濱特爾 (PNR) 2023 Q2 法說會逐字稿

Good morning, and welcome to the Pentair Second Quarter 2023 Earnings Conference Call. (Operator Instructions) Please note that this event is being recorded today.

早上好，歡迎參加濱特爾 2023 年第二季度收益電話會議。 （操作員說明）請注意，今天正在錄製此事件。

I would now like to turn the conference over to Shelly Hubbard, 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雪莉·哈伯德 (Shelly Hubbard)。請繼續。

Thank you, Joe, and welcome to Pentair's Second Quarter 2023 Earnings Conference Call. On the call with me are John Stauch, our President and Chief Executive Officer; and Bob Fishman, our Chief Financial Officer. On today's call, we will provide details on our second quarter's performance as outlined in this morning's press release.

謝謝喬，歡迎參加濱特爾 2023 年第二季度收益電話會議。與我通話的有我們的總裁兼首席執行官 John Stauch；和我們的首席財務官鮑勃·菲什曼 (Bob Fishman)。在今天的電話會議上，我們將提供今天上午新聞稿中概述的第二季度業績的詳細信息。

On the Pentair Investor Relations website, you can find our earnings release and slide deck which is intended to supplement our prepared remarks during today's call and provide a reconciliation of differences between GAAP and non-GAAP financial measures that we will reference. The non-GAAP financial measures provided should not be considered as a substitute for or superior to the measures of financial performance prepared in accordance with GAAP. They are included as additional clarifying items to aid investors in further understanding the company's performance in addition to the impact these items and events have on the financial results.

在濱特爾投資者關係網站上，您可以找到我們的收益發布和幻燈片，旨在補充我們在今天電話會議期間準備好的言論，並提供我們將參考的 GAAP 和非 GAAP 財務指標之間差異的協調表。所提供的非公認會計原則財務指標不應被視為替代或優於根據公認會計原則編制的財務業績指標。它們作為額外的澄清項目包括在內，以幫助投資者進一步了解公司的業績以及這些項目和事件對財務業績的影響。

Before we begin, let remind you that during our presentation today, we will make forward-looking statements, which are predictions, projections or other statements about future events. Listeners are cautioned that these statements are subject to certain risks and uncertainties many of which are difficult to predict and generally beyond the control of Pentair. These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to carefully review the risk factors in our most recent Form 10-Q and Form 10-K. Following our prepared remarks, we will open up the call for questions. (Operator Instructions)

在開始之前，請提醒您，在今天的演示中，我們將做出前瞻性陳述，即對未來事件的預測、預測或其他陳述。請聽眾注意，這些聲明存在一定的風險和不確定性，其中許多風險和不確定性難以預測，並且通常超出濱特爾的控制範圍。這些風險和不確定性可能導致實際結果與我們當前的預期存在重大差異。我們建議聽眾仔細查看我們最新的表格 10-Q 和表格 10-K 中的風險因素。在我們準備好的發言之後，我們將開始提問。 （操作員說明）

Before I hand it over to John, I wanted to highlight Slides 4 through 7 in our earnings slide deck that include our strategic framework, Pentair at a Glance, a Pentair overview and our newest slide illustrating our ESG highlights and progress. These 4 slides provide a good snapshot of who Pentair is, especially for those new to our company.

在將其交給 John 之前，我想重點介紹我們的收益幻燈片中的幻燈片 4 至 7，其中包括我們的戰略框架、Pentair 概覽、Pentair 概述以及展示 ESG 亮點和進展的最新幻燈片。這 4 張幻燈片很好地介紹了 Pentair 的概況，特別是對於剛加入我們公司的人來說。

Our strategic framework states our purpose, mission, vision and values that drive our performance as a smart, sustainable water solutions company. Pentair at a Glance on Slide 5 provides a great snapshot of our company, our performance, our installed base and our 47-year track record of annual dividend increases, which places us in a small group of companies. The Pentair overview on Slide 6 provides our historical sales and ROS performance on a consolidated level and by segment. Lastly, our ESG highlights and progress shown on Slide 7 are a testament to the important work our teams do to integrate sustainability into our operations, product innovation and long-term strategy. We are very proud of our achievements to date, especially considering the early stages of program, which began just about 3 years ago.

我們的戰略框架闡述了我們的宗旨、使命、願景和價值觀，推動我們成為一家智能、可持續的水解決方案公司。幻燈片 5 上的 Pentair 一覽提供了我們公司、我們的業績、我們的安裝基礎以及我們 47 年年度股息增長記錄的精彩快照，這使我們躋身於一小部分公司之列。幻燈片 6 上的 Pentair 概述提供了我們在綜合層面和按細分市場的歷史銷售和 ROS 績效。最後，幻燈片 7 中顯示的 ESG 亮點和進展證明了我們的團隊在將可持續發展融入我們的運營、產品創新和長期戰略方面所做的重要工作。我們對迄今為止所取得的成就感到非常自豪，特別是考慮到該計劃僅在大約三年前開始的早期階段。

I will now turn the call over to John.

我現在將把電話轉給約翰。

Thank you, Shelly, and good morning, everyone. Let's begin with our record Q2 results and the executive summary on Slide 8. In Q2, we achieved record sales, segment income, return on sales, EPS and free cash flow following the separation of nVent from Pentair in 2018. Specifically in Q2, sales increased 2% to nearly $1.1 billion, Segment income increased 14% to $234 million. ROS expanded by 230 basis points to 21.6%, driven by margin expansion across all 3 segments. Adjusted EPS rose 1% to $1.03, and free cash flow was $433 million. With another strong quarter of financial results, we are raising our 2023 adjusted EPS range to $3.65 to $3.75, which increases the midpoint of our range to $3.70.

謝謝你，雪莉，大家早上好。讓我們從創紀錄的第二季度業績和幻燈片 8 上的執行摘要開始。在 2018 年 nVent 從 Pentair 分拆後，我們在第二季度實現了創紀錄的銷售額、部門收入、銷售回報率、每股收益和自由現金流。具體而言，在第二季度，銷售額增長 2% 至近 11 億美元，部門收入增長 14% 至 2.34 億美元。在所有 3 個細分市場的利潤擴張的推動下，ROS 增長了 230 個基點，達到 21.6%。調整後每股收益增長 1%，達到 1.03 美元，自由現金流為 4.33 億美元。隨著又一個強勁的季度財務業績，我們將 2023 年調整後每股收益範圍提高至 3.65 美元至 3.75 美元，這將範圍的中點提高至 3.70 美元。

We also continue to strengthen our balance sheet and reduced our net debt leverage ratio to 2.2x EBITDA at quarter end, down from 2.6x in Q1. We believe our record second quarter performance demonstrates the power of our global diversified water portfolio and strong execution across all 3 segments: IFT, Water Solutions and Pool. Our strategy to help the world sustainably move, improve and enjoy water, life's most essential resource is proving its resilience.

我們還繼續強化資產負債表，並將淨債務槓桿率從第一季度的 2.6 倍降至季度末的 EBITDA 2.2 倍。我們相信，我們第二季度創紀錄的業績證明了我們全球多元化水務產品組合的力量以及所有 3 個細分市場的強大執行力：IFT、水務解決方案和泳池。我們幫助世界可持續地移動、改善和享受水這一生命最重要資源的戰略正在證明其韌性。

For example, like last quarter, sales growth in our IFT and Water Solutions segments more than offset the expected sales volume declines in Pool year-over-year. Margin expanded across all 3 segments, driven primarily by price, cost actions to rightsize our direct labor and pool, the elimination of 2022 manufacturing and supply chain inefficiencies and continued progress on our transformation initiatives that are beginning to read out.

例如，與上季度一樣，我們的 IFT 和水解決方案部門的銷售額增長遠遠抵消了 Pool 部門的預期銷量同比下降。所有 3 個細分市場的利潤率均有所擴大，這主要是由價格、調整我們直接勞動力和人才庫的成本行動、消除 2022 年製造和供應鏈效率低下的問題以及我們開始實施的轉型計劃的持續進展推動的。

Lastly, I want to thank our employees across the globe for their hard work, dedication and contribution to delivering another strong quarter for customers and shareholders.

最後，我要感謝我們全球各地的員工的辛勤工作、奉獻精神和貢獻，為客戶和股東帶來了又一個強勁的季度。

Let's move on to Slide 9, titled Q2 segment highlights. Within IFT, we achieved record sales, driven by double-digit growth across our commercial and industrial businesses. Commercial and infrastructure flow delivered strong sales growth across all categories, primarily due to our strong backlog, aftermarket and replacement sales in our pump portfolios, carryover pricing actions from 2022 and stabilization in the supply chain.

讓我們繼續看幻燈片 9，標題為第二季度細分亮點。在 IFT 內部，在商業和工業業務兩位數增長的推動下，我們實現了創紀錄的銷售額。商業和基礎設施流量在所有類別中實現了強勁的銷售增長，這主要是由於我們泵產品組合中強勁的積壓、售後和替換銷售、2022 年的結轉定價行動以及供應鏈的穩定。

Industrial Solutions also delivered strong sales growth, driven by global key account expansion, new business partnerships and aftermarket and replacement sales in our components and membranes portfolios. Record margins in Q2 were primarily driven by price and transformation. In addition to implementing our transformation initiatives in IFT, we have also focused on capturing the right projects with improved offerings to drive margin expansion. In Water Solutions, our commercial offerings drove very strong sales growth and margin in Q2, which benefited in part from the continued recovery of foodservice and hospitality venues post the pandemic and a shift in consumer behavior from products to services. In fact, in 2023, the number of locations of the top 500 chain restaurants in the U.S. now exceeds the 2019 benchmark according to the Technomic Top 500 chain restaurant 2023 report.

在全球大客戶擴張、新業務合作夥伴關係以及我們的組件和膜產品組合的售後和替換銷售的推動下，工業解決方案也實現了強勁的銷售增長。第二季度創紀錄的利潤率主要是由價格和轉型推動的。除了在 IFT 實施轉型舉措外，我們還專注於抓住合適的項目並改進產品，以推動利潤率擴張。在水解決方案方面，我們的商業產品在第二季度推動了非常強勁的銷售增長和利潤率，這在一定程度上得益於大流行後餐飲服務和酒店場所的持續復甦以及消費者行為從產品到服務的轉變。事實上，根據Technomic 2023年連鎖餐廳500強報告，到2023年，美國500強連鎖餐廳的門店數量現已超過2019年的基準。

We also saw strength in commercial filtration sales in North America. Our Manitowoc Ice acquisition continued to outperform our expectations delivering strong sales and margins that were accretive to the Water Solutions segment. Over the last few years, Manitowoc Ice has expanded its sales driven by a focus on its consumer, with a targeted go-to-market strategy, effective management of macro supply chain challenges and reliability in its supply chain to deliver product with better lead times. We are very pleased with the acquisition and how it complements our commercial Water Solutions businesses enabling us to provide end-to-end water solutions for customers from filtration to ice to services.

我們還看到北美商業過濾銷售的強勁勢頭。我們對 Manitowoc Ice 的收購繼續超出了我們的預期，帶來了強勁的銷售和利潤，為水解決方案部門帶來了增長。在過去的幾年裡，Manitowoc Ice 通過以消費者為中心，通過有針對性的上市策略、對宏觀供應鏈挑戰的有效管理以及供應鏈的可靠性來擴大其銷售，從而以更短的交貨時間交付產品。我們對此次收購以及它如何補充我們的商業水解決方案業務感到非常高興，使我們能夠為客戶提供從過濾到冰到服務的端到端水解決方案。

Lastly, we believe that the residential water treatment is nearing the bottom of the cycle, we believe our residential business is stabilizing and lead times have improved. Awareness of PFAS or forever chemical that have been found in drinking water continues to rise. We are proud to say that we have products today for residential consumers that reduced PFAS to current certification levels. And we continue to drive new innovation and invest in R&D to be able to provide more products that are certified to produce PFAS. We believe we have positioned the company well to be a leader in this space.

最後，我們相信住宅水處理已接近週期底部，我們相信我們的住宅業務正在穩定，交貨時間也有所改善。人們對飲用水中發現的 PFAS 或永久化學物質的認識不斷提高。我們很自豪地說，我們今天為住宅消費者提供的產品將 PFAS 降低到了當前的認證水平。我們繼續推動新的創新並投資於研發，以便能夠提供更多經認證可生產 PFAS 的產品。我們相信，我們已經將公司定位為該領域的領導者。

Within Pool, 2023 has been a softer and difficult year as we expected, given the higher than historical demand in 2021 and '22 coupled with supply chain challenges that disrupted our lead times during those periods. Our lead times have returned to approximately 5 days on most of our products. However, the channel continues to work through higher inventory creating a sell-in versus sell-through imbalance for Pentair in 2023. Despite these lower volumes in Q2, we drove significant margin expansion from price, cost actions to rightsize labor to lower volumes, eliminated 2022 sourcing and manufacturing inefficiencies and delivered transformation savings.

在 Pool 中，正如我們預期的那樣，2023 年是更加疲軟和困難的一年，因為 2021 年和 22 年的需求高於歷史水平，加上供應鏈挑戰擾亂了我們在此期間的交貨時間。我們的大多數產品的交貨時間已恢復到大約 5 天。然而，該渠道繼續通過較高的庫存來解決 2023 年 Pentair 的售入與售出不平衡的情況。儘管第二季度銷量較低，但我們通過價格、成本行動、調整勞動力規模以減少銷量，推動了利潤率的顯著擴張，消除了2022 年採購和製造效率低下並實現轉型節省。

We continue to expect Q3 to reflect a bottom in Pool volume for Pentair as we expect higher channel inventories to correct, allowing for sell-in to be more closely aligned with sell-through. We have noted in the past that our typical Pool sales mix reflects 40% from new and remodeled pools and 60% from the aftermarket break-and-fix replacement sales. While the number of new pools this year is lower, than the elevated number of new pools built during the pandemic, the installed base of U.S. pools has continued to grow. Despite the short-term reset in 2023, we believe Pool remains an attractive market.

我們繼續預計第三季度濱特爾的庫存量將觸底，因為我們預計更高的渠道庫存將得到糾正，從而使售入與售出更加緊密地結合起來。我們過去曾指出，我們典型的泳池銷售組合中 40% 來自新泳池和改造泳池，60% 來自售後市場故障更換銷售。儘管今年的新泳池數量低於疫情期間新建泳池的數量，但美國泳池的安裝基數仍在持續增長。儘管 2023 年會出現短期重置，但我們相信 Pool 仍然是一個有吸引力的市場。

Before I turn it over to Bob, let's turn to Slide 10, titled CEO Summary. We delivered another quarter of quality earnings with ROS expansion across all 3 segments. Our IFT and Water Solutions segments more than offset Pool volume declines, and our transformation initiatives are well underway. Our strong first half has resulted in another 2023 guidance increase. And we believe our Pool business is well positioned for return to growth following the channel inventory correction, which we expect to be completed by Q3 quarter end.

在將其交給 Bob 之前，讓我們先看幻燈片 10，標題為 CEO 摘要。隨著 ROS 在所有 3 個細分市場的擴展，我們又實現了一個季度的優質收益。我們的 IFT 和水解決方案部門足以抵消池容量的下降，而且我們的轉型計劃正在順利進行。我們上半年的強勁表現導致 2023 年指引再次上調。我們相信，在渠道庫存調整之後，我們的聯營業務已做好恢復增長的準備，我們預計該調整將在第三季度末完成。

All in, we are building a strong foundation to drive long-term growth and profitability across our diverse water portfolio. We are introducing Q3 guidance and raising the full year adjusted EPS range to $3.65 to $3.75, the midpoint of $3.70 is up $0.05 from prior guidance due to a strong Q2. We have also updated our segment sales expectations to reflect stronger sales in IFT and Water Solutions driven by a strong first half of 2023 and lower expected sales in our Pool segment.

總而言之，我們正在為推動多元化水務產品組合的長期增長和盈利能力奠定堅實的基礎。我們將推出第三季度指引，並將全年調整後每股收益範圍提高至 3.65 美元至 3.75 美元，由於第二季度的強勁表現，3.70 美元的中點比之前的指引上漲了 0.05 美元。我們還更新了細分市場的銷售預期，以反映 2023 年上半年強勁的 IFT 和水解決方案銷售強勁以及泳池細分市場預期銷售額的下降。

We continue to closely monitor macroeconomic developments and remain mindful of an uncertain operating environment. We continue to implement risk mitigation strategies, and we are accelerating transformation funnels as necessary while focusing on investing in the long-term growth of our company. We remain confident in our diversified water business model, long-term strategy and our transformation initiatives, which we expect to continue to drive shareholder returns. We have a long successful track record of generating strong cash flow and being disciplined with capital allocation. We have achieved 47 consecutive years of dividend increases and are targeting high-teens ROIC. We have a strong balance sheet and an enviable 5-year track record in financials.

我們繼續密切關注宏觀經濟發展，並對不確定的經營環境保持警惕。我們繼續實施風險緩解策略，並在必要時加速轉型渠道，同時專注於投資於公司的長期增長。我們對多元化水務業務模式、長期戰略和轉型舉措仍然充滿信心，預計將繼續推動股東回報。我們在產生強勁現金流和嚴格資本配置方面擁有長期成功的記錄。我們已連續 47 年實現股息增長，目標投資回報率達到高兩位數。我們擁有強勁的資產負債表和令人羨慕的 5 年財務業績記錄。

I will now pass the call over to Bob, who will discuss our performance and financial results in more detail. Bob?

我現在將把電話轉給鮑勃，他將更詳細地討論我們的業績和財務業績。鮑勃？

Thank you, John, and good morning, everyone. Let's start on Slide 11, titled Q2 2023 Pentair Performance.

謝謝約翰，大家早上好。讓我們從幻燈片 11 開始，標題為“2023 年第 2 季度濱特爾績效”。

We delivered record second quarter sales of nearly $1.1 billion, up 2% year-over-year. This is compared to a previous sales record in last year's Q2 of $1.06 billion post the separation of nVent from Pentair in 2018. Our IFT and Water Solutions segment continued another quarter of strong sales performance, which more than offset lower Pool volumes.

我們第二季度的銷售額創歷史新高，接近 11 億美元，同比增長 2%。相比之下，去年第二季度 nVent 於 2018 年從 Pentair 分離後創下了 10.6 億美元的銷售記錄。我們的 IFT 和水解決方案部門在另一個季度繼續保持強勁的銷售業績，這足以抵消池銷量的下降。

Sales growth in Q2 included strong price contribution and the Manitowoc Ice acquisition, which closed in July of 2022. The volume decline in Q2 was primarily related to our pool and other residential businesses which was partially offset by strength within Commercial and Industrial. Please note that where I referenced record results, I'm referring to Pentair's performance post the separation of nVent from Pentair in 2018.

第二季度的銷售增長包括強勁的價格貢獻和於 2022 年 7 月完成的 Manitowoc Ice 收購。第二季度的銷量下降主要與我們的泳池和其他住宅業務有關，但部分被商業和工業領域的實力所抵消。請注意，我提到的創紀錄業績是指 2018 年 nVent 從 Pentair 分離後 Pentair 的業績。

Core sales improved 9% in both IFT and Water Solutions with Pool declining 28%, compared to the prior year periods, pool sales increased 19% in Q2 2022 and 49% in Q2 2021. Second quarter segment income increased 14% to a record $234 million and return on sales expanded 230 basis points year-over-year to a record 21.6%, this improvement was driven by price more than offsetting inflation, accretive segment margins from our Manitowoc Ice acquisition, the elimination of 2022 manufacturing and supply chain inefficiencies and productivity benefits from our transformation initiatives.

IFT 和 Water Solutions 的核心銷售額均增長 9%，而 Pool 銷售額與去年同期相比下降 28%，2022 年第二季度的 Pool 銷售額增長 19%，2021 年第二季度增長 49%。第二季度部門收入增長 14%，達到創紀錄的 234 美元百萬美元，銷售回報率同比增長 230 個基點，達到創紀錄的 21.6%，這一改善的推動因素是價格足以抵消通貨膨脹、收購 Manitowoc Ice 帶來的部門利潤增加、消除 2022 年製造和供應鏈效率低下的問題以及生產力受益於我們的轉型舉措。

We delivered record adjusted EPS of $1.03. Net interest expense was $33 million, and our adjusted tax rate was 15% during the quarter with a share count of 166.1 million.

我們實現了創紀錄的調整後每股收益 1.03 美元。本季度淨利息支出為 3300 萬美元，調整後稅率為 15%，股票數量為 1.661 億股。

Please turn to Slide 12 labeled Q2 2023 Industrial & Flow Technologies Performance. Industrial & Flow Technology sales increased 9% and year-over-year, driven by commercial sales growth of 28% and industrial sales growth of 13%, which more than offset a decline in residential sales of 4%. Segment income grew 27% and return on sales expanded 250 basis points to 18.2%, marking the fourth consecutive quarter of equal to or greater than 200 basis points of improvement. The strong margin expansion was a result of price offsetting inflation and continued progress on our transformation initiatives.

請參閱標有“2023 年第 2 季度工業和流程技術績效”的幻燈片 12。在商業銷售增長 28% 和工業銷售增長 13% 的推動下，工業與流程技術銷售額同比增長 9%，抵消了住宅銷售 4% 的下降。部門收入增長 27%，銷售回報率擴大 250 個基點至 18.2%，標誌著連續第四個季度實現等於或超過 200 個基點的改善。利潤率的強勁增長是價格抵消通貨膨脹以及我們轉型舉措持續進展的結果。

Please turn to Slide 13, labeled Q2 2023 Water Solutions performance. In Q2, Water Solutions sales increased 51% to $336 million driven by our Manitowoc Ice acquisition, volume and price. Manitowoc Ice has continued to exceed our expectations. Q2 sales were approximately $135 million, up roughly 30% compared to the prior year period. Segment income grew 130% to $75 million and return on sales expanded 760 basis points to 22.2%, driven primarily by our Manitowoc Ice acquisition as well as efficiencies from our transformation initiatives. Within our residential business, we are seeing North America stabilized. We have also been evaluating our SKU mix and reducing complexity.

請參閱幻燈片 13，標記為“2023 年第 2 季度水解決方案績效”。第二季度，在我們收購 Manitowoc Ice、銷量和價格的推動下，水解決方案銷售額增長了 51%，達到 3.36 億美元。馬尼托瓦克製冰公司繼續超出我們的預期。第二季度銷售額約為 1.35 億美元，比去年同期增長約 30%。部門收入增長 130%，達到 7,500 萬美元，銷售回報率增長 760 個基點，達到 22.2%，這主要得益於我們收購 Manitowoc Ice 以及我們轉型計劃的效率。在我們的住宅業務中，我們看到北美市場趨於穩定。我們還一直在評估我們的 SKU 組合併降低複雜性。

Please turn to Slide 14, labeled Q2 2023 Pool performance. In Q2, Pool sales declined 28% to $334 million. The volume decline of 36 points was primarily due to channel inventory corrections in Q2. This year, a strong Q2 2022 comparison and cooler and wetter than usual U.S. weather. The pricing benefit of 8 points helped partially offset the volume decline. Despite lower Pool sales in Q2 2023, return on sales expanded 190 basis points due to price significantly offsetting inflation, rightsizing direct labor to align with lower volumes, the elimination of 2022 manufacturing and supply chain inefficiencies and benefits from our transformation initiatives.

請參閱幻燈片 14，標記為“2023 年第 2 季度泳池表現”。第二季度，Pool 銷售額下降 28% 至 3.34 億美元。成交量下降36個點主要是由於第二季度渠道庫存調整。今年，與 2022 年第二季度相比，美國天氣比平常涼爽濕潤。 8 個百分點的定價優勢部分抵消了銷量下降的影響。儘管 2023 年第二季度的聯營銷售額較低，但由於價格顯著抵消了通貨膨脹、調整直接勞動力以適應銷量下降、消除了 2022 年製造和供應鏈的低效率以及我們的轉型舉措帶來的好處，銷售回報率仍擴大了 190 個基點。

Please turn to Slide 15, labeled Pentair Pool sell-in versus estimated industry sell-through. This slide provides an illustration of our Pool sale sell-in and the estimated comparison to industry channel sell-through since 2019. Here, you can see the imbalance of sell-in and sell-through beginning in 2020 and continuing to expand in 2021 and 2022 due to record inflation and supply chain disruption. In 2023, we have returned to normal lead times and sell-through is returning to normalized levels. We expect sell-in and sell-through to rebalance by 2024, following approximately $150 million of channel inventory correction in 2023. We expect this 2023 inventory correction to become a tailwind in 2024.

請參閱幻燈片 15，標記為 Pentair Pool 銷售量與估計的行業銷售量。這張幻燈片展示了我們的池銷售銷量以及自 2019 年以來與行業渠道銷量的估計比較。在這裡，您可以看到 2020 年開始的銷量和銷量的不平衡，並在 2021 年繼續擴大， 2022 年，由於創紀錄的通貨膨脹和供應鏈中斷。 2023 年，我們已恢復正常的交貨時間，銷售量也恢復到正常水平。繼 2023 年進行了約 1.5 億美元的渠道庫存調整後，我們預計到 2024 年，銷售和售出將重新平衡。我們預計 2023 年的庫存調整將成為 2024 年的推動力。

Please turn to Slide 16, labeled transformation initiatives. Our transformation initiatives focus on 4 key themes: pricing excellence, strategic sourcing, operations excellence and organizational effectiveness. As we've mentioned in past quarters, we expect strategic pricing actions to benefit the top line of all 3 of our segments. We expect our other 3 transformation initiatives to help improve our overall cost structure. As a result, we are targeting ROS of approximately 23% by the end of fiscal 2025, expanding margins over 400 basis points as compared to fiscal 2022.

請參閱幻燈片 16，標有轉型計劃。我們的轉型計劃重點關注 4 個關鍵主題：卓越定價、戰略採購、卓越運營和組織效率。正如我們在過去幾個季度提到的，我們預計戰略定價行動將使我們所有三個細分市場的收入受益。我們預計其他 3 項轉型舉措將有助於改善我們的整體成本結構。因此，我們的目標是到 2025 財年末，ROS 達到約 23%，與 2022 財年相比，利潤率擴大超過 400 個基點。

Please turn to Slide 17, labeled Transformation runway. As you look at each of the 4 key themes, you can see that the work within these transformation initiatives is in various different stages. For example, in 2023, we are beginning to see early readouts from Wave 1 within pricing, sourcing and operations. We are beginning Wave 2 within each of these 3 themes and expect margin benefits to readout in 2024. You could see how each new wave compounds on the other to drive expected margin expansion year-over-year through 2025 and beyond.

請翻到幻燈片 17，標有“轉型跑道”。當您查看 4 個關鍵主題時，您會發現這些轉型舉措中的工作處於不同的階段。例如，到 2023 年，我們開始看到第一波定價、採購和運營方面的早期數據。我們正在這 3 個主題中的每一個主題中開始第二波浪潮，預計利潤率收益將在 2024 年顯現出來。您可以看到每一波新浪潮如何與另一波浪潮相結合，以推動 2025 年及以後的預期利潤率逐年擴張。

In pricing excellence, the strategic pricing playbook has been developed, which is planned to be rolled out by category within each segment. We have completed internal training and plan to implement these actions over the next few months. In strategic sourcing, the implementation of Wave 1 is underway, with savings currently reading out. We expect to kick off Wave 2 later this summer with readouts beginning in 2024. Incremental to our strategic sourcing waves, we have seen benefit from our rapid renegotiation process that is part of our transformed sourcing excellence work.

在卓越定價方面，制定了戰略定價手冊，計劃在每個細分市場內按類別推出。我們已經完成了內部培訓，併計劃在未來幾個月內實施這些行動。在戰略採購方面，第一波的實施正在進行中，目前已看到節省的費用。我們預計將於今年夏天晚些時候啟動第二波，並從 2024 年開始進行讀數。作為我們戰略採購浪潮的增量，我們已經從我們的快速重新談判流程中受益，這是我們轉型後的卓越採購工作的一部分。

In operations excellence, we have completed the consolidation of 2 facilities while continuing our execution on lean transformation plans across our sites. In organizational effectiveness, we are in the earliest stages with Wave 1 and expect margin benefits to be realized beginning in 2024. Due to the staggered nature of these transformation initiatives, you can see that what we expect Wave 3 to begin to read out post 2025 in operations excellence and organizational effectiveness. Overall, we are excited about the savings. We have begun to realize from the early waves and remain confident that our teams can execute on pricing actions and savings we have identified particularly in sourcing.

在卓越運營方面，我們已經完成了 2 個設施的整合，同時繼續在我們的各個站點執行精益轉型計劃。在組織效率方面，我們正處於第 1 波浪潮的最早階段，預計從 2024 年開始實現利潤率效益。由於這些轉型舉措的交錯性質，您可以看到我們預計第 3 波浪潮將在 2025 年之後開始實現卓越運營和組織效率。總的來說，我們對節省的成本感到興奮。我們已經開始從早期浪潮中認識到這一點，並仍然相信我們的團隊能夠執行我們特別在採購方面確定的定價行動和節省費用。

Please turn to Slide 18, labeled balance sheet and cash flow. With our record free cash flow in Q2 up $433 million, up $144 million from the prior year period and the repayment of debt, we have lowered our pro forma net debt leverage ratio to 2.2x, down from 2.6x in Q1. As a reminder, our second quarter is typically our highest free cash flow quarter. We expect our full year free cash flow to be in line with our historical performance of approximately 100% net income.

請翻到幻燈片 18，標有資產負債表和現金流量。由於我們第二季度的自由現金流創紀錄地增加了 4.33 億美元，比去年同期增加了 1.44 億美元，加上債務償還，我們已將預計淨債務槓桿率從第一季度的 2.6 倍降至 2.2 倍。提醒一下，我們的第二季度通常是我們自由現金流最高的季度。我們預計全年自由現金流將與我們約 100% 淨利潤的歷史業績相符。

Our return on invested capital was 14.9%, which includes debt from the Manitowoc Ice acquisition, but only approximately 4 quarters of Manitowoc EBITDA contribution. Our target ROIC is high teens. In Q2, we entered into interest rate swap and collar agreements in order to hedge our variable rate debt. Our variable to fixed debt is now 48% and 52%, respectively, with an average rate of approximately 5.3%. We have no significant long-term debt maturing for the next 5 years and the majority of our debt is in term loans going out 3 to 5 years. We plan to remain disciplined with our capital and continue to focus on debt reduction amid the higher interest rate environment.

我們的投資資本回報率為 14.9%，其中包括收購 Manitowoc Ice 的債務，但僅佔 Manitowoc EBITDA 貢獻的約 4 個季度。我們的目標投資回報率是十幾歲。在第二季度，我們簽訂了利率掉期和套環協議，以對沖我們的可變利率債務。我們的固定債務變量現在分別為 48% 和 52%，平均比率約為 5.3%。我們沒有在未來 5 年內到期的重大長期債務，我們的大部分債務是期限為 3 至 5 年的定期貸款。我們計劃在高利率環境下保持資本紀律，並繼續專注於削減債務。

Moving to Slide 19, titled Q3 and Full Year 2023 Pentair Outlook. For the full year, we are raising our adjusted EPS guidance to approximately $3.65 to $3.75, increasing the midpoint to $3.70. Also for the full year, we expect sales to be roughly down 2% to flat, which is unchanged from our prior guidance in Q1. Segment income to increase 10% to 12% as compared to up 7% to 10% in prior guidance, with corporate expense of approximately $80 million, net interest expense of roughly $125 million, an adjusted tax rate of approximately 15% and a share count of 165 million to 166 million.

轉到幻燈片 19，標題為第三季度和濱特爾 2023 年全年展望。對於全年，我們將調整後每股收益指引提高至約 3.65 至 3.75 美元，將中點提高至 3.70 美元。同樣，對於全年而言，我們預計銷售額將大致下降 2% 至持平，這與我們之前第一季度的指引持平。部門收入將比之前指引的增長 7% 至 10% 增長 10% 至 12%，公司費用約為 8,000 萬美元，淨利息費用約為 1.25 億美元，調整後稅率約為 15%，股份數量1.65億至1.66億。

Our assumptions on corporate expenses, net interest expense, adjusted tax rate and share count remain unchanged from guidance provided last quarter. For the third quarter, we expect sales to be down approximately 7% versus last year's near record Q3. This is mainly attributable to lower year-over-year Pool sales as we expect the channel inventory correction to be completed by quarter end. We are also introducing adjusted EPS guidance for the third quarter of approximately $0.84 to $0.89. We expect segment income to decrease 1% to 6% with corporate expense of approximately $21 million, net interest expense of roughly $31 million and adjusted tax rate of approximately 15% and a share count of $165 million to $166 million.

我們對公司費用、淨利息費用、調整後稅率和股票數量的假設與上季度提供的指導保持不變。我們預計第三季度的銷售額將比去年第三季度接近創紀錄的水平下降約 7%。這主要是由於聯營銷售額同比下降，因為我們預計渠道庫存修正將在季度末完成。我們還推出了第三季度調整後每股收益指引，約為 0.84 美元至 0.89 美元。我們預計分部收入將下降 1% 至 6%，公司費用約為 2100 萬美元，淨利息費用約為 3100 萬美元，調整後稅率約為 15%，股票數量為 1.65 億美元至 1.66 億美元。

Moving to Slide 20, titled Full Year 2023 guidance at midpoint. At the midpoint, we continue to expect total Pentair sales to be down approximately 1% to approximately $4.1 billion. Due to strong Q2 performance in IFT and Water Solutions we have updated our segment sales assumptions as follows: we now expect IFT sales to be up approximately mid-single digits, up from low single digits; within IFT, we expect residential to be down approximately mid-single digits; and commercial and industrial to be up low double-digits. Water Solutions sales are expected to be up high teens versus mid-teens. Commercial is expected to rise approximately 50%, with residential sales down roughly 10% and the expected Pool sales range remains unchanged at approximately down mid-teens, although we now expect sales to be down at the higher end of this range due to a softer Q2.

轉到幻燈片 20，中間標題為 2023 年全年指導。我們繼續預計濱特爾總銷售額將下降約 1%，至約 41 億美元。由於 IFT 和水解決方案第二季度的強勁表現，我們更新了我們的部門銷售假設如下：我們現在預計 IFT 銷售額將從低個位數增長到約中個位數；在 IFT 內，我們預計住宅價格將下降約中個位數；商業和工業增長兩位數。水解決方案的銷售額預計將增長到十幾歲左右。商業銷售預計將增長約 50%，住宅銷售下降約 10%，預計聯營銷售範圍仍保持在大約 15% 左右不變，儘管我們現在預計由於經濟疲軟，銷售將在該範圍的高端下降。 Q2。

As we have discussed in prior quarters, our Pool sales consist of approximately 40% from new and remodeled pools and 60% from aftermarket. Within our current Pool guidance, we now expect new pools and remodels to be down approximately 25% to 30% versus previous assumptions of down approximately 25% and inventory in aftermarket to be down roughly 20%, unchanged with approximately 2/3 of the decline relating to inventory corrections. We expect price to be up roughly mid-single digits. We expect Pool sales to return to more normalized sell-in, in 2024 after absorbing significant inventory correction headwinds in the current year. Segment income is now expected to increase approximately 11% at the midpoint as compared to 9% previously with ROS expansion of over 200 basis points to 20.9%, up 40 basis points from our Q1 guidance.

正如我們在前幾個季度所討論的，我們的泳池銷售額約 40% 來自新泳池和改造泳池，60% 來自售後市場。在我們當前的泳池指導中，我們現在預計新泳池和改造將下降約 25% 至 30%，而之前的假設為下降約 25%，售後市場庫存將下降約 20%，與降幅約 2/3 持平。與庫存修正有關。我們預計價格將上漲大約中個位數。我們預計，在吸收了今年重大的庫存調整阻力後，2024 年聯營銷售將恢復到更加正常化的銷售狀態。目前，預計分部收入中點將增長約 11%，而之前為 9%，ROS 擴張超過 200 個基點，達到 20.9%，比我們第一季度的指導值高出 40 個基點。

Overall, we are excited about the future. We believe the diversification of our portfolio has proven that we can weather challenges in 1 segment while continuing to grow total Pentair sales and expand margins across all 3 segments, despite significant volume declines in our residential businesses. We are seeing progress in our transformation initiatives, generating strong free cash flow and further strengthening our balance sheet with the repayment of debt.

總的來說，我們對未來感到興奮。我們相信，我們的投資組合多元化已經證明，儘管我們的住宅業務銷量大幅下降，但我們能夠在 1 個細分市場中應對挑戰，同時繼續增長濱特爾總銷售額並擴大所有 3 個細分市場的利潤率。我們看到轉型舉措取得了進展，產生了強勁的自由現金流，並通過償還債務進一步強化了我們的資產負債表。

Before I turn the call over for Q&A, I wanted to highlight why we believe that Pentair is a compelling investment opportunity. Please turn to Slide 21. There are 6 distinguishing characteristics that we believe sets Pentair apart. We are an industry leader with a diversified brand portfolio and a focus on driving innovation across all 3 segments. We have a transformation strategy that is expected to drive operational efficiencies and margin expansion.

在我轉交電話進行問答之前，我想強調為什麼我們相信濱特爾是一個引人注目的投資機會。請參閱幻燈片 21。我們認為 Pentair 有 6 個顯著特徵使其與眾不同。我們是行業領導者，擁有多元化的品牌組合，並專注於推動所有 3 個細分市場的創新。我們制定了轉型戰略，預計將提高運營效率和利潤率擴張。

Our ESG focus is on making life better for people in the planet with our smart, sustainable water solutions. We recently published our 2022 Corporate Responsibility Report, highlighting progress towards our strategic targets. We have favorable secular trends driving end market growth. We have a strong balance sheet and cash flow, which we expect to drive additional value creation and we are a dividend aristocrat with 47 consecutive years of increased dividend.

我們的 ESG 重點是通過我們的智能、可持續水解決方案讓地球上的人們生活得更美好。我們最近發布了 2022 年企業責任報告，強調了我們在實現戰略目標方面取得的進展。我們有有利的長期趨勢推動終端市場的增長。我們擁有強勁的資產負債表和現金流，預計將推動額外價值創造，而且我們是股息貴族，已連續 47 年增加股息。

I'd now like to turn the call over to the operator for Q&A, after which John will have a few closing remarks. Joe, please open the line for questions. Thank you.

我現在想將電話轉給接線員進行問答，然後約翰將發表一些結束語。喬，請打開提問熱線。謝謝。

(Operator Instructions) Our first question here will come from Julian Mitchell with Barclays.

（操作員說明）我們的第一個問題將來自巴克萊銀行的朱利安·米切爾。

My first question, I suppose, was really around -- when we're looking at a couple of the guidance increases in the non-pool divisions, just wanted to try and understand the cadence of sales a little bit better through the back half. If I look at the Water business, for example, it looks like the guide implies a pretty heavy sequential declines in Q3 and 4. I just wanted to make sure I understood that right. And then also within IFT the guides implying year-on-year growth evaporate in the back half. Is that just a function of comps or something changing in the end market sell-through?

我想，我的第一個問題確實是圍繞著——當我們考慮非池部門的一些指導增長時，只是想嘗試更好地理解後半段的銷售節奏。例如，如果我看一下水業務，看起來該指南暗示第三季度和第四季度的連續下降相當嚴重。我只是想確保我理解正確。然後，在 IFT 內部，暗示同比增長的指南也在下半年消失了。這只是比較的函數還是終端市場銷量的變化？

I think we would describe it as more moderating, Julian. I think clearly, our Manitowoc performance from a year-over-year basis, there's a huge acquisition component year-over-year, but there's also the organic growth of nearly 30%, as Bob mentioned in his comments, those are the result of industry demand and our ability to fulfill those industry demand. And eventually, we start to moderate and compare against year-over-year comps that are more normalized. In the IFT side, I think what we're seeing is really strong growth in commercial and industrial, again, backlog related that will again moderate in the back half of the year. Moving to what I would say is more normalized on growth rates that we would expect on a longer-term basis, Julian.

我想我們會把它描述為更加溫和，朱利安。我清楚地認為，我們馬尼托瓦克的業績同比來看，同比有巨大的收購成分，但也有近 30% 的有機增長，正如鮑勃在評論中提到的，這些都是行業需求以及我們滿足這些行業需求的能力。最終，我們開始調整併與更加標準化的同比比較進行比較。在 IFT 方面，我認為我們看到的是商業和工業領域的強勁增長，同樣，與積壓相關的增長將在今年下半年再次放緩。朱利安，我想說的是我們在長期基礎上預期的增長率更加正常化。

Understood. And then just my quick follow-up on the Pool segment. On that point on inventories. So, it's obviously the sort of the weather impact early in the second quarter, which have been very well flagged for months now. Is your point that maybe delayed the requisite inventory depletion early on. But what's happened, say, so far in Q3, that's why you feel confident that the inventory depletion is on track to be finished by the end of September. Maybe just any color on how your conversations with channel partners and what you see on the sell-through, how has that evolved in the last 2 to 3 months?

明白了。然後是我對泳池部分的快速跟進。關於庫存這一點。因此，這顯然是第二季度初天氣的影響，幾個月來已經得到了很好的標記。您的觀點是否可能會提前推遲必要的庫存消耗？但是，比如說，第三季度到目前為止所發生的情況，這就是為什麼您有信心庫存消耗有望在 9 月底完成。也許只是關於您與渠道合作夥伴的對話以及您在銷售中看到的情況的任何顏色，在過去 2 到 3 個月中有何變化？

Yes. I think just on the Q2 numbers for Pool, I mean, it's solely in my opinion, related to more inventory coming out of the channel than we expected. I think the channel has done an amazing job of working and moving and migrating the inventory around branches to where it's needed, and they are aggressively working to eliminate that extra inventory from the channel. I think as we talk to our channel partners for Q3 and Q4, we continue to believe that all of the inventory or the excess inventory will be worked out in Q3, reflecting our current guide, and we would be talking on more normal early buy discussions as we ramp into Q4 as we anticipate the 2024 demand, and coming back to a more normalized seasonal performance. That being said, Pool is, in our opinion, really low in Q3 from our revenue forecast as it deals with that volume decline for us related to that inventory and channel correction.

是的。我認為就池的第二季度數據而言，我的意思是，這僅在我看來與渠道中的庫存量超出我們的預期有關。我認為該渠道在將分支機構周圍的庫存轉移到需要的地方方面做得非常出色，並且他們正在積極努力消除渠道中的額外庫存。我認為，當我們與第三季度和第四季度的渠道合作夥伴交談時，我們仍然相信所有庫存或多餘庫存將在第三季度得到解決，反映了我們當前的指導，並且我們將討論更正常的早期購買討論隨著我們預計 2024 年的需求，我們將進入第四季度，並恢復到更加正常化的季節性表現。話雖這麼說，我們認為，從我們的收入預測來看，第三季度的 Pool 確實很低，因為它處理了與庫存和渠道調整相關的銷量下降。

Our next question here will come from Andy Kaplowitz with Citigroup.

我們的下一個問題將來自花旗集團的安迪·卡普洛維茨。

John and Bob, maybe give us a little more color into the progress on transformation because if you look at the segments, obviously, IFT, for example, 18.2% seems quite a bit ahead of plan. So what has gone right for you guys here over the last couple of quarters? And would you expect that progress to continue?

約翰和鮑勃，也許可以讓我們對轉型的進展有更多的了解，因為如果你看一下各個部分，顯然，例如，IFT，18.2% 似乎比計劃提前了很多。那麼，在過去的幾個季度裡，你們在哪些方面進展順利呢？您預計這種進展會持續下去嗎？

I would say we're very pleased with Wave 1 across the board, particularly pleased within sourcing. As a reminder, Wave 1 consisted mainly of motors and drives, casting, electronics, logistics, packaging and then Wave 2, you can think of that as being metals, resins, purchase finished goods and a component of indirect spend. We've seen a lot of benefit within the transportation area within Wave 1 and 2024 is setting up for benefits in the other components of the Wave 1 spend.

我想說，我們對第一波整體非常滿意，尤其是在採購方面。提醒一下，第一波主要包括電機和驅動器、鑄造、電子、物流、包裝，然後第二波，你可以將其視為金屬、樹脂、購買成品和間接支出的組成部分。我們在第一波支出中的交通領域看到了很多好處，並且 2024 年正在為第一波支出的其他組成部分帶來好處。

One of the areas that we've done a really nice job is capturing deflation, particularly across resins, plastics, motors, metals and castings where our team went in and did an expedited response to what they saw in the global marketplace. We're able to strengthen relationship with suppliers and actually take advantage of pricing that was coming down in the number of different commodity groups. I would say within kind of the ocean space, the expedited air on the air consumption, that's down over 50% from where it was last year. And ocean rates are down some 65%.

我們做得非常好的領域之一是捕捉通貨緊縮，特別是在樹脂、塑料、電機、金屬和鑄件方面，我們的團隊深入其中，對他們在全球市場上看到的情況做出了快速反應。我們能夠加強與供應商的關係，並真正利用不同商品組數量下降的價格。我想說的是，在海洋領域，快速航空的空氣消耗量比去年下降了 50% 以上。海運費下降了約 65%。

The final thing I would say is that we've done a really nice job of rightsizing to the volumes that we expected from a direct labor perspective, and that's all about having headlights into the business and taking the corrective action. And then finally, there were a lot of inefficiencies in 2022. Spot buys, expedites, partial truckloads, partial completion of products where we'd have to push a 90% complete product off the line and wait for a part to come in. We had overtime attrition. We've done a really nice job of addressing those inefficiencies as part of the transformation as well. So across the Board, we're very pleased and I'm very thankful to the team that works on this every day.

我要說的最後一件事是，我們在調整規模方面做得非常好，達到了從直接勞動力角度預期的數量，而這一切都在於關注業務並採取糾正措施。最後，2022 年存在很多效率低下的情況。現貨採購、加急、部分卡車裝載、部分完成產品，我們必須將 90% 完整的產品下線，然後等待零件進來。我們有加班減員。作為轉型的一部分，我們在解決這些低效率問題方面也做得非常出色。因此，總的來說，我們非常高興，也非常感謝每天為此工作的團隊。

Bob, it's good color. And then maybe somewhat related question around pricing and particularly in Pool. I know it's one of your initiatives there, too. But -- maybe you could talk about your ability to hold price given the way the markets are. Have you seen any deterioration? Obviously, your margins were still good, and how would you think about Pool margin moving forward?

鮑勃，顏色不錯。然後可能是一些有關定價的相關問題，特別是在泳池中。我知道這也是你們的倡議之一。但是——也許你可以談談考慮到市場的情況你保持價格的能力。你有看到任何惡化嗎？顯然，您的利潤率仍然不錯，您如何看待未來的池利潤率？

Yes. So I think as we head into 2024, we're certainly pleased with the way prices held up in 2023 in relationship to what Bob said. And I think that's indicative of the way that ROS expansion has unfolded. I think we're going in a more normalized pricing environment now, Andy. And I think that -- that means that we have to rely on those price increases and work hard on the productivity aspects to drive the margin. And I think we're going to see normal and then I think it depends on how these industries fare as to what would be the expected hold rate or the realization rate of those price increases in 2024, and it's way too early to tell.

是的。因此，我認為，當我們進入 2024 年時，我們當然對 2023 年價格與鮑勃所說的保持一致感到滿意。我認為這表明了 ROS 擴展的展開方式。安迪，我認為我們現在正在進入一個更加標準化的定價環境。我認為，這意味著我們必須依靠價格上漲並努力提高生產率來提高利潤率。我認為我們會看到正常情況，然後我認為這取決於這些行業的表現，即 2024 年預期持有率或價格上漲的實現率，現在下結論還為時過早。

And our next question here will come from Bryan Blair with Oppenheimer.

我們的下一個問題將來自布萊恩·布萊爾和奧本海默。

I wanted to ask about transformation, obviously driving pretty strong results already, and you've noted that you're early stage and the respective waves of those initiatives. As we look to your 2025 gross target to level set, what are you baking in for core growth between now and then? And then what level of reinvestment is contemplated? The reason I ask is that just the simple math, if we assume any core growth in kind of moderate realization of the sourcing opportunity that you've identified that seems to drive ROS above the targeted range and then the other levers imply pretty solid offset.

我想問一下轉型，顯然已經取得了相當強勁的成果，您已經註意到您正處於早期階段以及這些舉措的相應浪潮。當我們展望您設定的 2025 年總目標時，您為從現在到那時的核心增長做了哪些準備？那麼考慮的再投資水平是多少？我問的原因是，只是簡單的數學計算，如果我們假設您已經確定的採購機會的適度實現的任何核心增長似乎將 ROS 推至目標範圍之上，那麼其他槓桿意味著相當堅實的抵消。

Yes, I think that's fair, Brian. I think I would talk about, as Bob mentioned, we're really pleased on the early indications of transformation. As a reminder, we're using outside partners to give us benchmark looks at what's possible and working with us to give us breakthrough thinking and putting in establishing core processes to drive this transformation. So we feel like it's going to be consistent and predictable. The one thing I would share with you, though, as you look at our targets is they're also inclusive of investments and we have a lot of energy around investing in our channels, our obsession around customer experiences, improving those customer experiences and investing in innovation. And those are offsets to the transformation benefits that we would expect. And as you can imagine, Pool has been an innovation leader for many years. It's been playing a little bit of defense lately. And we want to put our foot to the pedal there and really drive both product innovation and go-to-market innovation. So expect us to invest back in our businesses.

是的，我認為這是公平的，布萊恩。我想我會說，正如鮑勃提到的，我們對轉型的早期跡象感到非常高興。提醒一下，我們正在利用外部合作夥伴為我們提供基準，看看什麼是可能的，並與我們合作，為我們提供突破性思維，並建立核心流程來推動這一轉型。所以我們覺得它會是一致且可預測的。不過，我要與您分享的一件事是，當您看到我們的目標時，它們也包含投資，我們有大量精力投資我們的渠道，我們對客戶體驗的痴迷，改善這些客戶體驗並投資在創新中。這些抵消了我們預期的轉型效益。正如您可以想像的那樣，Pool 多年來一直是創新領導者。最近，它一直在進行一些防守。我們希望腳踏實地，真正推動產品創新和上市創新。因此，期望我們對我們的業務進行投資。

Understood. That all makes sense. Appreciate the color. I know your attention focused on debt reduction since the Manitowoc Ice closed. But your balance sheet starting in pretty solid shape. You're generating really robust cash flow given your financial position and clearly successful integration of Man Ice, just wondering if your team will get back to bolt-on or tuck-in M&A over the near term?

明白了。這一切都是有道理的。欣賞顏色。我知道自馬尼托瓦克冰廠關閉以來，您的注意力集中在減少債務上。但你的資產負債表一開始就相當穩健。考慮到您的財務狀況以及 Man Ice 明顯成功的整合，您正在產生非常強勁的現金流，只是想知道您的團隊是否會在短期內重新進行補充或整合併購？

I would say that the focus for this year continues to be on debt pay down, where interest rates are. We think that's the wisest use of the capital. And then that creates optionality going into 2024 around share repurchase and M&A.

我想說，今年的焦點仍然是債務償還，即利率。我們認為這是對資本最明智的利用。這將為 2024 年股票回購和併購創造更多選擇。

Our next question here will come from Mike Halloran with Baird.

我們的下一個問題將由 Mike Halloran 和 Baird 提出。

So a couple of commercial questions here. First, on Manitowoc Ice. Can you just give some context to what's going on in the channel right now? I guess a little from an inventory perspective, but more from what are the customers saying from a demand perspective, how do you think about the sustainability of what you're seeing underneath the hood? And then some comments on how Man Ice is performing well to peers would be great.

這裡有幾個商業問題。首先，在馬尼托瓦克冰上。您能否簡單介紹一下頻道中目前正在發生的情況？我從庫存的角度進行了一些猜測，但更多的是從需求的角度來看客戶的說法，您如何看待您在幕後看到的可持續性？然後，關於曼·艾斯（Man Ice）在同行中表現如何的一些評論將會很棒。

Yes. I think if you look back at the 8 years prior to 2019, 7, 8 years, like this has historically been a 5% to 6% steady grower with some years that might be slightly higher, slightly lower based upon how the restaurant and hospitality market unfolds. Clearly, if you take '19 as a starting point to where we expect '23 to finish, think about being high single-digits. What we want to remind people is there's a significant catch-up to the significant downturn that hospitality industry has faced and that's a big part of the start-up and the demand.

是的。我認為，如果你回顧 2019 年之前的 8 年、7 年、8 年，歷史上一直是 5% 到 6% 的穩定增長，有些年份可能會略高、略低，具體取決於餐廳和酒店的表現市場展開。顯然，如果您將 19 年作為我們預計 23 年結束的起點，請考慮高個位數。我們想提醒人們的是，酒店業面臨著嚴重的低迷，但在很大程度上，這是初創企業和需求的重要組成部分。

As I referenced in my note, we're now back slightly above the 2019 restaurant numbers. So I think we're going to see more of the historical trend pattern as we look forward in this business going forward. Our ability this year to grow faster was the share capture that was really based upon -- having gone through the supply chain work that we're doing elsewhere in Pentair, ironically and completely coincidentally, Manitowoc is using the same outsource partner that we're using on the rest of Pentair and started that sourcing initiative 3 to 4 years earlier than us. And so they were able to put the supply chain into place that allow them to be prepared and ready to partner to get these increased demands, and that's been a big benefit to the Manitowoc business. It's also very encouraging for us on what the rest of Pentair can realize as well.

正如我在筆記中提到的，我們現在略高於 2019 年餐廳數量。因此，我認為，當我們展望這一業務的未來時，我們將看到更多的歷史趨勢模式。我們今年實現更快增長的能力是真正基於的份額捕獲——完成了我們在濱特爾其他地方所做的供應鏈工作，具有諷刺意味的是，完全巧合的是，馬尼托瓦克正在使用與我們相同的外包合作夥伴與 Pentair 的其他公司合作，並比我們早 3 到 4 年開始採購計劃。因此，他們能夠將供應鏈落實到位，使他們能夠做好準備並準備合作以滿足這些增加的需求，這對馬尼托瓦克業務來說是一個巨大的好處。濱特爾其他公司也能實現這一目標，這對我們來說也非常令人鼓舞。

Good point. Kind of answer I was going to ask on the commercial question for the second part there and on the outlook side. So let me pivot to the IFT piece. It's nice to see the margins kind of tranche higher in these last couple of quarters. And I was just hoping to get a little bit more context to how you think about what that progression forward looks like for the segment specifically, how much impact the mix is going to have? Clearly, the transformational piece is a core part of that progression. And if there's any moving pieces below the hood that we should think about as you look to the back half of the year there?

好點子。我想就第二部分的商業問題和前景提出這樣的答案。那麼讓我轉向 IFT 部分。很高興看到過去幾個季度的利潤率有所提高。我只是希望獲得更多背景信息，了解您如何看待該細分市場的具體進展，這種組合將產生多大影響？顯然，轉型部分是這一進程的核心部分。當你展望下半年時，我們是否應該考慮一些幕後的變化？

Yes, special call out to our commercial and infrastructure team on just getting to margins in ROS is that, quite frankly, Mike, I didn't think were possible, right? And I think they're doing it while they're growing, which is extremely encouraging.

是的，特別呼籲我們的商業和基礎設施團隊在 ROS 中實現利潤，坦率地說，邁克，我認為這是不可能的，對嗎？我認為他們在成長過程中就這樣做了，這是非常令人鼓舞的。

That being said, I think as we go forward, it's going to be about how we continue to win projects and jobs that have aftermarket and service (inaudible) to them, how we can grow at mid-single digits, while maybe more likely maintaining these margins. Because as you know, when you get these tailwinds in the industry, it's easy to be selective -- it's harder to be selective when the jobs get tougher to find. And I think that's the discipline we're putting into the group.

話雖這麼說，我認為隨著我們前進，這將是關於我們如何繼續贏得擁有售後服務（聽不清）的項目和工作，我們如何以中個位數增長，同時也許更有可能保持這些邊距。因為如您所知，當您在行業中獲得這些順風車時，很容易做出選擇，而當工作變得更難找到時，就更難做出選擇。我認為這就是我們為團隊制定的紀律。

But it's really encouraging to see the progress they made. I think they still see opportunities to expand the ROS. But again, this is an area we want to invest in. And as you know, one of the things that has always talked about is blue water, right? So we're really strong on the fire pump side, and we've been able to find synergies by bringing the clean water side to some of the projects we've worked on, and we've been able to do that at the appropriate margins. So it's really encouraging to see that growth and the margins at the same time.

但看到他們所取得的進步確實令人鼓舞。我認為他們仍然看到了擴展 ROS 的機會。但同樣，這是我們想要投資的領域。正如你所知，人們一直談論的事情之一就是藍色的水，對嗎？因此，我們在消防泵方面確實很強大，並且我們已經能夠通過將清潔水方面引入我們從事的一些項目來找到協同效應，並且我們已經能夠在適當的時候做到這一點邊距。因此，同時看到這種增長和利潤確實令人鼓舞。

Our next question here will come from Brian Lee with Goldman Sachs.

我們的下一個問題將來自高盛的布萊恩·李。

A lot of mine have been covered, but I had a couple of maybe modeling specific ones. I guess on the record ROS, when I look at the full year guide, I know this might be a little bit timing related or -- and maybe a little bit of nitpicking, but it seems like the implied ROS is down here in 4Q. Can you kind of walk us through some of the puts and takes just exiting the year? As you think about driving more expansion into '24 as your comments suggested?

我的很多內容都已被涵蓋，但我有一些可能是建模特定的內容。我想在記錄中的 ROS 中，當我查看全年指南時，我知道這可能有點與時間相關，或者可能有點挑剔，但似乎隱含的 ROS 是在第四季度。您能否向我們介紹一下今年剛剛結束時的一些看跌期權和看跌期權？您是否考慮按照您的評論建議在 24 世紀推動更多擴張？

The guidance that we've given actually has us expanding ROS year-over-year, both in Q3 and even more significantly in Q4. So that is one of our rallying crises to continue to expand ROS year-on-year again, a little bit less in Q3 because of the headwind of the Pool business. But overall, transformation continues to read out in the back half of the year.

我們給出的指導實際上使我們的 ROS 逐年擴大，無論是在第三季度，還是在第四季度，情況更為顯著。因此，這是我們繼續同比擴大 ROS 的危機之一，但由於礦池業務的不利因素，第三季度的 ROS 略有減少。但總體而言，今年下半年轉型仍在繼續。

Okay. Understood. Yes, we'll go back and take a closer look at the model. And then maybe just on Pool. It sounds like you're pretty confident around trends bottoming here, inventory sell-through, sell-in normalization. So I know it's probably too early to tell, but any initial thoughts around what all of that points to the rest of this year kind of goes according to plan and pool. Are we thinking about a reasonable base case back to like mid-single digit volume, maybe low single-digit type pricing tailwinds in '24? Just sort of what's the setup as you think about what the normalization and how quickly it plays out, gets you to in terms of a reasonable base case to get back to normal growth trends in '24, potentially?

好的。明白了。是的，我們會回去仔細看看這個模型。然後也許就在台球上。聽起來你對趨勢觸底、庫存銷售、銷售正常化非常有信心。所以我知道現在下結論可能還為時過早，但任何關於今年剩餘時間的初步想法都會根據計劃和池進行。我們是否正在考慮一個合理的基本情況，回到 24 年中等個位數的銷量，也許是低個位數類型的定價順風？當你思考正常化的內容以及它的實施速度有多快時，你會想到什麼設置可以讓你在合理的基本情況下回到 24 年的正常增長趨勢，有可能嗎？

One of the reasons why we added that extra chart was to try and give some view of the headwinds this year and what could be a potential tailwind for next year. So we did quantify the inventory correction at about $150 million. And so that will not repeat next year. So in itself, that's a $150 million good guide in 2024. We're not giving any view as to what aftermarket might grow, still too early from that perspective. But from an overall pricing perspective, price has been sticky from our perspective and that we do expect price increases as we go into next year.

我們添加額外圖表的原因之一是嘗試對今年的逆風以及明年的潛在順風給出一些看法。因此，我們確實將庫存修正量化為約 1.5 億美元。因此明年不會再出現這種情況。因此，這本身就是 2024 年 1.5 億美元的良好指南。我們沒有對售後市場可能增長的情況給出任何看法，從這個角度來看還為時過早。但從整體定價的角度來看，從我們的角度來看，價格一直很粘，我們確實預計明年價格會上漲。

Our next question here will come from Andrew Krill with Deutsche Bank.

我們的下一個問題將來自德意志銀行的安德魯·克里爾。

I wanted to go back to Water Solutions. Here, the margins were very strong in the second quarter. And historically, they've had a nice sequential step-up going into 3Q. So I know Manitowoc kind of changes the mix a bit. But I mean, do you still expect a meaningful increase sequentially there for the margin?

我想回到水解決方案。第二季度的利潤率非常強勁。從歷史上看，他們在進入第三季度時取得了不錯的連續提升。所以我知道馬尼托瓦克稍微改變了組合。但我的意思是，您仍然預計利潤率會連續大幅增長嗎？

Yes. We -- sequentially, we will be roughly in line, I would say, to maybe slightly down because we just won't drive that amount of volume and necessarily get the leverage that we saw from an Ice perspective. But overall, when we look at the different pieces, the filtration as well as the residential piece within Water Solutions, we continue to see transformation playing a big role. So I would say year-on-year, significant ROS expansion in Q3 for Water Solutions, a little bit of pressure as you go from Q2 to Q3 just because -- to John's earlier point, seasonality that's start to return to more normalized levels.

是的。我想說，我們將大致保持一致，可能會略有下降，因為我們只是不會推動那麼大的交易量，並且必然會獲得我們從 Ice 角度看到的槓桿作用。但總的來說，當我們審視水解決方案中的不同部分、過濾以及住宅部分時，我們繼續看到轉型發揮著重要作用。因此，我想說，水解決方案第三季度的 ROS 同比大幅增長，從第二季度到第三季度會帶來一點壓力，只是因為——按照約翰之前的觀點，季節性開始恢復到更正常化的水平。

Okay. Great. Makes sense. And I guess, to the extent you're willing to comment on weather, it seems like it's normalized so far in July. Any comments you can give on July trends so far for Pool and then maybe just for the broader company as well?

好的。偉大的。說得通。我想，就你願意評論天氣而言，七月到目前為止，天氣似乎已經正常化。您對 Pool 以及更廣泛的公司 7 月趨勢有何評論？

Yes. I hate to bring the weather word into the focus. And as I said earlier, I don't think it played as much into our Q2 Pool softness as the inventory correction did. Weather usually intends to work its way out eventually throughout the period. So I would say right now, we're seeing heat trends that have some positives in certain areas to driving demand. And at the same time, when it gets this hot, you don't necessarily need heaters. So I don't -- I would not bring weather into our forecast at all. I think everything we know today from our weather forecasting has been included in our guide, and we don't expect weather to be a big part of our discussion going forward.

是的。我討厭讓天氣這個詞成為焦點。正如我之前所說，我認為它對我們第二季度資金池疲軟的影響不如庫存調整那麼大。在此期間，天氣通常會最終恢復正常。所以我現在想說的是，我們看到的熱趨勢在某些領域對推動需求有一些積極作用。與此同時，當天氣變得這麼熱時，你不一定需要加熱器。所以我根本不會將天氣納入我們的預測中。我認為我們今天從天氣預報中了解到的所有信息都已包含在我們的指南中，並且我們預計天氣不會成為我們未來討論的重要組成部分。

Our next question here will come from Steve Tusa with JPMorgan.

我們的下一個問題將來自摩根大通的史蒂夫·圖薩。

Not too bad. I'm not going to ask you about the assumptions that underlie your weather forecast. Yes. So just on the kind of phases of this transformation, you mentioned logistics? I mean obviously, the logistics prices in general are down, how do you like disaggregate what you guys are doing versus just like the normal deflationary cycles that are happening in these types of materials?

還不錯。我不會問你天氣預報的假設。是的。那麼，就這種轉變的各個階段而言，您提到了物流嗎？我的意思顯然是，物流價格總體上下降了，您如何將你們正在做的事情與這些類型的材料中發生的正常通貨緊縮週期分開？

From our perspective, and I'm not trying to be flipping here, but even in the deflationary environment, there's work to be done. We need to go back to the suppliers and point out commodity prices that are coming down. So our view is that either through our negotiation process, either through the structured [11 gate] process within Wave 1 and Wave 2. We have to understand the market, first of all, make sure we're asking for price decreases or longer-term price stability and so it's all part -- from our perspective of that strategic sourcing initiative.

從我們的角度來看，我並不是想在這裡翻轉，但即使在通貨緊縮的環境下，仍有工作要做。我們需要回到供應商那裡指出正在下降的商品價格。因此，我們的觀點是，要么通過我們的談判流程，要么通過第一波和第二波中的結構化[11門]流程。我們必須了解市場，首先，確保我們要求降價或更長時間-從我們戰略採購計劃的角度來看，價格穩定是整個過程的一部分。

But Steve, just to add on that, I agree with everything Bob said, and we're happy, but it is a benefit of the deflationary, the work we do to negotiate. But also, we have reduced our carriers by almost 2/3. And we did do a series of route optimizations and choose partners that are best to serve the routes and the lines that we need, and that was a big part of the work that's generating the savings.

但是史蒂夫，補充一點，我同意鮑勃所說的一切，我們很高興，但這是通貨緊縮的好處，我們所做的談判工作。而且，我們還減少了近 2/3 的運營商。我們確實進行了一系列路線優化，並選擇了最適合為我們需要的路線和線路提供服務的合作夥伴，這是產生節省的工作的重要組成部分。

Right. That makes sense. Can you just remind us what the benefit from transformation is for next year? I'm not sure if you mentioned that earlier in the call.

正確的。這就說得通了。您能否提醒我們明年轉型的好處是什麼？我不確定你之前在通話中是否提到過這一點。

We did not.

我們沒有。

Can you just update us on what you expect that to be?

您能否向我們介紹一下您的期望？

What we've said up until now is we'll go from what will be roughly a 21% ROS this year to 23% by 2025. And our view is that roughly linear as we get to that 23%. So -- and transformation plays a big piece of that margin expansion.

到目前為止，我們所說的是，到 2025 年，我們的 ROS 將從今年大約 21% 提高到 23%。我們的觀點是，隨著我們達到 23%，該比例大致呈線性。因此，轉型在利潤率擴張中發揮著重要作用。

What percentage?

百分之幾？

Larger than that increase because we're also putting back investment, Steve. So I think the next wave that we'll start to realize is the significant Wave 1 benefits of the purchasing savings and the direct material that we're doing. And you could assume that, as Bob said in prior comments that, that's a double-digit savings against about 1/3 of the material buy.

比這個增幅還要大，因為我們也在收回投資，史蒂夫。因此，我認為我們將開始意識到的下一波浪潮是我們正在做的購買節省和直接材料的重大好處。您可以假設，正如鮑勃在之前的評論中所說，相對於大約 1/3 的材料購買來說，這是兩位數的節省。

Sorry, one more on all this. Where will that show up in the bridges? Will that show up as -- in all parts of the bridges or productivity? So it won't be part of like inflation. If you if you execute better on some of those purchasing initiatives, maybe that shows up in net inflation? You're saying that the transfer -- all the transformation will be bucketed in that productivity bar?

抱歉，關於這一切，還有一個。它會出現在橋樑的什麼地方？這會在橋樑或生產力的所有部分中顯示出來嗎？所以它不會成為通貨膨脹的一部分。如果您在某些購買計劃上執行得更好，也許這會體現在淨通脹中？你是說轉移——所有的轉變都將被歸入生產力欄？

Price bar and productivity bar, correct.

價格欄和生產力欄，正確。

The price bar as well?

還有價格欄嗎？

Well, price is the transformation work we're doing on the strategic price initiatives, right? So it's a piece of the price contribution and then the productivity of the transformation is a piece of the productivity contribution.

嗯，價格是我們正在對戰略價格舉措進行的轉型工作，對嗎？因此，這是價格貢獻的一部分，然後轉型的生產率也是生產率貢獻的一部分。

Our next question will come from Jeff Hammond with KeyBanc.

我們的下一個問題將來自 KeyBanc 的 Jeff Hammond。

This is David Tarantino on for Jeff. Maybe just to attack the margins a bit different. Margin's been pretty impressive the last couple of quarters. Could you parse out what the price cost tailwinds just kind of from carryover and normal pricing actions and what was kind of the early benefits from the transformation program?

我是大衛·塔倫蒂諾為傑夫配音。也許只是為了以不同的方式攻擊邊緣。過去幾個季度的利潤率相當可觀。您能否分析一下結轉和正常定價行為帶來的價格成本順風是什麼，以及轉型計劃的早期好處是什麼？

Yes. When you look at -- price has read out nicely in the first 2 quarters, that will moderate in the back half and basically land around that mid-single-digit price benefit for the year. We are taking advantage primarily of carryover pricing with that advantage. And just as a reminder, there were many years or at least a couple of years where we were catching up and price versus cost was a headwind. It has been a tailwind over the last few quarters. But think of that as mainly carryover pricing decisions we made last year that benefited the first half.

是的。當你看時，前兩個季度的價格表現良好，下半年價格將放緩，並基本上落在今年中個位數的價格收益附近。我們主要利用結轉定價的優勢。提醒一下，有很多年或至少幾年我們一直在追趕，而價格與成本是一個逆風。這是過去幾個季度的順風車。但這主要是我們去年做出的使上半年受益的結轉定價決策。

Great. And then maybe just a cleanup one on Pool, maybe outside of the destock, how would you describe the sell-through in the channel versus expectations? It seems like trends were maybe a bit softer and then on that kind of -- maybe could you level set us on what you would expect the magnitude of the prebuy, like what's implied in the guide, given we've had an unusual recent couple of years?

偉大的。然後也許只是池上的清理工作，也許在去庫存之外，您如何描述渠道中的銷售量與預期？看起來趨勢可能有點軟，然後在這種情況下——也許你可以讓我們了解你對預購規模的預期，就像指南中暗示的那樣，因為我們最近有一對不尋常的夫婦年？

Yes, I'll take the first one. I think sell-through as a whole this year through the first couple of quarters is slightly behind our original expectations. And I think that is a combination of some of the prebuys that happened in previous periods. It's also probably discretionary items that are being pushed out as consumers are dealing with the rest of their finances. And then as has been mentioned, from the industry. I think some of the finance Pools are slower than they were originally anticipated.

是的，我會選擇第一個。我認為今年前幾個季度的整體銷量略低於我們最初的預期。我認為這是前幾個時期發生的一些預購的組合。當消費者處理其他財務問題時，也可能是非必需品被淘汰。然後正如已經提到的，來自行業。我認為一些資金池的速度比最初預期的要慢。

As we go forward, and you look at early buy, we talk about normalized early buy. And about half of our Q4 shipments fall into those early buy categories. And the rest of the Q4 shipments are generally more standard orders. And we work those programs through the end of Q3 into Q4. And generally, we know what those orders are and wouldn't know what those orders are at the Q3 earnings call.

當我們繼續前進時，當你看到早期購買時，我們會談論標準化的早期購買。我們第四季度出貨量的大約一半屬於早期購買類別。而其餘的Q4出貨量一般都是比較標準的訂單。我們將這些計劃從第三季度末一直持續到第四季度。一般來說，我們知道這些訂單是什麼，但在第三季度的財報電話會議上卻不知道這些訂單是什麼。

Our next question here comes from Damian Karas with UBS.

我們的下一個問題來自瑞銀集團的達米安卡拉斯。

Maybe in the spirit of the summer, a couple of follow-up questions on Pool. That business is obviously operating at a really healthy level of profitability despite the demand pressures you're facing now. Just curious how you're thinking about..

也許本著夏天的精神，有幾個關於台球的後續問題。儘管您現在面臨需求壓力，但該業務顯然正在以非常健康的盈利水平運營。只是好奇你在想什麼..

Your breaking up just a little bit.

你們的分手只是一點點。

I apologize. Could you hear me?

我道歉。你能聽見我？

If you wouldn't mind repeating the question, please?

如果您不介意重複一下這個問題，可以嗎？

Yes, absolutely. So I just wanted to ask you about Pool margins. I mean it's very profitable right now despite the volume pressures, so how are you thinking about what that trajectory should look like next year as the inventory headwinds reverse and you get a demand recovery?

是的，一點沒錯。所以我只是想問你關於池利潤的問題。我的意思是，儘管存在數量壓力，但目前它的利潤非常高，那麼隨著庫存逆風逆轉並且需求復蘇，您如何看待明年的軌跡應該是什麼樣子？

Do we have another question?

我們還有其他問題嗎？

We'll move on to our next question from Nathan Jones with Stifel.

我們將繼續回答 Nathan Jones 和 Stifel 提出的下一個問題。

I will ask one on IFT. Volume has been pretty flat overall for the last couple of quarters. But you've talked about being more selective on projects. I'm wondering if you could talk a little bit about how much the growth is where you want to grow versus maybe how much the declines are where you're not looking to grow?

我會在 IFT 上問一個。過去幾個季度的總體成交量相當平穩。但您談到了對項目更具選擇性。我想知道您是否可以談談您想要增長的地方的增長程度以及您不希望增長的地方的下降程度？

When you think of Flow, Nathan, you got to remind us that we've got a residential business around pumps, and that has been slow and down soft, right? And that's reflecting the residential trends in the Water Solutions as well as Pool. And so when we talk about Flows and overall growth, what we're really seeing is growth in infrastructure, commercial. As a reminder, commercial buildings aren't just office buildings, they also include data centers.

當你想到 Flow 時，Nathan，你必須提醒我們，我們有一個圍繞泵的住宅業務，而且進展緩慢且軟弱，對吧？這反映了水解決方案和游泳池的住宅趨勢。因此，當我們談論流量和整體增長時，我們真正看到的是基礎設施和商業的增長。提醒一下，商業建築不僅僅是辦公樓，還包括數據中心。

They include warehousing. They include any type of infrastructure that would require or need fire pumps as well as water coming into that building and wastewater exiting that building. And so that has been a strategic point of ours, and we want to grow in those spaces. We're strong in those spaces. And so really what you've got is a residential, commercial and infrastructure mix here.

其中包括倉儲。它們包括需要或需要消防泵的任何類型的基礎設施，以及進入該建築物的水和離開該建築物的廢水。因此，這一直是我們的戰略點，我們希望在這些領域發展。我們在這些領域很強大。所以這裡真正擁有的是住宅、商業和基礎設施的組合。

Okay. Maybe then just one more on the Water Solutions business. I think you -- there's basically inventory destocking going on there as well that you had expected to probably end in 2Q. Is that the case in where kind of a bit more back to sell-in matching sell-through in that business?

好的。也許接下來只是關於水解決方案業務的另一件事。我認為，基本上庫存去庫存也在進行，您預計這可能會在第二季度結束。在這種情況下，該業務中的銷售量是否會增加一點？

Yes. We're actually through most of the inventory challenges in the residential Water Solutions side of the business, Nathan. And what we have as a reminder is we exited direct-to-consumer businesses that we had, and we did that in Q4 last year, and so we're working through those year-over-year comps related to those decisions. And so the underlying growth of our core systems -- in our core components business is moderating, but it doesn't yet have inventory challenges or doesn't have inventory challenges.

是的。事實上，我們已經解決了住宅水解決方案業務方面的大部分庫存挑戰，內森。我們要提醒的是，我們退出了我們擁有的直接面向消費者的業務，我們在去年第四季度就這樣做了，因此我們正在研究與這些決定相關的逐年比較。因此，我們的核心系統（核心組件業務）的潛在增長正在放緩，但尚未面臨庫存挑戰或沒有庫存挑戰。

Our next question here will come from Joe Giordano with Cowen.

我們的下一個問題將由喬·佐丹奴和考恩提出。

So yes, we kind of touched on this, but IFT so like more than 100% of the growth is priced right now and the volumes were modestly negative. As you look into the second half, price moderates, like does volume from where we are today, do you expect that as the year progresses to further deteriorate? Or does that start to pick up some of the likely moderation of price?

所以，是的，我們有點觸及到了這一點，但 IFT 認為，超過 100% 的增長現在已經定價，而且銷量略有負值。展望下半年，價格會趨於緩和，就像今天的成交量一樣，您預計隨著今年的進展，價格會進一步惡化嗎？或者這是否會開始導致價格可能有所放緩？

We continue to believe on the Flow side, and remember, IFT is an industrial solutions business as well as Flow. I mean Flow has traditionally, we would think it is a low single-digit to mid-single-digit contributor and we're moderating back to those growth rates as we get to the second half, which we believe is normal. And then what we've got to do is make sure the mix of the business is start to contribute more to the margin expansion side. And we've gotten a lot of productivity and a lot of strategic projects out of C&I. But as a reminder, R&I tends to be the higher margin side of that business. And so we would expect that contribution get more normalized as we go forward.

我們繼續相信 Flow 方面，並記住，IFT 和 Flow 一樣都是工業解決方案業務。我的意思是 Flow 傳統上我們認為它是一個低個位數到中個位數的貢獻者，當我們進入下半年時，我們正在放緩回這些增長率，我們認為這是正常的。然後我們要做的是確保業務組合開始為利潤擴張做出更多貢獻。我們從 C&I 中獲得了大量生產力和戰略項目。但需要提醒的是，研究與創新往往是該業務利潤率較高的一面。因此，我們預計隨著我們的前進，這種貢獻會變得更加正常化。

Meaning volumes like don't necessarily reflect higher in the second half. Is that -- am I reading that right?

這意味著下半年的交易量不一定會更高。我讀得對嗎？

That's correct. Yes.

這是正確的。是的。

Okay. And then you guys -- you commented on Pool that you've done well and like adjusting headcount appropriately to the lower levels here. You have sizable revenue declines and margins up nicely. How do we think about margins as the volume start to come back, like as you need to add headcount? Like is this a good level to build off of, just like 30%, 70% rate? Or could there be kind of like -- for like -- a better way to say, like a lack of incremental margin expansion on revenue growth as that inflects?

好的。然後你們——你們在 Pool 上評論說你們做得很好，並且喜歡將人數適當調整到較低的水平。你的收入大幅下降，而利潤卻大幅上升。當銷量開始回升時，比如需要增加員工數量時，我們如何考慮利潤率？就像 30%、70% 的比率一樣，這是一個很好的水平嗎？或者是否可以有一種更好的方式來表達，例如收入增長缺乏增量利潤擴張？

It's a good basis to build off of. As we grow from here, we begin to get volume leverage on the on the overhead structure of the business. The only thing that would be an add-back is rebasing commissions that would be relative to selling the product throughout the channel. But when you think all that, growth is a really good thing and this is a really good level to model off of. With that, I'd like to provide some closing comments.

這是一個很好的基礎。隨著我們從這裡開始發展，我們開始在業務的管理費用結構上獲得銷量槓桿。唯一會增加的就是重新調整與整個渠道銷售產品相關的佣金。但當你考慮到這一切時，增長確實是一件好事，而且這是一個非常適合建模的水平。在此，我想提供一些結束語。

Thank you to everybody for joining us today. And I wanted to reiterate our earnings call key themes: first, we had solid execution within our diversified portfolio along with price and transformation. These initiatives drove Q2 sales growth with margin expansion across all 3 segments; second, we continue to expect strength in our IFT and Water Solutions segments as well as transformation efficiencies to offset lower Pool volume in 2023; third, we raised our 2023 guidance due to strong Q2 and our confidence in the sustainability of our performance, driven by a diversified portfolio; and fourth, our transformation initiatives are reading out and expected to drive greater benefits beginning in Q4 and beyond as we implement actions towards identified savings. And finally, we expect to continue to deliver value creation beyond this fiscal year. Thank you, everyone. Have a great day.

感謝大家今天加入我們。我想重申我們的財報電話會議的關鍵主題：首先，我們在多元化投資組合以及價格和轉型方面擁有堅實的執行力。這些舉措推動了第二季度銷售增長，所有 3 個細分市場的利潤率均有所擴大；其次，我們繼續預計 IFT 和水解決方案領域的實力以及轉型效率將在 2023 年抵消池容量的下降；第三，由於第二季度的強勁表現以及我們對多元化投資組合推動下業績可持續性的信心，我們上調了 2023 年指引；第四，我們的轉型計劃正在實施，預計將在第四季度及以後開始帶來更大的效益，因為我們將採取行動實現已確定的節約。最後，我們預計本財年之後將繼續創造價值。謝謝大家。祝你有美好的一天。

The conference has now concluded. Thank you very much for attending today's presentation. You may now disconnect your lines.

會議現已結束。非常感謝您參加今天的演講。您現在可以斷開線路。