Luxfer Holdings PLC (LXFR) 2025 Q2 法說會逐字稿

Good morning. My name is Erica, and I will be your conference operator today. Welcome to the Luxe for second quarter 2025 earnings conference call. (Operator Instructions)

早安.我叫艾莉卡，今天我將擔任您的會議主持人。歡迎參加 Luxe 2025 年第二季財報電話會議。（操作員指示）

Now we'll turn the call over to Kevin Grant, Vice President of Investor Relations and Business Development at Luxor. Kevin, please go ahead.

現在我們將電話轉給 Luxor 投資者關係和業務發展副總裁 Kevin Grant。凱文，請繼續。

Thank you, Erica, and good morning everyone. Welcome to Luxford's second quarter of 2025 earnings conference call. This morning we'll be reviewing Luxford's financial results for the second quarter ended June 29, 2025.

謝謝你，艾麗卡，大家早安。歡迎參加 Luxford 2025 年第二季財報電話會議。今天上午，我們將回顧 Luxford 截至 2025 年 6 月 29 日的第二季財務表現。

I'm pleased to be joined today by Andy Butcher, our Chief Executive Officer, and Steve Webster, our Chief Financial Officer. Today's webcast is accompanied by a presentation that can be accessed at luxur.com. Please note any references in non-GAAP financials are reconciled in the appendix of the presentation.

我很高興今天能與我們的執行長安迪·布徹 (Andy Butcher) 和財務長史蒂夫·韋伯斯特 (Steve Webster) 一起出席。今天的網路直播附帶一份演示文稿，可在 luxur.com 上觀看。請注意，非公認會計準則 (GAAP) 財務報表中的任何引用均已在簡報的附錄中進行了核對。

Before we begin, a friendly reminder that any forward-looking statements made about the company's expected financial results are subject to future risks and uncertainties. We undertake no obligations to update any forward-looking statements, whether as a result of new information, future events, or otherwise. Please refer to the safe harbor statement on slide 2 of today's presentation for further details.

在我們開始之前，友情提醒您，任何有關公司預期財務表現的前瞻性陳述都可能受到未來風險和不確定性的影響。我們不承擔更新任何前瞻性陳述的義務，無論是由於新資訊、未來事件或其他原因。請參閱今天簡報投影片 2 上的安全港聲明以了解更多詳細資訊。

During today's call, we'll be providing the adjusted second quarter 2025 financial results excluding the recently sold graphic arts business and the 2024 legal recoveries.

在今天的電話會議中，我們將提供調整後的 2025 年第二季財務業績，不包括最近出售的圖形藝術業務和 2024 年的法律追償。

Now let me turn the call over to Luxford CEO. Please turn to slide 3. Andy, please go ahead.

現在，讓我將電話轉給 Luxford 執行長。請翻到幻燈片 3。安迪，請繼續。

Thank you, Kevin, and good morning everyone. Thank you for joining us. Q2 was a very strong quarter for Luxfer, underscoring the strength of our core businesses, the resilience of our operating model, and our ability to perform well in a dynamic environment.

謝謝你，凱文，大家早安。感謝您加入我們。第二季度對 Luxfer 來說是一個非常強勁的季度，突顯了我們核心業務的實力、我們營運模式的彈性以及我們在動態環境中表現良好的能力。

Adjusted earnings per share increased to $0.30, up 25% year over year and 30% sequentially, and adjusted EBITDA rose to $14 million. Sales growth was led by impressive ongoing momentum in our electron segment. Demand for MREs, flares, and UGRE platforms remained high, supported by defense restocking activity, sustained funding tailwinds, and a buoyant aerospace market.

調整後每股收益增至 0.30 美元，年增 25%，季增 30%，調整後 EBITDA 增至 1,400 萬美元。銷售額的成長得益於我們電子部門持續強勁的成長勢頭。在國防補給活動、持續的資金順風和蓬勃發展的航空航太市場的支撐下，對 MRE、火炬和 UGRE 平台的需求仍然很高。

We also saw sequential improvement in gas cylinders. While sales were modestly lower year over year, strong performance in space exploration, aerospace, and first response helped offset ongoing softness in clean energy, which, while an important part of our longer term strategy, remains a little subdued in the near term.

我們也看到氣瓶的連續改善。雖然銷售額較去年同期略有下降，但太空探索、航空航太和急救領域的強勁表現有助於抵消清潔能源領域的持續疲軟。清潔能源雖然是我們長期策略的重要組成部分，但在短期內仍略有疲軟。

These shifts in demand reflect well on the adaptability and diversity of our portfolio as the business continues to transition towards higher value sectors where we are well positioned to deliver stronger profitability. We completed the divestiture of our graphic arts business in early July, a key deliverable stemming from our strategic portfolio review.

隨著業務繼續向更高價值的領域轉型，這些需求的變化很好地反映了我們產品組合的適應性和多樣性，我們在這些領域有能力提供更強的獲利能力。我們在 7 月初完成了圖形藝術業務的剝離，這是我們策略性投資組合審查的一項重要成果。

This transaction allows us to sharpen our focus towards higher margin opportunities within our core markets. We also initiated an important relocation project in our composite cylinders business, announcing the move of production from our Pomona, California site to our more automated center of excellence in Riverside, California.

此次交易使我們能夠更加專注於核心市場中利潤更高的機會。我們還在複合材料氣瓶業務中啟動了一項重要的搬遷項目，宣布將生產從加州波莫納的工廠遷至加州河濱市自動化程度更高的卓越中心。

This is another key step in optimizing our footprints, generating savings of up to $4 million per annum through enhanced operational alignments. In summary, Q2 demonstrated strong execution, portfolio quality, and the earnings power of our core businesses.

這是優化我們足跡的另一個關鍵步驟，透過加強營運協調，每年可節省高達 400 萬美元。總而言之，第二季展現了強大的執行力、產品組合品質以及核心業務的獲利能力。

With that, I'll hand over to Steve, who will take you through the financials and our updated 2025 guidance. Steve.

接下來，我將把時間交給史蒂夫，他將向您介紹財務狀況和我們更新的 2025 年指導。史蒂夫。

Thanks, Andy, and good morning everyone. Let's turn to slide 4 for a review of our consolidated financial results. In the second-quarter sales were $97.1 million up 5.8% year over year, reflecting continued strength across our core defense and aerospace markets.

謝謝，安迪，大家早安。讓我們翻到投影片 4 來回顧我們的合併財務結果。第二季銷售額為 9,710 萬美元，年成長 5.8%，反映出我們核心國防和航空航太市場的持續強勁表現。

Adjusted EBITDA increased 14.8% to $14 million delivering a 14.4% margin, up from 12.5% in quarter one, resulting in nearly 200 basis points of sequential margin improvement. Adjusted EPS rose to $0.30, up 25% year over year.

調整後的 EBITDA 成長 14.8%，達到 1,400 萬美元，利潤率為 14.4%，高於第一季的 12.5%，導致利潤率連續提高近 200 個基點。調整後每股收益上漲至 0.30 美元，年增 25%。

We generated $1.2 million in cash from operations, and net debt ended at $48.2 million with leverage at 0.9 times. On the right, the sales bridge highlights a $2.2 million dollar contribution from pricing, including targeted price actions in aerospace.

我們從營運中產生了 120 萬美元的現金，淨債務最終為 4,820 萬美元，槓桿率為 0.9 倍。右側的銷售橋樑突顯了定價帶來的 220 萬美元貢獻，包括航空航太領域的有針對性的價格行動。

Foreign exchange was a $2 million tailwind, and volume and mix added $1.1 million driven by strong MRE and flare demand and continued elevated aerospace shipments. For our adjusted [EBITDA], the higher pricing was complemented by incremental volume and the higher value mixed contribution of $2 million.

外匯交易是 200 萬美元的順風，而受強勁的 MRE 和火炬需求以及持續增加的航空航天出貨量的推動，交易量和產品組合增加了 110 萬美元。對於我們調整後的 [EBITDA]，更高的定價與增量銷售和 200 萬美元的更高價值混合貢獻相輔相成。

These gains were partially offset by $2.4 million in headwinds, primarily FX from the continued strengthening of sterling, residual inflation, and elevated operating expenses. The majority of the higher OpEx reflects increased maintenance, utilities, and overhead costs within electron driven by improved throughput to support defense programs. For a full breakdown, please see the detailed waterfall in the appendix on slide 12.

這些收益被 240 萬美元的不利因素部分抵消，主要是英鎊持續走強、殘餘通膨和營運費用上升帶來的外匯影響。營運支出的增加大部分反映了電子領域維護、公用設施和管理費用的增加，這是由於吞吐量的提高推動了電子領域支援國防計畫的增加。如需完整細分，請參閱投影片 12 附錄中的詳細瀑布圖。

With that, let's move to slide 5 for a closer look at Electron's Q2 performance. Electron delivered another strong quarter, with sales increasing 19% year over year to $50.1 million. Adjusted EBITDA rose to $9.1 million with margins expanding to 18.2%, reflecting favorable mix and disciplined execution. Although partially tempered by the higher operating costs. Defense First Response in healthcare was a standout performer, up 43% from the prior year, and demand remains well above historical levels.

接下來，讓我們轉到投影片 5，仔細看看 Electron 的第二季表現。Electron 又一個季度表現強勁，銷售額年增 19%，達到 5,010 萬美元。調整後的 EBITDA 增至 910 萬美元，利潤率擴大至 18.2%，反映出良好的產品組合和嚴格的執行。儘管部分受到較高營運成本的影響。醫療保健領域的國防第一反應 (Defense First Response) 表現突出，比前一年增長了 43%，需求仍遠高於歷史水準。

In transportation, trends were mixed. We saw continued recovery in aerospace alloy volumes. Autocatalysis improved sequentially, but remains below pre-2023 levels, and overall auto activity slowed. Specialty industrial was also up modestly, supported by increased demand for magnesium specialty powders. Overall, Q2 performance in electron reflected strong demand in our core end markets, ongoing operational execution, and a healthy mix shift supporting top line growth and margin expansion.

在交通運輸方面，趨勢好壞參半。我們看到航空航天合金產量持續復甦。汽車催化作用較上月改善，但仍低於 2023 年之前的水平，整體汽車活動放緩。受鎂特種粉末需求增加的支撐，特種工業也小幅上漲。總體而言，第二季電子產品的業績反映了我們核心終端市場的強勁需求、持續的營運執行以及支持營收成長和利潤率擴張的健康組合轉變。

With that, let's turn to slide 6 for our gas cylinders results. In quarter two, gas cylinders delivered a solid sequential rebound with sales of $47 million up 14% in the first quarter. While sales declined 6% year over year, we're encouraged by improving momentum in key higher margin segments.

有了它，讓我們翻到幻燈片 6 查看我們的氣瓶結果。第二季度，氣瓶銷售連續強勁反彈，第一季銷售額達 4,700 萬美元，成長 14%。儘管銷售額年減了 6%，但關鍵高利潤領域的成長動能令我們感到鼓舞。

(inaudible) was $4.9 million up 23.9% from the first quarter, with margins improving to 10.4%, supported by further pricing execution of $2.5 million and discipline cost control. Specialty industrial improved 4%, driven by strength and calibration and electronics related gas cylinders.

（聽不清楚）為 490 萬美元，較第一季成長 23.9%，利潤率提高至 10.4%，這得益於 250 萬美元的進一步定價執行和嚴格的成本控制。受強度和校準以及電子相關氣瓶的推動，特種工業增長了 4%。

Transportation also increased 4%, led by solid demand in aerospace and especially space exploration, outpacing the ongoing pressures in the alternative fuel market. Defense first response and healthcare sales declined 15% year over year, primarily due to the conclusion of the prior year US Air Force SCBA program and short term softness in medical cylinder contracts. That said, baseline demand in both areas remains steady.

運輸業也成長了 4%，這主要得益於航空航太尤其是太空探索領域的強勁需求，超過了替代燃料市場的持續壓力。國防急救和醫療保健銷售額年減 15%，主要原因是去年美國空軍 SCBA 計畫的結束以及醫用氣瓶合約的短期疲軟。儘管如此，這兩個地區的基本需求仍保持穩定。

Overall, we view Q2 as a solid transition quarter for the segment. Improved mix and stronger contributions from aerospace, space exploration, and electronics related applications supported sequential gains and margin expansion.

總體而言，我們認為第二季度是該領域的穩健過渡季度。航空航太、太空探索和電子相關應用的產品組合改善和貢獻增強，支持了連續的成長和利潤率的擴展。

This performance reflects a deliberate shift towards higher quality, higher margin end markets. While clean energy volume will remains soft, the flexibility of the portfolio has allowed us to adapt and focus on more profitable growth areas.

這一業績反映了公司有意向更高品質、更高利潤的終端市場轉變。雖然清潔能源總量仍將保持疲軟，但投資組合的靈活性使我們能夠適應並專注於更有利可圖的成長領域。

Importantly, the recently announced relocation of composite cylinder production to our riverside facility is expected to drive meaningful long-term benefits, streamlining our cost structure, enhancing operational efficiency, and improving overall alignment across the business.

重要的是，最近宣布將複合氣瓶生產遷至我們的河畔工廠，預計將帶來有意義的長期效益，簡化我們的成本結構，提高營運效率，並改善整個業務的整體協調。

Let's now move to slide 7 for a review of our updated 2025 guidance. We've improved our four-year guidance based on solid performance in the first half and continued strength in our order book. We have narrowed upwards the adjusted EPS range to $0.97 to $1.05. We've adjusted EBITDA now between $49 million and $52 million.

現在讓我們轉到第 7 張投影片來回顧我們更新後的 2025 年指南。基於上半年的穩健表現和訂單的持續強勁，我們提高了四年預期。我們已將調整後每股盈餘區間上調至0.97美元至1.05美元。我們已將EBITDA調整至4,900萬美元至5,200萬美元之間。

Projected free cash flow of $20 million to $25 million remains unchanged, but now incorporates the proceeds of the graphic arts sale, which in turn helps fund the recently announced relocation project in our gas cylinder segment.

預計 2000 萬至 2500 萬美元的自由現金流保持不變，但現在包含了圖形藝術銷售的收益，這反過來又有助於資助我們氣瓶部門最近宣布的搬遷項目。

We do now forecast low single digit year over year sales growth versus 2024. Our confidence is supported by good momentum in defense and aerospace, including demand for MREs, UGREs, and flares, as well as a strong backlog. We are maintaining tight control over costs and driving efficiency through site optimization initiatives.

我們現在預測，與 2024 年相比，銷售額年增速將維持在低個位數。國防和航空航太領域的良好勢頭支撐了我們的信心，包括對 MRE、UGRE 和火炬的需求，以及強勁的積壓訂單。我們透過網站優化措施嚴格控製成本並提高效率。

The impact of tariffs on our business has been modest to date. We are though seeing early signs of pressure in automotive, affecting our electron business. This factor, when modeled with normal seasonality, is reflected in our latest guidance. We are pleased with our progress at the half-year mark and cautiously optimistic about the full year outlook.

到目前為止，關稅對我們業務的影響還不大。然而，我們已經看到汽車產業面臨壓力的早期跡象，這影響了我們的電子業務。當以正常的季節性為模型時，這一因素反映在我們的最新指導中。我們對半年來的進展感到滿意，並對全年前景持謹慎樂觀的態度。

Now I'd like to pass the call back to Andy.

現在我想把電話轉回給安迪。

Thank you, Steve. Please turn to slide 8 to review the highlights and achievements of the second quarter. We delivered strong earnings performance in Q2 with adjusted earnings per share up 25% year over year and sequential EBITDA margin improvements.

謝謝你，史蒂夫。請翻到第8張投影片回顧第二季的亮點和成就。我們在第二季實現了強勁的獲利表現，調整後每股盈餘較去年同期成長 25%，EBITDA 利潤率也較上季提高。

This was driven by high revenues, a favorable product mix, disciplined pricing actions, and effective cost control across the business. We completed the divestiture of graphic arts in early July, delivering on a key milestone from our strategic review. This move sharpens our focus on core high margin platforms and enhances our portfolio alignment going forward.

這是由高收入、良好的產品組合、嚴格的定價行為以及整個業務的有效成本控制所推動的。我們在 7 月初完成了圖形藝術業務的剝離，這是我們策略審查的一個重要里程碑。此舉使我們更加關注核心高利潤平台，並增強了我們未來的投資組合協調性。

In our core markets, Electron continued to perform well, led by MREs, UGREs, and aerospace alloys. We also saw a solid sequential uplift in gas cylinders with gains in specialty and space exploration offsetting clean energy headwinds.

在我們的核心市場中，Electron 繼續表現良好，由 MRE、UGRE 和航空合金引領。我們也看到氣瓶銷售量連續穩定成長，特種和太空探索的成長抵消了清潔能源的阻力。

We further advanced our operational footprint strategy with the launch of the Pomona relocation project, moving composite cylinder production to our riverside center of excellence. This initiative is expected to streamline our footprint, enhance automation, and unlock long-term cost savings.

我們啟動了波莫納搬遷項目，將複合氣瓶生產轉移到我們河畔的卓越中心，進一步推進了我們的營運足跡策略。這項措施可望簡化我們的足跡，提高自動化程度，並實現長期成本節約。

And finally, our ability to pivot toward higher value sectors such as aerospace, space exploration and defense has improved mix and earnings quality. This agility positions us well to capitalize on the opportunities ahead while enhancing profitability. So we are very proud of the progress the team delivered this quarter, and we remain focused on delivering long-term shareholder value.

最後，我們轉向航空航太、太空探索和國防等更高價值領域的能力改善了組合和獲利品質。這種敏捷性使我們能夠充分利用未來的機遇，同時提高獲利能力。因此，我們對團隊本季的進展感到非常自豪，我們將繼續專注於實現長期股東價值。

I now turn the call back to the operator for questions. Erica, please go ahead.

我現在將電話轉回給接線員詢問。艾麗卡，請繼續。

(Operator Instructions) Steve Ferazani.

（操作員指示）史蒂夫·費拉扎尼。

I guess the surprise for me on the quarter was the nice bounce back and gas cylinders. Can you give a little bit more color on what drove the drove the bounce back and is that a sustainable into the second half?

我想本季令我感到驚訝的是良好的反彈和氣瓶。您能否更詳細地解釋一下推動反彈的因素以及這種反彈能否持續到下半年？

Yes, thanks Steve. It was a really good quarter for us. We were very pleased with that and the momentum it takes us into the second half of the year.

是的，謝謝史蒂夫。對我們來說，這是一個非常好的季度。我們對此感到非常高興，並期待它能為我們進入下半年帶來良好的發展勢頭。

The key thing in gas cylinders was the sustained demand we saw for the first response product, which of course is the foundation for the business. Good sales in the specialty gas market for aluminum cylinders. And then especially the further uplift that we saw in space exploration. We're very positive about the developments in in the space exploration field. Sales in Q2 were up on what was already a notable Q1. Indeed Q2 revenues were at a record level.

氣瓶的關鍵在於我們看到第一反應產品的持續需求，這當然是業務的基礎。鋁製氣瓶在特種氣體市場銷售良好。尤其是我們看到太空探索的進一步提升。我們對太空探索領域的發展持非常樂觀的態度。第二季的銷售額較第一季的顯著成長有所上升。事實上，第二季的收入達到了創紀錄的水平。

This is this is a demanding application, Steve, with operating operating at high tolerances, good margins, so we're excited about the growth we are delivering in this segment. So yes, we believe we'll see that ongoing bounce back in the gas cylinder business carry forward into the second half of the year.

史蒂夫，這是一個要求很高的應用程序，其操作公差很高，利潤率很高，因此我們對這一領域所取得的成長感到非常興奮。所以是的，我們相信我們會看到氣瓶業務的持續反彈延續到今年下半年。

So any reason for why, I mean, I've got to ask, given the strength in the quarter, certainly was well above our EPS expectations. I don't know whether it beat your internal. Any reason you wouldn't move the high end of the guidance range now?

所以，我的意思是，我必須問一下，考慮到本季的強勁表現，其每股收益肯定遠高於我們的預期。我不知道它是否擊敗了你的內心。現在不改變指導範圍的高端有什麼理由嗎？

Yes, look, as I said, we're very pleased with Q2 performance after after a solid Q1 and the progress, not just in space exploration that I mentioned, but particularly defense and aerospace. So look, there's much to be optimistic about looking looking ahead, although there is still some uncertainty around tariffs, I think, and we have seen some softening in in auto. So as Steve mentioned, we've modeled that in our guidance as well as some of the normal seasonality that we that we see. So yes, we are running just a little ahead of our initial expectations.

是的，正如我所說，在第一季取得穩健進展之後，我們對第二季度的表現非常滿意，這不僅僅是在我提到的太空探索方面，特別是國防和航空航天方面。所以，展望未來，有很多事情值得樂觀，儘管我認為關稅方面仍然存在一些不確定性，而且我們已經看到汽車行業有所疲軟。正如史蒂夫所提到的，我們在指導中對此進行了建模，以及我們看到的一些正常季節性。是的，我們的業績略微超出了我們最初的預期。

We've acknowledged that with a modest uplift to the bottom end of the end of the range, and I think importantly our team are of course working really hard to deliver numbers that come into the upper end of the guidance range. We really like at the end of Q2.

我們已經承認，隨著範圍底端的適度提升，我認為重要的是，我們的團隊當然正在非常努力地提供進入指導範圍上限的數字。我們真的很喜歡第二季末。

Very fair. Can I ask about the, now with the consolidation into Riverside? We know that this is kind of an off year for the alternative fuels market, and people can look at Class A truck orders. It's very explainable. We think we're still bullish on where that market goes.

非常公平。可以問一下現在與 Riverside 合併的情況嗎？我們知道今年是替代燃料市場的淡季，人們可以看看 A 級卡車的訂單。這很容易解釋。我們認為我們仍然看好該市場的走向。

Now you incorporate in what could be strong growth in space exploration. Do you have the capacity at Riverside to meet what could be strong growth in both of those markets over the next decade?

現在，您要將其納入太空探索領域可能出現的強勁成長。未來十年，Riverside 是否有能力滿足這兩個市場的強勁成長？

Absolutely we do have the capacity in place not just in Riverside but also in our in our Canadian facility. Let me talk briefly about the Pomona Consolidation because it's very important in terms of value creation.

當然，我們不僅在河濱有這樣的產能，而且在我們的加拿大工廠也有這樣的產能。讓我簡單談談波莫納合併，因為它對於價值創造而言非常重要。

We have been pleased with the Pomona business over the last few years and the performance of the products there, but we've got this opportunity to further improve the cylinders business overall by eliminating that duplication we have from two facilities just 30 miles apart, and it's at a time the lease is soon to explore, so the timing's good. We can move into a more modern, more automated facility that we that we own. And deliver these benefits in variable and fixed costs approaching $4 million per annum.

過去幾年來，我們對波莫納的業務以及那裡產品的性能感到滿意，但我們有機會通過消除相距僅 30 英里的兩個工廠的重複業務來進一步改善整體氣瓶業務，而且現在正是租賃期即將開始探索的時候，所以時機很好。我們可以搬進我們擁有的更現代化、更自動化的設施。並以每年接近 400 萬美元的變動成本和固定成本來實現這些效益。

You also mentioned clean energy. Of course that is a little subdued at the moment, but we're actually quite bullish on the long term picture for clean energy.

您也提到了清潔能源。當然，目前這一趨勢略顯低迷，但我們實際上對清潔能源的長期前景相當樂觀。

We have continued to pick up a few nichey opportunities, particularly around hydrogen and CNG. In the indeed in the bulk gas space we've just converted the first tranche of a seven-module opportunity for our hydro hydrosphere trailer, so we're optimistic about that long term. So it's a good move this consolidation to improve our cost base, and we still have ample capacity in Canada and in Riverside to address what I believe will continue to be a strong market in space exploration. And growth to come in clean energy.

我們繼續尋找一些利基機會，特別是在氫氣和壓縮天然氣領域。事實上，在散裝天然氣領域，我們剛剛將七個模組機會的第一批轉換為我們的水力水圈拖車，因此我們對此的長期發展持樂觀態度。因此，這次合併對於改善我們的成本基礎來說是一個很好的舉措，而且我們在加拿大和河濱市仍然有足夠的產能來應對我認為將繼續強勁的太空探索市場。清潔能源也將迎來成長。

Excellent. That's helpful. You mentioned tariffs a little bit in the commentary. We're starting to get a little more clarity around what what it's looking like moving forward. Has that changed how you think it impacts your business and is that in guidance?

出色的。這很有幫助。您在評論中稍微提到了關稅。我們開始更清楚地了解未來的發展方向。這是否改變了您認為它對您業務的影響的方式？這是否具有指導意義？

Yeah, I mean, it's certainly I think we've said previously that we don't think it has a significant direct impact on us, and that certainly has not changed.

是的，我的意思是，我認為我們之前確實說過，我們認為它不會對我們產生重大的直接影響，這當然沒有改變。

I think we gave some metrics in our 10-K last year about around about $20 million of sales or so either way. Between the affected markets, but no, I think the main impact, as we've said before, would be on general macro factors. So particularly the automotive side that we mentioned previously, and we're modeling lower automotive sales, as I said in my prepared remarks, and some of that may well be down to the impact of tariffs, but by and large I think we've been generally unaffected, so we're not seeing any significant change other than potentially what might happen to the macro.

我認為我們在去年的 10-K 報告中給出了一些指標，無論如何銷售額大約為 2000 萬美元左右。在受影響的市場之間，但不，我認為主要影響，正如我們之前所說的，將是對一般宏觀因素的影響。特別是我們之前提到的汽車方面，正如我在準備好的發言中所說，我們預測汽車銷量會下降，部分原因可能是關稅的影響，但總的來說，我認為我們總體上沒有受到影響，所以除了宏觀經濟可能發生的變化之外，我們沒有看到任何重大變化。

Got it. That's helpful. Last one for me. Given that a major milestone in my opinion, closing out the sale of graphic arts, now as you start looking forward at the two sides of the business, it sounds like the main thrust of cash flow will be the debt reduction. Does that change longer term what you want these two businesses to look like and what cash usage might be '26, '27?

知道了。這很有幫助。對我來說是最後一個。鑑於我認為完成圖形藝術銷售是一個重要的里程碑，現在當你開始展望業務的兩個方面時，聽起來現金流的主要推動力將是債務減少。從長遠來看，這會改變您對這兩家企業的期望，以及 26、27 年的現金使用嗎？

Thanks Steve. Yes, so we're very pleased to have delivered on the on the on the graphic arts sale and the and that project was a key part of our strategic review. With that behind us, it does give us the opportunity to concentrate on.

謝謝史蒂夫。是的，我們很高興能夠完成圖形藝術銷售，而且該專案是我們策略評估的關鍵部分。有了這些，我們確實有機會集中精力。

More on the growth opportunities we see with gas cylinders and electron, we wouldn't see any significant change to the investment that's needed in those over that which we've seen previously. We have increased our capital investment this year to fund both growth and automation above the levels we've seen in some of the earlier years.

更多關於我們在氣瓶和電子領域看到的成長機會，我們不會看到這些領域所需的投資與我們之前看到的相比有任何重大變化。我們今年增加了資本投資，以支持成長和自動化，投資額超過了前幾年的水平。

So we also have the opportunity within capital deployment to continue to look at not just debt reduction but also share buyback where that makes sense. So pleased to have cleaned up the portfolio with the with the sale of graphic arts does enable us to concentrate on those growth opportunities in the electron and gas cylinders.

因此，我們也有機會在資本配置中繼續考慮不僅減少債務，而且在合理的情況下回購股票。很高興透過銷售圖形藝術來清理投資組合，這確實使我們能夠專注於電子和氣瓶領域的成長機會。

And there are no more questions in the queue at this time. I'll turn the call over to CEO, Andy Butcher, for final remarks.

目前隊列中沒有其他問題。我將把電話轉給執行長安迪·布徹 (Andy Butcher) 進行最後的發言。

Thank you, Erica. Please turn to slide 10. As we wrap up today's call, let me talk specifically about why we believe Luxor is a compelling long-term investment.

謝謝你，艾麗卡。請翻到第 10 張投影片。在我們結束今天的電話會議時，讓我具體談談為什麼我們認為盧克索是一項引人注目的長期投資。

We operate in growing mission critical markets, including defense, aerospace, medical, and first response, where we hold leadership positions and serve blue chip customers who rely on our technology and performance.

我們在不斷成長的關鍵任務市場開展業務，包括國防、航空航太、醫療和急救，在這些市場中，我們佔據領導地位，並為依賴我們的技術和性能的藍籌客戶提供服務。

Our portfolio is increasingly focused on highly specialized, high value products, including technologies that enable light weighting, high performance, and premium pricing across niche applications. We're demonstrating continued consolidation of our footprints with a new project to relocate our Pomona facility to Riverside, which will generate savings up to $4 million per annum.

我們的產品組合越來越注重高度專業化、高價值的產品，包括能夠在利基應用中實現輕量化、高效能和溢價的技術。我們正在透過一項新項目來持續整合我們的業務足跡，將我們的波莫納工廠遷至河濱市，這將每年節省高達 400 萬美元。

Operationally, the Lux of business system continues to drive cost discipline and lean execution, and we are reviewing further opportunities for automation or simplifying our processes to strengthen our cost position.

在營運方面，Lux 業務系統繼續推動成本紀律和精益執行，我們正在審查進一步實現自動化或簡化流程的機會，以加強我們的成本地位。

Financially, we remain disciplined and resilient. We've maintained leverage below one times and continue to generate solid free cash flow to fund growth, dividends and buybacks, and with a strong balance sheet and low leverage.

在財務方面，我們保持紀律和韌性。我們將槓桿率維持在 1 倍以下，並繼續產生穩健的自由現金流來資助成長、股息和回購，同時擁有強勁的資產負債表和低槓桿率。

Lastly, we retain our strategic optionality with multiple opportunities across both electron and gas cylinders. We are positioned to deliver profitable growth, as well as maintaining full flexibility to optimize our portfolio and unlock shareholder value.

最後，我們保留了在電子和氣瓶領域擁有多種機會的策略選擇性。我們致力於實現獲利性成長，同時保持充分的靈活性以優化我們的投資組合併釋放股東價值。

Overall, Luxor provides an asymmetric value creation opportunity with strong fundamentals and opportunity to create long-term shareholder returns. I'd like to close by thanking the entire Luxford team for their exceptional execution and commitments, and thank you for your continued support.

總體而言，Luxor 提供了一個不對稱的價值創造機會，具有強大的基本面和創造長期股東回報的機會。最後，我要感謝整個 Luxford 團隊的出色執行和承諾，並感謝你們一直以來的支持。

We look forward to updating you next quarter.

我們期待下個季度向您更新最新情況。

This concludes Luxor's Q2 2025 earnings call. A recording of this conference call will be available in about two hours. A link to a recording of this webcast will be available on the Luxor website at www.luxfor.com. We thank you for joining and please disconnect at any time.

盧克索 2025 年第二季財報電話會議到此結束。本次電話會議的錄音將在約兩小時後提供。本次網路直播的錄音連結將在盧克索飯店網站 www.luxfor.com 上提供。感謝您的收聽，如有需要，請隨時斷開連線。