為這是一個長期的成長。

But I think, to your question, in terms of what we've been doing, some of it has been, some inventory build. We've had shifted some suppliers around a little bit already. But I would say, when you look at it in total, Randy mentioned a marginal increase in our cost of goods. If we were to quantify it today, ballpark, it'd probably be like mid single digit kind of an impact on our cost of goods.

但我認為，對於你的問題，就我們一直在做的事情而言，其中一些是建立庫存。我們已經對部分供應商進行了輕微的調整。但我想說，從總體來看，蘭迪提到我們的商品成本略有增加。如果我們今天要量化它，大概來說，它可能會對我們的商品成本產生中等個位數的影響。

Okay. And then just one more quick follow-up. When you talk about moving around some of the suppliers, what are we talking about there, like circuit boards, controls, or what kind of imports do you have the most exposure to, if you could just remind me.

好的。然後再快速跟進。當您談到更換一些供應商時，我們談論的是什麼，例如電路板、控制器，或者您最常接觸哪種進口產品，如果您可以提醒我的話。

I think electrical components would be one. And some of this had already been addressed as we're considering potential China-Taiwan conflict, things like that. Ve do have an operation in China and a fair amount of our internal components come from China. Some of the supply chain stuff has been in the works for a while.

我認為電氣元件就是其中之一。我們在考慮潛在的中台衝突等問題時，已經解決了其中一些問題。我們確實在中國有業務，而且相當一部分內部零件都來自中國。有些供應鏈事宜已經籌備了一段時間了。

Understood. Okay. Thank you very much.

明白了。好的。非常感謝。

Ryan Connors, Northcoast Research Partners.

康納斯（Ryan Connors），Northcoast Research Partners。

Thanks for taking my questions. First, on irrigation, I wanted to come at that from the angle of margin. It seems like the margins seem to hold up there better than we had expected with the big jump in international project. So a little bit of a decline year-over-year. But it seemed like a pretty solid margin there given the contribution from international which, typically you've said in the past carries a lower margin. So anything you can drill down on us there? How the margin managed to hold up so well with North America down like it was and in that big order contributing like that.

感謝您回答我的問題。首先，關於灌溉，我想從利潤的角度來談談。隨著國際項目的大幅成長，利潤率似乎比我們預期的要好。與去年同期相比，略有下降。但考慮到國際業務的貢獻，這裡的利潤率似乎相當可觀，而過去您通常會說國際業務的利潤率較低。您能向我們詳細透露些什麼嗎？在北美市場價格低迷，又有如此大訂單貢獻的情況下，利潤率如何能維持得如此之好？

I think starting with North America, I would say, margins comparable to last year. So from a pricing standpoint, we've maintained our pricing, we've seen some cost, a little bit of cost softness on steel earlier in the quarter. But I think on the international side, we've had pressure in Brazil over the last few quarters just with the demand coming down there, so there's been some margin pressure in Brazil. We saw that stabilize in the second quarter. And then, I think the volume leverage that we're getting from that project on the international side is definitely helping to offset, the gross margin dilution on the large project.

我想從北美開始，利潤率與去年相當。因此，從定價的角度來看，我們維持了我們的定價，我們看到了一些成本，本季早些時候鋼鐵成本有所下降。但我認為從國際方面來看，過去幾季我們在巴西面臨壓力，因為那裡的需求下降，所以巴西的利潤率面臨一些壓力。我們看到第二季情況趨於穩定。然後，我認為我們從國際項目中獲得的數量槓桿肯定有助於抵消大型項目的毛利率稀釋。

Got it. Very helpful. And then the other one was just on the tariff side, very much appreciate your comments about what you're doing and what you can control within the business, but I think what the other concern is what the tariffs will mean for the agricultural economy given the different tariffs on different exports from the U.S. corn belt and things like that. Obviously you don't have a crystal ball. But any thoughts on that issue like how this could impact the demand and potential recovery from the tougher market we've been in the U.S.

知道了。非常有幫助。然後另一個問題是關於關稅方面的，非常感謝您對您正在做的事情以及您可以在業務中控制的事情的評論，但我認為另一個值得關注的問題是，考慮到美國玉米帶不同出口產品的關稅不同等，關稅對農業經濟意味著什麼。顯然你沒有水晶球。但對於這一問題，您有何看法？例如，這將如何影響需求，以及美國市場從嚴峻情況下的潛在復甦？

Good morning, Ryan. This is Randy. I'll take that one. I think obviously when you look at $27 billion's worth of U.S. egg exports going out into the world, if any of that is in jeopardy, then you have a disruption on the demand side of the equation that I think is going to have to have and will have some impact on the pricing side of the equation. I know that the government's working aggressively to develop new markets in parts of the world where maybe we haven't exported grain. If you look at the (inaudible) forecast, it's roughly 16% of the corn this year demand is export demand. And if that goes away, I think there is going to have some impact.

早安，瑞安。這是蘭迪。我要那個。我認為，很明顯，當你看到價值 270 億美元的美國雞蛋出口到世界各地時，如果其中任何一個環節出現危險，那麼需求方就會受到干擾，我認為這必然會對定價方產生一定影響。我知道政府正在積極努力地開拓世界上可能還沒有出口過糧食的地區的新市場。如果你看一下（聽不清楚）預測，今年玉米需求中大約有 16% 是出口需求。如果這種情況消失，我認為會產生一些影響。

I would say if we look at a historical perspective when we've had issues like this in the past, whether it's trade, we've seen the government step up to support the American Farmers. and we've just had roughly $30 billion, rolled out here in the past several months. And then again when we've had historic trade disruption like this. A potential that we see today that the government has stepped in. So I'm not sure there's going to be a natural market demand driver that's going to open up a lot of new markets to offset what we might lose. And again this is we might lose. We don't know with certainty what the retaliatory tariffs are going to look like. I think we've got some measure of confidence that we're we're going to see some additional support if and when the American farmers need it. But certainly, the element of uncertainty, I don't think is going to help customer sentiment, and it's not going to make, customers more eager to go out and get loans or take on additional capital investments. So something we're watching closely and you're right to highlight that this is really twofold for us, what it does on the COGS side and what it might do for the end markets as well.

我想說，如果我們從歷史的角度來看，當我們過去遇到類似的問題時，無論是貿易問題，我們都看到政府加大對美國農民的支持。過去幾個月我們已經向這裡投入了大約 300 億美元。當我們再次遭遇這樣的歷史性貿易中斷。我們今天看到的是政府已經介入的潛力。因此，我不確定是否會出現一個自然的市場需求驅動力，從而開闢大量新市場來彌補我們可能損失的損失。這是我們可能會再次失敗的。我們並不確定報復性關稅會是什麼樣子。我認為我們有一定信心，如果美國農民需要的話，我們將得到一些額外的支持。但可以肯定的是，我認為不確定因素無助於改善客戶情緒，也不會讓客戶更渴望出去貸款或進行額外的資本投資。因此，我們正在密切關註一些事情，您強調得對，這對我們來說實際上具有雙重影響，它對 COGS 方面的影響以及它對終端市場的影響。

Got it. Thanks for your time this morning.

知道了。感謝您今天上午抽出時間。

(Operator Instructions)

（操作員指令）

Nathan Jones, Stifel.

內森瓊斯（Nathan Jones），斯蒂費爾（Stifel）。

Good morning. This is Adam Farley, on for Nathan. I wanted to follow up on that last question. If so, what is your expectation on pricing to the domestic irrigation market? Do you think farmers could bear another round of price increases in response to tariffs?

早安.我是亞當法利 (Adam Farley)，代替內森 (Nathan)。我想繼續回答最後一個問題。如果是，您對國內灌溉市場的定價有何預期？您認為農民可以承受因關稅而出現的另一輪價格上漲嗎？

Yeah, Adam. This is Brian. We have already taken some pricing actions based on the increase in steel costs that we have seen in the market. And as we demonstrated a couple of years ago when steel was going up pretty dramatically, I mean, we were able to pass that along. I think, as I mentioned too, right now, we're looking at the cost impact being mid-single-digit kind of increase. We're not in any different situation than our competitors, so we feel like we would have that ability to pass that along. I think the other thing to mention, the timing of all of this, we're coming to the end of our spring selling season here, so the demand is going to drop off seasonally also. But we've already taken some action and depending on where all of this settles off or settles out, it will depend on what other actions that we need to take.

是的，亞當。這是布萊恩。根據市場上看到的鋼鐵成本上漲，我們已經採取了一些定價措施。正如我們幾年前所證明的那樣，當時鋼鐵價格大幅上漲，我的意思是，我們能夠將這種上漲傳遞下去。我認為，正如我之前提到的，目前，我們正在考慮成本影響，這是一種中等個位數的成長。我們的情況與競爭對手並沒有什麼不同，所以我們覺得我們有能力傳遞這種力量。我認為另一件要提的事情是，所有這一切的時間點，我們即將結束春季銷售季節，因此需求也會季節性下降。但是我們已經採取了一些行動，而取決於這一切在哪裡解決或平息，這將取決於我們需要採取什麼其他行動。

Okay. Thanks for that. And then this is a hypothetical, but if the trade war continues to ramp up and if the U.S. is hit with retaliatory tariffs, could that potentially be a benefit for investment in Brazil if some of the production shifts around?

好的。謝謝。這是一個假設，但如果貿易戰繼續升級，並且美國受到報復性關稅的打擊，如果部分生產轉移，這是否可能對在巴西的投資有利？

We've certainly seen that in the past, Adam, and I don't know that the global demand for grain is going to change at all just because we have these trade wars. So I think that demand is going to shift around and the supply side then goes into different countries, whether it's Brazil or Argentina or other parts of the world. Demand is going to be pretty stable and demand is going to continue to grow.

亞當，我們過去確實看到過這種情況，我不知道全球對糧食的需求是否會因為這些貿易戰而改變。因此我認為需求將會轉變，供應方將進入不同的國家，無論是巴西、阿根廷或世界其他地區。需求將會相當穩定，並且需求將持續成長。

So with a global company like ours, we're able to react quickly in Brazil. We've got the capacity there. If we start to see an expansion of that market, we're going to be able to react to that very, very quickly. So again, when we look globally, I think we're positioned very well and uniquely to take advantage of any incremental increase in demand on the grain side in any of our facilities around the world.

因此，有了像我們這樣的全球性公司，我們能夠在巴西迅速做出反應。我們在那裡有能力。如果我們開始看到該市場的擴張，我們將能夠非常迅速地做出反應。因此，當我們放眼全球時，我認為我們處於非常有利和獨特的位置，可以利用全球任何設施對穀物需求的任何增量成長。

Thank you for taking my questions.

感謝您回答我的問題。

This concludes our question-and-answer session. I would like to turn the conference back over to Randy Wood for any closing remarks.

我們的問答環節到此結束。我想將會議交還給蘭迪伍德 (Randy Wood) 來做結束語。

Thank you all for joining us today. We're very pleased with our year-to-date results and our record second quarter performance. Our teams continue to execute well, and we're positioned to manage through the market headwinds in our North American irrigation market while leveraging opportunities in the expanding international irrigation regions. Our Road Zipper funnel will continue to drive long-term growth, and our global footprint and supply chain will allow us to effectively manage through tariff uncertainty.

感謝大家今天的參與。我們對今年迄今的業績和第二季創紀錄的業績感到非常滿意。我們的團隊繼續表現出色，我們有能力應對北美灌溉市場的市場逆風，同時利用不斷擴大的國際灌溉地區的機會。我們的Road Zipper通路將繼續推動長期成長，我們的全球足跡和供應鏈將使我們能夠有效地應對關稅不確定性。

This concludes our second quarter earnings call. We look forward to updating you on our continued progress following the close of our fiscal 2025 third quarter. Thanks for joining us.

我們的第二季財報電話會議到此結束。我們期待在 2025 財年第三季結束後向您通報我們的持續進展。感謝您的加入。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。