Regal Rexnord Corp (RRX) 2025 Q3 法說會逐字稿

Good morning, and welcome to the Regal Rexnord third-quarter 2025 earnings conference call. (Operator Instructions) Please note, this event is being recorded.

早安，歡迎參加 Regal Rexnord 2025 年第三季財報電話會議。（操作說明）請注意，本次活動正在錄影。

I would now like to turn the conference over to Rob Barry, Vice President, Investor Relations. Please go ahead.

現在我將把會議交給投資者關係副總裁羅伯·巴里。請繼續。

Great. Thank you, operator. Good morning, and welcome to Regal Rexnord's third-quarter 2025 earnings conference call. Joining me today are Louis Pinkham, our Chief Executive Officer; Rob Rehard, our Chief Financial Officer; and Rakesh Sachdev, Chairman of our Board of Directors.

偉大的。謝謝接線生。早安，歡迎參加 Regal Rexnord 2025 年第三季財報電話會議。今天與我一同出席的有：執行長路易斯·平克漢姆；財務長羅布·雷哈德；以及董事會主席拉凱什·薩赫德夫。

I would 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. Our actual results may differ materially from these 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.

我想提醒各位，在今天的電話會議中，您可能會聽到一些與我們未來財務表現、計劃和業務運營相關的預測性陳述。由於各種因素，我們的實際結果可能與這些預測或暗示的結果有重大差異，我們在今天的新聞稿和提交給美國證券交易委員會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。

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，在本投影片中，我們聲明，我們將展示一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包含了非GAAP財務資訊與GAAP等效資訊之間的調節表。

Turning to slide 3. Let me briefly review the agenda for today's call. Louis will lead off with opening comments and overview of our 3Q performance and an update on our data center business. Rob Rehard will then present our third quarter financial results in more detail, review our 2025 guidance, provide an update on tariffs, and offer some initial thoughts on 2026. We will then move to Q&A, after which, Louis will have some closing remarks.

翻到第三張幻燈片。讓我簡要回顧一下今天電話會議的議程。Louis 將首先發表開幕致辭，概述我們第三季度的業績，並介紹我們資料中心業務的最新進展。羅布·雷哈德隨後將更詳細地介紹我們第三季度的財務業績，回顧我們 2025 年的業績指引，提供關稅方面的最新信息，並對 2026 年提出一些初步想法。接下來我們將進入問答環節，之後路易斯將作總結發言。

And with that, I'll turn the call over to Louis.

接下來，我將把電話交給路易斯。

Great. Thanks, Rob. And good morning, everyone. Thanks for joining us to discuss our third quarter results and to get an update on our business. We appreciate your continued interest in Regal Rexnord.

偉大的。謝謝你，羅伯。大家早安。感謝各位參加本次會議，共同探討我們第三季的業績，並了解我們公司的最新業務進展。感謝您一直以來對 Regal Rexnord 的關注。

Before discussing our third quarter results, I would like to make some brief comments about the news regarding my succession, which we announced last night concurrently with our third quarter earnings release. It has been an immense honor to lead the company for the past six-plus years. We have achieved a lot inclusive of two major acquisitions and the divestiture of the Industrial segment, transformation of our portfolio, significant revenue growth, gross margin expansion and free cash flow acceleration, and have positioned Regal Rexnord as a valued partner serving our customers' most critical needs.

在討論我們第三季業績之前，我想就我的繼任計劃發表一些簡短的評論，該計劃是我們昨晚與第三季收益發布同時宣布的。過去六年多來，能夠領導這家公司，我深感榮幸。我們取得了許多成就，包括兩項重大收購和剝離工業部門、轉型我們的投資組合、顯著的收入成長、毛利率擴大和自由現金流加速，並將 Regal Rexnord 定位為滿足客戶最關鍵需求的寶貴合作夥伴。

We have assembled a strong team of leaders who have built great teams that are focused on leveraging 80/20, expanding secular growth opportunities, and driving continuous improvement. Our portfolio is well positioned to grow, especially when the ISM returns to an expansionary period for industrial production. With third quarter sales up about 2% and orders up about 10% along with our improving top line momentum, there is a lot to be excited about.

我們組建了一支強大的領導團隊，他們打造了一個優秀的團隊，專注於利用 80/20 法則，拓展長期成長機會，並推動持續改善。我們的投資組合具備良好的成長潛力，尤其是在印度次大陸市場（ISM）工業生產恢復擴張期時。第三季銷售額成長約 2%，訂單成長約 10%，加上我們不斷改善的營收成長勢頭，有很多值得興奮的地方。

So with that, and in light of some personal decisions that I recently made, the Board and I have agreed that this is a good time to initiate a transition plan to pass the baton to a new leader who will guide Regal Rexnord through the next phase of our growth journey over the coming several years. I look forward to continuing to lead the company until the Board identifies my successor. Rest assured, we have a strong team, and we'll continue to execute on our profitable growth initiatives for the benefit of our customers, our associates, and our shareholders. In short, it is business as usual.

因此，鑑於我最近做出的一些個人決定，董事會和我一致認為，現在是啟動過渡計劃，將接力棒交給一位新領導人的好時機，這位新領導人將在未來幾年帶領 Regal Rexnord 進入下一個增長階段。我期待繼續領導公司，直到董事會確定我的繼任者。請放心，我們擁有一支強大的團隊，我們將繼續執行獲利成長計劃，以造福我們的客戶、員工和股東。簡而言之，一切照舊。

And now, onto the quarter. Our team delivered solid third quarter performance nicely ahead of our expectations on orders and roughly in line on sales and adjusted EBITDA driven by over execution in PES and strong execution in IPS and AMC. Performance would have tracked even stronger if it were not for larger-than-expected pressures from two items out of our control. Additional tariffs announced in August just after our Q2 earnings call and incremental challenges sourcing rare earth magnets.

接下來，我們進入本季。我們的團隊第三季業績穩健，訂單量遠超預期，銷售額和調整後 EBITDA 基本上符合預期，這主要得益於 PES 的超額執行以及 IPS 和 AMC 的強勁執行。如果不是因為兩個我們無法控制的因素帶來了超出預期的壓力，業績本來可以更好。8 月份，在我們第二季財報電話會議結束後不久，政府宣布了額外的關稅，而稀土磁鐵的採購也面臨更多挑戰。

Looking forward, our growth potential took a significant step higher in the quarter, driven by strong orders. These results, plus our expectation for further order strength in fourth quarter are setting us up for solid growth in 2026. In short, good results, great momentum.

展望未來，在強勁訂單的推動下，本季我們的成長潛力顯著提升。這些業績，加上我們對第四季訂單進一步強勁成長的預期，將為我們在 2026 年實現穩健成長奠定基礎。總之，結果良好，勢頭強勁。

So before continuing, I want to take a moment to thank our 30,000 Regal Rexnord associates for their hard work and disciplined execution. Our associates continue to overmanage the impacts of tariffs and rare earth magnet constraints and are doing a great job working on our commercial funnels to drive improved orders and performance.

在繼續之前，我想藉此機會感謝 Regal Rexnord 的 30,000 名員工的辛勤工作和嚴謹執行。我們的員工繼續努力應對關稅和稀土磁鐵​​供應限制的影響，並在商業管道方面做出了巨大貢獻，以推動訂單和績效的提升。

Now, let me provide some specifics on our third quarter. Orders in the quarter on a daily basis were up 9.8% versus prior year and book-to-bill was 1.05. We ended the quarter with our backlog up 6% versus the prior year.

現在，讓我具體介紹一下我們第三季的情況。本季日均訂單量較上年同期成長 9.8%，訂單出貨比為 1.05。本季末，我們的積壓訂單量較上年同期成長 6%。

As I will elaborate on shortly, in the quarter, we booked $135 million of data center orders and then an additional $60 million order in October. This is a market where we are clearly gaining traction, and we are investing to support further growth.

我稍後會詳細說明，本季我們獲得了價值 1.35 億美元的資料中心訂單，然後在 10 月又獲得了 6000 萬美元的訂單。我們在這個市場逐漸獲得認可，並且我們正在投資以支持進一步成長。

We also saw strong order growth in discrete automation, and in our air moving business in PES for the data center and semicon markets, while IPS posted its fifth quarter in a row of positive orders growth against a backdrop of generally sluggish end markets.

我們也看到離散自動化業務以及面向資料中心和半導體市場的 PES 空氣輸送業務訂單強勁增長，而 IPS 在終端市場普遍疲軟的背景下，連續第五個季度實現了正訂單成長。

Our sales in the quarter were up 70 basis points versus the prior year on an organic basis in line with our expectations for an inflection to growth. In the quarter, we saw particular strength in energy markets, discrete automation, and aerospace, net of headwinds in medical as well as some project timing in data center.

本季我們的銷售額以有機成長計算比上年同期成長了 70 個基點，符合我們對成長拐點的預期。本季度，能源市場、離散自動化和航太領域表現尤為強勁，但醫療領域受到不利因素影響，資料中心的一些專案進度也受到影響。

The latter, clearly temporary, as recent orders show we are building tremendous momentum in our data center business. For reference, on a year-to-date basis, enterprise organic sales are up slightly and are expected to be up low single digits for the year.

後者顯然是暫時的，因為最近的訂單表明，我們的資料中心業務正在形成巨大的發展勢頭。作為參考，今年迄今為止，企業有機銷售額略有成長，預計全年將實現個位數低成長。

Turning to margins. Our third quarter adjusted gross margin was 37.6%, down 80 basis points versus the prior year period on mix and impacts related to rare earth magnet availability and tariffs.

轉向邊際效應。我們第三季調整後的毛利率為 37.6%，較上年同期下降 80 個基點，主要原因是產品組合變化以及稀土磁鐵供應和關稅的影響。

Adjusted EBITDA margin was 22.7%, roughly flat versus prior year and reflects an $11 million synergy benefit, mostly offset by mix tariffs and rare earth magnet pressure. Adjusted earnings per share for the quarter was $2.51, up versus the prior year.

調整後的 EBITDA 利潤率為 22.7%，與上年基本持平，反映了 1,100 萬美元的協同效應收益，但大部分被產品組合關稅和稀土磁鐵​​壓力所抵消。本季調整後每股收益為 2.51 美元，高於去年同期水準。

And lastly, we generated $174 million of free cash flow in the third quarter, which was used primarily to pay down debt. We ended the quarter with no variable rate debt. In summary, a solid third quarter during which we delivered strong orders and a rising backlog which keeps us optimistic about accelerating top line and earnings growth in fourth quarter and into 2026.

最後，我們在第三季產生了 1.74 億美元的自由現金流，主要用於償還債務。本季末，我們沒有浮動利率債務。總而言之，第三季業績穩健，訂單強勁，積壓訂單不斷增加，這讓我們對第四季及2026年營收和獲利成長加速充滿信心。

Next, I'd like to elaborate on the significant momentum we are gaining in the data center market, which we believe can be needle moving to our enterprise sales growth. On the left side of this slide, we provide an overview of our diverse capabilities in the data center market.

接下來，我想詳細說明我們在資料中心市場取得的顯著發展勢頭，我們相信這將對我們的企業銷售成長起到關鍵作用。在本投影片的左側，我們概述了我們在資料中心市場的多元化能力。

You can see that all three segments play, but our largest presence today is in our Thomson Power Systems business in AMC, where we are providing switchgear and transfer switches to support standby and backup power in data centers. This was a $30 million business five years ago and is on track to hit $130 million this year.

你可以看到這三個業務板塊都有所涉及，但我們目前最大的業務是AMC的Thomson Power Systems業務，我們為資料中心提供開關設備和轉換開關，以支援備用電源和備用電源。五年前，這項業務的規模為 3,000 萬美元，今年預計將達到 1.3 億美元。

The traction we are seeing in this fast-growing secular market is being driven by the success factors listed on the lower left of this slide. It starts with the quality of our products, demonstrated over five decades of service.

我們在這個快速成長的長期市場中看到的成長勢頭，是由本幻燈片左下角列出的成功因素所驅動的。一切始於我們產品的質量，這已通過五十多年的服務得到證明。

What differentiates us is our ability and willingness to customize the system design to best meet the needs of our customer. Our lead times are competitive and in a market being fueled by remarkable levels of AI investment, lead times matter a lot. Our enterprise scale has been critical to getting us in the door with new and larger customers because it helps them get comfortable that we can deliver on our service and delivery commitment.

我們的優勢在於我們有能力並且願意根據客戶的需求客製化系統設計，以最大程度地滿足客戶的需求。我們的交貨週期具有競爭力，在人工智慧投資大幅成長的市場中，交貨週期至關重要。企業規模對於我們贏得新客戶和大型客戶至關重要，因為它有助於他們相信我們能夠履行服務和交付承諾。

Aftermarket service capabilities are a growing part of our value proposition as we invest in our service footprint. Lastly, and highly relevant in today's market, we are willing and able to make investments to flex our manufacturing capacity, which supports future growth and bolsters our service levels.

隨著我們對服務網絡的持續投入，售後服務能力正日益成為我們價值主張的重要組成部分。最後，也是在當今市場中非常重要的一點，我們願意並且能夠進行投資，以靈活調整我們的生產能力，從而支持未來的成長並提高我們的服務水準。

On the right side of this slide, we describe our recent wins in the data center market worth $195 million. We have been very focused on building our commercial organization, which combined with our enterprise scale, has allowed us to grow our bid pipeline to what today is approaching $1 billion.

在本投影片的右側，我們介紹了我們最近在資料中心市場取得的價值 1.95 億美元的成功案例。我們一直非常專注於建立我們的商業組織，再加上我們企業的規模，使我們的投標項目儲備增長到如今接近 10 億美元。

We are also seeing good data center growth in PES, which won a $20 million order in the quarter to provide HVAC chiller subsystems to cool hyperscale data centers. For perspective, PES is commercial HVAC business has been benefiting from data center growth for some time, especially in North America. What is different with disorder is its scale. In short, our value proposition of technology-differentiated subsystems to achieve the high levels of energy efficiency required by data center operators is resonating.

我們還看到 PES 的資料中心業務發展良好，該公司在本季度贏得了價值 2000 萬美元的訂單，為超大規模資料中心提供 HVAC 冷水機組子系統。從這個角度來看，PES 是一家商業暖通空調企業，長期以來一直受益於資料中心的成長，尤其是在北美地區。與無序症不同的是，它的規模很大。簡而言之，我們透過技術差異化的子系統來實現資料中心營運商所需的高能效水準的價值主張引起了共鳴。

You may remember that part of our growth strategy for PES is leveraging proven technologies in new secular markets. While not mentioned on this slide, the PES team also won a $7 million project in the quarter for a semicon clean room customer that included multiple fan solutions, including fan filter units.

您可能還記得，我們​​ PES 成長策略的一部分是利用成熟的技術開拓新的長期市場。雖然這張投影片上沒有提到，但 PES 團隊在本季也為半導體無塵室客戶贏得了價值 700 萬美元的項目，其中包括多個風扇解決方案，包括風扇過濾器單元。

Our PES team is gaining traction, growing its business in new secular markets. And as you can see on the slide is currently working a $100 million data center-related bid pipeline.

我們的PES團隊正在取得進展，在新興的長期市場中發展業務。正如您在投影片上看到的，該公司目前正在推進一項價值 1 億美元的資料中心相關投標專案。

As you know, we have been directing the majority of our growth investment to secular markets. In data center, that has included funding portfolio expansion into modular electrical pods or ePods. These turnkey power management solutions can help expedite data center construction by making the installation of our critical power management content more plug and play. These ePods would typically contain our switchgear, transfer switches, power distribution units as well as air moving content.

如您所知，我們一直將大部分成長投資投入長期市場。在資料中心領域，這包括為模組化電動艙或 ePod 的投資組合擴展提供資金。這些交鑰匙電源管理解決方案能夠使我們的關鍵電源管理元件的安裝更加即插即用，從而幫助加速資料中心建置。這些 ePod 通常會包含我們的開關設備、轉換開關、配電單元以及空氣輸送設備。

Regal is also product managing assembly of these ePods, including content from third parties to part of our value proposition is providing a single source of contact for the customer and allowing the customer to procure power management content with a single SKU.

Regal 也負責這些 ePod 的產品管理組裝，包括來自第三方的內容，我們價值主張的一部分是為客戶提供單一聯繫來源，並允許客戶使用單一 SKU 採購電源管理內容。

We estimate the market size for ePods is roughly $10 billion. There are two particularly compelling attributes of this opportunity. One, it helps customers expedite their installation of new hyperscale data centers today. And two, it positions us to serve a market that many expect will evolve towards a network of smaller data centers that sit closer to the applications they are supporting. These edge data centers are forecast to number in the thousands and will likely be constructed using a few modular building blocks that contain all the requisite data center content.

我們估計 ePods 的市場規模約為 100 億美元。這個機會有兩個特別吸引人的特點。第一，它可以幫助客戶加快目前新型超大規模資料中心的安裝速度。其次，這使我們能夠服務一個許多人預期會發展成由更靠近其所支援的應用程式的小型資料中心組成的網路的市場。預計這些邊緣資料中心的數量將達到數千個，並且很可能會使用一些模組化建置模組來建造，這些模組包含了所有必要的資料中心內容。

Our commercial team has been actively engaged with potential ePod customers, and our bid pipeline currently exceeds $400 million. So nearly half of AMC's total $1 billion data center bid pipeline I referenced earlier. In short, a tremendous new product opportunity for our customers and for Regal.

我們的商務團隊一直積極與潛在的 ePod 客戶接洽，目前我們的投標專案總額超過 4 億美元。所以，這幾乎占我之前提到的AMC總價值10億美元的資料中心投標項目的一半。簡而言之，這對我們的客戶和 Regal 來說都是一個巨大的新產品機會。

To support the growth, we have secured in our bidding on, we are investing to expand our capacity, both in our legacy power management systems and to support ePods. As you can see on this slide, the current footprint for our data center business in AMC includes two locations, one in British Columbia and one in Mexico.

為了支持我們在競標中獲得的成長，我們正在投資擴大產能，包括我們傳統的電源管理系統和 ePod 的支援。正如您在這張投影片上看到的，我們目前在AMC的資料中心業務佈局包括兩個地點，一個在不列顛哥倫比亞省，一個在墨西哥。

We recently started developing new capacity by expanding our British Columbia footprint and also developing a new site near Dallas, Texas, which will grow our footprint by over 50%. The Dallas facility is scheduled to begin shipping product by mid-2026.

我們最近開始透過擴大在不列顛哥倫比亞省的業務規模以及在德克薩斯州達拉斯附近開發一個新廠址來開發新的產能，這將使我們的業務規模擴大 50% 以上。達拉斯工廠計劃於 2026 年年中開始出貨。

As a reminder, this business is relatively CapEx light. And so our investment is centered on light manufacturing, assembly and test equipment as well as adding the talent to support our expanding operations. This is a good example of how our significant enterprise resources allow us to respond quickly to attractive market opportunities.

需要提醒的是，這項業務的資本支出相對較低。因此，我們的投資主要集中在輕型製造、組裝和測試設備以及增加人才以支持我們不斷擴大的業務。這很好地體現了我們雄厚的企業資源如何使我們能夠迅速響應極具吸引力的市場機會。

While our data center business today represents a small percentage of our enterprise sales, it is growing quickly, and we are investing across a spectrum of resources needed to support and fuel further growth. Starting in the coming quarters, we believe our data center business can contribute a point or more growth to our enterprise growth rate at company accretive margins. In short, a huge opportunity for Regal that we are extremely excited about.

雖然我們目前的資料中心業務僅佔企業銷售額的一小部分，但它正在快速成長，我們正在投資各種資源，以支持和推動進一步成長。從接下來的幾個季度開始，我們相信我們的資料中心業務可以為公司帶來更高的利潤率，並為我們的企業成長率貢獻一個百分點或更多的成長。總之，這對 Regal 來說是一個巨大的機遇，我們對此感到非常興奮。

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

那麼，我就把電話交給羅布了。

Thanks, Louis. And good morning, everyone. Now, let's review our operating performance by segment.

謝謝你，路易斯。大家早安。現在，讓我們按業務部門回顧一下我們的經營業績。

Starting with Automation and Motion Control, or AMC, sales in the third quarter were down 1% versus the prior year period on an organic basis, which was just shy of our expectations. The performance primarily reflects project timing in data center, weakness in the medical end market, and further challenges sourcing rare earth magnets, which continued to limit our ability to ship certain high-margin products in the medical and defense markets. These headwinds were largely offset by strength in discrete automation and in aerospace.

以自動化和運動控制（AMC）為例，第三季銷售額以有機成長計算比去年同期下降了 1%，略低於我們的預期。績效主要反映了資料中心專案的進度安排、醫療終端市場的疲軟以及稀土磁鐵採購的進一步挑戰，這些因素持續限制了我們向醫療和國防市場交付某些高利潤產品的能力。這些不利因素很大程度上被離散自動化和航空航太領域的強勁表現所抵消。

Regarding the challenges around rare earths, last quarter, we expected these were diminishing, especially for nondefense products, where we were making good progress with license approvals for exports from China and with our efforts to find alternative sources of supply. However, the situation worsened in the quarter as the rate of China license approvals slowed considerably, and it became clear that even in the absence of an official policy change, China was not approving export license applications for India where we have a large facility making product for surgical applications.

關於稀土方面的挑戰，上個季度我們預計這些挑戰會減少，尤其是在非國防產品方面，我們在獲得中國出口許可證以及尋找替代供應來源方面取得了良好進展。然而，本季情況進一步惡化，中國許可證審批速度大幅放緩，而且很明顯，即使沒有官方政策變化，中國也沒有批准我們向印度（我們擁有一家大型工廠，生產外科手術產品）的出口許可證申請。

At this point, we are continuing to work on to work on securing alternative sources of supply and making strategic production moves that facilitate exports from China. Given our experience navigating rare earth magnet approvals we've described, which is worse than we anticipated coming out of the second quarter, we now believe these headwinds will impact us through the end of the year and into early 2026, after which we expect to see net benefits in the P&L from working down our past due backlog associated with these impacted products. I'll share more on this in the guidance section.

目前，我們正在繼續努力尋找替代供應來源，並採取策略性生產措施，以促進從中國出口。鑑於我們之前描述的稀土磁鐵審批經驗，情況比我們在第二季末的預期還要糟糕，我們現在認為這些不利因素將影響我們到年底，甚至到 2026 年初。之後，我們預計透過處理與這些受影響產品相關的逾期積壓訂單，損益表將獲得淨收益。我會在指導部分詳細介紹這方面內容。

Turning to margins. AMC's adjusted EBITDA margin in the quarter was 20.5%, which was on the lower end of our guidance range. The primary pressure was related to securing rare earth magnets. Orders in AMC in the third quarter were up a strong 31.7% versus prior year on a daily basis for a book-to-bill of 1.23.

轉向邊際效應。AMC本季的調整後EBITDA利潤率為20.5%，處於我們預期範圍的下限。主要壓力與稀土磁鐵的獲取有關。AMC 第三季訂單量較上年同期大幅成長 31.7%，每日平均訂單出貨比為 1.23。

As discussed earlier, this performance is largely tied to winning two large orders in the data center market with a combined $115 million. Excluding these orders, orders in AMC would have been up 1%, reflecting strength in discrete automation with orders up 17% net of weakness in medical and order lumpiness in the aerospace space business. As Louis indicated earlier, this strong momentum in data center continued in October, when we booked an additional order were $60 million for a total of $175 million of recent data center orders in AMC.

如前所述，這項業績主要歸功於在資料中心市場贏得了兩筆總額達 1.15 億美元的大訂單。如果排除這些訂單，AMC 的訂單量將成長 1%，反映出離散自動化領域的強勁表現，扣除醫療領域的疲軟和航空航太業務的訂單波動後，訂單量增加了 17%。正如路易斯之前指出的那樣，資料中心的強勁勢頭在 10 月得以延續，我們又獲得了 6,000 萬美元的訂單，使 AMC 近期資料中心訂單總額達到 1.75 億美元。

A further note in the quarter, we received our first electromechanical actuator production order for EVTOL and we booked $8 million of humanoid related orders, adding to our momentum in both of these spaces. As a reminder, to the extent humanoid or EVTOL adoption grows, we are very well positioned to address this demand.

本季還有一點值得一提，我們獲得了首個用於電動垂直起降飛行器的機電執行器生產訂單，並獲得了價值 800 萬美元的人形機器人相關訂單，進一步鞏固了我們在這兩個領域的發展勢頭。再次提醒大家，如果人形機器人或電動垂直起降飛行器（EVTOL）的應用範圍擴大，我們完全有能力滿足這項需求。

Turning to Industrial Powertrain Solutions, or IPS. Sales in the third quarter were up 1.6% versus the prior year on an organic basis, which was modestly above our expectations. The growth largely reflects strength in energy and metals and mining with the segment other markets relatively flat.

轉向工業動力總成解決方案，或簡稱 IPS。第三季銷售額以有機成長計算比上年同期成長 1.6%，略高於我們的預期。成長主要反映了能源、金屬和採礦業的強勁表現，而其他市場板塊則相對平緩。

Adjusted EBITDA margin for IPS in the quarter was 26.4%, about 50 basis points below our expectation and down slightly versus the prior year. Performance reflects synergy gains offset by weaker-than-expected mix, including product and channel mix, along with the impact of tariffs.

IPS本季的調整後EBITDA利潤率為26.4%，比我們的預期低約50個基點，與上年同期相比略有下降。業績反映了協同效應帶來的收益，但被低於預期的產品和通路組合以及關稅的影響所抵消。

Orders in IPS on a daily basis were up 2.3% in the third quarter. This marks the fifth quarter in a row of positive orders growth for the segment and has contributed to the backlog growing 5% year-over-year. Book-to-bill in the third quarter for IPS was 0.96.

第三季度，IPS的日均訂單量成長了2.3%。這標誌著該業務板塊連續第五個季度實現訂單正成長，並促使積壓訂單年增 5%。IPS 第三季的訂單出貨比為 0.96。

Turning to Power Efficiency Solutions, or PES, sales in the third quarter were up just under 1% versus the prior year on an organic basis, which was in line with our expectations. The result primarily reflects strong growth in pool and in commercial HVAC.

就電力效率解決方案（PES）而言，第三季銷售額以有機成長計算比上年同期成長不到 1%，這與我們的預期相符。此結果主要反映了泳池和商用暖通空調產業的強勁成長。

Within the residential HVAC portion of this -- of the business, which represents roughly one-third of the segment, sales of air conditioning units were down over 20%, which was offset by strength in furnace resulting in residential HVAC overall being flat in the quarter. We would attribute the relative outperformance to our continued strong position in this market.

在該業務的住宅暖通空調部分（約佔該業務板塊的三分之一），空調設備的銷量下降了 20% 以上，但爐子的強勁銷售抵消了這一影響，使得住宅暖通空調整體在本季度保持平穩。我們認為，相對優異的業績表現歸功於我們在該市場中持續的強勢地位。

Turning to margins. Adjusted EBITDA margin in the quarter for PES was 19%, which was above our expectations and up 120 basis points versus the prior year period, aided by favorable mix and strong cost management.

轉向邊際效應。PES 本季調整後 EBITDA 利潤率為 19%，高於我們的預期，比上年同期增長 120 個基點，這得益於有利的產品組合和強有力的成本控制。

Orders in PES for the third quarter were up 1.7% on a daily basis. As Louis highlighted in his remarks, this team is accelerating its growth in new secular markets such as semicon and data center. Book-to-bill in the quarter for PES was 1.02.

PES第三季訂單量日均成長1.7%。正如路易斯在演講中所強調的那樣，這支團隊正在加速在半導體和資料中心等新興市場的發展。PES本季的訂單出貨比為1.02。

Turning to the outlook on slide 13. We are narrowing and lowering our adjusted EPS guidance to the range of $9.50 to $9.80 or $9.65 in the midpoint. Our revised assumptions are outlined in the table on this slide. Notably, our sales guidance is rising modestly primarily to reflect initial revenue from our recent data center project wins and some additional tariff pricing net of incremental impacts from delayed shipments of products with rare earth magnets.

接下來請看第 13 頁的展望。我們將調整後的每股盈餘預期範圍縮小並下調至 9.50 美元至 9.80 美元，中間值為 9.65 美元。我們修改後的假設概述在本頁投影片的表格中。值得注意的是，我們的銷售預期略有上調，主要反映了我們最近贏得的數據中心項目帶來的初步收入，以及一些額外的關稅定價，扣除了稀土磁鐵產品延遲發貨的增量影響。

Our adjusted EBITDA margin is now expected to be 22% versus our prior assumption of 22.5%, factoring what we now forecast to be net unfavorable tariff impacts in the year on a dollar basis and the mix impacts of rare earth magnet-related shipment delays. We have also made some adjustments to certain below-the-line items, which are outlined in the table.

鑑於我們現在預測的本年度以美元計價的淨不利關稅影響以及稀土磁體相關發貨延遲帶來的組合影響，我們調整後的 EBITDA 利潤率預計為 22%，而我們先前的假設為 22.5%。我們也對一些線下項目進行了一些調整，具體內容請見下表。

With all of this said, the majority of our guidance changes due to margin headwinds caused by newly introduced and increased tariffs along with additional rare earth magnet supply chain constraints. Regarding free cash flow, we are now expecting to generate $625 million this year.

綜上所述，由於新推出的關稅和不斷上漲的關稅導致利潤率下降，以及稀土磁鐵供應鏈受到更多限制，我們的大部分業績指引都發生了變化。關於自由現金流，我們預計今年將產生 6.25 億美元。

The decline versus our prior guidance largely reflects the impact of the following three items: one, higher tariff costs associated with the expanded scope of Section 232 tariffs, coupled with the significantly increased India tariffs. Two, the impact of strategic working capital investments particularly those tied to the large data center orders we announced along with supply assurance inventory for rare earth magnets. And three, higher cash interest costs given the timing and amount of cash flows relative to prior expectations.

與我們先前的預期相比，此次下降主要反映了以下三項因素的影響：一是第 232 條款關稅範圍擴大帶來的關稅成本增加，二是印度關稅大幅提高。第二，策略性營運資本投資的影響，特別是與我們宣布的大型資料中心訂單相關的投資，以及稀土磁鐵的供應保障庫存。第三，鑑於現金流的時間和金額與先前的預期相比有所變化，現金利息成本較高。

We see both the tariffs and the working capital investments is timing related. As we expect the impact of pricing on tariffs to flow through once that inventory is sold in the first half of 2026.

我們認為關稅和營運資金投資都與時機有關。我們預計，一旦庫存於 2026 年上半年售出，價格對關稅的影響就會顯現出來。

On slide 14, we are updating our expectations regarding tariff impacts. The gross annual unmitigated cost impact from tariffs as of our last update when we reported second quarter was $125 million. Based on tariffs in place today, that value has risen to $175 million, largely reflecting the rise in India tariffs to 50% and the expanded scope of Section 232 tariffs on steel, aluminum, and copper.

在第 14 張投影片中，我們將更新我們對關稅影響的預期。截至我們上次發布第二季報告時，關稅造成的年度未緩解成本影響總額為 1.25 億美元。根據現行關稅，該價值已上升至 1.75 億美元，這主要反映了印度關稅提高至 50% 以及第 232 條款對鋼鐵、鋁和銅徵收的關稅範圍擴大。

Given the extent of the tariff increases and the limited time left in the year to implement mitigation actions and price changes, we now expect to have a net tariff impact on a dollar cost basis of approximately $17 million this year. Furthermore, we now expect to be dollar cost neutral on tariffs set by the middle of next year and to be margin neutral on tariffs by the end of next year. We see opportunity for this to accelerate, especially if the India tariff is meaningfully reduced.

鑑於關稅上調的幅度以及今年剩餘的實施緩解措施和價格調整的時間有限，我們現在預計今年關稅對美元成本的淨影響約為 1700 萬美元。此外，我們現在預計到明年年中，關稅將實現美元成本中性，到明年年底，關稅將實現利潤率中性。我們認為這一趨勢有機會加速發展，尤其是在大幅降低印度關稅的情況下。

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 overmanage on a daily basis.

在投影片的右側，我們列出了上個季度分享的主要緩解措施，我們的團隊每天都在繼續過度管理這些措施。

On slide 15, we provide more specific expectations for our performance by segment on revenue and adjusted EBITDA margin for fourth quarter and for the full year. Let me outline the primary changes to our full year outlook since our last update by segment. For AMC, we are now expecting sales to be up low single digits versus flat to up single previously, reflecting stronger shipments in data center and discrete automation, net of impacts from rare earth availability on shipments to the medical and defense markets.

在第 15 張投影片中，我們提供了第四季度和全年各業務部門收入和調整後 EBITDA 利潤率的更具體預期。讓我按各個部分概述一下自上次更新以來，我們全年展望的主要變化。對於 AMC 而言，我們現在預計銷售額將實現個位數低增長，而此前預計持平或增長個位數，這反映出數據中心和離散自動化領域的出貨量強勁增長，扣除稀土供應對醫療和國防市場出貨量的影響後，銷售額將有所下降。

Our adjusted EBITDA margin outlook for AMC is now 50 basis points lower at the midpoint mainly reflecting incremental rare earth volume and mix impacts worth approximately $8 million of which we recognized about $3 million in third quarter. We expect the recovery of rare earth magnet supply to continue into early 2026 versus by the end of this year as discussed in our last earnings call through resourcing efforts aimed at eliminating the need for China to approve export licenses for shipments to India.

我們對 AMC 的調整後 EBITDA 利潤率預期中位數下調了 50 個基點，主要反映了稀土產量和產品組合的增量影響，價值約 800 萬美元，其中我們在第三季度確認了約 300 萬美元。我們預計稀土磁鐵供應的復甦將持續到 2026 年初，而不是像我們在上次財報電話會議上討論的那樣在今年年底之前，這得益於旨在消除中國批准對印度出口許可證的資源投入。

For IPS, our outlook for the segment's adjusted EBITDA margin is now 50 basis points lower at the midpoint, mainly factoring and an unfavorable net tariff impact, primarily associated with the expanded scope of the Section 232 tariffs.

對於 IPS 業務，我們目前對該業務部門調整後 EBITDA 利潤率的預期中位數下調了 50 個基點，主要原因是淨關稅的不利影響，而淨關稅的影響主要與第 232 條款關稅範圍的擴大有關。

Lastly, for PES, our outlook for the segment's adjusted EBITDA margin is now 50 basis points lower at the midpoint also factoring an unfavorable net tariff impact primarily associated with the increase in tariff rates on India to 50%, including a 25% penalty tariff added in August.

最後，對於 PES 業務，我們目前對該業務板塊調整後 EBITDA 利潤率的預期中位數下調了 50 個基點，其中也考慮到了不利的淨關稅影響，這主要與印度關稅稅率上調至 50% 有關，其中包括 8 月新增的 25% 的懲罰性關稅。

While we are experiencing some margin pressures from tariffs and rare earths, we remain confident in our midterm ability to achieve our 40% gross margin and 25% adjusted EBITDA margin targets. Our teams continue to execute well on what is in our control.

儘管關稅和稀土價格給我們帶來了一些利潤率壓力，但我們仍然有信心在中期內實現 40% 的毛利率和 25% 的調整後 EBITDA 利潤率目標。我們的團隊繼續在我們可控的範圍內出色地完成任務。

Finally, as I wrap up my prepared remarks, I would like to share a few high-level thoughts on our outlook for 2026. From a sales perspective, we are clearly building momentum as we enter next year. Given our strong orders in the third quarter, the order strength we're already seeing in fourth quarter, sizable 2026 shippable backlogs in our IPS and AMC segments and growing tailwinds from our cross-sell synergies.

最後，在我結束準備好的演講稿之際，我想分享一些關於我們對 2026 年展望的宏觀想法。從銷售角度來看，進入明年，我們顯然正在積蓄力量。鑑於我們第三季強勁的訂單，第四季度已經看到的訂單強勁勢頭，我們在IPS和AMC部門擁有大量2026年可交付積壓訂單，以及來自交叉銷售協同效應的不斷增長的利好因素。

Tariff pricing should also be a tailwind. As with any recovery in our end markets, which for the most part, we believe are at or near trough levels of demand. Given ongoing macro and tariff-related uncertainties, we are going to remain measured in our approach to framing out the year. And for now, we think sales in 2026 should grow at a low to mid-single-digit rate.

關稅定價也應該會是好因素。就像我們終端市場的任何復甦一樣，我們認為這些市場的大部分需求已經達到或接近谷底水平。鑑於宏觀經濟和關稅相關的不確定性持續存在，我們將在製定今年的計劃時保持謹慎的態度。目前，我們認為 2026 年的銷售額應該會以個位數低至中等的速度成長。

From a margin perspective, we have an additional $40 million of cost synergies anticipated in 2026 and would expect upside from achieving price cost and then margin neutrality on tariff headwinds, but again, the margin neutrality is not expected until the end of 2026. We would expect organic growth to lever at roughly 35% overall, higher in AMC and IPS and lower in PES consistent with the gross margin differences between these businesses.

從利潤率的角度來看，我們預計 2026 年將額外獲得 4000 萬美元的成本協同效應，並有望透過實現價格成本和利潤率中性來抵消關稅不利因素，但同樣，利潤率中性預計要到 2026 年底才能實現。我們預計整體有機成長率約為 35%，AMC 和 IPS 的有機成長率會更高，而 PES 的有機成長率會更低，這與這些業務之間的毛利率差異一致。

Finally, from a balance sheet perspective, we expect meaningful further progress in 2026 on delevering and for our net debt leverage to end the year roughly 2.5 times. This assumes we generate almost $900 million free cash flow in the year, which would represent free cash flow margins in the low teens.

最後，從資產負債表的角度來看，我們預計 2026 年在去槓桿化方面將取得實質進展，並且我們的淨負債槓桿率將在年底達到約 2.5 倍。假設我們當年能產生近 9 億美元的自由現金流，這將意味著自由現金流利潤率在 10% 左右。

In short, we are increasingly enthusiastic about our prospects in 2026 especially the potential for improved top line performance, but also more broadly about an ability to drive improvements throughout the P&L on the balance sheet and in our cash flow performance.

簡而言之，我們對 2026 年的前景越來越充滿信心，尤其是對營收成長的潛力，以及更廣泛地推動資產負債表和現金流表現全面改善的能力。

And with that, operator, we are now ready to take questions.

操作員，現在我們可以開始回答問題了。

(Operator Instructions) Michael Halloran, Baird.

（操作說明）邁克爾·霍洛蘭，貝爾德。

First off, Louis, thanks for everything. Sorry hear you leaving, but you're absolutely leaving the company in a better spot, and I wish you nothing but the best moving forward.

首先，路易斯，感謝你所做的一切。很遺憾聽到你離開的消息，但你離開後公司的情況絕對會更好，我祝你未來一切順利。

Really appreciate that. Thanks, Mike.

非常感謝。謝謝你，麥克。

So first, I certainly appreciate Rob's comments on the puts and takes in the fourth quarter. Could you reframe that a little bit and talk more about what that looks like sequentially? What is accelerating from 3Q? How are you framing the furnace versus the air cooling piece within PES? How do the data center pieces roll in?

首先，我非常感謝羅布對第四節比賽中買賣雙方的評論。能否稍微換個角度，詳細談談這個過程的具體步驟？哪些因素從第三季開始加速成長？在PES中，你是如何將爐子與空氣冷卻裝置區分開來的？資料中心的各個元件是如何組合在一起的？

And just maybe talk about what's getting better, what's getting worse, and some of the assumptions around the sequentials.

或許還可以談談哪些方面在好轉，哪些方面在惡化，以及圍繞序列的一些假設。

Yeah. Happy to do that, Mike. When you first look at PES, a solid third quarter. Fourth quarter, we're expecting resi-HVAC to be down low double digits. Air conditioning will be down closer to 30% though, but furnace will be up high teens.

是的。我很樂意效勞，麥克。第一眼看PES，第三季表現穩健。我們預計第四季度住宅空調設備銷量將出現兩位數的下滑。空調冷氣量會下降到接近 30%，但暖氣冷氣量會上升到十幾度。

On top of that, we're expecting commercial HVAC to be up mid-single digits, pool down low single digits and general commercial should be slightly up as well. And so when you think about the sequential -- the biggest driver of the sequential change and why we're now guiding PES down about 1%, it's really the fact that resi-HVAC in the third quarter was flat, and it will be down low double digits in fourth quarter.

除此之外，我們預期商業暖通空調產業將出現個位數中段的成長，泳池產業將出現個位數低段的下降，一般商業產業也將略有成長。因此，當你考慮環比變化時——環比變化的最大驅動因素，以及我們現在將 PES 預期下調約 1% 的原因，實際上是第三季度住宅暖通空調業務持平，第四季度將出現兩位數的下滑。

If you then go to AMC, Mike, it's really -- a big part of the discussion is data centers. Data center actually was down for us in third quarter by 40%. It's going to be up more than 50% in fourth quarter. We have it in the backlog. It's just around timing and scheduled shipments.

麥克，如果你去AMC，你會發現──討論的很大一部分是資料中心。第三季度，我們的資料中心實際宕機率高達 40%。第四季漲幅將超過50%。我們已經把它列入待辦事項清單了。這只是時間和出貨安排的問題。

That's the biggest driver of what's driving fourth quarter and some nice improvements that we're continuing to see in discrete automation in aerospace, but we will continue to have headwinds in medical, and we're starting to ramp production in anything that uses rare earth magnets. And we saw some slight improvement in Q3, and we're getting stronger in Q4, as Rob commented in his prepared remarks.

這是推動第四季度業績成長的最大因素，我們在航空航太領域的離散自動化方面也持續看到一些不錯的改進，但我們在醫療領域仍將面臨阻力，而且我們正在開始提高所有使用稀土磁鐵產品的產量。正如羅佈在事先準備好的發言稿中所說，我們在第三季度看到了一些輕微的改善，而且我們在第四季度變得更加強勁。

And then lastly, going to IPS and the sequential for IPS. It's really project orders that are in our backlog. Actually, distribution for us in Q3 was down. So aftermarket, we would define aftermarket was down about 1% in Q3. We're not expecting that to tick up in Q4.

最後，我們來看看IPS和IPS的順序顯示。我們積壓的訂單實際上是項目訂單。實際上，我們第三季的銷售額有所下降。因此，我們定義的售後市場在第三季下降了約 1%。我們預計第四季不會出現成長。

What we are expecting is to execute on our project backlog that's in the backlog. So that's how we're thinking about the guide for Q4.

我們希望執行待辦事項清單中的項目。這就是我們對第四季業績指南的設想。

Yes. No, super helpful. And then a follow-up is just the data center content you put out there. I mean, obviously, those are some pretty big numbers you're putting on the table as far as what the opportunity set looks like. I think you said this year is somewhere around $130 million. You had $190 million plus of orders. What does that look like from a ramp in the next year based on what you see now?

是的。不，超級有用。後續內容就是你發布的資料中心內容。我的意思是，很顯然，你提出的這些數字對於展現機會前景來說都相當可觀。我想你說過今年的收入大概是1.3億美元左右。你們的訂單總額超過1.9億美元。根據你現在看到的景象，你認為明年從坡道上看會是什麼樣子？

And then maybe more importantly, this $1.1 billion between the couple of segments of potential -- how does that shake out in terms of being meaningful to the Regal portfolio over the next few years? Like what kind of ramp are we talking to? What's the win rate, entitlement, things like that? Just kind of any framing that you can give us on a multiyear would be helpful.

更重要的是，這兩個潛在板塊之間的這 11 億美元——在未來幾年內，這對 Regal 的投資組合來說意味著什麼？我們說的是哪種坡道？勝率、資格之類的指標是多少？如果您能提供任何關於多年期合約的框架，那將對我們很有幫助。

Yes. Let me try to give you my thoughts on it. We're really excited. We're excited. We've been investing, and it's kind of all coming to some fruition here.

是的。讓我試著說說我的想法。我們非常興奮。我們很興奮。我們一直在投資，現在看來，這些投資都開始有一些成果了。

First, I want to -- and I said in my prepared remarks, but our Thomson data center business has actually been growing at a very nice CAGR over the last five years. It's at about $130 million. We would expect that to actually grow maybe even double, over the next two years. And so that will give you a little perspective of how we're thinking that translates.

首先，我想說——我在準備好的演講稿中也提到過——湯姆遜資料中心業務在過去五年中實際上一直保持著非常可觀的複合年增長率。大約是1.3億美元。我們預計，未來兩年內，這一數字可能會翻倍。這樣你就能對我們思考方式的轉換有更清楚的了解了。

The backlog is strong. We're winning because of our -- the scale of our company, our commitment to service, but also our willingness to customize to the specific needs of our customers. And some of our competitors are not as willing to do that. And so that has been a benefit. I think there -- and of course, right, we're investing in capacity expansion in both Texas and in our facility in British Columbia.

積壓工作很多。我們之所以能夠取得成功，是因為我們公司的規模、我們對服務的承諾，以及我們願意根據客戶的具體需求進行客製化。而我們的一些競爭對手卻不願意這麼做。所以這算是一件好事。我認為——當然，沒錯，我們正在投資擴大我們在德克薩斯州和不列顛哥倫比亞省的工廠的產能。

Probably the biggest challenge in the market is the supply chain, though, of components and switching components. But beyond that, we feel really good about our potential here. And so we're -- as I said in my prepared remarks, we would expect this to have meaningful impact on our growth, maybe 1.5 -- 1 to 1.5 points for next year. And we'll continue to invest and grow here. I think it could be a large part of Regal Rexnord overall business for the future.

不過，市場上最大的挑戰可能是零件和開關零件的供應鏈。但除此之外，我們對我們在這裡的發展潛力感到非常樂觀。因此，正如我在準備好的演講稿中所說，我們預計這將對我們的成長產生重大影響，明年可能會有 1.5 到 1.5 個百分點。我們將繼續在這裡投資和發展。我認為它未來可能會成為 Regal Rexnord 整體業務的重要組成部分。

Hopefully, that's helpful, Mike.

希望這對你有幫助，麥克。

Julian Mitchell, Barclays.

朱利安米切爾，巴克萊銀行。

Louis, sorry to see you go, but I wish you well and thanks for all the efforts down the years.

路易斯，很遺憾你離開，祝你一切順利，感謝你這些年來所做的一切努力。

Thanks, Julian.

謝謝你，朱利安。

Just wanted to start off with the commentary sort of into next year. You've spoken to that low to mid-single-digit organic sales growth firm-wide. It seems like 1 to 1.5 points of that is coming from data center, so a couple of points from the rest of the company. So maybe a couple of things. One is, help us understand the sort of data center overall percent of revenue or dollar revenue this year, so we can understand the jumping off point into 2026.

只是想先就明年的情況做一些評論。你已經談到了公司整體有機銷售成長僅為個位數左右的情況。其中似乎有 1 到 1.5 個百分點來自資料中心，其餘幾個百分點來自公司其他部門。所以，或許有兩件事。一是幫助我們了解今年資料中心整體營收佔比或美元收入佔比，以便我們了解 2026 年的起點。

And then should we expect the operating leverage on that volume growth is very limited in the first half because of tariffs and rare earths and so forth?

那麼，由於關稅、稀土等因素，我們是否應該預期上半年銷售成長所帶來的營運槓桿效應非常有限？

Well, specific to data center, tariff in rare earth wouldn't have an impact, Julian. Data center for us today is -- the Thomson business, as I spoke to, is about $130 million. Outside of that, data center is about 3% of all of Regal. So you would say about an incremental $50 million. We do expect that to become a more meaningful part in '26 and as we move forward.

嗯，具體到資料中心，稀土關稅不會產生影響，朱利安。就我們目前的情況來看，湯姆遜的資料中心規模約為 1.3 億美元，正如我之前所說。除此之外，資料中心約佔 Regal 所有業務的 3%。所以可以說增加了大約 5000 萬美元。我們預計這將在 2026 年以及我們未來的發展中發揮更重要的作用。

I think that answers the majority of your --

我認為這回答了你的大部分問題。--

I think the only other part would be that the margins on the data center business will be roughly segment average. And so we see that to be accretive -- margin accretive for the enterprise.

我認為唯一需要注意的是，資料中心業務的利潤率將大致處於行業平均水平。因此，我們看到這對企業來說是有利的——能提高企業利潤率。

Yes, great point.

是的，說得很有道理。

That's helpful. And yes, just a follow-up, sorry. My question was on the operating leverage for next -- it was more around total enterprise because I guess you've got this extra headwind affecting the 2025 guidance from rare earths and tariffs for Regal firm-wide.

那很有幫助。是的，還有一個後續問題，抱歉。我的問題是關於下一步的經營槓桿——更多的是關於整個企業，因為我想稀土和關稅帶來的額外不利因素會影響 Regal 公司 2025 年的業績指引。

So maybe help us understand kind of the phasing of that headwind to profits as we step through the next couple of quarters versus what you saw in Q3. I'm just trying to understand if there should be overall much margin expansion in the next few quarters from volume leverage, or it's all offset by the tariffs and rare earth headwinds?

所以，能否請您幫我們了解一下，在接下來的幾個季度裡，利潤面臨的不利因素會如何變化，以及與第三季的情況相比會有哪些不同？我只是想了解，未來幾季銷售成長是否會帶來整體利潤率的大幅提升，還是會被關稅和稀土價格上漲帶來的不利影響所抵消？

Well, overall, the leverage we expect around 35%, overall for the business. I'm going to give you -- there's two parts to my answer. 35% in the business. It's roughly 40% to 45% for AMC and IPS and lower for PES. The way that would phase in is you'd get a little better benefit in the back half, obviously, as we become more -- as we get to margin neutrality.

總的來說，我們預計公司整體的槓桿率約為 35%。我要告訴你的是──我的答案分為兩部分。 35% 的股份在公司。AMC 和 IPS 的比例約為 40% 至 45%，而 PES 的比例則較低。逐步實現的方式是，很明顯，在後半程你會獲得更好的收益，因為我們會越來越多——當我們達到利潤中立時。

So it would be more back half weighted than front half weighted. But overall, about 30% to 35% for the year is what our expectation would be. But the first couple of quarters will be margin challenged as we expect to be dollar cost neutral, as we talked about, by the time we get to the end of the first half of next year and margin neutral, not until the back half. So that's the way it would phase from half to half.

所以它的後半部比前半部更重。但總體而言，我們預計全年成長率約為 30% 至 35%。但正如我們之前所說，前幾季的利潤率將面臨挑戰，因為我們預計到明年上半年末才能實現美元成本中性，而利潤率中性則要等到下半年才能實現。所以它就是這樣從一半過渡到另一半的。

Jeff Hammond, KeyBanc.

Jeff Hammond，KeyBanc。

Louis, best of luck, and I'll echo Julian and Mike's comments.

路易斯，祝你好運，我同意朱利安和麥克的看法。

Thanks, Jeff.

謝謝你，傑夫。

Just maybe staying on the margin dynamic. I think you said $40 million of integration savings. And then, Rob, I think you said you think the tariff thing is maybe a net -- or price cost is maybe a net tailwind into '26. So how should we think about price cost or this tariff noise maybe getting less bad or better, and the rare earth kind of fixing itself in terms of a delta '25 to '26?

或許就該保持邊緣狀態。我想你說過整合可以省 4000 萬美元。然後，羅布，我想你說過你認為關稅問題可能對 2026 年來說是一個淨利好因素。那麼我們應該如何看待價格成本或關稅波動可能變得不那麼糟糕或有所改善，以及稀土價格在 2025 年至 2026 年期間的某種自我調整呢？

I think it's a bit early to get too specific at this time. I think that the -- we do absolutely expect that rare earths, we will get through the rare earth challenges early in '26. That should not be a problem. As I said, we've got about $13 million now of rare earth headwinds as we exit this year, which is an incremental $8 million from what we said coming out of the second quarter.

我覺得現在討論得太具體還太早。我認為——我們絕對期望稀土，我們將在 2026 年初克服稀土挑戰。那應該不會是個問題。正如我所說，到今年年底，我們面臨大約 1300 萬美元的稀土逆風，比我們在第二季末所說的增加了 800 萬美元。

We do think that most of that we'll be able to get through pretty quickly, maybe by the first half of next year, and then we'll move through the back half at a much better rate than we're seeing first half. But as far as more detail than that, we're not ready to get to that level of detail until we put out fourth quarter results and provide official guidance.

我們認為大部分工作都能很快完成，也許到明年上半年就能完成，然後下半年的工作進度會比上半年快得多。但要了解更多細節，在我們公佈第四季業績並提供正式指引之前，我們無法透露更多細節。

Okay. Great. And then I guess as your tariff -- I know India may come down, but I guess as your tariff pressure kind of moved higher, are you finding it harder to get price, and maybe more particularly in PES, given the customer concentration? And then just separately, if you could just touch on what's driving the furnace growth? I don't know if there's share gains or there's no destocking dynamic or what?

好的。偉大的。然後我想，隨著你們的關稅——我知道印度的關稅可能會下降，但我想隨著你們的關稅壓力越來越大，你們是否發現獲取價格變得更加困難，尤其是在PES方面，考慮到客戶集中度？然後，能否單獨談談推動熔爐產業成長的因素？我不知道是否有股票上漲、去庫存化或其他什麼情況？

Yes. So let me comment on tariffs first, outside of PES. We will be price -- we will be tariff neutral, and we'll work to be margin neutral. It's just the timing of that, the 232 derivative tariff coming out right after our last earnings call, it just takes time to implement for IPS and AMC. And so we would expect, as Rob said, that will ramp in the first half of next year.

是的。首先，我想談談關稅問題，暫且不談PES（公共企業服務體系）的問題。我們將保持價格中立——我們將保持關稅中立，我們將努力保持利潤率中立。只是時機不對，232 衍生性商品關稅是在我們上次財報電話會議之後發布的，IPS 和 AMC 需要時間來實施。因此，正如羅布所說，我們預計這種情況將在明年上半年加劇。

Same for PES. However, a little bit more pressure because of the India influence. And so we feel good about -- and we've talked about this, our global footprint and the differentiation of that global footprint. If tariffs stay at 50% for India, we will need to move that production. But we have not made that decision yet.

PES也是如此。然而，由於印度的影響，壓力略有增加。因此，我們對我們的全球影響力以及這種全球影響力的差異化感到滿意——我們也討論過這一點。如果對印度的關稅維持在 50%，我們將需要轉移生產。但我們尚未做出決定。

But if we have to, we will. And so I'm not worried about our ability to offset it. But to Rob's point, it will be margin neutral by the end of next year, and cost neutral by the middle of next year. That gives us a little time to manage.

但如果必須這樣做，我們會這樣做。所以我並不擔心我們是否有能力抵銷這種影響。但正如羅布所說，到明年年底利潤率將保持中性，到明年年中成本將保持中性。這給我們爭取了一些時間來應對。

Now, let me address your furnace question. Furnace is about 40% of our resi-HVAC business. And I'll just remind you that furnace was down pretty significantly in '23, a little bit stronger in '24. And we think there's actually some more room to return to normal levels. We believe our outperformance in this market, though, is we are gaining share due to our differentiated and IP-protected technology. And so from that standpoint, we feel very good about furnace and our position in that marketplace.

現在，讓我來回答您關於暖氣爐的問題。瓦斯爐約占我們住宅暖通空調業務的 40%。我還要提醒你們，2023 年爐子的性能大幅下降，2024 年有所改善。我們認為實際上還有更大的空間恢復到正常水平。不過，我們相信，我們在這個市場上的優異表現，是因為我們憑藉差異化和智慧財產權保護的技術，正在贏得市場份額。因此從這個角度來看，我們對熔爐以及我們在該市場中的地位感到非常滿意。

Hopefully, Jeff, that helps.

希望這能幫到你，傑夫。

Kyle Menges, Citigroup.

凱爾門格斯，花旗集團。

And Louis, sad to see you go. It was great working with you and best of luck.

路易斯，很遺憾你要走了。和你一起工作非常愉快，祝你一切順利。

Yes, thank you.

是的，謝謝。

Yes. I mean I would love to just maybe unpack the $1 billion or so of data center pipeline that you identified. I suppose how did you guys kind of arrive at that figure? And then just what's your sense of what? Win rate could be -- or maybe what a respectable win rate would be for you guys, would be helpful.

是的。我的意思是，我很想詳細分析你提到的價值約 10 億美元的資料中心專案。我想問你們是怎麼得出這個數字的？那麼，你對「什麼」的感受究竟是什麼？勝率可以這樣說——或者，對你們來說，怎樣的勝率才算合格，這會很有幫助。

Yes, Kyle, it's really quite a great question, but it's hard to give you a very clear answer. I can tell you though that the funnel is made up of a number of large projects with a number of customers. We have been investing significantly in our commercial team. And so this is not a focused view.

是的，凱爾，這確實是個很好的問題，但很難給你一個非常明確的答案。但我可以告訴你，這個銷售漏斗是由許多大型專案和許多客戶組成的。我們一直在對我們的商業團隊進行大量投資。所以這不是一個聚焦的觀點。

There's a number out there. There's a couple that are -- big projects that are hyperscale related. We've also invested pretty significantly in expanding our portfolio into e-Pods and being able to provide that solution set.

外面確實有這麼一個數字。其中有幾個是──都是與超大規模相關的大型計畫。我們也投入了大量資金，將我們的產品組合擴展到 e-Pods，並能夠提供相應的解決方案。

To give you a number on win rate would be tough. It really would. The recent two really nice bigger orders that we received, we were hopeful in negotiating and feeling good, but that was a big win for us. And so I think where I would go with this for now is be assured, we're investing -- we've invested in our commercial teams, we're investing in capacity, and we're going to continue to drive growth in this space. And so we believe it will be a meaningful part of Regal for the future.

很難給出具體的勝率數字。確實如此。最近我們收到了兩筆非常好的較大訂單，我們在談判中充滿希望，感覺很好，但這對我們來說是一次巨大的勝利。所以我覺得目前來說，大家可以放心，我們正在投資——我們已經投資了我們的商業團隊，我們正在投資產能，我們將繼續推動這個領域的成長。因此我們相信，它將成為 Regal 未來發展的重要組成部分。

And then we'll have to come back to give you a little more clarity on how we think about win rates after a bit of time.

過一段時間後，我們會再回來，更清楚地解釋我們對勝率的看法。

Makes sense. And then maybe turning to free cash flow. I can appreciate some of the reasons why free cash flow guide was lowered for this year. But I am just curious, your confidence level in free cash flow being better next year and then ability to execute on further deleveraging. And I guess, it would be helpful to hear a ballpark of how much lower interest expense could potentially be next year as well.

有道理。然後或許可以考慮自由現金流。我理解今年下調自由現金流預期的一些原因。但我很好奇，您對明年自由現金流改善以及進一步去槓桿化的能力有多大信心？我想，如果能大致了解明年的利息支出可能會降低多少，那就更好了。

Yes. So the free cash flow going into next year, so if we bridge off of this year, which we're saying $625 million, and I said in my prepared remarks that we expect to be at almost $900 million next year.

是的。因此，明年的自由現金流，如果我們以今年的6.25億美元為基礎，正如我在準備好的演講稿中所說，我們預計明年將達到近9億美元。

The way we get there is we would expect some growth, so some EBITDA expansion, and then we would expect maybe another $60 million, $70 million coming through working capital to help us bridge the gap a bit, along with lower cash restructuring. Cash interest comes down, we expect by a good $40 million next year. And then there's some offsets, of course, on cash taxes and a bit of CapEx, but those are the main bridge items to get to $900 million.

我們實現目標的方式是，我們預計會有一些成長，也就是 EBITDA 擴張，然後我們預計可能會有 6,000 萬到 7,000 萬美元的營運資金來幫助我們稍微彌補一下缺口，同時減少現金重組。現金利息支出預計明年將減少 4,000 萬美元。當然，還有一些現金稅收和一些資本支出的抵消，但這些是達到 9 億美元目標的主要過渡項目。

So we feel pretty good. I mean the free cash flow this year was certainly hampered by some of the inventory challenges that I've talked about. And while we're still expecting this year that we'll get some improvement in working capital as we close out the year, it was not where we expected it to be as we entered the year from a working capital standpoint. And so we feel good about next year being able to drive out more of that inventory and bridging more of that gap.

我們感覺還不錯。我的意思是，今年的自由現金流確實受到了我之前提到的一些庫存挑戰的影響。雖然我們仍然預計今年年底營運資金會有所改善，但從營運資金的角度來看，它並沒有達到我們年初的預期。因此，我們對明年能夠清理更多庫存、彌補更多缺口充滿信心。

As far as the leverage standpoint. From a leverage standpoint, we expect that we'll end next year at roughly 2.5 times. That incorporates the $900 million that we have in free cash flow. Helping to pay down the debt, we have a bond that's coming due, that we are currently working through the -- and finalizing the strategy. Here, we expect to have that done here in the next month or so.

從槓桿角度來看。從槓桿率的角度來看，我們預計明年年底我們的槓桿率將約為 2.5 倍。這其中包括我們擁有的9億美元自由現金流。為了幫助償還債務，我們有一筆即將到期的債券，我們目前正在研究並最終確定應對策略。我們預計在接下來的一個月左右就能完成這項工作。

And then we will have a term loan that is also prepayable. We expect that to be as much -- maybe about $900 million. And so that should execute in the first quarter, and we will then make progress paying down that loan, which would come from the $900 million of free cash.

然後我們還會有一筆可提前償還的定期貸款。我們預計金額將達到這個數字——可能在9億美元左右。因此，這應該會在第一季執行，然後我們將利用9億美元的自由現金來償還貸款。

So that's the way we're thinking about it. And so our ability to get down to 2.5 times, we think, is very good. And we do expect that we can generate this cash flow and have good visibility on how to get there.

這就是我們考慮的方式。因此，我們認為，我們能夠將時間縮短到 2.5 倍是非常好的。我們預計能夠產生這筆現金流，並且對如何實現這一目標有清晰的認識。

Tomo Sano, JPMorgan.

Tomo Sano，摩根大通。

This is Tomo. Louis, although we have only just recently met, I wanted to say thank you for your leadership and wish you continued success.

這是托莫。路易斯，雖然我們認識不久，但我還是要感謝你的領導，並祝你繼續成功。

Thank you, Tomo. Thank you so much.

謝謝你，Tomo。太感謝了。

My question is, could you share more details on the CEO succession process, including timeline, criteria for the new leader, and how you are ensuring continuity in strategies and execution, please?

我的問題是，您能否詳細介紹CEO繼任流程，包括時間表、新領導人的標準，以及您如何確保策略和執行的連續性？

Yes. Tom, thank you. And I'm actually going to pass it initially to Rakesh Sachdev, our Chairman of the Board, who has some prepared remarks that he'd like to share. So Rakesh?

是的。湯姆，謝謝你。實際上，我首先要把這個議題轉交給我們的董事會主席拉凱什·薩赫德夫，他有一些準備好的發言想要分享。那麼，拉凱什呢？

Thanks, Louis. Yes. I think as you look at where the company is and the work that Louis and the team have done over the last six years, it's really quite remarkable, the transformation that has taken place. This is a company that is now very decentralized. There's a strong bench of leaders.

謝謝你，路易斯。是的。我認為，當你審視公司目前的狀況以及路易斯和他的團隊在過去六年所做的工作時，你會發現公司發生的轉變確實非常了不起。這是一家目前高度分散化的公司。公司擁有一批實力雄厚的領導人才。

You can -- you heard Louis talk about the cash flow generation in this business. It's a high gross margin business. We've got scale, and we are at the heels of seeing some significant growth. So we are in a great place.

你可以——你聽路易斯談過這個行業的現金流產生情況。這是一個毛利率很高的行業。我們已經具備了規模，並且即將迎來顯著成長。所以我們處境很好。

Louis and the Board, we've been having this discussion about the next phase of growth in this company for the next several years. And we decided this might be a good time. And we have started a process. We have recruited a leading executive search firm. We have kicked off the process just now.

路易斯和董事會，我們過去幾年一直在討論公司未來發展的新階段。於是我們覺得現在或許是個好時機。我們已經開始了這項程序。我們聘請了一家頂尖的高階主管獵人頭公司。我們剛剛啟動了這個流程。

And we'll be very thoughtful and very deliberate in appointing the succession -- successor to Louis. And Louis is, of course, going to stay on, and he's -- as we said, it's business as usual until we find and appoint the new CEO leader.

我們將非常謹慎、非常謹慎地任命路易的繼任者。當然，路易斯會繼續留任，正如我們所說，在我們找到並任命新的執行長之前，一切照常進行。

So I expect it will take about four to six months before we appoint somebody, but there is no rush. We want to make sure we find and appoint the best leader. We have a search committee in the Board. There are four of us, three CEOs, one active CEO, two former CEOs. So we've got some great eyes on making this decision. And rest assured, we will find a great person to fill in this role.

所以我預計大概需要四到六個月的時間才能任命合適的人選，但並不著急。我們希望確保找到並任命最優秀的領導人。董事會中設有遴選委員會。我們一行四人，三位首席執行官，一位現任首席執行官，兩位前任首席執行官。所以，我們請了一些非常專業的專家來做這個決定。請放心，我們一定會找到一位非常合適的人選來擔任這個職位。

So with that, Louis, I'll turn it back to you.

那麼，路易斯，現在輪到你了。

Yes. Thanks, Rakesh. And Tomo, just to emphasize Rakesh's point there and as I said earlier, we are going to ensure it's a smooth and orderly transition. And with our team -- our team has never been stronger, deep into the organization.

是的。謝謝你，拉凱什。托莫，我只是想強調拉凱什剛才的觀點，正如我之前所說，我們將確保過渡平穩有序。而我們的團隊—我們的團隊從未像現在這樣強大，這種強大已經滲透到組織的各個角落。

And the message is business as usual. That's where we're going to be focused on what's in our control and continue to execute as we have done in the past. So hopefully, that was helpful, Tomo.

而傳達的訊息是：一切照舊。我們將專注於我們能夠控制的事情，並繼續像過去那樣執行。希望這對你有幫助，Tomo。

Nigel Coe, Wolfe Research.

Nigel Coe，Wolfe Research。

Maybe a question for the Chairman again. Are you fully committed to an external candidate? Or are there other internal options as well? And when you think about the profile of the person you're seeking, would it be with a very similar background to Louis in terms of operational chops? Or are you looking for maybe slightly different attributes?

或許應該再問主席一個問題。你是否完全信任外部候選人？或者還有其他內部選項嗎？當你考慮你所尋找的人選時，他/她的營運能力是否與路易斯非常相似？或者您在尋找略有不同的屬性？

Thanks for the question. Yes, absolutely. We are doing a comprehensive search. We are looking at external candidates. We're not going to rule out internal candidates, but you can imagine that this is going to be a very comprehensive search, a thoughtful search. And yes, we will be looking for a candidate who has demonstrated strong leadership skills, like Louis has had, running complex global businesses. We're going to be focused on growth.

謝謝你的提問。是的，絕對的。我們正在進行全面調查。我們正在考慮外部候選人。我們不會排除內部候選人，但你可以想像，這將是一次非常全面、深思熟慮的搜尋。是的，我們會尋找一位像路易斯一樣，展現出強大領導能力，能夠經營複雜全球業務的候選人。我們將專注於成長。

Operations has always been in the DNA of Regal Rexnord, and we've got some great folks who are leading that. But we also need commercial and growth leadership, which we'll be looking for in the next leader who is going to lead this company.

營運一直是 Regal Rexnord 的核心業務，我們有一些非常優秀的人才在領導這項工作。但我們也需要具備商業和成長的領導力，而這正是我們將在下一任公司領導人身上尋找的特質。

So -- and the cultural aspect is also very important. We have created a great culture in this company, and we want to make sure that whoever leads this company will continue to foster that culture going forward.

所以——文化因素也非常重要。我們在公司內部營造了一種優秀的文化，我們希望確保無論誰來領導這家公司，都能繼續發揚這種文化。

That's great. And Louis, look, I've covered the stock for 20 years. And the last seven years have easily been the best. So you've done an incredible job of really changing the game for this company. So it will be sad to see you go.

那太棒了。路易斯，你看，我已經關注這支股票 20 年了。而過去七年無疑是最好的七年。所以你為這家公司徹底改變了格局，做得非常出色。所以，看到你離開我會很難過。

Thank you, Nigel.

謝謝你，奈傑爾。

But no (technical difficulty) the data center. I mean I know we've (technical difficulty) how should we think about the contribution margins on the backlog you're building? And can you maybe just be a little bit -- kind of a bit more precise on when you expect to have this new facility up and running?

但是資料中心沒有（技術難題）。我的意思是，我知道我們遇到了（技術難題），我們應該如何考慮您正在建立的待辦事項清單中的貢獻率？您能否更精確地說明一下，預計這個新設施何時能夠投入使用？

Yes. So we're -- so I'm going to go backwards. And Nigel, you're cutting out a little bit, but I think I got the intent here. We are initiating the program for setting up that new facility as we speak. We will be hiring personnel through this quarter into next, starting training. And we would expect that we will have product flowing through the facility in Q1 but not shipping until Q2 and later part of Q2. That's the initial project plan.

是的。所以，我要倒著來。奈傑爾，你省略了一些內容，但我認為我明白了你的意思。我們現在就啟動新設施的籌建工作。我們將從本季到下季持續招募人員，並開始培訓。我們預計第一季產品將開始在工廠內生產，但要到第二季或第二季後期才會出貨。這是初步的專案計劃。

From a contribution margin perspective, all of our evaluation at this point, Nigel, based on what we've bid and quoted is that this will be fleet average margins for AMC, which is actually accretive for Regal. This will be a benefit for Regal as a total business.

從貢獻毛利的角度來看，Nigel，根據我們目前的投標和報價，我們所有的評估都表明，這將是 AMC 車隊的平均毛利，這實際上對 Regal 有利。這將有利於 Regal 的整體業務發展。

Now, realize, when you think about these pods, a big part of the bill of material is our Regal product, our parallel and switchgear, our automatic transfer switches, our PDUs. And also, I want to emphasize that we're going to put our air moving products in these systems as well. And so we feel really good about where they're positioned and the margins that we will receive.

現在，請注意，當您考慮這些設備時，物料清單中很大一部分是我們的 Regal 產品、並聯開關設備、自動轉換開關和 PDU。另外，我想強調的是，我們也會將我們的空氣流動產品應用到這些系統中。因此，我們對他們的市場定位以及我們將獲得的利潤率感到非常滿意。

And I would just add that, the investments we're making today that we mentioned earlier are very CapEx light. This is more of assembly and test. And so that's important to note. This should not weigh on margins as we move forward.

我還要補充一點，我們今天所做的投資，也就是我們之前提到的那些投資，資本支出非常少。這更多是組裝和測試。所以這一點很重要。這不應影響我們未來的利潤率。

Christopher Glynn, Oppenheimer.

克里斯托弗·格林，奧本海默。

Louis, it's been a pleasure working with you and best of luck there.

路易斯，和你一起工作很愉快，祝你一切順利。

Thanks, Chris.

謝謝你，克里斯。

And it sounds like we'll be with you for a couple more quarters anyway. I had a question on the discrete automation orders. I think you said they're up 17%.

聽起來我們還要再陪你們幾個季度。我有一個關於離散自動化訂單的問題。我想你說過他們漲了17%。

Just curious how you characterize that narrow, big project, lumpy or pretty diversified? Is it a hockey stick? Or did you have a pretty -- an easier comparison? I can't recall 3Q last year. Is this just a significant sequential move, is really kind of the (technical difficulty).

我很好奇您如何評價這個範圍廣、規模大的項目，您覺得它是雜亂無章的還是相當多元化的？這是曲棍球棒嗎？或者你有沒有比較容易的比較方法？我記不清去年第三季的情況了。這只是一個重要的順序調整嗎？這其實有點…（技術難題）

(technical difficulty) And on top of that, that -- and we talked about this at our Investor Day, we did lose (technical difficulty). We are starting to get orders, and this is just another indicator of we are investing more in technology. We're trying to expand our served market and feel really good about our position in discrete automation. But again, probably the one piece I would call out to emphasize the point is, defense was quite strong in the quarter.

（技術難題）除此之外，還有一點——我們在投資者日上也談到了這一點——我們確實損失了（技術難題）我們開始接到訂單了，這再次表明我們正在加大對科技的投資。我們正在努力擴大服務市場，並且對我們在離散自動化領域的地位感到非常滿意。但再次強調，我最想指出的一點是，這一節的防守非常出色。

And then a quick follow-up on the eVTOL initial order there. Is that going to be kind of very sporadic? Or is that starting to ramp?

然後快速跟進 eVTOL 的初始訂單。那會是那種非常零星的情況嗎？或者說，這種情況逐漸加劇？

It's sporadic for now. It's not ramping. The point of emphasizing it, though, and I know you all know this, but in the aerospace industry, when you start a production order, that means you're moving forward. And if you listened to some of the announcements, for example, the LA Olympics has a contract out for 50 eVTOLs for taxis. We'll see if that comes to true fruition.

目前還只是偶爾發生。它沒有加速。不過，我想強調的是，我知道你們都知道這一點，但在航空航天工業中，當你開始一個生產訂單時，就意味著你正在向前邁進。例如，如果你聽過一些公告，你就會知道洛杉磯奧運會已經簽訂了一份合同，採購 50 架 eVTOL 飛機作為出租車。我們拭目以待，看看這是否真的能夠實現。

But this is a market that if it accelerates, Regal Rexnord is well positioned. So that's why we shared it in the prepared remarks.

但如果這個市場加速發展，Regal Rexnord 將佔有有利地位。所以，這就是我們在準備好的演講稿中提到它的原因。

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。我謹將會議交還給路易斯·平克漢姆，請他作總結發言。

Thank you, operator, and thanks to our investors and analysts for joining us today. Our team delivered strong performance in third quarter in all segments for what was in our control. Most importantly, strong orders in the quarter and order strength in fourth quarter should set us up for solid growth in 2026.

謝謝接線員，也感謝各位投資人和分析師今天蒞臨本次活動。第三季度，在我們可控的範圍內，團隊在所有業務部門都取得了強勁的業績。最重要的是，本季強勁的訂單和第四季的訂單實力應該會為我們2026年的穩健成長奠定基礎。

Stronger growth, anticipated additional margin gains, including improved tariff and rare earth mitigation, expectations for further cash flow growth and plans to reduce net leverage ratios below 3 times means we are poised to create increasingly significant value for our shareholders and other key stakeholders in 2026 and beyond.

更強勁的成長、預期的額外利潤成長（包括關稅和稀土減排措施的改善）、對進一步現金流成長的預期以及將淨槓桿率降低到 3 倍以下的計劃意味著我們已做好準備，在 2026 年及以後為我們的股東和其他主要利益相關者創造越來越大的價值。

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

再次感謝您今天蒞臨，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.

會議已經結束。感謝各位參加今天的報告會。您現在可以斷開連線了。