Modine Manufacturing Co (MOD) 2026 Q1 法說會逐字稿

Hello, and good morning. Welcome to our conference call to discuss Modine's first quarter fiscal 2026 results. I'm joined by Neil Brinker, our President and Chief Executive Officer; and Mick Lucareli, our Executive Vice President and Chief Financial Officer.

你好，早安。歡迎參加我們的電話會議，討論 Modine 2026 財年第一季的業績。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 with today's presentation are available on the Investor Relations section of our website, modine.com. On slide 3 of that 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.

我們今天示範中使用的投影片可在我們網站 modine.com 的「投資者關係」版塊找到。這張投影片的第 3 張投影片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. I'm pleased to report that Modine delivered a solid start to the year, giving us confidence to raise our revenue and earnings outlook for fiscal '26. We've completed three strategic acquisitions so far, this fiscal year and announced major new investments in our manufacturing capacity for our rapidly growing North America data center business.

謝謝你，凱西，大家早安。我很高興地報告，莫迪恩今年取得了良好的開端，這讓我們有信心提高 26 財年的營收和獲利前景。本財年迄今為止，我們已完成三項策略性收購，並宣布對快速成長的北美資料中心業務的製造能力進行重大新投資。

Investments that will position us to meet continued strong market demand this year and well into the future. These investments are allowing us to maintain a balanced portfolio of businesses with strong organic growth focus in data centers, supplemented with inorganic growth to expand product offerings and create scale in our other key Climate Solutions businesses. Mick will take us through the financial results and updated outlook. But first, I'd like to provide additional context around the quarter's key events.

這些投資將使我們能夠滿足今年及未來持續強勁的市場需求。這些投資使我們能夠保持平衡的業務組合，重點關注資料中心的強勁有機成長，並輔以無機成長以擴大產品供應並在其他關鍵氣候解決方案業務中實現規模化。米克將向我們介紹財務業績和最新展望。但首先，我想提供有關本季主要事件的更多背景資訊。

Our Climate Solutions segment continues to deliver, posting an 11% increase in revenue and a 10% improvement in adjusted EBITDA. This performance reflects initial contributions from two of our most recent acquisitions, AbsolutAire and L.B. White. Both of these acquisitions offer complementary solutions to our heating business, which falls within our HVAC Technologies Group. These additions broaden our product portfolio and unlock new markets and distribution channels.

我們的氣候解決方案部門持續表現出色，營收成長了 11%，調整後 EBITDA 提高了 10%。這一業績反映了我們最近兩次收購 AbsolutAire 和 L.B. White 的初步貢獻。這兩次收購都為我們的暖氣業務提供了補充解決方案，該業務屬於我們的 HVAC 技術集團。這些新增產品拓寬了我們的產品組合併開拓了新的市場和分銷管道。

Modine has been in the heating business for nearly 100 years and has a large install base for our signature line of gas-fired unit heaters. We also have a leading market share with replacements typically driving over half of our annual revenues. These recent acquisitions allow us to accelerate growth and build scale, as we continue to use 80/20 to drive both revenue and cost synergies.

Modine 從事暖氣業務已有近 100 年的歷史，其標誌性燃氣單元加熱器系列擁有龐大的安裝基礎。我們也擁有領先的市場份額，替代品通常占我們年收入的一半以上。這些最近的收購使我們能夠加速成長並擴大規模，因為我們將繼續使用 80/20 來推動收入和成本協同效應。

Earlier this month, we closed a third acquisition, Climate by Design International or CDI, a leader in desiccant dehumidification and critical process air handlers. These technologies integrate well with our previous acquisitions, namely Jetson modular chillers and Scott Springfield custom commercial air handlers.

本月初，我們完成了第三次收購，收購方是 Climate by Design International 或 CDI，該公司是乾燥劑除濕和關鍵製程空氣處理的領導者。這些技術與我們先前收購的技術完美結合，即 Jetson 模組化冷水機組和 Scott Springfield 定製商用空氣處理機。

As we integrate this business, we will use 80/20 to improve their mix and raise margins, while exploring opportunities to utilize excess US-based manufacturing capacity to support growth in the broader commercial IQ businesses. All of these acquisitions are squarely in line with our business development strategy to expand our portfolio with next-gen technologies and complementary solutions in heating, indoor air quality and data center cooling.

在整合這項業務的過程中，我們將採用 80/20 的方法來改善其產品組合併提高利潤率，同時探索利用美國過剩製造能力的機會來支持更廣泛的商業 IQ 業務的成長。所有這些收購都符合我們的業務發展策略，即透過暖氣、室內空氣品質和資料中心冷卻的下一代技術和補充解決方案來擴展我們的產品組合。

They also build the foundation for scale in these key markets within HVAC technologies. I'd like to again welcome all the new associates from AbsolutAire, L.B. White and now CDI. Our teams are already integrating well and aligning around new opportunities to drive revenue and operational synergies.

他們也為 HVAC 技術在這些關鍵市場中的規模奠定了基礎。我再次歡迎來自 AbsolutAire、L.B. White 和 CDI 的所有新員工。我們的團隊已經很好地整合在一起，並圍繞新的機會進行協調，以推動收入和營運協同效應。

In our data center business, we continue to prioritize organic growth through capacity investments and product innovation. We recently announced $100 million investment to expand manufacturing capacity across four US sites, including a new facility in Dallas, Texas area, further expansion in Grenada, Mississippi and repurposing two existing performance technology sites.

在我們的資料中心業務中，我們繼續透過產能投資和產品創新優先實現有機成長。我們最近宣布投資 1 億美元擴大美國四個工廠的生產能力，包括在德克薩斯州達拉斯地區建立新工廠、在密西西比州格林納達進一步擴建以及重新利用兩個現有的性能技術工廠。

The announcement advances our local-for-local supply chain strategy to be close to our data center customers and expand capacity in our largest and best markets. This investment will also enhance engineering, product development and testing capabilities, create new jobs and support the redeployment and retraining of existing Modine employees.

該公告推進了我們的在地化供應鏈策略，以便更貼近我們的資料中心客戶，並擴大我們最大和最佳市場的產能。這項投資還將增強工程、產品開發和測試能力，創造新的就業機會，並支援現有 Modine 員工的重新部署和再培訓。

This expansion is a necessary response to the extraordinary demand we're seeing, especially in North America. With our current funnel of opportunities, we believe that we can approach $2 billion of data center revenues in fiscal '28. This is a lofty goal, but one that we believe is achievable.

此次擴張是對我們所看到的巨大需求（尤其是在北美）的必要回應。憑藉我們目前的機會管道，我們相信我們可以在 28 財年實現 20 億美元的資料中心收入。這是一個崇高的目標，但我們相信它是可以實現的。

In addition to this capacity expansion, we are also innovating. An example is our new modular data center development project where we are collaborating with a large customer on a custom design built to suit their specific needs. This innovative solution offers rapid deployment and scalability, reducing the build time for a data center from over a year to mere months. An initial site can also be expanded by adding more modules to the center.

除了產能擴張之外，我們還在進行創新。一個例子是我們的新模組化資料中心開發項目，我們正在與一個大客戶合作，建立一個滿足他們特定需求的客製化設計。這種創新的解決方案提供了快速部署和可擴展性，將資料中心的建造時間從一年多縮短到僅僅幾個月。還可以透過向中心添加更多模組來擴展初始站點。

As demand accelerates, our data center customers are pushing for higher efficiency and advanced cooling strategies. We're not only responding but collaborating deeply with their engineering teams to create next-generation solutions. We are and will continue to be a major part of these conversations, often supporting the additional mechanical cooling requirements needed to address changes being made at the rack level.

隨著需求的成長，我們的資料中心客戶正在追求更高的效率和先進的冷卻策略。我們不僅做出回應，而且還與他們的工程團隊深入合作，以創造下一代解決方案。我們現在並將繼續成為這些對話的重要組成部分，通常支援解決機架層級變更所需的額外機械冷卻要求。

For example, if a customer is looking for an alternative solution to distributing coolant to the rack, we will work closely with our engineering teams to collaborate an innovative alternative to meet their cooling requirements.

例如，如果客戶正在尋找向機架分配冷卻劑的替代解決方案，我們將與我們的工程團隊密切合作，共同開發創新的替代方案來滿足他們的冷卻需求。

To be clear, these innovations aren't threats. Their outcomes of long tenured strategic partnerships where our largest customers are seeking our expertise to meet their evolving demand. And they are unlocking new opportunities as we advance the technology required to manage heat loads in modern data centers. There's tremendous energy in this segment, and it's not slowing down. We will continue to aggressively pursue the opportunities in front of us to ensure continued execution and growth.

需要明確的是，這些創新並不構成威脅。他們的長期策略夥伴關係的成果是，我們最大的客戶正在尋求我們的專業知識來滿足他們不斷變化的需求。隨著我們不斷推進管理現代資料中心熱負荷所需的技術，它們正在釋放新的機會。這個領域蘊藏著巨大的能量，而且這種能量沒有減緩的跡象。我們將繼續積極掌握眼前的機遇，確保持續執行和成長。

Please turn to page 5. As expected, the Performance Technologies segment continues to navigate tough market conditions with revenues in the quarter down 8% and corresponding declines in adjusted EBITDA. The downturn in vehicular markets is likely to persist for several more quarters. In response, we've taken decisive action to control costs, including reallocating talent to support our high-growth Climate Solutions business.

請翻到第5頁。正如預期的那樣，性能技術部門繼續應對嚴峻的市場環境，本季營收下降 8%，調整後 EBITDA 也相應下降。汽車市場的低迷可能還會持續幾個季度。作為回應，我們採取了果斷行動來控製成本，包括重新分配人才以支持我們高成長的氣候解決方案業務。

As an example, we plan to transition two of our existing performance technology sites to expand capacity for data center production. One of those under consideration is Franklin, Wisconsin, which was previously planned to support our EV systems business. We are also evaluating plans for our Jefferson City, Missouri manufacturing facility, which would involve consolidating those product lines into other PT plants in North America.

例如，我們計劃改造兩個現有的效能技術站點，以擴大資料中心的生產能力。其中一個正在考慮的地點是威斯康辛州富蘭克林，該地之前計劃支持我們的電動車系統業務。我們也正在評估密蘇裡州傑斐遜城製造工廠的計劃，該計劃將涉及將這些產品線整合到北美其他 PT 工廠。

For other select portions of the segment, we continue to explore strategic options to realign and optimize our portfolio. Our PT team is doing excellent work to remain lean and focused on our key customers. When volumes return, we're well positioned to capitalize with strong incremental margins and improved profitability.

對於該領域的其他部分，我們將繼續探索策略選擇，以重新調整和優化我們的產品組合。我們的 PT 團隊正在出色地工作，保持精簡並專注於我們的關鍵客戶。當銷量回升時，我們將能夠充分利用強勁的增量利潤和更高的獲利能力。

Despite the market headwinds, we are executing on our transformational strategy. This team has been through a great deal of change and has worked hard to improve margins and cut costs in light of these challenging market conditions. But our 80/20 strategy remains clear: to shift resources to high-growth, high-margin businesses.

儘管市場面臨阻力，我們仍在執行轉型策略。該團隊經歷了巨大的變革，並根據這些充滿挑戰的市場條件努力提高利潤率並削減成本。但我們的 80/20 策略仍然很明確：將資源轉移到高成長、高利潤的業務。

In summary, we had an extremely busy start to the fiscal year. We are investing in our growth, both organically and inorganically. These are very purposeful investments designed to build scale across our portfolio and capture near-term growth opportunities. I want to thank the Modine team for their hard work and dedication.

總而言之，我們的財政年度開始得非常忙碌。我們正在透過有機和無機的方式投資於我們的成長。這些都是非常有目的的投資，旨在擴大我們的投資組合規模並抓住近期的成長機會。我要感謝 Modine 團隊的辛勤工作和奉獻精神。

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 6 to review the Q1 segment results. Climate Solutions delivered another good quarter with an 11% increase in sales, a 10% improvement in adjusted EBITDA and an adjusted EBITDA margin of 20%.

謝謝，尼爾，大家早安。請翻到投影片 6 查看第一季的分部業績。氣候解決方案部門又取得了一個良好的季度業績，銷售額成長了 11%，調整後 EBITDA 成長了 10%，調整後 EBITDA 利潤率達到了 20%。

Data center sales grew $24 million or 15% from the prior year, driven by higher sales in North America. HVAC Technologies sales increased $17 million or 34%, driven by strong heating stock plan orders and higher indoor air quality product sales.

受北美銷售額成長的推動，資料中心銷售額比上年增長了 2,400 萬美元，即 15%。受供暖庫存計劃訂單強勁和室內空氣品質產品銷量增加的推動，HVAC 技術銷售額增長了 1700 萬美元，增幅為 34%。

In addition, the recent acquisitions of AbsolutAire and L.B. White contributed $10 million of revenue in the quarter. Heat Transfer Solutions sales declined 1% or $1 million due to lower volumes to commercial and residential HVAC customers. This was mostly offset by higher sales to commercial refrigeration and coatings customers.

此外，最近收購的 AbsolutAire 和 L.B. White 為本季貢獻了 1,000 萬美元的收入。由於商業和住宅 HVAC 客戶銷售下降，傳熱解決方案銷售額下降 1% 或 100 萬美元。這主要被商業冷凍和塗料客戶銷售額的增加所抵消。

The adjusted EBITDA margin was relatively flat versus the prior year. At this point, we're focused on continuing to drive earnings growth versus maximizing profit margin. While we're currently growing revenue at an exceptional rate, we're also increasing our investments in manufacturing and engineering resources to support future growth. For example, we're once again raising our fiscal '26 outlook for data center revenue growth to 45%. As capacity comes online and revenue grows, we expect the EBITDA margin to increase especially in fiscal '27.

調整後的 EBITDA 利潤率與前一年相比相對持平。目前，我們專注於繼續推動獲利成長，而不是最大化利潤率。雖然我們目前的收入正在以驚人的速度成長，但我們也在增加對製造和工程資源的投資，以支持未來的成長。例如，我們再次將 26 財年的資料中心營收成長預期上調至 45%。隨著產能上線和營收成長，我們預期 EBITDA 利潤率將會提高，尤其是在 27 財年。

With regard to the recent acquisitions, we're in the early innings with the team focused on integrating and stabilizing to ensure there are no surprises. At times, this can mean adding incremental resources and cost to capture future benefit. With that said, we're excited about the additional HVAC technology scale and the overall positive momentum in Climate Solutions.

對於最近的收購，我們正處於早期階段，團隊專注於整合和穩定，以確保不會出現意外。有時，這可能意味著增加增量資源和成本以獲取未來利益。話雖如此，我們對額外的 HVAC 技術規模和氣候解決方案的整體積極勢頭感到興奮。

Please turn to slide 7. As anticipated, Performance Technologies revenues were impacted by challenging end market demand and 80/20-driven product line exits. Heavy-duty equipment sales were lower by 4% or $4 million, driven by ongoing market weakness. Within the heavy-duty area, we experienced lower Genset sales due to a customer moving to a dual-sourcing strategy.

請翻到幻燈片 7。正如預期的那樣，Performance Technologies 的收入受到了終端市場需求挑戰和 80/20 驅動的產品線退出的影響。由於市場持續疲軟，重型設備銷售額下降了 4%，即 400 萬美元。在重型領域，由於客戶轉向雙重採購策略，我們的發電機組銷售量有所下降。

While we had planned on lower volumes with this customer, we anticipated an offsetting increase with a new Genset customer. However, this customer and others are taking longer than anticipated to convert to the new cooling module design. As a result, we believe it's prudent to plan on lower growth than previously anticipated in the Genset area.

雖然我們計劃減少與該客戶的合作數量，但我們預計新的發電機組客戶將帶來抵銷性的成長。然而，該客戶和其他客戶轉換到新的冷卻模組設計所花費的時間比預期的要長。因此，我們認為，在發電機組領域規劃低於先前預期的成長是明智之舉。

On-Highway application sales decreased 8% or $15 million due to the previously mentioned lower end market demand and 80/20 product line exits. Segment adjusted EBITDA declined 14% from the prior year and adjusted EBITDA margin decreased 100 basis points to 13.1%. The margin decline was mostly driven by lower sales volume and higher material costs. This was partially offset by improved operating efficiencies, along with significant cost reductions.

由於前面提到的低端市場需求和 80/20 產品線退出，公路應用銷售額下降了 8% 或 1500 萬美元。分部調整後 EBITDA 較上年下降 14%，調整後 EBITDA 利潤率下降 100 個基點至 13.1%。利潤率下降主要是因為銷售量下降和材料成本上升。但這一影響被營運效率的提高和成本的大幅降低部分抵消。

We're passing through increased costs from tariffs and higher material costs, and we'll continue to recover these increases through our normal pass-through mechanisms. Consistent with past practices, will recover metals on a lagged basis, averaging about six months. The tariff recovery will vary with each customer and agreement.

我們正在轉嫁關稅和材料成本上漲帶來的成本增加，我們將繼續透過正常的轉嫁機制來收回這些增加的成本。與過去的做法一致，金屬回收將滯後，平均約六個月。關稅恢復將根據每個客戶和協議而有所不同。

As we highlighted last quarter, we've been working to reorganize this business and reduce costs wherever possible. These actions resulted in a $5 million reduction in SG&A expenses this quarter, helping to partially offset the impact of lower sales volume. Despite the difficult market conditions and volume headwinds, the team remains focused on delivering higher margins and earnings for this segment this fiscal year.

正如我們上個季度所強調的那樣，我們一直在努力重組這項業務並盡可能降低成本。這些措施使本季銷售、一般及行政費用減少了 500 萬美元，有助於部分抵銷銷售量下降的影響。儘管市場環境艱難，銷售面臨阻力，但團隊仍致力於在本財年為該部門實現更高的利潤率和收益。

Now let's review the total company results. Please turn to slide 8. First quarter sales increased 3%, driven by the revenue growth in Climate Solutions. Our gross margin declined 40 basis points to 24.2%, driven primarily by the unfavorable impact of lower sales and higher materials in Performance Technologies.

現在讓我們回顧一下公司的整體表現。請翻到第 8 張投影片。第一季銷售額成長 3%，主要得益於氣候解決方案收入的成長。我們的毛利率下降了 40 個基點，至 24.2%，主要原因是高性能技術部門銷售額下降和材料價格上漲的不利影響。

We continue to invest in incremental SG&A to support strong growth in Climate Solutions. In addition, SG&A includes expenses related to the acquisitions completed during the quarter, partially offset by lower SG&A costs in Performance Technologies.

我們將繼續投資增量銷售、一般及行政費用 (SG&A)，以支持氣候解決方案的強勁成長。此外，銷售、一般及行政費用包括與本季完成的收購相關的費用，但部分被 Performance Technologies 的銷售、一般及行政費用降低所抵銷。

Adjusted EBITDA was better than we had anticipated at the beginning of the quarter, resulting in a small year-over-year increase. Our adjusted EBITDA margin was 14.9%, which was down 40 basis points from the prior year. We anticipated that the margin in Q1 would be down slightly. And on a temporary basis, due to the combined impacts of lower Performance Technologies volume and new investments in Climate Solutions.

調整後的 EBITDA 比我們在本季初的預期，因此比去年同期略有成長。我們的調整後 EBITDA 利潤率為 14.9%，比前一年下降了 40 個基點。我們預計第一季的利潤率會略有下降。並且是暫時的，這是由於性能技術銷售下降和對氣候解決方案的新投資的綜合影響。

We expect to restart year-over-year margin improvements in the second half of the year on higher volume and material cost recoveries. Adjusted earnings per share was $1.06, 2% higher than the prior year. We're pleased with the start to the fiscal year. Momentum in our key growth markets allowed us to overcome challenges than others, and we expect positive contributions from our three recent acquisitions throughout the rest of this fiscal year.

我們預計，隨著銷售量增加和材料成本回收，下半年利潤率將重新實現年比改善。調整後每股收益為 1.06 美元，比上年增長 2%。我們對本財政年度的開始感到滿意。我們主要成長市場的勢頭使我們能夠克服其他市場的挑戰，我們預計最近的三筆收購將為本財年剩餘時間帶來積極貢獻。

Now moving to cash flow metrics. Please turn to slide 9. The business has generated $200,000 of free cash flow in the quarter. This was lower than the prior year, primarily due to higher inventory levels in Climate Solutions. We're building significant data center inventory to support the large amount of projects and delivery schedules in the second half of our year.

現在轉向現金流指標。請翻到第 9 張投影片。該業務本季產生了 20 萬美元的自由現金流。這低於前一年，主要是由於氣候解決方案的庫存水平較高。我們正在建立大量資料中心庫存，以支援今年下半年的大量專案和交付計劃。

First quarter free cash flow also included $5 million of cash payments, primarily related to restructuring and acquisition-related costs. Net debt of $403 million was $123 million higher than the prior fiscal year-end, directly related to the acquisitions of AbsolutAire and L.B. White, which were both completed in the quarter.

第一季的自由現金流還包括 500 萬美元的現金支付，主要用於重組和收購相關成本。淨債務為 4.03 億美元，比上一財年末高出 1.23 億美元，直接與本季完成的對 AbsolutAire 和 L.B. White 的收購有關。

We invested more than $140 million in acquisitions and capital during the quarter, plus the additional acquisition in July to support future growth for Modine. With these investments and associated earnings, our balance sheet remains quite strong with a leverage ratio of 1. I would also like to mention that we have extended the maturity and upside to our credit facilities, providing us with additional liquidity and flexibility to support future organic and inorganic growth. Thank you to the great Modine Treasury team and our banking partners for their support with this transaction.

我們在本季投資了超過 1.4 億美元用於收購和資本，加上 7 月的額外收購，以支持 Modine 未來的成長。憑藉這些投資和相關收益，我們的資產負債表依然保持強勁，槓桿率為 1。我還想提一下，我們延長了信貸額度的期限和上行空間，為我們提供了額外的流動性和靈活性，以支持未來的有機和無機成長。感謝 Modine Treasury 團隊和我們的銀行合作夥伴對此交易的支持。

Now let's turn to slide 10 for our fiscal 2026 outlook. As Neil mentioned, we're raising our revenue and earnings outlook driven by our recent acquisitions and another increase in our projected data center sales. For fiscal '26, we're currently expecting total sales to grow in the range of 10% to 15%. This is an increase from the previous range of 2% to 10%. For Climate Solutions, we expect full year sales to grow 25% to 35% and expect data center sales to grow in excess of 45% this year. This is a significant increase from the previous range of 12% to 20% for Climate Solutions.

現在讓我們翻到第 10 張投影片來了解我們對 2026 財年的展望。正如尼爾所提到的，由於我們最近的收購以及預計資料中心銷售額的再次成長，我們正在提高我們的收入和獲利前景。對於 26 財年，我們目前預計總銷售額將成長 10% 至 15%。這比之前的 2% 至 10% 有所增加。對於氣候解決方案，我們預計全年銷售額將成長 25% 至 35%，預計今年資料中心銷售額將成長超過 45%。這比先前氣候解決方案的 12% 至 20% 的範圍有了顯著增長。

The higher sales is mostly driven by our improving outlook for data center sales and the recent acquisitions in HVAC technologies. With regard to our increase in outlook for data center sales, we anticipate a significant acceleration in the second half based on customer timing and the additional capacity plans.

銷售額的成長主要得益於我們對資料中心銷售前景的改善以及最近在 HVAC 技術領域的收購。關於我們對資料中心銷售成長前景的預測，我們預計根據客戶時間和額外容量計劃，下半年將顯著加速。

For example, in the first half, we anticipate data center sales will be up 20% to 25% over the prior year. In the second half, will be up by more than 80%. For Performance Technologies, we're maintaining our sales outlook with the revenue anticipated to be down 2% to 12%. We expect that end markets will remain soft with the ongoing trade conflict having a negative impact on market recoveries.

例如，我們預計上半年資料中心銷售額將比上年成長 20% 至 25%。下半年將成長80%以上。對於 Performance Technologies，我們維持銷售預期，預期營收將下降 2% 至 12%。我們預期終端市場將保持疲軟，持續的貿易衝突將對市場復甦產生負面影響。

Performance Technologies is currently trending towards the higher or the more favorable end of this range. However, the higher revenue will likely be due to incremental material and tariff cost recoveries, along with favorable foreign exchange rate.

Performance Technologies 目前正趨向於該範圍的更高或更有利的一端。不過，收入增加可能是由於材料和關稅成本的增加以及有利的外匯匯率。

With regards to our full year earnings, we currently expect fiscal 2016 adjusted EBITDA to be in the range of $440 million to $470 million. This represents a $20 million increase from the previous range. The higher earnings will be recognized in the second half of the fiscal year, as we begin to capture the full benefit of the recent acquisition, and our data center sales accelerate significantly.

關於我們的全年收益，我們目前預計 2016 財年調整後的 EBITDA 將在 4.4 億美元至 4.7 億美元之間。這比之前的範圍增加了 2000 萬美元。隨著我們開始充分享受最近收購帶來的收益，並且我們的資料中心銷售大幅加速，更高的收益將在本財年下半年得到確認。

The new earnings outlook represents another year of rapid growth based on the implied growth range of 12% to 20%, with a midpoint above 15%. With regards to cash flow, we recently announced a plan to invest an incremental $100 million of CapEx over the next 12 to 18 months.

新的獲利展望表明，基於隱含的成長範圍 12% 至 20%，中點為 15% 以上，今年將是另一個快速成長年。關於現金流，我們最近宣布了一項計劃，在未來 12 到 18 個月內增加 1 億美元的資本支出。

As a result, we'll continue to generate free cash flow, but this year will be somewhat lower as a percentage of sales at around 3%. This includes the cash required to fully fund our pension prior to our plan annuitization this year. I want to point out that we have not included cash proceeds from any potential divestitures this year.

因此，我們將繼續產生自由現金流，但今年佔銷售額的百分比將略低，約 3%。這包括今年我們的計劃年金化之前全額資助我們的退休金所需的現金。我想指出的是，我們今年沒有包括任何潛在資產剝離的現金收益。

Looking ahead to the next year, we anticipate that our free cash flow margin will once again improve and be in line with our fiscal '27 target. To wrap up, we're quite pleased with the results this quarter, and these are exciting times at Modine. We're reinvesting and redeploying significant amounts of capital, which are generating high returns on investment and supporting our strategic transformation, while laying the foundation for us to generate rapid growth well into the future.

展望明年，我們預計我們的自由現金流利潤率將再次提高，並與我們 27 財年的目標保持一致。總而言之，我們對本季的業績非常滿意，這是 Modine 令人興奮的時刻。我們正在對大量資本進行再投資和重新部署，這些資本正在產生高投資回報並支持我們的策略轉型，同時為我們未來的快速成長奠定基礎。

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) Matt Summerville, DA Davidson.

（操作員指示）馬特·薩默維爾，DA 戴維森。

Thanks morning. A couple of questions. First, can you talk about the magnitude of unabsorbed costs you're going to experience in the Climate business? Is it like build out in the second. Can you comment on how we should be thinking about the fiscal '27 data center revenue target you set back in September of 2024 at $1 billion with your current guidance, almost knocking on that now for fiscal '26? And then I have a follow-up.

謝謝早安。有幾個問題。首先，您能談談在氣候業務中將會遇到的未吸收成本的規模嗎？這就像在第二個中構建一樣嗎？您能否評論一下，我們應該如何看待您在 2024 年 9 月設定的 2027 財年資料中心收入目標（10 億美元），按照您目前的指導，2026 財年幾乎就要實現這個目標了？然後我有一個後續問題。

Yes. Matt, it's Mick. Thanks for the question. I think the -- the first question on the data center fixed costs. The best way to think about that is on 2 pieces. The core capacity that we put in place and that's rapidly filling up. We'll continue to convert at good margins at or above the CS segment margin.

是的。馬特，我是米克。謝謝你的提問。我認為第一個問題是關於資料中心的固定成本。思考這個問題的最佳方式是考慮兩件事。我們所建立的核心產能正在迅速填滿。我們將繼續以等於或高於 CS 部門利潤率的良好利潤率進行轉換。

When we think about the incremental capital investments, the $100 million that we're making in to expand facilities, adding more lines at current facilities plus a couple of brand-new facilities that Neil covered, that will start to ramp in the second half of the year and most likely won't capture the meaningful volume in to kind of beginning the new fiscal year.

當我們考慮增量資本投資時，我們將投入 1 億美元來擴大設施，在現有設施中增加更多生產線，再加上 Neil 提到的幾個全新設施，這些投資將在今年下半年開始增加，並且很可能不會在新財年開始時達到有意義的數量。

And so on that, we clearly raised our outlook here this year by about $100 million in top line that will probably convert a little bit lower. I think probably the incremental $100 million more like a 15% type net number. And in there is pretty good conversion at the gross profit line, but we're also adding a lot of resources and engineering to support the future growth.

因此，我們今年的營收預期明顯上調了約 1 億美元，但實際轉換率可能會略低一些。我認為增量 1 億美元可能更像是 15% 類型的淨數字。毛利的轉換率相當不錯，但我們也投入了大量資源和工程來支持未來的成長。

So get the short answer for you would be for the core business status quo, good conversion. The incremental $100 million probably a little bit below the normal segment average and I think it's probably closer to 15%, that's really hard some of the moving pieces to predict.

因此，對你來說，簡短的答案就是針對核心業務現狀，實現良好的轉換。1 億美元的增量可能略低於正常細分市場的平均水平，我認為可能接近 15%，因此一些變動因素確實很難預測。

And Matt the second question, you want to remind me that?

馬特，第二個問題，你想提醒我嗎？

Yes. I mean, if you're up 45%, that roughly would equate to $925 million, $950 million in DC revenues something in that range, but your target for fiscal '27 is $1 billion. What's the reasonable sort of way to kind of think about, all right, if we're $2 billion-ish in '28. What's the good starting point for our thinking with respect to '27 based on the $1 billion number that you have sitting out there?

是的。我的意思是，如果成長 45%，那大致相當於 DC 收入 9.25 億美元、9.5 億美元左右，但 27 財年的目標是 10 億美元。如果我們在 28 年的收入達到 20 億美元左右，那麼合理的想法是什麼？根據您給出的 10 億美元數字，我們對 27 年的思考的良好起點是什麼？

Yes. From my side, stay tuned, but you're right. I think for now, probably think about it as more of a straight line, and we are trending towards $1 billion this fiscal year. And you're right, when we did our IR Day last September, we were targeting the growth rate was implying $1 billion next year. So we have a lot of moving pieces with the production coming online that I think short of us coming back, and we will probably later in the year, Neil laid out a $2 billion goal in '28, '26 is clearly running towards the $1 billion until we know more, I think, kind of doing a straight line between the two would be the most logical unless, Neil, you have anything else do you want to add?

是的。從我的角度來看，請繼續關注，但你是對的。我認為就目前而言，可能將其視為一條直線，並且我們本財年的目標金額將達到 10 億美元。您說得對，去年 9 月我們舉辦投資者關係日時，我們設定的成長率是明年達到 10 億美元。因此，隨著生產的上線，我們有很多活動部件，我認為我們很快就會回來，我們可能會在今年晚些時候，尼爾在'28 年制定了 20 億美元的目標，'26 年顯然正在朝著 10 億美元邁進，直到我們了解更多信息，我認為，在兩者之間做一條直線是最合乎邏輯的，除非，尼爾，你還有什麼要補充的嗎？

No, I think that's a good approach.

不，我認為這是個好方法。

Very good. And then as my follow-up, you made a comment regarding profitability and how that sort of evolves first half, second half. When you say that margins are set to improve, is that a comment on the whole company or on both the segment level for both Climate and PT? And then I'll get back to queue. Thank you.

非常好。然後作為我的後續問題，您對盈利能力以及上半年和下半年盈利能力如何發展發表了評論。當您說利潤率將會提高時，這是對整個公司的評論，還是對 Climate 和 PT 兩個部門的評價？然後我會回到隊列。謝謝。

Yes. So a couple -- a few moving pieces there with regards to the margins. So first, for the total company, we still expect that we will have a margin improvement this year, and that will be driven mostly by Performance Technologies, and we see the -- our total company margins really beginning to step up in the second half of the year, our Q3 and our Q4.

是的。因此，關於利潤率，存在一些變動。首先，對於整個公司而言，我們仍然預計今年的利潤率將會提高，而這主要將受到 Performance Technologies 的推動，而且我們看到，我們整個公司的利潤率將在下半年（第三季和第四季）真正開始上升。

When we think about it by segment, I'll cover CS first, and then -- it really ties to what we just talked about. Big second half volumes coming in from the data center ramp. And then you can imagine, we are currently adding a lot of cost and preparing. So we'll be holding similar to kind of flat margins. We could be down a little bit and CS not in a meaningful way, but it's really bringing on costs here in the first half of the year.

當我們按部分考慮時，我會先介紹 CS，然後 - 它與我們剛才討論的內容真正相關。下半年，資料中心的吞吐量大幅提升。然後你可以想像，我們目前正在增加大量的成本和準備。因此我們將保持類似的平穩利潤率。我們的成本可能會略有下降，而且 CS 的影響並不大，但這確實會在今年上半年帶來成本。

In the second half, I mentioned the implied growth rate really is over 80% in the second half of our year for data centers. That's the kind of ramp we're looking at, including north of the $40 million inventory build here in the quarter. From a PT standpoint, we expect a good margin lift this year even with a flat to down volume. And that's been consistent with our transformation strategy. We still think we could generate 100 basis points or so of margin improvement.

在下半年，我提到我們資料中心下半年的隱含成長率確實超過 80%。這就是我們所期待的成長，包括本季超過 4000 萬美元的庫存成長。從 PT 的角度來看，即使銷售持平或下降，我們預計今年的利潤率也會大幅提升。這與我們的轉型策略是一致的。我們仍然認為我們可以實現 100 個基點左右的利潤率改善。

And again, we see that coming in the back half of the year, two things. The costs will continue to come out and at the same time, we'll see higher volumes starting to come a little bit in the second half of the year, both -- mainly from a year-over-year basis. So it'll be volume -- a little bit of volume, cost recovery on tariff and metals and then the cost-outs on the PT side driving the margin improvement.

我們再次看到，今年下半年將會發生兩件事。成本將繼續增加，同時，我們將看到下半年銷售開始略有增加，主要是從年比來看。因此，將是產量——少量的產量、關稅和金屬的成本回收，以及 PT 方面的成本支出推動利潤率的提高。

Great, thanks.

太好了，謝謝。

Brian Drab, William Blair.

布萊恩德拉布、威廉布萊爾。

Hi, thanks for taking my questions. I just wanted to ask about the capacity expansion first and just a couple of points of clarification. Your recent comments about how much capacity you had, I think you were saying we're approaching like $1.3 billion to $1.5 billion in revenue capacity.

你好，謝謝你回答我的問題。我首先想問產能擴張的問題，澄清幾點。您最近談到了您的產能，我想您是說我們的收入產能接近 13 億美元至 15 億美元。

And then you talked about this week, the $100 million in investment and the ability to get to $2 billion in revenue roughly. How much revenue are we thinking about adding with specifically tied to the $100 million investment.

然後你本週談到了 1 億美元的投資和大約 20 億美元收入的能力。我們考慮增加多少收入，具體與 1 億美元的投資掛鉤。

Yes, Brian, this is Neil. Good question. So the way that we're thinking about it in order for us to get to that $2 billion goal of '28, we would have to have about $2.5 billion of capacity in place. So that's -- we'd want to run around 80% capacity, if that makes sense. So that would be the difference between the two of those relative to the $100 million investment.

是的，布萊恩，我是尼爾。好問題。因此，我們認為，為了實現 28 年 20 億美元的目標，我們必須擁有約 25 億美元的產能。所以——如果合理的話，我們希望運行大約 80% 的容量。這就是相對於 1 億美元投資而言，兩者之間的差額。

And I'm trying to get to -- and a lot of people are trying to get to just like what's the return on investment here. But I mean it sounds like you're getting like $1 billion in capacity for $100 million investment. I mean can you help me with that? It seems like it's coming down ROIC, but this is what people are trying to calculate.

我正在嘗試了解——很多人都在嘗試了解這裡的投資回報率是多少。但我的意思是，這聽起來就像你用 1 億美元的投資獲得了 10 億美元的產能。我的意思是你能幫我嗎？看起來 ROIC 正在下降，但這正是人們試圖計算的。

About $1 billion.

約10億美元。

Yes. Yes. This is Mick jumping in. The ROIs that we -- as we run them are really high on these investments, highest we've seen well above any acquisition or organic, talking about 40%-plus type return on invested capital. The only thing I would add around the capacity when we talk about it is, it really depends on the product and the region.

是的。是的。這是米克跳進來的。我們在運行這些投資時發現，其投資回報率確實很高，遠高於任何收購或有機投資，投資資本回報率達到 40% 以上。當我們談論容量時，我唯一要補充的是，它實際上取決於產品和地區。

So when Neil lays out an estimated $2.5 billion of capacity, the products, right, are so large. It really -- the answer will always be we want to have the right mix, and we could always be adding more capacity. But it's air handlers there is the chillers, Europe versus North America, India versus North America. So when Neil makes the comment, it's a blended number and it's kind of an optimal capacity. But I think we will always get -- if we're doing our job and we're growing. Hopefully, we'll always have capacity issues that we're looking at expanding, but it really depends again by region and by product.

因此，當尼爾規劃出預計 25 億美元的產能時，產品規模就非常大。確實——答案永遠是我們希望有正確的組合，並且我們總是可以增加更多的容量。但它的空氣處理器有冷卻器，歐洲與北美，印度與北美。因此，當尼爾發表評論時，這是一個混合數字，也是一種最佳容量。但我認為，只要我們做好自己的工作並且不斷成長，我們就會一直進步。希望我們始終能夠解決產能問題並尋求擴大產能，但這實際上取決於地區和產品。

Okay. I mean, I'm doing like the math too simply with limited information. But I mean it seems like you're adding almost $1 billion in revenue capacity at maybe 15% EBITDA margin and getting $100-plus million in EBITDA, every year going forward on $100 million investment. It seems like -- I mean, like roughly like better than 100% ROIC. But I guess, I'll follow-up more later on that one.

好的。我的意思是，我根據有限的資訊做數學計算，結果太簡單了。但我的意思是，看起來你每年都會增加近 10 億美元的收入，EBITDA 利潤率可能為 15%，而 EBITDA 每年都會增加 1 億美元，而且每年的投資額都會達到 1 億美元。看起來——我的意思是，大致上比 100% ROIC 要好。但我想，我稍後會對此進行更多跟進。

Yes. Is that -- am I crazy like the initial thoughts I'm having on that, or no?

是的。那是——我是否像最初的想法一樣瘋狂，還是不是？

No. For sure, we look at -- what I mentioned -- we're well north of 40%, 50% return on capital, lots of assumptions to make there. But I think your question, your point, the payback and the ROI is really big on these. These are -- Neil said it before, we've built the reputation with our customers. We have the right products, the right brand, the reputation, service, quality, it's about capacity and execution.

不。當然，我們看到——正如我所提到的——我們的資本回報率遠遠超過 40% 或 50%，這裡有很多假設。但我認為你的問題、你的觀點、回報和投資報酬率都非常重要。這些是——尼爾之前說過，我們已經在客戶中建立了聲譽。我們擁有合適的產品、合適的品牌、聲譽、服務、質量，關鍵在於能力和執行力。

Okay. And then the 15 -- roughly 15% EBITDA margin you mentioned, Mick. Is that a level that you would think would be the long-term level of margin for that incremental capacity coming on? Or is that kind of how to think about it in the near term as you ramp up and get the full utilization in the new capacity?

好的。然後就是您提到的 15——大約 15% 的 EBITDA 利潤率，Mick。您是否認為這個水準將成為未來增量產能的長期利潤水準？或者說，在您擴大產能並充分利用新產能時，您近期應該如何考慮這個問題？

Yes. Great. I'm glad you clarified that. No. Long-term, we'll drive significantly higher margins, and it's always a step function. Phase 1 is capacity. Phase 2 is still capacity. Phase 3 is optimize it or max it out. And our data center businesses when they're running at normal capacity are at or above our segment averages.

是的。偉大的。我很高興你澄清了這一點。不。從長遠來看，我們將大幅提高利潤率，而且這始終是一個階梯式的過程。第一階段是容量。第二階段仍處於產能階段。第三階段是優化它或最大化它。我們的資料中心業務在正常容量運行時達到或超過了我們的行業平均水平。

So I was just commenting with the multiple lines coming on and new facilities. We often get asked like how come our margins are going up faster or more, and Neil and I -- our view has been will drive a lot more shareholder value by this 30% type earnings growth. And at some point, you focus a lot more on capacity utilization and margin. But for now, we're going to continue to put the capacity in place given the order book and the funnel we see in front of us.

所以我只是對即將推出的多條線路和新設施進行評論。我們經常被問到為什麼我們的利潤率成長得更快或更多，而尼爾和我的觀點是，這種 30% 的獲利成長將為股東帶來更多價值。在某些時候，你會更關注產能利用率和利潤率。但就目前而言，我們將根據訂單和眼前的管道繼續投入產能。

Yeah, perfect. Thank you I'll let others ask some questions thanks.

是的，完美。謝謝，我會讓其他人問一些問題，謝謝。

Noah Kaye, Oppenheimer.

諾亞·凱伊，奧本海默。

Thanks. Well, obviously, this back half ramp is really key for us all to understand. And I think have to pair the demand visibility part of this with understanding kind of what percentage of the capacity -- the new capacity is in place.

謝謝。嗯，顯然，理解這個後半坡道對於我們所有人來說都至關重要。我認為必須將需求可見度部分與了解產能百分比（新產能到位）結合。

So maybe on the demand side, first, can you just give us a sense of really the visibility to be able to raise the guide this early in the year. We're talking about nine months from now, are those orders pretty much baked. And then on the capacity, I mean, what has to happen in terms of percentage brought online in the guardrails to make sure you can hit or potentially even beat the target.

因此，也許在需求方面，首先，您能否讓我們真正了解一下能夠在今年年初提高指導價的可見度。我們談論的是九個月後，這些訂單是否基本上已經完成。然後關於容量，我的意思是，在護欄中上線的百分比需要發生什麼才能確保你能夠達到甚至可能超過目標。

Yes, thanks, Noah, for the question. Certainly, we have visibility that goes beyond a year. In some instances, it can go out as far as three years. And we're in close collaboration with our customers in terms of timing and how we need to stand up this additional capacity to meet their requirements, their demands and to fall in line with their data center time line constructions and build-outs.

是的，謝謝諾亞提出這個問題。當然，我們的預見性已經超越了一年。在某些情況下，這個時間可能會長達三年。我們與客戶在時間表以及如何提供額外容量以滿足他們的要求和需求以及符合他們的資料中心時間表建立和擴建方面保持密切合作。

So we essentially tie our schedule to their schedule. And then that allowed us the opportunity to go forward and put this additional capacity in place. So the first step is going to utilize existing infrastructures, existing areas where we have workforce and supply chain established. That's going to happen in the next three to four months or in the back -- in the next couple of quarters, we're going to be looking at retooling these facilities and standing them up for DC operations.

因此我們基本上將我們的日程安排與他們的日程安排聯繫起來。這給了我們繼續前進並實現額外產能的機會。因此，第一步是利用現有的基礎設施、現有的勞動力和供應鏈區域。這將在未來三到四個月內或之後的幾個季度內發生，我們將考慮重新裝備這些設施並使其為 DC 營運做好準備。

And then we have some newer facilities that we'll have to bring online that are greenfield. It will take a little bit longer because we don't have these established practices that we have with the existing facilities. So those will likely come online closer to the end of our fiscal year.

然後，我們必須將一些新建的設施投入使用。這將需要更長的時間，因為我們沒有現有設施所採用的這些既定做法。因此這些可能會在我們的財政年度結束前上線。

Okay. I mean I think to kind of further unpack that, to go from 30% to 45%. I mean, clearly, there's been a theme, right, all this earning season of the customers wanting more speed and accelerating their build. So is it the right characterization that basically you saw accelerated deployment schedules from customers in addition to expanded build. And so that's what's driving your own expansion. I just wanted to understand kind of the sequencing here on the decisions.

好的。我的意思是，我認為要進一步解釋這一點，從 30% 上升到 45%。我的意思是，顯然，在整個盈利季節都有一個主題，那就是客戶想要更快的速度並加速他們的建設。那麼，除了擴大建設之外，您還看到客戶的部署計畫加速了，這是正確的描述嗎？這就是推動你們自身擴張的動力。我只是想了解這些決策的順序。

Well, it's -- what's driving the expansion has certainly accelerated growth with our customers, existing customers as well as on-boarding new customers, right? We're gaining share in this market. And as we bring our technologies online and we bring new technologies to the market, there's an traction there. So it's with existing customers that are moving quicker than we anticipated, and it's winning share and bringing new customers on board at the same time.

嗯，推動擴張的因素肯定是加速了我們客戶、現有客戶以及新客戶的成長，對嗎？我們在這個市場的市佔率正在不斷擴大。當我們將我們的技術投入到線上並將新技術推向市場時，就會產生吸引力。因此，現有客戶的行動速度比我們預期的要快，它正在贏得市場份額，同時也吸引了新客戶。

Okay. Last one, Mick, as you mentioned, the outlook doesn't contemplate any divestiture proceeds. Maybe can you just sort of bring us up to speed on how that process is moving along? And any potential color on timing?

好的。最後一個問題，米克，正如您所提到的，前景並不考慮任何資產剝離收益。您能否向我們簡單介紹一下這一進程的進展？時間上有什麼潛在的影響嗎？

Yes. The two areas we've talked about in the past is -- we had announced -- I think it was last year that we had plans to sell the headquarters in our European location and -- as a reminder, we expect that to close later this year. That was estimated to be a $10 million to $15 million type transaction. We're just going through regulatory issues there, approvals -- local approvals.

是的。我們過去談論過的兩個領域是——我們已經宣布——我想是去年，我們計劃出售我們位於歐洲的總部——提醒一下，我們預計該交易將在今年稍後完成。據估計，這是一筆價值 1000 萬至 1500 萬美元的交易。我們正在處理那裡的監管問題、批准——地方批准。

And then Neil and I have talked about after the IR Day, we talked about $250 million to $300 million on light-duty business that we were going to deemphasize or exit, and we still have that process working and a team focused on that. So for now, I'll leave it at that until we have -- we'll come back and we have something definitive to share with the investors.

然後，尼爾和我談到了投資者關係日之後的情況，我們談到了我們將要減少或退出的 2.5 億至 3 億美元的輕型業務，我們仍在進行這一流程，並且有一個團隊專注於此。所以現在，我會把這件事擱置，直到我們回來並有一些明確的消息可以與投資者分享。

Thank you.

謝謝。

Chris Moore, CJS Securities.

克里斯·摩爾（Chris Moore），CJS 證券。

Hey, good morning guys. Lots of good stuff. Can you maybe just -- we've talked about a little bit the custom modular data center that you're developing with clients, can you talk about that a little bit further and kind of just any specifics there and what that kind of time line looks as you continue to work there?

嘿，大家早安。很多好東西。您能否—我們已經討論了一點您與客戶共同開發的客製化模組化資料中心，您能否進一步討論一下這個中心以及其中的具體細節，以及您繼續在那裡工作時的時間表是怎樣的？

Yes. Thanks, Chris, for the question. We're definitely seeing some customers in the market move in this direction, and it's to satisfy three things: speed, speed and speed. So you can essentially see this as a data center in a box, and it allows for our customers to ramp up their data center projects and facilities at a much quicker rate. It doesn't require the same amount of -- it doesn't require the same amount of labor as well as the skilled labor that it takes for construction.

是的。謝謝克里斯提出的問題。我們確實看到市場上的一些客戶正朝著這個方向發展，這是為了滿足三件事：速度、速度、速度。因此，您基本上可以將其視為一個盒子裡的資料中心，它可以讓我們的客戶以更快的速度擴大他們的資料中心項目和設施。它不需要與建築物同等數量的勞動力以及熟練勞動力。

So we're working with a very important customer. And we've identified a location in Calgary where we're making this product, and we're going to expand it into the US as well. And again, it's -- to help our customers get to the market quicker with their data center solutions.

所以我們正在與一位非常重要的客戶合作。我們已經在卡加利確定了生產該產品的地點，並且我們還將把它擴展到美國。再次強調，這是為了幫助我們的客戶更快地將他們的資料中心解決方案推向市場。

Got it. I appreciate that. We've been -- we've talked about the ICE rationalization for a while now. Are there other areas within Performance Technologies that you may be focusing on less moving forward?

知道了。我很感激。我們已經討論了 ICE 合理化問題已經有一段時間了。在性能技術領域，您是否還有其他領域可能不再是您關注的重點？

So we're constantly an evaluation of our markets, that's the beautiful thing about 80/20 as we've segmented the business into multiple markets, and then established key account strategy. Some things will come in and some things will go out. I think Mick mentioned the Genset in terms of where we're seeing that business kind of flatten that may allow for us to redeploy resources or activity in another area. We're in the process of evaluating different opportunities in PT.

因此，我們不斷對我們的市場進行評估，這就是 80/20 的美妙之處，因為我們將業務細分為多個市場，然後製定了關鍵客戶策略。有些東西會進來，有些東西會出去。我認為米克提到了發電機組，我們看到業務趨於平穩，這可能使我們能夠在另一個領域重新部署資源或活動。我們正在評估 PT 中的不同機會。

Got it. And maybe just the last one, more modeling. Cash flow down a little bit this year, you're going to be spending more, can you -- what interest expense sense in terms of a reasonable level for fiscal '26?

知道了。也許只是最後一個，更多的建模。今年的現金流會略有下降，你的支出將會更多，你能嗎——就 26 財年的合理水平而言，利息支出是多少？

Yes. Yes. Interest expense should be -- we've got a list of assumptions in the back, but $28 million to $30 million would be our current estimate for interest expense.

是的。是的。利息支出應該是——我們在後面有一份假設清單，但 2800 萬美元到 3000 萬美元是我們目前對利息支出的估計。

Perfect, I will leave it there. Thanks guys.

太好了，我就把它留在那裡。謝謝大家。

David Tarantino, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 David Tarantino。

Hey, good morning guys. Maybe just on the near-term data center trends. Could you give us a better picture on the underlying demand you're experiencing relative to the 15% growth in the first quarter? Just particularly relative to the pauses you noted in Europe last quarter relative to what is clearly robust demand in North America.

嘿，大家早安。也許只是關於近期資料中心的趨勢。您能否更詳細地描述相對於第一季 15% 的成長，您所經歷的潛在需求？特別是相對於上個季度歐洲出現的停頓，以及北美明顯強勁的需求。

Yes. It's Mick here. And I'll give you my view, and then Neil could jump in. So one of the things that on the positive side that we've seen happening as we've continued to win new programs. And so we started the year, we knew it would be a little bit more back half loaded, and we talked about for us, slightly lower than normal data center growth, even though Q1 came in at 15%. And then we had planned on a 30%-plus year. Some of the locations we've been supporting, Neil's talked about, we've won more buildings or more data centers.

是的。我是米克。我會向你介紹我的觀點，然後尼爾可以加入。因此，隨著我們不斷贏得新項目，我們看到的積極一面就是發生的事情。因此，在年初，我們知道資料中心的負載會稍微下降一些，我們談到，儘管第一季的成長率達到了 15%，但資料中心的成長速度仍略低於正常水準。然後我們計劃今年的成長率達到 30% 以上。正如尼爾所說，在我們支持的一些地點，我們贏得了更多的建築物或更多的資料中心。

And on top of it, Neil mentioned some of the customers have either asked to increase our volumes or accelerate volumes. So all of that has led to two things. Internally, we said we needed to have the capacity to support the growth the customers and the orders we have in hand, and then secondly, to meet this, the growing opportunity in order book we see for next year. So we really have seen an acceleration here in the second half, and it's us keeping up with the increase in orders and the increase in volumes.

除此之外，尼爾也提到，有些顧客要求增加我們的銷售量或加速銷售量。所有這些導致了兩件事。在內部，我們表示我們需要有能力支持客戶和現有訂單的成長，其次，為了滿足這項需求，我們看到明年訂單的成長機會。因此，我們確實看到了下半年的加速，我們跟上了訂單和銷售量的成長。

Neil, anything I missed.

尼爾，我錯過了什麼。

Yes. I would just add that we have the orders, we have the commitments to lead to the capacity expansion. We're comfortable with that. And that us introducing our chiller to the North America region has really helped us exploding growth. It is -- our chiller technology and the demand for our chiller has really driven us to drive more capacity inside of the United States to keep up with our customers' expectations.

是的。我只想補充一點，我們有訂單，我們有承諾來擴大產能。我們對此感到滿意。我們將冷水機組引入北美地區確實幫助我們實現了爆炸性增長。是的——我們的冷水機組技術和對冷水機組的需求確實促使我們在美國境內提高產能，以滿足客戶的期望。

Okay. Great. And then maybe could you give us a bit more color on the recent deals and how much they should contribute this year? And then just thinking about capital allocation, obviously, we're investing quite a bit more in data centers, but what should we expect otherwise following both all these deals and even more investment in data center?

好的。偉大的。那麼，您能否向我們詳細介紹一下最近的交易以及今年它們的貢獻有多大？然後考慮資本配置，顯然我們在資料中心的投資要多得多，但是在完成所有這些交易以及在資料中心進行更多投資之後，我們應該期待什麼呢？

Yes. it's Mick, I'll take that one. And again, Neil could add anything we want. So on a partial year basis, we should see from the last two about $100 million of incremental revenue. And from an L.B. White perspective, we talked about that one. That one, we expect to have margins initially, call it, in the 15% to 20% range. So not too far off of the Climate Solutions and quickly getting at or above our segment, and that also will help drive kind of second half of the year.

是的，是米克，我接受這個。再說一次，尼爾可以添加任何我們想要的東西。因此，從部分年份來看，我們應該看到最後兩年約有 1 億美元的增量收入。我們從 L.B. White 的角度討論了這個問題。我們預計最初的利潤率將在 15% 到 20% 之間。因此，我們離氣候解決方案的差距不會太大，而且很快就會達到或超過我們的細分市場，這也將有助於推動下半年的發展。

CDI is running below the segment -- the last acquisition we did. That was a company that had -- also had a large business that was supporting the rapid growth on the EV battery side on the battery factories. And we bought that for different reasons. And so that one is really a drive on our side to fill that manufacturing capacity, and then leverage the sales synergies, and we expect to drive margins up over the next year to be in line with our segment average. So little bit lower margins on the CDI side, and then L.B. White, call it, 15% to 20% and increasing from those two.

CDI 的運作低於該細分市場——這是我們進行的最後一次收購。那是一家擁有龐大業務的公司，支持著電池工廠在電動車電池方面的快速成長。我們購買它的原因各不相同。因此，這實際上是我們填補製造能力，然後利用銷售協同效應的一個動力，我們預計明年的利潤率將上升到與我們的部門平均值一致。因此，CDI 方面的利潤率略低，而 L.B. White 則將其稱為 15% 到 20%，並且比這兩個數字有所增加。

Capital allocation, Q1, I thought of $27 million, $20 million of that was in CS and mostly on data centers. With this year, we were already -- our plan was already to spend probably $40 million in capital on data center growth. So the announcement we did this week is an incremental $100 million on top of that. So we'll probably spend the next year, 12 months plus, somewhere between $140-plus million of capital on the data center side.

資本配置，第一季度，我認為是 2700 萬美元，其中 2000 萬美元用於 CS，主要用於資料中心。今年，我們已經計劃投入約 4000 萬美元用於資料中心的成長。因此，我們本周宣布將在此基礎上增加 1 億美元。因此，我們可能會在未來一年（12 個月）內，在資料中心方面投入 1.4 億美元以上的資金。

The PC is really in a maintenance mode. We're really doing mostly preventative maintenance and select program launches there. And then last thing I would say on the -- just capital allocation, M&A side, we'll expect -- you should expect from us, we'll probably have a pause here on the acquisition side for at least a couple of quarters. We need to digest three acquisitions, any of the divestiture work the team is working on and massive data center expansion. So balance sheet is still in great shape. But I think from a team going 3 different directions, all of you should expect we'll probably have a pause for at least a couple of quarters on the acquisition side.

PC 確實處於維護模式。我們實際上主要在那裡進行預防性維護和選擇程序啟動。最後我想說的是——就資本配置、併購方面而言，我們預計——你應該預料到，我們可能會在收購方面暫停至少幾季。我們需要消化三項收購、團隊正在進行的任何資產剝離工作以及大規模資料中心擴展。因此資產負債表仍然狀況良好。但我認為，從一個朝著三個不同方向發展的團隊來看，大家都應該預料到，我們在收購方面可能會暫停至少幾季。

Okay great thanks guys.

好的，非常感謝大家。

Jeff Van Sinderen, B. Riley Securities.

Jeff Van Sinderen，B. Riley 證券公司。

Good morning everyone, and great to hear about the expanding data center production. But are you also expanding data center service capabilities alongside that?

大家早安，很高興聽到資料中心生產規模不斷擴大的消息。但同時，您是否也在擴展資料中心的服務能力？

Certainly, that's a good question. Certainly, that is a product offering that we're -- we often bring to the market with our product solution sales. Absolutely, we've been doing some hiring in North America to support it. Our service group. We need to build out further service to support the growth, the tremendous growth that we have in just equipment sales in the United States to support it, not only short-term but long-term, it's necessary when you get the equipment out in the field to have people in place for start-up and installation.

當然，這是一個好問題。當然，這是我們經常透過產品解決​​方案銷售向市場提供的產品。當然，我們一直在北美招募一些人員來支持它。我們的服務團隊。我們需要進一步提供優質服務來支援成長，我們在美國設備銷售方面取得了巨大的成長，不僅要支援短期成長，而且要支援長期成長，當你將設備運送到現場時，有必要安排人員進行啟動和安裝。

So absolutely building that out at the rate that we can to keep up with the product demand as well as our controls. Our -- one of the -- one area that we think we have a unique solution that differentiates is our building management and our control system. So when you tie all of our equipment together and have it operate like an ecosystem, it becomes very efficient.

因此，我們絕對會以盡可能快的速度進行建設，以滿足產品需求以及我們的控制。我們認為我們擁有獨特解決方案的領域之一是我們的建築管理和控制系統。因此，當你將我們所有的設備連接在一起並讓它們像生態系統一樣運作時，它會變得非常有效率。

And in these days where the demand for power is so high or the need to reduce water reduction is so important, those efficiencies are extremely -- those efficiencies we drive are extremely well positioned in the market. So it's a good point. And yes, at the rate that we're growing with product sales, we need to keep pace with it on the service side as well.

在當今對電力的需求如此之高或減少用水量如此重要的情況下，我們所推動的效率在市場上處於極為有利的地位。所以這是一個很好的觀點。是的，隨著產品銷售的成長，我們也需要在服務方面跟上腳步。

Okay. Fair enough. And then you had one large order in the D.C. area, I think it was $180 million, somewhere in that area. With -- I believe it was a colo that you announced a few months ago. Is there other business of that magnitude out there that we could wake up and see a similar type announcement here over the next several quarters, that size?

好的。很公平。然後你們在華盛頓特區接到了一筆大訂單，我想是 1.8 億美元，就在那個地區的某個地方。我相信這是您幾個月前宣布的 colo。是否還有其他規模如此龐大的企業，讓我們能夠在接下來的幾季中看到類似規模的公告？

Yes. That's essentially what drove the $2 billion -- the $100 million of investment and drive to that $2 billion mark. It's a collection of orders of magnitude like that, correct?

是的。這基本上就是推動 20 億美元——1 億美元的投資和推動 20 億美元目標的動力。這是一系列數量級的集合，對嗎？

Okay. Good. And I realize you're pausing a little bit on the acquisition front. But any thoughts on where you might go or what you might look at when you resume looking at acquisitions, what areas might you focus on?

好的。好的。我意識到您在收購方面有些停頓。但是，當您重新開始考慮收購時，您有什麼想法可能會去哪裡或可能會關注什麼，您可能會關注哪些領域？

Certainly, we have -- I mean, we love the organic growth that we have in data center market today, but we also believe it's important to maintain a diversified business portfolio for the long-term. So we'll be actively building out our funnel over the next two quarters, that support our HVAC Technologies business and maybe even some vertical integration of the supply chain.

當然，我們——我的意思是，我們喜歡當今資料中心市場的有機成長，但我們也認為長期保持多元化的業務組合非常重要。因此，我們將在接下來的兩個季度積極建立我們的管道，以支援我們的 HVAC 技術業務，甚至支援供應鏈的某些垂直整合。

Okay great thanks for taking my questions. I'll take the rest offline.

好的，非常感謝您回答我的問題。我將把其餘部分下線。

Brian Sponheimer, Gabelli & Company.

布萊恩‧斯彭海默 (Brian Sponheimer)，Gabelli & Company。

Hi, good morning everyone, and congratulations again. Neil, you've had a terrific vision for the data center business. And obviously, these acquisitions within Climate Solutions are bolstering the remainder, which started the year at about an $800 million business.

大家早安，再次祝賀。尼爾，你對資料中心業務有著非常遠大的願景。顯然，氣候解決方案部門的這些收購正在增強其餘部門的業務，今年年初該部門的業務價值約為 8 億美元。

I guess my question is, where does that business need to get to? And where does data center need to get to, where you potentially are doing another separation, where you see those two businesses stand on their own, just from a strategic perspective, but also from a financial one?

我想我的問題是，這項業務需要達到什麼程度？資料中心需要達到什麼程度，你們可能在哪裡進行另一次分離，您是否看到這兩個業務獨立存在，不僅從戰略角度，而且從財務角度來看？

That's a good question, Brian. I appreciate that. And it's one thing to have a vision. It's another to have a team that can actually drive and execute on it. So I give all the credit to the team. We have to -- we'll have to relook at this as we continue to shift in our portfolio.

這是個好問題，布萊恩。我很感激。擁有願景是一回事。擁有一支能夠真正推動和執行的團隊是另一回事。所以我把所有的功勞都歸功於團隊。我們必須——隨著我們投資組合的不斷轉變，我們必須重新審視這一點。

As you know, we've divested multiple plants over the last few years, and we've acquired new businesses, and we've also had organic growth that's exceeded our expectations in other parts. So the business has changed quite dramatically since we launched the original segments several years back to support and complement our IR Day.

如您所知，過去幾年我們剝離了多家工廠，並收購了新業務，而且我們在其他領域的有機成長也超出了我們的預期。自從幾年前我們推出最初的部分來支持和補充我們的投資者關係日以來，業務發生了巨大的變化。

So definitely, that is something that we're going to have to look at going forward as we continue to rebalance and reposition the company. It will be a normal process of our 80/20 outlook. So we do that every year. And I suspect that we're going to do that again at the end of this fiscal year as well.

因此，當我們繼續重新平衡和重新定位公司時，這無疑是我們必須考慮的事情。這將是我們 80/20 觀點的正常過程。所以我們每年都會這樣做。我懷疑我們還會在本財年末再做一次。

All right, Terrific. Congratulations and look forward to what's next.

好的，太棒了。恭喜你並期待接下來的事情。

Thank you.

謝謝。

Matt Sumerville, DA Davidson.

馬特·薩默維爾、地方檢察官戴維森。

Thanks, just a follow-up, and I apologize if you hit this, I've lost the call for a second. But can you just flesh out a comment you just made a collection of new orders of that magnitude in the context of this $2 billion, should we assume a majority of the build to that $2 billion is based on an order in hand or in sort of backlog? I know you don't disclose orders in backlog. I guess I'm trying to get a sense of how much of that revenue objective is known and spoken for today. Does that make sense?

謝謝，只是跟進一下，如果您碰到這個問題，我很抱歉，我暫時失去了通話。但是，您能否詳細說明一下，您剛剛在 20 億美元的背景下收集瞭如此規模的新訂單，我們是否應該假設這 20 億美元的大部分是基於手頭的訂單還是積壓訂單？我知道你們不會透露積壓訂單。我想我正在嘗試了解目前有多少收入目標已被人們所知和談論。這樣有道理嗎？

Yes, it does make sense. So there's -- we have a backlog -- we have the highest backlog in data centers we've ever had. So it gives us confidence in order for us to be able to put forward that type of capital to grow and expand.

是的，這確實有道理。所以，我們有積壓訂單，我們的資料中心積壓訂單數量是有史以來最高的。因此，它給了我們信心，使我們能夠投入這種資本來發展和擴張。

We also have -- we are also the incumbent in a lot of these data centers. So we know and we see and we have visibility of the expansion of these data centers. And in our conversations, there isn't any reason for us to think that our data center customers would take a different solution, especially when it's about growth and speed and reliability. So it's the commitments that we have with our customers, it's the orders that we have with our customers. It's the outlook, it's the strategic relationships. All these things coming together is what gives us confidence to make that investment.

我們也是許多資料中心的現任營運商。因此，我們知道、看到並且能夠預見這些資料中心的擴展。在我們的對話中，我們沒有理由認為我們的資料中心客戶會採取不同的解決方案，特別是在涉及成長、速度和可靠性時。這是我們與客戶的承諾，也是我們與客戶之間的訂單。這是前景，這是戰略關係。所有這些因素加在一起，給了我們進行這項投資的信心。

Thank you for that. And then just as a follow-up, I want to go back to slide 4, talking about the modular data center that you're developing with the key customer. Talking about what I assume is this large air handling unit you're developing, I assume, for another customer. Are these solution sets portable across the customer base within data centers? And if so, how soon? Or is there some level of exclusivity you will be granting on these?

謝謝你。然後作為後續問題，我想回到投影片 4，討論您與主要客戶共同開發的模組化資料中心。我猜您正在為另一個客戶開發這個大型空氣處理裝置。這些解決方案集是否可以在資料中心內的客戶群之間移植？如果會的話，多久會快？或者您會授予這些一定程度的排他性？

Yes. With one, there is -- well, yes, it is exclusivity with the large -- particularly when you're working with the hyperscalers, yes, that's the case. But when it comes to the modular data center, certainly, there'll be different versions of that, right? They won't all look the same. Some will be very different. The concept will be the same, but what's inside and how they operate could be unique and bespoke for each one. Yes.

是的。首先，是的，大型企業具有排他性，特別是當你與超大規模企業合作時，是的，情況確實如此。但說到模組化資料中心，一定會有不同的版本，對嗎？它們看起來並不都一樣。有些會非常不同。概念是一樣的，但其內部結構和操作方式可能是獨一無二的，並且是為每個人量身定制的。是的。

Thank you.

謝謝。

I'm showing no further questions at this time. I would now like to turn the conference back to Kathy Powers.

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

Thank you, and thanks to everyone for joining our call this morning. A replay of the call will be available on our website in about 2 hours. Thanks.

謝謝大家，也謝謝大家今天早上參加我們的電話會議。大約兩小時後，我們的網站將提供此通話的重播。謝謝。