Gentherm Inc (THRM) 2025 Q2 法說會逐字稿

Greetings, and welcome to the Gentherm second-quarter 2025 earnings conference call. (Operator Instructions) As a reminder, this conference is being recorded. It is now my pleasure to introduce Gregory Blanchette, Senior Director, Investor Relations. Please go ahead.

您好，歡迎參加 Gentherm 2025 年第二季財報電話會議。（操作員指示）提醒一下，本次會議正在錄音。現在我很高興介紹投資者關係高級總監 Gregory Blanchette。請繼續。

Thank you, and good morning, everyone. Thanks for joining us today. Gentherm's earnings results were released earlier this morning, and a copy of the release is available at gentherm.com. Additionally, a webcast replay of today's call will be available later today on the Investor Relations section of Gentherm's website.

謝謝大家，早安。感謝您今天加入我們。Gentherm 的獲利業績已於今天早上早些時候發布，新聞稿副本可在 gentherm.com 上查閱。此外，今天晚些時候，Gentherm 網站的「投資者關係」板塊將提供今日電話會議的網路直播回放。

During this call, we will make forward-looking statements within the meaning of federal securities laws. These statements reflect our current views with respect to future events and financial performance, and actual results may differ materially. We undertake no obligation to update them, except as required by law. Please see Gentherm's earnings release and its SEC filings, including the latest 10-K and subsequent reports for discussions of our risk factors and other significant assumptions, risks and uncertainties underlying such forward-looking statements. During the call, we will also discuss non-GAAP financial measures as defined by SEC Regulation G. Reconciliations of these non-GAAP financial measures to the comparable GAAP financial measures are included in our earnings release and investor presentation.

在本次電話會議中，我們將根據聯邦證券法做出前瞻性陳述。這些聲明反映了我們對未來事件和財務表現的當前看法，實際結果可能存在重大差異。除非法律要求，我們不承擔更新它們的義務。請參閱 Gentherm 的收益報告及其 SEC 文件，包括最新的 10-K 和後續報告，以了解我們的風險因素以及此類前瞻性陳述背後的其他重要假設、風險和不確定性。在電話會議期間，我們還將討論美國證券交易委員會 G 條例定義的非公認會計準則 (non-GAAP) 財務指標。這些非公認會計準則 (non-GAAP) 財務指標與可比較公認會計準則 (GAAP) 財務指標的對帳包含在我們的收益報告和投資者報告中。

On the call with me today are Bill Presley, President and Chief Executive Officer; and Jon Douyard, Chief Financial Officer. During their comments, they will be referring to a presentation deck that we've made available on the Investors section of Gentherm's website. After the prepared remarks, we'd be pleased to take your questions.

今天與我一起通話的還有總裁兼執行長比爾‧普雷斯利 (Bill Presley) 和財務長喬恩‧杜亞德 (Jon Douyard)。在他們的評論中，他們將參考我們在 Gentherm 網站投資者部分提供的簡報。準備好發言後，我們很樂意回答您的問題。

Now I'd like to turn the call over to Bill.

現在我想把電話轉給比爾。

Thank you, Greg, and good morning, everyone. I want to start on slide 3, a few key performance highlights for the second quarter. The Gentherm team delivered results in line with our expectations in a highly dynamic environment. We improved adjusted EBITDA margin performance versus the first quarter by more than 100 basis points and achieved another strong quarter of automotive new business awards with over $600 million secured in Q2 and $1 billion year to date. This keeps us on track for another robust year.

謝謝你，格雷格，大家早安。我想從投影片 3 開始介紹第二季的一些關鍵業績亮點。Gentherm 團隊在高度動態的環境中取得了符合我們預期的成果。與第一季相比，我們的調整後 EBITDA 利潤率提高了 100 多個基點，並再次取得了強勁的汽車新業務獎項，第二季度獲得超過 6 億美元，今年迄今為止獲得 10 億美元。這使我們有望再創輝煌的一年。

We received a significant award from Ford on their F-Series platform, and I would like to use this as an example of how Gentherm is strategically positioned as a differentiated solutions provider. We have industry-leading technology and strong customer relationships, which position us well for this highly contested award. We secured all of the heat, ventilation, lumbar and massage systems on Ford's next-generation F-150, F-250, and F-350 platforms, making us the full comfort solution provider on one of the most significant platforms in the market. The F-Series truck platform is the number one volume vehicle in North America and is in the top five globally. This reinforces that Gentherm thermal and pneumatic products are not just focused on the luxury vehicle segment, but they are becoming the customer standard and applicable to large volume platforms.

我們在福特的 F 系列平台上獲得了一項重要獎項，我想以此為例，說明 Gentherm 如何策略性地定位為差異化解決方案提供者。我們擁有業界領先的技術和牢固的客戶關係，這讓我們在爭奪這一競爭激烈的獎項方面佔據優勢。我們確保了福特下一代 F-150、F-250 和 F-350 平台上的所有加熱、通風、腰部和按摩系統的安全，使我們成為市場上最重要的平台之一的完整舒適解決方案提供者。F系列卡車平台是北美銷售第一的車型，在全球也名列前五名。這進一步證明 Gentherm 熱力和氣動產品不僅僅專注於豪華車領域，而且它們正在成為客戶標準並適用於大容量平台。

Additionally, it's important to note that Gentherm was awarded the program prior to the selection of a Tier 1 seat supplier, demonstrating the strength of our commercial approach, which is built around direct OEM engagement. Our products are an essential component in the OEM product planning process, and we work closely with them to deliver capability and value to the end user. I am grateful to the team for securing the significant new business award. We continue to innovate thermal and pneumatic solutions that allow us to create a highly desirable value-added feature for the market. Turning to revenue.

此外，值得注意的是，Gentherm 在選擇一級座椅供應商之前就獲得了該項目，這證明了我們以直接 OEM 參與為基礎的商業方法的優勢。我們的產品是 OEM 產品規劃流程中的重要組成部分，我們與他們密切合作，為最終用戶提供功能和價值。我非常感謝團隊獲得這項重要的新業務獎。我們不斷創新熱能和氣動解決方案，以便為市場創造出極具吸引力的增值功能。談到收入。

In the second quarter, Automotive Climate and Comfort Solutions outperformed actual light vehicle production in our key markets by 10 basis points, excluding FX. While we are not pleased with the overall result, we did have strong outperformance in North America and Europe weighed down by underperformance in Asia, where our share does not currently represent the market. We recognize the importance of shifting our customer mix and are actively tailoring our pursuit maps to close the gap in Asia.

第二季度，汽車氣候與舒適解決方案在我們主要市場的輕型汽車實際產量（不包括外匯）上高出 10 個基點。雖然我們對整體業績並不滿意，但我們在北美和歐洲的表現確實非常出色，但在亞洲的表現不佳，導致我們的份額目前無法代表整個市場。我們認識到轉變客戶結構的重要性，並正在積極調整我們的追求地圖以縮小亞洲的差距。

To demonstrate progress, we have made to proactively grow our business with Chinese domestic OEMs. If you look at our awards year-to-date, 70% of our Chinese awards were with Chinese domestic OEMs, compared to 50% over the last two years. As a result of the team's efforts, historically in China, our customer revenue mix was about 80/20 in favor of the global OEMs. And we expect next year to be closer to 60/40. It remains a key strategic priority for us to shift our China customer mix toward domestic OEMs to be more closely aligned to the overall market. Operationally, we are laying the necessary foundation for driving improved operational and financial performance, which will allow us to strategically deploy capital. Now on to slide 4 for an update of our progress against our strategic priorities.

為了證明我們所取得的進展，我們積極發展與中國國內 OEM 廠商的業務。如果你看一下我們今年迄今為止獲得的獎項，你會發現 70% 的中國獎項都是來自中國國內的原始設備製造商 (OEM)，而過去兩年這一比例為 50%。由於團隊的努力，在中國，我們的客戶收入結構歷史上約為 80/20，有利於全球 OEM。我們預計明年的比例將更接近 60/40。將我們的中國客戶結構轉向國內 OEM 以更緊密地與整體市場保持一致仍然是我們的關鍵策略重點。在營運方面，我們正在為推動改善營運和財務表現奠定必要的基礎，這將使我們能夠策略性地部署資本。現在請看投影片 4，了解我們在策略重點上的最新進展。

We are committed to driving strategic profitable growth and confident in the growth trajectory of our core automotive business. Pneumatic, Lumbar, and Massage adoption rates are accelerating. In 2024, the product line grew more than 20% from the prior year, and year-to-date, we've grown more than 15%. We expect that trend to continue. We project that our Lumbar Massage product line will grow from approximately $175 million in 2024 to well over $300 million by 2027.

我們致力於推動策略性獲利成長，並對我們的核心汽車業務的成長軌跡充滿信心。氣動、腰部和按摩的採用率正在加快。2024 年，產品線比前一年增長了 20% 以上，而今年迄今為止，我們的成長已超過 15%。我們預計這一趨勢將會持續下去。我們預計，我們的腰部按摩產品線將從 2024 年的約 1.75 億美元增加到 2027 年的 3 億美元以上。

Growth will be driven by increasing adoption and recent awards that have not yet gone into production. These include GM's full-size truck platform, a Hyundai vehicle with Puls.A technology, as well as multiple domestic Chinese OEMs, including Leapmotor.

成長將受到日益增長的採用率和尚未投入生產的最新獎項的推動。其中包括通用汽車的全尺寸卡車平台、採用 Puls.A 技術的現代汽車，以及包括零跑車在內的多家中國本土原始設備製造商。

Separately, we are executing on our strategy to expand into near adjacent markets and are gaining momentum. Over the first half of the year, our global team has engaged with over 30 customers across a variety of end markets, and the feedback has been overwhelmingly positive as customers are now expecting the same comfort solutions as those in the light vehicle market. We demonstrated quick progress and secured five new awards in the quarter, including two new commercial vehicle programs with our thermal management solutions, and three valve awards for Power sports platforms. These wins validate that our products have broader application, and we see additional early opportunities in these markets as well as two-wheelers and motion furniture. I am impressed with our team's ability to quickly pivot beyond the light vehicle market, and we do believe this is just the beginning.

另外，我們正在執行向鄰近市場擴張的策略，並且正在獲得發展動力。今年上半年，我們的全球團隊與來自各個終端市場的 30 多家客戶進行了接觸，反饋非常積極，因為客戶現在期待與輕型車市場相同的舒適解決方案。我們在本季度取得了快速進展並獲得了五個新獎項，其中包括兩個採用我們的熱管理解決方案的新商用車項目，以及三個動力運動平台閥門獎項。這些勝利證明我們的產品具有更廣泛的應用，並且我們在這些市場以及兩輪車和運動家具領域看到了更多的早期機會。我對我們團隊迅速轉向輕型車市場以外的能力印象深刻，我們確實相信這只是一個開始。

Second, we continue to position the Medical business for future growth. We announced an expanded strategic partnership with DuoMed to enhance European distribution, increasing market access for our existing product portfolio and we progressed our work on new medical product development and expect announcements in the coming quarters. Operationally, I spent time with the leadership team in five of our manufacturing sites during the quarter performing workshops, sharing best practices and standardizing business processes.

其次，我們繼續為醫療業務的未來成長做好準備。我們宣布與 DuoMed 擴大戰略合作夥伴關係，以加強歐洲分銷，增加我們現有產品組合的市場准入，並且我們正在推進新醫療產品開發工作，並預計將在未來幾季發佈公告。在營運方面，本季我與我們五個製造基地的領導團隊一起舉辦了研討會，分享了最佳實踐並標準化了業務流程。

In my business, I have observed best-in-class capabilities and will drive these across the company as part of a standardized company operating system. Our global strategic footprint realignment plans remain on track and expect to be substantially completed with our announced plans in late 2026 as previously communicated. M&A is an important component of our capital allocation strategy. We have progressed the M&A funnel development and are evaluating opportunities aligned with our strategic priorities and core technology platforms.

在我的業務中，我觀察到了一流的能力，並將作為標準化公司作業系統的一部分在整個公司推廣這些能力。我們的全球策略佈局調整計畫仍在按計畫進行，預計將按照先前宣布的計畫在 2026 年底基本完成。併購是我們資本配置策略的重要組成部分。我們已經推進了併購管道的開發，並正在評估與我們的策略重點和核心技術平台一致的機會。

And now I will turn the call over to John to review second quarter highlights and results. John?

現在我將把電話交給約翰來回顧第二季度的亮點和結果。約翰？

Thanks, Bill. Please turn to slide 5. For the second quarter, we secured $620 million of automotive new business awards. A few highlights include the Ford F-Series program, which, as Bill mentioned, is an important strategic win that secures our content on the highest volume platform in North America for the next decade. Our technology leadership was further reinforced as we secured additional Puls.A awards on four vehicles with JLR and BMW as they scale the technology across their platforms. Puls.A, our proprietary pulsating massage system is gaining traction, and its performance remains unmatched in the market. With increasing momentum among OEMs, we expect this innovation to drive profitable incremental growth of our Lumbar Massage Comfort Solutions business for years to come.

謝謝，比爾。請翻到投影片 5。第二季度，我們獲得了 6.2 億美元的汽車新業務獎勵。其中幾個亮點包括福特 F 系列計劃，正如比爾所提到的，這是一項重要的戰略勝利，確保我們的內容在未來十年內能夠停留在北美最大的平台上。隨著捷豹路虎和寶馬在其平台上擴展該技術，我們四款車型獲得了額外的 Puls.A 獎項，我們的技術領先地位得到了進一步加強。Puls.A，我們專有的脈動按摩系統正在獲得關注，其性能在市場上仍然無與倫比。隨著原始設備製造商 (OEM) 的發展勢頭不斷增強，我們預計這項創新將在未來幾年推動我們的腰部按摩舒適解決方案業務的盈利性增量增長。

We are also winning in China with Chinese domestic OEMs, including BYD, Great Wall, and Leapmotor. These awards will drive incremental growth in China, resulting in a shift of our customer mix over time to be more aligned with the overall Chinese market. To that end, we launched nine new programs in the quarter, including several programs with Chinese domestic OEMs, highlighted by the launch of a steering wheel heat with hands-on detection program with Xiaomi on the YU7, which is expected to become one of the highest volume vehicles in China over the next several years.

我們也在中國與比亞迪、長城和零跑車等中國本土原始設備製造商合作，並取得了成功。這些獎項將推動中國市場的逐步成長，使我們的客戶結構隨著時間的推移而變化，以更適應整個中國市場。為此，我們在本季度推出了九個新項目，其中包括與中國國內原始設備製造商合作的幾個項目，其中最突出的是與小米合作在 YU7 上推出的方向盤加熱和手動檢測項目，預計 YU7 將成為未來幾年中國銷量最高的汽車之一。

Additionally, as mentioned earlier in the year, we won a thermal control unit program across several Stellantis vehicle platforms for both seat and steering wheel heat control. And in the quarter, we were excited to launch on the Ram 1500. Please turn to slide 6 for a more detailed review of the second quarter financial results.

此外，正如今年早些時候提到的，我們贏得了多個 Stellantis 汽車平台的熱控制單元項目，用於座椅和方向盤的加熱控制。本季度，我們很高興推出 Ram 1500。請翻到投影片 6 更詳細地了解第二季的財務表現。

Second quarter revenue decreased 0.2% compared to the same period last year. Foreign exchange adjusted revenues decreased 1.6%. The Automotive, Climate and Comfort Solutions revenue increased 3.8% year over year or 2.5% ex-FX, which partially offset planned revenue decreases from previously discussed strategic exits. Medical revenue decreased 3.8% year over year or 4.8% excluding the impact of FX.

第二季營收與去年同期相比下降了0.2%。外匯調整後收入下降了 1.6%。汽車、氣候和舒適解決方案收入年增 3.8%，扣除匯率因素後成長 2.5%，部分抵銷了先前討論的策略性退出造成的計畫收入下降。醫療收入年減 3.8%，若不計外匯影響則下降 4.8%。

Turning to profitability. We delivered $45.9 million of adjusted EBITDA in the quarter or 12.2% of sales compared to 13.3% in the second quarter of last year. The decrease was primarily driven by higher material costs, which includes unfavorable product mix as well as higher labor costs and expenses related to our footprint realignment. As we discussed previously, we experienced timing disconnects between tariff expense and recovery as well as dilution from the pass-through revenue, which collectively impacted margins by approximately 15 basis points in the quarter. Overall, our team has done a nice job of running the playbook to mitigate tariff exposure.

轉向盈利能力。本季我們的調整後 EBITDA 為 4,590 萬美元，佔銷售額的 12.2%，而去年第二季為 13.3%。下降的主要原因是材料成本上升，包括不利的產品組合以及與我們的足跡調整相關的更高的勞動力成本和成本。正如我們之前所討論的，我們經歷了關稅支出和復甦之間的時間脫節以及轉嫁收入的稀釋，這些因素共同影響了本季度的利潤率約 15 個基點。總體而言，我們的團隊在執行劇本以減輕關稅風險方面做得很好。

Adjusted diluted earnings per share in the quarter were $0.54 per share compared to $0.66 per share in the second quarter of last year. Our balance sheet remains strong, and we have generated $32 million of operating cash flow year to date. We repurchased $10 million of shares in the second quarter and will continue to balance repurchases with other strategic priorities moving forward. Overall, net debt stood at $81 million, while our net leverage ratio remained flat at 0.5 turns. Our available liquidity was $416 million at the end of the quarter, an increase of $15 million from the prior year. Please turn to slide 7 for a discussion on our guidance for the remainder of the year.

本季調整後每股攤薄收益為 0.54 美元，去年第二季為每股 0.66 美元。我們的資產負債表依然強勁，今年迄今我們已產生 3,200 萬美元的營運現金流。我們在第二季回購了價值 1,000 萬美元的股票，並將繼續平衡回購與其他策略重點。總體而言，淨債務為 8,100 萬美元，而我們的淨槓桿率保持在 0.5 倍不變。本季末，我們可用的流動資金為 4.16 億美元，比上年增加 1,500 萬美元。請翻到投影片 7，了解我們對今年剩餘時間的指導意見。

Overall, sentiment has improved since April. We continue to diligently monitor the market, including industry reports as well as customer production schedules, which have remained relatively stable throughout the entire year. Based on the latest available information, we have updated our guidance and increased the revenue midpoint. We now expect revenue to be in the range of $1.43 billion to $1.5 billion.

整體而言，自四月以來市場情緒有所改善。我們持續密切關注市場，包括行業報告以及客戶生產計劃，這些計劃全年都保持相對穩定。根據最新可用信息，我們更新了指導並提高了收入中點。我們現在預計收入將在 14.3 億美元至 15 億美元之間。

On EBITDA, given our results year-to-date, increased clarity on the impact of tariffs based on what is in place today as well as the expectation of improved performance in the second half, we have narrowed the adjusted EBITDA margin range to 11.7% to 12.5%. On capital expenditures, we are reducing our expected range to $55 million to $65 million to reflect the focus on optimizing the utilization of current plant and equipment while also scrutinizing new projects.

關於 EBITDA，鑑於我們今年迄今為止的業績、基於當前情況的關稅影響更加清晰以及對下半年業績改善的預期，我們已將調整後的 EBITDA 利潤率範圍縮小至 11.7% 至 12.5%。在資本支出方面，我們將預期範圍下調至 5,500 萬美元至 6,500 萬美元，以反映對優化現有工廠和設備的利用率以及審查新項目的重點。

As we think about the cadence for the remainder of the year, we expect third quarter overall results to be roughly in line with the second quarter despite industry reports suggesting a mid-single-digit decrease in light vehicle production sequentially. In closing, we remain on track to deliver our financial commitments for the year while positioning the company to drive shareholder value over the long term.

當我們考慮今年剩餘時間的節奏時，我們預計第三季的整體業績將與第二季大致持平，儘管產業報告顯示輕型汽車產量較上季下降中個位數。最後，我們將繼續按計劃履行今年的財務承諾，同時使公司能夠長期推動股東價值。

With that, I will hand it back to Bill for closing remarks.

至此，我將把發言權交還給比爾，請他作最後發言。

Thanks, John. I want to wrap up on slide 8, reiterating our belief that Gentherm is uniquely positioned for long-term value creation. We remain focused on driving profitable growth of our innovative and differentiated core technology platforms. In a short time, we have proven these are scalable and portable to adjacent markets. Next, we are committed to driving margin expansion through continuous improvement and have a clear path with our strategic footprint realignment and focused efforts on the margin profile of the Lumbar and Massage Comfort Solutions business.

謝謝，約翰。我想在第 8 張投影片上總結一下，重申我們的信念，即 Gentherm 在長期價值創造方面具有獨特的優勢。我們將繼續致力於推動創新和差異化核心技術平台的獲利成長。在短時間內，我們已經證明這些產品具有可擴展性，並且可以移植到鄰近市場。接下來，我們致力於透過持續改善來推動利潤率的擴大，並透過策略佈局的重新調整和對腰部和按摩舒適解決方案業務利潤率的集中努力，制定出明確的路徑。

Lastly, we are operating from a strong financial position. We remain flexible and opportunistic with our capital allocation priorities to drive shareholder value. In conclusion, we are acting with a sense of urgency on the execution of our long-term strategic priorities to deliver enhanced shareholder returns.

最後，我們的財務狀況良好。我們保持靈活性和機會主義的資本配置優先順序，以推動股東價值。總之，我們正緊急執行我們的長期策略重點，以實現更高的股東回報。

With that, I will turn the call back to the operator to begin the Q&A session.

說完這些，我將把電話轉回給接線生，開始問答環節。

(Operator Instructions) Ryan Sigdahl, Craig Hallum.

（操作員指示）Ryan Sigdahl、Craig Hallum。

Let's start on guidance since you ended with it. You mentioned Q3 expected to be similar to Q2 results despite the industry decline in mid-single digits. Is that a different -- or I guess is that a company-specific outperformance you expect given the visibility from new launches? Or do you have a different view from an industry production standpoint than where the forecasts are at?

既然您已經結束了，那麼讓我們開始指導吧。您提到，儘管產業下滑幅度達到中等個位數，但預計第三季的業績將與第二季相似。這是不同的嗎？或者我猜這是您根據新產品發布的可見度所預期的特定公司的優異表現？或者從產業生產的角度來看，您的看法與預測不同嗎？

Ryan, I think -- I would say it's a company-specific view. I mean we do have a number of new launches that are going to come out in the third quarter really across the regions. But also as we look at -- as we've talked about throughout the year, we've been very consistent from a customer production schedule standpoint. So the visibility we have here in the short term solidifies our view that Q3 looks a lot like Q2 from a top line perspective and expect the P&L to follow.

瑞安，我認為──我想說這是公司特定的觀點。我的意思是，我們確實會在第三季在各個地區推出一些新產品。但正如我們所看到的——正如我們全年所談論的，從客戶生產計劃的角度來看，我們一直非常一致。因此，我們在短期內所看到的景象鞏固了我們的觀點，即從營收角度來看，第三季與第二季非常相似，預計損益表也會隨之變化。

Very good. Then just switching over to Ford. Nice to see the new F-series, full comfort solutions portfolio on Ford F-Series. I guess, can you compare and contrast how that compares to because you guys had a lot of content on the previous or the current F-Series. But what's new, what's different current versus the next gen?

非常好。然後就轉向福特了。很高興看到新款 F 系列，福特 F 系列擁有全套舒適解決方案組合。我想，您能否比較一下，對比一下兩者之間的差異，因為您對之前或當前的 F 系列有很多內容。但是它有什麼新東西？目前產品與下一代產品有何不同？

Yeah. For us, Ryan, this is Bill. That was a continuation really of our current platform. So similar content is the previous F-Series. It just solidifies the desire of the customer to have our features because of the value that it provides to the end user, and significant for us because of our strong relationships with the customer because of our innovative product line, we're able to work with the customer while they're doing their product planning and be sourced into the product before they've even chosen a seat supplier.

是的。對我們來說，瑞安，這就是比爾。這實際上是我們當前平台的延續。因此類似的內容與先前的 F 系列類似。它只是鞏固了客戶對我們功能的渴望，因為它為最終用戶提供了價值，並且由於我們創新的產品線與客戶建立了牢固的關係，這對我們來說意義重大，我們能夠在客戶進行產品規劃時與他們合作，甚至在他們選擇座椅供應商之前就開始採購產品。

Yeah. And certainly, nice to have that extension with a core customer, especially given some of the noise in the market. Last question for me and then I'll turn it over to the others. Just on the adjacencies. I believe you called out three Powersports platforms that you have awards. Anything you can expand on that, who the OEMs are, what the content provided, et cetera?

是的。當然，很高興能與核心客戶進行這樣的擴展，特別是考慮到市場上的一些噪音。這是我的最後一個問題，然後我會把它交給其他人。就在鄰接處。我相信您提到了三個獲得獎項的 Powersports 平台。您能否詳細說明一下，OEM 是誰，提供什麼內容，等等？

I can't expand on who the OEM is. I'll tell you that they're UTV style vehicles. So -- and it just proves the thesis that our valves really being a what I call a catalog component, read across the other industries and our teams have been out there calling directly on those other end markets, right, to provide our solutions. So we're very positive on what we think we can do there. We're just building the channel, but we think this is a great opportunity for us in the future.

我無法詳細說明 OEM 是誰。我會告訴你它們是 UTV 風格的車輛。所以 - 這恰恰證明了我們的閥門確實是我所說的目錄組件，閱讀其他行業，我們的團隊一直在那裡直接呼籲其他終端市場，對，提供我們的解決方案。因此，我們對於我們能在那裡做的事情非常有信心。我們只是在建立管道，但我們認為這對我們未來來說是一個很好的機會。

Just to clarify, you said single OEM with three platforms.

需要澄清的是，您說的是單一 OEM 擁有三個平台。

Yes.

是的。

Ryan Brinkman, JPMorgan.

摩根大通的瑞安·布林克曼。

One thing that I think really stood out from your earnings call last quarter was the large opportunity you saw in the nonautomotive end markets. So it's great to see the awards already in Powersports and commercial vehicles. Thought to ask some questions around that. Starting with Powersports. I'm recalling a award early in the pandemic for heated and cold seats on Indian motorcycles. Is that what you're doing as well heated in cooled seats. You mentioned utility vehicles. I'm not sure -- Snowmobile seems obvious candidate.

我認為上個季度的財報電話會議中真正引人注目的一件事是您在非汽車終端市場看到了巨大的機會。很高興看到動力運動和商用車領域已經獲得了這些獎項。想問一些有關此的問題。從動力運動開始。我記得疫情初期印度摩托車的加熱和冷卻座椅曾經獲得過獎項。這就是你在加熱冷卻座椅時所做的事情嗎？您提到了多功能車輛。我不確定——Snowmobile 似乎是明顯的候選人。

And then on the commercial vehicles, are these commercial trucks? And can you remind us what, if any business you do today in commercial trucks? And then also on some of the less obvious adjacencies -- thank you for helping us with furniture being another, I hadn't thought of that but obviously makes a lot of sense. Did you mention another end market, too, I might have missed that.

那麼關於商用車，這些是商用卡車嗎？您能否提醒我們一下，您目前在商用卡車領域從事什麼業務？然後還有一些不太明顯的鄰接關係——感謝您幫助我們解決家具問題，這是另一個問題，我沒有想到這一點，但顯然很有意義。您是否也提到了另一個終端市場，我可能錯過了。

And then finally, you mentioned valves. And I just want to be clear, is that separate from these other awards? I imagine that furniture, commercial trucks, utility because sort of -- that, that would be heated, cold seats. Is that somehow different? And what are you looking at potentially supplying there, if not heated and cold seats?

最後，您提到了閥門。我想明確一點，這與其他獎項是不同的嗎？我想像家具、商用卡車、公用設施，因為那種——那將是加熱、冷座椅。這有什麼不同嗎？如果不提供加熱和冷卻座椅，您打算在那裡提供什麼？

Yeah. So let me try to take those. My team will keep me honest here on the number of questions. I think I'll hit them off. So let me just start with saying, our alternative -- our commercial vehicle is extremely small today, almost like negligible in the company.

是的。所以讓我嘗試一下。我的團隊會誠實地回答我提出的問題數量。我想我會和他們合得來。所以，首先我要說的是，我們的替代方案——我們的商用車目前規模非常小，在公司中幾乎可以忽略不計。

So the commercial vehicle wins that we're talking about here specifically thermal solutions, and there were two awards on commercial vehicle. One of them is actually a heavy truck. So a Class A over-the-road truck. So that's a big win for us there. And the other one is a last-mile delivery van. So both commercial vehicles, both good wins, some new wins for us.

因此，我們在這裡討論的商用車獲獎具體來說是熱解決方案，商用車方面獲得了兩個獎項。其中一輛實際上是一輛重型卡車。所以這是一輛 A 級公路卡車。這對我們來說是一個巨大的勝利。另一輛是最後一哩送貨車。因此，這兩款商用車都為我們帶來了好的勝利，也帶來了新的勝利。

The valve specifically, we're in the Powersports platforms that was separate of any thermal and pneumatic solution. And again, that was a good win, the team engaging directly with the OEM there. The valves for us, we view valves as a separate core strategy or a separate core technology platform, right? If you think back, we said we have four core technology platforms.

具體來說，我們在 Powersports 平台上的閥門與任何熱和氣動解決方案都是分開的。再次，這是一次很好的勝利，團隊直接與那裡的 OEM 合作。對我們來說，我們將閥門視為一個單獨的核心策略或一個單獨的核心技術平台，對嗎？如果你回想一下，我們說過我們有四個核心技術平台。

They were thermal solutions. They were pneumatic solutions. There were valves and they were air-moving devices. We view valves and air moving devices as catalog parts meaning it's a flow equation and a dimension. So we go out to the OEMs, we show the value that we can provide, the performance that we can provide, and that's how we're trying to win, and that's what the team brought home this quarter.

它們是熱解決方案。它們是氣動解決方案。有閥門，它們是空氣流動裝置。我們將閥門和空氣移動設備視為目錄零件，這意味著它是一個流動方程式和一個尺寸。因此，我們走向 OEM，展示我們可以提供的價值、我們可以提供的效能，這就是我們努力取勝的方式，也是團隊本季的成果。

The other end markets that we specifically mentioned were two-wheelers. So two-wheelers would be applicable to our thermal solutions. They would also be applicable to valves. We're in some early proof of concepts, I would say there with two-wheelers. And then motion furniture is anything that's not stationary. That's -- the doors there have opened well. The communications there have been very positive, and we're in early proof of concepts with two equipment manufacturers in motion furniture right now.

我們特別提到的另一個終端市場是兩輪車。因此兩輪車可以適用於我們的熱解決方案。它們也適用於閥門。我們正處於一些早期概念驗證階段，我想說的是兩輪車。運動家具是指任何非固定的東西。那是──那裡的門已經打開了。雙方的溝通非常積極，目前我們正與兩家運動家具設備製造商進行早期概念驗證。

And I would just add, Ryan, I think we did talk about this on the last call, but this is us taking current product lines and opening up to existing markets. So minimal investment we're not offering really new products but tailoring them and looking for opportunities to just enter adjacent markets.

我想補充一點，瑞安，我想我們在上次電話會議上確實討論過這個問題，但這是我們利用現有的產品線並向現有市場開放。因此，最低限度的投資使我們不提供真正的新產品，而是對其進行客製化並尋找進入鄰近市場的機會。

Yeah, I think super good point to clarify. Right, Ryan. These are not us creating a bespoke solution for a unique market. This is us scaling our core platform technologies and components. So utilizing literally the same plant property and equipment that we have today out there pushing what our teams on the thermal and pneumatics segment called standard kits and pushing on the valves what our teams would call catalog parts.

是的，我認為澄清這一點非常好。對的，瑞安。我們並不是為某個獨特的市場創建客製化的解決方案。這是我們擴展核心平台技術和組件。因此，利用我們今天擁有的相同的工廠財產和設備，推廣我們在熱力和氣動領域的團隊所稱的標準套件，並推廣我們的團隊在閥門上所稱的目錄零件。

Okay. Very helpful. Thank you. And then just lastly, on the EBITDA margin change in the guide. Obviously, some good fraction year-to-date, you're a little bit better than consensus here in the quarter. Just curious if you can comment on that.

好的。非常有幫助。謝謝。最後，關於指南中的 EBITDA 利潤率變化。顯然，今年迄今的一些好成績比本季的普遍預期要好一些。我只是好奇您是否可以對此發表評論。

And I understand it's a little bit of a narrowing but kind of the midpoint down slightly. And then just curious if tariffs have influenced at all. You're one of just a handful of suppliers to have reported 1Q earnings before the April 29 USMCA compliant part exemption from tariffs, is there maybe like less pass-through of zero-margin tariff costs? Or what are the puts and takes there on -- not a big change, but puts and take on the full year margin revision, please?

我知道它有點縮小，但中點略微下降。我只是好奇關稅是否有任何影響。你們是少數幾家在 4 月 29 日 USMCA 合規零件免關稅之前報告第一季度收益的供應商之一，零利潤關稅成本的轉嫁是否會減少？或那裡的利弊是什麼——變化不大，但是全年保證金修訂的利弊是什麼？

Yeah. Let me start on tariffs, Ryan. I mean I think we talked in the quarter about being about a 15 basis point headwind. I would say, generally, the tariffs have played out exactly as we have expected in terms of the cost incurred as well as our ability to pass through and recover. There is also the timing difference between when we do incur the expense and when we do recover from the customer, and that's really the headwind that we're seeing here. That will fluctuate month to month in terms of the magnitude just based on good movements.

是的。讓我先談談關稅，瑞安。我的意思是，我認為我們在本季度談論了大約 15 個基點的逆風。我想說，整體而言，就產生的成本以及我們轉嫁和恢復的能力而言，關稅的結果完全符合我們的預期。我們產生費用的時間和我們從客戶那裡收回費用的時間之間也存在時間差異，這就是我們在這裡真正看到的阻力。僅根據良好的走勢，其幅度每個月都會波動。

But I think we've got better clarity -- certainly better clarity today than we did in April, just on the fact that we've been living through it now for a couple of months. So that is a piece of narrowing the EBITDA guidance range as well as having additional clarity on what the tariff impact is overall. I think the other piece to that is you look at the first half of the year were 11.7% of adjusted EBITDA year to date. We did see sequential improvement from Q1 to Q2. We expect second half to be in the same range or a little bit better. And as you look at that math, it really sort of narrows it around that low 12% range.

但我認為，我們現在有了更清晰的認識——當然，今天比四月更清晰，因為我們已經經歷了幾個月了。因此，這可以縮小 EBITDA 指導範圍，並進一步明確關稅的整體影響。我認為另一點是，今年上半年的調整後 EBITDA 為 11.7%。我們確實看到了從第一季到第二季的連續改善。我們預計下半年的情況將保持相同水準或略有改善。當你看這個數學公式時，你會發現它確實縮小到了 12% 左右的範圍內。

(Operator Instructions) Matt Koranda, Roth Capital Partners.

（操作員指示）羅斯資本合夥公司 (Roth Capital Partners) 的 Matt Koranda。

Just on the guidance, I guess I wanted to clarify to hit the midpoint of the guide on EBITDA, it does look like in the second half, you did need to show a little bit of EBITDA margin expansion relative to the second half of last year. Should we expect that in the third quarter? Or is that more of a fourth quarter event? Maybe just the puts and takes around that.

僅就指導而言，我想我要澄清的是，要達到 EBITDA 指導的中點，看起來在下半年，你確實需要顯示相對於去年下半年有一點 EBITDA 利潤率擴張。我們應該在第三季期待這一點嗎？還是這更像是第四季的事件？也許只是圍繞著這一點的投入和產出。

Yeah. I think just to clarify what we said. I think the -- we expect the third quarter to look a lot like the second quarter did. And so should be similar from an EBITDA margin perspective, we will see an increase as we get into the fourth quarter, and that would be where we see more of the margin expansion.

是的。我想只是為了澄清我們所說的話。我認為——我們預計第三季的情況將與第二季非常相似。因此從 EBITDA 利潤率的角度來看應該是類似的，進入第四季度時我們將看到利潤率的增長，屆時我們將看到更多的利潤率擴張。

But really, we've got the teams focused on incremental improvements quarter over quarter, how do we get better in the factories from a manufacturing and efficiency perspective. And that's really what we're pushing on to see a better second half here.

但實際上，我們的團隊專注於逐季度逐步改進，從製造和效率的角度來看，我們如何讓工廠變得更好。這正是我們努力的方向，希望下半年能有更好的表現。

Okay. And the fourth quarter improvement comes mostly from a mix improvement? Or is that a vendor negotiation thing? What are the kind of buckets where you see the improvement coming from?

好的。第四季的改善主要來自於混合改善嗎？還是這是供應商談判的事情？您認為哪些類型的儲存桶能夠帶來改進？

No, I would say it's operationally.

不，我想說它在操作上是這樣的。

Operations. Okay. Got it. And then just I was curious on Asia. You mentioned sort of one of the reasons for the underperformance relative to production is kind of lower exposure to the China domestic OEMs. I guess that would suggest that it's going to take time to sort of close the gap on outperforming China productions. Maybe can you speak to that? And just sort of how long it may take before you're consistently outperforming production in China over time?

營運.好的。知道了。然後我就對亞洲產生了好奇。您提到，生產表現不佳的原因之一是中國國內原始設備製造商的曝光度較低。我想這意味著要縮小與中國製作之間的差距還需要一些時間。您能談談這個嗎？那麼，你們需要多久才能持續超越中國的生產水準？

Yeah. I would say if you look at our revenue what we've been winning, we say by next year, we're at that 60/40 customer split. So 60% global 40% domestic. So that starts improving actually for us next year, Matt. The Chinese OEMs, their development cycles are much faster.

是的。我想說，如果你看看我們的收入，就會知道我們贏得了什麼，到明年，我們的客戶比例將達到 60/40。因此 60% 為全球份額，40% 為國內份額。因此，對我們來說，明年情況實際上會開始改善，馬特。中國原始設備製造商的開發週期要快得多。

So when we win programs, we can often add revenue anywhere from 6 to 18 months. So as I said in my comments, for the first half of the year, the team has done a phenomenal job. 70% of the wins in China have been with Chinese domestic OEMs. So if you project that out, we're quickly shifting toward what I would say is the mix in the market there. So our plan is to represent the market there sometime in the next 18 to 24 months.

因此，當我們贏得專案時，我們通常可以在 6 到 18 個月內增加收入。正如我在評論中所說，今年上半年，團隊做得非常出色。在中國，70% 的勝利都來自中國本土的原始設備製造商。因此，如果你這樣預測的話，我們很快就會轉向我所說的那裡的市場組合。因此，我們的計劃是在未來 18 到 24 個月內代表那裡的市場。

Okay. That's great to hear. Maybe just last quick one. The adjacent market revenue, it's exciting to kind of hear all of the potential adjacent market products that you could be in. Maybe I missed it, maybe you covered it, but just in terms of cycle time for that, I would assume that's much faster than the typical automotive program in terms of sort of when to launch, but could you touch on that really quickly.

好的。聽到這個消息真是太好了。也許只是最後一次。相鄰市場收入，聽到您可能涉及的所有潛在相鄰市場產品令人興奮。也許我錯過了，也許你已經涵蓋了，但就其周期時間而言，我認為就啟動時間而言，它比典型的汽車計劃要快得多，但你能快速談談這一點嗎？

Yeah, I think you're spot on. It's surprisingly much faster. So like I said, we're working on proof of concepts now and these industries and the parts that we're showing them, the components we're showing them because they're already available, their launch times that are two market times, they talk about in terms of less than a year.

是的，我認為你說得很對。令人驚訝的是，它的速度要快得多。所以就像我說的，我們現在正在進行概念驗證，這些行業以及我們向他們展示的部分、組件，因為它們已經可用，它們的發佈時間是兩個市場時間，他們談論的是在不到一年的時間內。

Thank you. This does conclude today's teleconference. We thank you for your participation. You may now disconnect your lines.

謝謝。今天的電話會議到此結束。我們感謝您的參與。現在您可以斷開線路了。