Enpro Inc (NPO) 2024 Q4 法說會逐字稿

Greetings and welcome to the Enpro Inc Q4 and full year 2024 earnings conference call and webcast. (Operator Instructions).

問候並歡迎參加 Enpro Inc 2024 年第四季度和全年收益電話會議和網路廣播。（操作員指令）。

It's my pleasure to welcome over to James Gentile, Vice President of best relations. Please go ahead, James.

我很高興歡迎最佳關係副總裁詹姆斯金蒂爾 (James Gentile)。請繼續，詹姆斯。

Thanks, Kevin, and good morning, everyone. Welcome to Enpro's 4th quarter and full year 2024 earnings conference call. I will remind you that our call is being webcast at empro.com, where you can find the presentation that accompanies this call.

謝謝，凱文，大家早安。歡迎參加 Enpro 2024 年第四季和全年財報電話會議。我要提醒您，我們的電話會議將在 empro.com 上進行網路直播，您可以在那裡找到本次電話會議的簡報。

With me today is Eric A. Vaillancourt, our President and Chief Executive Officer, and Joseph Bruderek, executive Vice President and Chief Financial Officer.

今天與我一起的是我們的總裁兼執行長 Eric A. Vaillancourt 和執行副總裁兼財務長 Joseph Bruderek。

During today's call, we will reference a number of non-gap financial measures. Tables reconciling the historical non-gap measures to the comparable GAAP measures are included in the appendix to the presentation materials. Also, a friendly reminder that we will be making statements on this call that are not historical facts and that are considered forward-looking in nature.

在今天的電話會議中，我們將參考一些非缺口財務措施。將歷史非差距指標與可比較 GAAP 指標進行調節的表格包含在簡報資料的附錄中。另外，友情提醒，我們在這次電話會議上發表的聲明不是歷史事實，而是前瞻性的。

These statements involve a number of risks and uncertainties, including those described in our filings with the SEC, including our most recent Form 10k.

這些聲明涉及許多風險和不確定性，包括我們向美國證券交易委員會提交的文件中所述的風險和不確定性，包括我們最新的 10k 表格。

Also note that during this call we will be providing full year 2025 guidance which excludes unforeseen impacts from these risks and uncertainties. We do not undertake any obligation to update these forward-looking statements. It is now my pleasure to turn the call over to Eric A. Vaillancourt, our President and Chief Executive Officer. Eric.

另請注意，在本次電話會議中，我們將提供 2025 年全年指引，其中不包括這些風險和不確定性造成的不可預見的影響。我們不承擔更新這些前瞻性陳述的任何義務。現在我很高興將電話轉給我們的總裁兼執行長 Eric A. Vaillancourt。埃里克。

Thanks James, and good morning, everyone.

謝謝詹姆斯，大家早安。

Thank you for joining us today as we review our results for the 4th quarter in full year 2024 and provide a business update that introduces our outlook for 2025.

感謝您今天加入我們，我們將回顧 2024 年全年第四季的業績，並提供介紹 2025 年展望的業務更新。

Before we get started, I would like to thank our colleagues across the company for delivering another great year of results. I very much appreciate all your hard work and the remarkable contributions that you make each day to enable our company's success.

在開始之前，我想感謝公司全體同事又一年的輝煌成績。我非常感謝您每天的辛勤工作以及為使我們公司取得成功所做的卓越貢獻。

I look forward to continuing our work together as we empower technology with purpose and create opportunities for each of us to flourish and thrive. Now on to our results.

我期待著繼續我們的合作，共同為科技賦能，為我們每個人創造繁榮與發展的機會。現在來看看我們的結果。

Enpro performed well in 2024, executing effectively despite persistent weakness in semiconductor capital equipment demand and a sharp decline in commercial vehicle OEM sales.

Enpro 在 2024 年表現出色，儘管半導體資本設備需求持續疲軟且商用車 OEM 銷售急劇下滑，但仍有效執行。

Excellent performance across ceiling techno technology segment offset an overall soft demand environment in AST, driving improved bottom line results year over year.

天花板技術部門的出色表現抵消了 AST 整體疲軟的需求環境，推動了利潤表現的逐年改善。

Thanks to the inherent balance and quality and portfolio and the resilience of our business model, we generate a strong free cash flow in 2024 and ended the year with a net leverage ratio of 1.6 times, well within our desired range n ceiling technologies.

由於內在的平衡、品質和投資組合以及我們業務模式的彈性，我們在 2024 年產生了強勁的自由現金流，並以 1.6 倍的淨槓桿率結束了這一年，遠低於我們期望的上限技術範圍。

Our excellent performance and efficient operations drove an adjusted segment EBITDA margin of over 32% for the year.

我們出色的業績和高效的營運推動全年調整後分部 EBITDA 利潤率超過 32%。

We are very pleased with the strength of the segment and how our teams are positioning the businesses to drive above market growth by leveraging our applied engineering capabilities.

我們對該部門的實力感到非常滿意，也很高興看到我們的團隊如何利用我們的應用工程能力來定位業務以推動超越市場的成長。

And specification positions to deliver important solutions to our customers in areas where we have clear technology and process advantages.

並在我們擁有明顯技術和製程優勢的領域規範定位，為客戶提供重要的解決方案。

Our efforts to improve and evolve ceiling technologies to position the segment for world class performance have unlocked significant value.

我們努力改進和發展天花板技術，以使該領域達到世界一流的性能，並釋放了巨大的價值。

In 2019, when we embarked on our portfolio optimization strategy, the ceiling adjusted segment EBITDA margin approximated 17%. Through this purposeful and structural transformation, we have created a group of businesses that can deliver adjusted segment EBITDA margins around 30% consistently.

2019年，當我們開始實施投資組合優化策略時，上限調整後的分部EBITDA利潤率約為17%。透過這種有目的的結構性轉型，我們創造了一批能夠持續實現調整後分部 EBITDA 利潤率在 30% 左右的業務。

Now that this portion of our evolution is complete, we are leaning into our strengths and our best growth opportunities, identifying adjacent markets for our products to drive long-term organic growth while considering selective acquisitions that would expand the segment's capabilities.

現在，我們發展的這一部分已經完成，我們將依靠我們的優勢和最佳的成長機會，為我們的產品確定相鄰的市場，以推動長期有機成長，同時考慮選擇性收購，以擴大該部門的能力。

At AST, revenue ended the year down roughly 10% as weakness in semiconductor capital equipment spending continued, partially offset by the strength of our solutions serving leading edge applications. The low point of AST's revenue in 2024 came in the first quarter, and then and then sales modestly improved sequentially each quarter as the year progressed.

在 AST，由於半導體資本設備支出持續疲軟，年底收入下降約 10%，但我們服務於前沿應用的解決方案的強勁表現部分抵消了這一下降。AST 2024 年的營收最低點出現在第一季度，隨後隨著時間的推移，每季的銷售額都逐漸回升。

Adjusted segment of margins finished the year above 21%, reflecting our resilient performance in a choppy demand environment.

調整後的利潤率在年底超過了 21%，反映了我們在波動的需求環境中的強勁表現。

In total, Enpro reported approximately $255 million in adjusted EBITDA for 2024, up 7% year over year. Considering weak demand in areas of semiconductor capital equipment spending and the sharp decline in commercial vehicle OEM demand, we are pleased with Enpro's adjusted EBTIDA margins of 24.3% that are up 180 basis points from prior year.

總體而言，Enpro 報告 2024 年調整後 EBITDA 約為 2.55 億美元，年增 7%。考慮到半導體資本設備支出領域的需求疲軟以及商用車 OEM 需求的急劇下降，我們對 Enpro 調整後的 EBTIDA 利潤率為 24.3% 感到滿意，該利潤率比上年增長了 180 個基點。

Next, I would like to take a couple of minutes to share some recent highlights from our January leadership conference where 85 leaders from across the company gathered to launch Enpro 3.0, the next phase of our purposeful value creation journey.

接下來，我想花幾分鐘時間分享我們一月份領導力會議上的一些亮點，來自全公司的 85 位領導者齊聚一堂，啟動了 Enpro 3.0，這是我們有目的的價值創造之旅的下一階段。

Our teams aligned on our long-term strategic goals and focused on areas where we can accelerate profitable business growth and meaningful personal and professional advancement.

我們的團隊致力於長期策略目標，並專注於能夠加速獲利性業務成長和有意義的個人和職業進步的領域。

But first, what is Enpro 3.0?

但首先，什麼是 Enpro 3.0？

We think of our company's elevation in three phases. Following our spinoff from Goodrich Corporation in 2002, the company's first phase was about permanently resolving significant legacy liabilities while establishing the beginning of our dual bottom-line culture.

我們認為公司的提升分為三個階段。繼 2002 年從古德里奇公司分拆之後，公司的第一階段是永久解決重大遺留債務，同時建立雙重底線文化的開端。

The second phase, Enpro 2.0 is about portfolio transformation. We began this phase in 2019, divesting a number of businesses and product lines that did not meet our growth, profit, and return criteria while reallocating proceeds from these divestments in the growth markets where we added strong technological and applied engineering capabilities.

第二階段，Enpro 2.0是關於投資組合轉型。我們從 2019 年開始進入這一階段，剝離了一些不符合我們的成長、利潤和回報標準的業務和產品線，同時將這些剝離的收益重新分配到我們增加了強大技術和應用工程能力的成長市場。

During this phase, we optimized portfolio and widened adjusted EBITDA margins by 1,000 basis points. Creating significant shareholder value, returning nearly 27% annually since 2019.

在此階段，我們優化了投資組合，並將調整後的 EBITDA 利潤率提高了 1,000 個基點。創造了顯著的股東價值，自 2019 年以來每年回報率近 27%。

Upon a much more efficient and profitable revenue base.

建立在更有效率和有利可圖的收入基礎上。

These moves optimized our go forward portfolio and set the stage for Enpro 3.0, a period where we expect higher revenue growth coupled with best-in-class profitability and strong returns on invested capital.

這些舉措優化了我們未來的投資組合，為 Enpro 3.0 奠定了基礎，我們預計該時期的收入將更高，盈利能力也將達到最佳水平，投資資本的回報率也將更高。

Successful execution of this next phase of Enpro will accelerate our value creating strategy and continue our excellent track record of delivering double digit shareholder returns.

Enpro 下一階段的成功執行將加速我們的價值創造策略，並延續我們為股東帶來兩位數回報的優異記錄。

At the leadership conference, we had several discussions and exercises that focused on driving top line profitable growth while encouraging a growth mindset to embrace challenges, refine our processes, and actively implement our continuous improvement playbooks to reimagine areas where both commercial market expansion and efficiency opportunities exist. I was struck by the genuine excitement that our leaders have for our businesses and their motivation to achieve profitable growth to unlock additional opportunities for our colleagues and value for our stakeholders.

在領導力會議上，我們進行了多次討論和練習，重點是推動營收成長，同時鼓勵以成長心態迎接挑戰，改進流程，並積極實施持續改進計劃，重新構想商業市場擴張和效率機會都存在的領域。我們的領導對我們的業務所表現出的真誠興奮以及他們實現盈利性增長的動力令我印象深刻，他們為我們的同事創造了更多機會，為我們的利益相關者創造了價值。

With our optimized portfolio in place and grows position to generate mid to high single digit top line growth over the long term at strong profitability and return levels.

透過優化我們的投資組合並不斷成長，我們可以在長期內以強勁的獲利能力和回報水準實現中高個位數的營收成長。

For the next 5 years, we are targeting mid-single digit growth in ceiling while at AST, we are targeting at least high single digit growth with both segments capable of generating 30% adjusted segment, EBITDA margins, plus or minus 250 basis points.

未來 5 年，我們的目標是實現上限的中等個位數成長，而在 AST，我們的目標是至少實現高個位數成長，兩個部門均能夠產生 30% 的調整後部門 EBITDA 利潤率，正負 250 個基點。

The entire team is excited to deliver the next phase of growth in Enpro 3.0.

整個團隊都很高興能夠實現 Enpro 3.0 的下一階段發展。

Before I turn the call over to Joe to discuss our 4th quarter results in more detail and provide 2025 guidance, I would like to comment on safety, which is our most important core value.

在我將電話轉給喬來更詳細地討論我們的第四季度業績並提供 2025 年指導之前，我想對安全發表評論，這是我們最重要的核心價值。

In 2024, our safety results for total recordable case rate and last time case rate continue to be much better than industry averages, while proactive measures such as employee engagement, safety opportunities corrected, training completion.

2024 年，我們的總可記錄案件率和上次案件率的安全結果繼續遠好於行業平均水平，同時採取了員工參與、糾正安全機會、完成培訓等主動措施。

Rose by double digits. We are building on Enpro's approach to safety culture by aligning with ISO of 45,001.

上漲了兩位數。我們正在按照 ISO 45001 標準建立 Enpro 的安全文化方法。

Occupational health and safety management systems to ensure repeatable processes and drive continuous improvement this year, 3 Enpro locations received third party certifications for ISO 40,001. Joe.

職業健康與安全管理系統確保可重複的流程並推動持續改進，今年，3 家 Enpro 工廠獲得了 ISO 40,001 第三方認證。喬。

Thanks Eric, and good morning, everyone. In the fourth quarter, sales of $258.4 million increased 3.7% and organic sales increased 1.2%. Increase was primarily driven by strong sales performance in the ceiling technology segment.

謝謝 Eric，大家早安。第四季銷售額2.584億美元，成長3.7%，有機銷售額成長1.2%。成長主要得益於天花板技術部門強勁的銷售業績。

Strong demand in aerospace and nuclear markets and a recovery in European general industrial and food and farmer demand, as well as strategic pricing initiatives and the addition of AMI more than offset slower sales tied to wafer fab equipment at AST and a sharp decline in commercial vehicle OEM demand.

航空航太和核能市場的強勁需求、歐洲一般工業、食品和農民需求的復甦、戰略定價舉措和 AMI 的加入，足以抵消 AST 晶圓廠設備銷售放緩和商用車 OEM 需求急劇下降的影響。

Fourth quarter adjusted EBITA $58.2 million increased 24%. An adjusted EBITA margin of 22.5% expanded 370 basis points year over year.

第四季調整後 EBITA 為 5,820 萬美元，成長 24%。調整後的 EBITA 利潤率為 22.5%，較去年同期成長 370 個基點。

Positive mix in both segments, the addition of AMI, the benefits of cost mitigation actions, and lower corporate expense were the primary drivers of this year over year improvement.

兩個部門的積極組合、AMI 的加入、成本緩解措施帶來的好處以及企業費用的降低是今年業績同比改善的主要推動力。

Corporate expenses of $13.4 million were down from $14.7 million in the fourth quarter of 2023, primarily due to the decrease in long-term incentive compensation expense related to cash settled, share-based rewards tied to share price performance compared to last year.

公司費用為 1,340 萬美元，低於 2023 年第四季的 1,470 萬美元，主要原因是與去年相比，與現金結算、與股價表現掛鉤的股票獎勵相關的長期激勵薪酬費用減少。

Adjusted diluted earnings per share of $1.57 increased 32% compared to the prior year period, largely driven by the factors increasing adjusted EBITDA.

調整後每股攤薄收益為 1.57 美元，較去年同期成長 32%，主要受調整後 EBITDA 增加的因素推動。

Moving to a discussion of segment performance, ceiling technology sales of $163 million in the fourth quarter increased 11% from the prior year period.

談到分部業績的討論，第四季天花板技術銷售額為 1.63 億美元，較去年同期成長 11%。

Strong demand in aerospace and nuclear markets, strategic pricing actions, the addition of AMI and a recovery in food and pharma and European general industrial markets more than offset continued weakness in commercial vehicle OEM and Asian industrial markets.

航空航太和核能市場的強勁需求、戰略定價行動、 AMI 的加入以及食品和製藥以及歐洲一般工業市場的復甦，足以抵消商用車 OEM 和亞洲工業市場的持續疲軟。

Organic sales increased 6.7%. For the 4th quarter, adjusted segment EBITA increased nearly 32% from the prior year period, with the adjusted segment EBITDA margin expanding almost 500 basis points to 31%.

有機銷售額成長6.7%。第四季度，調整後分部 EBITA 較去年同期成長近 32%，調整後分部 EBITDA 利潤率擴大近 500 個基點，至 31%。

Positive mix, strategic pricing, improved volume, and the addition of AMI contributed to the strong year over year profit performance.

積極的產品組合、策略性定價、銷售提升以及 AMI 的加入促成了強勁的同比利潤表現。

We are very pleased with the impressive performance throughout the ceiling technology segment and plan to continue making targeted investments to drive incremental organic growth along with considering select strategic acquisitions that meet our rigorous criteria to expand our capabilities and market positioning.

我們對整個天花板技術領域的出色表現感到非常滿意，並計劃繼續進行有針對性的投資，以推動增量有機增長，同時考慮選擇符合我們嚴格標準的戰略收購，以擴大我們的能力和市場定位。

With 2/3 of the segment comprising critical specified positions in the aftermarket and the sustained structural improvements made in the segment in recent years, we expect to continue achieving world-class performance and ceiling and driving mid-single digit top line growth at superior margins.

該細分市場的三分之二佔據售後市場的關鍵特定位置，近年來該細分市場持續進行結構性改進，我們預計將繼續實現世界一流的業績和上限，並以優異的利潤率推動中等個位數的營收成長。

Turning to advanced surface technologies.

轉向先進的表面技術。

We saw a sequential improvement from the third quarter, sales of $95.6 million decreased 6.4% year over year.

我們看到第三季的銷售額有所改善，為 9,560 萬美元，年減 6.4%。

Continued weakness in semiconductor capital equipment spending offset strength and solutions serving leading edge applications which continued to be a bright spot for AST in the 4th quarter and throughout the year.

半導體資本設備支出的持續疲軟抵消了服務於前沿應用的優勢和服務解決方案，這繼續成為 AST 在第四季度及全年的亮點。

For the 4th quarter, adjusted segment EBITA decreased approximately 7% versus the prior year period.

第四季度，調整後分部 EBITA 較去年同期下降約 7%。

Adjusted segment EBITA on margin of 22.1% improved sequentially by 130 basis points and was flat year over year.

調整後分部 EBITA 利潤率為 22.1%，較上季成長 130 個基點，與去年同期持平。

Positive mix and continuous improvement initiatives offset the overall volume decline, material cost increases, and operating costs related to growth investments.

積極的產品組合和持續改進措施抵消了整體銷售下滑、材料成本上漲以及與成長投資相關的營運成本。

We were pleased that we were able to hold the line on decremental margin and AST year over year during the 4th quarter.

我們很高興能夠在第四季度保持利潤率和 AST 比去年同期下降的趨勢。

We see several long term revenue growth and continuous improvement opportunities throughout AST and are taking actions to unlock the potential of this business.

我們看到 AST 存在多個長期收入成長和持續改進機會，並正在採取行動來釋放這項業務的潛力。

We have made progress in identifying levers to implement our optimization playbooks that led to the improved performance within the ceiling technology segment that we will expect will enable us to expand margins and AST to 30% plus or minus 250 basis points more consistently as volume and mix normalize.

我們在確定實施優化策略的槓桿方面取得了進展，這導致了上限技術部門績效的提高，我們預計，隨著產量和組合正常化，我們將能夠更持續地將利潤率和 AST 擴大到 30％±250 個基點。

Finally, the accelerated qualification work that we discussed last quarter in Arizona gained traction, and we generated small initial revenue from the facility during the quarter.

最後，我們上個季度在亞利桑那州討論的加速資格認證工作獲得了進展，並且我們在本季度從該設施獲得了少量的初始收入。

We believe the long-term growth opportunities in AST far outweigh the recent market choppiness which we expect to continue this year.

我們相信 AST 的長期成長機會遠遠超過近期的市場波動，我們預計今年這種波動仍將持續。

Accordingly, we will continue to invest in the segment to drive high single digit long term revenue growth with improved profitability.

因此，我們將繼續對該部門進行投資，以推動長期高個位數收入成長並提高獲利能力。

Turning to the balance sheet and cash flow.

轉向資產負債表和現金流。

Our balance sheet remains strong, and we exited 2024 with a net leverage ratio of 1.6 times, inclusive of the $210 million in cash used to acquire AMI in late January of 2024.

我們的資產負債表依然強勁，截至 2024 年，我們的淨槓桿率為 1.6 倍，其中包括 2024 年 1 月底收購 AMI 所用的 2.1 億美元現金。

We continue to generate ample free cash flow to invest the necessary capital and operating expenses into our strategic organic growth opportunities.

我們繼續產生充足的自由現金流，以將必要的資本和營運費用投資於我們的策略有機成長機會。

In 2024 we generated $130 million in free cash flow, net of $33 million of property, plant, and equipment, and capitalized software expenditures, in addition to approximately $7 million that remained in payables on December 31st.

2024 年，我們產生了 1.3 億美元的自由現金流，扣除 3,300 萬美元的物業、廠房和設備以及資本化的軟體支出，此外 12 月 31 日剩餘約 700 萬美元的應付款項。

We have strong financial flexibility to execute our strategic initiatives both organically and through strategic acquisitions that broad on our capabilities.

我們擁有強大的財務靈活性，可以透過內部實施和策略性收購來執行我們的策略計劃，從而拓展我們的能力。

Our goal is to build on our leading-edge positions in markets with secular growth drivers that safeguard critical environments and applications that touch our lives every day.

我們的目標是鞏固我們在具有長期成長動力的市場中的領先地位，以保護與我們日常生活相關的關鍵環境和應用。

We are also maintaining our commitment to return capital to shareholders, and during 2024, we paid a $0.30 per share quarterly dividend totaling $25.3 million for the year.

我們也堅持向股東返還資本的承諾，2024 年，我們支付了每股 0.30 美元的季度股息，全年總額達 2,530 萬美元。

On February 13th, our board of directors approved another increase to the quarterly dividend of $0.31 per share, representing the 10th consecutive annual dividend increase since we initiated a quarterly dividend in 2015.

2 月 13 日，我們的董事會批准將季度股息再次提高至每股 0.31 美元，這是自 2015 年啟動季度股息以來連續第 10 次增加年度股息。

Moving now to our 2025 guidance.

現在轉向我們的 2025 年指導。

Taking into consideration all the factors that we know currently, we expect total and pro sales growth to be in the low to mid-single digit range in 2025.

考慮到我們目前所知的所有因素，我們預計 2025 年總銷售額和專業銷售額的成長將處於低至中等個位數範圍內。

We expect adjusted EBITA to be in the range of $262 million to $277 million and adjusted diluted EPS to range from $7 to $7.70 per share.

我們預計調整後的 EBITA 在 2.62 億美元至 2.77 億美元之間，調整後的稀釋每股收益在每股 7 美元至 7.70 美元之間。

The normalized tax rate used to calculate adjusted diluted earnings per share remains at 25%, and fully diluted shares outstanding are approximately $21 million.

用於計算調整後每股攤薄收益的標準化稅率仍為 25%，完全稀釋的流通股約為 2,100 萬美元。

This view does not contemplate any material macroeconomic or trade-related variability.

這種觀點並沒有考慮任何重大的宏觀經濟或貿易相關的變化。

In 2025, capital expenditures are expected to approximate $50 million or around 4.5% of sales, as we continue to invest in future growth opportunities across the company at a creative margin and return thresholds.

2025 年，預計資本支出將約為 5,000 萬美元，佔銷售額的 4.5% 左右，因為我們將繼續以創造性的利潤率和回報門檻投資於整個公司的未來成長機會。

In the ceiling technology segment, we expect demand drivers to remain largely the same as we saw in 2024 and expect low to mid-single digit revenue growth in 2025.

在天花板技術領域，我們預計需求驅動因素將與 2024 年基本相同，並預計 2025 年收入將達到低至中等個位數成長。

Areas with longer cycle backlog, such as aerospace, space, and nuclear are expected to continue to be strong, while we expect commercial vehicle to be flat to slightly up.

預計航空航太、航太和核能等周期積壓較長的領域將繼續保持強勁，我們預計商用車將持平或略有上漲。

In North America and in Europe, we expect firm general industrial demand with some recovery in food and Pharma.

在北美和歐洲，我們預期整體工業需求將保持堅挺，食品和製藥業將有所復甦。

We expect adjusted segment EBITA margin to again exceed 30% in 2025.

我們預計調整後分部 EBITA 利潤率將在 2025 年再次超過 30%。

In the advanced service technology segment, we expect AST sales to grow in the mid to high single digits, with the second half of 2025 being slightly stronger and adjusted segment even on margins to remain above 20% for the year.

在先進的服務技術領域，我們預計 AST 銷售額將以中高個位數成長，2025 年下半年將略有增強，調整後的分部利潤率全年仍將保持在 20% 以上。

Industry sources and conversations with our customers suggest continued weakness in semiconductor cap and equipment spending throughout 2025, and we are making targeted cost adjustments to account for this reality.

業內消息和與客戶的對話表明，2025 年全年半導體產能和設備支出將持續疲軟，我們正在針對這一現實情況進行有針對性的成本調整。

While overall capital spending for wafer fab equipment will remain muted again this year, we expect our solutions serving leading edge nodes and advanced chip architectures to continue to grow.

雖然今年晶圓廠設備的整體資本支出將再次保持低迷，但我們預計服務於前沿節點和先進晶片架構的解決方案將繼續成長。

We also expect demand for optical filters to improve.

我們也預計光學濾波器的需求將會改善。

Thank you for your time today. I will now turn the call back to Eric for closing comments.

感謝您今天抽出時間。現在我將電話轉回給 Eric 進行最後發言。

Thank you, Joe. As we enter 2025, we are energized and working hard to deliver another year of strong results for our customers and shareholders. We continue to operate the business with balance to achieve excellent financial results in a variety of economic environments.

謝謝你，喬。邁入 2025 年，我們充滿活力，努力工作，為客戶和股東創造另一年的強勁業績。我們繼續平衡經營業務，以在各種經濟環境下取得優異的財務表現。

Our value creating strategy remains unchanged, and we continue to invest in areas where we are strongest while considering strategic acquisitions that build upon our leading-edge capabilities. I want to again thank our dedicated colleagues across the company who are the driving force for our company's success, and we believe we have built a clear path to achieve our vision of Enpro 3.0.

我們的價值創造策略保持不變，我們將繼續在我們最強的領域進行投資，同時考慮進行能夠鞏固我們領先能力的策略性收購。我要再次感謝公司上下敬業的同事，他們是我們公司成功的推動力，我們相信我們已經建立了一條清晰的道路來實現 Enpro 3.0 的願景。

Thank you for joining us today. There's no better time to be a part of Enpro, and we now welcome your questions.

感謝您今天加入我們。現在是加入 Enpro 的最佳時機，我們歡迎您提出問題。

Thank you, and I'll be conducting your question-and-answer session. (Operator Instructions)

謝謝，我將主持您的問答環節。（操作員指令）

Our first question is coming from Jeff Hammond from Key Bank Capital Markets. Your line is now live.

我們的第一個問題來自 Key Bank Capital Markets 的 Jeff Hammond。您的線路現已通電。

Hey, good morning. Gentlemen.

嘿，早安。先生們。

Good morning.

早安.

We'll start with the $64,000 dollar question, semiconductor, kind of just wanted a better, I think you said made the high single digit growth for AST. So just trying to. Better get a sense of what you're assuming for, WFE or wafer starts and when you think you see an inflection or if the growth is really just all kind of, outgrowth and leading edge, focus.

我們將從價值 64,000 美元的問題開始，半導體，只是想要更好，我想你說過為 AST 實現了高個位數增長。所以只是嘗試一下。最好先了解你對 WFE 或晶圓啟動的假設，以及當你認為看到拐點時，或者成長是否真的只是各種類型的成長和前緣焦點。

I think it is mostly outgrowth and leading edge applications, but I also see you're getting to some degree a lot of small numbers that's just gone down so much. There's room to improve at this point. There's also a little bit of market share gain in there. We can look at our funnel and see some programs we've won. They give us some confidence we'll get to those numbers right into the year. I'm not looking for strong market recovery. It's expected to be quite choppy throughout the year.

我認為這主要是成長和前沿應用，但我也看到，在某種程度上，許多小數字已經大幅下降。在這一點上還有進步的空間。市場佔有率也略有增加。我們可以看看我們的漏斗，看看我們贏得的一些項目。他們給了我們信心，我們今年就能達到這些數字。我並不期望市場強勁復甦。預計全年形勢都會相當動盪。

Yeah, Jeff, I think when you look at a lot of the industry sources they're kind of saying low to mid-single digits.

是的，傑夫，我認為當你查看很多行業消息來源時，他們都會說低到中等個位數。

It varies depending on where you're exposed and you know how much China exposure you have versus non-China, but that's sort of what we're expecting, low growth in WFE overall for the market in 2025 and then, the investments that we've made and the growth initiatives that we have, especially on leading edge applications to kind of outperform and that drives our overall kind of forecast for 2025.

這取決於您的業務範圍，以及您在中國的業務範圍與非中國業務範圍的對比，但這正是我們的預期，即 2025 年整個市場的 WFE 增長率較低，然後，我們所做的投資和所採取的增長計劃，特別是在前沿應用方面的投資和增長計劃將表現出色，這推動了我們對 2025 年的整體預測。

Okay, and then just how should we think about AST sequentially, you kind of ramp through 24. I don't know if you know you step back down or if fourth quarter's kind of the new run rate to think about.

好的，那我們應該如何按順序思考 AST，你會逐漸達到 24。我不知道您是否知道您要退出或是否要考慮第四季度的新運行率。

Yeah, I think it's going to be choppy, for the first half a little bit again. We could see a little bit of step back to be slightly flat to slightly down, in the first half, but not materially.

是的，我認為前半部會有點不連貫。我們可以看到上半年出現了小幅回落，從略微持平到略微下降，但並不明顯。

We do think it will be a second half slightly stronger than the first half overall for AST so you could see some choppiness quarter to quarter, but I don't think, we're going to see a material step down in any way.

我們確實認為 AST 下半年的整體表現將略強於上半年，因此您可能會看到季度間出現一些波動，但我認為我們不會看到任何實質的下降。

We're, we've invested behind all the growth investments. Arizona, as we talked about, had some initial revenue in the fourth quarter. You know that testing revenue and qualification work will continue in 2025, but the reality is that that will be mostly spending ahead of demand for now. We see that ramping up a little bit through 2025 but materially production volume coming in 2026. And even beyond that, as our key customers kind of ramp their volume, but you know it's another year of strong growth investments for us behind AST and then, scaling with our customers as they grow.

我們對所有成長投資都進行了投資。正如我們所說，亞利桑那州在第四季度有一些初始收入。您知道測試收入和資格認證工作將在 2025 年繼續進行，但實際情況是，目前這些支出大多是超出需求的。我們預計到 2025 年產量會略有增加，但到 2026 年產量才會真正達到高峰。除此之外，隨著我們的主要客戶銷售的增加，您知道，這是我們在 AST 背後又強勁增長投資的一年，然後隨著客戶的成長而擴大規模。

Okay, and then last one, just a lot of news flow on tariffs, so I know it's pretty new, but just how are you thinking about, and how you build, tariff, risk into the guide, maybe just talk about, any pricing actions you're considering, and maybe just remind us of, kind of any sourcing footprint.

好的，最後一個問題，關於關稅的新聞很多，所以我知道這是很新的，但是您是如何考慮的，您是如何將關稅風險納入指南的，也許只是談談您正在考慮的任何定價行動，也許只是提醒我們任何採購足跡。

China, Mexico, Canada.

中國、墨西哥、加拿大。

Sure, so most of our sourcing is done in the region and the largest part of our supply chain is actually sourced directed by customer. So the areas where we have exposure, we have 3 product lines, one small one in Mexico, one small one in Canada, and then another one again, small volume out of China.

當然，我們的大部分採購都是在該地區完成的，而且我們供應鏈的最大部分實際上是由客戶直接採購的。在我們所涉足的地區，我們有 3 條產品線，一條在墨西哥，一條在加拿大，一條在中國，產量不大。

It altogether it wouldn't be material, and I also think there'll be some offsets in the US if and when the tariffs are enacted, depending on how much they are, but we've already got price plans in place and we'll also use in some cases what we call them.

總的來說，這並不重要，而且我還認為，如果關稅實施，美國會有一些抵消，具體取決於關稅的數額，但我們已經制定了價格計劃，在某些情況下我們也會使用我們所說的計劃。

I'm sorry, surcharges to capture them immediately and so we can also adjust as the administration sorts out what they're doing. So we will capture most of the price and in any event, in the worst case scenario, it wouldn't be material.

很抱歉，我們會立即收取附加費，以便我們能夠在管理部門理清他們正在做的事情時進行調整。因此我們將獲得大部分價格，而且無論如何，在最壞的情況下，這不會是重大的。

And the customer directed.

並由顧客指示。

Sourcing is that have pass throughs for tariffs?

採購是否有關稅通行證？

We buy it at a net cost, so whatever price we get it from them at their net cost so that tariffs would already improve in there and we would go from that point.

我們以淨成本購買，因此無論我們從他們那裡得到什麼價格，都是按照他們的淨成本，這樣關稅就會有所改善，我們會從這一點開始。

It would be in the base if you will. It wouldn't affect us.

如果你願意的話，它會在基地裡。這不會影響我們。

Okay then the customers specifying it.

好的，那麼客戶指定它。

Okay, I'll.

好的，我會的。

Get.

得到。

Back in que.

回到隊列。

Thank you.(Operator Instructions)

謝謝。

Next question is coming from Steve Ferratati from Seddonian Company. Your line is now live.

下一個問題來自 Seddonian 公司的 Steve Ferratati。您的線路現已通電。

Morning everyone. I appreciate all the detail on the call.

大家早安。我很感謝通話中提供的所有詳細資訊。

I was actually a little positively surprised by your AST margins quarter, given I know you were going through that certification process. I assume there would have been a sequential decline. You actually had a sequential increase. Given the costs associated with that. Was it just much better mix this quarter? Can you walk us through how you got that sequential increase despite the certification process in Arizona?

鑑於我知道您正在經歷認證過程，我實際上對您的 AST 利潤率季度感到有點驚喜。我認為會出現連續下降。您實際上實現了連續的成長。考慮到與此相關的成本。本季的組合是否更好了？您能否向我們介紹一下，儘管需要經過亞利桑那州的認證程序，但您是如何實現連續成長的？

Yeah, good morning, Steve. Yeah, we talked, as you mentioned in the last quarter about, the qualification work that we're accelerating and pulling from 2025 into 2024. We did all that and frankly it went as according to plan, so we did see a little bit higher cost in the fourth quarter than, we originally intended. But you know we did see positive mix, especially on leading edge work both in Taiwan and in the US, and that drove favourable mix. The volume was pretty strong through the back half of the year or back half of the quarter, and so that favourable mix ticked our margins up a couple points, more favourable than we expected even going into the 4th quarter.

是的，早上好，史蒂夫。是的，正如您在上個季度提到的那樣，我們討論了我們正在加速並從 2025 年推遲到 2024 年的資格工作。我們做了所有這些，坦率地說，一切都按計劃進行，因此，我們確實看到第四季度的成本比我們最初預期的要高一點。但您知道，我們確實看到了積極的組合，尤其是台灣和美國的前沿工作，這推動了有利的組合。今年下半年或本季下半段的銷售量非常強勁，這種有利的組合使我們的利潤率上升了幾個點，甚至比我們預期的第四季度的利潤率還要好。

As you expect the solutions to be the stronger side in 25, and that's the better margin where it appear to be the better margin side, is there any reason to think you can get above low 20s in 2025 on the margin side?

由於您預計解決方案在 25 年內會變得更強，而且利潤率似乎更高，那麼是否有理由相信您可以在 2025 年將利潤率提高到 20% 以上？

You're right in the fact that we do see the solution side to be stronger and that, we'll kick our growth rate up a little bit through the year, but we continue to invest in the work in Arizona and in other opportunities for growth that we're going to really pay off in 206 and beyond. So we're still investing ahead of demand.

您說得對，我們確實看到解決方案方面更加強大，而且我們將在今年稍微提高我們的成長率，但我們將繼續投資於亞利桑那州的工作以及其他成長機會，我們將在 206 年及以後真正獲得回報。因此我們仍在進行領先於需求的投資。

And in frank, we're investing a little bit increasingly more than we did in '24,

坦白說，我們的投資比 24 年略有增加，

so, If volume overall volume growth is a little stronger than we're talking about and we're on the higher end of our overall revenue guide, I think we could see margins tick up a little bit, but the reality is they'll probably be, in the same range as we saw above 20% in '25.

因此，如果整體銷售成長比我們談論的要強勁一些，而且我們的總收入處於指南的高端，我認為我們可以看到利潤率略有上升，但實際情況是，它們可能與我們在25年看到的20%以上的利潤率處於同一範圍內。

Okay, that's helpful. On the ceiling side, I want to ask the tariff question in a different way. We've seen.

好的，這很有幫助。關於上限方面，我想以不同的方式詢問關稅問題。我們已經看到了。

Some markets, maybe the spending on the industrial side slowed down given general uncertainty. Europe and other places being concerned about what might be coming. I know a lot of your stuff on ceiling is mission critical, but have you seen any kind of a slowdown given the uncertainty in the in the world?

在某些市場，由於普遍的不確定性，工業方面的支出可能會放緩。歐洲和其他地方都對即將發生的事件感到擔憂。我知道你在天花板上做的很多事情對於任務來說都是至關重要的，但考慮到世界上的不確定性，你是否看到任何形式的放緩？

Short answer is no, we really haven't seen any slowdown at all.

簡短的回答是“沒有”，我們確實沒有看到任何放緩。

Okay, fair enough. Last one on the much higher caps next year. Anything specific you want to highlight, and it looks like some stuff probably pushed out of 2024, given how low that number came in. Is that fair?

好吧，夠公平。最後一個是關於明年更高上限的問題。您想強調什麼具體內容嗎？這樣公平嗎？

Yeah, that's right, Steve. I mean, as we talked about, we lowered our capX number as we moved through the year. A lot of the projects that not not Arizona but other growth investments that we're making in additional capabilities both geographically and from a technology standpoint, we're kind of getting. Off the ground a little bit in 204 and so as we refined the scope laid on our engineering plans on that, they were a little bit paced through the year to start later than originally expected, so that's going to push into 2025. Those projects are off and going now we're in execution mode, so we do feel a little bit higher. Confidence in our ability to spend at that level. We did talk about we got probably our eyes got a little bit ahead of our stomach in 24 a little bit, but we're off and running in those projects and you know the $40 million to 50 million is probably our normal capacity to spend.

是的，沒錯，史蒂夫。我的意思是，正如我們所討論的，我們在一年中降低了資本化數字。很多項目不僅僅是亞利桑那州的，而且還有我們在地理和技術角度上為增加額外能力而進行的其他增長投資，我們都在進行中。204 年我們稍微開始了一點工程，因此，隨著我們完善工程計劃的範圍，我們的工程計劃在今年的進度比最初預期的要晚一些，所以這將推遲到 2025 年。這些項目現在已啟動並正在進行中，現在我們處於執行模式，所以我們確實感覺好一些。對我們在這一水平上的支出能力有信心。我們確實談到過，我們可能在 24 小時內就看光了一點，但我們已經開始著手進行這些項目，你知道 4000 萬到 5000 萬美元可能是我們的正常支出能力。

Okay, great, thanks everyone.

好的，太好了，謝謝大家。

Thank you. (Operator Instructions)

謝謝。（操作員指令）

Our next question is coming from Ian Zafino from Oppenheimer. Your line is now live.

我們的下一個問題來自奧本海默公司的伊恩·扎菲諾。您的線路現已通電。

Hey, good morning. This is Isaacal on for Ian. Thanks for taking all the questions and also on the details on the 3.0 phase, I guess on AST what would be sort of the steps or high level thinking to get to the 30% even of margins, versus around the 20+% today, I guess the main drivers as far as like top line growth or operational improvements or contributions from the Arizona facility. Thanks.

嘿，早安。這是 Isaacal 代替 Ian 上場。感謝您回答所有問題，也感謝您就 3.0 階段的細節提出問題，我猜想在 AST 上，要採取什麼樣的步驟或高層思路才能達到 30% 的利潤率，而目前的利潤率約為 20% 以上，我猜想主要的驅動因素是營收成長或營運改進或亞利桑那工廠的貢獻。謝謝。

Yeah, so our investments that we've been making over the last number of years in leading edge technology will start to pay off over time in 206, as Joe started, it'll start to ramp up there. But in addition, there'll be some market share gain along the way and then a bunch of operational improvements. So, when you look at it, it's the same as we ran into the ceiling playbook. So, we say it's an overnight success, but as you saw earlier in the script, it was from 2019 to today we've improved about 1,000 basis points. So, it's a little bit of everything. It's a little bit of 80/20. It's a little bit of customer mix. It's a little bit of a share gain, and it's a little bit of leaning edge technologies they have of course, have a little higher margin.

是的，所以我們過去幾年在前沿技術方面的投資將隨著時間的推移在 206 年開始獲得回報，正如喬所說，它將在那裡開始增加。但除此之外，我們還會在這過程中獲得一些市場份額，並實現一系列營運改善。所以，當你看到它時，它就跟我們遇到天花板劇本的情況一樣。因此，我們說這是一夜之間的成功，但正如您之前在腳本中看到的那樣，從 2019 年到今天，我們已經提高了約 1,000 個基點。所以，什麼都有一點。這有點像 80/20。這有點兒像客戶混合。這在一定程度上提高了市場份額，當然，他們憑藉著尖端技術獲得了更高的利潤。

Yeah, there's no doubt. I think the majority of that will come from, just growth, whether it be market recovery or, outsized growth that we're driving through our strategic positioning, but there will be a decent element from the continuous improvement and other operational efficiency programs that we're driving now that will affect over a multi-year period that'll clearly have to be part of the algorithm to get to that 30% sustainably.

是的，毫無疑問。我認為，其中大部分將來自於成長，無論是市場復甦，還是我們透過策略定位推動的超額成長，但其中也有一個相當大的因素來自於我們現在正在推動的持續改進和其他營運效率計劃，這些因素將在未來多年產生影響，顯然，這必須成為演算法的一部分，才能可持續地實現 30% 的成長。

Okay, great, thank you. And then just a quick follow up on the semi cap equipment equipment side maybe if you could find any kind of details you could give this conversations you've had with customers and maybe sort of how they're thinking about growth, beyond 25 or, into 26 thanks.

好的，太好了，謝謝。然後，我們來快速跟進半導體設備方面的問題，如果您能找到任何細節，您可以提供您與客戶進行的對話，以及他們如何看待 25 年或 26 年之後的增長，謝謝。

Yeah, so I guess the best way to in conversation with the customers what they're saying is basically choppy 2025 and 2026 is too far ahead to have a great look at it right now and the customers are hesitant as we are to say anything more than that because we've been saying now that it'll be coming back in 6 months now for 2 years, and I don't know that we have more visibility than that. So, I think Gartner is probably as good a reference as anybody right now, and our customers are a fair amount of uncertainty still with what's going on with the US situation, let's say.

是的，所以我想與客戶交談的最好方式是，他們所說的基本上是波動的 2025 年和 2026 年太遙遠了，現在無法很好地觀察它，而客戶猶豫不決，因為我們不會說更多，因為我們現在一直說它將在 6 個月內回來，現在是 2 年，我不知道我們是否有比這更大的可見性。所以，我認為 Gartner 目前可能是一個很好的參考，而且我們的客戶對於美國的情況仍然有很大的不確定性。

Okay, understood.

好的，明白了。

Thank you.

謝謝。

Thank you. (Operation Instructions)

謝謝。(操作指引)

We reached end of our question-and-answer session. I like to turn the floor back over to James for any further closing comments.

我們的問答環節結束了。我想把發言權交還給詹姆斯，請他做進一步的結束語。

That's all today.

今天就到這裡。

Thank you for your interest in improving

感謝您對改進的興趣

Thank you. That does conclude today's teleconference and webcast and I just connect your line at this time and have a wonderful day. We thank you for your participation today.

謝謝。今天的電話會議和網路廣播到此結束，我現在就接通您的電話，祝您有美好的一天。我們感謝您今天的參與。