Matthews International Corp (MATW) 2026 Q3 法說會逐字稿

Hello and welcome to today's Matthews International third quarter fiscal 2026 financial results.(Operator Instructions) Please note that this call is being recorded (Operator Instructions)

各位好，歡迎參加今天 Matthews International 2026 會計年度第三季財務業績說明會。（接線員指示）請注意，本次電話會議將被錄音（接線員指示）

It is now my pleasure to turn the meeting over to Daniel Stopar, Chief Financial Officer and Treasurer. Please go ahead, sir.

現在我很榮幸將會議交給財務長兼財務主管（Treasurer）Daniel Stopar。先生，請開始。

Good morning. I'm Dan Stopar, Chief Financial Officer of Matthews. And with me today is Joe Bartolacci, our company's President and Chief Executive Officer.

各位早安。我是 Dan Stopar，Matthews 的財務長。今天與我一同出席的還有本公司總裁兼執行長 Joe Bartolacci。

Before we start, I'd like to remind you that our earnings release was posted on the Investor section of the company's website, www.matw.com, last night. The presentation for our call can also be accessed in the Investor section of the website under Presentations.

在開始之前，我想提醒各位，我們的財報新聞稿昨晚已發布於公司網站 www.matw.com 的「投資人」專區。本次電話會議的簡報也可在網站「投資人」專區的「簡報（Presentations）」中取得。

Any forward-looking statements in connection with this discussion are being made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Factors that could cause the company's results to differ from those discussed today are set forth in the company's annual report on Form 10-K and other public filings with the SEC.

本次討論中任何前瞻性陳述，均依據 1995 年《私人證券訴訟改革法》（Private Securities Litigation Reform Act of 1995）的安全港條款作出。可能導致公司實際結果與今日討論內容不同的因素，已載明於公司 Form 10-K 年報及向美國證券交易委員會（SEC）提交的其他公開文件中。

In addition, we will be discussing non-GAAP financial metrics, and encourage you to read our disclosures and reconciliation tables carefully as you consider these metrics. In connection with any forward-looking statements and non-GAAP financial information, please read the disclaimer included in today's presentation materials located on our website.

此外，我們將討論非 GAAP 財務衡量指標，並建議各位在考量這些指標時，仔細閱讀我們的揭露內容與調節表。就任何前瞻性陳述與非 GAAP 財務資訊而言，請閱讀今日簡報資料中所含之免責聲明，該資料位於我們網站上。

Now, I will turn the call over to Joe.

現在，我把電話會議交給 Joe。

Thank you, Dan. Good morning and thank you for joining us to discuss Matthews' fiscal 2026 third quarter results.

謝謝你，Dan。各位早安，感謝各位加入我們，一同討論 Matthews 2026 會計年度第三季業績。

Before I begin, I want to acknowledge that this was a difficult quarter. I'm going to be direct with you about the choices that we made, what happened, what didn't, and why we remain confident that we have taken action to prevent this from happening again. Moreover, I want to emphasize some exciting developments in our business in which we see significant opportunity.

在我開始之前，我想先承認這是一個艱難的季度。我會直接向各位說明我們做了哪些選擇、發生了什麼、哪些沒有發生，以及為什麼我們仍有信心已採取行動，避免此情況再次發生。此外，我也想強調我們業務中一些令人振奮的進展，我們在其中看見顯著的機會。

Now then, on our last quarter call, we told you 4 things could impact our full-year results: the pace and timing of engineering orders, the outcome of tariff discussions at the federal level, the timing of synergies at Propelis, and the economic impact of geopolitical challenges. This quarter, all four of those identified risks affected us negatively to some extent. We would rather be direct about that than suggest that we're caught by surprise. We knew these were risks to our guidance, and we appropriately cautioned for those risks. Unfortunately, we did not expect that all of those risks would go against us.

那麼，在上一季的電話會議中，我們告訴各位有四件事可能影響我們的全年業績：工程訂單的速度與時點、聯邦層級關稅討論的結果、Propelis 協同效益實現的時點，以及地緣政治挑戰的經濟影響。本季，這四項已辨識的風險都在某種程度上對我們造成了負面影響。我們寧可坦率說明，而不是暗示我們措手不及。我們知道這些是對我們財測指引的風險，也已就這些風險做出適當提醒。不幸的是，我們沒有預期這些風險會同時都對我們不利。

Now, what this quarter did deliver: Propelis returned $25 million of our preferred equity as we have targeted, which we used to primarily bring down our debt balance. Memorialization continued its year-over-year improvement on a nine-month basis, and product identification sales grew 5% in the quarter compared to a year ago. Our corporate cost structure continued to come down, and we took decisive restructuring action in our European engineering operations. While painful in the near term, we expect this action, together with others, will prevent this from happening again.

本季帶來的成果包括：Propelis 依我們的目標返還了 2,500 萬美元的優先股權資金，我們主要用於降低債務餘額。Memorialization 業務在九個月累計基礎上持續呈現年對年改善，而產品識別（product identification）業務本季銷售額較去年同期成長 5%。我們的公司整體成本結構持續下降，且我們在歐洲工程營運採取了果斷的重整措施。雖然短期內相當痛苦，但我們預期此舉與其他措施相結合，將可避免此情況再次發生。

What this quarter did not deliver: the engineering order conversions at the timing we expected; a Memorialization death rate rebound that remained softer than we had modeled; materially higher input costs which we thought would dissipate; and Propelis synergy capture in line with our expectations. I will address these head on.

本季未能達成的部分包括：工程訂單未能在我們預期的時點轉換；Memorialization 的死亡率回升仍比我們模型假設更疲弱；投入成本顯著上升且未如我們預期消退；以及 Propelis 的協同效益實現未達我們的預期。我將正面回應這些問題。

The fiscal 2026 third quarter was a challenging quarter for us across most business segments, but in particular on our engineering business. We continue to experience delays in the energy storage solutions business, which are expected to extend through the balance of the fiscal year. Those delays are in line with the overcapacity for battery production across the industry. Importantly, however, we are commissioning our new mass production machine to be used to test chemistry formulas at mass production scale.

2026 會計年度第三季對我們多數業務部門而言都相當具挑戰性，尤其是工程業務。我們在儲能解決方案業務仍持續遭遇延遲，預期將延續至本會計年度剩餘期間。這些延遲與整體產業電池產能過剩的情況一致。然而重要的是，我們正在啟用新的量產設備，用於在量產規模下測試化學配方。

I'm happy to report that the line of OEMs and battery suppliers who have reserved time on the equipment, starting in October, continues to grow and represents the most significant interest that we have ever seen. Many of the leading players in the European, Japanese, Korean, and US auto industries and several key players in the battery industry are back again at our doors seeking testing time, quotes, and joint development discussions. In particular, we are seeing accelerated interest in the commercialization of our DBE solution by auto manufacturers, who have concluded they must own their own battery manufacturing capability in order to compete in the future. This is all good news as we continue to be the only provider to have developed a solution to meet this market need.

我很高興報告，自 10 月起已預約使用該設備時段的 OEM 與電池供應商隊列持續增加，代表我們所見過最顯著的興趣程度。歐洲、日本、韓國與美國汽車產業的多家領先業者，以及電池產業的數家關鍵業者，再次上門尋求測試時段、報價與共同開發討論。特別是，我們看到汽車製造商對我們 DBE 解決方案商業化的興趣加速，因為他們已認定為了在未來競爭，必須擁有自有的電池製造能力。這些都是好消息，因為我們仍是唯一開發出可滿足此市場需求解決方案的供應商。

Regarding the balance of our engineering business and our coating and converting business known as OLBRICH. We won one of the orders that we had anticipated this quarter. Moreover, despite that order being significant, the project will not be a major contributor to our financial results this year. The order was received in early June, and the customer immediately modified the scope of the work, thus limiting our ability to recognize any material revenues.

關於我們工程業務的其餘部分，以及我們的塗佈與分切（coating and converting）業務 OLBRICH。我們拿下了本季原先預期的一筆訂單。此外，儘管該訂單規模可觀，但該專案今年不會對我們的財務結果做出重大貢獻。該訂單於 6 月初取得，客戶隨即修改了工作範疇，因此限制了我們認列任何重大營收的能力。

Regarding other orders that we were anticipating, we were notified in early June that we lost two of those orders, and orders are now not expected to be received until September. In response to these challenges, we have taken difficult but necessary action to reduce the cost base of this business by $10 million annually. Unfortunately, being based in Germany, those actions are not as immediately impactful as they may be in the United States due to local regulations and unions which have negotiation rights.

至於我們原先預期的其他訂單，我們在 6 月初收到通知，其中兩筆訂單我們未能取得，而相關訂單目前預期要到 9 月才會收到。為因應這些挑戰，我們已採取艱難但必要的行動，將該業務的成本基礎每年降低 1,000 萬美元。不幸的是，由於該業務位於德國，受當地法規與具有協商權的工會影響，這些行動不像在美國那樣能立即產生效果。

Further, and most importantly, we are evaluating strategic alternatives for this business, a process which is expected to continue through the fourth quarter. During this time, we will be required to retain some of the talent, thus causing us to make the choice of being less than complete with our restructuring. These activities have delayed further action at this time, but should they fail, we will take the necessary actions to further restructure the business.

此外，也是最重要的，我們正在評估該業務的策略性替代方案，該流程預期將持續至第四季。在此期間，我們將需要保留部分人才，因此我們選擇讓重整措施不做到完全到位。這些活動使我們目前延後了進一步行動，但若這些方案未能奏效，我們將採取必要措施，進一步重整該業務。

Additional good news on the energy business front comes from our ultracapacitor capabilities. We are in the early stages of qualifying DBE electrode with potential partners to be sold into the industry as a finished product. We remain optimistic about the opportunity and are evaluating different business models. We're not going to put a timeline on a partnership announcement at this stage, and note that this remains early stage work, but suffice it to say that we have already produced the product and we know the economic benefits that we bring to an existing substantial industry.

在能源業務方面，另一項好消息來自我們的超級電容（ultracapacitor）能力。我們正處於與潛在合作夥伴進行 DBE 電極資格認證的早期階段，未來將作為成品銷售至產業中。我們對此機會仍保持樂觀，並正在評估不同的商業模式。現階段我們不會對合作夥伴公告設定時間表，並請注意這仍屬早期工作；但可以說的是，我們已經生產出該產品，也了解我們能為既有且規模可觀的產業帶來的經濟效益。

With regard to our energy business, our objective is to control our cost structure while not degrading the capabilities of our team. We know that we have a highly valuable know-how and are finding our time as the market comes to us. As I mentioned earlier, we initiated a restructuring program in our European operations, but we have remained cautious not to cut to the core. We expect this business to show signs of improvement in 2027.

就我們的能源業務而言，我們的目標是在不削弱團隊能力的前提下，控制成本結構。我們知道我們擁有極具價值的專業技術（know-how），並在市場主動找上門之際把握時機。如我先前提到，我們已在歐洲營運啟動重整計畫，但我們仍謹慎避免削減到核心能力。我們預期該業務將在 2027 年展現改善跡象。

On the Tesla matter, the arbitration's liability phase is complete, and the outcome affirmed the limited scope of Tesla's misappropriation and breach claims. The remaining phases of that case, Tesla's damage claim, which we do not believe are material, and our counterclaims are moving through the process.

關於 Tesla 事項，仲裁的責任階段已完成，結果確認 Tesla 所主張的侵占與違約請求範圍有限。該案件的其餘階段，包括 Tesla 的損害賠償請求（我們認為並不重大）以及我們的反請求，正持續依程序推進。

The long-term thesis on DBE technology is intact and is actually strengthening. If you follow the industry at all, LG has publicly stated its intent to pursue strategic DBE applications across new and existing facilities. They have specifically identified roll-to-roll processing as the most viable technology, and as I have stated, we remain the most advanced provider in that space. Samsung and others continue to affirm DBE is a critical enabling technology for our next-generation battery chemistries, and we are working with several solid state battery providers on joint marketing solutions to deliver the end product.

我們對 DBE 技術的長期投資論點依然完好，且實際上正在增強。如果你有關注這個產業，LG 已公開表明其意圖在新建與既有設施中推動策略性的 DBE 應用。他們特別指出捲對捲（roll-to-roll）製程是最可行的技術；如我先前所述，我們仍是該領域最先進的供應商。三星及其他公司持續確認 DBE 是我們下一代電池化學體系的關鍵賦能技術，我們也正與多家固態電池供應商合作，推出聯合行銷解決方案以交付最終產品。

Regarding our Memorialization business, we continue to experience headwinds in terms of lower volumes as a result of a record low death rate combined with significantly higher input costs which have escalated beyond our inflationary price increases. We have watched as copper prices have gone from $4.50 per pound to $6.60 per pound and continue to rise. Steel prices have risen 21% on a year-over-year basis, while fuel costs have outstripped our expectations that we had when we provided guidance last quarter. Although we have raised prices and intend to continue to do so in order to meet our rising costs, the speed and magnitude of cost increases have materially outpaced our price increases, particularly where we have fixed contracts which do not allow more frequent price adjustments.

關於我們的紀念化（Memorialization）業務，由於死亡率創歷史新低導致量能下降，加上投入成本顯著上升且漲幅已超過我們依通膨所做的調價，我們仍持續面臨逆風。我們看到銅價已從每磅 4.50 美元上升至每磅 6.60 美元，且仍在上漲。鋼價年增 21%，而燃料成本也超出我們在上季提供財測指引時的預期。儘管我們已調漲價格並打算持續調漲以因應成本上升，但成本上漲的速度與幅度已實質超過我們的調價幅度，尤其是在我們有固定合約、無法更頻繁調整價格的情況下。

The Memorialization segment reported sales of $208 million for the third quarter, up from $204 million a year ago, a 2.1% increase on a reported basis. Adjusted EBITDA was $42.2 million, roughly in line with the prior year's $42.8 million. For the first nine months of fiscal 2026, Memorialization has delivered $130 million in adjusted EBITDA compared to $124.5 million in the prior year, a 4.4% improvement that demonstrates the fundamental health and stability of this segment. Our Memorialization revenue step down from Q2's $215.3 million to Q3's $208 million reflects a consistent seasonal pattern in this business.

紀念化事業部第三季銷售額為 2.08 億美元，高於去年同期的 2.04 億美元，按報告基礎年增 2.1%。調整後 EBITDA 為 4,220 萬美元，與去年同期的 4,280 萬美元大致持平。2026 會計年度前九個月，紀念化業務的調整後 EBITDA 為 1.30 億美元，較去年同期的 1.245 億美元成長 4.4%，顯示該事業部的基本面健康且穩定。我們紀念化營收自第二季的 2.153 億美元下滑至第三季的 2.08 億美元，反映此業務一貫的季節性模式。

Casket volume is an at-need product that peaks alongside flu season in our second quarter and steps down in the third. Bronze and granite memorial products work on a lag, particularly in the Northeast where installations wait for ground to thaw, which is why our third and fourth quarters are typically the strongest for our memorial products and our first quarter is seasonally weak across the industry. Layered on top of that, ordinary seasonal pattern this year, casket and cemetery memorial volumes continue to be a headwind due to lower estimated US casketed deaths, a trend felt across the industry.

棺木銷量屬於即時需求（at-need）產品，通常在第二季與流感季同步達到高峰，並在第三季回落。青銅與花崗岩紀念產品的需求具有滯後性，尤其在美國東北部，安裝往往要等地面解凍，因此我們第三與第四季通常是紀念產品最強的季度，而第一季在全產業範圍內季節性偏弱。在今年既有的季節性模式之上，棺木與墓園紀念品的量能仍因美國估計的棺葬死亡數下降而承壓，這是全產業共同感受到的趨勢。

To give you a sense of the industry backdrop, published US mortality data show the overall death rate fell to its lowest recorded level last year, down approximately 4.6%, the largest annual decline on record as a share of the population. We build our forecast on the assumption that volume would improve in the second half, consistent with historical patterns. What we have seen instead is an unusual industry-wide further decline, reflecting a new historic low for death rates on a per capita basis. This is not a Matthews specific issue. July volume has been better, but we do not yet have visibility into August and September, and have adjusted our forecast to account for this reality.

為了讓各位了解產業背景，已公布的美國死亡率資料顯示，去年整體死亡率降至有紀錄以來最低水準，約下降 4.6%，以人口占比計為史上最大年度降幅。我們的預測建立在下半年量能將改善的假設上，與歷史模式一致。然而我們看到的是全產業出現不尋常的進一步下滑，反映人均死亡率再創新的歷史低點。這不是 Matthews 特有的問題。7 月的量能較好，但我們尚未能掌握 8 月與 9 月的能見度，並已調整我們的預測以反映此一現實。

Adjusted EBITDA stepped down more sharply from $48.8 million in the second quarter to $42.2 million in the third quarter. That additional margin compression is a separate dynamic from the revenue seasonality described above. It reflects escalating input costs, particularly copper, labor, steel, and oil, which inflationary price realization only partially offset during the quarter.

調整後 EBITDA 從第二季的 4,880 萬美元更明顯地下滑至第三季的 4,220 萬美元。這種額外的毛利率/利潤率壓縮，與前述營收季節性是不同的動態。其反映投入成本持續攀升，尤其是銅、勞動力、鋼材與石油，而通膨式的價格實現（price realization）在本季僅能部分抵銷。

With respect to pricing, we are evaluating the impact of taking certain actions later in the calendar year consistent with our historical practice. We plan to be deliberate in managing this given the impact of ongoing tariffs and ever-escalating input costs, but these factors continue to be volatile.

在定價方面，我們正評估於本曆年稍晚採取某些行動的影響，這與我們過往的慣例一致。鑑於持續的關稅影響與不斷攀升的投入成本，我們計畫審慎管理；但這些因素仍持續波動。

The Dodge acquisition continues to contribute meaningfully. This acquisition continues to be nicely accretive to earnings as we leverage the benefits of our Memorialization commercial platform, and we have already realized the majority of its targeted cost synergies. We believe there are more M&A opportunities in the Memorialization space that look like Dodge, highly accretive, highly strategic, defensible market positions. Our relationships in this industry are deep and longstanding, and we are positioned to move when the time is right.

Dodge 的併購案持續帶來顯著貢獻。隨著我們運用紀念化商業平台的優勢，該併購對獲利仍具良好的增益效果（accretive），且我們已實現其目標成本綜效中的大部分。我們相信在紀念化領域仍有更多類似 Dodge 的併購機會：高度增益、高度策略性，且具防禦性的市場地位。我們在此產業的關係深厚且長久，並已準備好在時機成熟時採取行動。

With respect to the fourth quarter, Memorialization typically benefits from seasonally stronger cemetery and bronze product demand, which expect to mitigate input cost headwinds. We continue to target approximately $175 million of full-year adjusted EBITDA for Memorialization, which would be a record year.

就第四季而言，紀念化業務通常受惠於季節性較強的墓園與青銅產品需求，預期可緩解投入成本逆風。我們仍以紀念化全年調整後 EBITDA 約 1.75 億美元為目標，這將是創紀錄的一年。

At Propelis, while the total anticipated synergy benefits remain clear and are now beginning to scale, our expectations of the timing to realize those synergies has not yet been achieved. The delay beyond our expectation has resulted in an estimated $5 million shortfall to our full-year forecast. The synergy delay was caused by the SAP implementation project continued to go smoothly, but it's taken more time than expected. The delay in synergy capture does not impact our expectations of total synergies to be realized by Propelis, and we still expect to exit calendar year 2026 at an annualized EBITDA run rate of about $130 million.

在 Propelis 方面，雖然預期的綜效效益總額仍然明確，且目前正開始放大，但我們對實現這些綜效的時間點之預期尚未達成。此一超出我們預期的延遲，導致我們對全年預測估計短少約 500 萬美元。綜效延遲的原因在於 SAP 導入專案雖持續進展順利，但所需時間比預期更長。綜效取得的延遲不影響我們對 Propelis 最終可實現綜效總額的預期，我們仍預期在 2026 曆年結束時，年化 EBITDA 的運行率（run rate）約為 1.30 億美元。

Moreover, we continue to expect that the ultimate sale of Propelis will generate significant cash, which will materially reduce our outstanding debt. With respect to exit timing, we continue to expect the marketing process for this investment to commence within the next 12 months, triggered by Propelis reaching the $130 million EBITDA run rate discussed above.

此外，我們仍預期 Propelis 的最終出售將帶來可觀現金，並將實質降低我們的未償債務。就退出時點而言，我們仍預期在未來 12 個月內啟動該投資的行銷流程，其觸發條件為 Propelis 達到上述 1.30 億美元 EBITDA 運行率。

Now starting with our new printhead product, Axian. We are placing production units with paying customers, and the commercial response remains strong. Our customers continue also to demonstrate significant interest in our MPERIA Axian Inkjet systems, a proprietary controller system that we have developed, which is crucial to the integration of Axian into the workflow of our customers.

接著談我們新的噴頭產品 Axian。我們正將量產機台交付給付費客戶，商業端回應仍然強勁。客戶也持續對我們的 MPERIA Axian 噴墨系統展現高度興趣；這是我們自行開發的專有控制器系統，對於將 Axian 整合進客戶的工作流程至關重要。

The value propositions we committed to, superior print quality, substantially lower solvent consumption and lower total cost of maintenance are proving out in real production environments, while MPERIA has risen as a key differentiator which will allow us to open more customers, thanks to its ease of use. Customers who beta tested Axian are converting, and that pipeline is growing with increased interest from new accounts, including significant CPG players. Axian's high-quality print relative to its price, coupled with ease of use, is expanding our addressable market, while effectively positioning the product as a credible displacement solution against legacy technology.

我們所承諾的價值主張——更優異的列印品質、大幅降低溶劑消耗，以及更低的維護總成本——已在實際量產環境中獲得驗證；同時，MPERIA 因其易用性而成為關鍵差異化因素，將協助我們開拓更多客戶。參與 Axian Beta 測試的客戶正在轉為正式採用，且隨著新客戶（包括重要的 CPG 消費性包裝商品業者）興趣提升，該管線正在成長。Axian 以其相對於價格的高品質列印表現，加上易用性，正在擴大我們的可服務市場（addressable market），並有效將產品定位為可取代傳統技術的可信替代方案。

As we have said, this is a disruptive technology. I am pleased to say that our product identification business continues to receive significant interest in the MPERIA Axian Inkjet systems, and announced today a strategic partnership with Linx Printing Technologies designed to broaden the customer access to each company's product portfolio in key markets, opening the opportunity for our products to reach consumer packaged goods customers in the UK and France.

如同我們所說，這是一項顛覆性技術。我很高興地表示，我們的產品識別業務持續在 MPERIA Axian 噴墨系統上獲得顯著關注，並於今日宣布與 Linx Printing Technologies 建立策略合作夥伴關係，旨在於關鍵市場擴大雙方產品組合的客戶觸及，並開啟機會讓我們的產品觸及英國與法國的消費性包裝商品客戶。

Due to this combination of factors mentioned above, we are reducing our previous earnings guidance for adjusted EBITDA to be in the range of $158 million to $162 million, which includes our estimated 40% share of Propelis adjusted EBITDA for fiscal 2026. Despite the near-term challenges for the remainder of this fiscal year, we remain focused on driving shareholder value, including properly aligning our cost structure with the future state of our business operations.

基於上述因素的綜合影響，我們將先前對調整後 EBITDA 的獲利指引下修至 1.58 億至 1.62 億美元區間，其中包含我們對 Propelis 在 2026 會計年度調整後 EBITDA 估計 40% 的持股份額。儘管本會計年度剩餘期間仍面臨短期挑戰，我們仍專注於推動股東價值，包括適當地使我們的成本結構與未來的業務營運狀態相匹配。

As we prepare for the end of our transition services agreement with Propelis next year, we are implementing actions that will reduce our corporate costs by $5 million next year. This reduction is over and above the amount needed to cover the services generally being provided to divested businesses. These actions, together with the restructuring noted above and other opportunities that I have noted, give us confidence that what we saw happen this quarter will not repeat again.

隨著我們為明年與 Propelis 的過渡服務協議到期做準備，我們正在推動相關措施，預計明年可將公司層級成本降低 500 萬美元。此項降幅高於一般為支應已剝離業務所提供服務所需的金額。這些措施，加上前述的重組以及我提到的其他機會，讓我們有信心本季所發生的情況不會再次重演。

Finally, on the strategic review, the Board remains actively engaged. Over the last two years, the Board, with the support of our bankers, identified several alternatives for evaluation and consideration toward improving shareholder value and better alignment with underlying value of the organization.

最後，關於策略檢討，董事會仍持續積極參與。過去兩年，董事會在我們投資銀行的支持下，辨識了數個可供評估與考量的替代方案，以提升股東價值，並使其與公司內在價值更為一致。

As I have stated before and called out today, we are focused on finding partners to help develop the high value of our strategic businesses. The partnership described above for our product identification business is one example of such a partnership. As well, the discussion we're having with auto OEMs regarding joint development agreements are other forms of partnerships that we are discussing, and there are more. Some of these actions take time, but we believe in the value of our technology and we intend to demonstrate that value.

如我先前所述並在今天特別強調，我們專注於尋找合作夥伴，以協助開發我們策略性業務的高價值。上述針對我們產品識別業務所描述的合作關係，就是此類合作的一個例子。此外，我們與汽車 OEM 就共同開發協議所進行的討論，也是我們正在洽談的其他合作形式，而且還有更多。其中一些行動需要時間，但我們相信我們技術的價值，並打算證明這項價值。

Finally, as you all know, I've informed the Board of Directors of my intention to retire in the near future. The actual timing of my retirement is tied to the hiring of a replacement, the process for which the Board has commenced. We hope to have more information on this soon. But with regards to me, I want to thank you all for the support over the years. It has truly been an honor for me to have worked with a wonderful team here at Matthews and to have come to know many of you investors well over the years. Thanks again and God bless.

最後，如各位所知，我已告知董事會我打算在不久的將來退休。我實際退休的時間將取決於接任者的聘任，而董事會已啟動相關程序。我們希望很快能提供更多資訊。至於我本人，我要感謝各位多年來的支持。能與 Matthews 這裡優秀的團隊共事，並在多年來與許多投資人建立深厚的認識，對我而言確實是一種榮幸。再次感謝，願上帝保佑。

Now I'll turn it over to Dan for a deeper dive on our financial performance.

現在我把時間交給 Dan，請他更深入說明我們的財務表現。

Thank you, Joe. Now let's begin the financial review with slide 7. For the third fiscal quarter of 2026, the company reported a net loss of $23.7 million or $0.75 per share compared to the net income of $15.4 million or $0.49 per share a year ago. The change primarily reflected the net impact of a gain recorded on the divestiture of SGK last year, lower operating performance in the Industrial Technologies segment, negative results contributed by our equity investment in Propelis, higher strategic initiative costs and lower income tax benefits, all partially offset by reduced net interest and other deductions and lower stock-based compensation expense.

謝謝你，Joe。現在讓我們從第 7 頁投影片開始進行財務回顧。2026 會計年度第三季，公司淨損 2,370 萬美元，或每股淨損 0.75 美元；相較之下，去年同期淨利為 1,540 萬美元，或每股淨利 0.49 美元。此變動主要反映：去年處分 SGK 所認列利益的淨影響、本公司工業技術事業部門營運表現較弱、我們對 Propelis 的權益投資所帶來的負面結果、策略性計畫成本增加以及所得稅利益降低；上述影響部分被淨利息及其他扣除項目減少與股票基礎給付費用降低所抵銷。

Consolidated sales for the third fiscal quarter of 2026 were $246 million compared to $349 million a year ago. The decrease primarily reflected the divestitures of the SGK business in May 2025, the European packaging and tooling businesses, and the warehouse automation business in December 2025. The consolidated sales impact of these divestitures was approximately $85 million for the current quarter and was partially offset by an incremental contribution of $4.4 million from the acquisition of The Dodge Company. Sales for the Industrial Technologies segment were lower for the quarter, offset partially by higher sales for the Memorialization segment.

2026 會計年度第三季合併銷售額為 2.46 億美元，去年同期為 3.49 億美元。下降主要反映：2025 年 5 月剝離 SGK 業務、剝離歐洲包裝與模具業務，以及於 2025 年 12 月剝離倉儲自動化業務。這些剝離對本季合併銷售額的影響約為 8,500 萬美元，部分被收購 The Dodge Company 帶來的 440 萬美元增量貢獻所抵銷。本季工業技術事業部門銷售額較低，但部分被紀念化事業部門較高的銷售額所抵銷。

Consolidated adjusted EBITDA for the third quarter of fiscal 2026 was $35 million compared to $44.6 million a year ago. The decline reflected lower operating performance by the engineering business within our Industrial Technologies segment. Our 40% share of Propelis' adjusted EBITDA included in our results for the quarter was higher than the amount of adjusted EBITDA that we reported for the Brand Solutions segment last year. The Memorialization segment reported slightly lower adjusted EBITDA for the quarter, while corporate and other non-operating costs were lower in the current year.

2026 會計年度第三季合併調整後 EBITDA 為 3,500 萬美元，去年同期為 4,460 萬美元。下降反映工業技術事業部門內工程業務的營運表現較弱。本季納入我們業績的 Propelis 調整後 EBITDA（按 40% 持股比例認列）高於我們去年 Brand Solutions 事業部門所報告的調整後 EBITDA 金額。紀念化事業部門本季調整後 EBITDA 略低，而公司層級及其他非營運成本在本年度較低。

On a non-GAAP adjusted basis, net income for the current quarter was $1.9 million or $0.06 per share compared to $9.2 million or $0.28 per share last year. The decrease primarily reflected the impact of lower operating profits and income tax benefits, partially offset by lower interest expense, reduced stock-based compensation and higher other non-operating income. Please see the reconciliations of adjusted EBITDA and non-GAAP adjusted earnings per share provided in our earnings release.

以非 GAAP 調整後基礎計算，本季淨利為 190 萬美元，或每股 0.06 美元；去年同期為 920 萬美元，或每股 0.28 美元。下降主要反映營運利潤與所得稅利益降低的影響，部分被利息費用降低、股票基礎給付減少以及其他非營運收益增加所抵銷。請參閱我們財報新聞稿中所提供的調整後 EBITDA 與非 GAAP 調整後每股盈餘之調節表。

Please move to Slide 8 to review our segment results. Sales for the Memorialization segment for the third quarter of fiscal 2026 were $208.1 million compared to $203.7 million for the same quarter a year ago. The Dodge acquisition contributed incremental sales of approximately $4.4 million to the current quarter. Sales volumes for caskets and cemetery memorials declined in the quarter due to lower estimated US casketed death rates. Sales of cremation equipment and mausoleums were also lower in the quarter. These volume declines were partially offset by the impact of inflationary price increases.

請翻到第 8 頁投影片以檢視各事業部門的結果。2026 會計年度第三季紀念化事業部門銷售額為 2.081 億美元，去年同期為 2.037 億美元。Dodge 收購案為本季帶來約 440 萬美元的增量銷售額。由於美國採棺木安葬的死亡率估計較低，本季棺木與墓園紀念品的銷售量下滑。火化設備與陵墓（mausoleums）的銷售在本季也較低。上述銷量下滑部分被通膨帶動的價格調升影響所抵銷。

Memorialization segment adjusted EBITDA for the current quarter was $42.2 million compared to $42.8 million for the same quarter last year. The decrease was due to the impact of lower sales volume combined with higher labor, material, and other input costs that were partially offset by benefits from inflationary price realization, cost savings initiatives, and incremental contributions from The Dodge acquisition.

本季紀念化事業部門調整後 EBITDA 為 4,220 萬美元，去年同期為 4,280 萬美元。下降係因銷售量降低的影響，並叠加人力、材料及其他投入成本上升；上述影響部分被通膨價格落實帶來的效益、成本節約措施，以及 The Dodge 收購案的增量貢獻所抵銷。

Please move to Slide 9. Sales for the Industrial Technologies segment for the third quarter of fiscal 2026 were $38 million compared to $87.9 million a year ago. The decrease primarily reflected the divestiture of the segment's tooling and warehouse automation businesses in December of 2025. The segment's engineering business reported a decline in sales compared to last year, which was offset partially by higher sales for the product identification business.

請翻到第 9 頁投影片。2026 會計年度第三季工業技術事業部門銷售額為 3,800 萬美元，去年同期為 8,790 萬美元。下降主要反映於 2025 年 12 月剝離該部門的模具與倉儲自動化業務。該部門的工程業務銷售額較去年下降，部分被產品識別業務較高的銷售額所抵銷。

Adjusted EBITDA for the Industrial Technologies segment for the current quarter was a loss of $5.4 million compared to a profit of $9 million for the same quarter a year ago. The decrease primarily resulted from the impact of the warehouse automation divestiture and lower engineering sales, partially offset by cost reduction action in the segment's engineering business.

本季工業技術事業部門調整後 EBITDA 為虧損 540 萬美元，去年同期為獲利 900 萬美元。下降主要源自剝離倉儲自動化業務的影響以及工程業務銷售額降低，部分被該部門工程業務的成本削減措施所抵銷。

Please move to Slide 10. With the divestiture of the European packaging operations in December and combined with the divestiture of the SGK business in May of 2025, the Brand Solutions segment did not have reportable income for the third fiscal quarter of 2026. A year ago, those divested entities reported combined sales of $57.7 million.

請翻到第 10 頁投影片。由於於 12 月剝離歐洲包裝營運，並結合於 2025 年 5 月剝離 SGK 業務，Brand Solutions 事業部門在 2026 會計年度第三季沒有可報告的收入。去年同期，這些已剝離的實體合計銷售額為 5,770 萬美元。

Adjusted EBITDA for the Brand Solutions segment was $9.7 million for the current quarter compared to $5 million a year ago. The current quarter reflects mainly the company's 40% interest in Propelis. As a reminder, our 40% portion of the financial results of Propelis is recorded on a one-quarter lag. As a result, the consolidated financial information for the quarter ended June 30, 2026, includes our 40% interest in the financial results of Propelis for the months of January through March of 2026. Based on the preliminary estimates of adjusted EBITDA provided by Propelis for the months of April through June, our 40% portion of their adjusted EBITDA would be $12.7 million. The prior year adjusted EBITDA for the Brand Solutions segment represents the results of SGK for the month of April 2025.

Brand Solutions 事業部門本季調整後 EBITDA 為 970 萬美元，去年同期為 500 萬美元。本季主要反映公司對 Propelis 的 40% 權益。提醒各位，我們按 40% 持股比例認列 Propelis 的財務結果，採一季落後入帳。因此，截至 2026 年 6 月 30 日止季度的合併財務資訊，包含我們對 Propelis 於 2026 年 1 月至 3 月期間財務結果的 40% 權益。根據 Propelis 提供之 4 月至 6 月期間調整後 EBITDA 的初步估計，我們按 40% 比例分攤的調整後 EBITDA 將為 1,270 萬美元。去年 Brand Solutions 事業部門的調整後 EBITDA 代表 SGK 於 2025 年 4 月的業績。

Please move to Slide 11. Cash flow used in operating activities for the nine months ended June 30, 2026, was $69.5 million compared to $33.9 million a year ago. During the period, the company made significant disbursements in connection with divestitures, including income taxes, transaction fees and repayments of securitized receivables. Expenditures for litigation and proxy defense also consumed significant cash in the period. Additionally, the engineering business performance has resulted in the need to fund cash to continue operations through the first 9 months of fiscal 2026.

請翻到第 11 張投影片。截至 2026 年 6 月 30 日止九個月，營運活動使用的現金流為 6,950 萬美元，較去年同期的 3,390 萬美元增加。期間內，公司就資產剝離相關事項進行了重大支出，包括所得稅、交易費用以及已證券化應收款的償還。訴訟與委託書爭奪（proxy defense）的支出亦在本期間消耗了大量現金。此外，工程業務的表現導致需要投入現金，以支應 2026 會計年度前 9 個月的持續營運。

Outstanding debt at June 30, 2026, was $567 million and net debt, which represents debt less cash, was $530 million. Gross debt decreased by $144 million since the end of fiscal 2025, driven by receipt of $244 million of cash proceeds from the divestitures of the warehouse automation business and the European packaging and tooling business, combined with $28 million of proceeds received for the redemption of a portion of the company's preferred share ownership in Propelis. These cash inflows were partially offset by cash used in operations and the payment of fees to redeem $300 million of senior secured notes.

截至 2026 年 6 月 30 日，未償還債務為 5.67 億美元；淨負債（即債務減現金）為 5.30 億美元。自 2025 會計年度末以來，總負債減少 1.44 億美元，主要受惠於出售倉儲自動化業務以及歐洲包裝與模具業務所取得的 2.44 億美元現金收入，加上因贖回公司在 Propelis 所持部分優先股權而取得的 2,800 萬美元款項。上述現金流入部分被營運用現金以及為贖回 3 億美元優先擔保票據所支付的費用所抵銷。

During the third quarter of fiscal 2026, the company purchased 404 shares under its stock repurchase program at an average cost of $26.62 per share. These repurchases were solely related to withholding tax obligations for vested equity compensation. And finally, the Board declared last week a quarterly dividend of $0.255 per share on the company's common stock. The dividend is payable on August 24, 2026, to stockholders of record as of August 10, 2026.

在 2026 會計年度第三季，公司依其庫藏股回購計畫買回 404 股，平均成本為每股 26.62 美元。這些回購僅與已歸屬股權薪酬的預扣稅義務相關。最後，董事會於上週宣告公司普通股每股 0.255 美元的季度股利。該股利將於 2026 年 8 月 24 日支付給截至 2026 年 8 月 10 日登記在冊的股東。

This now concludes the financial review, and we will open up the call for questions.

以上為財務回顧，接下來我們將開放提問。

Liam Burke with B. Riley Securities.

B. Riley Securities 的 Liam Burke。

Joe, as in the last several years, as you've been receiving favorable rulings in this dispute with Tesla, quote activity in the DBE portion of the battery storage business picked up with both automotive OEMs and then the traditional battery makers. Where are you on the DBE side? Where are you on order of quotes? And do you have any type of visibility on potential order activity there?

Joe，和過去幾年一樣，隨著你們在與 Tesla 的爭議中陸續獲得有利裁決，電池儲能業務中 DBE 部分的報價活動，無論是汽車 OEM 或傳統電池製造商，都有所升溫。你們在 DBE 這一端目前進展到哪裡？報價（quotes）的排序／優先順序到哪個階段？對那邊潛在的訂單活動，你們是否有任何能見度？

Yeah, thanks, Liam. As you heard on my call, and you've heard me in the past, we've talked about the process through which orders are received. And it goes from lab machines to pilot lines, to initial mass production, then mass production at scale quantities.

是的，謝謝你，Liam。如同你在我的電話會議中聽到的，以及你過去也聽我提過的，我們談過接單的流程。流程是從實驗室設備到試產線，再到初期量產，最後到規模化量產。

As we told the market over the last several years, we've been building our own mass production machine. That mass production machine gets commissioned as we speak right now with people coming in to test. We have received, let's call it, soft commitments at this point in time for several of our customers, both on the battery side as well as on the auto side. That -- should they have success, improve scalability at the mass production scale, they will move to that in 2027. When that is, it's difficult to tell, but we are confident as we are seeing very successful tests of our own on that equipment to produce mass production scale quantities of DBE product.

正如我們過去幾年對市場所說，我們一直在打造自有的量產設備。這台量產設備目前正在進行投產驗收（commissioning），也正有相關人員進來測試。截至目前，我們已從多位客戶那裡取得可稱為「非正式承諾」的意向，涵蓋電池端以及汽車端。若他們取得成功，並在量產規模上提升可擴展性，他們將在 2027 年轉向該方案。具體時間點難以判斷，但我們有信心，因為我們在該設備上已看到非常成功的自有測試，能夠生產量產規模的 DBE 產品。

Great. And on the print technology platform, you have a JV in Europe now, or at least in France and UK. How are you envisioning scaling this business as you get more commercial uptake on the product?

很好。另外在印刷技術平台方面，你們目前在歐洲（至少在法國與英國）有一家合資企業（JV）。隨著產品獲得更多商業採用，你們打算如何擴大這項業務規模？

Well, interestingly enough, you've identified that it's only in Europe -- only in the U.K. and France. And as you might expect that one of the issues that we're facing is the scaling up of the product itself. We don't produce silicon chip. We rely on a fab to be able to do that. Some of the limitations, as we speak about, for regions that we're hoping to develop are caused by that ability to scale up at our fab. As that continues to scale, and as you know, this is a ramp at these facilities. As it ramps, I expect more markets to be open through that relationship, and we expect big things from it over time.

有趣的是，你指出目前只在歐洲——僅在英國與法國。如你所料，我們面臨的其中一個問題是產品本身的擴產。我們不生產矽晶片。我們仰賴晶圓代工廠（fab）來完成。我們目前希望開發的某些地區之所以受限，正是因為我們的代工廠擴產能力所致。隨著其產能持續擴大，而且你也知道，這些設施需要爬坡（ramp）。在產能爬坡的過程中，我預期透過這段合作關係將能開放更多市場，並且我們長期對此寄予厚望。

It's not lost also on us that the -- it is a bilateral agreement, meaning we get access to a significant portion of their products in North America to be able to expand our portfolio as well. So we think this is a nice moving agreement for that part of our business.

我們也注意到——這是一項雙邊協議，意味著我們也能在北美取得其相當大一部分產品的供應，從而擴充我們的產品組合。因此我們認為，這對我們該業務板塊而言是一項很好的推進性協議。

Daniel Moore, CJS Securities.

CJS Securities 的 Daniel Moore。

Joe, you don't sound like someone that's retiring. So you're still in the CEO seat until a successor is identified. That's the right way to think about it?

Joe，你聽起來不像是要退休的人。所以在找到接班人之前，你仍會坐在 CEO 的位置上。這樣理解是對的嗎？

Absolutely, Dan. I mean, my team is sitting around me right now. I think I'm still engaged, and I will remain engaged as long as I have to be. I'm a -- I still have a little bit of vim and vigor to do this, and I continue to want this to be successful. We started a lot of great things. A lot of those things are coming to fruition as we speak right now. The agreement on the product identification side is validation in my mind.

完全正確，Dan。我的團隊現在就坐在我周圍。我想我仍然全心投入，而且只要需要，我就會持續投入。我——我還有一點衝勁與幹勁（vim and vigor）來做這件事，而且我仍然希望它能成功。我們啟動了很多很棒的事情。其中很多事情此刻正逐步開花結果。在產品識別（product identification）方面的協議，在我看來就是一種驗證。

Linx is one of the largest players in the world. They have access to the world. And over time, we expect to be able to expand that market significantly. DBE is starting to take off, as we talked about. We're seeing significant interest. We've never seen this level of interest. It is a perfect time for the future of Matthews, and I still have the vim and vigor to kind of push that forward.

Linx 是全球最大的玩家之一。他們能觸及全球市場。隨著時間推進，我們預期能大幅擴大該市場。如同我們所談，DBE 正開始起飛。我們看到顯著的興趣。我們從未見過如此程度的關注。這對 Matthews 的未來而言是完美的時機，而我仍有那股衝勁與幹勁去推動它向前。

And any commentary on what the Board is looking for in a potential successor or kind of leave that to them?

那麼你能否評論一下董事會在潛在接班人方面在尋找什麼特質，或是你會把這留給他們？

Somebody younger than me. How's that, Dan?

比我年輕的人。這樣可以嗎，Dan？

I'll get into the more minutia questions, but Memorialization, just maybe talk a little bit about margin compression. How much is just timing of rising commodity and input costs versus price increases? Is there a tariff impact there given your production of steel caskets over the border? Just to kind of talk about those challenges and how long it might take to work through those?

我會再問一些更細節的問題，不過先談一下 Memorialization（紀念事業）這邊的毛利率壓縮。其中有多少只是大宗商品與投入成本上升的時間差，相對於漲價的時間點？鑑於你們跨境生產鋼製棺材，關稅是否也有影響？想請你談談這些挑戰，以及大概需要多久才能消化過去？

It's all of the above, Dan. I mean, that's the nature of the beast right now. On top of that is the historically low death rates. I mean, we just got whacked with a lot of things going the wrong way at that point in the business.

以上因素都有，Dan。我的意思是，這就是目前的現實狀況。除此之外，死亡率也處於歷史低點。也就是說，在那個時間點，我們的業務同時遭遇了很多不利因素的衝擊。

At the end of the day, let's give you a perspective. So typically in the funeral home business, as you know, we are the followers, not the leaders in the industry. The leader is Batesville. They come out to market in September. We'll see price increases going out in September. We'll follow, I presume, or at least to adjust our prices for that. We are taking alternative action within our businesses to mitigate the impact of tariffs. But we'll also find ways to cover those as well.

最終，我給你一個角度。如你所知，在殯葬業務中，我們通常是跟隨者，而不是產業領導者。領導者是 Batesville。他們會在 9 月對市場推出動作。我們會看到 9 月會有價格上調。我推測我們會跟進，或至少會相應調整我們的價格。我們也正在各項業務內採取替代措施，以減輕關稅的影響。但我們也會找到方法把這些成本涵蓋過去。

And when it comes to copper and other related products in our bronze business, we have raised prices. It just keeps continuing to go up faster than we can keep up. And, you know, there is a level that we do have -- although we are the leader in the industry, we do have competition, and we do have to be sensitive to that. We also -- What we don't want to see, and this is what we've been sensitive to throughout that part of our business, is a mix shift where all we do is raise the price and ultimately, we see a mix shift down in product that ultimately doesn't get us the benefit that we need.

談到我們青銅事業中的銅以及其他相關產品時，我們已經調漲了價格。它持續上漲的速度比我們能跟上的還快。而且，你知道，我們確實有一個上限——雖然我們是產業領導者，但我們也有競爭對手，因此必須對此保持敏感。我們也——我們不希望看到的、而這也是我們在這部分業務中一直很謹慎的，是產品組合發生轉移：也就是我們只是一味漲價，最後卻看到產品組合往較低端移動，最終無法帶來我們所需要的效益。

We have lived through this before and we will live through this one as well. As commodities cycle, they come back to a normalized rate and -- when we have the benefit from that as a tailwind at that point in time. So we are doing the best we can to prepare the business for the long term, not for an immediate reaction.

我們以前經歷過這種情況，這次也一樣會走過去。隨著大宗商品循環，它們會回到正常化的水準——而到那個時點，我們將受益於那股順風。因此，我們正盡最大努力為企業做長期準備，而不是做立即性的反應。

Okay, and shifting to Industrial, Dan, is it possible to bucket the $38 million of revenue by kind of product ID, energy storage? I'm trying to remember what remains in that post some of the divestments. But I'm assuming energy storage is down pretty close to de minimis at this stage. But if you could help level set that for go forward, that would be great.

好的，轉到工業業務，Dan，是否可以把這 3,800 萬美元的營收按產品類別拆分一下，例如產品 ID、儲能？我想回想一下，在一些資產剝離之後，那裡還剩下什麼。不過我假設儲能在這個階段已經降到幾乎可忽略不計。但如果你能幫忙把未來的基準狀況說清楚，那就太好了。

Yes, Dan, the energy storage piece or, well, total engineering, as we refer to, which includes coating, converting, some of which does go into the energy market. For the quarter, that was $14 million, and the balance of about $24 million was product ID.

是的，Dan，儲能那一塊，或者說我們所稱的整體工程（total engineering），其中包含塗佈、分切/轉換（converting），其中一部分確實會進入能源市場。本季那部分是 1,400 萬美元，其餘約 2,400 萬美元是產品 ID。

Got it. And this product ID you said was up [indiscernible] digits?

了解。那你說這個產品 ID 是上升了[聽不清]位數？

Yes, that was about 5%.

是的，大約是 5%。

5% up, Dan.

上升 5%，Dan。

Okay. Go ahead. I'm sorry. I didn't mean to interrupt.

好的。請繼續。抱歉。我不是故意打斷的。

I was just going to say it was up 5%.

我只是想說是上升 5%。

Okay, perfect. And then one more -- or two-part, one more. But guidance at the midpoint implies a $10 million sequential improvement. Propelis is $2 million to $3 million of that. What are the other factors or drivers maybe between Memorialization rebounding or recovering a little bit, product ID, what's under the hood in terms of -- that gives you confidence in that sequential improvement beyond the Propelis incremental contribution?

好的，完美。然後再一個——或兩段式的，最後一個。不過指引在中位數意味著環比改善 1,000 萬美元。Propelis 佔其中 200 萬到 300 萬美元。其他因素或驅動是什麼？例如紀念化（Memorialization）業務反彈或稍微復甦、產品 ID 等等；也就是在 Propelis 的增量貢獻之外，還有哪些內在因素讓你們對這個環比改善有信心？

Yes, Dan, well, first of all, we've told you the actions we've taken in that engineering business that certainly will reduce our cost base, maybe not at a full run rate for the quarter, but certainly help bring that cost base down for the quarter. And quarter 4, as you know, is seasonally one of our best quarters. As Joe mentioned, for cemetery products, it is our strongest quarter. But also product ID has been very strong. So we're expecting to kind of rebound and pick up in those two business lines.

是的，Dan，首先，我們已經告訴過你們我們在那個工程業務中採取的行動，這些行動肯定會降低我們的成本基礎；也許本季還不會完全反映到滿載的運行水準，但肯定會在本季幫助把成本基礎拉下來。而且第四季如你所知，季節性上是我們表現最好的季度之一。如 Joe 提到的，對於墓園產品而言，那是我們最強的一季。此外，產品 ID 一直非常強勁。所以我們預期這兩條業務線會出現反彈並回升。

All right. And last for me, let me get the pronunciation right to start. Is it MEODEO? How do I pronounce? Is that correct?

好。我最後一個問題，先把發音弄對。是 MEODEO 嗎？我該怎麼唸？這樣對嗎？

Yes, it is. It's an acronym. We might have to change that acronym going forward, but-

是的。那是一個縮寫。我們之後可能得把這個縮寫改掉，但——

Understood. Just trying to get a sense for any more details in terms of what the customers have expressed interest, timing of when you start thinking about demoing as you've laid out in the earlier remarks, the kind of sequencing, but any details about kind of the operations and logistics and when you might start to see a meaningful ramp in revenue?

了解。我只是想更了解一些細節：客戶表達了哪些興趣、你們何時開始如先前發言所說去考慮做示範（demo）、大致的推進順序；以及在營運與物流方面的細節，還有你們何時可能開始看到營收有意義的加速成長？

We expect that the second half of '27. I mean, that's what we're currently expecting. Those are the kind of indications we're seeing. It's going to be more in terms of -- because of the size of these projects, Dan, it's more -- the discussion about the winning of orders. But as I pointed to you in the call, LG has expressed strong intent to convert and to land -- to start new DBE projects. We're hoping that, that equipment comes through us. They are one of our early players in our testing and have kind of given it some indication of what they think they want to do.

我們預期是在 2027 年下半年。我的意思是，這是我們目前的預期。這些是我們看到的各種跡象。由於這些專案規模很大，Dan，更多會是在——討論如何拿下訂單。但如我在電話會議中跟你指出的，LG 已表達強烈意向要轉換並落地——啟動新的 DBE 專案。我們希望那些設備能由我們供應。他們是我們測試中的早期參與者之一，也給了我們一些他們想做什麼的訊號。

I mean, the really big change for us from where we were just several years ago is the number of auto players in the space, as I said earlier. There was a recent article just today talking about the change in the European auto manufacturers and the need to accelerate that. We're seeing that acceleration push on us as well. So we're hoping to have more news around that over the next several months or -- the next quarter or 2, let's call it that, and we'll be able to talk about it more clearly.

我的意思是，對我們而言，相較於幾年前最大的變化，是如我先前所說，這個領域中的汽車業者數量。今天才有一篇近期文章談到歐洲汽車製造商的變化以及需要加速推進。我們也看到這種加速對我們形成推力。因此我們希望在接下來幾個月——或者說接下來一到兩季——能有更多消息，並能更清楚地談論。

Is the litigation with Tesla still a hang-up for folks like LG and others, or are we largely past that?

與特斯拉的訴訟對 LG 等其他公司來說仍然是個障礙嗎？還是我們基本上已經走過那一段了？

I would say we're largely past that from our standpoint. I mean, we've had to explain what our situation is and the limiting nature of the last win, the so-called -- the win on the trade secret item makes it a more solid footing for us to be able to have those kinds of discussions with our customers. But at the end of the day, it still has had some impact.

我會說從我們的角度看，基本上已經走過了。我的意思是，我們必須解釋我們的情況，以及上一次勝訴的限制性；所謂——在商業機密事項上的勝訴，使我們在與客戶進行這類討論時有更穩固的立足點。但歸根結底，它仍然帶來了一些影響。

We had talked about for a while a fairly significant order on the OLBRICH side for a coating line, not DBE, but into the energy space. Unfortunately, we were informed that's one of the projects we were informed that we did not win. And one of the answers from that customer is they did not want to get entangled in a potential suit with Tesla, even though it had nothing to do with DBE.

我們曾談過一段時間，在 OLBRICH 方面有一筆相當可觀的訂單，是一條塗佈線，不是 DBE，但會用於能源領域。不幸的是，我們被告知那是其中一個我們沒有拿下的專案。而該客戶給出的其中一個原因是，他們不想捲入與特斯拉可能發生的訴訟，即使那與 DBE 毫無關係。

(Operator Instructions)

（接線員指示）

Justin Bergner, Gabelli Funds.

Justin Bergner，Gabelli Funds。

Congratulations, Joe. I know you'll be missed. I realized this isn't you last earnings call, but just want to put that out there.

恭喜你，Joe。我知道大家會想念你。我知道這不是你最後一次財報電話會議，但我只是想先說一下。

A couple of questions here. So on Propelis, with the $12.7 million, I guess, you would be at about $45 million of EBITDA for the fiscal year for your 40% stake. So I guess you expect it to be about $50 million, and have we got kind of caught up on the SAP implementation or is there the chance for further delays there?

這裡有幾個問題。關於 Propelis，以 1,270 萬美元來看，我想你們在本財年就你們 40% 持股而言，EBITDA 大約會是 4,500 萬美元。所以我猜你們預期大約是 5,000 萬美元；那 SAP 導入是否已經大致追上進度，還是仍有進一步延遲的可能？

So, yes, we did expect $50 million, Justin. You're exactly right. The work on the implementation isn't necessarily getting the system up and running. It's beginning to migrate work over from the legacy SGS business. And that's what ultimately the delay in the go-live delayed, right? So that's where the synergies will come out. But that work is ongoing. It is delayed by the one quarter. It remains to be seen where they'll end up. But they're certainly working hard at it as we speak.

所以，是的，我們確實預期是 5,000 萬美元，Justin。你說得完全正確。導入工作的重點不一定是讓系統上線運作。而是開始把工作從既有的 SGS 業務遷移過來。而這正是上線（go-live）延後所造成的延遲，對吧？所以協同效益會從那裡釋放出來。但那項工作仍在進行中。它延後了一個季度。最終會落在哪裡還有待觀察。但他們此刻確實正努力推進。

Okay. Switching gears to Memorialization, you talked about elasticity risk from higher prices. Have you seen that yet or are you just worried that we're getting close to the point where it might come into play?

好的。把話題轉到紀念化（Memorialization）業務，你提到因價格上漲帶來的需求彈性風險。你們已經看到這種情況了嗎？還是只是擔心我們快接近它可能開始發生作用的臨界點？

No. No, Justin, we did see a little bit of it this quarter. I mean, that was part of the reason for the downgrade. We saw a migration shift down, and we obviously did not lose share. We did not shift from one product to another. They shifted within the product mixes. For example, a more expensive casket to a lower-priced casket just because of pricing. So that is something we are sensitive to. We saw -- it was not a significant item, but it was enough to kind of cause us to sit back and watch.

有。不，Justin，我們這一季確實看到了一點。我的意思是，那也是下調預期的部分原因。我們看到消費選擇往下移的轉移，但我們顯然沒有流失市占。我們沒有從一個產品轉到另一個產品。他們是在產品組合內部做了調整。例如，因為價格因素，從較昂貴的棺木轉向較低價的棺木。所以這是我們會特別留意的。我們看到——這不是一個重大的項目，但已足以讓我們稍微退一步觀察。

Okay, one or two more quick questions. On the energy storage side and particularly the automotive side, I mean given the industry is still oversupplied and EVs have -- EV demand has kind of hit a lull, just maybe if you could rephrase for us or reiterate for us what has changed among these automakers to suddenly kind of be re-interested in DBE technology amidst a soft production environment?

好的，再一兩個快問。在儲能端、尤其是車用端，我是說，考量到產業仍然供給過剩，而且電動車——電動車需求有點進入停滯期，能否請你替我們換個說法或再重申一下：在生產環境偏疲弱的情況下，這些車廠之間到底是什麼改變了，讓他們突然又對 DBE 技術重新產生興趣？

Well, the simplest answer to that is that -- but there's two sides to that story. First off, conversations we've had with -- literally with the OEMs themselves has been that they have come to the realization that they need to be in control of their battery production. They do view batteries as a solution. Electrification is the future of the industry, whether it be hybrid or whether it be full electric TBD. But -- so that's the first part of the decision. So they're much more engaged on that front end.

嗯，最簡單的答案是——但這件事有兩個面向。首先，我們與——真的就是與 OEM 本身的對話顯示，他們已經意識到必須掌控自己的電池生產。他們確實把電池視為解決方案。電動化是產業的未來，不論是油電混合還是純電，仍待定（TBD）。但是——所以這是決策的第一部分。因此他們在前端的投入與參與度高了很多。

Secondly, there's a lot of new chemistries coming out. I mean, we've heard about sodium, you've heard about solid state, you've heard about lithium iron phosphate versus nickel. There's a lot of chemistries out there. And each one of those chemistries have different attributes and different benefits ranging from cost to longevity and so forth. Many of those chemistries are only facilitated through dry battery. So failure to kind of take advantage of that at the early stages right now would put them further behind in the process and further reliant on battery operators themselves to do what they want -- what they think is in their best interest.

第二，現在有很多新的化學體系正在推出。我是說，你們聽過鈉電、也聽過固態、也聽過磷酸鐵鋰相對於鎳系。市面上有很多化學體系。而每一種化學體系都有不同特性與不同優勢，從成本到壽命等等。其中許多化學體系只能透過乾式電池來實現。所以如果他們現在不在早期階段就把握這個機會，就會在流程上落後更多，並且更依賴電池營運商去做他們想要——他們認為符合自身最佳利益的事情。

The last part of that, and I think this is also a critical -- we're starting to see government involvement. You see it in the German market pretty easily. There's discussion of a multi-billion dollar fund to help support the advancement of this over in Germany. And you know who those customers are targeting over there. There is a rapid push. There's just an article in the Wall Street Journal today, excuse me, in the CNBC today, you all can look at, that identifies the need for it to push faster to be able to compete with oncoming Chinese competitors. So all of those factors is what's changed in that formula. And we sit right in the middle as a critical component of that party.

最後一點，而且我認為這也很關鍵——我們開始看到政府介入。在德國市場你很容易就看得到。目前正在討論設立一個數十億美元規模的基金，以支持在德國推動這項技術的進展。而你也知道那邊的客戶鎖定的是誰。推進速度非常快。今天《華爾街日報》有一篇文章，抱歉，是 CNBC 今天的報導，你們都可以去看，指出為了與即將到來的中國競爭者競爭，需要更快推進。所以，這些因素共同改變了整個方程式。而我們正處於其中的核心位置，作為這個局面中的關鍵組成。

Not the least of which, one of the things we've said for years, and it's proving true today, it's a lot less expensive and a lot smaller footprint to put up the same capacity of dry battery electrode than it is wet electrode. You've got a 100-meter oven. We don't need a 100-meter oven. It's a cheaper cost to produce, a better battery density -- better energy density ends up with a cheaper, better battery, as we've said all along. If they're going to invest, they're going to invest in the next generation of technology, not in old technology, if they can.

此外，我們多年來一直在說的一點，而今天也證明是對的：要建置相同產能的乾式電池電極，相較於濕式電極，成本更低、占地也小得多。你需要一座 100 公尺的烘箱。我們不需要 100 公尺的烘箱。生產成本更低、電池密度——能量密度更好，最後就會得到更便宜、更好的電池，正如我們一直以來所說。如果他們要投資，他們會投資下一代技術，而不是舊技術——只要他們做得到。

Got it. That's helpful. But they're not necessarily looking to convert existing plants from wet to dry technology. It's more that they want to get ahead of the next set of production...

了解。這很有幫助。但他們不一定是在尋求把既有工廠從濕式轉成乾式技術。比較像是他們想在下一波產能建置之前先卡位……

The battery operators -- LG has specifically said they're talking about converting. They've said that publicly, not using our name. They've said they intend to convert. So, I mean, think about it, in the space of a 100-meter oven, there is a significant, significant uptick in the capability to produce volume using our footprint. Our footprint is a fraction of that 100-meter oven that they have for that process. So we could probably put 3 times, 4 times the capacity in that same gigafactory. Then it becomes an economic decision about sunk costs versus additional investment and so forth. But at the end of the day, the economics will ultimately win out, whether it's this year or next, sooner or later they will convert.

電池營運商——LG 特別說過他們正在討論轉換。他們公開講過，只是沒有提我們的名字。他們說他們打算轉換。所以，我是說，想想看，在一個 100 公尺烘箱的空間裡，使用我們的占地，可以在產量能力上有非常、非常顯著的提升。相較於他們用於該製程的 100 公尺烘箱，我們的占地只是其中的一小部分。所以在同一座超級工廠（gigafactory）裡，我們大概可以放進 3 倍、4 倍的產能。接著就會變成一個經濟決策：沉沒成本對比新增投資等等。但歸根結底，經濟性終究會勝出，不管是今年或明年，遲早他們都會轉換。

Thank you. This concludes our Q&A session and brings us to the end of today's meeting. We appreciate your time and participation. You may now disconnect.

謝謝。我們的問答環節到此結束，也代表今天的會議告一段落。感謝各位撥冗與會並參與。您現在可以斷線。