泰科電子 (TEL) 2024 Q4 法說會逐字稿

Everyone, thank you for standing by, and welcome to the TE Connectivity Fourth Quarter and Final Year Fiscal 2024. (Operator Instructions) As a reminder, today's call is being recorded.

各位，感謝大家的耐心等待，歡迎來到 TE Con​​nectivity 2024 財年第四季和最後一年。

I'd now like to turn the call over to our host, Vice President of Investor Relations, Sujal Shah. You may now begin.

現在我想將電話轉給我們的東道主、投資者關係副總裁 Sujal Shah。你現在可以開始了。

Good morning, and thank you for joining our conference call to discuss TE Connectivity's fourth quarter and full year 2024 results and outlook for our first quarter of fiscal 2025. With me today are Chief Executive Officer, Terrence Curtin; and Chief Financial Officer, Heath Mitts. .

早安，感謝您參加我們的電話會議，討論 TE Con​​nectivity 的 2024 年第四季度和全年業績以及 2025 財年第一季度的前景。財務長希思‧米茨 (Heath Mitts)。 。

During this call, we will be providing certain forward-looking information, and we ask you to review the forward-looking cautionary statements included in today's press release. In addition, we will use certain non-GAAP measures in our discussion this morning, and we ask you to review the sections of our press release and the accompanying slide presentation that address the use of these items. The press release and related tables, along with the slide presentation, can be found on the Investor Relations portion of our website at te.com.

在本次電話會議中，我們將提供某些前瞻性訊息，我們請您查看今天新聞稿中包含的前瞻性警示聲明。此外，我們將在今天早上的討論中使用某些非公認會計準則衡量標準，我們請您查看我們的新聞稿中涉及這些項目使用的部分以及隨附的幻燈片簡報。新聞稿和相關表格以及投影片簡報可在我們網站 te.com 的投資者關係部分找到。

As you know, in September, we announced a reorganization into a two-segment structure effective with the start of fiscal 2025: our Transportation Solutions and now a larger Industrial Solutions segment, which adds the 2 businesses from Communications. Our Data and Devices business moves into the Industrial segment and is renamed Digital Data Networks. Our Appliances business will be combined with Industrial Equipment, and the new business is named Automation and Connected Living.

如您所知，9 月，我們宣布從 2025 財年開始重組為兩個部門結構：我們的運輸解決方案部門和現在更大的工業解決方案部門，其中增加了通訊部門的 2 項業務。我們的數據和設備業務進入工業領域，並更名為數位數據網路。我們的家電業務將與工業設備合併，新業務名為自動化和互聯生活。

As we talk about our results today, they will be discussed in the old 3-segment structure, and we will begin reporting our financial results in the new structure beginning in the first quarter of fiscal 2025 with an 8-K of recast financial information being issued before the end of our fiscal first quarter. (Operator Instructions)

當我們今天談論我們的業績時，我們將在舊的3 段結構中對其進行討論，我們將從2025 財年第一季度開始以新結構報告我們的財務業績，其中包含8-K 重新編制的財務資訊在第一財季結束前發布。 （操作員說明）

Now let me turn the call over to Terrence for opening comments.

現在讓我將電話轉給特倫斯以徵求開場評論。

Thank you, Sujal. And as always, we appreciate everyone joining us today. And before I get into the slides, let me just make some comments. For our fourth quarter, I am pleased that we delivered revenue and adjusted earnings per share that was ahead of our guidance driven by continued solid execution across the segments. Our teams delivered consistently in 2024 on the operational levers to drive margin improvement, along with strong cash flow generation, which was our key focus that we discussed with you all throughout this year. We delivered strong margin expansion and double-digit growth in adjusted earnings per share in what continues to be a dynamic market backdrop.

謝謝你，蘇加爾。一如既往，我們感謝今天加入我們的每個人。在開始播放投影片之前，讓我先發表一些評論。對於我們的第四季度，我很高興我們的收入和調整後每股收益超出了我們的指導，這得益於各部門持續穩健的執行。我們的團隊在 2024 年始終如一地提供營運槓桿，以推動利潤率提高，並產生強勁的現金流，這是我們今年與大家討論的重點。在持續活躍的市場背景下，我們實現了強勁的利潤率擴張和調整後每股收益兩位數的成長。

When we look at our results for fiscal 2024, we delivered record operating margins, earnings per share and free cash flow. And I guess a few things to highlight building on this. We generated over 200 basis points of adjusted operating margin expansion and double-digit earnings growth year-over-year against a flattish volume environment.

當我們審視 2024 財年的業績時，我們實現了創紀錄的營業利潤率、每股盈餘和自由現金流。我想在此基礎上需要強調一些事情。在銷售平淡的環境下，我們實現了超過 200 個基點的調整後營業利潤率擴張和兩位數的同比盈利增長。

We also continue to demonstrate the strategic positioning of our portfolio and alignment to secular trends as we benefit from the electrification and increased data connectivity adoption within the vehicle, growth in renewable energy and aerospace and defense markets and accelerated momentum in artificial intelligence applications. And the content outperformance that we saw in these markets were offset by the softness we saw in the broader industrial markets.

我們也繼續展示我們產品組合的戰略定位以及與長期趨勢的契合，因為我們受益於車輛內的電氣化和數據連接採用的增加、可再生能源、航空航天和國防市場的增長以及人工智能應用的加速發展勢頭。我們在這些市場中看到的內容優異表現被我們在更廣泛的工業市場中看到的疲軟所抵消。

And lastly, we demonstrated the strength of our cash generation model with free cash flow of approximately $2.8 billion and disciplined capital deployment that included a strong return to shareholders. I'm also pleased today to announce that our Board authorized a $2.5 billion increase to our share repurchase program that reinforces our value creation model.

最後，我們展示了現金產生模式的優勢，自由現金流約為 28 億美元，並且嚴格的資本部署，包括為股東帶來豐厚的回報。今天我還很高興地宣布，我們的董事會授權將我們的股票回購計畫增加 25 億美元，以加強我們的價值創造模式。

Now let me share some of the market trends and what we're seeing versus our earnings call that we did 90 days ago. We do continue to have some markets that are accelerating, some that are stable and some that are weak that are still trying to gain some traction, and let me highlight them by our segments.

現在讓我分享一些市場趨勢以及我們所看到的情況與 90 天前的財報電話會議相比。我們確實仍然有一些市場正在加速發展，一些市場穩定，一些市場仍然疲軟，但仍在努力獲得一些牽引力，讓我透過我們的細分市場來強調它們。

In our Transportation segment, global auto production was essentially flat in fiscal 2024 with growth in Asia being offset by declines in production by Western OEMs. As we look forward, we expect a slight decline in global auto production in fiscal 2025. We do expect continued growth in hybrid and electric vehicle production with over 70% of that production occurring in Asia, which is our largest revenue region in auto and where we're extremely well positioned. We also expect further electronification in the vehicle, which will benefit across all powertrains and will continue to drive content growth for us. In the commercial transportation markets, we continue to see end market decline with some potential improvement in the cycle later in 2025.

在交通運輸領域，2024 財年全球汽車產量基本上持平，亞洲的成長被西方原始設備製造商的產量下降所抵消。展望未來，我們預計 2025 財年全球汽車產量將略有下降。有利的位置。我們也期望車輛進一步電子化，這將使所有動力系統受益，並將繼續推動我們的內容成長。在商業運輸市場中，我們繼續看到終端市場下滑，但 2025 年稍後週期可能會有所改善。

In our Industrial segment, we continue to see strong growth in the aerospace and defense and energy markets coupled with ongoing weakness in factory automation, and that's particularly weak in Europe. In the Communications segment, growth trends that we've been talking about are continuing. In cloud data center, we see momentum accelerating in artificial intelligence across our broad customer base. We had $300 million of sales for AI applications in fiscal 2024, which is higher than our expectations, and we expect these sales will double in fiscal 2025.

在我們的工業領域，我們繼續看到航空航太、國防和能源市場的強勁成長，以及工廠自動化的持續疲軟，這在歐洲尤其疲軟。在通訊領域，我們一直在談論的成長趨勢仍在繼續。在雲端資料中心，我們看到人工智慧在我們廣泛的客戶群中的發展勢頭正在加速。2024 財年，我們的人工智慧應用銷售額達到 3 億美元，高於我們的預期，我們預計這些銷售額將在 2025 財年翻倍。

We are set up for strong performance in fiscal '25, which will build upon the momentum we established in '24. While we're continuing to work through sluggish industrial end markets, we do expect them to return to growth in 2025. We also are continuing to invest in our engineering skills, technology and operations capacity to support the growth.

我們已做好準備，在 24 年建立的勢頭基礎上，在 25 財年取得強勁業績。雖然我們繼續努力應對低迷的工業終端市場，但我們確實預計它們將在 2025 年恢復成長。我們也將繼續投資於我們的工程技能、技術和營運能力，以支持成長。

Key examples of some of the larger investments we are making are the further expansion of our Asian operations to support the ongoing growth in EV in that region as well as our continued investment to expand our engineering and capacity to support the ramps of design wins that we have in AI.

我們正在進行的一些較大投資的關鍵例子包括進一步擴大我們的亞洲業務，以支持該地區電動車的持續成長，以及我們持續投資以擴大我們的工程和能力，以支持我們贏得的設計成果的增加。

With these investments and what we see in our end markets, we do expect an acceleration of growth as we move through this coming year.

憑藉這些投資以及我們在終端市場中看到的情況，我們確實預計明年的成長將加速。

Finally, I want to reiterate that our long-term value creation model is centered around having a portfolio aligned to secular growth trends, operational levers to drive further margin expansion and a strong cash generation model to return capital to shareholders while investing in bolt-on M&A opportunities. Executing on these pillars will enable sales growth, margin and EPS expansion and strong cash generation in fiscal 2025 and beyond.

最後，我想重申，我們的長期價值創造模式的核心是擁有符合長期成長趨勢的投資組合、推動利潤率進一步擴張的營運槓桿以及強大的現金產生模式，以在投資補充性資產的同時向股東返還資本併購機會。執行這些支柱將實現 2025 財年及以後的銷售成長、利潤率和每股收益擴張以及強勁的現金產生。

So with that as an overview, let me get into the presentation starting with slide 3. And I'll jump into some additional highlights and our guidance for the first quarter of fiscal '25, and then Heath will jump into more details in his section.

因此，作為概述，讓我從幻燈片 3 開始進入簡報。我將介紹一些額外的亮點和我們對 25 財年第一季的指導，然後 Heath 將在他的部分中介紹更多細節。

Our fourth quarter sales were $4.1 billion, which was above our guidance and up 2% organically year-over-year. The upside versus our expectations was driven by the Communications segment with higher sales from artificial intelligence applications. Adjusted earnings per share of $1.95 was ahead of our guidance on a quarterly record and was up 10% versus the prior year. Our adjusted operating margins were 18.6%, and they were up 130 basis points over last year. Our free cash flow generation was very strong and was approximately $830 million in the fourth quarter.

我們第四季的銷售額為 41 億美元，高於我們的指導，年比有機成長 2%。與我們的預期相比，上漲是由通訊領域的人工智慧應用銷售增加所推動的。調整後每股收益為 1.95 美元，高於我們對季度記錄的指引，比上年增長 10%。我們調整後的營業利益率為 18.6%，比去年成長了 130 個基點。我們的自由現金流產生非常強勁，第四季約為 8.3 億美元。

Now let me turn to the full year results that you see on the slide. Full year sales were $15.8 billion with organic growth in Communications and Transportation segments offset by weakness in our Industrial Equipment end markets and headwinds from a stronger dollar. Adjusted earnings per share was $7.56 and was up 12% versus the prior year.

現在讓我談談您在幻燈片上看到的全年業績。全年銷售額為 158 億美元，通訊和運輸領域的有機成長被工業設備終端市場的疲軟和美元走強的不利因素所抵消。調整後每股收益為 7.56 美元，比上年增長 12%。

And please keep in mind that this included $0.39 of currency exchange and tax headwinds. Adjusted operating margins were 18.9% for the full year, and they expanded 220 basis points over '23. The high quality of our earnings continues to be reflected in our cash generation model, and I'm pleased with our record free cash flow of approximately $2.8 billion in 2024.

請記住，這包括 0.39 美元的貨幣兌換和稅收阻力。全年調整後營業利益率為 18.9%，比 2023 年擴大了 220 個基點。我們的高品質獲利持續體現在我們的現金產生模式中，我對 2024 年我們自由現金流達到創紀錄的約 28 億美元感到滿意。

Now as we look forward to the first quarter of '25, we are expecting our sales to be $3.9 billion, up 2% year-over-year, and it reflects the typical seasonality in our business. We expect adjusted earnings per share to be around $1.88, and this includes a $0.04 tax rate headwind versus the prior year.

現在，當我們展望 25 年第一季時，我們預計銷售額將達到 39 億美元，年增 2%，這反映了我們業務的典型季節性。我們預計調整後每股收益約為 1.88 美元，其中包括與前一年相比 0.04 美元的稅率逆風。

Now if you could please turn to slide 4. Let me make some comments on the order trends that are highlighted there. Our orders were over $3.8 billion, reflecting typical seasonality, ongoing momentum in AI programs and continued weakness in general industrial end markets. By region, our order patterns reflect strength in Asia with weakness in the West. In Transportation, sequential order patterns reflect stability in global auto production, along with ongoing market declines in commercial transport. In auto, our orders continue to reflect growth in Asia with weakness in Western markets.

現在請您翻到投影片 4。讓我對其中突出顯示的訂單趨勢發表一些評論。我們的訂單超過 38 億美元，反映了典型的季節性、人工智慧項目的持續成長動能以及一般工業終端市場的持續疲軟。按地區劃分，我們的訂單模式反映了亞洲的優勢和西方的弱勢。在運輸領域，順序訂單模式反映了全球汽車生產的穩定性以及商業運輸市場的持續下滑。在汽車領域，我們的訂單繼續反映出亞洲的成長以及西方市場的疲軟。

In the Industrial segment, we continue to see softness across factory automation and building automation, particularly in Europe. And in our Communications segment, our order levels came in as we expected and they increased nearly 40% year-over-year, in addition to the strong order growth we had last quarter. This supports the strong growth we're expecting in fiscal 2025 from artificial intelligence programs. And the trends and the innovation that are happening in these applications is an exciting growth opportunity for both TE and our industry.

在工業領域，我們繼續看到工廠自動化和建築自動化的疲軟，特別是在歐洲。在我們的通訊部門，除了上季強勁的訂單成長之外，我們的訂單水準也符合我們的預期，比去年同期成長了近 40%。這支持了我們預計 2025 財年人工智慧專案的強勁成長。這些應用中出現的趨勢和創新對於 TE 和我們的行業來說都是令人興奮的成長機會。

Now with that as a backdrop about orders, let me get into the segment results, and I'll start with our Transportation segment that is on slide 5. Highlighting our ability to generate growth over market, our auto business declined 1% organically against a global auto production decline of 5% in the fourth quarter. The 400 basis points of outperformance versus production was driven by double-digit organic growth in Asia, offset by mid-single-digit declines in the West. And quite frankly, this continued the trend that we've been seeing by region all year.

現在，以訂單為背景，讓我進入細分市場結果，我將從幻燈片 5 上的運輸細分市場開始。我們的汽車業務在第四季度全球汽車產量下降 5% 的情況下有機下降了 1%，這突顯了我們實現市場成長的能力。表現優於產量的 400 個基點是由亞洲兩位數的有機成長推動的，但被西方中個位數的下降所抵消。坦白說，這延續了我們全年按地區劃分的趨勢。

As everybody knows, automotive production and car sales dynamics are very different by different regions in the world. We do continue to expect content growth to be in the four- to six-point range long term. This is supported by data connectivity and further electronification benefit across all powertrains, our leading global position in hybrid and electric vehicles and our strong position in Asia. I do want to emphasize that and remind everyone that over 70% of EV and HEV production occurs in Asia, where we are very well positioned, and we expect the adoption of EVs and HEVs in Asia to continue the pace they've been at.

眾所周知，世界不同地區的汽車生產和汽車銷售動態差異很大。我們仍然預計內容的長期成長將在四到六點的範圍內。這得益於所有動力系統的數據連接和進一步的電子化優勢、我們在混合動力和電動車領域的全球領先地位以及我們在亞洲的強大地位。我確實想強調這一點並提醒大家，超過70% 的電動車和混合動力車生產發生在亞洲，我們在亞洲處於非常有利的地位，我們預計亞洲的電動車和混合動力車的採用將繼續保持原來的速度。

Our differentiated position is proven by the fact that we grew sales in mid-teens in Asia this year in an environment where regional production was only up mid-single digits.

今年我們在亞洲的銷售額僅成長了中個位數，這一事實證明了我們的差異化地位。

Turning to the commercial transportation business. We did see a 4% organic decline, and this was primarily driven by weakness in Europe. We do expect this business to be down again sequentially in the first quarter with potential improvement in the cycle as we move throughout the year. In our Sensors business, the sales decline continued to be driven by market weakness in industrial applications as well as portfolio automation efforts that we've talked to you about. We do expect these exits that we've talked about to be completed in 2025.

轉向商業運輸業務。我們確實看到了 4% 的有機下降，這主要是由於歐洲的疲軟造成的。我們確實預計該業務在第一季將再次環比下降，隨著全年的發展，週期可能會有所改善。在我們的感測器業務中，銷售額下降繼續受到工業應用市場疲軟以及我們與您討論過的產品組合自動化工作的推動。我們確實預計我們討論過的這些退出將於 2025 年完成。

For the Transportation segment, adjusted operating margins were 19.3% in the fourth quarter. For the full year, we delivered 20% adjusted operating margins, and these were up 300 basis points year-over-year driven by strong operational performance. And we expect our first quarter margins to be similar to the fiscal year '24 levels.

對於運輸部門，第四季調整後的營業利益率為 19.3%。全年，我們實現了 20% 的調整後營業利潤率，在強勁的營運業績推動下，年增了 300 個基點。我們預計第一季的利潤率將與 24 財年的水平相似。

So please turn to slide 6, and let me get into the Industrial Solutions segments. As you can see on the slide, our AD&M sales were up 14% organically, driven by growth in the commercial aerospace and defense markets. In both of these markets, we continue to see favorable demand trends as well as ongoing supply chain recovery. In our Energy business, sales were up 14% organically, driven by strength in the Americas and in Europe. We continue to benefit from momentum in renewables as well as investments that are being made to support increased power generation needs.

請前往投影片 6，讓我進入工業解決方案部分。正如您在幻燈片中看到的，在商業航空航太和國防市場成長的推動下，我們的 AD&M 銷售額有機成長了 14%。在這兩個市場中，我們繼續看到有利的需求趨勢以及持續的供應鏈復甦。在我們的能源業務中，在美洲和歐洲業務的強勁推動下，銷售額有機成長了 14%。我們繼續受益於再生能源的發展勢頭以及為支持不斷增長的發電需求而進行的投資。

Our Medical business declined slightly in the quarter and the Industrial Equipment business declined 20% organically. For the full year, we saw growth in the aerospace and defense, energy and medical businesses. On the margin front, Industrial segment margins were 15.6%, and this was in line with our expectations given the current volume levels and business mix.

我們的醫療業務本季略有下降，工業設備業務有機下降 20%。全年來看，我們看到航空航太和國防、能源和醫療業務的成長。在利潤率方面，工業部門利潤率為 15.6%，考慮到目前的銷售水準和業務組合，這符合我們的預期。

So let me wrap up the segment discussion with the Communications segment, and this is on slide 7. Our Data and Devices business grew 35% organically, and our design wins are reflecting accelerating momentum. Our AI revenue came in at $300 million in fiscal 2024, and we expect sales from AI applications to double from this level in fiscal 2025 from design wins across a broad base of customers.

讓我結束與通訊部分的討論，這在投影片 7 上。我們的數據和設備業務有機成長了 35%，我們的設計成果也反映出了加速成長的勢頭。2024 財年，我們的 AI 收入達到 3 億美元，由於廣泛客戶群的設計獲勝，我們預計 2025 財年 AI 應用程式的銷售額將在此基礎上翻一番。

Our appliance business grew double digits again, the second quarter (inaudible), and this was really driven by strength that we saw both in the Americas as well as in Asia. The segment had adjusted operating margins of 21.7%, and this was aligned with our expectations. Margins did show a significant improvement over last year, and that was driven by strong operating leverage on the higher volume that we had on the segment.

我們的家電業務在第二季度再次實現兩位數成長（聽不清楚），這實際上是由我們在美洲和亞洲看到的實力所推動的。該部門調整後的營業利潤率為 21.7%，符合我們的預期。與去年相比，利潤率確實出現了顯著改善，這是由於我們在該領域的銷售量較高而產生的強勁營運槓桿所推動的。

So with that summary, let me turn it over to Heath, who will get into more details on the financials as well as our expectations going forward.

因此，讓我將這個總結轉交給 Heath，他將詳細介紹財務狀況以及我們未來的預期。

Thank you, Terrence, and good morning, everyone. Before I get into the details of our financials, I want to reiterate something that Terrence said earlier. We are dealing with a dynamic market environment. So our focus this past year has been on improving margins and earnings. I am pleased that we delivered record margin, EPS and free cash flow in fiscal '24.

謝謝你，特倫斯，大家早安。在詳細介紹我們的財務狀況之前，我想重申特倫斯之前所說的話。我們正在應對一個動態的市場環境。因此，我們去年的重點是提高利潤率和收益。我很高興我們在 24 財年實現了創紀錄的利潤率、每股盈餘和自由現金流。

For the quarter, adjusted operating income was $755 million with an adjusted operating margin of 18.6%. GAAP operating income was $651 million and included $5 million of acquisition-related charges and $99 million of restructuring and other charges. For the full year, restructuring charges were $144 million, reflecting continuing footprint optimization efforts, and I expect restructuring charges in fiscal '25 to be at or below the $100 million level.

該季度調整後營業收入為 7.55 億美元，調整後營業利益率為 18.6%。GAAP 營業收入為 6.51 億美元，其中包括 500 萬美元的收購相關費用以及 9,900 萬美元的重組和其他費用。全年的重組費用為 1.44 億美元，反映出持續的足跡優化工作，我預計 25 財年的重組費用將達到或低於 1 億美元的水平。

Adjusted EPS was $1.95 and GAAP EPS was $0.90 for the quarter and included a tax charge of $0.78 related to the increase in the valuation allowance for deferred tax assets. Additionally, we had restructuring and acquisition other charges of $0.26.

本季調整後每股收益為 1.95 美元，公認會計準則每股收益為 0.90 美元，其中包括與遞延稅資產估值備抵增加相關的 0.78 美元稅費。此外，我們還有 0.26 美元的重組和收購其他費用。

For the fourth quarter and for the full year, the adjusted effective tax rate was approximately 22%, which was as we expected. As we move into fiscal '25, we expect our adjusted effective tax rate in Q1 to be approximately 23% with the full year 2025 being in the 23% to 24% range. The increase versus the prior year is primarily related to the impact of the Pillar II global minimum tax implementation. Importantly, our fiscal '24 cash tax rate was in the mid-teens, significantly below our adjusted effective tax rate. And you can continue to expect our cash tax rate to stay in the mid-teens longer term.

第四季和全年調整後的有效稅率約為22%，符合我們的預期。隨著我們進入 25 財年，我們預計第一季調整後的有效稅率約為 23%，2025 年將全年在 23% 至 24% 的範圍內。與前一年相比的成長主要與第二支柱全球最低稅實施的影響有關。重要的是，我們 24 財年的現金稅率為 15 左右，遠低於我們調整後的有效稅率。從長遠來看，您可以繼續預期我們的現金稅率將保持在十幾歲左右。

Now turning to slide 9 for additional information on full year performance. Fiscal '24 sales of $15.8 billion were flat on an organic basis, We did have organic growth in the Communications and Transportation segments, which was offset by the Industrial segment.

現在請參閱投影片 9，以了解更多有關全年業績的資訊。24 財年銷售額為 158 億美元，有機成長持平。

Adjusted operating margins were 18.9% for the full year with margin expansion of 220 basis points year-over-year driven by strong operational performance. At the segment level, we expanded margins by 300 basis points in Transportation and nearly 400 basis points in Communications, resulting in a roughly 20% adjusted operating margins for both segments in 2024.

全年調整後營業利益率為 18.9%，在強勁的營運績效推動下，利潤率較去年同期成長 220 個基點。在細分市場層面，我們將交通運輸領域的利潤率提高了300 個基點，將通訊領域的利潤率提高了近400 個基點，導致2024 年這兩個領域的調整後營業利潤率大約提高了20 %。

Adjusted earnings per share were $7.56, up 12% year-over-year, driven by margin expansion and included headwinds of $0.39 from currency exchange and a higher tax rate. And given the flattish market environment, double-digit EPS growth in this environment is something I'm very proud of.

調整後每股收益為 7.56 美元，年增 12%，這主要得益於利潤率擴張，以及貨幣兌換和稅率上漲帶來的 0.39 美元的不利因素。考慮到市場環境平淡，在這種環境下每股盈餘兩位數的成長是我非常自豪的。

Turning to cash. As you may recall, we generated record free cash flow of approximately $2.4 billion in our fiscal '23. And I'm pleased to share we exceeded this by $400 million to a new record of $2.8 billion in fiscal '24, which was up 17% year-over-year. Our free cash flow reflects 120% conversion to adjusted net income and was in the high teens as a percentage of sales, demonstrating the high quality of our earnings. And as we look forward, we expect free cash flow conversion to remain above 100%.

轉向現金。您可能還記得，我們​​在 23 財年創造了約 24 億美元的創紀錄自由現金流。我很高興地告訴大家，24 財年我們的銷售額超出了 4 億美元，達到 28 億美元的新紀錄，比去年同期成長 17%。我們的自由現金流反映了 120% 轉換為調整後淨利潤，佔銷售額的百分比高達十幾歲，這表明我們收入的高品質。展望未來，我們預期自由現金流轉換率將維持在 100% 以上。

In fiscal '24, we returned roughly $2.8 billion to shareholders through share buybacks and dividends, and we deployed approximately $340 million, aligned with our bolt-on acquisition strategy. Our cash generation and healthy balance sheet gives us more optionality with uses of capital. We will continue to have a strong return of capital to shareholders, and as you saw today, we announced an additional $2.5 billion repurchase authorization, which supports our optionality.

在 24 財年，我們透過股票回購和股利向股東返還了約 28 億美元，並部署了約 3.4 億美元，與我們的補強收購策略保持一致。我們的現金產生和健康的資產負債表為我們在資本使用方面提供了更多選擇。我們將繼續為股東帶來強勁的資本回報，正如您今天所看到的，我們宣布了額外的 25 億美元回購授權，這支持了我們的選擇性。

We will also look to pursue more bolt-on acquisition opportunities at attractive valuations. And we are seeing a more favorable deal environment than we have seen in the past few years, so I'm a bit more bullish on our inorganic opportunities.

我們還將尋求以有吸引力的估值尋求更多補強收購機會。我們看到了比過去幾年更有利的交易環境，因此我對我們的無機機會更加看好。

Before we turn over to questions, let me reinforce that we expect to build upon our performance in '24 to deliver even stronger financial performance in 2025. We are expecting a return to growth this fiscal year, and our investments in markets with secular trends are expected to accelerate as we move through the year. In addition, we expect to deliver margin and EPS expansion along with strong free cash flow generation.

在我們開始提問之前，讓我強調一下，我們希望在 24 年業績的基礎上，在 2025 年實現更強勁的財務業績。我們預計本財年將恢復成長，隨著這一年的推移，我們對具有長期趨勢的市場的投資預計將加速。此外，我們預計將實現利潤率和每股盈餘的擴張以及強勁的自由現金流產生。

Now with that, let's open it up to questions.

現在，讓我們提出問題。

Thank you, Heath. Ellie, can you please give the instructions for the Q&A session?

謝謝你，希斯。艾莉，你能指導一下問答環節嗎？

(Operator Instructions)

（操作員說明）

Terrence, I'm hoping you can just perhaps expand more on the AI opportunity that you see unfolding going forward. There's been a lot of discussion around what's happening and some of the shifts here. So, would love to hear your perspective. What sort of customer diversity do you both have here?

Terrence，我希望您能進一步擴展您所看到的人工智慧機會。關於正在發生的事情和這裡的一些轉變，已經有很多討論。所以，很想聽聽您的觀點。你們這裡有什麼樣的客戶多樣性？

And some of the recent architectural changes that we're seeing has any impact to TE? And perhaps you can leave into this discussion, how should we think about this billion-dollar AI opportunity talked about longer term? Is that getting bigger or perhaps going to happen sooner?

我們最近看到的一些架構變化對 TE 有什麼影響？也許你可以繼續討論，從長遠來看，我們該如何看待這個價值數十億美元的人工智慧機會？這種情況會變得更大還是可能會發生得更快？

Thanks, Amit. And obviously, you heard us talk about this for a number of quarters, and it's a great trend which also demands really excellent engineering and tough engineering problems we solve. It's about higher speed that all of our cloud customers need with lower latency as well, at the same time, really helping solve the power efficiency that's needed with what we provide from our product.

謝謝，阿米特。顯然，您已經聽到我們在幾個季度中談論過這一點，這是一個偉大的趨勢，也需要我們解決真正出色的工程和棘手的工程問題。我們所有的雲端客戶都需要更高的速度和更低的延遲，同時真正幫助解決我們產品提供的功能所需的電源效率。

So, it is something that we like, that engineering stickiness. I do think when you look at the trend, let's face at the baseline when we look at the growth is the design wins, we have as well as where cloud CapEx spending is going. And you can see from their reports, that just continues to increase and is expected to be up 20% again.

所以，這是我們喜歡的東西，即工程黏性。我確實認為，當你審視趨勢時，讓我們面對基線，當我們審視成長時，我們會看到設計的勝利，以及雲端資本支出的去向。從他們的報告中你可以看到，這一數字還在繼續增長，預計將再次增長 20%。

And that's really what's really funding these programs and the designs that we're working on with our customers, and our position really built on what we did from our cloud penetration from them that we talked about a few years ago. So, when we look at the momentum, to get to the momentum that you talk about, let's face it, a few quarters back, we started with $200 million and we said $250 million. Now we ended the year at $300 million.

這確實是我們與客戶合作的這些計劃和設計的真正資金來源，我們的地位實際上建立在我們幾年前談到的雲端滲透所做的事情上。因此，當我們審視勢頭時，為了達到您所說的勢頭，讓我們面對現實吧，幾個季度前，我們以 2 億美元開始，我們說 2.5 億美元。現在我們年底的營收為 3 億美元。

So, we do continue to see increased momentum, things pulling in more than actually getting pushed out. And let's face it, our customers really are just asking for everything to be accelerated. And you see that in the order patterns that we had last quarter, where our orders were up almost 100% in our Communications segment and then this quarter being up 40%.

因此，我們確實繼續看到勢頭增強，拉進來的東西多於實際被推出的東西。讓我們面對現實吧，我們的客戶實際上只是要求加快一切速度。從我們上個季度的訂單模式中可以看到，通訊部門的訂單幾乎成長了 100%，而本季成長了 40%。

So, we did talk about today in the prepared comments, we do still expect doubling of our $300 million to the $600 million next year. So, the momentum feels really good. And the $1 billion that we talked about, if anything, I think it's slides to the left more than it's going to slide to the right, it's going to be closer in on us as we continue to execute on these programs.

因此，我們今天在準備好的評論中確實談到了，我們仍然預計明年將 3 億美元翻一番，達到 6 億美元。所以，勢頭感覺非常好。我們談到的 10 億美元，如果有的話，我認為它向左滑動的程度比向右滑動的程度更大，隨著我們繼續執行這些計劃，它會更接近我們。

The one thing that I guess I didn't talk about when it comes to who our customers are, they are the hyperscalers, they are the semi companies. It's pretty broad-based similar to like we had in the cloud. And the other thing that's just as important is how you play in the ecosystem to the other people that actually have to make the architecture come to life, the other players that make acceleration chips and other silicon solutions that are very important as well. So, we do have engagement across that.

當談到我們的客戶是誰時，我想我沒有談論的一件事是，他們是超大規模企業，他們是半公司。它的基礎非常廣泛，類似於我們在雲端中的情況。另一件同樣重要的事情是，你如何在生態系統中與其他實際上必須使架構變為現實的人、製造加速晶片和其他矽解決方案的其他參與者一起發揮作用，這也非常重要。所以，我們確實在這方面有參與。

And I do think it's not concentrated on one customer, it's really across the ecosystem. And that's what I'm really proud of what the team has done. So, I think you're going to continue to see our revenue increase in this area. We've been investing, as I said in the prepared comments, around engineering skills to make sure we have the capacity to really support these ramps. And it's going to probably be the biggest growth driver for us. And next year, as you look at '25 clearly with what we've laid out for you.

我確實認為它並不集中於某個客戶，而是整個生態系統。這就是我對團隊所做的事情感到非常自豪的地方。因此，我認為您將繼續看到我們在這一領域的收入成長。正如我在準備好的評論中所說，我們一直在圍繞工程技能進行投資，以確保我們有能力真正支持這些坡道。這可能會成為我們最大的成長動力。明年，當您透過我們為您安排的內容清楚地看到 '25 時。

Thank you, Amit. Can we have the next question please?

謝謝你，阿米特。我們可以問下一個問題嗎？

Wamsi Mohan from Bank of America.

美國銀行的瓦姆西‧莫漢 (Wamsi Mohan)。

Yes, thank you so much. Terrence, I was hoping maybe you could unpack your comment on the content outgrowth in Asia. That sounded closer to 10 points of outgrowth. I was wondering, how much of that is coming from EV mix versus increased electronification in that region? And do you see those trends sustaining in fiscal '25 as well?

是的，非常感謝。泰倫斯，我希望您能談談您對亞洲內容成長的評論。這聽起來接近 10 個百分點的成長。我想知道，其中有多少來自電動車混合與該地區電子化程度的提高？您認為這些趨勢在 25 財年也會持續嗎？

Yes. A couple of things. I think what's important is, first off, being when we sit here today and you think about Asia, Asia is very much it's our largest revenue region. It's also where the vast majority of the EVs are made. And if you look at just last year, Wamsi, there were four million more electric vehicles made last year. They were all made in Asia, while the West was sideways and slightly down from a production perspective.

是的。有幾件事。我認為重要的是，首先，當我們今天坐在這裡想到亞洲時，亞洲在很大程度上是我們最大的收入地區。這也是絕大多數電動車的生產地。如果你看看去年，Wamsi，去年電動車的產量增加了 400 萬輛。它們都是亞洲製造的，而西方從生產角度來看則處於橫向和略微下降的狀態。

And when you look at overall Asia car production, it was up mid-single digits. Our revenue was up mid-double digit. So, really nice content outperformance. Certainly, it's the EV momentum. It is also data in the vehicles. A Chinese vehicle as well as any Asian vehicle, you look at the software that's getting put into them, that needs more data connectivity in the car as well as the architecture continue to evolve.

當你觀察亞洲汽車總產量時，你會發現它成長了中個位數。我們的營收成長了中兩位數。所以，內容的表現非常好。當然，這是電動車的動力。它也是車輛中的數據。無論是中國車輛還是任何亞洲車輛，您都會看到安裝在它們中的軟體，這些軟體需要汽車中更多的數據連接以及不斷發展的架構。

So, the outperformance is both EV as well as everything we get from a content across all powertrains. And we do expect that you're going to continue to see EV production growth probably similar in the units that we had this year, around four million units. That's going to be mainly driven by Asia, and we feel very well positioned for that.

因此，出色的表現既在於電動車，也在於我們從所有動力系統的內容中獲得的一切。我們確實預計，電動車產量的成長可能與今年的產量類似，約 400 萬輛。這將主要由亞洲推動，我們感覺自己已經做好了充分的準備。

Thank you, Wamsi. Can we have the next question please?

謝謝你，瓦姆西。我們可以問下一個問題嗎？

Question comes from Steven Fox of Fox Advisors. Your line is now open.

問題來自福克斯顧問公司的史蒂文·福克斯。您的線路現已開通。

Hi, good morning everyone. I was wondering if you could help us maybe reset a little bit on the new segments that you're switching to this year in terms of just how to think about growth by the two segments, maybe margin expansion and how it maybe compares on a pro forma basis to what you just reported?

嗨，大家早安。我想知道您是否可以幫助我們重新調整今年您要轉向的新細分市場，如何考慮這兩個細分市場的增長，也許是利潤率擴張以及與專業人士的比較為您剛才報告的內容提供依據嗎？

Yes. A couple of things. We will, as Sujal said in his premade remarks, we're going to give you all data through an 8-K later in the quarter, Steve. So, when you sit there and when you think about the growth, it's really combining the IS and the CS segment today together.

是的。有幾件事。正如 Sujal 在他的預發言中所說，我們將在本季度晚些時候通過 8-K 向您提供所有數據，史蒂夫。因此，當你坐在那裡思考成長時，你會發現今天確實將 IS 和 CS 領域結合在一起。

And I think that will be a good baseline until we get that out. I do think when you look back at this year, you see a couple of things.

我認為在我們解決這個問題之前，這將是一個很好的基線。我確實認為，當你回顧這一年時，你會看到一些事情。

The growth this year, places like AD&M, Energy and what we saw in the Communications segment, that growth is just going to continue as we go into next year. Auto, we're going to we feel good with the 4% to 6% outperformance over production. Even though auto production will be slightly down, we do think we can drive that.

今年的成長，如 AD&M、能源以及我們在通訊領域看到的成長，隨著我們進入明年，這種成長將繼續下去。汽車方面，我們對比生產量高 4% 到 6% 的表現感到滿意。儘管汽車產量將略有下降，但我們確實認為我們可以推動這一趨勢。

And I think the real question as we look ahead is going to be some of the areas where we've seen softness, whether it be Industrial Equipment, Commercial Transportation and also in our Sensors business, just where the industrial markets have been weak and have been impacting us.

我認為，展望未來，真正的問題將是我們看到疲軟的一些領域，無論是工業設備、商業運輸還是我們的感測器業務，這些領域的工業市場一直疲軟，一直在影響著我們。

When does that relieve as we go in there and, yes, that becomes a lesser of a headwind as we go into '25. We do think that will happen through the year. We do expect growth to improve through the year. But that's how you should be thinking about '25 growth.

當我們進入那裡時，這種情況何時會緩解，是的，當我們進入 25 年後，情況會變得更小。我們確實認為這將在今年發生。我們確實預計今年的成長將會改善。但這就是你應該如何思考 25 世紀的成長。

And Heath, I don't know if you want to comment on the margin side?

希思，不知道您是否想對利潤方面發表評論？

Sure. Steve, as both Sujal and Terrence have commented, we will put out some pro forma backward looking here later in the quarter so you can update your modelling. But I'd say from there's not much change in Transportation at all. So, we kind of know what that stands.

當然。Steve，正如 Sujal 和 Terrence 所評論的那樣，我們將在本季度晚些時候在這裡發布一些估計的回顧，以便您可以更新您的模型。但我想說的是，交通方面根本沒有太大變化。所以，我們知道那是什麼意思。

And then as you add the other two segments together, you can probably get pretty close doing your own math in terms of that. But it's fair to say that the new Industrial segment would have finished 2024 in the high teens and Transportation in our 20% range.

然後，當您將其他兩個部分加在一起時，您可能可以非常接近自己進行數學計算。但可以公平地說，到 2024 年，新的工業部門的成長率將達到 10%左右，而運輸部門的成長率將達到 20% 的範圍。

As we look forward, Transportation is unchanged with the growth opportunities that Terrence just outlined and some of the investments that we're making. We feel comfortable with where we are with Transportation as we move into '25 with Transportation being a 20% or better as we move through the year.

展望未來，泰倫斯剛剛概述的成長機會以及我們正在進行的一些投資不會改變交通運輸行業。當我們進入 25 世紀時，我們對交通運輸的現狀感到滿意，隨著我們全年的發展，交通運輸的成長率為 20% 或更好。

And then the biggest move opportunity for us is in the Industrial segment, and we'll see improvement there in the new Industrial segment in '25 versus '24 on the margin front, but moving them closer to 20% at the segment level for the total company to be at 20% is the goal over the midterm. So, we're working that and feel good about where we're going to go. The biggest move that you'll see is going to be in Industrial in FY '25.

然後，對我們來說最大的變動動機將是在工業領域，我們將看到 25 年新工業領域的利潤率與 24 年相比有所改善，但在細分市場水平上將其提高到接近 20%中期目標是公司總數達到20%。所以，我們正在努力，並對我們要去的地方感到滿意。您將看到的最大舉措將是 25 財年的工業領域。

Thank you, Steve. Can we have the next question please?

謝謝你，史蒂夫。我們可以問下一個問題嗎？

Scott Davis of Melius Research.

Melius Research 的 Scott戴維斯。

Hey, good morning, guys. Terrence. Congrats on managing through a tough year as margins. Terrence, I wanted just to turn to Industrial a little bit, factory automation side. Is there any visibility on when that business stabilizes? It seems to be kind of your toughest one right now. And if we get a snapback on that in '25, that would be pretty helpful.

嘿，早上好，夥計們。泰倫斯.恭喜您度過了利潤率艱難的一年。特倫斯，我想轉向工業一點，工廠自動化方面。該業務何時穩定下來是否有任何可見性？這似乎是你現在最艱難的一個。如果我們在 25 年能夠快速恢復這一點，那將非常有幫助。

No. Thanks, Scott, for the question. And it's an area that, in many ways, we would have thought and as we commented, we would have expected a little bit of recovery this year. I would say the areas where we really see the weakness, just to make sure you hear where we're seeing it, it is in the factory discrete factory automation space, where we have a very nice position. It's also been around building automation.

不。謝謝斯科特提出這個問題。從很多方面來說，這是一個我們會想到的領域，正如我們所評論的，我們預計今年會出現一些復甦。我想說的是我們真正看到弱點的領域，只是為了確保你聽到我們在哪裡看到它，它是在工廠離散工廠自動化領域，我們在那裡擁有一個非常好的位置。它還涉及樓宇自動化。

And the one thing I would say where while it feels it's bouncing around the bottom, I do want to make sure that that's clear. We do feel it's bouncing around the bottom. Europe got a little weaker. I would say Americas is stable. And we have seen in Asia a slight improvement.

我想說的一件事是，雖然感覺它正在底部反彈，但我確實想確保這一點是明確的。我們確實感覺到它正在底部反彈。歐洲稍微弱一些。我想說美洲是穩定的。我們在亞洲看到了輕微的改善。

So, I do think we're dealing with some regional mixes as well, Scott. I do feel there is with some of our customers, they are still working off a little bit of inventory of what they have. So, there is a little bit of destocking in there. I do think we're probably going to have to get out into our calendar '25 until we see that improvement.

所以，我確實認為我們也在處理一些區域性的混合問題，斯科特。我確實覺得我們的一些客戶仍然在處理他們所擁有的一些庫存。因此，那裡有一點去庫存。我確實認為我們可能必須進入 25 年的日曆，直到我們看到這種改進。

But right now, it's sort of bounced around the bottom and it has been a big headwind this year. It's absorbed some of the growth we had in other areas. And we do think with the trends out there, it will improve, but I think we still need a little bit more time.

但現在，它有點觸底反彈，今年是一個很大的阻力。它吸收了我們在其他領域的一些成長。我們確實認為隨著趨勢的發展，它會有所改善，但我認為我們仍然需要更多的時間。

Thank you, Scott. Can we have the next question please?

謝謝你，斯科特。我們可以問下一個問題嗎？

Mark Delaney from Goldman Sachs.

高盛的馬克·德萊尼。

Yes, good morning. Thanks for taking my question, you spoke about the success the company is having with content growth and the four to six points of outgrowth is something you think you can sustain. But as you think about auto content growth over the longer term, I'm hoping you may be able to share thoughts on the announcement from Tesla earlier this week around the plan to look to simplify their low voltage connector architecture and any implications for your company.

是的，早安。感謝您提出我的問題，您談到了公司在內容成長方面所取得的成功，並且您認為可以維持四到六個點的成長。但當您考慮汽車內容的長期增長時，我希望您能夠就特斯拉本週早些時候宣布的簡化低壓連接器架構的計劃以及對您公司的影響分享想法。

Sure. Thanks, Mark. And we don't comment on individual customers because we play with everyone, but I would just tell you, an announcement like that gets us excited because we do work with every car company in the world.

當然。謝謝，馬克。我們不會對個別客戶發表評論，因為我們與每個人一起玩，但我只想告訴你，這樣的公告讓我們感到興奮，因為我們確實與世界上每家汽車公司合作。

And when you go into messing with the architecture and evolving the architecture, there are real challenges to that. And that can be whether it's you're trying to go and say, how do I go from 12-volt to 48-volt, how do I go from distributed compute to zonal compute or central compute.

當你開始搞亂架構並改進架構時，你會遇到真正的挑戰。這可能是你是否想說，我如何從 12 伏特到 48 伏特，我如何從分散式計算到區域計算或集中計算。

And these are things that have nothing to do with an electric vehicle. They are architecture changes that happen across all powertrains. And in each one of those you may be going, also trying to solve on how do you improve assembly efficiency, which certainly Tesla always does a great job on.

而這些都是與電動車無關的事。它們是所有動力系統中發生的架構變化。在每一個你可能會去的領域，你也試著解決如何提高組裝效率，特斯拉在這方面肯定做得很好。

So, in these cases, typically the interconnects get more complicated because you're combining things together. They typically get more miniaturized, especially when you're going from 12 to 48 volt, you're using thinner wires, which also create challenges in the assembly process.

因此，在這些情況下，互連通常會變得更加複雜，因為您將事物組合在一起。它們通常會變得更加小型化，特別是當電壓從 12 伏特升至 48 伏特時，您使用的是更細的電線，這也給組裝過程帶來了挑戰。

And what occurs as you get to these more complex problems and engineering problems, it typically increases the content for us. And that's when we use the word electronification versus electrification. As you have any change where you're trying to hang more electronics on an architecture in a car, you're trying to basically improve that, that creates content opportunity for us.

當你遇到這些更複雜的問題和工程問題時，通常會增加我們的內容。這就是我們使用電子化與電氣化這個詞的時候。當你試圖在汽車的架構上懸掛更多電子設備時，你會嘗試從根本上改進它，這為我們創造了一個內容機會。

And even when we talk about the four to six, we have to realize, electronification is just as important as electrification of the powertrain and that happens across everything. So, those types of changes we're excited about. And we're fortunate that we can work with every car company in the world as they work on these next-gen architectures.

即使當我們談論四到六時，我們也必須意識到，電子化與動力總成的電氣化一樣重要，而且這種情況發生在所有事情上。因此，我們對這些類型的變化感到興奮。我們很幸運，我們可以與世界上每家汽車公司合作，因為他們致力於這些下一代架構。

Thank you, Mark. Can we have the next question please?

謝謝你，馬克。我們可以問下一個問題嗎？

Christopher Glynn from Oppenheimer.

奧本海默的克里斯托弗·格林。

Thanks. Good morning, Heath. You talked a little bit about capital allocation. I was noting the $2.5 billion repurchase. I think it's a little bigger than normal. So, I just wanted to go back to that discussion. Does that suggest any adaptations for your capital strategy?

謝謝。早安，希斯。您談到了一些關於資本配置的問題。我注意到 25 億美元的回購。我認為它比正常的要大一點。所以，我只是想回到那個討論。這是否表示您的資本策略需要進行調整？

Thanks, Chris, and I appreciate the follow-up question on this. No, I think when we sat with our Board and went through it, part of this announcement was taking into consideration the amount of cash flow that we've been generating as a company and where we need to be positioned to give us options.

謝謝克里斯，我很高興對此提出後續問題。不，我認為當我們與董事會一起討論時，該公告的一部分是考慮到我們作為一家公司產生的現金流量以及我們需要定位的位置來為我們提供選擇。

And we've used the word optionality a couple of times today and that seems to be the word that's resonating with us in terms of we do have a stronger M&A pipeline in front of us, but we've got to do deals that make sense for our owners and valuations and value creation opportunities.

今天我們已經多次使用「選擇性」這個詞，這個詞似乎引起了我們的共鳴，因為我們面前確實有更強大的併購管道，但我們必須做有意義的交易為我們的所有者提供估值和價值創造機會。

Having said that, we still have an ample excess cash flow and we have no intention of piling up on our balance sheet here. So, we never have and that's not our strategy. So, it gives us an opportunity to deploy capital via share buyback to our owners in addition to what we do with the dividend which will increase as our earnings and cash flow increases.

話雖如此，我們仍然擁有充足的過剩現金流，我們無意在此增加資產負債表。所以，我們從來沒有這樣做過，這也不是我們的策略。因此，除了我們對股利的處理之外，它還為我們提供了透過股票回購來部署資本的機會，股利將隨著我們的收益和現金流的增加而增加。

So, it's just another mechanism. I suspect it will take us out over the next couple of years in terms of that authorization. But no change in that, just maybe a little bit more bullishness about our ability to continue to generate cash flow, utilize our balance sheet and stay balanced with what we're doing.

所以，這只是另一種機制。我懷疑這將使我們在未來幾年內失去授權。但這一點沒有改變，只是對我們繼續產生現金流、利用資產負債表並與我們正在做的事情保持平衡的能力更加樂觀。

Thank you, Chris. Can we have the next question please?

謝謝你，克里斯。我們可以問下一個問題嗎？

Luke Junk from Baird.

貝爾德的路克垃圾。

Great, thank you. Good morning. Thanks for taking the question, Terrence, it would be great to get your updated perspective on TE's automotive positioning in China. Specifically you've talked a lot about Asia this morning. But I want to zoom in on China and just some of the key achievements underpinning what's been seemingly a very strong year overall there.

太好了，謝謝。早安.Terrence，感謝您提出問題，很高興能了解您對 TE 在中國汽車市場定位的最新看法。具體來說，您今天早上談論了很多有關亞洲的問題。但我想專注於中國以及支撐中國看似非常強勁的一年的一些關鍵成就。

I guess I'm thinking about your positioning with current customers, turning on new customers maybe and especially leverage to locals and just what that might mean as we move into next year.

我想我正在考慮您對現有客戶的定位，也許會吸引新客戶，尤其是對當地人的影響力，以及當我們進入明年時這可能意味著什麼。

And then simultaneously from a competitive standpoint, are you seeing any changes there, especially any local players making incremental incursions into the market in China?

同時從競爭的角度來看，您是否看到那裡發生了任何變化，特別是有哪些本土企業正在逐步侵入中國市場？

No, fair. Thanks, Luke. And first off, you have to assume, when we talk about Asia, China plays a very big part in that. About half of Asia's vehicles are made in China. So, when you think about the world and we always talk about global auto production, while there's 87 million cars made in the world, 50 million of those are made in Asia.

不，公平。謝謝，盧克。首先，你必須假設，當我們談論亞洲時，中國在其中扮演著非常重要的角色。亞洲約一半的汽車是中國製造的。因此，當你想到世界時，我們總是談論全球汽車生產，雖然世界上製造了 8700 萬輛汽車，但其中 5000 萬輛是在亞洲製造的。

And of those 50 million, half of those are in China. And China is a very important position for us. And about $2 billion of our automotive revenue is China alone. And with that type of weighting, the trends that we talk about, relate about the growth outperformance I mentioned on Asia, you can assume the same type of growth outperformance in China.

在這 5,000 萬人中，有一半在中國。而中國對我們來說是一個非常重要的陣地。光是中國就占我們汽車收入的約 20 億美元。透過這種權重，我們談論的趨勢與我提到的亞洲的成長表現相關，你可以假設中國也有同樣類型的成長表現。

And one of the things that I think has always been a strength of ours is because we play with every OEM, not just multinationals, we would not be able to drive this content outperformance if we weren't with the local OEMs.

我認為一直是我們的優勢之一是，因為我們與每個 OEM 合作，而不僅僅是跨國公司，如果我們不與本地 OEM 合作，我們將無法推動內容的卓越表現。

It's not a secret. Multinationals are losing share in China and it's inverted. So, where you used to have multinationals have two-third of the share and local Chinese OEMs have one-third. Today it's two-third Chinese OEMs, one-third multinationals and the growth that we've had just sort of proves that we are winning with the locals and winning with everybody.

這不是秘密。跨國公司正在失去在中國的市場份額，情況發生了逆轉。因此，過去跨國公司擁有三分之二的份額，而中國本土原始設備製造商擁有三分之一的份額。如今，三分之二是中國原始設備製造商，三分之一是跨國公司，我們的成長在某種程度上證明了我們正在與當地人一起獲勝，並與所有人一起獲勝。

And our market share is similar between the two. It's something that I think our team has done a great job and something we've invested heavily in. And we're actually as I mentioned in my prepared remarks, we're actually opening our sixth automotive factory in China to support the growth that we have.

我們兩者的市佔率相似。我認為我們的團隊在這方面做得非常出色，我們為此投入了大量資金。事實上，正如我在準備好的發言中提到的，我們實際上正在中國開設第六家汽車工廠，以支持我們的成長。

So, we're continuing to expand with our local resources, local engineers, local capacity. Because that is served locally, which is very important. Competitively, we still have primarily Western competitors here. It is the other companies that you cover as well as Japanese competitors play there.

因此，我們正在繼續擴大我們的本地資源、本地工程師和本地產能。因為那是本地服務，這一點非常重要。從競爭角度來看，我們這裡的競爭對手仍然主要是西方的。這是您報道的其他公司以及日本競爭對手在那裡開展的活動。

And there are some traditional Chinese competitors that we've competed against for some time, that they are not new competitors. But there are also competitors that quality, cost and everything, that is important, we have to make sure we're winning with against them as well.

我們已經與一些傳統的中國競爭對手競爭了一段時間，但他們並不是新的競爭對手。但也有一些競爭對手的品質、成本和一切，這一點很重要，我們必須確保我們也能戰勝他們。

So, I feel good about our position. It is going to be something as we look at '25, we expect Asia is going to be the driver of volume production on the world. It's going to be the driver EV. And our content outperformance that we saw in the second half, of these 5 points of outperformance we had in the second half, our content outperformance will be driven by Asia. And then we hope the Western trends pick up and that can also help us as well. But really, the Asia position is very important.

所以，我對我們的立場感到滿意。展望 25 年，我們預期亞洲將成為全球大量生產的驅動力。駕駛者將是電動車。我們在下半年看到的內容表現出色，在下半年的這 5 點表現出色中，我們的內容表現出色將由亞洲推動。然後我們希望西方趨勢回升，這也可以幫助我們。但實際上，亞洲的地位非常重要。

Thank you, Luke. Can we have the next question please?

謝謝你，盧克。我們可以問下一個問題嗎？

Saree Boroditsky from Jefferies.

來自 Jefferies 的 Saree Boroditsky。

Hi. Thanks for taking the question. I know you're going to some new segments. But just given the strong growth expected in Communication for 2025, are you still looking for 25% to 30% incremental margin on that growth specifically? Are there additional investments needed that we should think about?

你好。感謝您提出問題。我知道你要去一些新的部分。但考慮到 2025 年通訊領域預計將出現強勁成長，您是否仍在尋求 25% 至 30% 的增量利潤率？我們是否應該考慮需要額外的投資？

Sure. I'll take that. As you would expect with the type of growth that we're seeing, there are investments that we are making in that space both on the capital front to increase capacity for production to handle that type of uplift as well as engineering investments that we're making.

當然。我會接受的。正如您對我們所看到的成長類型所期望的那樣，我們正在該領域進行投資，包括資本方面的投資，以提高生產能力以應對這種類型的提升，以及我們正在進行的工程投資。

Now those have been underway and some of those are already embedded in our run rate for our 2024. So, I'm not here to suggest that it's going to be a massive uptick as we go into '25 because some of these programs have been underway for a while.

現在這些工作已經在進行中，其中一些已經納入我們 2024 年的運行率中。因此，我並不是說進入 25 年後，這一數字將會大幅上升，因為其中一些計劃已經實施了一段時間。

But as we move forward, you should expect us to continue to. From a at the segment level, from an incremental flow-through perspective, which I think you were asking, we need to dial that in a little tighter. And we can give you a little more color when we come back out in the January time frame, which will be when we first report on the new segments.

但隨著我們向前邁進，您應該期望我們會繼續這樣做。從細分層面來看，從增量流通的角度來看，我認為您正在問這個問題，我們需要將其調整得更緊一些。當我們在一月份的時間範圍內回來時，我們可以給你更多的信息，這將是我們第一次報告新細分市場的時間。

But having said that, I think 30% is probably a decent number. But that's not just coming from this AI side. That's also coming from some cost actions and other things that we're doing in the rest of that segment. So, I think you can be dialed in somewhere in that ballpark, and we'll tighten it up for you.

但話雖如此，我認為 30% 可能是個不錯的數字。但這不僅僅來自人工智慧方面。這也來自一些成本行動和我們在該細分市場的其餘部分所做的其他事情。所以，我想你可以在那個球場的某個地方撥通電話，我們會為你加強它。

Thank you, Saree. Can we have the next question please?

謝謝你，莎莉。我們可以問下一個問題嗎？

Joe Spak of UBS.

瑞銀集團的喬·斯帕克。

Thanks. Heath, you converted over 100% of free cash flow this year. I was wondering if you could just give us a little bit of color on CapEx plans for next year and whether free cash flow conversion could be similar.

謝謝。Heath，今年你轉換了超過 100% 的自由現金流。我想知道您能否向我們介紹明年的資本支出計劃以及自由現金流轉換是否會類似。

And then just to follow up on the earlier question, like if that M&A pipeline doesn't materialize, should we still expect about 100% of free cash flow to be distributed via dividends and the new buyback?

然後繼續回答先前的問題，例如如果併購管道沒有實現，我們是否仍然應該期望大約 100% 的自由現金流透過股息和新的回購來分配？

Joe, a couple of things there. First, I think and I know we may sound like a broken record, but from a modeling perspective, I would still assume roughly 5% revenue towards CapEx as a modeling. We came a little under that this year, but there's always timing elements and things.

喬，有幾件事。首先，我認為並且我知道我們可能聽起來像是打破了記錄，但從建模的角度來看，我仍然假設大約 5% 的收入用於資本支出作為建模。今年我們的表現有點差，但總是有時間因素和事情。

I do expect our CapEx in '25 versus '24 to probably be about $100 million higher. Most all of that is to support the AI program growth and some of the capacity we need to bring online from that.

我確實預計我們 25 年的資本支出與 24 年相比可能會高出約 1 億美元。其中大部分都是為了支持人工智慧專案的發展以及我們需要從中上線的一些能力。

So, if you're looking to dial in your model, it kind of feels like it's in that ballpark. And we'll continue to update you, but nothing outsized relative to that from a CapEx perspective.

所以，如果你想調整你的模型，感覺就在那個範圍內。我們將繼續向您提供最新消息，但從資本支出的角度來看，沒有什麼比這更重要的了。

From a conversion perspective, we certainly have benefited from the fact that from a cash conversion perspective that we've been able to manage working capital in a manner that you would expect in a flat growth environment. And when you're in a flat growth environment and the number of widgets that we're making is largely flat, we can go after things like inventory pretty aggressively.

從轉換的角度來看，我們當然受益於這樣一個事實：從現金轉換的角度來看，我們能夠以您在平穩增長環境中所期望的方式管理營運資金。當你處於一個平穩的增長環境中並且我們正在製造的小部件數量基本持平時，我們可以非常積極地追求庫存之類的東西。

The other thing that's worked in our favor is we've been able to, as the world is finally from a supply chain perspective recovered more coming out of the COVID swings over the past four or five years, one of the things we're able to do is just plan a little bit better and have more trust in our suppliers as well as the order patterns from our customers as we sit in the middle of everything.

另一件對我們有利的事情是，我們已經能夠做到這一點，因為從供應鏈的角度來看，世界終於從過去四五年的新冠疫情波動中恢復了更多，這是我們能夠做到的事情之一要做的只是更好地計劃一點，對我們的供應商以及客戶的訂單模式更加信任，因為我們處於一切的中間。

Now as we move into '25, we are expecting to grow, and we are expecting our volumes to be up in '25. And so that will have a natural impact of putting a little bit of pressure on working capital, both on receivables as well as on inventory. So, I think that math would tell you that I don't we're not going to be at 120% again. But I still feel confident that we're going to be over 100%. And we'll continue to update as that moves forward. But I appreciate the question and stay tuned.

現在，隨著我們進入 25 年，我們預計會成長，我們預計我們的銷售量將在 25 年增加。因此，這自然會對營運資金（包括應收帳款和庫存）產生一點壓力。所以，我認為數學會告訴你，我們不會再達到 120%。但我仍然有信心我們會超過 100%。隨著進展，我們將繼續更新。但我很欣賞這個問題並敬請關注。

Thank you, Joe. Can we have the next question please?

謝謝你，喬。我們可以問下一個問題嗎？

Joe Giordano from TD Cowen.

TD Cowen 的喬佐丹奴。

Hey, guys. Good morning. I appreciate that this is kind of happening in real time, but you're getting a lot of announcements in Germany about workers at auto facilities joining nationwide strikes. And so when you think about your auto guidance and specifically how you're dialing in the next quarter, how do you feel that kind of situation is handicapped?

嘿，夥計們。早安.我很欣賞這種情況是即時發生的，但在德國你會收到很多關於汽車工廠工人參加全國性罷工的公告。因此，當您考慮您的自動導航，特別是您在下個季度的撥號方式時，您認為這種情況如何受到阻礙？

Well, when we guide, Joe, everything we know is in our guidance. And certainly, we have customers in many of our business units that are going through unique things. And we do one thing when we think about the first quarter, we do expect global auto production to be down similar to what it was in fourth quarter year-on-year. So, I do think we are going to be seeing in the West, you're going to have that weakness at some of the things you've talked about.

好吧，當我們引導時，喬，我們所知道的一切都在我們的引導中。當然，我們許多業務部門的客戶正在經歷獨特的事情。當我們考慮第一季時，我們確實預計全球汽車產量將年比第四季下降。所以，我確實認為我們會在西方看到，你在你所談論的一些事情上會有弱點。

But Asia is going to be the real driver of growth and then in the production as we look at next year. So, next year, we do expect overall global production to be down slightly. And certainly, the decline in auto production, the mid-single digits we talked in quarter 1, Europe is going to be a big chunk of that.

但正如我們明年所看到的那樣，亞洲將成為成長和生產的真正驅動力。因此，我們預計明年全球總產量將略有下降。當然，汽車產量的下降，我們在第一季談到的中個位數下降，歐洲將是其中很大的一部分。

Thank you, Joe. Can we have the next question please?

謝謝你，喬。我們可以問下一個問題嗎？

Colin Langan from Wells Fargo.

來自富國銀行的柯林·蘭根。

Hey guys, this is Kosta Tasoulis filling in for Colin. I just wanted to place more focus on the commercial vehicle market. Can you just offer some color on how the business will impact your Transportation segment margins and full year '25?

大家好，我是科斯塔‧塔蘇利斯 (Kosta Tasoulis)，接替柯林 (Colin)。我只是想更加關注商用車市場。您能否提供一些關於該業務將如何影響您的運輸部門利潤率和 25 年全年的資訊？

Well, first off, let me talk about the market a little bit and then I'll let Heath talk about the margins. When you look out there, impact of financing rates, certainly a little bit of inventory, you do sort of see globally heavy truck market, which also includes in our world ag and construction has weakened. And we've experienced that. What's been nice is that our team has grown probably 200 basis points better than the decline.

好吧，首先讓我談談市場，然後我會讓希思談談利潤率。當你觀察那裡時，融資利率的影響，當然還有一點庫存，你確實看到全球重型卡車市場，其中也包括我們世界的農業和建築業已經疲軟。我們已經經歷過這一點。令人欣慰的是，我們的團隊成長幅度比下降幅度大約高了 200 個基點。

So, I think as we work through this cycle, which these are common here, we will get some outperformance as we're in a negative environment. And there are some things that are in '26 that on the emissions front in certain parts of the world that we do think could spark demand and improve later next year. But Heath, why don't you talk about the margin side of it?

因此，我認為，當我們經歷這個週期（這裡很常見）時，我們將在消極的環境中獲得一些優異的表現。我們確實認為 26 年世界某些地區的排放方面的一些事情可能會刺激需求並在明年晚些時候得到改善。但是希思，你為什麼不談談利潤方面呢？

Well, it's a good question because sometimes the mix within the segment can impact the Transportation segment margins there, and we've been pretty public that our Commercial Transportation business is a very profitable business for TE and for that segment obviously. Now, the softness that we're seeing does put pressure on the margins. However, it put pressure on the margins in 2024 as well. So, it's kind of in our run rate.

嗯，這是一個很好的問題，因為有時該細分市場內的混合會影響那裡的運輸細分市場的利潤率，而且我們已經公開表示，我們的商業運輸業務對於TE 和該細分市場來說顯然是一項非常有利可圖的業務。現在，我們看到的疲軟確實給利潤率帶來了壓力。然而，這也給 2024 年的利潤率帶來了壓力。所以，這在我們的運行率中。

As we move into '25, while we do expect things to improve as we work our way through the year from a market and demand perspective, we are not our assumptions on Transportation margins and holding their head at 20% or better are not contingent upon our Commercial Transportation business seeing some big uptick. So, our Auto business has performed very well and has been able to handle the headwinds that's come out of other parts of the segment.

隨著我們進入25 年，雖然我們從市場和需求的角度來看，隨著我們在這一年中的努力，情況確​​實會有所改善，但我們對運輸利潤率的假設並不樂觀，將其保持在20% 或更好並不取決於我們的商業運輸業務出現了一些大幅增長。因此，我們的汽車業務表現非常出色，並且能夠應對來自該領域其他部門的不利因素。

Thank you, Kosta. Can we have the next question please?

謝謝你，科斯塔。我們可以問下一個問題嗎？

Matt Sheerin from Stifel.

來自 Stifel 的馬特謝林。

Good morning, this is Victor on for Matt Sheerin. I was hoping to get some color on your Data & Devices business ex the AI opportunity. How is that recovery for traditional datacom applications been tracking? And how do you view the business going into 2025?

早安，我是馬特·謝林的維克多。我希望對你們的數據和設備業務（除了人工智慧機會）有所了解。傳統數據通訊應用程式的恢復情況如何追蹤？您如何看待進入 2025 年的業務？

Sure. Let me get into that. And we do talk a lot about AI. First off, we're seeing when you take outside of AI, and it is always difficult to try to parse between AI and true cloud. But as we parse it, we do actually see the cloud element returning to growth. We do see that being probably a mid-single-digit growth next year after we had a shift that really went from up to AI dollars versus nothing being invested elsewhere.

當然。讓我來談談。我們確實談論了很多關於人工智慧的話題。首先，我們看到當你脫離人工智慧之外時，嘗試解析人工智慧和真正的雲端總是很困難。但當我們分析它時，我們確實看到雲端元素恢復成長。我們確實看到，在我們真正從投入人工智慧資金而不是在其他地方進行任何投資的轉變之後，明年可能會出現中等個位數的成長。

So, it's nice to actually see that we do see more cloud programs coming back up. Enterprise continues to be sideways. This is the way I would look at it as we look at next year. And then we don't play largely in telecom networks. But I do think it's nice to see the cloud recovering spend that's outside of AI going into next year.

因此，很高興看到我們確實看到更多的雲端程式重新出現。企業繼續橫盤整理。這就是我們明年看待它的方式。然後我們在電信網路方面的業務並不多。但我確實認為，很高興看到雲端運算在人工智慧之外的支出在明年有所恢復。

Thank you, Victor. Can we have the next question please?

謝謝你，維克多。我們可以問下一個問題嗎？

William Stein from Truist Securities.

來自 Truist 證券公司的威廉·斯坦因。

Great. Thanks for taking my question. Good morning. I'm hoping, hey, I'm hoping you can comment on two things, first, the sequential decline in comms orders despite the strong results and the comments about growth next year.

偉大的。感謝您提出我的問題。早安.我希望，嘿，我希望你能評論兩件事，第一，儘管業績強勁，但通信訂單連續下降，以及關於明年增長的評論。

Perhaps this is just anticipated lumpiness, but it's been a little bit surprising to investors this morning, I think. And then also, if you could elaborate on the product exits that you mentioned. I think in the slides, you talked about this in Sensors, but maybe just give us a little more color.

也許這只是預期的波動，但我認為今天早上這對投資者來說有點令人驚訝。另外，您能否詳細說明您所提及的產品退出情況。我想在幻燈片中，您在感應器中談到了這一點，但也許只是給我們更多的色彩。

Yes, sure, Will. So, first off, on the sequential decline in orders in D&D, I think you have to realize, our orders grew 100% last quarter, 40% this quarter year-on-year. And you nailed it. Well, they're going to be lumpy based upon when the programs are in, based upon when we get to agreements with our customers. And so I think you're going to continue to see that lumpiness.

是的，當然，威爾。因此，首先，關於 D&D 訂單的連續下降，我想你必須意識到，我們的訂單上個季度增長了 100%，本季度同比增長了 40%。你成功了。嗯，根據專案何時實施、根據我們與客戶達成協議的時間，它們將會變得不穩定。所以我認為你會繼續看到這種塊狀的情況。

I think the real punchline to keep in front of you is collectively in D&D, we had $1 billion of orders in the past two quarters combined. So, that's very strong. And I would really be careful in taking one quarter versus another, what's accumulative. And what we're seeing really supports that guidance we gave you in the doubling of our AI revenue and even the cloud trends I just talked about, the non-AI cloud trends.

我認為你們面前真正的笑點是《D&D》，過去兩季我們的訂單總計達 10 億美元。所以，這是非常強大的。我真的會很小心地比較一個季度與另一個季度的累積情況。我們所看到的確實支持了我們為您提供的有關人工智慧收入翻倍的指導，甚至支持我剛才談到的雲端趨勢，即非人工智慧雲端趨勢。

In Sensors let me switch to the second question you had. In Sensors, we've been talking about pruning we've been doing to be focused and make sure we get to basically four markets that are important to us as we reposition ourselves in Sensors.

在《感應器》中，讓我轉向您提出的第二個問題。在感測器方​​面，我們一直在談論我們一直在進行的修剪，以集中精力並確保我們在重新定位感測器時能夠進入對我們來說很重要的四個市場。

It was automotive, it was heavy vehicle, it was medical and factory automation. And they're the areas that we really challenged ourselves a few years back to say, look, it's in our way to winning in those four markets. And we've been doing 80, 20 work, that has been exits. This coming year coming up, it will be about $50 million of exits that we're doing to really end this program. And you can put that in as a headwind for next year, but 2025, they'll be done.

它是汽車、重型車輛、醫療和工廠自動化。這些是我們幾年前真正挑戰自己的領域，我們說，看，這是我們在這四個市場獲勝的方式。我們已經做了 80、20 項工作，那就是退出。即將到來的一年，我們將進行約 5000 萬美元的退出，以真正結束該計劃。你可以將其視為明年的逆風，但到 2025 年，他們就會完成。

Thank you, Will. Can we have the next question please?

謝謝你，威爾。我們可以問下一個問題嗎？

Shreyas Patil from Wolfe Research.

沃爾夫研究中心的施瑞亞斯‧帕蒂爾 (Shreyas Patil)。

Hey, thanks so much for taking my question. Heath, you mentioned a little earlier that the goal is to get to 20% operating margins. Wondering if you can expand on that a little bit. It would appear that the underlying margin is probably pretty close to that level if we were to adjust out some of the cyclical challenges in Industrial and Commercial. But just curious on your thoughts.

嘿，非常感謝您提出我的問題。Heath，您之前提到我們的目標是實現 20% 的營業利潤率。想知道你是否可以對此進行一些擴展。如果我們要調整工業和商業領域的一些週期性挑戰，那麼基本利潤率可能非常接近該水準。但只是好奇你的想法。

And then on AI, just how to interpret the revenue guidance of around $600 million for next year with what appears to be two straight quarters where orders are probably close to somewhere around $400 million to $500 million per quarter.

然後在人工智慧方面，如何解釋明年約 6 億美元的收入指導，而這似乎是連續兩個季度的訂單可能接近每季 4 億至 5 億美元左右。

Yes. I'll take the margin question. We haven't gone out with formal margin guidance in terms of that. But what I was trying to do was provide a little color earlier that if you think about the new segment structure, our Transportation margins are already at 20% and will continue running at that.

是的。我來回答一下邊際問題。在這方面我們還沒有給予正式的保證金指引。但我之前想做的是提供一點說明，如果你考慮新的細分市場結構，我們的運輸利潤率已經達到 20%，並將繼續保持在這個水平。

There's always a little bit of quarter volatility either direction on that side of 20%. But we feel good about where we are, particularly in light of the softness in the commercial transportation market which is a bit of a headwind on that front.

在 20% 的一側，無論哪個方向，總是存在一點季度波動。但我們對自己的處境感到滿意，特別是考慮到商業運輸市場的疲軟，這在這方面有點不利。

As we think about the new Industrial segment, which combines our traditional Communications and Industrial segments together, it's a blended rate now that's going to be somewhere in the high teens. It does provide us with that opportunity.

當我們考慮將傳統通訊和工業部門結合在一起的新工業部門時，現在的混合利率將達到十幾歲。它確實為我們提供了這樣的機會。

And given both some of the opportunities on the growth side as well as some cost things that we've done to get that segment over the next couple of years up over to 20%, which in total, for TE, would obviously put us at 20%. So, my comments were not intended to be entirely a 2025 versus '24. It was meant to be where we see this thing going and getting more comfort around.

考慮到成長方面的一些機會以及我們為使該細分市場在未來幾年內成長超過 20% 所做的一些成本工作，對於 TE 而言，這顯然將使我們處於領先地位20%。因此，我的評論並不完全是 2025 年與 24 年的對比。它本來是為了讓我們看到這件事的發展並獲得更多的舒適感。

This year, we ended up close to 19%. We see over the next couple of years to get closer to that 20%. But volume is going to help in that formula as well. And then Terrence, do you want to...

今年，我們的佔比接近 19%。我們預計未來幾年將接近 20%。但成交量也會對這個公式有幫助。然後泰倫斯，你想...

Yes. Shreyas, just one thing, just to clarify, the orders we talk about of this $1 billion, while the increases are driven by AI, there are the other parts of the business in non-cloud AI enterprise. So, all I would say is I do think the momentum that we have is there to support it. It's just there is a difference between that order level versus the AI only doubling. So, I do just think as you put those together, as you get into '25 and '26.

是的。Shreyas，只是一件事，澄清一下，我們談論的這 10 億美元的訂單，雖然成長是由人工智慧驅動的，但非雲端人工智慧企業中還有其他業務部分。所以，我想說的是，我確實認為我們擁有的動力可以支持它。只是訂單等級與 AI 僅加倍之間存在差異。所以，我確實認為，當你將這些放在一起時，當你進入“25”和“26”時。

Thank you, Shreyas. Can we have the next question please?

謝謝你，施瑞亞斯。我們可以問下一個問題嗎？

Guy Hardwick from Freedom Capital Markets.

自由資本市場的蓋伊·哈德威克。

Hi, good morning. Good morning. Hi gentlemen. I appreciate the guidance you gave for Transportation. I think you said it will be for Q1 it will be equivalent to FY '24 level. So, that's kind of around 20%, but not equivalent too much.

嗨，早安。早安.嗨，先生們。我感謝您為交通提供的指導。我想你說過第一季將相當於 24 財年的水平。所以，這個比例大約是 20%，但也不算太多。

But in Q4, the Transportation margin was a little bit below consensus expectations, and I understand it's due to investment. But given you're at 20% now, it begs the question, how much high can it go given that's kind of close to peak levels. But you are talking about 30% incrementals.

但在第四季度，運輸利潤率略低於共識預期，我理解這是由於投資所致。但考慮到現在已經達到 20%，這就引出了一個問題：鑑於接近峰值水平，它還能漲到多少。但你說的是 30% 的增量。

So, what's the kind of I know you don't want to give specific guidance for next year yet, but what are the kind of dynamics for the margin for Transportation for next year, given maybe a back-end recovery in Commercial Transportation, the Sensors business getting through the restructuring and exits and then what you said about outlook for production and mix?

那麼，我知道您還不想為明年提供具體指導，但是考慮到商業運輸的後端復甦，明年運輸利潤的動態是什麼？ ？

Well, Guy, I think you nailed all the various moving parts there. I'm not worried about the 19.3% and change that we did in the fourth quarter. We've also had quarters where we were 21%, right? So, in a given quarter, there can be noise. It could be mix.

好吧，蓋伊，我認為你把所有不同的活動部件都釘在那裡了。我並不擔心我們在第四季所做的 19.3% 的變化。我們也有過 21% 的季度，對吧？因此，在給定的季度中，可能會出現噪音。它可以是混合的。

In this quarter, we did have some heightened investments and some timing of things that we maybe thought would have layered in over a couple of quarters. So, these things happen. I don't get hung up on one quarter particularly with the foresight that we have looking into not just our Q1 but our FY '25 for that segment.

在本季度，我們確實增加了一些投資，並安排了一些我們可能認為會在幾個季度內分層進行的事情。所以，這些事情就會發生。我不會沉迷於一個季度，特別是我們不僅研究第一季度，而且研究該細分市場的 25 財年的遠見。

In terms of moving past that 20%, the incrementals would suggest that the natural growth in that business would drive to that. Now we have not seen a ton of volume growth because we're the market outgrowth we've had in Auto and so forth has been offset by pressures that we've seen on the top line in both Commercial Transportation and Sensors.

就超過 20% 而言，增量表明該業務的自然成長將推動這一目標。現在我們還沒有看到大量的銷售成長，因為我們在汽車等領域的市場成長已經被我們在商業運輸和感測器領域看到的壓力所抵消。

Now we do expect both of those Sensors won't necessarily return to growth because the product exits in FY '25. But we do expect the Sensors the Commercial Transportation business to continue to improve as we move through the year, albeit we're not calling it right now in terms of a time frame for when that could happen, and it's probably in the second half of the year.

現在，我們確實預計這兩種感測器不一定會恢復成長，因為該產品將在 25 財年退出。但我們確實預計感測器和商業運輸業務將在今年下半年繼續改善，儘管我們現在還沒有確定何時會發生這種情況，而且可能是在下半年一年。

When that business returns to growth in conjunction with the strong Auto business, I do think you'll see some support there on the incrementals, but we're not ready to call that or put a number out there. And we feel good about where we've been able to hold our head right now.

當該業務與強勁的汽車業務一起恢復增長時，我確實認為您會看到一些增量支持，但我們還沒有準備好宣布這一點或公佈具體數字。我們對現在能夠保持冷靜的狀態感覺良好。

All right. Thank you, Guy. If there's no further questions, I just want to thank everybody for joining our call this morning. If you have further questions, please contact Investor Relations at TE. Thanks, everyone, and have a great day.

好的。謝謝你，蓋伊。如果沒有其他問題，我只想感謝大家今天早上加入我們的電話會議。如果您還有其他疑問，請聯絡 TE 的投資者關係部門。謝謝大家，祝你有美好的一天。

Today's conference call will be available for replay beginning at 11:30 a.m. Eastern Time today, October 30, on the Investor Relations portion of the TE Connectivity's website. That will conclude the conference for today.

今天的電話會議將於美國東部時間 10 月 30 日上午 11:30 開始在 TE Con​​nectivity 網站的投資者關係部分重播。今天的會議到此結束。