Phinia Inc (PHIN) 2025 Q1 法說會逐字稿

Well ladies and gentlemen, thank you for standing by. My name is Krista, and I will be your conference operator today. At this time, I would like to welcome everyone to the Phinia first quarter 2025 earnings conference call. (Operator Instructions)

女士們、先生們，感謝你們的支持。我叫克里斯塔，今天我將擔任您的會議主持人。現在，我歡迎大家參加 Phinia 2025 年第一季財報電話會議。（操作員指示）

I would now like to turn the conference over to Kellen Ferris, Vice President of Investor relations. Kelen, you may begin.

現在，我想將會議交給投資者關係副總裁凱倫費里斯 (Kellen Ferris)。凱倫，你可以開始了。

Thank you and good morning, everyone. We appreciate you joining us. Our conference call materials were released this morning and are available on Finas's investor relations website, including a slide deck that we'll be referencing in our remarks.

謝謝大家，早安。感謝您的加入我們。我們的電話會議資料已於今天早上發布，可在 Finas 的投資者關係網站上查閱，其中包括我們將在發言中引用的幻燈片。

We're also broadcasting this call via webcast. Joining us today are Brady Ericson, CEO and Chris Gropp, CFO; During this call, we will make forward-looking statements which are based on management's current expectations and are subject to risks and uncertainties.

我們也透過網路廣播播放了這通通話。今天參加我們會議的有執行長 Brady Ericson 和財務長 Chris Gropp；在本次電話會議中，我們將根據管理階層目前的預期做出前瞻性陳述，並受風險和不確定性的影響。

Actual results may differ materially from these statements due to a variety of factors, including those described in our SEC filings. We caution listeners not to place any undue reliance upon any such forward-looking statements.

由於多種因素（包括我們向美國證券交易委員會提交的文件中所述的因素），實際結果可能與這些聲明有重大差異。我們提醒聽眾不要過度依賴任何此類前瞻性陳述。

And with that, it's my pleasure to turn the call over to Brady.

現在，我很高興將電話轉給布雷迪。

Thank you, Kellen, and thank you everyone for joining us this morning. I'll start with some overall comments on the first quarter and then provide some thoughts on 2025 and beyond. Chris will then provide additional detail on our financials and discuss our 2025 guidance.

謝謝你，凱倫，也謝謝大家今天早上加入我們。我將首先對第一季發表一些總體評論，然後對 2025 年及以後提出一些想法。克里斯隨後將提供有關我們財務狀況的更多細節並討論我們的 2025 年指導。

We will then open the call for questions. Starting on slide 4 the deck, the first quarter developed largely as we expected, with highlights including strong business retention and new conquest wins, delivering on our capital return strategy and maintaining a healthy balance sheet.

然後我們將開始提問。從幻燈片 4 開始，第一季的發展基本上符合我們的預期，亮點包括強勁的業務保留和新的征服勝利、實現我們的資本回報策略並保持健康的資產負債表。

During the first quarter, the macroeconomic environment and the automotive industry continued to show signs of slowing. Similar to what we experienced in the second half of 2024. Our financial results reflect the soft top line, but with good segment adjusted operating margin performance.

一季度，宏觀經濟環境和汽車產業持續呈現放緩跡象。與我們在 2024 年下半年所經歷的情況類似。我們的財務表現反映了疲軟的營收狀況，但分部調整後的營業利潤率表現良好。

While the environment continues to evolve rapidly, our teams are managing our priorities and our business well. Both aftermarket segment sales and fuel system segment sales were lower year over year, primarily due to lower OEM volumes.

儘管環境繼續快速變化，但我們的團隊仍能很好地管理我們的優先事項和業務。售後市場部門銷售額和燃油系統部門銷售額較去年同期均有所下降，主要原因是原始設備製造商銷售下降。

As a result, net sales in the quarter were $796 million down 7.8% in the same period of the prior year, which included contract manufacturing revenues. Excluding the FX impact and CMA agreements that were in place last year, revenue decreased 4.1%. This was in line with our expectations as we see a softer first half of 25 on a global basis.

因此，本季淨銷售額為 7.96 億美元，較去年同期下降 7.8%，其中包括合約製造收入。不計去年的外匯影響和 CMA 協議，收入下降了 4.1%。這符合我們的預期，因為我們看到 25 年上半年全球經濟表現較為疲軟。

We reported adjusted EBITA of $103 million with a margin of 12.9%. A 260-basis point year over year decline. The decrease was primarily due to lower sales, added infrastructure costs to support the business of the standalone entity, and the strong Q1 2024 comparison.

我們報告的調整後 EBITA 為 1.03 億美元，利潤率為 12.9%。年減260個基點。下降的主要原因是銷售額下降、為支持獨立實體業務而增加的基礎設施成本以及 2024 年第一季的強勁表現。

Total segment adjusted operating margins for 12.2%, 140 basis point decrease when compared with the first quarter of 2024. Adjusted earnings per diluted share, excluding non-operating items as detailed in the appendix was $0.94.

整個部門調整後的營業利潤率為 12.2%，與 2024 年第一季相比下降了 140 個基點。調整後每股攤薄收益（不包括附錄中詳述的非經營性項目）為 0.94 美元。

Are keen to continue to work closely with suppliers and customers in order to efficiently and effectively work through dynamic business conditions. On the capital side, we continue to take steps intended to drive long term value for our shareholders.

熱衷於繼續與供應商和客戶密切合作，以便在動態的商業條件下高效、有效地開展工作。在資本方面，我們繼續採取措施，為股東創造長期價值。

Our balance sheet remains strong with cash and cash equivalents of $373 million and combined with our undrawn revolver, our total liquidity is approximately $900 million. Importantly, our net leverage ratio was 1.4 times, closing in on our approximate target of 1.5 times.

我們的資產負債表依然強勁，現金和現金等價物為 3.73 億美元，加上未提取的循環信貸額度，我們的總流動資金約為 9 億美元。重要的是，我們的淨槓桿率為1.4倍，接近我們的1.5倍的目標。

And lastly, our solid financial position enabled us to return $111 million to shareholders via share buybacks and dividends during the first quarter of 2025. In fact, we bought back more than 7.5 million shares, or roughly 16.5% of outstanding shares since we were spun out in July of 2023.

最後，我們穩健的財務狀況使我們能夠在 2025 年第一季透過股票回購和股息向股東返還 1.11 億美元。事實上，自 2023 年 7 月分拆以來，我們已回購了超過 750 萬股，約佔流通股的 16.5%。

That has now moved to slides 5 and 6 for a discussion of new business wins. We saw sustained momentum in new customer growth and continued to generate growth opportunities in our core business. Additionally, I'm pleased with our efforts around new product development and new customer wins.

現在已轉到投影片 5 和 6，討論新業務的成功。我們看到新客戶成長的持續勢頭，並繼續在我們的核心業務中創造成長機會。此外，我對我們在新產品開發和新客戶贏得方面所做的努力感到滿意。

Our continued focus on deepening our relationship with customers, the expansion of our product offering, and our ability to capture new business wins give us many levers to drive the business. Let me call out a few.

我們持續致力於深化與客戶的關係、擴大我們的產品供應以及贏得新業務的能力，這為我們提供了推動業務發展的多種槓桿。讓我列舉幾個。

A 350-bar gasoline direct injection system or GDI for an alternative fuel application which is using E-100. It's with a leading international automobile manufacturer for the Brazilian market, which leverages existing high performance Phinia GDI technology while adapting it for decreased carbon emission alternative fuels.

350 巴汽油直噴系統或 GDI，用於使用 E-100 的替代燃料應用。該公司與巴西市場的一家領先的國際汽車製造商合作，利用現有的高性能 Phinia GDI 技術，同時對其進行改造以減少碳排放的替代燃料。

To high volume fuel delivery module, or FDM wins in the Americas market for a gas truck platform that continues to expand the use of the robust and versatile FDM technology. A conquest selective tus reduction or SCR pump win for the Chinese market securing additional LPV and LCV revenue in China focused on lowering tailpipe emissions.

大容量燃料輸送模組，或稱 FDM，在美國市場上贏得了天然氣卡車平台的青睞，該平台繼續擴大了強大而多功能的 FDM 技術的使用。在中國市場上，選擇性Tus 減排或 SCR 泵浦的勝利確保了中國 LPV 和 LCV 的額外收入，重點是降低廢氣排放。

Aftermarket business wins in the steering and suspension category with a member of a major customer group in Scandinavia and a major Canadian distributor, which will boost our business in Canada and provides opportunities to expand sales and other product categories over time.

售後市場業務在轉向和懸吊類別中獲勝，擁有斯堪的納維亞半島主要客戶群的成員和加拿大主要分銷商，這將促進我們在加拿大的業務，並提供隨著時間的推移擴大銷售和其他產品類別的機會。

Business expansion with a major US distributor, which is a consolidator in the warehouse distribution space, further strengthening our relationship. Increase share of wallet with a major US distributor across all product categories, growing with them as they expand their business. We are committed to driving expansion and complementary product categories and executing on a creative M&A to drive additional scale in our business.

與美國一家大型經銷商（倉儲分銷領域的整合商）的業務拓展進一步加強了我們的關係。增加美國主要分銷商在所有產品類別中的錢包份額，並隨著其業務擴展而共同成長。我們致力於推動產品類別的擴張和互補，並實施富有創意的併購，以擴大我們的業務規模。

Additionally, we continue to believe that the breadth and scale of our customer base provides a strong foundation for continued growth.

此外，我們始終相信，我們客戶群的廣度和規模為持續成長提供了堅實的基礎。

Now moving on to slide 7, capital allocation. Our capital priority is first and foremost to invest in our business for long-term profitable growth. We return excess capital to shareholders through both dividends and share repurchases.

現在轉到投影片 7，資本配置。我們的資本重點是投資於我們的業務，以實現長期獲利成長。我們透過股利和股票回購將多餘的資本返還給股東。

We have a proven track record of being financially disciplined and focused on maximizing long term shareholder value. We have $264 million remaining under our current repurchase authorization, and we expect to continue to opportunistically repurchase shares as part of our capital allocation strategy.

我們在財務紀律方面有著良好的記錄，並且專注於最大化長期股東價值。我們目前的回購授權餘額為 2.64 億美元，我們預計將繼續適時回購股票，作為我們資本配置策略的一部分。

Phinia continues to demonstrate financial stability and consistency, and I'm confident in our ability to respond to this challenging macroeconomic environment. Looking ahead and summing up, we have much to be excited about in 2025 despite the dynamic North American market.

Phinia 繼續展現財務穩定性和一致性，我相信我們有能力應對這一充滿挑戰的宏觀經濟環境。展望未來並總結一下，儘管北美市場充滿活力，但我們對 2025 年仍有許多期待。

The global nature of our business, the diversity of the markets we serve, and our substantial aftermarket business will benefit us greatly. We continue to launch new innovative products around the world and look forward to moving from stabilizing the business post spinoff to building on and further improving the foundation we have built.

我們的業務的全球性、我們所服務市場的多樣性以及我們大量的售後市場業務將使我們受益匪淺。我們將繼續在全球推出新的創新產品，並期待從穩定分拆後的業務發展到鞏固和進一步改善我們已經建立的基礎。

Regarding the evolving North American market, I want to help frame the impact of tariffs on our business. A majority of our North American manufacturing capacity has been in Mexico for more than 30 years and represents roughly $1 billion of our revenues for less than 30% of our global revenues.

關於不斷發展的北美市場，我想幫助闡述關稅對我們業務的影響。30 多年來，我們大部分的北美製造產能都集中在墨西哥，約占我們全球收入的 10 億美元，但不到全球收入的 30%。

The majority of our products are USMCA compliant and roughly half are sold to customers in Mexico. We are also working closely with our customers and suppliers on a number of options to adjust sourcing, sales, and logistics flow to mitigate at least some of the impacts of tariffs on products not qualified under USMCA.

我們的產品大多符合 USMCA 標準，大約一半銷往墨西哥的客戶。我們也與客戶和供應商密切合作，研究多種方案來調整採購、銷售和物流流程，以減輕關稅對不符合 USMCA 資格的產品的至少部分影響。

While we continue to digest the new trade policies and qualified mitigation plans, we feel we have several options and pathways to respond to this dynamic environment.

在我們繼續消化新的貿易政策和合格的緩解計劃的同時，我們認為我們有幾種選擇和途徑來應對這種動態環境。

We also believe the diversity of our global business and of our customers has us well positioned to manage the impact of tariffs on our business. I'd like to conclude with a few important messages. First, we are navigating near term uncertainty well and appreciate the commitment of our strong global team.

我們也相信，我們全球業務和客戶的多樣性使我們能夠很好地管理關稅對我們業務的影響。最後，我想說幾句重要的話。首先，我們正在很好地應對近期的不確定性，並感謝我們強大的全球團隊的承諾。

Second, we are very confident in the strength, the resilience, and the overall health of our company, which will allow us to continue to invest in our business, make acquisitions, and return capital to shareholders. And third, our long-term strategy to grow our CV, industrial and aerospace OE business and aftermarket and service offerings remains intact, and we believe it will allow us to deliver long term shareholder value.

其次，我們對公司的實力、韌性和整體健康狀況非常有信心，這將使我們能夠繼續投資於我們的業務、進行收購並向股東返還資本。第三，我們發展商用車、工業和航空航太 OE 業務以及售後市場和服務產品的長期策略保持不變，我們相信這將使我們能夠實現長期股東價值。

With that, I'll hand it over to Chris who will walk us through our Q1 results and discuss our outlook for the year. Chris.

接下來，我將把話題交給克里斯，他將向我們介紹我們的第一季業績並討論我們對今年的展望。克里斯。

Thanks, Brady, and thank you all for joining us this morning.

謝謝，布雷迪，也謝謝大家今天早上加入我們。

As a reminder, reconciliations of all non-gap financial measures that I will discuss can be found in today's press release and in the presentation, both of which are on our website.

提醒一下，我將要討論的所有非差距財務指標的對帳可以在今天的新聞稿和簡報中找到，這兩個文件都在我們的網站上。

Moving to slide 9. Our business and financial results demonstrated resiliency and balance sheet strength. As expected, revenue in the first quarter reflects similar market trends to what we experienced in the last half of 2024.

移至幻燈片 9。我們的業務和財務表現展現出韌性和資產負債表實力。正如預期的那樣，第一季的收入反映了與我們在 2024 年下半年經歷的類似的市場趨勢。

We generated $796 million in net sales down 7.8% versus a year ago. We have experienced some headwinds in US dollar reported sales which were largely impacted by a continuation of foreign currency devaluation.

我們的淨銷售額為 7.96 億美元，較去年同期下降 7.8%。我們在美元報告銷售額方面遇到了一些阻力，這主要是受到持續外匯貶值的影響。

Excluding the impact from foreign currency and contract manufacturing sales that ended last year, the year over year sales for Q1 were down 4.1%. Our aftermarket segment sales decreased 3.9% year over year, primarily due to lower OEM sales.

不計去年年底外匯和合約製造銷售的影響，第一季的年銷售額下降了 4.1%。我們的售後市場銷售額年減 3.9%，主要原因是 OEM 銷售額下降。

Fuel system segment sales were down 10.2%, including prior year contract manufacturing sales, or 7.3%, excluding the effect of contract manufacturing. The decline in fuel systems is attributable to lower OE sales across all regions.

燃油系統部門銷售額下降 10.2%，包括去年同期的合約製造銷售額；若不包括合約製造的影響，則下降 7.3%。燃油系統銷售的下降歸因於所有地區的原廠設備銷售下降。

Adjusted operating income was $73 million with a 9.2% adjusted operating margin, which represents a year over year decrease of 24 million and 230 basis points. Corporate costs were higher as we continued to build out the necessary corporate functions to operate as a standalone entity.

調整後營業收入為 7,300 萬美元，調整後營業利潤率為 9.2%，年減 2,400 萬美元和 230 個基點。隨著我們繼續建構作為獨立實體運作所需的公司職能，公司成本也隨之上升。

We are taking steps to ensure that costs remain aligned with current needs and are closely reviewing all discretionary operating expenses. Our adjusted net earnings per diluted share in the first quarter was $0.94, which excludes non-operating items which are described in the appendix of our presentation.

我們正在採取措施確保成本與當前需求保持一致，並密切審查所有可自由支配的營運費用。我們第一季的調整後每股攤薄淨收益為 0.94 美元，其中不包括我們簡報附錄中所述的非經營性項目。

From a core business performance standpoint, our segments reported solid overall margins. Q1 segment adjusted operating margin was healthy at 12.2%. However, this did represent a decrease of 140 basis points year by year, primarily related to negative sales mix in the aftermarket segment.

從核心業務績效的角度來看，我們的各部門報告了穩健的整體利潤率。第一季分部調整後的營業利益率健康達 12.2%。然而，這確實代表著同比下降了 140 個基點，主要與售後市場部門的負面銷售組合有關。

A one-off retro payment received from a supplier issue in Q1 of 2024 for fuel systems and approximately $4 million in tariff costs from the newly introduced tariff regime in the US that are expected to be passed through 100% in the second quarter.

2024 年第一季從供應商收到的燃油系統一次性補付款以及美國新推出的關稅制度產生的約 400 萬美元關稅成本，預計將在第二季 100% 轉嫁。

The aftermarket segment margin decreased 180 basis points, ending the quarter at 16.1% due to negative sales mixes noted and about $2 million in tariff costs that are expected to be passed through to customers via increased sales prices in Q2.

售後市場利潤率下降了 180 個基點，本季末為 16.1%，原因是出現了負面銷售組合，並且大約有 200 萬美元的關稅成本，預計這些成本將透過第二季的銷售價格上漲轉嫁給客戶。

Q1 fuel system segment margins were 9.5%, down 130 basis points year over year due to reduced volumes. A prior year retro settlement from a supplier issue received in Q1 2024 and approximately $2 million in tariff costs that are expected to be charged to customers in Q2 of this year.

第一季燃料系統部門利潤率為 9.5%，由於銷量下降，較去年同期下降 130 個基點。2024 年第一季收到了上一年供應商問題的追溯結算，以及約 200 萬美元的關稅成本，預計將於今年第二季向客戶收取。

Let me now bridge our adjusted revenue and adjusted for the first quarter, which you can find on pages 10 and 11 in the presentation. Cells in the quarter were impacted by softness and volumes, which was a headwind of 34 million on lower OEM cells across all regions.

現在讓我來匯總一下我們的調整後收入和第一季的調整情況，您可以在簡報的第 10 頁和第 11 頁找到。本季的電池受到疲軟和銷量的影響，對所有地區的 OEM 電池造成了 3,400 萬的不利影響。

Compared to Q1 2024, FX was also a headwind of 16 million as the dollar strengthened against the Brazilian RI and the EUR. Moving next to the bridge on slide 11, adjusted Ed was $103 million for a margin of 12.9%, representing a year over year decrease of 28 million and 260 basis points.

與 2024 年第一季相比，由於美元兌巴西雷亞爾和歐元走強，外匯也面臨 1,600 萬的逆風。接下來看投影片 11，調整後的 Ed 為 1.03 億美元，利潤率為 12.9%，年減 2,800 萬美元和 260 個基點。

Lower sales, as I just mentioned, was a headwind of 13 million in the quarter. Other costs of sales were affected by the one-off supplier recovery, impact from tariffs and other manufacturing cost total $12 million.

正如我剛才提到的，銷售額下降是本季 1,300 萬的不利因素。其他銷售成本受到一次性供應商恢復的影響，關稅和其他製造成本的影響總計 1,200 萬美元。

This was partially offset by supplier savings and recoveries of $5 million. Corporate costs were higher by 6 million, reflecting our stand-alone status as of last year, combined with other cost increases of 2 million.

這部分被供應商節省和回收的 500 萬美元所抵消。公司成本增加了 600 萬美元，反映了我們截至去年的獨立狀態，加上其他成本增加了 200 萬美元。

Also of note, excluding the impact of items not related to the company's ongoing operations. The company's effective tax rate associated with ongoing operations was 36% for the quarter ended March 31, 2025. Compared to 38% for the quarter ended March 31, 2024.

另外值得注意的是，排除與公司持續經營無關的項目的影響。截至 2025 年 3 月 31 日的季度，該公司與持續經營相關的有效稅率為 36%。相比之下，截至 2024 年 3 月 31 日的季度這一比例為 38%。

Progress on improving our tax rate is slow and methodical, but clouded by pre-spin related tax activity. Now for a quick recap of our balance sheet and cash flow. Our team's unrelenting focus has enabled us to maintain a solid balance sheet that provides us with financial flexibility to support our capital allocation priorities.

我們提高稅率的進展緩慢且有條不紊，但卻受到與稅收活動相關的預旋轉的影響。現在快速回顧一下我們的資產負債表和現金流。我們團隊的不懈專注使我們能夠保持穩健的資產負債表，從而為我們提供財務靈活性以支持我們的資本配置重點。

We ended the quarter with substantial current liquidity. Cash and cash equivalents for $373 million and available capacity under our credit facilities was approximately $500 million. Net cash generated from operations in Q1 was 40 million.

我們在本季結束時擁有充足的流動資金。現金和現金等價物為 3.73 億美元，我們的信貸額度下的可用容量約為 5 億美元。第一季經營活動產生的淨現金為4000萬。

Up from $31 million in the same period as the prior year. During the quarter, adjusted free cash flow was flat to slightly negative compared to $13 million in the prior year. The decrease was primarily due to lower net earnings adjusted for non-cash items partially offset by lower interest payments.

與去年同期相比，成長了 3,100 萬美元。本季度，調整後的自由現金流與去年同期的 1,300 萬美元相比持平或略為負值。下降的主要原因是非現金項目調整後的淨收益較低，但利息支付較低部分抵消了這一影響。

While some uncertainty and risks remain globally, we are confident in our operations and our ability to generate sufficient cash for our needs, while also continuing to invest in the future.

儘管全球仍存在一些不確定性和風險，但我們對我們的營運和產生足夠現金來滿足我們需求的能力充滿信心，同時也將繼續對未來進行投資。

On the capital allocation front, we pay dividends of $11 million in the quarter and completed share repurchases totaling $100 million. We now have $264 million remaining on the $600 million authorized under our share repurchase program.

在資本配置方面，我們在本季支付了 1,100 萬美元的股息，並完成了總額為 1 億美元的股票回購。我們的股票回購計畫授權的 6 億美元中，目前還剩餘 2.64 億美元。

Capital spend of $35 million was 4.4% of sales in the quarter. Funds were primarily used for investments in new machinery and equipment for new program launches. Now moving to slide 12 for a discussion of our 2025 outlook.

資本支出為 3,500 萬美元，佔本季銷售額的 4.4%。資金主要用於投資新項目啟動所需的新機械和設備。現在轉到第 12 張投影片，討論我們的 2025 年展望。

We are reaffirming our 2025 guidance, which you can see on slide 12. Despite headwinds related to tariffs and uncertainty in the markets, we now anticipate reduced headwinds related to exchange rates against the backdrop of changes in the US dollar to all other currencies.

我們重申我們的 2025 年指導方針，您可以在第 12 張投影片上看到。儘管存在與關稅和市場不確定性相關的阻力，但在美元兌所有其他貨幣匯率變化的背景下，我們預計與匯率相關的阻力將會減少。

More than 60% of our cells are generated outside of North America. Related to those North Americans, we expect any new tariffs incurred to fully pass through to customers. On the macroeconomic front, material changes in the US tariff structure are expected to dampen sales in the US. Uncertainty over emissions regulations in both the US and abroad, plus continuation of elevated interest rates point toward continued softness in the commercial vehicle market.

我們 60% 以上的細胞都是在北美以外生產的。對於這些北美人，我們預期任何新產生的關稅都將完全轉嫁給消費者。在宏觀經濟方面，美國關稅結構的重大變化預計將抑制美國的銷售。美國和國外排放法規的不確定性，加上利率持續上升，導致商用車市場持續疲軟。

However, we expect the industry to experience trends in 2025 that are similar to those in 2024, with the same level of sales in the first half of the year as the last half of 2024. The company continues to expect its 2025 full year effective tax rate to be between 38% and 42% as we make slow, steady progress.

不過，我們預期 2025 年該產業的趨勢將與 2024 年類似，上半年的銷售水準將與 2024 年下半年相同。隨著我們緩慢而穩定地前進，該公司繼續預計其 2025 年全年有效稅率將在 38% 至 42% 之間。

I want to reiterate that the foundation of our business is strong, and with our diversified portfolio, scalable operating platform, and strong balance sheets, we believe we can continue to be successful even in the most challenging external environment.

我想重申，我們的業務基礎強勁，憑藉多元化的投資組合、可擴展的營運平台和強勁的資產負債表，我們相信即使在最具挑戰性的外部環境中也能繼續取得成功。

In 2025 we will continue our efforts to position our company for long term success. In closing, we remain firmly committed to building sustainable value for all our stakeholders. Thank you all for your attention today and we will now move to the Q&A portion of our call.

2025年，我們將繼續努力，確保公司長期成功。最後，我們仍然堅定地致力於為所有利害關係人創造永續價值。感謝大家今天的關注，我們現在進入電話會議的問答部分。

Operator, please open the lines for questions.

接線員，請打開熱線來回答問題。

(Operator Instructions)

（操作員指示）

Jake Scholl with BNP Paribas.

法國巴黎銀行的傑克‧肖爾 (Jake Scholl)。

Hey guys, thanks for taking my question. It looks like in the first quarter, the tariff had was about $4 million for the one-month tariffs were in effect.

嘿夥計們，謝謝你們回答我的問題。看起來，在第一季度，關稅生效的一個月內，關稅金額約為 400 萬美元。

So about $50 million on an annualized basis before we even see the May 3rd parts tariffs. So I know you said you expect to pass along these costs to customers, but could you just help quantify what your exposure is both on the USMCA compliant and non-USMCA compliant basis? Thank you.

因此，在我們看到 5 月 3 日的零件關稅之前，年化金額約為 5000 萬美元。所以我知道您說過您希望將這些成本轉嫁給客戶，但您能否幫助量化您在符合 USMCA 和不符合 USMCA 的基礎上的風險敞口？謝謝。

Yeah, I mean, as we mentioned in the call, the bulk of our North American business is US USMCA compliant, so it's over, well over half, and so we're in a pretty good position there and as I also mentioned on the call, more than half of our revenues are also staying within country, and supplying to our customers in country so.

是的，我的意思是，正如我們在電話會議中提到的那樣，我們的大部分北美業務都符合美國 USMCA 的規定，所以已經超過一半了，所以我們在那裡處於相當有利的地位，正如我在電話會議中提到的那樣，我們一半以上的收入也留在國內，並供應給國內的客戶。

I think we're in a pretty good position. I think your analysis on, the current impact level is accurate, and again, we're continuing to work with customers. There's all the good discussions going on. I think this is going to be easier, a little bit easier for us to to justify and to document versus maybe what we went through a few years ago on trying to, go through electricity and freight costs and so ongoing discussions are good and we're confident in our ability to work with our customers.

我認為我們處於非常有利的地位。我認為您對當前影響程度的分析是準確的，而且我們將繼續與客戶合作。目前正在進行一些很好的討論。我認為這對我們來說會更容易一些，更容易證明和記錄，而不是像幾年前我們試圖那樣，透過電力和運費來證明和記錄，因此正在進行的討論是好的，我們對與客戶合作的能力充滿信心。

Thanks, Brady. And then, can you just talk about any shifts you've seen in the underlying production market, especially, looks like the commercial vehicle OE market has softened pretty significantly over the last few months.

謝謝，布雷迪。然後，您能否談談您在基礎生產市場中看到的任何變化，特別是商用車 OE 市場在過去幾個月中似乎已經明顯疲軟。

Correct. And again, that's kind. Of all contemplated in our updated, I guess reaffirming our guide as Chris kind of mentioned, we, there's a bunch of moving parts, but in general we see. The softening CV, the softening light vehicle market in North America, or maybe I rather than softening CV, we don't see the the pre-buy coming in the second half.

正確的。再說一遍，這很友善。在我們更新的所有考慮中，我想重申我們的指南，正如克里斯提到的那樣，我們有很多活動部件，但總的來說我們看到了。疲軟的 CV，疲軟的北美輕型車市場，或者也許不是疲軟的 CV，我們認為下半年不會預購。

We think that's going to be muted. We've taken that into consideration. We've taken into account the impact of passing through the tariffs as well as the impact of the latest FX exchange rates. So there's still a little bit of noise there, but I think the team is working through it. And we still see in general a good order board from our customers.

我們認為這種聲音將會減弱。我們已經考慮到了這一點。我們考慮了關稅轉嫁的影響以及最新外匯匯率的影響。所以那裡仍然存在一些噪音，但我認為團隊正在努力解決它。總體而言，我們仍然看到客戶的訂單情況良好。

I haven't seen any major impacts, and as Chris kind of mentioned, I think people need to be careful not to overweight the impact of just North America when there's a lot of our business that's outside of North America or stay in country in Mexico. So I still think we're in a pretty good position.

我沒有看到任何重大影響，正如克里斯所提到的那樣，我認為人們需要小心，不要過度重視北美的影響，因為我們的許多業務都在北美以外或留在墨西哥國內。所以我仍然認為我們處於相當有利的地位。

Yeah, and Jake, I also want to point out we have seen since the end of last year, but it continued into this year, our LV market in China has gotten stronger.

是的，傑克，我還想指出，自去年年底以來，我們已經看到這種趨勢持續到今年，我們在中國的 LV 市場變得更加強勁。

Has really held up. CV has been about the same. It's not increased in pools in China, but still going at about the same rate. But LV has gotten noticeably stronger and Europe has held up for us quite well. So, and that's going to be the majority of our book of business.

確實堅持住了。CV 也差不多。中國的游泳池水位沒有增加，但仍以大致相同的速度成長。但 LV 已明顯變得更強大，歐洲也為我們提供了良好的支持。所以，這將是我們業務的主要內容。

Thanks Brady. Thanks, Chris.

謝謝布雷迪。謝謝，克里斯。

Your next question comes from the line of Joseph Spak with UBS. Please go ahead.

您的下一個問題來自瑞銀的 Joseph Spak。請繼續。

Good morning, everyone. I guess just to maybe follow up on that a little bit, it does sound like there's some moving parts, is there any way to sort of help quantify like how much FX is sort of better versus prior that's sort of offsetting maybe some of the software and markets you pointed to?

大家早安。我想也許可以稍微跟進一下，聽起來確實有一些活動的部分，有什麼方法可以幫助量化，例如外匯與之前相比有多少改善，從而抵消了您提到的一些軟體和市場？

Yeah, I think we think in our original guide we had FX as I think Chris about 80 million of headwind, I think that's down to closer to around 20 now. It's really just the impact in Q1, and we don't see it having an impact in the in the kind of rest of the year it's kind of in line with, 2024, that's then obviously offset with the, $50 million of pricing.

是的，我認為在我們最初的指南中我們有 FX，因為我認為 Chris 有大約 8000 萬的逆風，我認為現在已經下降到接近 2000 萬左右。這實際上只是第一季的影響，我們認為它不會對今年剩餘時間產生影響，這與 2024 年的情況一致，然後顯然會被 5000 萬美元的定價所抵消。

On the tariffs expected to be passed through and then also some volume kind of being a little bit softer and CV, than originally expected, due to no pre-buys. So those are kind of the big three, but then we have some upside, as Chris mentioned, in Asia and and Europe still kind of remaining strong force as well. So those are kind of the. A little bit of volume here and there in different parts of the world and the FXs and the terra pass through impact.

預計關稅將轉嫁，而且由於沒有預購，一些交易量和 CV 會比最初預期的稍微弱一些。所以這算是三大巨頭，但正如克里斯所提到的，我們在亞洲和歐洲仍然保持強大的力量，有一定的優勢。所以這些是那種。世界各地都有少量的體積，FX 和地形都會受到影響。

Okay that, that's helpful, I guess, given that what would you, and I know you sort of reiterated the guidance range though, what would you say like how would you sort of classify like where within that range you think you're trending and the reason I ask is because, if you look at sort of the first quarter and sort of the margins you put up.

好的，我想這很有幫助，考慮到你會怎麼做，我知道你重申了指導範圍，你會怎麼說，比如你如何分類，比如你認為你的趨勢在哪個範圍內，我問這個問題的原因是因為，如果你看看第一季和你提出的利潤率。

Looks like you need to average about 14.5% EBITDA margins over the remainder of the year, which is obviously higher than the first quarter level higher year-over-year as well and you are sort of talking about, some lower volumes. So what really drives the the margins higher over the bouncier that would get you to the midpoint, or is, or is the low end a little bit more likely than not?

看起來你需要在今年剩餘時間內平均實現約 14.5% 的 EBITDA 利潤率，這顯然高於第一季度的水平，而且同比也有所提高，而你所說的交易量有所下降。那麼，真正推動利潤率高於波動幅度的因素是什麼，從而讓你達到中間點，或者，或者低端的可能性更大一些？

No, I mean, remember when we're talking about yeah,

不，我的意思是，記得我們討論的時候，

Go ahead go ahead.

來吧，來吧。

Again, when we, when we're talking about lower volumes, it's lower versus our prior guide, and again Q1 came in about in line from a revenue standpoint as we kind of expected and so from a run rate perspective we're seeing higher revenues that then will convert and so that's kind of what what we're seeing kind of going forward and again you've got, 50 basis points on the EBITA that was low because of tariffs that will then come back so that.

再說一次，當我們談論較低的銷量時，它低於我們之前的指導，而從收入的角度來看，第一季度的表現與我們預期的大致一致，因此從運行率的角度來看，我們看到更高的收入，然後轉換，這就是我們所看到的未來，你再次看到，由於關稅，EBITA 較低，為 50 個基點，然後會回升。

So we'll get a little bit of that back, so we'll have a little bit of upside there as well, and we should have some upside, with higher revenues on a run rate perspective in the second half of the next three quarters. We also were expecting that Q1 was going to be soft just because of the start of the year was kind of midweek and a lot of the customers kind of eased into coming back online. In that first week and so we're expecting that to kind of flow through, and so again I think we're still seeing us, solidly in the mid range of our guide, Chris.

因此，我們會收回一點，所以我們也會有一點好處，而且我們應該會有一些好處，從未來三個季度的下半年的運行率來看，收入會更高。我們也預期第一季的業績會比較疲軟，因為年初正值周中，許多客戶都開始慢慢恢復上網。在第一周，我們預計這種情況會順利進行，因此我再次認為我們仍然穩固地處於我們指南的中間範圍內，克里斯。

Yeah, for a lot of reasons, Q1 is our weakest quarter. On the aftermarket side, if you go backwards, Q1 has always been the weakest quarter for aftermarket, and after Q1, it consistently rises as you get into summer season, warmer season, more driving in the seasons. Aftermarket is consistently much higher in Q2, Q3, usually in Q4, but that's going to depend also on weather and driving.

是的，由於很多原因，第一季是我們最疲軟的季度。在售後市場方面，如果回顧一下，第一季一直是售後市場最疲軟的季度，而在第一季之後，隨著進入夏季、氣候變暖、駕駛增多，售後市場持續上升。售後市場在第二、第三季度，通常第四季都會高得多，但這也取決於天氣和駕駛情況。

For the fuel system side, it's usually also one of the weaker quarters. It's going to depend on what the OEs are doing, but right now our units are seeing some good numbers, but this market, we're trying to be as curb conservative as we can be, but it's really hard to tell right now what the markets are going to do because We're seeing still good pools and still good demand from the OEs. We realize that that can change on a dime, so we're watching really close.

對於燃料系統方面，它通常也是較弱的環節之一。這將取決於 OE 的表現，但目前我們的單位看到了一些不錯的數字，但在這個市場上，我們正試圖盡可能保守，但現在很難判斷市場將會如何發展，因為我們看到仍然有良好的資金池，並且 OE 的需求仍然很好。我們意識到這種情況可能瞬息萬變，因此我們正密切關注。

Okay, thanks, fair enough maybe last one Brady I know as you guys have highlighted there is sort of maybe increasing uncertainty out there. I know you know tech and M&A is part of your mid, longer-term strategy.

好的，謝謝，公平地說，也許是最後一個，布雷迪，我知道，正如你們所強調的那樣，外面的不確定性可能正在增加。我知道您知道技術和併購是您中長期策略的一部分。

How do you sort of view this uncertainty in the context of that M&A? I mean, is it sort of a time where you want to. Maybe try to preserve some cash or you know is some of this uncertainty creating some, opportunities for you.

您如何看待併購背景下的這種不確定性？我的意思是，這是你想要的時間嗎？也許嘗試保留一些現金，或者您知道其中的一些不確定性會為您創造一些機會。

I think it's -- I mean, again, we're in a really strong position. We still have a strong, cash on hand and a lot of liquidity, and we continue to generate free cash flow even in this environment. So again, we have a lot of confidence there again the targets that we're looking at are going to be smaller in nature as well and so we're not going to do a deal that's going to going to lever us up to 2 times or more.

我認為——我的意思是，我們再次處於非常有利的地位。我們仍然擁有充足的現金和流動性，即使在這種環境下，我們仍能繼續產生自由現金流。因此，我們再次非常有信心，我們所考慮的目標本質上也會較小，因此我們不會達成一項會讓我們的成本增加 2 倍或更多的交易。

That's not what we're looking for. And so we're looking on looking for those kind of tuck in acquisitions, and they're going to be acquisitions that are, going to be cash flowing. They're not going to be cash burning, entities.

這不是我們想要的。因此，我們正在尋找這類收購，而這些收購將會產生現金流。他們不會成為燒錢的實體。

So, we're looking at things that are opportunistic, but we're also going to always compare that to, what our share price is and whether that kind of makes more sense as we do kind of every quarter.

因此，我們正在尋找機會，但我們也會始終將其與我們的股價進行比較，看看這是否更有意義，就像我們每季所做的那樣。

Okay appreciate it for you.

好的，非常感謝。

Bobby Brooks with Northland Capital Markets.

北國資本市場 (Northland Capital Markets) 的 Bobby Brooks。

Hey, good morning, guys. Thank you for taking the question. So you mentioned that you know the year over year decrease in EBITDA was in part driven by non-recurrence of the supply of supplier settlement and increased standalone costs as you exit from TSA, so.

嘿，大家早安。感謝您回答這個問題。所以您提到，您知道 EBITDA 的同比下降部分是由於供應商結算供應的不重複以及退出 TSA 時獨立成本的增加，所以。

So those are more so those seem more one off in nature. I was just curious, when would you expect those headwinds to subside and also is the supplier settlement something that you could maybe come back to and become a tailwind, or is that really more one off?

因此，這些在本質上看起來更像是一次性的。我只是好奇，您認為這些不利因素何時會消退？此外，供應商結算是否會成為您未來可能遇到的順風因素，還是說這只是一次性事件？

No, that was a, it was actually it was a headwind for us in 2023, and we settled that agreement with that supplier and got some retro recovery, which is, which then hit our Q1 of 2024.

不，那實際上是 2023 年我們的一個逆風，我們與該供應商達成了協議，並獲得了一些回升，這對我們 2024 年第一季產生了影響。

Again, as I try to, I remind a lot of folks is the year over year is there's always going to be some noise in it. I try to look at more of our operating performance, and I think the units from an operating segment performance standpoint performed pretty well, our fuel systems was sub double digit, which is kind of our threshold, but again that was a little bit due to tariffs.

再次，當我嘗試這樣做時，我提醒很多人，年復一年，其中總是會有一些噪音。我嘗試更專注於我們的營運業績，我認為從營運部門業績的角度來看，各部門的業績表現相當不錯，我們的燃料系統表現低於兩位數，這有點像我們的門檻，但這又有點歸因於關稅。

Without that they're right close to double digits, and our aftermarket had really strong performance at over 16%. And even with a few million of tariff impact and so from a segment perspective, I think they continue to perform really well, and again I'm also not going to get overly concerned from one quarter because we're always going to have some noise of whether aftermarkets and volumes get pushed out or pulled in, same thing with timing of shutdowns and adjustments in the market based on the quarter end and so.

如果沒有這些，他們的成長率就接近兩位數，而且我們的售後市場表現非常強勁，成長率超過 16%。即使受到數百萬的關稅影響，從細分市場的角度來看，我認為它們仍然表現良好，而且我也不會過分擔心某個季度，因為我們總是會聽到一些關於售後市場和銷量是否被推遲或被拉進的聲音，根據季度末的市場停工時間和調整情況也是如此。

As you've seen over the last few years, we can have some decent swings, plus or minus a couple 100 basis points of margin for the segments, but then over the full year it still kind of balances out where we expect it to be and so we're still, confident in in the ability of our business to continue to deliver strong results on a full year basis.

正如您在過去幾年中所看到的，我們的利潤率可能會有一些波動，各個部門的利潤率可能會上下浮動幾百個基點，但從全年來看，它仍然會達到我們預期的平衡，因此我們仍然對我們的業務能力充滿信心，相信我們能夠在全年繼續取得強勁的業績。

Fair enough. That's a really good call. And then just maybe just to follow up on it, the TSAs, is that going to be, do you expect that to kind of continue to be a head when the next couple quarters? Could you just maybe remind us of when you that the timeline of when you expect to get out of all those?

很公平。這確實是一個非常好的決定。然後也許只是為了跟進一下，TSA 是否會成為，您是否預計它會在接下來的幾個季度繼續成為焦點？您能否提醒我們一下您預計何時擺脫所有這些困境？

Well, we're we're. Out of just so we're clear, we're out of all TSAs as of kind of Q2 of last year. What was mentioned was when we compared to Q1 of last year, the CMA and the TSAs were still partially in place in Q1 of last year.

嗯，我們是的。為了清楚起見，截至去年第二季度，我們已經沒有 TSA 了。所提到的是，當我們與去年第一季進行比較時，CMA 和 TSA 在去年第一季仍然部分到位。

So now they're, we're fully out of all the CMAs, we're out of all the TSAs. And so it's just more from a comparison standpoint when we look back to 24, so I think there was. 16, 17 million of contract manufacturing that we had in our revenues in Q1 of 2024. That's not in this number, and that's why the revenue reduction is probably more, from a net perspective it was, over 7%, but when we take out CMA it was, closer to 4%.

所以現在，我們已經完全擺脫了所有的 CMA，也擺脫了所有的 TSA。因此，當我們回顧 24 時，這只是從比較的角度來看的，所以我認為我們在 2024 年第一季的收入中有 1600 萬到 1700 萬美元來自合約製造。這個數字不包括這個，這就是為什麼收入減少可能更多，從淨額角度來看，它超過 7%，但是當我們取出 CMA 時，它接近 4%。

And so those were kind of low margin, no margin. I think the most of that is it it continues to go down next quarter, and I think it was basically completely out or only a million in Q3 of 2024. So it's kind of phasing out and so really from a year over year perspective, I think once we're to Q3, there's really pretty much all the noise from 2024 TSAs and CMAs are out. Yeah, and on the other.

所以這些都是低利潤，甚至沒有利潤。我認為最大的原因是下個季度它會繼續下降，我認為到 2024 年第三季它基本上會完全消失，或者只有 100 萬。所以這是一種逐步淘汰的過程，所以從逐年的角度來看，我認為一旦我們進入第三季度，2024 年 TSA 和 CMA 的所有噪音基本上都會消失。是的，另一方面。

Let me clarify one thing on the corporate cost and the TSA. These are all gone. In fact, we were doing some reverse TSAs for Borg. That is all out as of now. So in terms of the corporate cost, they are running higher, some of you have to remember that we do project those based on what our units are projecting in terms of their.

讓我澄清一下有關公司成本和 TSA 的事情。這些都沒了。事實上，我們正在為 Borg 做一些反向 TSA。目前一切都已塵埃落定。因此，就企業成本而言，它們正在上升，你們中的一些人必須記住，我們是根據我們的單位對他們的預測來預測這些成本的。

Activity and performance and that we're on E economic value added and the units are really pushing hard to achieve their numbers, right now their volumes are good, but they're also looking at their working capital and everything else and they're fighting hard to make sure they get keep the EV in line so and they're doing a good job but we project based on that so it may look elevated now if if volumes come down, obviously.

活動和績效，以及我們關注的 E 經濟增加價值，各單位都在努力實現他們的數字，現在他們的交易量很好，但他們也在關注他們的營運資本和其他一切，他們正在努力確保他們保持企業價值在線，所以他們做得很好，但我們基於此進行預測，所以如果交易量下降，現在它可能會看起來很高，顯然。

Depending on how we do with EV, there's ways to achieve your numbers even within a falling volume, but it's a lot harder, but taking out expenses and making sure you're working capital and your balance sheet is in line is what the units are doing.

根據我們如何處理企業價值 (EV)，即使在交易量下降的情況下，也有辦法實現您的目標，但這要困難得多，但扣除費用並確保您的營運資金和資產負債表符合要求是各單位正在做的事情。

That's really helpful calling. Thank you, Chris. Then you called out kind of a number of business swims in the first quarter. I was just hoping to maybe dive double click on that, specifically with the 350 bar GDI in Brazil. Could you maybe discuss the timeline of the initial discussions to eventually winning that deal, and then secondly.

這確實很有幫助。謝謝你，克里斯。然後您提到了第一季的一些商業活動。我只是希望能夠雙擊它，特別是在巴西使用 350 巴 GDI。您能否討論一下從最初討論到最終贏得交易的時間表，然後呢？

You mentioned the increased wallet size with a major US distributor. Could you maybe just give us a sense of how much that wall expanded? Like, did it go from 10 to 14%? Maybe it's not that specific, but was just hoping to hear that type of caller.

您提到了美國一家主要分銷商的錢包容量增加了。您能否讓我們了解一下這堵牆擴張了多少？例如，它是從 10% 上升到 14% 嗎？也許不是那麼具體，但只是希望聽到這種類型的來電者。

Yeah, I mean, typical, first we'll go with the Brazil. We've been doing, you've probably heard a number of different announcements where we're seeing E-100 and alternative fuels in different markets.

是的，我的意思是，通常我們會先去巴西。您可能已經聽過我們發布的許多不同公告，我們在不同的市場上看到了 E-100 和替代燃料。

And again I think we're continuing to invest in Brazil. We see a lot of opportunities and in general, those are programs that we've been working on for over a year, doing development and prototypes and now we're being awarded.

我認為我們會繼續在巴西投資。我們看到了很多機會，總的來說，這些都是我們已經研究了一年多的項目，進行了開發和原型製作，現在我們獲得了獎勵。

They'll be then going into production in the next, two to three years is a typical kind of time frame. And so it's nothing, unique, but we are seeing, more and more interest in alternative fuels around the world, for things that are capable of running to an E1 100 tech technology. And so this is another, key win for us as well, and see, more opportunities moving forward.

它們將在未來兩到三年內投入生產，這是一個典型的時間框架。因此，這並沒有什麼特別之處，但我們看到，世界各地對替代燃料的興趣越來越大，對能夠運行 E1 100 技術的東西的興趣也越來越大。因此，這對我們來說也是另一個關鍵的勝利，並且我們將看到未來更多的機會。

As far as shares wallet, we won't share the exact amount, but I think it's a key area for our growth and how we're continuing to gain market share in that segment. And so you know anything that we're going to put on this list we think is meaningful and is going to help, drive our revenues and allow us to continue to grow organically and so it's just a good example of another key win, for our aftermarket team as they continue to perform well.

就共享錢包而言，我們不會透露具體金額，但我認為這是我們成長的關鍵領域，也是我們如何繼續在該領域獲得市場份額的關鍵領域。因此，您知道，我們列入此清單的任何內容都是有意義的，並且將有助於推動我們的收入，並使我們能夠繼續有機增長，因此，對於我們的售後市場團隊來說，這只是另一個關鍵勝利的一個很好的例子，因為他們繼續表現良好。

Awesome and then just last one for me is I know you had mentioned like in the reaffirm guidance that any tariff impacts are going to get passed through to the customers and I'm sorry if I missed this, but could you maybe just dive a little bit deeper so like what gives you the confidence that you'll that these any any tariff impact will be easily be pushed through the customer just kind of wanted to hear the reasoning through that.

太棒了，然後對我來說最後一個問題是，我知道您在重申指導意見中提到過，任何關稅影響都將轉嫁給客戶，如果我錯過了這一點，我很抱歉，但您能否更深入地探討一下，是什麼讓您有信心這些關稅影響將很容易地轉嫁給客戶，只是想听聽這樣做的理由。

I mean we already have, we've already had been having discussions with them for months and we already have, a number of agreements already in place and so the team has done a really nice job of leveraging our systems to make the audit process a lot more seamless with our with adding it into both our invoices as well as into our into our IT systems in order for us to track it more accurately and.

我的意思是我們已經與他們討論了好幾個月，並且已經達成了許多協議，因此團隊在利用我們的系統方面做得非常好，使審計流程更加無縫，並將其添加到我們的發票和 IT 系統中，以便我們更準確地跟踪它。

And again, the teams are doing a good job working collaborative collaboratively with our customers to try to mitigate, things going forward and so we're not at a position we're just saying throwing our hands up and saying, hey, you've got to pay for it, but it's, yeah, you need to pay for it, but let's work on ways that how can we mitigate it for them and save them the money as best as possible, which is one way is going through the what they call a virtual impedimiento.

再說一次，我們的團隊正在與客戶良好地合作，試圖緩解未來的影響，所以我們不會束手無策地說，嘿，你必須為此付出代價，但是，是的，你需要為此付出代價，但讓我們研究如何為他們減輕影響，盡可能地為他們省錢，其中一種方法就是通過他們所謂的虛擬障礙。

To where we're working with customers to not get double tariffs, having our parts go back to the US to have a tariff and then back to them, and that's why the fact that we're sending, a lot of our revenues go directly to our customers in Mexico is one way that we're really helping them mitigate the impact.

我們正在與客戶合作以避免雙重關稅，讓我們的零件返回美國繳納關稅，然後再退還給他們，這就是為什麼我們將大部分收入直接發送給我們在墨西哥的客戶，這是我們真正幫助他們減輕影響的一種方式。

Fair enough. Thank you for the call and I'll return to the queue

很公平。感謝您的來電，我會回到隊列

David Silver from CL King.

CL King 的 David Silver。

Okay. Yeah, hi, good morning. I'll just preface my remarks by saying I due to some technical difficulties, I joined a little late, so I apologize in advance if I'm making you repeat yourself.

好的。是的，你好，早安。首先我想說，由於一些技術問題，我加入得有點晚，所以如果我讓您重複自己的話，我提前向您道歉。

I did want to follow up, maybe from a different angle on your, reiterated full year guidance. But I think in general, and again I apologize, this is a gross oversimplification, but I think the companies that I speak with understand the direct tariff impacts on their business pretty well, but maybe the uncertainty is, in terms of customer behavior and things like that.

我確實想跟進一下，也許從不同的角度重申全年指導。但我認為總的來說，我再次表示歉意，這是一個過於簡單的說法，但我認為與我交談過的公司非常了解關稅對其業務的直接影響，但不確定性可能在於客戶行為等方面。

And so along those lines, my first question would be, about your the pace or any changes in your collaborative work either on R&D or product development or moving a program, from the drawing board into production. So has customer caution or rethinking or just. Delaying or pausing while tariffs and trade policy issues might shake out. Are you seeing that in your business in any significant degree, or is it pretty much, full speed ahead on the development activities? Thank you.

因此，我的第一個問題是，關於你們在研發或產品開發方面的合作進度或變化，或將程式從繪圖板轉移到生產方面。因此，客戶需要謹慎或重新考慮，或者只是。當關稅和貿易政策問題可能得到解決時，推遲或暫停。您是否在您的業務中看到了這一點，或者說，開發活動是否正在全速推進？謝謝。

It's full speed ahead. We really haven't seen any changes, the RFQs and the new business. Requests and quotes is really kind of continuing as normal again, as we've seen, we've actually seen some increases just from people realizing that electrification is not going to be 100% or at least battery electric vehicles are challenged, and we continue to see, increased interest in extending combustion programs as well as, a few customers talking about, updating engines and new engine programs.

全速前進。我們確實沒有看到任何變化，無論是 RFQ 還是新業務。請求和報價實際上又恢復正常了，正如我們所看到的，我們實際上看到了一些增長，只是因為人們意識到電氣化不會達到 100%，或者至少電池電動汽車面臨挑戰，我們繼續看到，人們對延長燃燒計劃的興趣日益濃厚，一些客戶談到更新發動機和新發動機計劃。

For hybrid and plug-in hybrid applications, so, we really haven't seen any reductions or delays, and continue to see, a strong book of business coming our way.

對於混合動力和插電式混合動力應用，我們確實沒有看到任何減少或延遲，並且繼續看到強勁的業務成長。

Okay, thank you for that. And then I did want to ask, I believe last quarter you mentioned that you had regarding your efforts in aerospace, you had you had mentioned that you had received a key license that you know would be a precursor or a milestone to, moving forward with the customer order.

好的，謝謝你。然後我確實想問一下，我相信上個季度您提到您在航空航天領域的努力，您提到您已經獲得了一項關鍵許可證，您知道這將是推進客戶訂單的先兆或里程碑。

I was just wondering about an update, but do you think that the movement towards qualifications or licenses as the case may be, does that Indicate, let's say over the medium term that there will be incremental aerospace business or key business and other newer areas for the company.

我只是想知道最新消息，但您是否認為，根據情況而定的資格或許可證的變動，是否表明，從中期來看，公司將有增量航空航天業務或關鍵業務和其他新領域。

Yeah, absolutely, and again that was actually our quality certification that's ongoing this month, and so we're still making great progress there, and so for us it's starting to pick up even more and so we're actually been engaging and had, a number of additional customers coming and visiting us and evaluating our capabilities and the reception has been really good and so we're expecting to continue to invest in that area and see continued opportunities there.

是的，絕對的，這實際上是我們本月正在進行的品質認證，因此我們在該領域仍取得了很大進展，因此對我們來說，它開始變得更加活躍，因此我們實際上一直在參與，並且有許多其他客戶來訪問我們並評估我們的能力，而且接待效果非常好，因此我們希望繼續在該領域投資並在那裡看到持續的機會。

All right, then last one from me, but I believe last year in terms of new product, new products coming to market, I think the number was 3,600 SKUs or in that range.

好的，這是我的最後一個問題，但我相信去年就新產品、新產品上市而言，我認為數量是 3,600 個 SKU 或在這個範圍內。

I just wanted to circle back on that, but in your plans for, this year, how does, the new product, the commercialization rate kind of look and. Has anything changed in that regard, let's say from the 1st of the year till today. Thank you.

我只是想回到這個問題，但在你今年的計劃中，新產品的商業化率看起來怎麼樣？從今年 1 月到今天，在這方面有什麼改變嗎？謝謝。

No, I think we continue to expect to add, a couple 1,000-plus, SKUs a year, both replacing. As some come off as we then add new programs and so that's a key area again for us to continue to drive market share growth is to ensure that we continue to quickly add those new product lines as they become available. So that's a continued focus for us. We've got a dedicated team that's really all they work on, every single year. So we expect to continue, in that couple 1,000-plus units of SKUs being added a year.

不，我認為我們預計每年還會增加數千多個 SKU，用於替代現有產品。隨著我們添加新程序，一些產品會出現，因此這再次成為我們繼續推動市場份額增長的關鍵領域，即確保我們在新的產品線推出時繼續快速添加它們。因此這是我們持續關注的重點。我們擁有一支敬業的團隊，他們每年都致力於此。因此，我們預計每年將增加 1,000 多個 SKU。

Okay, great. I appreciate the color. Thank you.

好的，太好了。我很欣賞這個顏色。謝謝。

Your next question comes from the line of Federico Morandi with Bank of America. Please go ahead.

您的下一個問題來自美國銀行的 Federico Morandi。請繼續。

Good morning, everyone. One quick question on the commercial vehicle environment. So, from my understanding, the export from, I mean the import from China is coming down significantly.

大家早安。關於商用車環境的一個簡單的問題。因此，據我了解，來自中國的出口，也就是進口，正在大幅下降。

And I guess that because of the impact of the tariffs how their volume for some of your, some of the commercial truck customers is Expected to come down and on the top of that earlier this week, the administration has vented the possibility of an investigation for A heavy duty trucks which may result in tariffs.

我猜測，由於關稅的影響，部分商用卡車客戶的銷量預計會下降，除此之外，本週早些時候，政府還表示可能會對重型卡車進行調查，這可能會導致徵收關稅。

I know that it's still very a. Uncertain, but did you have any conversation with some of your customers? What's the sentiment there?

我知道這仍然很a。不確定，但是你和你的一些客戶進行過交談嗎？那裡的情緒是怎麼樣的？

Yeah, I mean, again. The bulk of their sentiment is CV volumes for primarily in North America are not going to have that pre-buy effect, which is why we've kind of adjusted our numbers or expectations as well. Regarding China, we don't export anything from China from a CV perspective into the North American market and so we're not concerned with that, as Chris mentioned, our CV business in China is still, stable.

是的，我再說一次。他們的主要觀點是，主要在北美的商用車銷售不會產生預先購買的效果，這也是我們調整數字或預期的原因。關於中國，從 CV 的角度來看，我們不會從中國向北美市場出口任何東西，因此我們並不擔心這一點，正如克里斯所提到的，我們在中國的 CV 業務仍然穩定。

And so we'll continue to kind of keep a monitor on the CV side of things, primarily, in North America, but, at least at this point other than, not seeing a pre-buy in the second half, we haven't. See any significant changes in their expectations.

因此，我們將繼續關注 CV 方面的情況，主要是在北美，但至少目前為止，除了下半年沒有看到預購之外，我們還沒有。觀察他們的期望是否有任何重大變化。

We had a TV was already kind of, especially in North America and Europe, was soft the second half of last year. We're continuing to see that softness in the first half of this year. We think it'll pick up a little bit in the second half, but it's not going to be to the level that we expected before. And so we're seeing year over year being relatively flat, plus or minus.

我們的電視市場已經比較疲軟，特別是在北美和歐洲，去年下半年表現疲軟。今年上半年我們繼續看到這種疲軟態勢。我們認為下半年會略有回升，但不會達到我們之前預期的水平。因此，我們看到年比情況相對平穩，有增有減。

And do you have any thoughts on the potential tariffs for heavy duty trucks?

您對重型卡車的潛在關稅有何看法？

It's anyone's guess at this point. I mean, I think with truck manufacturing, we still see a lot of that is in the US. There's not a tremendous amount of engine production either for those commercial vehicle engines in Mexico. We see them predominantly in the US as well.

目前，誰也說不準。我的意思是，我認為就卡車製造業而言，我們仍然看到很多卡車在美國。墨西哥的商用車引擎產量也不大。我們在美國也主要看到它們。

So we'll continue to monitor it, and, but it's anyone's guess on what will or will not happen.

因此我們會繼續監控，但至於會發生什麼或不會發生什麼，誰也說不準。

Thank you. And one last is on your free cash flow, which, yes, it's expected to be positive, but given the high level of uncertainty, how should we think about the return of capital to shareholders more specifically, what should we expect for share buybacks?

謝謝。最後一個是關於你們的自由現金流，是的，預計它會是正數，但考慮到高度的不確定性，我們應該如何看待對股東的資本回報，更具體地說，我們應該對股票回購抱有什麼樣的期望？

Yeah, I mean again as we tell a lot of folks, we'll look at it every single quarter and look at the M&A pipeline, look at our share price and look at, our cash flow forecasts and kind of where we are, and so we'll do that each quarter, and then make a, make an assessment as a reminder for everybody, we do have, one limitation is the tax manage agreement that should be wrapping up on July 3rd that limits us to.

是的，我的意思是，正如我們告訴很多人的那樣，我們每個季度都會查看它，查看併購渠道，查看我們的股價，查看我們的現金流預測以及我們所處的位置，所以我們每個季度都會這樣做，然後進行評估，提醒大家，我們確實有一個限制，那就是應該在 7 月 3 日結束的稅收管理協議，這限制了我們。

Maximum repurchasing upwards of 20% of our shares, and so we're getting pretty close to that limit. So that would be the only kind of limiting factor here in Q2.

我們最多可以回購 20% 以上的股份，因此我們已經非常接近這個限額了。所以這將是第二季唯一的限制因素。

But again, as we say, we don't give a specific number, but hopefully our history kind of shows that we're good stewards of capital and looking to maximize shareholder value.

但正如我們所說，我們不會給出具體的數字，但希望我們的歷史能表明我們是優秀的資本管理者，並致力於實現股東價值最大化。

Thank you, guys.

謝謝你們。

Thank you. And that concludes our question-and-answer session, and I will now turn the conference back over to Brady Erickson for closing comments.

謝謝。我們的問答環節到此結束，現在我將會議交還給布雷迪·埃里克森進行總結發言。

Great, thank you, everybody. I really appreciate it. It's obviously a challenging time, but I think in general, our teams are working very closely with our customers and our suppliers, and are doing the right things and we'll continue to execute as an organization, and think our long term strategies are still in place.

太好了，謝謝大家。我真的很感激。這顯然是一個充滿挑戰的時期，但我認為總的來說，我們的團隊正在與我們的客戶和供應商密切合作，做正確的事情，我們將繼續作為一個組織執行，並認為我們的長期策略仍然有效。

And are continuing to win new business and look for opportunities for further growth. So really appreciate your support. We'll talk to you soon. Thank you. Have a good day.

並繼續贏得新業務並尋找進一步成長的機會。非常感謝您的支持。我們很快會和你聯絡。謝謝。祝你有美好的一天。

Ladies and gentlemen, this does conclude today's conference call. Thank you for your participation and you may now disconnect.

女士們、先生們，今天的電話會議到此結束。感謝您的參與，您現在可以斷開連接。