Enpro Inc. (NPO) 2026 Q1 法說會逐字稿

Greetings, and welcome to the Enpro First Quarter 2026 Earnings Conference Call.

各位好，歡迎參加 Enpro 2026 年第一季財報電話會議。

(Operator Instructions).

(接線員指示)。

I will now turn the conference over to James Gentile, Vice President, Investor Relations.

現在我將把會議交給投資人關係副總裁 James Gentile。

Thank you. You may begin.

謝謝。您可以開始了。

Thanks, Jesse, and good morning, everyone.

謝謝你，Jesse，各位早安。

Thank you for joining us today as we review ENPRO's first quarter 2026 earnings results and discuss our improved outlook for 2026. I'll remind you that this call is being webcast at enpro.com, where you can find the presentation that accompanies the call.

感謝各位今天加入我們，一同回顧 ENPRO 2026 年第一季財報結果，並討論我們對 2026 年更為改善的展望。提醒各位，本次電話會議將於 enpro.com 進行網路直播，您也可在該網站找到與本次會議搭配的簡報。

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

今天與我一同出席的有：總裁暨執行長 Eric Vaillancourt，以及執行副總裁暨財務長 Joe Bruderek。

During this morning's call, we'll 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.

在今天上午的電話會議中，我們將引用多項非 GAAP 財務衡量指標。將歷史非 GAAP 指標與可比較 GAAP 指標對帳的表格，已收錄於簡報資料的附錄中。

Also, a friendly reminder that we will be making statements on this call, including our current perspectives for full-year 2026 guidance 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. We do not undertake any obligation to update these forward-looking statements.

另外也友善提醒，本次電話會議中我們將發表若干聲明，包括我們目前對 2026 全年指引的觀點；這些並非歷史事實，屬於前瞻性陳述。此類陳述涉及多項風險與不確定性，包括我們向 SEC 提交文件中所述者。我們不承擔更新這些前瞻性陳述的任何義務。

It is now my pleasure to turn the call over to Eric Vaillancourt, our President and Chief Executive Officer. Erik.

現在我很高興把電話會議交給我們的總裁暨執行長 Eric Vaillancourt。Eric。

Thanks, James, and good morning, everyone.

謝謝你，James，各位早安。

Thank you for your interest in ENPRO as we discuss our first quarter results, provide an update on strategic initiatives, and share our current views for the balance of 2026.

感謝各位對 ENPRO 的關注。我們將討論第一季業績、提供策略性計畫的最新進展，並分享我們對 2026 年剩餘期間的目前看法。

Before we discuss our results for the first quarter, I would like to recognize our 4,000 colleagues across the company who are accelerating their personal and professional growth, while contributing to ENPRO's strategic and financial successes.

在討論第一季業績之前，我想先表揚公司遍布各地的 4,000 位同仁；他們在加速個人與專業成長的同時，也為 ENPRO 的策略與財務成功做出貢獻。

Momentum and excitement is showing up throughout the organization, and we are off to a strong start in the 2nd year of ENFRO 3.0.

整個組織都展現出動能與熱情，我們在 ENFRO 3.0 的第二年開局強勁。

We are energized to continue providing critical products and solutions for our customers, while driving significant enterprise value creation by unlocking compounding strengths of our portfolio.

我們充滿幹勁，將持續為客戶提供關鍵產品與解決方案，同時透過釋放我們投資組合的複利式優勢，推動顯著的企業價值創造。

Our leading market positions, committed colleagues and strong balance sheet support the continued execution of our multi-year value creation strategy.

我們領先的市場地位、投入的同仁以及強健的資產負債表，支持我們持續執行多年期的價值創造策略。

After my update, I will turn the call over to Joe for a more detailed discussion of our results and drivers of our increased guidance for 2026.

在我更新完之後，我會把電話會議交給 Joe，更詳細說明我們的業績表現，以及我們上調 2026 年指引的驅動因素。

Now on to the highlights for the first quarter.

接下來談第一季重點。

We started 2026 off on the front foot with reported sales up nearly 11% year-over-year.

我們在 2026 年一開始就取得良好開局，公告營收年增近 11%。

Improving demand in semiconductor markets drove sales in the Advanced Surface Technologies segment up over 11%.

半導體市場需求改善，帶動先進表面技術（Advanced Surface Technologies）事業群營收成長超過 11%。

Additionally, the contributions from the two businesses that we acquired in the fourth quarter. Alta Measurement Solutions and Overlook Industries drove ceiling technology sales up 10.8%. Total of company adjusted EBITDA increased nearly 13% to over $76 million at a margin over 25% for the first quarter.

此外，我們在第四季收購的兩項業務Alta Measurement Solutions 與 Overlook Industries 的貢獻，帶動 Sealing Technologies 事業群營收成長 10.8%。公司整體調整後 EBITDA 成長近 13%，達到逾 7,600 萬美元，第一季 EBITDA 利潤率超過 25%。

We are pleased with these results, especially as we continue to invest in growth opportunities across the company at high-margin return thresholds while accelerating investments in the development and growth of our colleagues.

我們對這些成果感到滿意，尤其是在我們持續以高毛利回報門檻投資公司各項成長機會的同時，也加速投入同仁的培育與成長。

Throughout our organization, teams are excited to drive our 3.0 strategy forward. Our early progress shows the benefits we expect to unlock as we move into this phase of our strategy.

在整個組織中，各團隊都對推進我們的 3.0 策略感到振奮。我們的早期進展已展現出進入此策略階段後，預期可釋放的效益。

We are confident that our proven excellent execution will allow us to continue to succeed in a variety of macroeconomic backdrops.

我們有信心，憑藉一貫且卓越的執行力，能在各種總體經濟環境下持續成功。

In AST, positive trends across the segment's portfolio of products and solutions are translating into strong performance.

在 AST 方面，該事業群產品與解決方案組合的正向趨勢，正轉化為強勁表現。

The slope of the demand curve has steepened with order patterns accelerating during the first quarter ahead of our expectations at the start of the year.

需求曲線的斜率變得更陡峭，第一季訂單型態加速，超出我們年初的預期。

For us, execution is top of mind and we began building inventory during the first quarter to ensure that we can effectively deliver for our customers and proactively manage potential capacity, supply chain and labor constraints as demand increases.

對我們而言，執行力是首要重點；我們在第一季開始建立庫存，以確保能有效交付客戶需求，並在需求上升時，主動管理潛在的產能、供應鏈與人力限制。

We are already seeing the investments we made in AST during the downturn beginning to bear fruit in the early stages of the recovery cycle.

我們已經看到在景氣下行期間對 AST 所做的投資，正於復甦循環的早期階段開始開花結果。

We expect these investments will position us well to capture opportunities from the acceleration of semiconductor capital equipment spending for the balance of the year and beyond.

我們預期這些投資將使我們在今年剩餘期間及未來，能把握半導體資本設備支出加速所帶來的機會。

We also believe that our vertical integration model is a key differentiator for ENPRO in the next phase of the semiconductor industry growth.

我們也相信，垂直整合模式將成為 ENPRO 在半導體產業下一階段成長中的關鍵差異化優勢。

As many of our new business wins are using more of our solutions to drive value for our customers, enhancing our specified position and critical in-chamber tools, including gas dispersion and wafer handling applications.

由於我們許多新案的得標，正採用更多我們的解決方案來為客戶創造價值，進一步強化我們的指定供應地位與關鍵腔體內（in-chamber）工具，包括氣體分散與晶圓搬運等應用。

In addition, hard work to qualify and earn processor record designations solidifies our position in leading precision cleaning solutions, a business that is currently strong and accelerating.

此外，透過辛勤努力完成資格認證並取得 processor record 指定，鞏固了我們在精密清洗解決方案領域的領先地位；該業務目前表現強勁且正在加速。

Our capacity expansion is in Taiwan, California and Arizona.

我們的產能擴張布局在台灣、加州與亞利桑那州。

Both executed and ongoing, positioned us to participate in the rapid expansion of leading-edge chip production capacity supporting advanced computing and artificial intelligence.

這些已完成與持續進行中的擴產，使我們得以參與先進運算與人工智慧所帶動的先進製程晶片產能快速擴張。

In Sealing Technologies, segment revenue of 10.8% was primarily driven by the first full quarter contribution from the acquisitions of Alpha and Overlook, completed in the fourth quarter of 2025, recovering nuclear solution sales and currency tailwinds.

在 Sealing Technologies 方面，事業群營收成長 10.8%，主要由 2025 年第四季完成收購的 Alpha 與 Overlook 在第一個完整季度的貢獻、核能解決方案銷售回升，以及匯率順風所帶動。

Commercial vehicle sales were down year-over-year below our expectations as demand remained slow, although we're cautiously optimistic that we are nearing the bottom in commercial vehicle markets.

商用車銷售年減且低於我們預期，因需求仍然疲弱；不過我們審慎樂觀地認為，商用車市場可能已接近谷底。

Aerospace sales and ceiling were flat year-over-year, reflecting a difficult year-over-year comparison in commercial aerospace, which was partially offset by continued acceleration in demand for products supporting space applications.

航太與 Sealing Technologies 事業群營收年比持平，反映商用航太面臨較具挑戰的年比基期；但部分被支援太空應用產品需求持續加速所抵銷。

Total ceiling segment orders were up double-digits during the first quarter.

Sealing Technologies 事業群第一季總訂單量呈現雙位數成長。

Fueling Technologies' segment profitability remained strong at 32.5%, with disciplined execution helping to offset continued growth investments, softness in commercial vehicle sales and tepid general industrial demand internationally.

Fueling Technologies 事業群獲利能力仍維持強勁，利潤率為 32.5%；嚴謹的執行有助於抵銷持續的成長投資、商用車銷售疲弱，以及國際一般工業需求不振。

Aftermarket sales represented 60% of ceiling segment revenue in the quarter.

本季售後市場（aftermarket）銷售占 Sealing Technologies 事業群營收的 60%。

Integration is going well at Alfa and Overlook, and we are making the appropriate investments to fully integrate these businesses end-to-end growth and unlock additional growth opportunities.

Alfa 與 Overlook 的整合進展順利，我們正進行適當投資，以端到端完整整合這些業務、推動成長並釋放更多成長機會。

Our new colleagues are already finding ways to leverage Enpro Network, including our sourcing, supply chain capabilities and operational expertise while delivering strong top-line growth during the first quarter.

我們的新同仁已開始尋找方法運用 Enpro Network 的資源，包括我們的採購、供應鏈能力與營運專業，同時在第一季實現強勁的營收成長。

Additionally, AMI, which we acquired in January 2024, continues to perform above plan.

此外，我們於 2024 年 1 月收購的 AMI，持續表現優於計畫。

We expect the sealing technology segment to continue to deliver continued best-in-class performance.

我們預期密封技術事業群將持續交出同級最佳的卓越表現。

Our growth priorities underpinning the ENFRO (3.0) strategy remain unchanged and will guard our performance through 2030. For the long-term, we are positioned to generate mid to high-single-digit organic top-line growth with strong profitability and returns, complemented by capability expanding acquisitions to meet our rigorous strategic and financial criteria.

支撐 ENPRO（3.0）策略的成長優先事項維持不變，並將保障我們至 2030 年的表現。就長期而言，我們已具備條件在維持強勁獲利能力與報酬的同時，實現中至高個位數的有機營收成長；並透過擴充能力的併購作為補強，以符合我們嚴謹的策略與財務標準。

We are targeting mid-single-digit organic growth in sewing technologies. While at AST, we are targeting at least high-single-digit organic growth with both segments capable of generating 30% adjusted segment EBITDA margins plus or minus 250 basis points through 2030.

我們的目標是在縫製技術（sewing technologies）實現中個位數的有機成長。至於 AST，我們的目標是至少達到高個位數的有機成長，且兩個事業群皆有能力在 2030 年前達成 30% 的調整後事業群 EBITDA 利潤率，上下浮動 250 個基點。

Our cash flows allow us to maintain our strong balance sheet with a net leverage ratio currently at 1.9 times after taking into account the fourth quarter acquisitions of Alpha and Overlook.

我們的現金流使我們得以維持強健的資產負債表；在納入第四季對 Alpha 與 Overlook 的併購後，目前淨槓桿比率為 1.9 倍。

Our first capital allocation priority is to reinvest in the business and our people while pursuing select strategic acquisitions that expand our leading-edge capabilities and meet our stringent criteria to announce the use of excess leverage to drive growth in line or above ENPRO 3.0 goals.

我們資本配置的首要優先事項，是再投資於業務與人才，同時尋求精選的策略性併購，以擴大我們的領先能力並符合嚴格標準；並宣布運用多餘槓桿來推動成長，使其與 ENPRO 3.0 目標一致或高於該目標。

We are excited to deliver on our promises and continue to execute our strategic plan. Life is good at ENPRO and the future is bright.

我們很期待兌現承諾，並持續落實我們的策略計畫。ENPRO 的日子很好，未來一片光明。

Joe.

Joe。

Thank you, Eric, and good morning, everyone.

謝謝你，Eric，各位早安。

Enpro started 2026 with strong results and consistent execution despite a dynamic macroeconomic environment. For the first quarter, sales of $303 million increased nearly 11%, supported by strong year-on-year revenue growth at AST of over 11%, the contributions from the recent acquisitions and steady overall performance in the ceiling technology segment.

儘管總體經濟環境多變，Enpro 仍以強勁成果與一致的執行力展開 2026 年。第一季營收為 3.03 億美元，成長近 11%；其中 AST 年增逾 11% 的強勁營收成長、近期併購的貢獻，以及密封技術事業群整體穩健表現，均提供支撐。

First quarter adjusted EBITDA of $76.4 million increased nearly 13% compared to the prior year period.

第一季調整後 EBITDA 為 7,640 萬美元，較去年同期成長近 13%。

Total company adjusted EBITDA margin of 25.2% expanded by 40 basis points year-over-year, driven by consistent performance in the ceiling technology segment and a nearly 20% increase in AST segment EBITDA, which includes expenses tied to growth investments, both executed and ongoing.

公司整體調整後 EBITDA 利潤率為 25.2%，年增 40 個基點；主要受惠於密封技術事業群的穩定表現，以及 AST 事業群 EBITDA 近 20% 的成長（其中包含與成長投資相關的費用，包含已執行與持續進行者）。

Corporate expenses of $13.7 million in the first quarter of 2026 increased from $11.3 million a year ago, primarily driven by higher incentive compensation accruals and $1.2 million in restructuring costs.

2026 年第一季公司費用為 1,370 萬美元，高於去年同期的 1,130 萬美元，主要因較高的獎酬激勵提列，以及 120 萬美元的重整成本所致。

Adjusted diluted earnings per share of $2.14 increased 13%, largely driven by the factors behind adjusted EBITDA growth year-over-year.

調整後稀釋每股盈餘為 2.14 美元，成長 13%，主要由前述推動調整後 EBITDA 年增的因素所帶動。

Moving to a discussion of segment performance, ceiling technology sales increased 10.8% to $199 million. Growth was driven by the contributions from the Alpha and Overlook acquisitions, a recovery in nuclear solution sales from the choppiness experienced last year, strength in compositional analysis applications, as well as strategic pricing actions.

接著談各事業群表現，密封技術營收成長 10.8% 至 1.99 億美元。成長動能來自 Alpha 與 Overlook 併購的貢獻、核能解決方案銷售自去年波動中復甦、成分分析應用的強勁需求，以及策略性定價措施。

Beans gains more than offset soft commercial vehicle demand and slower general industrial sales internationally.

這些成長動能的增益，已足以抵銷商用車需求疲弱，以及國際一般工業銷售放緩的影響。

Foreign currency translation was also a tailwind.

外幣換算亦帶來順風。

North American general industrial, aerospace and food and biopharma sales were firm throughout the quarter. For the first quarter, adjusted segment EBITDA increased over 10%, driven by favorable mix, strategic pricing initiatives. Contributions from Alpha and Overlook and foreign exchange tailwinds, partially offset by lower commercial vehicle volumes and investment and growth initiatives.

北美一般工業、航太以及食品與生物製藥的銷售在整個季度都維持穩健。第一季調整後事業群 EBITDA 成長逾 10%，主要受惠於有利的產品組合與策略性定價措施。Alpha 與 Overlook 的貢獻及匯率順風亦提供助力，但部分被商用車出貨量下降，以及投資與成長計畫所抵銷。

Adjusted segment EBITDA margin was 32.5% and remained above 30% for the ninth consecutive quarter.

調整後事業群 EBITDA 利潤率為 32.5%，並已連續第九季維持在 30% 以上。

Turning now to Advanced Service Technologies.

接著談先進服務技術（Advanced Service Technologies）。

Sales for the first quarter were up over 11% and orders during the quarter hit a clear inflection point.

第一季營收成長逾 11%，且本季訂單出現明顯的轉折點。

Demand for precision cleaning solutions tied to advanced node chip production is accelerating.

與先進製程節點晶片生產相關的精密清洗解決方案需求正在加速。

In addition, our outlook for semiconductor capital equipment spending has improved, and we built inventory of key products during the first quarter to prepare for the expected increase in demand. For the first quarter, adjusted segment EBITDA increased 18.5% versus the prior year period.

此外，我們對半導體資本設備支出的展望已改善；並在第一季建立關鍵產品庫存，以因應預期的需求增加。第一季調整後事業群 EBITDA 較去年同期成長 18.5%。

Adjusted segment EBITDA margin expanded 140 basis points to 23.3%.

調整後事業群 EBITDA 利潤率擴張 140 個基點至 23.3%。

Operating leverage on higher sales growth and higher production volumes, as well as favorable mix were offset in part by $2 million of increased expenses tied to growth initiatives.

較高的銷售成長與更高的產量帶來的營運槓桿，以及有利的產品組合，部分被與成長計畫相關、增加的 200 萬美元費用所抵銷。

Our number one priority is to serve our customers and remain agile as we enter this period of unprecedented demand for our semiconductor products and solutions.

我們的首要任務是服務客戶，並在進入半導體產品與解決方案前所未有需求的期間，保持敏捷應變。

Moving 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 and consider select acquisitions that align with our strategic priorities and deliver attractive returns.

接著談資產負債表與現金流，我們的資產負債表仍然強健。我們也具備充足的財務彈性，以推動長期有機成長計畫，並評估符合策略優先事項且能帶來具吸引力報酬的精選併購。

We generated strong free cash flow in the first quarter, more than doubling from last year to $26.5 million, while capital expenditures increased nearly 40% to $13.1 million, largely supporting growth and efficiency projects.

第一季我們創造強勁的自由現金流，較去年增加逾一倍至 2,650 萬美元；同時資本支出增加近 40% 至 1,310 萬美元，主要用於支持成長與效率提升專案。

During the first quarter, we repaid $50 million in revolving debt, bringing our leverage ratio to 1.9 times trailing 12-month adjusted EBITDA.

第一季期間，我們償還了 5,000 萬美元的循環信貸債務，使槓桿比率降至過去 12 個月調整後 EBITDA 的 1.9 倍。

We expect to continue generating strong free cash flow in 2026 with an unchanged capital expenditure budget of around $50 million this year as we continue to invest in the company at solid margin and return thresholds.

我們預期 2026 年將持續創造強勁自由現金流；今年資本支出預算維持不變，約為 5,000 萬美元，因我們持續以穩健的利潤率與報酬門檻投資公司。

Finally, our strong balance sheet and cash generation provide us with ample liquidity to make these investments, while continuing to return capital to shareholders.

最後，強健的資產負債表與現金創造能力，為我們提供充足流動性以進行上述投資，同時持續回饋股東。

In the first quarter, we paid a $0.32 per share quarterly dividend totaling $6.9 million.

第一季我們支付每股 0.32 美元的季度股利，合計 690 萬美元。

We also have an outstanding $50 million share repurchase authorization.

我們也仍有 5,000 萬美元的股票回購授權額度尚未使用。

Moving now to our increased guidance.

接著談我們上調後的財測指引。

We are raising our total year 2026 guidance issued in mid-February and now expect total ENPRO sales to increase in the 10% to 14% range, up from 8% to 12% adjusted EBITDA in the range of $315 million to $330 million, up from $305 million to $320 million previously and adjusted diluted earnings per share to range from $8.85 to $9.50.

我們上調於 2 月中旬發布的 2026 全年指引；目前預期 ENPRO 全年總營收將成長 10% 至 14%（先前為 8% 至 12%），調整後 EBITDA 預估為 3.15 億至 3.30 億美元（先前為 3.05 億至 3.20 億美元），調整後稀釋每股盈餘預估區間為 8.85 至 9.50 美元。

Up from $8.50 to $9.20. The normalized tax rate used to calculate adjusted diluted earnings per share remains at 25% and fully diluted shares outstanding are $21.3 million. In Keeling Technologies, shorter cycle order patterns remain solid as we enter our seasonally strong second quarter.

高於先前的 8.50 至 9.20 美元。用於計算調整後稀釋每股盈餘的常態化稅率維持 25%，完全稀釋流通股數為 2,130 萬股。在密封技術（Keeling Technologies）方面，短週期訂單型態在進入季節性強勁的第二季之際仍維持穩健。

As Eric mentioned, we are seeing double-digit order growth year-on-year, despite a slightly softer commercial vehicle outlook than previously expected.

如 Eric 所提，儘管商用車展望較先前預期略為疲弱，我們仍看到訂單年增達雙位數。

And we expect mid-single-digit revenue growth, excluding a contribution from Alpha and Overlook in the Ceiling Technology segment for the year.

此外，我們預期密封技術事業群全年營收（不含 Alpha 與 Overlook 的貢獻）將呈現中個位數成長。

We are encouraged by positive order momentum in domestic, general, industrial, aerospace, food and biopharma and compositional analysis.

我們對國內、一般工業、航太、食品與生物製藥以及成分分析領域正向的訂單動能感到振奮。

As well as smaller but improving pockets of earned growth in areas such as communications and data center infrastructure.

此外，在通訊與資料中心基礎設施等領域，也有規模較小但正在改善的既有成長動能。

We expect these elements to support improved sequential sales performance in ceiling technologies into the second quarter, while not factoring in any recovery in commercial vehicle markets in ours. Improved guidance ranges.

我們預期這些因素將支撐天花板技術業務到第二季的逐季銷售表現改善，同時我們的預測並未納入商用車市場的任何復甦。上調指引區間。

Finally, we expect ceiling segment profitability to remain toward the high end of our long-term target range of 30% plus or minus 250 basis points for the year.

最後，我們預期天花板事業部的獲利能力在今年將維持在我們長期目標區間（30%上下250個基點）的高端水準。

In the Advanced Service Technology segment, we are seeing significant order momentum with strong acceleration in precision cleaning solutions and critical in-chamber tools.

在先進服務技術（AST）事業部，我們看到顯著的訂單動能，其中精密清洗解決方案與關鍵腔體內工具的加速成長尤為強勁。

New platforms and capacity expansions that we have invested in will begin to generate revenue in the second-half of 2026, with ramped schedules dependent on underlying volume into 2027 and beyond.

我們投資的新平台與產能擴充將於2026年下半年開始貢獻營收，而產能爬坡時程將取決於2027年及之後的基礎需求量。

At this time, we expect AST revenue growth in the mid-teens range year-over-year, with segment profitability improving to a run rate close to 25% by the end of 2026, as capacity and supply chains align to meet elevated demand levels.

目前我們預期AST營收年增率約在十幾%的區間，同時隨著產能與供應鏈對齊以滿足較高的需求水準，事業部獲利能力將改善，並在2026年底達到接近25%的常態化水準。

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

感謝各位今天撥冗參與。接下來我把電話交回Eric做結語。

Thank you, Joe.

謝謝你，Joe。

We are excited to demonstrate our strength and agility as we continue to accelerate our personal and profitable growth in the 2nd year of ENPRO 3.0.

在ENPRO 3.0的第二年，我們很期待展現我們的實力與敏捷性，並持續加速我們的有機且具獲利性的成長。

Thank you all for your interest in ENPRO. We'll now welcome your questions.

感謝各位對ENPRO的關注。接下來我們歡迎各位提問。

Thank you. We will now be conducting the question-and-answer session.

謝謝。我們現在開始進行問答環節。

(Operator Instructions).

（接線員指示）。

Our first question is coming from the line of Jeff Hammond with KeyBanc Capital Markets.

我們的第一個問題來自KeyBanc Capital Markets的Jeff Hammond。

Please proceed with your question.

請開始提問。

Hey, everyone. Good morning. This is Mitch Moore on for Jeff.

各位好。早安。我是代替Jeff的Mitch Moore。

Good morning.

早安。

Obviously, just really nice margin progression sequentially for AST.

顯然，AST的毛利率逐季改善非常亮眼。

Could you help us just unpack a little bit how that inventory investment helped margins in AST? And then separately, just could you help us understand the margin trajectory kind of through the balance of the year? Is it kind of a linear progression to that 25% you talked about?

能否請你們協助我們拆解一下，這項庫存投資如何幫助AST的毛利率？另外，也請協助我們理解今年剩餘期間的毛利率走勢。是否會大致線性地提升到你們提到的25%？

Yeah. Thanks, Mitch.

是的。謝謝你，Mitch。

As you noted, we did see progression from the low 20s to 23 and change for the first quarter. The inventory build, which is really important as we head into significant demand in the second quarter and more specifically for the back half of the year, contributed about 150 basis points to the margin increase in the first quarter. We also saw precision cleaning continue to be very strong.

如你所提到的，我們確實看到第一季毛利率從20%出頭提升到約23%多一些。庫存增加在我們迎接第二季、尤其是下半年顯著需求之際非常重要，並在第一季對毛利率提升貢獻了約150個基點。我們也看到精密清洗持續非常強勁。

Tied to advanced node precision cleaning work, both in Taiwan and the US, which helped margins and we're also seeing a little bit of leverage on the revenue growth.

這與先進製程節點的精密清洗工作相關，涵蓋台灣與美國，這有助於毛利率；同時我們也在營收成長上看到一些規模效益。

We expect to continue to build inventory a little bit in the second quarter, might be a little bit less than we had in the first quarter and then revenue increasing to offset any lower inventory build potentially In the second quarter.

我們預期第二季仍會小幅增加庫存，可能會比第一季少一些；而第二季營收增加可望抵消庫存增加幅度可能較小的影響。

So, margins relatively similar in the second quarter and then seeing incrementally throughout the second half pointing towards that roughly 25% run rate that we expect to exit the year at.

因此，第二季毛利率大致相近，而下半年將逐步改善，朝向我們預期在年底達到約25%的常態化水準。

Great. That's helpful. And then maybe just to ceiling, I think orders were up double-digits in the quarter. Could you just expand the order activity you saw there?

很好。這很有幫助。另外談到天花板業務，我想本季訂單年增達雙位數。能否請你們多談談看到的訂單活動？

Where you're seeing it, if it's concentrated or more broad-based. And then if you could just talk a little bit about your confidence in ceiling kind of picking up through the remainder of the year with a little bit slower start here?

你們主要在哪些領域看到需求，是集中在特定市場還是更廣泛？另外，若能談談你們對天花板業務在今年剩餘期間回升的信心也很好，因為目前開局稍慢。

Very confident ceiling picking up throughout the year.

我們對天花板業務在全年逐步回升非常有信心。

Our order rate is very strong, actually in the first quarter and building throughout the quarter. So very positive on the year.

我們第一季的接單率其實非常強，而且在整個季度中持續走高。所以我們對全年非常正面。

And we don't have any concerns there, very strong in North America. Space. Aerospace in general industrial in the U.S. Is still pretty strong. The only areas of weakness really is general industrial and a little bit in Europe and a little bit in Asia, but it still doesn't have any meaningful impact to our overall results.

我們對此沒有任何疑慮，北美表現非常強勁。航太領域。美國的一般工業中的航太相關仍相當強勁。真正較弱的區域只有一般工業在歐洲稍弱、在亞洲也稍弱一些，但對我們整體結果並沒有任何實質影響。

Okay, great. Thanks for taking my questions.

好的，很好。謝謝回答我的問題。

Thank you. Our next question is coming from the line of Steve Ferazani with Sidoti & Company. Please proceed with your question.

謝謝。下一個問題來自Sidoti & Company的Steve Ferazani。請開始提問。

Morning, everyone. Appreciate the detail on the presentation.

各位早安。感謝簡報中提供的細節。

Eric, I understand commercial vehicles still being weak. Obviously, we've seen three or four months of much stronger Class 8 truck orders, obviously coming off of a significant trough.

Eric，我理解商用車仍然疲弱。不過我們看到Class 8卡車訂單已連續三到四個月明顯轉強，當然是從相當低的谷底回升。

When would you start seeing that? And is that built in at all, that CV comes back at all in the second-half?

你們何時會開始看到這個影響？而你們的預測中是否有納入商用車在下半年任何程度的回升？

It's not built into our projections at all, as we said in the script, although I am cautiously optimistic that it does start to pick up at the second-half of the year.

我們的預測完全沒有把它納入，正如我們在講稿中所說；不過我謹慎樂觀地認為，下半年確實會開始回升。

Keep in mind, the reason for the acceleration in truck orders is really to avoid the extra cost of pollution enhancements in the trucks. And so right now, people are prioritizing trucks versus trailers. But that demand will normalize over time to roughly -- if you look over a 20-year cycle, it's about 250,000 units a year. We're somewhere 70 or 180 now.

請記住，卡車訂單加速的原因主要是為了避免卡車加裝污染排放改善所帶來的額外成本。因此目前大家優先購買卡車而非拖車。但這個需求會隨時間回歸常態；若以20年週期來看，大約每年25萬台。我們現在大概在7萬或18萬左右。

So, I expect, at the end of this year, beginning of next year, somewhere in that timeframe, you'll start to see some momentum, though. I mean, the ratio between trucks and trailers really doesn't change much. We expect to have about 1.1 trailers per truck, so you would expect that to come back.

所以我預期在今年底到明年初、差不多那個時間點，你會開始看到一些動能。我的意思是，卡車與拖車之間的比例其實不太會改變。我們預期每台卡車約對應1.1台拖車，因此你會預期拖車需求也會回來。

Aftermarket business remains very strong.

售後市場業務仍然非常強勁。

How are you feeling about the two acquisitions now with a quarter under your belt? I know that with Overlook, they had made some pretty significant capacity additions prior to the acquisition. In terms of those two businesses, do they require significant investments to grow moving forward or how do you feel about them?

你們如何看待這兩項收購案，在併入後已經過了一個季度？我知道Overlook在收購前已做了一些相當顯著的產能擴增。就這兩個事業而言，未來要成長是否需要重大投資，或你們對它們的看法如何？

--Very strong, very excited about them going forward. They don't require significant investments. Overlooked, they made a pretty significant investment and moved into a new building or did move into a new building in the first quarter, but that was already ongoing before we closed down the business. So really, it was just a move at this point.

--非常強勁，對他們未來的發展非常振奮。他們不需要重大投資。不過容易被忽略的是，他們確實做了一筆相當可觀的投資，並在第一季搬進了一棟新大樓，或是已經搬進新大樓，但那在我們關閉該業務之前就已在進行中。所以實際上，到目前為止就只是搬遷而已。

And so most of the, anyhow, that was already done. And their backlog and their performance is really impressive.

因此大部分的事情，總之，那些都已經完成了。而他們的在手訂單和表現確實令人印象深刻。

Alpha continues to go well, and so we're still excited about those businesses going forward.

Alpha 持續表現良好，所以我們對這些業務未來的發展仍然感到振奮。

I'll just add, Eric, that the integrations are going well. I think the teams are joining our functional support, and we're helping where we can there, and we're already seeing some supply chain opportunities.

我再補充一下，Eric，整合進展順利。我認為團隊正在加入我們的職能支援體系，我們也在力所能及之處提供協助，而且我們已經看到一些供應鏈方面的機會。

In addition, we're making some smaller investments, but investments in their commercial organizations to help expand growth opportunities and enter a few new markets and new customers, so we expect that's an area that we can add value and help them grow over time.

此外，我們也在做一些較小的投資，但會投資在他們的商業組織上，以協助擴大成長機會，並進入幾個新市場與新客戶，因此我們預期這會是我們能夠增值、並在時間推移中幫助他們成長的領域。

And I think you mentioned in the script that AMI, since the acquisition was 2024, I believe, continues to outperform. In general, how are you thinking about that compositional analysis market?

我想你在講稿中提到，AMI 自收購以來（我相信是在 2024 年）持續優於預期。整體而言，你們如何看待成分分析（compositional analysis）市場？

We love the space. We just would like to do more. And we continue to have a very active pipeline and continue to look for the right opportunities to meet all of our criteria that are exciting.

我們很喜歡這個領域。我們只是希望做得更多。我們持續有非常活躍的案源管線，並持續尋找符合我們所有標準、且令人興奮的合適機會。

Several opportunities aren't quite exciting. More and more opportunities seem like they're coming to market. So, there's more momentum in that space.

有幾個機會還不夠吸引人。越來越多的機會似乎正在進入市場。所以，這個領域的動能正在增強。

Overall, if you take into consideration the compositional analysis growth perspective, we're looking for a kind of minimum high-single-digit organic top-line growth moving forward with incremental investments to expand end market positions and commercial expertise.

整體而言，若從成分分析的成長角度來看，我們希望未來至少能達到高個位數的有機營收成長，同時透過增量投資來擴大終端市場的布局與商業專業能力。

Got it. That's helpful.

了解。這很有幫助。

Just if I get one more in terms of where you are with the various qualifying processes to meet advanced node production, is there a lot more to go there?

我再問一個：就你們在各項資格認證流程、以符合先進製程量產方面的進度而言，後面還有很多要做嗎？

I don't think it ever stopped, so let me start by saying that.

我不認為它曾經停止過，所以我先從這點說起。

So, no, Arizona is getting fully qualified now. I don't know how much longer It shouldn't be long at all. But at the same time, there's new investments in Taiwan that are just starting. There's new customers that are starting as well.

所以，不，亞利桑那現在正在完成全面認證。我不知道還需要多久——應該不會太久。但同時，台灣也有新的投資才剛開始。也有新的客戶正在啟動。

So, I don't think it ever ends where 2-nanometer is going to start to ramp at some point next little bit and then you're already trying to qualify 1.4.

所以，我不認為它會有結束的一天；2 奈米在接下來不久的某個時間點就會開始爬坡量產，而你又已經在嘗試認證 1.4。

So, it's stops.

所以，它不會停止。

I think of that as continued investment.

我把這視為持續性的投資。

Thanks, everyone.

謝謝各位。

Thanks, Steve.

謝謝你，Steve。

Thank you.

謝謝。

(Operator Instructions)

（接線員指示）

Our next question is coming from the line of Ian Zaffino with Oppenheimer & Company. Please proceed with your question.

下一個問題來自 Oppenheimer & Company 的 Ian Zaffino。請開始提問。

Hey, good morning. This is Isaac Sellhausen on for Ian. Thanks for taking the questions.

嗨，早安。我是代 Ian 提問的 Isaac Sellhausen。謝謝讓我提問。

Just on the updated guidance, if you could unpack a little bit more on what has changed with regards to the outlook for the AST business, maybe if you could parse out the demand drivers between cleaning, coating and the semi-cap side. It sounds like visibility is a bit better in capital equipment.

關於更新後的財測指引，能否再多拆解一下 AST 業務展望有哪些變化？也許可以把清洗、鍍膜（coating）以及半導體資本設備（semi-cap）端的需求驅動因素分別說明一下。聽起來在資本設備方面的能見度更好一些。

Yeah, good morning, Isaac.

好的，早安，Isaac。

Yeah, we're clearly seeing increased order momentum and longer lead times, and demand is inflecting significantly sooner and higher than we expected coming into the year from an AST's perspective.

是的，我們明顯看到訂單動能提升、交期拉長，而且從 AST 的角度來看，需求拐點出現得比我們年初預期更早、幅度也更大。

And it's coming from both. It's coming from precision cleaning and semiconductor capital equipment in really all geographies.

而且來源是兩方面都有。精密清洗與半導體資本設備在幾乎所有地區都帶來需求。

So, our increased guidance is pretty much all driven by AST.

因此，我們上調指引幾乎完全是由 AST 所驅動。

Our teams are rallying around meeting the higher demand, working with our customers and the entire supply chain and all of our partners to kind of meet the overall industry demand.

我們的團隊正全力以赴以滿足更高的需求，並與客戶、整個供應鏈以及所有合作夥伴協作，以因應整體產業需求。

The outlook is really bright for the rest of the year.

今年剩餘時間的展望非常亮眼。

The second half is firming up where when we have the call in February, we talked about we saw orders for the second half and really starting in the end of the second quarter, while the second quarter is filling in nicely, we're seeing some of that demand. Come a little sooner into the second quarter, and the second-half is clearly going to be significantly increased over the first half in the magnitude of double-digit increase second-half versus the first half.

下半年正在趨於明朗；我們在 2 月的電話會議中提到，我們看到下半年的訂單，且真正從第二季末開始。而在第二季的訂單填補得相當不錯的同時，我們也看到部分需求更早地在第二季就出現；而且下半年相較上半年顯然會大幅增加，幅度將是下半年相對上半年呈現雙位數成長。

And the industry is all talking about rallying to meet this higher demand and out through the end of '26 and really into '27. So there's tremendous optimism.

整個產業都在談如何集結力量以滿足更高的需求，並一路延伸到 2026 年底，甚至到 2027 年。所以市場極度樂觀。

And we expect to participate and even outperform what the market expects.

我們預期會參與其中，甚至表現優於市場預期。

Okay, great. And then just as a follow-up, on the margin outlook for both businesses, obviously, it sounds like you guys are managing any kind of inflationary pressure is just fine. But is there anything to call out maybe on the cost side with regards to whether it's fuel or equipment?

好的，很棒。接著追問一下，關於兩個業務的毛利率展望，顯然聽起來你們對任何通膨壓力的管理都做得很好。但在成本端是否有什麼需要特別指出的，例如燃料或設備方面？

But yeah, that would be helpful.

是的，這會很有幫助。

No, there really isn't anything that's going to be meaningful from the supply side or cost side.

沒有，供應端或成本端並沒有任何會造成重大影響的因素。

Life is good. We do a very good job in managing that in general.

一切都很好。整體而言，我們在管理這些方面做得非常好。

Thank you.

謝謝。

We have no further questions at this time, so I would like to turn the floor back over to James Gentile for closing comments.

目前沒有其他問題，因此我想把時間交回給 James Gentile 作結語。

Thank you, everyone. We're seeing strong momentum across ENPRO and look forward to updating all of you when we report second-quarter results in early August. Have a great rest of your day.

謝謝各位。我們看到 ENPRO 各項業務動能強勁，並期待在 8 月初公布第二季業績時向各位更新。祝各位今天剩餘時間愉快。

Thank you. Ladies and gentlemen, this does conclude today's teleconference. We thank you for your participation, and you may disconnect your lines at this time.

謝謝。各位女士、先生，今天的電話會議到此結束。感謝各位的參與，現在可以掛線。