Materion Corp (MTRN) 2025 Q2 法說會逐字稿

Greetings. Welcome to the Materion Second quarter 2025 earnings conference call. (Operator Instruction) I will now turn the conference over to your host, Kyle Kelleher, Director of Investor Relations and Corporate FP&A. You may begin.

問候。歡迎參加 Materion 2025 年第二季財報電話會議。（操作員指示）現在，我將會議交給主持人、投資者關係和企業 FP&A 總監 Kyle Kelleher。你可以開始了。

Good morning and thank you for joining us on our Second Quarter 2025 earnings conference call. This is Kyle Kelleher, Director of Investor Relations and Corporate FP&A. Before we begin our remarks this morning, I would like to point out that we have posted materials on the company's website that we will reference as part of today's review of the quarterly results. You can also access the materials from the download feature on the earnings call webcast plan. With me today is Jugal Vijayvargiya, President and Chief Executive Officer, and Shelly Chadwick, Vice President and Chief Financial Officer.

早安，感謝您參加我們的 2025 年第二季財報電話會議。我是投資者關係和企業 FP&A 總監 Kyle Kelleher。在我們今天早上開始發言之前，我想指出，我們已經在公司網站上發布了一些資料，我們將在今天的季度業績審查中參考這些資料。您也可以透過收益電話會議網路廣播計畫的下載功能存取這些資料。今天與我一起的有總裁兼執行長 Jugal Vijayvargiya 和副總裁兼財務長 Shelly Chadwick。

Our format for today's conference call is as follows. Jugal will provide opening comments on the quarter. Following Jugal, Shelly will review the detailed financial results for the border in addition to discussing expectations for the remainder of 2025. We will then open up the call for questions.

我們今天的電話會議形式如下。Jugal 將對本季發表開場評論。繼 Jugal 之後，Shelly 將回顧邊境的詳細財務結果，並討論 2025 年剩餘時間的預期。然後我們將開始提問。

Let me remind investors that any forward-looking statements made in the presentation, including those in the Outlook section and during the question-and-answer portion, are based on current expectations. The company's actual performance may materially differ from that contemplated by the forward-looking statements as a result of a variety of factors. Those factors are listed in the earnings call press release issued this morning.

我要提醒投資者，簡報中所做的任何前瞻性陳述，包括展望部分和問答部分的陳述，都是基於當前的預期。由於多種因素，公司的實際業績可能與前瞻性陳述所預期的業績有重大差異。這些因素已在今天上午發布的收益電話會議新聞稿中列出。

Additionally, comments regarding earnings before interest, taxes, depreciation, depletion, and amortization, net income, and earnings per share reflect the adjusted GAAP numbers shown on attachments 4 to 9 in this morning's press release. The adjustments are made in the prior year period for comparative purposes and remove special items, non-cash charges, and certain discreet income tax adjustments.

此外，有關息稅折舊攤銷前利潤、淨收入和每股收益的評論反映了今天上午新聞稿中附件 4 至 9 所示的調整後 GAAP 數字。為了比較目的，對上一年期間進行了調整，並刪除了特殊項目、非現金費用和某些離散所得稅調整。

And now I'll turn over the call to Jugal for its comments.

現在我將把電話轉給 Jugal 徵求意見。

Thank you, Kyle, and welcome everyone. It's a pleasure to be with you today to discuss our second quarter results and provide an update on our outlook for the remainder of 2025. Our business performed very well in the quarter, delivering record second quarter margins and strong pre-cash flow.

謝謝你，凱爾，歡迎大家。我很高興今天能與大家討論我們的第二季業績，並更新我們對 2025 年剩餘時間的展望。我們的業務在本季表現非常出色，實現了創紀錄的第二季利潤率和強勁的預付現金流。

Although sales were down 2% organically, we experienced solid growth in aerospace and defense and energy, as well as in semiconductor outside of China. EBITDA was strong at $56 million and we continue to deliver margins above 20% despite some pockets of softness still moving through our top line.

儘管銷售額有機下降了 2%，但我們在航空航太、國防和能源以及中國以外的半導體領域實現了穩健成長。EBITDA 表現強勁，達到 5,600 萬美元，儘管我們的營收仍存在一些疲軟跡象，但我們的利潤率仍保持在 20% 以上。

I am particularly proud of our electronic materials team as they delivered an all-time high EBITDA margin of 23.4%. Demonstrating the power of the work that has been done to optimize the cost structure and improve operational efficiencies in that segment.

我對我們的電子材料團隊感到特別自豪，因為他們實現了 23.4% 的歷史最高 EBITDA 利潤率。展示為優化成本結構和提高該部門營運效率所做的工作的成效。

We have reached a new level of performance for the year. And I expect the business to deliver very good margin expansion for the full year. Precision optics also showed a significant improvement in the Second quarter as the transformation continues.

我們今年的業績達到了一個新的水平。我預計該業務全年的利潤率將實現非常好的成長。隨著轉型的持續，精密光學在第二季也取得了顯著的改善。

Sales improved 14% sequentially and EBITDA increased more than $2 million marking the second consecutive quarter of improvement. Beyond the cost structure improvements that have been implemented, the business is making excellent progress on new business initiatives that should begin contributing by the end of the year.

銷售額季增 14%，EBITDA 成長超過 200 萬美元，連續第二季成長。除了已實施的成本結構改進之外，該公司在新的業務計劃方面也取得了巨大進展，這些計劃將於今年年底開始產生貢獻。

As we have discussed over the last few quarters, cash flow generation remains a key focus for us, as evidenced by our Q2 results. We generated $36 million in free cash flow, the strongest we've seen in any second quarter. Our disciplined approach to managing working capital and pacing capital investments is driving the performance.

正如我們在過去幾個季度所討論的那樣，現金流產生仍然是我們關注的重點，這從我們的第二季業績中可以看出。我們產生了 3600 萬美元的自由現金流，這是我們第二季度所見的最強勁的自由現金流。我們管理營運資本和控制資本投資節奏的嚴謹方法正在推動績效的成長。

Earlier this month, we acquired the manufacturing assets for tantalum solutions from Konasol, a Korean manufacturer serving the semiconductor and adjacent markets. This acquisition expands our semiconductor footprint in Asia, allowing us to better serve the large tier one chip manufacturers in that region and insource more of the target manufacturing value chain.

本月初，我們從服務半導體和鄰近市場的韓國製造商 Konasol 收購了鉭溶液製造資產。此次收購擴大了我們在亞洲的半導體業務，使我們能夠更好地服務該地區的大型一級晶片製造商，並將更多的目標製造價值鏈納入其中。

This move expands our position as a leading global supplier of deposition materials. The integration is progressing well, and we have begun producing samples for customer qualifications. While the results for the quarter were very strong, what is perhaps more encouraging are many positive signs we're seeing in order rates, signally promising momentum as we move through the back half of 2025 and into 2026.

此舉鞏固了我們作為全球領先沉積材料供應商的地位。整合工作進展順利，我們已經開始生產樣品以供客戶驗證。雖然本季的業績非常強勁，但更令人鼓舞的是，我們在訂單率方面看到了許多積極跡象，預示著我們在 2025 年下半年和 2026 年將迎來良好的發展勢頭。

As the broader semiconductor market is showing signs of improvement, with wafer starts up and customer inventories coming in line, our order rates are improving, especially within data storage, power, and communication devices. Sequentially, our order rates improved double digit, excluding China, where the customers are still showing tariff related headsets.

隨著更廣泛的半導體市場顯示出改善的跡象，隨著晶圓的啟動和客戶庫存的增加，我們的訂單率正在提高，特別是在資料儲存、電源和通訊設備方面。連續，我們的訂單率提高了兩位數，但中國除外，因為那裡的客戶仍然展示與關稅相關的耳機。

Defense is an area that is getting a significant amount of attention globally, and this is leading to many new opportunities for Materion. Our pipeline of new business opportunities is rapidly accelerating, with over $100 million of requests for quotation received in the second quarter alone.

國防是一個在全球範圍內受到廣泛關注的領域，這為 Materion 帶來了許多新的機會。我們的新業務機會管道正在迅速增加，僅在第二季度就收到了超過 1 億美元的報價請求。

In the first half of 2025, we saw record bookings of $75 million and our initiative to grow our defense business outside the U.S. has resulted in a 60% year on year sales increase. I expect the pace of defense-related activity will continue picking up for the back half of the year.

2025 年上半年，我們的預訂金額達到了創紀錄的 7,500 萬美元，我們在美國以外拓展國防業務的舉措使銷售額同比增長了 60%。我預計今年下半年國防相關活動的步伐將持續加快。

In space, we continue to win new applications and expand our reach. Our order backlog has more than doubled in the last year, and we recently won a new application for ground station equipment for a leading US based customer.

在太空領域，我們不斷贏得新的應用並擴大我們的影響力。去年，我們的訂單積壓增加了一倍多，最近我們贏得了美國領先客戶的地面站設備新應用。

Leveraging our larger space propulsion systems when in the U.S., we also secured an order for the same application for the customer in Europe. I also want to highlight our business activity in the energy and market. Our sales are up 28% year on year for the first half of 2025, as we are growing new and existing business to meet the world's increasing energy demands.

利用我們在美國更大的空間推進系統，我們也為歐洲客戶獲得了相同應用的訂單。我還想強調我們在能源和市場領域的業務活動。2025 年上半年我們的銷售額年增 28%，因為我們正在發展新業務和現有業務以滿足世界日益增長的能源需求。

We have a particular focus on initiatives in new energy where our first half sales have exceeded the full year sales of 2024. As our business is well aligned to this global mega trend, we expect this area to be a growth driver for the company for the foreseeable future.

我們特別關注新能源領域的舉措，我們的上半年銷售額已經超過了 2024 年全年銷售額。由於我們的業務與這一全球大趨勢高度契合，我們預計這一領域將成為公司在可預見的未來的成長動力。

When we released our first quarter earnings in late April, there was considerable uncertainty surrounding the tariff environment which we noted as a qualifier to our guidance. While much remains to be finalized, we are more confident of forming our initial full year earnings guide, despite the risk that remains. Thanks to our strong year to day performance, new business wins, and the increased order activity we are seeing.

當我們在四月底發布第一季收益時，關稅環境存在相當大的不確定性，我們將其視為我們指引的一個限定條件。儘管仍有許多事情尚未最終確定，但儘管風險仍然存在，我們仍然對制定初步的全年獲利指南更有信心。這得益於我們今年強勁的業績、新業務的成功以及訂單活動的增加。

I would like to thank our global team for their unwavering commitment to driving our business forward while navigating the current environment.

我要感謝我們的全球團隊在當前環境下堅定不移地致力於推動我們的業務向前發展。

Now, let me turn the call over to Shelly to cover more details on the financials.

現在，讓我將電話轉給 Shelly，以介紹更多有關財務的詳細資訊。

Thanks, Jugal, and good morning everyone. During my comments, I will reference the slides posted on our website this morning starting on slide 10.

謝謝，Jugal，大家早安。在我的評論中，我將參考今天早上我們網站上發布的幻燈片，從第 10 張開始。

In the second quarter, value added sales, which exclude the impact of pass-through precious metal costs, were $269 million down 2% organically from prior year and up 4% sequentially. This year over year slight decrease was largely driven by lower precision clad strip shipments and semiconductor demand from China.

第二季度，不包括轉嫁貴金屬成本影響的增值銷售額為 2.69 億美元，較上年同期有機下降 2%，較上一季成長 4%。今年的年比略有下降，主要是由於精密複合帶出貨量下降以及中國對半導體的需求下降。

Excluding the impact of these items, value added sales would have been up 2% versus the prior year. Strength and aerospace and defense, energy, and semiconductor sales outside of China are driving the year over year sales increase. When looking at earnings per share, we delivered quarterly adjusted earnings of $1.37 down 4% from prior year, but up 21% sequentially.

排除這些項目的影響，增值銷售額將比上年增長 2%。中國以外的強勁成長以及航空航太、國防、能源和半導體的銷售推動了銷售額的年增長。從每股收益來看，我們公佈的季度調整後收益為 1.37 美元，較上年下降 4%，但比上一季增長 21%。

Moving to slide 11, adjusted EBITDA was $55.8 million, or a second quarter record of 20.8% of value-added sales, down 3% year over year with 10 basis points of margin expansion, despite the lower volume. This decrease was driven by lower volume, partially offset by strong operational performance and structural cost improvements. Favorable pricing was realized in the quarter, offsetting unfavorable mix from hydroxide shipment timing.

移至第 11 張投影片，調整後的 EBITDA 為 5,580 萬美元，創下第二季增值銷售額 20.8% 的記錄，儘管銷量較低，但同比下降 3%，利潤率擴大 10 個基點。這一下降是由於銷售下降所致，但強勁的營運業績和結構性成本改善部分抵消了這一下降。本季度實現了優惠的定價，抵消了氫氧化物裝運時間的不利影響。

Moving to slide 12, let me review second quarter performance by business segment. Starting with performance materials, value-added sales were $168.5 million, down 3% year-over-year, but up 5% sequentially.

轉到第 12 張投影片，讓我按業務部門回顧第二季的業績。從性能材料開始，增值銷售額為 1.685 億美元，年減 3%，但季增 5%。

The year-over-year decrease was driven primarily by lower precision clad strip shipments as the expected inventory correction continues. Excluding precision clad strip, sales were up 3%, driven by strength in energy and aerospace and defense.

年比下降的主要原因是，隨著預期的庫存調整持續，精密複合帶出貨量下降。不包括精密複合帶，銷售額成長了 3%，這得益於能源、航空航太和國防領域的強勁成長。

Adjusted EBITDA was $41.5 million or 24.6% of value-added sales, down 4% compared to the prior year period. This decrease was driven by lower volume and unfavorable mix, partially offset by strong operational performance.

調整後的 EBITDA 為 4,150 萬美元，佔增值銷售額的 24.6%，較去年同期下降 4%。下降的原因在於銷量下降和產品組合不佳，但強勁的營運業績部分抵消了這一影響。

Looking out to the second half of 2025, we expect to see continued strength across the aerospace in defense and energy and markets. In addition to higher volume, we expect to see continued strong operational performance and cost management.

展望 2025 年下半年，我們預期航空航太、國防、能源和市場將持續保持強勁勢頭。除了銷售增加之外，我們還預計營運業績和成本管理將持續保持強勁。

Now turning to electronic materials on slide 13. Value-added sales were $76.1 million, down 6% from the prior year, driven by lower semiconductor sales to China. Excluding this impact, the remainder of the semiconductor market was up 6% from prior year, signaling market strength with improving demand across many subsectors.

現在轉到幻燈片 13 上的電子材料。增值銷售額為 7,610 萬美元，較前一年下降 6%，原因是對中國的半導體銷售額下降。除去這一影響，其餘半導體市場較上年同期增長了 6%，顯示市場實力強勁，許多子行業的需求都在改善。

EBITDA excluding special items was $17.8 million, or a record 23.4% of value-added sales in the quarter, up 4% from the prior year with 230 basis points of margin expansion. This record margin and year over year increase was driven by continued operational performance, including the impact of our cost improvement initiatives and strong price mix, despite lower volume.

不包括特殊項目的 EBITDA 為 1,780 萬美元，佔本季增值銷售額的 23.4%，創歷史新高，比上年增長 4%，利潤率擴大 230 個基點。儘管銷量較低，但利潤率和同比增長均創歷史新高，這得益於持續的營運業績，包括成本改進舉措和強勁的價格組合的影響。

As we look out to the remainder of the year, we expect the semiconductor market to improve in the second half and continue the momentum seen during the quarter. While some uncertainty remains around our semiconductor sales to customers in China, we are confident that our balanced and global semi-portfolio will help offset some softness there.

展望今年剩餘時間，我們預計半導體市場將在下半年改善，並延續本季的動能。儘管我們向中國客戶銷售半導體的市場仍存在一些不確定性，但我們相信，我們均衡的全球半導體產品組合將有助於抵消中國市場的一些疲軟。

And as demonstrated so far this year, we expect to deliver considerable margin expansion as demand increases and the impact of our improved cost structure takes hold.

正如今年迄今所顯示的那樣，隨著需求的成長和成本結構改善的影響的顯現，我們預計利潤率將大幅提高。

Turning to the precision optics segment on slide 14, value added sales were $24.4 million, down 5% compared to the prior year and up 14% sequentially. The year over year decrease was driven largely by order timing in the defense market. EBITDA excluding special items with $2.2 million or 9% of value-added sales in the quarter, approaching double digit margin with 950 basis points of sequential improvement.

轉向幻燈片 14 上的精密光學部門，增值銷售額為 2,440 萬美元，比上年下降 5%，比上一季成長 14%。年比下降主要是由於國防市場的訂單時間表所致。本季度，扣除特殊項目的息稅折舊攤銷前利潤 (EBITDA) 為 220 萬美元，佔增值銷售額的 9%，利潤率接近兩位數，環比提高 950 個基點。

The increase was driven by improving performance and the impact of the structural cost changes. This quarter brings the second consecutive quarter of improved results, and we expect to continue this trend as new business initiatives advance, and we continue to improve our business performance.

成長的動力來自於績效的提升和結構性成本變化的影響。本季是我們連續第二季業績好轉，隨著新業務計畫的推進和業務業績的不斷改善，我們預期這一趨勢將持續下去。

Moving now to cash, debt, and liquidity on slide 15. We ended the quarter with a net debt position of approximately $413 million and approximately $257 million of available capacity on the company's existing credit facility.

現在轉到投影片 15 上的現金、債務和流動性。截至本季末，我們的淨債務狀況約為 4.13 億美元，公司現有信貸額度的可用容量約為 2.57 億美元。

Our leverage remains below two times as cash flow generation is an important focus. We delivered approximately $36 million of free cash flow during the quarter, bringing our year-to-date conversion to more than 70% of adjusted net income.

由於現金流的產生是我們關注的重點，因此我們的槓桿率仍保持在兩倍以下。我們在本季實現了約 3,600 萬美元的自由現金流，使我們年初至今的轉換率達到調整後淨收入的 70% 以上。

While continuing to invest organically, we also repaid $26 million of debt and repurchased 100,000 shares at an average of $78 per share, further demonstrating our balanced and disciplined approach to capital allocation.

在繼續進行有機投資的同時，我們也償還了 2,600 萬美元的債務，並以平均每股 78 美元的價格回購了 100,000 股，進一步證明了我們均衡、嚴謹的資本配置方法。

As we look out to the remainder of the year, we are well on our way to deliver free cash flow that exceeds 70% of adjusted net income, with strong first half cash generation and second half cash initiatives on track.

展望今年剩餘時間，我們預計將實現超過調整後淨收入 70% 的自由現金流，上半年現金產生能力強勁，下半年現金計畫也進展順利。

Lastly, let me transition to slide 16 and address the full year 2025. We are pleased with our business performance in the first half of the year, having delivered strong results, despite a volatile macro environment, and we are encouraged by improving market dynamics and new business opportunities won as we look to the second half of the year.

最後，請容許我轉到第 16 張投影片，談談 2025 年全年的情況。我們對上半年的業務表現感到滿意，儘管宏觀環境動盪，我們仍取得了強勁的業績，展望下半年，市場動態的改善和贏得的新業務機會令我們感到鼓舞。

With that, we expect Q3 will be similar to slightly better than Q2, and we are on track to deliver a strong Q4 with improving demand and the timing of defense shipments. As a result, we are affirming our initial guide of $5.30 to $5.70 adjusted earnings per share for the full year.

因此，我們預計第三季的表現將與第二季相似或略好，隨著需求的改善和國防出貨時間的安排，我們預計在第四季度取得強勁成長。因此，我們確認全年調整後每股收益 5.30 美元至 5.70 美元的初步預期。

This concludes our prepared remarks. We will now open the line for questions.

我們的準備好的演講到此結束。我們現在開放問答熱線。

(Operator Instruction)

（操作員指令）

And the first question today is coming from Phil Gibbs from KeyBanc Capital. Phil your line is live.

今天的第一個問題來自 KeyBanc Capital 的 Phil Gibbs。菲爾，你的線路已通電。

Hey, good morning.

嘿，早安。

Morning, Philip. Hi.

早安，菲利普。你好。

So really strong performance in Electronic Materials in terms of their margins. Jugal, you mentioned a new level of performance and you expected some upside there for the full year. How sustainable do we think the recent quarters EM margins are? And then I also noticed there was a pretty solid sequential pickup in consumer electronics. I know that at times can have a nice mix impact for you because I don't -- I wouldn't think intuitively, it would have been a pickup in clad because I know that's in that piece. But maybe talk about that holistically.

因此，就利潤率而言，電子材料的表現確實非常強勁。Jugal，您提到了新的業績水平，並預計全年業績將會上升。我們認為最近幾季新興市場的利潤率有多大的可持續性？然後我還注意到消費性電子產品的銷售出現了相當強勁的環比成長。我知道這有時會給你帶來很好的混合效果，因為我不知道——我不會直覺地認為，這會是一個包覆的拾音器，因為我知道那是在那件作品中。但也許應該從整體來談談這個問題。

Yes. So Phil. Electronic Materials, as you know, we've been talking about that for the last year, year and a half. As the market has been down, our team has done a really nice job of driving operational performance, adjusting the cost structure at the levels that we had. What that has done now, of course, is that as the volumes are starting to pick up, we are starting to see benefit of that.

是的。所以菲爾。電子材料，正如你所知，我們在過去一年半裡一直在談論這個問題。在市場低迷的情況下，我們的團隊在推動營運績效、調整成本結構以維持現有水準方面做得非常出色。當然，現在的效果是，隨著交易量開始回升，我們開始看到它的好處。

And we started with volumes picking up in the logic and memory section, but now volumes are starting to pick up in power. They're starting to pick up in our data storage. And I think that's giving us confidence, and it's leading to these improved margins that we saw here in Q2. Certainly, 23.5% type margins are not necessarily the type of margins that we think we can deliver every quarter, but it's very, very encouraging for us to see this. And I think the improvement is going to continue.

我們一開始在邏輯和記憶體部分的交易量就開始回升，但現在電力部分的交易量也開始回升。它們開始在我們的資料儲存中出現。我認為這給了我們信心，並帶來了我們在第二季度看到的利潤率的提高。當然，23.5% 的利潤率不一定是我們認為每季都能實現的利潤率，但看到這一點對我們來說非常非常令人鼓舞。我認為這種改善將會持續下去。

I believe that we're going to have a good year-over-year performance and margin expansion in this business, especially as the market continues to improve. So we're very encouraged by where Electronic Materials is and very encouraged with, I think where it can go the rest of the year. But I think also importantly, in 2026 and 2027 as we would expect the market to continue to rebound.

我相信，我們的業務將實現年比良好表現，利潤率也將擴大，尤其是在市場持續改善的情況下。因此，我們對電子材料的現狀感到非常鼓舞，我認為它在今年剩餘時間內的發展前景也讓我們非常鼓舞。但我認為同樣重要的是，我們預計 2026 年和 2027 年市場將繼續反彈。

I think with consumer electronics, one of the reasons that the uptick took place is a little bit more shipments for our PMI business. We have -- as we've indicated that our full year is in line with what the customer has communicated to us in the past.

我認為，對於消費性電子產品而言，銷售上漲的原因之一是我們的 PMI 業務的出貨量略有增加。正如我們所指出的，我們的全年業績與客戶過去與我們溝通的情況一致。

So there's no real changes on a full year basis, but there certainly is always timing issues that happen between quarter-to-quarter. So nothing abnormal, I would say, there, but we're continuing to drive performance, of course, across all of our markets.

因此，從全年來看並沒有真正的變化，但季度與季度之間肯定會存在時間問題。所以我想說，這並沒有什麼異常，但我們當然會繼續推動所有市場的表現。

Thank you, Jugal, appreciate that. And then on energy, you talked a bit about that in your prepared remarks. It looks up a decent bit half-on-half versus last year. And I know that there's a couple of subsegments within your energy business and maybe talk a little bit about -- talk a little bit more about what you're seeing there and what has you excited? Thanks.

謝謝你，Jugal，我很感激。關於能源，您在準備好的演講中談到了一些這個問題。與去年相比，今年的漲幅有明顯提升。我知道你們的能源業務中有幾個子領域，也許可以稍微談一下——再多談一下你們在那裡看到了什麼，什麼讓你興奮？謝謝。

Yes. So as you know, we've had traditional energy. We're an impactful player in the oil and gas market. Our content per rig has continued to improve. We provide, in fact, more content, especially as the new drilling technologies come on board and more and more electronics and more and more AI is implemented on the traditional energy side. So that makes us feel good, I think, in terms of that side of it.

是的。如你所知，我們擁有傳統能源。我們是石油和天然氣市場上具有影響力的參與者。我們每台鑽孔機的內容都在持續改善。事實上，我們提供的內容更多了，特別是隨著新鑽井技術的出現以及越來越多的電子設備和人工智慧在傳統能源領域的應用。所以我認為，從這個方面來說，這讓我們感覺很好。

But last couple of years, we've talked a lot about alternate energy, new sources of energy, in particular, clean nuclear energy. We've talked about our partnership with Kairos. But in addition to that, we have a number of other initiatives that we're involved in that we're not able to talk about the customer names, but we are involved in those here in the U.S. as well as globally.

但過去幾年，我們談了很多關於替代能源、新能源，特別是清潔核能。我們已經討論過與 Kairos 的合作關係。但除此之外，我們還參與了許多其他計劃，我們無法透露客戶名稱，但我們參與了美國和全球的計劃。

And we're excited about that. We're excited about where that can take us over the next three years, five years, seven years because as we know, the trend and the world's expectations of energy is increasing. The demand is increasing at a rapid rate and the world has to be able to conform to that demand. And I think we are a key player with our materials in the energy sector. So not only are we excited about our content on the traditional energy side, I think we're even more excited about the role that we can play on the new sources of energy that I think are coming forward with the number of different projects that we have.

我們對此感到非常興奮。我們對未來三年、五年、七年的發展感到興奮，因為我們知道，世界對能源的趨勢和期望正在增加。需求正在快速成長，世界必須能夠滿足這種需求。我認為我們是能源領域材料領域的關鍵參與者。因此，我們不僅對傳統能源的內容感到興奮，我認為我們對我們在新能源領域所能發揮的作用更加興奮，我認為隨著我們擁有的許多不同項目，新能源領域正在不斷湧現。

Thank you. And then lastly for me, clearly outlined the tariff risks or potential tariff risks associated with China last quarter. Looks like you've essentially believe you fully mitigated that in the existing outlook. And just curious from your perspective holistically, what has changed and what is giving you confidence in the landscape other than just the pickup -- the cyclical pickup in the semis business overall? Thank you, good luck.

謝謝。最後，我清楚地概述了上個季度與中國相關的關稅風險或潛在關稅風險。看起來您基本上已經相信自己在現有觀點下已經完全緩解了這個問題。我很好奇，從您的整體角度來看，除了半導體業務整體的周期性回升之外，還有哪些變化以及是什麼讓您對整個情況充滿信心？謝謝，祝你好運。

Yes. Well, as you know, at the time that we did our Q1 earnings, there were substantial tariff rates, both for material coming into the U.S. and material going from the U.S. into China. Changes happened during the quarter where those rates were reduced significantly.

是的。嗯，正如你所知，在我們公佈第一季收益時，對進入美國的材料和從美國進入中國的材料都徵收了相當高的關稅。本季度發生了變化，這些費率大幅降低。

As a result, we were able to get some product out still in Q2 that initially we had forecasted that we may not be able to get out. We never really stopped producing. We wanted to make sure that we were prepared in case if there were changes to the tariff environment, and certainly, there were, and we were able to take advantage of those. Now we still have some level of impact in Q2, not to the level that we had initially expected. And we expect that there will still be some level of impact in the back half of the year as well.

因此，我們在第二季度仍然能夠推出一些我們最初預測可能無法推出的產品。我們從未真正停止生產。我們希望確保一旦關稅環境發生變化，我們就能做好準備，而且確實發生了變化，我們能夠利用這些變化。現在我們在第二季度仍然受到一定程度的影響，但沒有達到我們最初預期的水平。我們預計今年下半年仍將受到一定程度的影響。

However, I think I'm really, really proud of our team for driving operational improvements, commercial improvements to our business, so that we can make sure that whatever impact that we think we may still have in the second half of the year, we're going to be able to offset that impact and deliver our original guide. Our incoming order rates are up 4% from second quarter to the -- from the first quarter to the second quarter. Non-China semi is up 15% sequentially. We have record defense bookings of $75 million. Our space backlog is double what it was at the same time last year.

然而，我認為我真的為我們的團隊感到自豪，他們推動了我們業務的營運改進和商業改進，這樣我們就可以確保，無論我們認為下半年可能仍然會產生什麼影響，我們都能夠抵消這種影響並提供我們最初的指導。我們的訂單率從第二季到第二季上升了 4%。非中國半導體季漲 15%。我們的國防訂單金額創紀錄地達到 7500 萬美元。我們的空間積壓量是去年同期的兩倍。

New energy sales, which I just talked about, are up. We've had more new energy sales in the first half of this year than we had all of last year. So all those types of things, I think, give us encouraging signs of where things are headed in the second half of the year, and I think where we could be positioned for 2026. So certainly, a lot of hard work by our team. We're in no way out of the woods because there is a lot of uncertainty that's still out there, but certainly encouraging to see the results for the second quarter and what it may do for us then in the back half of the year.

我剛才講的新能源銷售正在上升。我們今年上半年的新能源銷售量比去年全年還要多。所以我認為，所有這些事情都為我們提供了令人鼓舞的跡象，預示著今年下半年局勢的發展，也預示著我們 2026 年的定位。所以，我們的團隊確實付出了很多努力。我們還遠遠沒有擺脫困境，因為仍然存在許多不確定性，但看到第二季的業績以及它在下半年可能為我們帶來的影響，無疑令人鼓舞。

Thank you.

謝謝。

Thank you. The next question will be from Daniel Moore from CJS Securities.

謝謝。下一個問題來自 CJS Securities 的 Daniel Moore。

Good morning, Jugal. Good morning, Shelly. Congrats on the results and thanks for taking the questions.

早上好，Jugal。早安，雪莉。恭喜您所取得的成績並感謝您回答問題。

Thanks, Daniel. morning.

謝謝，丹尼爾。早安.

Maybe just talk a little bit more about Konasol. Tell us a little bit more about the facility and the capabilities you're acquiring relative to your deposition capabilities here in the U.S. And how do we kind of think about either current revenue EBITDA or the scope of the opportunity set over time?

也許只是多談談 Konasol。請向我們詳細介紹一下您在美國所收購的設施和能力（相對於您的沉積能力而言）。我們如何看待當前收入 EBITDA 或隨時間推移的機會範圍？

Yes. I think this is a great move that our team has been able to make. As you know, we've been talking, Dan, for the last few years about continuing to gain more capacity and capability outside the U.S., particularly in our semiconductor business. The largest semiconductor suppliers tend to be in Asia. We want to make sure we're local, and we're providing the local support to those customers.

是的。我認為這是我們團隊做出的一個偉大舉措。丹，正如你所知，過去幾年我們一直在談論繼續在美國以外獲得更多的產能和能力，特別是在我們的半導體業務方面。最大的半導體供應商往往位於亞洲。我們希望確保我們是本地化的，並且我們正在為這些客戶提供本地支援。

Konasol fits right in for that. It's a facility in Korea. We're able to support not only the Korean chip manufacturers, but also chip manufacturers in Taiwan, in China, in Japan, et cetera. And it really gives us a full value stream for our tantalum business, but it also gives us a facility that we can build up for our other semiconductor business as well down the road. So we were able to close on that here in the second quarter.

Konasol 正好適合這個要求。這是韓國的一個工廠。我們不僅能夠支援韓國晶片製造商，還能支援台灣、中國、日本等地的晶片製造商。它確實為我們的鉭業務提供了完整的價值流，同時也為我們提供了一個可以為未來其他半導體業務建立的設施。因此我們能夠在第二季完成這一目標。

Now we're really, really excited and busy about making samples and qualification products that we can give to those many customers in the Asia region. As you know, in this space, of course, it takes a little time to get the qualifications done. So perhaps in some cases, at six months, other cases in maybe 12 months. We would expect to see some level of sales starting in the '26-time frame and the associated EBITDA with that. But it positions us very well for, I think, the general growth that we see that we always talk about for the semi space over the next three years to five years to seven years.

現在我們真的非常興奮並且忙於製作樣品和合格產品，以便提供給亞洲地區的眾多客戶。如您所知，在這個領域，當然需要花一點時間才能獲得資格。因此，在某些情況下可能需要 6 個月，而在其他情況下可能需要 12 個月。我們預計在 26 年期間銷售額將達到一定水平，相關的 EBITDA 也將隨之增加。但我認為，它為我們在未來三至五年甚至七年內看到的半導體領域的整體成長做好了很好的準備。

Very helpful. And just sticking with semi. Obviously, you described very well some of the green shoots and improvements you're seeing here or at non-China. Maybe talk about what you're seeing or hearing in China specifically and any confidence in a return to growth as we think about 2026 and beyond?

非常有幫助。並且只堅持半自動。顯然，您很好地描述了您在這裡或中國以外看到的一些復甦跡象和改進。也許您可以具體談談您在中國看到或聽到的情況，以及對 2026 年及以後恢復成長的信心？

Yes. Well, first of all, to your point about the green shoots, yes, we started to see the green shoots in the logic and memory side, maybe a couple of quarters back. But what's really encouraging to us, I think, is the growth and sort of the green shoots that we're starting to see on our data storage business, on our power semiconductor business, our communications devices business because that's at the heart of our part of our business in the Electronic Materials business. It contributes good -- obviously, on the top line, but also very good on the bottom line. So we're very, very encouraged with where things are starting to develop.

是的。嗯，首先，關於你提到的綠芽，是的，我們開始看到邏輯和記憶體方面的綠芽，大概是幾個季度前。但我認為，真正令我們感到鼓舞的是，我們的資料儲存業務、功率半導體業務、通訊設備業務開始出現成長和復甦跡象，因為這些是我們電子材料業務的核心。顯然，它不僅為營收做出了良好貢獻，而且對利潤也做出了非常好的貢獻。因此，我們對事態的發展感到非常鼓舞。

I mean we really think that, that trend can continue here in the back half of the year. With regard to China, China, as you know, has been developing their own semi supply chain for a number of years now. They've put a lot of effort into it, and I think they've made great progress along with, of course, the full manufacturing or final manufacturing for the semi side. They're also doing a great job of putting their own supply chain in place. So certainly, we want to be involved in that China semi-manufacturing over the long term.

我的意思是，我們確實認為，這種趨勢可以在今年下半年繼續下去。關於中國，如你所知，中國多年來一直在發展自己的半成品供應鏈。他們為此付出了很多努力，我認為他們取得了巨大的進步，當然，在半成品製造或最終製造方面也是如此。他們在建立自己的供應鏈方面也做得很好。因此，我們當然希望長期參與中國的半製造業。

But we also recognize that there will be competition from the local players as they gain speed. So I think for us, we're looking at the global market, the investments that are going on in the U.S., the investments that are going on in Europe and of course, the investments that are going on in Korea, Taiwan, et cetera. And in general, we believe that semi will continue to be mid-single digits to high single digits growth market for the foreseeable future.

但我們也意​​識到，隨著本土企業的發展壯大，他們也會面臨競爭。所以我認為，對我們來說，我們正在關注全球市場，美國正在進行的投資，歐洲正在進行的投資，當然還有韓國、台灣等地正在進行的投資。總體而言，我們相信在可預見的未來，半導體市場將繼續保持中個位數至高個位數的成長。

Super helpful. Last for me, and I'll jump back. Just kind of -- it sounds like Philip Morris or PMI, no changes to the kind of full year outlook. Any update on potential timing around Phase 2 of precision clad strip project and what you're hearing in terms of -- from the FDA, et cetera? Thanks again.

超有幫助。對我來說，堅持到最後，我就會跳回去。只是有點——聽起來就像菲利普莫里斯或菲利普莫里斯國際，全年前景沒有變化。關於精密複合帶專案第 2 階段的潛在時間表有什麼最新消息嗎？以及您從 FDA 等方面聽到了什麼消息？再次感謝。

Yes. So the full year, I mean, we -- like we indicated, we expect the full year to be in line with what we have communicated before. We're on track with that. Typically, we stick with them in Q3, sometimes maybe early Q4 to start talking about the following year. So we'll do that in our meetings with them and start to have an understanding of what their expectations are for the next year.

是的。所以，我的意思是，全年——就像我們所指出的，我們預計全年業績將與我們之前傳達的一致。我們正在按計劃進行。通常，我們會在第三季堅持與他們合作，有時甚至在第四季初開始討論下一年的事情。因此，我們將在與他們的會議中這樣做，並開始了解他們對明年的期望。

They announced last week, I mean, in the earnings call that they are continuing to work with the FDA to gain approval. Whether they're able to get that this year or next year is obviously a discussion that they're having with the FDA and what they can do regardless of that. But certainly, we are very well prepared so that once they do get the approval, then we're able to support them as needed.

我的意思是，他們在上週的收益電話會議上宣布，他們將繼續與 FDA 合作以獲得批准。他們今年或明年是否能夠獲得這項許可顯然是他們與 FDA 討論的問題，無論結果如何，他們都能採取相應措施。但可以肯定的是，我們已經做好了充分的準備，一旦他們獲得批准，我們就能根據需要為他們提供支援。

Very good. Appreciate the teller. Thanks again.

非常好。感謝出納員。再次感謝。

Thanks Dan.

謝謝丹。

(Operator Instruction) The next question is coming from Mike Harrison from Seaport Research Partners. Mike your line is live.

（操作員指示）下一個問題來自 Seaport Research Partners 的 Mike Harrison。麥克，你的線路已通電。

Hi, good morning. Congrats on a nice quarter.

嗨，早安。恭喜本季取得良好業績。

Thanks Mike.

謝謝邁克。

Thanks Mike.

謝謝邁克。

I wanted to go back to the margin performance in the electronic materials business. It kind of sounds like while you're expecting some improvement, maybe Q2 is kind of a high watermark. And I guess I just wanted to understand what kind of temporary or unusual factors could be playing into the margin performance? And specifically, I was curious, is the strength outside of China, something that is a positive for mix, meaning that some of your inside China business is actually a lower-margin business than outside?

我想回顧一下電子材料業務的利潤表現。這聽起來就像您期待一些改進，也許 Q2 是一個高水位線。我想我只是想了解哪些暫時或不尋常的因素會影響利潤表現？具體來說，我很好奇，中國以外的實力是否對組合有利，這是否意味著你們在中國境內的部分業務的利潤率實際上低於境外業務？

Yes. Mike, let me start with that one. So you're hitting on some good points there. With Electronic Materials, the performance has definitely been improving. But as you know, it's not really consistent quarter-to-quarter within a very small band as to what those margins are. And there's different factors that mix certainly is one of the larger ones. As you know, sometimes we talk about our precious metals business versus our non-precious metals business as those carry different margin profiles. But regionally as well, China is -- does tend to be a lower mix item. So when our strong -- when our sales are stronger on the other items, that would be a positive mix -- positive mix item.

是的。麥克，讓我從這個開始。所以你的觀點很正確。有了電子材料，性能肯定得到了提升。但正如你所知，在一個非常小的範圍內，這些利潤率實際上在各個季度之間並不一致。其中，多種因素混合在一起無疑是較大的因素。如您所知，有時我們會談論貴金屬業務與非貴金屬業務，因為它們具有不同的利潤率。但從地區來看，中國確實是混合程度較低的商品。因此，當我們的其他商品銷售強勁時，這將是一個積極的組合——積極的組合商品。

All right. That's helpful. And then within the Performance Materials business and that precision clad strip business, I think we just kind of touched on it, but I was hoping to get an update on that, that new precision clad strip facility and kind of where we are in terms of Phase 2 being fully up and running and kind of what that looks like in terms of capacity and utilization? And then the other piece of that is the old precision clad strip facility. Is that still producing anything for PMI? Or maybe just give us an update on where you are in the process of filling that old facility with maybe some new clad strip business?

好的。這很有幫助。然後，在性能材料業務和精密複合帶業務方面，我想我們只是稍微提到了這一點，但我希望獲得有關該業務的最新進展，新的精密複合帶工廠以及我們在第二階段全面投入運營方面的進展，以及在產能和利用率方面的情況如何？另一部分是舊的精密複合帶設備。這還能為 PMI 帶來什麼嗎？或者您能向我們介紹一下您在將舊工廠改造成新的複合帶業務方面的最新進展嗎？

Yes. So first of all, let me just talk about the old facility, the legacy facility. As you know, that facility produces some level of material for PMI, but it also -- in fact, the majority of the facility is non-PMI. We produce material and products there for automotive customers, consumer electronics customers, various other type of markets, and we've been doing that for years. So we are still producing material there.

是的。首先，讓我談談舊設施、遺留設施。如您所知，該設施為 PMI 生產一定程度的材料，但事實上，該設施的大部分都是非 PMI 的。我們在那裡為汽車客戶、消費性電子客戶和其他各種類型的市場生產材料和產品，我們已經這樣做了很多年。所以我們仍在那裡生產材料。

And it just -- and the reason for that is there's a little different nuances on the type of material, and that facility is better equipped to produce one type of material versus another type of material, and so we are still doing that. And then with regard to, I think, the new facility, like I indicated, I mean, our discussions with PMI will take place over the next three months to six months in terms of what they're looking from us for next year. We will be prepared at whatever level that they want. Certainly, if they are able to enter the U.S. market or if they're able to enter other markets and they have an increased set of volume, we will be fully prepared to do that.

而這只是——原因在於材料的類型略有不同，而且該設施更適合生產一種類型的材料而不是另一種類型的材料，所以我們仍在這樣做。然後，關於新工廠，我認為，正如我指出的那樣，我們將在未來三個月到六個月內與菲莫國際進行討論，討論他們對我們明年的期望。無論他們希望達到什麼程度，我們都會做好準備。當然，如果他們能夠進入美國市場，或能夠進入其他市場，並且銷量增加，我們將做好充分的準備。

If they want the same level of product from us for some other reason, we'll prepared to do that. I think our position with them is we have the facility, we have the capacity. We have the people, and we'll be prepared to support them as they would like once we have the discussions with them over the next three months to six months.

如果他們因為其他原因想要我們提供同等水準的產品，我們也會做好準備。我認為我們與他們的關係是，我們有設施，有能力。我們有人手，一旦我們在未來三到六個月內與他們進行討論，我們就會準備好按照他們的意願為他們提供支持。

But just to clarify, is the equipment associated with the Phase 2 of that new precision clad strip facility, is that equipment in place already? Or is that -- are there some piece of equipment or lines that you would need to add if, in fact, the orders from PMI were expanding in conjunction with an FDA approval?

但需要澄清的是，與新精密複合帶工廠第二階段相關的設備是否已經到位？或者說——如果事實上 PMI 的訂單隨著 FDA 的批准而擴大，您是否需要添加一些設備或生產線？

No. The facility is fully ready. We have the equipment. It's qualified, and we would be prepared to produce as we got orders from them.

不。該設施已完全準備就緒。我們有設備。是合格的，接到訂單後我們就會準備好生產。

Perfect. And then last question for me is just on the Precision Optics business. You had really nice sequential earnings improvement there and kind of some recovery there. Just curious, do you expect that better performance to continue? And can you maybe give us a little bit more color on how you've engineered a turnaround, what seems to be relatively quickly?

完美的。我的最後一個問題是關於精密光學業務的。你們的獲利確實連續改善，並且有所復甦。只是好奇，您是否希望這種更好的表現能持續下去？您能否向我們詳細介紹一下您是如何實現扭轉局面的，而且是相對較快的？

Yes. We're really, really pleased with, I think, the progress that this business has made. As you know, we've had some challenges in this business. We acknowledge that. And I think we've taken strong action, including leadership change along with, I think, a number of different other structural cost changes, portfolio adjustments and so on.

是的。我認為，我們對這項業務所取得的進展感到非常非常滿意。如您所知，我們在這個業務中遇到了一些挑戰。我們承認這一點。我認為我們已經採取了強有力的行動，包括領導層變動以及其他一些結構性成本變化、投資組合調整等等。

And we're very, very pleased with the progress that this business has made over the last few quarters reaching almost double-digit EBITDA margins in Q2. We've indicated that we continue to expect sequential improvement. And so that's what we're going to strive for here in the back half of the year is to drive continuous improvement in Q3 and then in Q4 and, of course, into next year. I just want to remind you, Mike, and I know we've talked about this, is that just a few years back, this business was 20% plus EBITDA margins for us. And our goal has not changed.

我們對這項業務在過去幾季取得的進展感到非常高興，第二季的 EBITDA 利潤率幾乎達到了兩位數。我們已經表示，我們將繼續期待連續的改善。因此，我們下半年要努力推動第三季、第四季以及明年的持續改善。麥克，我只是想提醒你，我知道我們已經討論過這個問題，就在幾年前，這項業務的 EBITDA 利潤率還達到了 20% 以上。我們的目標沒有改變。

Our goal is to return the business to that level of EBITDA margins. Certainly, it will take some time. But we're very, very pleased with the level of turnaround that this business has given to us so far.

我們的目標是使業務恢復到 EBITDA 利潤率水準。當然，這需要一些時間。但我們對這項業務迄今為我們帶來的轉變感到非常非常滿意。

All right, thanks very much.

好的，非常感謝。

Thank you. The next question is coming from Dave Storms from Stonegate. Dave your line is live.

謝謝。下一個問題來自 Stonegate 的 Dave Storms。戴夫，你的線路已通電。

Morning. Thank you for taking my questions.

早晨。感謝您回答我的問題。

Just wanted to dig into a couple of the end markets here. It's noted that automotive saw a strong sequential quarter from Q1 low point, but you're still seeing some continued market softness. Just would love to get your thoughts on what your outlook is for that market for the rest of the year? Should we continue to see maybe sequential growth? Or is this maybe a plateau before the next leg up?

只是想深入了解這裡的幾個終端市場。值得注意的是，汽車產業自第一季低點以來連續幾季表現強勁，但市場仍持續疲軟。只是想聽聽您對今年剩餘時間該市場的展望有何看法？我們是否應該繼續看到連續成長？或者這只是下一階段上升之前的平穩階段？

Yes. Auto, I think as a market for us, has been quite challenging the last couple of years. And certainly, Q1 was the low point for us. We saw encouraging signs here in Q2 sequentially of 15%. We would expect that in the back half of the year, we would be somewhere in the flat to probably slight increases in the back half of the year.

是的。我認為，汽車市場對我們來說，過去幾年一直充滿挑戰。毫無疑問，第一季是我們的低潮。我們在第二季看到了令人鼓舞的跡象，季增了 15%。我們預計，今年下半年，我們的銷售額將保持平穩，甚至可能略有成長。

I think this market continues to be a bit choppy. There are still some headwinds, I would say, in the European market and certainly in the U.S. and changes have happened between EV and hybrid and traditional ICE. And so I think the choppiness in the auto market could continue for us. But at the same time, it's become a smaller market for us.

我認為這個市場仍然有點波動。我想說，歐洲市場和美國市場仍然存在一些阻力，電動車、混合動力車和傳統內燃機汽車之間發生了變化。因此我認為汽車市場的波動可能會持續下去。但同時，對我們來說，市場規模也變小了。

And so I think the impact to our company from the choppiness is much less. We're very encouraged with what we are seeing on defense and on space, on commercial aerospace, the semiconductor market, the energy market. I think we are very, very impressed and pleased with where those markets can go over the next three years to five years. And automotive, we'll just monitor and support as needed.

因此我認為波動對我們公司的影響要小得多。我們對國防、太空、商業航空、半導體市場和能源市場的表現感到非常鼓舞。我認為我們對這些市場在未來三到五年內的發展感到非常非常滿意。對於汽車，我們只會根據需要進行監控和支援。

That's perfect. And that actually brings me to my next question around the defense backlog. Just hoping if you could give us a little more maybe texture, timeline and burn rate around that, maybe what the margins look like compared to current margins? Anything like that would be very helpful.

那很完美。這實際上引出了我關於國防積壓的下一個問題。只是希望您能給我們更多信息，例如紋理、時間表和燒錢率，以及與當前利潤率相比利潤率如何？任何類似的事情都會非常有幫助。

Well, the defense market is a very positive mix market for us. So we enjoy improved performance, I think, on a margin level from the defense market than perhaps some of the other markets. Like we indicated, we have $75 million of bookings approximately in the first half of this year. That's up about almost 30% on a year-over-year basis for defense. And then we see a tremendous number of new inquiries much more than what we have seen in the time that I have been here in the company for defense.

嗯，國防市場對我們來說是一個非常積極的組合市場。因此，我認為，國防市場的利潤率比其他一些市場要高。正如我們所指出的，今年上半年我們的預訂金額約為 7,500 萬美元。與去年同期相比，國防開支成長了近 30%。然後，我們看到大量的新詢問，比我在公司擔任國防職務期間所見到的詢問要多得多。

There's an increased level of activity from U.S. defense, increased level of spending that's happening in Europe, and that's resulting in, I think, a higher activity and certainly increased activity from some of the countries in Asia as well. Our non-U.S. portion of the defense business continues to grow based on all these initiatives. So I think the level of activity, we expect to continue to increase in the back half of the year, and our expectation is to be able to make sure we're capturing as much of this business as possible and supporting our customers.

美國國防活動水準不斷提高，歐洲的支出也在增加，我認為這導致了活動的增加，當然亞洲一些國家的活動也增加了。基於所有這些舉措，我們的國防業務在美國以外的部分繼續成長。因此，我認為我們預計今年下半年的活動水準將繼續提高，我們的期望是能夠確保盡可能多地開展業務並為我們的客戶提供支援。

Understood, thank you for the commentary.

明白了，謝謝你的評論。

Thanks.

謝謝。

Thank you. And the next question will be a follow-up from Phil Gibbs from KeyBanc Capital.

謝謝。下一個問題將由 KeyBanc Capital 的 Phil Gibbs 提出。

Thank you. Just curious in terms of the big, beautiful bill, if you've got any tax saving -- cash tax savings associated with that either this year or next year?

謝謝。我只是好奇，對於這張美麗的大鈔，您是否在今年或明年獲得了任何稅收節省——與此相關的現金稅節省？

Yes. Good question. So we've been going through that, as you can imagine, in some detail and taking a look initially at where we think the benefits are and maybe where we won't have as much benefit. We get a lot of questions around the bonus depreciation. On the bonus appreciation itself, it's possible that could give us some benefit, but it's intertwined with our FDII deductions, our foreign intangible income deduction.

是的。好問題。因此，正如您所想像的，我們一直在詳細地研究這個問題，並首先研究我們認為哪些方面有好處，哪些方面可能不會有太大好處。我們收到了很多有關獎金折舊的問題。就獎金增值本身而言，它可能會為我們帶來一些好處，但它與我們的 FDII 扣除、我們的外國無形收入扣除交織在一起。

So we've got to model that out and really decide where we may want to take the 100% bonus versus a lower amount, but that could be beneficial, as you said, from a cash tax perspective. But there's other areas around interest, the deductions we can take there that are beneficial. And then, as you know, the production tax credit that we have -- that we enjoy is currently now scheduled to wind down by 2031. That item could change administration to administration. But right now, before it had no end in sight, and now it's showing that it would wind down by 2031.

因此，我們必須對此進行建模，並真正決定我們可能想要在哪裡獲得 100% 的獎金而不是較低的金額，但正如您所說，從現金稅的角度來看，這可能是有益的。但還有其他與利息有關的領域，我們可以從中扣除一些有益的款項。然後，如您所知，我們享受的生產稅收抵免目前計劃於 2031 年結束。該項目可能會改變政府的行政管理方式。但目前，它還沒有結束的跡象，而且現在顯示它將在 2031 年逐漸結束。

Thank you. And then you've talked a lot about the strength in defense. Obviously, it's a critical imperative for this administration. Has there been any discussion around repletion of the strategic stockpiles of beryllium in the country by the government? I don't know where those inventory levels stand, but I would imagine given the activity we've seen globally the last few years, they probably have not gone up. So just anything you have there in terms of your commentary or views? Thanks.

謝謝。然後你談了很多關於防守實力的問題。顯然，這對本屆政府來說至關重要。政府是否討論過補充國家鈹戰略儲備的問題？我不知道這些庫存水平處於什麼水平，但我想，考慮到過去幾年我們在全球範圍內看到的活動，它們可能沒有上升。那麼，您有什麼評論或觀點嗎？謝謝。

Yes. Phil, as you know, a large part of our defense business does rely on our beryllium capability and what we're able to do. And so I can tell you that we are actively involved in discussions with the Defense Department, but really all parts of the defense area in the country as well as, I think, with the primes and beryllium's supply and overall stockpiles and other types of, let's say, things that are related to this without going into a lot of detail that I can't get into. But we're involved in really all the discussions that are there on defense.

是的。菲爾，如你所知，我們的國防業務很大一部分確實依賴我們的鈹能力以及我們的能力。因此我可以告訴你們，我們正在積極參與與國防部的討論，但實際上，我們正​​在與全國所有國防領域進行討論，我認為，還包括與鈹的供應、總體庫存和其他類型的相關事宜，我不想談太多細節，所以無法深入探討。但我們確實參與了有關國防的所有討論。

Thank you.

謝謝。

Thank you. And we have reached the end of the question-and-answer session. I will now turn the call over to Kyle Kelleher for closing remarks.

謝謝。問答環節現已結束。現在我將把電話交給凱爾·凱萊赫 (Kyle Kelleher) 來做結束語。

Thank you. This concludes our second quarter 2025 earnings call. Recorded playback of this call will be available on the company's website, www.materion.com. I'd like to thank you for participating on this call and your interest in Materion. I will be available for any follow-up questions. My number is (216) 383-4931. Thank you again.

謝謝。我們的 2025 年第二季財報電話會議到此結束。本次電話會議的錄音回放將在公司網站 www.materion.com 上提供。感謝您參加本次電話會議以及對 Materion 的關注。我將隨時回答任何後續問題。我的電話號碼是(216) 383-4931。再次感謝您。

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

謝謝。今天的會議到此結束，大家可以斷開連線了。感謝您的參與。