Modine Manufacturing Co (MOD) 2026 Q2 法說會逐字稿

Good morning and welcome to our conference call to discuss Modine's second 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. The slides that we will be using for today's presentation are available on the investor relations section of our website, Moin.com.

早安，歡迎參加我們的電話會議，我們將討論 Modine 2026 財年第二季的業績。與我一同出席的還有我們的總裁兼執行長尼爾·布林克，以及我們的執行副總裁兼財務長米克·盧卡雷利。我們今天示範所使用的幻燈片可以在我們網站 Moin.com 的投資者關係版塊找到。

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

該簡報的第 3 頁是我們關於前瞻性聲明的聲明。本次電話會議將包含我們在獲利報告中以及公司向美國證券交易委員會提交的文件中概述的前瞻性聲明。接下來，我將把電話交給尼爾。

Thank you, Kathy, and good morning, everyone. Last quarter we announced plans to significantly expand our US manufacturing capacity for data center products. We are continuing to invest in our fastest growing businesses and are actively advancing the strategy. In fact, we are accelerating other planned investments to meet the unprecedented demand for our products.

謝謝你，凱西，大家早安。上個季度我們宣布了大幅擴大美國資料中心產品製造能力的計畫。我們將繼續投資於成長最快的業務，並積極推動該策略。事實上，我們正​​在加快其他計劃中的投資，以滿足市場對我們產品前所未有的需求。

Our climate solution segment continues to deliver, posting a 24% increase in revenue. This includes contributions from our 3 acquisitions earlier this year. Absolute Air, LBY, and Climate by Design International. As we integrate these businesses, we are applying 80/20 principles to drive value by improving margins, increasing capacity utilization, and unlocking commercial opportunities to cross sell into new markets. Bringing these respected brands into the mode portfolio not only broadens our product offerings but also brings scale to HVAC technologies.

我們的氣候解決方案業務板塊持續成長，營收成長了 24%。這包括我們今年稍早完成的3項收購所帶來的收益。Absolute Air、LBY 和 Climate by Design International。在整合這些業務的過程中，我們運用 80/20 原則，透過提高利潤率、提高產能利用率和挖掘交叉銷售到新市場的商業機會來創造價值。將這些備受尊敬的品牌納入我們的產品組合，不僅拓寬了我們的產品供應，也擴大了暖通空調技術的規模。

Excluding these acquisitions, organic sales increased 15% from prior year, driven primarily by a 42% increase in data center sales. Over this past quarter, we've made substantial progress on our capacity expansion. I'm pleased to report that we've officially launched chiller production in our Grenada, Mississippi facility. In total, we plan to have 5 chiller lines in Grenada and are currently producing on 2 of these lines.

剔除這些收購，有機銷售額比前一年成長了 15%，主要得益於資料中心銷售額成長了 42%。在過去的一個季度裡，我們在產能擴張方面取得了實質進展。我很高興地宣布，我們位於密西西比州格林納達的工廠已正式啟動冷水機組的生產。我們計劃在格林納達建造 5 條冷水生產線，目前正在其中 2 條生產線上進行生產。

We're working on getting the incremental production lines in place and are on schedule to launch full production by the end of this fiscal year. We've also made good progress in Franklin, Wisconsin and Jefferson City, Missouri. Franklin is scheduled to launch initial production of data center products this quarter with volumes ramping through Q4.

我們正努力落實後續的生產線，並按計畫在本財年結束前全面投產。我們在威斯康辛州富蘭克林市和密蘇裡州傑斐遜市也取得了良好進展。富蘭克林計劃於本季開始資料中心產品的初步生產，並在第四季逐步提高產量。

We will have 4 chiller lines in Jeff City with the first 2 launching the 4th quarter and the remainder plan for later next fiscal year. The final site for our expansion has been secured in Grand Prairie, Texas, just outside of Dallas. This facility is planned to fully come online early next fiscal year, and we'll have 5 chiller lines.

我們將在傑夫城建造 4 條冷水生產線，其中前 2 條將於第四季投產，其餘生產線則計劃在下一財年稍後投產。我們最終選定了位於德州大草原市（達拉斯郊區）的擴張用地。該設施計劃於下個財政年度初全面投入運營，屆時我們將擁有 5 條冷水生產線。

Both the Franklin and the Dallas locations are being designed for flexible manufacturing with the ability to produce multiple products that can be flexed based on demand. Both facilities will be able to produce modular data centers which we see as a great opportunity. We've made initial shipments to one customer and are currently working through some design modifications. In addition, we are in early stages of discussions with others including both Hyperscalar and NeoCloud customers.

富蘭克林和達拉斯工廠都依照靈活生產模式設計，能夠生產多種產品，並可依需求靈活調整。這兩個工廠都將能夠生產模組化資料中心，我們認為這是一個絕佳的機會。我們已向一位客戶完成了首批出貨，目前正在進行一些設計修改。此外，我們正與其他公司（包括 Hyperscalar 和 NeoCloud 的客戶）進行初步洽談。

We are excited to be able to support our strategic customers with an innovative product that offers rapid deployment and scalability. We are making good progress overall, but current hurdles include the hiring and training of the workforce which is a heavy lift for the organization.

我們很高興能夠透過這款具有快速部署和可擴展性的創新產品來支援我們的策略客戶。總體而言，我們取得了良好的進展，但目前面臨的障礙包括員工的招募和培訓，這對組織來說是一項艱鉅的任務。

In total we've hired 1,200 employees to support data centers so far this year including temporary and contract workers and talent we've strategically redeployed from our performance technology segment. This added significant additional cost this quarter with little incremental revenue, resulting in temporary margin erosion and climb solutions.

今年到目前為止，我們總共僱用了 1200 名員工來支援資料中心，其中包括臨時工、合約工以及我們從效能技術部門策略性重新部署的人才。本季這增加了大量額外成本，但收入成長卻很少，導致利潤率暫時下降，需要採取補救措施。

We expect this to continue in Q3 and then improve in Q4 when volumes begin to ramp. We expect a significant jump in revenue between Q3 and Q4, driven by new capacity coming online. Outside of the US, we successfully launched production of data center products at our new Chennai, India facility.

我們預計這種情況將在第三季度持續，然後在第四季度隨著銷量開始成長而有所改善。我們預計第三季到第四季營收將大幅成長，這主要得益於新增產能的投入使用。在美國以外，我們在位於印度欽奈的新工廠成功啟動了資料中心產品的生產。

This strengthens our ability to serve customers in the APEC region with locally manufactured product. Furthermore, we are planning to expand chiller capacity in the UK to support demand for both hyper scalar and co-location customers in Europe. This incremental capacity is anticipated to come online early next fiscal year.

這將增強我們為亞太經合組織地區的客戶提供本地製造產品的能力。此外，我們計劃擴大在英國的冷水機組產能，以滿足歐洲超大規模資料中心和託管資料中心客戶的需求。預計新增產能將於下一財年初投入使用。

I currently see a path to deliver more than 60% revenue growth in data center this year on our way to achieve over $2 billion of revenues in fiscal 2028. This year marks a period of major investment in our data center businesses, driven by strong market demand. This is hard work for our organization, and we are addressing challenges and making adjustments along the way.

我目前看到一條途徑，今年資料中心營收成長將超過 60%，並預計在 2028 財年實現超過 20 億美元的營收。今年是我們在資料中心業務方面進行重大投資的一年，這主要得益於強勁的市場需求。這對我們組織來說是一項艱鉅的工作，我們正在應對挑戰並不斷做出調整。

In addition, this represents a major transition for the business, evolving from a low volume high mix manufacturing operation to a high volume producer. This is not a shift in strategy as we remain committed to serving as a premium, highly customizable provider.

此外，這也代表著企業的重大轉型，從小批量多品種的製造企業發展成為大批量生產商。這並非策略轉變，我們仍致力於成為一家優質、高度客製化的服務提供者。

However, we will now be able to deliver these specialized products at scale to meet the needs of our largest customers. This is important as large data centers, especially those specializing in AI applications, require our products to be delivered at a much greater rate than we have historically provided.

但是，我們現在將能夠大規模地交付這些專業產品，以滿足我們最大客戶的需求。這一點很重要，因為大型資料中心，尤其是那些專門從事人工智慧應用的資料中心，需要我們以比以往快得多的速度交付產品。

Fortunately, Modine is highly capable of ramping scale production on highly engineered product designs, a competency we have H1d over many years with our performance technologies business. This expertise is also why we have been successful in leveraging internal resources to support these critical projects. We have the right team in place and we are hyper focused on execution to deliver these innovative products our customers require.

幸運的是，Modine 非常有能力根據高度工程化的產品設計進行大規模生產，這是我們在高性能技術業務中多年來累積的能力。正是憑藉著這種專業知識，我們才能成功地運用內部資源來支持這些關鍵項目。我們擁有合適的團隊，並且高度專注於執行，以交付客戶所需的這些創新產品。

I want to stress again this is a very heavy lift for the data center team, but I remain confident in our ability to execute, meeting our targets and customer commitments. Please turn to page 5. Our end markets and performance technology segment continues to be challenged, but actions we've taken in response to these conditions are having a positive impact. Although revenues this quarter were down 4% from the prior year, adjusted EBITDA was up 3%.

我想再次強調，這對資料中心團隊來說是一項非常艱鉅的任務，但我仍然有信心我們能夠執行到位，實現我們的目標並履行對客戶的承諾。請翻到第5頁。我們的終端市場和性能技術部門仍然面臨挑戰，但我們為應對這些情況而採取的行動正在產生積極影響。儘管本季營收比去年同期下降了 4%，但調整後的 EBITDA 成長了 3%。

The segment adjusted EBITDA margins increased by 90 basis points, primarily due to the cost control measures we've taken out over the past few quarters, including actively reallocating resources to the climate solution segment. We are monitoring market conditions closely and we will continue to make adjustments as necessary.

此業務板塊調整後的 EBITDA 利潤率提高了 90 個基點，這主要是由於我們在過去幾個季度採取了成本控制措施，包括積極地將資源重新分配到氣候解決方案業務板塊。我們正在密切關注市場狀況，並將根據需要繼續做出調整。

I'm pleased to announce that the segment is now being led by Jeremy Patton, who joined our team as the President of Performance Technology segment last month. Jeremy's previous experience with transformational change with an 80/20 mindset makes him uniquely qualified to take on the challenges and opportunities ahead.

我很高興地宣布，該部門現在由傑里米·帕頓領導，他上個月加入我們的團隊，擔任性能技術部門總裁。傑瑞米先前在變革轉型方面的經驗，以及他運用 80/20 法則的思維方式，使他具備了應對未來挑戰和機會的獨特資格。

I'm happy to welcome Jeremy to the team and have confidence that he will continue the momentum created over these past quarters to drive margin improvement as we transform this portfolio. I'm extremely proud of the hard work being done in both segments to drive towards our vision of evolving our portfolio and pursuit of highly engineered mission-critical thermal solutions.

我很高興歡迎傑里米加入團隊，並相信他將延續過去幾季以來所取得的勢頭，在我們轉型該投資組合的過程中推動利潤率的提高。我為這兩個部門為實現我們的願景——不斷發展我們的產品組合併追求高度工程化的關鍵任務熱解決方案——所付出的辛勤努力感到無比自豪。

This is creating a great deal of organizational change and a heightened level of complexity. This includes integrating 3 acquisitions, expanding capacity across multiple locations around the globe to support data center growth, and exploring strategic divestiture opportunities and performance technologies.

這將造成巨大的組織變革和更高的複雜性。這包括整合 3 項收購，擴大全球多個地點的容量以支援資料中心成長，以及探索策略性資產剝離機會和效能技術。

We are moving people into new roles in support of these plans and are incurring temporary cost increases to support future growth. Although we will encounter obstacles along the way, this team is up for the challenge, giving me further confidence in our ability to reach our long-term targets. With that, I'll turn the call over to Mick.

為了支持這些計劃，我們正在將人員調配到新的崗位，為了支持未來的成長，我們將承擔暫時的成本增加。儘管我們在過程中會遇到障礙，但這個團隊已經準備好迎接挑戰，這讓我對我們實現長期目標的能力更有信心。接下來，我會把電話交給米克。

Thanks, Neil, and good morning, everyone. Please turn to slide 6 to begin reviewing the Q2 segment results. Climate Solutions delivered another quarter strong revenue growth with a 24% increase in sales. Driving this growth with data centers, which grew $67 million or 42%. [AAC] technologies increased $17 million or 25%, driven by inorganic sales from our recent acquisitions.

謝謝你，尼爾，大家早安。請翻到第 6 張投影片，開始查看第二季分部業績。氣候解決方案公司再次實現強勁的季度營收成長，銷售額成長了 24%。資料中心業務推動了這一成長，成長了 6,700 萬美元，增幅達 42%。 [AAC] 科技業務成長了 1,700 萬美元，增幅達 25%，主要得益於近期收購帶來的非內生性銷售成長。

This was partially offset by lower indoor air quality sales and lighter preseason stocking orders for heating products. Heat transfer solutions grew 2% or $3 million due to higher volume with commercial refrigeration and coding customers. Climate Solutions second quarter profit margins were lower than normal, and adjusted EBITDA declined 4%.

室內空氣品質產品銷售下降以及季前暖氣產品庫存訂單減少，部分抵消了上述影響。由於商業冷凍和編碼客戶的業務量增加，傳熱解決方案成長了 2%，即 300 萬美元。氣候解決方案第二季利潤率低於正常水平，調整後 EBITDA 下降 4%。

I want to review a few temporary factors that contributed to the decline this quarter. The largest impact was due to significant investments relating to the data center capacity expansion, including direct and indirect labor and overhead expenses needed to build out new production lines and facilities. As Neil previously covered, we're expanding production lines at several existing locations while also preparing to launch a few new facilities.

我想回顧一下導致本季業績下滑的一些暫時性因素。影響最大的是與資料中心容量擴張相關的大量投資，包括建造新生產線和設施所需的直接和間接人工及管理費用。正如尼爾之前報導的那樣，我們正在幾個現有地點擴建生產線，同時也在準備推出一些新工廠。

These actions are required to meet the growing customer demand for Mode products and more than double our revenue. While we expect to see sequential revenue growth in Q3, we won't begin to realize significant volumes in the new production facilities until our Q4. We also had a lower margin in HVAC technologies, which was mostly due to a negative mix impact. This was driven by lower preseason heating sales combined with the early integration steps for the 3 most recent acquisitions.

這些措施是為了滿足客戶對 Mode 產品日益增長的需求，並使我們的收入翻倍以上。雖然我們預計第三季營收將環比成長，但要到第四季度，新生產設施才能開始實現顯著的產量成長。我們在暖通空調技術領域的利潤率也較低，這主要是由於產品組合的負面影響。這是由於季前暖氣銷售額下降，以及最近 3 項收購的早期整合措施所致。

Eating represents some of our highest margin products, and the acquisitions are very early in the integration 80/20 phases. Within this product group, we anticipate a sequential margin improvement as we enter the heating season and began to implement 80-20 across the acquisitions and finally in HTS, the prior year included several million dollars of commercial pricing settlements from heat pump customers.

餐飲業務是我們利潤率最高的產品之一，而這些收購目前還處於整合 80/20 階段的早期階段。在這個產品組中，我們預計隨著暖氣季的到來，利潤率將逐步提高。我們開始在收購中實施 80-20 的利潤率調整，最終在 HTS 領域，上一年我們從熱泵客戶那裡獲得了數百萬美元的商業定價和解金。

As we implement a major step function change in our data center production capabilities, we anticipated that there would be significant unabsorbed costs as we launched the expansion plans. Looking to the second half of the year, we currently expect sequential margin improvement in Q3, but the margin will remain below normal operating levels until Q4. Then in Q4, we should begin to see more significant volumes from our new production lines which will allow us to more fully absorb the fixed incremental costs and exit the year at more normalized profit margins.

隨著我們對資料中心生產能力進行重大階躍式變革，我們預計在啟動擴建計畫時將會出現大量未吸收的成本。展望下半年，我們目前預計第三季利潤率將環比改善，但利潤率在第四季之前仍將低於正常營運水準。然後到了第四季度，我們應該會開始看到新生產線產量顯著增加，這將使我們能夠更充分地吸收固定增量成本，並以更正常的利潤率結束這一年。

Before moving on to performance technologies, I want to highlight that the demand for Modine data center solutions continues to grow, and we're increasing our revenue outlook for the current fiscal year. In order to support this growth and achieve our $2 billion dollar goal, we need to make significant capacity investments while still delivering on our earnings targets and this will set the stage for further revenue growth and margin improvement with the ability to move well above historical profit margins.

在介紹效能技術之前，我想強調的是，市場對 Modine 資料中心解決方案的需求持續成長，我們也提高了本財年的營收預期。為了支持這一成長並實現我們 20 億美元的目標，我們需要進行大量的產能投資，同時還要實現我們的獲利目標，這將為進一步的收入成長和利潤率的提高奠定基礎，並有可能遠超歷史利潤率。

Please turn to slide 7. Performance technologies revenue declined 4% from the prior year. Heavy duty equipment revenue is relatively flat, with stronger sales to construction and mining customers offset by lower genset sales. On highway applications decrease 3% or $7 million driven by lower commercial vehicle demand including specialty vehicle and bus customers. Despite the tough market conditions, adjusted EBITDA improved 3% from the prior year, and the adjusted EBITDA margin increased by 90 basis points to 14.7%. The margin increase was mostly driven by significant cost reductions and improved operating efficiencies.

請翻到第7頁投影片。性能技術收入較前一年下降 4%。重型設備收入相對平穩，建築和採礦客戶的銷售成長被發電機組銷售額下降所抵消。受商用車需求下降（包括特種車輛和公車客戶）的影響，公路應用需求下降了 3%，即 700 萬美元。儘管市場環境嚴峻，但調整後的 EBITDA 比上年增長了 3%，調整後的 EBITDA 利潤率提高了 90 個基點，達到 14.7%。利潤率的成長主要得益於成本的大幅降低和營運效率的提高。

Tariffs remain a significant challenge for all market participants, but our team is working hard to recover these increases through surcharges, along with our normal pass-through mechanisms. In addition, we’re reorganizing this business and reducing costs wherever possible, which resulted in a nearly $7 million dollar reduction in SG&A expenses this quarter. The team remains focused on margin improvement despite ongoing challenges with the in-market demand.

關稅仍然是所有市場參與者面臨的重大挑戰，但我們的團隊正在努力透過附加費以及我們正常的轉嫁機制來彌補這些成長。此外，我們正在重組這項業務，並盡可能降低成本，這使得本季銷售、一般及行政費用減少了近 700 萬美元。儘管市場需求持續面臨挑戰，團隊仍專注於提高利潤率。

As we look ahead, Q3 typically represents the lowest volume quarter due to seasonal patterns and holiday shutdowns by our elite customers. As a result, we expect that the Q3 margin will be down sequentially from Q2 but should be above the prior year. Then stepping back up sequentially in Q4 as we've done in previous years. Until the markets turn around, we'll stay focused on costs and operating efficiencies, which will allow us to drive higher operating leverage and margins when volumes improve.

展望未來，由於季節性因素和高端客戶的假日停業，第三季通常是銷售最低的季度。因此，我們預計第三季利潤率將比第二季度有所下降，但應該會高於去年同期水準。然後像往年一樣，在第四季逐步恢復正常水準。在市場好轉之前，我們將繼續專注於成本和營運效率，這將使我們能夠在銷售改善時實現更高的營運槓桿和利潤率。

Now let's review total company results, please turn to slide 8. Second quarter sales increased 12%, driven by the revenue growth and climate solutions. The gross margin declined 290 basis points to 22.3%, driven primarily by the factors that covered on the climate solution slide.

現在我們來回顧一下公司的整體業績，請翻到第 8 頁。第二季銷售額成長12%，主要得益於營收成長和氣候解決方案的推動。毛利率下降 290 個基點至 22.3%，主要原因是氣候解決方案幻燈片中涵蓋的因素。

SG&A expenses declined in the quarter, driven by performance technologies cost savings initiatives partially offset by incremental SG&A and the acquisitions in climate solutions. The net result was a 4% improvement in adjusted EBITDA from the prior year with a margin of 14%. With regards to EPS, the adjusted earnings per share was $1.06 or 9% higher than the prior year.

本季銷售、一般及行政費用下降，主要得益於性能技術成本節約計劃，但部分被新增銷售、一般及行政費用和氣候解決方案收購所抵銷。最終結果是調整後 EBITDA 比上年成長 4%，利潤率為 14%。就每股收益而言，調整後的每股收益比上年增長了 1.06 美元，增幅為 9%。

I want to again summarize the key items that impacted the Q2 margin and how we currently see our consolidated results for the balance of the year. For Q2 consolidated results, the adjusted IBA margin benefited from the year over year improvement in performance technologies. This was offset by the lower margin in climate solutions as I reviewed on that segment slide.

我想再次總結影響第二季利潤率的關鍵因素，以及我們目前對今年剩餘時間綜合業績的看法。在第二季合併業績中，經調整的 IBA 利潤率受益於績效技術的年比改善。正如我在該部分幻燈片中所述，氣候解決方案的利潤率較低，抵消了上述影響。

As we look to Q3, we anticipate the adjusted even to down margin will remain below normal levels in this quarter. Then based on the sequential improvements by both segments in Q4, we expect a significant increase in the sequential margin, which should be more in line with the prior year. Based on this second half outlook, we would exit the fiscal year at the highest quarterly margin rate and we would fully expect additional margin expansion in the new fiscal year consistent with our fiscal 2027 goals.

展望第三季度，我們預期調整後的損益平衡點仍將低於正常水準。根據第四季度兩個業務板塊的環比改善情況，我們預計環比利潤率將大幅提高，與去年同期水準更加接近。根據下半年的展望，我們將以最高的季度利潤率結束本財年，並且我們完全預期在新的財年中利潤率將進一步擴大，以符合我們 2027 財年的目標。

Now moving on to cash flow metrics, please turn to slide 9. Free cash flow with a negative $31 million in the second quarter. We anticipated lower cash flow primarily due to higher inventory builds and Capex in climate solutions.

接下來我們來看現金流指標，請翻到第9頁。第二季自由現金流為負3,100萬美元。我們預期現金流會下降，主要原因是庫存增加和氣候解決方案的資本支出增加。

We continue building significant data center inventory to support customer demand and delivery schedules in the second half of the year and second quarter free cash flow also included $9 million of cash payments, primarily related to restructuring and acquisition related costs.

我們繼續建造大量資料中心庫存，以支援下半年的客戶需求和交付計劃，第二季自由現金流量還包括 900 萬美元的現金支付，主要與重組和收購相關成本有關。

Net debt of $498 million was $219 million higher than the prior fiscal year end, directly related to the acquisitions of Absolute Air, LB White, and Climate by Design. With the investments and acquisitions and capital during the first half of the year and the associated earnings, our balance sheet remains quite strong, with a leverage ratio of 1.2.

淨債務為 4.98 億美元，比上一財年末增加了 2.19 億美元，這直接與收購 Absolute Air、LB White 和 Climate by Design 有關。憑藉著上半年的投資、收購和資本以及相關的收益，我們的資產負債表仍然非常強勁，槓桿率為 1.2。

Based on our earnings and cash flow outlook, we expect that the leverage ratio will decline further by fiscal year end. Now let's turn to flight 10 for our fiscal 2026 outlook. As we cross the midpoint of our fiscal year, we're raising our revenue outlook and reaffirming our earnings outlook. For fiscal 2026, we now expect total company sales to grow in the range of 15% to 20%.

根據我們的獲利和現金流預測，我們預計到本財年末槓桿率將進一步下降。現在讓我們來看看 2026 財年展望中的第 10 個航班。在我們進入本財年中期之際，我們提高了收入預期，並重申了獲利預期。我們現在預計，2026 財年公司總銷售額將成長 15% 至 20%。

For Climate Solutions, we're raising our outlook for the full year sales to grow 35% to 40% with data center sales now expected to grow in excess of 60% this year. With regards to data center sales growth, we anticipate sequential increases in Q3 and in Q4 with the second half year over year sales growth exceeding 90%.

對於氣候解決方案，我們將全年銷售額成長預期上調至 35% 至 40%，其中資料中心銷售額預計今年將成長超過 60%。關於資料中心銷售成長，我們預計第三季和第四季將環比成長，下半年將年比銷售成長超過 90%。

During the next quarter, the team will be further preparing numerous production lines both in existing and new facilities to support the strong orders. In 4 we anticipate our first full quarter of significant production volume from these new production lines or performance technologies, we're raising our sales outlook with revenue now anticipated to be flat to down 7%, improving from the prior range of down 2% to 12%.

在接下來的一個季度裡，團隊將進一步準備現有和新建工廠的多條生產線，以支援強勁的訂單需求。預計在第 4 個季度，這些新的生產線或性能技術將實現顯著的產量，因此我們提高了銷售預期，預計收入將持平或下降 7%，比之前的下降 2% 至 12% 的範圍有所改善。

We expect that the end markets will remain depressed with the ongoing trade conflicts and cautious market sentiment having a negative impact on market recoveries. However, last quarter, I explained that revenue was trending more favourable due to foreign exchange rates and the large amount of material cost recoveries. While the underlying market volumes have not recovered, we expect higher revenue as these trends have continued and we're adjusting the outlook accordingly. I want to point out that while the large cost recoveries help to protect our absolute level of earnings, they don't have a positive impact on our profit margins.

我們預計，持續的貿易衝突和謹慎的市場情緒將對市場復甦產生負面影響，終端市場將繼續低迷。然而，上個季度，我解釋說，由於外匯匯率和大量材料成本回收，收入趨勢更加有利。儘管基礎市場交易量尚未恢復，但隨著這些趨勢的持續，我們預計收入將會增加，因此我們正在相應地調整預期。我想指出，雖然大額成本回收有助於保護我們的絕對收益水平，但它們對我們的利潤率並沒有產生積極影響。

With regards to our full year earnings, we're balancing the higher revenue outlook with margins running temporarily below normal levels. Based on this, we're holding our fiscal 2026 adjusted EBITDA outlook to be in the range of $440 million to $470 million. For cash flow we anticipate generating free cash flow in the second half of the year.

關於我們全年的獲利情況，我們正在權衡更高的營收預期和暫時低於正常水平的利潤率。基於此，我們維持對 2026 財政年度調整後 EBITDA 的預期在 4.4 億美元至 4.7 億美元之間。對於現金流，我們預計下半年將產生自由現金流。

But lower as a percentage of sales compared to the prior year. For the full year we expect free cash flow to be in the range of 2.5% to 3% of sales. This is directly related to the significant investment in data center capacity that we're making this year along with higher working capital to support this rapidly growing business. This also includes cash required to fully fund our US pension plan. Prior to our planned annuitization in the 3rd quarter.

但佔銷售額的百分比低於前一年。我們預計全年自由現金流將佔銷售額的 2.5% 至 3%。這與我們今年對資料中心容量的大量投資以及為支持這項快速成長的業務而增加的營運資金直接相關。這也包括為我們的美國退休金計劃提供全額資金所需的現金。在第三季計劃進行年金化之前。

With the conclusion of this large project, we'll be able to remove a very large liability from the balance sheet along with the time and cost to manage it and consistent with our previous outlook, we're not including any cash proceeds from potential divestitures this year.

隨著這個大型專案的完成，我們將能夠從資產負債表中消除一項非常大的負債，以及管理該負債所需的時間和成本。與我們先前的展望一致，我們今年不會計入任何潛在資產剝離的現金收益。

Looking ahead to next year, we anticipate that our free cash flow margin will return to previous levels and be in line with our fiscal 2027 targets. To wrap up, we have a lot of moving pieces this quarter, including significant cost reductions in performance technologies combined with large investments in climate solutions for the 3 acquisitions and the data center expansion.

展望明年，我們預計自由現金流利潤率將恢復到先前的水平，並符合我們 2027 財年的目標。總而言之，本季我們有很多事情需要處理，包括大幅降低效能技術成本，以及對 3 項收購和資料中心擴建的氣候解決方案進行大量投資。

This represents a lot of change and the team will continue to execute as we've done throughout our transformation. These activities are critical elements of our strategic transformation and capital allocation strategy. We remain confident that these actions are setting the stage for long-term sustainable growth promoting shareholders. With that, Neil and I will take your questions.

這代表著許多變化，團隊將繼續像我們在整個轉型過程中所做的那樣執行各項工作。這些活動是我們策略轉型和資本配置策略的關鍵要素。我們仍然相信，這些措施將為長期可持續成長奠定基礎，進而促進股東利益。接下來，我和尼爾將回答大家的問題。

(Operator instructions).

（操作說明）

Matt Somerville with DA Davidson.

馬特·薩默維爾與地方檢察官戴維森。

Thanks morning guys. Can you maybe first, on the climate side of business, can you maybe first arse out year over year margin contraction. On sort of the what was data center driven, what was mixed driven, and what those headwinds were, maybe providing a bridge and basis points and then sort of more of a definitive sort of layout in terms of how you get back to normal in fiscal 4th quarter which I would assume implies 21% at the segment level. And then making your prepared remarks, you also added colour on a comment that climate has the potential going forward to punch well above historical profitability. So maybe if you could frame that and then have a follow-up.

謝謝各位早安。首先，在業務的氣候方面，您能否先解決逐年利潤率下降的問題？關於哪些是資料中心驅動的，哪些是混合驅動的，以及這些不利因素是什麼，也許可以提供一些過渡和基點，然後更明確地規劃一下如何在第四財季恢復正常，我假設這意味著在部門層面上達到 21%。然後，在發表事先準備好的演講時，您還補充了一條評論，即氣候變遷未來有可能帶來遠超歷史水平的盈利能力。所以，或許你可以先把這個問題整理好框架，然後再跟進。

Yeah, Neil, do you want me to take it first? Yeah, hey man, thanks for the question. So, if we start first with your Q2 question as we break down the margin if we want to talk about basis points. The biggest portion of the margin in the in the quarter was on the data center expansion side, about 225 basis points to 250 basis points.

尼爾，要我先試試嗎？是啊，嘿，哥們，謝謝你的提問。所以，如果我們先從你的 Q2 問題開始，當我們要討論基點時，我們就來分解利潤率。本季利潤率的最大部分來自資料中心擴張方面，約 225 至 250 個基點。

On the data center side, and that was about $10 million to $12 million of higher costs, really split between labour and overhead, a little bit of material in there, and Neil can talk a little bit more about that.

在資料中心方面，成本增加了大約 1000 萬到 1200 萬美元，主要包括人工和管理費用，還有一些材料費用，尼爾可以就此多談談。

And then on the HTS side last year we had some really large heat pump settlements if anyone would recall after the market downturn that was about 125 basis points and then on the HVAC technologies and kind of other, it was about 100 basis points. HVAC technologies was mostly a mixed issue and some startup integration costs on the acquisitions. So, that's the breakdown of Q2. Neil and I can give you a walk to as we get to Q3 and Q4, before I turn it back to Neil, the thing I would, you asked at the end about beyond, so when we give you the walk.

去年，在 HTS 方面，我們達成了一些非常大的熱泵結算協議，如果有人還記得的話，在市場低迷之後，結算金額約為 125 個基點；而在 HVAC 技術和其他方面，結算金額約為 100 個基點。HVAC 技術方面的問題較為複雜，收購過程中也存在一些啟動整合成本。以上就是第二季的詳細情況。尼爾和我可以帶你走一走，當我們到達 Q3 和 Q4 時，在我把話題轉回給尼爾之前，我想問的是，你在最後問到了關於更遠的地方，所以當我們帶你走一走的時候。

We are building capacity to not only get to our goal of the $2 billion, but we'll have capacity to produce more than that. That's not running every plant 3 shifts 7 days a week. Obviously, once you get to normal production levels and you move start moving towards full capacity, the incremental margins are quite high, so that's why I said. Once we get to normalized levels, production levels, we'll get to more normal. EA margins for CS and then beyond very high incremental or variable contribution rates. Neil, maybe I'll turn it back to you on how we're looking at Q3 and Q4.

我們正在提升產能，不僅要實現 20 億美元的目標，還要有能力生產更多。那並不是說每個工廠都要每週7天、每天3班運作。顯然，一旦達到正常的生產水平並開始向滿載運轉邁進，增量利潤率就會相當高，所以我才這麼說。一旦生產水準恢復正常，一切就會恢復正常。EA利潤率適用於CS，並且具有非常高的增量或可變貢獻率。尼爾，或許我應該把這個問題拋回給你，讓你談談我們如何看待第三季和第四季。

Yeah, the piece that I'll add to that is that you know we expected some level of launch costs. I mean that's to be expected we added over 1,200 people into the organization. Over the last few months, there was a little, it turned out to be a little bit more, a little higher than what we anticipated, but we have to understand root cause and what that is, and we do understand that. Essentially, we had such high demand and expectations for our customers to pull in dates and ship product early that we had to divide our resources and we went with multiple launches at once.

是的，我還要補充一點，我們預期會有一定的啟動成本。我的意思是，這是意料之中的，我們組織增加了 1200 多人。過去幾個月，情況比我們預期的要好一些，結果比預期的要多一些，但我們必須了解根本原因是什麼，而我們也確實了解這一點。本質上，由於客戶對提早確定日期和發貨日期有著極高的要求和期望，我們不得不分散資源，同時進行多次產品發布。

So we recognize the impact of that, we recognize the cost of that, and we have now reverted back to the standard launch process which is more controlled. We have the right amount of specialists on the job in terms of how we do it. We're leveraging 80/20 for scheduling and. Times and we've got better alignment around our customer expectations and schedules so we try to do something a little bit different to meet the demand we try to do something a little bit different to launch faster to help our support our customers schedules and it was costly to do that.

因此，我們認識到了這種做法的影響，也認識到了這種做法的成本，現在我們已經恢復到更可控的標準發布流程。就我們的工作方式而言，我們擁有足夠數量的專業人員。我們正在利用 80/20 法則進行日程安排。隨著時代變遷，我們更好地契合了客戶的期望和時間安排，因此我們嘗試做一些不同的事情來滿足需求，我們嘗試做一些不同的事情來更快地推出產品，以幫助支持客戶的進度安排，但這樣做成本很高。

Appreciate.

欣賞。

That colour if I can you know stay in.

如果可以的話，你知道，就待在家裡吧。

Yeah. Just quick you asked about the ramps too. The step up we talked about some improvement in Q3 and then you'd ask, I want to make sure we address you asked about getting back to a 20+ percent type level in Q4 for us, implied guidance, about 90% in the second half, we do see sequential growth, so the growth rate continuing to improve.

是的。剛才你還問了坡道的事。我們談到第三季的一些改善，然後您問，我想確保我們回答您關於第四季度能否恢復到 20% 以上的水平的問題，我們暗示下半年將達到 90% 左右，我們確實看到了環比增長，所以增長率將繼續提高。

And for us to get to our Q3 targets we probably need $40 million to $50 million of incremental capacity coming online and that's, if we have 2 chiller lines we're good there to get to Q4, another $75 million to $100 million of volume revenue capacity and that would be. Roughly, minimum another 5 chiller lines and we can cover that with you guys online or offline. A lot of you know those plans were we're on track. And that doesn't include sales of any other products, air handlers or on the modular side, but if you're thinking about that ramp up, it's really bringing on fully producing at least 2 lines in Q3, and then another 5 lines talking chillers only in Q4.

為了實現我們第三季的目標，我們可能需要新增 4,000 萬至 5,000 萬美元的產能，如果我們有兩條冷水機組生產線，那麼到第四季度，我們就能實現目標，還需要新增 7,500 萬至 1 億美元的銷售收入產能。粗略估計，至少還需要 5 條冷水生產線，我們可以線上或線下與你們溝通解決這個問題。你們很多人都知道這些計劃，我們目前進展順利。這還不包括其他產品的銷售，例如空氣處理機或模組化產品，但如果你考慮產能提升，實際上意味著在第三季度至少全面投產兩條生產線，然後在第四季度再投產五條僅生產冷水機的生產線。

Super helpful. I appreciate all that detail. I want to stay inside the data center business for my follow-up. 90 days ago, you mentioned establishing a data center sort of goal approaching $2 billion in fiscal 2028. Now you're talking about a number over $2 billion just 90 days later. Did something change with order activity, funnel customer acquisition and ultimately as you get to the tail end of this capacitization journey both in North America and now in the UK, where will your capacity actually be? And should we be thinking about maybe something a bit materially higher than $2 billion in 28 based on what I'm describing there? Thank you.

非常有用。我很欣賞你提供的所有細節。我希望後續研究方向仍是資料中心產業。 90天前，您提到製定了資料中心業務目標，目標是在2028財年達到20億美元的規模。僅僅90天后，這個數字就超過了20億美元。訂單活動、客戶獲取管道以及最終在北美和現在的英國，隨著產能提升進程的推進，您的實際產能會達到什麼水平？根據我剛才所描述的情況，我們是否應該考慮在 2028 年實現比 20 億美元更高的目標？謝謝。

Yeah, thanks Matt. You know what's changed in the last 90 days is definitely the order and the funnel rates and we're seeing more demand we're seeing. Our relationships with our customers continue to evolve in a great way, and the aperture in terms of the scheduling and the outlook has widened to where we can see more, and it gives us more confidence to continue to deploy Capex.

謝謝你，馬特。你知道，過去 90 天發生的變化肯定是訂單和轉換率，我們看到了更大的需求。我們與客戶的關係持續朝著好的方向發展，在進度安排和前景方面視野更加開闊，我們可以看到更多，這讓我們更有信心繼續進行資本支出。

So that, that's what has changed. We, we've seen it with not only. Expanding our product lines and what we have today, but also new products that we're going to market with and launching. One example of those would be our modular data centers so that the market looks pretty promising and we feel that we have the right technology to support it and we feel we have the right timelines to meet the customer demands and it it's just confidence giving us more confidence in terms of where we're at.

所以，這就是變化所在。我們不僅在其他地方看到了這一點。我們正在拓展產品線，不僅包括我們現有的產品，還包括即將推向市場並推出的新產品。例如，我們的模組化資料中心就是其中之一，因此市場前景非常光明，我們認為我們擁有合適的技術來支援它，我們認為我們有合適的時間表來滿足客戶的需求，這讓我們對我們所處的位置更有信心。

Thanks Neil.

謝謝你，尼爾。

David Tarantino with KeyBanc Capital Markets.

David Tarantino，KeyBanc Capital Markets。

Hey, good morning guys.

嘿，各位早安。

Good Morning.

早安.

So I just want to follow-up on the margin commentary. Just what gives you the confidence that margins should normalize going into 4Q beyond just the accelerated capacity given investments should continue, and I know it's further out, but how should we think about margins as it relates to the longer-term targets that you laid out as you accelerate the rate of production here? Is the 4 implied run rate a sustainable way to think about kind of the longer-term margins?

所以我想就邊注做一些補充說明。除了產能加速提升之外，您還有什麼理由相信第四季利潤率會恢復正常？考慮到投資應該繼續，我知道這還比較遙遠，但隨著您加快生產速度，我們應該如何看待利潤率與您制定的長期目標之間的關係？4 隱含運轉率是否是一種可持續的考慮長期利潤率的方式？

Yeah, so thank you, David. A few things, right? We're doing a lot of, there's a lot of new products, new process, new plant, new people, and that's not efficient, most of the time in these launches, and we recognize that. But every time we do this for every product that we ship. We learn from it, and when we learn from it, that's going to make us better.

是的，謝謝你，大衛。有幾件事，對吧？我們正在做很多事情，有很多新產品、新流程、新工廠、新員工，而這些在產品發布過程中通常效率不高，我們也意識到了這一點。但我們每次出貨都會這樣做。我們從中吸取教訓，而當我們從中學習時，那將使我們變得更好。

So as we work through the Grenada launch, we work through our Rock Bridge launch and data centers, we learned a lot that we know that we can apply those lessons learned as we continue to roll out more chiller lines, for example, or more modular lines in different facilities and different factories. So, it's the learning, it's the ability to get more efficient. It's our expertise in terms of design for manufacturability, design for quality, all those things that we're getting better at as we launch gives us the confidence that we'll improve the margins, as we move out later in the calendar year.

因此，在我們推進格林納達項目、羅克布里奇項目和數據中心建設的過程中，我們學到了很多東西，我們知道，當我們繼續推出更多冷水機組生產線，或者在不同的設施和工廠推出更多模組化生產線時，我們可以應用這些經驗教訓。所以，關鍵在於學習，在於提高效率的能力。我們在可製造性設計、品質設計等方面的專業知識，以及我們在產品發布過程中不斷改進的所有這些方面，使我們有信心在今年稍後提高利潤率。

Yeah, the only thing I would add is that margin improvement is twofold, building what Neil said so if you think about the challenges of, starting a new facility or a new line, so one I'd say our mature our mature data center regions and plants are operating at margins that are above the segments. And we knew as we fold more volume into existing stable facilities, we could get the margin higher.

是的，我唯一要補充的是，利潤率的提高是雙重的，正如尼爾所說，如果你想想開辦新工廠或新生產線所面臨的挑戰，那麼首先，我認為我們成熟的資料中心區域和工廠的利潤率高於其他部門。我們知道，隨著現有穩定設施產能的不斷提高，我們可以獲得更高的利潤率。

Then, as we launch a new green field, there's fixed cost absorbed in this issues just to get to a scale to cover the incremental fixed cost, and then what Neil also covered in some of these cases where we've had extra labour or training, you have inefficiencies, so. The message and how the ramp will work is we are as the new lines come on.

然後，當我們啟動一個全新的專案時，為了達到足以彌補新增固定成本的規模，就需要承擔一定的固定成本。此外，正如尼爾也提到的，在某些情況下，當我們投入額外的勞動力或進行培訓時，就會出現效率低下的問題。資訊和過渡方案將如何運作，取決於新線路的開通情況。

We are now bringing on more volume to leverage our fixed costs and as we get better at it, that, the negative on a normal conversion is inefficiency, we're also chipping away and improving our processes, so it's a volume and a lean initiative if you want to think about it that way.

我們現在正在增加產量以利用我們的固定成本，隨著我們在這方面做得越來越好，正常轉化率的缺點是效率低下，我們也在逐步改進我們的流程，所以如果你願意這樣想的話，這是一個規模化和精益化的舉措。

Okay, great, and I want to follow-up on Matt's second question just given the acceleration and investments here, how are we thinking about this as it relates to the shape of the growth longer-term to get to the targeted above $2 billion in sales by fiscal 2028 and I just want to, clarify that that is kind of a slight raise for the prior expectations and if so. Where what is the new target in terms of sales capacity in terms of the investments you're making.

好的，太好了。我想就 Matt 的第二個問題做個後續說明。鑑於目前的加速發展和投資，我們是如何看待這與長期成長模式的關係的？我們能否在 2028 財年實現超過 20 億美元的銷售目標？我想澄清一下，這比之前的預期略有提高，如果是這樣的話。就你們的投資而言，新的銷售能力目標是什麼？

Yeah, we, I mean, we haven't come up with a specific number. We're always going to give ranges, but again, the order profiles, the new product launches, the new product development that we're working on, new regions that we see, that are timed perfectly for our execution in terms of how we launch these facilities and factories and deploy the Capex. So, we just have a lot of visibility and there's a lot of interest and there's a lot of desire for our products because of the technologies. We've put ourselves in a really good position over the last few years where we've acquired the right technologies, we've developed the right technologies, we've built the relationships, with all the major hypers, Neo cloud providers, co-location providers. They're generally growing at pretty good rates, so we have, our funnel continues to grow, which gives us the It further confidence deploy capital and to hire people to launch products.

是的，我的意思是，我們還沒有確定一個具體的數字。我們總是會給出範圍，但同樣，訂單情況、新產品發布、我們正在進行的新產品開發、我們看到的新區域，這些都與我們啟動這些設施和工廠以及部署資本支出的執行時機完美契合。所以，由於這些技術，我們的產品獲得了很高的知名度，引起了許多人的興趣和需求。在過去的幾年裡，我們已經讓自己處於非常有利的地位，我們獲得了正確的技術，我們開發了正確的技術，我們與所有主要的超高速伺服器、新雲端供應商、託管供應商建立了關係。它們的成長率總體來說相當不錯，所以我們的銷售漏斗也在不斷成長，這讓我們更有信心部署資金並招募人員來推出產品。

Great thanks guys.

非常感謝各位。

And moving next to Chris Moore with CJS Securities.

接下來是 CJS Securities 的 Chris Moore。

Hey, good morning guys. Let's stay with data center. So when you, when you've talked about data centers in the past in terms of Modine's positioning, expected growth, and one of the consistent themes has been you're focused on providing, a relatively small subset of the market, exceptional products and services. So, when you think about just for example 2 billion data center targeted fiscal 2028.

嘿，各位早安。我們還是繼續討論資料中心吧。所以，當您過去談到資料中心時，談到 Modine 的定位、預期成長，其中一個始終不變的主題是，您專注於為市場中相對較小的一部分提供卓越的產品和服務。所以，舉個例子來說，想想看，到 2028 財年，資料中心的目標規模將達到 20 億美元。

I'm just trying to get a sense as to how you view the total addressable market in calendar 2027. I mean, is $2 billion, is that is that 10% of the available HVAC market? Is it a bigger percentage of that just. Just trying to understand kind of where that puts Modine in the overall, kind of structure of the HVAC market on the data center side.

我只是想了解一下您如何看待 2027 年的潛在市場總量。我的意思是，20億美元，是不是只佔現有暖通空調市場的10%？是不是佔了更大的比例？我只是想了解 Modine 在資料中心領域的 HVAC 市場整體結構中處於什麼位置。

Sure, thank you for that. Around $2 billion and remember the TAM is going to continue to grow as we've seen the amount of CapEx that's being deployed in the data center market across the board. So, your TAM is expanding and are we expanding at a similar rate? We're growing above the market, we're growing faster than the market, so we're gaining share. So, we were a single-digit, low single-digit when we started this journey. Last year, we got into double-digit, low double-digits, and if we get into the $2 billion range with some assumptions that we've made on market size and, what that available market is that we can address, it probably puts us anywhere between 15% and 20% at that point, Chris.

當然，謝謝你。大約 20 億美元，而且別忘了，隨著資料中心市場全面投入資本支出，TAM 也將持續成長。所以，你們的潛在市場規模正在擴大，我們的擴張速度是否也類似？我們的成長速度高於市場平均水平，因此我們正在獲得市場份額。所以，當我們開始這段旅程時，我們的人數只有個位數，甚至不到個位數。去年，我們的成長率達到了兩位數，低兩位數。如果我們按照我們對市場規模和我們可以開拓的可用市場所做的一些假設，達到 20 億美元的規模，那麼到那時，我們的市場份額可能在 15% 到 20% 之間，克里斯。

Very helpful, thank you. And maybe just my follow-up, recognizing you don't necessarily look at your data center solutions discreetly, air cooled versus liquid cooled when you talk again about the $2 billion target, how do you view the relative contribution of air versus liquid at that level?

非常有用，謝謝。我還有一個後續問題，我知道您在談到 20 億美元的目標時，並不一定單獨看待資料中心解決方案，例如風冷與液冷，那麼您如何看待風冷與液冷在該層面的相對貢獻呢？

Well, you need both for, you need both in this space today. It requires both they complement one another, but where we're seeing a lot of the growth and where we're seeing a lot of the demand with our with our closest customers is with the deployment of AI. So, it's going to require, a great chiller product which we have, it's going to require the air-cooling products that we have to help augment it and you know. CDUs as well so we're seeing the growth and a lot of the growth is coming from AI expansion.

嗯，在這個領域，你兩者都需要。這需要兩者互相補充，但我們從最親密的客戶那裡看到很多成長和很多需求的地方，就是人工智慧的部署。所以，它需要一款優秀的冷水機產品（我們有），還需要我們現有的空氣冷卻產品來輔助它，你知道的。CDU 也是一樣，所以我們看到了成長，而許多成長都來自人工智慧的擴張。

And on the margin, there's a relatively consistent margin profile across the product suite obviously services at the highest end and we get a lot of questions on that that will grow as our install base grows over time, but the contribution margin is relatively consistent across our product suite.

從利潤率來看，我們整個產品套件的利潤率都相對穩定，當然，高端服務除外，我們經常被問到這個問題，隨著我們的安裝基礎隨著時間的推移而增長，利潤率也會增長，但我們整個產品套件的貢獻利潤率都相對穩定。

Got it. I appreciate it guys. I will leave it there.

知道了。謝謝大家。我就說到這裡吧。

Noah Kaay with Oppenheimer.

Noah Kaay 與 Oppenheimer 合作。

Thank you. I mean, so much focus, today on these margins and the incremental, certainly for good reason. I may want to ask a different way.

謝謝。我的意思是，如今人們如此關注這些利潤率和增量，當然這是有充分理由的。我或許應該換個方式問。

Is the right way to think about what's going on here that you've largely front loaded a lot of the investments associated with the multi-year capacity ramp and that perhaps starting with 4Q we start to see more normal incremental. In CS and specifically in data center, if that's the case, even though you're opening, more plants over the coming years, again, what gives you confidence that we can see that kind of level of normal incremental based off of the specific products that you're making and the configuration of the lines that you're setting up.

正確的理解方式是，你們已經將與多年產能提升相關的許多投資提前投入，也許從第四季度開始，我們才會看到更正常的增量。在電腦科學領域，尤其是在資料中心領域，如果情況確實如此，即使您在未來幾年開設更多工廠，那麼是什麼讓您有信心根據您生產的具體產品和您正在設置的生產線配置，看到這種水平的正常增長呢？

You want me to take it? Yeah, no, it's Mick. Well, probably the best, example we can give if we look at the last year. Where a year and a half ago or before that, we moved and we launched production of chillers in North America for the first time and Last year on the data center side we were able to generate margins that were.

你想讓我拿走嗎？不，是米克。嗯，如果我們回顧過去一年，或許就能找到最好的例子。大約一年半前，或更早之前，我們搬遷並首次在北美啟動了冷水機組的生產。去年，我們在資料中心方面實現了利潤。

In line with the rest of the segment of the rest of the rest of our data center business and if I recall, we had a quarter to a really high margin on leveraging that volume and we had nice improvement last year. It really is about, and Neil was talking about this, it's A rinse and repeat of products, existing products that we know how to make and doing that in a in a disciplined manner challenges can become when you're making a new product in a new location.

就像我們資料中心業務的其他部分一樣，如果我沒記錯的話，我們利用這項業務量實現了非常高的利潤率，而且去年我們取得了不錯的進步。尼爾也談到了這一點，這實際上是對現有產品的反覆生產，我們知道如何生產這些產品，並且要以嚴謹的方式進行生產。當你在一個新的地方生產新產品時，就會面臨挑戰。

But we're basically, it's a copy paste of what we've been doing in the UK and in North America. So it's the bigger again, the bigger issue, like you said for the first 6 months, it's literally getting the building, the equipment, and then bringing in everyone and training and then bringing in all the materials, and then there's still a practice and an improvement as you launch. That to me is the biggest hurdle and then once that's done, then we've been doing this for 10 years, we know what the profit margins will be.

但基本上，我們只是把我們在英國和北美所做的一切照搬過來。所以，這又是更大的問題了，就像你說的，前六個月，實際上是要建廠房、購置設備，然後把所有人都招進來，進行培訓，再把所有材料都運進來，然後隨著業務的開展，還需要不斷練習和改進。對我來說，這是最大的障礙，一旦克服了這一點，而且我們已經做了 10 年，我們就知道利潤率會是多少。

Yeah, so then to put a finer point on it, what should incremental look like as we get into2027?

那麼，更具體地說，到 2027 年，漸進式發展應該是什麼樣的呢？

I early to say at 2027, but what I would say on incremental is typically at a gross profit line we'd be looking at a 30% type incremental gross profit to each dollar of sales when we're running at a, existing facilities and we're adding more volume.

到 2027 年就下結論還為時過早，但就增量而言，通常情況下，在毛利方面，當我們在現有設施上運營並增加產量時，每銷售一美元，我們預計毛利將增加 30%。

You're very helpful, and then just ask one question on PT, bringing Jeremy and getting some traction on, margin improvements, maybe just talk a little bit about current focus areas for the business and any update on the divestiture process.

您非常樂於助人，那麼就問一個關於PT的問題吧，例如讓Jeremy加入並取得一些進展，提高利潤率，也許還可以談談公司目前的重點領域以及剝離流程的最新進展。

Yeah, certainly it's a great resource to have having Jeremy on board and he's going to continue to drive the same playbook that we've been driving, to continue stabilizing the business, making sure that we're running the business as efficiently as possible, stay close to our customers, continue to build out the auto funnel, the order and the funnel, so when we start to see some market recovery, we're put in a really good position. That we can execute on platforms and programs that we've won through our through our innovation and technology so it's the same playbook and he's going to be able to accelerate that and bring some more structure around it.

是的，傑里米的加入無疑是一大助力，他將繼續沿用我們一直以來的策略，繼續穩定業務，確保業務高效運轉，與客戶保持緊密聯繫，繼續完善汽車銷售渠道和訂單流程，這樣，當市場開始復蘇時，我們就能處於非常有利的地位。我們能夠利用我們透過創新和技術贏得的平台和項目來執行這些項目，所以策略是一樣的，他將能夠加速這一進程，並為其建立更多結構。

Thanks, any update on the divestitures or we save that for another call.

謝謝，關於資產剝離有什麼最新進展嗎？還是我們下次電話會議再談？

Business as usual there, I mean we're always looking strategically in terms of what our best options are. I think we've got a pretty good history and a trend that you know through product line strategies, that we can execute on that year over year. You've seen that over the last few years, and I'm pleased with where we're at in terms of the progress of that today.

一切照常進行，我的意思是，我們始終在從策略角度考慮我們的最佳選擇是什麼。我認為我們擁有相當不錯的歷史和發展趨勢，透過產品線策略，我們可以年復一年地執行這些策略。過去幾年你們已經看到了這一點，我對我們目前的進展感到滿意。

Okay. Thanks very much.

好的。非常感謝。

Sure.

當然。

Brian Drab from William Blair.

來自威廉布萊爾的布萊恩德拉布。

Hi, thank you. Just given that we just touched on the performance technologies there, what are you seeing, Neil, in those end markets, off road on road demand for your components in those end markets, over the next 12 months.

您好，謝謝。鑑於我們剛才談到了性能技術，尼爾，你認為在接下來的 12 個月裡，這些終端市場（包括越野和公路市場）對你的零件的需求會如何？

Yeah, we've been in this cycle for quite some time. I mean, it's been, 1.5 year. These cycles typically can last anywhere from 1.5 to 2 years, and we're really following the trends and the announcements of the large OEMs to position ourselves for, when there is a rebound in the market. So, we're tracking that closely with our customers, the largest OEMs, we're looking at their inventory levels. We understand, what programs we're on and where we can where we can facilitate and turn on manufacturing faster, but it's, we're reading the end markets through OEMs at this point.

是的，我們已經陷入這種循環很長一段時間了。我的意思是，已經過去一年半了。這些週期通常會持續 1.5 到 2 年，我們正在密切關注大型 OEM 廠商的趨勢和公告，以便在市場反彈時做好準備。所以，我們正在與客戶，特別是最大的OEM廠商密切關注他們的庫存水準。我們了解我們正在參與的項目，以及我們可以在哪些方面促進和加快生產，但目前我們正在透過原始設備製造商 (OEM) 來了解終端市場。

I mean, and my sense there, is that it's stabilizing. I mean, would you agree with that or do you think there's another way.

我的意思是，我的感覺是，情況正在趨於穩定。我的意思是，你同意這種說法嗎？還是你認為還有其他方法？

I think there's some recent reports even as of today that suggest there could be some stabilization and that the inventory levels are right, those are early indicators I'd like to see a trend first, but yeah, that's fair.

我認為，即使是今天，也有一些最新的報告表明，市場可能已經趨於穩定，庫存水準也合適。這些都是早期跡象，我希望先看到趨勢，但沒錯，這很合理。

Okay. There's, no surprise I'm going to ask a question on data centres. So there's some massive projects obviously happening all over, all around the world, and I'm just wondering, specifically in the US.

好的。不出所料，我要問一個關於資料中心的問題。顯然，世界各地都在進行一些大型項目，我只是想知道，特別是在美國。

Some of these, massive projects I assume you'll be part of, is there, are you seeing any in in some different regions where you don't have manufacturing capacity, maybe close enough to the site or service capability close enough to the site that have come up in the last, several months where you where you're saying okay we're going to be we won this business we're probably going to have to set up some new. New capabilities closer to one of these massive sites kind of like you I think you're doing in Texas.

我想您也會參與其中一些大型專案。在過去的幾個月裡，您是否注意到一些不同地區的項目，這些地區可能沒有製造能力，或者沒有足夠靠近項目現場的服務能力？您是否會說，好吧，我們贏得了這項業務，我們可能不得不建立一些新的設施？新的能力更接近這些大型站點之一，就像你在德克薩斯州所做的那樣。

That’s a fair question and yeah, you're correct. There's opportunity to expand globally priority one is the United States. I mean that is where our biggest customers are, that is the biggest market that's half the global market. We've got to make sure that we're executing and we're delivering on the products that are desired in this industry today which we provide. That improved total cost of ownership, improve power use effectiveness, improve water use effectiveness, we need to do that in the US, we need to do that well. That's what we're working on. We've also launched in India recently, so we did our first pilot build there, and that new India facility will help us with our customers as they grow, and not only in India but in Southeast Asia as well. So that's another area that we have a disparate team that's focused on that that is going to launch and follow our customers per their request.

這是一個很合理的問題，是的，你說得對。全球擴張的機會很多，首要目標是美國。我的意思是，那裡是我們最大的客戶所在的地方，那裡是最大的市場，佔全球市場的一半。我們必須確保我們能夠執行並交付當今行業所需的產品，而這正是我們提供的產品。降低整體擁有成本、提高電力使用效率、提高用水效率，美國需要做到這一點，而且需要做好這一點。這就是我們正在努力的方向。我們最近也在印度推出了產品，並在那裡進行了第一次試點建設。這家新的印度工廠將幫助我們服務不斷成長的客戶，不僅在印度，而且在東南亞也是如此。所以，這是我們另一個由專門團隊負責的領域，該團隊將根據客戶的要求推出產品和服務。

And then we're also seeing demand in Europe as well. We have our facilities there. We can support Europe. We're adding another chiller line there. We added a facility there last year, another 400,000 square foot facility to help expand and grow in Europe. And then lastly, we're seeing large opportunities and we're communicating with potential customers with large and large regions, particularly in the Middle East. So we have won some orders there we've been able to service those orders out of our Spanish out of our Spain facility, and you know at some point in time would we make some investments there potentially, but what with the current capacity that we have, we can serve the Middle East through India as well as Spain. And we're pretty comfortable with that. But, definitely we're global, definitely we see the reach, we see expansion, probably the biggest programs and projects outside the United States and Europe we're seeing is in the Middle East.

而且我們也看到歐洲也有這樣的需求。我們在那裡設有工廠。我們可以支持歐洲。我們正在那裡增設一條冷水生產線。去年我們在那裡增建了一座佔地 40 萬平方英尺的工廠，以幫助在歐洲擴張和發展。最後，我們看到了巨大的機遇，並且正在與業務遍及各個大區域的潛在客戶進行溝通，尤其是在中東地區。所以我們在那裡贏得了一些訂單，我們能夠透過我們在西班牙的工廠來處理這些訂單。你知道，在某個時候，我們可能會在那裡進行一些投資，但以我們目前的產能，我們可以透過印度以及西班牙為中東提供服務。我們對此相當滿意。但是，我們絕對是全球化的，我們看到了影響力，我們看到了擴張，我們在美國和歐洲以外最大的項目和計劃可能在中東。

Okay, and then just one more on the on the topic again inside the US. When you won this opportunity in Texas, it came, my impression was that it came kind of suddenly and was just, this incredible opportunity that presented itself. Have you had any other situations like that or maybe as a result of that one where there's You know you've had another giant project come your way over the over the last you know I guess since we talked to you last on the on the 1-2 call.

好的，那就再補充一點美國國內的這個話題。我的感覺是，你在德州贏得這個機會的時候，它來得有點突然，簡直是一個千載難逢的機會。你有沒有遇過其他類似的情況？或者，是不是因為那件事，你知道，自從我們上次在1-2電話會議上交談以來，你又接到了另一個大項目？

Yes, I mean we see we for sure and we're seeing these things and it's we're on earlier stages we're on earlier stages and we have more ability to have influence as well.

是的，我的意思是，我們確實看到了這些事情，而且我們還處於早期階段，我們也更有能力施加影響力。

Yeah, okay, all right, thanks very much.

好的，謝謝。

Sure.

當然。

(Operators instructions).

（操作說明）

Jeff Van Sinderen with B. Riley Securities.

Jeff Van Sinderen 與 B. Riley 證券公司。

Hi everyone, just since we're on the topic, in the data center area, is there any more colour you can provide on maybe how customer concentration is evolving? You mentioned some other new customers you might pick up; I think at one point you spoke to one, there was one hyper scalar that you maybe didn't have yet as a customer. Has that converted to a customer? Are there still major new customers pending that could further increase demand? And then also just curious on the modular product demand how that's progressing.

大家好，既然我們聊到了資料中心領域，能否再補充一些關於客戶集中度演變的資訊？你提到了一些你可能會獲得的新客戶；我想你曾經和其中一位談過，那是一家超大規模企業，你可能還沒有成為他們的客戶。這是否轉化為客戶？是否還有可能進一步推高需求的重大新客戶？另外，我還很好奇模組化產品的需求進度如何。

Yeah, thanks for that question. We have great relationships with the hyper scales, and we're building relationships with the hype we're building. Further along, with some of our new hyper scales, we're advancing in, we're advancing our products, we're advancing our discussions that gives us confidence that we can grow those.

謝謝你的提問。我們與超大型超市建立了良好的關係，我們正在利用我們正在製造的熱度來建立關係。進一步來說，隨著我們的一些新型超大規模設備的投入使用，我們正在推進產品研發，也在推進相關討論，這讓我們有信心實現這些設備的成長。

So if we think about the 5 major hypers today, 2 of them are the majority of what we do today. So, there's a lot of expanding and expansion that can happen now that we have the networks inside the other 3 and now that we have the technical specs and capabilities that we've been able to prove and meet with them. So, there's a lot of expansion just within the hypers today.

所以，如果我們考慮一下當今的 5 個主要超高速引擎，其中 2 個就構成了我們今天所做事情的大部分。所以，既然我們已經在其他 3 個網絡內部建立了網絡，而且我們已經證明了我們的技術規格和能力，並且能夠滿足他們的需求，那麼現在有很多擴展和擴張的空間可以實現。所以，如今超高速汽車領域本身就有很多擴張空間。

And then you know you can expand outside of that with a Neil cloud providers. I think we've been very successful with one Neil cloud provider that gives us the ability to, it's proven our capabilities that it drove driven genuine interest. With the others and then, geographically we talked about some other areas that there's going to be some large players, where we can expand. So certainly, there's the ability to do that and the only reason why we have that ability is because we have the products and now we have the relationships with some of the biggest data center providers in the world.

然後你知道，你也可以透過 Neil 雲端服務供應商將業務擴展到其他領域。我認為我們與一家名為 Neil 的雲端服務供應商合作非常成功，它使我們能夠…這證明了我們的能力，也激發了真正的興趣。然後，我們和其他人討論了一些其他地區，那裡會有一些大型企業，我們可以向這些地區擴張。所以，我們當然有能力做到這一點，而我們之所以有能力做到這一點，唯一的原因是我們擁有這些產品，並且現在我們與世界上一些最大的資料中心提供者建立了合作關係。

Okay great and then I think you mentioned in some of your earlier comments about having a wider aperture, and generally improving visibility for the data center product demand. How far out can you see in the data center business at this point? And I know sometimes maybe customers pull sooner than you think. I think you spoke to that a little bit. What does demand for the data center solutions look like if you go out a year or 2 years or as far as you can see.

好的，太好了。然後我想您在之前的評論中提到過，要擴大開口，並總體上提高資料中心產品需求的可見度。您目前對資料中心業務的未來發展前景有何看法？我知道有時候客戶可能會比你預想的更早取消訂單。我想你已經稍微談到這一點了。如果展望未來一年、兩年甚至更遠的時間，資料中心解決方案的需求會是怎麼樣的？

Well, you're right. So some of these things are pretty urgent, sudden, and they can be, we want to do the best we can to please our customers, especially our largest ones. So those are things that we have a pretty quick reaction and we're very quick to react in terms of being able to produce and get that product out. I'll be inefficiently; we can at least drive their revenue growth and satisfy the customer's demand. But when that's not the case and you have it's more strategic and you're working with customers that are thinking about, where they're going to advance and where they want to move and deploy capital, we can see anywhere from 3 to 5 years out.

嗯，你說得對。所以，有些事情相當緊急、突然，我們希望盡最大努力讓我們的客戶滿意，尤其是我們的大客戶。所以對於這些事情，我們的反應非常迅速，我們能夠很快地生產並推出產品。我效率可能不高；但至少我們可以推動他們的收入成長，滿足客戶的需求。但如果情況並非如此，而是更具策略性，而你與那些正在思考他們將在哪裡發展、想要在哪裡轉移和部署資本的客戶合作，我們可以看到未來 3 到 5 年的發展前景。

And I would say with you know the majority of our largest customers we have that visibility and that's really helpful in terms of allowing us to make sure that we're strategically deploying capital in the right places. And that we're adding the facilities and factories in the right regions.

而且我認為，對於我們的大多數大客戶，我們都能掌握這種訊息，這對於確保我們將資金策略性地部署到正確的地方非常有幫助。我們正在合適的地區增設設施和工廠。

Okay, great. And then just I mean.

好的，太好了。然後，我的意思是。

11 example of that is what we did in India, right? I mean that was in place, we talked about that a year ago and we want, the major driver to move and have facilities and capacity in India was because our customers asked for it. They specifically said, hey, we're going to be here in a couple of years, and we need your help and support. Are you guys willing to invest in that region? So that's a good example of the outcome of having these conversations years in advance so that we can have the facility up in time.

11. 這就是我們在印度所做的事，對吧？我的意思是，這件事早就有了計劃，我們一年前就討論過，我們之所以決定在印度設立工廠和產能，主要原因是我們的客戶提出了這樣的要求。他們特別表示：“嘿，我們幾年後還會在這裡，我們需要你們的幫助和支持。”你們願意在那個地區投資嗎？所以，這很好地體現了提前數年進行這些對話所帶來的成果，這樣我們才能及時建成該設施。

Right, so in other words, you're not going someplace with a new facility where there might not be demand you're really you're building to demand.

對，換句話說，你不是去一個可能沒有需求的地方蓋新廠，你真正在根據需求建廠。

Correct for the yes we're building to demand and their demand is high. There's great demand for our products. There's the technology and the solutions are premium in the marketplace and we see it and that's why we're deploying the amount of Capex that we are.

是的，我們正在根據需求進行建設，而他們的需求很高。我們的產品需求量很大。這項技術和解決方案在市場上都是一流的，我們看到了這一點，這也是我們投入如此巨額資本支出的原因。

Okay, and then if I could just squeeze in one more just on the CDU, part of your business, I guess how do you see the liquid cooling business evolving, maybe, how does that become a concentration business for you? How much of the business do you think liquid cooling could comprise, I don't know, a couple of years out.

好的，那麼如果我可以再擠出一個時間問關於 CDU（冷卻分配單元）的問題，這是你們業務的一部分，我想問一下你們如何看待液冷業務的發展，也許，它如何成為你們的重點業務？你認為液冷技術在未來幾年能佔據多大的業務份額？我不知道。

Yeah, that's specific directed chip liquid cooling. All of our products can apply in the liquid cooling space. You need our products for that. The air-cooling solutions will apply in the liquid cooling space if you get direct to chip, CDs are certainly beneficial and helpful. I continue to see that market evolve. I think, there's been some new technologies in that space. I think there's some interesting areas that we've helped our customers in terms of providing different ways of doing that.

是的，那是專門針對晶片的定向液冷。我們所有的產品都可以應用在液冷領域。你需要我們的產品來實現這一點。如果直接對著晶片散熱，那麼風冷解決方案也可以應用於液冷領域，CD 肯定是有益的。我一直看到這個市場不斷在發展。我認為，這個領域已經出現了一些新技術。我認為我們在為客戶提供不同方式方面，在某些有趣的領域幫助了我們的客戶。

And you can see some of those announcements out there. So you know we'll have a product and there'll be customers that need it, but not everybody, in order to do liquid cooling, and we, it's just one more what's one more product in the ever evolving suite of products that we have. And we'll always TRY to do it in a way to differentiate so it's not a me too product so we'll do a unique custom bespoke CDU for our customers tied to our firmware and software so it does things that others can't do and it's differentiated but again it's just one more product in a in a series of products that we have that we that continue to evolve.

你可以在外面看到一些相關的公告。所以你知道，我們會推出一款產品，也會有客戶需要它，但不是每個人都需要它來進行液冷，而對我們來說，這只是我們不斷發展的產品系列中的又一款產品而已。我們會始終努力做到與眾不同，避免淪為平庸之作。我們將為客戶打造獨一無二的客製化 CDU，並將其與我們的韌體和軟體結合，使其具備其他產品無法實現的功能，從而脫穎而出。但同時，它也只是我們不斷發展的一系列產品中的另一個而已。

Thanks for taking our questions continued success.

感謝您解答我們的問題，祝您一切順利。

Thank you.

謝謝。

David Tarantino with Key Bank Capital Markets.

David Tarantino，Key Bank Capital Markets。

Hey, thanks for taking the follow-up.

嘿，謝謝你跟進。

Could you just give us some colour on the range of outcomes you embedded within the ramp implied in the second half just kind of what's inside and outside of your control in terms of hitting both the sales and margin targets this year.

您能否詳細介紹一下您在下半年計畫中暗示的各種結果，以及在今年實現銷售額和利潤目標方面，哪些因素在您的控制範圍內，哪些因素在您的控制範圍之外？

Yeah, we really tried to take it as we always do David down the middle, we've got, as Neil said, one of the challenges we're trying to balance is. The demand has increased. Neil said this before multiple times, but The more we can make, the more we can sell, so we're we we've aligned to internal targets that we're stretching to get to from manufacturing.

是的，我們真的努力像往常一樣，以中立的態度對待大衛，正如尼爾所說，我們正在努力平衡的挑戰之一是。需求增加了。尼爾之前多次說過，我們生產的越多，就能賣得越多，所以我們已經調整了內部目標，並努力透過生產來實現這些目標。

And we've pulled those back and both with customers so we don't disappoint them and with guidance where we're trying to kind of strike down the middle you on the other side you always have risks that you have a hiccup with a line or some more inefficiencies, but I would say if we look at it now, we TRY to go right down the middle. In addition, we talked a lot about the chiller ramps.

我們已經收回了這些，既是為了不讓客戶失望，也是為了提供指導，我們試圖找到一個折衷方案。另一方面，你總是會面臨一些風險，例如生產線故障或效率低下，但我想說的是，如果我們現在審視一下，我們會努力找到一個折衷方案。此外，我們也詳細討論了冷水機組的運轉坡度。

The other areas where we're getting equal, right, opportunities for more cracks craws on the air side, and certainly a lot of customers are interested on the modular side even though those are early days and those are things we've tried to balance keep to balance out the chiller launch risk as well.

在其他領域，我們也獲得了同等的機會，例如空氣方面出現更多裂縫，當然，許多客戶對模組化方面也很感興趣，儘管這些還處於早期階段，我們也一直在努力平衡這些方面，以平衡冷水機推出的風險。

Great and then maybe one more if I may just on HVAC technology and the weakness there could you break out kind of the underlying trends between the core business and the recent deals and how we should expect this to progress through the balance of the year on both the top and margin lines.

好的，如果可以的話，我再問一個關於暖通空調技術及其弱點的問題。您能否分析一下核心業務和近期交易之間的潛在趨勢，以及我們應該如何預期今年剩餘時間裡，營收和利潤率方面的情況？

Yeah, and generally, the acquisitions are on target, they're doing what we would expect them to do, the indoor air quality business is performing well it's in line with what we expect, as at market rate and what we're entering now is what we call our heat season. This is, the next couple quarters for the heat business are going to be big for us, so that's the traditional mode heaters as well as the LBY acquisitions. This is the time of year where we start to see us, our customers and distributors really start to draw on our inventory levels.

是的，總的來說，收購進展順利，它們正在發揮我們預期的作用，室內空氣品質業務表現良好，符合我們的預期，與市場水平一致，而我們現在正進入所謂的「炎熱季節」。也就是說，接下來的幾個季度對我們來說，暖氣業務將會非常重要，這包括傳統模式的加熱器以及對 LBY 的收購。每年的這個時候，我們、我們的客戶和分銷商都會開始真正地消耗我們的庫存水準。

Yeah, just a quick couple numbers on that to help you out and as we look at the total segment for CS in there with the acquisitions we would assume HVAC technologies would have a growth total growth well over 40%-45%, and organically that would be mid to high single-digit organic with the balance being from the acquisition.

是的，我在這裡提供幾個簡單的數字來幫助您。當我們查看 CS 的整個業務板塊，包括收購在內，我們預計 HVAC 技術的總成長率將遠超 40%-45%，其中有機成長率將達到個位數中高段，其餘部分來自收購。

Okay great thanks guys.

好的，非常感謝各位。

And that does conclude our question-and-answer session. I would now like to turn the conference back to Kathy Powers.

我們的問答環節到此結束。現在我想把發言權交還給凱西·鮑爾斯。

Thank you and thanks to everybody for joining us this morning. The replay will be available through our website in about 2 hours.

謝謝大家，也謝謝各位今天早上收看我們的節目。大約2小時後，您可以透過我們的網站觀看重播。

Thanks.

謝謝。