nVent Electric PLC (NVT) 2022 Q2 法說會逐字稿

Welcome to the nVent Electric Second Quarter 2022 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded.

歡迎參加 nVent Electric 2022 年第二季度收益電話會議。 （操作員說明）請注意，此事件正在記錄中。

I'd like to turn the conference over to Mr. Tony Riter, Vice President, Investor Relations. Please go ahead.

我想將會議轉交給投資者關係副總裁 Tony Riter 先生。請繼續。

Thank you, Nick, and welcome to nVent's Second Quarter 2022 Earnings Call. On the call with me are Beth Wozniak, our Chief Executive Officer; and Sara Zawoyski, our Chief Financial Officer. Today, we'll provide details on our second quarter performance, provide an outlook for the third quarter and an update to our full year 2022 outlook.

謝謝你，尼克，歡迎參加 nVent 的 2022 年第二季度財報電話會議。與我通話的是我們的首席執行官 Beth Wozniak；和我們的首席財務官 Sara Zawoyski。今天，我們將提供有關我們第二季度業績的詳細信息，提供第三季度的展望以及我們對 2022 年全年展望的更新。

Before we begin, I will remind you that any statements made about the company's anticipated financial results are forward-looking statements subject to future risks and uncertainties. A such as the risks outlined in today's press release and nVent's filings with the Securities and Exchange Commission. Forward-looking statements are made as of today, and the company undertakes no obligation to update publicly such statements to reflect subsequent events or circumstances. Actual results could differ materially from anticipated results.

在我們開始之前，我會提醒您，任何關於公司預期財務業績的陳述都是前瞻性陳述，受未來風險和不確定性的影響。例如今天的新聞稿和 nVent 向美國證券交易委員會提交的文件中概述的風險。前瞻性陳述自今天起作出，公司不承擔公開更新此類陳述以反映後續事件或情況的義務。實際結果可能與預期結果大不相同。

Today's webcast is accompanied by a presentation, which you can find in the Investors section of nVent's website. References to non-GAAP financials are reconciled in the appendix of the presentation. We'll have time for questions after prepared remarks.

今天的網絡廣播附帶一個演示文稿，您可以在 nVent 網站的“投資者”部分找到該演示文稿。對非公認會計原則財務的引用在演示文稿的附錄中進行了核對。在準備好評論後，我們將有時間提問。

With that, please turn to Slide 3, and I will now turn the call over to Beth.

有了這個，請轉到幻燈片 3，我現在將把電話轉給 Beth。

Thank you, Tony, and good morning, everyone. It's great to be with you today to share our outstanding second quarter performance. Our nVent team has done a tremendous job serving our customers responding to strong demand and overcoming supply chain challenges. Our second quarter performance once again exceeded our guidance on sales and earnings. Our strategy to focus on high-growth verticals, new products and global expansion combined with strong execution were key to our success.

謝謝你，托尼，大家早上好。很高興今天與您分享我們出色的第二季度業績。我們的 nVent 團隊在為客戶應對強勁需求和克服供應鏈挑戰方面做得非常出色。我們第二季度的業績再次超出了我們對銷售和收益的指導。我們專注於高增長垂直領域、新產品和全球擴張的戰略以及強大的執行力是我們成功的關鍵。

We delivered record sales in Q2, growing 21% with broad-based growth and strong contribution from both price and volume. Orders grew double digits in the second quarter, and we exited with a solid backlog. Our ROS improved 130 basis points sequentially. Our Q2 EPS grew 14%. Given our strong second quarter results, we are again raising full year sales and adjusted EPS guidance.

我們在第二季度實現了創紀錄的銷售額，增長了 21%，基礎廣泛的增長以及價格和數量的強勁貢獻。第二季度訂單增長了兩位數，我們以大量積壓退出。我們的 ROS 依次提高了 130 個基點。我們的第二季度每股收益增長了 14%。鑑於我們強勁的第二季度業績，我們再次提高全年銷售額和調整後的每股收益指引。

Now on to Slide 4 for a summary of our second quarter performance. Sales in the quarter were up 21% organically with double-digit growth in each segment and vertical. This was well ahead of our Q2 guidance, driven by both price and volume. Our results continue to show we are winning and executing well. New products added 3 points to our growth, and we're on track to deliver 50 new products again this year. We generated $48 million in free cash flow and our adjusted EPS of $0.57 was up 14% from the prior year.

現在到幻燈片 4 來總結我們第二季度的表現。本季度銷售額有機增長 21%，每個細分市場和垂直領域均實現兩位數增長。在價格和數量的推動下，這遠遠超過了我們的第二季度指引。我們的結果繼續表明我們正在獲勝並且執行良好。新產品為我們的增長增加了 3 個點，今年我們有望再次推出 50 款新產品。我們產生了 4800 萬美元的自由現金流，調整後的每股收益為 0.57 美元，比上年增長 14%。

Overall, growth was broad-based across our key verticals, each organically growing double digits. Infrastructure led the way with continued strength in data solutions and power utilities. Commercial and Residential grew double digits driven by North America and Europe. Industrial continued its broad-based growth, particularly in material handling, automotive, food and beverage and chemical. And finally, in energy, we continue to see a nice recovery, particularly in MRO.

總體而言，我們的主要垂直領域的增長是廣泛的，每個領域都有機地增長了兩位數。基礎設施在數據解決方案和電力設施方面保持領先地位。商業和住宅在北美和歐洲的推動下實現了兩位數的增長。工業繼續其廣泛的增長，特別是在材料處理、汽車、食品和飲料以及化學領域。最後，在能源方面，我們繼續看到良好的複蘇，尤其是在 MRO 方面。

A driving factor in our strong results continues to be our focus on the electrification of everything. We believe we are 1 of the best positioned companies to grow with the secular mega trends. Looking at our geographical sales performance, we continue to see the strongest growth in the North America up nearly 30% in each of the segments. Europe was up high single digits and developing regions declined slightly.

我們取得強勁業績的一個驅動因素仍然是我們對一切電氣化的關注。我們相信我們是在長期大趨勢中成長的最佳定位公司之一。從我們的地域銷售業績來看，我們繼續看到北美地區最強勁的增長，在每個細分市場都增長了近 30%。歐洲以高個位數增長，發展中地區略有下降。

Looking ahead, we are raising our full year sales and EPS guidance, reflecting our second quarter performance. Our ongoing strength, strong orders and backlog gives us confidence in the rest of the year. While our outlook remains positive, we continue to be cautious given the macro uncertainties and ongoing supply chain challenges. We remain confident in our ability to execute and deliver for our customers and shareholders.

展望未來，我們正在提高全年銷售額和每股收益指引，以反映我們第二季度的業績。我們持續的實力、強勁的訂單和積壓使我們對今年剩餘時間充滿信心。儘管我們的前景仍然樂觀，但鑑於宏觀不確定性和持續的供應鏈挑戰，我們繼續保持謹慎。我們仍然對我們為客戶和股東執行和交付的能力充滿信心。

I will now turn the call over to Sara for some detail on our second quarter results and our updated outlook for 2022. Sara, please go ahead.

我現在將把電話轉給 Sara，了解我們第二季度業績和 2022 年最新展望的一些細節。Sara，請繼續。

Thank you, Beth. I'm pleased to share with you another quarter of strong performance with both sales and adjusted EPS above the high end of our guidance. Let's turn to Slide 5 to review our second quarter results. Sales of $728 million were up 21% relative to last year on both a reported and organic basis. Volume was strong adding 9 points to growth with price contributing 12 points. Acquisitions added another 4 points, which was offset by a 4-point FX headwinds. Segment income was $125 million, up 14% on strong sales growth. Return on sales improved sequentially to 17.2%. While down 110 basis points year-over-year, the performance improved compared to Q1, as we indicated it would in April. Price offset total inflation of approximately $65 million in the quarter. In addition, we continue to make investments in R&D, digital and sales and marketing to support our customers and fuel future growth and productivity.

謝謝你，貝絲。我很高興與您分享另一個季度的強勁業績，銷售額和調整後的每股收益均高於我們指導的高端。讓我們轉到幻燈片 5 來回顧我們的第二季度業績。在報告和有機基礎上，銷售額為 7.28 億美元，與去年相比增長了 21%。成交量強勁增長 9 個百分點，價格貢獻 12 個百分點。收購又增加了 4 個點，這被 4 個點的外匯逆風所抵消。分部收入為 1.25 億美元，因銷售強勁增長而增長 14%。銷售回報率環比提高至 17.2%。雖然同比下降 110 個基點，但與第一季度相比，業績有所改善，正如我們在 4 月份所指出的那樣。價格抵消了本季度約 6500 萬美元的總通脹。此外，我們繼續在研發、數字化以及銷售和營銷方面進行投資，以支持我們的客戶並推動未來的增長和生產力。

Q2 adjusted EPS was $0.57, up 14%. We generated $48 million of free cash flow in the quarter, an improvement from Q1. This is lower than prior year, mainly due to higher inventories to address supply chain issues and support robust demand. We expect momentum in cash flow in the second half, reflecting our seasonal strength and working capital improvements. All in, higher volumes and price cost improvements drove the better-than-expected results in Q2.

第二季度調整後每股收益為 0.57 美元，增長 14%。我們在本季度產生了 4800 萬美元的自由現金流，比第一季度有所改善。這低於去年，主要是由於庫存增加以解決供應鏈問題和支持強勁的需求。我們預計下半年現金流將出現增長勢頭，這反映了我們的季節性實力和營運資金的改善。總而言之，更高的銷量和價格成本的改善推動了第二季度好於預期的業績。

Now please turn to Slide 6 for a discussion of our second quarter segment performance. Starting with Enclosures. Sales of $381 million increased 27% and Organically, the segment grew 23% with another quarter of strong contribution from both volume and price. Sales growth was broad-based across all verticals and with strength in infrastructure, particularly data solutions.

現在請轉到幻燈片 6，討論我們第二季度的分部業績。從外殼開始。銷售額為 3.81 億美元，增長 27%，有機地，該部門增長 23%，另外一個季度來自數量和價格的強勁貢獻。銷售增長在所有垂直領域都有廣泛的基礎，並且在基礎設施方面具有優勢，尤其是數據解決方案。

Geographically, all regions grew double digits year-over-year, led by North America. Acquisitions also contributed to perform exceptionally well, adding 8 points to growth with a standout performance in CIS Global, up over 35%. For Enclosures, orders were up strong double digits in the quarter, similar to sales growth. Enclosures second quarter segment income was $62 million, up 15%, driven by another quarter of tremendous volume growth.

從地理上看，所有地區都以兩位數的速度同比增長，其中以北美為首。收購也促成了出色的表現，在獨聯體全球表現出色，增長了 8 個百分點，增長超過 35%。對於外殼，本季度的訂單增長了兩位數，與銷售增長相似。機櫃業務第二季度收入為 6200 萬美元，增長 15%，這得益於另一個季度的巨大銷量增長。

Return on sales was down year-over-year, however, improved 220 basis points sequentially to 16.2%. This performance mainly reflects improving price cost. Global supply chain challenges have eased a bit, but remain a headwind to productivity. In addition, we continue to invest in growth and capacity to position us well for the future. We expect return on sales performance to continue to improve sequentially with better price cost and improved productivity.

銷售回報率同比下降，但環比提高 220 個基點至 16.2%。這一表現主要反映了價格成本的改善。全球供應鏈挑戰有所緩解，但仍是生產力的逆風。此外，我們繼續投資於增長和產能，為我們的未來做好準備。我們預計銷售業績回報率將隨著價格成本的降低和生產力的提高而繼續提高。

Moving to Electrical & Fastening. Sales of $201 million increased 22% organically, with strength across all verticals, led by commercial. Geographically, North America led the way with strong double-digit growth. Orders outpaced sales again in Q2. Pricing remained strong, demonstrating the value our labor-saving products provide to our customers. Volume in the quarter was impacted by supply chain constraints. However, our improved output in June, coupled with strong orders and backlog give us confidence in the second half.

轉向電氣和緊固。銷售額為 2.01 億美元，有機增長 22%，在所有垂直領域都表現強勁，以商業為主導。從地域上看，北美以兩位數的強勁增長遙遙領先。第二季度訂單再次超過銷售額。價格保持強勁，展示了我們的省力產品為客戶提供的價值。本季度的銷量受到供應鏈限制的影響。然而，我們在 6 月份的產量有所改善，加上強勁的訂單和積壓訂單讓我們對下半年充滿信心。

Electrical & Fastening segment income was $59 million, up 20%. Return on sales was 29.3%, up 40 basis points relative to last year. Price offset higher-than-expected inflation, and we continue to invest to support our customers and drive growth.

電氣和緊固部門收入為 5900 萬美元，增長 20%。銷售回報率為 29.3%，較去年上升 40 個基點。價格抵消了高於預期的通脹，我們繼續投資以支持我們的客戶並推動增長。

Now turning to Thermal Management. Sales of $146 million grew 15% organically, driven by strength in industrial. High-margin industrial MRO growth continued to be robust for the fifth consecutive quarter, up mid-teens. Geographically, North America and Europe were both up strong double digits. Overall, orders were up low single digits impacted by China lockdowns and Russia, we continue to see robust orders for longer cycle projects.

現在轉向熱管理。在工業實力的推動下，1.46 億美元的銷售額有機增長了 15%。高利潤的工業 MRO 增長連續第五個季度保持強勁增長，達到十幾歲左右。從地理上看，北美和歐洲均增長了兩位數。總體而言，受中國封鎖和俄羅斯影響，訂單增長了個位數，我們繼續看到更長周期項目的強勁訂單。

Thermal Management segment income was up 14% to $28 million Return on sales expanded 50 basis points year-over-year to 19.4%, driven by volume and positive mix contribution from industrial MRO.

熱管理部門收入增長 14% 至 2800 萬美元，銷售回報率同比增長 50 個基點至 19.4%，這得益於工業 MRO 的銷量和積極的組合貢獻。

On Slide 7, titled balance sheet and cash flow. We ended the quarter with a cash balance of $56 million. We also have an additional $442 million available on our revolver. Our healthy balance sheet provides us with ample capacity.

在幻燈片 7 上，標題為資產負債表和現金流量。我們在本季度末的現金餘額為 5600 萬美元。我們的左輪手槍還有額外的 4.42 億美元可用。我們健康的資產負債表為我們提供了充足的產能。

Turning to our capital allocation priorities on Slide 8. We exited Q2 with a net debt to adjusted EBITDA ratio of 2x at the low end of our target range of 2 to 2.5. We believe our robust balance sheet and cash generation puts us in a great position to invest in growth and execute on our M&A strategy. Year-to-date, we returned $67 million to shareholders, including a competitive dividend and share repurchases. We expect to continue to deploy capital to drive growth and deliver attractive returns for shareholders.

轉向幻燈片 8 上的資本配置優先事項。我們在第二季度結束時，淨債務與調整後的 EBITDA 比率為 2 倍，處於我們目標範圍 2 至 2.5 的低端。我們相信，我們穩健的資產負債表和現金產生使我們處於投資增長和執行併購戰略的有利位置。年初至今，我們向股東返還了 6700 萬美元，包括有競爭力的股息和股票回購。我們預計將繼續部署資本以推動增長並為股東帶來可觀的回報。

Now moving to Slide 9, titled 2022 nVent outlook. We are off to a strong start with sales up 24% and adjusted earnings per share up 15% in the first half. As Beth highlighted earlier, we are raising our full year sales and earnings outlook. This reflects our strong first half performance and higher pricing assumptions, partially offset by greater FX and inflationary headwinds. A couple of other key points to call out. While we saw a gradual improvement in the supply chain through the quarter, we expect challenges to persist.

現在轉到幻燈片 9，標題為 2022 nVent 展望。我們開局良好，上半年銷售額增長 24%，調整後每股收益增長 15%。正如貝絲早些時候強調的那樣，我們正在提高全年銷售和盈利前景。這反映了我們強勁的上半年業績和更高的定價假設，部分被更大的外彙和通脹逆風所抵消。需要指出的其他幾個關鍵點。雖然我們看到整個季度的供應鏈逐漸改善，但我們預計挑戰將持續存在。

For the year, we expect pricing plus productivity to offset inflation. We will continue to invest to support our customers, and we now expect corporate costs of roughly $80 million, mainly to higher investments and inflation. For organic growth, we now expect a range of 15% to 17% versus our prior guidance of 11% to 13% for the year. Adjusted EPS is expected to be in the range of $2.17 to $2.23 versus our prior guidance of $2.14 to $2.22. This new guidance reflects earnings growth of 11% to 14% on top of the 31% EPS growth in 2021.

今年，我們預計定價加上生產力將抵消通脹。我們將繼續投資以支持我們的客戶，我們現在預計企業成本約為 8000 萬美元，主要是由於更高的投資和通貨膨脹。對於有機增長，我們現在預計今年的增長范圍為 15% 至 17%，而我們之前的指導為 11% 至 13%。調整後的每股收益預計在 2.17 美元至 2.23 美元之間，而我們之前的指導為 2.14 美元至 2.22 美元。這一新指引反映了在 2021 年每股收益增長 31% 的基礎上，盈利增長了 11% 至 14%。

For free cash flow, we now expect conversion of adjusted net income in the range of 90% to 100% due to higher working capital to support our strong sales growth and backlog amid the challenging supply chain. We are watching the macro environment closely, which remains dynamic and uncertain, we continue to scenario plan and will be ready to respond as we have done in the past.

對於自由現金流，我們現在預計調整後的淨收入將在 90% 至 100% 的範圍內轉換，原因是營運資金增加，以支持我們在充滿挑戰的供應鏈中強勁的銷售增長和積壓。我們正在密切關注仍然充滿活力和不確定性的宏觀環境，我們將繼續制定情景計劃，並準備好像過去那樣做出反應。

Looking at our third quarter outlook on Slide 10. We expect organic sales to be up 13% to 15% and adjusted EPS to be between $0.58 and $0.60. At the midpoint, this reflects 11% earnings growth relative to last year.

看看我們對幻燈片 10 的第三季度展望。我們預計有機銷售額將增長 13% 至 15%，調整後的每股收益將在 0.58 美元至 0.60 美元之間。在中點，這反映了與去年相比 11% 的收益增長。

Wrapping up, I am pleased with our second quarter performance. We continue to execute well with strong customer demand and demonstrate our ability to manage price costs. Our acquisitions continue to generate great value for customers and shareholders. And importantly, we continue to invest in capacity and growth for the future. With a successful first half, we believe we're set up for another great year.

最後，我對我們第二季度的表現感到滿意。我們繼續在強勁的客戶需求下表現出色，並展示了我們管理價格成本的能力。我們的收購繼續為客戶和股東創造巨大價值。重要的是，我們將繼續投資於未來的產能和增長。上半年取得成功，我們相信我們已經為又一個偉大的一年做好了準備。

This concludes my remarks, and I will now turn the call back over to Beth.

我的發言到此結束，我現在將電話轉回給 Beth。

Thank you, Sara. Turning to Slide 11. We've had a consistent strategy since we became a new company that has been driving our success. With the electrification of everything, we believe our growth strategy will continue to drive our performance. Our focus is on high-growth verticals, new products and innovation, global growth and acquisitions and partnerships.

謝謝你，薩拉。轉到幻燈片 11。自從我們成為一家推動我們成功的新公司以來，我們一直採用一致的戰略。隨著一切電氣化，我們相信我們的增長戰略將繼續推動我們的業績。我們的重點是高增長的垂直領域、新產品和創新、全球增長以及收購和合作夥伴關係。

Turning to Slide 12. Let me provide some highlights of how we're executing on our strategy. Looking at the high-growth vertical of data solutions, which includes data centers, networking and communications, we expect sales to grow approximately 30% this year. This vertical now represents more than 10% of our overall nVent portfolio. We've grown our offerings from networking and server cabinets to liquid cooling solutions, power distribution units and cable management. We've strengthened our portfolio with acquisitions and technology partnerships.

轉到幻燈片 12。讓我提供一些關於我們如何執行戰略的亮點。縱觀數據解決方案的高增長垂直領域，包括數據中心、網絡和通信，我們預計今年銷售額將增長約 30%。這個垂直領域現在占我們整個 nVent 產品組合的 10% 以上。我們的產品從網絡和服務器機櫃發展到液體冷卻解決方案、配電單元和電纜管理。我們通過收購和技術合作加強了我們的產品組合。

We've had many large multimillion dollar wins with key customers as a result of our differentiated offerings. Our liquid cooling solutions, for example, are more energy efficient and sustainable, reducing power consumption in a data center and improving reliability. New products and innovation is another key tenet of our strategy. Year-to-date, we've launched 20 new products on a path to 50 for the full year. New products have contributed 3 points to our overall sales growth in the first half.

由於我們的差異化產品，我們已經在關鍵客戶中贏得了數百萬美元的巨額獎金。例如，我們的液體冷卻解決方案更加節能和可持續，可降低數據中心的功耗並提高可靠性。新產品和創新是我們戰略的另一個關鍵原則。年初至今，我們已經推出了 20 款新產品，全年將達到 50 款。新產品為我們上半年的整體銷售增長貢獻了3個百分點。

One of our new products, our FleXbus connection solution enables up to 50% faster installation and introduced total installation costs by 20% or more. We have found it to be safer and easier to install, highly reliable and easily customizable. This new product has applications across many high-growth verticals from energy storage to e-mobility to data centers. We're seeing significant wins with this new product.

作為我們的新產品之一，我們的 FleXbus 連接解決方案可將安裝速度提高 50%，並將總安裝成本降低 20% 或更多。我們發現它更安全、更易於安裝、高度可靠且易於定制。這種新產品在許多高增長的垂直領域都有應用，從能源存儲到電動汽車再到數據中心。我們看到這款新產品取得了重大勝利。

On acquisitions and partnerships, I want to share that we recently announced an investment in a company called Iceotope. We are collaborating to offer innovative precision emergent cooling solutions, expanding our cooling portfolio for data center and computing applications.

關於收購和合作，我想分享一下我們最近宣布投資一家名為 Iceotope 的公司。我們正在合作提供創新的精密應急冷卻解決方案，擴展我們用於數據中心和計算應用的冷卻產品組合。

We recently celebrated the 1-year anniversary of our CIS Global acquisition. With its innovative new products and technology and strong customer relations, it has grown over 35% in the first half. We are investing in this portfolio and have opened 2 new factories, including 1 in Thailand this quarter. This is key to our global expansion to increase capacity and serve more global data center customers. We're moving with velocity and our results demonstrate that we are winning with our growth initiatives.

我們最近慶祝了我們收購 CIS Global 一周年。憑藉其創新的新產品和技術以及強大的客戶關係，上半年增長超過 35%。我們正在投資這個投資組合，並在本季度開設了 2 家新工廠，其中 1 家在泰國。這是我們全球擴張以增加容量和服務更多全球數據中心客戶的關鍵。我們正在快速前進，我們的結果表明我們正在通過我們的增長計劃獲勝。

Moving to Slide 13. Earlier this week, we published our 2021 ESG report. And I want to give you an update on our ESG progress. In the 2020 report, for the first time we outlined goals in each of our 3 pillars: people, product and planet. I'm pleased with the tremendous progress we have made in each of these 3 pillars.

轉到幻燈片 13。本週早些時候，我們發布了 2021 年 ESG 報告。我想向您介紹我們的 ESG 進展情況。在 2020 年報告中，我們首次概述了三大支柱的目標：人、產品和地球。我對我們在這三個支柱中的每一個方面取得的巨大進步感到高興。

On people, we have made great strides in inclusion and diversity and our safety performance. I'm very proud to highlight 17% of nVent's Board of Directors are diverse. We believe our culture and our people are a differentiator for invest, and we are now a great place to work certified company.

在人員方面，我們在包容性和多樣性以及我們的安全績效方面取得了長足的進步。我非常自豪地強調 17% 的 nVent 董事會成員是多元化的。我們相信我們的文化和我們的員工是投資的差異化因素，我們現在是在獲得認證的公司工作的好地方。

On products, we have set new long-term goals, including increasing the number of new product introductions with positive ESG impacts. This aligns to our vision of developing innovative solutions that deliver efficiency, safety and reduced resource consumption.

在產品方面，我們設定了新的長期目標，包括增加具有積極 ESG 影響的新產品的推出數量。這符合我們開發創新解決方案以提高效率、安全性和減少資源消耗的願景。

On planet, we've updated our goals to be more ambitious after making significant progress in 2021, reducing our Scope 1 and 2 CO2 emissions by 15%. Our new goal is to reduce Scope 1 and 2 greenhouse gas emissions by 50% by 2030. With ESG at the center of our strategy, we are building a more electrified and sustainable world, and I'm excited about what the future holds for nVent.

在地球上，我們在 2021 年取得重大進展後，將我們的目標更新為更加雄心勃勃，將我們的範圍 1 和 2 的二氧化碳排放量減少 15%。我們的新目標是到 2030 年將範圍 1 和 2 的溫室氣體排放量減少 50%。以 ESG 為我們戰略的核心，我們正在建設一個更加電氣化和可持續發展的世界，我對 nVent 的未來感到興奮.

Wrapping up on Slide 14, we delivered another strong quarter. We are executing well and winning with our growth strategy. And that gives us confidence in the future. We've made significant progress on our ESG commitments. We expect double-digit sales and EPS growth for the year and believe we are well positioned for the electrification of everything. Our future is great.

在幻燈片 14 結束時，我們又交付了一個強勁的季度。我們執行良好，並以我們的增長戰略取勝。這讓我們對未來充滿信心。我們在 ESG 承諾方面取得了重大進展。我們預計今年的銷售額和每股收益將實現兩位數增長，並相信我們已為一切電氣化做好了準備。我們的未來很美好。

With that, I will now turn the call over to the operator to start Q&A.

有了這個，我現在將把電話轉給接線員開始問答。

(Operator Instructions) First question comes from Julian Mitchell, Barclays.

（操作員說明）第一個問題來自巴克萊銀行的 Julian Mitchell。

Maybe just a first question on the orders and the top line. So just wondered on the orders front, what you're seeing in Europe right now? And then more broadly on the Thermal business, do you see the orders picking up there after those headwinds in Q2?

也許只是關於訂單和頂線的第一個問題。所以只是想知道在訂單方面，你現在在歐洲看到了什麼？然後在更廣泛的熱力業務上，您是否看到在第二季度的逆風之後那裡的訂單有所回升？

And when we look at the revenue line, are you assuming sort of low single-digit volume growth firm-wide in Q4?

當我們查看收入線時，您是否假設第四季度整個公司的銷量增長處於低個位數？

Julian. So let me just start on the orders. So generally, our orders have been in line with our sales. And when you look at -- as we commented, we have the strongest sales in North America, and that is -- we have the strongest orders growth in North America. And generally, our European orders followed what we're seeing in European sales, so less than North America.

朱利安。所以讓我從訂單開始。因此，總的來說，我們的訂單與我們的銷售額一致。當你看到 - 正如我們評論的那樣，我們在北美擁有最強勁的銷售，也就是說 - 我們在北美擁有最強勁的訂單增長。一般來說，我們的歐洲訂單跟我們在歐洲的銷售情況一樣，比北美少。

On Thermal Management, we've had a couple of disruptions there. Remember, Thermal Management is our most global business, and so there, we were impacted by some of the lockdowns in China, and we work on the longer cycle projects, as you know, and also some of our business in Russia as we have chosen not to pursue any new business activities. So -- but as we looked at the beginning of July, orders across all of our segments are very strong as we enter this next quarter.

在熱管理方面，我們在那裡遇到了幾次中斷。請記住，熱管理是我們最全球化的業務，因此在那裡，我們受到了中國一些封鎖的影響，如您所知，我們致力於更長周期的項目，以及我們選擇的在俄羅斯的一些業務不從事任何新的業務活動。所以 - 但正如我們在 7 月初看到的那樣，當我們進入下個季度時，我們所有細分市場的訂單都非常強勁。

And then, Julian, on your question, I think, in terms of volumes from a Q4 perspective, let me give a little bit of color there. So we would expect to continue to see strong contribution from both volume and price in the back half. Now we'd expect to see a little bit more on the volume side in Q3 than we would in Q4. But again, we expect each quarter to contribute from a volume perspective. And that's simply more of the 2-year kind of stack lap, if you will, of the volume that we saw in Q4 of a year ago. But overall, we continue to expect both volume and price to contribute nicely across the top line in the back half.

然後，朱利安，關於你的問題，我認為，從第四季度的角度來看，讓我在這裡給出一點顏色。因此，我們預計下半年將繼續看到數量和價格的強勁貢獻。現在我們預計第三季度的成交量會比第四季度多一點。但同樣，我們預計每個季度都會從數量的角度做出貢獻。如果你願意的話，這只是我們在一年前第四季度看到的數量的 2 年堆疊圈。但總體而言，我們繼續預計銷量和價格都將在後半部分的營收中做出很好的貢獻。

And then just my follow-up would be around -- you mentioned sort of a larger inflation assumption in your guidance for the year. When we're looking at that Slide 5, with the segment income bridge that net productivity number, the sort of $80-ish million figure in Q2 that was a similar figure in the first quarter. How are you thinking about that for the full year?

然後只是我的後續行動——你在今年的指導中提到了一種更大的通脹假設。當我們查看幻燈片 5 時，部門收入將淨生產力數字連接起來，第二季度的 80 億美元數字與第一季度的數字相似。您如何看待全年？

Yes. So two things on that front. I'll take the last point first. From a productivity standpoint, we talked about in that $82 million net productivity number in that walk, roughly $65 million of that is inflation. So the balance of that really is a couple of things. One is going to be productivity, and that's still showing up negative as we sit here today, just given the strong demand that we're seeing amidst a very challenging supply chain. So we're still seeing those inefficiencies in the factory. Getting a bit better, right, as we suggested gradually through the quarter.

是的。所以在這方面有兩件事。我先說最後一點。從生產力的角度來看，我們在那次步行中談到了 8200 萬美元的淨生產力數字，其中大約 6500 萬美元是通貨膨脹。因此，平衡確實是幾件事。一個是生產力，鑑於我們在極具挑戰性的供應鏈中看到的強勁需求，今天我們坐在這裡，這仍然是負面的。所以我們仍然看到工廠效率低下。好一點，對，正如我們在本季度逐漸建議的那樣。

The other thing are those investments that we continue to make to be able to fuel that growth. I think as you look in the back half, I think the most significant thing I would point out from a year-over-year is just the easier comparison because remember that Q3, Q4 is when we really began to see those supply chain challenges show through in terms of that productivity line.

另一件事是我們繼續進行的那些能夠推動增長的投資。我認為當你看後半部分時，我認為我要指出的與去年同期相比最重要的事情就是更容易比較，因為請記住，Q3、Q4 是我們真正開始看到供應鏈挑戰的時候就那條生產力線而言。

So we would expect that productivity year-over-year to get better but from a sequential standpoint, it's important to note that we're not counting on, if you will, that supply chain getting meaningfully better.

因此，我們預計生產率會逐年提高，但從連續的角度來看，重要的是要注意，如果你願意的話，我們並不指望供應鏈會變得更好。

I think your question in terms of inflation, what we're seeing. And I would say a couple of things. From an overall commodities perspective, from a spot perspective, we are seeing some easing there. It's important to keep in mind that with our locking strategy on much of our metal buys, that tends to have a quarter or 2 lag.

我認為你在通貨膨脹方面的問題，我們所看到的。我想說幾件事。從整體商品的角度來看，從現貨的角度來看，我們看到那裡有所緩解。重要的是要記住，我們對大部分金屬購買的鎖定策略往往會有四分之一或兩個滯後。

The other piece, I would say, we're seeing meaningful inflation outside of metals. So what I would call significant broader inflation, whether that's wage, health care, logistics, significant inflation that we're seeing energy costs. So we're seeing that broad-based inflation. And so that's where we continue to have to manage that price cost equation. As we see it on the material front, but I would say generally as we're seeing more meaningful inflation outside of material.

另一部分，我想說，我們正在看到金屬之外的有意義的通貨膨脹。所以我稱之為顯著的更廣泛的通脹，無論是工資、醫療保健、物流，還是我們看到的能源成本的顯著通脹。因此，我們看到了基礎廣泛的通貨膨脹。這就是我們必須繼續管理價格成本等式的地方。正如我們在物質方面看到的那樣，但我一般會說，因為我們在物質之外看到了更有意義的通貨膨脹。

Our next question comes from Nigel Coe with Wolfe Research.

我們的下一個問題來自 Wolfe Research 的 Nigel Coe。

Good details as always. So just Sara, I just want to pick up on your response on price cost. I think you mentioned of the $82 million bucket in the margin bridge, $65 million of inflation. So it looks like roughly $9 million of project price cost. How do you see that evolving? And I guess the real question is, how should we think about pricing over the back half of the year? And you mentioned inflation ex metals. So how would you describe the pricing conversations right now with your customers?

一如既往的好細節。所以只是薩拉，我只是想了解你對價格成本的回應。我想你提到了保證金橋中的 8200 萬美元，即 6500 萬美元的通貨膨脹。所以看起來大約是 900 萬美元的項目價格成本。您如何看待這種演變？我想真正的問題是，我們應該如何考慮下半年的定價？你提到了除金屬外的通貨膨脹。那麼，您如何描述現在與客戶的定價對話呢？

Well, let me start with the pricing piece of that. I think. We're in an inflationary environment. And so our customers and our channel partners our understanding of all -- because they're experiencing it as well when you look at wage inflation, energy inflation, logistics, all of those things. So really, what it comes down to there is just having good lines of communication so that everyone understands when price increases are coming, but there certainly isn't a question about why are we having price increases. So that has just been an ongoing situation, I would say, for over the last 12 to 18 months.

好吧，讓我從定價部分開始。我認為。我們處於通貨膨脹的環境中。所以我們的客戶和我們的渠道合作夥伴我們對所有這些都了解——因為當你看到工資膨脹、能源膨脹、物流等所有這些事情時，他們也正在經歷。所以說真的，歸根結底就是要有良好的溝通渠道，這樣每個人都知道什麼時候會漲價，但當然不存在為什麼我們要漲價的問題。所以我想說，在過去的 12 到 18 個月裡，這種情況一直在持續。

And then just from a numbers perspective, we talked about this in our prepared remarks is that we would expect that price cost equation to improve in the back half. We're going to continue to -- continue to be vigilant managing that price cost equation as we continue to see inflation in some of these costs outside of the material front. But we would expect that to improve in the back half. And Enclosures is a big part of that improvement as we look to Q3 into Q4.

然後僅從數字的角度來看，我們在準備好的評論中談到了這一點，我們預計價格成本方程將在後半段有所改善。我們將繼續——繼續保持警惕，管理價格成本等式，因為我們繼續看到材料方面之外的一些成本出現通貨膨脹。但我們預計這會在後半場有所改善。當我們期待第三季度到第四季度時，外殼是這一改進的重要組成部分。

Okay. I do have a follow-on question, but just on that point. So obviously, the price cost balance is still margin dilutive, but it looks like a low double digits on the price increases. But -- would you expect that margin kind of to neutralize and by the time we get to the end of this year.

好的。我確實有一個後續問題，但只是在這一點上。所以很明顯，價格成本餘額仍然是利潤稀釋的，但價格上漲看起來像是一個低兩位數。但是 - 您是否期望到今年年底時，這種利潤率會中和。

So just wondering about that. But just I wanted to ask a question on data center. A relatively small but important market for you guys. A lot of debates around data center investments, just given the fact that a lot of these tech customers are getting smoked right now. So how do you see DC investments and the outlook for the next 12 to 15 months?

所以只是想知道這一點。但我只是想問一個關於數據中心的問題。一個相對較小但對你們來說很重要的市場。很多關於數據中心投資的爭論，只是考慮到很多這些技術客戶現在都被熏了。那麼，您如何看待 DC 投資和未來 12 至 15 個月的前景？

We're very positive on the outlook. And I think because when we think about data centers, we don't have to serve the hyperscale data centers. We're looking at networking communications, we're looking at the edge and other computing applications.

我們對前景非常樂觀。我認為，因為當我們考慮數據中心時，我們不必為超大規模數據中心提供服務。我們正在研究網絡通信，我們正在研究邊緣和其他計算應用程序。

And I think 1 important point I want to make is we've talked a lot over the years about our liquid cooling capability that we're investing in and expanding. If you think about liquid cooling, it really is a sustainable, more energy-efficient solution and as data centers with a lot of computing power getting hotter, it's a retrofitable solution in some cases but it really is an investment that has a good payback. And so that's where we're seeing this liquid cooling, which is a new technology shift really taking off.

我認為我想說的重要一點是，多年來我們已經就我們正在投資和擴展的液體冷卻能力進行了很多討論。如果您考慮液體冷卻，它確實是一種可持續、更節能的解決方案，並且隨著具有大量計算能力的數據中心變得越來越熱，它在某些情況下是一種可改造的解決方案，但它確實是一項具有良好回報的投資。這就是我們看到這種液體冷卻的地方，這是一項真正起飛的新技術轉變。

So from our standpoint, we believe we're going to see solid growth in data centers for many years to come.

因此，從我們的角度來看，我們相信未來許多年我們將看到數據中心的穩健增長。

And Nigel, I think you had started that question in terms of ROS and price cost. A couple of things. I would say that implied in our guidance is margin expansion in the back half. We would expect that to be more so in Q4 with Q3 showing that sequential year-over-year ROS improvement because you're right, that price cost dynamic, even as we covered off on our inflation here in Q2, it is having an outsized impact from a year-over-year ROS perspective. But we're confident in getting to ROS expansion during the back half really was improving that price cost equation. And I think the second piece is the productivity element that we talked about a little bit earlier.

奈傑爾，我認為你已經從 ROS 和價格成本方面提出了這個問題。有幾件事。我想說的是，我們的指導暗示了後半部分的利潤率擴張。我們預計第四季度會更加如此，第三季度顯示出連續的 ROS 同比改善，因為你是對的，價格成本動態，即使我們在第二季度掩蓋了我們的通貨膨脹，它也有一個超大的從年度 ROS 的角度來看的影響。但我們有信心在後半段實現 ROS 擴展，這確實改善了價格成本等式。我認為第二部分是我們之前談到的生產力元素。

Our next question comes from Jeff Sprague, Vertical Research.

我們的下一個問題來自垂直研究的 Jeff Sprague。

A couple of things from me. First, just on supply chain. Can you elaborate on where the issues are? Is it still kind of tilted towards electronics or is there some other and a bottleneck that's new or different that's emerged?

我有幾件事。首先，僅在供應鏈上。能否詳細說明問題出在哪裡？它是否仍然傾向於電子產品，或者是否存在其他一些新的或不同的瓶頸？

Yes. I would say we're not -- it's still those same things that we've seen, electronics, definitely. I would say in our EFS business, starting from last year that we had some challenges there just with even some of the material input that we had as well as recall some of China get shut down, and so that had some impact across our businesses as well. But it's the same challenges, but it is getting better and electronics is still an area that we're focused on as well.

是的。我會說我們不是——它仍然是我們所見過的那些東西，電子產品，當然。我想說的是，在我們的 EFS 業務中，從去年開始，我們在那裡遇到了一些挑戰，即使我們有一些材料投入以及召回一些中國被關閉，所以這對我們的業務產生了一些影響，因為出色地。但這是同樣的挑戰，但它正在變得更好，電子產品仍然是我們關注的一個領域。

And then in your prepared remarks, you actually mentioned strength in resi. That sounds a lot different than a lot of other things we've heard on resi this quarter. So I just wonder if you could give a little color on that and maybe the visibility you have there?

然後在你準備好的評論中，你實際上提到了resi的力量。這聽起來與我們本季度在 resi 上聽到的許多其他事情大不相同。所以我只是想知道你是否可以給它一點顏色，也許你在那裡的能見度？

And also, just looking at Q3, I think your guide implies that Q3 revenues would be down sequentially. It's not clear to me why that would be the case based on kind of seasonality and order trends. Maybe you can give us a little color there also.

而且，僅看第三季度，我認為您的指南暗示第三季度的收入將依次下降。我不清楚為什麼會根據季節性和訂單趨勢出現這種情況。也許你也可以給我們一點顏色。

Okay. Let me start with -- in my comments, I talked about commercial and resi, and we sometimes will group them together because really resi for us isn't a significant segment. So we kind of group that together. Some of that resi businesses from our thermal management will reduce some underfloor heating. So when we look at that combined commercial and residential business, it was strong for us, not only in thermal management, but the commercial side of EFS. So that's what that comment pertained to.

好的。讓我開始 - 在我的評論中，我談到了商業和 resi，我們有時會將它們組合在一起，因為真正的 resi 對我們來說並不是一個重要的部分。所以我們把它組合在一起。我們熱管理中的一些樹脂業務將減少一些地暖。因此，當我們看到商業和住宅業務相結合時，它對我們來說很強大，不僅在熱管理方面，而且在 EFS 的商業方面。這就是該評論的內容。

And then, Jeff, from a sales perspective, it simply is, I think, what Beth alluded to earlier from a sequential perspective from a Thermal Management perspective. So typically, that seasonal uptick is in the Thermal Management business. We're not seeing that in learning price in that April time frame. And things transpired from the Russia-Ukraine conflict and we made the decision to not to spend new business in Russia. So that you're just seeing that impact there in the back half, particularly in Thermal Management. We've talked about Russia being roughly 2% of sales for overall invent. Most of that is in our Thermal Management business. So you're just seeing that reflected in that overall guide.

然後，傑夫，從銷售的角度來看，我認為這就是貝絲之前從熱管理角度的順序角度所暗示的。因此，通常情況下，這種季節性上升是在熱管理業務中。在 4 月份的時間框架內，我們沒有在學習價格中看到這一點。事情發生在俄羅斯與烏克蘭的衝突中，我們決定不在俄羅斯開展新業務。所以你只是在後半部分看到了這種影響，特別是在熱管理方面。我們已經談到俄羅斯大約佔整個發明銷售額的 2%。其中大部分是在我們的熱管理業務中。因此，您只是在該總體指南中看到了這一點。

Next question will be from Jeff Hammond, KeyBanc Capital Markets.

下一個問題將來自 KeyBanc Capital Markets 的 Jeff Hammond。

Just back on that Thermal, can you maybe just spike out how you're seeing industrial MRO playing out? And if you still think that's a mix positive driver into the second half. I know you cited a number of moving pieces there.

回到那個Thermal，你能不能直接說出你對工業MRO的看法？如果你仍然認為這是一個混合積極的驅動因素進入下半場。我知道你在那裡引用了一些動人的作品。

Yes. And as we've commented, industrial MRO has been on an uptick. And usually, it's not something, as we've seen in previous times that it bounces back all in 1 year, it takes a couple of years. That, combined with some focus we have with some of our new products and looking at just how we support services, we expect that MRO business to continue to grow for us and provide some strength and have a positive mix impact in the back half of the year.

是的。正如我們所評論的，工業 MRO 一直在上升。而且通常情況下，這不是什麼，正如我們在以前看到的那樣，它會在 1 年內全部反彈，這需要幾年時間。結合我們對一些新產品的一些關注以及我們如何支持服務，我們預計 MRO 業務將繼續為我們增長並提供一些實力並在後半部分產生積極的混合影響年。

Okay. Great. And then I think you said in the prepared remarks, EFS was particularly strong in June, and it sounds like broad in July, particularly EFS, what do you think is driving that inflection? Is that where a lot of the new products are or is it a market dynamic? Just a little more color there.

好的。偉大的。然後我想你在準備好的評論中說過，EFS 在 6 月份特別強勁，在 7 月份聽起來很廣泛，尤其是 EFS，你認為是什麼推動了這種變化？這是很多新產品的所在還是市場動態？只是那裡的顏色多一點。

Yes. When we made that comment, EFS had some of those supply chain challenges -- so great orders and backlog, but our ability to execute that and get that out, and we've worked through some of those bottlenecks. So we saw some strength there through June and July. But I would say what's driving our growth there is a couple of things that portfolio focuses a lot on power and data infrastructure. We've launched a lot of great new products that are labor-saving solutions.

是的。當我們發表評論時，EFS 面臨著一些供應鏈挑戰——如此多的訂單和積壓，但我們有能力執行並解決這些問題，而且我們已經克服了其中的一些瓶頸。因此，我們在 6 月和 7 月看到了一些實力。但我想說的是，推動我們增長的因素有幾件事，投資組合非常關注電力和數據基礎設施。我們推出了許多出色的新產品，它們是節省勞動力的解決方案。

So in times of labor constraints, they do very well. And as I gave that 1 example, we're finding some new product applications that are -- this electrification of everything that are really well suited to the growth that we're seeing in building out some of that infrastructure. So it's really sitting in great high-growth verticals that have some nice secular trends, new products and then our own ability to drive our execution through our manufacturing plants.

所以在勞動力緊張的時候，他們做得很好。正如我舉的那個例子一樣，我們發現了一些新的產品應用——所有東西的電氣化非常適合我們在構建一些基礎設施時看到的增長。因此，它確實位於具有良好長期趨勢、新產品以及我們自己通過製造工廠推動執行的能力的高速增長垂直領域。

Okay. If I could just sneak one last one in on -- back on the data center comment, what's your mix that's -- you said you're kind of maybe underexposed to hyperscale. But if hyperscale were to be the area to slow, do you feel that at all? Or just maybe frame that a little bit more?

好的。如果我可以偷偷進入最後一個 - 回到數據中心評論，你的組合是什麼 - 你說你可能對超大規模曝光不足。但是，如果超大規模是放緩的領域，你有這種感覺嗎？或者只是可能更多地構圖？

Yes. I mean I think we're fairly well balanced between hyperscale between some of the system integrators, network and communication. I mean, we're really trying to provide solutions whether it's a closet, whether it's an edge or whether it's all the way to a hyperscale account. And I think we believe we've got plenty of opportunity to continue to expand with our product.

是的。我的意思是我認為我們在一些系統集成商、網絡和通信之間的超大規模之間取得了相當好的平衡。我的意思是，我們真的在嘗試提供解決方案，無論是壁櫥、邊緣還是超大規模帳戶。我認為我們相信我們有很多機會繼續擴大我們的產品。

And with power distribution units now and liquid cooling, we're very positive in terms of how we look at growth, and it doesn't have to rely on greenfield applications, as I mentioned earlier, because liquid cooling is an energy-efficient solution that can be retrofittable.

現在有了配電單元和液體冷卻，我們對增長的看法非常積極，而且它不必依賴於新建應用，正如我之前提到的，因為液體冷卻是一種節能解決方案可以改裝。

The next question will come from Deane Dray, RBC Capital Markets.

下一個問題將來自加拿大皇家銀行資本市場的 Deane Dray。

Can we start with inventory in the channel. Just give us an update, sell-in, sell-through, where do you think your distributors are today?

我們可以從渠道中的庫存開始嗎？只要給我們一個更新，推銷，推銷，你認為你的經銷商今天在哪裡？

Yes. This is something that we track very closely as we look at this uncertainty and just trying to understand how it's playing out. A couple of things. One, or the sell-out and sell-in remains robust in both cases. We believe that we're increasing our position as it has been our strategy to expand with some of our key channel partners, and we believe we're doing that well.

是的。當我們看到這種不確定性並試圖了解它是如何發揮作用時，我們會密切跟踪這一點。有幾件事。一個，或者在這兩種情況下，賣出和賣出仍然強勁。我們相信我們正在提高我們的地位，因為與我們的一些主要渠道合作夥伴一起擴張是我們的戰略，我們相信我們做得很好。

And so at this point, it's an area that we watch, but I think we're seeing good sell-through of our products at this time and it remains in balance is how I would speak to inventory.

因此，在這一點上，這是我們關注的一個領域，但我認為我們目前看到我們的產品銷售良好，並且保持平衡是我對庫存的看法。

Good. And then for Sara, the trimming of the free cash flow target, look, this -- we've seen this everywhere in the sector. So -- could you just -- and we understand the dynamics here. But on the working capital side for inventory build, is there any way you can just parse out how much of the additional inventory is what you would classify as supply chain inefficiencies where you're carrying more buffer inventory? And then how much of it is building inventory ahead of satisfying all that demand and backlog.

好的。然後對於 Sara 來說，削減自由現金流目標，看，這個 - 我們在該行業的任何地方都看到了這一點。所以 - 你能不能 - 我們了解這裡的動態。但是在庫存建設的營運資金方面，有沒有什麼方法可以解析出有多少額外庫存是您將其歸類為供應鏈效率低下的原因，而您正在攜帶更多緩衝庫存？然後有多少是在滿足所有需求和積壓之前建立庫存。

Well, here's what I would say, Deane, is we're seeing obviously a little bit of vol, especially coming into the year and some of the supply chain backdrop we prioritized delivering for our customers. And so with that, even in some of our long lead time supply elements, we leaned in from that perspective. And so you saw that in Q1, Q2, I think the other thing that's probably exacerbating what you see here in Q2 is what was happening in China, actually Ukraine and some of that getting stuck, if you will, here in Q2.

好吧，這就是我要說的，迪恩，我們顯然看到了一點波動，尤其是進入這一年以及我們優先為客戶提供的一些供應鏈背景。因此，即使在我們的一些較長交貨時間的供應要素中，我們也從這個角度進行了分析。所以你在第一季度和第二季度看到了，我認為可能會加劇你在第二季度看到的情況的另一件事是在中國發生的事情，實際上是在烏克蘭發生的事情，如果你願意的話，其中一些會在第二季度陷入困境。

I think the other piece of it is that we've been talking about this and you see it converting right into sales, but we still sit with a lot of backlog and the orders continue to be strong. And so those 2 things coupled, right, we're seeing higher inventory levels.

我認為另一部分是我們一直在談論這個，你看到它直接轉化為銷售，但我們仍然有很多積壓訂單，訂單繼續強勁。所以這兩件事相結合，對，我們看到更高的庫存水平。

Now at the same time, right, Deane, we're very focused on our working capital initiatives. Nothing has changed from that standpoint. And so we still continue to see opportunity. So as we -- as the supply chain settles down a bit, we expect to get back to what you guys have counted on us for and what we're driving to, and that is that 100% conversion of net income to cash.

現在與此同時，對，迪恩，我們非常專注於我們的營運資金計劃。從這個角度來看，一切都沒有改變。所以我們仍然繼續看到機會。因此，當我們 - 隨著供應鏈稍微穩定下來，我們希望回到你們對我們的指望和我們正在努力實現的目標，那就是淨收入 100% 轉化為現金。

That's good to hear. And then just lastly, on the Thermal side, a lot of discussion about industrial MRO. How about on the energy side and energy projects, we're still kind of waiting for those to kick in. What can you tell us about either front log or quote activity, just expectations on how that may play out?

聽起來還不錯。最後，在熱方面，有很多關於工業 MRO 的討論。在能源方面和能源項目方面怎麼樣，我們仍在等待那些啟動。你能告訴我們關於前端日誌或報價活動的什麼，只是對這可能會如何發揮的預期？

Yes. We are seeing "activity" pick up and globally, right, as everyone looks to have more energy independent. But these are typically longer cycle projects. And so our view is we would expect that got to translate into growth in the outgoing years. So things are picking up, but we're not going to see that conversion into revenue. It's more this longer cycle.

是的。我們看到“活動”在全球範圍內回升，對，因為每個人都希望擁有更多的能源獨立性。但這些通常是較長周期的項目。因此，我們的觀點是，我們預計這將在未來幾年轉化為增長。所以事情正在好轉，但我們不會看到這種轉化為收入。更多的是這個更長的周期。

(Operator Instructions) Next question comes from Joe Ritchie, Goldman Sachs.

（操作員說明）下一個問題來自高盛的 Joe Ritchie。

Just on the price cost dynamics as we head into 2023, I know we still got a lot of ways to go. But you are -- you did mention you're seeing some of your base metal pricing come down consistent with what we're seeing across the industry as well. I'm just curious, how is your pricing mechanism going to work in 2023, if commodities due to flat, will you be able to keep most of the pricing you put through? Will some of it go back to your customers? How is that going to work across the portfolio?

就我們進入 2023 年的價格成本動態而言，我知道我們還有很多路要走。但是您確實提到了您看到您的一些基本金屬價格下降與我們在整個行業中看到的一致。我只是好奇，你們的定價機制在 2023 年將如何運作，如果商品價格持平，你們能否保持大部分定價？其中一些會返還給您的客戶嗎？這將如何在整個投資組合中發揮作用？

Yes. A couple of comments I would make on that is, one, that as we think about pricing, it's not just based on commodity metals. There's all the other inflationary elements. And two, I would say, as we think about new products in some of our portfolio, we look at labor-saving solutions.

是的。我對此發表的幾點評論是，第一，當我們考慮定價時，它不僅僅基於商品金屬。還有所有其他的通貨膨脹因素。第二，我想說的是，當我們考慮某些產品組合中的新產品時，我們會考慮節省勞動力的解決方案。

So as we come out with new products, we're creating more new value. Those typically command stronger pricing because in a time of labor shortages, there's a real value equation there. And three, I would just say, even as we think about our distribution partners, they hope -- they manage price through to end customers. And certainly, their view is the pricing levels hold just because of the inflationary environment that we're in.

因此，當我們推出新產品時，我們正在創造更多新價值。那些通常會要求更高的定價，因為在勞動力短缺的時候，那裡有一個真正的價值等式。第三，我只想說，即使我們考慮我們的分銷合作夥伴，他們也希望 - 他們管理價格，直至最終客戶。當然，他們的觀點是，價格水平之所以保持不變，僅僅是因為我們所處的通貨膨脹環境。

So that's our view next year that we're still going to see strong pricing just as a result of just this inflationary environment, and we believe we're going to be able to maintain that those pricing levels, given all the dynamics that are going on.

因此，我們明年的觀點是，由於這種通脹環境，我們仍然會看到強勁的定價，我們相信，鑑於所有正在發生的動態，我們將能夠維持這些定價水平上。

That's great to hear that. And I guess maybe just following up on that. For EFS this quarter, I don't think I've seen the Q come out maybe it has. But what was the pricing component of the organic growth in EFS? And then it's really interesting to see those margins are like really very close to approaching 30% despite what's probably no benefit really from the price cost dynamic. I'm just trying to get an understanding of the trajectory of the EFS margins and the progress that you guys have made there?

很高興聽到這個消息。我想也許只是跟進。對於本季度的 EFS，我認為我沒有看到 Q 出現，也許它已經出現了。但是，EFS 有機增長的定價部分是什麼？然後看到這些利潤率非常接近 30% 真的很有趣，儘管價格成本動態可能沒有真正的好處。我只是想了解 EFS 利潤的軌跡以及你們在那裡取得的進展？

Yes. So from a price cost perspective, much of that top line this quarter was contributed from a pricing standpoint. As a volume, like we said in our prepared remarks, we're seeing strong customer demand, strong volume in orders in backlog. And would expect that to contribute both volume and price here in the back half.

是的。因此，從價格成本的角度來看，本季度的大部分收入都是從定價的角度來看的。正如我們在準備好的評論中所說，作為一個數量，我們看到強勁的客戶需求，大量的積壓訂單。並且預計這將在後半部分貢獻數量和價格。

From a margin perspective, we said that we see margin expansion opportunity in this business longer term. We've been able to execute on that. We had, I think, 180 basis points of margin expansion last year. A lot of that is coming through productivity in the factories. We said we were in this lean journey in Electrical & Fastening. And I think that team has made a lot of progress there, still more progress to make.

從利潤率的角度來看，我們表示我們看到了該業務長期的利潤率擴張機會。我們已經能夠執行此操作。我認為，去年我們的利潤率擴大了 180 個基點。其中很多是通過工廠的生產力來實現的。我們說我們正處於電氣和緊固領域的精益之旅中。而且我認為這支球隊在那裡取得了很大的進步，還有更多的進步。

I think the other piece that he touched upon earlier is there is strong labor savings attached to a lot of our portfolio their Electrical & Fastening. So the value proposition that, that brings to our contractors, to our customers is meaningful as well.

我認為他之前提到的另一部分是我們的許多電氣和緊固產品組合都可以節省大量勞動力。因此，為我們的承包商和我們的客戶帶來的價值主張也很有意義。

Well, thank you for joining us today. We're very proud of the outstanding performance we delivered in the first half. We will continue to focus on delivering for our people, customers and shareholders. We're executing on our strategy to make invent a top-tier high-performance electrical company. We've made great progress on our ESG commitments. We believe Invest is well positioned for the electrification of everything. Thanks again for joining us. This concludes the call.

嗯，謝謝你今天加入我們。我們為上半年的出色表現感到非常自豪。我們將繼續專注於為我們的員工、客戶和股東提供服務。我們正在執行我們的戰略，以打造一流的高性能電氣公司。我們在 ESG 承諾方面取得了很大進展。我們相信 Invest 已經為一切電氣化做好了準備。再次感謝您加入我們。這結束了通話。

Conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連接。