Standard Motor Products Inc (SMP) 2025 Q2 法說會逐字稿

Good day everyone and welcome to the Standard Motor Products second quarter 2025 earnings call. (Operator Instructions)

大家好，歡迎參加標準汽車產品 2025 年第二季財報電話會議。（操作員指示）

It is now my pleasure to turn the conference over to Tony Cristello, Vice President of Investor relations. Please go ahead.

現在我很高興將會議交給投資者關係副總裁 Tony Cristello。請繼續。

Thank you and good morning everyone and thank you for joining us on Standard Motor Products second quarter 2025 earnings conference call with me today are Larry Sills, Chairman Emeritus Eric Sills, Chairman and Chief Executive Officer, Jim Burke, Chief Operating Officer, and Nathan Is Chief Financial Officer. On our call today, Eric will give an overview of our performance in the quarter, and Nathan will then discuss our financial results. Eric will then provide some concluding remarks and open the call up for Q&A.

謝謝大家，早安，感謝大家參加標準汽車產品 2025 年第二季度收益電話會議，今天與我一起參加的是名譽董事長 Larry Sills、董事長兼首席執行官 Eric Sills、首席營運官 Jim Burke 和首席財務官 Nathan Is。在今天的電話會議上，艾瑞克將概述我們本季的表現，然後內森將討論我們的財務表現。隨後，埃里克將發表一些總結性發言，並開始問答環節。

Before we begin this morning, I'd like to remind you that some of the material that we'll be discussing today may include forward-looking statements regarding our business and expected financial results.

在我們今天早上開始之前，我想提醒您，我們今天討論的一些材料可能包括有關我們的業務和預期財務結果的前瞻性陳述。

When we use words like anticipate, believe, estimate, or expect, these are generally forward-looking statements. Although we believe that the expectations reflected in these forward-looking statements are reasonable, they are based on information currently available to us and certain assumptions made by us, and we cannot assure you they will prove correct.

當我們使用諸如預期、相信、估計或期望之類的字詞時，這些通常都是前瞻性的陳述。儘管我們認為這些前瞻性聲明中反映的預期是合理的，但它們是基於我們目前掌握的資訊和我們所做的某些假設，我們無法保證它們是正確的。

You should also read our filings in the Security Exchange commission for a discussion of the risks and uncertainties that could cause our actual results to differ from our forward-looking statements.

您還應該閱讀我們向證券交易委員會提交的文件，以了解可能導致我們的實際結果與前瞻性陳述不同的風險和不確定性。

I'll now turn the call over to Eric Sills, our CEO.

現在我將把電話轉給我們的執行長 Eric Sills。

Thank you, Tony, and good morning everyone and welcome to our second quarter earnings call. So overall, we were quite pleased with our results as the strong momentum from the first quarter has continued.

謝謝你，托尼，大家早安，歡迎參加我們的第二季財報電話會議。總體而言，我們對我們的業績感到非常滿意，因為第一季的強勁勢頭得以延續。

From a top line perspective, we posted growth of nearly 27%. Now, while the majority of this growth was from the addition of our newly acquired Nissan's business, the legacy business was up 3.5%, and that is against very challenging comps as last year's second quarter was quite strong.

從營收角度來看，我們的成長率接近 27%。現在，雖然這一成長主要來自於我們新收購的日產業務，但傳統業務也成長了 3.5%，這與去年第二季相當強勁的業績相比非常具有挑戰性。

Year-to-date we are now up about 26% or about 4% excluding this is. We're also pleased by our profit gains. Adjusted IIA increased $20 million up 190 basis points to 12%.

今年迄今為止，我們的利潤已上漲約 26%，若不計入這一部分，則上漲約 4%。我們也對利潤的成長感到高興。調整後的 IIA 增加了 2000 萬美元，上升了 190 個基點，達到 12%。

Here too, Nissan's provided much of the lift, though other segments also contributed to the growth. Due to the strength of our first half, we have decided to increase our top line expectations to the low 20% growth range from our previous guide of mid-teens growth.

在這方面，日產汽車也提供了很大的推動力，儘管其他部門也為成長做出了貢獻。由於上半年業績表現強勁，我們決定將營收預期從先前的中等成長預期上調至 20% 左右的成長區間。

I'll now review each business separately, starting with the North American aftermarket. This is comprised of two operating segments, vehicle control and temperature control, both of which had very strong quarters.

我現在將分別回顧每個業務，從北美售後市場開始。它由兩個營運部門組成，即車輛控制和溫度控制，這兩個部門的業績都非常強勁。

Vehicle control sales were up nearly 7% in the quarter and they are now up 5.3% year-to-date. Our customers continue to invest in our products as they expand their footprint recognizing the critical need for in-market product availability, and their strong sell through demonstrates the ongoing demand for our largely non-discretionary offering.

本季車輛控制銷售額成長近 7%，今年迄今已成長 5.3%。我們的客戶在擴大其業務範圍的同時，繼續投資於我們的產品，認識到市場對產品可用性的迫切需求，而他們強勁的銷售量表明了對我們主要非自由支配產品的持續需求。

Furthermore, we believe that the brand recognition we enjoy with professional technicians leads them to choose our products over others.

此外，我們相信，我們在專業技術人員中所享有的品牌認知會促使他們選擇我們的產品而不是其他產品。

Turning to our temperature control division, sales increased 5.5% over last year, which is impressive as last year's Q2 was up 28% over the prior year.

談到我們的溫度控制部門，銷售額比去年增長了 5.5%，這令人印象深刻，因為去年第二季的銷售額比上年增長了 28%。

Year-to-date, the segment is now up 12.3% over last year and last year had been one of the hottest on record.

今年迄今，該部分比去年上漲了 12.3%，去年是有記錄以來最熱的一年。

We believe there are a few things at play here. First is the impact of the timing of preseason orders. This year they came in early, as was reflected in our strong first quarter, and often that just leads to timing differences across quarters. But we believe this year that early in stock better prepared our customers for the start of the season, and they never missed a beat.

我們相信這裡有一些因素在起作用。首先是季前賽訂單時機的影響。今年他們來得早，這反映在我們第一季的強勁表現中，而這往往只會導致各個季度之間的時間差異。但我們相信，今年提前備貨可以讓我們的客戶更好地為季節的開始做好準備，而且他們不會錯過任何機會。

Here too we contend that our strong market position has created momentum for our brands and our customer sell through suggests they are doing quite well with our program.

在此，我們也認為，我們強大的市場地位為我們的品牌創造了動力，而我們的客戶銷售表明他們對我們的計劃感到非常滿意。

Next, I'll speak about our newest aftermarket segment, Nissan's Automotive, which has been part of S&P since last November. Sales remains strong in the quarter, adding $90 million in revenue.

接下來，我將談談我們最新的售後市場部門——日產汽車，該部門自去年 11 月以來一直是標準普爾的一部分。本季銷售依然強勁，營收增加 9,000 萬美元。

They continue to outperform in their markets, enjoying mid to high single digit growth. There are several contributing factors to this outperformance. First, as a non-discretionary and largely weather dependent offering, they are enjoying some of the same market tailwinds as here in the US.

它們在各自的市場中繼續表現出色，享受中高個位數的成長。有幾個因素促成了這一優異表現。首先，作為一種非自由支配且很大程度上受天氣影響的產品，它們享受著與美國相同的市場順風。

Additionally, their strong brand profile and well received go to market strategy has allowed them to grow market share in their existing categories and to gain traction in newly launched categories, specifically in what they call engine efficiency and what would fall within vehicle control here.

此外，他們強大的品牌形象和廣受好評的行銷策略使他們能夠在現有類別中擴大市場份額，並在新推出的類別中獲得吸引力，特別是在他們所謂的引擎效率和屬於車輛控制範圍的領域。

While this is a strong company in its own right, we believe that meaningful synergies exist through integration, which is well underway.

雖然這是一家實力雄厚的公司，但我們相信，透過整合可以實現有意義的綜效，而整合目前正順利進行。

For saving synergies, we have been heavily focused on product cost. As we have significant product overlap, we are combining our sourcing efforts to identify best suppliers, leveraging our combined spend and insourcing as appropriate.

為了實現協同效應，我們一直非常注重產品成本。由於我們的產品有很大的重疊，我們正在整合我們的採購努力，以確定最佳供應商，並適當地利用我們的綜合支出和內部採購。

We've also now begun taking advantage of our complementary product portfolios to pursue growth opportunities. For example, this quarter, we announced the introduction of over 800 new SKUs to the Nissan's North American customer base and are actively building out programs for Europe.

我們現在也開始利用互補的產品組合來尋求成長機會。例如，本季度，我們宣布向日產的北美客戶群推出 800 多個新 SKU，並正在積極為歐洲制定計劃。

We're really just getting started and seeing that opportunities about.

我們才剛開始，就看到了相關機會。

Lastly I'll address our non aftermarket segment engineered solutions. Sales declined 8.3% in the quarter, which reflects the ongoing trend of a slowdown in certain end markets. It's worth noting that this soft began in the second half of last year, so the comps going forward will be easier.

最後，我將討論我們的非售後市場工程解決方案。本季銷售額下降了 8.3%，這反映了某些終端市場持續放緩的趨勢。值得注意的是，此次測試於去年下半年開始，因此未來的比較將會更加容易。

We've always known and discussed that as opposed to the aftermarket, it is prone to more cyclicality, and while we can expect some volatility some volatility period to period, we believe that the longer term trends are favorable, and we believe it provides a nice complement to our aftermarket business with valuable synergies.

我們一直都知道並討論過，與售後市場相比，它更容易受到週期性的影響，雖然我們可以預期到一段時間內會出現一些波動，但我們相信長期趨勢是有利的，我們相信它通過寶貴的協同效應為我們的售後市場業務提供了良好的補充。

Turning to our operations, we are proud to announce in the quarter the official opening of our new 575,000 square foot state of the art distribution center in Shawnee, Kansas.

談到我們的運營，我們很自豪地宣布，我們將在本季度在堪薩斯州肖尼正式開設新的 575,000 平方英尺的最先進的配送中心。

We plan to fully ramp up over the balance of the year by transferring all activities from the nearby Edwardsville facility as well as by shifting portions of our volume from our other major DCs.

我們計劃透過將所有活動從附近的愛德華茲維爾工廠轉移，以及將部分業務量從我們其他主要配送中心轉移，在今年餘下時間內全面提升產能。

We will emerge with a much better balance of activities across our network with expanded capacity, redundancy for risk mitigation, and the ability to better serve our customers. It's been a heavy lift, and I thank all who were involved in this major undertaking.

我們的網路活動將更加平衡，容量將擴大，冗餘度將降低風險，我們能夠更好地服務客戶。這是一項艱鉅的任務，我感謝所有參與這項重大任務的人。

Alright, lastly, let me speak to the current tariff landscape. And while it is changing by the minute, we are hopeful that we are nearing a more stabilized environment.

好的，最後，讓我談談當前的關稅狀況。儘管情況每時每刻都在變化，但我們希望我們正在接近一個更穩定的環境。

While we are still awaiting certain trade agreements to be finalized, we believe that our diverse global footprint will continue to provide us with a competitive advantage.

雖然我們仍在等待某些貿易協定的最終敲定，但我們相信，我們多元化的全球業務將繼續為我們提供競爭優勢。

Over half our sales in the US are from products produced in North America which are largely tariff-free. The products from other regions we've been implementing our plans as previously described. It begins with mitigating costs by working with our upstream suppliers on cost sharing and by relocating production from China to lower tariff areas. However, much of our cost recovery comes from passing through the impact through to our customers at our cost.

我們在美國銷售的產品有一半以上是在北美生產的，而且這些產品基本上都是免關稅。對於其他地區的產品，我們一直在按照先前描述的計劃進行。首先透過與上游供應商合作分攤成本以及將生產從中國轉移到關稅較低的地區來降低成本。然而，我們的成本回收很大一部分來自於將影響轉嫁給我們的客戶。

Again, due to our North American footprint, we believe that the amount we need to pass through is likely less than the competition.

再次，由於我們的足跡遍布北美，我們相信我們需要通過的數量可能比競爭對手要少。

It's important to note that there is a timing delay between when costs are incurred and new pricing takes effect.

值得注意的是，成本產生和新定價生效之間存在時間延遲。

Due to this, we did incur costs in Q2 associated with previously implemented tariffs with minimal offsetting pricing, but beginning in Q3, these will begin to roughly offset. We recognize that the landscape remains fluid. As it evolves, we will continue to implement our playbook, adjusting prices up or down as needed.

因此，我們在第二季確實產生了與先前實施的關稅相關的成本，且抵銷價格極低，但從第三季開始，這些成本將開始大致抵銷。我們認識到形勢仍在不斷變化。隨著事態的發展，我們將繼續執行我們的策略，根據需要調高或調低價格。

It is worth reiterating that as most of our products are non-discretionary and as product decisions are typically made by professional repair facilities, they are fairly price inelastic at the end consumer. When you put all these moving pieces together, we were very pleased with the quarter's financial results and with our ability to execute on our initiatives during complex times.

值得重申的是，由於我們的大多數產品都是非自由支配的，而且產品決策通常由專業維修機構做出，因此對於最終消費者來說，它們的價格相當缺乏彈性。當我們把所有這些活動因素放在一起時，我們對本季的財務表現以及我們在複雜時期執行計劃的能力感到非常滿意。

So let me hand this over to Nathan we'll provide the details.

因此，讓我將此交給 Nathan，我們將提供詳細資訊。

All right thank you Eric and good morning everyone.

好的，謝謝你，艾瑞克，大家早安。

As we go through the numbers, I'll first give some color on the results for the quarter by segment and then look at the consolidated results for both the quarter and year so far.

當我們查看這些數字時，我將首先對每個部門的季度結果進行一些說明，然後查看迄今為止的季度和年度的綜合結果。

I'll then cover some key cash flow metrics and the balance sheet and finish with an update on our financial outlook for the full year of 2025.

然後，我將介紹一些關鍵的現金流量指標和資產負債表，最後更新我們對 2025 年全年的財務前景。

First, looking at our vehicle control segment, you can see on the slide the net sales of $201.7 million in Q2 we're up 6.9% with the increase driven by steady demand for our portfolio of products.

首先，看看我們的車輛控制部門，您可以在投影片上看到第二季的淨銷售額為 2.017 億美元，成長 6.9%，這一成長得益於我們產品組合的穩定需求。

Vehicle controls adjusted EEA in the second quarter, increased to 10.7%, up 30 basis points from last year.

第二季度，車輛控制調整後的 EEA 成長至 10.7%，比去年同期成長了 30 個基點。

The increase in adjusted EBITA was driven by better leverage of operating expenses on higher sales and lower factoring expenses as a result of lower interest rates in the quarter.

調整後 EBITA 的成長是由於本季利率降低導致銷售額增加，從而提高了營運費用的槓桿率，以及保理費用減少。

These items more than offset a lower gross margin rate that was pressured by the increased cost of tariffs in the quarter, the dynamics of which Eric noted earlier.

這些項目足以抵銷本季關稅成本增加帶來的毛利率下降的影響，而艾瑞克之前已經提到過這一動態。

Turning to temperature control, net sales in the quarter for that segment of $131.4 million were up 5.5%. The second quarter benefited from a strong start to the season, with weather being hot across most of the country, and we continue to see strong sell through with customers.

談到溫度控制，該部門本季的淨銷售額為 1.314 億美元，成長 5.5%。第二季受益於本季的強勁開局，全國大部分地區天氣炎熱，我們繼續看到客戶的強勁銷售。

Temperature controls adjusted EA increase in Q2 to 16.1% due to higher sales volumes that led to a higher gross margin rate, which more than offset pressure from tariff costs, as well as improved operating expenses as percent of sales for the quarter.

由於銷售量增加導致毛利率上升，溫度控制部門第二季調整後 EA 增幅達到 16.1%，足以抵銷關稅成本帶來的壓力，同時本季營運費用佔銷售額的百分比也有所提高。

Next, I'll touch on Nissans. In our second full quarter of ownership, Nissan's added $90.5 million of net sales and $16.3 million of adjusted EIA.

接下來，我將談談日產汽車。在我們擁有日產汽車的第二個完整季度中，其淨銷售額增加了 9,050 萬美元，調整後的 EIA 增加了 1,630 萬美元。

The business is performing well and again exceeded our estimate of mid-teens% coming in at 18% for the quarter. Nissan's continues to grow its sales across Europe and has also benefited from some favorable currency translation movements.

這項業務表現良好，再次超出了我們對本季 18% 左右的預期。日產汽車在歐洲的銷售持續成長，也受益於一些有利的貨幣換算變動。

Looking now at engineered solutions, sales in that segment in the quarter were down 8.3%, but this was expected, as we noted last quarter, that sales continued to be soft across most markets.

現在來看工程解決方案，本季該領域的銷售額下降了 8.3%，但這是意料之中的，正如我們上個季度所指出的，大多數市場的銷售額持續疲軟。

Adjusted even for engineered solutions in the quarter of 10% was down from last year.

即使經過調整，本季的工程解決方案也比去年同期下降了 10%。

This was the result of lower sales volume, unfavorable mix, and some impact from tariff costs that lowered the gross margin rate, but we continue to point out that IEDA continues to be healthy at 10% for this quarter, despite volume headwinds.

這是由於銷售量下降、產品組合不利以及關稅成本的影響降低了毛利率，但我們繼續指出，儘管銷售面臨阻力，但本季 IEDA 仍保持 10% 的健康水準。

To summarize and put it all together across the four segments for the second quarter, consolidated sales increased 26.7% and adjusted E to increase 190 basis points to 12% of net sales, and non-gap diluted earnings per share were up 31.6%. For the first 6 months, our sales have increased 25.8% now over last year and 4.1%, excluding Nissan's helped by strong sales in both our North American aftermarket segments.

總結第二季四個部門的整體情況，綜合銷售額成長 26.7%，調整後 E 增加 190 個基點至淨銷售額的 12%，非差距稀釋每股收益成長 31.6%。今年前 6 個月，我們的銷售額比去年同期成長了 25.8%，不包括日產，成長了 4.1%，這得益於我們北美售後市場強勁的銷售。

Tacking on a strong second quarter to a strong first quarter resulted in a year-to-date increase in adjusted EIA of 250 basis points and an increase in non-gap diluted earnings per share of 47.9%.

在第一季表現強勁的基礎上，第二季表現強勁，導致年初至今調整後的 EIA 增加了 250 個基點，非差距稀釋每股收益增加了 47.9%。

Turning now to cash flows, cash used in operations for the first six months of $5.9 million was down from cash used of $10.1 million last year. While we always use cash during the first half of the year due to seasonal working capital needs, the higher earnings allow for slightly lower usage this year, and we were pleased to turn in better performance despite paying higher cash costs for tariffs.

現在談談現金流，上半年營運現金流為 590 萬美元，低於去年的 1,010 萬美元。雖然由於季節性營運資金需求，我們總是在上半年使用現金，但今年更高的收益使得現金使用量略有降低，儘管支付了更高的關稅現金成本，我們仍然很高興能夠取得更好的業績。

Our investing activity show capital expenditures of $19.3 million which includes $7 million of investment related to our new distribution center. CapEx is slightly lower than last year as capital spending related to the new DC is nearing completion.

我們的投資活動顯示資本支出為 1,930 萬美元，其中包括與我們的新配送中心相關的 700 萬美元投資。由於與新 DC 相關的資本支出即將完成，因此資本支出略低於去年。

Financing activity show payments of $13.6 million of dividends, as well as borrowings for the year so far of $45.9 million, which were used mainly to fund our working capital and CapEx needs.

融資活動顯示，今年迄今已支付 1,360 萬美元的股息，以及 4,590 萬美元的借款，主要用於滿足我們的營運資金和資本支出需求。

No, we repaid $33.2 million on a revolver during the second quarter and expect further repayments during the second half of the year.

不，我們在第二季償還了 3,320 萬美元的循環信貸，預計下半年還會進一步償還。

Our net debt of $577.8 million at the end of the second quarter was higher than last year after we made borrowings for the Nissan's acquisition.

在我們為收購日產而藉款之後，我們第二季末的淨債務為 5.778 億美元，高於去年同期。

We finished Q2 with a leverage ratio of 3.2 times EBITDA, but accounting for a full 12 months of EBITDA from Nissan, leverage would have been lower.

我們第二季的槓桿率為 EBITDA 的 3.2 倍，但如果考慮到日產整整 12 個月的 EBITDA，槓桿率會更低。

Before I finish, I want to give an update on our sales and profit expectations for the full year of 2025, particularly now that we have much better visibility into the impact of tariffs and mitigating actions. As we noted in our release this morning, our updated outlook includes higher tariff costs and offsetting impacts.

在結束之前，我想更新我們對 2025 年全年的銷售和利潤預期，特別是現在我們對關稅和緩解措施的影響有了更好的了解。正如我們在今天早上的發布中指出的那樣，我們更新後的展望包括更高的關稅成本和抵消影響。

We are raising our sales guidance for the full year to be an increase over last year in the low 20% range.

我們將全年銷售預期提高到比去年同期成長 20% 左右。

We're also pleased to reaffirm our adjusted EBITA a margin will be in a range of 10 to 11% of net sales even after absorbing the impact of higher tariff costs and the margin compression which occurs from passing through price at our cost level.

我們也很高興地重申，即使在吸收了更高的關稅成本和以我們的成本水平轉嫁價格而產生的利潤率壓縮的影響之後，我們的調整後 EBITA 利潤率仍將在淨銷售額的 10% 至 11% 之間。

Note this updated guidance reflects the robust sales performance we've seen so far, including a full year of Nissans and pass through a pricing to cover tariffs and will result in higher earnings per share from higher sales.

請注意，此更新後的指南反映了我們迄今為止看到的強勁銷售業績，包括日產汽車全年的銷售業績，並透過定價來覆蓋關稅，並將因銷售額增加而導致每股收益增加。

To wrap up, we were very pleased with our sales and earnings growth for the year so far. With earnings up across most segments and improvements in debt leverage as anticipated, the strong performance helped us overcome the impact of additional tariff costs on the business.

總而言之，我們對今年迄今的銷售額和獲利成長感到非常滿意。隨著大多數部門的獲利成長和債務槓桿率的改善符合預期，強勁的業績幫助我們克服了額外關稅成本對業務的影響。

While the trade situation around tariffs will undoubtedly continue to evolve, we have again proven our ability to manage through the change and grow our business.

儘管圍繞關稅的貿易情況無疑將繼續發展，但我們再次證明了我們有能力應對變化並發展業務。

Thank you for your time, and I'll turn the call back to Eric for some final comments.

感謝您抽出時間，我會將電話轉回給 Eric，請他發表一些最後的評論。

Well thank you, Nathan. In closing, let me just spend a moment discussing how we're viewing things. Even in the face of a challenging economic environment, we have enjoyed several consecutive quarters of strengthening performance.

好吧，謝謝你，內森。最後，請容許我花一點時間討論我們是如何看待事物的。即使面對充滿挑戰的經濟環境，我們的業績仍連續幾季保持強勁成長。

The largest part of our business, the North American aftermarket, continues to demonstrate its resilience. It's a highly stable market with solid foundations as the addressable market expands through a growing and aging car park.

我們業務的最大部分——北美售後市場——繼續展現出其韌性。隨著停車場的不斷成長和老化，目標市場不斷擴大，這是一個高度穩定、基礎堅實的市場。

Within this attractive space, non-discretionary products tend to do better as motorists are unable to defer repairs, and our value proposition continues to resonate. Our full line coverage of professional grade products and brands, technicians, trust, and our relationship with our trading partners is strong.

在這個有吸引力的領域，非必需品往往表現得更好，因為駕駛者無法推遲維修，而我們的價值主張繼續引起共鳴。我們擁有全系列的專業級產品和品牌、技術人員、信任以及與貿易夥伴的牢固關係。

We've added two new legs to our business providing a combination of diversification and opportunities for synergies.

我們的業務增加了兩個新支柱，提供了多樣化和協同效應的機會。

Our recent geographic expansion with the acquisition of distance is exceeding our expectations. They enjoy many of the same benefits I just described for us here, both in terms of market dynamics and their place in it. And the more we work together, the more I'm impressed with their team, with their capabilities, and our ability to identify opportunities. And so we remain very bullish about the future.

我們最近透過收購距離實現的地理擴張超出了我們的預期。他們在市場動態和市場地位方面都享有我剛才所描述的許多相同優勢。我們合作得越多，我對他們的團隊、他們的能力以及我們發現機會的能力就越印象深刻。因此，我們對未來仍然非常樂觀。

And so that concludes our prepared remarks. We'll now turn it over to the moderator and open it up for questions.

我們的準備好的演講到此結束。我們現在將把時間交給主持人並開始提問。

(Operator Instructions)

（操作員指示）

Bret Jordan, Jefferies.

布雷特·喬丹，傑富瑞。

Hey, good morning, guys. This is Patrick Buckley on from Brett. Thanks for taking our questions. Still some moving pieces of tariffs but could you talk a bit more about pricing trends in the second half and maybe a range of same skew inflation assumptions within the guide.

嘿，大家早安。我是布雷特 (Brett) 的 Patrick Buckley。感謝您回答我們的問題。關稅方面仍有一些變動，但您能否再多談談下半年的定價趨勢，以及指南中一系列相同的傾斜通膨假設。

We're not going to get into the specific numbers, but our pricing, plans for the second half, most of which are now in place, are really there to cover the tariffs. So it'll be, as we've been talking. Talking about our tariff exposure due to our footprint is only on a portion of our sale, and we're looking to track with what those tariff numbers are again at our cost so you can expect it to be relatively nominal certainly on on as you look at spreading it across the entire offering.

我們不會透露具體數字，但我們的定價、下半年的計劃（其中大部分現已到位）確實是為了涵蓋關稅。正如我們一直在談論的那樣。由於我們的足跡而談論我們的關稅風險只是我們銷售的一部分，並且我們正在尋求跟踪這些關稅數字，再次考慮我們的成本，因此您可以預期它相對名義上是肯定的，因為您考慮將其分攤到整個產品中。

Got it. That's helpful. And then within the US aftermarket, could you talk a bit more on on our POS compared to sell in and I guess any signs of inventory builds to get ahead of price increases there?

知道了。這很有幫助。然後在美國售後市場，您能否再多談談我們的 POS 與銷售情況，我猜是否有任何跡象表明庫存增加可以領先於那裡的價格上漲？

Sure, so, what we've seen, is, let me take the two, segments separately vehicle control, in the quarter was up, loaded mid single digits which roughly tracks for where it's been for the year. And so we're seeing that positive sell through. It's slightly less than the sell in, and what that's reflective of is something we've been talking about the last several quarters is it's not about trying to buy ahead of price increases or or any, change in stocking strategy.

當然，我們所看到的是，讓我分別看一下這兩個部分，車輛控制在本季度有所上升，達到了中等個位數，大致與今年的水平持平。因此，我們看到了正面的銷售業績。它略低於銷售量，這反映了我們在過去幾個季度一直在談論的事情，即不是試圖在價格上漲或任何庫存策略改變之前購買。

It's more as our customers are expanding their footprint. Both by adding locations and by deepening your assortments in existing locations, we are seeing that just kind of ongoing evolution of increased inventory. So it's not a stepwise change.

隨著我們的客戶不斷擴大其業務範圍，情況也越來越好。透過增加地點和深化現有地點的商品種類，我們都看到了庫存不斷增加的趨勢。所以這不是一個逐步的改變。

It's not a reaction to get ahead of things. It's just their ongoing evolution to a broader assortment. You're seeing similar things. And temp control temp control has a little bit more quarter to quarter volatility as you well know.

這不是一種領先於事物的反應。這只是他們向更廣泛的產品種類不斷演變的過程。您也看到了類似的事情。眾所周知，溫度控制的季度波動性會更大一些。

So in the second quarter of last year, POS was up like mid-teens, so it's a tough comp here we're slightly up over that in the quarter but year-to-date it's still kind of tracking similar to what we're seeing in vehicle, which is a low singles, and, kind of smoothed across the periods.

因此，在去年第二季度，POS 上漲了大約百分之十幾，因此這是一個艱難的比較，我們在本季度略有上升，但年初至今，它仍然有點類似於我們在車輛中看到的情況，這是一個低單，並且在各個時期都趨於平滑。

Great, very helpful. That's all from us. Thanks guys.

非常好，很有幫助。我們就講到這裡。謝謝大家。

Thank you.

謝謝。

Scott Stember, Roth Capital Partners. Your line is open.

羅斯資本合夥公司的 Scott Stember。您的線路已開通。

Hi guys, good morning. This is Jack calling for Scott, just regarding Terrace, you talked a little bit about it in your prepared remarks, but, can you talk about the timing of the impacts and also if you could give any segment breakdown on where you see the price increases so far, or what is impacting more than others, going forward.

大家好，早安。我是傑克，請斯科特回答，關於 Terrace 的問題，您在準備好的發言中談到了這一點，但是，您能否談談影響的時間，以及您是否可以提供任何細分市場，說明到目前為止哪些價格上漲，或者哪些因素比其他因素影響更大，展望未來。

Yeah, hi, it's Nathan, I guess with regard to timing, maybe just to piggyback off what Eric mentioned we did see some costs come through in the second quarter, that's just basically as we started to see some higher, cost inventory turn through that had those higher tariffs on it, start to come through the P&L, and we took a little bit of time to work through, both mitigating actions on the cost side as well as with our customers to get pricing through.

是的，嗨，我是內森，我想關於時間，也許只是為了順便提一下埃里克提到的，我們確實看到第二季度出現了一些成本，這基本上是我們開始看到一些更高的成本庫存週轉，這些成本中有更高的關稅，開始通過損益表體現出來，我們花了一點時間來解決這個問題，既在成本方面採取了緩解措施，也與我們的客戶一起制定了定價。

So we did have some higher costs in the second quarter, but now going forward, I think that we should be mostly offset, fully offset for the most part in the second half of the year, with regard to segments, we really don't get into kind of profit expectations by segment or pricing and cost and so, just to note that we continue to manage it, we had good numbers in the second quarter to show that.

因此，我們在第二季確實有一些成本增加，但展望未來，我認為這些成本應該在下半年大部分被抵消，完全抵消。就分部而言，我們實際上並沒有根據分部或定價和成本來製定利潤預期，因此，需要注意的是，我們會繼續管理它，我們在第二季度取得了良好的業績，證明了這一點。

Okay great thank you and then just a few on Nissan, how did the Nissan's business perform compared to your expectations this quarter? How's the whole European aftermarket holding up and, what sort of synergies between products, have you gone through so far?

好的，非常感謝，然後關於日產，本季日產的業務表現與您的預期相比如何？整個歐洲售後市場狀況如何？到目前為止，你們的產品之間經歷了什麼樣的綜效？

And so, in terms of how it's meeting our lining up with our expectations, I would say, that it is exceeding our expectations in just about every regard, both in terms of its performance as well as how we see, moving forward into the future as a combined entity with what they bring and what what we bring. So, you're hearing a certain amount from perhaps some of the public, they traded players about how the European aftermarket. Is right now. We are outperforming it and there's a handful of reasons for that.

因此，就它如何滿足我們的期望而言，我想說，它幾乎在各個方面都超出了我們的預期，無論是在它的表現方面，還是在我們如何看待它，作為一個綜合體，憑藉他們帶來的東西和我們帶來的東西向未來邁進方面。因此，您可能會從一些公眾那裡聽到一些關於歐洲售後市場的情況的消息。就是現在。我們的表現優於它，這其中有許多原因。

One is that you have to really look at a product type by product type and so well, the whole market is going to have its dynamics within what we do, similar to what we always talk about here in North America, where it's non-discretionary, they have a big temperature control element, so it's weather dependent. The categories will tend to outperform the overall, portfolio of these, distributors.

一是你必須真正地逐一查看每種產品類型，因此，整個市場在我們所做的事情中都會有其動態，類似於我們在北美經常談論的情況，在那裡它是非自由支配的，它們有一個很大的溫度控制元件，所以它依賴於天氣。這些類別的表現往往會優於這些經銷商的整體投資組合。

But beyond that, there's no doubt about it that Nissan is gaining share and it's doing that both by getting better penetration within its existing categories, but they've also had an excellent track record over the last several years, starting well before they're part of S&P, of adding new categories, getting into new categories, which frankly is a difficult thing to do to get, to leverage your brand into something different. And they've been able to do that pushing into what we call the control categories.

但除此之外，毫無疑問，日產正在獲得市場份額，這是透過在現有類別中獲得更好的滲透率來實現的，而且他們在過去幾年中也擁有出色的業績記錄，早在加入標準普爾之前就開始增加新的類別，進入新的類別，坦率地說，這是一件很難做到的事情，要將你的品牌推向不同的領域。他們已經能夠做到這一點，進入我們所謂的控制類別。

It's still a relatively small portion of what they do, but it's been all upside for them as they have been able to get some good placements. So that's what they've been able to do thus far. Now as you think through the integration.

這仍然是他們所做工作的一小部分，但對他們來說，這一切都是有利的，因為他們能夠獲得一些不錯的職位。這就是他們迄今為止所能做到的。現在，當您思考整合問題時。

We see from specific to that the ability to accelerate that because of all the different pieces that we bring that can help fast track their launch of new category product types and so nothing specific to report we're in the 2025 is really more the preparation year. We did want to get that quick win out there with the new skews added that I spoke about, but this is really the year as we position ourselves going forward to how do we expand product portfolios on both sides of the ocean.

我們從具體情況中看到了加速這一進程的能力，因為我們帶來的所有不同部分可以幫助快速推出新類別的產品類型，所以沒有什麼具體的報告，我們在 2025 年實際上更多的是準備年。我們確實希望透過我提到的新傾斜來快速取得勝利，但今年我們真正要定位的是未來如何擴大大洋兩岸的產品組合。

So, long answer, but it was a good question because it's a really critical part of our future and it's absolutely exceeding expectations.

所以，答案很長，但這是一個很好的問題，因為它是我們未來真正關鍵的部分，而且絕對超出了預期。

Great, thank you. That was very helpful.

太好了，謝謝。這非常有幫助。

Robert Smith, Center for Performance Investing.

羅伯特‧史密斯（Robert Smith），績效投資中心。

Thank you. Thanks. Good morning. Thanks for taking my questions. Just circling back to this for a moment. Is there any, color you can give me on, the actual numbers in comparison with the prior year? And the various segments. The strengths are in any of those three categories more than others.

謝謝。謝謝。早安.感謝您回答我的問題。暫時回到這個問題。您能提供一些與前一年相比的實際數字嗎？以及各個部分。這三個類別中的任何一個都比其他類別更有優勢。

Yeah, what we're seeing in terms of, and we're just going to give it to you in more general terms and and maybe Nathan give a more flavor, but what we're seeing is that that they are tracking up mid mid to high single digits over previous years and what we are seeing.

是的，就我們所看到的而言，我們只是用更籠統的術語向您介紹，也許內森會給您更多介紹，但我們看到的是，與前幾年相比，他們的增長率處於中等到高個位數，我們也看到了這一點。

Is it is an evolving shift away or not away from but in strengthening of their newer categories as as a percentage of their business so you go back five or six years they had nothing in what they call engine efficiency and now it's I believe north of 15% maybe pushing 20%. So it is, all of their three subcategories are growing, but, the engine efficiency one is growing faster because it's adding new product types.

這是否是一種不斷發展的轉變，而是加強其新類別在其業務中所佔的百分比，因此回顧五六年前，他們在所謂的發動機效率方面一無所獲，而現在我相信它已經超過了 15%，甚至可能達到 20%。確實，他們的三個子類別都在增長，但是，引擎效率子類別的增長速度更快，因為它增加了新的產品類型。

Hm, okay, in the engineer solutions category you have a breakout of them and you have a category all other is can you give me some ideas to what what what's in all other?

嗯，好的，在工程師解決方案類別中，您對它們進行了細分，並且您有一個所有其他類別，您能給我一些關於所有其他類別中的內容的想法嗎？

Sure.

當然。

All other is a combination of things like lawn and garden, hydraulics, and stationary equipment, and, but the biggest thing in there, all other is power sports, so things like snowmobiles, side by sides, ATVs, and so on.

其他都是草坪和花園、液壓和固定設備等的組合，但其中最重要的是，其他都是動力運動，例如雪地摩托車、並排式摩托車、全地形車等等。

And how much is that of the 7? Of the all other.

那麼 7 是多少呢？所有其他的。

Yeah, we don't go more granular than that.

是的，我們不會比這更詳細。

Okay, that's been a good growth area though.

好吧，這確實是一個很好的成長領域。

It has a lot of potential. It's, as you're seeing with some of the other subcategories, seeing some softness this year as you would expect in especially in something like Power sports, which is a purely discretionary type of purchase and a high value purchase, but the long term trends within within the the subcategories under all other absolutely has some nice legs.

它有很大的潛力。正如您在其他一些子類別中看到的那樣，今年出現了一些疲軟，尤其是在動力運動領域，這是一種純粹的自由支配型購買和高價值購買，但其他所有子類別的長期趨勢絕對有一些良好的支撐。

Yeah, and just finally, with the expectation of lower interest rates, so you're going to have an opportunity to refinance that at some point.

是的，最後，由於預期利率會降低，所以你將有機會在某個時候進行再融資。

Hi Robert, it's Nathan. Yeah, we'll keep abreast of changes in interest rates. I would point out, we did the refinancing last year in connection with the Nissan's acquisition. We were able to lock in some attractive rates through interest rate swaps at that point, so we do have some fixed debt at at lower good rates, but we'll continue to watch it and if it makes sense we'll do something.

你好，羅伯特，我是內森。是的，我們會密切注意利率的變化。我想指出的是，我們去年就日產的收購進行了再融資。當時我們能夠透過利率互換鎖定一些有吸引力的利率，因此我們確實有一些較低利率的固定債務，但我們會繼續關注，如果有意義的話我們會採取行動。

Okay.

好的。

Thanks very much.

非常感謝。

Thank you.

謝謝。

(Operator Instructions)

（操作員指示）

Carolina Jolie with Gabelli. Your line is open.

卡羅萊納朱莉和加貝利。您的線路已開通。

Good morning. Thank you for taking my question. Just to start, as we look into 2026 and Shawnee is complete and Edward, Edwardsville is kind of finalized, should we expect, better margin and more efficiency, at the, I guess, at the EBIT level?

早安.感謝您回答我的問題。首先，當我們展望 2026 年，肖尼專案已經完工，愛德華和愛德華茲維爾也已基本完成時，我們是否應該期待更好的利潤率和更高的效率，我想，在息稅前利潤 (EBIT) 水平上？

Yeah, hi Caroline, it's Nathan. So we do expect to get better efficiencies, certainly coming out of the automation as well as some freight savings that we would expect just from being in the middle of the country versus on the east coast for, existing vehicle control distribution.

是的，嗨，卡洛琳，我是內森。因此，我們確實希望獲得更好的效率，這當然來自於自動化以及一些貨運節省，而這正是我們期望的，因為我們位於美國中部，而不是位於東海岸，現有的車輛控制分佈就是這樣。

That said, we did, going back a couple years, note that we would be sort of net higher in cost just because we're going to have some extra lease expense, where we are now leasing a building versus owning one, and then we'll have higher depreciation on a lot of that automation equipment, so I think we're still holding with our outlook that we'll be, 3 to 4 million sort of net higher in cost off that baseline from 2023, and then there'll be some savings offsets from that number as we go forward.

話雖如此，回顧幾年前，我們確實注意到我們的淨成本會更高，因為我們會有一些額外的租賃費用，我們現在是租賃建築物而不是擁有建築物，然後我們會對許多自動化設備產生更高的折舊，所以我認為我們仍然堅持我們的預測，從 2023 年開始，我們的淨成本將比基準高出 300 萬到 400 萬美元，然後這個數字將隨著我們節省的數字。

Great, thanks. And then just Out of curiosity, if we look at the 3rd quarter tariffs versus What you experienced in the second quarter and what you were looking at in the second quarter.

太好了，謝謝。然後出於好奇，如果我們看一下第三季的關稅與第二季經歷的關稅以及第二季所看到的情況。

Are you seeing, given kind of what's come out at this point, have your tar, are you, will your tariff cost actually come down a little?

您是否看到，鑑於目前出現的情況，您的焦油價格、關稅成本實際上會下降一點嗎？

Based on what's been announced and implemented so far, no, I mean there was like some temporary spikes in announcements, for example, in China for a couple of weeks went very high and then came back down to the 30%.

根據迄今為止宣布和實施的情況，不，我的意思是公告中出現了一些暫時的高峰，例如在中國，幾週內漲幅非常高，然後又回落到 30%。

Reciprocals that they're currently at that that spike is is is is long since absorbed so now it's more about, any changes that will occur going forward as you're seeing, and one of the things we've been saying just to to reiterate, make sure it's clear is what we have. Through to this point are tariffs that have taken effect thus far. So a lot of the announcements from last week that have yet to take effect and some of the things that that are still being negotiated, those are into the future.

他們目前所處的那個峰值的倒數是早已被吸收了，所以現在更多的是關於，正如你所看到的，未來將會發生的任何變化，我們一直在重申的一件事是，確保清楚我們所擁有的。至此為止，這些關稅均已生效。因此，上週發布的許多公告尚未生效，還有一些事情仍在談判中，這些都是未來的事。

We'll continue to execute that playbook. Most of them show things going up slightly, but we're just going to, we're going to operate as we've been stating and rise and fall with what happens.

我們將繼續執行該劇本。大多數數據都顯示情況略有好轉，但我們仍將按照我們所說的方式運作，並隨著情況的發生而起伏。

Great, thanks so much for.

太好了，非常感謝。

Your time.

你的時間。

Thank you Charlene. It appears we have no further questions at this time. I'll turn the program back to the speakers for any additional or closing remarks.

謝謝你，夏琳。目前看來我們沒有其他問題。我將把節目單交還給發言者，以便他們發表補充發言或結束語。

We want to thank everyone for participating in our conference call today. We understand there was a lot of information presented, and we will be happy to answer any follow up questions you may have. Our contact information is available on our press release or investor relations website. We hope you have a great day. Thank you.

我們要感謝大家今天參加我們的電話會議。我們理解您已提供大量信息，我們很樂意回答您可能有的任何後續問題。我們的聯絡資訊可在我們的新聞稿或投資者關係網站上找到。我們希望您度過愉快的一天。謝謝。

This concludes today's program. Thank you for your participation. You may disconnect at any time.

今天的節目到此結束。感謝您的參與。您可以隨時斷開連線。