Twin Disc Inc (TWIN) 2025 Q3 法說會逐字稿

Thank you for standing by. My name is Alex, and I will be your conference operator today. At this time, I would like to welcome everyone to the twin this incorporated fiscal 3rd quarter 2025 conference call.

感謝您的支持。我叫亞歷克斯，今天我將擔任您的會議主持人。現在，我歡迎大家參加 2025 財年第三季電話會議。

All signs have been placed on mute to prevent any background noise after the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star, followed by the number one on your telephone keypad. If you would like to withdraw your question, press 1. And press start one again.

所有標誌均已靜音，以防止任何背景噪音。演講者發言後，將有問答環節。如果您想在此期間提問，只需按下電話鍵盤上的星號，然後按下數字 1 即可。如果您想撤回您的問題，請按 1。然後再次按下“開始”按鈕。

Thank you. I would now like to turn the conference over to Mr. Jeff Knutson. You may begin.

謝謝。現在我想將會議交給傑夫·克努森先生。你可以開始了。

Good morning and thank you for joining us today to discuss our fiscal 2025 third quarter results.

早安，感謝您今天加入我們討論我們的 2025 財年第三季業績。

On the call with me today is John Batton, Twin Disc, Inc, CEO.

今天與我一起通話的是 Twin Disc, Inc 的執行長 John Batton。

I would like to remind everyone that certain statements made during this conference call, especially statements expressing hopes, beliefs, expectations, or predictions for the future, are forward-looking statements.

我想提醒大家，本次電話會議中所做的某些陳述，特別是表達希望、信念、期望或對未來的預測的陳述，屬於前瞻性陳述。

It is important to remember that the company's actual results could differ materially from those projected in such forward-looking statements.

重要的是要記住，公司的實際結果可能與此類前瞻性陳述中的預測有重大差異。

Information concerning factors that could cause actual results to differ materially from those in the forward-looking statements are contained in the company's annual report on Form 10K, copies of which may be obtained by contacting either the company or the SEC.

有關可能導致實際結果與前瞻性陳述中的結果大不相同的因素的資訊包含在公司的 10K 表年度報告中，您可以透過聯絡公司或美國證券交易委員會 (SEC) 取得該報告的副本。

Any forward-looking statements that are made during this call are based on assumptions as of today, and the company undertakes no obligation to publicly update or revise these statements to reflect subsequent events or new information.

本次電話會議中所做的任何前瞻性陳述均基於今天的假設，本公司不承擔公開更新或修改這些陳述以反映後續事件或新資訊的義務。

During today's call management we'll also discuss certain non-GAAP financial measures. For a definition of non-gap financial measures and a reconciliation of GAAP to non-gap financial results, please see the earnings release issued earlier today.

在今天的電話會議管理中，我們還將討論某些非公認會計準則財務指標。有關非差距財務指標的定義以及 GAAP 與非差距財務結果的調節，請參閱今天稍早發布的收益報告。

By now you should have received the news release which was issued this morning before the market opened. If you have not received a copy, please call our office at 262-638-4000, and we will send a release to you.

現在您應該已經收到了今天早上市場開盤前發布的新聞稿。如果您尚未收到副本，請致電我們的辦公室 262-638-4000，我們將向您發送新聞稿。

Now I'll turn the call over to John.

現在我將把電話轉給約翰。

Good morning everyone and welcome to our fiscal 2025 third quarter conference call. We appreciate you joining us today.

大家早安，歡迎參加我們的 2025 財年第三季電話會議。感謝您今天加入我們。

We are pleased to report solid results for the quarter, delivering sales of 81.2 million, up approximately 10% over the prior period and achieving strong gross margins, reaching 26.7%. On an organic basis, which excludes the impacts of acquisitions and foreign currency exchange, revenue increased 1.7% on continued strength in the best product offset by softened oil and gas shipments into China.

我們很高興地報告本季的穩健業績，銷售額達到 8,120 萬，比上一季成長約 10%，毛利率也達到了 26.7% 的強勁水平。以有機基礎計算（不包括收購和外匯的影響），收入增長了 1.7%，這得益於最佳產品的持續強勁增長，但中國石油和天然氣運輸量的疲軟抵消了這一增長。

While revenue improved marginally compared to last quarter, we saw significant month over month improvement throughout the third quarter, reflecting strong operational execution and continued healthy market conditions.

雖然營收與上一季相比略有改善，但我們看到第三季營收季比大幅改善，這反映出強勁的營運執行力和持續健康的市場狀況。

Our recent acquisition of cobalt is off to a solid start, despite some initial headwinds related to tariff uncertainties, and we remain committed to fully leveraging synergies from both the COBELT and CASA integrations as we look ahead.

儘管最初存在與關稅不確定性相關的一些阻力，但我們最近對鈷的收購仍取得了良好的開端，展望未來，我們仍致力於充分利用 COBELT 和 CASA 整合帶來的協同效應。

The robust performance in our marine and propulsion business continues, driven by sustained global demand, notably in commercial, marine, and luxury yacht markets. We are encouraged by ongoing stabilization in our industrial business and maintain a healthy backlog entering the 4th quarter.

受全球持續需求（尤其是商用、航海和豪華遊艇市場）的推動，我們的船舶和推進業務持續表現強勁。我們對工業業務的持續穩定感到鼓舞，並在進入第四季度時保持了健康的積壓訂單。

Given that tariffs are top of mind for many and conditions continue to evolve rapidly, I'd like to briefly highlight our company's relative installation from direct impacts on our cost structure.

鑑於關稅是許多人最關心的問題，而且情況還在不斷快速變化，我想簡要介紹我們公司相對安裝情況及其對我們成本結構的直接影響。

As it stands today, we estimate approximately 500,000 of tariff related impacts for the upcoming 4th quarter, representing roughly 1% of our cost of goods sold. This impact primarily results from our sourcing activities in India, the European Union, and Japan with only a negligible contribution from China.

依照目前的情況，我們估計即將到來的第四季關稅相關影響約為 50 萬，約占我們銷售成本的 1%。這種影響主要源自於我們在印度、歐盟和日本的採購活動，而來自中國的貢獻微乎其微。

Despite this modest exposure, we anticipate successfully mitigating much of these incremental costs through strategic pricing actions and targeted surcharges. Additionally, as a part of our ongoing risk management, we consistently evaluate alternative sourcing options to further limit potential exposure.

儘管風險敞口不大，我們預計透過策略定價行動和有針對性的附加費，可以成功降低大部分增量成本。此外，作為我們持續風險管理的一部分，我們不斷評估替代採購選項，以進一步限制潛在風險。

We will continue monitoring developments closely, maintaining flexibility to optimize performance and mitigate any involving risks.

我們將繼續密切關注事態發展，保持靈活性以優化效能並降低任何相關風險。

Turning to our marine propulsion segment, sales increased by 10.7%, largely due to the acquisitions of CASA and COBELT, while demand remained robust as we continue to benefit from consistent strength in our vet product line.

談到我們的船舶推進部門，銷售額成長了 10.7%，這主要歸功於對 CASA 和 COBELT 的收購，而由於我們繼續受益於獸醫產品線的持續強勁成長，需求依然強勁。

We saw notable strength from the commercial marine market in North America, river boat vessels and European luxury yachts, underscoring the global appeal of our propulsion solutions.

我們看到北美商業船舶市場、河船和歐洲豪華遊艇的顯著實力，凸顯了我們的推進解決方案的全球吸引力。

Customers increasingly recognize the unique design advantage of VEST azimuth drives, which offer compact, efficient propulsion solutions that maximize onboard space, which has proven to be a key differentiator driving substantial growth in the pleasure craft market.

客戶越來越認識到 VEST 方位驅動器的獨特設計優勢，它提供緊湊、高效的推進解決方案，可最大限度地利用船上空間，這已被證明是推動遊艇市場大幅增長的關鍵差異化因素。

Turning to government defence spending, we continue to see sustained demand for patrol boat applications driven by persistent geopolitical dynamics.

談到政府國防開支，我們繼續看到受持續的地緣政治動態推動，對巡邏艇應用的需求持續存在。

Given the strong demand, we are supplementing production using our existing Belgium and Texas facilities to support and relieve near term capacity constraints, particularly given prolonged lead times driven by sustained order momentum.

鑑於強勁的需求，我們正在利用現有的比利時和德克薩斯工廠補充生產，以支持和緩解近期的產能限制，特別是考慮到持續的訂單勢頭導致交貨時間延長。

In addition, integration efforts continue to pay dividends, particularly within our European operations, where margins improve substantially. Overall, we remain strategically positioned to capitalize on growing customer interest in electrification and hybrid propulsion systems, furthering our leadership in sustainable marine technologies.

此外，整合工作持續帶來回報，特別是在我們的歐洲業務中，利潤率大幅提高。整體而言，我們仍保持策略定位，利用客戶對電氣化和混合動力推進系統日益增長的興趣，進一步鞏固我們在永續海洋技術領域的領導地位。

In land-based transmission, demand remains strong, driven primarily by the airport and firefighting market. Our specialized pump and roll transmission technology continues to be a compelling differentiator supporting substantial backlog growth as global airport expansions and fleet renewal initiatives advance.

在陸基輸電方面，需求依然強勁，主要受機場和消防市場的推動。隨著全球機場擴建和機隊更新計畫的推進，我們專業的泵浦和滾筒傳動技術繼續成為支持大量積壓訂單成長的引人注目的差異化因素。

In oil and gas, North American new build activity remains muted as customers maintain capital discipline and focus on rebuilding and extending the life of existing equipment. However, our aftermarket business remains resilient, supported by fleet aging and ongoing maintenance needs. In China, volumes have remained stable. However, tariff uncertainties have led to a more measured pace and new build activity even as long-term fundamentals remain strong.

在石油和天然氣領域，由於客戶保持資本紀律並專注於重建和延長現有設備的使用壽命，北美新建活動仍然低迷。然而，在車隊老化和持續維護需求的支持下，我們的售後市場業務仍保持彈性。在中國，銷售量保持穩定。然而，儘管長期基本面依然強勁，但關稅的不確定性已導致建設步伐和新建活動更加謹慎。

Our industrial segment showed stable performance underpinned by positive contributions from CASA and initial contributions from COBELT.

我們的產業部門表現穩定，這得益於 CASA 的積極貢獻和 COBELT 的初步貢獻。

Specialized brake products broaden our industrial portfolio, and we are actively working to enhance their global market penetration by leveraging our international sales and service network as part of our ongoing integration efforts.

專業煞車產品拓寬了我們的工業產品組合，我們正在積極利用我們的國際銷售和服務網絡來提高其全球市場滲透率，這是我們正在進行的整合工作的一部分。

Similarly, CASA continues expanding its reach with innovative solutions benefiting from our global service capabilities. Overall, the industrial markets remain steady with continued engineering-driven demand for specialized higher content solutions across diverse markets.

同樣，CASA 也憑藉著我們全球服務能力，繼續透過創新解決方案擴大其影響力。整體而言，工業市場保持穩定，不同市場對專業化高含量解決方案的需求持續受到工程驅動。

Our backlog strengthened sequentially to approximately $134 million, indicating sustained robust demand across our product lines.

我們的積壓訂單環比增加至約 1.34 億美元，顯示我們整個產品線的需求持續強勁。

Operational improvements, disciplined inventory management, and increased production efficiency drove positive cash flow during the quarter, and we anticipate continued positive free cash flow moving forward.

營運改善、嚴格的庫存管理和生產效率提高推動了本季的正現金流，我們預計未來將繼續保持正自由現金流。

Despite currency headwinds, we remain focused on maintaining operational discipline and delivering inventory efficiencies relative to our backlog.

儘管面臨貨幣逆風，我們仍然專注於維持營運紀律並實現相對於積壓訂單的庫存效率。

In conclusion, we continue executing our long-term strategy of global footprint optimization, operational excellence, and strategic acquisitions. Our recent acquisitions of CASA and COBELT exemplify our commitment to expanding engineering capabilities, enhancing market reach, and driving synergies across our global operations.

總之，我們將繼續執行全球佈局優化、卓越營運和策略收購的長期策略。我們最近對 CASA 和 COBELT 的收購體現了我們致力於擴大工程能力、增強市場覆蓋範圍和推動全球業務協同效應的承諾。

Our flexible global manufacturing strategy positions as well to navigate potential tariff impacts. Enabling strategic adjustments in production locations based on customer demand and geopolitical dynamics. Also, our long-term strategic initiatives and hybrid electric propulsion systems position us well for future market shifts.

我們靈活的全球製造策略也能應對潛在的關稅影響。根據客戶需求和地緣政治動態對生產地點進行策略調整。此外，我們的長期策略舉措和混合電力推進系統使我們為未來的市場變化做好了準備。

Although adoption rates vary across and markets, we're uniquely suited to serve niche applications requiring specialized high-performance solutions, and we're increasingly recognized as a trusted technology partner for operators transitioning to sustainable solutions.

儘管採用率因市場而異，但我們特別適合服務需要專門高效能解決方案的利基應用，並且我們越來越被認可為向永續解決方案過渡的營運商值得信賴的技術合作夥伴。

While supply chain stability remains critical, particularly for specialized components such as motors and batteries, we continue to take a proactive approach focusing on sourcing strategies to ensure reliability for our customers.

雖然供應鏈穩定性仍然至關重要，特別是對於馬達和電池等專用零件，但我們仍將繼續採取積極主動的方式，專注於採購策略，以確保為客戶提供可靠的產品。

Looking forward, our priorities remain clear through discipline, execution, margin enhancement, and proactive market leadership and sustainable propulsion solutions.

展望未來，我們的優先事項依然明確，包括紀律、執行、提高利潤率、積極主動的市場領導和可持續的推進解決方案。

Additionally, we are taking steps to streamline our reporting structures in ways that bring decision making closer to the operating businesses while freeing up the corporate team to focus more intently on growth, strategy, and synergy capture.

此外，我們正在採取措施簡化我們的報告結構，使決策更貼近營運業務，同時讓公司團隊更專注於成長、策略和綜效。

These changes, which are expected to take effect at the start of fiscal 2026, are designed to enhance the accountability, improve execution, and position our organization for long-term success, and we look forward to sharing more details and provide a fuller update during our end of year results call.

這些變化預計將於 2026 財年年初生效，旨在加強問責制、提高執行力並為我們的組織取得長期成功做好準備，我們期待在年底業績電話會議期間分享更多細節並提供更全面的更新。

Overall, we remain confident that our strategic initiatives and strong operational focus will deliver long term sustainable value for our customers, employees, and shareholders. With that, I'll now turn it over to Jeff to discuss our financial performance in greater detail, Jeff.

總體而言，我們仍然相信，我們的策略舉措和強大的營運重點將為我們的客戶、員工和股東帶來長期可持續的價值。有了這些，現在我將把時間交給傑夫，讓他更詳細地討論我們的財務業績，傑夫。

Thanks, John. Good morning, everyone. For the third quarter, we delivered sales of $81.2 million up $7 million or 9.5% from the prior year, primarily driven by contributions from our recent acquisitions and steady demand across most of our global markets.

謝謝，約翰。大家早安。第三季度，我們的銷售額為 8,120 萬美元，比上年增加 700 萬美元，增幅 9.5%，這主要得益於我們最近的收購以及全球大多數市場的穩定需求。

On an organic basis, excluding the impact of acquisitions in foreign currency, revenue increased 1.7%, reflecting sustained momentum in key product segments.

以有機基礎計算，排除外幣收購的影響，營收成長了 1.7%，反映出主要產品領域的持續成長動能。

Net loss attributable to twin for the quarter was 1.5 million or a loss of $0.11 per diluted share compared to net income of 3.8 million or $0.27 per diluted share in the prior year period.

本季 Twin 的淨虧損為 150 萬美元，即每股虧損 0.11 美元，而去年同期的淨收入為 380 萬美元，即每股虧損 0.27 美元。

Earnings per share were impacted by $1.6 million in other expenses, primarily due to currency translation impacts.

每股盈餘受到 160 萬美元其他費用的影響，主要由於貨幣折算的影響。

Gross profit margin improved sequentially to 26.7%, up from 24.1% last quarter, reflecting a favourable comparison due to inventory write down in the previous quarter and enhanced operational efficiencies with an improved product mix.

毛利率環比提高至 26.7%，高於上一季的 24.1%，這反映了由於上一季庫存減記以及產品組合改善帶來的營運效率提高而實現的良好對比。

Gross profit for the quarter totalled $21.7 million. Looking at top line sales distribution, we delivered stable performance across our marine propulsion systems, land-based transmissions, and industrial segments. Geographic sales growth was notable in our European markets, benefiting from a recent acquisition and continued strength in marine related projects.

本季毛利總計2,170萬美元。從營收分佈來看，我們的船舶推進系統、陸基傳動系統和工業領域均表現穩定。由於最近的收購和海洋相關項目的持續強勁增長，我們歐洲市場的地理銷售額增長顯著。

Compared to the prior year quarter, net debt increased to $24.5 million largely reflecting the recent acquisitions of CASA and COBELT. We ended the quarter with a cash balance of $16.2 million maintaining adequate liquidity.

與去年同期相比，淨債務增加至 2,450 萬美元，主要反映了最近對 CASA 和 COBELT 的收購。本季末，我們的現金餘額為 1,620 萬美元，保持了充足的流動性。

Operating cash flow generation was positive, totalling approximately $3.4 million driven by working capital timing related to receivables and the phasing of sales shipped during the quarter, positioning us for a strong fourth quarter.

經營現金流產生為正，總計約 340 萬美元，這得益於與應收帳款相關的營運資本時機以及本季度分階段發貨的銷售，為我們強勁的第四季度奠定了基礎。

He bids up for the 3rd quarter was approximately $4 million. Gross margins remain strong, driven by operational efficiencies and improved product mix. Moving forward, we remain disciplined in our approach to managing inventory, optimizing our cost structure, and maintaining pricing discipline to mitigate potential currency and tariff impacts.

他對第三季的出價約為 400 萬美元。受營運效率和產品組合改善的推動，毛利率仍保持強勁。展望未來，我們將繼續嚴格管理庫存、優化成本結構和維持定價紀律，以減輕潛在的貨幣和關稅影響。

We anticipate continued positive margin trends driven by product mix and ongoing operational improvements. Our capital allocation priorities remain consistent.

我們預計，在產品組合和持續營運改善的推動下，利潤率將繼續呈現正面趨勢。我們的資本配置重點保持一致。

We remain committed to discipline acquisitions that complement our existing expertise, particularly in marine and industrial technologies. Equally important is our ongoing investment in organic growth, including targeted research and development, geographic expansion, and enhanced marketing initiatives, ensuring sustained long-term growth and value creation for shareholders.

我們將繼續致力於學科收購，以補充我們現有的專業知識，特別是在海洋和工業技術領域。同樣重要的是我們對有機成長的持續投資，包括有針對性的研發、地理擴張和加強的行銷舉措，確保持續的長期成長和為股東創造價值。

I'll now turn the call back to John for his closing remarks.

現在我將把電話轉回給約翰，請他作最後發言。

To wrap up, we delivered a solid quarter highlighted by strong gross margins, positive operational momentum, and continued strength across key and markets, notably in marine propulsion systems and industrial segments. Our strategic acquisitions and organic growth initiatives continue to drive our business forward, enhancing our competitive position and global reach.

總而言之，我們本季業績表現穩健，毛利率強勁，營運勢頭良好，在主要市場（尤其是船舶推進系統和工業領域）持續保持強勁勢頭。我們的策略性收購和有機成長計劃繼續推動我們的業務向前發展，增強我們的競爭地位和全球影響力。

Looking ahead, we remain vigilant and proactive in managing potential tariff impacts and global market uncertainties, leveraging our operational flexibility and strong global infrastructure. We are confident in our long-term growth trajectory underpinned by a robust backlog, discipline capital allocation, and ongoing investments in technology and innovation driving sustainable growth for our customers, employees, and stakeholders.

展望未來，我們將繼續保持警惕，積極主動地管理潛在的關稅影響和全球市場不確定性，利用我們的營運靈活性和強大的全球基礎設施。我們對我們的長期成長軌跡充滿信心，這得益於強勁的積壓訂單、嚴格的資本配置以及對技術和創新的持續投資，從而推動我們的客戶、員工和利益相關者的可持續成長。

That concludes our prepared remarks.

我們的準備好的演講到此結束。

Jeff and I will now be happy to answer your questions.

傑夫和我現在很樂意回答您的問題。

Thank you. We will now begin the question-and-answer session.

謝謝。我們現在開始問答環節。

If you have dialled in and would like to ask a question, please press 1 on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press 1 again. If you are called upon to ask your question and are listening by a loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking your question. Again, press one to join the queue.

如果您已撥入並想提問，請按下電話鍵盤上的 1 舉手並加入隊列。如果您想撤回您的問題，只需再次按 1。如果您被要求提問並且正在透過裝置上的揚聲器收聽，請拿起聽筒並確保在提問時您的手機未處於靜音狀態。再按 1 即可加入佇列。

Your first question comes from the line of David MacGregor with Longbow Research. Please go ahead.

您的第一個問題來自 Longbow Research 的 David MacGregor。請繼續。

Yes, good morning, everyone. I apologize in advance for the background noise. I'm in an airport, but I want to start off, just given all the concern that seems to be occurring these days around the macro just talking about order patterns, and you know your order backlog was up.

是的，大家早安。我提前為背景噪音道歉。我在機場，但我想首先，考慮到這些天圍繞著宏觀經濟出現的所有擔憂，只談論訂單模式，你知道你的訂單積壓已經增加了。

Looks like about my math is correct, about 8%, which is pretty much where you were last quarter as well. So, it seems to be fairly stable at those levels. Are we seeing order growth normalizing here in that kind of range or maybe talked about to what extent you're seeing any order cancellations or deferrals?

看起來我的計算是正確的，大約是 8%，這與你上個季度的水平差不多。因此，在這些水平上它似乎相當穩定。我們是否看到訂單成長在這種範圍內正常化，或者也許談論了您在多大程度上看到訂單取消或延期？

I know 3rd quarter is normally an important quarter for Marine, in terms of maintenance work, and that seemed to come through as well, but did you see any evidence of cyclical pressures on, like operators deferring maintenance or anything like that? Just trying to get a feel for what you're seeing in the macro.

我知道第三季度對於 Marine 來說通常是一個重要的季度，就維護工作而言，這似乎也很重要，但是您是否看到任何週期性壓力的證據，例如運營商推遲維護或類似情況？只是想了解你在宏觀上看到的東西。

So, David, it's interesting it's. I would say we haven't really been affected as far as cancellations in marine, a lot of these projects are in the pipeline, ships are being built, transmissions are coming in.

所以，大衛，這很有趣。我想說，就船舶取消而言，我們並沒有受到太大影響，很多項目仍在籌備中，船舶正在建造中，變速器也正在投入使用。

I would say the order rates, if anything, are in the strengthening, trend right now, and we have a lot of, marine orders, whether it's for marine transmissions or the vet asthma thrusters. In the European, in Europe, produced in Europe, so those seem to be very well, in North America, the marine backlog, I would say is only going to be increasing.

我想說的是，訂單率目前正處於加強趨勢，我們有許多海運訂單，無論是船用變速箱還是獸醫氣喘推進器。在歐洲，在歐洲，在歐洲生產，所以這些看起來都很好，在北美，我想說海運積壓只會增加。

And what, what's happened again right now just in the macro level, with all the uncertainty, around, I would say security again, we see trends, increasing for patrol boat and military. Certainly, within Europe, but also within North America.

那麼，現在在宏觀層面上又發生了什麼，由於存在各種不確定性，我想再次說安全問題，我們看到巡邏艇和軍事安全趨勢正在增加。當然，在歐洲是這樣，但在北美也是如此。

The plan right now is going forward is, since 9/11, defense spending has been primarily devoted to land-based type stuff, and also planes and other technology, but the focus has definitely switched into marine and a lot of vessels coming up in our horsepower range. So that trend looks good. Europe looks good, North American work boat looks good. I would say what I would expect to see some softness is and it's a much smaller part of our backlog in business is I, you could see some pleasure crafts, some yachts.

目前的計劃是，自 9/11 以來，國防開支主要用於陸基裝備、飛機和其他技術，但重點肯定已轉向海上和大量馬力範圍內的船隻。所以這個趨勢看起來不錯。歐洲看起來不錯，北美工作船看起來不錯。我想說的是，我預計會看到一些疲軟，而且這只是我們積壓業務中很小的一部分，你可以看到一些遊艇和一些遊艇。

I would say a pause in orders or just some, wait and see because, a lot of yacht there's a lot of American customers buying yachts in Europe and those are going to be tariff 10%.

我想說訂單會暫停或只是觀望，因為很多遊艇，很多美國客戶在歐洲購買遊艇，而這些遊艇的關稅將是 10%。

A lot of yachts are built in Australia and Taiwan and so there'll be some tariff rates there. So, if anything out near term that might have a little bit of delay, it's going to be in the pleasure craft space. In kind of that yacht mega yacht segment, but it's a much smaller component to what we're seeing as far as strengthening in.

許多遊艇是在澳洲和台灣建造的，因此那裡會有一些關稅稅率。因此，如果近期有任何事物可能會稍微延遲，那麼它將是在遊艇領域。在那種遊艇超級遊艇領域，但就我們所看到的加強而言，它的組成部分要小得多。

In work boat in and government defense.

在工作船上和政府防禦。

Right, that's good colour. Thank you for that. Second question just to ask, Jeff had given some colour on the tariff exposure, so I appreciate that. But can you talk about the mitigating circumstances and particularly the initiatives around pricing and we had a May 1 price increase. Are you getting immediate traction on that or is there going to be some risk in fourth quarter margins around just the lag and pricing traction versus the immediate implementation of the of the tariffs?

好的，顏色很好。謝謝你。第二個問題只是想問一下，傑夫已經對關稅風險給了一些說明，所以我很感激。但是您能否談談減輕處罰的情況，特別是有關定價的舉措，我們在 5 月 1 日提高了價格。您是否會立即採取相關措施，或者與立即實施關稅相比，第四季度的利潤率是否會因滯後和定價牽引而面臨一定風險？

Yeah, I think we're, pretty proactive on this one, David. I think, we went out, with the price release our price increase with some anticipation of what was happening we're doing a lot of work around.

是的，我認為我們在這件事上非常積極主動，大衛。我認為，我們在發布價格時就已經提高了價格，並且對即將發生的事情有所預期，我們正在為此做很多工作。

Where we're sourcing from what the tariff impact would be, what products that goes into, so yeah, there could be some fallout certainly there's some, market dynamics that might have some impact but I don't think there will be a significant impact margins in Q4, we're also looking at sourcing strategies and, making sure we're getting it from the right place so it's not all price, we're looking at all the levers there to make sure we're Doing the best we can on the cost side, but I don't expect a big impact on Q4 margins.

我們的採購地點、關稅的影響、涉及的產品，當然可能會產生一些影響，市場動態也可能會有一些影響，但我不認為第四季度的利潤率會有顯著影響，我們也在研究採購策略，確保我們從正確的地方採購，所以不是所有的價格，我們正在研究所有的槓桿，以確保我們在成本方面盡最大努力，但我預計不會對第四季度的利潤率產生很大的影響。

Okay, good to hear. And then I wanted to ask you about COBELT. Maybe just, it's early, you've just completed that acquisition, but you know what are your thoughts so far in terms of your ability to sort of replicate the that playbook here by, scaling globally by leveraging your system and maybe any ongoing observations around CASA as well.

好的，很高興聽到這個消息。然後我想問您關於 COBELT 的問題。也許只是，現在還為時過早，您剛完成收購，但您知道到目前為止，您對利用您的系統在全球範圍內複製該劇本的能力有何想法，也許還有對 CASA 的任何持續觀察。

So, it's interesting, it's a great question. We're all here in Milwaukee for our global business plan meeting, so it's the first time that we've gotten, the leader of cobalt, the leaders of CASA in with, in the cycle of doing the business plan. I, I've been incredibly happy with the opportunities that we see to do the same thing that we've done with that, with both companies.

所以，這很有趣，這是一個很好的問題。我們都在密爾瓦基參加全球商業計劃會議，所以這是我們第一次讓鈷的領導者、CASA 的領導者參與商業計劃的流程。我非常高興看到我們有機會與這兩家公司做同樣的事情。

They have CASA, when we acquired Totsa last year, they were very much OEM direct, and primarily Northern European customers, primarily Scandinavia, very successful in that model of engineer to engineer from Katza to, the engineering centre, but didn't really have a global support that, dealer network, distribution network.

他們有 CASA，當我們去年收購 Totsa 時，他們主要是 OEM 直銷，主要面向北歐客戶，主要是斯堪的納維亞半島，在從 Katza 到工程中心的工程師對工程師模式下非常成功，但實際上並沒有全球支持、經銷商網絡和分銷網絡。

We've, they have come up with some, market designs, markets, an industrial hydraulic clutch, which we're releasing later this year. The other products that are going to be coming out that are, a marine transmission line that is basically not designed specifically for an OEM but for the broader market, fantastic designs have been very well received by, initial sampling in the market.

他們已經提出了一些市場設計、市場、工業液壓離合器，我們將於今年稍後發布。即將推出的其他產品包括船用傳輸線，該產品基本上不是專門為 OEM 設計的，而是針對更廣泛的市場而設計的，其出色的設計在市場上的初始樣品中受到了熱烈歡迎。

COBELT comes with us with a global dealer network, but it's, I would say very uneven. We would recognize some of the dealers are a lot like a twin dis distributor, where they have a lot of people who turn wrenches and support them, support the market on the ground.

COBELT 與我們一起建立了全球經銷商網絡，但我認為這個網絡非常不平衡。我們會意識到一些經銷商很像雙重分銷商，他們有很多人為他們提供支持，支持當地的市場。

Some of them aren't. So, I think there's a lot of work to do, and it's going to be a full-time job for someone here very quickly, to sort that out and how we bring these two networks together. I would say the biggest opportunity right now in front of us is are the cobalt brakes that are used in, they started off as just a shaft brake in marine applications to secure a propeller shaft, but they are in oil and gas, they're in paper, they're in steel. They're in winds, they're in an in marine applications on ships other than shaft breaks. So, we've just scratched the surface there.

有些則不然。所以，我認為有很多工作要做，而且很快就會有人全職負責解決這個問題以及如何將這兩個網路整合在一起。我想說，現在擺在我們面前的最大機會是鈷制動器的使用，它們最初只是作為船舶應用中的軸制動器來固定螺旋槳軸，但它們卻應用於石油和天然氣、紙張和鋼鐵領域。它們存在於風中，存在於船舶的海上應用中，而不是軸斷裂處。因此，我們只是觸及了表面。

So, I think there's, unfortunately with that, COVID got in the way for a lot of the attraction of growth and synergy, so it was delayed through that, but I think you'll see a lot quicker expansion of revenue for COTSA and COBELT, given that we don't have a global pandemic.

因此，我認為不幸的是，COVID 阻礙了許多增長和協同效應的吸引力，因此它被推遲了，但我認為，鑑於我們沒有全球大流行，你會看到 COTSA 和 COBELT 的收入增長更快。

That's not, but we have a global tariff issue right now, but I don't see much of an impact on slowing that down. Again, right now what we see in front of us, a lot of costs. Growth potential is within the EU, so no tariff impact there. But there's things that we can do with COBELT, to go across borders if we have to, if tariffs become an issue.

事實並非如此，但我們目前面臨全球關稅問題，但我認為減緩這個問題不會產生太大影響。再說一次，我們現在看到的是很多成本。成長潛力在歐盟內部，因此不會受到關稅影響。但如果關稅成為問題，必要時我們可以利用 COBELT 跨越邊境。

Right, it's great colour. Thanks. And the last question for me, I just want to go back to a comment that Jeff made with regard to the gross margins, and he talked about enhanced operational efficiencies. I know you've got a lot going on in that, bucket, but maybe you could just talk about some of the bigger, games that you were able to achieve just for the, enhanced operational efficacies.

對，顏色很棒。謝謝。對我來說最後一個問題是，我只想回到傑夫關於毛利率的評論，他談到了提高營運效率。我知道你在這方面有很多事情要做，但也許你可以談談一些你為了提高營運效率而能夠實現的更大的遊戲。

Yeah So I think there's a big focus on some of our high volume or higher volume products in particular, the transmission that goes into their application, the airport rescue firefighting vehicles.

是的，所以我認為我們特別關註一些大批量或高產量的產品，特別是應用於機場救援消防車的變速箱。

A lot of work's been done there both in the factory, high events to drive an efficient assembly process, to drive better quality, and then on the sourcing side to really look at Globally, where, where's the best solution, total landed cost including quality aspects, and then from a design perspective, having engineering, review the drawings, review the design of that product to make sure that we can continue to drive improved profitability in that particular.

我們在工廠裡做了很多工作，舉辦大型活動來推動高效的裝配流程，提高質量，然後在採購方面真正從全球角度看待問題，哪裡是最佳解決方案，總到岸成本包括質量方面，然後從設計角度來看，讓工程部門審查圖紙，審查該產品的設計，以確保我們能夠繼續提高該特定領域的盈利能力。

In that particular product because it is something that we have high demand for, and it goes out a couple of years at this point, so a real good opportunity for us to move the needle on.

對於該特定產品，由於我們對其有很高的需求，而且目前該產品的上市時間是幾年，因此這對我們來說是一個推動其發展的真正好機會。

Margins. Yeah, David, I would also add that, you never have steady state for all products at all facilities and right now we're seeing, some product lines in different facilities where we're bursting at the seams and we've done a lot of analysis on what it would take to move production around so we have what where it makes sense to move product out of one facility into another, what's required, what CapEx is needed, and it's mostly test stands and assembly fixtures.

邊距。是的，大衛，我還要補充一點，所有設施的所有產品永遠無法保持穩定狀態，現在我們看到，不同設施中的一些產品線已經不堪重負，我們對轉移生產需要做了很多分析，因此我們知道將產品從一個設施轉移到另一個設施是否合理，需要什麼，需要哪些資本支出，主要是測試台和裝配夾具。

I say we were ready to pull the trigger, but right now we continue with the planning and doing the studying and one of the variables on the spreadsheet is, what's the tariff impact. Going to be if we if we make these moves so I think we'll probably, just pause and just wait and see where you know the 90 day windows coming up this summer, see where it is but I think after that once we have a clear answer on.

我說我們已經準備好採取行動了，但現在我們繼續規劃和研究，電子表格上的一個變數是關稅的影響是什麼。如果我們採取這些行動，那麼我認為我們可能會暫停一下，等待，看看今年夏天即將到來的 90 天窗口期在哪裡，但我認為在那之後，我們會有一個明確的答案。

Where tariffs are going to be for, a few years, I don't, another 90 days, but hopefully something stable, we can start to make these moves and relieve some facilities that are bursting at the seams, and get them into some of our other facilities where we have, skilled labour that that can help right away. And I, we, so we don't have to add bricks and mortar or additional shifts at certain facilities.

關稅將持續幾年，我不知道，還有 90 天，但希望是穩定的，我們可以開始採取這些措施，緩解一些設施的擁擠，並將它們轉移到我們其他一些擁有熟練勞動力的設施中，這些勞動力可以立即提供幫助。因此，我們不必在某些設施中增加磚瓦或增加班次。

Yeah, got it. Makes sense. Congratulations on all the progress.

是的，明白了。有道理。祝賀你取得的所有進展。

Thank you.

謝謝。

All right. Thanks, David.

好的。謝謝，大衛。

Again, if you would like to ask a question, press start then the number one on your telephone keypad.

再次強調，如果您想提問，請按電話鍵盤上的“開始”，然後按數字 1。

There are no questions asked. That concludes our Q&A session. I will now turn the conference back over to John Button for closing remarks.

沒有提出任何問題。我們的問答環節到此結束。現在我將會議交還給約翰·巴頓，請他致閉幕詞。

Thank you, Alex, and thank all of you for joining us for our fiscal 20,253 quarter conference call and your continued interest in twin desk. If you have any further questions, please contact either Jeff or myself, and we look forward to speaking with you at our fiscal 2025 4th quarter and end of your call in August.

謝謝你，亞歷克斯，也謝謝大家參加我們的 2025 財年季度電話會議，也感謝大家對 Twin Desk 的持續關注。如果您還有其他問題，請聯絡 Jeff 或我本人，我們期待在 2025 財年第四季和 8 月電話會議結束時與您交談。

Thank you, everyone.

謝謝大家。

This concludes today's conference call. You may now disconnect.

今天的電話會議到此結束。您現在可以斷開連線。