Modine Manufacturing Company (MOD) 2024 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Modine's First Quarter Fiscal 2024 Earnings Conference Call. (Operator Instructions) As a reminder, this conference call is being recorded.

各位女士、先生，早安，歡迎參加 Modine 2024 會計年度第一季財報電話會議。（接線員指示）提醒各位，本次電話會議將被錄音。

I would now like to turn the conference over to your host, Ms. Kathy Powers, Vice President, Treasurer and Investor Relations.

現在我想把電話會議交給本次主持人——Kathy Powers 女士，副總裁、財務長兼投資人關係主管。

Good morning, and thank you for joining our conference call to discuss Modine's first quarter fiscal 2024 results. I'm joined on this call by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer.

各位早安，感謝各位參加我們的電話會議，一同討論 Modine 2024 會計年度第一季的業績。我與會的還有我們的總裁暨執行長 Neil Brinker，以及執行副總裁暨財務長 Mick Lucareli。

We will be using slides for today's presentation, which can be accessed either through the webcast link or by accessing the PDF file posted in the Investor Relations section of our website, modine.com.

今天的簡報將使用投影片，各位可透過網路直播連結存取，或至我們網站 modine.com 的投資人關係（Investor Relations）專區下載已上傳的 PDF 檔。

On Slide 3 is our notice regarding forward-looking statements. This call will contain forward-looking statements as outlined in our earnings release as well as in our company's filings with the Securities and Exchange Commission.

投影片第 3 頁為我們關於前瞻性陳述的聲明。本次電話會議將包含前瞻性陳述，內容如同我們的財報新聞稿以及公司向美國證券交易委員會（SEC）提交的文件中所述。

With that, it is my pleasure to turn the call over to Neil.

接下來，我很高興把電話會議交給 Neil。

Thank you, Kathy, and good morning, everyone. This has been an exciting quarter for Modine. First, we delivered another record quarter with 15% top line growth and adjusted EBITDA of $80.4 million, an increase of 91% from the prior year.

謝謝你，Kathy，各位早安。這一季對 Modine 而言令人振奮。首先，我們再度交出創紀錄的一季，營收年增 15%，調整後 EBITDA 為 8,040 萬美元，較去年同期增加 91%。

Second, we completed our first acquisition since announcing our transformation strategy with the addition of Napps Technology and the Jetson brand into our product portfolio in early July.

第二，我們在 7 月初完成了自宣布轉型策略以來的第一起併購，將 Napps Technology 與 Jetson 品牌納入我們的產品組合。

Napps has a small chiller range that fits nicely within our indoor air quality business, providing an additional product line for our target schools market. I'm excited to welcome Napps' President, Sam Neale and his team to Modine, and look forward to continuing to manufacture this great product at their facility in Longview, Texas. This acquisition is directly in line with our growth strategy, which is focused on differentiated technologies and systems that address real-world needs.

Napps 擁有一系列小型冷水機（chiller）產品，與我們的室內空氣品質業務高度契合，為我們鎖定的學校市場提供額外的產品線。我很高興歡迎 Napps 總裁 Sam Neale 及其團隊加入 Modine，也期待持續在德州 Longview 的廠區生產這項優秀產品。此項併購與我們的成長策略完全一致；我們的策略聚焦於具差異化的技術與系統，以滿足真實世界的需求。

Most importantly, this acquisition demonstrates our commitment to responsibly investing in key verticals where our objective is to grow faster than the market. As a result, we're making great progress on our financial targets and planting the seeds for future growth. But this doesn't mean that we're reaching the end of the journey.

更重要的是，這項併購展現我們承諾以負責任的方式投資於關鍵垂直領域，目標是在這些領域的成長速度快於市場。因此，我們在財務目標上取得了很大進展，也為未來成長播下種子。但這並不代表我們的旅程即將結束。

In fact, I would say we're still in the early stages of this transformation. There is an additional opportunity for incremental revenue and margin growth as a greater percentage of our business portfolio shifts to the growth column, and as we further simplify and rationalize low-margin products.

事實上，我會說我們仍處於這次轉型的早期階段。隨著我們的業務組合中，更多比重轉向成長型業務，以及我們進一步簡化並精簡低毛利產品，仍有機會帶來額外的營收與利潤率成長。

Please turn to Slide 5. The Climate Solutions segment delivered another strong performance this quarter with revenue up 11% from the prior year and an adjusted EBITDA margin of 18.3%, up 500 basis points from the prior year.

請翻到投影片第 5 頁。氣候解決方案（Climate Solutions）事業部本季再度繳出強勁表現，營收較去年同期成長 11%，調整後 EBITDA 利潤率為 18.3%，較去年同期提升 500 個基點。

In Climate Solutions, we are well along in our 80/20 journey and have proved out the effectiveness of this approach. We stabilized the business by providing the leadership, resources and strategies necessary to improve our operating margins and accelerate top line growth. I've often said that data centers is the tip of the spear, and it's leading the way in both revenue growth and margin improvement.

在氣候解決方案方面，我們的 80/20 旅程已進展良多，並已驗證此方法的有效性。我們透過提供必要的領導力、資源與策略來穩定業務，進而提升營運利潤率並加速營收成長。我常說資料中心是「矛尖」，它在營收成長與利潤率改善兩方面都扮演領頭角色。

In the first quarter, data center sales more than doubled from the prior year at margins above our segment targets. This is the result of a dedicated focus and strategy to grow, investing capital and resources as we've never done before.

第一季資料中心銷售額較去年同期增加逾一倍，且利潤率高於我們事業部的目標。這是我們以前所未有的方式，專注並制定成長策略、投入資本與資源的成果。

Mick will provide more detail in a minute. But we're raising our outlook for data center revenue growth this year, now targeting a 60% to 70% increase, which would equate to over $270 million in data center revenue this fiscal year, up from $174 million last year. This large change in our forecast is primarily due to higher-than-expected orders in Q1, which will positively impact the back half of the year.

Mick 稍後會提供更多細節。不過，我們正在上調今年資料中心營收成長的展望，目標為成長 60% 至 70%，相當於本會計年度資料中心營收超過 2.7 億美元，高於去年的 1.74 億美元。這次大幅調整預測，主要是因第一季訂單高於預期，將對下半年帶來正面影響。

We have a strong backlog, including both hyperscale and colocation customers. In addition, we have a pipeline of new products and new customers that we are confident will fuel above-market growth in the future. I often get questions about our next-generation technology in data center arena, particularly as it relates to high-performance computing, supporting AI, machine learning and other applications that require more advanced cooling technologies to deal with a higher heat load. This technology is still developing, and it's an area that we're very interested in, and we've done some R&D here in the past.

我們擁有強勁的在手訂單（backlog），涵蓋超大規模（hyperscale）與機房代管（colocation）客戶。此外，我們也有新產品與新客戶的管線（pipeline），我們有信心未來將推動高於市場的成長。我也常被問到我們在資料中心領域的下一代技術，特別是與高效能運算相關、用於支援 AI、機器學習及其他需要更先進散熱技術、以因應更高熱負載的應用。這項技術仍在發展中，是我們非常感興趣的領域，過去也做過一些研發。

We will continue to develop this technology organically, inorganically or both, and are actively monitoring and assessing the landscape. We see this as a great opportunity for us to add to our portfolio of data center cooling products.

我們將持續以有機、無機或兩者並行的方式發展這項技術，並積極監測與評估市場態勢。我們認為這是擴充資料中心冷卻產品組合的絕佳機會。

As data center products could become a bigger portion of our portfolio, this revenue stream provides a level of diversification away from our traditional heating and HVAC markets, both in the HVAC and HTP verticals.

隨著資料中心產品可能在我們的產品組合中占比提高，這項營收來源可讓我們在 HVAC 與 HTP 兩大垂直領域中，降低對傳統供暖與 HVAC 市場的依賴，並提升多元化程度。

In fact, our heating sales were down nearly 40% in the quarter due to weak market conditions and the sales of key transfer products were down 7% from the prior year. Despite this decline, margins actually improved due to lower material and freight costs and greater labor efficiency. When demand started to change, we quickly shifted our efforts to operational improvements leading to a solid performance.

事實上，由於市場狀況疲弱，我們本季供暖產品銷售下滑近 40%，而關鍵傳熱（key transfer）產品銷售較去年同期下降 7%。儘管營收下滑，但由於材料與運輸成本降低，以及勞動效率提升，利潤率反而改善。當需求開始變化時，我們迅速將重點轉向營運改善，因而帶來穩健的表現。

Please turn to Slide 6. The Performance Technologies segment also delivered strong results this quarter, with revenue up 18% from the prior year and an adjusted EBITDA margin of 11.2%, an improvement of 560 basis points. In fact, the margin is exactly doubled from the prior year.

請翻到投影片第 6 頁。效能技術（Performance Technologies）事業部本季同樣交出強勁成果，營收較去年同期成長 18%，調整後 EBITDA 利潤率為 11.2%，提升 560 個基點。事實上，該利潤率正好是去年同期的兩倍。

Much of this gain is due to the hard work the team has put into improving commercial terms and our long-term contracts, helping to recapture margin loss to material, labor and overhead inflation over the past several years.

這項改善多半來自團隊在改善商業條款與長期合約方面的努力，協助我們在過去數年材料、人工與間接費用通膨造成的利潤率流失中，重新收回部分利潤率。

In many cases, we've benefited from these adjustments earlier than expected, leading to our quarterly performance exceeding our expectations. The important thing to understand is that our teams are focused on the value that we deliver to our customers and they're negotiating agreements that are fair to both parties.

在許多情況下，我們比預期更早受惠於這些調整，使得本季表現超出我們的預期。需要理解的重點是，我們的團隊專注於為客戶創造的價值，並在談判中達成對雙方都公平的協議。

In addition, we're winning incremental business in targeted markets with accretive margins. Much of this is due to the 80/20 work that we've done so far in the PT segment. We are evaluating our business using a data-driven approach and are simplifying, improving wherever possible.

此外，我們也在鎖定市場中贏得具增益（accretive）利潤率的增量業務。這在很大程度上歸功於我們迄今在 PT 事業部所推動的 80/20 工作。我們以數據驅動的方法評估業務，並在可行之處進行簡化與改善。

For example, in our liquid cooling applications business, we've eliminated 73 SKUs, representing over $20 million of annual revenue that was at negative gross margins. In some cases, we're getting favorable commercial terms as we negotiate exits on nonstrategic product lines.

例如，在我們的液冷應用業務中，我們已淘汰 73 個 SKU，這些 SKU 代表每年超過 2,000 萬美元的營收，但毛利率為負。在某些情況下，當我們就非策略性產品線協商退出時，也取得了有利的商業條款。

As the business wind down, we plan to replace it with higher margin opportunities. An example of this is the genset business, which I've mentioned before. We have been in this business for a long time, but it was never a strategic focus.

隨著該業務逐步收縮，我們計畫以更高利潤率的機會來取代。發電機組（genset）業務就是一個例子，我之前也提過。我們在這個業務已經很久，但它從來不是策略重點。

Now, we are working with existing and new potential customers to support the conversion from copper brass to aluminum heat exchangers, similar to what the vehicular OEs did decades ago. Aluminum has built a cost and performance advantage. And we have a technology and global footprint to deliver in the region.

現在，我們正與既有及新的潛在客戶合作，支持將熱交換器由銅黃銅（copper brass）轉換為鋁製熱交換器，類似車用原廠（OE）在數十年前所做的轉換。鋁材在成本與性能上已建立優勢，而我們具備相關技術與全球布局，可在各地區交付。

There are great drivers for the growth in this business as data centers, hospitals and other critical applications, secure backup power to guarantee continuity of energy supply. This was about a $50 million business for us last year. And we expect this business to have a 30% CAGR over the next 3 years, definitely in the growth column.

此業務的成長動能非常強，因為資料中心、醫院及其他關鍵應用需要可靠的備援電力，以確保能源供應的連續性。這項業務去年對我們而言約為 5,000 萬美元規模。我們預期未來 3 年該業務的年複合成長率（CAGR）可達 30%，絕對屬於成長型業務。

Another business in the growth column is our EV Systems business. We have a number of important launches this year, but some are being delayed due to supply chain constraints, but the demand is there. As for the commercial funnel, we are up to 25 program wins, including 2 wins for our fuel cell product. This pushes our awarded revenue at peak annual production to over $150 million.

另一項成長型業務是我們的電動車系統（EV Systems）業務。今年我們有多項重要量產導入（launch），但其中部分因供應鏈限制而延後，不過需求仍然存在。就商務開發漏斗（commercial funnel）而言，我們已累計 25 個專案得標（program wins），其中包含 2 個燃料電池產品的得標案。這使我們在年產量達峰值時的已獲授予營收（awarded revenue）提升至超過 1.5 億美元。

Again, I'd like to reiterate that we are just getting going on 80/20 in the PT business, but are seeing remarkable early results. We are investing in those businesses that have the right growth drivers and addressing low-margin business in different ways throughout the segment.

再次，我想重申，我們在 PT 業務中推動 80/20 才剛起步，但已看到顯著的早期成果。我們正投資於具備正確成長驅動因素的業務，並在整個事業部內以不同方式處理低毛利業務。

We've simplified our product offering and are negotiating favorable exits, while also working to improve commercial terms to recapture the value that we provide to our customers, all while further investing in the technology of the future. I'm very proud of the work being done in both segments and the results we have delivered this quarter.

我們已簡化產品組合並協商有利的退出安排，同時也致力於改善商業條款，以重新取得我們為客戶提供的價值，並持續加碼投資未來科技。我為兩個事業部正在進行的工作以及本季交出的成果感到非常自豪。

Now I'd like to turn the call over to Mick, who will review our results for the quarter and provide segment financial updates.

接下來我想把電話會議交給 Mick，他將回顧本季業績並提供各事業部的財務更新。

Thanks, Neil, and good morning, everyone. Please turn to Slide 7 to review the segment results. Climate Solutions had another great quarter with improved earnings and higher sales. Segment revenue was up 11%, driven by our data center vertical, with sales up 124% or $38 million. The data center increase is fantastic, given it supports one of our most attractive markets and is quickly becoming a very large portion of Modine's total revenue.

謝謝你，Neil，各位早安。請翻到投影片 7 以檢視各事業部的表現。氣候解決方案（Climate Solutions）本季再度表現出色，獲利提升、銷售成長。事業部營收成長 11%，主要由資料中心垂直市場帶動，該領域銷售成長 124%，增加 3,800 萬美元。資料中心的成長非常亮眼，因為它支撐我們最具吸引力的市場之一，且正迅速成為 Modine 總營收中占比非常大的部分。

A significant piece of the increase is related to North American chiller sales as we ramp up production at our new plant to Virginia. We entered the year with a strong backlog and realized some of the sales much earlier in the year than originally planned, which added to a stronger-than-anticipated first quarter.

成長的重要一部分與北美冷水機（chiller）銷售有關，因為我們正隨著位於維吉尼亞的新工廠逐步提升產能。我們在年初就有強勁的訂單積壓（backlog），且比原先規劃更早在年內實現部分銷售，推升第一季表現強於預期。

HVAC&R sales were down a modest 2% or $1 million, driven by lower sales of heating products, partially offset by higher indoor air quality sales, which were up 40%. The heating market remains down largely due to higher field inventories and lower preseason stocking sales.

HVAC&R 銷售小幅下滑 2%（約 100 萬美元），主因為供暖產品銷售較低，但部分被室內空氣品質產品銷售成長所抵銷，後者成長 40%。供暖市場仍然疲弱，主要因為通路庫存偏高以及季前備貨銷售下降。

Sales of heat transfer products decreased 7% or $9 million. As anticipated, there was some market softness with commercial refrigeration customers and in various residential-related markets. And we are also continuing 80/20 product rationalization activities.

熱交換（heat transfer）產品銷售下滑 7%（約 900 萬美元）。如預期所見，商用冷凍客戶及多個與住宅相關的市場出現一定程度的需求走弱。同時，我們也持續推進 80/20 產品精簡（rationalization）活動。

We're pleased with the very strong earnings conversion as adjusted EBITDA increased 53%, resulting in a 500 basis point margin improvement to 18.3%. The earnings and margin improvements were primarily driven by higher sales volume and benefits from 80/20 initiatives.

我們對非常強勁的獲利轉換感到滿意，調整後 EBITDA 成長 53%，帶動利潤率提升 500 個基點至 18.3%。獲利與利潤率改善主要由更高的銷售量以及 80/20 計畫帶來的效益所驅動。

The Climate Solutions segment continues to perform very well and is off to a strong start to the year. The growth in data center sales is driven by a robust backlog, which is continuing to grow. With regards to heating and heat transfer products, we're maintaining a cautious outlook for the second half of the year, which has been incorporated into our revised guidance. Given the factors, we believe we're likely to see more level loaded quarters or less seasonality than in previous year.

氣候解決方案事業部持續表現優異，年度開局強勁。資料中心銷售成長由強勁的訂單積壓所帶動，且該積壓仍在持續增加。至於供暖與熱交換產品，我們對下半年維持審慎展望，並已納入我們修訂後的指引。基於這些因素，我們認為各季表現可能更為平均，或季節性將低於以往年度。

Please turn to Slide 8. Performance Technologies also had another great quarter with sales up a very strong 18% or $55 million. Revenue benefited from both volume and commercial improvements, many of which were realized earlier than expected. Sales volume accounted for $37 million or 12% revenue growth.

請翻到投影片 8。績效科技（Performance Technologies）本季同樣表現出色，銷售大幅成長 18%（增加 5,500 萬美元）。營收同時受惠於出貨量與商業條款改善，其中許多改善比預期更早實現。銷售量貢獻 3,700 萬美元，約為 12% 的營收成長。

Advanced Solutions sales were up 31% or $10 million with continued growth of our EV systems and component sales. Liquid cooled application sales increased 21% to $24 million due to higher sales across all end markets.

先進解決方案（Advanced Solutions）銷售成長 31%（增加 1,000 萬美元），主要來自我們電動車（EV）系統與零組件銷售的持續成長。液冷（liquid cooled）應用銷售成長 21% 至 2,400 萬美元，因各終端市場銷售均增加。

Lastly, air cooled application sales increased 13% or $20 million, primarily due to continued strong demand from off-highway customers, with a higher sales in genset or stationary power applications, which we see as a significant growth area.

最後，氣冷（air cooled）應用銷售成長 13%（增加 2,000 萬美元），主要由非公路（off-highway）客戶的持續強勁需求所帶動，且在發電機組（genset）或定置式電力（stationary power）應用的銷售更高；我們將其視為重要的成長領域。

Performance Technologies converted the higher revenue to an extremely high level of earnings. Adjusted EBITDA was up 135%, resulting in an 11.2% margin and a 560 basis point improvement.

績效科技事業部將較高的營收轉化為極高水準的獲利。調整後 EBITDA 成長 135%，利潤率達 11.2%，提升 560 個基點。

As Neil mentioned, the Performance Technologies segment has worked hard at modifying long-term contracts. And in some cases, we benefited from these adjustments earlier than expected.

如 Neil 所提，績效科技事業部一直努力修訂長期合約；在某些情況下，我們比預期更早受惠於這些調整。

While we're making great progress towards our margin targets, I want to point out that it will be difficult to sequentially match this Q1 results. As we entered the year, the team had a long list of projects to execute. And we believe the results would ramp over the year, consistent with most of last year.

雖然我們在達成利潤率目標方面進展良好，但我想指出，要在環比上持續匹配本次第一季的成果將會很困難。年初時，團隊有一長串專案需要執行，我們原本預期成果會在全年逐步爬升，與去年大部分時間的情況一致。

As I just mentioned, we're pleased that some of our commercial negotiations that were completed earlier than expected. And we're also able to capture some retroactive commercial benefits during the quarter.

如我剛才所說，我們很高興部分商業談判比預期更早完成；同時，我們也在本季取得一些追溯性的商業效益。

Lastly, as previously discussed, the team is pursuing multiple 80/20 product rationalization strategies, which could result in some reduced revenue. I want to be clear that these are planned actions and relate to business that cannot meet our margin objectives.

最後，如先前所討論，團隊正推動多項 80/20 產品精簡策略，這可能導致部分營收下降。我想明確說明，這些都是計畫內的行動，且與無法達成我們利潤率目標的業務相關。

Based on all of these factors, and as we look to the balance of the year, our full year outlook for this segment has improved, and we now see more even results over each of the 4 quarters.

綜合上述因素，並展望今年剩餘期間，我們對該事業部的全年展望已改善，且現在預期四個季度的表現將更為平均。

Now let's review the total company results. Please turn to Slide 9. First quarter sales were up 15% or $81 million. Higher sales volumes drove approximately $62 million of incremental sales or 11% growth. Commercial pricing added another $19 million to top line.

接下來回顧公司整體表現。請翻到投影片 9。第一季銷售成長 15%（增加 8,100 萬美元）。較高的銷售量帶來約 6,200 萬美元的增量銷售，約為 11% 的成長。商業定價（commercial pricing）另為營收增加 1,900 萬美元。

The gross margin improved 520 basis points, primarily driven by the factors that I reviewed for Climate Solutions and Performance Technologies.

毛利率提升 520 個基點，主要由我在氣候解決方案與績效科技部分所回顧的因素所驅動。

SG&A increased $5 million, primarily due to higher employee and incentive compensation expenses. However, SG&A as a percentage of sales was 50 basis points lower than the prior year.

SG&A 增加 500 萬美元，主要因員工薪酬與獎酬（incentive compensation）費用上升。不過，SG&A 占銷售比重較去年下降 50 個基點。

I'm happy to report that adjusted EBITDA was very strong in the quarter with an increase of 91% or $38 million. This equates to an adjusted EBITDA margin of 12.9% or a 510 basis point improvement from the prior year. This also represents the sixth consecutive quarter of year-over-year margin improvement.

我很高興報告，本季調整後 EBITDA 非常強勁，成長 91%（增加 3,800 萬美元）。這相當於調整後 EBITDA 利潤率 12.9%，較去年提升 510 個基點。這也代表我們已連續第六個季度實現年對年利潤率改善。

Adjusted earnings per share, was $0.85, an increase of $0.53 or 166% from the prior year. Before moving to the balance sheet, I'd like to reiterate that the quarter will be stronger than expected. We now see our level loaded year for several reasons.

調整後每股盈餘為 0.85 美元，較去年增加 0.53 美元，成長 166%。在進入資產負債表之前，我想再次重申，本季表現將強於預期。我們現在認為今年將呈現較為平均的季度分布，原因有幾點。

First, Q1 revenue was higher than initially expected in our plan, including a faster ramp than anticipated in some areas such as data centers. Second, Performance Technologies is achieving 80/20 benefits earlier than expected, including the settlement of new commercial agreements and some retroactive adjustments that will not carry through to future quarters.

第一，第一季營收高於我們原先計畫的預期，包括某些領域（如資料中心）爬坡速度快於預期。第二，績效科技較預期更早取得 80/20 效益，包括新商業協議的結算，以及部分不會延續到未來季度的追溯性調整。

Third, raw material costs have been below our previous projections, which is favorable to Modine until we pass on the lower cost through our material pass-through agreements over the next few quarters.

第三，原物料成本低於我們先前的預測，這在我們於未來幾個季度透過原物料轉嫁（material pass-through）協議將較低成本轉嫁出去之前，對 Modine 是有利的。

As a result, a portion of the strong Q1 earnings was due to timing and the accelerated benefit from some of these items. In a few minutes, I'll further discuss how we're rolling these impacts and the strong operating performance into our full year outlook.

因此，第一季部分強勁獲利來自時點因素，以及上述部分項目效益的提前釋放。幾分鐘後，我將進一步說明我們如何將這些影響與強勁的營運表現納入全年展望。

Now moving to the cash flow metrics. Please turn to Slide 10. We generated $27 million of cash flow in the quarter, which is a significant improvement over the first quarter of fiscal '23. This was primarily driven by higher operating earnings, partially offset by higher working capital and higher payments for incentive compensation.

接著看現金流指標。請翻到投影片 10。本季我們創造 2,700 萬美元的現金流，較 2023 會計年度第一季顯著改善。這主要由較高的營運獲利所帶動，但部分被較高的營運資金占用以及較高的獎酬支付所抵銷。

Net debt of $265 million decreased $20 million this quarter. Net debt, coupled with strong earnings resulted in a leverage ratio of 1.1. This fiscal year we expect continued growth in free cash flow, driven by higher earnings and a continued focus on working capital.

淨負債為 2.65 億美元，本季減少 2,000 萬美元。淨負債搭配強勁獲利，使槓桿比率為 1.1。本會計年度我們預期自由現金流將持續成長，主要由更高獲利以及持續聚焦營運資金所驅動。

We anticipate the full year free cash flow will fall in our target range of 35% of sales. Modine's balance sheet remains quite strong, ready to support both organic growth and acquisition initiatives, as was demonstrated by the acquisition of Napps Technology that we announced in early July.

我們預期全年自由現金流將落在我們目標區間，即銷售額的 35%。Modine 的資產負債表仍相當強健，已準備好同時支持有機成長與併購計畫，正如我們在 7 月初宣布收購 Napps Technology 所展現的。

Now let's turn to our fiscal '24 outlook on Slide 11. As announced in the press release, (technical difficulty) sales and earnings -- Before I discuss the updated guidance, I want to review some modifications to how we report product group sales.

現在讓我們看第 11 頁的 2024 會計年度展望。如同新聞稿所宣布，（技術問題）銷售與獲利——在我說明更新後的指引之前，我想先回顧我們在產品群銷售揭露方式上的一些調整。

First, we've refined reporting of revenue by product group within the Climate Solutions segment in order to be more consistent with how we manage by General Manager in manufacturing location.

首先，我們在氣候解決方案（Climate Solutions）事業部內，精進了依產品群別的營收揭露方式，以更符合我們在製造據點依總經理（General Manager）進行管理的方式。

As part of 80/20, we're continuing to align our product groups and manufacturing with each of our general managers. As a result, we've recast revenue for fiscal '23 to be consistent with how the products are now reported in fiscal '24.

作為 80/20 的一部分，我們持續讓產品群與製造配置與各位總經理的管理範圍對齊。因此，我們已將 2023 會計年度的營收重新分類，以與 2024 會計年度目前的產品揭露方式一致。

There are no changes within Performance Technologies. But we made some minor revenue changes between data centers, HVAC&R and heat transfer products within Climate Solutions. We provided a summary table of the recast numbers in the appendix to this slide presentation.

Performance Technologies 事業部內沒有任何變更。但在氣候解決方案中，我們在資料中心、HVAC&R 與熱交換產品之間做了一些小幅的營收調整。我們在本簡報附錄中提供了重新分類後數字的彙總表。

For the prior fiscal year, the recast resulted in a $20 million, increase in data revenue, a $5 million increase in HVAC&R, offset by a reduction in revenue for heat transfer products. To be clear, there is no change to total Climate Solutions revenue rather just minor classification changes between the 3 product groups.

就前一會計年度而言，重新分類的結果為：資料中心營收增加 2,000 萬美元、HVAC&R 增加 500 萬美元，並由熱交換產品營收的減少所抵銷。需要說明的是，氣候解決方案的總營收沒有變動，只是在 3 個產品群之間做了些微的分類調整。

As I previously mentioned, our first quarter exceeded our expectations for several reasons, and this was certainly a factor leading to our improved outlook for the year.

如我先前提到的，我們第一季因多項原因而優於預期，這也確實是我們上調全年展望的因素之一。

In the Climate Solutions segment, we now expect data center revenue to grow 60% to 70%, a significant increase from our previous guidance. And we now anticipate data center revenue to be more than $270 million.

在氣候解決方案事業部，我們現在預期資料中心營收將成長 60% 至 70%，較先前指引大幅上調。我們也預期資料中心營收將超過 2.7 億美元。

Moving to HVAC&R, we expect revenues to grow in the low single-digits and have lowered the top end of this range as we remain cautious about ongoing weakness in the heating market. However, we anticipate this should be offset by very strong sales growth in school ventilation products.

至於 HVAC&R，我們預期營收將以低個位數成長，並在我們對供暖市場持續疲弱保持審慎的情況下，下調了該區間的上緣。不過，我們預期這將由校園通風產品非常強勁的銷售成長所抵銷。

With regards to heat transfer products, we now anticipate a sales decline in the low single-digits, which is a reduction from our previous guidance. This is primarily due to concerns over a general economic slowdown, especially in residential and commercial refrigeration applications.

就熱交換產品而言，我們現在預期銷售將以低個位數下滑，較先前指引有所下修。這主要是因為我們擔憂整體經濟放緩，尤其是在住宅與商用冷凍應用領域。

Also within heat transfer products, we're adjusting our projected ramp-up for sales to heat pump customers in Europe due to changes in regulations and incentives. We still anticipate this to be a high-growth market for us, but at a somewhat slower ramp rate.

此外，在熱交換產品方面，因法規與補貼誘因的變化，我們正在調整對歐洲熱泵客戶的銷售爬坡預估。我們仍預期這對我們而言將是高成長市場，但爬坡速度會稍微放緩。

Moving to Performance Technologies. We expect continued momentum from relatively stable markets and benefits from our 80/20 rollout. We expect Advanced Solutions growth to be in the 25% to 35% range, which did not change from last quarter. Growth is driven by program launches and continued demand for EV systems and components. We expect lower growth for liquid and air cooled products as we roll out 80/20 throughout the segment.

接著看 Performance Technologies。我們預期在相對穩定的市場中延續動能，並受惠於 80/20 的推行。我們預期 Advanced Solutions 的成長將落在 25% 至 35% 區間，與上季相同。成長動能來自專案啟動以及電動車（EV）系統與零組件的持續需求。隨著我們在該事業部全面推行 80/20，我們預期液冷與氣冷產品的成長將較低。

Market growth is expected to be somewhat offset by product rationalization as we continue to deemphasize lower-margin business. The product rationalization and associated lower revenue could result from negotiated program exits or from select divestitures.

市場成長預期將部分被產品精簡所抵銷，因為我們持續降低對低毛利業務的比重。產品精簡及其相關的較低營收，可能來自協商後退出某些專案，或來自特定資產處分。

Let's move to adjusted EBITDA. Again, the first quarter was much stronger than we anticipated based on many factors, including sales volume, material margins and operational improvements.

接著談調整後 EBITDA。同樣地，第一季表現遠優於我們預期，原因包括銷售量、材料毛利以及營運改善等多項因素。

Based on the recent results and market trends, we're raising our adjusted EBITDA outlook for the year. We now expect our fiscal '24 adjusted EBITDA to be in the range of $280 million to $295 million, up from $240 million to $260 million and representing an increase of 32% to 39% versus the prior year.

基於近期結果與市場趨勢，我們上調全年調整後 EBITDA 展望。我們現在預期 2024 會計年度調整後 EBITDA 將落在 2.8 億至 2.95 億美元區間，高於先前的 2.4 億至 2.6 億美元，並代表較前一年度成長 32% 至 39%。

Also, when looking at the midpoint of the earnings ranges, our new outlook represents a nearly $38 million increase. Again, much of this change is due to the performance in the first quarter and some of the Q1 benefits won't necessarily repeat in subsequent quarters, including the realization of retroactive commercial adjustments.

此外，若以獲利區間的中點來看，我們的新展望幾乎增加了 3,800 萬美元。同樣地，這項變動多數來自第一季的表現，而第一季的一些效益未必會在後續季度重複出現，包括追溯性的商業調整認列。

Based on this and our higher full year outlook, we now anticipate that the next 3 quarters will hover around $70 million versus the previous plan for a more back-end loaded year.

基於上述因素以及我們較高的全年展望，我們現在預期接下來 3 個季度將大致維持在約 7,000 萬美元左右，而非先前規劃的「後段較集中」的一年。

The second and third quarters could be somewhat below the $70 million quarterly average with Q4 potentially above the average.

第二與第三季可能會略低於每季 7,000 萬美元的平均水準，而第四季則可能高於平均。

Now that I've covered the very strong Q1 and associated sequential trends, I want to reiterate that our outlook assumes ongoing and very strong year-over-year improvement for the balance of the year.

在我說明了非常強勁的第一季以及相關的季對季趨勢之後，我想再次強調，我們的展望假設在今年剩餘期間仍將持續呈現非常強勁的年對年改善。

We anticipate that free cash flow will improve with the higher earnings outlook, with capital expenditures expected to be around $70 million. Our assumptions, including interest expense, taxes, depreciation and amortization are all included in the appendices attached to this presentation and our press release.

我們預期隨著獲利展望上調，自由現金流也將改善；資本支出預計約為 7,000 萬美元。我們的假設（包括利息費用、稅負、折舊與攤銷）皆已納入本簡報與新聞稿所附的附錄中。

To wrap up, we're extremely pleased with the first quarter results and how we've started fiscal '24. Our outlook remains strong. We're making progress towards our financial targets. And in many cases, we're trending well ahead of our initial transformation time line and goals.

總結來說，我們對第一季成果以及 2024 會計年度的開局感到非常滿意。我們的展望仍然強勁。我們正朝財務目標持續推進。而且在許多方面，我們的進度明顯超前於最初的轉型時程與目標。

I'm pleased to say that we're firmly on track with our transformation. But as Neil said, we're still in the early stages. This was a great quarter, but we still have plenty of work ahead of us, and we're quite confident in the entire Modine team.

我很高興地表示，我們的轉型正穩健按計畫進行。但如 Neil 所說，我們仍處於早期階段。這是一個很棒的季度，但我們前方仍有許多工作要做，而我們對整個 Modine 團隊非常有信心。

With that, we'll now take your questions.

接下來，我們將開始回答各位的提問。

(Operator Instructions) Our first question comes from the line of Matt Summerville with D.A. Davidson.

（接線生指示）我們的第一個問題來自 D.A. Davidson 的 Matt Summerville。

Obviously, a great quarter. A couple of thoughts. Just with respect to Performance Tech, can you maybe quantify to the extent you can, how much retroactive benefit that would be kind of more onetime in nature that you saw in the quarter that you would not expect to repeat necessarily looking forward?

顯然這是一個非常出色的季度。我有幾點想法。就 Performance Tech 而言，您是否可以在可揭露的範圍內量化一下，本季看到的追溯性效益中，有多少屬於較偏一次性的性質、未必會在未來重複出現？

Yes. In total -- so the total company, we estimate there is at least $10 million in the quarter of pull-ahead. Things we got earlier than we thought would happen plus some retroactive adjustments, and that's for the total company.

可以。以整體而言——就全公司來看，我們估計本季至少有 1,000 萬美元屬於「提前實現」的部分，也就是一些比我們原先預期更早發生的事項，加上一些追溯性調整；這是針對全公司。

As I look at it between PT and CS, I'd probably estimate that it's about 2/3, 1/3, about 2/3 of that coming in PT and 1/3 of that in Climate Solutions.

若在 PT 與 CS 之間拆分，我大概會估計約為 2/3、1/3，也就是其中約 2/3 來自 PT，約 1/3 來自氣候解決方案。

And then a follow-up. Data center business. Obviously, you had a pretty amazing first quarter here. I want to understand a little bit more about how you're approaching the high-performance computing market, the liquid cooling strategy, realizing you may have some current development paths going on here?

接著追問一下資料中心業務。顯然你們第一季表現相當驚人。我想更了解你們如何切入高效能運算市場、液冷策略；我理解你們目前可能有一些開發路徑正在進行。

But I guess from a timing standpoint, when should we expect Modine to be able to address that cross section of the market head on? And then could you give a little bit more some granularity around what incoming orders and backlog might look like specifically to data center, either year-on-year sequentially? Just whatever color you're willing to provide.

但從時程角度來看，我們應該何時預期 Modine 能夠正面切入該市場的交集領域？另外，能否就資料中心的新增訂單與在手訂單（backlog）提供更細的資訊，例如年對年或季對季的變化？任何你們願意提供的補充都可以。

Yes. Good question, Matt. Sure. We've seen a very healthy pipeline within data centers, right? And when we continue to build out our customer base and broaden our customer base, particularly around the colocation side, these orders -- potential orders that are in the pipeline, when they break, they make large swings, right?

好的。好問題，Matt。當然。我們在資料中心領域看到非常健康的商機管線（pipeline），對吧？而且當我們持續擴大客戶基礎、拓寬客戶群，特別是在機房代管（colocation）這一端時，這些在管線中的訂單——潛在訂單——一旦落地，往往會造成很大的波動，對吧？

So we don't -- we typically don't predict some of these larger orders until they actually cut over to POs and that's where you're starting to see some of that adjustment as this funnel continues to grow. More and more is transitioning through the tollgate process into purchase orders.

因此，我們通常不會在這些較大的訂單真正轉為採購訂單（PO）之前就去預測它們；而當這個漏斗持續擴大時，你開始看到一些調整。越來越多的案子正透過關卡（tollgate）流程轉換為採購訂單。

So we like that. We enjoy that, and we appreciate the work that we're doing with our customers there to help support them and meet this sustainability targets.

所以我們很喜歡這樣的狀況。我們樂見其成，也感謝我們與客戶在那裡所做的工作，協助支持他們並達成這些永續目標。

Relative to liquid cooling, we've been close to this. We're going to remain close to this. This has been something that Modine has participated in for over a decade. We understand the shift in the technology. But we also understand that there isn't a clear technology winner, whether that is going to be immersion cooling or liquid on chip cooling.

至於液冷，我們一直密切關注，未來也會持續密切關注。這是 Modine 參與超過十年的領域。我們理解技術的轉變，但我們也明白目前尚未出現明確的技術勝出者，無論是浸沒式冷卻（immersion cooling）或是晶片上液冷（liquid on chip cooling）。

And we want to understand where the market will continue to evolve. And as this market becomes more dynamic around liquid cooling, we're going to continue to observe to see where the greatest opportunity is for Modine to penetrate. And again, that can be through agreements or inorganic growth or organic growth. We are in a good position to do either.

而我們希望了解市場接下來會如何持續演進。隨著這個市場在液冷方面變得更具動態性，我們將持續觀察，看看對 Modine 而言最大的切入機會在哪裡。再說一次，這可以透過協議、非有機成長或有機成長來達成。我們具備良好條件可以採取任何一種方式。

And we'll move at the rate as the market adopts. As the market adopts, we'll make those adjustments accordingly. So we're very keen to the market. We understand it. Our customers understand it. Our customers look to Modine for these solutions, and we'll make the adjustments appropriately.

我們也會依市場採用的速度來推進。市場採用時，我們就會相應做出調整。因此我們對市場非常敏銳。我們了解市場；我們的客戶也了解。我們的客戶會向 Modine 尋求這些解決方案，而我們也會適當地做出調整。

And then, maybe I'll just sneak maybe one more. And just to kind of use a baseball analogy, how would you characterize what inning we're in within the 2 business segments with respect to generating the 80/20 benefits you fully intend to achieve within Climate and Performance?

接著，也許我再偷偷多問一個。用棒球的比喻來說，就 2 個事業部門而言，針對你們完全打算在 Climate 與 Performance 中達成的 80/20 效益，你會如何形容我們目前是在第幾局？

Yes. Good question, Matt. So in Climate Solutions, we're halfway through the first game of a 5-game series. And in Performance Technologies, we're just getting started. So the teams, they're organized appropriately. They've picked the markets that they want to grow in. They understand the strategic initiatives and objectives, and we've put in the right leadership team in order to execute on those objectives.

是的。好問題，Matt。就 Climate Solutions 而言，我們大概是在 5 戰 3 勝系列賽的第一場比賽上半段。而在 Performance Technologies，我們才剛開始。所以團隊已經適當地組織起來。他們選定了想要成長的市場，理解策略性倡議與目標，我們也配置了合適的領導團隊來執行這些目標。

So as you know, we started Climate Solutions 1 year ahead of Performance Technologies deliberately, and they're tracking right in line with what our expectations were with the financial targets that we put in place in New York last year.

如你所知，我們刻意讓 Climate Solutions 比 Performance Technologies 早 1 年啟動，而其進度與我們去年在紐約所設定的財務目標、以及我們的預期一致。

Our next question comes from the line of Chris Moore with CJS Securities.

下一個問題來自 CJS Securities 的 Chris Moore。

Couple of questions. Maybe just big picture on pricing. I know that you guys have raised prices aggressively over the past year or so up until at least recently. You talked about still being underpriced in many areas.

我有幾個問題。先從定價的大方向來看。我知道你們在過去一年左右（至少到最近）積極調漲價格。你們也提到在許多領域仍然定價偏低。

Just wondering, is that still the case? Is there specific areas that you could talk to there?

我想問，現在仍然是這樣嗎？是否有特定領域可以談談？

Good question. Yes, we continually go out and evaluate the marketplace in terms of where we're positioned with price, as you know, with -- in this inflationary environment and increases in metals and other commodities.

好問題。是的，我們會持續到市場上評估我們的價格定位；如你所知，在這種通膨環境下，金屬與其他大宗商品都在上漲。

We're often -- and regularly reassessing that and then having conversations with not only our customers, but our supply chain as well to improve those positions. So this is part of our business cycle, part of our business system, and it's how we operate. So frequently is the -- would be the answer to that question.

我們經常——而且是定期——重新評估，並與不僅是客戶、也包括供應鏈進行對話，以改善這些定位。因此這是我們商業循環的一部分、也是我們營運系統的一部分，這就是我們的運作方式。所以答案是：非常頻繁。

So my understanding is that auto OEMs have multiple vendor relationships with suppliers like Modine. However, they often sole-source a given platform. So assuming that factor, do you see situations where the OEM is -- might be reluctant to allocate the internal engineering resources necessary to get another vendor spec'd in, even though your pricing is picking up significantly?

我的理解是，汽車 OEM 與像 Modine 這樣的供應商通常會維持多家供應商關係。不過，他們往往會對某一個平台採取單一來源供應。基於這個因素，你是否看到一些情況：即使你們的定價顯著上升，OEM 仍可能不願意投入必要的內部工程資源，去讓另一家供應商通過規格認證（spec'd in）？

It's a good question, Chris. I think OEMs have -- all OEMs have different strategies. They could have dual supply chains, single supply chain, triple. That depends on how they want to balance the strategic -- or supply chain risk, if there is any, whether that's an issue with a factory output production or it's an issue with logistics or maybe even price.

這是個好問題，Chris。我認為 OEM——所有 OEM——都有不同策略。他們可能採用雙供應鏈、單一供應鏈或三重供應鏈。這取決於他們想如何平衡策略性——或供應鏈風險（如果存在的話），不論是工廠產出/生產的問題、物流問題，甚至可能是價格問題。

I think they all have their own unique strategy. But there's -- that element that you just described, and there's also an element of we've seen a conversion over to EV. And as we look at opportunities on the internal combustion engine side, and maybe there's adjustments there commercially that are made, I think you also have to consider whether or not it's worth the time and effort and energy in order to maybe find additional suppliers to provide that product, knowing that the platform is going to -- and it's going to convert to EV anyway.

我認為他們各自都有獨特策略。除了你剛描述的那個因素之外，還有一個因素是：我們看到市場正在轉向 EV。當我們看內燃機端的機會時，或許在商業條件上會做一些調整；同時你也必須考量，是否值得投入時間、努力與精力去尋找額外供應商來提供該產品，因為該平台終究會——而且反正也會——轉換成 EV。

And maybe just last one for me. So it sounds like this 25 EV program wins $150 million. I'm just trying to understand over what time frame or are you kind of looking at that?

最後一個問題。聽起來這 25 個 EV 專案得標合計是 1.5 億美元。我想了解這是以多長的時間範圍來看？你們是怎麼看這件事的？

Yes. It's going to be a significant ramp. So -- and we - the last year was about $50 million or so in EV business. And we estimate that, that will grow at 40% to 50% compound rate. So if you kind of extend that out, you get a feel for when you think we'll be hitting that run rate.

是的。這會是一個顯著的爬坡（ramp）。去年我們的 EV 業務大約是 5,000 萬美元左右。我們估計它將以 40% 到 50% 的複合成長率成長。所以如果你把這個往外延伸，就能大致感受到我們何時會達到那個運行速率（run rate）。

Our next question comes from the line of Jeff Van Sinderen with B. Riley Securities.

下一個問題來自 B. Riley Securities 的 Jeff Van Sinderen。

Let me add my congratulations on the strong metrics and overall progress. If we could look back to the data center segment for a minute, just wondering how fast that segment could grow? In other words, how much capacity do you have to meet demand if it happens to exceed your internal plan kind of ahead of expectations?

我也想對強勁的指標與整體進展表示祝賀。回到資料中心部門談一下，我想知道該部門能以多快速度成長？換句話說，如果需求超出你們內部計畫、比預期更早發生，你們有多少產能可以滿足？

Jeff, good question. We're evaluating our capacity and we're looking at redundancy, and we're making investments there. So as you know, 2 years ago, primarily most of the data center output and revenue came from the U.K. out of one facility.

Jeff，好問題。我們正在評估產能、也在看備援（redundancy），並在那方面進行投資。如你所知，兩年前資料中心的大部分產出與營收主要來自英國的一座工廠。

And since then, we've expanded to 2 facilities in the U.K. We've retooled an existing manufacturing facility in Spain to support data center growth for Continental Europe. We've built in -- we've modified a facility in Virginia to produce our chillers for North America.

從那之後，我們在英國擴增到 2 座工廠。我們也將西班牙一座既有製造工廠重新整備（retooled），以支援歐洲大陸的資料中心成長。我們在——我們也改造了維吉尼亞的一座工廠，為北美生產我們的冷水機（chillers）。

So we added additional capacity there, and we're adding capacity in Mississippi as well. So we're across 5 different footprints. And we have the capacity to continue to grow with the rates. We have more capacity than the actual stated percentage of growth year-over-year.

因此我們在那裡增加了額外產能，也正在密西西比增加產能。所以我們分布在 5 個不同據點。我們有能力隨著成長速度持續擴張。我們的產能高於年對年所宣稱的成長百分比。

So I'm not concerned about capacity. It's just a matter of being able to transition the conversation that we have with our customers and provide the products and the engineering solutions. Capacity in terms of factory, we're in a good position.

所以我不擔心產能。重點只是能否把我們與客戶的對話順利轉化，並提供產品與工程解決方案。就工廠產能而言，我們處於良好位置。

And then maybe if you could delve a little bit more into what you're seeing in the school market for indoor air quality? Just a little bit of update there?

另外，你能否再深入談談你們在學校室內空氣品質市場看到的情況？給我們一點更新？

Yes, that's a great business for us. We continue to gain share there in that space. We've -- we're working on the process of actually dedicating a facility to that. There's enough volume now that we can dedicate an entire facility to that.

是的，那對我們來說是很棒的業務。我們在那個領域持續提升市占。我們——我們正在推進實際上為該業務專門配置一座工廠的流程。現在的量已經足夠，讓我們可以把整座工廠專門用於此。

So we're getting that positioned and ready to grow. We see this outlook of growth at this rate for the next couple of years as well. If -- the funding is continuing to flow through into the system, they're making the decisions, they're upgrading the infrastructure. And we put ourselves in some pretty good positions with our reps and distributors to fulfill the needs of the customers.

所以我們正在把它定位好、準備好成長。我們也看到未來幾年仍會以這樣的速度成長。如果——資金持續流入體系，他們正在做決策、升級基礎設施。而我們也透過業務代表與經銷商，讓自己處於相當有利的位置，以滿足客戶需求。

And then I had sort of a P&L question. On the gross margin that came in substantially better than we expected, which we know is going to focus during the current phase of transformation.

我還有一個損益表（P&L）方面的問題。本季毛利率顯著優於我們預期，而我們知道在目前的轉型階段，這會是關注焦點。

Can you maybe speak to whether you believe the level of gross margin we saw in Q1 is sustainable? I know that you mentioned some of the -- maybe a little bit of not linear progression over the next few quarters and the revenues. Just wondering how we should think about gross margin over the remainder of the year?

你能否談談你是否認為我們在 Q1 看到的毛利率水準具有可持續性？我知道你提到接下來幾季收入可能不會線性推進。想請教我們應該如何看待今年剩餘期間的毛利率？

Yes.. I mentioned to Matt's question, we estimate at least about $10 million in Q1 of good things that are more -- that were pulled ahead. If we look at having an average in the next few quarters around $70 million, plus or minus, it's about -- probably about 1 point of margin.

是的。就我對 Matt 的問題所提到的，我們估計 Q1 至少約有 1,000 萬美元的正面因素，屬於——被提前拉進來的部分。如果我們看接下來幾季平均大約 7,000 萬美元上下（正負一些），那大概——約等於 1 個百分點的毛利率。

So I think for sure, the gross margin is driving the earnings. We talked about that 80/20 is going to come through at the gross profit line. It wasn't an SG&A story and we expect that to remain elevated. But going like from Q1 forward, I would say it will remain elevated, but probably about 1 point or so below where we were in Q1.

所以我認為可以確定的是，毛利率正在推動獲利。我們談過 80/20 的效益會在毛利（gross profit）那一行體現；這不是 SG&A 的故事，而我們預期毛利率會維持在較高水準。但從 Q1 往後來看，我會說它會維持偏高，但可能會比 Q1 低大約 1 個百分點左右。

Obviously, in my comments, I think ramping towards the latter part of the year. As Neil said, we're still early phases of 80/20. So super hard to repeat all the one-timers benefits we've got in Q1, but then ramping again later in the year. And I'd say at about 1 point probably lower for the next couple of quarters.

顯然，在我的評論中，我認為會在今年後半段逐步拉升。如 Neil 所說，我們仍處於 80/20 的早期階段。因此，要重複我們在第一季取得的所有一次性效益非常困難，但之後在今年稍晚會再度拉升。而我會說，接下來幾個季度大概會低約 1 個百分點。

(Operator Instructions) Our next question comes from the line of Tim Moore with EF Hutton.

（接線員指示）我們的下一個問題來自 EF Hutton 的 Tim Moore。

Really a very impressive (inaudible) raise for the quarter. I was going to drill on to data centers, to other analysts speaking to it, most of my questions. But just maybe following up one more question on data centers, given the increased guidance and the sales growth coming in maybe 4x what you expected.

本季的（聽不清）上調真的非常令人印象深刻。我原本想深入問資料中心，其他分析師也在談這個，所以大部分問題都被問過了。不過也許再追問一個資料中心的問題：鑑於指引上調，以及銷售成長可能達到你們原先預期的 4 倍。

Just back there on the capacity, you explained that there's plan to visit the Virginia site next week for your plant to work. Are you getting enough labor there? And for the colocation center projects, I mean, how much lead time do you need on that? And I'm also just wondering, given the rapid growth of it this year, do you think that pulls in a little bit of the sales growth from next year? Or is this incremental market share wins, do you think?

回到產能這塊，你們解釋說下週計畫去維吉尼亞據點，讓你們的工廠投入運作。那邊人力夠嗎？另外，針對共置（colocation）資料中心專案，你們需要多少前置時間？我也想知道，鑑於今年成長這麼快，你們覺得這會不會把明年的部分銷售成長提前拉到今年？還是你們認為這是額外的市占率勝出（incremental market share wins）？

Yes. Good question. We have a pretty broad labor force in [BV], as you know, the Rockbridge facility where we produced the chillers. We've been able to secure the amount of good work and assembly workers there and pipe fitters that help us with that.

是的。好問題。我們在 [BV] 有相當廣泛的人力資源，如你所知，Rockbridge 廠區是我們生產冷水機（chillers）的地方。我們已能在那裡確保足夠且優秀的作業與組裝人員，以及協助我們的配管技師（pipe fitters）。

We also have a facility in a factory that employs several hundred people, that's 10 miles away and we can flex labor back and forth. So if heating volumes were down, you could arguably flex the workforce in Rockbridge as well since we have multiple facilities in that campus and in that county. So labor isn't a concern for us at the moment.

我們也有另一個廠房設施，距離約 10 英里，雇用數百名員工，我們可以在兩邊彈性調度人力。因此，如果供暖（heating）量下滑，理論上也可以彈性調整 Rockbridge 的人力，因為我們在該園區與該郡內有多個設施。所以目前人力對我們而言不是問題。

The second question was - yes, so relative to visibility, typically, we see these -- we start engagements with our customers and we start to move them through our pipeline. And it could take anywhere from the initial conversation to the point where we actually get an order of 6 to 12 months.

第二個問題是——是的，關於能見度，通常我們會看到這些——我們會先與客戶開始接觸，並推動他們進入我們的管線流程。從最初對話到我們實際拿到訂單，可能需要 6 到 12 個月不等。

You already get air quality, and I was going to -- I've been talking about that with all the [mild] buyers and the smoke pollution. But maybe I'll just switch gears. I mean, given air quality was up so strong and we know you probably have orders for the schools.

你已經提到空氣品質，我原本想——我一直在跟所有的 [mild] 買家談這件事以及煙霧污染。不過我可能換個方向。也就是說，鑑於空氣品質業務成長非常強勁，而且我們知道你們可能也有學校的訂單。

But just my other question is really around acquisitions, given that you've kind of -- given that sales acquisition goal. Have you seen for your Climate Solutions acquisition pipeline, the asking prices become more reasonable over the last few months? Or are they still pretty lofty by the sellers?

但我另一個問題其實是關於併購。鑑於你們某種程度上——鑑於銷售併購目標。你們在氣候解決方案（Climate Solutions）的併購管線上，是否看到過去幾個月要價變得更合理？還是賣方的要價仍然相當高？

No, that's a good question. It depends on the technology. It depends in terms of what the technology that they have to offer and at what level of adoption rate is or if it's specified or spec'd into the product that's being consumed today by the end users.

不，這是個好問題。這取決於技術。取決於他們提供的是什麼技術，以及其採用率處於什麼水準，或該技術是否已被指定（specified）或寫入規格（spec'd）並納入目前終端用戶正在使用的產品之中。

So certainly, there's some hot markets as we grow out our inorganic pipeline. And I'll tell you, I'm really pleased with what the team has been able to do. As we've got multiple opportunities at different levels and different gates, we're going to be cautious, and we're going to do the right things for the business as long as it aligns with the strategy.

所以當然，隨著我們擴大外延式（inorganic）管線，確實有一些熱門市場。我可以告訴你，我對團隊能做到的成果非常滿意。我們在不同層級、不同關卡上都有多個機會；我們會保持謹慎，只要符合策略，我們就會做對公司最有利的事。

But certainly, we're starting to see some areas, like you just described, into air quality where you do see some of these elevated rates.

但確實，我們開始在一些領域看到你剛剛描述的情況，例如空氣品質，你會看到其中一些偏高的估值水準。

Our next question comes from the line of Matt Summerville with D.A. Davidson.

我們的下一個問題來自 D.A. Davidson 的 Matt Summerville。

I apologize if you touched on this. But just back to the data center side of things, are you seeing pretty similar growth in both colocation and hyperscale markets?

如果你們已經提到過我先道歉。不過回到資料中心這邊，你們在共置（colocation）與超大規模（hyperscale）市場是否都看到相當類似的成長？

And are you still on the hyperscale side just doing business with the one large player? And do you think doors may be opening to some of the other hyperscalers?

另外，在超大規模這一側，你們目前仍只與那一家大型客戶做生意嗎？你們認為是否可能會對其他超大規模業者打開大門？

100% yes, doors will be opening to other hyperscalers. And the business mix is healthy on both sides. So we're seeing the growth in colocation, and we're seeing the growth with our hyperscalers customers as well. That combination of the 2 is why we're increasing our year-over-year objectives and targets in data centers.

百分之百是的，會對其他超大規模業者打開大門。而且兩邊的業務組合都很健康。所以我們看到共置市場的成長，也看到我們超大規模客戶的成長。正是這兩者的組合，讓我們提高資料中心業務的年對年目標與指標。

And then I think -- I can't remember which one of you guys mentioned it. But I thought I heard that out of the 5 growth opportunities, right, you guys talked about a lot of the EV battery, it's data center, it's indoor air, it's genset and then European heat pump.

然後我想——我不記得你們哪一位提到的。但我好像聽到，在 5 個成長機會中，對吧，你們談了很多電動車電池、資料中心、室內空氣、發電機組（genset），以及歐洲熱泵。

And it sounds like that the growth rate on the latter might be decelerating a bit, whereas in some of the others, it sounds like it may be accelerating. So what's driving the pace of -- the rate of change on the European heat pump side of things? And does that give you pause with some of the capacitation you've been undertaking there?

聽起來最後那一項的成長率可能正在稍微放緩，而其他一些領域似乎可能在加速。所以，歐洲熱泵這邊變化速度——變動率的驅動因素是什麼？而這是否會讓你們對在那邊正在進行的產能擴充（capacitation）有所猶豫？

We're going to continue to grow our Serbia facility and factory with CapEx. And we're going to continue to install machines and dedicate lines to the heat pump growth targets that we expect. So we're going to continue to invest in Serbia and build out that facility.

我們會持續以資本支出（CapEx）擴建我們在塞爾維亞的設施與工廠。我們也會持續安裝設備，並配置專用產線，以達成我們預期的熱泵成長目標。因此，我們會持續投資塞爾維亞並擴建該設施。

The thing that gives us a little bit of a pause is the turmoil in the European market relative to what the priority is on regulation. As you know, there was a strong movement and there was a lot of followership behind moving away from natural gas in Europe.

讓我們稍微有點猶豫的是，歐洲市場在法規優先順序方面的動盪。如你所知，歐洲曾有一股強烈的趨勢，並且有很多人支持遠離天然氣。

And there were regulations and incentives that were deployed to do just that. But recently, we've seen a different priority that's got some traction in Europe around reducing GWP. And in order to do that, you have to use a different refrigerant. And a lot of the heat pump manufacturers aren't there yet to move at the same rate.

也因此推出了相關法規與激勵措施來達成這件事。但最近我們看到，歐洲出現另一個取得一定支持的優先事項：降低 GWP（全球暖化潛勢）。而要做到這點，就必須使用不同的冷媒。許多熱泵製造商目前還沒準備好以同樣的速度轉換。

So it's almost like we slammed the accelerator to move forward to deploy heat pumps in the European market and then we hit the brake at the same time relative to regulations around GWP. So we know that the European Commission will be getting together after the summer recess, sometime likely in September.

所以這幾乎就像我們猛踩油門推動在歐洲市場部署熱泵，但同時又因為 GWP 相關法規而踩了煞車。我們知道歐盟執委會在夏季休會後會再度開會，時間可能在 9 月左右。

And I think as soon as they work that out, we'll get back to the levels of key pump adoption that we had predicted. But for now because there seems to be a little bit of conflict between the 2 agencies there. We're launching this and observing.

我認為一旦他們把這件事理順，我們就會回到我們原先預測的熱泵採用水準。但目前因為那裡兩個機構之間似乎有些衝突，我們一邊推進、一邊觀察。

I am showing no further questions at this time. I would now like to turn the conference back to Kathy Powers for closing remarks.

目前沒有其他問題。我現在想把電話會議交回給 Kathy Powers 進行結語。

Thank you, and thanks, everybody, for joining us this morning. The replay will be available through our website in about 2 hours. And we hope everybody has a great day. Thanks.

謝謝，也謝謝各位今天早上加入我們。約 2 小時後可透過我們的網站收聽重播。祝大家有美好的一天。謝謝。

And this concludes today's conference. You may disconnect your lines at this time. Thank you for your participation.

今天的電話會議到此結束。您現在可以掛斷電話線。感謝您的參與。