MSA Safety Inc (MSA) 2025 Q2 法說會逐字稿

Good day, and welcome to the MSA Safety second quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 MSA Safety 2025 年第二季財報電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the conference over to Larry De Maria. Please go ahead.

現在我想將會議交給拉里·德瑪利亞。請繼續。

Thank you. Good morning, and welcome to MSA Safety's second quarter 2025 earnings conference call. This is Larry De Maria, Executive Director of Investor Relations. I'm joined by Steve Blanco, President and CEO; Elyse Brody, Interim CFO; and Stephanie Sciullo, President of our Americas segment.

謝謝。早上好，歡迎參加 MSA Safety 2025 年第二季財報電話會議。我是投資者關係執行董事 Larry De Maria。與我一起出席的還有總裁兼執行長史蒂夫·布蘭科 (Steve Blanco)、臨時首席財務官伊莉絲·布羅迪 (Elyse Brody) 和美洲分部總裁斯蒂芬妮·斯庫洛 (Stephanie Sciullo)。

During today's call, we will discuss MSA's second quarter financial results and provide an update on our full-year 2025 outlook. Before we begin, I'd like to remind everyone that the matters discussed during this call may include forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.

在今天的電話會議上，我們將討論 MSA 的第二季財務業績並提供我們對 2025 年全年展望的最新資訊。在我們開始之前，我想提醒大家，本次電話會議討論的事項可能包括 1995 年《私人證券訴訟改革法案》所定義的前瞻性陳述。

Forward-looking statements include, but are not limited to, all projections and anticipated levels of future performance. Forward-looking statements involve a number of risks, uncertainties, and other factors that may cause our actual results to differ materially from those discussed today. These risks, uncertainties and other factors are detailed in our SEC filings.

前瞻性陳述包括但不限於對未來績效的所有預測和預期水準。前瞻性陳述涉及許多風險、不確定性和其他因素，這些因素可能導致我們的實際結果與今天討論的結果有重大差異。這些風險、不確定性和其他因素在我們提交給美國證券交易委員會的文件中詳細說明。

MSA Safety undertakes no duty to publicly update any forward-looking statements made on this call, except as required by law. We've included certain non-GAAP financial measures as part of our discussion this morning. The non-GAAP reconciliations are available in the appendix of today's presentation. The presentation and press release are available at our investor relations website at investors.msasafety.com.

除非法律要求，MSA Safety 不承擔公開更新本次電話會議中任何前瞻性聲明的義務。我們在今天上午的討論中納入了某些非公認會計準則財務指標。非公認會計準則對帳表可在今天簡報的附錄中找到。您可以在我們的投資者關係網站 investors.msasafety.com 上查閱該簡報和新聞稿。

Moving on to today's agenda. Steve will provide an update on the business. Elyse will then review our second quarter financial performance and 2025 outlook. Steve will then provide closing remarks and open the call for your questions. With that, I'll turn the call over to Steve Blanco. Steve?

繼續今天的議程。史蒂夫將提供有關業務的最新進展。然後，Elyse 將回顧我們第二季的財務表現和 2025 年的展望。史蒂夫隨後將致閉幕詞並開始回答大家的提問。說完這些，我將把電話轉給史蒂夫布蘭科。史蒂夫？

Thanks, Larry, and good morning, everyone. Thank you for your continued interest in MSA Safety. I'm on Slide 4. In the second quarter, consolidated reported sales growth was 3% or flat organic and adjusted earnings per share were $1.93.

謝謝，拉里，大家早安。感謝您對 MSA Safety 的持續關注。我在第 4 張投影片。第二季度，綜合報告銷售額成長 3% 或持平，調整後每股收益為 1.93 美元。

Our team continued to execute well in a dynamic environment. Financial results for the second quarter exceeded our original expectations. This was primarily due to better-than-expected backlog conversion in fire service and detection. The M&C TechGroup acquisition contributed $11 million to reported sales for the quarter.

我們的團隊在動態環境中繼續表現良好。第二季的財務表現超出了我們最初的預期。這主要是由於消防和探測方面的積壓轉換情況好於預期。M&C TechGroup 的收購為本季報告銷售額貢獻了 1,100 萬美元。

Operating margins declined compared to last year due to gross margin pressures, primarily from transactional foreign currency headwinds and inflation. We also saw the impacts of lower organic volume as well as the early impacts of tariffs on input costs. These pressures were partially offset by pricing and improved productivity.

由於交易外匯逆風和通膨等因素造成毛利率壓力，營業利潤率較去年同期下降。我們也看到了有機產量下降的影響以及關稅對投入成本的早期影響。這些壓力被定價和生產力提高部分抵消。

Overall demand was stable and varied across our product categories. A decline in fire service was offset by growth in detection and industrial PPE. Sequentially, the backlog declined more than expected in the second quarter, though it remains within normalized levels. Consistent with seasonal patterns, our book-to-bill was slightly below 1. Moving to our product categories. Detection's mid-single-digit organic growth was driven by expansion in both fixed and portable gas detection, despite a challenging year-over-year comparison. Detection grew 6% organically on top of high single-digit growth in 2024. Organic sales in fire service declined mid-single digits year-over-year. We were pleased to ship several large orders from our backlog and get product into the hands of our customers, notably the Orange County Fire Department order.

我們的產品類別的整體需求穩定且多種多樣。消防服務的下降被探測和工業個人防護裝備的成長所抵消。第二季積壓訂單下降幅度超過預期，但仍處於正常水準。與季節性模式一致，我們的訂單出貨比略低於 1。轉到我們的產品類別。儘管與去年同期相比面臨挑戰，但檢測業務仍實現了中等個位數的有機成長，這得益於固定和便攜式氣體檢測業務的擴張。2024 年，檢測量在高個位數成長的基礎上，有機成長了 6%。消防服務的有機銷售額較去年同期下降了中個位數。我們很高興從積壓訂單中發出了幾份大訂單，並將產品送到了客戶手中，特別是奧蘭治縣消防局的訂單。

Domestically, market dynamics surrounding the NFPA (National Fire Protection Association) standard change began to impact order pace towards the end of the quarter. As we've discussed in the past, NFPA standard years often carry short-term volatility as customers evaluate when to renew their fleets.

在國內，圍繞 NFPA（美國國家消防協會）標準變化的市場動態開始影響本季末的訂單速度。正如我們過去所討論過的，NFPA 標準年通常會出現短期波動，因為客戶會評估何時更新他們的車隊。

The pipeline of business opportunities remains intact. It's a matter of customer timing. As a reminder, we continue to expect the NFPA standard to promulgate sometime later this year or early next. We've managed through approval cycles before and successfully navigated similar market dynamics. I'm confident we will continue to be well prepared to serve our customers in the fire service.

商業機會管道依然完好。這是客戶時間的問題。提醒一下，我們仍然預計 NFPA 標準將在今年稍後或明年年初頒布。我們之前已經完成了審批週期並成功應對了類似的市場動態。我相信我們將繼續做好充分準備為消防部門的客戶服務。

Industrial PPE organic sales were down low single digits as contractions in head protection and ballistic helmets offset strength in fall protection. We've invested in fall protection as part of our ACCELERATE strategy to capitalize on the strong market growth, and it's encouraging to see double-digit growth in this area in the second quarter, which remains one of the fastest-growing areas of the safety market.

由於頭部防護和防彈頭盔的萎縮抵消了防墜落防護的強勁表現，工業個人防護裝備的有機銷售額下降了個位數。作為我們加速策略的一部分，我們已投資防墜落保護領域，以利用強勁的市場成長，令人鼓舞的是，第二季度該領域實現了兩位數的成長，它仍然是安全市場成長最快的領域之一。

Turning to Slide 5. As we move through the year, we continue to utilize the principles of the MSA Business System and lean into our ACCELERATE strategy actions to drive long-term value creation. Let me highlight a few strategic actions and commercial successes in the quarter before I delve deeper into our capital allocation progress and strategy on the next slide.

翻到幻燈片 5。隨著時間的推移，我們將繼續利用 MSA 業務系統的原則，並依靠我們的 ACCELERATE 策略行動來推動長期價值創造。在下一張投影片中深入探討我們的資本配置進展和策略之前，讓我先重點介紹本季的一些策略行動和商業成功。

First, we continue to expand our leadership in industrial safety technology while making a positive impact. I'm proud to share that we recently published our annual Impact Report for 2024. You can see some report highlights in the appendix on Slide 15. I want to draw your attention to the call out of 40 million workers protected, which we reaffirmed with this report. This demonstrates our scale and commitment to our mission.

首先，我們在產生正面影響的同時，不斷擴大在工業安全技術領域的領導地位。我很自豪地告訴大家，我們最近發布了 2024 年影響年度報告。您可以在第 15 張投影片的附錄中看到一些報告重點。我想提請大家注意保護4000萬工人的呼籲，我們在本報告中重申了這一點。這體現了我們的規模和對使命的承諾。

Second, on the operational side, we implemented targeted price increases in the second quarter and continued to build our pipeline of tariff mitigation and productivity actions. We plan to take further actions in the second half based on the tariff developments.

第二，在營運方面，我們在第二季實施了有針對性的價格上調，並繼續建立關稅減免和生產力行動方案。我們計劃根據關稅發展在下半年採取進一步行動。

Third, strong commercial and operating performance enabled us to fulfill some customer needs ahead of schedule, leading to similar levels of backlog conversion as last year. I'm also pleased to see our strategies in detection and fall protection yielding results.

第三，強勁的商業和營運表現使我們能夠提前滿足部分客戶的需求，從而使積壓訂單轉換水準與去年相似。我也很高興看到我們的檢測和防墜落策略取得了成果。

Turning to Slide 6. Now that we are more than a year removed from our 2024 Investor Day, I'd like to update you on our recent actions regarding capital deployment and the investments we're making for our future. As you know, we have a disciplined, growth-oriented approach to capital allocation that focuses on organic growth, M&A, and cash returns to shareholders through dividends, and share repurchases.

翻到幻燈片 6。距離 2024 年投資者日已經過去一年多了，我想向大家介紹一下我們最近在資本部署方面的行動以及我們為未來所做的投資。如您所知，我們對資本配置採取了嚴謹的、以成長為導向的方法，重點關注有機成長、併購以及透過股利和股票回購向股東提供現金回報。

Fundamentally, we continue investing in our business and people to achieve profitable organic growth. Our R&D investments support new product development and contribute to our mid-30s product vitality index. This proven R&D engine focuses on delivering market-leading innovation to our customers in the industrial safety technology markets we serve.

從根本上來說，我們繼續投資於我們的業務和員工，以實現盈利性的有機成長。我們的研發投資支持新產品開發並為我們 30 年代中期的產品活力指數做出了貢獻。這個成熟的研發引擎專注於為我們服務的工業安全技術市場的客戶提供市場領先的創新。

Here are two examples of this engine yielding results. First, we've seen exponential growth in our connected portables business. And for the past couple of quarters, over half of our absolute growth in portables has come from our MSA+ solutions, driven by the ALTAIR ioTM 4.

以下是該引擎產生結果的兩個範例。首先，我們的連網便攜式設備業務呈指數級成長。在過去的幾個季度中，我們便攜式產品絕對成長的一半以上來自於我們的 MSA+ 解決方案，這由 ALTAIR ioTM 4 推動。

Second, we've been very intentional with our lean into fall protection. Our recent launches of the V-TEC® and V-Shock® platforms are performing well in the market and have been major catalyst for our double-digit growth in the area.

其次，我們非常注重防墜落保護。我們最近推出的 V-TEC® 和 V-Shock® 平台在市場上表現良好，並成為我們在該領域實現兩位數成長的主要催化劑。

During the second quarter, we also strategically invested in our future at Cranberry Township, Pennsylvania, which is home to our detection manufacturing Center of Excellence and our largest R&D center. This footprint investment supports our ACCELERATE strategy by enabling us to scale our R&D efforts effectively and provide flexibility on additional manufacturing expansion over time. It also aligns with our plan to foster a more collaborative in-person workforce and keeps us well positioned to attract and retain top talent. On the inorganic front, I'm excited to welcome M&C TechGroup to the MSA family. M&C is a German-based manufacturer of gas analysis solutions and technologies that enhance our fixed gas offerings. Their technology complements our fixed gas detection business and expands our TAM by $500 million. The team is doing a great job engaging for our collective success, and we're on track with our integration plans. Slide 14 in the appendix provides more details on the transaction. We maintain an active pipeline of potential strategic targets focused on high-growth and differentiated product categories. We continue to build out our capabilities to enable a more consistent M&A flywheel.

在第二季度，我們也對賓州克蘭伯里鎮的未來進行了戰略投資，這裡是我們的檢測製造卓越中心和最大的研發中心所在地。這項足跡投資支持我們的 ACCELERATE 策略，使我們能夠有效地擴大研發力度，並為隨著時間的推移進一步擴大製造規模提供靈活性。這也符合我們培養更具協作精神的員工隊伍的計劃，並使我們處於有利地位，能夠吸引和留住頂尖人才。在無機方面，我很高興歡迎 M&C TechGroup 加入 MSA 大家庭。M&C 是一家德國氣體分析解決方案和技術製造商，致力於增強我們的固定氣體產品供應。他們的技術補充了我們的固定氣體檢測業務，並將我們的 TAM 擴大了 5 億美元。團隊為我們的集體成功做出了巨大貢獻，我們的整合計畫也進展順利。附錄中的投影片 14 提供了有關該交易的更多詳細資訊。我們保持著積極的潛在策略目標管道，並專注於高成長和差異化的產品類別。我們將繼續增強我們的能力，以實現更一致的併購飛輪。

Finally, we also returned cash to shareholders. For the 55th consecutive year, we increased our annual dividend. We also repurchased $30 million of stock this quarter and $40 million year-to-date. Increased share repurchases were enabled by our strong balance sheet, expected cash flow generation, and having our net leverage remain below our target range following the acquisition of M&C.

最後，我們也向股東返還現金。我們連續第 55 年增加年度股利。本季我們也回購了價值 3,000 萬美元的股票，今年迄今回購了價值 4,000 萬美元的股票。我們強勁的資產負債表、預期的現金流量產生以及收購 M&C 後我們的淨槓桿率仍低於目標範圍，促成了股票回購的增加。

I'll reiterate what I said at last year's Investor Day. You can count on us to be responsible stewards of capital, focused on allocating effectively to create value for our stakeholders, all focused on advancing our mission of safety. I'd like to now turn the call over to Elyse to discuss our financial performance in the second quarter. Elyse?

我將重申我在去年投資者日上所說的話。您可以信賴我們，我們是負責任的資本管理者，專注於有效分配，為我們的利害關係人創造價值，全力推動我們的安全使命。現在我想將電話轉給 Elyse，討論我們第二季的財務表現。伊莉絲？

Thank you, Steve, and good morning, everyone. We appreciate you joining the call. Let's start on Slide 7 with the quarterly financial highlights. Second quarter sales were $474 million, an increase of 3% on a reported basis or flat organic over the prior year. Revenue was supported by stronger backlog conversion. M&C added 2% to overall growth and currency translation was less than a 1% tailwind based on the strengthening euro. As expected, gross margins continued to be pressured in the quarter at 46.6%, down 170 basis points from last year. Gross margins primarily reflect transactional FX and inflation headwinds and to a lesser degree, volume, and the early impacts of tariffs, which were partially offset by price and improved productivity. We will start to see the tariff impact become more pronounced in the second half, coinciding with our mitigating pricing actions. We expect FX pressure on gross margins to continue in the second half due to Latin American currencies.

謝謝你，史蒂夫，大家早安。感謝您參加此次電話會議。讓我們從幻燈片 7 開始介紹季度財務亮點。第二季銷售額為 4.74 億美元，以報告基礎計算成長 3%，與前一年持平。收入受到更強勁的積壓訂單轉換的支持。製造業和服裝業為整體成長貢獻了 2%，而由於歐元走強，貨幣換算對整體成長的貢獻不到 1%。正如預期的那樣，本季毛利率繼續承壓，為 46.6%，較去年同期下降 170 個基點。毛利率主要反映交易外匯和通膨阻力，在較小程度上也反映交易量和關稅的早期影響，但這些影響被價格和生產力提高部分抵銷。我們將開始看到關稅的影響在下半年變得更加明顯，這與我們的緩解定價行動相吻合。我們預計，由於拉丁美洲貨幣的影響，下半年毛利率仍將面臨外匯壓力。

GAAP operating margin was 18.1% with adjusted operating margin of 21.4%, down 200 basis points from a year ago due to the contraction in gross margins. We are diligently focused on controlling the controllables through SG&A productivity, pricing, and tariff mitigation plans to counter the pressure on raw material costs.

GAAP 營業利潤率為 18.1%，調整後營業利潤率為 21.4%，由於毛利率收縮，較去年同期下降 200 個基點。我們致力於透過銷售、一般及行政費用生產力、定價和關稅減免計劃來控制可控因素，以應對原材料成本的壓力。

While operating margins were pressured compared to 2024, the longer-term trend is indicative of the operational and commercial capabilities that we've built through the MSA Business System deployment and customer-led innovation. Compared to 2019, first half operating margins are up 300 basis points.

雖然與 2024 年相比，營業利潤率面臨壓力，但長期趨勢表明我們透過 MSA 業務系統部署和客戶主導的創新建立了營運和商業能力。與 2019 年相比，上半年營業利潤率上升了 300 個基點。

Quarterly GAAP net income totaled $63 million or $1.59 per diluted share. On an adjusted basis, diluted earnings per share were $1.93, down 4% from last year, and includes $0.03 of accretion from M&C.

季度 GAAP 淨收入總計 6,300 萬美元，即每股 1.59 美元。經調整後，每股攤薄收益為 1.93 美元，較去年下降 4%，其中包括 M&C 的 0.03 美元增值。

Now I'd like to review our segment performance. In our Americas segment, sales increased 2% year-over-year on a reported and organic basis as double-digit growth in detection was offset by a mid-single-digit contraction in fire service and a low single-digit contraction in industrial PPE. Currency translation was a 1% headwind in the quarter.

現在我想回顧一下我們各部門的表現。在我們的美洲分部，銷售額按報告和有機基礎計算同比增長 2%，因為探測業務的兩位數增長被消防業務的中等個位數收縮和工業 PPE 的低個位數收縮所抵消。本季貨幣轉換帶來 1% 的不利影響。

Adjusted operating margin was 29.1%, down 220 basis points year-over-year. Margin contraction was mainly due to inflation, transactional FX headwinds in Latin America and tariffs, partially offset by price and improved productivity.

調整後營業利益率為29.1%，較去年同期下降220個基點。利潤率收縮主要是由於通貨膨脹、拉丁美洲交易外匯逆風和關稅，但被價格和生產力提高部分抵銷。

In our international segment, sales increased 4% year-over-year on a reported basis with the contribution of M&C and tailwind from FX and decreased 4% on an organic basis on a mid-single-digit decline in fire service and low single-digit declines in detection and industrial PPE. Adjusted operating margin was 13.1%, 330 basis points below last year due to lower organic volume and inflation, partially offset by price and improved productivity.

在我們的國際部門，由於 M&C 和 FX 的推動，銷售額按報告基礎同比增長 4%，但由於消防服務出現中等個位數下降，探測和工業 PPE 出現低個位數下降，銷售額按有機基礎下降 4%。調整後的營業利潤率為 13.1%，比去年低 330 個基點，原因是有機銷量下降和通貨膨脹，但價格和生產力提高部分抵消了這一影響。

Now turning to Slide 8. Free cash flow was $38 million or 60% of earnings. Quarterly operating cash flow increased more than 25% from a year ago, which provided support to fund the footprint investment that Steve highlighted.

現在翻到幻燈片 8。自由現金流為 3,800 萬美元，佔收益的 60%。季度經營現金流較上年同期成長了25%以上，為史蒂夫強調的足跡投資提供了資金支持。

As far as CapEx, we'd expect the second half to return to a more normalized range following the strategic investment that we made in the second quarter. Year-to-date, free cash flow is $89 million, up $10 million from last year.

就資本支出而言，我們預計，隨著我們在第二季進行策略性投資，下半年將恢復到更正常的範圍。年初至今，自由現金流為 8,900 萬美元，比去年增加 1,000 萬美元。

As Steve highlighted earlier, we took additional steps to deploy capital in the second quarter, in line with our ACCELERATE strategy. These growth investments demonstrate our confidence in the future as well as our dedication to a disciplined M&A approach and returning cash to shareholders. Specifically, we paid $188 million net of cash acquired for M&C, invested $29 million in CapEx, and returned more than $50 million to shareholders through stock repurchases and dividends.

正如史蒂夫之前所強調的那樣，我們在第二季度採取了額外措施來部署資本，以符合我們的加速策略。這些成長投資顯示了我們對未來的信心以及我們對嚴謹的併購方式和向股東返還現金的決心。具體來說，我們為 M&C 支付了 1.88 億美元的淨現金，投資了 2,900 萬美元的資本支出，並透過股票回購和股息向股東返還了 5,000 多萬美元。

Net debt at the end of the quarter was $532 million compared to $331 million in the first quarter. The increase is primarily due to the acquisition. We were able to utilize cash on hand and a mix of euro and USD-denominated borrowings from our newly upsized revolver to fund the transaction. We ended the quarter with net leverage of 1.1x.

本季末的淨債務為 5.32 億美元，而第一季為 3.31 億美元。成長主要源於收購。我們能夠利用手頭上的現金以及新增加的循環信貸額度中的歐元和美元借款來為這筆交易提供資金。本季末我們的淨槓桿率為 1.1 倍。

Our balance sheet continues to position us well to invest in our business, and we maintain an active M&A pipeline. Let's turn to our 2025 outlook on Slide 9. We maintain our low single-digit full year organic growth outlook and have had a solid start in 2025 with first half organic sales up 2%. While the business remains healthy, there are some dynamics to watch. We're encouraged by the continued robust performance in detection and momentum in fall protection. In contrast, fire service execution in the second half will be predicated on the timing of the NFPA approval and AFG (Assistance to Firefighters Grants) funding release.

我們的資產負債表繼續為我們投資業務提供良好的基礎，並且我們保持著活躍的併購管道。讓我們來看看第 9 張幻燈片上的 2025 年展望。我們維持全年低個位數有機成長預期，2025 年開局良好，上半年有機銷售額成長 2%。儘管業務依然健康，但仍有一些動態值得關注。我們對防墜落偵測和防墜落動力持續強勁的表現感到鼓舞。相較之下，下半年的消防服務執行將取決於 NFPA 批准和 AFG（消防員援助補助金）資金發放的時間。

Additionally, industrial head protection demand has generally been soft due to weaker market conditions. In addition to our low single-digit organic growth outlook, we'd expect M&C to add approximately 2 points to full-year revenue growth and be approximately $0.10 accretive to adjusted EPS. We retain our confidence in the resilience of our business and ability to navigate macro uncertainty.

此外，由於市場條件疲軟，工業頭部保護需求普遍疲軟。除了我們對低個位數有機成長的預期外，我們還預計 M&C 將為全年營收成長貢獻約 2 個百分點，並為調整後的每股盈餘貢獻約 0.10 美元。我們對業務的韌性和應對宏觀不確定性的能力充滿信心。

For modeling purposes, our revenue expectations for the full year are unchanged outside of the M&C contribution and more favorable FX translation impact of 0% to 1% tailwind. Though we realized a bit more sales in the first half based on first quarter order acceleration and second quarter backlog execution. We expect interest expense to be approximately $29 million to $32 million, which includes the acquisition. With that, I'll now turn the call back to Steve.

出於建模目的，除了 M&C 貢獻和更有利的 0% 至 1% 的外匯翻譯影響外，我們對全年收入的預期保持不變。不過，由於第一季訂單加速和第二季積壓訂單執行，我們上半年的銷售額略有增加。我們預計利息支出約為 2,900 萬至 3,200 萬美元，其中包括收購費用。說完這些，我現在將電話轉回給史蒂夫。

Thanks, Elyse. I'm on Slide 10. To close, I'm proud of our team's execution and thank all of our associates for their continued commitment to serving our mission and advancing our ACCELERATE strategy in the second quarter. With that, I'll turn the call back to the operator for Q&A.

謝謝，伊莉絲。我在第 10 張投影片。最後，我為我們團隊的表現感到自豪，並感謝我們所有的同事繼續致力於服務我們的使命並在第二季度推進我們的加速策略。說完這些，我將把電話轉回給接線生進行問答。

(Operator Instructions) Ross Sparenblek, William Blair.

（操作說明）Ross Sparenblek、William Blair。

Hey, good morning. This is Sam Karlov on for Ross. Thanks for taking my questions.

嘿，早安。山姆·卡洛夫代替羅斯上場。感謝您回答我的問題。

Good morning, Sam.

早上好，山姆。

I want to start with detection. Can you break out and quantify the growth between fixed gas, nonconnected portables and connected portables in the quarter? And then maybe provide some color on the adoption of the MSA+ software platform between new and existing customers?

我想從檢測開始。您能否細分並量化本季固定氣體、非連網便攜式設備和連網便攜式設備之間的成長？然後是否可以提供一些關於新舊客戶採用 MSA+ 軟體平台的情況？

Sure. I'd be glad to. Thanks for the question. So, if you look at detection overall, it was another strong quarter for us. We talked about it a little bit in the first quarter. We expected this to continue throughout the year, and it really leans into our ACCELERATE strategy. And Q2 really was led by fixed and the MSA+ connected portables activity.

當然。我很樂意。謝謝你的提問。因此，如果從整體上看檢測結果，這對我們來說又是一個強勁的季度。我們在第一季討論過這個問題。我們預計這種情況將持續全年，並且它確實符合我們的加速策略。而第二季確實由固定和 MSA+ 連接便攜式活動主導。

So, the fixed strength just continues in most regions. I would say the energy has been strong from a fixed side. Our diversity in the portfolio is really good. You think of the traditional fixed we've had. And the renewables, the clean energy continues to play well in fixed. And then our Bacharach business with the HVAC-R. So, that diversity has helped that fixed business continue to perform really well. And now we've added to it, as you know, with M&C. So, we're really excited and optimistic about fixed continuing to play well going forward.

因此，在大多數地區，固定強度仍會持續存在。我想說，從固定的角度來看，能量一直都很強大。我們的投資組合的多樣性確實很好。您想想我們曾經擁有的傳統固定觀念。再生能源和清潔能源在固定能源領域繼續發揮良好作用。然後是我們的 Bacharach 業務和 HVAC-R。因此，這種多樣性有助於固定業務繼續表現良好。如您所知，現在我們又添加了 M&C。因此，我們對未來繼續保持良好表現感到非常興奮和樂觀。

The MSA+ connected story, gosh, we really appreciate what the customers have come back with on this and how they've embraced this technology. We had great growth here, another strong quarter. And when we parse out total portables to your question, most of the growth in the second quarter, absolute growth on a dollar category, was on MSA+. So, it really played well and the customer base continues to lean in on this. So, we expect that to continue in the second half, certainly. Portables, the traditional portables was up, but very mildly. So, most of the growth we saw in that portable space was MSA+ to your question.

MSA+ 連接的故事，天哪，我們真的很感謝客戶對此的反饋以及他們如何接受這項技術。我們在這裡取得了巨大的成長，又一個強勁的季度。當我們針對您的問題分析便攜式設備總量時，我們發現第二季的大部分成長、以美元計算的絕對成長都來自 MSA+。所以，它確實表現得很好，客戶群繼續依賴它。因此，我們預計這種情況肯定會在下半年繼續下去。便攜式設備，傳統的便攜式設備有所上漲，但漲幅很小。因此，對於您的問題，我們看到的便攜式空間中的大部分成長都是 MSA+。

Got it. That's super helpful. And then keeping on the topic of portable gas detection, is there anything you can share on the timing of the launch of ioTM 6? And any color on what this could mean for the portable gas detection business?

知道了。這非常有幫助。然後繼續討論便攜式氣體檢測的話題，您能否分享有關 ioTM 6 發佈時間的資訊？這對於便攜式氣體檢測業務意味著什麼？

Well, we've got a number of R&D activities ongoing and some upcoming launches. And certainly, the MSA+, the connected work is one that we hope to talk to in the not-too-distant future. I would add that even as we've had this ioTM 4, we've had a number of iterations even inside that technology. So, while you don't hear of a different ioTM 4 recently, that technology has refined itself over the last 12 months significantly. So, it's a different product today than it was 12 months ago. But going forward, I would say you'll see some announcements probably in the next few months.

嗯，我們正在進行一些研發活動，還有一些即將推出。當然，我們希望在不久的將來能夠談論 MSA+ 的相關工作。我想補充一點，即使我們已經有了這個 ioTM 4，我們在該技術內部也進行了多次迭代。因此，雖然您最近沒有聽說過不同的 ioTM 4，但該技術在過去 12 個月中已經得到了顯著的改進。因此，今天的產品與 12 個月前的產品有所不同。但展望未來，我想您可能會在接下來的幾個月內看到一些公告。

Saree Boroditsky, Jefferies.

薩裡‧博羅迪茨基 (Saree Boroditsky)，傑弗里斯 (Jefferies)。

Good morning. This is James on for Saree. Thanks for taking my questions. I wanted to start with the pricing actions that you guys talked about. So, how have customers responded to those increases? And what was the magnitude of the pricing actions? And could you kind of elaborate on how the price/cost dynamic kind of played out and your expectation for second half?

早安.這是詹姆斯為紗麗 (Saree) 拍攝的。感謝您回答我的問題。我想從你們談論的定價行動開始。那麼，顧客對於這些漲價有何反應呢？定價行動的幅度有多大？您能否詳細說明價格/成本動態如何發展以及您對下半年的期望？

Yes. I'll talk about the customer a little bit, and then I'll ask Elyse to talk about the numbers and quantify this a bit, James. But one of the things I said in the first quarter is when we think about this, we're really trying to look at how we minimize the impact for our customers and for MSA. So, this is a combination of efficiencies as well as price.

是的。我會稍微談論一下客戶，然後我會請 Elyse 談論一下數字並稍微量化一下，James。但我在第一季說過，當我們考慮這個問題時，我們確實在努力研究如何最大限度地減少對我們的客戶和 MSA 的影響。所以，這是效率和價格的結合。

So, we did take action, though, in the first half for some targeted price increases, which we can parse out here in a bit. But we're also going to take further action in the second half. We've got a little more clarity on the tariffs. They are impacting certainly the cost inputs we have. And so we need to go back and get more pricing in place to ensure that we're well prepared for the future.

因此，我們確實在上半年採取了一些有針對性的價格上漲行動，稍後我們可以對此進行分析。但我們也將在下半年採取進一步行動。我們對關稅有了更清楚的了解。它們肯定會影響我們的成本投入。因此，我們需要回過頭來制定更多的定價政策，以確保我們為未來做好充分的準備。

And as I said before, I would just add, all of this will probably shake out where we will be in a good position sometime in early 2026 from a cost price balance for tariffs, but it's got to shake out through the rest of the year.

正如我之前所說，我只想補充一點，所有這一切可能都會在 2026 年初的某個時候從關稅的成本價格平衡中產生積極影響，使我們處於有利地位，但它必須在今年剩餘時間內得到解決。

The customer, how they've accepted it, remember, a few years ago, we had a lot of inflation. So, the customers absorbed that, and then this certainly is playing into that. My concern isn't that the customer accepts it or not. It's really what it does to demand over the longer period of time. And right now, our expectations are we're going to raise price effectively to manage the cost inputs as we would expect our competitors to do the same. But maybe, Elyse, you can parse out the numbers.

客戶如何接受它，記住，幾年前，我們經歷了嚴重的通貨膨脹。所以，顧客吸收了這一點，這肯定會發揮作用。我關心的不是客戶是否接受。這其實就是長期需求的結果。現在，我們的期望是有效提高價格以管理成本投入，就像我們期望競爭對手也這樣做一樣。但是，伊莉絲，也許你可以分析出這些數字。

Thanks, Steve. Good morning, James, gross margins came in right about where we expected in the second quarter. Price added a couple of points to revenue growth in the second quarter. So, we saw the impacts of inflation and transactional FX headwinds continue from the first quarter, and we were able to partially offset with price and improved productivity.

謝謝，史蒂夫。早安，詹姆斯，第二季的毛利率與我們預期的差不多。普萊斯為第二季的營收成長貢獻了幾個百分點。因此，我們看到通貨膨脹和交易外匯逆風的影響從第一季開始持續，並且我們能夠透過價格和提高生產力來部分抵消。

We also saw some early impacts from tariffs and the impact of lower organic volume. So, as we move into the second half, we'd expect that tariff impact to ramp up as it works through the backlog, and that's why we took the mitigating pricing actions that we did in the second quarter. We've talked before about a gross margin range for our business currently in the 47% to 48% range, and we are still on track for that this year. And as Steve mentioned, we're looking at additional actions, both on the pricing and productivity front for the second half that we think will put us in a good position early 2026.

我們也看到了關稅和有機產量下降的一些早期影響。因此，隨著我們進入下半年，我們預計關稅影響將會隨著積壓訂單的解決而加劇，這就是我們在第二季採取緩解定價措施的原因。我們之前談過，我們業務的毛利率範圍目前在 47% 至 48% 之間，今年我們仍將朝著這個目標前進。正如史蒂夫所提到的，我們正在考慮在下半年的定價和生產力方面採取更多行動，我們認為這將使我們在 2026 年初處於有利地位。

Got it. Great. And I guess now I kind of want to touch on the fire services. So, I just want to get a better understanding like what percentage of your current pipeline consists of customers committed to purchasing before the new standard versus those waiting? Because I think you guys mentioned that G1TM SCBA XR addition let customers buy before the standard. So, I just want to understand that dynamic better. Thank you.

知道了。偉大的。我想現在我想談談消防服務。因此，我只是想更了解一下，您目前的管道中有多少比例是在新標準實施之前承諾購買的客戶，有多少比例是在等待購買的客戶？因為我認為你們提到過 G1TM SCBA XR 附加功能讓客戶在標準之前購買。所以，我只是想更好地理解這種動態。謝謝。

Yes. Thanks for the question again. We don't disclose actual percentages of what the customers say for a couple of reasons, but one of the most critical is competitive reasons and how competitors respond to that in the market.

是的。再次感謝您的提問。由於多種原因，我們不會透露客戶評價的實際百分比，但其中最關鍵的一個原因是競爭原因以及競爭對手在市場上對此的反應。

I would say that we do have line of sight to what the customers have told us. Now, they have the prerogative to change their mind and select one or the other. But that's the reason we went and did the redesign on the XR prior to the new standard coming out and make sure we're prepared for that. So, we have that available today. And we do expect many fire departments to take advantage of it.

我想說，我們確實了解客戶告訴我們的事情。現在，他們有權改變主意並選擇其中一個。但這就是我們在新標準出台之前對 XR 進行重新設計並確保我們為此做好準備的原因。所以，我們今天就可以使用它。我們確實希望許多消防部門能夠利用它。

And we also, for those that do wait, we have the next-gen XR ready once it's approved. So, I think in both cases, we're well prepared based on what the dynamics play out for the fire departments and how they want to look at this. I would say either way, we feel like we're well positioned here in the fire service. Those that have followed us for a while, you know that quarter-to-quarter can be a little lumpy, and that's something that just comes with this market.

對於那些確實在等待的人，一旦獲得批准，我們就會準備好下一代 XR。因此，我認為在這兩種情況下，我們都根據消防部門的動態以及他們如何看待此事做好了充分的準備。我想說，無論怎樣，我們都覺得自己在消防服務上處於有利地位。那些關注我們有一段時間的人，你們知道季度與季度之間的變化可能會有點不平穩，這是這個市場固有的現象。

But pipeline is solid. We expect our strategy to continue to pay off. And by the way, the Orange County order, I think, is a great example of that as that was a follow-on to some really nice orders we had with LA County and LA City. So, the strategy that we have in place, we feel good about. I think you'll see a little variability perhaps in the second half, depending on what some of the timing categories are with NFPA and AFG, but pipeline is good. So, once that funding is available, once the standard clarity is there, we should be in great shape.

但管道是堅固的。我們期望我們的策略能夠繼續取得成效。順便說一句，我認為奧蘭治縣的命令就是一個很好的例子，因為這是我們與洛杉磯縣和洛杉磯市達成的一些非常好的命令的後續。因此，我們對現有的策略感到滿意。我認為您可能會在下半年看到一些變化，這取決於 NFPA 和 AFG 的一些時間類別，但頻道是好的。因此，一旦資金到位，一旦標準明確，我們就應該處於良好的狀態。

Shubham Srivastava, RW Baird.

舒巴姆·斯里瓦斯塔瓦、RW 貝爾德。

Hey, good morning, guys. Thanks for taking my question. Just curious as to how you're thinking about timing and disbursement of AFG funding. You mentioned it before with the fire service. Just looking, it doesn't look like those awards have started rolling out yet. So, just kind of wondering, any ideas to how the funding environment has changed?

嘿，大家早安。感謝您回答我的問題。只是好奇您如何考慮 AFG 資金的時間安排和支付。您之前提到過消防服務。只是看起來，這些獎項似乎還沒開始頒發。所以，我只是有點好奇，對於融資環境發生了什麼樣的變化有什麼看法？

Yeah. Thanks for the question. The funding is approved. So, that's the important first point I would add to the color here. We expect the AFG funding releases to begin here in August. They haven't yet, but the expectation we have is that they'll come through sometime in August. They have to have those done by the end of September. So, typically, the sooner they can get started on that, get some of those tranches out to the customer base, I think that helps. But the funding is approved, fire departments are just waiting for its release.

是的。謝謝你的提問。資金已獲批准。所以，這是我在這裡要添加的顏色的重要的第一點。我們預計 AFG 資金將於 8 月開始發放。他們還沒有，但我們預計他們會在八月的某個時候完成。他們必須在九月底之前完成這些工作。因此，通常情況下，他們越早開始這項工作，將其中一些部分分發給客戶群，我認為這會有所幫助。但資金已經獲得批准，消防部門只是在等待資金的發放。

Got it. Got it. And then one more. Just how do you guys feel about fourth quarter seasonality? Is it being influenced by lack of SCBA shipments or detection backlog conversion?

知道了。知道了。然後再來一個。你們對於第四季的季節性有何看法？是否受到 SCBA 出貨量不足或偵測積壓轉換的影響？

Typically, our fourth quarter is a strong quarter for us. I don't think that's going to be any different in 2025. So, we would expect that to be the case. It typically is a strong quarter in the fire service. It's typically strong in detection. And I would say that you could expect that for 2025 as well.

通常來說，第四季度對我們來說是一個強勁的季度。我認為 2025 年的情況也不會有什麼不同。因此，我們期望情況確實如此。這通常是消防部門的一個強勁季度。它的檢測能力通常很強。我想說，2025 年也同樣可以達成這個目標。

(Operator Instructions) Brian Brophy, Stifel.

（操作員指示） Brian Brophy，Stifel。

Yeah. Thanks, good morning, everybody. Thanks for taking my question. I think in the opening comments, you mentioned book-to-bill was slightly below 1 in the quarter. Can you touch on some of the areas where you're seeing relative strength versus some softness in the order book? Thanks.

是的。謝謝，大家早安。感謝您回答我的問題。我認為在開場白中您提到本季的訂單出貨比略低於 1。您能否談談訂單中哪些領域表現相對強勁，哪些領域表現相對疲軟？謝謝。

Yeah. Thanks for the question, Brian. I would look at from an order pace, industrial and our detection business orders were up in the quarter. Fire service was down, and that really matched our expectations. And it kind of matches the market. You heard in our prepared remarks some commentary around some of the different product categories.

是的。謝謝你的提問，布萊恩。從訂單速度來看，本季工業和檢測業務訂單均有所增加。消防服務中斷了，這確實符合我們的預期。這與市場很匹配。您在我們準備好的評論中聽到了一些不同產品類別的評論。

Industrial markets right now are challenged. There are some that are bright spots. Utilities is a good example. I think some of the early North American infrastructure investment is good. And there's others like manufacturing and to some degree, non-resi construction that are softer.

當前的工業市場面臨挑戰。其中有一些是亮點。公用事業就是一個很好的例子。我認為北美早期的一些基礎設施投資是好的。還有一些其他行業，例如製造業，以及某種程度上的非住宅建築業，它們的要求比較低。

So, it's choppy, but we see our diversity in the portfolio really playing out here and helping us do really well. So, the product categories, markets and geographies help us perform throughout the cycle. And that's playing out in 2025 for sure.

因此，情況並不穩定，但我們看到投資組合的多樣性確實發揮了作用，並幫助我們取得了很好的結果。因此，產品類別、市場和地理位置有助於我們在整個週期中發揮作用。而這肯定會在 2025 年實現。

I would also say that we talked about the ACCELERATE strategy, the two key categories that we expected to grow more significantly this year, especially with the comps in fire service are detection and fall protection, and that's playing out exactly as we had planned and hoped.

我還想說，我們討論了加速策略，我們預計今年將有更顯著增長的兩個關鍵類別，特別是消防服務中的探測和防墜落保護，而這一切都按照我們的計劃和希望進行。

So, a big part of that is share change as well. So, we're gaining some nice share in detection. We're gaining nice share in fall protection. And I think that helps us out in this dynamic we're playing in right now.

因此，其中很大一部分也是份額變化。因此，我們在檢測方面獲得了一些不錯的份額。我們在防墜落領域獲得了很大的份額。我認為這對我們目前所處的動態環境有幫助。

Yes, that's helpful. I guess just following up on that. You just mentioned relative strength in fall protection. You mentioned that in some of your comments as well. Just any more color on what's driving this? Is this some of the new product introductions, and how you're thinking about growth there in the back half?

是的，這很有幫助。我想這只是在跟進此事。您剛才提到了防墜落的相對強度。您在一些評論中也提到了這一點。您能進一步解釋一下造成這現象的原因嗎？這是一些新產品的介紹嗎？您如何看待下半年的成長？

Yeah, it is. I think when we think fall protection, we went through a period where we had some nice growth, specific to North America, with some strategy we had a few years ago. We stumbled, frankly, coming out of COVID with some supply chain issues. And then we've done a lot of innovation in this space, which I referenced in the prepared remarks.

是的。我認為，當我們考慮防墜落時，我們經歷了一個時期，特別是在北美，我們實現了良好的成長，並且採用了幾年前的一些策略。坦白說，我們在擺脫新冠疫情的過程中遇到了一些供應鏈問題。然後我們在這個領域做了很多創新，我在準備好的發言中提到過。

Now we've got a really nice inventory position with our channel, with the customers. We're leaning into markets that the customers really have a high level of interest for our solutions. And this is a segment we think we can really compete in very effectively. We're resourcing it appropriately. And it is a combination of what we've done commercially as well as the innovation we put in place. And we do expect this to continue in the second half and beyond.

現在，我們透過管道和客戶擁有了非常好的庫存狀況。我們傾向於進入客戶對我們的解決方案真正有高度興趣的市場。我們認為，我們能夠在這一領域真正有效地競爭。我們正在為其提供適當的資源。它是我們在商業上所做的工作和我們所實施的創新的結合。我們確實預計這種情況將在下半年及以後持續下去。

Jeff Van Sinderen, B. Riley Securities.

Jeff Van Sinderen，B. Riley 證券公司。

Good morning, everyone. Just wanted to circle back to fire for a minute if we could. What are the overall elements of timing that you're watching around the new standard? Just wondering, are there milestones that you say, gee, okay, this has happened now and now we think it's going to be three months from now that it really ramps, or just wondering about that, how you think about that?

大家早安。如果可以的話，我們只想繞回火場一會兒。圍繞著新標準，您關注的整體時間要素是什麼？只是想知道，您說的里程碑是否是這樣的，哎呀，好吧，這件事現在已經發生了，現在我們認為從現在起三個月後它才會真正開始發展，或者只是想知道，您是怎麼想的？

Thanks for the question. The NFPA standard change, it's a government approval process. So, there's a couple of key milestones we look at. First of all, when is testing completed, right? And once testing is completed, that certainly is a milestone that we can validate; okay, they've got the next key stage that you will walk through the process.

謝謝你的提問。NFPA 標準的變更是一個政府批准流程。因此，我們要專注於幾個關鍵的里程碑。首先，測試什麼時候完成，對嗎？一旦測試完成，這肯定是我們可以驗證的里程碑；好的，他們已經進入了下一個關鍵階段，您將經歷這個過程。

But to be fair, we know when our testing is completed. We don't necessarily get complete visibility on some of the other categories for competitive situations or any of the discussions they may have. There are some discussions that would be privy to them and NFPA.

但公平地說，我們知道測試何時完成。我們不一定能完全了解其他類別的競爭情況或他們可能進行的任何討論。有一些討論是他們和 NFPA 必須了解的。

But by and large, when you see the testing completed and you recognize that you've got what you need, this body, the NFPA will go through a process where they'll need to validate the approvals, then they'll have to get all the documentation done. And that takes some time with the government.

但總的來說，當您看到測試完成並且您意識到您已經得到了您需要的東西時，這個機構，NFPA 將經歷一個他們需要驗證批准的過程，然後他們必須完成所有的文件。這需要政府花費一些時間。

So, that's why we don't have specific line of sight. But based on historical context, it tells us that we would expect that approval. It could be any time between now and early 2026, which we kind of talked about, I think I did a call in May as well. And we continue to believe that. I don't have much better clarity than that. We tried to put a finer point before, and we've missed it because it is the NFPA and they've got processes they have to work through, quite frankly.

所以，這就是我們沒有特定視線的原因。但根據歷史背景，我們預期會獲得批准。可能是從現在到 2026 年初之間的任何時間，我們討論過這個問題，我想我在五月也打過電話了。我們仍然堅信這一點。我沒有比這更清楚的認知。我們之前曾嘗試提出更詳細的觀點，但我們錯過了，因為它是 NFPA，坦白說，他們有必須遵循的流程。

Okay. And just as a follow-up to that, there's nothing that makes you think that with DOGE (Department of Government Efficiency) or anything else it would be different this time versus other times as far as the timing?

好的。並且作為後續問題，就時間而言，沒有什麼讓您認為 DOGE（政府效率部）或其他任何事情這次與其他時候會有所不同嗎？

Not now. I think they've been put back to work and they're fully engaged.

現在不要。我認為他們已經重返工作崗位並全心投入工作。

Okay. Good to know. And then possible maybe to touch a little bit more, delve a little bit more into the margin benefit from MSA+ since that seems to be working really well for you?

好的。很高興知道。然後，是否可能進一步深入研究 MSA+ 帶來的利潤收益，因為這似乎對您來說非常有效？

Sure. Thanks for the question, Jeff. We did see a positive impact from mix in the quarter from MSA+ and the other detection growth. It wasn't overly meaningful, but it certainly does help a bit.

當然。謝謝你的提問，傑夫。我們確實看到了本季度 MSA+ 和其他檢測成長帶來的正面影響。雖然意義不大，但確實有一點幫助。

Okay. And then anything else, I know these are tough questions, but anything else to add on the quarterly progression we should expect for gross margin given tariffs and some of the pricing actions you're taking? And then anything around SG&A for second half? I guess what I'm trying to get at is, is it feasible here based on everything you're seeing for EBITDA to inflect year-over-year in Q3?

好的。然後還有其他什麼嗎，我知道這些都是很難的問題，但考慮到關稅和您採取的一些定價行動，我們還能補充一下季度毛利率的成長嗎？那麼下半年的銷售、一般及行政費用 (SG&A) 情況呢？我想我想了解的是，根據您所看到的一切，EBITDA 在第三季同比發生變化是否可行？

Sure, Jeff. So, thinking about the quarterly gross margin first. We do expect the tariff impact to be more pronounced in the second half. And that's why we took the pricing actions that we did in the second quarter. So, we'll see those both start to come through in the second half.

當然，傑夫。因此，首先考慮季度毛利率。我們確實預期關稅的影響在下半年會更加明顯。這就是我們在第二季採取定價行動的原因。因此，我們將在下半場看到這兩項表現開始顯現。

You may see stronger performance as the volume continues to grow. We typically see that when volume is higher, the margin is better leveraged. On SG&A, we don't expect anything out of the ordinary. What you saw in the second quarter on an organic basis is probably a good run rate to think about for the second half. And then, of course, you'll have M&C come in on top of that. And then you expect something like $5 million to $6 million per quarter. So, $107 million to $109 million per quarter is probably a good range to think about.

隨著交易量的不斷增長，您可能會看到更強勁的表現。我們通常看到，當交易量較高時，保證金的槓桿作用會更好。對於銷售、一般及行政費用 (SG&A)，我們預計不會有任何異常情況。您在第二季度看到的自然成長可能是下半年值得考慮的良好運行率。然後，當然，你還會得到 M&C 的幫助。然後你預計每季的收入約為 500 萬至 600 萬美元。因此，每季 1.07 億美元到 1.09 億美元可能是值得考慮的範圍。

$5 million to $6 million for M&C. And then, I don't know if you've talked about this or not, but what is sort of the organic growth rate of M&C?

M&C 的費用為 500 萬至 600 萬美元。然後，我不知道您是否談論過這個問題，但 M&C 的有機成長率是多少？

M&C is a mid-single-digit type of grower.

M&C 屬於中等個位數成長型企業。

Okay, fair enough. Thanks, I'll take the rest offline.

好吧，夠公平。謝謝，我會將其餘部分離線。

Thanks, Jeff.

謝謝，傑夫。

Mike Shlisky, DA Davidson.

麥克·施利斯基，DA 戴維森。

Yeah, hello, thank you. I hopped on a little bit late. So, if I'm asking anything that said, feel free to have me go to the transcripts. I guess, first off, M&C TechGroup, I see it's going to be accretive to EPS. I just wanted to make sure the business as it stands today, is it also accretive to margins?

是的，你好，謝謝你。我稍微晚了一點。因此，如果我詢問任何內容，請隨時讓我查看記錄。我想，首先，M&C TechGroup，我認為它將會增加 EPS。我只是想確保目前的業務狀況是否也能增加利潤？

Sure, Mike. Thanks for the question. The margins of M&C are relatively similar to overall MSA. So, it didn't have an impact on margins in the second quarter, and that's what we'd expect for the remainder of the year, really relatively neutral on margins, but we do expect about $0.10 of accretion for the year in EPS.

當然，麥克。謝謝你的提問。M&C 的利潤率與整體 MSA 相對相似。因此，它對第二季度的利潤率沒有產生影響，這也是我們對今年剩餘時間的預期，對利潤率的影響實際上相對中性，但我們確實預計今年每股收益將增加約 0.10 美元。

Great. And then just following up there, and again, I apologize if you already said this, but the geographic mix from M&C, do you have that handy? Are they mostly Europe? And is there any opportunity to globalize their sales mix and get some synergies that way over the next couple of years?

偉大的。然後繼續跟進，如果您已經說過這​​一點，我再次向您道歉，但是 M&C 的地理分佈情況，您方便知道嗎？他們大多是歐洲人嗎？未來幾年是否有機會實現銷售組合全球化並以此獲得一些綜效？

It is Europe. I mean they're a German-based company with about a third of their sales there. And what we anticipate is over time, we're going to leverage our scale and the channels we have, and the team is very excited by doing that. We think this is a great business in providing premium solutions. So, we absolutely expect this to scale over time in some of our other key markets.

它是歐洲。我的意思是他們是一家德國公司，銷售額約有三分之一來自德國。我們預計，隨著時間的推移，我們將利用我們的規模和現有管道，團隊對此感到非常興奮。我們認為這是提供優質解決方案的偉大事業。因此，我們絕對希望這能夠隨著時間的推移在我們的其他一些主要市場中擴大。

Okay, great. I'll leave it there. Thank you so much.

好的，太好了。我就把它留在那裡。太感謝了。

Thanks, Mike.

謝謝，麥克。

Thanks, Mike.

謝謝，麥克。

This concludes our question-and-answer session. I would like to turn the conference back over to Larry De Maria for any closing remarks.

我們的問答環節到此結束。我想將會議交還給拉里·德瑪利亞 (Larry De Maria) 做最後發言。

Thank you. We appreciate you joining the call this morning and for your continued interest in MSA Safety. If you missed a portion of today's call, an audio replay will be made available later today on our investor relations website and will be available for the next 90 days. We look forward to updating you on our continued progress again next quarter.

謝謝。感謝您今天上午參加電話會議並持續關注 MSA Safety。如果您錯過了今天電話會議的部分內容，我們將在今天晚些時候在我們的投資者關係網站上提供音訊重播，並將在接下來的 90 天內提供。我們期待下個季度再次向您通報我們的持續進展。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。