Mueller Water Products Inc (MWA) 2025 Q3 法說會逐字稿

Welcome, and thank you for standing by. (Operator Instructions) Today's conference is being recorded. If you have any objections, you may disconnect at this time.

歡迎，感謝您的耐心等待。（操作說明）今天的會議正在錄音。如果您有任何異議，可以立即斷開連接。

I now turn the call over to Whit Kincaid. You may begin.

現在我將電話轉交給惠特·金凱德。你可以開始了。

Good morning, everyone. Thank you for joining us for Mueller Water Products third-quarter conference call. Yesterday afternoon, we issued our press release reporting results of operations for the quarter ended June 30, 2025. A copy of the press release is available on our website, muellerwaterproducts.com.

各位早安。感謝您參加穆勒水務產品公司第三季電話會議。昨天下午，我們發布了新聞稿，公佈了截至 2025 年 6 月 30 日的季度經營業績。新聞稿副本可在我們的網站 muellerwaterproducts.com 上取得。

I'm joined this morning by Martie Zakas, our Chief Executive Officer; Paul McAndrew, our President and Chief Operating Officer; and Melissa Rasmussen, our Chief Financial Officer. Following our prepared remarks, we will address questions related to the information covered on the call.

今天早上和我一起的有：我們的執行長 Martie Zakas；我們的總裁兼營運長 Paul McAndrew；以及我們的財務長 Melissa Rasmussen。在宣讀完準備好的演講稿後，我們將回答與本次電話會議所涵蓋資訊相關的問題。

As a reminder, please keep to one question and a follow-up and then return to the queue. This morning's call is being recorded, and webcast live on the Internet. We have also posted slides on our website to accompany today's discussion. They also address forward-looking statements and our non-GAAP disclosure requirements.

再次提醒，請每次只提一個問題，然後提出後續問題，之後請返回佇列。今天早上的電話會議正在錄音，並透過網路進行現場直播。我們也在我們的網站上發布了與今天討論相關的幻燈片。它們還涉及前瞻性聲明和我們的非GAAP揭露要求。

At this time, please refer to Slide 2. This slide identifies non-GAAP financial measures referenced in our press release, on our slides and on this call. It discloses the reasons why we believe that these measures provide useful information to investors. Reconciliations between non-GAAP and GAAP financial measures are included in the supplemental information within our press release and on our website.

此時，請參考投影片 2。本投影片列出了我們在新聞稿、投影片和本次電話會議中提到的非GAAP財務指標。它揭示了我們認為這些措施能夠為投資者提供有用資訊的原因。非GAAP財務指標與GAAP財務指標的調節表已包含在我們新聞稿和網站上的補充資訊中。

Slide 3 addresses forward-looking statements made on this call. This slide includes cautionary information identifying important factors that could cause actual results to differ materially from those included in forward-looking statements. Please review Slides 2 and 3 in their entirety.

第 3 張投影片闡述了本次電話會議中所作的前瞻性陳述。此投影片包含警示訊息，指出可能導致實際結果與前瞻性聲明中包含的結果有重大差異的重要因素。請完整閱讀投影片 2 和 3。

During this call, all references to a specific year or quarter, unless specified otherwise, refer to our fiscal year, which ends the 30th of September.

在本次通話中，除非另有說明，所有提及的具體年份或季度均指我們的財政年度，該財政年度於9月30日結束。

A replay of this morning's call will be available for 30 days at 18664704775. The archived webcast and corresponding slides will be available for at least 90 days on the Investor Relations section of our website.

今天早上電話會議的錄音回放可在 18664704775 上收聽 30 天。存檔的網路直播和相應的幻燈片將在我們網站的投資者關係部分保留至少 90 天。

I'll now turn the call over to Martie.

現在我將把電話轉給瑪蒂。

Thanks, Whit. Good morning, everyone. Thank you for joining our third quarter earnings call. I'll start with a brief overview of our performance and then turn it over to Paul.

謝謝你，惠特。各位早安。感謝您參加我們第三季財報電話會議。我先簡單概述我們的表現，然後把麥克風交給保羅。

We achieved an impressive third quarter, setting new records for consolidated net sales, gross margin and adjusted EBITDA even amidst heightened macroeconomic and geopolitical uncertainty. Net sales increased 6.6% in the quarter, supported by resilient end markets and strong performance for repair products. Our gross margin exceeded 38% this quarter, reflecting a significant sequential improvement of 320 basis points.

即使在宏觀經濟和地緣政治不確定性加劇的情況下，我們仍然取得了令人矚目的第三季業績，合併淨銷售額、毛利率和調整後 EBITDA 均創下新紀錄。受終端市場韌性與維修產品強勁表現的支撐，本季淨銷售額成長6.6%。本季我們的毛利率超過 38%，較上季顯著提高 320 個基點。

Our teams executed well, capitalizing on higher-than-expected order levels and driving manufacturing efficiencies despite the challenges posed by the recently enacted tariffs. We are pleased with the expected positive impact of closing our legacy brass foundry, which has contributed to our overall success.

儘管面臨最近實施的關稅帶來的挑戰，但我們的團隊表現出色，充分利用了高於預期的訂單水平，並提高了生產效率。關閉我們歷史悠久的黃銅鑄造廠後，我們對其預期的積極影響感到滿意，這為我們的整體成功做出了貢獻。

Adjusted EBITDA and net income per diluted share both achieved third quarter records. During the quarter, we generated $56 million of free cash flow after investing approximately $12 million in capital expenditures. We continued our balanced approach to cash allocation, returning approximately $20 million to shareholders through our quarterly dividend and share repurchases.

調整後 EBITDA 和每股攤薄淨收入均創下第三季歷史新高。本季度，我們在資本支出約 1200 萬美元後，產生了 5,600 萬美元的自由現金流。我們繼續採取均衡的現金配置方式，透過季度分紅和股票回購向股東返還了約 2,000 萬美元。

We are on track for record annual results for the second consecutive year and are pleased to be raising our annual guidance for 2025 net sales and adjusted EBITDA. Our teams are skillfully navigating the challenging external operating environment while maintaining an unwavering commitment to exceptional customer service.

我們預計將連續第二年創下年度業績紀錄，並很高興提高我們對 2025 年淨銷售額和調整後 EBITDA 的年度預期。我們的團隊在應對充滿挑戰的外部營運環境的同時，始終堅定不移地致力於提供卓越的客戶服務。

Their successful execution of commercial, supply chain and operational initiatives is effectively mitigating the impact of the enacted tariffs and enhancing our manufacturing efficiencies. Our updated annual guidance points to a strong finish for the year, supported by net sales growth and margin improvement.

他們成功執行了商業、供應鏈和營運方面的舉措，有效地減輕了已實施關稅的影響，並提高了我們的生產效率。我們更新後的年度業績預期顯示，在淨銷售額成長和利潤率提高的支撐下，今年將取得強勁的收官成績。

We recently published our annual ESG report, sharing our ongoing progress to becoming a more sustainable, innovative and impactful organization. The report provides a lens into many aspects of our business, including our products, operations, culture and employees. Throughout our history, we have been working to support and enhance our sustainability efforts while creating innovative solutions that help solve real-world problems for our customers, communities and industries. What started as a small machine shop in Decatur, Illinois in 1857 has turned into a trusted name, iconic brand and leader in water distribution.

我們最近發布了年度 ESG 報告，分享了我們在成為一個更永續、創新和影響力的組織方面取得的持續進展。該報告從多個角度展現了我們業務的各個方面，包括我們的產品、營運、文化和員工。縱觀我們的發展歷程，我們一直致力於支持和加強永續發展工作，同時創造創新解決方案，幫助我們的客戶、社區和產業解決現實世界的問題。1857 年，伊利諾伊州迪凱特的一家小型機械車間起步，如今已發展成為值得信賴的品牌、標誌性品牌和供水行業的領導者。

Some of the notable achievements from 2024 include ushering in a new era of production with the opening of our brass foundry using a new silicon-based lead-free brass alloy for valves and fittings. We achieved our leak detection target early, successfully identifying an estimated 7.7 billion gallons of water loss savings for clients through our EchoShore leak detection technology since 2020. We have increased the target to help clients identify a total of 18 billion gallons of water loss by 2029 using 2020 as the baseline.

2024 年的一些顯著成就包括：我們開設了黃銅鑄造廠，採用新型矽基無鉛黃銅合金生產閥門和配件，從而開啟了生產的新時代。自 2020 年以來，我們透過 EchoShore 洩漏檢測技術，提前實現了洩漏檢測目標，成功為客戶節省了約 77 億加侖的水資源損失。我們提高了目標，以幫助客戶在 2029 年前確定總計 180 億加侖的水資源損失，以 2020 年為基準年。

These two accomplishments represent only a small selection of the significant milestones achieved throughout Mueller's extensive and impressive history. Our vision is to be the leader in water infrastructure solutions, solving challenges, enriching lives and safeguarding the future.

這兩項成就只是穆勒漫長而輝煌的職業生涯中所取得的眾多重要里程碑中的一小部分。我們的願景是成為水利基礎設施解決方案的領導者，解決挑戰，豐富生活，並保障未來。

Looking ahead, we aim to drive continuing progress through our innovative solutions that help solve real-world problems for our customers, communities and industries alike. We recognize the significant challenges ahead, but with our rich history, spirit of innovation and dedicated employees, we have shown that we are more than capable of addressing them.

展望未來，我們旨在透過創新解決方案推動持續進步，幫助我們的客戶、社區和產業解決現實世界的問題。我們意識到未來將面臨重大挑戰，但憑藉我們悠久的歷史、創新精神和敬業的員工，我們已經證明我們完全有能力應對這些挑戰。

The hard work and dedication of our employees have been and will continue to be the driving force behind our success. I couldn't be more grateful for their tireless energy and passion in serving our stakeholders.

員工的辛勤工作和奉獻精神一直是並將繼續是我們成功的驅動力。我無比感激他們為服務我們的利害關係人所付出的不懈努力和熱情。

With that, I'll turn it over to Paul.

接下來，我將把麥克風交給保羅。

Thanks, Martie. Good morning, everyone. As Martie mentioned, our teams delivered an outstanding performance this quarter while managing through an increased level of uncertainty, like the recently implemented tariffs. We achieved a record quarterly gross margin with more than 300 basis points of improvement versus the second quarter.

謝謝你，瑪蒂。各位早安。正如 Martie 所提到的，我們的團隊在本季表現出色，同時也要應對日益增加的不確定性，例如最近實施的關稅。本季毛利率創歷史新高，較第二季提高了 300 多個基點。

We are seeing benefits from our ongoing investments in our business with improved performance and enhanced customer experience, which contributed to healthy order levels across most product lines compared with the prior year. As expected, we saw a sequential benefit from improved efficiencies associated with our brass foundry transition. We remain confident in the gains that we will see from the closure of the legacy brass foundry in the fourth quarter and next year.

我們從對業務的持續投資中看到了成效，業績得到提升，客戶體驗得到改善，與前一年相比，大多數產品線的訂單量都達到了健康水平。正如預期的那樣，隨著黃銅鑄造廠轉型帶來的效率提升，我們看到了持續的效益。我們仍然對關閉這家老舊黃銅鑄造廠在第四季和明年將帶來的收益充滿信心。

The external environment remains highly uncertain, especially as it relates to tariffs and the potential impact on broader inflation and end market demand. While the newly enacted tariffs that phased in during the third quarter contributed to unfavorable price/cost, the impact was lower than our initial expectations.

外部環境仍然高度不確定，尤其是在關稅及其對更廣泛的通膨和終端市場需求的潛在影響方面。雖然第三季分階段實施的新關稅對價格/成本造成了不利影響，但影響低於我們最初的預期。

Last quarter, we provided an overview of our manufacturing and supply chain footprint, along with our current view of the announced tariffs. I am pleased to share that our updated estimates for the annualized tariff impact decreased to approximately 3% to 4% of our cost of sales, mainly due to reduced China-related tariffs and supply chain initiatives. This estimate does not include any potential copper-related tariff impacts.

上個季度，我們概述了我們的製造和供應鏈佈局，以及我們目前對已公佈關稅的看法。我很高興地告訴大家，由於與中國相關的關稅降低以及供應鏈舉措，我們更新後的年度關稅影響估算值已降至銷售成本的約 3% 至 4%。此估算不包括任何可能與銅相關的關稅影響。

As discussed last quarter, we have implemented targeted pricing actions for specialty valve and repair products, and we continue to expect to see these benefits starting in the fourth quarter. In addition to implementing targeted pricing actions, our teams continue to execute supply chain and operational initiatives to help mitigate the tariffs. We are working closely with our suppliers, channel partners and end customers to monitor the situation. We remain prepared to take additional pricing actions to offset higher input costs as needed.

正如上個季度所討論的，我們已經對特種閥門和維修產品實施了有針對性的定價措施，我們預計這些措施將從第四季度開始帶來效益。除了實施有針對性的定價措施外，我們的團隊還繼續執行供應鏈和營運方面的舉措，以幫助減輕關稅的影響。我們正與供應商、通路夥伴和終端客戶密切合作，監控事態發展。如有需要，我們仍準備採取額外的價格措施來抵銷更高的投入成本。

As Martie mentioned, our updated annual guidance positions us to deliver record results for a second consecutive year. I am extremely excited about the progress our teams have made so far and what they can achieve going forward. We see opportunities to further strengthen and grow the business by delivering outstanding customer service, improving operational excellence, increasing supply chain efficiencies and developing advanced manufacturing capabilities to drive productivity across all of our facilities.

正如馬蒂所說，我們更新後的年度業績預期將使我們能夠連續第二年取得創紀錄的業績。我對我們團隊迄今為止的進展以及他們未來能夠取得的成就感到無比興奮。我們看到了透過提供卓越的客戶服務、提高營運效率、提升供應鏈效率和發展先進製造能力來進一步加強和發展業務的機會，從而提高我們所有工廠的生產力。

With that, I'll turn it over to Melissa, so she can take you through the financials.

接下來，我將把麥克風交給梅莉莎，讓她為大家講解財務狀況。

Thanks, Paul, and good morning, everyone. We are pleased to report another strong quarter. Consolidated net sales increased 6.6% to $380.3 million, surpassing the strong third quarter net sales delivered last year. The growth was primarily due to higher volumes and pricing across most product lines, resulting in a new quarterly record for net sales with both segments contributing meaningfully.

謝謝保羅，大家早安。我們很高興地宣布，本季業績依然強勁。合併淨銷售額成長 6.6% 至 3.803 億美元，超過了去年第三季強勁的淨銷售額。成長主要歸功於大多數產品線的銷售和價格上漲，從而創下了新的季度淨銷售額紀錄，這兩個業務板塊均做出了顯著貢獻。

In the quarter, gross profit of $145.7 million increased 10.9% year-over-year, and gross margin expanded 150 basis points to 38.3%. These improvements were driven by manufacturing efficiencies and increased volumes, which more than offset the impact of higher tariffs. Excluding the tariffs mainly associated with specialty valves and repair products, our price/cost was favorable.

本季毛利為 1.457 億美元，年增 10.9%；毛利率成長 150 個基點至 38.3%。這些改進得益於生產效率的提高和產量的增加，這足以抵消關稅上漲的影響。除去主要與特種閥門和維修產品相關的關稅，我們的價格/成本具有優勢。

We are pleased with the 320 basis points sequential improvement in gross margin in the third quarter. This increase reflects volume growth, price actions taken prior to tariff announcements and ongoing manufacturing efficiencies, including those stemming from the closure of our legacy brass foundry. As Paul mentioned earlier, these benefits are expected to continue in the fourth quarter and carry over in the first half of next year.

我們對第三季毛利率環比提高 320 個基點感到滿意。這一增長反映了銷售成長、關稅公告發布前採取的價格措施以及持續的生產效率提升，包括關閉我們原有的黃銅鑄造廠而帶來的效率提升。正如保羅之前提到的，這些益處預計將在第四季度持續，並延續到明年上半年。

For the quarter, total SG&A expenses of $71 million were $9.5 million higher than the prior year, which includes an unfavorable foreign currency impact of $9.1 million and ongoing inflationary pressures, partially offset by lower amortization expense. Substantially all of the $7.7 million unfavorable foreign currency impact recognized in the third quarter was due to the depreciation of the US dollar versus the Israeli shekel associated with our US dollar-denominated bank accounts within our Krausz entity.

本季銷售、管理及行政費用總額為 7,100 萬美元，較上年同期高出 950 萬美元，其中包括 910 萬美元的不利外匯影響和持續的通膨壓力，部分被較低的攤銷費用所抵銷。第三季確認的 770 萬美元不利外匯影響幾乎全部是由於與我們 Krausz 實體內的美元計價銀行帳戶相關的美元對以色列新謝克爾貶值造成的。

Operating income increased 10% in the quarter to $73.7 million compared with the prior year. Operating income includes $1 million of strategic reorganization and other charges primarily related to the leadership transition, which has been excluded from adjusted results.

本季營業收入較上年同期成長10%，達7,370萬美元。營業收入包括 100 萬美元的策略重組和其他費用，主要與領導層過渡有關，這些費用已從調整後的績效中剔除。

Turning now to our consolidated non-GAAP results for the quarter. Adjusted operating income increased 6.9% in the third quarter to $74.7 million, driven by manufacturing efficiencies, volume growth and lower amortization expense, partially offset by unfavorable foreign currency and higher tariffs.

接下來來看我們本季的非GAAP合併業績。第三季調整後營業收入成長 6.9% 至 7,470 萬美元，主要得益於生產效率提高、銷售成長和攤銷費用降低，但部分被不利的匯率和更高的關稅所抵銷。

Adjusted operating margin of 19.6% was flat year-over-year. Excluding the $7.7 million unfavorable foreign currency impact reflected in the third quarter, adjusted operating margin would have been 21.7% and an increase of 210 basis points versus the prior- year quarter.

經調整後的營業利益率為 19.6%，與去年同期持平。如果排除第三季反映的 770 萬美元不利外匯影響，調整後的營業利潤率為 21.7%，比上年同期成長 210 個基點。

Adjusted EBITDA reached a record $86.4 million, an increase of 1.4% versus the prior-year quarter. Adjusted EBITDA margin of 22.7% was down 120 basis points versus the prior year quarter. However, excluding the unfavorable foreign currency impact, the adjusted EBITDA margin was 24.7%, 80 basis points higher than the prior year.

調整後 EBITDA 達到創紀錄的 8,640 萬美元，比去年同期成長 1.4%。經過調整後的 EBITDA 利潤率為 22.7%，比去年同期下降了 120 個基點。然而，若不計不利的匯率影響，調整後的 EBITDA 利潤率為 24.7%，比上年高出 80 個基點。

Over the past 12 months, adjusted EBITDA was $306.9 million or 22% of net sales, a 90 basis points improvement compared with the prior 12-month period. Net interest expense declined $1.1 million to $1.7 million, reflecting higher interest income. Adjusted net income per diluted share increased 6.3% year-over-year to $0.34, setting a new third quarter record.

過去 12 個月，調整後的 EBITDA 為 3.069 億美元，佔淨銷售額的 22%，比前 12 個月提高了 90 個基點。淨利息支出減少 110 萬美元至 170 萬美元，反映出利息收入增加。經調整後的每股攤薄淨收益年增 6.3% 至 0.34 美元，創下第三季新紀錄。

Moving on to quarterly segment performance, starting with WFS. Net sales increased 4.1% to $216.6 million, driven by volume growth in iron gate and specialty valves and higher pricing across most product lines. Similar to the previous quarter, service brass volumes were lower than the prior year quarter, mainly due to backlog normalization and channel and customer destocking. As a reminder, prior year shipments benefited from serving an elevated backlog, which was down more than 50% compared with the prior year.

接下來分析各季度業務板塊的業績，首先從WFS板塊開始。淨銷售額成長 4.1% 至 2.166 億美元，主要得益於鐵閘閥和特種閥門的銷售成長以及大多數產品線價格上漲。與上一季類似，服務黃銅銷售低於去年同期，主要原因是積壓訂單正常化以及通路和客戶去庫存。需要提醒的是，去年的出貨量得益於積壓訂單的減少，而積壓訂單比前一年減少了 50% 以上。

Adjusted operating income increased 4.7% to $60.5 million, reflecting benefits from volume growth, manufacturing efficiencies and lower amortization expense, more than offsetting higher tariffs and lower service brass volumes. Excluding the impacts of higher tariffs mainly associated with specialty valves, price/cost was favorable for the quarter.

經調整後的營業收入成長 4.7% 至 6,050 萬美元，主要得益於銷售成長、生產效率提高和攤銷費用降低，足以抵銷關稅上漲和服務黃銅銷售下降的影響。剔除主要與特種閥門相關的較高關稅的影響，本季價格/成本狀況良好。

Adjusted EBITDA increased 0.3% to $67.1 million and adjusted EBITDA margin was 31% compared with 32.1% in the prior year.

調整後 EBITDA 成長 0.3% 至 6,710 萬美元，調整後 EBITDA 利潤率為 31%，而去年同期為 32.1%。

I'll now move to the quarterly results for WMS. Net sales increased 10.2% to $163.7 million, led by strong volume growth of repair products and hydrants as well as higher pricing. Like the previous quarter, we experienced lower volumes of natural gas distribution products due to similar factors as service brass products at WFS.

接下來我將介紹WMS的季度業績。淨銷售額成長 10.2% 至 1.637 億美元，主要得益於維修產品和消防栓銷量的強勁成長以及價格上漲。與上一季一樣，由於與 WFS 服務黃銅產品類似的因素，我們的天然氣分銷產品銷量有所下降。

Adjusted operating income increased 12.6% to $30.3 million, reflecting benefits from manufacturing efficiencies, volume growth of repair products and hydrants and lower amortization expense, which more than offset unfavorable foreign currency, higher tariffs and lower gas distribution volume. Price/cost was favorable for the quarter, absent higher tariffs, mainly associated with repair products. Excluding the $7.1 million unfavorable foreign currency impact in the quarter, adjusted operating income would have been $37.4 million for the quarter.

經調整後的營業收入增長 12.6% 至 3030 萬美元，這主要得益於生產效率的提高、維修產品和消防栓銷量的增長以及攤銷費用的降低，這些收益足以抵消不利的匯率波動、更高的關稅以及更低的天然氣分銷量。本季價格/成本狀況良好，並未受主要與維修產品相關的較高關稅影響。如果排除本季 710 萬美元的不利外匯影響，調整後的營業收入將為 3,740 萬美元。

Adjusted EBITDA in the quarter increased 3.8% to $35.3 million, with adjusted EBITDA margin decreasing 130 basis points to 21.6%. However, excluding the unfavorable foreign currency impact, the adjusted EBITDA margin was 25.9%, 300 basis points higher than the prior year.

本季調整後 EBITDA 成長 3.8% 至 3,530 萬美元，調整後 EBITDA 利潤率下降 130 個基點至 21.6%。然而，若不計不利的匯率影響，調整後的 EBITDA 利潤率為 25.9%，比上年高出 300 個基點。

Moving on to cash flow. Net cash provided by operating activities for the nine-month period was $135.8 million, a decrease of $13.7 million compared with the prior year period. The decrease was primarily driven by changes in working capital, including decreases in other current liabilities, partially offset by higher net income compared with the prior-year period.

接下來分析現金流。前九個月經營活動產生的淨現金流量為 1.358 億美元，比去年同期減少了 1,370 萬美元。此下降主要受營運資本變動的影響，包括其他流動負債的減少，但部分被淨收入較上年同期成長所抵銷。

Capital expenditures through the first nine months of the year totaled $32.8 million compared with $28 million in the prior year, primarily driven by investments in our iron foundries. Free cash flow for the first nine months of the year was $103 million and 71% of adjusted net income, which is in line with our expectations.

今年前九個月的資本支出總額為 3,280 萬美元，而去年同期為 2,800 萬美元，主要原因是對我們鑄鐵廠的投資。今年前九個月的自由現金流為 1.03 億美元，佔調整後淨收入的 71%，符合我們的預期。

We ended the quarter with $451 million in total debt and $372 million of cash and cash equivalents. Our balance sheet remains strong and flexible with a net debt leverage ratio below 1, no debt maturities until June 2029 and $450 million in senior notes at a 4% fixed interest rate. We had no borrowings under our ABL and ended the quarter with $535 million of total liquidity, including $163 million of availability under the ABL.

本季末，我們的總負債為 4.51 億美元，現金及現金等價物為 3.72 億美元。我們的資產負債表仍然穩健靈活，淨債務槓桿率低於 1，2029 年 6 月之前沒有債務到期，並且有 4.5 億美元的優先票據，固定利率為 4%。我們在 ABL 項下沒有借款，本季末總流動資金為 5.35 億美元，其中 ABL 項下可用資金為 1.63 億美元。

I will now review our updated outlook for 2025. We updated our fiscal 2025 outlook and are increasing our guidance for consolidated net sales by $15 million at the midpoint of the range, which is between $1.405 billion and $1.415 billion. This increase reflects our third quarter performance as well as current expectations for end market demand, orders and price realization.

接下來，我將回顧我們更新後的2025年展望。我們更新了 2025 財年的展望，並將合併淨銷售額預期上調 1,500 萬美元，達到預期範圍的中點，即 14.05 億美元至 14.15 億美元之間。這一成長反映了我們第三季的業績，以及目前對終端市場需求、訂單和價格實現的預期。

We are increasing our annual guidance for adjusted EBITDA by $7.5 million at the midpoint, which is between $318 million and $322 million. At the midpoint of our guidance range, our adjusted EBITDA range achieves a 22.7% margin for the year, reflecting a 100 basis points improvement year-over-year. Our updated adjusted EBITDA guidance range reflects our third quarter performance, lower expected tariffs, targeted price actions associated with tariffs and continued manufacturing efficiencies.

我們將年度調整後 EBITDA 預期值上調 750 萬美元，中位數為 3.18 億美元至 3.22 億美元。按照我們指引範圍的中點，我們調整後的 EBITDA 範圍實現了 22.7% 的全年利潤率，比上年同期提高了 100 個基點。我們更新後的調整後 EBITDA 預期範圍反映了我們第三季的業績、預期關稅的降低、與關稅相關的有針對性的價格措施以及持續的生產效率提升。

We updated our expectations for total SG&A expenses primarily to reflect the impact of unfavorable foreign currency recognized in the third quarter. We are assuming no impact from foreign currency fluctuations in our fourth quarter guidance.

我們更新了對銷售、管理及行政費用總額的預期，主要是為了反映第三季確認的不利外幣匯率影響。我們預期第四季業績指引不會受到外匯波動的影響。

We are maintaining our free cash flow expectations to be more than 80% of adjusted net income in 2025. We are increasing our outlook for our capital expenditures to be between $50 million and $52 million for the year as we continue investing in our future growth and operational efficiencies, including investments in our iron foundries.

我們維持先前的預期，即到 2025 年，自由現金流將超過調整後淨收入的 80%。我們將今年的資本支出預期提高到 5,000 萬美元至 5,200 萬美元之間，因為我們將繼續投資於未來的成長和營運效率，包括投資於我們的鑄鐵廠。

With that, I'll turn it back to Martie for closing comments.

接下來，我將把發言權交還給瑪蒂，請她做總結發言。

Thanks, Melissa. I want to provide a few closing comments before opening it up for Q&A. We are excited about building upon our momentum beyond this year. We have leading brands, improving manufacturing operations, a large installed base and strong channel and customer relationships. We have positioned ourselves to accelerate sales growth and capture the benefits from favorable long-term end market growth trends through product innovation and service.

謝謝你，梅麗莎。在開放問答環節之前，我想做幾點總結。我們對今年的發展勢頭充滿期待，並希望在今年的基礎上繼續前進。我們擁有領先的品牌、不斷改進的生產營運、龐大的用戶基礎以及強大的通路和客戶關係。我們已做好準備，透過產品創新和服務，加速銷售成長，並從有利的長期終端市場成長趨勢中獲益。

With the transition to our new brass foundry completed, we are refining plans and priorities for 2026 and beyond. We will continue to focus on investing in our facilities and employees to drive operational improvements, delivering benefits from past and future capital investments while expanding our capabilities.

隨著我們新的黃銅鑄造廠的過渡工作完成，我們正在完善 2026 年及以後的計劃和優先事項。我們將繼續專注於投資我們的設施和員工，以推動營運改進，從過去和未來的資本投資中獲益，同時擴大我們的能力。

Fueled by our improving commercial and operational execution, we are confident that we can build on our momentum to continue to drive further net sales and margin growth. Despite the dynamic external landscape, I have complete confidence in our teams and their ability to deliver results, which reflect the significant progress we've made in executing the key strategies of our transformation.

憑藉著不斷提升的商業和營運執行力，我們有信心能夠乘勢而上，並繼續推動淨銷售額和利潤率的進一步成長。儘管外部環境瞬息萬變，但我對我們的團隊及其交付成果的能力充滿信心，這反映了我們在執行轉型關鍵策略方面取得的重大進展。

I want to thank all our employees worldwide for their tireless efforts and passion in supporting our customers and communities. They are the reason for our success and why Mueller has been a trusted partner for water utilities for over a century. That concludes our comments.

我要感謝我們全球所有員工為支持我們的客戶和社區所付出的不懈努力和熱情。他們是我們成功的原因，也是穆勒公司一個多世紀以來一直是水務公司值得信賴的合作夥伴的原因。我們的發言到此結束。

Operator, please open the line for questions.

接線員，請開通提問線。

We will now begin the question-and-answer session. (Operator Instructions)

現在開始問答環節。（操作說明）

Mike Halloran, Robert W. Baird.

麥克霍洛蘭，羅伯特W貝爾德。

Hi, good morning, everyone.

大家早安。

Hey, good morning, Mike.

嘿，早上好，麥克。

Hi Marietta, so can we just start with the end markets, what you're seeing out there, level of stability, any signs of improvement, deterioration? And maybe just talk about the utility and residential markets in particular.

嗨，瑪麗埃塔，那我們先從終端市場說起吧，你目前看到的市場狀況如何？穩定性如何？是否有任何改善或惡化的跡象？或許可以重點談談公用事業和住宅市場。

Yes. So I think overall, just kicking off on what we're seeing on the end markets, I'll start off looking at the residential end market. And I think overall, as we look at it, I think as we had expressed in our second quarter call, we had expected that we would start seeing some slowing activity in and around the residential construction market as we moved into our fourth quarter.

是的。所以總的來說，我認為，首先從我們看到的終端市場情況開始，我將首先關注住宅終端市場。總的來說，我認為，正如我們在第二季度電話會議上所表達的那樣，我們預計隨著進入第四季度，住宅建築市場及其周邊地區的活動將會開始放緩。

Certainly, looking at where housing starts are, and we have seen some decline in housing starts. But I think even looking further into that, we have seen a greater decline in and around the single-family housing starts, which is certainly where we see more of the impact on our business with respect to the new residential construction and specifically with new communities being built.

當然，從房屋開工量來看，我們已經看到房屋開工量下降。但我認為，即使進一步深入研究，我們也發現單戶住宅開工量出現了更大的下滑，這無疑對我們的業務產生了更大的影響，尤其是在新建住宅和新建社區方面。

I think generally, as we had thought that there would just be more caution coming from builders. I think as we see certainly the macro uncertainty, interest rates have remained high from a mortgage perspective. And I think certainly associated with that uncertainty, buyers have been somewhat hesitant in the market.

我認為總的來說，正如我們之前所預料的那樣，建築商會更加謹慎。我認為，鑑於目前宏觀經濟的不確定性，從抵押貸款的角度來看，利率一直居高不下。我認為，正是由於這種不確定性，買家在市場上一直有些猶豫不決。

So pretty much consistent with the guidance that we gave in May. We did expect a slowdown in our fourth quarter. That's something that could extend into next year. And I think certainly, wherever interest rates play out, could influence that particular view. Paul, do you want to comment on municipal?

所以這與我們五月給的指導意見基本一致。我們確實預料到第四季增速會放緩。這種情況可能會持續到明年。而我認為，利率的走勢肯定會影響這種觀點。保羅，你想對市政問題發表意見嗎？

Mike, on the municipal repair and replacement market, we still see that as very strong. As a reminder, that's the largest portion of our end markets. The need to repair and replace the aging pipe and infrastructure reports -- allows us to really think that's going to be a solid market going forward. The ability despite the higher interest rates to find the funding for these projects continues to be coming through in our business, and we think the muni market remains strong and resilient right now.

麥克，在市政維修和更換市場方面，我們仍然認為該市場非常強勁。再次提醒，這是我們終端市場中佔比最大的部分。報告顯示，需要維修和更換老化的管道和基礎設施——這讓我們相信，未來這將是一個穩健的市場。儘管利率較高，但我們的業務仍能找到這些項目的資金，我們認為市政債市場目前依然強勁且具韌性。

Thanks for that. And then follow-up is on the margin side of things. Melissa's prepared remarks, it sounds like the FX headwind was a onetime in nature thing for the third quarter in the WMS segment. If I think about the implied margins for the fourth quarter, is that the right jumping off point into next year? I mean you've had a lot of moving pieces in the last couple of years in the margins for both segments. And acknowledging that you're going to have seasonal margin levels as you work forward. But is that the right jumping off point? Or are there more moving pieces that we need to consider in the fourth quarter margin run rate?

謝謝。而後續工作則屬於次要環節。根據梅麗莎事先準備好的發言稿，聽起來外匯逆風對 WMS 部門第三季的影響是一次性的。如果我考慮第四季的隱含利潤率，這是否是展望明年的正確起點？我的意思是，在過去幾年裡，這兩個領域都有很多因素在不斷變化。並且要意識到，隨著業務的推進，利潤率會受到季節性因素的影響。但這真的是正確的切入點嗎？或者，在影響第四季利潤率的因素中，是否還有其他需要考慮的變數？

So let me sort of kick off. As we think about our 2026, I'll say, first of all, that our full guidance with respect to 2026 will come with our fourth quarter call, which will be in the November time frame.

那麼，就讓我來拋磚引玉吧。展望 2026 年，首先我要說的是，我們對 2026 年的完整指導意見將在第四季度電話會議上公佈，該會議將在 11 月舉行。

I think certainly, looking at where -- what our results are through the first 9 months of the year, we are on track for another record year. And I think with the anticipated sales growth and demonstrated improvement in our gross margin, we certainly are going to look to build on that with our continued focus in and around both our commercial and our operational execution.

我認為，從今年前 9 個月的業績來看，我們肯定能夠再創佳績。我認為，隨著預期的銷售成長和毛利率的顯著提高，我們肯定會繼續專注於商業和營運執行，並在此基礎上取得更大的成就。

With -- looking at gross margin for 2025, if you want to look at where the implied gross margin would be on a full year basis based on the guidance that we've just given you at the midpoint, it would be approaching 37%. I think certainly, as we look on a -- look into

展望 2025 年的毛利率，如果您想了解根據我們剛才給出的指導意見，全年隱含毛利率的中點是多少，它將接近 37%。我認為當然，當我們審視——審視

2026, as we said, we do expect that we'll get the benefits from the elimination of the duplicative costs by closing our brass foundry. We did begin to see some of those benefits in this quarter, expect to continue those into next year -- and into the fourth quarter and next year as well.

正如我們所說，我們預計到 2026 年，關閉黃銅鑄造廠將消除重複成本，從而帶來收益。本季我們確實開始看到一些這樣的好處，預計這些好處將延續到明年——甚至延續到第四季和明年。

I think additionally, in and around our repair business, as we have moved through the year and certainly did recognize year-over- year improvements in our repair business as we have increased our production and are normalizing the backlogs as well as we have implemented price increases there, and those will also help mitigate the tariffs.

此外，我認為，在我們維修業務的各個方面，隨著我們這一年的發展，我們確實看到了維修業務逐年改善的趨勢，因為我們提高了產量，正在逐步解決積壓問題，並且我們也提高了價格，這些都將有助於緩解關稅的影響。

I think with respect to some of the other considerations, Paul talked about what the current view is in and around tariffs. So as we stand today, certainly would do expect that we will have higher tariffs as we move into our 2026 as well. But we have implemented targeted price increases as well as supply chain initiatives to offset the projected higher tariffs.

我認為，關於其他一些考慮因素，保羅談到了目前對關稅的看法。所以就目前情況來看，我們當然可以預期，到 2026 年，關稅也會上漲。但我們已經實施了有針對性的價格上漲以及供應鏈方面的舉措，以抵消預期上漲的關稅。

Thanks, Marietta, appreciate it.

謝謝你，瑪麗埃塔，非常感謝。

Brian Lee, Goldman Sachs.

Brian Lee，高盛集團。

Hi team, this is Nick Cash on for Brian. Congrats on the quarter. Honestly, just kind of wondering about the legacy brass foundry. So gross margins, at least in the segment were down about 70 bps year-over-year. I think you mentioned on lower volumes and tariff impact as well despite the step-up. Would you, one, be able to give any color on, I guess, how large of a margin headwind both these were separately?

大家好，我是Nick Cash，替Brian為您報道。恭喜你本季取得佳績。說實話，我只是有點好奇那家歷史悠久的黃銅鑄造廠。因此，至少在該領域，毛利率比去年同期下降了約 70 個基點。我認為你也提到了銷量下降和關稅影響，儘管關稅有所提高。你能不能透露一下，這兩場風分別帶來了多大的逆風？

Yes. So on the legacy brass foundry, we had talked about expecting to see benefits starting in the second half of the year, and we had anticipated that we would see between 80 basis points and 100 basis points of improvement as the back half of the year progressed due to the closure of the legacy brass foundry. And what was the second part of your question?

是的。因此，關於這家老舊的黃銅鑄造廠，我們曾討論過預計從下半年開始就會看到成效，並且我們預計，隨著這家老舊黃銅鑄造廠的關閉，下半年業績將改善 80 到 100 個基點。你問題的第二部分是什麼？

No, I was just wondering how much of -- again, it stepped up pretty meaningfully. I was just wondering how large of the margin headwind was the tariff impact versus lower service brass volumes?

不，我只是想知道有多少——再說一遍，它有了相當大的提升。我只是想知道關稅的影響與服務黃銅產量下降相比，對利潤率造成的負面影響有多大？

Yes. For WFS, that is where our specialty valve business resides, which took the large portion of the tariff impact in the quarter.

是的。對於 WFS 而言，我們的特種閥門業務就位於此，該業務在本季度承受了關稅影響的大部分。

Got you. Got you. No, that's helpful. And then real quick on FX. I guess as currency normalizes, can we expect a meaningful FX tailwind next year in 3Q? And I guess could that contribute again to be a tailwind to margins into '26?

抓到你了。抓到你了。不，這很有幫助。然後快速地在FX頻道播報一下。我認為隨著貨幣匯率正常化，我們能否期待明年第三季出現顯著的外匯利好？我猜想這是否會在 2026 年再次成為提振利潤率的利好因素？

With FX, the reason we called it out this quarter was because this is the first time it has meaningfully changed to this degree. There was a roughly a 10% decrease of the USD versus the Israeli shekel. And with that, we saw that substantial large impact.

外匯市場之所以在本季特別提及，是因為這是它首次發生如此顯著的變化。美元兌以色列新謝克爾匯率下跌了約10%。由此，我們看到了巨大的影響。

As far as seeing a benefit next year, that would largely just depend on what the rates move at that time. However, to contextualize how insignificant the movement typically is, the full year impact of FX is $7.6 million, and the third quarter impact was $7.7 million. So there was a roughly $1.1 million impact for the first 6 months of the year and then the 10% degradation of the USD versus the Israeli shekel drove that $7.7 million impact in third quarter.

至於明年能否從中受益，很大程度上取決於屆時的利率走勢。然而，為了說明這種波動通常有多微不足道，外匯全年影響為 760 萬美元，第三季影響為 770 萬美元。因此，今年前 6 個月的影響約為 110 萬美元，然後美元對以色列新謝克爾貶值 10%，導致第三季的影響達到 770 萬美元。

Awesome, appreciate the call thank you.

太好了，謝謝你的來電。

Bryan Blair, Oppenheimer.

布萊恩布萊爾，奧本海默。

Thank you. Good morning, everyone.

謝謝。各位早安。

Good morning.

早安.

Alright, to level set a bit more on your near-term outlook and the realistic jumping off point for fiscal '26. We obviously have your updated guide, so we can back into Q4 sales rate. If we were to round up slightly to 4% at midpoint for Q4, how are you thinking about segment contribution? What should we contemplate for volume versus price? And then how much carryover price would that imply for fiscal '26, irrespective of your typical pricing actions next year?

好的，為了更清晰地闡明您的近期前景以及 2026 財年的實際起點。我們顯然已經拿到了你們更新後的指南，所以我們可以回溯到第四季的銷售率。如果我們把第四季的成長率略微向上取整到 4%（取中間值），您認為該細分市場的貢獻如何？我們該如何權衡銷售量和價格之間的關係？那麼，撇開明年的典型定價策略不談，這意味著 2026 財年將有多少結轉價格？

Right. So as Martie said previously, we'll give some incremental color on our '26 guidance when we release our year-end results. That being said, I'll go ahead and share some information related to our segments for fourth quarter. Based on the growth we've seen so far year-to-date, with WFS, we would expect to see slower growth in fourth quarter, and that's as we encounter the year-over-year service brass headwind, and that will be offset by iron gate valves and specialty valves.

正確的。正如 Martie 之前所說，我們將在發布年終業績報告時，逐步公佈我們對 2026 年的業績預期。話雖如此，我還是會分享一些與我們第四季業務部門相關的資訊。根據我們今年迄今所看到的成長情況，WFS 預計第四季度成長速度將放緩，這是因為我們遇到了同比服務黃銅的不利因素，但鐵閘閥和特殊閥門將抵消這一不利因素。

We would expect to see a little bit of a lower margin in the fourth quarter than we have seen, and that's primarily due to the tariffs. We would expect to see roughly around 29% for WFS in fourth quarter. And SG&A will be slightly lower based on the amortization benefit that we'll be experiencing from the customer amortization intangible.

我們預計第四季度的利潤率會比之前略低，這主要是由於關稅的影響。我們預計第四季度 WFS 的成長率約為 29%。由於我們將從客戶攤提無形資產獲得攤銷收益，銷售、一般及行政費用將略有下降。

As we move on to WMS, we'll continue to see the performance that we saw in third quarter and fourth quarter as the repair and installation business has lapped that headwind that we saw last year related to the war. We'll also have lower air freight costs associated with that period of time as well. We would expect to see margin improvements based upon that. And we'll see lower FX in fourth quarter. We have not assumed any FX in our fourth quarter for currency fluctuations.

隨著我們轉向 WMS，我們將繼續看到第三季和第四季所看到的業績，因為維修和安裝業務已經克服了去年與戰爭相關的不利因素。在此期間，我們的空運成本也會降低。基於此，我們預期利潤率會有所提高。第四季我們將看到外匯匯率走低。我們在第四季的外匯預算中沒有提列任何匯率波動的影響。

And I'll just add maybe a little bit in and around the pricing. So just as a reminder, we did announce price increases back in February. Just from that timing perspective, that is typically the time that we have announced our price increases. So those were price increases that went into effect in the February 2025 time frame before the announcement of any of the tariffs.

我可能會在定價方面稍作補充。再次提醒一下，我們早在二月就宣布過漲價。從時間上看，這通常也是我們宣布提價的時間。因此，這些價格上漲是在 2025 年 2 月期間生效的，早於任何關稅的宣布。

We have discussed how we have implemented targeted pricing actions to address what we see as our outlook in and around tariffs. So the targeted price actions as well as a lot of the initiatives that our supply chain teams have taken will -- are helping to offset what those tariff costs are anticipated to be based on what we know today.

我們已經討論瞭如何實施有針對性的定價措施，以應對我們認為的關稅前景。因此，有針對性的價格措施以及我們供應鏈團隊採取的許多舉措，將有助於抵消根據我們目前所知預計會產生的關稅成本。

So as we move into 2026, you certainly have the carryover from the February price increases. And we also would expect to -- assuming nothing changes on tariffs, we would expect to get benefit from those targeted pricing actions, which are largely in and around our specialty products and our repair products. As we said, we expect to get those benefits moving in the fourth quarter because those were largely in response to the higher tariff environment.

因此，進入 2026 年，2 月的價格上漲的影響肯定會延續下去。我們也預期——假設關稅沒有變化——我們將從這些有針對性的定價措施中受益，這些措施主要針對我們的特色產品和維修產品。正如我們所說，我們預計這些收益將在第四季度開始顯現，因為這些收益主要是為了應對更高的關稅環境。

Okay. Appreciate the color there. And out of curiosity, if we look forward, how is your team thinking about segment gross profitability? If we look back over the last 5 years or so, you've had WMS a little over 100 basis points above WFS, but that's obviously inclusive of the foundry transition period. So with the WFS-centric benefits going forward, I'm just curious if you're thinking that segment gross margin will shake out roughly even, implied still be going up on both sides. Or if your team perceives the dynamic differently in some way?

好的。欣賞那裡的色彩。出於好奇，展望未來，您的團隊是如何看待業務部門的毛利的？回顧過去 5 年左右的時間，WMS 的價格比 WFS 高出 100 多個基點，但這顯然包含了代工過渡期。因此，考慮到 WFS 帶來的種種好處，我只是好奇您是否認為該業務板塊的毛利率最終會大致持平，也就是說雙方的毛利率都將繼續上升。或者你的團隊對這種動態的看法有所不同？

As we think about segment profitability, we do expect that the WMS segment will see improved margins related to the repair and installation. While we're not going to get back to historical margins on repair and installation in '25, we do expect in '26, we will get closer to where we were pre-war. And as far as the exiting of the legacy foundry, we continue to make improvements as the foundry gets more and more efficient and expect that we would continue to see the benefits related to that exit.

當我們考慮各業務板塊的獲利能力時，我們預期 WMS 業務板塊的維修和安裝業務的利潤率將會提高。雖然我們不可能在 2025 年恢復到戰前維修和安裝的水平，但我們預計在 2026 年，我們將更接近戰前的水平。至於傳統代工廠的退出，隨著代工廠效率的不斷提高，我們將繼續進行改進，並期望繼續看到與退出相關的益處。

Okay, I'll leave it there. Thank you.

好了，我就說到這裡。謝謝。

Thank you. Our next question comes from Deane Dray with RBC Capital Markets. Your line is open. You ask your question.

謝謝。下一個問題來自加拿大皇家銀行資本市場的迪恩·德雷。您的線路已開通。你提出你的問題。

Thank you. Good morning, everyone.

謝謝。各位早安。

Good morning.

早安.

Hey, can we just close the loop on the pricing question and the actions taken in February, have you sized those? And how much of those -- that pricing has been realized?

嘿，關於定價問題和二月採取的措施，我們能不能總結一下？你們都評估過規模了嗎？這些定價中有多少已經實現？

Hey, good morning, Deane. Just as a reminder, the price in February was part of our annual price increase. The further price increases that we went out with when we did the -- when the announced tariffs took place, obviously, we had to pivot in some respect from what was associated with the China tariffs, working with our customers closely to adjust some of those prices with our reduction from the 145%, where we stood a few months ago.

嘿，早上好，迪恩。再次提醒，2月份的價格上漲是我們年度價格上漲的一部分。當我們宣布加徵關稅時，我們進一步提高了價格。顯然，我們不得不從某些方面調整與中國關稅相關的策略，與客戶緊密合作，將部分價格從幾個月前的 145% 下調。

So in terms of where we are right now then, we have targeted pricing, as Martie talked about, across our specialty valve product line associated with the tariffs that's now enacted right now. And then from our Krausz product line, we have pricing that's associated with the reciprocal tariff from Israel plus the Section 232 tariff for the steel and aluminum.

所以就我們目前的情況而言，正如 Martie 所說，我們已經針對目前實施的關稅，對我們的特殊閥門產品線進行了有針對性的定價。然後，從我們的 Krausz 產品線來看，我們的定價與以色列的互惠關稅以及鋼鐵和鋁的第 232 條款關稅有關。

Got it. Did you see any impact of prebuy, any kind of pull forward in demand, trying either yourself positioning inventory, but customers trying also to get ahead of these price increases?

知道了。您是否觀察到預購的影響，或任何提前提振需求的跡象？無論是您自己調整庫存策略，還是客戶試圖提前應對價格上漲，您是否都觀察到了這些跡象？

No, we look -- we monitor that closely. It's difficult to get a perfect answer. But where we stand right now, we've not seen any meaningful prebuy from an order perspective.

不，我們會密切注意。很難得到完美的答案。但就目前情況來看，從訂單角度來看，我們還沒有看到任何有意義的預購行為。

Good. And you made a reference about backlog normalized. So has that all run its course? And can you give us a sense of where backlog stands today with regard to visibility?

好的。你提到了積壓工作標準化。這一切就此結束了嗎？您能否簡單介紹一下目前積壓工作的可見度？

Yes. If we think about our short-cycle business, we've seen a kind of small change of reduction in Q3, mainly related to the repair business as the team in Israel and Krausz continue to do a fantastic job of maintaining the ramped-up production that we put in place to address the backlog that became elevated. With regards then to the longer-term project business, we have a healthy backlog moving forward.

是的。如果我們考慮一下我們的短期業務，我們在第三季度看到了一些小幅的下滑，主要與維修業務有關，因為以色列團隊和 Krausz 繼續出色地維持著我們為解決積壓訂單而實施的增產措施。至於長期專案業務，我們目前有充足的訂單儲備。

Do you size that, Paul?

保羅，你知道它的尺寸嗎？

We generally size it on an annual basis more, but I think we've really sort of worked through, as Paul said, most of that short-cycle backlog. I think we called out still a little bit of the year-over-year impact coming from service brass and coming from natural gas products.

我們通常按年度來估算規模，但我認為，正如保羅所說，我們已經基本解決了大部分短期積壓的工作。我認為我們已經指出了一些來自服務部門高層和天然氣產品的同比影響。

But I think we're back to what we deem normalized with respect to the short cycle. And then where we typically do have a longer backlog is with the specialty valve business and that product line. And I would say when we look at where that backlog is today, that's fairly normal in terms of the overall size.

但我認為，就短期週期而言，我們已經回到了我們認為的正常狀態。而我們通常積壓訂單較多的則是特種閥門業務和該產品線。我認為，就目前的積壓情況而言，這個規模相當正常。

Okay, thank you.

好的，謝謝。

(Operator Instructions)

（操作說明）

Joe Giordano, Cowen & Company.

Joe Giordano，Cowen & Company。

Hey guys, thanks for taking my questions.

各位好，感謝你們回答我的問題。

You mentioned working with customers after China went down. Like yes, I was just curious like what the impact of some of these tariffs had on demand levels at all on volume side and like how aggressively people are pushing back on price that was installed before like the tariffs were deescalated.

你曾提過在中國經濟衰退後與客戶合作。是的，我只是好奇這些關稅對需求水準（尤其是銷售方面）產生了什麼影響，以及人們在關稅下調後如何積極抵制之前徵收的價格。

Hey, good morning, Joe, in terms of pushback on price, it was only really around what I discussed earlier when the China tariffs was reduced from the 145% to 30% right now. So we work closely with our customers and adjusted our price accordingly around those particular product lines that were impacted. Again, as I said earlier, from a demand perspective, we are not seeing any meaningful pull-ahead from an order perspective. So I would say no real change from that perspective right now.

嘿，早上好，喬。關於價格方面的阻力，實際上只和我之前討論過的中國關稅從 145% 降至目前的 30% 的情況類似。因此，我們與客戶緊密合作，並針對受影響的特定產品線相應地調整了價格。正如我之前所說，從需求角度來看，我們沒有看到訂單方面有任何實質的提前需求。所以從這個角度來看，目前不會有實質的改變。

Any updated commentary on some of the federal kind of infrastructure funding and impact to underlying market conditions and whether you see that coming sooner or later than you thought, maybe earlier this year?

對於聯邦政府的基礎建設資金及其對市場基本面的影響，您有什麼最新的評論嗎？您認為這些資金的到位時間是比您預想的要早還是晚，也許會在今年年初？

Yes. No. So as we look out on the infrastructure bill, just as a quick reminder, when we have given our guidance, I would really say throughout our fiscal 2025, we had always said that we really didn't anticipate that we would see any benefits in our '25 coming from the infrastructure bill.

是的。不。所以，當我們展望基礎設施法案時，我想快速提醒一下，在我們給出指導意見時，我想說的是，在整個 2025 財年，我們一直表示，我們並不預期會在 2025 年從基礎設施法案中獲得任何好處。

I think the -- it has been very slow, I think, overall, in terms of the allocations coming out. I think -- I have seen some further reports that actually particularly talked about how some of the award volumes declined further during the first half of this calendar year 2025. And I think that's just largely reflective of a lot of the other activity that we saw with respect to executive orders, certainly staff reductions and then some uncertainty in and around where the regulatory environment may settle out with respect to some of the contaminants. So I think overall, I think it has even slowed down a little bit through the first 6 months of the year.

我認為，就撥款發放而言，整體速度非常緩慢。我認為——我看到了一些進一步的報道，這些報道特別提到，在 2025 年上半年，一些獎項的數量進一步下降。我認為這在很大程度上反映了我們看到的其他一些活動，例如行政命令、人員裁減，以及某些污染物監管環境可能最終確定下來的一些不確定性。所以我覺得整體而言，今年前六個月的成長速度甚至有所放緩。

Additionally, one of the other areas that we had talked about is with the Build America, Buy America provisions that are built in, and this is an area where we have continued to work with our customers and in and around compliance. But those compliance regulations are stricter than what we saw with respect to the American Iron and Steel Act. So I think that's also probably influenced things a little bit.

此外，我們討論過的另一個領域是「建立美國，購買美國貨」條款，這是我們一直與客戶合作，並在合規方面不斷努力的領域。但這些合規規定比我們之前看到的《美國鋼鐵法》的規定嚴格得多。所以我覺得這可能也對事情產生了一些影響。

So what I would say is that it has been probably a little bit slower, could be even a few years out still before all those allocations come in. All of that said, we still believe that as we look at the infrastructure bill, it was a bipartisan bill. It certainly calls out the awareness and the need for investment in water infrastructure due to the accelerating aging of water infrastructure that we're seeing. I think additionally, we do see a number of communities that are starting and looking at the lead service line replacements, which was one of the specific allocations under the infrastructure bill.

所以我想說的是，進度可能有點慢，甚至可能還需要幾年才能完成所有撥款。綜上所述，我們仍然認為，從基礎建設法案的角度來看，這是一項兩黨共同支持的法案。它無疑凸顯了人們對水利基礎設施老化加速這一問題的認識，以及對水利基礎設施進行投資的必要性。此外，我認為我們也看到許多社區開始著手更換鉛製供水管道，這是基礎設施法案中的一項具體撥款。

So I would say, overall, even though we do see the -- it sort of slow, we still are very excited about the awareness that it brings, the potential impact for increased funding levels. And I think it's also worth calling out that there are a number of states that do have some ballot issues that they're putting on for votes to include additional water-related projects, looking at city -- sorry, states such as California, Texas, Colorado and Minnesota.

所以總的來說，儘管我們看到——它有點放緩，但我們仍然對它帶來的意識提升以及對增加資金水平的潛在影響感到非常興奮。我還想指出，一些州正在進行一些投票表決，希望透過增加與水相關的項目來增加撥款，例如加利福尼亞州、德克薩斯州、科羅拉多州和明尼蘇達州。

Maybe if I could just sneak in a follow-up on that. Like I think that was a totally fair answer. And I know you're not guiding to like this stuff driving your business, right, in the near-term future. But like I guess at what point do we have to start haircutting stuff? And maybe if it's taken years, this stuff doesn't happen, and does it impact like your spending decisions as you think to kind of gear up for this big influx of spending that doesn't come? Like do you have to alter your CapEx outlook for the next couple of years like to adapt to something that looks like it's going to be there but might not?

或許我可以偷偷補充一下後續狀況。我覺得這個回答完全合理。我知道你近期內不會讓這類事情推動你的業務發展，對吧。但我想說的是，我們到底什麼時候才需要開始剪頭髮之類的事情呢？也許經過數年時間，這類事情最終都不會發生，那麼當你以為會迎來一波並未到來的消費高峰時，這是否會影響你的消費決策呢？例如，你是否需要調整未來幾年的資本支出預期，以適應一些看似會存在但實際上可能不會發生的事情？

Let me -- I'm going to start off on that and then may turn it over to Paul to talk specifically on CapEx. But look, as we have said, I think, with the infrastructure bill, I think it's more important as we look at the macro environment and the increasing awareness and increasing need in and around aging water infrastructure.

讓我先從這方面談起，然後可能會把話題交給保羅，讓他專門談談資本支出。但是，正如我們所說，我認為，就基礎設施法案而言，當我們審視宏觀環境以及人們對老舊供水基礎設施日益增長的認識和需求時，我認為它就顯得更加重要了。

So I think the question really comes, where does that funding come from? And I think as we all know, the funding largely has always been at the local level in terms of funding from water infrastructure. And certainly, the sources for that are the user rates and fees, and you continue to see overall an average increase in water rates that are paid by consumers and businesses. And then that's supplemented with some state and local funding.

所以我覺得真正的問題是，這些資金從哪裡來？而且我認為我們都知道，水利基礎設施的資金主要一直來自地方層級。當然，這其中的資金來源是用戶費率和費用，而且你會發現消費者和企業支付的水費總體上持續上漲。此外，還有一些州和地方政府的資金補充。

So you can get into the question of if the money comes largely through expanded state revolving funds that pass money down, there could always be that question, well, is that going to be a substitute of dollars that otherwise would have been spent at the local level and/or is it incremental dollars.

因此，你可以探討這樣一個問題：如果這筆錢主要來自擴大的州循環基金，而這些基金又向下傳遞資金，那麼總會有這樣一個問題：這筆錢是否會取代原本會在地方層級花​​費的資金，或者它只是增加的資金。

And I think it's sort of hard to completely dissect that, but I think the backdrop of the need for the investment remains. And I think importantly, all the conversation and awareness in and around this just helps support the local municipalities in making those needed investments. To take it down another level to specifically how does this influence what we are looking at in terms of our capital investments, Paul, if you want to touch on what we are thinking there.

我覺得很難完全剖析這一點，但我認為投資需求的背景依然存在。而且我認為，重要的是，圍繞這一主題的所有討論和意識都有助於支持地方政府進行必要的投資。保羅，為了更深入地探討一下這會如何影響我們對資本投資的看法，如果你願意談談我們在這方面的想法的話。

Yeah. Thanks, Martie. And just to follow on from Martie's point, even though the infrastructure bill may be slower than we anticipate, we still know that from a macro perspective, and our aging water infrastructure is work that needs to take place. Now when we think about our capital, we had the large capital projects, which are behind us.

是的。謝謝你，瑪蒂。接著 Martie 的觀點，儘管基礎設施法案的通過速度可能比我們預期的要慢，但我們仍然知道，從宏觀角度來看，我們老化的水利基礎設施是需要進行的。現在當我們回顧我們的資本時，我們曾經有過一些大型資本項目，但這些項目都已經過去了。

But we do have two mature iron foundries, which is going to need some capital over the next few years to increase efficiencies and be ready from a growth perspective and capacity expansion. So that's what you'll be hearing more about on the next call is really how we plan to have a higher capital in '26 and '27 to address the aging mature foundries, capital work required there.

但我們確實有兩家成熟的鑄鐵廠，未來幾年需要一些資金來提高效率，並為成長和產能擴張做好準備。所以，在下次電話會議上，你們將會聽到更多關於我們計劃在 2026 年和 2027 年如何增加資本投入的內容，以解決老舊成熟鑄造廠的問題，以及那裡所需的資本投入。

Very good. Thank you.

非常好。謝謝。

At this time, I'm showing no further questions. I'll turn the call back over to Martie for closing comments.

目前，我不再提出其他問題。我將把電話轉回給瑪蒂，請她做總結發言。

Very good. Thank you, operator. I want to thank everyone who joined us on our call today. As we said, we're very pleased with our results for the third quarter, even with all the uncertainty that we have seen in the external environment and the challenges that we are addressing with the recently enacted tariffs.

非常好。謝謝接線生。我要感謝今天所有參加我們電話會議的人。正如我們所說，儘管外部環境充滿不確定性，而且我們正在應對最近實施的關稅帶來的挑戰，但我們對第三季的業績非常滿意。

With the updated annual guidance that we have just given, we are on track for another year of record results and are certainly excited about the momentum we have as we move into our 2026. We will continue to focus on successfully executing with our commercial, supply chain and operational teams and believe that we are well positioned to continue to mitigate the impact of the tariffs as well as continue focusing on enhancing our manufacturing efficiencies.

根據我們剛發布的最新年度業績指引，我們預計會再創佳績，並且對我們邁向 2026 年的良好勢頭感到非常興奮。我們將繼續專注於與我們的商業、供應鏈和營運團隊成功執行各項任務，並相信我們有能力繼續減輕關稅的影響，同時繼續專注於提高我們的生產效率。

Again, I want to call out the hard work and dedication of our employees. They have been and will remain the driving force behind our success. So I thank you all, and we look forward to speaking with you again with our fourth quarter results when they are announced in November.

我再次要表揚我們員工的辛勤工作和奉獻精神。他們一直是並將繼續是我們成功的驅動力。因此，我感謝大家，我們期待在11月公佈第四季業績時再次與大家交流。

And with that, we'll conclude our call, operator.

好了，我們的通話到此結束，接線生。

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

謝謝。今天的會議到此結束。您可以在此時斷開線路。