Enpro Inc (NPO) 2025 Q2 法說會逐字稿

Greetings. Welcome to the Enpro's second quarter 202 earnings conference call. (Operator Instructions) Please note, this conference is being recorded.

問候。歡迎參加 Enpro 202 年第二季財報電話會議。（操作員指示）請注意，本次會議正在錄音。

I will now turn the conference over to James Gentile, Vice President, Investor Relations. Thank you. You may begin.

現在我將會議交給投資人關係副總裁 James Gentile。謝謝。你可以開始了。

Thanks, Darryl, and good morning, everyone. Welcome to Enpro's second Quarter 2025 earnings conference call. I will remind you that our call is being webcast at enpro.com, where you can find the presentation that accompanies this call. With me today is Eric Vaillancourt, our President and Chief Executive Officer; and Joe Bruderek, Executive Vice President and Chief Financial Officer.

謝謝，達裡爾，大家早安。歡迎參加 Enpro 2025 年第二季財報電話會議。我要提醒您，我們的電話會議將在 enpro.com 上進行網路直播，您可以在那裡找到伴隨此次電話會議的簡報。今天與我一起的有我們的總裁兼執行長 Eric Vaillancourt 和執行副總裁兼財務長 Joe Bruderek。

During today's call, we will reference a number of non-GAAP financial measures. Tables reconciling the historical non-GAAP 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. These statements involve a number of risks and uncertainties, including those described in our filings with the SEC.

在今天的電話會議中，我們將參考一些非公認會計準則財務指標。將歷史非 GAAP 指標與可比較 GAAP 指標進行調整的表格包含在簡報資料的附錄中。此外，友情提醒，我們在這次電話會議上發表的聲明並非歷史事實，而是前瞻性的。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描述的風險和不確定性。

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 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 年全年指導，其中不包括這些風險和不確定性帶來的不可預見的影響。我們不承擔更新這些前瞻性聲明的任何義務。現在我很高興將電話轉給我們的總裁兼執行長 Eric Vaillancourt。艾瑞克？

Thanks, James, and good morning, everyone. We appreciate your interest in Enpro as we discuss second quarter financial results and our improved sales and earnings outlook for the full year 2025.

謝謝，詹姆斯，大家早安。感謝您對 Enpro 的關注，我們正在討論第二季的財務業績以及 2025 年全年銷售和獲利前景的改善。

Now on to our second quarter performance. After my overview, Joe will provide a more detailed discussion of our quarterly results and perspectives driving our improved outlook for the balance of 2025.

現在來看看我們第二季的業績。在我進行概述之後，喬將更詳細地討論我們的季度業績和推動我們對 2025 年平衡前景改善的觀點。

Enpro delivered another strong quarter, demonstrating the resilience of our business while continuing to invest in growth with discipline. We grew organic sales 6% in the second quarter, driven by 14.5% revenue growth in AST and continued top line growth in Sealing Technologies despite the difficult comparison to last year that we discussed last quarter. In Sealing Technologies, sales increased about 2%, driven by strength in aerospace and food and pharma markets, firm general industrial markets and strategic pricing initiatives more than offsetting continued weakness in commercial vehicle OEM demand.

Enpro 又一個季度表現強勁，展現了我們業務的韌性，同時繼續有紀律地投資於成長。我們在第二季度的有機銷售額增長了 6%，這得益於 AST 收入增長了 14.5%，以及密封技術業務繼續保持收入增長，儘管我們上個季度討論過與去年同期相比存在困難。密封技術部門的銷售額成長了約 2%，這得益於航空航太、食品和製藥市場的強勁表現、穩固的一般工業市場以及戰略定價舉措，這些都足以抵消商用車 OEM 需求持續疲軟的影響。

Timing of nuclear orders also impacted year-over-year performance. Adjusted segment EBITDA margin approached 34% for the quarter. We continue to identify opportunities for incremental growth throughout the Sealing Technologies segment and are focused on expanding our market reach by leveraging our differentiated technological capabilities and applied engineering expertise. We are focused on capturing opportunities in key markets such as aerospace, sustainable power generation, including nuclear, food and pharma and compositional analysis where our differentiated capabilities can drive long-term profitable growth.

核訂單的時間也影響了年比表現。本季調整後分部 EBITDA 利潤率接近 34%。我們繼續在密封技術領域尋找增量成長的機會，並致力於利用我們差異化的技術能力和應用工程專業知識來擴大我們的市場範圍。我們專注於抓住航空航太、永續發電（包括核能、食品和製藥）以及成分分析等關鍵市場的機會，我們的差異化能力可以推動長期獲利成長。

We continue to invest in incremental capacity expansion, supporting new platforms and enhanced strategic marketing and engineering capabilities to position the segment to deliver on our targeted mid-single-digit organic revenue growth rate. More than 60% of the segment's revenue is tied to the aftermarket with specified positions providing critical process and safety functions for our customers. We continue to be delighted with the best-in-class performance of the Sealing Technologies segment, which we expect to perform well in a variety of macroeconomic environments.

我們將繼續投資於增量產能擴張、支援新平台和增強策略行銷和工程能力，以使該部門實現我們目標的中等個位數有機收入成長率。該部門 60% 以上的收入與售後市場相關，特定職位為我們的客戶提供關鍵流程和安全功能。我們繼續對密封技術部門的最佳表現感到高興，我們預計該部門將在各種宏觀經濟環境中表現良好。

In the Advanced Surface technologies segment, sales increased more than 14%, led by growth in leading-edge precision cleaning solutions, optical coatings and improved demand for in-chamber semiconductor tools and assemblies. Operating expenses supporting growth in new platforms and transactional foreign exchange headwinds crimped operating leverage during Q2, which Joe will discuss later.

在先進表面技術部門，銷售額成長超過 14%，主要得益於尖端精密清潔解決方案、光學塗層的成長以及室內半導體工具和組件需求的成長。支援新平台成長的營運費用和交易外匯逆風抑制了第二季的營運槓桿，Joe 稍後將對此進行討論。

We continue to make targeted organic investments at AST and expect execution of our growth and optimization plans to drive high single to low double-digit revenue growth with improved profitability over time. We continue to believe this segment can generate 30% adjusted EBITDA again over time as growth programs and optimization playbooks are implemented. Our balance sheet remains in excellent shape, increased capacity from our recent debt finance -- refinancing activities, along with consistently strong free cash flow generation provide us with ample flexibility to execute on our forward growth strategy while pursuing strategic acquisitions that meet our rigorous strategic and financial criteria.

我們將繼續對 AST 進行有針對性的有機投資，並期望透過實施成長和優化計劃，推動收入實現高個位數至低兩位數的成長，並隨著時間的推移提高獲利能力。我們仍然相信，隨著成長計畫和優化方案的實施，該部門可以隨著時間的推移再次產生 30% 的調整後 EBITDA。我們的資產負債表仍然保持良好狀態，近期債務融資（再融資活動）帶來的產能提升，以及持續強勁的自由現金流生成，為我們提供了充足的靈活性，可以執行我們的前瞻性增長戰略，同時進行符合我們嚴格的戰略和財務標準的戰略收購。

Our colleagues across the organization are empowered as we embark on the first year of Enpro 3.0, our multiyear strategy for the next chapter of the company's evolution. With Enpro 3.0, we are accelerating both personal and profitable growth. In our view, these goals are equally important and inextricably linked. At the halfway point here in 2025, our teams are motivated with individual development plans in hand that drive their own personal and professional growth. We are tasking our employees to chart their own development path to pursue courses to expand their work knowledge in areas that inspire and build business acumen, engage in helpful activities and practice awareness, problem solving and communication techniques that enable our colleagues to grow and thrive within and outside of our organization.

隨著我們進入 Enpro 3.0 的第一年，整個組織的同事都獲得了授權，這是我們為公司發展的下一章制定的多年策略。借助 Enpro 3.0，我們正在加速個人和獲利的成長。我們認為，這些目標同等重要且密不可分。2025 年已過半，我們的團隊充滿動力，制定了個人發展計劃，以推動個人和職業成長。我們要求員工規劃自己的發展道路，並參加課程來擴展他們在激發和建立商業敏銳度領域的工作知識，參與有益的活動和實踐意識、解決問題和溝通技巧，使我們的同事能夠在組織內部和外部成長和發展。

I would like to thank our colleagues across Enpro who embrace our way of working and partner with our customers to solve important processing problems using our technological capabilities and applied engineering expertise. Developing relationships of trust and reliability with our customers enable us to continue producing exceptional results. There has never been a better to be a part of Enpro. I will now pass the call over to Joe to discuss our quarterly results in greater detail and discuss the drivers of our improved outlook for the balance of the year. Joe?

我要感謝 Enpro 的同事們，他們擁護我們的工作方式並與我們的客戶合作，利用我們的技術能力和應用工程專業知識解決重要的加工問題。與客戶建立信任和可靠的關係使我們能夠繼續創造卓越的成果。成為 Enpro 的一員是最好的選擇。現在我將把電話轉給喬，讓他更詳細地討論我們的季度業績，並討論我們今年剩餘時間前景改善的驅動因素。喬？

Thank you, Eric, and good morning, everyone. Through the halfway mark of 2025, we have delivered strong results and our improved outlook for the year reflects the differentiation of our products and solutions, technology leadership and process know-how, customer intimacy as well as the balance inherent in the Enpro portfolio.

謝謝你，艾瑞克，大家早安。截至 2025 年中期，我們已取得強勁業績，我們對今年前景的改善反映了我們的產品和解決方案的差異化、技術領導力和工藝知識、客戶親密度以及 Enpro 產品組合固有的平衡性。

Turning to our results for the second quarter. Sales of $288.1 million increased 6%, driven by continued strong performance in the Sealing Technologies segment and a 14.5% increase in AST. Second quarter adjusted EBITDA of $71.1 million declined 3.9% year-over-year. Total company adjusted EBITDA margin was 24.7%. Increased operating expenses supporting growth, transactional foreign exchange headwinds, which I will discuss in a moment, and increased incentive compensation accruals drove the slight year-on-year decline in total adjusted EBITDA.

談談我們第二季的業績。銷售額成長 6% 至 2.881 億美元，這得益於密封技術部門持續強勁的表現以及 AST 成長 14.5%。第二季調整後 EBITDA 為 7,110 萬美元，年減 3.9%。公司調整後 EBITDA 利潤率為 24.7%。支持成長的營運費用增加、交易外匯逆風（我稍後會討論）以及激勵薪酬應計費用增加導致調整後 EBITDA 總額同比略有下降。

Corporate expenses of $12.1 million in the second quarter of 2025 increased from $10.5 million a year ago, driven primarily by higher incentive compensation accruals and increased health insurance costs. Adjusted diluted earnings per share of $2.03 decreased slightly from $2.08 last year, primarily driven by the factors behind adjusted EBITDA performance in the quarter.

2025 年第二季的公司支出為 1,210 萬美元，高於去年同期的 1,050 萬美元，主要原因是激勵薪酬應計金額增加以及健康保險費用增加。調整後每股攤薄收益為 2.03 美元，較去年同期的 2.08 美元略有下降，主要受本季調整後 EBITDA 表現背後的因素影響。

Moving to a discussion of segment performance. Sealing Technologies sales increased 1.9% to $187.5 million. Strength in aerospace and food and pharma applications, firm general industrial performance and strategic pricing more than offset continued slow commercial vehicle OEM demand and mix associated with timing of nuclear orders compared to last year.

轉向對細分市場表現的討論。密封技術銷售額成長 1.9%，達到 1.875 億美元。與去年相比，航空航太、食品和製藥應用領域的強勁表現、穩固的整體工業表現和戰略定價足以抵消商用車 OEM 需求持續放緩以及與核訂單時間相關的組合的影響。

For the second quarter, adjusted segment EBITDA margin was 33.8%, down from last year's high watermark of 35.5%. Sequentially, Sealing segment margin expanded 110 basis points. Continued demand weakness in commercial vehicle OEM markets, timing of nuclear orders year-over-year as well as $1.9 million of transactional foreign exchange headwinds given the weakening of the US dollar were the primary factors affecting segment profitability during the second quarter.

第二季度，調整後分部 EBITDA 利潤率為 33.8%，低於去年的最高水準 35.5%。密封部門利潤率連續擴大了 110 個基點。商用車原始設備製造商市場需求持續疲軟、核訂單時間年減以及美元疲軟導致的 190 萬美元交易外匯逆風是影響第二季部門獲利能力的主要因素。

We are very pleased with the first half performance in Sealing with adjusted segment EBITDA margin exceeding 33% through June. We expect solid performance to continue as our teams focus on adjacent market expansion and incremental capacity investments as well as continued value pricing, 80/20 and cost discipline.

我們對 Sealing 上半年的業績非常滿意，截至 6 月份，調整後的部門 EBITDA 利潤率超過 33%。我們預計，隨著我們的團隊專注於鄰近市場擴張和增量產能投資以及持續的價值定價、80/20 和成本紀律，我們將繼續保持穩健的績效。

Turning now to Advanced Surface Technologies. Second quarter sales increased 14.5% year-over-year to $100.9 million. While overall semiconductor capital equipment spending remains choppy, we saw continued growth in leading-edge precision cleaning solutions and in optical coatings in addition to improved demand for certain in-chamber semiconductor tools and assemblies.

現在轉向先進表面技術。第二季銷售額年增 14.5% 至 1.009 億美元。儘管整體半導體資本設備支出仍然波動，但我們看到尖端精密清潔解決方案和光學塗層持續增長，此外對某些室內半導體工具和組件的需求也有所增加。

For the second quarter, adjusted segment EBITDA increased nearly 4%. Adjusted segment EBITDA margin was 19.6% versus 21.7% last year. Operating leverage was absorbed during the quarter, primarily due to $2.5 million of higher operating expenses supporting future growth initiatives and transactional foreign exchange headwinds totaling $2.8 million.

第二季度，調整後部門 EBITDA 成長近 4%。調整後分部 EBITDA 利潤率為 19.6%，去年為 21.7%。本季營運槓桿被吸收，主要原因是支持未來成長計畫的營運費用增加 250 萬美元，以及交易外匯逆風總計 280 萬美元。

In the first half of 2025, AST's adjusted segment EBITDA margin was 20.7%, with increased operating expenses supporting growth programs totaling $4.3 million and $3 million of unfavorable transaction FX. As Eric noted, we continue to make targeted growth investments in areas where we have the strongest competitive advantages while implementing our continuous improvement playbooks to drive enhanced profitability and achieve our longer-term goals for AST segment performance.

2025 年上半年，AST 調整後的分部 EBITDA 利潤率為 20.7%，支援成長計畫的營運費用增加總計 430 萬美元，不利交易外匯影響為 300 萬美元。正如 Eric 所指出的，我們將繼續在我們擁有最強競爭優勢的領域進行有針對性的成長投資，同時實施我們的持續改進計劃，以提高盈利能力並實現 AST 部門業績的長期目標。

Turning to the balance sheet and cash flow. Our balance sheet remains strong, and we have ample financial flexibility to execute on our long-term organic growth initiatives while considering select acquisitions that fit our rigorous strategic and financial objectives without the use of excess leverage. On May 29, 2025, we successfully completed an offering of $450 million of 6.125% senior notes due in 2033. A portion of the net proceeds of the newly issued senior notes was used to fully redeem the outstanding $350 million of 5.75% senior notes due 2026.

轉向資產負債表和現金流。我們的資產負債表仍然強勁，我們擁有充足的財務靈活性來執行我們的長期有機成長計劃，同時考慮選擇符合我們嚴格的策略和財務目標的收購，而無需使用過度槓桿。2025 年 5 月 29 日，我們成功完成了 4.5 億美元、2033 年到期的 6.125% 優先票據的發行。新發行的優先票據淨收益的一部分用於全額贖回 2026 年到期的 3.5 億美元 5.75% 優先票據。

In addition, we completed an amendment to our credit agreement on April 9, which doubled the size of our revolving credit facility to $800 million. On June 30, revolver capacity was $770 million. As a result of these refinancing and debt repayment actions, we now expect lower net interest expense of $26 million to $28 million for 2025 versus our previous expectation of $34 million to $36 million. We ended the second quarter with net debt of $364 million, resulting in a net leverage ratio of 1.4 times trailing 12-month adjusted EBITDA.

此外，我們於 4 月 9 日完成了信貸協議的修訂，將循環信貸額度增加了一倍，達到 8 億美元。6 月 30 日，循環信貸額度為 7.7 億美元。由於這些再融資和債務償還行動，我們現在預計 2025 年的淨利息支出將下降至 2,600 萬至 2,800 萬美元，而先前預期為 3,400 萬至 3,600 萬美元。我們第二季的淨負債為 3.64 億美元，導致過去 12 個月調整後 EBITDA 的淨槓桿率為 1.4 倍。

Free cash flow in the 6 months ended June 30 was $52.8 million versus $35.5 million last year. Higher net income driven by strong operating performance, working capital management and lower cash interest expense were the primary drivers of free cash flow growth. We continue to expect capital expenditures to be around $50 million this year as we invest in future growth opportunities across the company at accretive margin and return thresholds.

截至 6 月 30 日的 6 個月內，自由現金流為 5,280 萬美元，而去年同期為 3,550 萬美元。強勁的經營業績、營運資本管理和較低的現金利息支出所推動的淨收入增加是自由現金流成長的主要驅動力。我們繼續預計今年的資本支出將在 5000 萬美元左右，因為我們將以增值利潤和回報門檻投資整個公司的未來成長機會。

Finally, our strong balance sheet and cash generation provide us with ample liquidity to make these investments while continuing to return capital to shareholders. In the second quarter, we paid a $0.31 per share quarterly dividend with year-to-date payments totaling $13.2 million. We also have an outstanding $50 million share repurchase authorization expiring in October 2026.

最後，我們強勁的資產負債表和現金產生能力為我們提供了充足的流動性來進行這些投資，同時繼續向股東返還資本。第二季度，我們支付了每股 0.31 美元的季度股息，年初至今的支付總額為 1,320 萬美元。我們還有一項未償還的 5,000 萬美元股票回購授權，將於 2026 年 10 月到期。

Turning now to guidance. We are raising full year 2025 guidance and now expect Enpro sales growth to be between 5% and 7% versus our previous expectation of low to mid-single-digit revenue growth. Based on our better sales outlook, we now expect adjusted EBITDA in the range of $270 million to $280 million and adjusted diluted earnings per share in the range of $7.60 to $8.10.

現在轉向指導。我們正在上調 2025 年全年業績預期，目前預計 Enpro 的銷售額成長率將在 5% 至 7% 之間，而我們先前預期的營收成長率將為低至中等個位數。基於我們更好的銷售前景，我們現在預計調整後的 EBITDA 在 2.7 億美元至 2.8 億美元之間，調整後的每股攤薄收益在 7.60 美元至 8.10 美元之間。

Previously, we expected adjusted EBITDA in the range of $262 million to $277 million and adjusted diluted earnings per share of $7 to $7.70. The normalized tax rate used to calculate adjusted diluted earnings per share remains at 25% and fully diluted shares outstanding are 21.2 million. The primary factors driving our increased guidance ranges are a stronger outlook for aerospace applications, continued strength in food and biopharma markets and slightly improved orders in general industrial markets in Sealing Technologies. We continue to expect weak commercial vehicle OEM demand for the remainder of the year in this segment. Altogether, we expect Sealing to show top line growth in the mid-single-digit range for the year with segment profitability remaining at the high end of our previously communicated range of 30% plus or minus 250 basis points.

先前，我們預計調整後EBITDA將在2.62億美元至2.77億美元之間，調整後稀釋每股盈餘將在7美元至7.70美元之間。用於計算調整後稀釋每股盈餘的標準稅率仍為25%，完全稀釋流通股數為2,120萬股。推動我們提高指導範圍的主要因素是航空航天應用前景更加強勁、食品和生物製藥市場持續走強以及密封技術一般工業市場訂單略有改善。我們預計今年剩餘時間內該領域的商用車 OEM 需求仍將疲軟。總體而言，我們預計 Sealing 公司今年的營收成長率將達到中等個位數，而分部獲利能力仍將保持在我們先前公佈的 30% 上下 250 個基點的區間高端。

In AST, incrementally better demand for in-chamber semiconductor tools and assemblies and continued strength in leading-edge precision cleaning solutions are now expected to drive AST sales growth in the high single to low double-digit range year-over-year. Despite continued investments supporting growth programs and transaction FX headwinds, we expect full year AST segment profitability to again exceed 20%. Tariff exposures remain minimal and manageable as we move into the second half. Our supply chain teams are executing with agility and resilience, well prepared to perform in a variety of macroeconomic environments.

在 AST 中，對室內半導體工具和組件的需求逐漸增加，以及尖端精密清潔解決方案的持續強勁增長，預計將推動 AST 的銷售額同比增長 100%，達到高個位數至低兩位數。儘管持續的投資支持成長計畫和交易外匯逆風，我們預計全年 AST 部門獲利能力將再次超過 20%。隨著我們進入下半年，關稅風險仍然很小且可控。我們的供應鏈團隊行動敏捷、有彈性，為在各種宏觀經濟環境中表現做好了充分準備。

I will now turn the call back to Eric for closing comments.

現在我將把電話轉回給 Eric 進行最後發言。

Thank you, Joe. We are eager to continue demonstrating our leading-edge capabilities and differentiated products and solutions that deliver significant value to our customers and drive long-term profitable growth. Our development programs that encourage our colleagues to grow both personally and professionally in the early days of Enpro 3.0 will help unlock the full potential of our team to advance our strategy and create value for all stakeholders. I would like to thank our shareholders for their support as we embark on the next phase of our value-creating strategy, Enpro 3.0.

謝謝喬。我們渴望繼續展示我們領先的能力以及差異化的產品和解決方案，為客戶創造巨大價值，並推動長期獲利成長。在 Enpro 3.0 初期，我們鼓勵同事在個人和職業方面取得成長的發展計劃將有助於充分發揮我們團隊的潛力，推進我們的策略並為所有利益相關者創造價值。在我們開始實施價值創造策略的下一階段 Enpro 3.0 之際，我要感謝股東們的支持。

Thank you for your interest in Enpro, and we'll now welcome your questions.

感謝您對 Enpro 的關注，我們現在歡迎您提出問題。

Thank you. We will now be conducting the question-and-answer session. (Operator Instructions)

謝謝。我們現在將進行問答環節。（操作員指示）

Jeff Hammond, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Jeff Hammond。

Hey, good morning, everyone. I'm sorry, I missed the FX transaction headwind in Sealing. And then just on the nuclear, is that just a goodness that was there last year? Or was there timing between quarters this year as well?

嘿，大家早安。抱歉，我錯過了 Sealing 中的外匯交易逆風。那麼就核子問題而言，這只是去年發生的好事嗎？或者今年各季度之間也有時間安排嗎？

Yeah. Jeff, this is Joe. For the nuclear, answer is both, right? Last year, second quarter was a very, very strong nuclear quarter. We had a series of timing of orders for replacement cycles. And then this year, we kind of had the opposite effect. 1Q was very strong. Second quarter, we saw some timing just between 1Q and 3Q. So that's really a timing issue on nuclear. underlying demand is very strong. On the transactional FX, so the impact we're feeling here is in transactions that are in nonfunctional currency denomination. So we pointed to it most predominantly in AST, where we had $2.6 million in the quarter.

是的。傑夫，我是喬。就核子問題而言，答案是兩者都有，對嗎？去年第二季是核能領域非常強勁的一個季度。我們有一系列更換週期的訂單時間表。但今年，我們卻得到了相反的效果。第一季表現非常強勁。第二季度，我們看到第一季和第三季之間的一些時間。所以這確實是核能的一個時機問題。潛在需求非常強勁。對於交易外匯，我們在這裡感受到的影響是非功能性貨幣面額的交易。因此，我們主要指出了 AST，本季我們的 AST 收入為 260 萬美元。

Most of that impact is in Taiwan, where we're US dollar functional, but we have certain local expenses that are in Taiwanese dollars, so predominantly salary and benefits, lease obligations and liabilities attached to income tax. The impact was less in Sealing, but we had a similar effect, right, with the weakening dollar overall, anywhere ranging from 5% to 12%, depending on the alternate currency, where we had expenses and liabilities tied to local currencies that were not US dollar functional is where we felt that impact.

大部分影響發生在台灣，我們在那裡使用美元，但我們有一些以新台幣計價的本地支出，主要是工資和福利、租賃義務和與所得稅相關的負債。在 Sealing 的影響較小，但我們也受到了類似的影響，對吧，美元整體走弱，根據替代貨幣的不同，降幅在 5% 到 12% 之間，我們的支出和負債與不具備美元功能的當地貨幣掛鉤，我們感受到了這種影響。

And in Sealing, it was $1.9 million.

在 Sealing，這個數字是 190 萬美元。

Yeah. I mean back on AST a little bit, Jeff. I mean, obviously, we felt the impact of FX on margins year-over-year in AST, and we pointed to the $2.5 million of growth investments there that we're making in OpEx tied to critical areas where we're investing with growth behind growth. If you just took out the FX piece of roughly $2.8 million year-over-year, right, AST segment margins would be in the mid-22% range. And then you see the growth investment expense around OpEx impacting us by another 2.5% roughly. So you can see the underlying performance of AST from an operational perspective, which we're quite happy with at the moment.

是的。我的意思是回到 AST 上來，傑夫。我的意思是，顯然，我們感受到了外匯對 AST 利潤率的影響，我們指出，我們在營運支出方面投入的 250 萬美元的成長投資與我們在成長背後的投資關鍵領域相關。如果扣除年比約 280 萬美元的外匯部分，AST 部門的利潤率將在 22% 左右。然後你會看到圍繞 OpEx 的成長投資費用對我們產生了另外約 2.5% 的影響。因此，您可以從營運角度看到 AST 的底層效能，我們目前對此非常滿意。

Yeah, that's one I wanted to come back to. So how should we think about incremental margins in AST into the second half? And do these FX headwinds, is that kind of onetime to the quarter? Or do they stay with us for a bit?

是的，這就是我想要回歸的地方。那麼，我們該如何看待下半年 AST 的增量利潤呢？這些外匯逆風是否會在本季出現？還是他們會跟我們待一會兒？

Yeah. For the most part, the FX headwinds were impacted by the significant weakening of the U.S. dollar in the second quarter. So we don't expect that to continue, especially not in the magnitude that we saw in 2Q based on the revaluation of the payment out of liabilities. But AST should continue to leverage pretty well going forward. I mean we've invested in key growth areas behind geographical expansion, technology differentiation in different areas, including Arizona, Milpitas and Taiwan. And we've put in people expenses, OpEx associated with that. So as revenue comes associated with those growth investments, it should leverage pretty well as we move into the second half of this year and into the next.

是的。在很大程度上，外匯逆風受到第二季美元大幅貶值的影響。因此，我們預計這種情況不會持續下去，尤其是不會像我們在第二季度根據負債支付的重新評估所看到的那樣嚴重。但 AST 在未來應該會繼續發揮良好的槓桿作用。我的意思是，我們在地理擴張、不同地區的技術差異化背後的關鍵成長領域進行了投資，包括亞利桑那州、米爾皮塔斯和台灣。我們也投入了與此相關的人力成本和營運成本。因此，隨著收入與這些成長投資的聯繫，當我們進入今年下半年和下半年時，它應該會產生良好的槓桿作用。

Okay. And then just last one. Sealing, I guess the inflection or improvement in ASTs was pretty apparent, and I understand the guide up there. Sealing, what's driving the better growth rate into the second half? I think you said mid-single digits you're now thinking for that business.

好的。然後是最後一個。密封，我猜 AST 的變化或改進非常明顯，而且我理解上面的指南。Sealing，是什麼推動了下半年更好的成長率？我認為您所說的是，您現在正在考慮將該業務的利潤定為中等個位數。

Yeah, Jeff, there's a bunch of good things going on in Sealing. We have some new programs and customer wins, specifically in OEM commercial truck with our product that we talked about several times in the past. We're starting to win more and more customer business there with the large OEMs that will transition to aftermarket over a period of time. But in addition to that, our efforts in space, we picked up some significant wins with a few new customers in the last quarter that will start to show up in the balance at the end of this year that are going to require a little bit more investment for us than we've already planned for. But they're all exciting opportunities in that business is growing rapidly. It's really got a good future ahead of us. So that's leading to the guidance improved.

是的，傑夫，Sealing 中發生了很多好事。我們有一些新的項目和客戶，特別是我們過去多次談到的採用我們產品的 OEM 商用卡車。我們開始在那裡贏得越來越多的客戶業務，大型原始設備製造商將在一段時間內轉型到售後市場。但除此之外，我們在太空領域的努力，使我們在上個季度獲得了一些新客戶，取得了一些重大勝利，這些勝利將在今年年底開始顯現，這將需要我們進行比原計劃多一點的投資。但由於業務正在快速成長，這些都是令人興奮的機會。我們的前途確實一片光明。因此這會導致指導得到改善。

In addition, markets are still pretty strong. If you look across our general industrial, we're still -- our book-to-bill is strong. Our backlog is strong. And so we're excited about the second half of the year. But a lot of good things are happening. We continue to focus on execution and execute extremely well, and we control the things we can control. And life is good at Enpro.

此外，市場依然相當強勁。如果你看一下我們的一般工業，我們仍然 - 我們的訂單出貨比很強。我們的積壓訂單很多。因此，我們對今年下半年充滿期待。但很多好事正在發生。我們繼續專注於執行，並且執行得非常好，我們控制著我們能夠控制的事情。在 Enpro 生活很美好。

(Operator Instructions)

（操作員指示）

Steve Ferazani, Sidoti & Company.

史蒂夫·費拉扎尼 (Steve Ferazani)，Sidoti & Company。

Just wanted to ask about the raise -- since you talked about the raised Sealing expectations, turn over to the raised AST expectations. You were talking now potentially low double-digit growth this year, which would indicate pretty strong second half growth. Is that an extension of what you were seeing in 2Q? Or you could talk a little bit about what you're seeing second half for AST?

只是想問加薪的問題——既然您談到了提高密封期望，那就轉到提高 AST 期望。您現在談論的是今年可能出現的低兩位數成長，這表明下半年的成長相當強勁。這是您在第二季度看到的情況的延伸嗎？或者您可以稍微談談您對 AST 下半年的看法？

Second half AST, we have a lot of investment that's gone on in the past. We're starting to get a little bit of that coming in now. As we said earlier, Joe mentioned, we have investments both in Arizona, Milpitas, California and Taiwan that are all coming out along with Singapore. So we're getting a little bit of benefit from that, that will accelerate over time. In addition, I would say a little bit of market recovery, although I wouldn't say it's significant. It's still very choppy in that regard. But overall, the business is healthy and getting better.

AST 在下半場，我們過去進行了大量投資。我們現在開始得到一些這樣的資訊。正如我們之前所說，喬提到，我們在亞利桑那州、加州米爾皮塔斯和台灣都有投資，這些投資都是與新加坡一起進行的。因此，我們從中獲得了一點好處，而且這種好處會隨著時間的推移而加速。此外，我認為市場會稍微復甦，儘管復甦的幅度並不大。從這方面來看，情況仍然很不穩定。但總體而言，業務狀況良好且正在好轉。

Where are you in the Arizona? I know you're going through a lengthy certification process. Is that generating material revenue now? And what's can you give any kind of indication of the ramp on that this year?

你在亞利桑那州哪裡？我知道您正在經歷一個漫長的認證過程。這現在能產生物質收入嗎？您能否透露一下今年這股趨勢將如何發展？

I wouldn't say it's generating material revenue. We're still in the testing phase, if you will, and certification phase, and that continues.

我不會說它正在產生物質收入。如果你願意的話，我們仍處於測試階段和認證階段，並且將繼續下去。

I'd add, Steve, we're like Eric mentioned, we're in the qualification phase, which is going very well in Arizona. But we are supporting a little bit from Milpitas as well. So in areas where we have spent the time in the past to demonstrate our capabilities in Milpitas and have the ability to be qualified and fully support our customers there. Some of the early revenue from customer locations in Arizona is being qualified and supported with test volumes in Arizona, but also we have the ability to supplement from Milpitas. So that's supporting some of the revenue growth that we've seen as well.

我想補充一下，史蒂夫，就像艾瑞克提到的那樣，我們正處於資格認證階段，在亞利桑那州的進展非常順利。但我們也從米爾皮塔斯提供了一些支持。因此，我們過去在米爾皮塔斯花費了大量時間來展示我們的能力，並且有能力為那裡的客戶提供合格的全面支援。來自亞利桑那州客戶地點的部分早期收入正在通過亞利桑那州的測試量進行認證和支持，但我們也有能力從米爾皮塔斯進行補充。因此這也支持了我們所看到的部分收入成長。

Got it. I did want to ask about one comment you made in terms of Sealing growth. You mentioned compositional analysis. I know that comes out of the AMI acquisition from last year. Are you seeing any successes there yesterday -- lately? Can you sort of talk about how that market is developing for you since that acquisition?

知道了。我確實想問您關於密封增長方面所發表的評論。您提到了成分分析。我知道這是去年 AMI 收購的結果。您昨天或最近在那裡看到任何成功嗎？您能談談自收購以來該市場的發展嗎？

It's been outstanding. They continue to have exceeded our growth expectations with both new customers and existing. That business has just been a home run. Outstanding leadership by Kevin out there.

非常出色。無論是新客戶還是現有客戶，他們的成長都超出了我們的預期。這項業務剛剛取得了成功。凱文的領導能力非常出色。

Yes. We're also investing in additional capacity expansion and new capabilities within AMI. So not only we're delivering on our existing capabilities and technologies, but there's more coming, right, with additional capacity and new technologies and new products that the team is launching.

是的。我們也正在投資 AMI 的額外容量擴充和新功能。因此，我們不僅發揮現有的能力和技術，還將提供更多的能力，包括額外的容量以及團隊正在推出的新技術和新產品。

Yeah, they've outgrown the space they're in and they'll be moving into a new building later this year.

是的，他們已經發展壯大，現有的空間不夠用了，今年稍後他們將搬進一棟新大樓。

And also if I could just ask about go ahead, go ahead.

另外，如果我可以詢問是否可以繼續，那就繼續吧。

I was just going to say we're talking about Sealing, and I want to just point out that, that was our second best quarter ever in Sealing. So although it was a difficult comp last year, it's our second best quarter ever. And I think it's going to be better in the future.

我只是想說我們正在談論 Sealing，我只想指出，這是我們在 Sealing 有史以來第二好的季度。因此，儘管去年的業績很艱難，但這是我們有史以來第二好的季度。我認為未來情況會更好。

Excellent. And then just on the expanded credit availability, should we be thinking about M&A at all? How is the M&A market looking like?

出色的。那麼，就擴大信貸可用性而言，我們是否應該考慮併購？併購市場現況如何？

Yeah. I mean we continue to be very active there, proactive in working our pipeline. There are opportunities that are starting to free up a little bit, right? We're extremely active. As we've talked about in the past, Steve, we continue to be very excited by some of these growth nodes that we have in key markets where we have these kind of 5% to 8% of total Enpro revenue positions like in compositional analysis that we just talked about, food and biopharma, space and aerospace, surface protection and surface coating. These are spaces that we really like. We're actively working our development pipeline there. And it's just the ability to meet our financial and strategic criteria and be actionable at the same time. So we're working it hard.

是的。我的意思是，我們將繼續在那裡非常活躍，並積極主動地進行我們的管道工作。機會開始一點點釋放出來了，對吧？我們非常活躍。正如我們過去談到的，史蒂夫，我們對我們在關鍵市場中的一些成長節點感到非常興奮，在這些市場中，我們的收入佔 Enpro 總收入的 5% 到 8%，例如我們剛才談到的成分分析、食品和生物製藥、航太和航空航太、表面保護和表面塗層。這些是我們真正喜歡的空間。我們正在那裡積極開展我們的開發工作。它不僅能滿足我們的財務和策略標準，還能同時發揮實際作用。所以我們正在努力工作。

This does now conclude the question-and-answer session. I would now like to turn the floor back over to James Gentile for closing comments.

問答環節到此結束。現在我想把發言權交還給詹姆斯金蒂爾，請他發表最後評論。

Thank you for your interest in Enpro. We're delighted with the balance of 2025 and the forward look. It's going to be an exciting few years ahead. Take care.

感謝您對 Enpro 的關注。我們對 2025 年的平衡和未來展望感到滿意。未來的幾年將會是令人興奮的幾年。小心。

Thank you. This does conclude today's teleconference. We appreciate your participation. You may disconnect at this time. Enjoy the rest of your day.

謝謝。今天的電話會議到此結束。感謝您的參與。您現在可以斷開連線。享受剩餘的一天。