泰科電子 (TEL) 2025 Q3 法說會逐字稿

Everyone, thank you for standing by, and welcome to the TE Connectivity third quarter earnings call for fiscal year 2025. (Operator Instructions) As a reminder, today's call is being recorded. I would now like to turn the conference over to our host, Vice President of Investor Relations, Sujal Shah. Please go ahead.

大家好，感謝大家的支持，歡迎參加 TE Connectivity 2025 財年第三季財報電話會議。（操作員指示）提醒一下，今天的通話正在被錄音。現在，我想將會議交給我們的主持人、投資者關係副總裁 Sujal Shah。請繼續。

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

早安，感謝您參加我們的電話會議，討論 TE Con​​nectivity 第三季度的業績以及 2025 財年第四季度的展望。今天與我一起的還有執行長 Terrence Curtin 和財務長 Heath Mitts。在本次電話會議中，我們將提供某些前瞻性信息，並請您查看今天的新聞稿中包含的前瞻性警告聲明。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指標，並請您查看我們的新聞稿和隨附的幻燈片簡報中有關這些項目使用的章節。

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. I would also like to take this opportunity to announce that we are planning to hold an Investor Day on November 20 in Philadelphia with a product showcase the evening before. We are excited to share more about our opportunities for growth and further value creation for our owners, and we'll be sending out details of the event shortly.

新聞稿、相關表格以及幻燈片簡報可在我們網站 te.com 的「投資者關係」板塊找到。我還想藉此機會宣布，我們計劃於 11 月 20 日在費城舉辦投資者日活動，並在前一天晚上進行產品展示。我們很高興與大家分享更多有關我們為業主創造成長和進一步價值的機會，我們將很快發送活動的詳細資訊。

Finally, during the Q&A portion of today's call, due to the number of participants, we're asking everyone to limit themselves to one question you may rejoin the queue if you have a second question. Now let me turn the call over to Terrence for opening comments.

最後，在今天電話會議的問答環節，由於參與者人數較多，我們要求每個人只問一個問題，如果您有第二個問題，您可以重新加入隊列。現在，讓我將電話轉給特倫斯，請他發表開場評論。

Thanks, Sujal, and thank you, everyone, for joining the call today. As I normally like to do, I do want to take a moment before we get into the slides to frame our results for our third quarter as well as our guidance for our fourth fiscal quarter. We are pleased that we delivered double-digit increases in both sales and adjusted earnings per share in the third quarter that exceeded our guidance and demonstrate our team's ability to continue to execute in a dynamic global environment. We delivered 14% sales growth and 19% adjusted earnings per share growth, and both of these are quarterly records for our company.

謝謝，蘇加爾，也謝謝大家今天參加電話會議。正如我通常喜歡做的那樣，在開始幻燈片演示之前，我想花一點時間來概述我們第三季的業績以及對第四財季的指導。我們很高興看到第三季的銷售額和調整後每股收益均實現了兩位數的成長，超出了我們的預期，並證明了我們團隊在充滿活力的全球環境中繼續執行的能力。我們的銷售額成長了 14%，調整後每股盈餘成長了 19%，這兩項都是我們公司的季度記錄。

A key driver of our success has been the strategic positioning of our portfolio and the investments that we've made to broaden our business to benefit from secular growth trends in both the transportation and industrial segments. The investments that we made will see that are paying off and are evident in our results as we're capitalizing on the strong demand for artificial intelligence as well as growth in energy applications where our products needed. We're also benefiting from strength in Asia in our Transportation segment, where we see increased data connectivity trends and ongoing growth of the electrified powertrain.

我們成功的一個關鍵驅動力是我們投資組合的策略定位，以及我們為拓展業務而進行的投資，以從運輸和工業領域的長期成長趨勢中受益。我們所做的投資將獲得回報，並在我們的業績中得到體現，因為我們正在利用對人工智慧的強勁需求以及我們產品所需的能源應用的成長。我們也受惠於亞洲交通運輸領域的實力，我們看到數據連接趨勢的增強和電動動力系統的持續成長。

You not only see the benefit of the investments on the growth side, but you also see it in our operations. We achieved record adjusted operating margins of 20% and record free cash flow generation of $1 billion this quarter. This is the result of our global manufacturing strategy, where we've invested heavily to have over 70% of our production localized, and this is providing to be a differentiator with our customers. And finally, we do expect our strong performance to continue into the fourth quarter with both double-digit sales and double-digit adjusted earnings per share growth again in the fourth quarter.

您不僅可以看到投資在成長方面帶來的好處，還可以看到投資在我們的營運中帶來的好處。本季度，我們的調整後營業利潤率達到創紀錄的 20%，自由現金流達到創紀錄的 10 億美元。這是我們全球製造策略的結果，我們投入巨資，使 70% 以上的生產實現在地化，這為我們與客戶形成了差異化。最後，我們確實預計我們的強勁表現將持續到第四季度，第四季度銷售額和調整後每股收益將再次實現兩位數成長。

So with that as a backdrop, let's get into the presentation, starting with slide 3, and I will discuss some additional highlights and the guidance for the fourth quarter of fiscal '25. Our third quarter sales were above guidance at $4.5 billion, growing 14% on a reported basis and 9% organically year-over-year. We saw acceleration in our Industrial segment with over 20% organic growth that was broad-based and driven by our digital data networks and energy businesses. We delivered record adjusted earnings per share of $2.27 that was well above our guidance and increased 19% versus the prior year.

因此，以此為背景，讓我們進入演示，從幻燈片 3 開始，我將討論一些額外的亮點和 25 財年第四季度的指導。我們第三季的銷售額高於預期，達到 45 億美元，報告成長 14%，有機成長 9%。我們的工業部門實現了加速發展，有機成長率超過 20%，這得益於我們廣泛的數位數據網路和能源業務的推動。我們實現了創紀錄的每股收益 2.27 美元，遠高於我們的預期，比上年增長了 19%。

Our adjusted operating margins were 20%, and they increased 60 basis points over last year, driven by strong operational performance by our teams. As you know, we've been on a journey to expand margins at the company level, and both segments are now essentially running at 20%. Importantly, to highlight, and we'll get into it in more detail, the Industrial segment adjusted operating margins expanded nearly 400 basis points year-over-year. We also saw orders improve again this quarter to $4.5 billion, and this was an increase of 8% year-over-year as well as 5% on a sequential basis. And these order levels support our outlook for the double-digit growth in our fourth fiscal quarter.

我們的調整後營業利潤率為 20%，比去年增加了 60 個基點，這得益於我們團隊強勁的營運表現。如您所知，我們一直在努力提高公司層面的利潤率，目前兩個部門的利潤率基本上都達到了 20%。重要的是，需要強調的是，我們將更詳細地介紹，工業部門調整後的營業利潤率年增近 400 個基點。我們也看到本季訂單量再次增加至 45 億美元，年增 8%，季增 5%。這些訂單水準支持了我們對第四財季兩位數成長的預期。

We delivered record year-to-date free cash flow of approximately $2.1 billion, and we returned $1.5 billion to shareholders, and we deployed $2.6 billion of capital for acquisitions in the Industrial segment, which includes the Richards acquisition that we closed this quarter. As we look forward into the next quarter, we do expect fourth quarter sales to increase to $4.55 billion, and this is growth of 12% on a reported basis and 6% on an organic basis year-over-year.

我們實現了年初至今約 21 億美元的創紀錄自由現金流，並向股東返還了 15 億美元，同時部署了 26 億美元的資本用於工業部門的收購，其中包括本季完成的 Richards 收購。展望下一季度，我們確實預計第四季度銷售額將增至 45.5 億美元，按報告基礎計算增長 12%，按有機基礎計算同比增長 6%。

Adjusted earnings per share is expected to be around $2.27, and this will be a 16% increase on a year-over-year basis. Our fourth quarter guidance implies strong performance in fiscal 2025 with high single-digit sales growth and double-digit adjusted earnings per share growth year-over-year. With that as an overview, now let me get into order trends, and I'd appreciate if you could turn to slide 4. In the quarter, we saw orders grow to $4.5 billion. In Transportation, orders increased 5% versus the prior year, with growth in Asia of 17%, partially offset by declines in Europe and North America.

調整後每股收益預計約為 2.27 美元，年增 16%。我們的第四季指引意味著 2025 財年將表現強勁，銷售額將實現高個位數成長，調整後每股盈餘將達到兩位數年成長。有了這些概述，現在讓我來談談訂單趨勢，如果您能翻到幻燈片 4，我將不勝感激。本季度，我們的訂單成長至 45 億美元。在運輸領域，訂單較上年增長 5%，其中亞洲增長 17%，但被歐洲和北美的下降部分抵消。

The global auto market remains uneven by region, and we continue to see strength in our Asia position in both our orders and our sales, which is helping to offset the continued softness that we're seeing in Western markets. Looking at orders in the Industrial segment. We continue to see strong order momentum with 12% growth both year-over-year as well as sequentially, and this reflects ongoing momentum in artificial intelligence applications and in our energy and aerospace and defense businesses.

全球汽車市場在各地區之間仍然不平衡，我們在訂單和銷售方面繼續看到亞洲市場的強勁表現，這有助於抵消西方市場的持續疲軟。查看工業領域的訂單。我們繼續看到強勁的訂單勢頭，年增 12%，這反映了人工智慧應用以及我們的能源、航空航太和國防業務的持續成長勢頭。

One key sign that we saw in the quarter, and we're encouraged by is that we have improvement in orders that we're starting to see in the general industrial end markets. Now let me get into the segment results, and I'll start with Transportation. That's on slide 5. Our auto business grew 2% organically in the third quarter, with growth in Asia of 11% being offset by declines in Western regions of 5%. While auto production on a global basis was down slightly in the third quarter, it is expected to be roughly flat this year and we continue to generate growth over market and secure key wins around data connectivity and electrification that will drive future content growth.

我們在本季看到的一個關鍵跡像是，令我們感到鼓舞的是，我們開始看到一般工業終端市場的訂單有所改善。現在讓我進入細分結果，我將從運輸開始。這是第 5 張投影片。我們的汽車業務在第三季度實現了 2% 的有機成長，其中亞洲地區 11% 的成長被西方地區 5% 的下滑所抵消。雖然第三季全球汽車產量略有下降，但預計今年將基本持平，我們將繼續在市場上實現成長，並在數據連接和電氣化方面取得關鍵勝利，這將推動未來的內容成長。

In addition to the leading-edge products and technologies, we are also benefiting from our strong global position and localization strategy, which enables us to serve our global customer base in this environment. Turning to our commercial transportation business, we experienced 3% organic growth, and this was driven by growth in Asia and in Europe, partially offset by declines in North America. We did see orders improved both year-over-year and sequentially, indicating that there is some traction in the commercial transportation cycle.

除了領先的產品和技術外，我們還受益於強大的全球地位和在地化策略，這使我們能夠在這種環境下為全球客戶群提供服務。談到我們的商業運輸業務，我們經歷了 3% 的有機成長，這主要得益於亞洲和歐洲的成長，但部分被北美的下滑所抵消。我們確實看到訂單量同比和環比都有所改善，這表明商業運輸週期有一定的牽引力。

And in our Sensors business, we saw weakness in end markets in Western regions, partially offset by growth in Asia. For the Transportation segment, adjusted operating margins were 19.4%, and we expect margins to be above 20% for the full year. Now let me turn to the Industrial Solutions segment, and that starts on slide 6. And at the segment level, we grew 30% in the quarter with over 20% organic growth and the benefit of acquisitions in our energy business.

在我們的感測器業務中，我們發現西方地區終端市場表現疲軟，但亞洲的成長部分抵消了這一趨勢。對於運輸部門，調整後的營業利潤率為 19.4%，我們預計全年利潤率將超過 20%。現在讓我轉到工業解決方案部分，從第 6 張投影片開始。從細分市場來看，本季我們的成長了 30%，其中有機成長超過 20%，並且得益於能源業務的收購。

The digital Data Networks business grew over 80% organically with increasing ramps from hyperscale platforms across our customer base. You see the strong growth, and I just want to remind you that AI revenues last year was $300 million. We now expect our revenue from artificial intelligence applications to be above $800 million in this fiscal 2025 year and continues to reflect the strong momentum that we've been talking to you about.

隨著我們客戶群中超大規模平台的不斷增長，數位數據網路業務有機增長超過 80%。您看到了強勁的成長，我只想提醒您，去年人工智慧的收入為 3 億美元。我們現在預計，到 2025 財年，來自人工智慧應用的收入將超過 8 億美元，並繼續體現出我們一直在談論的強勁勢頭。

In automation and Connected Living, we grew 5% organically, and we are seeing signs of recovery in factory automation applications as markets have begun to improve. In our energy business, our sales grew 70%, and this includes the Richards acquisition, which enables us to capitalize on strong growth opportunities in the North American utility market. On an organic basis, our energy business grew a strong 20%, driven by continued momentum in grid hardening and renewable applications.

在自動化和互聯生活領域，我們的有機成長了 5%，隨著市場開始好轉，我們看到工廠自動化應用出現復甦跡象。在我們的能源業務中，我們的銷售額成長了 70%，其中包括收購理查茲，這使我們能夠利用北美公用事業市場的強勁成長機會。從有機成長來看，我們的能源業務強勁成長了 20%，這得益於電網強化和再生能源應用的持續成長。

In our AD&M business, sales grew 6% organically, driven by growth across commercial aerospace, defense and space applications. And in these markets, we see favorable demand trends that continue to be coupled with ongoing supply chain improvement. And in our Medical business, our sales were roughly flat sequentially as we expected. Now let me turn to margins for the segment. And for the segment, adjusted operating margins expanded nearly 400 basis points to over 20%, driven by strong operational performance and benefits of higher volume.

在我們的 AD&M 業務中，銷售額有機成長了 6%，這得益於商業航空航太、國防和太空應用的成長。在這些市場中，我們看到了良好的需求趨勢，並且與持續的供應鏈改善相結合。在我們的醫療業務中，我們的銷售額與上一季基本持平，正如我們預期的那樣。現在讓我來談談該部分的邊距。就該部門而言，受強勁的營運業績和更高銷售優勢的推動，調整後的營業利潤率擴大了近 400 個基點，達到 20% 以上。

I am pleased with the progress our team has made on balancing our footprint consolidation efforts with supporting the strong growth that we've had in this segment, and that's clearly evident in the growth as well as in the margins. So with that as an overview of our segment results and orders, let me turn it over to Heath to get into more details on the financials and expectations to go forward.

我很高興看到我們的團隊在平衡我們的足跡整合努力與支持我們在該領域的強勁成長方面取得了進展，這在成長和利潤率上都有明顯體現。因此，在概述了我們的分部業績和訂單之後，讓我將其交給 Heath，以更詳細地介紹財務狀況和未來的預期。

Well, thank you, Terrence, and good morning, everyone. Please turn to slide 7. For the quarter, adjusted operating income was $901 million with an adjusted operating margin of 19.9%. The GAAP operating income was $857 million and included $30 million of acquisition-related charges and $14 million of restructuring and other charges. For the full year, we continue to expect restructuring charges to be around the $100 million level.

好吧，謝謝你，特倫斯，大家早安。請翻到幻燈片 7。本季調整後的營業收入為 9.01 億美元，調整後的營業利益率為 19.9%。以美國通用會計準則計算的營運利潤為 8.57 億美元，其中包括 3,000 萬美元的收購相關費用以及 1,400 萬美元的重組及其他費用。就全年而言，我們仍然預計重組費用將在 1 億美元左右。

Adjusted EPS was $2.27 in GAAP EPS and was $2.14 for the quarter and included restructuring, acquisition and other charges of $0.13. The beat versus our guidance was driven by strong operational performance and higher volumes. The adjusted effective tax rate was 24% in Q3, and we expect a similar tax rate for the fourth quarter. And as a reminder, the increase versus the prior year is primarily related to the impact of the pillar two global minimum tax and our jurisdictional mix of earnings. But as importantly, and as always, we anticipate our cash tax rate to be well below our adjusted ETR.

調整後每股收益（以 GAAP 計算）為 2.27 美元，本季為 2.14 美元，包含重組、收購及其他費用 0.13 美元。業績超乎預期，得益於強勁的營運業績和更高的銷售量。第三季調整後的有效稅率為 24%，我們預期第四季的稅率也將類似。需要提醒的是，與前一年相比的成長主要與第二支柱全球最低稅和我們的管轄收入組合的影響有關。但同樣重要的是，與往常一樣，我們預計我們的現金稅率將遠低於調整後的 ETR。

I'll now discuss a couple of housekeeping items. During the quarter, we saw the US dollar weakened against other currencies, resulting in a year-over-year benefit from foreign exchange of $68 million in sales and $0.05 in adjusted EPS. Our Q4 guidance assumes foreign exchange contribution by $111 million in sales and $0.03 to adjusted EPS year-over-year. And these are part of the bridges in the back of the slide deck.

我現在要討論一些日常事務。本季度，我們看到美元兌其他貨幣走弱，導致外匯帶來的銷售額年增 6,800 萬美元，調整後每股收益上漲 0.05 美元。我們的第四季指引假設外匯對銷售額的貢獻為 1.11 億美元，對調整後每股盈餘的貢獻為 0.03 美元。這些是幻燈片背面橋樑的一部分。

The impact from tariffs in the third quarter was approximately 1.5% of sales with minimal earnings impact. Based upon what is currently enacted, we expect the impact from earnings in Q4 to be similar to Q3 levels. With our global footprint, we will continue our strategy of mitigating tariff impacts through with our sourcing changes by TE and our customers as well as implementing pricing actions. Turning to slide 8. When you look at the graphs on the slide, we have set records in sales, adjusted operating margins and adjusted earnings per share. I do want to focus on cash flow.

第三季關稅的影響約為銷售額的 1.5%，對獲利的影響微乎其微。根據目前實施的情況，我們預計第四季度收益的影響將與第三季的水平相似。憑藉我們的全球影響力，我們將繼續實施減輕關稅影響的策略，透過 TE 和客戶的採購變化以及實施定價行動來做到這一點。翻到幻燈片 8。當您查看投影片上的圖表時，您會發現我們的銷售額、調整後的營業利潤率和調整後的每股盈餘都創下了紀錄。我確實想關注現金流。

Cash from operations was nearly $1.2 billion and free cash flow was $962 million in the quarter. Year-to-date, we have delivered free cash flow of roughly $2.1 billion and we expect to deliver another year of free cash flow conversion well above 100%. Our cash generation and healthy balance sheet position us well and provides us optionality with uses of capital. So far this year, we have returned approximately $1.5 billion to shareholders and deployed $2.6 billion for acquisitions.

本季經營現金流接近 12 億美元，自由現金流為 9.62 億美元。今年迄今為止，我們已實現約 21 億美元的自由現金流，我們預計明年的自由現金流轉換率將遠高於 100%。我們的現金產生和健康的資產負債表使我們處於有利地位，並為我們提供了資本使用的選擇性。今年到目前為止，我們已向股東返還約 15 億美元，並部署 26 億美元用於收購。

Before I turn it over to questions, let me reinforce that we are executing well to deliver record results and have positioned the company to continue to deliver strong performance and value for our owners. I am pleased with the way our team is performing. The results we are delivering and the opportunities ahead of us. We are well positioned for a strong finish to the year, setting us up for further growth in earnings expansion as we go forward into our next fiscal year. As a reminder, that starts October 1.

在開始提問之前，我想強調一下，我們的執行情況良好，取得了創紀錄的業績，並使公司能夠繼續為我們的所有者提供強勁的業績和價值。我對我們團隊的表現感到滿意。我們正在取得的成果和我們面臨的機會。我們已做好充分準備，以強勁的勢頭結束今年的財務年度，為進入下一個財政年度時盈利進一步增長奠定基礎。提醒一下，從 10 月 1 日開始。

Now let's open it up for questions.

現在讓我們開始提問。

Okay. Thank you. Can you please give the instructions for the Q&A session?

好的。謝謝。您能否給予問答環節的說明？

(Operator Instructions) Scott Davis, Melius Research.

（操作員指示） Scott Davis，Melius Research。

Hey, good morning, Terrence and Heath.

嘿，早上好，特倫斯和希思。

Hey, Scott.

嘿，斯科特。

Congrats on positioning the company well this year, particularly around the AI stuff, which I need to ask about because it's topical, obviously. But is that business now, when you think about $800 million, which is just a big number really when you think about where you were just a couple of years ago, but is that business now fully ramped and scaled meaning like profitability at or above company levels? How do you think about that?

恭喜該公司今年取得了良好的定位，特別是在人工智慧方面，我需要詢問這一點，因為它顯然是一個熱門話題。但是，當您想到 8 億美元時，這個業務現在真的是一個巨大的數字，當您想到幾年前的狀況時，但是這項業務現在是否已經完全發展壯大並擴大規模，是否意味著盈利能力達到或超過了公司水平？您對此有何看法？

Yes. No. Thanks, Scott. And to your point, I said it on the call, last year, we had just AI applicated about $300 million of revenue, and we talk it to be above $800 million this year. And when you look at where we're even run rating now this quarter, it will be above $1 billion next year.

是的。不。謝謝，斯科特。關於你提到的問題，我在電話會議上說過，去年，我們的 AI 應用收入約為 3 億美元，我們預計今年的收入將超過 8 億美元。如果您看一下我們本季的營運評級，那麼明年該數字將超過 10 億美元。

So it has been something from the scaling side. Our teams have done an exceptional job trying to keep up with the demand. When you look at the growth we have, it is on ramps. And when you look at the margin that we get in this business, it's not surprisingly, it is a little bit above where the Industrial segment plays and I think you're going to continue to see nice conversion on that as that continues to ramp. And I still think we're sort of middle of the early innings in this and what we're working on with next-generation programs with our customers.

因此，從擴展角度來看，這已經有所進展。我們的團隊為滿足需求做出了卓越的貢獻。當你看到我們的成長時，你會發現它正在快速成長。當您看到我們在這個業務中獲得的利潤時，毫不奇怪，它略高於工業部門的利潤，而且我認為，隨著利潤的不斷增加，您將繼續看到良好的轉換。我仍然認為我們正處於這一領域的早期階段，我們正在與客戶合作開發下一代專案。

And like we've always said, and as we've talked about AI, we're playing a in a broad slate of the hyperscalers. It isn't one customer here. and how our teams are bringing not only the technology that's needed on the product set. But then to your question around the operations side, our team is executing very well to really make sure we can deliver the technology at the pace that the hyperscalers expect.

正如我們一直所說的那樣，正如我們談論人工智慧一樣，我們正在超大規模領域中發揮重要作用。這裡不只有一個客戶，我們的團隊不僅帶來了產品所需的技術。但是對於您關於營運方面的問題，我們的團隊執行得非常好，以確保我們能夠以超大規模企業期望的速度交付技術。

So that momentum, we feel good about. Certainly, we see that not only being in '25. We see that continuing into '26, okay, thank you, Scott.

我們對這種勢頭感到滿意。當然，我們看到的不僅僅是 25 年的情況。我們看到這種情況會持續到 26 年，好的，謝謝你，史考特。

We have the next question, please.

我們有下一個問題。

Amit Daryanani, Evercore.

阿米特·達亞納尼 (Amit Daryanani)，Evercore。

Good morning everyone. Thanks for being my question -- Terrence, in June quarter, something that really stands out. I think everyone is just a broadening in both growth and the margin performance across your portfolio. The double-digit growth in industrials really stands out. So can you just talk on what's driving this diversification and growth that we're seeing in June?

大家早安。謝謝你回答我的問題——特倫斯，在六月季度，有一些事情確實引人注目。我認為每個人的投資組合的成長和利潤表現都在擴大。工業的兩位數成長確實引人注目。那麼，您能否談談推動我們在六月看到的這種多樣化和增長的因素是什麼？

And that really related to that, the industrial segment margins achieving 20% on I think, much faster than any one of us expected. Can you spend a little bit of time on kind of what fastest contributed to this outperformance and how sustainable do you this margin levels are? Thank you.

這確實與此相關，我認為工業部門的利潤率將達到 20%，這比我們任何人預期的都要快得多。您能否花一點時間解釋一下，哪些因素最快促成了這種優異表現，以及這種利潤水準的可持續性如何？謝謝。

Yes. No, thanks, Amit. And let me break that into probably two pieces. I'll talk about the growth, and I'll ask Heath to talk about the market journey that you've all been following with us. So first off, when you think about the growth, and let's face it, we have an unbelievable position in transportation that we've always talked about but really, when we think about when we make investments and you think about what we do, which is across these markets, it's really connectivity is couple of key trends that we've been investing in is around where do you need data, where do you need higher speed data and AI to Scott's question, is front of mind, but also realize when we deal with things and we talk about software-defined vehicles, it's around where we're strong and where those trends help us.

是的。不，謝謝，阿米特。讓我把它分成兩個部分。我將談論成長情況，並請希思談談你們一直關注的市場歷程。首先，當你考慮成長時，讓我們面對現實吧，我們在交通運輸領域擁有令人難以置信的地位，我們一直在談論這一點，但實際上，當我們考慮投資時，想想我們在這些市場中所做的事情，真正的連接性是我們一直在投資的幾個關鍵趨勢，圍繞著你在哪裡需要數據，你在哪裡需要更高速的數據和人工智慧，對於斯科特的問題，這是首要考慮的問題，但也要意識到，當我們處理事情並談論軟體定義的汽車時，這是圍繞著我們的優勢所在以及這些趨勢對我們有哪些幫助。

So it does come to a big point of the data speeds -- and you see that in industrial where you benefited from in transportation, but also in places like factory automation. You have data speeds that are needed, and that's why we like our position there and to your question, broadening out. The other big trend is it's connectivity around power. And in energy, we've made investments around our go-to-market and our product set.

因此，它確實涉及到數據速度的一個重要方面——你可以看到，它不僅在工業領域（交通運輸）中受益，而且在工廠自動化等領域也受益。您擁有所需的數據速度，這就是我們喜歡在那裡的立場以及擴大您的問題的原因。另一個大趨勢是圍繞電力的連接。在能源領域，我們圍繞著市場進入和產品組合進行了投資。

You see it in the organic growth that we've had now for -- goes back pre-COVID and in this quarter in Energy, it was 20% organic growth, and then we've deployed capital of an M&A there. So it does come around power connections and no different than power connections we have, where the architecture changes in the car for the electrified powertrain. So it's things we do good. Yes, we have to be targeted to create value with our customers, but you're seeing that throughout our results, and you see both segments contributing.

您可以從我們現在的有機成長中看到這一點——追溯到新冠疫情之前，本季能源業務的有機成長率為 20%，然後我們在那裡部署了併購資本。因此，它確實涉及電源連接，並且與我們現有的電源連接沒有什麼不同，其中汽車的架構因電動動力系統而變化。所以這是我們做的好事。是的，我們必須有針對性地為客戶創造價值，但您可以從我們的整個業績中看到這一點，並且可以看到兩個部門都在做出貢獻。

And that's the broadening that we get excited about because it's things that we have been investing in and certainly, you see them in this quarter's results. Heath, do you want to talk about the margin side of his question?

這就是讓我們感到興奮的擴展，因為這是我們一直在投資的事情，當然，你可以在本季度的業績中看到它們。希思，你想談談他的問題的邊緣方面嗎？

Sure. And I appreciate the question. Certainly, we're pleased with the progress that we've made in the Industrial segment margins as it's been a journey to work beta from the mid-teens into the high teens and now cross over the 20 threshold for that business. But we would expect these level of margins at these volumes, right? So we've done a lot of footprint work in the industrial segment, as you are aware, and we've been pretty transparent that this restructuring journey that the segment has been on to reduce some of the rooftops as we've undertaken.

當然。我很感謝你提出這個問題。當然，我們對工業部門利潤率所取得的進展感到滿意，因為這是一個從十幾歲到十幾歲的歷程，現在已經跨越了該業務的 20 門檻。但我們預計在這樣的產量下利潤率會達到這樣的水平，對嗎？如您所知，我們在工業領域做了很多足跡工作，並且我們非常透明地了解該部門正在進行的重組過程，以減少我們所做的一些屋頂。

So as you get that both combination of reduced fixed cost out of those fewer facilities and then the scale that we get and the volume leverage we get when we start to see these volumes, it's not a huge surprise to us, and we would have that level of expectation. Now some of the things we're benefiting from around the energy sector, particularly North America and the AI business within our business unit certainly helps.

因此，當我們從較少的設施中獲得降低的固定成本，然後當我們開始看到這些數量時，我們獲得的規模和獲得的數量槓桿，這對我們來說並不是一個巨大的驚喜，我們會有這樣的期望水平。現在，我們從能源領域（尤其是北美）受益匪淺，我們業務部門內的人工智慧業務無疑有所幫助。

But all pieces of the segment are contributing towards this journey and certainly align with what our internal expectations are. So we're happy to get there sooner, but certainly, it's come -- as the top line has been supported.

但該部門的所有部分都在為這趟旅程做出貢獻，並且肯定符合我們的內部期望。因此，我們很高興能夠更快地實現這一目標，但可以肯定的是，它已經到來——因為頂線已經得到了支持。

All right, thank you, Amit. Can we have the next question, please?

好的，謝謝你，阿米特。我們可以問下一個問題嗎？

Mark Delaney, Goldman Sachs.

高盛的馬克·德萊尼。

Yes, good morning. Thank you very much for taking my question. I'm hoping you can comment more on your view about the sustainability of the current fundamental strengths. And if you think any of the current demand is due to customers prebuying in order to mitigate tariff risk?

是的，早安。非常感謝您回答我的問題。我希望您能就當前基本實力的可持續性發表更多看法。您是否認為目前的需求是因為顧客為了降低關稅風險而進行預購？

Yes. No, thanks, Mark, for the question. And we don't see any meaningful impact to pull in. In our product set, when we look at things and we talk to our channel partners, we don't see that certainly, I think you may see that a little bit more in semiconductors, but we do not see any meaningful pull-ins.

是的。不，馬克，謝謝你的提問。我們沒有看到任何有意義的影響。在我們的產品系列中，當我們觀察並與通路合作夥伴交談時，我們當然沒有看到這種情況，我想你可能會在半導體領域看到更多這種情況，但我們沒有看到任何有意義的吸引力。

And I think that goes back to the orders that we talked about back when I covered slide, I think it was four. And when you look at it, both year-over-year and sequentially, we saw nice growth, and we also saw growth year-over-year in both segments. Now it's evident when you look at the slide, you look at the transportation line, you sort of see something that looks very stable. But as I said, Asia is strong Western car production is still weak. It is down mid-single digits in the West between the US and Europe. And then you're also getting into elements of what they're making.

我認為這又回到了我們在我講幻燈片時討論的訂單，我想是四個。從同比和環比來看，我們都看到了良好的成長，而且兩個部門都實現了同比增長。現在很明顯，當你看幻燈片時，你看運輸線，你會看到一些看起來非常穩定的東西。但正如我所說，亞洲很強大，西方汽車生產仍然很弱。在美國和歐洲之間，西方國家的降幅為個位數左右。然後你也會了解他們正在製作的元素。

There are less electrified vehicles just due to the trends there. So Asia is an area where we continue to see strength and half of our revenue in automotive is Asia-driven. We also saw commercial transportation. We continue to see growth outside the United States in commercial transportation. So North America is the one area that continues to be soft in commercial transportation.

由於那裡的趨勢，電動車較少。因此，亞洲是我們持續看到實力的地區，我們在汽車領域的一半收入都來自亞洲。我們還看到了商業運輸。我們繼續看到美國以外的商業運輸業的成長。因此，北美是商業運輸持續疲軟的一個地區。

But one of the things we were encouraged by is we saw sequential improvement in global orders. So maybe we're seeing some traction there. And then in the Industrial segment, Mark, it is, I think, the continuation of the AI momentum that we already talked about. Energy continues to have strong orders in North America is very strong in orders in the energy space. So that's going to continue and will benefit from what we did with & Richards from an M&A perspective. And then the Aerospace business continues to be strong.

但令我們感到鼓舞的是，我們看到全球訂單持續改善。因此，也許我們在那裡看到了一些牽引力。馬克，在工業領域，我認為，這是我們已經討論過的人工智慧勢頭的延續。北美能源訂單持續強勁，能源領域的訂單非常強勁。因此，這種情況將會持續下去，並且從併購的角度來看，我們與 Richards 的合作將使其受益。航空航太業務持續保持強勁。

We do see supply chains improving. And what was nice in the industrial segment I talked about was in our automation and Connected Living we started to see encouraging signs about improvement in orders. And we're going to continue as to see what shape they are. But it's nice to finally see after a couple of years where it's been down, there are some encouraging signs there. And they're pretty broad around the world. It isn't just one region. It's broader than that.

我們確實看到供應鏈正在改善。我談到的工業領域的好消息是，我們在自動化和互聯生活領域開始看到訂單改善的令人鼓舞的跡象。我們將繼續觀察它們的形狀。但很高興看到，在經歷了幾年的低迷之後，終於出現了一些令人鼓舞的跡象。並且它們的分佈範圍遍布世界各地。這不只是一個地區。它的範圍比這更廣泛。

So finally, I think there's more upward potential there than what we've been talking about over the past two years. So durability feels good. Clearly, it's reflected in our guide. And some of these are real trends, secular trend driven. When you think about electricity growth, you think about what's happening with AI which gives us even more confidence because around those trends.

所以最後，我認為那裡的上漲潛力比我們過去兩年談論的要大。因此耐用性感覺很好。顯然，這反映在我們的指南中。其中一些是真實的趨勢，由長期趨勢驅動。當你考慮電力成長時，你會考慮人工智慧的發展，這讓我們對這些趨勢更有信心。

All right, thank you, Mark. We have the next question, please.

好的，謝謝你，馬克。我們有下一個問題。

Luke Junk, Baird.

盧克·簡克，貝爾德。

Good morning. Thanks for taking the question, Terrence, I think we could maybe touch on the industrial book-to-bill, especially timing-related impacts you might be seeing there in terms of AI that could be causing some distortion plus or minus. And maybe if you just comment on AI Ward, specifically especially interested in anything above and beyond this continued acceleration in like-for-like growth that you're seeing maybe relative to both the hyperscaler opportunity and chip makers as we step into 2016. Thank.

早安.感謝您提出這個問題，特倫斯，我想我們可以談談工業訂單出貨比，特別是與時間相關的影響，您可能會看到人工智慧可能會造成一些正負的扭曲。也許如果您只是對 AI Ward 進行評論，特別是對這種持續加速的同比增長之外的任何事物特別感興趣，這種增長可能與超大規模機會和晶片製造商有關，因為我們正進入 2016 年。感謝。

Yes. So let me take the second part first. When you look at where it's at, I would just say it's some momentum is continuing. I don't think there is an incremental platform or an incremental customer. It's really where we have been strong. We continue to see momentum there. And as we've always talked to you, Luke and everybody else, we have to play across the ecosystem to really win here.

是的。那麼讓我先講第二部分。當你看到它現在的位置時，我只想說它的動力正在持續。我不認為存在增量平台或增量客戶。這確實是我們的優勢。我們繼續看到那裡的勢頭。正如我們一直與您、盧克和其他所有人談論的那樣，我們必須在整個生態系統中發揮作用才能真正取得勝利。

It has to be with the chip makers, with the hyperscalers with obviously, the contract manufacturers that put the equipment together that really supports the growth on top of technology. So I think when you look at it, and you're going to continue to see those that we've had traction and continue and it's pretty broad, which gives us the confidence that I've talked about already.

它必須與晶片製造商、超大規模生產者以及合約製造商合作，將設備組裝在一起，真正支持技術的成長。所以我認為，當你看到它時，你會繼續看到我們已經取得進展並將繼續下去，而且它的範圍相當廣泛，這給了我們已經談到的信心。

In Industrial, the orders are broad-based improvement, like I just answered to Mark's question. And even if you look sequentially, essentially every business in the industrial business, orders improved sequentially. So it is broad-based momentum. It isn't like there's one AI order in there that's taking the orders up. It's broad-based across the markets.

在工業領域，訂單是廣泛的改善，就像我剛才回答馬克的問題一樣。即使按順序來看，基本上工業業務中的每項業務的訂單都連續增加。因此，這是廣泛的勢頭。這並不是說有一個 AI 訂單在接受訂單。它廣泛存在於各個市場。

And I think that reflects the tone that I just handled with Mark. So that's one of the things that's encouraging that in some areas that happen down, we see signs of life in areas that the strong continue to stay strong.

我認為這反映了我剛剛與馬克相處時的語氣。因此，令人鼓舞的事情之一是，在一些出現衰退的地區，我們看到了生機的跡象，強者繼續保持強勢。

Okay, thank you, Luke. We have the next question, please.

好的，謝謝你，盧克。我們有下一個問題。

Joe Spak, UBS.

瑞銀的喬·斯帕克。

Oh, good morning. Thank you. I guess just maybe following along those lines I mean, it sounds like everything you think is at least sustainable. I think you and we would all sort of expect sort of continued growth. So I mean, how should we think about a new sort of aspirational target for the company as we think out here a couple of years margin target, sorry.

噢，早安。謝謝。我想也許按照這個思路，聽起來你認為的一切至少都是可持續的。我想您和我們都期待持續的成長。所以我的意思是，當我們考慮幾年的利潤目標時，我們應該如何考慮公司的新的理想目標，抱歉。

Marginalize. I'm going to let Heath take that.

邊緣化。我要讓希斯來接手這件事。

Joe, I appreciate the question. It's something that internally that we work through as well, but looking at where the growth is, certainly, we are focused on a total company margin. But as we look at our businesses, respectively, both at the segment level that we report to here as well as we run the business day to day in all of our business units, we really look at incremental flow-through and the incremental flow-through on that organic revenue growth.

喬，我很感謝你提出這個問題。這也是我們內部正在努力解決的問題，但看看成長在哪裡，我們當然關注的是公司的整體利潤。但是，當我們分別審視我們的業務時，無論是在我們報告的細分層面，還是在我們所有業務部門日常運營的業務中，我們真正關注的是增量流轉和有機收入增長的增量流轉。

And as we do that, we do target businesses to be at 30% or better, there are some that have a little bit of self-help work that we've spent more money on restructuring in. And in those cases, they always a little bit more flow through because we've got to pay for some of those -- the benefit of that restructuring. But in aggregate, that's kind of how we measure what success looks like as we move forward.

在這樣做的同時，我們確實將目標企業設定為 30% 或更高，有些企業進行了一些自助工作，我們投入了更多資金進行重組。在這些情況下，總是會有更多的資金流過，因為我們必須為其中的一些費用付出代價——這是重組的好處。但總的來說，這就是我們衡量前進過程中成功的方式。

That will have the natural impact as we hit those targets over cycle, the natural impact of gradually moving that margin up -- and then we obviously later on the inorganic side on top of that, and those come in all forms and fashions.

當我們在整個週期內達到這些目標時，這將產生自然的影響，自然會產生逐步提高利潤率的影響——然後我們顯然會在無機方面產生影響，這些影響會以各種形式和方式出現。

Okay, thank you, Joe. Can we have the next question.

好的，謝謝你，喬。我們可以問下一個問題嗎？

Christopher Glynn, Oppenheimer.

克里斯托弗·格林，奧本海默。

Hi, good morning. Had a question on that and hey. A question on the Energy segment. wondering the renewable energy and the grid hardening, the degree of codependence of those two versus maybe some independent drivers supporting the two callouts there. And if you're starting to see Richard's kind of cross-sell or bilateral pull creeping in there? And just the run rate you're seeing here are just really structural lift or some particular periodic stream.

嗨，早安。對此有一個疑問，嘿。關於能源領域的一個問題。想知道再生能源和電網強化，這兩者之間的相互依賴程度，或者可能有一些獨立的驅動因素來支持這兩個方面。您是否開始看到理查德的交叉銷售或雙邊拉動逐漸顯現？您在這裡看到的運行率實際上只是結構性升力或某些特定的周期性流動。

No, great question. I think just let me peel that apart a little bit here. First off being, I think when you look at both trends that we position around that starts with electricity growth is the common trend. When you deal with grid hardening and renewables, they are independent. They don't have to be completely interlap because there can be things you're doing on the infrastructure to secure the infrastructure. That doesn't mean it's a renewable energy source.

不，這個問題問得好。我想讓我在這裡稍微剖析一下這一點。首先，我認為當你觀察我們所定位的兩個趨勢時，電力成長是一個共同趨勢。當你處理電網強化和再生能源時，它們是獨立的。它們不必完全交織，因為您可以在基礎設施上做一些事情來保護基礎設施的安全。這並不意味著它是一種再生能源。

So they are separate as you click down. Now that being said, Richards is much more aligned to what we do in grid hardening, it has really broadened what we do in grid hardening in North America. So if you look at our North American business before Richards, which was around $600 million, probably only $1 million of it wasn't great hardening Richard's is all grid hardening.

因此，當您單擊時，它們是分開的。話雖如此，理查茲與我們在電網加固方面所做的工作更加一致，它確實拓寬了我們在北美電網加固方面所做的工作。因此，如果你看看我們在 Richards 之前的北美業務，大約是 6 億美元，其中可能只有 100 萬美元不是很好的強化，Richard 的所有都是網格強化。

So we get much more exposure to create hardening with Richards. We do view down line, we could repurpose some of the Richard's products for renewable applications, but I would not say that's in the results because we are still in the middle of how do we increase the capacity to serve the current opportunity in the grid hardening side.

因此，我們獲得了更多的曝光機會，與理查茲一起創造強化。我們確實看到了下行趨勢，我們可以將理查德的一些產品重新用於可再生應用，但我不會說這是結果，因為我們仍處於如何增加容量以滿足電網強化方面的當前機會的中間階段。

But I do think down the road, that will create revenue opportunities. And the growth that we had this quarter of 20% organically, even without the M&A North America was much stronger than the trend around renewables. We are continuing to see strength there as well as in the grid hardening. So we still think this is an area that will drive nice growth Certainly, we think we're positioned well, and we'll also look for opportunities where we can strengthen it both organically and inorganically.

但我確實認為，從長遠來看，這將創造收入機會。即使沒有併購，本季我們實現了 20% 的有機成長，北美的成長趨勢也比再生能源的趨勢強勁得多。我們繼續看到那裡的力量以及電網的強化。因此，我們仍然認為這是一個能夠推動良好成長的領域。當然，我們認為我們處於有利地位，我們也會尋找機會透過有機和無機的方式來加強它。

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

好的。謝謝你，克里斯。我們可以問下一個問題嗎？

Samik Chatterjee, JPMorgan.

摩根大通的 Samik Chatterjee。

Hi, thanks for taking my question and strong friend here. Terrence, maybe I'll go back to something you mentioned in the Q&A earlier, which is you still think we are in the early innings in terms of the AI opportunity. There's also an investor perception that maybe you're a bit early in terms of market share opportunity as well in terms of AI, particularly related to your company.

你好，感謝你回答我的問題並成為我堅強的朋友。特倫斯，也許我會回到你之前在問答中提到的內容，那就是你仍然認為我們在人工智慧機會方面處於早期階段。還有一種投資者認為，就市場份額機會以及人工智慧而言，你們可能還為時過早，特別是與你們的公司相關的方面。

Maybe if you can sort of highlight where -- how do you think about market share between that you have between hyperscalers versus the chip companies? And where do you see more opportunity on that front as we look forward? Thank you.

也許您可以強調一下—您如何看待超大規模企業和晶片公司之間的市場份額？展望未來，您認為這方面還有哪些更多機會？謝謝。

Well, to your question, and I said it earlier, Samik, thanks for that question is we have to play with everybody here, when you sit there, let's face it, some people design their own chips and TPUs. In other cases, they leverage the leaderships and to really win you have to make sure you're playing with everybody in the ecosystem. I cannot stress that enough. I like our broadness and I think that, that can create market share opportunities in the future. And we also have to make sure we ramp the programs that we'd want.

好吧，對於你的問題，我之前說過，薩米克，謝謝你提出這個問題，我們必須和這裡的每個人一起玩，當你坐在那裡時，讓我們面對現實吧，有些人設計自己的芯片和 TPU。在其他情況下，他們利用領導力，要真正獲勝，你必須確保與生態系統中的每個人一起參與。我再怎麼強調這一點也不為過。我喜歡我們的廣度，我認為這可以在未來創造市場份額機會。我們還必須確保我們能夠推進我們想要的專案。

To Scott's first question, these programs are ramping, and we got to make sure we capitalize on it. So I think from a technology, we're extremely well positioned. I think there can be share opportunities in the future. But right now, it is saying we got to capitalize on the growth. And you're seeing that growth went from that $300 million to $800 million, and we expect to grow even more as we go into next year. So thanks for your question.

對於斯科特的第一個問題，這些項目正在加速發展，我們必須確保充分利用它。所以我認為從技術角度來看，我們處於非常有利的地位。我認為未來可能會有分享機會。但現在，它說我們必須利用這種成長。您會發現，成長額從 3 億美元增加到了 8 億美元，我們預計明年還會有更大的成長。感謝您的提問。

Thank you, Samik. I have the next question, please.

謝謝你，薩米克。請問我還有下一個問題。

William Stein, Truist Securities.

威廉·斯坦（William Stein），Truist Securities。

Thanks guys. Great quarter. I was going to focus on AI, but I feel like that's been covered pretty well already. I'd like to ask about a couple of -- well, at least one week spot anyway, book-to-bill was slightly below one, and it looks like that's driven by transportation. Can you talk about what's dragging that? And is it even an important metric for us to focus on. Thank you.

謝謝大家。很棒的一個季度。我本來想專注於人工智慧，但我覺得這個主題已經討論得相當清楚了。我想問幾個問題 - 好吧，至少有一周的時間，訂單出貨比略低於 1，看起來這是由運輸驅動的。能談談是什麼阻礙了這一進程嗎？這甚至是我們應該關注的一個重要指標。謝謝。

So a couple of things. I think it's a metric to look at. I would say when you look at our guide, I went over to all of it. What you do see is transportation the automotive market typically declines sequentially going from our quarter three to quarter four. And we do expect that trend to continue.

有幾件事。我認為這是一個值得關注的指標。我想說，當你看我們的指南時，我已經了解了所有內容。您所看到的是，運輸汽車市場通常會從第三季到第四季連續下滑。我們確實預計這種趨勢將會持續下去。

So that will impact. We did see orders come down, but that's more with a seasonal trend. So auto production, we believe, was 21 million units in the third quarter. We expect it to be closer to 20 million in the fourth quarter. So we do expect a sequential decline in production well, and that's really driving the book-to-bill when you have that type of trend, but we would normally see that this time of year.

所以這會產生影響。我們確實看到訂單下降，但這更多的是季節性趨勢。因此，我們認為第三季的汽車產量為 2,100 萬輛。我們預計第四季的銷量將接近 2,000 萬。因此，我們確實預期產量會持續下降，當出現這種趨勢時，這確實會推動訂單出貨比，但我們通常會在每年的這個時候看到這種情況。

So it's not concerning to us. And hey, all of it is included in the guide that we just went out with for the double-digit growth at the company level.

所以這與我們無關。嘿，所有這些都包含在我們剛發布的公司層面兩位數成長指南中。

Okay, thank you, Will. We have the next question.

好的，謝謝你，威爾。我們有下一個問題。

Colin Langan, Wells Fargo.

富國銀行的科林·蘭根。

Oh, great, thanks for taking my question. And congrats on a good quarter. I just wanted to ask a little bit about the organic growth in transport and auto. I thought the long-term target was to be 4% to 6% over market. I thought you were trending at the low end. I think S&P is up 2% on light vehicles.

哦，太好了，感謝您回答我的問題。恭喜本季業績良好。我只是想問一下有關運輸和汽車行業的有機成長問題。我認為長期目標是比市場高出 4% 到 6%。我以為你的趨勢是低端的。我認為標準普爾輕型汽車指數上漲了 2%。

So it looks like you're kind of in line with market growth in that segment. Any color there? And how should we think about that? Is that being impacted by all the EV push outs in the US and Europe?

因此看起來您與該領域的市場成長情況是一致的。有顏色嗎？我們該如何看待這個問題？這是否會受到美國和歐洲大力推廣電動車的影響？

No, it's a great question. And first off, being, we view that auto production declined about 1 point in the third quarter, and we grew 2 points. So we had about 3% outperformance where we are running a little bit below our 4% to 6% really has to do with the unevenness of the world. In Asia, we're growing 11% on a 4% production growth of cars. So we really are seeing that content outperformance with the West being down 5% in production, our content is a little bit higher in the West.

不，這是一個很好的問題。首先，我們認為第三季汽車產量下降了約 1 個百分點，而我們的產量增加了 2 個百分點。因此，我們的表現超出預期約 3%，而略低於 4% 至 6%，這確實與世界的不平衡有關。在亞洲，汽車產量增加了 4%，銷售額也成長了 11%。因此，我們確實看到內容表現優異，西方的產量下降了 5%，而我們的內容在西方略高一些。

That does pressure the overall cat I think we're going to be around 400 basis points in the fourth quarter. But the unevenness in production right now is impacting what you see in the overall content. We still feel good about the right now, we're getting a little bit of pressure due to Western production levels being light. And hey, that will correct at some time, but you're seeing that in the growth over market.

這確實給整體利率帶來了壓力，我認為第四季度利率將達到 400 個基點左右。但目前製作的不均衡正在影響您所看到的整體內容。我們現在仍然感覺良好，由於西方產量較低，我們承受著一點壓力。嘿，這種情況會在某個時候得到糾正，但你會在市場成長中看到這種情況。

Okay, thank you, Colin. We have the next question, please.

好的，謝謝你，科林。我們有下一個問題。

Joe Giordano, TD Cowen.

喬·喬達諾（Joe Giordano），TD Cowen。

Hey guys, good morning.

大家好，早安。

Hey, Joe.

嘿，喬。

Can you talk about price a little bit? And how was that in the quarter? And just is how you think about that going forward? Like I believe that most of your price was surcharges related to tariffs and if we're going into like a de-escalation phase here, in price turned into like a modest headwind maybe on the top line with like better margins coming through?

能稍微談談價格嗎？本季的情況如何？那麼您對於未來有何看法呢？就像我相信您的大部分價格都是與關稅相關的附加費，如果我們進入降級階段，價格可能會變成適度的逆風，也許在頂線上會有更好的利潤率？

Yes. Let me talk about price a little bit, and I'll talk about it. There's the tariff impact versus normal pricing environment. In the tariff side of things, when we guided last quarter, we thought that tariff cost would be about 3% of our sales. Due to all the policy changes, it came in about half that number.

是的。稍微說一下價格，我就來說一下。與正常定價環境相比，存在關稅影響。在關稅方面，當我們指導上個季度時，我們認為關稅成本將占我們銷售額的 3% 左右。由於所有政策的變化，這一數字大約減少了一半。

So about 1.5 points and as he said in his pre remarks, we -- it had no earnings impact. So our teams mitigated through the strategy that we talked about last quarter. How can we do things from a supply chain perspective, both ourselves and our customers and where we can't do that. we implemented pricing and the bigger impacts in our Industrial segment. So really, where you see where we did do pricing.

因此大約 1.5 個百分點，正如他在預先發言中所說，它對盈利沒有影響。因此，我們的團隊透過上個季度討論的策略緩解了這個問題。我們如何從供應鏈的角度來做事，包括我們自己和我們的客戶，以及我們不能做什麼。我們在工業領域實施了定價和更大的影響。所以實際上，您看到我們確實在何處定價。

It's really in the industrial segment. But it wasn't as big of a number as we talked just due to the policy changes. And in our guide, we basically assume with what was enacted, it will be similar to what we just did in quarter three. So our guide for the fourth quarter sort of assumes that same impact as we had in quarter three.

它確實屬於工業領域。但由於政策變化，這個數字並不像我們所說的那麼大。在我們的指南中，我們基本上假設所製定的內容與我們在第三季所做的類似。因此，我們對第四季的指導假設其影響與第三季相同。

And as we've talked about just overall pricing without surcharges because they are -- the tariff surcharges, as we've talked historically, the bigger driver of where pricing goes from here will be material cost. We're continuing to watch that closely. I think you're going to continue to see areas where we have that.

正如我們所討論的，只是不含附加費的總體定價，因為它們是關稅附加費，正如我們過去所討論的，從現在開始定價的更大驅動力將是材料成本。我們將繼續密切關注此事。我想你會繼續看到我們擁有這種情況的領域。

We'll be positive in price in our industrial segment. And that's just something we're going to keep in front of us because, obviously, some things are jumping around right now, but we feel how we're managing it and continuing to pull the levers we can pull to minimize the impact on earnings, feel the teams are doing a good job.

我們的工業領域價格將保持積極態勢。這只是我們要繼續關注的事情，因為顯然現在有些事情正在發生，但我們感覺到我們正在管理它，並繼續盡我們所能將對收益的影響降到最低，感覺團隊做得很好。

All right, thank you, Joe. Can I have the next question, please.

好的，謝謝你，喬。請問我可以問下一個問題嗎？

Wamsi Mohan, Bank of America.

美國銀行的 Wamsi Mohan。

Yes, thank you so much. Hey, you're going to be exiting this fiscal year with very strong momentum. Any thoughts on early percentages on fiscal '26 and sort of this momentum of high-teens EPS growth. Is that something that we should be underwriting? And I know you just noted the impact of rising let's say, copper pricing at least. And so if you could sort of frame that, around '26, that would to be great.

是的，非常感謝。嘿，你們將會以非常強勁的勢頭結束本財年。對 26 財年的早期百分比以及高十幾個百分點的 EPS 成長動能有何看法？這是我們應該承保的事情嗎？我知道您剛才至少提到了銅價上漲的影響。因此，如果您能將其確定在 26 年左右，那就太好了。

Yes. I think when you look at '26, and I just think some of the things we talked about and let's face it, Sal talk about at Investor Day in November, Wamsi. So we have to make you come to that. So I think what you see is the growth momentum we have, I think, is clear and certainly will keep in front of us. And I do think it comes through the fall-through on the volume from here.

是的。我想當你回顧 26 年時，我只是想到我們談論過的一些事情，讓我們面對現實吧，Sal 在 11 月的投資者日談論過，Wamsi。所以我們必須讓你意識到這一點。所以我認為，我們所看到的是我們的成長勢頭是明顯的，而且肯定會繼續保持下去。我確實認為這是透過從這裡開始的音量下降來實現的。

We've done a lot of structural work. You've seen the benefits of it and certainly with what we put up here. But I think it's going to be the fall-through on the growth that I think we have proved the operations of TE and you see it in many of the businesses and markets that we're in, which does create strong levers for flow-through that gets to double-digit earnings. And the other thing is while that's a P&L view I don't want to lose sight of what we've done on the cash side.

我們做了很多結構性工作。您已經看到了它的好處，當然也看到了我們在這裡提出的內容。但我認為這將會影響到成長，我認為我們已經證明了 TE 的運營，並且您可以在我們所處的許多業務和市場中看到它，這確實為實現兩位數收益的流通創造了強大的槓桿。另一件事是，雖然這是損益表的觀點，但我不想忽視我們在現金方面所做的事情。

Cash conversion this year will be over 100% again and that provides the optionality that Heath talked about, whether it is deployed to owners or as we did with a couple of acquisitions this year to strengthen some of those secular trends that we're around. So I do think the levers are there to continue this certainly, we need to continue to execute. But I also think, like I said in the pre comments, the investments we made and how we got deeper into some trends just broaden out some of the growth vectors that we had versus historical.

今年的現金轉換率將再次超過 100%，這提供了 Heath 談到的可選性，無論是部署給所有者，還是像我們今年進行的幾次收購一樣，以加強我們所處的某些長期趨勢。所以我確實認為，我們有足夠的力量繼續這樣做，當然，我們需要繼續執行。但我也認為，就像我在之前的評論中所說的那樣，我們所做的投資以及我們如何深入了解某些趨勢只是拓寬了我們相對於歷史的一些成長向量。

All right, thank you, Wamsi. Can we have the next question, please.

好的，謝謝你，Wamsi。請問我們可以問下一個問題嗎？

Asiya Merchant, Citi Group.

花旗集團亞洲商人。

Great, thank you for taking my question. Great. Just some early thoughts, if you may, on the passage of this one big beautiful bill. And perhaps offsetting some macro pressures that may be a function of tariff. Like any early thoughts on that? And one, if I may, again, on the cash flow.

太好了，謝謝你回答我的問題。偉大的。如果可以的話，我只想就這項美麗的法案的通過發表一些初步想法。或許可以抵銷關稅帶來的一些宏觀壓力。對此有什麼早期的想法嗎？如果可以的話，我再說一下現金流。

I mean, you guys have talked about optionality here with strong free cash flow generation. Just some thoughts on where you would like to use that optionality as it relates to the acquisition front? And where do you -- and how is the pipeline looking for those acquisitions? Thank you.

我的意思是，你們在這裡討論了具有強大自由現金流產生的選擇性。您有什麼想法嗎？就收購方面而言，您想在哪裡使用這種可選性？您在哪裡—以及通路如何尋找這些收購？謝謝。

Yes. Let me talk about the first one and then I'll let Heath talk about the pipeline there. First off, being -- we're a global company, and we play all around the world and like we sort of said some of the things where we've invested to make sure we strengthen ourselves from a localization are things that, I think, are evident in our results.

是的。讓我先談談第一個問題，然後讓希思談談那裡的管道。首先，我們是一家全球性公司，業務遍及世界各地，正如我們所說的那樣，我們投資的一些項目是為了確保我們從本地化中增強自己，我認為這些投資在我們的業績中是顯而易見的。

And there are some areas like when you think about energy, that will certainly help us and continue to help us. But we're going to be focused more on our customers to really make sure how do we bring the innovation to them around the world where we can play. And do we have the supply chain to capitalize it to make sure we can win our fair share and then gain share. So the bill itself touches a lot of things but let's also realize TE is a global company and how we deploy our innovation and our manufacturing all over the world.

當你想到能源時，有些領域肯定會對我們有幫助，並且會繼續幫助我們。但我們將更加關注我們的客戶，以確保我們如何將創新帶給世界各地的客戶。我們是否擁有供應鏈來利用它以確保我們能夠贏得公平的份額並獲得份額。因此，法案本身涉及許多方面，但我們也要認識到 TE 是一家全球性公司，我們如何在世界各地部署我們的創新和製造。

So there'll be some things that I think we position ourselves well for that's in the bill. But net-net, we also have to realize the trends we have are global, and that's just sort of a factor of electronics. And Heath, why don't you talk about the capital side of things?

所以我認為法案中的一些內容我們已經準備好了。但總的來說，我們也必須認識到，我們所處的趨勢是全球性的，這只是電子產品的一個因素。希思，你為什麼不談談資本方面的事情？

Sure. We have been obviously more active this year with a couple of deals, particularly in the energy space, on a sizable deal with Richards. As we look forward, not just for the remainder of our fiscal year, the next couple of months, but certainly into FY26. The pipeline does look good. Now it's bolt-on in nature.

當然。我們今年顯然更加活躍，達成了幾筆交易，特別是在能源領域，與理查茲達成了一筆規模相當大的交易。我們展望未來，不僅是本財年剩餘時間、接下來的幾個月，而且肯定是展望26財年。管道確實看起來不錯。現在它本質上是螺栓固定的。

So the types of things that doesn't mean they're small, just like Richard was a sizable check we wrote. But was a bolt-on for our energy business. And so we see things coming kind of in all shapes and sizes that are out there. Some are more interesting than others. But the beauty, particularly of our industrial businesses that it's a fairly fragmented landscape of things out there where they're, in some cases, has not been a ton of consolidation and those opportunities where it makes sense, we think we're in a good position to deploy capital to do that.

所以這類事情並不代表它們很小，就像理查是我們開出的一張數量很大的支票一樣。但對我們的能源業務來說，這只是一個附加功能。因此，我們看到各種形狀和大小的事物出現。有些比其他的更有趣。但其美妙之處在於，特別是對於我們的工業業務而言，這是一個相當分散的格局，在某些情況下，還沒有進行大量的整合，而對於那些有意義的機會，我們認為我們處於有利地位，可以部署資本來實現這一點。

So we're pleased with what we've done to date we always work in the pipeline and the cultivation efforts. It's nice to have the strength of the balance sheet behind us and the cash flow that we generate to be able to look at things of all different sizes and be able to make multiple bets and that should be what you'll continue to see us do as we move through the near and medium-term future.

因此，我們對迄今為止所做的工作感到滿意，我們始終致力於管道和培育工作。我們很高興擁有強勁的資產負債表和產生的現金流，使我們能夠審視各種規模的事物並進行多重押注，而這正是我們在近期和中期內將繼續做的事情。

Okay, thank you. Can I have the next question, please?

好的，謝謝。我可以問下一個問題嗎？

Steven Fox, Fox Advisors.

史蒂文‧福克斯，福克斯顧問公司。

Hi, good morning. I was just wondering on the AI growth that you talked about, the 80% growth, how successful you feel you are just keeping up with demand? And what kind of investments do you see yourselves making into next year, whether it's capacity or maybe you're being pushed to expand your product set with the customers? Thanks.

嗨，早安。我只是想知道，關於您談到的人工智慧成長，即 80% 的成長，您認為僅僅滿足需求就取得了多大的成功？您認為明年您會進行哪些投資，是產能投資，還是為了擴大產品系列以滿足客戶需求？謝謝。

So first off, we have been investing ahead. And even if you look at and Heath can probably add more color, our capital this year is almost 30% CapEx spending 30%. And the vast majority of that has gone into AI. So we have been investing ahead that's something that goes back to the first question of how you're making sure you have the capacity in place that can absorb the volume what our customers are expecting as we get the program win.

首先，我們一直在進行提前投資。即使你看一下，希思可能還會添加更多色彩，我們今年的資本幾乎是 30% 的資本支出 30%。其中絕大部分都投入了人工智慧領域。因此，我們一直在進行提前投資，這又回到了第一個問題：當我們贏得該專案時，如何確保有足夠的能力來滿足客戶的期望。

So I feel we have been the best thing. I feel we're continuing to look at how do we expand for more -- even more flex capacity to make sure we're well positioned to continue to drive the growth. But I feel it's real-time investment that's going there, and you see it in the numbers to scale from $300 million to $800 million. That's massive, and these are products that are new to world type products. These are not just making things that we've made for 40 years.

所以我覺得我們是最好的。我覺得我們正在繼續研究如何擴大規模，甚至獲得更多靈活的產能，以確保我們能夠繼續推動成長。但我覺得這是即時投資，你可以從數字上看到它從 3 億美元成長到 8 億美元。這是巨大的進步，這些產品對世界而言都是全新的。這些不僅僅是我們 40 年來一直在製造的東西。

This is cutting-edge technology on the high speed and it's a real testament to what our DDN team has been ramping. And in some ways, what we did and learned back when we had the cloud home about four years ago. We did it then, and we've just continued to expand to make sure these type of opportunities around high speed we can capitalize on.

這是高速領域的尖端技術，真正證明了我們的 DDN 團隊一直以來的努力。從某種程度上來說，這與四年前我們在雲端運算時代所做的和學到的東西是一樣的。我們當時就這麼做了，我們一直在不斷擴大規模，以確保我們能夠利用這些圍繞高速發展的機會。

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

好的，謝謝你，史蒂夫。我們可以問下一個問題嗎？

Shreyas Patel Wolfe Research.

Shreyas Patel Wolfe 研究。

Hey, thanks a lot for taking my question. So as we look at the company today, you're delivering 20% EBIT margins in both segments. I believe you have additional restructuring savings coming through 2026 based on prior actions and some of the higher-margin segments appear to be turning a corner. So should we -- how should we think about the trajectory of margins from here? Are there strategic investments you think the organization needs to make that may offset the incremental margins you're getting from just the strong top line growth?

嘿，非常感謝您回答我的問題。因此，當我們今天看這家公司時，你們在兩個部門都實現了 20% 的息稅前利潤率。我相信，根據先前的行動，到 2026 年您將獲得額外的重組節省，而且一些利潤率較高的部門似乎正在出現轉機。那麼我們應該－我們該如何看待從現在開始的利潤軌跡？您認為組織是否需要進行策略性投資，以抵銷強勁的營收成長所帶來的增量利潤？

Sure. Listen, we've been making investments. So when you think about the run rate of our existing profile, whether that's on operating expense investments, which are primarily around engineering or the capital investment that Terrence just referenced that help us build out the manufacturing capacity in different parts of the world.

當然。聽著，我們一直在進行投資。因此，當您考慮我們現有概況的運作率時，無論是營運費用投資（主要圍繞工程）還是 Terrence 剛才提到的資本投資，這些投資都有助於我們在世界不同地區建立製造能力。

Largely, those are embedded in our run rate. So there will be things that we will have trade-offs on. We may invest certainly in some of these areas like around AI that have shorter cycle times that need quicker ramps and trade those off with other areas, but that's what we do every day in terms of managing to that at time, if we take the total number up or the total expense up and other times, we absorb it with them there. But I don't think you're going to hear us come out and say, well, our margins would have been this if we didn't do this. That's not what we're all about.

很大程度上，這些都已融入我們的運行率中。因此，有些事情我們需要做出權衡。我們肯定會對某些領域進行投資，例如人工智慧領域，這些領域的周期更短，需要更快的成長，並與其他領域進行權衡，但這就是我們每天在管理方面所做的事情，如果我們增加總數或總費用，其他時候，我們會在那裡吸收它們。但我不認為你將會聽到我們說，如果我們不這樣做，我們的利潤率就會是這個水準。這並不是我們所要討論的。

I do think as you go into next year, balancing a list to with the growth opportunities that are in front of us, which are very broad-based. I mentioned earlier, probably a 30% flow -- incremental flow through, and I think that's probably for modeling purpose is a fair way. And listen, when you start getting volumes higher, you can see that tick up. And when you start to see volumes in low mid-single digits, that gets pressured a little bit. But in aggregate relative to our business model, that's kind of how we think about it.

我確實認為，當你進入明年時，你需要平衡一份清單，以應對我們面臨的非常廣泛的成長機會。我之前提到過，大概有 30% 的流量 - 增量流量，我認為這對於建模目的來說可能是一種公平的方式。聽著，當你開始提高音量時，你可以看到聲音在上升。當你開始看到交易量處於中低個位數時，壓力就會有點大。但整體而言，相對於我們的商業模式，我們就是這樣思考的。

Okay. Thank you, Shreyas. We want to thank everybody for joining us this morning. And if you have further questions, please contact Investor Relations at TE. Thank you, and have a nice day.

好的。謝謝你，Shreyas。我們要感謝今天上午與我們一起參加的各位。如果您還有其他問題，請聯絡 TE 的投資者關係部門。謝謝，祝您有愉快的一天。

Today's conference call will be available via replay beginning at 11:30 AM Eastern Time today, July 23 on the Investor Relations portion of TE Connectivity's website. That will conclude the conference for today. Thank you for participating. You may now disconnect.

今天的電話會議將於今天（7 月 23 日）美國東部時間上午 11:30 開始在 TE Connectivity 網站的投資者關係部分重播。今天的會議就到此結束。感謝您的參與。您現在可以斷開連線。