Regal Rexnord Corp (RRX) 2025 Q2 法說會逐字稿

Good morning, and welcome to the Regal Rexnord second-quarter 2025 earnings conference call. (Operator Instructions)

早安，歡迎參加 Regal Rexnord 2025 年第二季財報電話會議。（操作員指示）

Please note this event is being recorded. I would now like to turn the conference over to Rob Barry, Vice President, Investor Relations. Please go ahead.

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 Second 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 年第二季財報電話會議。今天與我一起出席的還有我們的執行長 Louis Pinkham 和我們的財務長 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 regalrexnor.com website.

由於多種因素，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這些因素進行了更詳細的描述，這些報告可在 regalrexnor.com 網站上查閱。

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 these presentation materials.

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這些簡報資料中加入了非 GAAP 財務資訊與 GAAP 等值財務資訊之間的對帳。

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 second quarter performance and an update on our cross-sell initiatives. Rob Rehard will then present our second quarter financial results in more detail, review our 2025 guidance and provide an update on tariffs.

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，概述我們的第二季度業績並介紹我們的交叉銷售計劃的最新情況。隨後，Rob Rehard 將更詳細地介紹我們的第二季財務業績，回顧我們 2025 年的指引並提供關稅更新。

We will 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 second quarter results and to get an update on our business. We appreciate your continued interest in Regal Rexnord. In short, our team delivered solid second quarter performance in line with our expectations on sales and modestly ahead on adjusted earnings per share.

偉大的。謝謝，羅布，大家早安。感謝您加入我們討論第二季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。簡而言之，我們的團隊在第二季度取得了穩健的業績，符合我們的銷售預期，並且調整後的每股收益略有成長。

So before continuing, I want to take a moment to thank our 30,000 Regal Rexnord associates for their hard work and disciplined execution. I am also especially proud of the job our associates have been doing to overmanage the impacts of tariffs and rare earth magnet constraints.

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執行。我也對我們的同事為克服關稅和稀土磁鐵​​限制的影響所做的工作感到特別自豪。

Their efforts keep us confident that we can fully neutralize current tariff impacts on our adjusted 2025 EBITDA and earnings and the adjusted EBITDA margin neutral in the first half of 2026. Now let me provide some specifics on our second quarter performance, starting with sales. Our sales in the quarter were down 1.2% versus the prior year on an organic basis, in line with our expectations.

他們的努力讓我們有信心，我們可以完全抵消當前關稅對我們 2025 年調整後的 EBITDA 和收益的影響，並使 2026 年上半年的調整後 EBITDA 利潤率保持中性。現在讓我提供一些有關我們第二季度業績的具體信息，首先是銷售額。本季我們的銷售額與前一年相比有機下降了 1.2%，符合我們的預期。

We faced a couple notable headwinds in the quarter related to project timing in metals and mining in our IPS segment and to temporary rare earth magnet availability, which delayed certain higher-margin shipments into the medical and defense markets, specifically in the AMC segment. These headwinds were largely offset by particular strength in residential and commercial HVAC and in aerospace.

本季度，我們面臨一些明顯的阻力，這些阻力與 IPS 部門的金屬和採礦項目時間表以及稀土磁體的臨時供應有關，這推遲了某些高利潤產品進入醫療和國防市場，特別是在 AMC 部門。這些不利因素在很大程度上被住宅和商業暖通空調以及航空航太領域的強勁表現所抵消。

For reference, our sales in the first half were roughly flat on an organic basis. Regarding tariffs in the demand environment, we have been seeing limited customer spending and project timing impacts, which, in aggregate, are having only a modest impact on our business. Bigger picture, we continue to believe that demand in most of our key end markets is at or near trough levels and were it not for various macro uncertainties, the industrial cycle would be gaining momentum at a firmer pace.

作為參考，我們上半年的銷售額在有機基礎上基本持平。關於需求環境中的關稅，我們看到客戶支出和專案時間影響有限，整體而言，這對我們的業務僅產生適度的影響。從更大角度來看，我們仍然相信，我們大多數主要終端市場的需求處於或接近低谷水平，如果不是因為各種宏觀不確定性，工業週期將以更強勁的速度獲得動力。

Even so, we remain optimistic that our sales will improve and grow at a low single-digit rate in the back half of 2025 and into next year, given multiple quarters of positive orders that have grown our backlog, particularly in our IPS and AMC segments.

即便如此，我們仍然樂觀地認為，鑑於多個季度的積極訂單增加了我們的積壓訂單量，特別是在我們的 IPS 和 AMC 領域，我們的銷售額將在 2025 年下半年和明年有所改善並以較低的個位數增長。

Orders in the quarter on a daily basis were down 2.5% and book to bill was 0.98. Orders in the quarter were weighed down by AMC, which saw an orders decline of 7.5%. This decline was driven by the timing of a sizable data center order expected in the quarter and a tough compare as orders in AMC were up 12% in the second quarter of last year. Specifically, a $35 million data center order that was expected in the quarter ended up booking early in July.

本季日訂單量下降2.5%，訂單出貨比為0.98。 AMC戲院訂單量下降7.5%，拖累了本季的訂單量。造成這一下降的原因是本季預計有大量資料中心訂單，而 AMC 的訂單在去年第二季成長了 12%，因此比較起來比較困難。具體來說，預計本季的 3,500 萬美元資料中心訂單最終在 7 月初就已預訂。

It would have improved AMC's second quarter orders grade -- orders growth by roughly 8 points had it come a week earlier, and Regal's overall orders for the quarter would have been flat. I would like to take a minute to acknowledge the significant achievement this data center order represents for our power management team within AMC and for Regal Rexnord broadly. The order is for switchgear that will be used in a hyperscale data center in North America.

如果提前一周公佈，AMC 影院第二季度的訂單評級將會提高——訂單增長約 8 個百分點，而 Regal 影院本季的整體訂單將持平。我想花一點時間來承認這個資料中心訂單對於 AMC 內部的電源管理團隊以及 Regal Rexnord 而言所代表的重大成就。該訂單涉及的開關設備將用於北美的超大規模資料中心。

We believe this July, data center order will be the first of five similarly sized orders that the customer plans to award on this particular project and feel that we are well positioned to win some or all of this additional content. And while any additional wins associated with this project would likely hit our P&L only at the end of 2025 and in '26 and '27, this project alone could provide a meaningful boost to our enterprise growth rate next year.

我們相信，今年 7 月的資料中心訂單將是客戶計劃在該特定項目中授予的五個類似規模訂單中的第一個，並且我們認為我們完全有能力贏得部分或全部額外內容。儘管與該專案相關的任何額外收益可能只會在 2025 年底以及 2026 年和 2027 年影響我們的損益，但僅此一項就能為我們明年的企業成長率帶來有意義的推動。

In July, daily organic orders for Regal Rexnord were up 4.4%, driven primarily by strength in data center. Turning to margins. Our second quarter adjusted gross margin was 38.2%, up 10 basis points versus the prior year, excluding Industrial Systems. Our progress on gross margin was aided by achieving $17 million of cost synergies in the quarter. Temporary impacts related to rare earth magnet availability were a modest headwind.

7 月份，Regal Rexnord 的每日有機訂單成長了 4.4%，主要得益於資料中心的強勁成長。轉向利潤。我們第二季的調整後毛利率為 38.2%，不包括工業系統，比上年增長 10 個基點。本季我們實現了 1700 萬美元的成本協同效應，有助於提高毛利率。與稀土磁鐵供應相關的暫時影響只是適度的阻力。

Adjusted EBITDA margin was 22%, down 20 basis points versus the prior year, excluding Industrial Systems. Adjusted earnings per share in the quarter was $2.48, up 8.3% versus the prior year. Lastly, we generated $493 million of free cash flow in the second quarter, of which $368.5 million relates to an accounts receivable securitization program we completed in the quarter. This program, which Rob will elaborate on, is net accretive to our earnings by allowing us to accelerate paying down higher cost debt, which remains a top priority.

調整後的 EBITDA 利潤率為 22%，較前一年下降 20 個基點（不含工業系統）。本季調整後每股收益為 2.48 美元，較上年增長 8.3%。最後，我們在第二季產生了 4.93 億美元的自由現金流，其中 3.685 億美元與我們在本季完成的應收帳款證券化計畫有關。羅布將詳細說明這項計劃，該計劃使我們能夠加速償還高成本債務，從而淨增我們的收益，這仍然是我們的首要任務。

In summary, a strong second quarter, which along with healthy recent orders in backlog growth makes us optimistic about improving top line and earnings momentum in the back half of this year and into 2026. Next, I'd like to spend a few minutes updating you on our cross-sell synergies where we are seeing positive momentum and expect a growing contribution to our sales performance. Bottom line, we are on track to deliver at least the $250 million of cross-sell synergies we announced following the Rexnord and Altra transactions.

總而言之，第二季表現強勁，加上近期積壓訂單的健康成長，讓我們對今年下半年和 2026 年營收和獲利動能的改善充滿信心。接下來，我想花幾分鐘時間向您介紹我們的交叉銷售協同效應，我們看到了積極的勢頭，並預計對我們的銷售業績的貢獻將越來越大。最重要的是，我們有望實現在 Rexnord 和 Altra 交易之後宣布的至少 2.5 億美元的交叉銷售協同效應。

As you can see on the chart on this slide, we achieved $120 million of cross-sell synergies through the end of last year and are on track to add incremental $50 million this year. As a reminder, principal cross-sell synergies include addressing the broader customer base of the combined business and taking advantage of the unrivaled scale and scope of our product portfolio and go-to-market to gain wallet share and to sell more solutions, including powertrain.

正如您在這張投影片的圖表中所看到的，截至去年年底，我們實現了 1.2 億美元的交叉銷售協同效應，並且預計今年將增加 5000 萬美元。提醒一下，主要的交叉銷售協同效應包括滿足合併後業務的更廣泛的客戶群，並利用我們無與倫比的產品組合規模和範圍以及進入市場來獲得錢包份額並銷售更多解決方案，包括動力系統。

This value proposition is resonating, which is evident from our growing funnel of cross-sell opportunities, which stood at nearly $300 million at the end of Q2. Notably, the win rate on our cross-sell opportunities has been tracking about 10 points above the enterprise average.

這項價值主張引起了共鳴，這從我們不斷增長的交叉銷售機會中可以看出，截至第二季末，交叉銷售機會已接近 3 億美元。值得注意的是，我們的交叉銷售機會的成功率比企業平均高出約 10 個百分點。

On the right-hand side of this slide, we provide a few recent examples of cross-sell wins. The first is a powertrain sold to a cement manufacturer valued at approximately $3 million. The harsh operating conditions in the cement industry translates to significant estimated lifetime aftermarket sales worth about $12 million, which come with nicely accretive margins.

在這張投影片的右側，我們提供了一些最近的交叉銷售成功案例。第一個是賣給水泥製造商的動力系統，價值約 300 萬美元。水泥產業嚴酷的經營條件意味著其終身售後市場銷售額預計高達約 1,200 萬美元，利潤率也隨之大幅成長。

We won by making it easier for the customer to build out a new plant by receiving an engineered solution optimized for efficiency and durability versus individual power transmission components that the customer would have to assemble.

我們透過為客戶建造新工廠提供了針對效率和耐用性進行最佳化的工程解決方案，而無需客戶自行組裝單獨的動力傳輸組件，從而獲得了勝利。

The next two examples are of wallet share gains. As we discussed at our Investor Day in September of last year, only 15% of our power transmission customers buy more than one product category from us. Even though in most cases, they use most, if not all of the categories we sell. This creates tremendous opportunities for spend consolidation.

接下來的兩個例子是錢包份額的成長。正如我們在去年 9 月的投資者日上所討論的那樣，只有 15% 的動力傳輸客戶從我們這裡購買多個產品類別。儘管在大多數情況下，他們會使用我們銷售的大部分（如果不是全部）類別的產品。這為支出整合創造了巨大的機會。

The scale and scope of our product portfolio, plus significant digital investments that are making it easier to do business with us, position Regal Rexnord as a natural destination for spend consolidation. We expect the initial spend in new categories to ramp considerably as the customers validate our quality and production volume capabilities for the newly added products.

我們的產品組合的規模和範圍，加上大量的數位投資，使得與我們開展業務變得更加容易，使得 Regal Rexnord 成為支出整合的自然目的地。隨著客戶驗證我們新增產品的品質和產量能力，我們預期新類別的初始支出將大幅增加。

Margins on the new categories are at least our OEM fleet average. In short, we believe the value of our unrivaled scale and scope and power transmission is gaining momentum, evident in the orders and backlog growth we have been experiencing in IPS and AMC.

新類別的利潤率至少達到我們的 OEM 車隊平均水平。簡而言之，我們相信我們無與倫比的規模、範圍和電力傳輸的價值正在不斷增強，這從我們在 IPS 和 AMC 中經歷的訂單和積壓增長中可以看出。

And with that, I will turn the call over to Rob.

說完這些，我會把電話轉給羅布。

Thanks, Louis, and good morning, everyone. Now let's review our operating performance by segment. Starting with Automation and Motion Control, or AMC, sales in the second quarter were down 3.4% versus the prior year period on an organic basis, which was in line with our expectations.

謝謝，路易斯，大家早安。現在讓我們回顧一下我們各部門的經營績效。從自動化和運動控制（AMC）開始，第二季的銷售額與去年同期相比有機下降了 3.4%，這符合我們的預期。

The performance primarily reflects weakness in the medical end market, project timing and data center and temporary challenges related to rare earth magnet availability that limited shipments of certain higher-margin products in the medical and defense markets. These headwinds were largely offset by strength in aerospace, which tracked above our expectations.

這項績效主要反映了醫療終端市場、專案時間和資料中心的疲軟以及與稀土磁鐵供應相關的暫時挑戰，這些挑戰限制了醫療和國防市場某些高利潤產品的出貨量。這些不利因素在很大程度上被航空航太業的強勁表現所抵消，航空航太業的表現超出了我們的預期。

AMC's adjusted EBITDA margin in the quarter was 19.5%, which was below our expectations. The primary driver of the shortfall was delayed shipments of high-margin product containing rare earth magnets due to challenges securing these materials. We also encountered higher costs such as expedited freight to secure magnets. The other driver of the shortfall, while as severe, was related to the continued destocking of mix-rich products in the medical end market. We believe both of these impacts are temporary.

AMC 本季調整後的 EBITDA 利潤率為 19.5%，低於我們的預期。短缺的主要原因是由於難以確保這些材料的安全性，導致含有稀土磁鐵的高利潤產品的延遲。我們也遇到了更高的成本，例如為固定磁鐵而加急的運費。造成短缺的另一個因素雖然同樣嚴重，但與醫療終端市場混合豐富的產品的持續去庫存有關。我們相信這兩種影響都是暫時的。

Our ability to secure magnet has improved, and we feel that inventory levels in the medical channel are coming into balance, though most of the anticipated mix improvement tied to these factors will be realized in the fourth quarter. Orders in AMC in the second quarter were down 7.5% versus prior year on a daily basis for a book-to-bill of 1.0.

我們確保磁鐵的能力已經提高，並且我們認為醫療管道的庫存水準正在趨於平衡，儘管與這些因素相關的預期組合改善大部分將在第四季度實現。AMC 第二季的訂單量較上年同期每日下降 7.5%，訂單出貨比為 1.0。

The decline in AMC's orders on top of tough year-over-year comps largely reflects destocking in the medical market and timing of a large data center project order, which, as Louis indicated earlier, slipped into early July. Importantly, have we received the large data center order in the second quarter, AMC's second quarter orders would have been up slightly. AMC's July orders were up approximately 21.5%, reflecting multiple data center wins.

AMC 的訂單量在同比慘淡的情況下出現下滑，很大程度上反映了醫療市場的去庫存以及大型數據中心項目訂單的時間安排，正如路易斯之前指出的那樣，該項目訂單推遲到了 7 月初。重要的是，如果我們在第二季收到大型資料中心訂單，AMC 的第二季訂單將會略有上升。AMC 7 月訂單量成長約 21.5%，反映出多個資料中心的勝利。

As I wrap up this slide, we expect to keep building momentum in AMC based on our higher mix positive shippable backlog for the second half of the year, which is up mid-single digits versus this time last year and weighted to fourth quarter.

當我結束這張投影片時，我們預計 AMC 將繼續保持成長勢頭，這得益於我們下半年更高組合的正可發貨積壓訂單，與去年同期相比增長了中等個位數，並且加權到第四季度。

This, coupled with the momentum we are seeing in data center and additional order traction in humanoids we saw during the second quarter, suggests a higher shippable backlog entering 2026 as compared to 2025. Turning to Industrial Powertrain Solutions, or IPS.

再加上我們在第二季度看到的資料中心的發展勢頭和人形機器人訂單的額外增長，這表明與 2025 年相比，2026 年的可出貨積壓量將更高。轉向工業動力總成解決方案（IPS）。

Sales in the second quarter were down 4.4% versus the prior year period on an organic basis, which was modestly below our expectations. The decline largely reflects project timing impacts in metals and mining.

第二季銷售額較去年同期有機下降 4.4%，略低於我們的預期。這一下降很大程度上反映了金屬和採礦業項目時間表的影響。

As a reminder, we noted last quarter seeing very healthy orders in metals and mining, which continued this quarter. So the sales weakness in this end market is purely timing related. Adjusted EBITDA margin for IPS in the quarter was 26.9%, about 1 point above our expectation and up 110 basis points versus the prior year. The upside versus our guide was largely tied to stronger mix and disciplined cost management with gains versus prior year driven mainly by synergies. Orders in IPS on a daily basis were up 3% in the second quarter.

提醒一下，我們注意到上個季度金屬和採礦業的訂單非常健康，本季也延續了這種趨勢。因此，該終端市場的銷售疲軟純粹與時機有關。本季 IPS 的調整後 EBITDA 利潤率為 26.9%，比我們的預期高出約 1 個百分點，比去年同期高出 110 個基點。與我們的指導相比，上行主要得益於更強勁的產品組合和更嚴格的成本管理，而與前一年相比的收益主要得益於協同效應。第二季度，IPS 的每日訂單量成長了 3%。

Roughly half of this growth was tied to large project wins and is contributing to the segment's growing backlog. Bookings in our IPS segment are increasingly weighted to longer-cycle projects, given our strategic focus on selling Industrial Powertrain Systems.

其中約一半的成長與大型項目的中標有關，並導致該部門的積壓訂單不斷增加。鑑於我們的策略重點是銷售工業動力傳動系統，我們 IPS 部門的訂單越來越專注於週期較長的專案。

IPS's backlog is up 15% year to date, and is scheduled to begin converting at an increasing rate during the back half of this year and into 2026, which boosts our confidence in this segment's sales growth outlook. Book-to-bill in the second quarter for IPS was 1.01. In July, orders on a daily basis were roughly flat.

IPS 的積壓訂單今年迄今已成長了 15%，並計劃在今年下半年和 2026 年開始以更快的速度轉換，這增強了我們對該部門銷售成長前景的信心。IPS第二季訂單出貨比為1.01。7月份，每日訂單量基本持平。

Turning to Power Efficiency Solutions, or PES. Sales in the second quarter were up 6.5% versus the prior year on an organic basis, which was above our expectations. The result primarily reflects strong growth in residential HVAC, which was up almost 20% in the quarter as well as strength in commercial HVAC, both of which tracked above our expectations. Overall, we were very pleased with this segment's growth in the quarter.

轉向電源效率解決方案（PES）。第二季銷售額較上年同期成長 6.5%，超出我們的預期。這一結果主要反映了住宅暖通空調的強勁增長（本季度增長了近 20%）以及商用暖通空調的強勁增長，這兩項增長均超出了我們的預期。總體而言，我們對本季該部門的成長感到非常滿意。

As a reminder, we continue to model residential HVAC end-user volume flat to up slightly this year, implying significant declines in the back half and especially in fourth quarter, when we lap difficult compares tied to regulatory prebuy activity.

提醒一下，我們繼續預測今年住宅 HVAC 終端用戶數量將持平或略有上升，這意味著下半年，尤其是第四季度將出現大幅下降，屆時我們將進行與監管預購活動相關的艱難比較。

The adjusted EBITDA margin in the quarter for PES was 17.1%, which was above our expectation and up 1 point versus the prior year period, aided by higher volumes and strong cost management. Orders in PES for the second quarter were down 5.4% on a daily basis, which is in line with our expectations, given anticipated headwinds in resi HVAC. Book-to-bill in the quarter for PES was 0.9.

PES 本季調整後的 EBITDA 利潤率為 17.1%，高於我們的預期，較去年同期上升 1 個百分點，這得益於銷量增加和強大的成本管理。第二季 PES 訂單日均下降 5.4%，考慮到住宅 HVAC 領域預期的阻力，這符合我們的預期。本季 PES 的訂單出貨比為 0.9。

Daily orders for PES in July were down 3.6%, also consistent with our expectations related to resi HVAC destocking. On Slide 10, we are providing an update on our balance sheet and net leverage ratios in light of an accounts receivable securitization program we completed in the second quarter that allowed us to accelerate paying down our debt.

7 月 PES 的每日訂單下降了 3.6%，這也符合我們對住宅 HVAC 去庫存的預期。在第 10 張投影片上，我們根據第二季完成的應收帳款證券化計畫更新了我們的資產負債表和淨槓桿比率，這使我們能夠加快償還債務。

The facility, which closed on June 30, totals $400 million. Initial proceeds realized in the quarter were $368.5 million, all of which went towards paying down the vast majority of our variable bank debt. The decision to initiate the securitization facility is consistent with our mindset of regularly looking for new opportunities to enhance performance.

該設施於 6 月 30 日關閉，總價值 4 億美元。本季實現的初始收益為 3.685 億美元，全部用於償還我們絕大部分的浮動銀行債務。啟動證券化工具的決定與我們定期尋找新機會來提高績效的理念一致。

The facility provides a range of benefits, as outlined on this slide. First and foremost, it is accretive to adjusted earnings and free cash flow by providing approximately $4 million in net annualized interest savings.

正如本幻燈片所概述的，該設施提供了一系列好處。首先，它透過提供約 400 萬美元的淨年化利息節省，增加了調整後的收益和自由現金流。

We expect almost $2 million in net interest savings in the second half of this year. In addition, the facility enables access to cash from outstanding receivables on an expedited basis, which enhances our working capital profile. It also improves our debt to equity and certain leverage ratios.

我們預計今年下半年淨利息將節省將近 200 萬美元。此外，該工具使我們能夠快速獲得未償應收帳款的現金，從而增強我們的營運資金狀況。它也改善了我們的債務權益比和某些槓桿率。

Going forward, we remain committed to strengthening our balance sheet with a focus on deleveraging to our long-term target range of 1.5 to 2 times. Additional details on securitization -- on the securitization facility are available in our 10-Q.

展望未來，我們將繼續致力於加強我們的資產負債表，重點是將槓桿率降低至 1.5 至 2 倍的長期目標範圍。有關證券化—證券化工具的更多詳細信息，請參閱我們的 10-Q。

Turning to the outlook. Today, we are reaffirming the midpoint of our 2025 adjusted earnings per share guidance and narrowing our adjusted EPS range by $0.10 on each end to a range of $9.70 to $10.30. Our principal assumptions are outlined in the table on the left-hand side of this slide.

轉向展望。今天，我們重申2025年調整後每股盈餘指引的中點，並將調整後每股盈餘區間兩端各縮減0.10美元，至9.70美元至10.30美元。我們的主要假設概述於本投影片左側的表格中。

Notably, our sales guidance is rising modestly, primarily to reflect improved translational FX rates and to incorporate the impact of tariff-related pricing. Our adjusted EBITDA margin is now expected to be 22.5% versus our prior assumption of 23%, reflecting the impact of transactional FX, tariffs and our latest view on margins in AMC, which I will elaborate on shortly.

值得注意的是，我們的銷售預期正在小幅上升，主要是為了反映匯率的改善以及納入關稅相關定價的影響。我們調整後的 EBITDA 利潤率目前預計為 22.5%，而我們先前假設為 23%，這反映了交易外匯、關稅以及我們對 AMC 利潤率的最新看法的影響，我將在稍後詳細說明。

The tariff impact reflects neutralizing tariffs on a dollar basis, which has a slightly dilutive impact to margin. We still expect to be margin neutral by the middle of next year. Now as it relates to the low versus the high end of our range, let me share a few thoughts on how we are assessing the risks and opportunities.

關稅影響反映了以美元為基礎的中和關稅，這對利潤率有輕微的稀釋作用。我們仍然預計到明年年中利潤率將保持中性。現在，由於它涉及到我們的範圍的低端和高端，讓我分享一些關於我們如何評估風險和機會的想法。

Aside from market performance, one factor impacting the low end of our range is a slower pace of recovery associated with rare earth magnet availability from China. At the high end of the range, we see revenue upside from the recent data center wins and other potential data center opportunities in our funnel, along with further upside if the ISM turned positive.

除了市場表現之外，影響我們價格範圍低端的一個因素是中國稀土磁鐵供應復甦速度較慢。在該範圍的高端，我們看到近期資料中心的勝利和我們通路中的其他潛在資料中心機會將帶來收入上漲，如果 ISM 轉為正值，收入還會進一步上漲。

We have also made small adjustments to certain below-the-line items as detailed in the table. Regarding interest expense, please note that there are specific accounting rules for recording the interest expense associated with the accounts receivable securitization facility, which we have summarized on a slide in the appendix of this presentation to help with financial modeling.

我們也對錶中詳述的某些線下項目進行了小幅調整。關於利息費用，請注意，記錄與應收帳款證券化工具相關的利息費用有特定的會計規則，我們已在本簡報附錄中的幻燈片中進行了總結，以幫助進行財務建模。

Overall, we are continuing to take a measured approach to guidance for the year, considering the ongoing macroeconomic and geopolitical uncertainties. On Slide 12, we are updating our expectations regarding tariff impacts. The gross annual unmitigated cost impact from tariffs in place at the time of our first quarter earnings release on May 5 was $130 million.

總體而言，考慮到持續的宏觀經濟和地緣政治不確定性，我們將繼續採取審慎的態度來製定年度指導方針。在第 12 張投影片上，我們更新了有關關稅影響的預期。截至 5 月 5 日我們發布第一季財報時，關稅造成的年度未緩解成本總影響為 1.3 億美元。

Today, we estimate that value has fallen to approximately $125 million, broken down as outlined on the table. 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.

今天，我們估計價值已降至約 1.25 億美元，具體細節如表所示。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。

On the right-hand side of the slide, we lay out our principal mitigation actions, which we shared last quarter and which our teams continue to execute with a sense of urgency. Before I leave this slide, I would also like to note that to date, we have not seen clear signs of tariff-related demand deterioration in our business.

在投影片的右側，我們列出了我們上個季度分享的主要緩解措施，我們的團隊將繼續以緊迫感執行這些措施。在結束這張投影片之前，我還想指出，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。

While there have been scattered examples of customers slowing their decision-making or delaying projects in the face of tariff or other macro uncertainties, in aggregate, these actions have only had a modest impact on our business today. Even so, this is something we are continuing to monitor closely, and we intend to provide an update if and when material new information becomes available.

雖然有零星的例子表明，客戶在面對關稅或其他宏觀不確定性時放慢決策或推遲項目，但總體而言，這些行為對我們目前的業務影響不大。即便如此，我們仍將繼續密切關注此事，一旦有重大新訊息，我們打算提供更新。

On slide 13, we provide more specific expectations for our performance by segment on revenue and adjusted EBITDA margin for third quarter and for the full year. The primary change since our last update is that we now expect AMC's 2025 adjusted EBITDA margin to be in a range of 20.5% to 22.5%, which is down roughly 150 basis points versus prior expectations.

在第 13 張投影片上，我們對第三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。自上次更新以來，主要的變化是，我們現在預計 AMC 2025 年調整後的 EBITDA 利潤率將在 20.5% 至 22.5% 之間，比之前的預期下降約 150 個基點。

This change largely reflects higher costs incurred to procure rare earth magnets, a footprint optimization project that we pushed in 2026 due to ongoing tariff uncertainty as well as weaker mix. The negative mix impacts related to softer sales in medical and the latest margin profile of our backlog scheduled to ship in the second half.

這項變更很大程度上反映了採購稀土磁鐵的成本增加，這是一項足跡優化項目，由於持續的關稅不確定性以及產品組合較弱，我們在 2026 年推動了該項目。負面綜合影響與醫療銷售疲軟以及計劃於下半年發貨的積壓產品的最新利潤狀況有關。

However, once we move past these temporary headwinds, we continue to see a path to AMC adjusted EBITDA margins in the 24% to 26% range, consistent with the midterm guidance provided at our 2024 Investor Day.

然而，一旦我們克服這些暫時的逆風，我們將繼續看到 AMC 調整後的 EBITDA 利潤率在 24% 至 26% 之間，這與我們在 2024 年投資者日提供的中期指導一致。

While not as impactful, but of note, IPS revenue is expected to be up low single digits in Q3 and low to mid-single digits in the second half. This implies fourth quarter will be the strongest growth quarter for this segment, largely due to the longer cycle engineered to order content in the backlog.

雖然影響不大，但值得注意的是，IPS 收入預計在第三季將成長低個位數，在下半年將成長低到中等個位數。這意味著第四季度將成為該領域成長最強勁的季度，這主要是因為積壓訂單內容的訂購週期更長。

Also of note, we expect PES to be up low single digits in third quarter, but down low single digits in the back half, implying fourth quarter will be down low to mid-single digits. Embedded in these assumptions, the resi HVAC business is expected to be down over 20% in the second half and down over 25% in the fourth quarter.

另外值得注意的是，我們預計 PES 在第三季將上漲低個位數，但在下半年將下跌低個位數，這意味著第四季將下跌低至中等個位數。基於這些假設，預計住宅 HVAC 業務下半年將下降 20% 以上，第四季將下降 25% 以上。

Finally, as I wrap up my prepared remarks, I'd like to share a few high-level thoughts on our performance and outlook. In short, we believe the underlying momentum in our business is positive and improving, given our growing backlog.

最後，在我結束準備好的演講時，我想就我們的表現和前景分享一些高層的想法。簡而言之，鑑於我們不斷增長的積壓訂單，我們相信我們業務的潛在勢頭是積極的並且正在改善。

We also still have many opportunities to create shareholder value, which include ample levers to accelerate growth, including cross-sell synergies and a clear shift to selling a richer mix of subsystem solutions, a greater emphasis on new product launches and related vitality, over $70 million of remaining cost synergies and further progress shifting our capital structure to equity as we generate cash and pay down our debt.

我們仍有許多機會為股東創造價值，其中包括充足的槓桿來加速成長，包括交叉銷售協同效應和明顯轉向銷售更豐富的子系統解決方案組合，更加重視新產品的推出和相關活力，超過 7000 萬美元的剩餘成本協同效應，以及在我們產生現金和償還債務的同時將我們的資本結構進一步轉變為股權。

In summary, we are confident we can create value for our shareholders in 2025 and many years to come. And with that, operator, we are now ready to take questions.

總而言之，我們有信心在2025年及未來許多年為股東創造價值。接線員，現在我們可以回答問題了。

(Operator Instructions) Mike Halloran, Baird.

（操作員指示）麥克·哈洛倫，貝爾德。

Can you give some context on what you're expecting in the back half of the year from an end market recovery perspective at the midpoint? I know Rob gave the highs and the lows, but also what you're expecting from an order perspective and any variability you're seeing across the segments?

您能否從中期終端市場復甦的角度，對下半年的情況做一些預測？我知道 Rob 給出了高潮和低谷，但從訂單角度您有何期待，以及您在各個細分市場中看到的任何變化？

Yes, Mike, this is Louis, and thanks for the question. We don't think much has changed from a market situation. Maybe a bit weaker in medical space, but that will -- we expect to recover at the end of the year. What has been strong, continues to be strong. So energy, aerospace and defense, data center, we feel those are pretty solid markets and will continue to be so.

是的，麥克，我是路易斯，謝謝你的提問。我們認為市場情況並沒有太大變化。醫療領域可能會弱一些，但我們預計年底將會復甦。曾經強大的，將繼續強大。因此，我們認為能源、航空航太和國防、資料中心都是相當穩固的市場，並且將繼續如此。

And then from the standpoint of general industrial, so tied to ISM. We do expect that to tick up towards 2026, but we have not assumed any improvement in general industrial. And then you heard from Rob the viewpoint around HVAC, especially residential HVAC and then commercial HVAC, we expect to be relatively flat. Now from an order perspective, though, I think -- a couple of things I would say here. We are expecting orders to be up mid-single digit in the second half.

然後從一般工業的角度來看，它與 ISM 息息相關。我們確實預計到 2026 年這一數字將會上升，但我們並不認為整體工業會出現任何改善。然後你聽到了 Rob 對 HVAC 的觀點，特別是住宅 HVAC 和商用 HVAC，我們預計會相對穩定。不過，現在從秩序的角度來看，我想──我想在這裡說幾件事。我們預計下半年訂單量將成長中個位數。

Mid-single digit in IPS, up low double digit in AMC, really driven by the accelerating markets, data center in particular. And then PES will likely be relatively flat to slightly up. That's how we're thinking about it based on the momentum we're seeing coming out of Q2, our discussions with our customers and where we see the business performing for the second half. What that should translate to and we're forecasting is revenue up in the second half for Regal in low single digits and going into 2026. Hopefully, that helps, Mike.

IPS 成長了中等個位數，AMC 成長了低兩位數，這實際上是受到加速發展的市場（尤其是資料中心）的推動。然後PES可能會相對平穩或略有上升。這是我們根據第二季度的發展勢頭、與客戶的討論以及對下半年業務表現的預測而做出的想法。這意味著，我們預測 Regal 下半年的營收將以個位數低點成長，並持續到 2026 年。希望這對你有幫助，麥克。

No, that does. That does. And then I guess twofold question and admittedly unrelated. Can you just give some context on the exposure to the rare earth magnets? It seems like a bigger component than I was expecting in the portfolio. And then also give some context to the data center wins and why those are starting to roll through now, all else equal and what the differentiation has been sort of why you're getting those wins?

不，確實如此。確實如此。然後我猜這是一個雙重問題，而且不可否認的是，它們毫無關聯。您能否介紹一下有關稀土磁鐵暴露的背景？它似乎是投資組合中比我預期的更大的組成部分。然後還要介紹一下資料中心勝利的背景，以及為什麼這些勝利現在開始顯現，在其他所有條件相同的情況下，你們獲得這些勝利的差異是什麼？

Yes. Happy to provide a little bit more color there. So rare earth magnets, from an enterprise perspective, actually, rare earth magnets are in products that represent only about 1% of our sales. However, in the quarter, we certainly experienced challenges. And actually, we had to shut down the facility for a couple of weeks in the quarter because we did not have inventory.

是的。很高興能提供更多的色彩。因此，從企業角度來看，稀土磁鐵實際上只占我們產品銷售額的 1% 左右。然而，在本季度，我們確實遇到了挑戰。實際上，由於沒有庫存，我們不得不在本季度關閉工廠幾週。

And this is completely due to the challenges of procuring magnets given the volatile trade policy situation with China. We have largely addressed these challenges at this point and expect to catch up on these shipments in the back half, especially in fourth quarter.

這完全是由於與中國不穩定的貿易政策情況導致採購磁鐵面臨挑戰。目前，我們已經基本解決了這些挑戰，並預計在下半年，特別是第四季度趕上這些出貨量。

And so even with the 1% of sales exposure, we expect to close this to a neutral impact in the year, but did have an impact to us in Q2, will ramp in Q3 and then will accelerate for Q4. So that's rare earth, Mike. Moving to data center.

因此，即使銷售額佔比為 1%，我們預計今年的影響也會接近中性，但在第二季度確實對我們產生了影響，在第三季度將有所增加，然後在第四季度加速。這就是稀土，麥克。移至資料中心。

Honestly, we're well positioned in the data center market. And this is a market that you win large projects. And bluntly, in the first half of the year, we've been down on orders in the data center market as we've been working on these large projects and winning these projects. The funnel is significant. Our differentiation is around our ability to customize the solution of controls in switchgear, in parallel and switchgear.

老實說，我們在資料中心市場佔有有利地位。這是一個可以贏得大型專案的市場。坦白說，今年上半年，由於我們一直在進行這些大型項目並贏得這些項目，我們在資料中心市場的訂單一直在下降。漏斗很重要。我們的優勢在於我們能夠客製化開關設備、並聯設備和開關櫃的控制解決方案。

This specific project was a nice win for us in our AMC segment, in our power management business, in particular. And we expect it to be a momentum in the space for us to grow further. So a nice win for us. It was the first of what we expect to be maybe four or five additional orders over the next 6 to 12 months.

這個專案對於我們的AMC部門，特別是電源管理業務來說，是一個巨大的勝利。我們期望它能成為我們進一步發展的動力。這對我們來說是一次漂亮的勝利。這是我們預計在未來 6 到 12 個月內可能還會接到四到五個訂單中的第一個。

And I want to clarify also that it's one order, but we actually won two other orders in July, which gave us the 21% orders growth, and we expect some strength in, at this point, orders to be up low double digits in the second half, a lot of that driven by data center. So hopefully that was helpful, Mike, and happy to answer any other questions.

我還想澄清一下，這只是一個訂單，但實際上我們在 7 月贏得了另外兩個訂單，這使我們的訂單增長了 21%，我們預計下半年的訂單量將出現一些強勁增長，達到兩位數左右，其中很大一部分是由數據中心推動的。所以希望這對你有幫助，麥克，並且很樂意回答任何其他問題。

Kyle Menges, Citigroup.

花旗集團的凱爾孟格斯 (Kyle Menges)。

Kyle MengesAnalyst It seems like gaining momentum in IPS with the backlog up year-to-date and expecting, I think, to be exiting the year, it sounds like, just in the fourth quarter for IPS organic growth in that kind of mid-single-digit range.

Kyle Menges 分析師 IPS 似乎正在獲得發展勢頭，年初至今積壓的訂單不斷增加，我認為，預計 IPS 有機增長率將在第四季度達到中等個位數。

So I'm curious just what's the expectation for first half '26? Should we be extrapolating that 4Q run rate into the first half of next year? And then it seems like July orders, I think you said were flattish in IPS, but you said to expect orders up mid-single digits in IPS. So I guess just what's giving confidence in the reacceleration, I suppose, from July?

所以我很好奇對 26 年上半年的期望是什麼？我們是否應該將第四季的運行率推斷到明年上半年？然後看起來好像 7 月份的訂單量，我想您說過 IPS 的訂單量持平，但您說過預計 IPS 的訂單量將增長中等個位數。那麼，我猜是什麼讓人們對 7 月的經濟重新加速充滿信心呢？

Yes. A couple of things there, Kyle, and thanks for the question. Specific to next year, it's a little early for us to be providing a forecast. What I did say in my prepared remarks is that we would hope to enter or we expect to enter next year with low single-digit growth. And I think that's a good measure at this point.

是的。凱爾，這裡有幾件事，謝謝你的提問。具體到明年，我們現在做出預測還為時過早。我在準備好的發言中確實說過，我們希望進入或預計明年將實現低個位數成長。我認為這是目前一個很好的措施。

Specific to IPS, I always say with my team, one month does not make a trend, but you need to hit the quarter. And so I think that's the discussion around IPS for the month of July, with no concern on flat orders growth. Again, that's after 3% in -- roughly 3% in Q2, 8% in Q1, we expect that just to be a 1 month. And then for the quarter, we'll still hit a mid-single digit. So we're not concerned at all on that point.

具體到IPS，我總是和我的團隊說，一個月並不能形成趨勢，但你需要達到一個季度的趨勢。因此，我認為這就是 7 月圍繞 IPS 的討論，無需擔心訂單成長持平。再說一次，這是在第二季度增長 3% 之後——大約是第二季度增長 3%，第一季增長 8%，我們預計這只是 1 個月。而對於本季來說，我們仍將達到中等個位數。所以我們對此一點也不擔心。

Our funnel is strong in IPS. We talked about this on the call that the cross-sell funnel being $300 million, the majority of that is in IPS. So again, what gives us confidence on the orders is we see it in our funnel. And if ISM improves a bit more, we'll see further orders growth. And just to close that off, again, our backlog is up 15% year to date in IPS. And so that's what's giving us optimism. Hopefully that helps, Kyle.

我們的管道在 IPS 方面非常強大。我們在電話會議上談到了這一點，交叉銷售管道為 3 億美元，其中大部分來自 IPS。所以，再次強調，讓我們對訂單充滿信心的是我們在漏斗中看到了它。如果 ISM 進一步改善，我們將看到訂單進一步成長。最後，再說一次，今年迄今為止，我們的 IPS 積壓訂單增加了 15%。這就是讓我們感到樂觀的原因。希望這對你有幫助，凱爾。

Yes, that's helpful. And then, I mean, it seems like really two trends emerging in IPS and in AMC. So you have an IPS sounds like delivering more systems versus components. And then AMC, really the data center strength, and it sounds like it could actually be a pretty meaningful contributor to revenues.

是的，這很有幫助。然後，我的意思是，IPS 和 AMC 似乎真的出現了兩個趨勢。因此，IPS 聽起來像是提供更多的系統而不是組件。然後是 AMC，真正的資料中心實力，聽起來它實際上可以成為收入的一個相當有意義的貢獻者。

And I'm just curious on both of those trends you're seeing in IPS delivering more systems, data center and AMC. How should we think about that impacting margins? Is that a positive or negative mix impact for your margins in those segments?

我只是對您在 IPS 提供更多系統、資料中心和 AMC 方面看到的這兩種趨勢感到好奇。我們該如何看待這對利潤的影響？這對這些領域的利潤率產生正面還是負面的影響？

Yes. Thanks for the question. I mean a couple of things. It's -- systems tend to be at our average margins, perhaps slightly above because we do bring value here, the value around a complete solution that solves the problem with higher levels of reliability in the offering. The other piece of the story, I would say, is it tends to be highly technically beneficial.

是的。謝謝你的提問。我指的是幾件事。系統往往處於我們的平均利潤率，可能略高一些，因為我們確實在這裡帶來了價值，圍繞著一個完整的解決方案的價值，該解決方案可以解決問題，並提供更高水平的可靠性。我想說的是，這個故事的另一部分是，它在技術上往往非常有益。

So hopefully, you saw an announcement we just came out with yesterday of a partnership with ABB around providing a seventh access automated solution. That's a great example of the value we bring in our systems. And again, I think the best way to model it would be at peer margins, but meaning peer average of the rest of our portfolio margins, but certainly, we bring a lot of value in this.

所以希望您看到我們昨天剛發布的與 ABB 合作提供第七個訪問自動化解決方案的公告。這是我們系統所帶來的價值的一個很好的例子。再次強調，我認為最好的建模方式是採用同業利潤率，但這意味著我們投資組合中其餘產品的同業平均利潤率，但可以肯定的是，我們從中帶來了很多價值。

Of course, then the long-term benefit for us is the aftermarket. And then any component break, the aftermarket margin is even more positive.

當然，對我們來說，長期利益是售後市場。然後任何零件損壞，售後市場的利潤率就會更高。

Hopefully, that's helped, Kyle.

希望這對你有幫助，凱爾。

Yes. And then sorry, the data center positive or negative to mix in AMC?

是的。然後抱歉，資料中心在 AMC 中混合是正面還是負面？

I apologize. No, it's positive. It's positive to mix. It's a benefit for that business.

我很抱歉。不，這是積極的。混合是積極的。這對該企業來說是一個好處。

Jeff Hammond, KeyBanc Capital Markets.

KeyBanc 資本市場公司的 Jeff Hammond。

Just was hoping you could quantify the rare earth impact on 2Q both revenue and profit. And then it sounds like you're getting the revenue back, but there's some added maybe shipping or more purchase costs. How should we think about that impact into the second half as well?

只是希望您能量化稀土對第二季收入和利潤的影響。然後聽起來你好像收回了收入，但可能會增加一些運費或更多的購買成本。我們該如何看待這種影響對下半年的影響？

Yes. Thanks, Jeff. First of all, in the second quarter, there's about $6 million of impact, which is really about two-thirds of the margin miss that we saw in AMC within that quarter. Now we do expect to mostly catch up for the year. However, there will continue to be some costs with some of our mitigation actions that will remain. So roughly about $5 million in the full year is what we're talking about.

是的。謝謝，傑夫。首先，第二季的影響約為 600 萬美元，這實際上相當於 AMC 該季度利潤率損失的三分之二。現在我們確實希望今年能夠基本趕上進度。然而，我們的一些緩解措施仍將產生一些成本。所以我們談論的是全年大約 500 萬美元。

And it had about a $10 million sales impact in the quarter, Jeff.

傑夫，這對本季的銷售額產生了約 1000 萬美元的影響。

Okay. That's helpful. And then just a couple of cleanups. The rest of world tariff doubling, I just want to understand that a little bit better. And then with the tax law changes, any kind -- I think you reiterated your free cash flow, we've seen a number of companies kind of see a benefit from tax bill on cash. So just either near term or long term, any change there?

好的。這很有幫助。然後只需進行幾次清理。世界其他地區的關稅翻倍，我只是想更了解這一點。然後隨著稅法的變化，任何類型——我想你重申了你的自由現金流，我們已經看到許多公司從現金稅單中獲益。那麼無論是短期或長期，有什麼改變嗎？

Yes. So from a rest of world perspective, it's really just where our manufacturing aligns with where the tariffs are now falling out. So a couple of comments there. India, Thailand, those are manufacturing locations for us. Now I'll also comment that, again, rest of world is relatively low, and it shows you that our strategy around in region, for region has really paid off.

是的。因此，從世界其他地區的角度來看，這實際上只是我們的製造業與關稅下降的程度一致。這裡有幾則評論。印度、泰國都是我們的生產基地。現在我還要評論一下，世界其他地區的比例相對較低，這表明我們在該地區的策略確實取得了成效。

Secondly, both of those plants happen to be plants or that we produce product in other locations as well. And so what we're framing up for you is the impact, given our current supply chain. But what we're trying to do, of course, is mitigate and mitigate around where we produce, where we supply from before we go and look just for price. And so those two in particular, we're going to be able to work through fairly easily, I'd say.

其次，這兩家工廠恰好也是我們在其他地方生產產品的工廠。因此，考慮到我們目前的供應鏈，我們為您描繪的是其影響。但當然，我們在嘗試做的是，在僅僅關注價格之前，先緩和一下我們的生產地和供應地。因此，我想說，特別是這兩個問題，我們將能夠相當輕鬆地解決。

And on the tax side, as it relates to the One Big Beautiful Bill Act, we do -- we're still evaluating the impact. But our initial view is that we would see a modest immaterial cash tax benefit this year with a neutral impact to the tax rate. So it is embedded in our guide. We do see, like I said, a modest benefit on cash taxes. But we also see a bit of headwind related to tariff-related timing and how that might impact cash in the year.

在稅收方面，由於它與《一項大美麗法案》有關，我們仍在評估其影響。但我們最初的看法是，今年我們將看到適度的非物質現金稅收優惠，對稅率的影響為中立。因此它嵌入在我們的指南中。正如我所說的，我們確實看到了現金稅的適度收益。但我們也看到了與關稅相關時間相關的一些阻力，以及這可能如何影響今年的現金。

And so those kind of offset the way we're seeing it today, but we still are holding to our $700 million of free cash flow outside of the ARS that we talked about today.

因此，這些抵消了我們今天看到的情況，但我們仍然保留著我們今天談到的 ARS 之外的 7 億美元自由現金流。

Julian Mitchell, Barclays.

巴克萊銀行的朱利安·米切爾。

Maybe start with the AMC division. So sort of three bits of it. I wondered if you could just give any brief comments on, one, on the rare earth issue. So is that plant that was shut now back to close to full production? And then on medical, I think it's 10% of AMC revenue.

也許從 AMC 部門開始。大致分為三部分。我想知道您是否可以就稀土問題發表一些簡短的評論。那麼，之前關閉的工廠現在是否已經恢復滿載生產了？然後在醫療方面，我認為它佔 AMC 收入的 10%。

Sort of do you have a good line of sight as to customer inventories sort of real-time? Or is it opaque? And then the automation part, which is a third of AMC, I'm not sure you've talked too much about that so far. I know that the recovery there was a big part of the sort of Q4 EBITDA ramp in AMC. So maybe just how are you seeing sort of demand and project conversion into revenue there?

您是否能夠即時了解客戶庫存狀況？還是它是不透明的？然後是自動化部分，佔 AMC 的三分之一，我不確定您到目前為止是否談論過太多。我知道那裡的復甦是 AMC 第四季 EBITDA 成長的重要組成部分。那麼，您如何看待那裡的需求和項目轉化為收入？

Great. Thanks, Julian. Let me take the first part of your question, which was related to the plant shift that I believe you're questioning. What that was? It was a footprint-related shift that we had. Isn't it?

偉大的。謝謝，朱利安。讓我來回答您問題的第一部分，我相信這與您所質疑的工廠轉移有關。那是什麼？這是我們進行的與足跡相關的轉變。不是嗎？

Actually, let me jump in. This is around the plant that we shut down in Q2 because of rare earth.

實際上，讓我插話一下。這是我們在第二季因稀土問題而關閉的工廠。

Got it.

知道了。

And Julian, that plant is back up and running at this time. It is not at full volume. We do have flow of rare earths at this point. And so this is why we are guiding and what's in our guidance is starting of recovery through Q3, feeling pretty good, but we will still stand a little bit in Q3 to make up that $10 million we talked about. But that will catch up through Q4.

朱利安，該工廠目前已恢復運作。音量不是最大。目前我們確實有稀土流動。這就是我們給出指導的原因，我們的指導是第三季度開始復蘇，感覺相當不錯，但我們在第三季度仍會保持一定水平，以彌補我們談到的 1000 萬美元。但這種情況將在第四季得到解決。

Specific to the medical market, it's actually not as opaque as you would think, but it's a little opaque sometimes when your OEMs think they have less inventory than they really do. And so that has been -- we have very close relationships with our OEMs here. We partner with them well.

具體到醫療市場，它實際上並不像你想像的那麼不透明，但有時當你的 OEM 認為他們的庫存比實際的少時，它就會有點不透明。因此，我們與這裡的 OEM 保持著非常密切的關係。我們與他們合作得很好。

So we feel pretty good, though, about what we're seeing is their demand and our supply that this will balance out as we exit this year and go into next year. And then specific to automation, Julian, great question, and thanks for it because this has gained momentum for us and continues to grow for us.

因此，我們對所看到的他們的需求和我們的供應感到非常滿意，隨著今年的結束和明年的到來，這種平衡將會實現。然後具體到自動化，朱利安，這個問題問得很好，謝謝你，因為這為我們帶來了動力，並且會繼續為我們發展。

Our automation was up about 4 -- our 12-month order rolling rate in discrete automation is up 4.5%. We see our backlog up low double digits for shipment in the second -- for shipments and is up year over year, 12%. And so you're right, that is what's also giving us a little bit of confidence or is giving us confidence in the margin step in the second half. Hopefully, that answers your questions.

我們的自動化程度提高了約 4%——離散自動化的 12 個月訂單滾動率提高了 4.5%。我們看到，第二季的積壓訂單出貨量年增了 12%，達到兩位數。所以你說得對，這也給了我們一點信心，或是讓我們對下半年的利潤率提升充滿信心。希望這能回答您的問題。

That's very helpful, Louis. And then one quick follow-up, maybe for you, Louis, again, on the sort of environment, I guess, of conversion of orders to revenue because you and many of your sort of short-cycle industrial brethren have seen good orders or better orders for the best part of the year, but the revenues seem stuck in the mud still. So I suppose maybe flesh out why you think that's happening? And is there maybe less visibility than in the past on the conversion rate of orders into revenue?

這非常有幫助，路易斯。然後，路易斯，我想再次快速跟進一下您關於訂單轉化為收入的環境的問題，因為您和您的許多短週期工業同行在一年中的大部分時間裡都看到了良好的訂單或更好的訂單，但收入似乎仍然陷入困境。所以我想也許您可以解釋為什麼您認為會發生這種情況？訂單轉化為收入的轉換率是否比過去更不透明？

Yes. So Julian, and perhaps we can do a better job of trying to cut the data to provide input here. But I guess I would caution you on thinking we're short-cycle industrial anymore. As parts of our business, for sure, PES, short cycle. IPS and AMC moving more longer cycle.

是的。所以朱利安，也許我們可以做得更好，嘗試剪切數據來提供輸入。但我想我應該提醒你，不要再認為我們是短週期工業了。作為我們業務的一部分，PES 肯定是短週期的。IPS 和 AMC 的週期較長。

So the majority of this -- the challenge of being able to translate orders into sales are in our larger projects, our system solutions are longer cycle businesses. And so this is -- we feel like we're on the precipice of the second half showing single digit -- mid-single-digit growth in both IPS and AMC.

因此，將訂單轉化為銷售額的挑戰主要在於我們的大型項目，我們的系統解決方案是週期較長的業務。因此，我們感覺我們正處於下半年的邊緣，IPS 和 AMC 都呈現個位數到中等個位數的成長。

And so it's starting to move in the right direction. But it's all for me linked to -- our order strength in both AMC and IPS have come from longer cycle projects and applications. Hopefully, that helped.

所以它開始朝著正確的方向發展。但對我來說，這一切都與——AMC 和 IPS 的訂單實力來自於更長週期的項目和應用有關。希望這能有所幫助。

Saree Boroditsky, Jefferies.

薩裡·博羅迪茨基，傑弗里斯。

Just building on the data centers, could you just talk a little more about your competitive position? And it was -- are you seeing demand broad-based? Or are you levered to one customer, as I think you mentioned several large orders within the same customer?

僅就資料中心而言，您能否再談談您的競爭地位？而且—您是否看到廣泛的需求？或者您是否只向一位客戶傾斜，因為我認為您提到了同一個客戶的幾份大訂單？

Yes. No, it's -- yes, sorry, thank you for the question. So let me take the second half of the question first. We did win a few orders in July that we feel good with different customers, so we are not levered to one. But we called out the $35 million in particular because we've been working on that project for a while and expected that project to close in second quarter, but instead closed in July.

是的。不，是的，抱歉，感謝您的提問。那麼讓我先回答問題的後半部。我們確實在七月贏得了一些訂單，我們對不同的客戶感覺良好，因此我們不會只依賴某個客戶。但我們特別提到了 3500 萬美元，因為我們已經從事該專案一段時間了，預計該專案將在第二季完成，但卻在 7 月就完成了。

I would tell you that our funnel has never been stronger in the data center space. Certainly, with the growth of the hyperscale data center, we are nicely positioned. Our value prop really is around our ability to provide customized solutions and customized controls.

我想告訴你，我們的漏斗在資料中心領域從未如此強大。當然，隨著超大規模資料中心的成長，我們已經處於有利地位。我們的價值主張實際上在於我們提供客製化解決方案和客製化控制的能力。

Some of our larger peers, because we do compete with some large peers here, tend to be a bit more focused on standard offering. But our value prop is our engineers partnering with the data center designers around custom solutions, which is valued. So we feel well positioned here and expect it to be a positive growth tailwind for us into '26. Hopefully, that helped.

由於我們確實與一些大型同行競爭，因此我們的一些較大的同行往往更注重標準產品。但我們的價值主張是我們的工程師與資料中心設計師圍繞客製化解決方案進行合作，這是有價值的。因此，我們覺得自己處於有利地位，並預期這將成為我們進入26年的積極成長順風。希望這能有所幫助。

Yeah, I appreciate the color. And then again, like thanks for all the detail on the orders. The data center obviously helped in July. So could you just provide some color on what you saw excluding this large order? And just anything on underlying demand trends within July because I think you provided the quarter, but not just July without it.

是的，我很欣賞這個顏色。再次感謝您提供有關訂單的所有詳細資訊。資料中心在七月顯然發揮了作用。那麼，您能否提供一些關於這筆大訂單以外的情況的詳細資訊？以及有關 7 月份潛在需求趨勢的任何信息，因為我認為您提供了季度數據，而不僅僅是 7 月份的數據。

I believe that the orders would be up slightly, excluding that large data center order in July.

我相信訂單會略有增加，但不包括七月的大型資料中心訂單。

Nigel Coe, Wolfe Research.

沃爾夫研究公司的奈傑爾·科伊。

Can we just talk about the AMC second half margin ramp? You've widened out the margin range for AMC. So I think we now have a 4-point spread on segment margins, I think, somewhere between 21% and 25%. Just given the backlog visibility, the rare earth metals sort of recovery. Maybe just talk about what's driving the high and low end of that range.

我們可以談談 AMC 下半年利潤率的成長嗎？您已經擴大了 AMC 的保證金範圍。所以我認為我們現在的細分利潤率有 4 個百分點的差距，大概在 21% 到 25% 之間。鑑於積壓訂單的可見性，稀土金屬有所復甦。也許只是談論一下是什麼推動了該範圍的高端和低端。

And then just maybe on the rare earth, it doesn't seem like from what we're hearing that, that's resolved for the US -- a lot of US manufacturers. So just maybe talk about the nature of what you've achieved here in terms of, is it a multiyear sourcing agreement? Any help there would be good.

然後也許就稀土問題而言，從我們聽到的消息來看，這個問題似乎並沒有為美國——許多美國製造商——解決。那麼，請您談談您在這裡所取得的成就的性質，這是一份多年的採購協議嗎？任何幫助都是好的。

Sure. Let me start by touching base on the AMC margin and the guidance that we put out. We did extend the range slightly to talk a little -- to kind of incorporate a little more of what we've been saying in terms of the rare earth exposure within AMC.

當然。首先，我想談談 AMC 的利潤率和我們發布的指導。我們確實稍微擴大了討論範圍——在某種程度上融入了我們在 AMC 內部稀土風險敞口方面所說的更多內容。

But the backlog -- I'm sorry, the back half, really, in particular, fourth quarter, where there's more of a ramp, reflects higher shippable backlog, up low double digits, if you will, better mix on that shippable backlog and also further progress catching up on deliveries of products with rare earth magnets, which we say we expect to neutralize by the end of the year. But again, a lot of that's coming in the fourth quarter.

但是積壓訂單——抱歉，實際上是後半年，特別是第四季度，增長幅度更大，反映了可發貨積壓訂單的增加，上升了兩位數，如果你願意的話，最好將可發貨積壓訂單進行混合，同時在追趕稀土磁鐵產品交付方面取得進一步進展，我們預計到今年年底將消除這一問題。但同樣，很多事情將在第四季發生。

And all of these tend to be higher margins. And so we also believe conditions in the medical market will start to normalize as we progress through the second half. And that has been a significant volume and margin headwind.

所有這些往往都具有更高的利潤率。因此，我們也相信，隨著下半年的到來，醫療市場的狀況將開始正常化。這對銷量和利潤造成了巨大的阻力。

So -- and also, finally, I'd say cost pressure in rare earth should also subside. You're paying premiums at this time above and beyond, and we believe that, that should come down as we move through the rest of the year.

所以——最後，我想說稀土的成本壓力也應該會減輕。您目前支付的保費超出了預期，我們相信，隨著今年剩餘時間的推進，保費將會下降。

And then let me take on your question around rare earth and I'll do it in a very summary form. For the last four months, I have been on one or two calls every week working with our teams to manage this situation. There is no question that this is not a great use of time. But our team, what we do well is we're disciplined in our actions. So we've had to -- we've been dual source, but we've had to work with other suppliers to ramp up supply.

然後讓我以非常總結的形式來回答你關於稀土的問題。在過去的四個月裡，我每週都會接聽一兩次電話，與我們的團隊一起處理這種情況。毫無疑問，這並不是一種很好的時間運用方式。但我們的團隊做得很好，我們的行為非常自律。因此我們必須——我們是雙重來源，但我們必須與其他供應商合作來增加供應。

But let's be clear, 90% of supply comes out of China. So you can do that just to only a certain extent. We've also moved production to do more assembly in China, where it's easier to get approvals for the applications when the product is produced in China. At this point, we feel confident we've resolved all of the commercial application and product demand needs for this year. Defense is a different question.

但我們要明確的是，90%的供應來自中國。所以你只能在某種程度上做到這一點。我們還將生產轉移到中國進行更多組裝，因為在中國生產產品更容易獲得申請批准。此時，我們有信心已經解決了今年所有的商業應用和產品需求。防守則是另一個問題。

Defense is more challenging. And this, again, is all due to the trade agreements and relationship with China. That will have to be dual sourced, and we are working hard to get that done. We feel a line of sight to that for this year. But that is absolutely a dual source activity.

防守更具挑戰性。而這又完全歸功於與中國的貿易協定和關係。這必須是雙重來源，我們正在努力實現這一點。我們今年也感受到了這一點。但這絕對是一項雙重來源活動。

So I think what hopefully you feel here is that Regal is disciplined in our operations. We're disciplined in how we're managing. I couldn't think our team is enough for the work that they're doing here, but we feel good about resolving this through the year. Hopefully, that gives you confidence.

所以我想，希望您能感受到 Regal 在營運過程中非常有紀律。我們的管理方式十分嚴謹。我認為我們的團隊不足以完成他們在這裡所做的工作，但我們很高興能夠在今年解決這個問題。希望這能給你信心。

No, it does, and well done on getting that resolved. It sounds like a nightmare. And then just a quick one on the accounts receivable facility. I understand the logic for doing it. I mean it definitely helps your leverage ratios.

不，確實如此，而且很好地解決了這個問題。這聽起來就像一場惡夢。然後簡單介紹一下應收帳款工具。我理解這樣做的邏輯。我的意思是它確實有助於提高你的槓桿率。

But maybe just talk about some of the guardrails around the sort of the capacity around -- so today, it's roughly $4 million. What is the capacity on that going forward? I just want to make sure that the costs associated with the program land in interest. I think they do. Just want to confirm that.

但也許只是談論一些圍繞容量的護欄 - 所以今天，它大約是 400 萬美元。未來的容量是多少？我只是想確保與該計劃相關的成本能夠產生利息。我認為是的。只是想確認一下。

Yes. So the program is one that is renewable. It's annually renewal -- it's annually renewable. The cost on it is about 150 basis points below the current revolver and term loan rates. So we're getting about $4 million of annualized savings on that.

是的。因此該計劃是可再生的。每年更新一次－每年可續訂一次。其成本比目前循環貸款和定期貸款利率低約 150 個基點。因此，我們每年可節省約 400 萬美元。

As it relates to kind of the continuation, we can continue throughout the program on the renewal or we can go ahead and dial it back. It doesn't extend above $400 million. It only goes to $400 million, but we can always bring it back to a level -- whatever level we feel is appropriate.

由於它與延續性有關，我們可以在整個續約計畫中繼續進行，也可以繼續進行並回撥。其金額不會超過 4 億美元。它只會達到 4 億美元，但我們總是可以將其恢復到我們認為合適的水平。

There's more -- and there's more detail in the slide appendix in terms of how to look at this from where these costs are represented in the financial statements. We have it in -- from the standpoint of where does it fit per the accounting rule, interest expense on the ARS facility is recorded in ES&A.

還有更多內容——幻燈片附錄中有更多詳細信息，說明如何從財務報表中這些成本的體現來看待這個問題。我們已經將其納入 - 從會計規則的角度來看，ARS 設施的利息費用記錄在 ES&A 中。

But we plan to adjust this expense out when we calculate adjusted EBITDA because effectively, it is interest expense. But for the same reason, this cost will remain in adjusted EPS. Again, all these details are in the appendix of the presentation.

但我們計劃在計算調整後的 EBITDA 時調整這筆費用，因為實際上這是利息費用。但出於同樣的原因，該成本將保留在調整後的每股盈餘中。再次強調，所有這些細節都在簡報的附錄中。

Tim Thein, Raymond James.

提姆泰恩、雷蒙詹姆斯。

The first question I had, maybe for you, Louis, is on the AMC business and just this -- your thoughts around the notion that we potentially get down the road some sort of a domestic kind of manufacturing recovery. Obviously, that's been talked about for some time.

路易斯，我的第一個問題可能是關於 AMC 業務的，您對我們未來可能實現某種國內製造業復甦的看法是什麼？顯然，這個問題已經討論了一段時間了。

But just given the incentives as part of the recent tax reform should potentially steer more around kind of the domestic manufacturing activity. I'm just curious, obviously, that kind of wouldn't show up in project quoting or pipelines overnight. But just curious as to maybe your longer-term thoughts around the possibility around that and maybe just any conversations you're having with customers on that.

但考慮到最近稅收改革中的激勵措施，應該可以更多地引導國內製造業活動。我只是好奇，顯然，這種東西不會在一夜之間出現在專案報價或管道中。但我只是好奇，也許您對這種可能性的長期想法以及您與客戶就此進行的任何對話。

Yes. I think we're seeing it more related to that being -- the industrial production markets need to start rebounding. ISM has been below 50% for over two years. And any kind of rebound for us is going to help both our IPS and our AMC segment.

是的。我認為我們看到的與此更相關的是——工業生產市場需要開始反彈。ISM 指數已連續兩年低於 50%。對我們來說，任何形式的反彈都會對我們的 IPS 和 AMC 部門有所幫助。

Now the whole hypothesis of why we entered into the acquisition of Altra is we wanted to move into the automation space because we feel and believe strongly that automation will accelerate, especially when you see macro trends around labor inflation, unemployment rates being low, et cetera.

現在，我們收購 Altra 的整個假設是，我們想進入自動化領域，因為我們強烈感覺到並相信自動化將會加速，特別是當你看到勞動力通膨、失業率低等宏觀趨勢時。

Specific to reshoring, we're -- certain pockets, yes, semiconductor, for sure. Maybe we're seeing certainly data center and the acceleration, but I wouldn't call that reshoring. These will all benefit Regal. I don't think we've quite seen any acceleration in nor are we really hearing a lot of opportunity around restoring at this time. Tim, I -- that's my perspective.

具體到回流，我們──某些領域，是的，肯定是半導體。也許我們確實看到了資料中心和加速發展，但我不會稱之為回流。這些都將使 Regal 受益。我認為我們目前還沒有看到任何加速，也沒有聽到很多有關恢復的機會。提姆，我－－這是我的觀點。

That's what in our discussion with our customers, that's what we're hearing.

這就是我們在與客戶討論時聽到的。

Okay. Understood. And then maybe just a quick one on IPS. The call for kind of a pickup in activity, how does that square with the feedback that you're hearing from your distributor customers, especially domestically? Just curious, is it -- well, anyway, yes, maybe just touch on that.

好的。明白了。然後也許只是快速討論一下 IPS。呼籲活動回升，這與您從分銷商客戶（尤其是國內分銷商客戶）那裡聽到的反饋如何？只是好奇，是嗎——嗯，無論如何，是的，也許只是觸及這一點。

Yes. I think it's a great question. But it really does answer an earlier question we got, which is so much of our second half growth expectation is coming from longer cycle projects stepping up. You're right, the distribution space, we heard a couple of the public companies come out and say volume sales were down low single digit. But I then link that to -- again, we are two-plus years of ISM below 50%.

是的。我認為這是一個很好的問題。但它確實回答了我們之前提出的一個問題，即我們對下半年成長的預期很大程度上來自於週期較長的專案的推進。你說得對，在分銷領域，我們聽到幾家上市公司表示銷量下降了個位數。但我隨後將其與——再次，我們已經兩年多沒有出現 ISM 低於 50% 的情況了。

We strongly feel industrial production is going to come back not in a significant way, but 2026, we're thinking industrial production is a bit more positive and ISM goes above 50%. Now we're in August, and I'm giving you our forecast for what happens in '26. We are not expecting in the second half of '25 any kind of step-up around our distribution sales. Hopefully, that helps, Tim.

我們強烈感覺到工業生產將以不太顯著的方式回升，但到 2026 年，我們認為工業生產將更加積極，ISM 將超過 50%。現在已經是八月了，我來幫你預測 26 年的狀況。我們並不期望 25 年下半年我們的分銷銷售額會出現任何形式的成長。希望這對你有幫助，蒂姆。

It does.

確實如此。

Joe Ritchie, Goldman Sachs.

高盛的喬·里奇。

So I know we've talked about the rare earth topic maybe at nauseam at this point, but I do have another question. We haven't really heard much issues with rare earth from some of your peers or really across the sector.

我知道我們可能已經對稀土話題討論得有些厭煩了，但我還有另一個問題。我們並沒有從您的一些同行或整個行業中聽到太多有關稀土的問題。

I'm just wondering, Louis, you provided some commentary around being dual-sourced for portions of it. Like is it something about the way you're sourcing supply chain that it was a bigger issue for you guys this quarter than maybe some of your peers? And then the follow-on to that is, are you at all concerned about any share loss associated with those programs?

我只是想知道，路易斯，您對部分內容的雙重來源提供了一些評論。例如，這是否與你們採購供應鏈的方式有關，這對你們來說本季是一個比一些同業更大的問題？那麼接下來的問題是，您是否擔心與這些計劃相關的任何份額損失？

Well, first of all, our peers in this space -- and thanks for the question, Joe. Our peers in this space actually tend to be more private companies than public companies. You're not going to see a direct peer here in providing ultra-high precision motors that you can compare to, certainly not in our typical public company space. We actually think we're in a better supply chain overall situation because of the global nature and our ability to transform production into China to be able to support this challenge. So we do not feel we're losing share.

嗯，首先，我們在這個領域的同行——感謝喬的提問。我們在這個領域的同業實際上往往是私人公司，而不是上市公司。您不會在這裡看到能夠提供可與之相比的超高精度馬達的直接競爭對手，當然在我們典型的上市公司領域中肯定不會。事實上，我們認為，由於全球性以及我們將生產轉移到中國以應對這一挑戰的能力，我們的供應鏈整體狀況更好。所以我們並不覺得我們的市佔率正在下降。

If anything, actually, a couple of the private peers are in countries that have been placed with significant tariffs, and as long as the tariffs stick, we think there might be opportunity and are quoting on some projects that would allow us to win some share. So no, we're -- it has been relatively challenging. But again, the team has done a great job managing through, and we see this could actually be a potential upside for us.

實際上，如果有的話，一些私營同行位於被徵收高額關稅的國家，只要關稅保持不變，我們認為就可能有機會，並且正在對一些可以讓我們贏得一些份額的項目進行報價。所以，不，我們——這相對具有挑戰性。但再次強調，團隊在管理方面做得非常出色，我們認為這對我們來說實際上可能是一個潛在的優勢。

That's interesting. That's helpful color, Louis. And then just real quickly on the near term. Also for AMC, just given that the guide is the widest there, both from a sales and EBITDA margin standpoint. And my guess is that it is related to like how quickly you get availability of the rare earth magnets that you're using. But maybe just provide some level of confidence in that range? And what are kind of the biggest swing factors for the third quarter?

那很有意思。路易斯，這是很有幫助的顏色。然後就在短期內迅速行動起來。對於 AMC 來說也是如此，從銷售額和 EBITDA 利潤率的角度來看，該指南都是最廣泛的。我的猜測是，這與你所使用的稀土磁鐵的可用性速度有關。但也許只是在該範圍內提供一定程度的信心？第三季最大的影響因素是什麼？

Yes. So you're spot on around why we opened up the range a little bit more in Q3. Right now, the flow of magnets is pretty strong. And I would say the reason why there's potential upside is some of these data center orders and being able to move a little bit faster in execution towards the end of Q3, if that's possible.

是的。所以你完全明白為什麼我們在第三季稍微擴大了範圍。現在，磁流非常強。我想說，之所以存在潛在的上升空間，是因為其中一些資料中心訂單能夠在第三季末更快執行，如果可能的話。

So you're right, we opened it up for that reason, but we feel pretty good on the 6th of August that the flow of rare earth is what we expected based on the guide, and our opportunities are to hit the midpoint is pretty confident.

所以你是對的，我們出於這個原因開放了它，但我們在 8 月 6 日感覺很好，稀土的流動是我們根據指南所預期的，我們非常有信心有機會達到中點。

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。我想將會議交還給路易斯·平克漢姆 (Louis Pinkham) 做閉幕發言。

Thank you, operator. And thanks to our investors and analysts for joining us today. Our team delivered strong performance in second quarter, and we look ahead to the back half of the year and into 2026.

謝謝您，接線生。感謝我們的投資者和分析師今天加入我們。我們的團隊在第二季表現出色，我們展望今年下半年和 2026 年。

We are optimistic about the positive momentum we are building, given our last 12-month order trends, growing backlog, ample remaining cost synergies, growing cross-sell synergies, a healthy new product pipeline and tailwinds to earnings and cash flow from further balance sheet delevering. We believe this momentum, coupled with our valuation makes Regal Rexnord a unique value creation opportunity for our investors.

考慮到我們過去 12 個月的訂單趨勢、不斷增長的積壓訂單、充足的剩餘成本協同效應、不斷增長的交叉銷售協同效應、健康的新產品線以及進一步降低資產負債表槓桿率對盈利和現金流的推動作用，我們對我們正在形成的積極勢頭感到樂觀。我們相信，這種勢頭加上我們的估值將使 Regal Rexnord 成為我們投資者獨特的價值創造機會。

Thank you again for joining us today and thank you for your interest in Regal.

再次感謝您今天加入我們，並感謝您對 Regal 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。