Modine Manufacturing Co (MOD) 2025 Q4 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Modine's fourth-quarter and fiscal year 2025 earnings conference call. (Operator instructions). As a reminder, this conference call is being recorded.

女士們、先生們，早安，歡迎參加 Modine 第四季和 2025 財年財報電話會議。（操作員指令）。提醒一下，本次電話會議正在錄音。

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

現在，我想將電話轉給主持人、財務主管和投資者關係副總裁凱西·鮑爾斯女士。

Thank you. You may begin.

謝謝。你可以開始了。

Good morning, and welcome to our conference call to discuss Modine's Fourth Quarter and Full Year Fiscal 2025 Results. I'm joined by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer.

早上好，歡迎參加我們的電話會議，討論 Modine 2025 財年第四季和全年業績。與我一起出席的還有我們的總裁兼執行長 Neil Brinker 和我們的執行副總裁兼財務長 Mick Lucareli。

The slides that we will be using for today's presentation are available on the Investor Relations section of our website, modine.com. On slide 3 of the deck 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.

我們今天簡報中使用的幻燈片可在我們網站 modine.com 的「投資者關係」部分找到。幻燈片第三張是我們關於前瞻性陳述的通知。本次電話會議將包含我們的收益報告以及我們公司向美國證券交易委員會提交的文件中概述的前瞻性陳述。

With that, I'll turn the call over to Neil.

說完這些，我會把電話轉給尼爾。

Thank you, Kathy, and good morning, everyone. We closed out the year with a strong fourth quarter performance. This was another record year for Modine with the highest reported sales and profitability in our history for the third year in a row. For the past three years, our strategy has been to shift our business mix to drive top line growth and expand EBITDA margin. We've made significant investments in order to spur this growth. And for the first time in our history, the Climate Solutions segment reported higher revenues than Performance Technologies.

謝謝你，凱西，大家早安。我們以強勁的第四季業績結束了這一財年。這是 Modine 又一個創紀錄的一年，連續第三年創下歷史最高銷售額和獲利水準。過去三年來，我們的策略一直是轉變業務組合，以推動營收成長並擴大 EBITDA 利潤率。為了促進這一成長，我們進行了大量的投資。在我們的歷史上，氣候解決方案部門的收入首次高於性能技術部門的收入。

The rate of earnings growth has far outpaced revenue growth, driven by 80/20 and the favorable business mix shift. This year, our adjusted EBITDA was up 25% on a 7% sales increase. Mick will cover our fourth quarter financial results and provide our outlook for fiscal '26. But first, I'd like to reflect on some of our accomplishments over the past year.

在 80/20 和有利的業務組合轉變的推動下，獲利成長率遠遠超過了收入成長率。今年，我們的調整後 EBITDA 成長了 25%，銷售額成長了 7%。米克將介紹我們第四季度的財務表現並提供 26 財年的展望。但首先，我想回顧一下我們過去一年所取得的一些成就。

Please turn to slide 5. Climate Solutions delivered another outstanding year. The segment reported a 30% increase in revenues including the benefit of the Scott Springfield acquisition and a 45% increase in adjusted EBITDA. This resulted in a 220 basis point improvement in adjusted EBITDA margins to 21%.

請翻到投影片 5。氣候解決方案部門又取得了優異的成績。該部門報告稱，包括收購 Scott Springfield 帶來的收益在內，營收成長了 30%，調整後的 EBITDA 成長了 45%。這使得調整後的 EBITDA 利潤率提高了 220 個基點，達到 21%。

Sales growth in the segment was driven by data centers, which were up 119% to $644 million. That Springfield data center sales were $197 million in fiscal 2025, meaning that about half of the increase came from organic data center growth.

該部門的銷售額成長主要由資料中心推動，成長 119%，達到 6.44 億美元。2025 財年斯普林菲爾德資料中心的銷售額為 1.97 億美元，這意味著約一半的成長來自資料中心的有機成長。

Most of the organic growth was in North America, and demand for our chillers continues to be extremely strong. The past quarter, we announced an exciting business with a new cloud customer who is building out AI infrastructure for a new hyperscaler. This is an important win for us as this is planned to be a multiphase multi-location project. Because of this and other orders for chillers in North America, we are increasing production capacity both at our Rockbridge Virginia facility and in Grenada, Mississippi.

大部分有機成長發生在北美，對我們的冷水機組的需求持續強勁。上個季度，我們宣布與一家新的雲端客戶達成了一項令人興奮的業務，該客戶正在為一家新的超大規模企業建立人工智慧基礎設施。這對我們來說是一個重要的勝利，因為這計劃是一個多階段、多地點的專案。由於這項訂單以及北美其他冷水機組的訂單，我們正在增加弗吉尼亞州羅克布里奇工廠和密西西比州格林納達工廠的生產能力。

In Grenada, we are adding new production lines for the chillers and end-of-line testing capabilities. This is primarily in response to orders in hand and will also support growth for opportunities in our pipeline. We're also excited to launch a new modular data center cooling solution and are preparing to take our first order in North America.

在格林納達，我們正在增加新的冰水機組生產線和生產線末端測試能力。這主要是為了回應手頭上的訂單，也將支持我們通路中的機會的成長。我們也很高興推出新的模組化資料中心冷卻解決方案，並準備在北美接受我們的第一份訂單。

The powerful combination of Airedale Modine data center cooling solutions incorporated into a modular approach allow us to address the market's need for high-density compute infrastructure that's flexible, scalable, cost-effective, energy-efficient and can be deployed rapidly to meet the evolving demand for customers.

Airedale Modine 資料中心冷卻解決方案與模組化方法的強大組合使我們能夠滿足市場對高密度運算基礎設施的需求，該基礎設施靈活、可擴展、經濟高效、節能，並且可以快速部署以滿足客戶不斷變化的需求。

And finally, we are making progress on our India expansion and are on track to launch production in Q2. We are actively quoting for multiple customers as we plan to service Southeast Asia and the Middle East for this location. Data centers have been a focus of our investment for some time, but we're also working to grow our commercial indoor air folding and heating businesses.

最後，我們在印度的擴張計劃正在取得進展，並預計在第二季開始生產。我們正在積極為多個客戶提供報價，因為我們計劃在此地點為東南亞和中東提供服務。資料中心一直是我們投資的重點，但我們也在努力發展商業室內空氣折疊和加熱業務。

We recently completed the acquisition of AbsolutAire, a heating products company with a complementary product line and distribution channel to our own. Our business development team is also working on other opportunities for bolt-on acquisitions (technical difficulty). There's a great deal of activity in the Climate Solutions segment, and the key to our success will be executing on all the growth initiatives in front of us.

我們最近完成了對 AbsolutAire 的收購，這是一家暖氣產品公司，其產品線和分銷管道與我們互補。我們的業務開發團隊也正在尋找其他附加收購的機會（技術難度）。氣候解決方案領域有大量活動，我們成功的關鍵在於執行所有擺在我們面前的成長計畫。

Please turn to page 6. The Performance Technologies segment delivered a strong fourth quarter performance despite challenging market conditions. The segment reported a 15% adjusted EBITDA margin in the fourth quarter resulting in a 13.5% adjusted EBITDA margin for the fiscal year, a 200 basis point year-over-year improvement. Our vehicular markets have been an extended downturn that is currently projected the last several more quarters.

請翻到第 6 頁。儘管市場環境充滿挑戰，但性能技術部門第四季仍取得了強勁的業績。該部門第四季度調整後 EBITDA 利潤率為 15%，導致本財年的調整後 EBITDA 利潤率為 13.5%，年增 200 個基點。我們的汽車市場一直處於長期低迷狀態，目前預計這種狀況還將持續數個季度。

In addition, we are experiencing delays in the launch and ramp of electric vehicle programs using our EV systems products with further uncertainty ahead. This is causing us to lower our expectations for near-term growth for the Advanced Solutions product group. In response, we are making several changes to our business.

此外，使用我們的電動車系統產品的電動車專案的啟動和推廣也遇到了延遲，未來還有進一步的不確定性。這導致我們降低對高階解決方案產品組近期成長的預期。作為回應，我們正在對我們的業務做出一些改變。

First, we had previously announced the change of our product groups in the segment and are moving forward with that, but are now pivoting to two groups rather than three. Heavy-duty equipment will include off-highway and stationary power products and on-highway applications will include automotive, commercial vehicle and specialty vehicle products for both ICE and EV powertrain.

首先，我們之前已經宣布了該領域產品組的變更，並且正在推進這一變更，但現在將轉向兩組而不是三個。重型設備將包括非公路和固定動力產品，公路應用將包括用於 ICE 和 EV 動力系統的汽車、商用車和特殊車輛產品。

Next, we are taking a renewed critical look at the business processes to streamline operations and lower costs. This involves further cost reductions throughout PT with redeployment of key resources to open positions and climate solutions wherever possible. These actions, along with the simplified org structure will provide better focus on our customers and end markets while reducing operating costs, allowing us to continue improving margins during this downturn leading to even greater conversion once the markets recover.

接下來，我們將重新審視業務流程，以簡化營運並降低成本。這涉及進一步降低整個 PT 的成本，並儘可能將關鍵資源重新部署到空缺職位和氣候解決方案中。這些措施以及簡化的組織結構將使我們更專注於客戶和終端市場，同時降低營運成本，使我們能夠在經濟低迷時期繼續提高利潤率，並在市場復甦後實現更高的轉換率。

It is challenging to improve margins on flat or lower revenue, but that's exactly what we've been doing in the PT segment. Since we started on this journey three years ago, we've improved adjusted EBITDA margins by 800 basis points on flat revenue.

在收入持平或下降的情況下提高利潤率是一項挑戰，但這正是我們在 PT 領域一直在做的事情。自三年前開始這一征程以來，我們在收入保持不變的情況下將調整後的 EBITDA 利潤率提高了 800 個基點。

We are making great progress towards the EBITDA margin targets introduced at our Investor Day last September and we are not backing away from those targets despite these challenging and uncertain market conditions.

我們正在朝著去年 9 月投資者日提出的 EBITDA 利潤率目標邁進，儘管市場條件充滿挑戰和不確定性，但我們不會放棄這些目標。

During this period of heightened global uncertainty and trade concerns, we are focusing on controlling what we can and taking decisive actions where necessary. It is difficult to predict the impact of tariffs on our supply chain as well as on our customers in the broader economic environment. Our market position is strengthened by our global manufacturing footprint and local-for-local approach.

在全球不確定性和貿易擔憂加劇的時期，我們正致力於控制我們所能控制的範圍，並在必要時採取果斷行動。很難預測關稅對我們的供應鏈以及更廣泛的經濟環境中的客戶的影響。我們的全球製造足跡和在地化方法增強了我們的市場地位。

In addition, our supply chain team has navigated these hurdles in the past, and we will continue to refine their sourcing strategies to keep us cost competitive. It is clear that the execution of our strategic plans and the investments to grow in key markets have resulted in our third consecutive year of record performance, while equally setting the stage for better things to come.

此外，我們的供應鏈團隊過去已經克服了這些障礙，我們將繼續改進他們的採購策略，以保持我們的成本競爭力。顯然，我們戰略計劃的實施和在關鍵市場的成長投資使我們連續第三年創下創紀錄的業績，同時也為未來更好的發展奠定了基礎。

With that, I'll turn the call over to Mick.

說完這些，我會把電話轉給米克。

Thanks, Neil, and good morning, everyone. Please turn to slide 7 to review the Q4 segment results. Climate Solutions delivered another strong quarter. with a 28% increase in sales, a 48% improvement in adjusted EBITDA and an adjusted EBITDA margin of 21.4%. Data center sales grew $69 million or 80% from the prior year, driven by higher North American sales and the Scott Springfield acquisition.

謝謝，尼爾，大家早安。請翻到投影片 7 查看第四季分部業績。氣候解決方案部門又度過了一個強勁的季度，銷售額成長了 28%，調整後 EBITDA 成長了 48%，調整後 EBITDA 利潤率為 21.4%。受北美銷售額成長和 Scott Springfield 收購的推動，資料中心銷售額比上年增長 6,900 萬美元，即 80%。

HVAC sales rose by $21 million or 27%, driven by a surge in late season demand for heating products and improvements across indoor air quality and refrigeration products. Fee transfer product sales declined 11% or $12 million due to lower volume to commercial and residential HVAC and commercial refrigeration customers.

受暖氣產品季末需求激增以及室內空氣品質和冷氣產品的改善推動，HVAC 銷售額成長了 2,100 萬美元，增幅為 27%。由於商業和住宅 HVAC 以及商業冷凍客戶銷售下降，費用轉移產品銷售額下降 11% 或 1200 萬美元。

Overall, we're very pleased with Climate Solutions strong earnings and conversion, which resulted in a 290 basis point improvement in adjusted EBITDA margin to 21.4%. This quarter completed another great year for Climate Solutions. We anticipate continued revenue and earnings growth in the new fiscal year. And as Neil said, our business development team is actively pursuing additional acquisitions.

總體而言，我們對氣候解決方案強勁的獲利和轉換率感到非常滿意，這使得調整後的 EBITDA 利潤率提高了 290 個基點，達到 21.4%。本季度，氣候解決方案公司又迎來了輝煌的一年。我們預計新財年的營收和獲利將持續成長。正如尼爾所說，我們的業務開發團隊正在積極尋求進一步的收購。

Please turn to slide 8. As we anticipated, Performance Technologies delivered strong sequential earnings and margin improvement despite weakness we are experiencing across most of our end markets. Foreign exchange rates were an additional headwind this quarter, negatively impacting sales by nearly $8 million or 2%.

請翻到第 8 張投影片。正如我們所預期的那樣，儘管我們的大多數終端市場都表現疲軟，但 Performance Technologies 仍實現了強勁的連續獲利和利潤率成長。外匯匯率是本季的另一個不利因素，對銷售額產生了近 800 萬美元（2%）的負面影響。

Advanced Solutions sales were lower by 12% or $4 million driven by a decline in EV auto and EVantage system sales partially offset by higher sales to specialty vehicle customers. Liquid cooled application sales decreased 7% or $8 million due to the previously mentioned lower end market demand.

先進解決方案銷售額下降 12% 或 400 萬美元，原因是電動車和 EVantage 系統銷售額下降，但特種車輛客戶銷售額增加部分抵消了這一影響。由於前面提到的低端市場需求，液冷應用銷售額下降了 7% 或 800 萬美元。

Lastly, Air-Cooled application sales were lower by 13% or $22 million, also driven by market dynamics. Partially offsetting the lower market demand for our air cooled product was a 29% increase with GenSet customers. Adjusted EBITDA improved 5% from the prior year despite the lower sales, adjusted EBITDA margin increased 220 basis points.

最後，空氣冷卻應用銷售額下降了 13% 或 2,200 萬美元，這也是受到市場動態的影響。發電機組客戶數量增加了 29%，部分抵消了我們風冷產品市場需求的下降。儘管銷售額下降，但調整後的 EBITDA 較上年同期成長了 5%，調整後的 EBITDA 利潤率增加了 220 個基點。

This segment is clearly benefiting from the proactive restructuring and other cost initiatives taken earlier in the year. As Neil mentioned, we're reorganizing this business and taking further actions to simplify the org structure and reduce costs. We expect these actions to generate more than $15 million in annual savings as we continue to reallocate our costs and resources to the highest growth businesses.

該部門顯然受益於今年稍早採取的主動重組和其他成本措施。正如尼爾所說，我們正在重組這項業務，並採取進一步措施簡化組織結構並降低成本。隨著我們繼續將成本和資源重新分配給成長最快的業務，我們預計這些措施每年將節省超過 1500 萬美元。

To wrap up, Performance Technologies segment achieved another year of earnings improvement and significant margin expansion. Modine's 80/20 approach is a critical element of these results and we will lean on these principles to drive continued improvement in the upcoming fiscal year. Despite the difficult market conditions and uncertainties around the global trade situation, we anticipate higher margins and earnings for this segment in fiscal '26.

總而言之，性能技術部門又取得了一年的獲利成長和利潤率大幅提升。Modine 的 80/20 方法是這些結果的關鍵因素，我們將依靠這些原則來推動即將到來的財政年度的持續改進。儘管市場環境艱難且全球貿易狀況不確定，但我們預計 26 財年該部門的利潤率和收益將會更高。

Now let's review total company results. Please turn to slide 9. Fourth quarter sales increased 7%, driven by revenue growth in Climate Solutions, the Climate Solutions growth was partially offset by market-related volume declines in Performance Technologies. Our gross margin improved 330 basis points to 25.7% driven primarily by higher sales volume and favorable mix, along with the benefits from restructuring and cost savings initiatives in the Performance Technologies segment.

現在讓我們回顧一下公司的整體表現。請翻到第 9 張投影片。第四季銷售額成長 7%，主要得益於氣候解決方案業務的收入成長，但性能技術業務的市場相關銷售下降部分抵消了氣候解決方案業務的成長。我們的毛利率提高了 330 個基點，達到 25.7%，這主要得益於更高的銷售量和良好的產品組合，以及性能技術部門重組和成本節約舉措帶來的好處。

We continue to invest in incremental SG&A to support the strong climate solutions growth. In addition, SG&A includes expenses related to the SSM acquisition, including incremental amortization related to intangible assets. Adjusted EBITDA was exceptional this quarter with an increase of 32% or $25 million, and the adjusted EBITDA margin was 16.1%, representing a 300 basis point improvement from the prior year. This now represents the 13th consecutive quarter of year-over-year margin improvement and we achieved our highest adjusted EBITDA margin since beginning Modine's strategic transformation.

我們將繼續投資增量銷售、一般及行政費用 (SG&A)，以支持強勁的氣候解決方案成長。此外，銷售、一般及行政費用包括與 SSM 收購相關的費用，包括與無形資產相關的增量攤提。本季調整後的 EBITDA 表現出色，成長 32% 或 2,500 萬美元，調整後的 EBITDA 利潤率為 16.1%，比上年提高了 300 個基點。這代表著利潤率連續第 13 季同比成長，我們實現了自 Modine 開始策略轉型以來最高的調整後 EBITDA 利潤率。

Adjusted earnings per share was $1.12, 45% higher than the prior year. We are pleased with the strong finish to the fiscal year. Momentum in our key growth markets allowed us to overcome challenges in others. Our full year adjusted EBITDA margin ended at 15.2% and which is 210 basis points above fiscal '24. These results are on track and aligned with our Investor Day targets for fiscal '27.

調整後每股收益為 1.12 美元，比上年增長 45%。我們對本財年的強勁收官感到高興。我們主要成長市場的強勁勢頭使我們能夠克服其他市場的挑戰。我們全年調整後的 EBITDA 利潤率為 15.2%，比 24 財年高出 210 個基點。這些結果符合我們的 2027 財年投資者日目標。

Now moving to cash flow metrics. Please turn to slide 10. The business has generated $27 million of free cash flow in the fourth quarter, and this included $6 million of payments primarily related to restructuring. This puts our full year free cash flow at $129 million, allowing us to further strengthen the balance sheet.

現在轉向現金流指標。請翻到第 10 張投影片。該業務在第四季度產生了 2,700 萬美元的自由現金流，其中包括主要與重組相關的 600 萬美元的付款。這使得我們全年的自由現金流達到 1.29 億美元，使我們能夠進一步加強資產負債表。

Net debt of $279 million was $92 million lower than the prior fiscal year-end and $8 million lower than last quarter. With a leverage ratio of 0.7, our balance sheet remains in great shape, and we anticipate another year of excellent free cash flow in fiscal '26. During the quarter, we announced a $100 million stock buyback program and completed $18 million of share repurchases.

淨債務為 2.79 億美元，比上一財年末減少 9,200 萬美元，比上一季減少 800 萬美元。我們的槓桿率為 0.7，資產負債表仍保持良好狀態，我們預計 26 財年將再次實現出色的自由現金流。本季度，我們宣布了一項 1 億美元的股票回購計劃，並完成了 1,800 萬美元的股票回購。

Now let's turn to slide 11 for our fiscal 2016 outlook. As Neil mentioned, there's a great deal of uncertainty across all markets and the global economy. And our team is continually assessing the tariff impact on our business. We're analyzing a number of factors that may, in some way, have an impact this fiscal year. These include the impact on material costs of imported products through our supply chain. Any tariffs paid to ship finished products from one location to another, the cost sharing and/or price adjustments to address these costs and the overall impact on product demand for Modine or our customers.

現在我們翻到第 11 張投影片來了解 2016 財年的展望。正如尼爾所說，所有市場和全球經濟都存在著很大的不確定性。我們的團隊正在不斷評估關稅對我們業務的影響。我們正在分析一些可能以某種方式對本財政年度產生影響的因素。其中包括透過我們的供應鏈對進口產品的材料成本的影響。將成品從一個地方運送到另一個地方所支付的任何關稅、為解決這些成本而進行的成本分攤和/或價格調整以及對 Modine 或我們客戶的產品需求的總體影響。

Beyond the trade and tariff risks, there are some positive elements for Modine. First, we estimate that less than 10% of our annual purchases are subject to new tariffs based on our regional supply chain strategies. Second, and with regards to shipping of finished goods, we have commercial agreements with many customers that proactively address the tariff.

除了貿易和關稅風險之外，莫丁還面臨一些正面因素。首先，根據我們的區域供應鏈策略，我們估計每年採購的商品中不到 10% 會受到新關稅的影響。其次，關於成品運輸，我們與許多客戶簽訂了商業協議，積極解決關稅問題。

And last, we have a global footprint and that is allowing us to help customers with their new sourcing strategies, which could lead to increment revenue. Given the volatility and uncertainty in the market, we are providing wider-than-usual ranges for our outlook.

最後，我們擁有全球業務，這使我們能夠幫助客戶制定新的採購策略，從而增加收入。鑑於市場的波動性和不確定性，我們提供了比平常更廣泛的前景範圍。

We have factored all known information at this time into our revenue and earnings outlook. We'll provide updates each quarter and tighten the ranges as the year progresses and adjust as we gain more information and certainty.

我們已將目前所有已知資訊納入我們的收入和盈利預期中。我們將每個季度提供更新，隨著時間的推移縮小範圍，並在獲得更多資訊和確定性時進行調整。

In the appendix, we provided a table summarizing the current tariff situation and Modine exposure. For fiscal '26, we currently expect total company sales to grow in the range of 2% to 10%. For Climate Solutions, we expect full year sales to grow 12% to 20%. This growth is largely driven by our outlook for the data center and commercial IAQ product group.

在附錄中，我們提供了一個表格，總結了當前的關稅情況和 Modine 的風險敞口。對於 26 財年，我們目前預計公司總銷售額將成長 2% 至 10%。對於氣候解決方案，我們預計全年銷售額將成長 12% 至 20%。這一成長很大程度上是由我們對資料中心和商業 IAQ 產品組的展望所推動的。

With regards to this product group, we remain quite optimistic in the full year outlook for data centers with anticipated revenue growth in excess of 30%. While the European market appears to be adjusting to changing hyperscaler plans, we're not seeing any slowdown in North America. In fact, our challenge remains the ability to keep up with demand.

對於該產品組，我們對資料中心全年前景仍然相當樂觀，預計收入成長將超過 30%。儘管歐洲市場似乎正在適應不斷變化的超大規模計劃，但我們並沒有看到北美市場出現任何放緩。事實上，我們面臨的挑戰仍然是如何滿足需求。

For Performance Technologies, we're anticipating sales to be down 2% to 12%. Based on the assumption that the end market will remain depressed and that the current trade conflict may have a negative impact on those market recovery.

對於 Performance Technologies，我們預期銷售額將下降 2% 至 12%。基於終端市場將持續低迷且當前貿易衝突可能對市場復甦產生負面影響的假設。

As Neil mentioned, we've reorganized the PT segment into two product groups. The first product group heavy-duty equipment was presented at our Investor Day, and we'll serve the agriculture, construction, mining and GenSet markets. The second group will be on-highway applications, which will serve the automotive, commercial vehicle and specialty vehicle markets, including electric vehicles. Consolidating the Performance Technologies segment into two product groups, will help the team to further focus on key end markets and customers, which is a critical element of 80/20.

正如 Neil 所提到的，我們已將 PT 部分重組為兩個產品組。第一個產品組重型設備在我們的投資者日上展出，我們將服務於農業、建築、採礦和發電機組市場。第二組將是公路應用，服務汽車、商用車和特殊車輛市場，包括電動車。將效能技術部門合併為兩個產品組，將有助於團隊進一步專注於關鍵終端市場和客戶，這是 80/20 的關鍵要素。

And this will allow us to reduce our cost structure and further improve profit margins. Our strategy remains consistent in the segment to exit nonstrategic businesses, which we believe will be in the best interest of all stakeholders, including our employees, customers and suppliers.

這將使我們能夠降低成本結構並進一步提高利潤率。我們的策略在該領域始終保持一致，即退出非策略性業務，我們相信這符合所有利害關係人的最佳利益，包括我們的員工、客戶和供應商。

The team is actively working on this, and we'll provide more information on (technical difficulty). With regards to our full year earnings, we currently expect fiscal '26 adjusted EBITDA to be in the range of $420 million to $450 million. Using the midpoint of this range, this results in an increase of 11% and another year of solid earnings growth.

團隊正在積極努力，我們將提供更多信息（技術難度）。關於我們的全年收益，我們目前預計 26 財年調整後的 EBITDA 將在 4.2 億美元至 4.5 億美元之間。依照該範圍的中點計算，結果將增加 11%，並帶來另一年的穩健獲利成長。

In addition, we anticipate that we'll generate a higher level of free cash flow in fiscal '26, continuing to increase our cash generation in line with our IR day target. Before wrapping up, I want to remind everyone about the planned product group changes we reviewed at our Investor Day and during the call today.

此外，我們預計 26 財年我們將產生更高水準的自由現金流，並繼續按照我們的 IR 日目標增加現金產生量。在結束之前，我想提醒大家我們在投資者日和今天的電話會議上審查的計劃產品組變更。

For Climate Solutions, we will report revenues under the three product groups, data centers and commercial IAQ, HVAC technologies, which will include heating and school indoor air quality businesses and heat transfer solutions, which will include our coil coatings and commercial refrigeration coolers business. As I previously covered, Performance Technologies will be broken down into two product groups, heavy-duty equipment and on-highway applications.

對於氣候解決方案，我們將報告三個產品組的收入，即資料中心和商業 IAQ、HVAC 技術（包括暖氣和學校室內空氣品質業務）和傳熱解決方案（包括我們的線圈塗料和商用冷凍冷卻器業務）。正如我之前提到的，Performance Technologies 將分為兩個產品組：重型設備和公路應用。

To assist everyone with modeling and analysis, we'll provide a restatement for fiscal '25 revenue using these new product groups and will begin showing the new product groups with our first quarter results. To wrap up, we're extremely pleased with the results from the fourth quarter and '25. The Modine team worked extremely hard to deliver a third consecutive year of record results, despite some significant market headwinds. In addition, this team has demonstrated their ability to manage all the levers that they can control, including the successful addition of several acquisitions. We've delivered on our financial targets over the last several years and remain on track to achieve our fiscal '26 and '27 goal.

為了幫助每個人進行建模和分析，我們將使用這些新的產品組對 25 財年的收入進行重述，並將開始在第一季的業績中展示新的產品組。總而言之，我們對第四季和 25 年的業績非常滿意。儘管面臨一些重大的市場阻力，Modine 團隊仍然付出了極大的努力，連續第三年取得了創紀錄的業績。此外，該團隊還展示了他們管理所有可控制槓桿的能力，包括成功完成幾項收購。我們在過去幾年中實現了財務目標，並將繼續朝著實現 2026 和 2027 財年目標的方向前進。

With that, Neil and I will take your questions.

接下來，尼爾和我將回答你們的問題。

(Operator instructions)

（操作員指示）

Chris Moore, CJS Securities.

克里斯·摩爾（Chris Moore），CJS 證券。

Hey, good morning guys. Congrats on another good quarter. Thanks for taking a couple. So maybe we'll start with data centers. So talking about 30% growth on fiscal '26. As you said Europe, maybe a little more cautious North America is strong. Can you maybe just talk a little bit about the data center visibility? How far out are your customers sharing their build schedules. 24 months, 36 months? Just trying to get a sense as to kind of how far out they give you inclination to their plant?

嘿，大家早安。恭喜您又一個季度取得好成績。謝謝你帶了一對。因此我們也許應該從資料中心開始。所以談論的是 26 財年的 30% 成長。正如你所說，歐洲可能更加謹慎一些，北美則表現強勁。能否簡單談談資料中心的可視性？您的客戶會分享多久的建造計畫？ 24 個月，還是 36 個月？只是想了解他們給你的工廠傾向有多大？

Hey, Chris, this is Neil. Thanks for the question. Yes, we're very confident in the opportunities we have in the data center market. We continue to build strong relationships both with our best colocation customers as well as the hyperscalers that we've built relationships with over the years. As you know, we've gone from one significant relationship with a single hyperscaler to in a short period of time where we have opportunity to do business.

嘿，克里斯，我是尼爾。謝謝你的提問。是的，我們對資料中心市場的機會非常有信心。我們將繼續與我們最好的主機託管客戶以及多年來建立關係的超大規模客戶建立牢固的關係。如您所知，我們在短時間內從與單一超大規模企業建立重要關係轉變為有機會開展業務。

As we build those relationships with our customers, both on colocation as well as on the hyperscaler side, we have visibility of upwards of five years. We have high confidence in a year outlook. We have moderate to high confidence in two years out, but we have visibility with some of our customers that go out three to five years.

當我們與客戶建立關係時，無論是在主機託管方面還是在超大規模方面，我們都擁有長達五年的可預見性。我們對全年前景充滿信心。我們對未來兩年有中等到高度的信心，但我們對一些客戶未來三到五年的前景有預見性。

Very helpful. Thanks. The tariff disclosure slide penis very helpful. A couple of things. Is there anything that you source from China that is especially hard to find elsewhere?

非常有幫助。謝謝。關稅披露幻燈片非常有幫助。有幾件事。您從中國採購的什麼東西在其他地方很難找到？

That's a good question. Thanks for that, Chris. We've worked on this over the last three to four years in terms of a local-for-local strategy relative to our supply chain. Having 38 facilities in 14 different countries, it's really important to do that for one, making sure that we have a redundant supply chain and funnel also because of just total landed costs. So we've reduced the dependency on supply chain from China significantly over the last few years.

這是個好問題。謝謝你，克里斯。過去三到四年來，我們一直致力於制定與我們的供應鏈相關的在地化策略。我們在 14 個不同的國家/地區擁有 38 個設施，因此，這樣做確實非常重要，首先，確保我們擁有冗餘的供應鏈和管道，同時也考慮到總到岸成本。因此，過去幾年我們已大幅減少對中國供應鏈的依賴。

If there are with COVID and the reduction of supply chain and moving more domestically for regional supply chain support and then with the port strike in LA and then the Suez Canal. There's all kinds of reasons that we needed to reduce our dependency on China. So we feel very comfortable where we're at with our local-for-local supply chain. And we think that's going to be an advantage for us as we move forward in this tariff environment.

如果出現 COVID 疫情，供應鏈減少，並更多地轉向國內以提供區域供應鏈支持，然後是洛杉磯港口罷工，然後是蘇伊士運河罷工。我們需要減少對中國的依賴有各種不同的原因。因此，我們對本地化的供應鏈感到非常滿意。我們認為，隨著我們在這種關稅環境下前進，這將是一個優勢。

Perfect. Maybe just last one on that note. So you kind of went through the different areas on the tariffs that could be an issue. It sounds like ultimate product demand is probably the biggest uncertainty. Is that a fair statement? And is it in one segment more than another?

完美的。也許這只是最後一個。所以您大致討論了可能存在問題的關稅不同領域。聽起來最終的產品需求可能是最大的不確定性。這是一個公平的說法嗎？某個部分是否比另一個部分更重要？

Yeah. Chris, it's Mick. With regards to the outlook, Chris around volumes, I think the largest uncertainty for us will definitely be about the rate of market recovery and specifically in Performance Technologies that you and Neil covered on the climate side, the heating and school IAQ business, we expect to have steady double-digit growth this year, which is great. the 30-plus percent top line for data center. And then back on the PT side, it really will be about the rate of recovery or stability across ag, construction and commercial vehicle.

是的。克里斯，我是米克。關於前景，克里斯，關於銷量，我認為我們面臨的最大不確定性肯定是市場復甦的速度，特別是在您和尼爾談到的氣候方面的性能技術、供暖和學校室內空氣質量業務，我們預計今年將實現穩定的兩位數增長，這很好。資料中心的營收將達到 30% 以上。然後回到 PT 方面，這實際上將與農業、建築和商用車的復甦或穩定率有關。

Got it. I appreciate it. I'll jump back in line.

知道了。我很感激。我會重新排隊。

Matt Sumerville, DA Davidson.

馬特·薩默維爾，DA 戴維森。

Thanks. A couple of questions. Back on the DC business. Can you put a little bit of finer point on your comment regarding having a hard time keeping up with demand in North America. Is that primarily being driven by these newer relationships? And then Neil, you mentioned five hyperscalers.

謝謝。有幾個問題。回到 DC 業務。您能否更詳細地解釋一下關於難以滿足北美需求的評論。這主要是由這些較新的關係所推動的嗎？然後尼爾，你提到了五個超大規模企業。

I just want to make sure that, that count is accurate. And then also if you could address in Europe, some of the tentativeness you're seeing on spend. Is that a function of macro or repurposing of original build plans to include AI? And then I have a follow-up.

我只是想確保這個數字是準確的。另外，如果您能談談歐洲在支出方面存在的一些猶豫不決的問題，那該怎麼辦？這是巨集的功能還是重新利用原始建置計劃以包含 AI？然後我有一個後續問題。

Yes, Matt, thanks for the question. Really, it's a matter of execution in North America for us. We have tremendous opportunity. We recently put out a press release where we're going to add additional capacity and employment in Mississippi to keep up with that demand. We're seeing incredible need to continue to ship and produce products in DC, particularly around chillers.

是的，馬特，謝謝你的提問。事實上，對我們來說，這是一個在北美執行的問題。我們擁有巨大的機會。我們最近發布了一份新聞稿，表示我們將在密西西比州增加產能和就業機會，以滿足這一需求。我們看到，在華盛頓特區繼續運輸和生產產品的需求非常大，尤其是冷水機組。

And we had that dedicated plant in Virginia that we've already maxed the capacity, and we're going to now have to increase capacity in Mississippi as well to add additional (inaudible) lines.

我們在維吉尼亞州的專用工廠已經達到了最大產能，現在我們還必須增加密西西比州的產能，以增加額外的（聽不清楚）生產線。

So we've been able to win commercially with very, very good product. We've got a lot of attention in North America, particularly with our growth with our hyperscalers as well as colocation. So it's a matter of execution at this point. We feel very comfortable with the relationships. We feel very comfortable with the pipeline.

因此，我們能夠憑藉非常非常好的產品獲得商業上的勝利。我們在北美受到了廣泛關注，尤其是我們的超大規模和主機託管業務的成長。所以現在這是一個執行的問題。我們對這種關係感到非常滿意。我們對這條管道感到非常滿意。

We understand the need. We understand the growth schedules with these customers. And again, it comes down to us being able to simply produce and ship the product has been -- that our customers are standardizing around.

我們理解這種需要。我們了解這些客戶的成長計畫。再說一遍，我們能夠簡單地生產和運輸我們的客戶所標準化的產品。

Thanks, Neil. And then I just wanted to put a little finer point on what the comments with respect to Europe, whether or not the tentativeness on spend there is more macro driven or more reflective of repurposing of original build plans to include AI. And then I just want to make sure we have the hyperscale customer count, right? I thought you mentioned five, and I was kind of thinking that number was maybe four.

謝謝，尼爾。然後，我只是想更詳細地說明關於歐洲的評論，那裡的支出試探性是否更多地受到宏觀驅動，還是更多地反映了對原始建設計劃的重新利用以包括人工智能。然後我只想確保我們擁有超大規模的客戶數量，對嗎？我以為你提到了五個，但我以為這個數字可能是四個。

Yes, thanks. We're seeing that in terms of the trends in the EU versus North America, definitely, the growth is on the North America side. Certainly, with our hyperscalers, there is an element where they're thinking about the different technologies and opportunities.

是的，謝謝。我們看到，就歐盟與北美的趨勢而言，成長肯定是在北美方面。當然，對於我們的超大規模企業來說，他們正在考慮不同的技術和機會。

So as we have -- as we've grown with some of these folks in our hyperscalers in Europe, we're having technical conversations in terms of what it looks like for the next generations and the current generations of the builds. And certainly, some of these projects can be delayed a quarter or two. No doubt about that.

因此，隨著我們與歐洲超大規模生產者中的一些人一起成長，我們正在就下一代和當前幾代人構建的樣子進行技術對話。當然，其中一些項目可能會延遲一兩個季度。毫無疑問。

We're also recognizing that we've got a very strong brand in Europe. It's a premium brand and at times. We're not going to concede relative to pricing because of who we are and the product that we have. So Europe is good -- is in somewhat of a good position. We're seeing some downturn there relative to some of our customers based on the technologies that they're adjusting to.

我們也認識到我們在歐洲擁有非常強大的品牌。有時它是一個高端品牌。由於我們的身分和我們擁有的產品，我們不會做出與定價相關的讓步。因此，歐洲的情況不錯——處於相當有利的地位。基於我們的一些客戶正在適應的技術，我們看到他們的情況出現了一些下滑。

But again, it comes back to North America. And what we can do in North America with the relationships that we've been able to build there and that we can keep this ramp schedule. If we can execute or over-deliver on the ramp schedule, then we feel very confident in the data center business.

但它又回到了北美。我們可以利用我們在北美建立的關係來做些什麼，以及我們可以維持這個產量提升計畫。如果我們能夠按照計劃完成或超額完成，那麼我們對資料中心業務就非常有信心。

And then lastly, maybe just spend a minute talking about M&A funnel actionability and sort of your views on whether or not you think you might have a reasonable chance of being successful in moving on from the businesses that you had previously publicly identified as being nonstrategic to Modine? Thank you.

最後，也許您能花一點時間談談併購管道的可操作性，以及您是否認為您有相當大的機會成功地從您之前公開認定為對 Modine 不具戰略意義的業務中轉型？謝謝。

Yeah. Hey, Matt, it's Mick. That's been a huge focus for us. And we have talked in the last call or two about kind of sharing with everybody incrementally how we're feeling about both the buy side and any exit feeling really confident right now in the funnel, and it's grown more from the last time we all connected. I think from our side, we're gaining a lot of confidence that we can execute at least one transaction on the buy side in the first half of the year, which is really great.

是的。嘿，馬特，我是米克。這一直是我們關注的重點。在最近一兩次通話中，我們談到了逐步與大家分享我們對買方和任何退出管道的感受，現在我們對管道非常有信心，而且比我們上次聯繫時更加有信心。我認為從我們的角度來看，我們獲得了很大的信心，我們可以在今年上半年在買方執行至少一筆交易，這真的很棒。

We'll keep filling that funnel and pursuing those. And then on the strategic exits of the divestitures, we've been public, Neil came in and in our IR Day about the strategic exit from automotive, and we think that really is in the best long-term interest of employees, the customers, our shareholders and make sure that business is in the right long-term hands.

我們將繼續填補這一空白並追求這些目標。然後，關於資產剝離的策略退出，我們已經公開，尼爾在我們的投資者關係日上談到了汽車行業的戰略退出，我們認為這確實符合員工、客戶、股東的最佳長期利益，並確保業務長期掌握在正確的人手中。

We're -- our focus this year is going to be heavy on executing on that strategy. And we've been really transparent and public about the goal would be to do that in one transaction versus a series of smaller ones. So I'd say a short answer on the strategic exits, gaining a little more confidence and energy to execute there. And then as I mentioned, building a lot more confidence of getting at least one by another acquisition done here in the next quarter or two.

我們今年的重點將放在執行該策略。我們的目標一直是透過一次交易而不是一系列較小的交易來實現，這一點我們一直非常透明和公開。因此，我想簡短地回答一下戰略退出問題，獲得更多的信心和精力來執行。然後，正如我所提到的那樣，我們將更有信心在未來一兩個季度內完成至少一項收購。

Thanks.

謝謝。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

Hi, thanks for taking my questions. The first one on my mind is just can you tell us what your split in data center revenue was roughly for fiscal '25 between US and Europe?

你好，謝謝你回答我的問題。我想到的第一個問題是，您能否告訴我們 25 財年美國和歐洲的資料中心收入大致如何分配？

I will see if I can grab that at my fingertips, well Neil can address any other questions you have. If not, I'll just give you a back (inaudible), but let me see if I've got it nearby.

我會看看是否能輕鬆掌握，尼爾可以解答您的任何其他問題。如果沒有，我就給你一個回覆（聽不清楚），但讓我看看我是否在附近有它。

Okay. Yes. I'm assuming it's like 80/20, but in line with your often mentioning 80/20, I thought that's the answer, but -- and then can you talk at all about the cadence of data center revenue expected in fiscal '26? You had a great year of data center performance and the kind of the average quarterly revenue run rate was like $160 million per quarter. And it's a big ramp up if you're going to grow 30%, it's going to average like $210 a quarter, but how does that potentially ramp throughout fiscal '26.

好的。是的。我假設它是 80/20，但根據你經常提到的 80/20，我認為這就是答案，但是 - 然後你能談談 26 財年預計的數據中心收入節奏嗎？今年你們的資料中心表現非常出色，平均季度營收運行率達到每季 1.6 億美元。如果要成長 30%，那麼這是一個很大的成長，平均每季將達到 210 美元，但在整個 26 財年，這個成長潛力會有多大？

Yeah. I can explain the process and what we're working on when I talk about execution and the ramp cycle and that can come with some more specific numbers. But we have a large opportunity. We have built great relationships with customers. We have a very good product set. We have a complete solution that solves for the problems that our customers are experiencing.

是的。當我談論執行和爬坡週期時，我可以解釋這個過程以及我們正在做的事情，並且可以提供一些更具體的數字。但我們有很大的機會。我們與客戶建立了良好的關係。我們有一套非常好的產品。我們有完整的解決方案來解決客戶遇到的問題。

And we just -- we continue to invest capital and resources, redeploying some of our most talented people across the organization in order to ramp. If we can get our Grenada, Mississippi fiscally up faster, then obviously, it would accelerate even more. But it's a matter of equipment. It's a matter of getting our labs in place. It's a matter of getting people trained. And we're going to have more than double our capacity that we currently have once we get Mississippi up and running.

我們只是——我們繼續投入資金和資源，重新部署我們組織內一些最有才華的人才，以實現成長。如果我們能夠讓格林納達和密西西比州的財政狀況更快好轉，那麼顯然，這一進程將會進一步加快。但這是設備問題。問題在於如何建立我們的實驗室。這是對人員進行訓練的問題。一旦密西西比河開始運行，我們的產能將比現在增加一倍以上。

Now we would expect to have probably a 12-month cycle to get to that point. Some of these things can accelerate. We could potentially move a little bit faster based on hiring based on equipment coming in early. But it's -- the relationships are there. We have demand. It's a matter of ramping these facilities each quarter.

現在我們預計大概需要 12 個月的週期才能達到這一點。其中一些事情可以加速。根據提前到貨的設備，我們可以透過招募加快速度。但關係是存在的。我們有需求。問題在於每季都要增加這些設施。

Yeah. Brian, I just (inaudible). You're good guess. You're close, but with the mix last year is about 75%, 25%, 75% being North America.

是的。布萊恩，我只是（聽不清楚）。你猜得不錯。很接近了，但去年的混合比例大約是 75%、25%、75% 是北美。

Okay. Thanks very much. And just on the second question I asked, I'm just wondering, should we expect data center revenue to be more back-end loaded in fiscal '26. Does it ramp up throughout the year as you bring on that capacity? Or do we kind of step function up from $160 million a quarter to $210 million a quarter right away?

好的。非常感謝。關於我提出的第二個問題，我只是想知道，我們是否應該預期 26 財年的資料中心收入將更多來自後端。隨著產能的提升，全年產量是否會隨之增加？或者我們應該立即從每季 1.6 億美元增加到每季 2.1 億美元？

No. I'm glad you asked that with two weeks. we expect Q1 to be the softest quarter and with it ramping. So we do see Q1 being lower growth rate lower than what we've been experiencing, and it really goes back to the discussion Matt and Neil had. So we saw some volume declines in Europe based on the market conditions there in Q1. And at the same time, we are rapidly ramping up capacity in North America in this quarter. So we're adding capacity. I think we're getting daily reports.

不。我很高興你在兩週前問了這個問題。我們預計第一季將是最疲軟的季度，之後會逐漸好轉。因此，我們確實看到第一季的成長率低於我們所經歷的水平，這實際上可以追溯到馬特和尼爾的討論。因此，根據第一季的市場狀況，我們發現歐洲的銷售量有所下降。同時，本季我們正在迅速提升北美的產能。因此我們正在增加容量。我想我們每天都會收到報告。

So it's building. But as you can imagine, in our Q1, we won't have -- we won't have had all the capacity in place. For the full year, as Neil said, and certainly as you get to Q3 and Q4, we're going to be running not at full capacity, but we're going to have meaning we'll have excess capacity, but we're going to be being able to keep up with all the demand by the second half of the year.

所以它正在建設中。但正如你所想像的，在我們的第一季度，我們不會有——我們不會有所有的產能到位。正如尼爾所說，就全年而言，當然到第三季度和第四季度，我們不會滿負荷運轉，但這意味著我們將擁有過剩的產能，但我們將能夠滿足下半年的所有需求。

Okay. Thanks very much for taking my question.

好的。非常感謝您回答我的問題。

(Operator instructions)

（操作員指示）

Noah Kaye, Oppenheimer.

諾亞·凱伊，奧本海默。

Hey, good morning. Thanks for taking the questions. I would like to unpack the growth outlook for Clean Solutions a little bit more. So data center revenue at at least 30% growth. I think of the revenue base, you just said that implies, I don't know, close to 14% total growth for the segment.

嘿，早安。感謝您回答這些問題。我想進一步闡述清潔解決方案的成長前景。因此資料中心收入至少成長30％。我認為收入基礎，您剛才說這意味著該部門的總成長率接近 14%。

And then you got about 2 points, almost 2 points of the M&A contribution. So is sort of the assumption close to the midpoint of the guide that all of the revenues besides those are kind of flat. And importantly, I think is that kind of consistent with the trajectory you're seeing in those other businesses.

然後你得到了大約 2 個百分點，幾乎是 2 個百分點的併購貢獻。因此，接近指南中點的假設是，除這些之外的所有收入都持平。重要的是，我認為這與您在其他業務中看到的軌跡一致。

Yeah. So yes, generally, the heating in the school business, while it's smaller, relatively speaking about a $200 million business, we see that growing low double digits this year. The heat transfer products area, a much larger business, we're planning on that to being flat and maybe down slightly call it, 0% to maybe 5%.

是的。所以是的，總體來說，學校業務正在升溫，儘管規模較小，相對而言約為 2 億美元的業務，但我們看到今年的成長速度為兩位數。傳熱產品領域是一個更大的業務，我們計劃讓它保持平穩，甚至可能略有下降，例如 0% 到 5%。

And for there, it's a lower visibility business that Neil talked about right now, still excess coil capacity in the market. We talked last quarter about some customers deciding to make more coils on internal in-sourcing those using those to their capacity to fill that production. And so that would be the balance. So you've got the 30-plus percent data center growth, low double digit on HVAC heating. And then we're taking a pretty cautious stance on the coil side.

就那裡而言，尼爾現在談論的是一個知名度較低的業務，市場上的線圈產能仍然過剩。我們上個季度談到，一些客戶決定在內部採購中生產更多的線圈，並利用這些線圈來滿足生產需求。這就是平衡。因此，資料中心的成長速度超過 30%，HVAC 暖氣的成長速度也達到了兩位數。然後我們在線圈方面採取了非常謹慎的立場。

Okay. It sounds like what sort of unlocks the upside of the plus the 30% data center is your ability to add or liberate more capacity in North America. So correct me if I'm mischaracterizing that. But Neil, I think you said that you will have more than double your current revenue capacity in data center. Was that in reference to North America specifically? Or is that global? Because I think when we last spoke, the company's revenue capacity was north of $1 billion.

好的。聽起來，釋放 30% 以上資料中心優勢的途徑在於您在北美增加或釋放更多容量的能力。如果我描述錯誤，請糾正我。但是尼爾，我想你說過你的資料中心的收入容量將增加一倍以上。這是專門指北美嗎？還是這是全球性的？因為我認為我們上次談話時，該公司的收入能力已超過 10 億美元。

Yes, it is. It's north of $1 billion of global capacity, but we have such a demand in North America, the capacity that we had built out in North America, that surge has exceeded the North American capacity. So in general, if you look at it across globally, if all the orders were to come in, one-third, one-third, one-third then we would be okay, but that's not the case. So we have to double the capacity in North America.

是的。全球產能超過 10 億美元，但我們在北美的需求如此之大，我們在北美建造的產能已經超過了北美的產能。因此，總的來說，如果從全球來看，如果所有訂單都進來，三分之一，三分之一，三分之一，那麼我們會沒事的，但事實並非如此。因此我們必須將北美的產能增加一倍。

Okay. So it's North America. Great. And then I think -- yes, go ahead, Mick. Sorry.

好的。所以它是北美洲。偉大的。然後我想——是的，繼續吧，米克。對不起。

I'm just going to say, to ramping up the air side versus the chiller side, different requirements.

我只是想說，增加空氣側和冷卻器側的要求是不同的。

Yeah. Makes sense. And then can we understand your -- to the point around PT, just what divestitures or kind of planned business exits are embedded in the guide for the year?

是的。有道理。然後我們能否了解您關於 PT 的觀點，今年的指南中到底包含了哪些資產剝離或計劃中的業務退出？

Yeah. Right now, we anniversaried the last three or four divestitures. And so in the guidance, we don't have any divestitures built into that. What the area I talked about a little while ago, which would be the area we've been focused on would be that last portion of automotive, which has been running, I would say, between $200 million and $250 million.

是的。目前，我們正紀念最近三、四次資產剝離事件。因此，在指導中，我們並未考慮任何資產剝離。我剛才談到的領域，也就是我們一直在關注的領域，是汽車的最後一個部分，我想說，這個部分的規模在 2 億到 2.5 億美元之間。

If we execute on a transaction this year, will come back. At that point, we would have certainty of something. We have timing and we'd be able to look at how that will impact the fiscal year. But just to be clear, we have the automotive business in here for the full year.

如果我們今年完成交易，就會回來。到那時，我們就會對某件事有把握了。我們有時間，我們可以看看這將如何影響財政年度。但需要明確的是，我們全年都有汽車業務。

Got it. So there's no like bleed down of that in the guide? Okay. Last one for me. I think all in for the company implied incrementals are kind of around 20%, I think, that's right at the midpoint of the guide. The business did close to 45% incremental this past year. I guess given the mix tailwinds and some of the 80/20 actions that you're clearly getting some traction on those incrementals seem a little conservative. So can you maybe help us understand how to think about the margins by segment within the guide? What kind of operating leverage in Climate Solutions, what's the trajectory for margins in PT?

知道了。那麼指南中沒有類似的內容嗎？好的。對我來說是最後一個。我認為，公司隱含的增量大約是 20%，這正好處於指南的中間點。去年該業務成長了近45%。我想，考慮到混合順風和一些 80/20 行動，你顯然在這些增量上獲得了一些牽引力，這似乎有點保守。那麼，您能否幫助我們理解如何考慮指南中各個部分的邊距？氣候解決方案的營運槓桿是什麼樣的？ PT 的利潤率走勢如何？

Yeah. So there's a lot to unpack there. And maybe I'll give you some color around it. On the Performance Technology side, a lot of conversion we've been seeing there, and it's really been on 80/20 and cost reduction for -- you're referencing fiscal '25 on down revenue, we were able to increase EBITDA and add the 200 basis points heavy gross margin lift there this year on Performance Technologies.

是的。因此，還有很多事情需要解決。也許我會給你一些關於它的顏色。在性能技術方面，我們看到了很多轉變，這實際上基於 80/20 和成本降低 - 您提到 25 財年收入下降，但我們今年能夠增加 EBITDA 並在性能技術上增加 200 個基點的大幅毛利率提升。

As we look to the new year, we're expecting to do more of the same, especially while the markets are staying down and probably target 125 to 175 basis point type of improvement in Performance Technologies. And right now, based then you can tell in our guidance and our assumptions that's going to be heavily based on cost reduction activity and productivity improvements through 80/20.

展望新的一年，我們期望做更多相同的事情，特別是在市場持續低迷的情況下，並可能將性能技術的目標提高 125 至 175 個基點。現在，您可以從我們的指導和假設中看出，這將主要基於透過 80/20 實現的成本削減活動和生產力提高。

Climate Solutions, probably more flat margin, and that's not a surprise to us, might be up a little bit -- but as Neil is just covering the balance we have is every time we see increasing demand on the data center side. There will be a few quarters where we're reinvesting not only in the people and engineering, but in the fixed cost to support that future growth.

氣候解決方案的利潤率可能更加平穩，這對我們來說並不意外，可能會略有上升 - 但正如尼爾所言，每當我們看到數據中心方面的需求增加時，我們就會保持平衡。在接下來的幾個季度中，我們不僅會對人員和工程進行再投資，還會對固定成本進行再投資，以支持未來的成長。

So I don't see it being a headwind for Climate Solutions, but we should -- we're really driving growth, and we're okay having a 20-plus percent type EBITDA margin. If you wrap that move up a little bit, yes, you kind of blend that in, we should be up a little bit but higher conversion on PT and then the standard conversion on climate.

因此，我並不認為這會對氣候解決方案造成阻礙，而且我們應該——我們確實在推動成長，而且我們的 EBITDA 利潤率達到 20% 以上也是可以接受的。如果你將這一舉措稍微向上推進一點，是的，你將其融入其中，我們應該會稍微向上推進一點，但 PT 的轉換會更高，然後是氣候的標準轉換。

Very helpful. Thanks.

非常有幫助。謝謝。

Matt Summerville, DA Davidson.

馬特·薩默維爾，DA 戴維森。

Thanks, Just a couple of quick follow-ups. With this new modular data center system, if that's the right word Neil, does that unlock incremental TAM for you guys? And can you help me maybe understand the use case versus a system like that versus maybe the legacy, if you will beat the offering?

謝謝，我只想問幾個簡單的問題。有了這個新的模組化資料中心系統，如果這是正確的說法 Neil，那麼它是否能為你們解鎖增量 TAM？如果您願意提供更好的服務，您能否幫助我了解使用案例、類似的系統以及遺留系統？

No, that's a great question. I don't believe it unlocks additional TAM. I think this is -- well, I'm certain it's a different product solution to solve for the speed at which the data center wants to add capacity in the global market.

不，這是一個很好的問題。我不相信它會解鎖額外的 TAM。我認為這是——嗯，我確信這是一個不同的產品解決方案，以解決資料中心在全球市場上增加容量的速度。

So traditionally, we would sell our systems to a system integrator. We would sell our systems to the end user, and they would have a group of engineers and trades people that would assemble our product in the data center. Because the data center customers want to move quickly because it's literally a race to build capacity here. They are looking for a more convenient way to start up their data centers.

因此，傳統上，我們會將我們的系統出售給系統整合商。我們將把我們的系統賣給最終用戶，然後他們會有一組工程師和技術人員在資料中心組裝我們的產品。因為資料中心客戶希望快速行動，因為這其實是一場容量建構競賽。他們正在尋找一種更方便的方式來啟動他們的資料中心。

So they're looking for us to build modular DCs that they can plug and play. So essentially, our product in addition to some supply chain that they would traditionally buy, we would take that supply chain internally, we would put the product together into a modular data center unit. It would go to the DC and it would be more of a plug-and-play versus more of a -- versus the assembly process that they go through today. So it's a conversion in terms of the data centers, and it will allow them to move much quicker.

因此他們希望我們建造可即插即用的模組化 DC。因此，從本質上講，我們的產品除了他們傳統上會購買的一些供應鏈之外，還會將供應鏈納入內部，將產品組合成模組化資料中心單元。它會進入 DC，並且會更加即插即用，而不是像今天這樣經歷組裝過程。因此，這是資料中心的轉變，它將使資料中心的運作速度更快。

So similar TAM, but just the speed in which they can start-up of data center is accelerated because we do a lot of the work internally, and we build more of a system and advanced system for them that is easier for them to install.

因此 TAM 相似，但他們啟動資料中心的速度加快了，因為我們在內部做了很多工作，我們為他們建立了更多的系統和先進的系統，使他們更容易安裝。

Thank you for that color. Just a couple of additional ones. As you sit here looking at that $1 billion data center target you have in terms of top line for fiscal '27. Are you more confident in attaining and/or beating that target? Is that maybe part of the signal here with the doubling of chiller capacity in North America? How should we interpret that in the context of that target? And over time, Neil, do you start to think about strategic optionality for the DC business?

謝謝你的那個顏色。僅剩幾個額外的了。當您坐在這裡看著 2027 財年 10 億美元的資料中心目標。您是否更有信心實現和/或超越該目標？北美冷水機組容量翻倍是否預示著這項訊號？我們應該如何根據該目標來解釋這一點？隨著時間的推移，尼爾，您是否開始考慮 DC 業務的戰略選擇性？

Yeah. Thanks, Matt. Yes, for sure, I mean, the rate of capacity that we're deploying, it's about execution. I've become more confident every day as we've gone through the hard part. The hard part was building the relationships.

是的。謝謝，馬特。是的，當然，我的意思是，我們部署的容量率與執行有關。隨著我們度過了艱難的時期，我每天都變得更有自信。困難的部分是建立關係。

The hard part was getting the customer profile. The hard part was providing and developing highly engineered products for our customers that are specific for their need purpose-built specific highly engineered products for these customers. And we're through that. We've got that, and it's a matter of execution, build, produce, ship. And the more capacity that we put inside of North America, the more confident that I get.

困難的部分是取得客戶資料。困難的部分是為我們的客戶提供和開發高度工程化的產品，這些產品是針對客戶的需要而專門製造的。我們已經度過了這一關。我們已經做到了，接下來就是執行、建造、生產、運輸。我們在北美投入的產能越大，我就越有信心。

And then, Neil, just the question on potential strategic optionality as you further scale this business realizing that the vision extends beyond '27, certainly, given, in some instances, you have a three- to five-year broad look ahead. How are you thinking about that?

然後，尼爾，當你進一步擴大這項業務時，你就會意識到願景超越了 27 年，當然，在某些情況下，你會對未來有三到五年的廣泛展望，那麼關於潛在的戰略選擇性的問題是什麼呢？您對此有何看法？

I'm really focused on execution right now and making sure that we can deliver on the needs of our customers today. The pipeline is extremely healthy. And we're focused on the next 24 months because that's paramount. We have to stay in execution mode.

我現在真正專注於執行並確保我們能夠滿足客戶今天的需求。該管道極其健康。我們專注於未來 24 個月，因為這是至關重要的。我們必須保持執行模式。

Understood. Thank you.

明白了。謝謝。

I am showing no further questions at this time. I'd like to turn the conference back to Kathy Powers.

我目前沒有其他問題。我想將會議交還給凱西·鮑爾斯 (Kathy Powers)。

Thank you and thanks to everyone for joining us this morning. A replay of the call will be available on our website in about 2 hours. We hope everyone has a great day.

謝謝大家，也謝謝大家今天早上加入我們。大約兩小時後，我們的網站將提供此通話的重播。我們希望每個人都度過愉快的一天。

This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

今天的會議到此結束。現在您可以斷開線路，感謝您的參與。