Modine Manufacturing Company (MOD) 2027 Q1 法說會逐字稿

Good morning, ladies and gentlemen, and welcome to Modine's first-quarter fiscal 2027 earnings conference call. (Operator Instructions) As a reminder, this conference call is being recorded.

各位女士、先生，早安，歡迎參加 Modine 2027 會計年度第一季財報電話會議。(接線員指示) 提醒各位，本次電話會議將被錄音。

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

現在我想把電話會議交給今天的主持人——Kathy Powers，副總裁、財務長兼投資人關係負責人。

Hello, and good morning. Welcome to our conference call to discuss Modine's first-quarter fiscal 2027 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 with today's presentation are available on the Investor Relations section of our website, modine.com.

大家好，早安。歡迎參加我們的電話會議，討論 Modine 2027 會計年度第一季業績。與我一同出席的有我們的總裁暨執行長 Neil Brinker，以及執行副總裁暨財務長 Mick Lucareli。今天簡報所使用的投影片已公布於我們網站 modine.com 的投資人關係專區。

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.

該簡報第 3 頁為我們關於前瞻性陳述的聲明。本次電話會議將包含前瞻性陳述，相關內容已於我們的財報新聞稿以及公司向美國證券交易委員會提交的文件中說明。

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

接下來我把電話交給 Neil。

Thank you, Kathy, and good morning, everyone. Before covering the quarterly results, I'd like to share a couple of personnel updates. As we've recently announced, Michael Mahan has joined Modine as the new President of our Commercial HVAC segment, reporting to me. We are very excited to have Michael join our team, bringing extensive experience managing global P&Ls, executing portfolio transformations, and driving product development, and technical innovation.

謝謝 Kathy，各位早安。在說明本季業績之前，我想先分享幾項人事更新。如我們近期所宣布，Michael Mahan 已加入 Modine，擔任商用 HVAC 事業部新任總裁，並向我匯報。我們非常高興 Michael 加入團隊；他在管理全球損益（P&L）、推動投資組合轉型，以及帶動產品開發與技術創新方面具備豐富經驗。

The priorities of this segment have not changed. We are focused on improving margins throughout the segment while driving organic growth and pursuing inorganic growth opportunities. We expect to create significant value in this segment through our ongoing 80/20 work and through the integration of our last three acquisitions. Michael is the right leader to help us achieve these goals.

該事業部的優先事項並未改變。我們專注於提升整個事業部的利潤率，同時推動有機成長並尋求非有機成長機會。我們預期將透過持續推動 80/20 工作，以及整合最近三項收購案，在此事業部創造顯著價值。Michael 是協助我們達成這些目標的合適領導者。

Secondly, Art Laszlo, who has been leading our Global Data Center business has resigned from his role at Modine for unexpected personal reasons and will be leaving at the end of July. We are grateful for his contributions over these four years and wish him the best for his next chapter. We have initiated a search for his replacement. In the interim, I will step in to lead this organization.

第二，領導我們全球資料中心業務的 Art Laszlo 因突發個人因素已辭去在 Modine 的職務，並將於 7 月底離任。我們感謝他過去四年的貢獻，並祝福他下一段旅程一切順利。我們已啟動接任人選的招募程序。在此期間，我將暫代領導該組織。

Given the level of growth and complexity of this business, I will be spending a great deal of my time and focus on making sure that we are executing on all of our many priorities in this segment. This includes launching and ramping production in North America to support our strategic customers and their growth targets, including ensuring that we are ready to perform on our long-term capacity commitments starting in 2027. This is a heavy lift, but I have confidence in our global team and our ability to delight our customers while staying at the forefront of technology.

鑑於此業務的成長幅度與複雜度，我將投入大量時間與心力，確保我們能在該事業部眾多優先事項上確實執行到位。其中包括在北美啟動並逐步提升產能，以支援我們的策略客戶及其成長目標，並確保我們已準備好自 2027 年起履行長期產能承諾。這是一項艱鉅任務，但我對我們的全球團隊充滿信心，也相信我們能在保持技術領先的同時，讓客戶滿意。

Please to slide 4. This is the first quarter that we are reporting under our new three-segment structure, Data Centers, Commercial HVAC, and Performance Technologies. Starting with the Data Center segment, revenues increased 90% from the prior year but were down sequentially from the previous quarter as expected.

請看投影片第 4 頁。這是我們在新的三大事業部架構——資料中心、商用 HVAC 與績效科技——下首次進行財務揭露的季度。先從資料中心事業部開始，營收較去年同期成長 90%，但如預期般，較上一季呈現季減。

As we discussed last quarter, we began experiencing supply chain shortages of certain key components that impacted production volumes in the quarter. In response, we started taking decisive action to secure supply. Our existing suppliers are expanding capacity to meet market demand, and we are negotiating commitments to secure the volume of components we need for fiscal '27 and beyond.

如同我們上季所討論的，我們開始遇到某些關鍵零組件的供應鏈短缺，影響了本季的產量。為此，我們已採取果斷行動以確保供應。我們現有供應商正擴充產能以滿足市場需求，而我們也正在協商承諾，以確保 2027 會計年度及其後所需的零組件供應量。

While we regularly assess our supply chain risks, recent component shortages materialized even earlier than anticipated. We quickly activated our contingency plans, which included dynamically re-sequencing our capacity rollouts. Because we are actively staffing and preparing our broader network for significantly higher volume, these sudden parts shortages caused temporary downtime and lower-than-planned capacity utilization across our expansion sites.

雖然我們會定期評估供應鏈風險，但近期的零組件短缺比預期更早發生。我們迅速啟動應變計畫，其中包括動態調整產能擴建的上線順序。由於我們正積極招募人力並為更高的產量規模準備更廣泛的製造網路，這些突發的零件短缺導致擴建據點出現短暫停工，且產能利用率低於原先規劃。

As a result, both labor efficiency and overhead absorption were below our normal levels, which negatively impacted our margins in the quarter. The key takeaway here is that these margin pressures are a transitional timing issue, not a structural one. While these supply chain realities expand the timeline to reach full operating efficiency across our network, they do not impact our ability to meet our recently announced long-term capacity agreements or our financial targets for this year.

因此，人力效率與製造費用吸收均低於我們的正常水準，對本季利潤率造成負面影響。這裡的重點是：這些利潤率壓力屬於過渡期的時點問題，而非結構性問題。雖然供應鏈現實拉長了我們在整體網路達到完全營運效率的時間，但不影響我們履行近期宣布的長期產能協議，也不影響我們今年的財務目標。

Most importantly, the underlying demand for our products is unprecedented. We just logged our third consecutive quarter of record order intake, driving another significant increase in our backlog. We remain firmly focused on executing our expansion and securing critical components so that as the supply chain normalizes, our facilities are primed to effectively deliver on this massive demand.

最重要的是，我們產品的基本需求前所未見。我們剛剛連續第三季創下訂單接單量新高，推動在手訂單再度大幅增加。我們仍將堅定聚焦於執行擴產並確保關鍵零組件供應，使得當供應鏈恢復正常時，我們的廠區已做好充分準備，有效交付這龐大的需求。

Commercially, we continue to focus on our strategic customers and perfect prospects, which include high-quality hyperscalers, neo clouds, and colocation customers and our new product launches have been a commercial success. I spent time last week visiting our data center plants in North America, and I just want to reiterate my confidence in the team. As I jump in to lead this business over these next few months, my focus is ensuring that we are executing on our capacity expansion to support strategic growth plan.

在商務面，我們持續聚焦於策略客戶與理想客群，其中包括高品質的超大規模雲端業者（hyperscalers）、新興雲（neo clouds）與機房代管（colocation）客戶；而我們的新產品上市在商務上也取得成功。我上週花時間走訪了我們在北美的資料中心工廠，我想再次強調我對團隊的信心。在接下來幾個月我將親自領導這項業務期間，我的重點是確保我們確實執行產能擴張，以支援策略成長計畫。

I anticipate that we will have periodic challenges and setbacks with this exponential growth business. Over the last three years, we have grown revenue at a compound annual growth rate of more than 80%, even with temporary cost or margin headwinds, a very few companies can grow earnings at these exceptionally high double-digit rates. Our visibility and confidence in revenue and earnings growth over the next two to three years remains as high as it's ever been.

我預期在這個呈指數成長的業務中，我們會不時遇到挑戰與挫折。過去三年，我們的營收複合年成長率超過 80%；即使面臨暫時性的成本或利潤率逆風，能以如此卓越的高雙位數速度成長獲利的公司屈指可數。我們對未來兩到三年的營收與獲利成長之能見度與信心，仍維持在歷來最高水準。

Please turn to slide 5. Our Commercial HVAC business delivered a strong quarter with revenues up 22%. This was largely driven by our acquisition last year and higher coil sales to our Data Center customers. As I previously mentioned, Michael Mahan will be leading this next phase of 80/20, including a renewed vertical segmentation, which will help to accelerate our acquisition integration, along with very specific targets and actions for each of our general managers. We are taking strategic actions to optimize our manufacturing footprint in this segment in support of our 80/20 focus and to improve our overall cost structure.

請翻到投影片第 5 頁。我們的商用 HVAC 業務本季表現強勁，營收成長 22%。這主要受惠於我們去年完成的收購，以及對資料中心客戶的盤管（coil）銷售增加。如我先前提到的，Michael Mahan 將領導下一階段的 80/20 推動工作，包括重新強化垂直產業分群，這將有助於加速收購整合，同時也會為各事業部總經理設定非常明確的目標與行動方案。我們正採取策略性行動，優化該事業部的製造據點布局，以支援 80/20 聚焦並改善整體成本結構。

Product lines are being consolidated into our Owatonna, Minnesota facility which was part of the CDI acquisition last year. In addition, we have consolidated coils production in Grenada and Juarez in order to allow for the capacity expansion for the chiller lines in Grenada while preserving capacity for growth in coils to support our Data Center customers.

產品線正整併至明尼蘇達州 Owatonna 廠區，該廠區為去年 CDI 收購案的一部分。此外，我們也整併了 Grenada 與 Juarez 的盤管生產，以便在保留盤管成長產能、支援資料中心客戶的同時，讓 Grenada 的冷水機（chiller）產品線得以擴充產能。

Commercially, we're also taking decisive pricing actions to offset inflationary cost increases, including materials and tariffs. This, along with ongoing 80/20 focus, will help improve margins through simplification and efficiency.

在商務面，我們也正採取果斷的定價措施，以抵銷通膨帶來的成本上升，包括材料與關稅。這些措施加上持續的 80/20 聚焦，將透過簡化與效率提升來改善利潤率。

Please turn to page 6. The Performance Technology team continues to focus on preparations for the planned spin-off and merger with Gentherm and was able to hit several significant milestones since our last update. Gentherm completed its S-4 submission to the SEC and once it becomes effective, they will request approval for the transaction from their shareholders.

請翻到第 6 頁。績效科技團隊持續專注於為規劃中的分拆以及與 Gentherm 的合併做準備，並自上次更新以來達成數項重要里程碑。Gentherm 已完成向美國證券交易委員會提交 S-4 文件；待其生效後，將向其股東請求核准該交易。

We have also completed the filing required for an IRS determination letter on the tax treatment of the Reverse Morris Trust transaction and expect to receive a favorable ruling prior to close. Internally, we have been working on the IT separation and legal entity reorganization to allow us to deliver a stand-alone operating business to Gentherm.

我們也已完成向美國國稅局（IRS）申請就 Reverse Morris Trust 交易之稅務處理出具裁定函所需的申報，並預期在交割前取得有利裁定。在內部方面，我們正進行 IT 分離與法律實體重整，以便向 Gentherm 交付可獨立運作的營運事業。

Overall, these processes remain on track, and we are still expecting to close the transaction before the end of the calendar year. Presumably that all the necessary approvals are received and closing conditions are met.

整體而言，這些流程仍按計畫推進，我們仍預期在曆年年底前完成交易交割。前提是取得所有必要核准並滿足交割條件。

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

那麼，我把電話會議交給 Mick。

Thanks, Neil, and good morning, everyone. Please turn to slide 7 to review the Q1 segment results. As Neil mentioned, this is the first quarter reporting results under the new operating segments, Data Centers, Commercial HVAC, and Performance Technologies. Please refer to the 8-K filed last week for the historic recast of our results under this new structure.

謝謝你，Neil，各位早安。請翻到第 7 頁投影片，回顧第一季各事業部門的結果。如 Neil 所提到，這是我們在新的營運事業部門架構（資料中心、商用 HVAC，以及績效科技）下，首次揭露季度業績。請參閱我們上週提交的 8-K 文件，其中包含在此新架構下對歷史業績的重編。

Beginning with Data Centers, this segment continues to grow at an exponential rate with a 90% increase in sales. Americas sales grew 112% and EMEA sales increased 18%, mainly from growth with strategic hyperscale and colocation customers.

先從資料中心事業部門開始，該部門持續以指數級速度成長，銷售額增加 90%。美洲地區銷售成長 112%，EMEA 地區銷售增加 18%，主要來自與策略性超大規模（hyperscale）及機房代管（colocation）客戶的成長。

As we discussed last quarter, we anticipated that Q1 revenue would be up significantly year over year, but down sequentially from Q4. This was due to a significant impact from supply chain shortages that limited our production volume in the quarter and which ended up lasting longer than we originally anticipated.

如同我們上季討論的，我們預期第一季營收將較去年同期大幅成長，但較第四季呈現季減。原因在於供應鏈短缺對本季產量造成重大影響，且其持續時間比我們原先預期更久。

In addition, we also had a customer program delay and a few delayed shipments at the end of the quarter. The entire industry is continually adjusting to supply and demand changes, and despite a few challenges this quarter, the segment was able to deliver well above average earnings growth.

此外，我們也遇到一項客戶專案延遲，以及季末有幾筆出貨延後。整個產業都在持續因應供需變化；儘管本季面臨一些挑戰，該部門仍能交出遠高於平均水準的獲利成長。

Adjusted EBITDA grew 27%, resulting in an adjusted EBITDA margin of 14.8%. As expected, the adjusted EBITDA margin was down versus the prior year. This decline was due to a few temporary factors. First, there was a 150-basis point warranty variance year over year, which was due to a large warranty settlement in the prior year.

調整後 EBITDA 成長 27%，使調整後 EBITDA 利潤率達 14.8%。如預期，調整後 EBITDA 利潤率較去年同期下滑。此下滑主要來自幾項暫時性因素。首先，保固費用較去年同期出現 150 個基點的不利差異，原因是去年同期有一筆大型保固和解。

Also, as part of our production ramp to meet future customer volumes, we've added significant labor and overhead costs. The supply chain shortages caused significant inefficiencies in our plans as we ramped our labor and manufacturing capacity to handle higher volumes. The excess labor, along with unfavorable overhead absorption on the lower volumes, had a 450 basis points to 550 basis point impact on margins during the quarter.

另外，為了配合產能爬坡以滿足未來客戶需求量，我們增加了大量人力與製造間接費用。供應鏈短缺在我們提升人力與製造產能以因應更高出貨量的過程中，對計畫造成顯著低效率。多餘人力，加上在較低產量下不利的製造費用吸收，於本季對利潤率造成約 450 至 550 個基點的影響。

Last, we experienced unfavorable product mix combined with some higher material costs, partially related to supply chain shortages. These will be addressed through our commercial agreements, and we expect this will contribute to sequential margin improvement next quarter.

最後，我們遭遇不利的產品組合，並伴隨部分較高的材料成本，部分也與供應鏈短缺相關。這些將透過我們的商業協議加以處理，我們預期這將促使下季利潤率較本季呈現季增改善。

With regards to the operating income and adjusted EBITDA margins, our rate of revenue growth is far exceeding the increase in SG&A spending, which had a positive impact on our margins. SG&A was down nearly 400 basis points as a percentage of sales.

就營業利益率與調整後 EBITDA 利潤率而言，我們的營收成長速度遠高於 SG&A（銷售、一般及行政費用）支出的增加，對利潤率帶來正面影響。SG&A 佔銷售額比重下降近 400 個基點。

As supply chain catches up, capacity comes online and revenue growth, we expect adjusted EBITDA margin to improve. We fully expect the segment margin will improve in Q2 and continue that trend in the second half of fiscal '27.

隨著供應鏈逐步追上需求、產能到位以及營收持續成長，我們預期調整後 EBITDA 利潤率將改善。我們完全預期該部門利潤率將在第二季改善，並在 27 會計年度下半年延續此趨勢。

Despite some periodic growing pains, we're excited about the overall momentum in this segment. Based on our revenue and margin outlook, we anticipate that the Data Center segment will generate earnings growth in excess of 85% for the year.

儘管偶爾會有成長期的陣痛，我們對該部門整體動能感到振奮。基於我們對營收與利潤率的展望，我們預期資料中心事業部門全年獲利成長將超過 85%。

Please turn to slide 8 to review the Commercial HVAC segment. Commercial HVAC also delivered strong revenue growth with a 22% increase in sales. HVAC Technologies sales increased $24 million or 45%, with acquisitions contributing $20 million of revenue in the quarter. Heat Transfer Solutions sales improved 7% or $11 million, with strong volume in North America coils supporting data center customers. Adjusted EBITDA increased 7%, while the margin was down 220 basis points versus the prior year.

請翻到第 8 頁投影片，回顧商用 HVAC 事業部門。商用 HVAC 亦交出強勁的營收成長，銷售額增加 22%。HVAC Technologies 銷售增加 2,400 萬美元或 45%，其中併購於本季貢獻 2,000 萬美元營收。Heat Transfer Solutions 銷售改善 7% 或 1,100 萬美元，北美線圈（coils）出貨量強勁，支援資料中心客戶需求。調整後 EBITDA 增加 7%，但利潤率較去年同期下滑 220 個基點。

Similar to the Data Center segment, we anticipated a negative margin comparison for Q1, mostly due to a temporary business mix. First, the recent acquisitions have contributed to a lower mix impact on adjusted EBITDA margin. As part of the integration plan, the team is consolidating the manufacturing footprint and that resulted in some inefficiencies in the quarter.

與資料中心事業部門類似，我們預期第一季利潤率比較將呈現不利，主要是暫時性的業務組合所致。首先，近期併購案對調整後 EBITDA 利潤率帶來較低的組合貢獻。作為整合計畫的一部分，團隊正在整併製造據點，導致本季出現一些效率不彰。

We also had some unfavorable revenue mix with a higher mix of lower-margin Coil business and a lower mix of our higher-margin Heating and Coolers businesses. Overall, Commercial HVAC is on track for the year with great opportunities for this leadership team to drive both growth and margin expansion through new 80/20 initiative. We're anticipating double-digit earnings growth this fiscal year with incremental improvements in adjusted EBITDA margin each quarter.

我們也出現不利的營收組合：低毛利的線圈（Coil）業務占比提高，而高毛利的加熱（Heating）與冷卻器（Coolers）業務占比降低。整體而言，商用 HVAC 全年進度符合預期；在新的 80/20 計畫推動下，這個領導團隊有很好的機會同時帶動成長與利潤率擴張。我們預期本會計年度獲利將呈現兩位數成長，且調整後 EBITDA 利潤率將在每一季逐步改善。

Please turn to slide 9. Performance Technologies revenues remain impacted by challenging end market demand. Heavy-Duty Equipment sales were higher by 1% or $1 million, driven by higher genset product sales partially offset by lower sales to off-highway agricultural equipment customers.

請翻到第 9 頁投影片。績效科技（Performance Technologies）營收仍受到終端市場需求疲弱的影響。重型設備（Heavy-Duty Equipment）銷售增加 1% 或 100 萬美元，主要由發電機組（genset）產品銷售增加帶動，但部分被對非公路農業設備客戶的銷售下滑所抵銷。

On-highway application sales decreased 5% or $9 million, due to lower end-market demand from automotive and commercial vehicle customers. The segment adjusted EBITDA declined 3% from the prior year, and adjusted EBITDA margin decreased 10 basis points to 13%.

公路應用（on-highway）銷售下降 5% 或 900 萬美元，原因是汽車與商用車客戶的終端市場需求較弱。該部門調整後 EBITDA 較去年同期下降 3%，調整後 EBITDA 利潤率下滑 10 個基點至 13%。

The margin decline was mostly driven by lower sales volume and the lag effect of recovering higher commodity metals and tariffs. Based on the current metals trends, we do believe this situation will become more favorable in future quarters. Cost savings initiatives resulted in a $2 million reduction in SG&A expenses this quarter, helping to partially offset these impacts.

利潤率下滑主要由較低的銷售量，以及回收較高大宗金屬成本與關稅的滯後效應所致。依目前金屬價格趨勢，我們確實認為未來幾季此情況將轉為較有利。成本節省措施使本季 SG&A 費用減少 200 萬美元，有助於部分抵銷上述影響。

Despite these challenging market conditions, the team remains focused on delivering higher margins and earnings for the segment this fiscal year. As Neil covered the separation plan and merger with Gentherm is progressing nicely and remains on track.

儘管市場環境具挑戰，團隊仍專注於在本會計年度為該部門帶來更高的利潤率與獲利。如 Neil 所說明，分拆計畫以及與 Gentherm 的合併進展順利，且仍按計畫推進。

Now let's review the total company results. Please turn to slide 10. First quarter sales increased 28%, driven by the revenue growth in Data Centers and Commercial HVAC. Gross margin declined 340 basis points to 20.8%, driven by the lower margins across all three segments. We continue to invest in incremental SG&A to support strong growth in Data Centers while redeploying resources across all areas of the company from an 80/20 perspective.

接著我們回顧公司整體業績。請翻到第 10 頁投影片。第一季銷售成長 28%，主要由資料中心與商用 HVAC 的營收成長帶動。毛利率下滑 340 個基點至 20.8%，反映三個事業部門的利潤率皆較低。我們持續增加 SG&A 投資以支援資料中心的強勁成長，同時以 80/20 的角度在公司各領域重新配置資源。

Incremental spending has been partially offset by lower SG&A and Performance Technologies. In addition, corporate SG&A includes $7.1 million of expenses directly related to the PT spin-off, primarily for professional services to prepare for the transaction. As revenue continues to accelerate at a faster pace than SG&A, total company SG&A declined 60 basis points as a percentage of sales to 11.8%. Adjusted EBITDA grew 5% resulting in a $5.1 million year-over-year increase. Due to the specific items I reviewed in each segment, the adjusted EBITDA margin was down 270 basis points to 12.2%.

新增支出部分被較低的 SG&A 以及績效科技（Performance Technologies）所抵銷。此外，公司層級 SG&A 包含 710 萬美元與 PT 分拆直接相關的費用，主要為為交易做準備的專業服務費。隨著營收加速成長的速度快於 SG&A，整體公司 SG&A 佔銷售額比重下降 60 個基點至 11.8%。調整後 EBITDA 成長 5%，年增 510 萬美元。由於我在各部門所提到的特定因素，調整後 EBITDA 利潤率下滑 270 個基點至 12.2%。

Again, as I previously covered, we anticipated most of the change in margins. This includes working through supply chain shortages on the Data Center segment, along with the Q1 negative mix impact in Commercial HVAC and reflecting the low market volumes and rising costs and tariffs in PT. We believe these are all transitory and we have very specific actions to improve margins in all three segments as the year progresses, and we remain on track to deliver our full year targets.

再次重申，如我先前所說，我們已預期利潤率的大部分變動。這包括資料中心部門因供應鏈短缺所需消化的影響、商用 HVAC 第一季不利的組合影響，以及 PT 反映市場量低迷、成本上升與關稅提高。我們認為這些皆屬暫時性；隨著年度推進，我們在三個部門都有非常明確的改善利潤率行動，且我們仍按計畫達成全年目標。

Last but not least, from an EPS perspective. Adjusted earnings per share was $1.53 or 44% higher than the prior year. This includes a favorable income tax benefit related to shares issued for stock-based incentive compensation awards during the quarter. However, we expect this benefit to be largely offset in the remaining quarters by other offsetting items and our full year effective tax rate will be generally in line with our previous estimates.

最後但同樣重要的是，從每股盈餘（EPS）的角度來看。調整後每股盈餘為 1.53 美元，較去年同期高出 44%。其中包含本季因發行股票以支付股權型激勵薪酬獎勵而產生的有利所得稅利益。然而，我們預期此利益在其餘季度將大致被其他抵銷項目所抵銷，且我們全年有效稅率整體將大致符合先前的估計。

Now moving to the cash flow metrics. Please turn to slide 11. Free cash flow was slightly negative in the first quarter. This was lower than the prior year by $5 million mostly due to a few factors. First, we had higher capital expenditures versus the prior year. In addition, the first quarter had over $60 million of other cash flow items including higher contract assets related to revenue recognition, cash taxes, and incentive compensation.

現在轉到現金流量指標。請翻到第11頁投影片。第一季自由現金流略為負值。較去年同期低了500萬美元，主要由幾個因素所致。首先，我們的資本支出較去年同期增加。此外，第一季還有超過6,000萬美元的其他現金流項目，包括與收入認列相關的合約資產增加、現金稅款以及激勵薪酬。

These were partially offset by favorable working capital improvements. Last -- first quarter free cash flow included $14.9 million of cash payments, primarily related to restructuring and disposition-related costs. Net debt of $433 million was $70 million higher than the prior fiscal year-end, driven mostly by the repurchase of treasury stock in connection with Modine's share-based compensation program.

上述部分被有利的營運資金改善所抵銷。最後——第一季自由現金流包含1,490萬美元的現金支付，主要與重整及處分相關成本有關。淨負債4.33億美元較上一財政年度年末高出7,000萬美元，主要是因配合Modine的股份基礎薪酬計畫回購庫藏股所致。

Participants are allowed to sell a portion of their shares back to the company to cover their income tax withholding requests. However, the shares are repurchased and held as treasury stock reducing the number of shares outstanding used to calculate earnings per share. Our balance sheet remains strong with a leverage ratio of 0.9 times. And based on our current outlook for earnings and cash flow, we anticipate the leverage ratio will decrease further by year-end.

參與者可將其部分股份賣回公司，以支付其所得稅預扣需求。然而，這些股份會被回購並作為庫藏股持有，從而減少用於計算每股盈餘的流通在外股數。我們的資產負債表仍然強健，槓桿比率為0.9倍。並且，基於我們目前對獲利與現金流的展望，我們預期槓桿比率將在年底前進一步下降。

Now let's turn to slide 12 for our fiscal 2027 outlook. As announced in our press release, our current revenue and earnings outlook is unchanged. Delivering on these results would represent our fifth consecutive year of record results. Also, our outlook includes Performance Technologies for the full fiscal year.

現在請看第12頁投影片，了解我們對2027財年的展望。如我們在新聞稿中所宣布，我們目前的營收與獲利展望維持不變。若能達成這些成果，將是我們連續第五年創下紀錄表現。此外，我們的展望包含Performance Technologies（PT）全財年的表現。

Once we know when the pending transaction will close, we'll provide an update on our full year outlook for the remaining business. Then we'll report the historical results for PT and discontinued operations starting in for the quarter in which the transaction closes. For fiscal '27, we expect total company sales to grow in the range of 20% to 35%.

一旦我們知道這筆待完成交易何時交割，我們將就剩餘業務的全年展望提供更新。接著，我們將自交易完成所在季度起，開始揭露PT與終止營業的歷史結果。就2027財年而言，我們預期公司整體銷售成長區間為20%至35%。

For the Data Center segment, we expect sales to grow 60% to 80%. For Commercial HVAC, we expect sales to grow 5% to 10% this year. For Performance Technologies, we anticipate sales to be flat to up 5%, driven primarily by pricing mechanisms in our customer contracts for higher materials.

在資料中心（Data Center）事業部，我們預期銷售成長60%至80%。在商用HVAC方面，我們預期今年銷售成長5%至10%。在Performance Technologies方面，我們預期銷售持平至成長5%，主要由客戶合約中的定價機制所驅動，以反映材料成本上升。

We're expecting most markets to be flat with an opportunity for improvement in the back half of the year. We expect fiscal '27 adjusted EBITDA to be in the range of $650 million to $680 million, representing a growth rate in excess of 40%.

我們預期多數市場將持平，但下半年有改善機會。我們預期2027財年調整後EBITDA將介於6.5億至6.8億美元，成長率超過40%。

And this implies at least 100 to 200 basis points of margin improvement, driven by a margin increase in all three segments. And from a sequential standpoint, we expect a step up in margins from Q1 to Q2. And for the remaining three quarters, we anticipate that each quarter will result in strong double-digit year-over-year earnings growth along with favorable margin comparisons.

這也意味著至少100至200個基點的毛利率改善，來自三個事業部的毛利率皆提升。從季度序列角度來看，我們預期毛利率將自Q1到Q2出現上升。而在接下來三個季度，我們預期每一季都將帶來強勁的兩位數年增獲利成長，並伴隨有利的毛利率比較。

From a free cash flow perspective, we expect that we'll generate a higher level of free cash flow, and as a percentage of sales, we believe full year free cash flow will be between 4% and 6%. Please see the appendix in this presentation for all the key assumptions including interest expense, taxes, depreciation, and amortization. As we currently look at the next several quarters, we expect that margins and earnings will increase sequentially through the year, driven by the data center trends and our material cost recovery plan.

就自由現金流而言，我們預期將產生更高水準的自由現金流；以銷售額百分比計算，我們認為全年自由現金流將介於4%至6%。請參閱本簡報附錄，了解所有關鍵假設，包括利息費用、稅負、折舊與攤銷。就未來幾個季度而言，我們預期毛利率與獲利將在全年逐季提升，主要受資料中心趨勢與我們的材料成本回收計畫所帶動。

To wrap up, we remain excited about fiscal '27 and expect to deliver another year of record sales and adjusted EBITDA. Despite a few margin-related headwinds in the first quarter, we remain confident that our strategy and investments will generate continued long-term and sustainable growth for Modine's shareholders.

總結來說，我們對2027財年仍感到振奮，並預期將再創一年創紀錄的銷售與調整後EBITDA。儘管第一季面臨一些與毛利率相關的逆風，我們仍有信心，我們的策略與投資將為Modine股東帶來持續、長期且可持續的成長。

With that, Neil and I will take your questions.

接下來，Neil和我將回答各位的提問。

(Operator Instructions) Noah Kaye, Oppenheimer.

(接線員指示) Noah Kaye，Oppenheimer。

Hi. Good morning. Thanks for taking the questions, Neil and Mick, and all the best to Art. I think just trying to unpack the outlook here. Implied in the 85% segment earnings growth for the Data Center segment, some pretty healthy margin expansion there for the full year. Maybe that's a good place to start. Can you help us understand the trajectory as you see it moving through the year?

嗨。早安。感謝讓我提問，Neil和Mick，也祝Art一切順利。我想先試著拆解一下這裡的展望。在資料中心事業部85%的分部獲利成長隱含之下，全年毛利率擴張相當可觀。也許這是個好的切入點。你們能否協助我們理解你們所看到的、在全年推進過程中的走勢？

I know you talked about sequential improvement, but just how to think about the shaping of that possible, and it would really, I think, get into level of confidence around supply chain issues abating and improving deliveries. So maybe you can comment on all of that?

我知道你們談到逐季改善，但該如何看待其可能的形狀；而我認為這會牽涉到你們對供應鏈問題緩解、交付改善的信心程度。所以也許你們可以就這些方面做些評論？

Let me go first, Neil? All right. Hey, Noah, it's Mick. When -- to just level set again and we provided the recast, we had talked about over the last several quarters last year the data center business hovering around the 20% EBITDA level, and we can go through any more questions with regards to the current quarter. But Q4, we were between 19% and 20%. Q1 a year ago, I mentioned the warranty issue where we had a large settlement, but that was about 20% normalized.

我先說，Neil？好。嗨，Noah，我是Mick。再把基準說清楚一點——我們提供了重編後的數字；去年過去幾個季度我們談到資料中心業務的EBITDA水準大約徘徊在20%左右，若你對本季還有更多問題我們也可以再談。但在Q4，我們介於19%到20%。去年Q1，我提到保固問題，我們有一筆較大的和解，但常態化後大約也是20%。

When we look at going into Q2, we would expect right now a lift to be back between 19% and 20%, really driven by a significant lift in the volume recovering. We expect to see about $100 million of incremental revenue, which would put us back ahead of our Q4 level.

當我們看進入Q2時，以目前來看，我們預期會回升到19%到20%之間，主要由於出貨量回升帶來顯著提升。我們預期將增加約1億美元的增量營收，這會讓我們回到並超過Q4的水準。

And with that, we'd recover or capitalize on those fixed costs. So from a sequential and a step-up around our confidence in that we see Q2 getting quickly back to where we've proven we can be and where we've been even with all the expansions.

同時，我們也將回收或吸收這些固定成本。因此，從逐季與階梯式上升的角度來看，我們對Q2能迅速回到我們已證明可達到、且即使在擴產期間也曾達到的水準，抱持信心。

And then the second part of your question, second half, we continue to have more and more as a percentage of our total capacity online and the throughput will continue to flow through at higher incrementals.

至於你問題的第二部分，下半年我們將有越來越多的總產能上線，產出吞吐量也會以更高的增量持續反映出來。

So we see the second half of the year clearly to get to our target, we'd see a step up in Q3 from Q2 in margins and then another step up in Q4 from Q3. Obviously, the plan here is our second half would be operating for the first time in a while with the higher volumes above that 20% EBITDA margin range second half of the year.

因此我們看到下半年要達到目標，毛利率方面會在Q3相較Q2再上一步，然後Q4相較Q3再上一步。顯然，這裡的計畫是：我們的下半年將是久違地在更高的出貨量下運作，且下半年EBITDA毛利率區間將高於20%。

Neil, did I miss anything?

Neil，我有漏掉什麼嗎？

Sorry, I didn't -- Neil, if you want to add anything else, but that's extremely helpful, Mick. I think the question around demand. I think your results continue to speak to that. Another one-third record quarter of orders. You talked about the backlog more than doubling. Maybe you can talk a little bit about conversion cycle times on backlog at this point. Are you seeing backlog extend out? And how does that factor into your capacity planning?

抱歉，我沒有——Neil，如果你想補充其他內容，但這非常有幫助，Mick。我想問的是需求面。我認為你們的結果持續證明了這點。又是一個訂單創紀錄的季度。你們提到在手訂單（backlog）增加超過一倍。也許你們可以談談目前在手訂單的轉換週期時間。你們是否看到在手訂單交期拉長？這又如何納入你們的產能規劃？

Yeah. Thanks, Noah. This is Neil. Certainly, it does factor into the capacity planning, especially when we have to arrange the schedules within our plans based on available parts. So we take these orders, we bring in and build our backlog, and we base it upon our launch schedules of our product lines as well as existing lines that we have.

是的。謝謝你，Noah。我是Neil。當然，這確實會影響產能規劃，特別是當我們必須依據可取得的零件，在計畫內安排生產排程時。因此我們接收這些訂單、建立在手訂單，並以我們產品線的導入時程以及既有產品線為基礎來規劃。

So the backlog isn't totally made up of just a product that needs to be produced in chiller facilities. We also have a great amount of backlog on our air handling units and with Scott Springfield as well, which has very stable manufacturing at this time. So yeah, those are considered. We take that -- we factor that into our forecast. We factor that into our materials planning as well as our product launches inside the facility.

所以，積壓訂單並不完全只是由需要在冷卻機製造設施生產的產品所構成。我們在空氣處理機組方面也有大量積壓訂單，Scott Springfield 那邊也是如此，而目前其製造狀況非常穩定。所以，是的，這些都會納入考量。我們會把這些——納入我們的預測。我們也會把這些納入我們的物料規劃，以及廠內的產品導入計畫。

All right.

好的。

Matt Summerville, D.A. Davidson.

Matt Summerville，D.A. Davidson。

Thanks. A couple of questions. First, can you talk about whether you've started to see your A-Quad customer begin to execute orders against that capacity LTA? And based on your ongoing discussions with this customer, how you see that LTA cadencing out between '27, '28 and '29. And then I have a follow-up. Thank you.

謝謝。我有幾個問題。第一，能否談談你們是否已開始看到 A-Quad 客戶開始依據那份產能 LTA 執行下單？以及根據你們與該客戶持續的討論，你們如何看待該 LTA 在 2027、2028 與 2029 年之間的下單節奏分布。接著我還有一個追問。謝謝。

This is Neil. Thanks, Matt. Yes, we are seeing that. We've taken a couple of orders already. We anticipate more orders as early next week.

我是 Neil。謝謝你，Matt。是的，我們確實看到了。我們已經接到幾筆訂單。我們預期最早下週就會有更多訂單進來。

And that is right in line with what we expect for orders -- for order intake at Q4. So typically, we would suggest it'd be anywhere between a four- to six-month lead time in order to prepare that and we're right in line with what our expectations were. In regards to the rollout in '27, '28, and '29, it's 20% to 25% in '27, and then Kathy, it's 40%?

而這也完全符合我們對訂單——對第四季接單量的預期。所以一般而言，我們會建議需要大約四到六個月的前置期來做準備，而目前的進度與我們的預期一致。至於 2027、2028 與 2029 年的展開節奏，2027 年是 20% 到 25%，然後 Kathy，是 40% 嗎？

35% to 40%.

35% 到 40%。

35% to 40% in '28 and '29.

2028 年與 2029 年各是 35% 到 40%。

Got it. As a follow-up then, maybe walk through exactly what's been happening supply chain-wise and help us better appreciate your confidence in your ability to lock down the remaining supply you need for this fiscal year and talk through whether or not you're considering a longer-term supply LTA, if you will, to synergize with your own capacity agreement?

了解。那作為追問，能否更具體說明目前供應鏈端到底發生了什麼，並幫助我們更好理解你們對於在本會計年度鎖定剩餘所需供應的信心來源？另外也請談談你們是否正在考慮一份更長期的供應 LTA，以便與你們自身的產能協議形成協同？

Sure. That's a good question. Yes, the answer is yes. And with our critical suppliers, we are actively engaged and in discussions with LTAs and would expect to have that for FY28 as well as FY29 in place soon.

當然。這是個好問題。是的，答案是肯定的。針對我們的關鍵供應商，我們正積極投入並就 LTA 進行討論，並預期很快就能把 FY28 以及 FY29 的安排也落實到位。

In regards to today and now, I've been very public about the amount of suppliers that we've worked with. We doubled our supply chain spend year after year after year, as we've grown the business, and this was yet another year of that.

就今天、就現在而言，我一直很公開地談到我們合作過的供應商數量。隨著業務成長，我們的供應鏈支出年復一年翻倍，而今年也同樣如此。

So this is something that we're familiar with in how we manage it. And I was pretty public that we would have four suppliers that we would put into that category that would potentially make us vulnerable. And we identified that early on in our risk management process.

所以這是我們熟悉的領域，也知道如何管理。而我也相當公開地提到，我們有四家供應商會被歸入那個類別，可能讓我們處於較脆弱的狀態。我們在風險管理流程中很早就識別出這點。

The issue here was the timing. The shortages hit faster than we anticipated. With that, we decisively engaged our current suppliers, and we're expanding our own capacity and we're aggressively taking additional steps to mitigate this. In one instance, we're even considering vertical integration.

這次的問題在於時點。短缺來得比我們預期更快。因此，我們果斷與現有供應商展開合作，同時擴充我們自身產能，並積極採取額外措施來降低風險。在其中一個案例中，我們甚至在考慮垂直整合。

So we have done some pretty interesting things. I'll give a lot of credit to the operations teams. We've really upskilled in operations. We've really invested in operations and brought in some key talent, particularly in the plants, and at the most senior levels that are negotiating with these long-term contracts as well as helping us dynamically balance our launch schedules in line with the available capacity.

所以我們做了一些相當有意思的事情。我也要高度肯定營運團隊。我們在營運能力上確實大幅提升。我們也在營運上投入很多，並引進了一些關鍵人才，特別是在工廠端，以及在最高層級負責談判這些長期合約的人員，同時也協助我們依據可用產能動態平衡產品導入時程。

And then just -- I'm going to sneak in one more. When do you envision activating the remaining chiller lines in Grenada, Jefferson City in the Dallas area. And I dropped for a second and so I apologize if you already covered that.

然後——我再偷偷加問一題。你們預計何時啟用格瑞那達（Grenada）、傑佛遜市（Jefferson City）以及達拉斯地區剩餘的冷卻機產線？我剛剛有一秒掉線，所以如果你們已經回答過，我先致歉。

And then are you thinking any differently about the 50% to 70% Data Center organic framework you initially laid out and supported on your last earnings call for fiscal '28? I think that was a comment from Mick last quarter. Thanks.

另外，你們對於先前提出、並在上一季財報電話會議中支持的 2028 會計年度資料中心 50% 到 70% 有機成長框架，有沒有不同的看法？我記得那是 Mick 上季的評論。謝謝。

Yeah, we're confident in the numbers that we put out, Matt. And we're going to get the flow from the materials corrected. We're going to get our supply chain situation resolved, and we'll be able to catch up and we'll be able to deliver on those numbers as we ramp lines. But certainly, the capacity that we would anticipate, that we were expanding in those regions you just asked about, by the end of the fiscal year, we'll be back on track and on schedule.

是的，Matt，我們對我們提出的數字有信心。我們會把物料供應的流動性修正到位。我們會把供應鏈狀況解決，之後就能追趕進度，並在產線爬坡時交付那些數字。但可以確定的是，就你剛問到那些區域我們正在擴充的產能而言，到本會計年度末，我們會回到正軌並按計畫推進。

Meaning the lines will be up and established at some level of efficiency by the end of the fiscal year for each of those regions.

也就是說，到本會計年度末，這些區域的各條產線都會啟動並建立起來，且在某種程度的效率水準下運作。

Understood. Thank you, guys.

了解。謝謝各位。

Neal Burk, UBS.

Neal Burk，UBS。

Thanks for the questions. You mentioned backlog doubling like I know you don't quantify this, but can you provide some indication of the level of coverage you have relative to sales expectations for this year? I just wonder and maybe like a more negative scenario with the supply chain issues. Is there potential for some of the strong demand in the data center markets to maybe be met by others who are less restricted on supply chain?

謝謝讓我提問。你提到積壓訂單翻倍——我知道你們不會量化，但能否提供一些指標，說明相對於今年的銷售預期，你們目前的覆蓋程度大概到什麼水準？我只是想知道，尤其在供應鏈問題更負面的情境下。資料中心市場的強勁需求，是否可能被供應鏈限制較少的其他廠商承接？

Yeah, I'll go first. It's Mick. Probably the best way to think about the revenue outlook and order book is when we start the year, we have probably 70%, 80% of it in firm orders or for us being a March year-end, we'll typically talk about really -- and also Neil said typical POs being, call it, six months or so, really, really firm six-months out, two quarters.

我先回答。我是 Mick。思考營收展望與訂單簿最好的方式可能是：每年年初，我們大概有 70%、80% 已經是確定訂單；或者以我們三月為會計年度結束來說，我們通常會談——而且 Neil 也提到，一般採購單（PO）的週期大概是六個月左右——也就是說，往前看六個月、兩個季度的部分是非常、非常確定的。

That's about production, supply chain execution, a little bit softer third quarter. And our fourth is customers are there, they're giving us full visibility, but we always say we don't have firm POs. As we're moving through the year now and it'll be the roll forward, Neil was talking about and -- about also the LTA we have with hyperscaler, the orders and POs for our Q4 will start coming in.

那主要關乎生產、供應鏈執行；第三季會稍微沒那麼確定一些。至於第四季，客戶都在，他們也給我們完整的能見度，但我們一向會說我們還沒有確定的採購單。隨著我們現在往年度中推進，Neil 談到的展延（roll forward）也會發生——另外還包括我們與超大規模客戶（hyperscaler）的 LTA，針對我們第四季的訂單與採購單會開始進來。

And that's another reason why each year, we've tried to start with a wider band and make sure we have contingency plans in there with our hope is as the year goes on, we're not only firming up our Data Center revenue, but hopefully pushing it to the higher end.

這也是為什麼每一年我們都嘗試在一開始給出較寬的區間，並確保其中有應變計畫；我們希望隨著年度推進，不僅能讓資料中心營收更趨確定，也希望能把它推向區間的高端。

Neil, anything you want to add on the second part?

Neil，你要不要就第二部分補充一下？

Yeah. And to your question, Neal, could they go somewhere else for that capacity? I would be more concerned if we were a commodity. But we're not. We have a value-added product that our customers desire to help solve their critical challenges and help them with their efficiency goals that they want to gain. So what we have to do is we have to approach this in the right manner, which is leveraging 80/20 on how we handle these commercial engagements.

好。針對你的問題，Neal，他們會不會轉去別處取得那個產能？如果我們是大宗商品，我會更擔心。但我們不是。我們提供的是具附加價值的產品，客戶需要它來解決他們的關鍵挑戰，並協助他們達成想要取得的效率目標。所以我們要做的是以正確的方式來處理，也就是運用 80/20 原則來處理這些商務合作。

So our largest customers get priority. So when we see these shortages, we make sure that we keep up with demand with our largest customers that are key accounts, which means we have to have some more difficult conversations with some of our smaller customers, which we have, and with our smaller customers, they understand as long as we give them enough time and we give them enough visibility, they're willing to work with us because they want the product.

因此，我們最大的客戶會獲得優先權。所以當我們看到這些短缺時，我們會確保能滿足我們最大客戶（也就是關鍵客戶）的需求，這表示我們必須和一些較小的客戶進行比較艱難的溝通；我們也確實這麼做了。而對於較小的客戶，只要我們給他們足夠的時間、提供足夠的可視性，他們就願意與我們合作，因為他們想要這個產品。

Fortunately for us, there's longer lead time issues in the Data Center supply chain that when we are building data centers, there are some things that are beyond even some of our longest lead times. So if we give them the proper visibility and they can plan for it, we don't surprise them then we maintain those orders and those relationships and sales.

對我們而言，幸運的是，資料中心供應鏈存在更長的交期問題；當我們在建置資料中心時，有些項目甚至超出我們最長交期所能涵蓋的範圍。所以只要我們給他們適當的可視性、讓他們能提前規劃，我們就不會讓他們措手不及，進而維持那些訂單、關係與銷售。

That's helpful. And one other question, Mick, you mentioned that you expect data center revenues, I think, up $100 million in 2Q and you mentioned that volume and margin improvements as the quarter progressed. So any indication like we're towards the end of July here, like any indication how how the month is trending in terms of availability and Data Center volumes? Thank you.

這很有幫助。另外一個問題，Mick，你提到你預期資料中心營收在第二季會增加，我想是增加1億美元，而且你也提到隨著季度推進，量與毛利率都有改善。所以像我們現在已經接近7月底了，有沒有任何跡象顯示這個月在供應可得性與資料中心出貨量方面的趨勢如何？謝謝。

Yeah, sure thing. Neil, I'll let you go first with regards to anything with regards to -- are you really -- you're asking about how the first month here of the quarters go looking?

好的，當然。Neil，我先讓你回答，關於——你是想問——你是在問本季第一個月的情況如何嗎？

Yeah, yeah.

對，對。

So we've secured supply chain for -- going forward for this year, assuming that they deliver on what our expectations are and what we've agreed to, then we'll have the supply chain necessary to meet our demand.

我們已經確保了今年接下來的供應鏈；只要供應商能如我們的預期、以及我們雙方所同意的那樣交付，那麼我們就會具備滿足需求所需的供應鏈。

All right. That's clear. Thank you.

好。很清楚了。謝謝。

David Tarantino, KeyBanc Capital Markets.

David Tarantino，KeyBanc Capital Markets。

Hey. Good morning, guys.

嗨。各位早安。

Good morning.

早安。

I just want to follow up on that -- those last comments you were making, Neil. I think you said that the supply chain issues hit faster than expected, but I think in the release, you also mentioned that you saw improvement as the quarter progressed. So maybe just paint the picture on how it progressed through the quarter? Maybe give us some color on how it progressed through June and July and how that -- the actions you've taken showed through sequentially?

我想就你剛才那些評論再追問一下，Neil。我記得你說供應鏈問題比預期更快衝擊到你們，但我也看到你們在新聞稿中提到，隨著季度推進情況有所改善。所以能否請你描繪一下它在整個季度中是如何演變的？也許給我們一些關於6月與7月進展的細節，以及你們採取的行動如何在環比上反映出來？

Yeah. So when a few suppliers -- critical suppliers across this space, and I think you've seen it with other -- some of our competitors, we've even seen this with it, these critical suppliers essentially shut a lot of us down with a hard stop and then we had to go in to negotiate specific volumes.

好的。當少數供應商——這個領域的關鍵供應商——我想你也在其他一些競爭對手身上看到了，我們自己也遇到；這些關鍵供應商基本上以硬性停止的方式讓我們很多人都停擺，接著我們必須進去協商特定的供應量。

The original projected volumes that they provided us were not going to be accepted. And the team did a really good job punching above their way in order to secure supply, considering that everybody in the industry needed these components. So we are able to negotiate with them and secure that supply and then get the facilities back up and running.

他們最初提供給我們的預估供應量是我們無法接受的。考量到整個產業都需要這些零組件，我們的團隊做得非常出色，超常發揮以確保供應。因此我們得以與他們協商、鎖定供應，並讓工廠恢復運轉。

Now during that period of time, we had to make a decision, right? We've got some lines that are in the middle of launching that require these parts. They require these components.

在那段期間，我們必須做出決策，對吧？我們有一些產線正處於導入/上市的中途，而這些產線需要這些零件。它們需要這些元件。

And we now have to reposition these parts that become available to our highest producing most efficient lines so that we can get the throughput necessary, which means you have to idle some other areas, which means you have to carry overhead and you have to carry the labor in order to do this, knowing that it's a short-term problem. So those are the decisions we make. We're going to continue to train our employee base.

而現在我們必須把可取得的零件重新配置到產出最高、效率最佳的產線上，以便達到所需的產能吞吐量；這意味著你必須讓其他一些區域停工，這也意味著你必須承擔間接費用，並且必須保留人力來做到這一點，因為你知道這是短期問題。所以這些就是我們做出的決策。我們會持續訓練我們的員工隊伍。

We're going to -- we're going to carry that additional overhead. We're going to carry that labor because we know this is a short-term issue that we're going to be able to get through in a couple of months. While we start to establish these long-term agreements with these suppliers and then look at other ways to risk mitigate this. So there's multiple ways that the teams are working on risk mitigation. So when we have these types of issues, we can pivot and we can adjust faster.

我們會——我們會承擔那額外的間接費用。我們會承擔那部分人力成本，因為我們知道這是短期議題，我們能在幾個月內度過。同時我們開始與這些供應商建立長期協議，並尋找其他方式來降低風險。所以團隊正在以多種方式進行風險緩解。如此一來，當我們遇到這類問題時，我們就能更快轉向並更快調整。

Yeah. Just one thing to add to that. I want to make sure, too. It's -- when we look at the margins and the growth and the outlook, to me, from the finance standpoint, it's all about volume and the throughput. Neil, he always talks about the products there, the demand is there. It's a premium product.

是的。我再補充一點。我也想確保大家理解。——當我們看毛利率、成長與展望時，從財務角度來看，對我而言一切都取決於出貨量與產能吞吐量。Neil 他總是在談產品；需求就在那裡。這是高端產品。

Even when we look at the quarter, I can tell you that to your question, the third month or the month of June, we were right where we normally want to be from a margin standpoint. So I won't go into details by month, but I can tell you the first month or two where we're really having the shortage and where we finished the third month of the quarter, was right back where we'd expect to be and where we've been.

即使回頭看這一季，針對你的問題，我可以告訴你，第三個月也就是6月，從毛利率角度來看，我們回到我們通常希望達到的水準。所以我不會按月份深入細節，但我可以告訴你，前一兩個月我們確實受到短缺影響，而到了本季第三個月結束時，就回到我們預期的水準，也回到我們一貫的水準。

And then so when we look at Q2, it's like Neil said, assuming parts are there, it's all about the volume, the conversion and the margin will come through.

因此當我們看第二季時，就像Neil說的，只要零件到位，一切就取決於出貨量；轉換效率與毛利率就會反映出來。

Okay. Great. Yeah. That's very helpful color. And then you talked about record orders backlog in Data Centers. So maybe could you give us some color on the drivers between customer types technologies here.

好的。很好。是的。這些細節非常有幫助。另外你提到資料中心的訂單積壓創下紀錄。所以也許你能就不同客戶類型、技術等驅動因素提供一些說明。

Maybe just update us on the pipeline opportunities beyond the orders you received in the quarter and how that's evolved, particularly relative to some of the incremental growth opportunities around both new products and customers?

也請你更新一下，除了本季已取得的訂單之外，後續的商機管線如何，以及它如何演變，特別是相對於新產品與新客戶所帶來的一些增量成長機會？

A big driver of that was with a couple of hyperscalers for us that they continue to provide larger forecasts as we see the growth with their data center build-outs. And then the third one was with a large neo-cloud provider that we've worked with closely. So it's basically the three largest customers that we have that are hyperscaler neo-cloud that continue to increase their forecast with us.

其中一個很大的驅動因素，是我們的幾家超大規模客戶（hyperscalers）持續提供更大的預測，因為我們看到他們資料中心建置的成長。第三個則是一家我們密切合作的大型新雲（neo-cloud）供應商。基本上就是我們最大的三家客戶——屬於hyperscaler與neo-cloud——持續提高他們對我們的預測。

Okay. Great. Thanks.

好的。很好。謝謝。

Brian Drab, William Blair.

Brian Drab，William Blair。

Okay. Thanks for taking my questions. That last one was going to be my first question, so I got that answer. Neil, can you just address, again, are you seeing any change in demand for chillers related to evolving cooling system architectures and inlet fluid temperature spec for future GPU designs?

好的。謝謝讓我提問。剛才那個問題原本是我的第一個問題，所以我已經得到答案了。Neil，你能否再說明一下：你們是否看到，隨著冷卻系統架構演進，以及未來GPU設計的入口液體溫度規格變化，對冷水機（chillers）的需求有任何改變？

Yeah. I mean, it's improving, it's increasing for us because of the technology that we have with free cooling, as these temperatures increase, we have, I think, a really strong product to support that and it just will continue to enhance in terms of the desire and the need for chillers.

是的。我的意思是，對我們而言是在改善、也在增加，因為我們具備自然冷卻（free cooling）的技術；隨著這些溫度提高，我們有一個我認為非常強的產品可以支援，並且對冷水機的需求與意願只會持續提升。

You saw that with the LTA that we took with a large hyperscaler out into '29. And we continue to see that with increased forecasts as we introduce the chiller product line and our enhanced 3-megawatt chiller as well to our customers are very, very excited.

你在我們與一家大型hyperscaler簽下延伸到2029年的長期協議（LTA）時就看到了這點。而且當我們推出冷水機產品線，以及我們強化的3MW冷水機時，我們也持續看到預測上修；客戶都非常、非常興奮。

So it is the idea that's driving the continued demand even if in the temperatures are going to be higher. So I mean, really, is it the combination of your chiller technology with the free cooling and the chiller, it has to be there for almost like an insurance policy, even if it's only if it's used maybe fewer days throughout the year than it would have been otherwise?

所以即使溫度會更高，這個概念仍在驅動持續的需求。所以我的意思是，是否可以說，這其實是你們的冷水機技術與自然冷卻的組合；而冷水機幾乎必須存在，就像一份保險，即使它可能一年中使用的天數比原本更少？

That's exactly correct. So even if you're running at a higher inlet temperature, that's great because you can drive further efficiency and reduce the amount of power consumed to the data center. We're all for that. And that's why we want to go into that free cooling mode. But in the event where you reach a temperature above that, then you have put everything at risk if you don't have the insurance policy of the chiller in the refrigerant cycle.

完全正確。所以即使你的進水溫度較高，這也很好，因為你可以進一步提升效率並降低資料中心的耗電量。我們完全支持這樣做。這也是為什麼我們希望進入那種自然冷卻模式。但如果溫度升高到超過那個門檻，而你又沒有冷媒循環中冷水機作為保險措施，那麼你就把一切都置於風險之中。

And can you give any sense for like the last wave of orders that you've gotten, pick the time period in the last six months or a year? Do you have a sense for the breakdown of your chiller demand across the two categories of facility cooling versus incorporation into a direct-to-chip liquid cooling system?

你能否大概說明一下你們最近一波拿到的訂單情況，例如過去六個月或一年內任選一段期間？你是否掌握冷水機需求在兩類之間的占比：一是用於設施冷卻，二是整合到直達晶片（direct-to-chip）的液冷系統中？

Well, they support both. So it's hard for us to delineate between the two because you'll have -- they'll have similar models and SKUs on the same rooftop of a data center that does both. So without getting inside of the DC, it's hard for us to measure that. But I can tell you that the orders have increased, and that's where we're seeing the backlog, in particular, with our air handling units as well as our chillers.

嗯，它們兩者都支援。所以我們很難在兩者之間做出明確區分，因為在同一座同時做兩種冷卻的資料中心屋頂上，你會看到——他們會使用相似的機型與SKU。因此在不深入資料中心內部的情況下，我們很難衡量。但我可以告訴你，訂單確實增加了，而我們看到的積壓訂單（backlog）就在這裡，特別是在我們的空氣處理機組以及冷水機上。

Okay. And then last one, if I could. You essentially sold most of your chiller capacity, I believe, with that LTA and doing more than half of it at least and probably well more than half in the out years. So I'm wondering if you're seeing other customers maybe step up and considering more strongly considering an LTA to get their share of the product going forward?

好的。如果可以的話，最後一個問題。我理解你們基本上透過那份LTA賣出了大部分冷水機產能，至少超過一半，而且在未來幾年可能遠超過一半。所以我想知道，你們是否看到其他客戶也開始更積極、甚至更強烈地考慮簽LTA，以確保未來能分到產品配額？

Yeah, I'd say about half of it was part of the LTA, and I think that will be reduced over time as we get more efficient with our product manufacturing as well as when we launched the 3-megawatt chiller. We'll be able to produce more and the capacity will increase based on the ratio of 2-megawatt versus 3-megawatt.

是的，我會說大約一半是LTA的一部分；而且我認為隨著時間推移，這個比例會下降，因為我們在產品製造上會更有效率，另外當我們推出3兆瓦冷水機之後也是如此。我們將能生產更多，產能也會因2兆瓦與3兆瓦的比例而提高。

But certainly, we're in conversations with folks on timing. I don't see any LTAs of the same level of significance that we had with our first hyper. But definitely, there are conversations as we continue to scale and ramp our facilities. We're looking at agreements that 12 to 18 months that are not necessarily as long as the three-year agreement we had with hyper.

但當然，我們正在與一些客戶就時程進行討論。我不認為會再出現像我們與第一家超大規模客戶（hyper）那樣同等重要程度的LTA。不過，隨著我們持續擴張並爬坡我們的產能與廠房，確實有相關對話在進行。我們在看的是12到18個月的協議，不一定像我們先前與hyper簽的三年期協議那麼長。

Got it. Okay. Thanks very much.

了解。好的。非常感謝。

Jeff Van Sinderen, B. Riley Securities.

Jeff Van Sinderen，B. Riley Securities。

Good morning, everyone. Just regarding the customer-driven delays that I think you mentioned in your prepared comments, are there any other major delays or shifts in timing by your customers that are potentially pending that they maybe made you aware of, that you're watching closely that could impact demand timing?

各位早安。關於你們在事先準備的發言中提到、由客戶端驅動的延遲，我想請問：客戶是否還有其他可能正在發生、或即將發生的重大延遲或時程變動，他們有告知你們、而你們也在密切關注，可能會影響需求時點？

And then also, are any of those factored into guidance that could shift in or shift out? And then finally, what's the root cause of the delays? Is it centered around supply chain?

另外，這些是否已反映在指引中，可能會提前或延後？最後，延遲的根本原因是什麼？是否主要與供應鏈有關？

I'll take the last one in terms of what the root cause is. That is based on new product launch. So that is a design that we're doing with specific hyperscaler around a unique product that's for the hyperscaler that we're in probably the third iteration of the design cycle. And when we went through some updates to the print and some updates to the overall specifications of the product, and adjusted it out of the quarter for the bill.

我先回答最後一個，也就是根本原因。那是因為新產品上市。也就是我們正與某家特定超大規模客戶合作的一個設計，屬於為該超大規模客戶打造的獨特產品；我們大概已經進到設計週期的第三次迭代。當我們對圖紙做了一些更新、對產品整體規格也做了更新後，就把開立帳單的時點調整到跨出該季度。

Yeah. second, Jeff, we have at all times in our forecast with the nature of the markets and some of the large construction projects attached. We do have contingencies and we try to take different scenarios to this. I think candidly, in Q2 is just a little bit of a perfect storm of some of the supply base items Neil talked about were deeper or longer.

是的。第二點，Jeff，我們在預測中一直都會考量到市場特性以及一些大型建設專案的連動。我們確實會設置備援（contingencies），並嘗試用不同情境來推演。坦白說，第二季有點像是完美風暴：Neil提到的一些供應端項目，影響更深、或交期更長。

And then when the parts come in, these are such large components. You can't just make them up in a week or two with the lines in labor, even though parts are coming in the door. And then combine with what Neil said, I reiterate that it wasn't like chiller orders getting canceled or pushed out. That was a new product launch.

而且當零件到貨後，這些都是非常大型的組件。即使零件已經進門，你也不可能靠產線與人力在一兩週內就把它們補做出來。再加上Neil所說的，我再強調一次，這並不是冷水機訂單被取消或被延後。那是新產品上市所造成的。

So I think -- but going forward, we do try to build in contingencies and flexibility into our outlook knowing things are going to go. We see ins and outs almost daily in the order intake and the production plan.

所以我認為——但往前看，我們確實會在展望中納入備援與彈性，因為我們知道事情會有變動。我們幾乎每天都會在接單與生產計畫上看到進出變化。

Okay. That's helpful. And then just regarding the fiscal Q2 metric framework, Wondering how you're thinking about order of magnitude for a EBITDA or just EBITDA margin recovery. Do you think it's more gradual maybe in Q2 and then sharper in Q3 and Q4? Or how are you thinking about that for the remaining quarters of the year?

好的。這很有幫助。另外，關於財年第二季的指標框架，我想了解你們對EBITDA或EBITDA利潤率回升的量級是怎麼看的。你們認為第二季會比較逐步，然後第三、第四季更明顯加速？或是你們對今年剩餘季度是怎麼思考的？

Yeah. So a couple of things. And Performance Technologies, I think will just address that. That's -- we expect pretty much the next quarter or two about the same. It's at the same market conditions, and they are doing a nice job to offset any costs or inflation there. So a similar level of margin there.

是的。有幾點。先談Performance Technologies，我想就針對那部分說明。我們預期接下來一到兩季大致會差不多。市場狀況相同，而他們在抵銷成本或通膨方面做得很好。所以那邊的利潤率會維持在相近水準。

Q2, we see a step-up with Commercial HVAC. I already mentioned on the call, a large step up in Q2 for Data Centers, really getting back to where we've been in that range again. And if you put that all together for us, it would be a nice step up in our Q2 here. Probably a 200-basis point, 250-basis point lift.

第二季，我們看到商用HVAC會有一個上台階。我在電話會議上已提到，資料中心在第二季會有很大幅度的上台階，基本上會回到我們之前那個區間。把這些加總起來，第二季對我們而言會是相當不錯的一個上升。大概會提升200個基點到250個基點。

So we -- and I mentioned on the call, we see Q2, Q3, and Q4 having more favorable year over year, obviously, margin comparisons as well. So a pretty good step up in Q2. And then someone had asked earlier, obviously, what's implied for the full year with Data Center is we would expect the margin step up in Q3 and in Q4 as well. So that will be a big driver of our second half.

所以我們——我也在電話會議上提到，我們看到第二、第三與第四季在年對年方面會有更有利的利潤率比較。因此第二季會是相當不錯的一個上台階。另外，有人先前問到，從全年來看資料中心隱含的走勢是什麼——我們預期第三季與第四季利潤率也會再上台階。所以這將會是我們下半年表現的一個重要驅動因素。

Okay. Great. Thanks for taking my questions. I'll take rest offline.

好的。很好。謝謝回答我的問題。我其餘的會私下再問。

Chris Moore, CJS Securities.

Chris Moore，CJS Securities。

Hey. Good morning, guys. Just in terms of the product launches you were talking about, I wasn't sure if you were -- I know in the past, you've talked about modular data centers and you're partnering with one hyperscaler working on the second-generation, soon to be third generation. Are you -- talking about the modular data center? Or is that a separate topic to discuss here?

嗨。各位早安。就你們剛才談到的新產品上市而言，我不太確定你們指的是——我知道過去你們談過模組化資料中心，並且你們正與一家超大規模客戶合作開發第二代、很快會到第三代。你們是在談模組化資料中心嗎？還是這裡要討論的是另一個不同的主題？

No, that was it, Chris, it was the same, it was that product, yeah.

不，就是那個，Chris，是同一個，就是那個產品，沒錯。

Got you. Okay. And just in terms of as we move forward without Performance Technologies, looking at when things normalize a little bit, just maybe from a gross margin perspective, looking at Data Center and looking at Commercial HVAC, is there a normalized level that we should be thinking about? Or which of those segments likely is going to drive the higher gross margin moving forward?

了解。好的。另外，隨著我們往前走、先不看Performance Technologies，當情況稍微正常化之後，從毛利率角度來看，資料中心與商用HVAC是否有一個我們應該思考的常態化水準？或者未來哪一個部門更可能驅動較高的毛利率？

A really good question. And we haven't yet done the official pro forma for you, but I'll let you guys do that math. Clearly, part of the challenge on the PT side has been around the gross margin. Frankly, the Commercial HVAC and Data Center, Neil and I have talked about, their ability to operate it like a 30%-type of gross margin. Some of those businesses within there have already been there, are there, and have been there.

這是個非常好的問題。我們還沒有為各位做出正式的備考（pro forma）資料，但我會讓各位自己去算那個數字。很明顯，PT 這邊的挑戰之一一直在於毛利率。坦白說，商用 HVAC 與資料中心這兩塊，Neil 和我談過，他們有能力把它運作到類似 30% 的毛利率水準。其中有些業務其實早就達到過、目前也在那個水準，而且一直都在那個水準。

And I think in the case of Data Centers, Neil, and I said that's a direction to go as we start to get more level-loaded on our capacity utilization or fixed cost absorption. But you're right, if you back out Performance Technologies, we're probably thinking about somewhere between 7% to 10% type gross margin lift when we are a pure HVAC data center company.

而且我認為就資料中心而言，Neil 和我也說過，當我們的產能利用率或固定成本吸收變得更平均、更穩定時，這就是我們要前進的方向。但你說得對，如果把 Performance Technologies 扣除掉，當我們成為一家純粹的 HVAC 資料中心公司時，我們大概會認為毛利率可提升約 7% 到 10% 左右。

Got it. Very helpful. I'll leave it there. Appreciate it, guys.

了解。非常有幫助。我就先到這裡。謝謝各位。

Matt Summerville, D.A. Davidson.

Matt Summerville，D.A. Davidson。

I just have a quick follow-up. Have you -- where are you, I guess, in your decisioning on whether or not Modine will ultimately need incremental fixed capacity or thinking about migrating more towards a variable model, as you think about being able to more broadly address some of the hyperscalers that weren't part of the discussion when you referenced three specific customers as being the main driving force behind your air handlers and your chiller orders and backlog?

我只有一個簡短的追問。你們——我想問的是，關於 Modine 最終是否需要新增固定產能，或是考慮更多轉向可變動（variable）模式，你們目前在決策上進展到哪一步？尤其是當你們思考要更廣泛地服務一些超大規模業者（hyperscalers）時——這些業者在你們提到三個特定客戶、作為空氣處理機與冷水機訂單及積壓訂單主要驅動力時，並未納入當時的討論。

Yeah. We certainly have these conversations in terms of our manufacturing footprint and our supply chain strategy. And it's also at the forefront of our design as well. So as we think about our design, we're designing for the ability to be more modular -- not the modular unit, but modular as a term, meaning you have more flexibility because you have more of a systems approach in the factory.

是的。我們確實一直在就製造據點（footprint）與供應鏈策略進行這些討論。而且這也同樣是我們設計端的首要考量。因此當我們思考設計時，我們會朝向更模組化的能力來設計——不是指模組化機組（modular unit），而是把「模組化」當作一個概念，意思是你在工廠端採用更偏系統化的方法，因而擁有更高的彈性。

So when we think about that, the range is right around $4 billion that we feel we have the capacity for over time with the existing CapEx deployment as well as the facilities and rooftops we have in place today. To get beyond that, it would be a different level of CapEx outline if we were to choose to do that or it could be a combination of both incremental additional facility or more efficiency on the existing lines and then leveraging supply chain to help produce that overflow capacity.

所以就這點而言，我們認為在現有的資本支出（CapEx）配置，以及目前既有的廠房與屋頂空間條件下，長期來看我們大約有接近 40 億美元的產能承載能力。若要超過這個水準，如果我們選擇這麼做，就會需要不同層級的 CapEx 規劃；或者也可能是兩者的組合：新增額外廠房，或提升既有產線效率，再加上運用供應鏈來協助生產那部分溢出產能。

So I think we've got time to figure that out. And we will. But certainly, we get more and more confidence that this is a problem that we are happy to solve for as we see the backlog and order increase.

所以我認為我們還有時間把這件事想清楚。而且我們會的。但可以確定的是，隨著我們看到積壓訂單與訂單量增加，我們對於這是一個我們樂於解決的問題也越來越有信心。

Perfect. And then I just want to make sure I understood Mick correctly. So the Data Center side of the business in the month of June was hitting your desired profitability objective you laid out for the September quarter in that 19% to 20% range and July is functioning along those same lines. Did I interpret that correctly or am I interpreting that correctly?

很好。另外我想確認我是否正確理解 Mick 的意思。所以資料中心業務在 6 月份已達到你們為 9 月季度所設定的目標獲利水準，也就是 19% 到 20% 的區間，而 7 月也以同樣的狀態運作。我這樣理解對嗎？還是我理解正確嗎？

You are -- you're adding a little color, but that's okay. It is, but that was my point. I'm not tracking margins mid-month here. But what I want to make sure I -- it was a good question, I think, from David. When we went through the quarter, we really saw the impact of that supply chain and having the plants waiting for parts.

你——你加了一點詮釋，但沒關係。是的，但那就是我的重點。我不會在月中去追蹤毛利率。但我想確認的是——我覺得 David 的問題問得很好。當我們回顧那個季度時，我們確實看到供應鏈的影響，工廠因為等零件而停等。

But I was really happy to see when we started the lines up again we finished the quarter, I think what I was saying, I'd say it was up much more in range with where we'd expect it to be.

但我很高興看到當我們重新啟動產線後、在季度末完成出貨時，我想我當時的意思是——我會說它回升到更接近我們預期的區間。

So yeah, you heard it right. I didn't comment on July, but frankly, that's just because I'm not tracking. I'll get profitability reports here as we come to the end of the month next week. But did want to say that June was a big uptick, and that's a really positive signal.

所以，是的，你聽得沒錯。我沒有評論 7 月，但坦白說，那只是因為我沒有在追蹤。我會在下週月底時拿到獲利報告。但我確實想說，6 月有很大的回升，這是一個非常正面的訊號。

Perfect. Thank you, guys.

很好。謝謝各位。

David Tarantino, KeyBanc Capital Markets.

David Tarantino，KeyBanc Capital Markets。

Hey. Just had two quick follow-ups. Maybe on Commercial HVAC, we haven't touched on that yet. Just good to see some updates here on 80/20 initiatives here. But now that we can see the margins here more clearly, could you frame for us the opportunity here and how we should expect both margins to progress both this year and what the opportunity on 80/20 as longer term?

嗨。我有兩個簡短的追問。也許先談商用 HVAC，我們還沒提到這部分。很高興看到你們在 80/20 計畫上有一些更新。但既然我們現在能更清楚看到毛利率，你們能否幫我們框定一下這裡的機會，以及我們應該如何預期今年毛利率的走勢，還有從長期來看 80/20 的機會有多大？

Yeah. I'll take it and Neil can add any color if we want. Yeah, I mean, we -- that HVAC business, especially when we look at our Heating business as one of the most profitable across our companies, in a normal environment, I think we'd like to see that operating north of 20% or in the low 20%s from an EBITDA percentage, I mentioned that we're going to see an uptick here in Q2, probably 150 basis points or so.

好的。我先回答，Neil 也可以補充一些看法。是的，我是說——這個 HVAC 業務，尤其是我們的供暖（Heating）業務，從整個公司來看是最具獲利能力的業務之一；在正常環境下，我認為我們希望它的 EBITDA 利潤率能在 20% 以上或 20% 出頭。我也提到過，我們在第二季會看到回升，可能大約提升 150 個基點左右。

And we still think this business will end the year somewhere between 18% and 20%. But from an 80/20 perspective, that is an opportunity set that I think you're asking about. If we -- last year was about 16.7%. So the goal here is to add a 200 basis points this year.

而且我們仍然認為這項業務今年年底會落在 18% 到 20% 之間。但從 80/20 的角度來看，這就是你在問的那組機會。如果我們——去年大約是 16.7%。所以今年的目標是提升 200 個基點。

And then I would expect we could do it again the following year. Frankly, the products are there, the business is there and the demand. It's -- we're doing a lot of plant consolidation right now from an 80/20 perspective, and we can drive significant margin improvements through leveraging 80/20 from an operation standpoint.

接著我預期隔年我們也可以再做一次。坦白說，產品在、業務在、需求也在。我們目前正從 80/20 的角度進行大量的工廠整併，而我們可以透過在營運端運用 80/20 來推動顯著的毛利率改善。

Okay. Great. And then maybe just a quick one on capital allocation. Clearly, organic investments of focus, but balance sheet still remains pretty clean. So just following the drawback here in shares, like would you consider leaning more into buybacks?

好的。很好。再來快速問一下資本配置。很明顯你們聚焦於有機投資，但資產負債表仍然相當乾淨。所以在股份回落之後，你們會考慮更積極地進行庫藏股回購嗎？

Yeah. I think we have -- well, I know we have regular dialogue, Neil and I, with the Board on that. And yeah, for sure, I think the two things we said -- and hopefully, we'll come here to the last stretch of the spin-off, but we've said we're also need to gear up with an M&A outlook, how it post that. But obviously, with the shares trading down, we'll always have that discussion with the Board as well.

會的。我想我們——嗯，我知道 Neil 和我會就這件事與董事會保持定期對話。而且是的，當然。我想我們提過兩件事——希望我們即將進入分拆（spin-off）的最後階段——但我們也說過，分拆之後我們需要在併購（M&A）展望上做好準備。但很明顯，當股價下跌時，我們也一定會和董事會討論回購的議題。

Great. Thanks, guys.

很好。謝謝各位。

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

目前顯示沒有其他提問。現在我想把電話會議交回給 Kathy Powers。

Thank you, and thanks to everyone for joining our call this morning. The replay will be available through our website in a couple of hours. We hope everybody has a great day. Thanks.

謝謝，也感謝各位今天早上參加我們的電話會議。重播將在幾個小時後於我們的網站提供。祝大家有美好的一天。謝謝。

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

今天的電話會議到此結束。您現在可以掛斷電話線。感謝您的參與。