nVent Electric PLC (NVT) 2024 Q1 法說會逐字稿

Good day, and welcome to the nVent Electric First Quarter 2024 Earnings Conference Call. (Operator Instructions) Please note this event is being recorded.

美好的一天，歡迎參加 nVent Electric 2024 年第一季財報電話會議。 （操作員說明）請注意此事件正在被記錄。

I would now like to turn the conference over to Tony Riter, Vice President of Investor Relations. Please go ahead.

我現在想將會議交給投資者關係副總裁 Tony Riter。請繼續。

Thank you, and welcome to nVent's First Quarter 2024 Earnings Call. On the call with me are Beth Wozniak, our Chair and Chief Executive Officer; and Sara Zawoyski, our Chief Financial Officer. They will provide details on our first quarter performance and outlook for the second quarter and an update to our full year outlook.

謝謝，歡迎參加 nVent 的 2024 年第一季財報電話會議。與我通話的有我們的董事長兼執行長貝絲‧沃茲尼亞克 (Beth Wozniak)；以及我們的財務長 Sara Zawoyski。他們將提供有關我們第一季業績和第二季前景的詳細信息，以及我們全年展望的最新資訊。

Before we begin, let me remind you that any statements made about the company's anticipated financial results are forward-looking statements subject to future risks and uncertainties, 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.

在開始之前，請允許我提醒您，有關公司預期財務業績的任何陳述均為前瞻性陳述，受到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。前瞻性陳述截至今日作出，本公司沒有義務公開更新此類陳述以反映後續事件或情況。實際結果可能與預期結果有重大差異。

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.

今天的網路廣播附有演示文稿，您可以在 nVent 網站的投資者部分找到該演示文稿。對非公認會計準則財務數據的引用在簡報的附錄中進行了調整。在準備好發言後，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.

接下來，請翻到投影片 3，我現在將把電話轉給 Beth。

Thank you, Tony, and good morning, everyone. I'm pleased to be with you today to share our first quarter results. We had another great quarter. We continue to execute on our growth strategy, focused on high-growth verticals, new products, global expansion and acquisitions. We had impressive volume growth, margin expansion and robust free cash flow.

謝謝你，托尼，大家早安。我很高興今天與大家分享我們第一季的業績。我們又度過了一個美好的季度。我們繼續執行我們的成長策略，重點關注高成長垂直行業、新產品、全球擴張和收購。我們的銷售成長、利潤率擴張和強勁的自由現金流都令人印象深刻。

We continue to see AI accelerate demand for our Data Solutions offerings. We also recently published our 2023 Sustainability Report which highlights significant progress on our ESG goals, including adding two new goals. Overall, we are pleased with the strong start to the year and are raising our full year adjusted EPS guidance.

我們繼續看到人工智慧加速了對我們數據解決方案產品的需求。我們最近也發布了 2023 年永續發展報告，其中強調了我們在 ESG 目標方面取得的重大進展，包括增加了兩個新目標。總體而言，我們對今年的強勁開局感到滿意，並提高了全年調整後每股收益指引。

Now on to Slide 4 for a summary of our first quarter performance. First quarter sales were up 18%. On an organic basis, sales grew 5% on top of 8% growth a year ago, with growth across all geographic regions. New products contributed over 3 points to our sales growth, and we launched 17 new products in the quarter. Orders in the quarter grew low single digits and sellout through our key distribution partners remained positive. We believe the distribution channel has largely completed their inventory adjustments.

現在轉到投影片 4，總結我們第一季的業績。第一季銷售額成長 18%。從有機角度來看，銷售額在一年前成長 8% 的基礎上成長了 5%，所有地理區域都有成長。新產品為我們的銷售成長貢獻了超過3個百分點，本季我們推出了17種新產品。本季的訂單成長較低，個位數，透過我們的主要分銷合作夥伴的銷售量仍然保持樂觀。我們認為分銷管道已基本完成庫存調整。

From a segment standpoint, Enclosures had strong sales growth driven by Data Solutions. As expected, Electrical & Fastening Solutions was down due to a decline in Infrastructure with customer and channel inventory normalization. Thermal Management continued to improve sequentially, and we believe is positioned for growth the rest of the year.

從細分市場的角度來看，在數據解決方案的推動下，機櫃的銷售成長強勁。正如預期的那樣，由於客戶和通路庫存正常化，基礎設施下降，電氣和緊固解決方案業務下滑。熱管理持續持續改善，我們相信今年剩餘時間將實現成長。

Looking at our key verticals, Infrastructure led the way, up low teens with Data Solutions growing strong double digits. Industrial grew low single digits with all segments up. Commercial/Resi also grew low single digits. And finally, energy was down, impacted by our exit from Russia a year ago.

縱觀我們的關鍵垂直領域，基礎設施處於領先地位，成長了兩位數，數據解決方案成長強勁。工業成長較低個位數，所有領域均出現成長。商業/Resi 也出現低個位數成長。最後，由於一年前我們退出俄羅斯的影響，能源下降了。

Turning to organic sales by geography. We continue to see broad-based growth led by North America, up mid-single digits, Europe grew low single digits and Asia Pacific grew high single digits, with solid growth in China. Lastly, segment income grew 30% year-over-year with return on sales up an impressive 200 basis points. Adjusted EPS grew 15% on top of 34% a year ago, and free cash flow grew 41% year-over-year. Looking ahead, for full year guidance, we are maintaining our sales outlook and raising our adjusted EPS range, reflecting our strong start to the year. We expect electrification, sustainability and digitalization to continue to drive demand. We're on track for another great year.

轉向按地理位置劃分的有機銷售。我們繼續看到以北美為主導的廣泛成長，實現中個位數成長，歐洲實現低個位數成長，亞太地區實現高個位數成長，其中中國成長強勁。最後，部門營收年增 30%，銷售報酬率大幅成長 200 個基點。調整後每股盈餘較去年同期成長 34%，成長 15%，自由現金流年增 41%。展望未來，對於全年指導，我們維持銷售前景並提高調整後的每股收益範圍，反映出我們今年的強勁開局。我們預計電氣化、永續發展和數位化將繼續推動需求。我們即將迎來另一個偉大的一年。

From a vertical perspective, we expect infrastructure to have the strongest growth, benefiting from the electrification and digitalization trends. We expect continued strong growth in Data Solutions, particularly our liquid cooling solutions given the acceleration of AI. In commercial, we anticipate modest growth with residential being soft. In energy, we expect growth driven by the energy transition, in particular, LNG, clean fuels, carbon capture and hydrogen. Overall, I'm proud of our nVent team and how we continue to perform and deliver impressive results.

從垂直角度來看，我們預計基礎設施將受益於電氣化和數位化趨勢而實現最強勁的成長。我們預計數據解決方案將持續強勁成長，特別是考慮到人工智慧的加速發展，我們的液體冷卻解決方案。在商業方面，我們預期成長溫和，而住宅則疲軟。在能源方面，我們預計能源轉型將推動成長，特別是液化天然氣、清潔燃料、碳捕獲和氫。總的來說，我為我們的 nVent 團隊以及我們如何繼續表現和交付令人印象深刻的成果感到自豪。

I will now turn the call over to Sara for further detail on our first quarter results, and our updated outlook for 2024. Sara, please go ahead.

我現在將把電話轉給 Sara，了解有關我們第一季度業績的更多詳細信息，以及我們更新的 2024 年展望。

Thank you, Beth. Let's begin on Slide 5 with our first quarter results. We are off to a great start to the year. Organic sales growth and adjusted EPS exceeded guidance and execution was strong. Sales of $875 million were up 18% relative to last year or 5% organically. Volumes were up 4 points and price added 1-point to growth. Acquisitions added $98 million to sales or 13 points to growth. Foreign exchange was roughly flat.

謝謝你，貝絲。讓我們從投影片 5 開始看第一季的業績。我們今年有一個好的開始。有機銷售成長和調整後每股收益超越指導，執行力強勁。銷售額達 8.75 億美元，較去年成長 18%，有機成長 5%。銷售成長 4 個百分點，價格成長 1 個百分點。收購使銷售額增加了 9,800 萬美元，即成長了 13 個百分點。外匯交易基本持平。

First quarter segment income was $192 million, up 30%, with incrementals of 33%. Return on sales was 22%, up 200 basis points year-over-year. Price plus productivity more than offset investments and total inflation of roughly $20 million. As expected, the ECM acquisition was accretive to return on sales. Q1 adjusted EPS was $0.77, up 15% and above the high end of our guidance range. Acquisitions contributed a strong $0.06 in the quarter. We generated robust free cash flow of $74 million up 41% compared to a year ago, reflecting our strong operational performance.

第一季分部營收為1.92億美元，成長30%，增量為33%。銷售回報率為22%，較去年同期成長200個基點。價格加上生產力足以抵消約 2000 萬美元的投資和總通貨膨脹。正如預期的那樣，收購 ECM 增加了銷售回報。第一季調整後每股收益為 0.77 美元，成長 15%，高於我們指導範圍的上限。本季度收購貢獻了 0.06 美元的強勁收入。我們產生了 7,400 萬美元的強勁自由現金流，比一年前成長了 41%，反映了我們強勁的營運表現。

Now please turn to Slide 6 for a discussion of our first quarter segment performance. Starting with Enclosures, the team delivered a fantastic quarter. Sales of $440 million increased 13%. The Texa acquisition added 2 points to sales. Organically, sales increased 11% on top of 11% growth a year ago. This included high single-digit volume growth and positive price. Infrastructure grew strong double digits, led by Data Solutions, Industrial and Commercial/Resi each grew low single digits. Geographically, North America led up low teens, followed by Europe up mid-single digits. Enclosures first quarter segment income was $95 million, up 15%. Return on sales of 21.6% increased 50 basis points year-over-year, driven by strong growth and execution, but we continue to make significant growth investments.

現在請轉到投影片 6，討論我們第一季的部門業績。從 Enclosures 開始，團隊交付了出色的季度業績。銷售額達 4.4 億美元，成長 13%。德州的收購使銷售額增加了 2 個百分點。從有機角度來看，銷售額在一年前成長 11% 的基礎上成長了 11%。這包括高個位數的銷售成長和正面的價格。基礎設施以兩位數強勁成長，其中數據解決方案、工業和商業/Resi 均實現低個位數成長。從地理上看，北美的增幅為低兩位數，其次是歐洲，增幅為中個位數。機櫃第一季營收為 9,500 萬美元，成長 15%。在強勁成長和執行力的推動下，銷售回報率為 21.6%，年成長 50 個基點，但我們繼續進行重大成長投資。

Moving to Electrical & Fastening. Sales of $292 million increased 42%. The ECM acquisition contributed 44 points to sales growth. Organic sales were down 3%, reflecting positive price and lower volumes. Industrial and Commercial/Resi each grew in the quarter. This was more than offset by a decline in infrastructure due to customer and channel inventory normalization and a strong prior year comparison. Geographically, organic sales declined in North America and Europe while Asia Pacific was up. Electrical & Fastening segment income was $85 million, up 39% year-over-year. Return on sales was 29.2% and down 60 basis points, mainly due to lower volumes and the impact of the ECM acquisition.

轉向電氣和緊固。銷售額達 2.92 億美元，成長 42%。 ECM 收購為銷售額成長貢獻了 44 個百分點。有機銷售額下降 3%，反映出積極的價格和較低的銷售量。工業和商業/Resi 本季均有所成長。由於客戶和通路庫存正常化以及強勁的上年比較，基礎設施的下降足以抵消這一影響。從地理上看，北美和歐洲的有機銷售額下降，而亞太地區則有所上升。電氣與緊固部門營收為 8,500 萬美元，較去年同期成長 39%。銷售回報率為 29.2%，下降了 60 個基點，主要是由於銷量下降和 ECM 收購的影響。

Turning to Thermal Management. Sales of $143 million were down 1% organically. The Russia impact was approximately 4 points to growth. Volumes were down low single digits with positive price. Notably, Commercial/Resi can continue to improve sequentially, and industrial MRO sales remained strong. In addition, backlog grew year-over-year and energy transition represents over 1/3 of the project backlog. Geographically, growth was led by Asia Pacific or North America and Europe declined. Thermal Management segment income of $32 million was up 3%. Return on sales of 22.3% was up 80 basis points year-over-year due to strong execution and favorable mix.

轉向熱管理。銷售額為 1.43 億美元，有機下降 1%。俄羅斯的影響力約為成長 4 個百分點。成交量下降了個位數，但價格卻呈正值。值得注意的是，商業/Resi 可以繼續持續改善，工業 MRO 銷售仍然強勁。此外，積壓專案逐年成長，能源轉型佔專案積壓專案的 1/3 以上。從地理上看，成長以亞太地區或北美為主導，而歐洲則有所下降。熱管理部門營收為 3,200 萬美元，成長 3%。由於強勁的執行力和有利的組合，銷售回報率為 22.3%，較去年同期成長 80 個基點。

On Slide 7, titled balance sheet and cash flow. We ended the quarter with $211 million of cash on hand and $600 million available on our revolver. We believe our healthy balance sheet provides us with ample capacity to invest in the business and execute on our growth strategy.

第 7 張投影片的標題是資產負債表和現金流量。本季結束時，我們手頭現金為 2.11 億美元，左輪手槍可用現金為 6 億美元。我們相信，健康的資產負債表為我們提供了充足的能力投資於業務並執行我們的成長策略。

So turning to Slide 8, where we outline our capital allocation priorities. We continue to prioritize growth and execute a balanced and disciplined approach to capital allocation to deliver great returns. We had strong free cash flow in the quarter, growing 41% year-over-year. As a result, we exited Q1 with a net debt to adjusted EBITDA ratio of 1.9x. As previously announced, our quarterly dividend increased 9%, returning $32 million to shareholders. We believe we are well positioned for capital deployment in 2024.

那麼轉向幻燈片 8，我們概述了我們的資本配置優先事項。我們繼續優先考慮成長，並執行平衡和嚴格的資本配置方法，以實現豐厚的回報。本季我們的自由現金流強勁，年增 41%。結果，我們第一季末的淨負債與調整後 EBITDA 的比率為 1.9 倍。正如先前宣布的，我們的季度股息增加了 9%，向股東返還 3,200 萬美元。我們相信，我們已做好 2024 年資本部署的準備。

Moving to Slide 9 and our full year outlook. We continue to expect reported sales growth of 8% to 10%, with organic growth in the range of 3% to 5%. This includes positive price and strong volume growth for the year. And acquisitions are expected to contribute approximately 5 points to growth. We are raising our full year adjusted EPS range to $3.22 to $3.30, up 5% to 8% versus our original guidance of $3.17 to $3.27. We now expect segment income to grow 10% to 12% for the year versus 8% to 11% previously. This raised guidance reflects the strong start to the year. All other modeling assumptions for the full year remain unchanged.

轉到幻燈片 9 和我們的全年展望。我們繼續預期報告銷售額將成長 8% 至 10%，有機成長在 3% 至 5% 範圍內。這包括今年的正價格和強勁的銷售成長。收購預計將為成長貢獻約 5 個百分點。我們將全年調整後每股收益範圍提高至 3.22 美元至 3.30 美元，較我們最初的指導值 3.17 美元至 3.27 美元上漲 5% 至 8%。我們現在預計今年分部收入將成長 10% 至 12%，而之前為 8% 至 11%。這一上調的指導反映了今年的強勁開局。全年的所有其他建模假設均保持不變。

Looking at our second quarter outlook on Slide 10, we expect organic sales to be up 3% to 5%. For segment organic sales growth, we expect Enclosures to lead with high single-digit growth, Electrical & Fastening to be similar to Q1 and Thermal Management to turn positive. We expect adjusted EPS to be between $0.81 and $0.83, which at the midpoint reflects a 6% growth relative to last year.

從幻燈片 10 上的第二季展望來看，我們預計有機銷售額將成長 3% 至 5%。對於細分市場的有機銷售成長，我們預計外殼將以高個位數成長領先，電氣和緊固件將與第一季相似，熱管理將轉正。我們預計調整後每股收益將在 0.81 美元至 0.83 美元之間，其中數值較去年增長 6%。

Wrapping up, I am pleased with our first quarter performance. We delivered strong growth, margin expansion and robust cash flow and are well positioned for another great year.

總結一下，我對我們第一季的表現感到滿意。我們實現了強勁的成長、利潤率擴張和強勁的現金流，並為下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，現在我將把電話轉回給貝絲。

Thank you, Sara. Turning to Slide 11. I would like to provide an update on our Data Solutions business. The acceleration of AI, greater data consumption, rising heat densities and growth in edge computing are all drivers of demand for our Data Solutions offerings. We have a broad and innovative portfolio that includes liquid cooling, smart power distribution, cable management, enclosures, racks and cabinets and leak detection and sensing solutions. We believe we are well positioned to grow with the significant data center infrastructure investments driven by the acceleration of AI.

謝謝你，薩拉。轉向投影片 11。人工智慧的加速發展、數據消耗的增加、熱密度的增加以及邊緣運算的成長都是我們數據解決方案產品需求的驅動因素。我們擁有廣泛的創新產品組合，包括液體冷卻、智慧配電、電纜管理、外殼、機架和機櫃以及洩漏檢測和感測解決方案。我們相信，隨著人工智慧加速推動的大量資料中心基礎設施投資，我們已經做好了發展的準備。

Today, only 5% of data centers are liquid cooled. With the technology shift to the new AI chips, liquid cooling is an imperative. In addition, liquid cooling can provide up to 50% energy savings and reduce power consumption. We estimate liquid cooling will grow 3x faster than conventional air cooling and represent roughly 25% of data center cooling by 2028. We believe we are a leader in this space and are able to provide a broad range of solutions, be it liquid to air, air to liquid or liquid to liquid for both greenfield and retrofit.

如今，只有 5% 的資料中心採用液冷。隨著技術轉向新的人工智慧晶片，液體冷卻勢在必行。此外，液體冷卻可節省高達 50% 的能源並降低功耗。我們估計，到2028 年，液體冷卻的成長速度將比傳統空氣冷卻快3 倍，約佔資料中心冷卻的25%。到空氣、空氣到液體或液體到液體，用於新建和改造。

We have offered liquid cooling solutions for over 15 years starting in industrial applications. We have developed technical application expertise and manufacturing and supply chain capabilities. Today, we are partnering with major data center players. Our innovative solutions, along with our ability to manufacture at scale positions us to win in this rapidly growing space. We are also building on a portfolio of standard products to drive broader adoption and scale through distribution channels. We view cooling and power to be the fastest-growing areas, which now make up 50% of our Data Solutions business.

從工業應用開始，我們提供液體冷卻解決方案超過 15 年。我們已經開發了技術應用專業知識以及製造和供應鏈能力。今天，我們正在與主要資料中心參與者合作。我們的創新解決方案以及大規模製造的能力使我們能夠在這個快速成長的領域中獲勝。我們也正在建立標準產品組合，以透過分銷管道推動更廣泛的採用和規模化。我們認為冷卻和電力是成長最快的領域，目前占我們數據解決方案業務的 50%。

In the first quarter, we completed the move of our distribution center in Minnesota to a new location, bring up that space to expand our liquid cooling capacity. We expect this new space to come online in Q3 and give us the ability to expand capacity fourfold. Lastly, we continue to expect our Data Solutions business to be over $500 million this year.

第一季度，我們完成了將明尼蘇達州配送中心遷至新地點的工作，騰出空間來擴大我們的液體冷卻能力。我們預計這個新空間將在第三季上線，讓我們能夠將產能擴大四倍。最後，我們仍然預計今年我們的數據解決方案業務將超過 5 億美元。

Please turn to Slide 12, titled 2023 Sustainability Report. At nVent we are building a more sustainable and electrified world. Our commitment to sustainability is integral to how we operate, and we took measurable steps to improve our impact in 2023. Last month, we published our latest sustainability report that highlights the significant progress we've made across our People, Products and Planet pillars.

請參閱投影片 12，標題為《2023 年永續發展報告》。在 nVent，我們正在建立一個更永續和電氣化的世界。我們對永續發展的承諾是我們營運方式不可或缺的一部分，我們採取了可衡量的措施來提高我們在2023 年的影響力。我們在人員、產品和地球支柱方面取得的重大進展。

Our People pillar focuses on inclusion, diversity, employee engagement, safety and integrity. In 2023, we increased global representation of women in management by 4 percentage points improving diversity of leadership. Safety of our employees is a key priority. And in 2023, we improved our total recordable incident rate by more than 20%. We believe our people and culture are a differentiator, and our efforts are focused on making nVent a great place to work.

我們的人才支柱專注於包容性、多元化、員工敬業度、安全性和誠信。 2023 年，我們將全球管理階層中女性的比例提高了 4 個百分點，改善了領導階層的多元性。我們員工的安全是首要任務。 2023 年，我們將總可記錄事故率降低了 20% 以上。我們相信我們的員工和文化是與眾不同的因素，我們的努力重點是使 nVent 成為一個理想的工作場所。

Our Products pillar focuses on developing highly innovative solutions that deliver efficiency, safety and reduced resource consumption, creating a more sustainable future. In 2023, 85% of products in our New Product Introduction funnel had a positive ESG impact and we're on track to get to greater than 90% by 2025. We set a new goal to eliminate single-use plastics from our product packaging by 2030. Through our innovative products and solutions, we are helping our customers build a more sustainable and electrified world. For example, our electrical connection solutions, which include grounding and power connections add resiliency to critical electrical systems.

我們的產品支柱專注於開發高度創新的解決方案，提高效率、安全性並減少資源消耗，創造更永續的未來。 2023 年，我們的新產品推出管道中85% 的產品產生了積極的ESG 影響，我們預計在2025 年達到90% 以上。塑膠： 2030 透過我們的創新產品和解決方案，我們正在幫助客戶建立一個更永續發展和電氣化的世界。例如，我們的電氣連接解決方案（包括接地和電源連接）增加了關鍵電氣系統的彈性。

Our solutions include flexible busbars with the bending radius much smaller than that of cable, which enables space and material savings. Alongside benefits of easier installation, these higher current density conductors allow renewable energy and utility customers to meet the demand of increasingly complex applications.

我們的解決方案包括彎曲半徑遠小於電纜的柔性母線，從而節省空間和材料。除了更易於安裝的優點之外，這些電流密度更高的導體還使再生能源和公用事業客戶能夠滿足日益複雜的應用的需求。

Our Planet pillar focuses on responsible energy, waste and water management to help protect our natural resources. In 2023, we reduced total greenhouse gas emissions by 9% and increased renewable energy consumption to 15% and increased energy-efficient LED lighting in our facilities to 89%. These are measurable steps and to further demonstrate our commitment to environmental stewardship, we set a new goal to reduce water consumption by 25% by 2030.

我們的地球支柱專注於負責任的能源、廢物和水管理，以幫助保護我們的自然資源。 2023 年，我們將溫室氣體排放總量減少了 9%，將再生能源消耗增加到 15%，並將我們設施中的節能 LED 照明增加到 89%。這些都是可衡量的步驟，為了進一步反映我們對環境管理的承諾，我們設定了 2030 年將用水量減少 25% 的新目標。

And I'm very proud that we've been recognized for our efforts. We were awarded a Gold Sustainability Rating from EcoVadis, placing us in the top 3% of companies assessed in our industry and in the 93rd percentile of all companies assessed. We were also recognized as 1 of America's Greenest Companies by Newsweek. We were named for the first time to the Fortune Best Workplaces in Manufacturing & Production List. And most recently, nVent was recognized as 1 of the World's Most Ethical Companies by Ethisphere. Our sustainability efforts are key to our strategy and how we operate. I'm very proud of everything we have accomplished and the journey we are on.

我非常自豪我們的努力得到了認可。我們獲得了 EcoVadis 的可持續發展金級評級，使我們躋身行業內接受評估的公司前 3% 以及所有接受評估的公司中的第 93%。我們也被《新聞週刊》評為美國最環保公司之一。我們首次入選《財富》製造和生產最佳工作場所名單。最近，nVent 被 Ethisphere 評為全球最具商業道德公司之一。我們的永續發展努力是我們的策略和營運方式的關鍵。我對我們所取得的一切成就和我們正在進行的旅程感到非常自豪。

Wrapping up on Slide 13. We are off to a strong start to the year with record Q1 sales and adjusted EPS. We have made significant progress on our ESG goals. And we believe we are well positioned with the electrification of everything, sustainability and digitalization trends. I am proud of our team's performance. Our future is bright.

第 13 張幻燈片即將結束。我們在 ESG 目標方面取得了重大進展。我們相信，我們在萬物電氣化、永續發展和數位化趨勢方面處於有利地位。我為我們團隊的表現感到自豪。我們的未來是光明的。

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

現在，我將把電話轉給接線員以開始問答。

(Operator Instructions) Our first question comes from Deane Dray with RBC Capital.

（操作員說明）我們的第一個問題來自 RBC Capital 的 Deane Dray。

Nice start to the year. Lots of new data points here on Slide 11 regarding your liquid cooling positioning and capacity. So that's the first question is that 4x expansion in your capacity. I had been talking about and thinking it was 2x. So obviously, much bigger here. Where -- so you identified, you have a new plant, but -- so the run rate by the end of this year, this is the 4x capacity and how much of this capacity is already spoken for in terms of your line of sight on visibility of demand. So maybe a sense of utilization.

今年開局不錯。幻燈片 11 上有許多關於液體冷卻定位和容量的新數據點。所以第一個問題就是你的容量是否要擴大 4 倍。我一直在談論並認為它是 2x。很明顯，這裡要大得多。你確定，你有一個新工廠，但是，到今年年底的運行率，這是 4 倍的產能，並且這個產能的多少已經根據你的視線來說明需求的可見性。所以也許是一種利用感。

Well, we expect some of this capacity to start to come online through the back half of the year. And I mean that's going to continue to grow into 2025. So when we talk at 4x capacity, some of that to the space. We have to continue to build out our labs, for example, in some of those lines. So we believe that, that capacity supports the growth that we see this year and enables us -- and we have some visibility into 2025. And certainly, we're working on testing some configurations with various customers, and that test process takes some while. But we're just anticipating that, that gets us through '25, '26, and we'll see beyond that where it takes us to.

嗯，我們預計其中一些容量將在今年下半年開始上線。我的意思是，這一數字將繼續增長到 2025 年。例如，我們必須繼續建造我們的實驗室，其中一些是這樣的。因此，我們相信，這種產能支持我們今年看到的成長，並使我們能夠對 2025 年有一定的了解。但我們只是期待這一點，這會讓我們度過 25 年、26 年，我們會看到超越它的目標。

And I think, Deane, to comment on the 2x, recall we've done a couple of things. First, we expanded capacity because we moved some lines out of our facility in Minnesota to Mexico. So that was our first expansion in the footprint that we had. Then we moved this distribution center out so that we could expand even further because that was the fastest thing that we could do to get capacity up online.

Deane，我想，在評論 2x 時，請回想一下我們已經做了幾件事。首先，我們擴大了產能，因為我們將一些生產線從明尼蘇達州的工廠移至墨西哥。這是我們足跡的第一次擴張。然後我們把這個配送中心搬走了，這樣我們就可以進一步擴張，因為這是我們能做的最快的線上產能提升的事情。

That's great visibility then. So -- and I appreciate how nimble your manufacturing capacity has ramped up. And then just a second question. There's another new data point here for us at least. The identifying liquid cooling growing 3x faster than legacy air. So legacy air in our view, has been growing roughly mid-teens. So that looks like a step up in the growth versus the greater than 30% you had been saying. Is that a fair assessment?

那麼可見度就很高了。因此，我很欣賞你們的製造能力的提升。然後是第二個問題。至少對我們來說還有另一個新數據點。公認的液體冷卻速度比傳統空氣冷卻速度快 3 倍。因此，在我們看來，傳統空氣的成長速度大約在十幾歲左右。因此，與您所說的超過 30% 的增長相比，這看起來是一個進步。這是一個公平的評價嗎？

We think that it has increased from what we've seen previously. And so recall, we had a very strong quarter with Data Solutions.

我們認為它比我們之前看到的有所增加。回想一下，我們的數據解決方案季度表現非常強勁。

Our next question comes from Julian Mitchell with Barclays.

我們的下一個問題來自巴克萊銀行的朱利安·米切爾。

Maybe just wanted to start with the sort of price/cost and gross margin dynamics. I think you said inflation was a $20 million headwind in Q1. So price/cost was negative maybe $14 million or so in the first quarter. Just a couple of things on that. One is, is that why the gross margin declined year-on-year despite the volume growth? And then secondly, how should we think about that price/cost dynamic playing out in your kind of segment income bridge for the balance of the year?

也許只是想從價格/成本和毛利率動態開始。我想你說過通貨膨脹是第一季 2000 萬美元的逆風。因此，第一季的價格/成本可能為負數約 1400 萬美元。關於這一點只有幾件事。一是，這就是銷量成長但毛利率卻較去年同期下降的原因嗎？其次，我們應該如何考慮今年剩餘時間在您的細分收入橋樑中發揮的價格/成本動態？

Yes, I'll start with -- coming into this year, we said it's going to be a combination, and this is consistent with how we've run the business for years of price plus productivity offsetting that total inflation, which includes material, labor and everything else as well as helping to fund those investments. And so we think Q1 played out exactly how we would have expected it to and how we expect the year to play out as well.

是的，我首先要說的是——進入今年，我們說這將是一個組合，這與我們多年來經營業務的方式是一致的，價格加生產力抵消了總通膨，其中包括材料、勞動力和其他一切，以及幫助為這些投資提供資金。因此，我們認為第一季的表現完全符合我們的預期，也完全符合我們對今年的預期。

And then secondly, I would say from a price perspective, we said, look, we want positive price this year. And again, we saw that play out across all three segments in Q1. And importantly, productivity was going to play a more meaningful role in offsetting inflation and again, helping us fund those investments. We had also said and we saw this play out really nicely here in Q1, and we would expect that to continue in the course of the year that while we were getting some productivity and material and logistics last year, we weren't really getting that core 4-wall productivity and we began to see that here in Q1.

其次，我想說從價格角度來看，我們說，看，我們今年希望價格為正。我們再次看到第一季所有三個細分市場都出現了這種情況。重要的是，生產力將在抵消通貨膨脹方面發揮更有意義的作用，並再次幫助我們為這些投資提供資金。我們也說過，我們在第一季看到這種情況非常好，我們預計這種情況將在這一年中持續下去，雖然我們去年獲得了一些生產力、材料和物流，但我們並沒有真正得到這些核心 4 牆生產力，我們在第一季開始看到這一點。

So as you think about price for the full year, we continue to expect that to be positive price. And when you think about that dynamic of price inflation, productivity, there's nothing really to call out specifically through the course of Q2 in the back half. The one thing that I will call out, and that is impacting margins in Q2 here in the back half, is just the increased investments. Part of that's going to be on the R&D side. You saw that in Q1. It was up 9% from where we're at in Q4, but also these investments around capacity, which we believe has great ROI to it as well.

因此，當您考慮全年的價格時，我們仍然預期該價格為正值。當你考慮到價格通膨和生產力的動態時，在第二季的後半段中沒有什麼值得特別指出的。我要指出的一件事是投資的增加，這對第二季後半段的利潤率產生了影響。其中一部分將用於研發方面。你在第一季就看到了這一點。與第四季相比成長了 9%，而且這些圍繞產能的投資也帶來了巨大的投資報酬率。

And Sara, just on that point, the $20 million number you mentioned earlier in the quarter, is that investment plus inflation or just inflation?

薩拉，就這一點而言，您在本季早些時候提到的 2000 萬美元這個數字，是投資加上通貨膨脹還是只是通貨膨脹？

That's just inflation. So that means that productivity was meaningful to help offset that inflation as well as help to fund some of those investments like the higher R&D.

這只是通貨膨脹。因此，這意味著生產力對於幫助抵消通貨膨脹以及幫助資助一些投資（例如更高的研發）是有意義的。

Absolutely. And my follow-up would just be on the EFS division. Just maybe help us understand kind of within infrastructure that destocking? Is it around utilities or some other vertical? And how we should think about the sort of margins playing out at EFS over the balance of the year, please?

絕對地。我的後續行動將集中在 EFS 部門。也許只是幫助我們了解基礎設施內部的去庫存？是圍繞公用事業還是其他垂直領域？我們該如何考慮 EFS 在今年餘下時間的利潤率？

So when you look at EFS, where we saw that infrastructure weakness was utility and telecom. And just part of this is last year, we had very high comps. I think we were up 40% in utility. And so as lead times normalize and inventory not only at distributors, but at the channel, that's what we saw and telecom, I think, is just a softer market conditions. So those are the two key drivers.

因此，當您查看 EFS 時，我們發現基礎設施的弱點在於公用事業和電信。這只是去年的一部分，我們的競爭非常高。我認為我們的效用提高了 40%。因此，隨著交貨時間正常化，庫存不僅在分銷商，而且在通路，這就是我們所看到的，我認為，電信只是市場條件更加疲軟。這些是兩個關鍵驅動因素。

And for margin, I'll let Sara just comment on that.

至於保證金，我會讓薩拉對此發表評論。

Yes. So from an overall margin standpoint, just remember that while ECM is accretive to overall invent, it's dilutive to EFS more specifically. I think the other thing I would call out just as you think about where we're guiding to in Q2, we do expect some margin contraction there in EFS because of that ECM dilution, at least half a quarter. But also they begin to lap some pretty amazing return on sales of a year ago at 32% here in Q2 and Q3. And remember, we had called out that they had some mix benefit there that was benefiting those return on sales. But still, on an absolute basis, good, healthy return on sales.

是的。因此，從整體利潤的角度來看，請記住，雖然 ECM 會促進整體發明，但更具體地說，它會稀釋 EFS。我想我要指出的另一件事是，正如您思考我們在第二季度的指導方向一樣，我們確實預計 EFS 的利潤率會因 ECM 稀釋而出現一些收縮，至少是半個季度。但他們在第二季和第三季的銷售回報率也開始達到一年前相當驚人的 32%。請記住，我們已經指出他們在那裡有一些混合效益，這有利於銷售回報。但從絕對意義上講，銷售回報仍然良好、健康。

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。

I wanted to dig back into the price. I thought we'll look at the 2% price in 2024. So maybe I got that wrong, but maybe just to clarify that. So is 1% a good number to use through the year. But really, on orders, can you maybe just talk about orders by segments that low single-digit order growth, how that looked across the three segments? And then how does April look? I know it's -- you just wrapped up April, but how the deal does look for April?

我想再深入了解價格。我以為我們會在 2024 年考慮 2% 的價格。因此，1% 是一個適合全年使用的數字。但實際上，在訂單方面，您能否只談談訂單成長率較低的細分市場的訂單，這三個細分市場的情況如何？那麼四月看起來怎麼樣呢？我知道——你剛結束了四月份的工作，但是四月的交易情況如何呢？

So I'll maybe start off on the price side. So in our February call, we talked a lot about price volume and saying that we would expect positive price, but volume would be a much more significant contribution to that overall top line, which is exactly the way Q1 played out. And we also said that, that price plus productivity was going to help offset that total inflation as well as help in fund those investments, which is how Q1 played out.

所以我可能會從價格方面開始。因此，在我們二月份的電話會議中，我們談論了很多關於價格成交量的問題，並表示我們預計價格將為正，但成交量將對整體營收做出更重要的貢獻，這正是第一季的表現。我們也說過，價格加生產力將有助於抵消總通膨，並有助於為這些投資提供資金，這就是第一季的結果。

And when we look at the order trends, orders were up mid-single digits in Electrical & Fastening and low single digits in Thermal and Enclosures. And I think April looks like Q1.

當我們觀察訂單趨勢時，電氣和緊固件的訂單出現中個位數增長，而熱和外殼的訂單則出現低個位數增長。我認為四月看起來就像第一季。

Okay. That's really helpful. And then on the capacity expansion in liquid cooling, which Deane covered quite well, how does the margin profile for liquid cooling look as you ramp that up? I mean, I'm guessing there's going to be lot of stock costs and whatnot. So does that start to drag in a meaningful way or measurable way within the segment?

好的。這真的很有幫助。然後，關於液體冷卻的產能擴張，迪恩很好地介紹了這一點，當你提高液體冷卻的產能時，液體冷卻的利潤狀況如何？我的意思是，我猜會有很多庫存成本等等。那麼，這是否開始在該細分市場中以有意義的方式或可衡量的方式拖累？

Yes. So the Data Solutions business, which mostly -- largely sits in Enclosures, we said it's just roughly on par from a gross margin standpoint. But what we are investing in is that capacity. And as you might expect, as we bring that capacity online and make some pretty big shifts within one of our largest factories here in Q2 and Q3 to make room for that liquid cooling capacity, we are expecting some ramp-up costs to impact that here in Q2 and Q3, but that's reflected in our overall guidance here in Q2.

是的。因此，數據解決方案業務主要集中在外殼領域，我們說從毛利率的角度來看，它大致持平。但我們投資的是這種能力。正如您所預料的那樣，隨著我們將這一產能上線，並在第二季度和第三季度在我們最大的工廠之一內進行一些相當大的轉變，為液體冷卻能力騰出空間，我們預計一些增加的成本會影響這一點在第二季度和第三季度，但這反映在我們第二季度的整體指引中。

So does that mean -- sorry, I don't want to take too much time, but when you think about that price productivity inflation investment buckets together with the ramp-up costs here, do we -- do we see some potential for negativity in that balance? Or do you still think you close the right way?

那麼這是否意味著 - 抱歉，我不想花太多時間，但是當你考慮價格生產率通膨投資桶以及這裡的上升成本時，我們 - 我們是否看到了一些潛在的負面影響在那個平衡中？還是你仍然認為你的關閉方式是正確的？

No. The combination of price plus productivity, we expect to offset that inflation in investments. But if you just look at that kind of net productivity bar, that's where some of those investments are going to flow in -- in Q2 and in Q3.

不會。但如果你只看這種淨生產力，你會發現其中一些投資將在第二季和第三季流入。

Our next question comes from Joe Ritchie with Goldman Sachs.

我們的下一個問題來自高盛的喬·里奇。

Can we just talk about the first quarter growth performance organically turned out to be a little bit better than we expected, which is great to see. I guess how much of that was driven by just the Data Solutions business just continuing to be on fire versus the rest of your business? And then really kind of the reason I'm asking is as you kind of think about the second quarter and now that you've lapped some destocking, you've got no rush tough comp in 2Q. Why wouldn't it step up in 2Q?

我們能否談談第一季的有機成長表現比我們預期的要好一些，這是很高興看到的。我猜這其中有多少是由數據解決方案業務相對於其他業務的持續火爆所推動的？我問的真正原因是你對第二季度的看法，現在你已經進行了一些去庫存，你在第二季度不必急於進行艱難的競爭。為什麼第二季沒有加速？

Well, let me -- I'll start with Q1, and I'll let Sara refer back to guidance again. But we had very strong growth in Data Solutions in the quarter, and some of that is just a result of some of those -- how those customer programs layered in. But that's certainly what gave us some of that significant volume growth is coming from Data Solutions.

好吧，讓我——我將從 Q1 開始，我會讓 Sara 再次參考指導。但是本季度我們在數據解決方案方面取得了非常強勁的增長，其中一些只是其中一些因素的結果 - 這些客戶計劃如何分層。

And then as we think about that, Joe, from a Q2 perspective, again, we expect Data Solutions to grow very nicely here in Q2, just not quite at the levels of Q1. And so that's why as Enclosures printed a fantastic 11% organic growth in Q1, we expect that to look more like high single digits here in Q2. The other thing I would point to is just we are expecting to see a bit more softer Europe. Europe was up for us in Q1, and we do expect -- we're taking a bit more of a cautious view on Europe here in Q2.

然後，當我們思考這一點時，喬，從第二季度的角度來看，我們再次預計數據解決方案在第二季度將增長得非常好，只是達不到第一季的水平。這就是為什麼 Enclosures 在第一季實現了 11% 的驚人自然成長，我們預計第二季的自然成長將更像是高個位數。我要指出的另一件事是，我們預計歐洲會更加疲軟。歐洲在第一季對我們有利，我們確實預計 - 我們在第二季度對歐洲採取更加謹慎的看法。

Okay. Yes, that makes sense, and that's super helpful. I guess my follow-on question, it was great to see the offerings at data center world and as -- obviously, it seems like folks are just running as fast as they possibly can in that end market. As I think about your own offering, there are certain things that you guys do in-house or certain things that you guys outsource. Is there any thought around potentially using some of the M&A dollars to get a little bit bigger either in the CDU itself or in other areas that sell into the data center.

好的。是的，這是有道理的，而且非常有幫助。我想我的後續問題是，很高興看到資料中心領域的產品，而且顯然，人們似乎在終端市場上盡可能快地奔跑。當我考慮你們自己的產品時，有些事情是你們內部所做的，有些事情是你們外包的。是否有任何想法可能使用一些併購資金在基民盟本身或向資料中心銷售的其他領域擴大規模。

Well, as we think about our overall strategy and M&A, we always say we look at high-growth verticals first. And I think, Joe, I mean, I can point to a couple of acquisitions we've done. We've done 6 and 2 of them from the WBT, wire basket tray contributed to our cable management offering and the CIS Global acquisition contributed to our smart power distribution. So I think as we continue to look at M&A, we look at great products and great verticals. And certainly, I think there's always opportunities there for us to strengthen the portfolio and data solutions as it is in other infrastructure areas.

嗯，當我們考慮我們的整體策略和併購時，我們總是說我們首先關注高成長的垂直產業。我想，喬，我的意思是，我可以指出我們已經完成的幾項收購。我們已經從 WBT 完成了其中的 6 個和 2 個，線籃托盤為我們的電纜管理產品做出了貢獻，而 CIS Global 的收購則為我們的智慧配電做出了貢獻。因此，我認為，當我們繼續關注併購時，我們會專注於優秀的產品和優秀的垂直領域。當然，我認為我們總是有機會加強產品組合和數據解決方案，就像在其他基礎設施領域一樣。

Our next question comes from Jeff Hammond with KeyBanc Capital Markets.

我們的下一個問題來自 KeyBanc Capital Markets 的 Jeff Hammond。

Jeff, are you there?

傑夫，你在嗎？

Yes. Can you hear me?

是的。你聽得到我嗎？

Yes, we can hear you now.

是的，我們現在可以聽到你的聲音。

Okay. Great. Just a clarification on the capacity expansion, the 4x, does that contemplate a new plant as well? Or is that just simply the moves you've made, creating space?

好的。偉大的。只是對產能擴張（4 倍）進行澄清，這是否也考慮建立新廠？還是這只是你所做的、創造空間的舉動？

Yes. That is not a new plant. But what we did is we moved out a distribution center that was attached to our main manufacturing facility, we moved that to a new location and then expanded are expanding within that area, the liquid cooling capacity. So that's -- remember, we expanded in Mexico, that was the first step, that creative space. Then we move distribution to a new location and now expanding within that footprint.

是的。那不是新工廠。但我們所做的是，我們搬離了一個附屬於我們主要製造工廠的配送中心，我們將其搬到了一個新地點，然後在該區域擴大了液體冷卻能力。所以，請記住，我們在墨西哥進行了擴張，這是第一步，創意空間。然後我們將分銷轉移到一個新地點，並在該足跡範圍內進行擴張。

Okay. Great. And then EFS, I think you said thermal is going to return to growth for the rest of the year, but how should we think about EFS into 2Q? I know the orders were better. And then just on those orders, is that kind of clear line of sight that destocking is kind of behind us from here?

好的。偉大的。然後是 EFS，我想您說熱電將在今年剩餘時間內恢復成長，但我們應該如何看待第二季的 EFS？我知道訂單更好。然後就這些訂單而言，是否有一種清晰的視線表明去庫存已經在我們身後了？

Let me start by just saying one of the comments I made is when we look at our distribution channel, we see that we had -- there was positive sell-through. So that's good. And we think largely, the distribution channels have normalized and stabilized. However, there are some areas, and we called out for EFS areas like utility, for example, where we know that there is inventory at the end customer and at the channel. And recall, we had a very big comp of 40% growth in utilities last year. So some of that, we think, plays into Q2, but very specific areas. But overall, I'd say it's largely stabilized.

首先我要說的是，我發表的評論之一是，當我們查看我們的分銷管道時，我們發現我們的銷售量是正面的。所以這樣很好。我們認為很大程度上，分銷管道已經正常化和穩定。然而，有一些領域，我們呼籲 EFS 領域，例如公用事業，我們知道最終客戶和管道有庫存。回想一下，去年我們的公用事業成長了 40%。因此，我們認為其中一些因素會影響第二季度，但只是非常具體的領域。但總的來說，我想說它基本上已經穩定了。

Yes. And Jeff, I would just comment on EFS. So EFS, we still expect EFS to grow for the full year. But for Q2, we expect that Q2 year-over-year performance to look a lot like Q1 because we do expect those infrastructure dynamics that Beth talked about to continue into the quarter. And as we think about the back half, a couple of things there to keep in mind, one would just be comps do get easier. Two would be we do expect that inventory normalization to begin to kind of ease, if you will, in the back half closer Q4.

是的。 Jeff，我只想評論 EFS。因此，我們仍然預計 EFS 全年會成長。但對於第二季度，我們預計第二季度的年比表現將與第一季非常相似，因為我們確實預期貝絲談到的基礎設施動態將持續到本季。當我們考慮後半部分時，有幾件事需要記住，其中之一就是比賽確實會變得更容易。第二，我們確實預期庫存正常化將在接近第四季的後半段開始有所緩解（如果你願意的話）。

I think the last thing I would just point out is the sales synergies for ECM as well as EFS and the combination thereof. We think that will begin to layer on in the back half of the year.

我想我要指出的最後一件事是 ECM 和 EFS 及其組合的銷售綜效。我們認為這將在今年下半年開始顯現。

Our next question comes from Jeff Sprague with Vertical Research Partners.

我們的下一個問題來自垂直研究合作夥伴的 Jeff Sprague。

Just coming back to the capacity addition. I know you're not going to tell us exactly what your liquid cooling sales are, but I just kind of want to understand what 4x means. I mean does it literally mean if you had $50 million of revenue in liquid cooling in 2023, you believe you have $200 million in 2025? Is it is it directly correlated to kind of a revenue run rate?

剛剛回到容量增加。我知道您不會確切地告訴我們您的液體冷卻銷售額是多少，但我只是想了解 4 倍意味著什麼。我的意思是，這是否意味著如果您在 2023 年在液體冷卻領域擁有 5000 萬美元的收入，那麼您認為 2025 年您的收入將達到 2 億美元？它與收入運行率直接相關嗎？

Well, no, not precisely. I would say this, when we look at the footprint space, this is what we're referring to. And so it will take us some time to build out some of the lines as well as we're expanding our lab capability because one of the things with these solutions is it goes under extensive testing within our labs as well as our customers in situ. So we will have the footprint and eventually, that will expand our capacity from a volume -- a unit volume.

嗯，不，不完全是。我想說的是，當我們查看足跡空間時，這就是我們所指的。因此，我們需要一些時間來建造一些生產線，並擴大我們的實驗室能力，因為這些解決方案的一件事是它在我們的實驗室以及我們的客戶現場進行了廣泛的測試。因此，我們將擁有足跡，最終，這將擴大我們的容量——單位體積。

Understood. And then just back to the thermal, clearly, with the Russia headwind behind us, we would expect it to return to growth. But can you be a little bit more specific on what you're seeing there, kind of in the in the served end markets in thermal that would underpin kind of the return to growth and how you see that playing out maybe even kind of into next year given that I'm sure there's some project activity going on there.

明白了。然後回到熱氣流，顯然，隨著俄羅斯逆風的過去，我們預計它將恢復成長。但是，您能否更具體地介紹一下您所看到的情況，例如在熱力服務終端市場中，這將支撐增長的回歸，以及您如何看待這種情況甚至可能進入下一個階段鑑於我確信那裡正在進行一些專案活動。

Yes. So in our prepared remarks, we talked about we're seeing our backlog up. We're seeing new wins on energy transition. That's an area that we've really focused on, and we see investment flowing there. We certainly had some strong growth in Asia Pacific as we see industrial and chemical opportunities. And we continue to sequentially see Commercial/Resi improve in that thermal business.

是的。因此，在我們準備好的發言中，我們談到了我們的積壓情況。我們看到能源轉型取得了新的勝利。這是我們真正關注的一個領域，我們看到投資流向那裡。由於我們看到了工業和化學領域的機遇，我們在亞太地區確實取得了強勁的成長。我們繼續看到商業/Resi 在熱力業務方面有所改善。

So as we -- this is -- Q2 is the last quarter that we lapped the Russia exit. We see an increased backlog. We see increased orders, and generally, a lot of "activities." So we feel confident that the thermal business is poised for growth for the remainder of the year.

因此，第二季是我們退出俄羅斯市場的最後一個季度。我們看到積壓的情況增加。我們看到訂單增加，而且總體上有很多“活動”。因此，我們相信熱力業務將在今年剩餘時間內成長。

Our next question comes from Nicole DeBlase with Deutsche Bank.

我們的下一個問題來自德意志銀行的 Nicole DeBlase。

Maybe we could continue with thermal. From a margin perspective, pretty impressive performance up year-on-year with down sales in the quarter. I guess, how should we think through the rest of the year? Is that -- is that sustainable? And then I know you guys have put work into doing some restructuring in that business as sales have been weak. What can incrementals look like once organic growth does turn positive?

也許我們可以繼續熱力。從利潤率的角度來看，本季的銷售額年減，但業績年增率相當令人印象深刻。我想，我們該如何度過今年剩下的時間呢？這是可持續的嗎？然後我知道，由於銷售疲軟，你們已經投入精力對該業務進行一些重組。一旦有機成長確實轉為正值，增量會是什麼樣子？

I'll maybe start with just the overall incremental question. So we were pleased with the incrementals in Q1 at 33%. And overall, we continue to believe that our business with the strong growth profile, value proposition and margins that in a more normal environment, those incrementals will look like plus 30%.

我可能會從整體增量問題開始。因此，我們對第一季 33% 的增量感到滿意。總體而言，我們仍然相信我們的業務具有強勁的成長態勢、價值主張和利潤率，在更正常的環境下，這些增量看起來將增加 30%。

And then I think your question was on the thermal management in terms from a return on sales perspective. I would just start by saying, I think the team has done an excellent job of managing that cost structure, managing the price cost equation and really pleased with that overall Q1 return on sales performance. We wouldn't expect that same level of year-over-year ROS expansion here in Q2 in the back half in part because of the projects that Beth talked about, I mean, we pointed out in Q1, they were benefiting from some favorable mix on the product side. But as that top line returns to growth, and some of that's going to be projects, which still comes at good margins, but not quite as good as the product side that's going to impact that year-over-year return on sales perspective.

然後我認為您的問題是從銷售回報角度來看的熱管理。我首先要說的是，我認為團隊在管理成本結構、管理價格成本方程式方面做得非常出色，並且對第一季的整體銷售業績回報感到非常滿意。我們預計第二季下半年 ROS 不會出現同樣水平的同比擴張，部分原因是 Beth 談到的項目，我的意思是，我們在第一季指出，他們受益於一些有利的組合在產品方面。但隨著收入恢復成長，其中一些將是項目，這些項目仍然具有良好的利潤率，但不如產品方面那麼好，這將影響銷售的同比回報率。

Got it. Very clear. And then maybe on Europe, you guys spoke about how you're kind of anticipating maybe some Europe weakness coming through in the second quarter. Is that something that you guys actually saw in your order trends? Or are you just being a little bit cautious based on what you're hearing.

知道了。非常清楚。然後，也許在歐洲方面，你們談到了你們對第二季度歐洲可能會出現一些疲軟的預期。你們在訂單趨勢中確實看到了這一點嗎？或者您只是根據您所聽到的內容稍微謹慎一點。

No. Yes, we did see that in our order trend through Q1 that Europe was definitely softer than North America and Asia Pacific.

不。

Our next question comes from Vlad Bystricky with Citi.

我們的下一個問題來自花旗集團的 Vlad Bystricky。

So I just wanted to follow up on that last question and comment from Nicole about Europe. Can you just give us more color on what's contemplated in guidance for the rest of the year in terms of potential for incremental weakening in Europe going forward?

所以我只想跟進妮可關於歐洲的最後一個問題和評論。您能否給我們更多關於今年剩餘時間的指引中關於歐洲未來逐漸疲軟的可能性的預期內容？

Well, here's what I would say is that we were pleased with the Q1 performance where we actually grew Europe overall in Q1. And so what we're suggesting here is in that Q2 guide, we're not expecting growth here in Europe. And I think it really reflects some of the order trends that Beth alluded to.

好吧，我想說的是，我們對第一季的表現感到滿意，我們實際上在第一季實現了歐洲的整體成長。因此，我們在第二季指南中建議，我們預計歐洲不會成長。我認為這確實反映了貝絲提到的一些訂單趨勢。

Okay. That's helpful. And then can you just give us an update on what you're seeing in terms of underlying growth at ECM and how you're progressing on synergy capture there versus your expectations?

好的。這很有幫助。那麼您能否向我們介紹一下您在 ECM 的潛在成長方面所看到的最新情況，以及您在協同效應捕獲方面與您的預期相比取得的進展如何？

Yes. When we look at ECM, that business had several different channels. And I would say ECM has performed very similar to what we've seen our EFS business. I would say they have a stronger retail channel. And so that's retail resi, that's been a little softer, and that was our comment about we expect that to continue to be soft. But I think as we've been working on a lot of our sales synergies. And as Sara commented on, we expect to see that start to layer in, in the back half of the year. And so that is everything from bringing some of that product through our rep and distribution network as well as into taking some of those products and bringing them -- making sure that they're certified so we can bring them into Europe. So all of that activity is underway.

是的。當我們觀察 ECM 時，該業務有幾個不同的管道。我想說 ECM 的表現與我們所看到的 EFS 業務非常相似。我想說他們有更強大的零售通路。這就是零售儲備，有點疲軟，這是我們的評論，我們預計零售儲備將繼續疲軟。但我認為我們一直在努力發揮銷售綜效。正如薩拉評論的那樣，我們預計這種情況會在今年下半年開始逐步顯現。因此，這就是從透過我們的代表和分銷網絡帶來一些產品，並將其中一些產品帶入歐洲——確保它們經過認證，以便我們可以將它們帶入歐洲。所以所有這些活動都正在進行中。

And I will say this, one of the things when we acquired that business, they certainly had supply chain challenges and availability challenges and we've worked very hard to improve that situation. And what's been encouraging is that we've seen and heard from our customers, we see some of that -- those orders pick up where we've improved the delivery situation. But overall, ECM is a great acquisition for us, and we think it just extends our portfolio in power connection solutions. And so we see great potential for the synergies to play out over the next several years.

我要說的是，當我們收購該業務時，他們肯定面臨供應鏈挑戰和可用性挑戰，我們非常努力地改善這種情況。令人鼓舞的是，我們看到並聽到了客戶的回饋，我們看到了其中的一些訂單——這些訂單在我們改善了交付情況的地方增加了。但總的來說，ECM 對我們來說是一次偉大的收購，我們認為它只是擴展了我們在電源連接解決方案方面的產品組合。因此，我們看到未來幾年發揮協同效應的巨大潛力。

And maybe just a quick add on the cost synergy side. So I would just say we're well on track. As we acquired ECM, we were really excited about it from the growth side, but we also did see some cost synergies there in that $10 million to $15 million mark by year 3. And I would say that we're well on track to deliver that. We're seeing material procurement, synergies, logistics, indirect. I think too, on the cash tax synergies, we now expect closer to $10 million per year versus the $6 million to $8 million previously that we had discussed.

也許只是在成本協同方面快速增加。所以我想說我們已經步入正軌了。當我們收購 ECM 時，我們對它的成長感到非常興奮，但我們也確實看到了一些成本協同效應，到第 3 年將達到 1000 萬至 1500 萬美元。我們看到材料採購、綜效、物流、間接。我也認為，就現金稅協同效應而言，我們現在預計每年將接近 1000 萬美元，而之前我們討論的金額為 600 萬至 800 萬美元。

And then lastly, we talked about in 2024 with that acquisition being accretive to EPS and that $0.07 to $0.08. And so we saw a strong $0.06 contribution here in Q1. So contributing overall very nicely.

最後，我們談到了 2024 年該收購將增加每股收益 0.07 至 0.08 美元。因此，我們在第一季看到了 0.06 美元的強勁貢獻。所以整體來說貢獻非常好。

Our last question comes from Brian Drab with William Blair.

我們的最後一個問題來自布萊恩·德拉布和威廉·布萊爾。

Just a couple of small clarifications at this point. But in EFS, I think you said that the sell into the channel was up low single digits. The sell-through is positive. Can you just put a finer point on that? What does positive mean exactly? Does that mean sell-through is up slightly year per year?

此時僅需要進行一些小的澄清。但在 EFS 中，我認為您說過進入通道的賣出量增長了低個位數。銷售情況良好。您能對此提出更具體的觀點嗎？積極到底是什麼意思？這是否意味著銷售量每年都會略有上升？

Well, our comment was more around all of nVent, right, that we just saw positive sell-through, so low single digits.

好吧，我們的評論更多的是圍繞 nVent 的整體，對吧，我們剛剛看到了積極的銷售量，所以單位數很低。

All right. So positive means low single digit?

好的。那麼正數意味著低個位數？

Yes.

是的。

Okay. Got it. Okay. And then in the commercial business, you mentioned that things are looking better -- or sorry, in the thermal business that you mentioned things are looking better, Commercial and Resi. Is that back to growth in the first quarter? Or is it just improving sequentially? And then also, I was curious, you said the energy end market was the only one that was trouble point in the first quarter. Does that mean that energy was the only end market that you saw a decline year-over-year in the first quarter within thermal?

好的。知道了。好的。然後在商業業務中，您提到情況看起來更好了——或者抱歉，在熱力業務中，您提到情況看起來更好，商業和 Resi。第一季是否恢復成長？還是只是依序改善？另外，我很好奇，您說能源終端市場是第一季唯一的麻煩點。這是否意味著能源是第一季熱力發電中唯一出現年減的終端市場？

So I'm just going to -- just for clarification. So overall, for nVent, Commercial/Resi was positive. And overall for nVent, energy was down and that was primarily due to the Russia impact. For thermal specifically, we've seen Commercial/Resi improving, so not quite yet back to growth, but it's improved for the last several quarters. And certainly, thermal has been impacted by energy the most because of the Russia impact. And we have one more quarter that will lap here in Q2 with Russia, the Russia exit.

所以我只是想澄清一下。總的來說，對於 nVent 來說，商業/Resi 是積極的。總體而言，對於 nVent 來說，能源有所下降，這主要是由於俄羅斯的影響。具體而言，對於熱力發電，我們看到商業/熱電聯產有所改善，因此尚未恢復成長，但在過去幾個季度有所改善。當然，由於俄羅斯的影響，熱能受到能源的影響最大。我們還有四分之一圈將在第二季與俄羅斯一起繞圈，俄羅斯退出。

This concludes our question-and-answer session. I would like to turn the conference back over to Beth Wozniak, Chair and Chief Executive Officer for any closing remarks.

我們的問答環節到此結束。我想將會議轉回主席兼首席執行官貝絲·沃茲尼亞克 (Beth Wozniak) 發表閉幕詞。

Thank you for joining us today. I'm very proud of the performance we delivered in the first quarter. We will continue to focus on delivering for our customers, employees and shareholders by executing on our growth strategy. We believe nVent is a top-tier high-performance electrical company well positioned for the electrification of everything, sustainability and digitalization trends.

感謝您今天加入我們。我對我們第一季的表現感到非常自豪。我們將繼續專注於透過執行我們的成長策略來為我們的客戶、員工和股東提供服務。我們相信 nVent 是一家頂尖高性能電氣公司，在萬物電氣化、永續發展和數位化趨勢方面處於有利地位。

Thanks again for joining us. This concludes the call.

再次感謝您加入我們。通話就此結束。

The 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。您現在可以斷開連線。