Regal Rexnord Corp (RRX) 2025 Q1 法說會逐字稿

Good day, and welcome to the Regal Rexnord first quarter earnings call. (Operator Instructions) Please note this event is being recorded. I would now like to turn the conference over to Rob Barry, Vice President of Investor Relations. Please go ahead.

大家好，歡迎參加 Regal Rexnord 第一季財報電話會議。（操作員指示）請注意，此事件正在被記錄。現在我想將會議交給投資者關係副總裁 Rob Barry。請繼續。

Great. Thank you, operator. Good morning, and welcome to Regal Rexnord's First Quarter 2025 Earnings Conference Call. Joining me today are Louis Pinkham, our Chief Executive Officer; and Rob Rehard, our Chief Financial Officer. I'd like to remind you that during today's call, you may hear forward-looking statements related to our future financial results, plans and business operations.

偉大的。謝謝您，接線生。早安，歡迎參加 Regal Rexnord 2025 年第一季財報電話會議。今天與我一起出席的還有我們的執行長 Louis Pinkham；以及我們的財務長 Rob Rehard。我想提醒您，在今天的電話會議中，您可能會聽到與我們未來財務表現、計劃和業務運營相關的前瞻性陳述。

Our actual results may differ materially from those projected or implied due to a variety of factors, which we describe in greater detail in today's press release and in our reports filed with the SEC, which are available on the regalrexnord.com website. Also on this slide, we state that we are presenting certain non-GAAP financial measures that we believe are useful to our investors, and we have included reconciliations between the non-GAAP financial information and the GAAP equivalent in the press release and in the presentation materials. Turning to Slide 3, let me briefly review the agenda for today's call. Louis will lead off with his opening comments and overview of our first quarter performance and a discussion of our business serving the humanoid market. Rob Rehard will then present our first quarter financial results in more detail, review our 2025 guidance and provide an update on tariffs.

由於各種因素，我們的實際結果可能與預測或暗示的結果有重大差異，我們在今天的新聞稿和向美國證券交易委員會提交的報告中對此進行了更詳細的描述，這些報告可在 regalrexnord.com 網站上查閱。此外，在這張投影片上，我們聲明我們正在展示某些我們認為對投資者有用的非 GAAP 財務指標，並且我們在新聞稿和簡報資料中加入了非 GAAP 財務資訊與 GAAP 財務資訊之間的對帳。翻到投影片 3，讓我簡單回顧一下今天電話會議的議程。路易斯將首先發表開場白，概述我們的第一季業績，並討論我們服務於人形機器人市場的業務。隨後，Rob Rehard 將更詳細地介紹我們的第一季財務業績，回顧我們 2025 年的指引並提供關稅更新。

We'll then move to Q&A, after which, Louis will have some closing remarks. And with that, I'll turn the call over to Louis.

然後我們將進入問答環節，之後路易斯將發表一些結束語。說完這些，我會把電話轉給路易斯。

Great. Thanks, Rob, and good morning, everyone. Thanks for joining us to discuss our first quarter results and to get an update on our business. We appreciate your continued interest in Regal Rexnord. Before we dig into the material on this slide, let me share a few high-level thoughts on our first quarter performance and the current environment.

偉大的。謝謝，羅布，大家早安。感謝您加入我們討論第一季度的業績並了解我們的業務最新情況。感謝您對 Regal Rexnord 的持續關注。在深入研究這張投影片上的資料之前，請容許我分享一些關於我們第一季業績和當前環境的高層想法。

We began 2025 feeling cautiously optimistic about our improving growth prospects. We had seen 3 quarters of positive orders growth and we believed, as we still do, that most of our end markets are at or near trough levels of demand and are starting to slowly rebound. This positive momentum continued in the first quarter. We saw further orders growth and all of our segments outperformed the targets we set last quarter. So a very strong start to the year, which we believe provides evidence of healthy underlying momentum in our business.

2025年伊始，我們對不斷改善的成長前景抱持謹慎樂觀的態度。我們已經看到三個季度的訂單增長，我們相信，正如我們仍然相信的那樣，我們的大多數終端市場都處於或接近需求的低谷水平，並開始緩慢反彈。這一積極勢頭在第一季得以延續。我們的訂單進一步成長，所有部門的表現都超出了我們上個季度設定的目標。今年的開局非常強勁，我們相信這證明了我們的業務具有健康的潛在發展勢頭。

This momentum contributed to our decision to reaffirm our earnings guidance for the year. Regarding tariffs. Changes to US trade policy have clearly raised uncertainty on several fronts, in particular regarding the macro outlook. And so during this period, we have been staying close to our customers.

這一勢頭促使我們決定重申今年的獲利預期。關於關稅。美國貿易政策的變化顯然在多個方面引發了不確定性，尤其是宏觀前景。因此，在此期間，我們一直與客戶保持密切聯繫。

And while they broadly acknowledge the heightened uncertainty that tariffs have caused to date, we have seen little evidence of changes to planned spending. Now perhaps it is too early to see material changes, which is why we will be monitoring demand patterns closely and aim to share more on this front if and when conditions materially change. For now, our teams are focused on executing our many growth, synergy and cash flow acceleration plan. We are also hard at work implementing our robust tariff mitigation plan with urgency. Rob will share more on this topic.

儘管他們普遍承認關稅迄今為止造成的不確定性加劇，但我們幾乎沒有看到計劃支出變化的跡象。現在也許還為時過早，無法看到實質的變化，這就是為什麼我們將密切監測需求模式，並在情況發生重大變化時分享更多這方面的資訊。目前，我們的團隊專注於執行我們的許多成長、協同和現金流加速計劃。我們也正在努力緊急實施強而有力的關稅減免計畫。Rob 將就此主題分享更多內容。

But the punchline is that we expect our mitigation plans to fully neutralize current tariff impacts on our 2025 EBITDA and earnings with a goal to be EBITDA margin neutral in the first half of 2026. So before continuing, I want to take a moment to thank our 30,000 Regal Rexnord associates for their hard work and disciplined controllable execution for delivering a really solid start to 2025 above our expectations and for efforts underway to manage tariff impacts and pursue opportunities presented by the disruptions caused by tariffs to take share in the market.

但關鍵在於，我們預計我們的緩解計劃將完全抵消當前關稅對我們 2025 年 EBITDA 和收益的影響，目標是在 2026 年上半年實現 EBITDA 利潤率中立。因此，在繼續之前，我想花點時間感謝我們 30,000 名 Regal Rexnord 員工的辛勤工作和嚴謹可控的執行，為 2025 年帶來了超出我們預期的真正穩固的開局，並感謝他們為管理關稅影響和抓住關稅造成的混亂所帶來的機會以佔領市場份額所做的努力。

Now let me provide some specifics on our first quarter performance, starting with sales. Our sales in the quarter were up 0.7% versus the prior year on an organic basis or 2.3% on a daily organic basis. Strength in Resi HVAC, Aerospace and Energy markets were key contributors along with discrete automation, which invited to grow after seven quarters of decline.

現在讓我提供一些我們第一季業績的具體信息，首先是銷售額。本季我們的銷售額較上年同期有機成長 0.7%，每日有機成長 2.3%。住宅暖通空調、航空航太和能源市場的強勁表現以及離散自動化是主要推動因素，離散自動化在經歷了七個季度的下滑後實現了成長。

Orders in the quarter on a daily basis and excluding currency impacts, were up 3.3% and book-to-bill was 1.07. Notably, orders were up nearly 9% with PES up just over 1%. AMC orders were down 3% but up 2% excluding the data center business where from time to time we can experience order lumpiness. On a 12-month rolling basis, AMC's orders are up nearly 7%. This marks our fourth quarter in a row of positive enterprise-level orders for Regal.

本季每日訂單量（不包括貨幣影響）增加了 3.3%，訂單出貨比為 1.07。值得注意的是，訂單量增加近 9%，而 PES 成長略高於 1%。AMC 的訂單下降了 3%，但如果不包括資料中心業務，訂單則上漲了 2%，因為有時我們會遇到訂單波動的情況。以 12 個月的滾動計算，AMC 的訂單量增加了近 7%。這是我們連續第四個季度為 Regal 獲得積極的企業級訂單。

In April, daily organic orders were down 1.8%, largely reflecting aerospace project timing in AMC and anticipated resi HVAC order rebalancing and PES, while orders in IPS were up about 1% after a 9% increase in Q1. Rob will elaborate on the segment dynamics in his section. Turning to margins. In first quarter, our margins continued to expand. Our adjusted gross margin was 37.9%, up 50 basis points versus the prior year, excluding industrial system.

4 月份，每日有機訂單下降 1.8%，主要反映了 AMC 的航空航天項目時間表以及預期的住宅 HVAC 訂單重新平衡和 PES，而 IPS 的訂單在第一季度增長 9% 之後上漲了約 1%。Rob 將在他的部分詳細闡述細分市場動態。轉向利潤。第一季度，我們的利潤率持續擴大。我們的調整後毛利率為 37.9%，不包括工業系統，比上年增長 50 個基點。

Our progress on gross margin was aided by achieving $18 million of cost synergies in the quarter. Adjusted EBITDA margin was 21.8%, up 30 basis points versus the prior year, excluding Industrial Systems aided primarily by synergy benefits. Notably, all 3 segments exceeded their margin targets in the quarter helped by stronger volumes and good cost management by our teams.

本季我們實現了 1800 萬美元的成本協同效應，有助於提高毛利率。調整後的 EBITDA 利潤率為 21.8%，較上年增長 30 個基點，不包括工業系統，這主要得益於綜效。值得注意的是，由於更高的銷售量和我們團隊良好的成本管理，本季所有三個部門均超出了其利潤目標。

Adjusted earnings per share in the quarter was $2.15, up 7.5% versus prior year or up approximately 10% adjusted for the net impact of the Industrial Systems divestiture. Lastly, we generated nearly $86 million of free cash flow in the quarter, up 32% versus prior year, which we consider strong performance in the seasonally weaker period and contributed to Regal paying down $164 million of debt in the quarter.

本季度調整後每股收益為 2.15 美元，較上年增長 7.5%，或根據工業系統剝離的淨影響調整後增長約 10%。最後，我們在本季產生了近 8,600 萬美元的自由現金流，比上年增長 32%，我們認為這是在季節性疲軟時期的強勁表現，並促使 Regal 在本季度償還了 1.64 億美元的債務。

Cash generation and debt paydown remain an important part of our midterm value creation story. In summary, a very strong start to the year that we believe supports the healthy underlying momentum in our business. Next, I'd like to shed some light on an exciting part of our portfolio that we have not spent a lot of time talking about in the past, our offering for the humanoid robot market.

現金創造和債務償還仍然是我們中期價值創造故事的重要組成部分。總而言之，我們相信今年的開局非常強勁，這將支持我們業務的健康潛在發展勢頭。接下來，我想介紹我們產品組合中令人興奮的部分，過去我們並沒有花太多時間談論這個部分，也就是我們為人形機器人市場提供的產品。

This market is still in the early stages of development, but is attracting substantial investments across a wide range of end markets. It should not surprise you to learn that Regal Rexnord is very well positioned in this space with our automation portfolio and that we are gaining momentum here.

該市場仍處於發展初期，但正在吸引廣泛終端市場的大量投資。您應該不會驚訝地發現，Regal Rexnord 憑藉我們的自動化產品組合在這個領域佔據了非常有利的地位，而且我們在這個領域正在獲得發展動力。

So much so that our humanoid offering could start moving the needle on our enterprise sales growth rate over the next few years. On the left-hand side of this slide, we outline why we are strongly positioned in this space. It starts with our deep domain expertise, in particular, in our discrete automation business in AMC but also in parts of IPS.

因此，我們的人形機器人產品可能會在未來幾年內開始推動我們的企業銷售成長率。在這張投影片的左側，我們概述了我們為何在這個領域佔據強勢地位。它始於我們深厚的領域專業知識，特別是我們在 AMC 的離散自動化業務以及 IPS 的部分業務中。

Our automation teams have worked on humanoid projects for decades, including on some milestones in the history of humanoid development such as creating rescue robots for the US Defense Department or the first humanoid Robonaut used in space by NASA.

我們的自動化團隊幾十年來一直致力於人形機器人項目，其中包括人形機器人發展史上的一些里程碑，例如為美國國防部製造救援機器人或美國宇航局在太空中使用的第一個人形機器人Robonaut。

Our core expertise lies in product engineering, quality and reliability. We are a quality leader in precision motion control, providing essential products that ensure the coordinated movement of the robot axis, such as arm and leg joints.

我們的核心專業在於產品工程、品質和可靠性。我們是精密運動控制領域的品質領導者，提供確保機器人軸（例如手臂和腿部關節）協調運動的必需產品。

Our engineers have a history of working very closely with our customers, and in many cases, become an extension of an OEM humanoid engineering team. While most of our work in this space has historically been on specific humanoid projects, we are starting to work with OEMs looking to produce units on a regular basis at scale. Producing at scale is one of our core competencies, which we can execute on a global basis.

我們的工程師一直與客戶密切合作，在許多情況下，他們成為 OEM 人形工程團隊的延伸。雖然我們在這個領域的大部分工作歷來都是針對特定的人形機器人項目，但我們開始與希望定期大規模生產設備的原始設備製造商 (OEM) 合作。規模生產是我們的核心競爭力之一，我們可以在全球範圍內實施。

Finally, the scale and scope of our portfolio puts us in the unique position of being able to offer integrated solutions, which is something our customers increasingly value and is very much aligned with Regal's strategy. In fact, some of our significant recent wins in the humanoid space are solution sales.

最後，我們產品組合的規模和範圍使我們處於能夠提供整合解決方案的獨特地位，這是我們的客戶越來越重視的，並且與 Regal 的策略非常一致。事實上，我們最近在人形機器人領域取得的一些重大勝利都是解決方案銷售。

On the right side of the slide is our product offering. It includes a range of highly engineered components, including frameless motors and miniature Servo motors sold in our AMC segment along with high precision bearings and brakes from our IPS segment. We are also selling integrated solutions comprised of these components, such as the actuator system pictured on the slide.

幻燈片的右側是我們提供的產品。它包括一系列高度工程化的組件，包括我們 AMC 部門銷售的無框馬達和微型伺服馬達以及來自 IPS 部門的高精度軸承和煞車。我們也銷售由這些元件組成的整合解決方案，例如投影片上所示的執行器系統。

In fact, Regal Rexnord was recently selected to provide an integrated solution critical for performing tasks with human-like dexterity. This solution includes motors, bearings and actuators, all areas where Regal Rexnord has extensive expertise. Outlined in the lower left market forecast for humanoid growth are wide ranging, but they generally call for strong double-digit CAGRs north of 50% for at least the next decade.

事實上，Regal Rexnord 最近被選中提供對於以類似人類的靈活性執行任務至關重要的整合解決方案。該解決方案包括馬達、軸承和執行器，這些都是 Regal Rexnord 擁有豐富專業知識的領域。左下角概述的類人機器人市場成長預測範圍很廣，但通常要求至少在未來十年內實現強勁的兩位數複合年增長率，超過 50%。

Our recent Morgan Stanley industry report, for example, expects humanoid robot production and CapEx to grow to an $80 billion market over the next 10 years from less than $1 billion today, reassuring and manufacturing back to the United States should have a positive impact on this market and automation in general, where we are well positioned.

例如，我們最近發布的摩根士丹利產業報告預計，人形機器人的生產和資本支出將在未來 10 年內從目前的不到 10 億美元增長到 800 億美元的市場，令人放心的是，將製造業帶回美國應該會對這個市場和整個自動化領域產生積極的影響，而我們在這方面處於有利地位。

Based on our business analysis and ongoing discussions with leading customers in this field, we foresee midterm opportunities to provide solutions for developing all the joint essential for a humanoid robots mobility.

根據我們的業務分析以及與該領域主要客戶的持續討論，我們預見到中期機會，可以為開發人形機器人移動性所需的所有關節提供解決方案。

We have also secured several recent wins on this front with leading humanoid manufacturers worth over $20 million in sales annually which are scheduled to ramp over the next 12 to 18 months. These wins cover between 30 and 50 axis of motion per robot and include both Regal Rexnord components and integrated solutions.

我們最近也與領先的人形機器人製造商合作，取得了多項成果，這些製造商的年銷售額超過 2000 萬美元，預計在未來 12 到 18 個月內銷售額將大幅增長。這些勝利涵蓋了每個機器人 30 到 50 個運動軸，包括 Regal Rexnord 組件和整合解決方案。

In addition to these wins, our team has a funnel of opportunities worth approximately $100 million that we are actively working. I am extremely excited about our momentum in this space, so you can expect to hear more from us as this rapidly growing market evolves. And with that, I will turn the call over to Rob.

除了這些勝利之外，我們的團隊還擁有價值約 1 億美元的眾多機會，我們正在積極努力。我對我們在這個領域的發展勢頭感到非常興奮，因此隨著這個快速成長的市場不斷發展，您可以期待聽到更多我們的消息。說完這些，我會把電話轉給羅布。

Thanks, Louis, and good morning, everyone. I'd also like to thank our global team for their hard work and disciplined execution in the quarter. Now let's review our operating performance by segment. Starting with Automation and Motion Control, or AMC, net sales in the first quarter were up 40 basis points to the prior year period on an organic basis and nicely above our expectations. The performance primarily reflects strength in the aerospace and defense business and a return to growth in discrete automation, which was partially offset by weakness in general industrial and medical.

謝謝，路易斯，大家早安。我還要感謝我們全球團隊在本季的辛勤工作和嚴謹執行。現在讓我們回顧一下各部門的經營績效。從自動化和運動控制（AMC）開始，第一季的淨銷售額較去年同期有機成長了 40 個基點，遠高於我們的預期。這項業績主要反映了航空航太和國防業務的強勁表現以及離散自動化業務的恢復成長，但被一般工業和醫療業務的疲軟所部分抵消。

The inflection to sales growth in discrete automation, which was up 12% to the prior year period, is a noteworthy positive after a sustained period of pressure in that end market. We see growing positive momentum in this market based on our higher shippable backlog in the second half of the year and into 2026, which is also expected to be mix positive for the segment. AMC's adjusted EBITDA margin in the quarter was 21.8%, which was almost 2 points above our expectations. On stronger mix, aided by discrete automation inflecting to growth as well as benefits from higher volumes and good cost management by the team. Orders in AMC in the first quarter were down 3% versus prior year on a daily basis and excluding FX impacts.

離散自動化領域的銷售額較上年同期成長了 12%，在終端市場經歷一段持續的壓力期後，這是一個值得注意的正面訊號。基於今年下半年和 2026 年可出貨積壓訂單的增加，我們看到該市場呈現不斷增長的積極勢頭，預計這也將對該領域產生積極的影響。AMC 本季調整後的 EBITDA 利潤率為 21.8%，比我們的預期高出近 2 個百分點。在更強大的組合的幫助下，離散自動化可以促進成長，同時也能帶來更高的產量和團隊良好的成本管理所帶來的好處。第一季度，AMC 影院的訂單量以日計算（不包括外匯影響）較上年同期下降 3%。

However, if we exclude data center, where we are seeing some project lumpiness, orders for AMC were up 2% in the quarter. Book-to-bill in the first quarter for AMC was $1.02. This project timing lumpiness is also reflected in April's order performance when orders for AMC were down 6% on a daily basis due entirely to our Aero business. This is not something we are concerned about because Aero orders have been strong for some time, and we have a greater than 12-month backlog in this business. Given the longer cycle and project-driven characteristics of our AMC business, we think it is also important to look at orders on a rolling basis.

然而，如果我們排除資料中心（我們看到一些項目不穩定），AMC 的訂單在本季度增長了 2%。AMC 第一季的訂單出貨比為 1.02 美元。專案時間的不平衡也反映在 4 月的訂單表現中，當時 AMC 的訂單每天下降 6%，這完全是由於我們的航空業務。我們並不擔心這個問題，因為航空訂單在一段時間內一直很強勁，而且我們在這個業務上有超過 12 個月的積壓訂單。考慮到我們的AMC業務週期較長且以專案為導向的特點，我們認為滾動地審視訂單也很重要。

As Louis mentioned, on a rolling 12-month average basis through first quarter, AMC's orders are up nearly 7%. So we continue to feel good about the order momentum in AMC, where backlog has been building. In particular, the segment's second half shippable backlog is up low teens versus this point last year, which is a key driver of the stronger second half sales performance we expect in AMC this year. Turning to Industrial Powertrain Solutions or IPS. Net sales in the first quarter were down 3.4% versus the prior year period on an organic basis or down 1.9% on a daily organic basis, which was in line with our expectations.

正如路易斯所提到的，截至第一季的 12 個月滾動平均值來看，AMC 的訂單量增加了近 7%。因此，我們繼續對 AMC 的訂單勢頭感到樂觀，其積壓訂單一直在增加。具體來說，該部門下半年的可出貨積壓訂單量與去年同期相比成長了百分之十幾，這是我們預期 AMC 今年下半年銷售業績將更加強勁的一個關鍵驅動因素。轉向工業動力總成解決方案或IPS。第一季淨銷售額較去年同期有機下降 3.4%，每日有機下降 1.9%，符合我們的預期。

The decline reflects significant but expected weakness in the machinery off-highway market as well as project timing in metals and mining, partially offset by strength in energy markets. By region, IPS sales in its core North America market were up low single digits in the quarter, which was more than offset by weakness in China, Europe and Rest of World. Adjusted EBITDA margin for IPS in the quarter was 26.9%, about 90 basis points above our expectations, and up 110 basis points versus the prior year. The upside versus our guide was largely tied to stronger mix with the improvement versus prior year aided mainly by synergies. Orders and IPS on a daily basis and excluding FX impacts, were up nearly 9% in the first quarter.

這一下降反映了非公路用機械市場明顯但預期的疲軟，以及金屬和採礦業的項目時機，但被能源市場的強勁表現部分抵消。按地區劃分，本季其核心北美市場的 IPS 銷售額僅成長了個位數，但被中國、歐洲和世界其他地區的疲軟表現所抵消。本季 IPS 的調整後 EBITDA 利潤率為 26.9%，比我們的預期高出約 90 個基點，比去年同期高出 110 個基點。與我們的指導相比，上行空間很大程度上與更強勁的組合有關，而與前一年相比的改善主要得益於協同效應。第一季度，每日訂單和 IPS（不包括外匯影響）成長了近 9%。

We believe this strong performance reflects further outgrowth in particular, wins on projects in the attractive metals and mining and marine markets. It is helpful to recognize that order bookings in our IPS segment are increasingly weighted to longer cycle orders, especially with our strategic focus on selling industrial powertrain systems. The business is split roughly 50-50 between OE and aftermarket. We would say the aftermarket business is predominantly short cycle and the OE business is split roughly evenly between short and longer cycle, implying that 25% to 30% of IPS overall is longer cycle. As the longer cycle portion of IPS continues to grow, it should give us more visibility into our revenue performance and improve our ability to manage through market cycles.

我們相信，這一強勁表現反映了進一步的成長，特別是在有吸引力的金屬、採礦和海洋市場的項目上的勝利。值得注意的是，我們 IPS 部門的訂單越來越傾向於較長週期的訂單，特別是我們的策略重點是銷售工業動力傳動系統。原始設備製造商業務和售後市場業務的份額大約各佔一半。我們認為售後市場業務主要是短週期業務，而 OE 業務則大致平均分配在短週期和長週期業務之間，這意味著總體而言，IPS 中有 25% 到 30% 是長週期業務。隨著 IPS 的較長週期部分不斷增長，它應該能讓我們更清楚地了解我們的收入表現，並提高我們管理市場週期的能力。

Book-to-bill in the first quarter for IPS was 1.13. In April, orders on a daily organic basis were up 1%, which we find encouraging given the strong nearly 9% orders growth that IPS achieved in the first quarter. Turning to Power Efficiency Solutions or PES. Net sales in the first quarter were up 8% versus the prior year on an organic basis, which was above our expectations. The result largely reflects strong growth in residential HVAC, which was up nearly 30% in the quarter.

IPS 第一季的訂單出貨比為 1.13。 4 月份，每日有機訂單量增長了 1%，考慮到 IPS 在第一季實現了近 9% 的強勁訂單增長，我們認為這一增長令人鼓舞。轉向電力效率解決方案或PES。第一季淨銷售額較上年同期有機成長 8%，超出我們的預期。這一結果在很大程度上反映了住宅暖通空調的強勁成長，本季成長了近 30%。

This is partially offset by modest declines in the general commercial market. Versus our expectations, resi HVAC markets were notably stronger. Overall, we were very pleased to see this segment return to growth and are cautiously optimistic this positive momentum can continue. We would attribute the particular strength in resi HVAC to a few factors. First, a strong furnace season.

這被一般商業市場的溫和下滑部分抵銷。與我們的預期相比，住宅 HVAC 市場明顯強勁。總體而言，我們很高興看到這一領域恢復成長，並謹慎樂觀地認為這種積極勢頭能夠持續下去。我們認為 resi HVAC 的特殊優勢可以歸因於幾個因素。一是強爐季節。

Second, destocking impacts after last year's prebuy were smaller than anticipated, but may still become more significant in the second quarter. Finally, we likely saw some buying ahead of tariff-related price changes. In short, there is a lot of noise currently in the resi HVAC data and channel. And so for now, we are remaining measured in our approach to forecasting this business. The adjusted EBITDA margin for the quarter for PES was 14.2%, which was above our expectation, aided by higher volumes, better mix and strong cost management.

其次，去年預購後的去庫存效應小於預期，但第二季可能仍會變得更加顯著。最後，我們可能會在關稅相關價格變動之前看到一些購買行為。簡而言之，目前住宅 HVAC 數據和通道中存在大量噪音。因此，目前，我們仍將採取謹慎的方式來預測這項業務。PES 本季調整後的 EBITDA 利潤率為 14.2%，高於我們的預期，這得益於更高的銷售、更好的產品組合和強大的成本管理。

Orders in PES for the first quarter were up just over 1% on a daily basis and excluding FX impacts. This result is above our expectations, given anticipated headwinds related to destocking in resi HVAC. Book-to-bill in the quarter for PES was 1.02. Daily orders for PES in April were down almost 2%, which is consistent with our expectation that we would see some modest headwinds to orders related to resi HVAC destocking and weakness in the non-US commercial HVAC business.

第一季 PES 的訂單量日均成長略高於 1%（不包括外匯影響）。考慮到住宅暖通空調去庫存化預期將面臨不利因素，這一結果超出了我們的預期。PES 本季的訂單出貨比為 1.02。 4 月 PES 的每日訂單量下降了近 2%，這與我們的預期一致，即我們將看到與住宅 HVAC 去庫存和非美國商用 HVAC 業務疲軟相關的訂單面臨一些溫和的阻力。

On the following slide, we highlight some additional financial updates for your reference. Notably, on the right side of this page, we ended the quarter with total debt of approximately $5.3 billion and net debt now sits just below $5 billion. We repaid approximately $164 million of gross debt in the quarter. A further note, we ended the quarter with variable rate debt of roughly $290 million, representing just over 5% of our total debt outstanding, which we expect to have substantially repaid by the end of the third quarter. Adjusted free cash flow in the quarter was $85.5 million, which was primarily deployed to debt reduction.

在下面的幻燈片中，我們重點介紹了一些額外的財務更新，供您參考。值得注意的是，在本頁的右側，我們在本季結束時的總債務約為 53 億美元，而淨債務目前略低於 50 億美元。本季我們償還了約 1.64 億美元的總債務。另外要注意的是，本季末我們的浮動利率債務約為 2.9 億美元，占我們未償還債務總額的 5% 多一點，我們預計到第三季末我們將基本償還這些債務。本季調整後的自由現金流為 8,550 萬美元，主要用於減少債務。

We plan to continue deploying the majority of our free cash flow to debt reduction in 2025. Turning to the outlook. Today, we are reaffirming our 2025 guidance, including sales, organic growth, adjusted EBITDA margin, adjusted earnings per share and our prior adjusted EPS range of $9.60 to $10.40. All our assumptions are outlined in the table on the right-hand side of this slide. While we are pleased with our performance in the first quarter, given we are only one quarter into the year and considering the current macroeconomic uncertainty, we believe it is prudent to remain measured in our approach to guidance.

我們計劃在 2025 年繼續將大部分自由現金流用於減債。轉向展望。今天，我們重申 2025 年的預期，包括銷售額、有機成長、調整後的 EBITDA 利潤率、調整後的每股收益以及我們先前調整後的每股收益範圍 9.60 美元至 10.40 美元。我們所有的假設都列在這張投影片右側的表格中。雖然我們對第一季的表現感到滿意，但考慮到今年才剛開始一個季度，並且考慮到當前宏觀經濟的不確定性，我們認為在製定指導方針時應保持審慎的態度。

As a result, we are not flowing the strong first quarter outperformance into our guidance. Regarding tariffs, we expect our mitigation actions, which I will discuss in more detail on the next slide, will neutralize the impact of tariffs on our 2025 adjusted EBITDA and earnings per share.

因此，我們不會將第一季的強勁表現納入我們的預期。關於關稅，我們預計我們的緩解措施（我將在下一張投影片中更詳細地討論）將抵消關稅對我們 2025 年調整後 EBITDA 和每股盈餘的影響。

I would note that to date, we have not seen clear signs of tariff-related demand deterioration in our business. Our teams have been close to our customers in recent months regarding this topic. And while they are hearing broad-based acknowledgment of heightened uncertainty, we have had little feedback regarding changes to planned spending.

我想指出的是，到目前為止，我們還沒有看到與關稅相關的業務需求惡化的明顯跡象。近幾個月來，我們的團隊一直就此主題與客戶保持密切聯繫。儘管他們普遍承認不確定性加劇，但我們幾乎沒有收到有關計劃支出變化的回饋。

Of course, tariff dynamics have been volatile and playing out over a relatively short period of time. So it may simply be too early to be seeing clear signs that spending will be impacted. Regardless, this is something we are monitoring closely and intend to provide an update on the demand outlook, if and when material new information becomes available.

當然，關稅動態一直不穩定，而且是在相對較短的時間內發生的。因此，現在看到支出將受到影響的明顯跡象可能還為時過早。無論如何，我們都在密切關注此事，如果有新的重要訊息，我們將及時更新需求前景。

Finally, before I leave this slide, I want to share a few thoughts on the various tariff-related cross currents that could impact Regal Rexnord, dynamics that we have not factored into our guidance. On the one hand, we see potential sales upside from tariff-related pricing, new share gain opportunities and more favorable currency rates.

最後，在我離開這張投影片之前，我想分享一些關於可能影響 Regal Rexnord 的各種與關稅相關的逆流的想法，這些動態尚未計入我們的指導中。一方面，我們看到與關稅相關的定價、新的份額成長機會和更優惠的貨幣匯率帶來的潛在銷售上升空間。

On the flip side, we could see weaker demand due to a softer macro environment and/or elasticity in response to our higher prices. We believe it is premature to say with any precision how these dynamics may play out. But at this time, we believe the positives likely outweigh the negatives. On this slide, we are updating our expectations regarding tariff impacts and how we are responding. In the first column on the left, we laid out the annual unmitigated cost impact from tariffs in place at the time of our March 19 tariff update.

另一方面，由於宏觀環境較弱和/或價格上漲帶來的彈性，我們可能會看到需求減弱。我們認為，現在要準確判斷這些動態將如何發揮作用還為時過早。但目前，我們認為正面因素可能大於負面因素。在這張投影片上，我們更新了對關稅影響的預期以及我們的應對措施。在左側的第一欄中，我們列出了 3 月 19 日關稅更新時實施的關稅對年度未緩解成本的影響。

The estimated gross annual impact at that time, totaled approximately $60 million, broken down between steel, aluminum, Mexico, Canada and China as detailed on the slide. There was no rest of world impact at that time.

當時估計的年度總影響總計約為 6,000 萬美元，分攤到鋼鐵、鋁、墨西哥、加拿大和中國，如幻燈片中詳細所示。當時並沒有對世界其他地區產生影響。

At March 19, our mitigation actions were expected to neutralize tariff impacts on our adjusted earnings per share within the year and to result in a neutral impact to EBITDA margins by the end of this year. In the next column, we are updating these estimates based on tariffs in place as of yesterday, May 5, when we released our earnings. The gross annualized unmitigated impact is now $130 million, again, broken down on the slide by category and region.

截至 3 月 19 日，我們的緩解措施預計將在年內抵銷關稅對我們調整後每股收益的影響，並在今年年底前對 EBITDA 利潤率產生中性影響。在下一欄中，我們將根據昨天（5 月 5 日）發布收益時實施的關稅更新這些估計。目前，年度化未緩解影響總額為 1.3 億美元，同樣按類別和地區細分。

The main changes since our prior update are a larger impact from China and adding impacts from Rest of World. You can see further down that column that we still expect our mitigation actions to result in tariffs having a neutral P&L impact within this year and a neutral EBITDA margin impact by mid-2026.

自上次更新以來，主要的變化是來自中國的影響更大，並且增加了來自世界其他地區的影響。您可以在該欄下方看到，我們仍然預計我們的緩解措施將導致關稅在今年內對損益產生中性影響，並在 2026 年中期對 EBITDA 利潤率產生中性影響。

Notably, the majority of today's update relates to higher China impacts given we have limited exposure on Rest of World. On the right-hand side of the slide, we lay out our principal mitigation actions, which we started to implement during the first quarter. These include supply chain realignments, production relocations, productivity measures and pricing actions.

值得注意的是，鑑於我們對世界其他地區的了解有限，今天更新的大部分內容都與中國的影響較大有關。在投影片的右側，我們列出了我們在第一季開始實施的主要緩解措施。這些措施包括供應鏈重新調整、生產遷移、生產力措施和定價行動。

We have early positive momentum behind these actions, which bolsters our confidence we can fully mitigate tariff impacts on our P&L. We are prioritizing actions other than price in order to minimize tariff cost impacts for our customers.

我們在這些行動背後有著早期的正面勢頭，這增強了我們的信心，我們可以完全減輕關稅對我們損益的影響。我們正在優先採取價格以外的行動，以盡量減少關稅成本對客戶的影響。

And given the flexibility of our global manufacturing footprint, and our in-region, for-region manufacturing strategy, we believe these can have a meaningful impact. That said, we still expect that pricing will be an important contributor to our mitigation efforts, and we started to take tariff-related pricing actions in the first quarter. We also share a few other tariff-related considerations.

鑑於我們全球製造足跡的靈活性以及我們在區域內、針對區域的製造策略，我們相信這些可以產生有意義的影響。儘管如此，我們仍然預計定價將成為我們緩解氣候變遷努力的重要貢獻者，並且我們在第一季就開始採取與關稅相關的定價行動。我們也分享了一些其他與關稅相關的考量。

One, approximately 95% of our imports to the US from Mexico and Canada are USMCA compliant. Two, we are dual country source on a majority of our imports to the US from China. Three, our flexible global manufacturing footprint is enabling production moves outside of China, many of which are currently underway.

首先，我們從墨西哥和加拿大進口到美國的商品中約有 95% 符合 USMCA 的規定。第二，我們從中國進口到美國的商品大部分來自兩個國家。第三，我們靈活的全球製造佈局使得生產能夠轉移到中國境外，其中許多生產目前正在進行中。

And finally, the Rest of World impact on Regal is relatively small, reinforcing our in-region, for-region strategy. The bottom line is that we are confident under tariffs currently in place, our mitigation actions should neutralize tariff impacts on our adjusted EBITDA and earnings per share in 2025, with margin neutrality occurring mid-2026.

最後，世界其他地區對 Regal 的影響相對較小，這強化了我們在該地區的地區性策略。最重要的是，我們有信心在現行關稅下，我們的緩解措施應該能夠抵消關稅對我們 2025 年調整後 EBITDA 和每股收益的影響，利潤率將在 2026 年中期達到中性。

On this slide, we provide more specific expectations for our performance by segment on revenue and adjusted EBITDA margin for second quarter and for the full year. While our full year assumptions are largely unchanged, I will flag one update.

在此投影片中，我們對第二季和全年各部門的收入和調整後 EBITDA 利潤率的表現提供了更具體的預期。雖然我們的全年假設基本上沒有變化，但我將標記一個更新。

We moved the PES sales guide from down low single digits to approximately flat, considering that segment's strong start to the year, plus our view that some of that positive momentum will carry into the second quarter. We now expect all of our segments to see roughly flat sales in 2025 versus the prior year, which is consistent with our enterprise level expectation for flat organic growth.

考慮到該部門今年開局強勁，加上我們認為部分積極勢頭將延續到第二季​​度，我們將 PES 銷售指南從低個位數下降調整為大致持平。我們現在預計，2025 年所有部門的銷售額都將與前一年大致持平，這與我們對企業層面有機成長持平的預期一致。

As I wrap up my prepared comments, I'd like to emphasize 3 points: one, while recent trade policy turmoil is creating some uncertainty, we feel very good about our ability to achieve tariff-related cost and margin neutrality; two, we believe the underlying momentum in our business is positive.

在總結我的準備好的評論時，我想強調三點：第一，雖然最近的貿易政策動盪造成了一些不確定性，但我們對實現與關稅相關的成本和利潤中性的能力感到非常滿意；二，我們相信我們業務的潛在勢頭是積極的。

We have now had four quarters in a row of positive orders and compared to the same time last year, our backlog scheduled to ship in the second half of this year is up low double digits in AMC and up high single digits in IPS, which gives us confidence in our full year guide.

我們現在已經連續四個季度獲得正訂單，與去年同期相比，我們計劃在今年下半年發貨的積壓訂單在 AMC 方面增長了低兩位數，在 IPS 方面增長了高個位數，這使我們對全年指引充滿信心。

And three, even if we do encounter some macro frictions ahead, we still have many levers to pull to create shareholder value, which include $90 million of remaining cost synergies, ample sales synergies, opportunities to materially shift our capital structure to equity as we generate cash and pay down our debt, a range of outgrowth initiatives and expected share wins due to tariff uncertainty. In summary, we are confident we will create value for our shareholders in 2025 and beyond. And with that, operator, we are now ready to take questions.

第三，即使我們確實在未來遇到一些宏觀摩擦，我們仍然可以利用許多槓桿來創造股東價值，其中包括 9000 萬美元的剩餘成本協同效應、充足的銷售協同效應、在我們產生現金和償還債務時將我們的資本結構實質性地轉變為股權的機會、一系列增長計劃以及由於關稅不確定性而預期的份額增長。總而言之，我們有信心在 2025 年及以後為股東創造價值。接線員，現在我們可以回答問題了。

(Operator Instructions)

（操作員指示）

Michael Halloran with Baird.

邁克爾·哈洛倫和貝爾德。

So let's start on the long cycle versus short cycle side of things. Can you just talk through the dynamics you're seeing on that side? I know you touched on it briefly by segments earlier, but maybe holistically, how you're seeing the long cycle orders, how the shorter cycle business is tracking as we move through here, any changes? And then secondarily, is there any change to the expectations on how the second half long-cycle projects that you talked about last quarter, how those roll through in the second half at this point?

那麼就讓我們先從長週期與短週期的比較開始。能簡單談談您所看到的那方面的動態嗎？我知道您之前已經按部分簡要地談到了這一點，但從整體上看，您如何看待長週期訂單，以及隨著我們推進，短週期業務的進展如何，有什麼變化嗎？其次，您上個季度談到的下半年長週期專案的預期有什麼變化嗎？這些項目目前在下半年的進度如何？

Yeah, Mike, I appreciate the question. We've seen some good momentum on winning longer-cycle larger projects, especially in our IPS segment and this really aligns directly with our strategy there of leveraging the capabilities across the industrial powertrain to win more. So we feel really good about sales excuse me, orders in the quarter being up roughly 9% and then even coming off of that, orders being fairly strong in April. From a short-cycle perspective, we're really not seeing any significant changes there, fairly stable. If you look just specifically to IPS, short cycle orders were up roughly 2% in Q1.

是的，麥克，我很感謝你的提問。我們在贏得較長週期的大型專案方面看到了一些良好的勢頭，特別是在我們的 IPS 領域，這實際上與我們利用整個工業動力系統的能力來贏得更多專案的策略直接一致。因此，我們對銷售情況感到非常滿意，本季的訂單量增加了約 9％，而且 4 月份的訂單量也相當強勁。從短週期的角度來看，我們確實沒有看到任何重大變化，而且相當穩定。如果你具體看一下 IPS，你會發現第一季短週期訂單成長了約 2%。

And so feel fairly good. From a second half perspective, we certainly, with the strength of the performance in the first quarter, we were able to balance a little bit more of the growth expectations of the second half. At this point, we're expecting the second half to be up only about 1%.

所以感覺相當好。從下半年的角度來看，憑藉第一季的強勁表現，我們當然能夠稍微平衡下半年的成長預期。目前，我們預計下半年僅成長 1% 左右。

As Rob said in his prepared remarks, we actually have backlog for the second half for IPS that's up roughly high single digits and for AMC that's up low double digits, which gives us really pretty solid confidence in our forecast for the second half. And so at this point, we're not changing anything with our expectations of long-cycle shipping in the second half and feel pretty good about the feel really good about the guide at this point.

正如羅佈在準備好的發言中所說，我們下半年的積壓訂單量實際上有大約個位數的增長，而 AMC 的積壓訂單量則有低兩位數的增長，這讓我們對下半年的預測非常有信心。因此，目前，我們不會改變對下半年長週期運輸的任何預期，並且對目前的指南感覺非常滿意。

And then a follow-up question. Maybe just talk about the competitive position here. I know, Louis, you alluded to in your remarks and Rob was certainly more explicit, but maybe some thoughts about competitive positioning with your footprint and how you source and where the opportunity set for some share gains resides within the portfolio?

然後是一個後續問題。也許這裡只談競爭地位。路易斯，我知道，您在評論中提到了這一點，羅布當然也說得更明確，但也許您可以考慮一下您的足跡中的競爭定位以及您的來源以及在投資組合中獲取一些份額收益的機會在哪裡？

Yeah, Thanks for the question, Mike. We won't speak specific to a competitor. But overall, on the whole, we believe we're in a net advantaged position given our global manufacturing footprint and a lot of our dual country sourcing. I mean if you think about the from the first set of tariffs to the second set of tariffs that we showed on the slide, we're actually only seeing about a $70 million uplift.

是的，謝謝你的提問，麥克。我們不會具體談論某個競爭對手。但總體而言，我們相信，鑑於我們的全球製造足跡和大量雙重國家採購，我們處於淨優勢地位。我的意思是，如果你想想我們在投影片上展示的第一組關稅到第二組關稅，我們實際上只看到約 7000 萬美元的增幅。

Rest of World has fairly small impact on us. And that just shows you that we've been working on an in-region, for-region sourcing strategy for quite some time, in particular for our PES and IPS businesses, but we're absolutely seeing share opportunity because of the footprint in AMC as well. So we think this is a net positive for Regal and expect to see some benefits over the next few quarters.

世界其他地區對我們的影響相當小。這表明，我們一直在致力於區域內、針對區域的採購策略，特別是針對我們的 PES 和 IPS 業務，但我們也絕對看到了份額機會，因為 AMC 的業務足跡也同樣如此。因此，我們認為這對 Regal 來說是一個淨利好，並預計未來幾季將會看到一些好處。

Thanks Louis appreciate it yeah

謝謝路易斯，非常感謝

Thanks Mike.

謝謝邁克。

Julian Mitchell with Barclays.

巴克萊銀行的朱利安·米切爾。

Yes, hi, good morning. Maybe just my first question was just around the EBITDA margin outlook. So I think you've got sort of 22% dialed in for the first half, 24% in the second half. Maybe just talk through some of the drivers of that step up? And how do you see tariffs affecting the margin progression of Regal through the balance of this year?

是的，你好，早安。也許我的第一個問題只是關於 EBITDA 利潤率前景。所以我認為上半年的撥入率為 22%，下半年的撥入率為 24%。也許只是談論一下這項進步的一些驅動因素？您認為關稅將如何影響 Regal 今年的利潤率成長？

Yeah, so first of all, for perspective, our guidance implies about 1% growth year-over-year in the second half, slightly weighted to fourth quarter versus third quarter. From a margin standpoint, we do expect step up in the back half from a margin perspective, primarily in AMC. And the drivers there are around mix and volume, along with some price synergies and restructuring. So mix is the primary driver, given the recovery of discrete automation, where margins are, let's say, roughly 500 basis points above our fleet average.

是的，首先，從長遠來看，我們的預期意味著下半年年增約 1%，第四季的增幅略高於第三季。從利潤率的角度來看，我們確實預計下半年利潤率會有所上升，主要是在 AMC 領域。其中的驅動因素包括產品組合和產量，以及一些價格協同效應和重組。因此，考慮到離散自動化的復甦，組合是主要驅動力，其利潤率比我們的車隊平均高出約 500 個基點。

From a progression and the way the tariffs should roll through in the year, we will capitalize the cost of the tariffs, which will then hit the P&L as our inventory terms. And so there is going to be a lag there. And it's hard to calibrate precisely. There could be some small timing impact from quarter-to-quarter. But again, we feel very confident in our ability to be EBITDA neutral by the end of the year.

從進度和關稅在年內滾動的方式來看，我們將把關稅成本資本化，然後將其作為庫存條款計入損益表。因此，那裡就會出現滯後。而且很難進行精確校準。每個季度之間可能會存在一些小的時間影響。但我們仍然對在今年年底前實現 EBITDA 中性的能力充滿信心。

Great. And my second question, just on the PES, revenue outlook is that's the one segment where the guide change this morning. Maybe dive a little bit deeper into the second half assumptions on the top line? I guess you're saying first half is up mid-single digits year-on-year in sales I think PES. I realize there's a tougher comp in the fourth quarter and so on, but maybe just sort of help us understand the degree of conservatism or otherwise in that second half PES guidance, please?

偉大的。我的第二個問題是，僅就 PES 而言，收入前景是今天早上指南變化的一個部分。或許可以更深入探討下半年的營收假設？我想您是說上半年的銷售額年增了中個位數，我認為是 PES。我知道第四季度的比賽會更加激烈，等等，但也許能幫助我們了解下半年 PES 指導的保守程度或其他方面，好嗎？

Yeah, Thanks for the question, Julian. We think it's we're very pleased with performance of the first quarter and the strength of the first order. However, we think it's a bit too early to assume that strength will pass through the year, especially given what we're seeing from party results, consumer confidence and housing weakness. And although we have a pretty good line of sight to Q2, we are expecting the second half to be slightly down.

是的，謝謝你的提問，朱利安。我們認為我們對第一季的表現和第一批訂單的實力非常滿意。然而，我們認為現在就假設這種強勁勢頭將持續全年還為時過早，尤其是考慮到我們所看到的政黨選舉結果、消費者信心和住房市場疲軟的情況。儘管我們對第二季的前景看好，但我們預計下半年的情況會略有下降。

And really what's weighing on us is the macro. And so that's how we pull together the forecast for PES.

而真正帶給我們壓力的是宏觀因素。這就是我們對 PES 進行預測的方式。

Great, thank you.

太好了，謝謝。

Thank you, thanks Julian.

謝謝，謝謝朱利安。

Jeffrey Hammond with KeyBanc Capital Markets.

KeyBanc Capital Markets 的 Jeffrey Hammond。

Hey, good morning, guys. I'm just to hit on the $130 million of tariffs, is there a way to break down how you think about mitigating that? How much is price maybe how to rank order some of these other mitigation initiatives?

嘿，大家早安。我只是想談談 1.3 億美元的關稅，有什麼辦法可以具體說明一下您是如何考慮減輕這一影響的嗎？價格是多少？或如何對這些其他緩解措施進行排序？

Yeah, So we put it in order of what we think is going to be the major drivers. So we haven't tried to break it down more specifically, Jeff, to percentages. But we do see supply-based realignments as being the driver, then second to that production relocations and our productivity actions. And then for sure, we'll have to leverage price and surcharges to be able to offset.

是的，所以我們按照我們認為的主要驅動因素進行排序。因此，傑夫，我們還沒有嘗試將其更具體地分解為百分比。但我們確實認為基於供應的重新調整是驅動因素，其次是生產遷移和生產力行動。然後可以肯定的是，我們必須利用價格和附加費來抵銷。

But in the end, we feel very confident about our EBITDA neutral by the end of this year and margin neutrality by the middle of next year.

但最終，我們對今年年底的 EBITDA 中性和明年年中利潤率中立非常有信心。

Okay. And then 2 margin questions. I guess, one, what's the step down in IPS 1Q to 2Q? Is that just mix? Or is that a tariff timing issue?

好的。然後還有 2 個邊注問題。我想，首先，IPS 從第一季到第二季的降幅是多少？那隻是混合嗎？還是這是關稅時機問題？

And then on the margin, you lifted the margins on PES, and I'm just wondering if that's just the strong 1Q or if there's something else going on to drive that as well?

然後在利潤率方面，您提高了 PES 的利潤率，我只是想知道這是否只是強勁的第一季業績，還是有其他因素推動了這一趨勢？

Yeah. So the first of all, your first question on IPS, there largely the first quarter to the second quarter is going to be around mix more than anything else. It will be it's a mix of business within IPS and how we see that translated. Your second question related to...

是的。因此，首先，關於 IPS 的第一個問題，第一季到第二季基本上將圍繞著混合。這將是 IPS 內部業務的混合體，以及我們如何看待它的轉換。您的第二個問題涉及...

PES.

實況足球。

The PES business.

PES 業務。

And it's really just to flow through the Q1 performance for the year.

這實際上只是為了了解今年第一季的業績。

That's right. There is really not much of any more and some cost there's also some cost savings that are embedded in the fourth quarter, in particular, and some price that's improving the margins as we move through the year there. So that's also contributing to the margin improvement as we move through for PES.

這是正確的。實際上，已經沒有太多成本了，特別是在第四季度，也有一些成本節省，而且隨著我們度過這一年，一些價格正在提高利潤率。因此，隨著我們推進 PES，這也有助於提高利潤率。

And it's basically the same pattern that we saw last year, Jeff, in PES that is.

傑夫，這基本上與我們去年在 PES 中看到的模式相同。

Okay, great, thanks.

好的，太好了，謝謝。

And PES that is.

這就是 PES。

Kyle Menges with Citigroup.

花旗集團的 Kyle Menges。

Thank you. I think you had said you'd seen some prebuy, at least in PES ahead of tariffs in the quarter. Did you get the sense that there was any other maybe prebuying in the first quarter ahead of tariffs? I think IPS orders up 9%, was particularly strong in the quarter. So was some of that prebuy? Would just be helpful to hear your sense of that in the quarter for the segments.

謝謝。我想您說過您已經看到了一些預購，至少在本季度關稅之前的 PES 中是如此。您是否感覺到在關稅實施之前，第一季可能還有其他預購行為？我認為 IPS 訂單成長了 9%，本季表現特別強勁。那麼其中一些是預購的嗎？聽聽您對本季各個部分的看法將會很有幫助。

Yeah, good morning, Kyle, and we were trying to stay very close to our customers to understand this. When you look at the profile of the orders in IPS, they were mostly longer cycle, larger orders. And so not really not at all, prebuy driven and we saw low single-digit growth in orders in the short cycle in IPS.

是的，早上好，凱爾，我們正努力與客戶保持密切聯繫以了解這一點。當您查看 IPS 中的訂單概況時，您會發現它們大多是周期較長、規模較大的訂單。所以實際上並非如此，預購驅動，我們看到 IPS 短週期內的訂單量呈現低個位數成長。

So we didn't feel maybe there's a scattering here and there, but nothing that we would call out material other than we do think perhaps some of the resi HVAC was a bit of a prebuy, and we heard that from some customers.

因此，我們並不認為這裡或那裡可能存在分散的情況，但我們不會指出任何實質性問題，除了我們確實認為一些住宅 HVAC 有點預購，我們從一些客戶那裡聽說了這一點。

Got it. That's helpful. And then I thought synergies in the quarter of $18 million was pretty good. I mean that's 1/3 of planned synergies realized in the first quarter, at least for the year. So I guess, was that fairly in line or perhaps a little bit above what you had anticipated?

知道了。這很有幫助。然後我認為本季 1800 萬美元的協同效應相當不錯。我的意思是，這是第一季實現的計劃協同效應的 1/3，至少是今年的計劃。所以我想，這是否與您的預期相符，或者可能略高於您的預期？

And then could you just talk to your confidence in still hitting that full year synergy target of $54 million despite some of the tariff headwinds?

那麼，您能否談談儘管面臨一些關稅阻力，您仍然有信心實現 5,400 萬美元的全年協同目標？

Yes, I'd say that the $18 million that we had is very much in line with our expectations. We're still right on track for $54 million we've got in the year, which means we've got about $90 million left in synergies coming at us. So we feel very good about it. So cadence of this year, right on track. And expectations going into next year also feel really good about that based on the project activity that we've got going on.

是的，我想說，我們所獲得的 1800 萬美元完全符合我們的預期。我們今年仍有望獲得 5,400 萬美元的收入，這意味著我們還剩下約 9,000 萬美元的協同效應。因此我們對此感覺非常好。所以今年的節奏完全正常。根據我們正在進行的專案活動，我們對明年的期望也非常樂觀。

And Kyle, we would not see any impact because of tariffs. And it really goes back to our strategy of in-region, for-region. So we're looking at in-region for any of our synergies.

凱爾，我們不會看到關稅帶來的任何影響。這其實可以追溯到我們的區域內、區域內的策略。因此，我們正在尋找區域內的協同效應。

Got it thanks guys.

明白了，謝謝大家。

Nigel Coe with Wolfe Research.

沃爾夫研究公司的 Nigel Coe。

Thanks. Good morning. I want to go back to Jeff's question on the 2Q margins in IPS and AMC. So, Louis, I think you mentioned primary mix. But I'm wondering if there's a little bit of sort of tariff pressure hidden there? Or is the FIFO pushing the inflation beyond 2Q? Just curious if there's anything impinged on those margins?

謝謝。早安.我想回到 Jeff 關於 IPS 和 AMC 第二季利潤率的問題。那麼，路易斯，我認為你提到了主要混合。但我想知道這其中是否隱藏著一點關稅壓力？或者 FIFO 是否會將通膨推高至第二季度之後？只是好奇這些邊緣是否有受影響？

Really not. I mean if you look at the guide that we've put out first quarter to second quarter for AMC, you're talking margins are relatively flat from first to second quarter, nothing really going on there. And IPS is really more of a mix discussion than anything. There are certainly tariffs that will be capitalized, but we've already started that process. Will there be some slight impact there?

真的不是。我的意思是，如果你看一下我們為 AMC 發布的第一季至第二季的指南，你會發現第一季至第二季的利潤率相對持平，沒有什麼變化。IPS 其實更像是一種混合討論。肯定會有一些關稅被資本化，但我們已經開始了這個過程。那裡會受到輕微的影響嗎？

Yes. But if anything, it would likely weigh to our benefit because the pricing is already is embedded and the tariff is being capitalized. And in that business, it's going to be three to four months. So that's you're going to get a benefit of anything from the tariffs in the second quarter in IPS.

是的。但如果有任何影響的話，它可能會對我們有利，因為定價已經嵌入並且關稅正在資本化。而對於這項業務來說，這需要三到四個月的時間。因此，您將從 IPS 第二季的關稅中獲得任何好處。

Yeah. By the way, congratulations on moving away from LIFO accounting a couple of years ago. And then going back to this idea of kind of competitive advantage from the tariffs currently in place, we know you've got a pretty sizable Chinese competitor in HVAC motors. But are there any other pockets of in your businesses where you do face Chinese or Asian competitors, particularly ones exporting still from regions?

是的。順便說一句，恭喜您幾年前擺脫了後進先出會計法。然後回到目前關稅的競爭優勢這個話題，我們知道在 HVAC 馬達領域有一個相當大的中國競爭對手。但是，你們在其他業務領域是否也面臨中國或亞洲的競爭對手，尤其是那些仍從地區出口的競爭對手？

Really less so of Chinese competitors, but we absolutely do see some Asian competitors, especially in AMC, where we've already started seeing a benefit. And so this, again, though, was why we've moved more and more to technology-based product and away from commoditized product. And so from our perspective, there's going to be some opportunity there that we'll be able to leverage.

中國競爭對手確實不多，但我們確實看到了一些亞洲競爭對手，尤其是 AMC，我們已經開始看到它們的優勢。所以，這就是為什麼我們越來越多地轉向基於技術的產品，而遠離商品化產品。因此從我們的角度來看，那裡將會有一些我們可以利用的機會。

Okay, I'll leave it there.

好的，我就把它留在那裡。

Thanks. Thanks.

謝謝。謝謝。

Tim Thein with Raymond James.

提姆泰因 (Tim Thein) 和雷蒙德詹姆斯 (Raymond James)。

Thank you. Good morning. Maybe just first, I likely missed it. But Rob, a question as you went through in talking about everything you the guidance that reiterated, I may have missed it, but was the free cash flow target, is that still on track for the roughly $700 million? I didn't know if I saw that.

謝謝。早安.也許只是第一次，我可能錯過了。但是羅布，當你談到你重申的指導方針時，我可能錯過了一個問題，但是自由現金流目標是否仍然在約 7 億美元的軌道上？我不知道我是否看到了。

It is still on track for $700 million in the year or an exit rate of $900 million. So all still on track.

今年仍有望實現 7 億美元的融資額或 9 億美元的退出率。所以一切仍在正常進行中。

Got it. Okay. Good. And then just a question on IPS, obviously, not the biggest part of the business, but when you're going through the comments from a regional performance, it stood out in terms of the implied year-over-year decline outside North America. Maybe, Louis, again, not something is going to get a ton of airplay.

知道了。好的。好的。然後只是關於 IPS 的一個問題，顯然，它不是業務中最大的部分，但是當你查看區域表現的評論時，它在北美以外隱含的同比下降方面脫穎而出。路易斯，也許，再說一次，沒有什麼事情會得到大量的播出。

But I mean, I think it would imply down like 20%, assuming I heard you correct, in terms of North America. Can you just maybe spend a minute on that in terms of maybe going forward, your expectations for that non-US part of IPS?

但我的意思是，我認為就北美而言，這意味著下降 20%，如果我沒聽錯的話。您能否花一點時間談談您對 IPS 非美國部分未來的期望？

Yeah, you're right. It's actually probably low to mid-teens when you do the math out. Europe is certainly the industrial economy in Europe has been weak and so have in China. I would comment though that 2024, we saw the flip actually, North America was down low single digits, but Rest of World was up, which allowed us to have roughly flat sales. Right now, we are and feel good about our growth in the US

是的，你說得對。如果你算一下的話，它實際上可能在十幾歲左右。歐洲的工業經濟肯定一直很弱，中國也是。不過我想說的是，2024 年我們實際上看到了逆轉，北美銷售額下降了個位數，但世界其他地區的銷售額卻上升了，這使我們的銷售額基本上持平。目前，我們對美國市場的成長感到滿意

and that's going to help us through this year and we're still expecting Rest of World to be slightly down. That's in our guide to be flat for IPS for the year.

這將幫助我們度過今年，我們仍然預計世界其他地區的經濟將略有下降。在我們的指導中，今年的 IPS 將保持穩定。

Okay. All right. Understood. And then on AMC, just thinking as we look into the back half of the year, I think you'll assuming I did the math correct, you should be exiting the year from an EBITDA margin perspective at or kind of near the midpoint of that the target you outlined for '27 2027 of, call it, mid-20%-ish. Is that as you think about the projected mix of the revenues, obviously, a little heavier from where you are today in automation, is that is that kind of a reasonable run rate from a product/mix standpoint?

好的。好的。明白了。然後關於 AMC，當我們展望下半年時，我認為你會認為我的計算是正確的，從 EBITDA 利潤率的角度來看，今年的利潤率應該處於或接近你所概述的 2027 年目標的中點，也就是 20% 左右的中點。當您考慮預期的收入組合時，顯然，與您目前在自動化領域的水平相比，這要高一些，從產品/組合的角度來看，這是合理的運行率嗎？

Or is there something that you would kind of caution against reading too much into that?

或者您會提醒大家不要對此進行過多的解讀？

Because it's I guess the simple question is that implies you're exiting the year, near the target that you outlined. So I just wanted to kind of gauge your comfort level on that.

因為我想，這個簡單的問題意味著你在今年年底前就接近你所設定的目標了。所以我只是想衡量一下你對此的舒適程度。

I know it's been two years now, but the compelling strategy of acquiring Altra was to get the automation business. And that automation business, we believe, will grow and grow at an accelerated pace. And it does have margins that are roughly 500 basis points above our fleet. And so from that perspective, we would expect our EBITDA margins to continue to tick up just because of mix over time. So we do think that 24/7 does start to become a very good number going forward.

我知道已經兩年了，但收購 Altra 的引人注目的策略是為了獲得自動化業務。我們相信，自動化業務將會加速成長。它的利潤率確實比我們的機隊高出約 500 個基點。因此從這個角度來看，我們預計我們的 EBITDA 利潤率將隨著時間的推移而持續上升。因此，我們確實認為，24/7 在未來會成為一個非常好的數字。

Got it. All right, thank you.

知道了。好的，謝謝。

Nigel Coe with Wolfe Research.

沃爾夫研究公司的 Nigel Coe。

Thanks for the second part of the show here. So Louis, you spent 10 minutes talking about humanoids. So I'd be remiss not to ask the question on this. So I'm just wondering, the opportunity funnel of $100 million, is this sort of what are you sort of bidding on today in terms of what's out there? And is this a supply chain that's largely in China?

感謝這裡節目的第二部分。路易斯，你花了 10 分鐘談論人形機器人。因此，如果我不問這個問題，那我就太失禮了。所以我只是想知道，1 億美元的機會漏斗，就目前的情況而言，這就是您今天競標的對象嗎？這個供應鏈主要位於中國嗎？

Or is it because obviously, that's where we hear most of the activity from, but is this more global than that? Or is it mainly just a Chinese business?

還是因為顯然我們從那裡聽到了大多數活動，但這是否比那更俱全球性？或者它主要只是一家中國企業？

Yeah, Nigel, I appreciate the question. It's not mostly China business actually. But the $20 million of annualized business that we won in the last quarter is not Chinese-based and would not be supplied from China either. So that $100 million to funnel, Nigel, I'd say it's global.

是的，奈傑爾，我很感謝你的提問。事實上，這主要不是中國業務。但我們上季贏得的2000萬美元年度業務並非來自中國，也不會由中國供應。因此，奈傑爾，我認為要籌集的 1 億美元是全球性的。

But I do not have a further breakdown of what that means. But I can tell you, again, the wins were not Chinese-based wins as majority. There's a little bit in there but mostly North American centric.

但我無法進一步分析這意味著什麼。但我可以再告訴你們，勝利並非主要基於華人的勝利。其中有一點，但主要以北美為中心。

Okay great I'll leave it there thanks.

好的，太好了，我會把它留在那裡，謝謝。

Yeah thanks.

是的，謝謝。

(Operator Instructions)

（操作員指示）

Christopher Glynn with Oppenheimer.

克里斯多福·格林與奧本海默。

Thank you, good morning. Yeah, just going back to the IPS margin guidance, I wanted to dive into the mix effect. Are you seeing distribution kind of static and OEM picking up because I'm not aware of other mix variations you've talked about in the past at IPS?

謝謝，早安。是的，回到 IPS 利潤率指導，我想深入了解混合效應。您是否看到分銷類型的靜態和 OEM 正在興起，因為我不知道您過去在 IPS 上談論過的其他混合變化？

Yeah, the answer short answer is yes. That is what we're seeing, more OEM versus distribution, which is aligned with our strategy that we've been discussing on the first from the first fit strategy.

是的，簡短的回答是肯定的。這就是我們所看到的，更多的是 OEM 而不是分銷，這與我們一直在討論的從第一個適合的策略開始的策略是一致的。

Okay. And it sounds like on the share opportunity related to tariffs and your advantaged footprint, you're talking about some real-time things we'll be seeing this year. So are you seeing you're actually negotiating with customers right now? And is that continuing to pick up momentum?

好的。聽起來，關於與關稅和優勢足跡相關的分享機會，您正在談論我們今年將看到的一些即時事情。那麼，您是否看到您現在實際上正在與客戶談判？這種勢頭是否還在持續增強？

Yeah, Chris, absolutely. Each one of our businesses have different profiles right now. We're not saying that it could be significantly material to the year, but feel good about the way we're positioned. And again, I draw you back to the tariff slide where we have been working for quite a while to be in-region, for-region. And so a step up of I don't like using the word only when I talk about a $20 million cost impact, but for Rest of World being a $20 million step-up and then China being $60 million, it tells you that we supply in-region, for-region, which puts us in a preferred position in a number of our businesses.

是的，克里斯，絕對是。目前，我們的每項業務都有不同的概況。我們並不是說這會對今年產生重大影響，但對我們的定位感到滿意。我再次請大家回顧關稅幻燈片，我們已為此工作了相當長一段時間，力求在地區內實現這一目標。因此，我不喜歡只在談論 2000 萬美元的成本影響時使用這個詞，但對於世界其他地區而言，這是 2000 萬美元的增幅，而中國是 6000 萬美元，這說明我們在區域內、為區域提供產品，這使我們在許多業務中處於優先地位。

Okay. Great. And and anything you win that would tend to be sticky, I guess, right? It would hang around on a repeat basis?

好的。偉大的。我想，你贏得的任何東西都會變得很棘手，對吧？它會重複出現嗎？

Well, especially as we've been working hard, Chris, on moving to more technology-based businesses, once you get in and you can serve well, you stay. And we feel really good about being able to do that. But getting in the front door is sometimes more difficult. So if this opens that door for us, awesome.

嗯，克里斯，特別是當我們一直在努力轉向更多基於技術的業務時，一旦你加入並且可以很好地服務，你就會留下來。我們很高興能夠做到這一點。但有時候，進入前門會更加困難。所以如果這為我們打開了那扇門，那就太棒了。

Sounds good. Last one for me is on AMC's medical business. Is that a market you see taking a pause or just a little lumpy short term?

聽起來不錯。對我來說最後一個是關於AMC的醫療業務。您認為這個市場會暫停發展還是短期內會有些波動？

A little lumpy short term, not because of the demand in the end market more around our customers and their inventory management of the channel. So we think and feel really good about this being a continued market for growth for us, and we're investing in the market with new product and technology.

短期內會有些波動，不是因為終端市場的需求，而更多的是圍繞我們的客戶及其管道的庫存管理。因此，我們認為這對我們來說是一個持續成長的市場，我們正在透過新產品和新技術向該市場進行投資。

Okay. So you think that should tip back to growth within the year?

好的。所以您認為年內應該會恢復成長嗎？

Yeah, This concludes our question-and-answer session. I would like to turn the conference back over to Louis Pinkham for any closing remarks.

是的，我們的問答環節到此結束。我想將會議交還給 Louis Pinkham 做最後發言。

This concludes our question-and-answer session. I would like to turn the conference back over to Louis Pinkham for any closing remarks.

我們的問答環節到此結束。我想將會議交還給 Louis Pinkham 做最後發言。

Thank you, operator, and thanks to our investors and analysts for joining us today. Q1 was a strong start for Regal, which is allowing us to hold our guidance while also taking an incrementally more measured approach to our rest of year assumptions.

謝謝運營商，也感謝我們的投資者和分析師今天加入我們。對於 Regal 來說，第一季是一個強勁的開端，這使我們能夠維持我們的指導，同時也對今年剩餘時間的假設採取了更加謹慎的態度。

As we look ahead to the remainder of 2025, we will continue to manage what is under our control. And in this regard, we see many opportunities to create value for our shareholders. We still have $90 million of cost synergies to deliver ample sales synergies, a host of organic growth acceleration project and sizable upside from augmenting our free cash flow and paying down our debt.

展望 2025 年剩餘時間，我們將繼續管理我們能夠控制的事情。在這方面，我們看到了許多為股東創造價值的機會。我們仍然擁有 9,000 萬美元的成本協同效應，可實現充足的銷售協同效應、一系列有機成長加速項目，以及透過增加自由現金流和償還債務獲得可觀的收益。

We believe the strength of our order and backlog and end markets that are just starting to rebound, also create a highly favorable risk/reward profile for investors. We acknowledge tariff-related uncertainties but are confident in our ability to manage through them, with potential macro risk to the top line but also likely upside from higher price and strategic share gain opportunities.

我們相信，我們的訂單和積壓訂單的強勁以及剛開始反彈的終端市場也為投資者創造了非常有利的風險/回報狀況。我們承認存在與關稅相關的不確定性，但我們有信心能夠克服這些不確定性，這可能會為營收帶來潛在的宏觀風險，但也可能因價格上漲和策略性份額成長機會而帶來上行風險。

In short, high confidence that Regal Rexnord presents a compelling value creation opportunity for our customers, our associates and our shareholders. Thank you again for joining us today, and thank you for your interest in Regal Rexnord.

簡而言之，我們堅信 Regal Rexnord 為我們的客戶、員工和股東提供了極具吸引力的價值創造機會。再次感謝您今天加入我們，也感謝您對 Regal Rexnord 的關注。

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

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。