UL Solutions Inc (ULS) 2025 Q1 法說會逐字稿

Good day, and welcome to the UL Solutions first-quarter 2025 earnings conference call. (Operator Instructions) Please note this event is being recorded.

大家好，歡迎參加 UL Solutions 2025 年第一季財報電話會議。（操作員指示）請注意，此事件正在被記錄。

I would now like to turn the call over to your host, Mr. Mitchell Ji, Senior Vice President of Corporate Finance at UL Solutions. Thank you. You may now begin.

現在我想將電話轉給主持人，UL Solutions 公司財務資深副總裁 Mitchell Ji 先生。謝謝。現在你可以開始了。

Thank you, and welcome, everyone, to our first quarter 2025 earnings call. Joining me today are Jenny Scanlon, our Chief Executive Officer; and Ryan Robinson, our Chief Financial Officer. During our discussion today, we will be referring to our earnings presentation, which is available on the Investor Relations section of our website at ul.com. Our earnings release is also available on the website.

謝謝大家，歡迎大家參加我們 2025 年第一季財報電話會議。今天與我一起出席的還有我們的執行長珍妮·斯坎隆 (Jenny Scanlon)；以及我們的財務長 Ryan Robinson。在今天的討論中，我們將參考我們的收益報告，該報告可在我們網站 ul.com 的投資者關係部分找到。我們的收益報告也可在網站上查閱。

I would like to remind everyone that on today's call, we may discuss forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements may include, among other things, statements about UL Solutions results of operations and estimates and prospects that involve substantial risks, uncertainties and other factors that could cause actual results to differ in a material way from those expressed or implied in the forward-looking statements.

我想提醒大家，在今天的電話會議上，我們可能會討論 1995 年《私人證券訴訟改革法案》安全港條款含義內的前瞻性陳述。這些前瞻性陳述可能包括但不限於有關 UL Solutions 經營績效和估計及前景的陳述，其中涉及重大風險、不確定性和其他因素，可能導致實際結果與前瞻性陳述中明示或暗示的結果有重大差異。

Please see the disclosure statement on slide 2 of the earnings presentation as well as the disclaimers in our earnings release concerning forward-looking statements and the risk factors that are described in our annual report on Form 10-K for the year ended December 31, 2024.

請參閱收益報告第 2 張投影片上的揭露聲明，以及我們收益報告中有關前瞻性陳述和截至 2024 年 12 月 31 日年度報告中 10-K 表所述風險因素的免責聲明。

We assume no obligation to update any forward-looking statements to reflect events or circumstances after the date hereof, except as required by law. Today's presentation also includes references to non-GAAP financial measures. A reconciliation to the most comparable GAAP financial measure can be found in the appendix to the earnings presentation.

除非法律要求，我們不承擔更新任何前瞻性陳述以反映本文日期之後的事件或情況的義務。今天的演示也提到了非公認會計準則財務指標。在收益報告附錄中可以找到與最具可比性的 GAAP 財務指標的對帳。

With that, I would now like to turn the call over to Jenny.

說完這些，我現在想把電話轉給珍妮。

Good morning, everyone, and thanks for joining us. Last month, we celebrated the 1-year anniversary of our successful initial public offering, which launched the next chapter of our story that is already more than 130 years in the meeting. In fact, this very week in 1893, our founder, William Henry Merrill Jr, first visited the Chicago World spare to inspect exhibits for electrical fire risks. This experience led him to launch the underwriters Electrical Bureau.

大家早安，感謝大家的參與。上個月，我們慶祝了公司成功首次公開募股一周年，這開啟了我們 130 多年歷史的新篇章。事實上，1893 年的這一周，我們的創辦人小威廉·亨利·梅里爾 (William Henry Merrill Jr) 首次參觀了芝加哥世界展覽中心，檢查展品是否有電氣火災風險。這段經歷促使他創辦了電氣局保險商。

Over the course of that 130-plus years, we've grown to be a global safety science leader with established customer relationships, recurring revenue global scale, a healthy balance sheet and a track record of strategic capital allocation aligned with major growth trends.

在過去的 130 多年裡，我們已成長為全球安全科學領域的領導者，擁有穩固的客戶關係、全球規模的經常性收入、健康的資產負債表以及與主要成長趨勢保持一致的策略資本配置記錄。

Our company has endured and prospered. I'm pleased to say that our strong performance in 2024 extended into the first quarter of 2025 with balanced strength across all segments, service offerings and geographic regions -- we're focused on, global energy transition, the electrification of everything and digitalization continue to drive robust demand for our industry-leading services. I'll cover three areas before turning the call over to Ryan. Our first quarter performance highlights, notable achievements and activities since we last reported, and finally, some perspective on tariffs.

我們的公司經受住了考驗並且蓬勃發展。我很高興地說，我們在 2024 年的強勁表現延續到了 2025 年第一季度，所有部門、服務產品和地理區域都保持均衡的實力——我們專注於全球能源轉型、一切電氣化和數位化，繼續推動對我們行業領先服務的強勁需求。在將電話轉給瑞安之前，我將討論三個方面。我們第一季的業績亮點、自上次報告以來的顯著成就和活動，以及最後對關稅的一些看法。

Our strong first quarter performance stems from healthy market demand and focused execution across our global organization. I'm deeply grateful to our employees whose dedication is fundamental to our success. Their unwavering commitment to our mission of safety, scientific excellence and customer-centric service defines our culture and propels our business.

我們第一季的強勁業績源自於健康的市場需求和我們全球組織的專注執行。我深深感謝我們的員工，他們的奉獻精神是我們成功的基礎。他們對我們的安全、科學卓越和以客戶為中心的服務使命的堅定承諾定義了我們的文化並推動了我們的業務。

Ryan will dive into the numbers in a minute, so let me hit the high notes of our first quarter 2025 results. We delivered consolidated revenues that were up 5.2% versus the first quarter last year, which is up 7.6% on an organic basis. Our Industrial segment continued to lead the way, up 8.1% organically, followed closely by consumer at 7.7% and software and advisory at 5.6%.

Ryan 馬上就會深入探討這些數字，所以讓我來概括一下我們 2025 年第一季的表現。我們的綜合收入比去年第一季成長了 5.2%，有機成長了 7.6%。我們的工業部門繼續領先，有機成長 8.1%，緊隨其後的是消費品部門（7.7%）和軟體和諮詢部門（5.6%）。

Our results reflect the growth across all geographic regions. These balanced results highlight the diversity and strength of our business model, a differentiator, particularly in uncertain times. Profitability improved year-over-year with adjusted EBITDA growing 22.9% and adjusted EBITDA margin expanding by 320 basis points, reflecting higher revenue, realized operating leverage and disciplined expense management. We generated over $100 million of free cash flow, and our balance sheet remains strong.

我們的業績反映了所有地理區域的成長。這些均衡的結果凸顯了我們商業模式的多樣性和實力，尤其是在不確定的時期，這是一種差異化因素。獲利能力較去年增加，調整後 EBITDA 成長 22.9%，調整後 EBITDA 利潤率擴大 320 個基點，反映了更高的收入、實現的經營槓桿和嚴格的費用管理。我們產生了超過 1 億美元的自由現金流，我們的資產負債表仍然強勁。

Next, let me highlight planned notable capacity expansions that address growth opportunities and mega trends in our key end markets. In January, we announced that we're expanding our HVAC testing facilities in Plano, Texas and Carugate, Italy to address the surging demand for more sustainable HVAC systems, such as heat pumps, and environmentally friendly refrigerants.

接下來，讓我重點介紹一下計劃中的顯著產能擴張，以應對我們主要終端市場的成長機會和大趨勢。今年 1 月，我們宣布將擴建位於德州普萊諾和義大利卡魯加泰的 HVAC 測試設施，以滿足對更永續的 HVAC 系統（如熱泵和環保冷媒）日益增長的需求。

The Plano facility expansion will include commercial HVAC performance testing and will fortify our capacity for safety evaluations of low global warming potential refrigerant capability. The Carugate facility will provide comprehensive performance testing for European residential and light commercial heat pump manufacturers.

普萊諾工廠的擴建將包括商用暖通空調性能測試，並將加強我們對低全球暖化潛力冷媒能力的安全評估能力。Carugate 工廠將為歐洲住宅和輕型商用熱泵製造商提供全面的性能測試。

Collectively, these expansions will enable us to offer more integrated solutions for manufacturers abating evolving global regulations and thereby streamlining testing processes and reducing time to market. We announced in February that we're developing a new global fire science center of excellence at our 110-acre Northbrook, Illinois campus.

總的來說，這些擴展將使我們能夠為製造商提供更整合的解決方案，以緩解不斷變化的全球法規，從而簡化測試流程並縮短產品上市時間。我們在二月宣布，我們將在佔地 110 英畝的伊利諾伊州諾斯布魯克園區建立一個新的全球消防科學卓越中心。

This center of excellence will enhance our market-leading position in the fire safety, security and building and construction markets. We'll be constructing new capabilities while also modernizing existing fire science laboratories, providing enhanced research and testing services for commercial and residential fire safety systems, and this includes sprinklers, pipes, firefighting equipment and exterior walls.

這個卓越中心將增強我們在消防安全、保全和建築市場的領先地位。我們將建構新的能力，同時對現有的消防科學實驗室進行現代化改造，為商業和住宅消防安全系統提供增強的研究和測試服務，其中包括灑水裝置、管道、消防設備和外牆。

The center will also feature a dedicated R&D hub for applied research and science-based guidance, which is designed to help customers mine risks associated with new product development and accelerate their innovation time lines. In March, we announced plans to develop new advanced automotive electromagnetic compatibility laboratory in Toyota City, Japan.

該中心還將設有專門的研發中心，用於應用研究和基於科學的指導，旨在幫助客戶挖掘與新產品開發相關的風險並加快他們的創新時間表。三月份，我們宣布了在日本豐田市建立新的先進汽車電磁相容性實驗室的計畫。

The 25,000 square foot facility will be one of the few EMC laboratories in Japan, equipped to conduct high-voltage, high-current and high-torque testing. This strategic investment addresses the growing EMC automotive testing market, which is projected to reach $2.7 billion by 2030.

該設施佔地 25,000 平方英尺，將成為日本為數不多的 EMC 實驗室之一，配備進行高壓、大電流和高扭矩測試的設備。這項策略性投資針對的是不斷成長的 EMC 汽車測試市場，預計到 2030 年該市場規模將達到 27 億美元。

It also strengthens our support for Japan's automotive industry, while complementing our existing global network of automotive EMC testing laboratories. Finally, let me provide some perspective on the potential impact of tariffs on our business. We are a global leader of critical product safety science offerings, and this means we go where our customers go, to the locations around the world where products are researched and developed and where they are manufactured.

它還加強了我們對日本汽車產業的支持，同時補充了我們現有的全球汽車 EMC 測試實驗室網路。最後，讓我就關稅對我們業務的潛在影響提供一些看法。我們是關鍵產品安全科學產​​品的全球領導者，這意味著我們會跟隨客戶到世界各地，到產品研發和製造的地方。

In each case, we are well positioned to support our customers' needs with our existing global footprint and capacity. Now you will recall that we provide initial testing for a product or a component as part of the new product development process.

在每種情況下，我們都可以利用現有的全球影響力和產能來滿足客戶的需求。現在您會記得，作為新產品開發流程的一部分，我們為產品或組件提供初步測試。

And then we are frequently engaged in ongoing certification for as long as that product or component is in the market. This isn't the first time our customers have faced tariffs. And from time to time, our customers make both R&D and manufacturing decisions to address country-specific risks and other considerations. Tariffs or the threat of them may cause customers to redesign their products and/or move product manufacturing to more favorable. Should a product design or manufacturing location change, there is often a need for the product to be recertified, which can result in incremental new business for us.

只要產品或組件在市場上，我們就會經常進行持續的認證。這不是我們的客戶第一次面臨關稅。有時，我們的客戶會做出研發和製造決策，以解決特定國家的風險和其他考慮因素。關稅或關稅威脅可能會導致客戶重新設計其產品和/或將產品製造轉向更有利的方向。如果產品設計或製造地點發生變化，通常需要對產品進行重新認證，這可以為我們帶來新的業務。

Of course, global macroeconomic concerns could change the overall pace of new product demand, innovation and introduction. Thus far, the pace of new product development has generally proven to be resilient. Additionally, products are becoming more technologically advanced, which adds complexity and can increase testing requirements.

當然，全球宏觀經濟問題可能會改變新產品需求、創新和引進的整體步伐。到目前為止，新產品開發的步伐總體上表現出了韌性。此外，產品技術越來越先進，這增加了複雜性並可能增加測試要求。

We believe we continue to be well positioned to support customers in navigating times of uncertainty like we are seeing today. Our global and strategic accounts team is staying in close contact with our customers to understand potential impacts and plans. Our customers trust us, and history has shown our global business to be resilient throughout dynamic economic periods.

我們相信，我們將繼續處於有利地位，幫助客戶度過像今天這樣的不確定時期。我們的全球和策略客戶團隊與客戶保持密切聯繫，以了解潛在的影響和計劃。我們的客戶信任我們，歷史也證明我們的全球業務在經濟動盪時期具有韌性。

The increasingly uncertain and complex near-term macroeconomic and geopolitical environment presents both potential risks and opportunities for UL Solutions. Like many other global businesses, we are carefully monitoring our key performance indicators and the potential impacts. Based on what we know today, including our strong performance in the first quarter, we are reaffirming our full year 2025 outlook.

日益不確定和複雜的近期宏觀經濟和地緣政治環境為 UL Solutions 帶來了潛在的風險和機會。與許多其他全球企業一樣，我們正在仔細監控我們的關鍵績效指標及其潛在影響。根據我們今天所了解的情況，包括我們在第一季的強勁表現，我們重申我們對 2025 年全年的展望。

Now I'll turn the call over to Ryan for a detailed review of our first quarter results.

現在我將把電話轉給瑞安，讓他詳細回顧我們的第一季業績。

Thank you, Jenny, and hello, everyone. I want to thank all of our team members for delivering another strong quarter, representing a solid start to 2025. We're proud to report in our first quarter on a consolidated basis a continuation of strong growth, margin expansion and solid cash generation. As Jenny mentioned, it's encouraging to see that revenue growth once again occurred across all of our segments and all our geographies. Now let me dive into the details of the quarter.

謝謝你，珍妮，大家好。我要感謝我們團隊的所有成員，他們又創造了一個強勁的季度，為 2025 年開了個好頭。我們很自豪地報告，第一季我們的合併業績繼續保持強勁成長、利潤率擴大和穩健的現金產生。正如珍妮所提到的，看到我們所有部門和所有地區的收入再次成長，我們感到鼓舞。現在讓我深入了解本季的細節。

Consolidated revenue of $705 million was up 5.2% over the prior year quarter, including organic revenue growth of 7.6%. The increase was well balanced across our 3 segments, partially offset by FX headwinds and acquisition divestiture impact.

綜合營收 7.05 億美元，較去年同期成長 5.2%，其中有機收入成長 7.6%。我們三個部門的成長非常均衡，但外匯逆風和收購剝離的影響部分抵消了這一成長。

Cost of revenue for the quarter increased by 3.7% as compared to the prior year period due to increased depreciation and amortization and services and materials as well as employee compensation. SG&A expenses as a percentage of revenue decreased 110 basis points from 34% in the year ago quarter to 32.9% in Q1 of 2025. This was primarily driven by lower services and materials and prudent headcount management.

由於折舊和攤提、服務和材料以及員工薪酬增加，本季收入成本與去年同期相比增加了 3.7%。銷售、一般及行政費用佔收入的百分比從去年同期的 34% 下降了 110 個基點至 2025 年第一季的 32.9%。這主要是由於服務和材料成本下降以及審慎的員工管理。

I would point out that both our cost of revenue and our SG&A benefited from changes in FX roughly offsetting the negative impact on revenues. Adjusted EBITDA for the quarter was $161 million, an improvement of 22.9% year-over-year.

我想指出的是，我們的收入成本和銷售、一般及行政費用都受惠於外匯變化，大致抵銷了對收入的負面影響。本季調整後 EBITDA 為 1.61 億美元，年增 22.9%。

Adjusted EBITDA margin was 22.8%, up 320 basis points from the same period a year ago on strength across all THREE of our segments. Adjusted net income for the first quarter was $80 million, up 31.1% from $61 million in the first quarter of 2024. Adjusted diluted earnings per share was $0.37, up from $0.28 per share in the first quarter of 2024.

調整後的 EBITDA 利潤率為 22.8%，比去年同期成長 320 個基點，這得益於我們三個部門的強勁表現。第一季調整後淨收入為 8,000 萬美元，較 2024 年第一季的 6,100 萬美元成長 31.1%。調整後每股攤薄收益為 0.37 美元，高於 2024 年第一季的每股 0.28 美元。

Now let me turn to our performance by segment, starting with Industrial. Revenues in industrial rose 4.4% to $308 million or 8.1% on an organic basis as compared to the first quarter of 2024. Those impressive gains were driven by growth in ongoing certification services and certification testing led by energy and automation and materials.

現在讓我來談談我們各部門的業績，先從工業部門開始。與 2024 年第一季相比，工業收入成長 4.4% 至 3.08 億美元，有機成長 8.1%。這些令人印象深刻的成長是由能源、自動化和材料主導的持續認證服務和認證測試的成長所推動的。

Increased lab capacity, including our new North American advanced battery lab in Auburn Hills, Michigan also contributed to the growth. Revenue was also impacted by FX and the divestiture of our Payments testing business. Adjusted EBITDA for the Industrial segment increased 16.3% to $100 million in the quarter, while adjusted EBITDA margin improved 330 basis points to 32.5%. The Industrial segment showed good operating leverage and the majority of incremental revenue flowed to incremental operating income.

實驗室能力的提高，包括我們位於密西根州奧本山的新的北美先進電池實驗室，也促進了成長。收入也受到外匯和支付測試業務剝離的影響。本季工業部門的調整後 EBITDA 成長 16.3% 至 1 億美元，調整後 EBITDA 利潤率提高 330 個基點至 32.5%。工業部門表現出良好的經營槓桿，大部分增量收入流向增量營業收入。

Now turning to the consumer segment. Revenues in Consumer were $304 million, up 6.3% from the first quarter of 2024 or 7.7% on an organic basis. The improvement was driven by demand across all of our service offerings. We saw particularly strong demand across consumer technology and retail products. It is possible that consumer organic revenue growth benefited from increased customer activity in anticipation of tariffs.

現在轉向消費者領域。消費者業務收入為 3.04 億美元，較 2024 年第一季成長 6.3%，有機成長 7.7%。這項改進是由我們所有服務產品的需求所推動的。我們發現消費科技和零售產品的需求尤其強勁。消費者有機收入的成長可能得益於關稅預期下客戶活動的增加。

We expect some moderation of consumer organic revenue growth in Q2. Adjusted EBITDA for the quarter in Consumer was $48 million, an increase of 37.1% versus the first quarter of last year. Adjusted EBITDA margin for the quarter was 15.8%, an increase of 360 basis points year-over-year. Solid organic growth and improved operational efficiency were the main drivers of the year-over-year improvement.

我們預計第二季消費者有機收入成長將放緩。消費品部門本季調整後 EBITDA 為 4,800 萬美元，較去年第一季成長 37.1%。本季調整後的 EBITDA 利潤率為 15.8%，較去年同期成長 360 個基點。穩健的有機成長和提高的營運效率是年成長的主要驅動力。

Our third segment is Software and Advisory. Revenues for that segment were $93 million, an increase of 4.5% year-over-year on a total basis and 5.6% on an organic basis. Our software service line within Software and Advisory grew 9.3% on an organic basis. The improvement was driven by strong demand for our Ultra software portfolio, including retail product compliance and sustainability software solutions.

我們的第三部分是軟體和諮詢。該部門的收入為 9,300 萬美元，整體年增 4.5%，有機增長 5.6%。我們的軟體和諮詢業務中的軟體服務線有機成長了 9.3%。這一成長得益於市場對我們的 Ultra 軟體產品組合（包括零售產品合規性和永續性軟體解決方案）的強勁需求。

Adjusted EBITDA for the quarter in Software and Advisory was $13 million, a 30% increase as compared to the first quarter of last year. Adjusted EBITDA margin for the quarter was 14%, up 280 basis points from the first quarter of 2024, driven by higher revenues and improved operating leverage. Turning to our cash generation. For the first quarter of 2025, we generated $154 million of cash from operating activities, up from $141 million in the prior year period.

本季軟體和顧問業務的調整後 EBITDA 為 1,300 萬美元，與去年第一季相比成長 30%。本季調整後的 EBITDA 利潤率為 14%，較 2024 年第一季上升 280 個基點，這得益於收入增加和經營槓桿提高。轉向我們的現金產生。2025 年第一季度，我們從經營活動中獲得的現金為 1.54 億美元，高於去年同期的 1.41 億美元。

Capital expenditures for the quarter were $51 million compared to $57 million in the prior year period. Free cash flow for the first quarter was $103 million, up from $84 million in the prior year period, and we paid $26 million in dividends in the quarter. We also used some of the free cash flow as well as utilizing our global cash balance to pay down a net of $90 million of debt.

本季資本支出為 5,100 萬美元，去年同期為 5,700 萬美元。第一季的自由現金流為 1.03 億美元，高於去年同期的 8,400 萬美元，我們在本季支付了 2,600 萬美元的股息。我們也利用部分自由現金流以及全球現金餘額償還了 9,000 萬美元的淨債務。

At March 31, we had $267 million of cash and cash equivalents. The strength of our balance sheet is reflected in our investment-grade credit ratings. Our robust balance sheet and cash flow generation give us great flexibility to invest in organic initiatives and accretive acquisitions that are intended to help produce best-in-class shareholder returns.

截至 3 月 31 日，我們擁有 2.67 億美元的現金和現金等價物。我們的資產負債表的強勁表現體現在我們的投資等級信用評級。我們強勁的資產負債表和現金流產生能力使我們能夠靈活地投資於有機計劃和增值收購，以幫助實現一流的股東回報。

As Jenny said, we are investing in key capacity additions intended to better align the business with the mega trends driving demand for our services. Now turning to our 2025 full year outlook. The increasingly uncertain near-term macroeconomic and geopolitical environment presents both potential risks and opportunities for UL Solutions.

正如珍妮所說，我們正在投資增加關鍵產能，旨在使業務更好地與推動我們服務需求的大趨勢保持一致。現在來談談我們對 2025 年全年的展望。近期宏觀經濟和地緣政治環境的不確定性日益增加，為 UL Solutions 帶來了潛在的風險和機會。

As Jenny mentioned, we are carefully monitoring the potential impacts weighing these factors along with our first quarter results and visibility into our end markets. We are affirming our 2025 outlook. As a reminder, organic growth is constant currency and excludes acquisitions and divestitures.

正如珍妮所提到的，我們正在仔細監測這些因素的潛在影響以及我們的第一季業績和終端市場的可見性。我們正在確認我們的 2025 年展望。提醒一下，有機成長是恆定貨幣，不包括收購和資產剝離。

We continue to expect 2025 consolidated organic revenue growth to be in the mid-single-digit range as compared to our full year 2024 results. We're off to a strong start with our Q1 results, but also acknowledge the increased level of uncertainty in the world and for our customers. In addition, recall that we face increasingly challenging comparisons in the second half of 2025 versus the second half of 2024.

與 2024 年全年業績相比，我們仍預期 2025 年綜合有機收入成長將處於中等個位數範圍內。我們第一季的業績開局良好，但我們也承認，全球和客戶的不確定性正在增加。此外，回想一下，與 2024 年下半年相比，2025 年下半年我們面臨的比較挑戰越來越大。

We continue to expect further adjusted EBITDA margin organic improvement to approximately 24% for the full year 2025. We have multiple avenues to drive margin expansion, leveraging operational scale from top line growth, benefiting from industrial segment growth outpacing other segments and continuously enhancing productivity.

我們繼續預計，2025 年全年調整後的 EBITDA 利潤率將進一步有機改善至約 24%。我們有多種途徑來推動利潤率擴張，利用營業額成長帶來的營運規模，受益於工業部門成長超過其他部門以及不斷提高生產力。

We also intend to continue to pursue strategic M&A opportunities in key markets that offer -- to margin and earnings improvement, while regularly reassessing portfolio optimization. Our outlook for capital expenditures in 2025 remains in a range of approximately 7% to 8% of revenue. With investments in new labs and software continuing as we seek to match strong customer demand in all three segments.

我們也打算繼續在關鍵市場尋求策略併購機會，以提高利潤率和獲利，同時定期重新評估投資組合優化。我們預計 2025 年資本支出仍將維持在收入的 7% 至 8% 左右。我們持續對新實驗室和軟體進行投資，力求滿足三個領域強勁的客戶需求。

Our expectation for our effective tax rate in 2025 remains approximately 26%. This compares to an effective rate of 16.9% in 2024 with the anticipated change due primarily to additional implementation of the OECD's Pillar 2, which affects how multinational corporations are taxed.

我們對 2025 年有效稅率的預期仍為 26% 左右。相較之下，2024 年的有效稅率為 16.9%，預計這項變更主要歸因於經合組織第二支柱的進一步實施，該支柱影響跨國公司的徵稅方式。

As a reminder, in the second quarter of 2024, we recorded a $25 million pretax gain on the sale of our Payments testing business, which was recorded as nonoperating income and is excluded from adjusted EBITDA. Our first quarter results display a continuation of our strong momentum, while improving profitability and cash generation. Our investment-grade balance sheet provides flexibility for strategic capital deployment as we seek to deliver superior shareholder value.

提醒一下，在 2024 年第二季度，我們出售支付測試業務獲得了 2500 萬美元的稅前收益，該收益被記錄為非營業收入，不計入調整後的 EBITDA。我們的第一季業績顯示出我們持續保持強勁勢頭，同時獲利能力和現金產生能力有所提高。當我們尋求提供卓越的股東價值時，我們的投資等級資產負債表為策略資本部署提供了靈活性。

Now let me turn the call back to Jenny for her closing remarks.

現在，請允許我把電話轉回給珍妮，請她作最後發言。

Thanks, Ryan. The first quarter is always busy. And recently, as I have for several years, I traveled to Asia to mark a number of special events in Japan, Korea and China and met with customers and other stakeholders. I was proud to be a groundbreaking ceremony at our upcoming facilities in Toyota City, Japan and -- Korea, which are expected to be opened in the second half of 2026 and the second half of 2025, respectively. Following meetings with our joint venture colleagues, which are always meaningful, my trip concluded at the China Development Forum, which was well attended by global CEOs.

謝謝，瑞安。第一季總是很忙碌。最近，正如過去幾年一樣，我前往亞洲參加日本、韓國和中國的一些特別活動，並會見了客戶和其他利害關係人。我很榮幸能參加我們即將在日本豐田市和韓國開設的工廠的奠基儀式，這些工廠預計將分別於 2026 年下半年和 2025 年下半年開業。在與合資公司的同事們舉行了意義非凡的會議之後，我的行程以參加中國發展高層論壇而結束，全球執行長們紛紛出席了此次論壇。

I was fortunate along with other American CEOs to meet with Chinese premier league and convey our company's value proposition in the region as we continue to advance safety science for new product innovation, quality manufacturing and market access. In conclusion, we've begun 2025 with strong momentum, building on our successful IPO just over a year ago.

我很榮幸與其他美國執行長一起與中國頂級企業會面，並傳達我們公司在該地區的價值主張，我們將繼續推進安全科學，以實現新產品創新、優質製造和市場准入。總而言之，在一年多前成功首次公開募股的基礎上，我們以強勁勢頭開啟了 2025 年。

The mega trends we have identified from global energy transition to sustainability align well with our capabilities and our market position. The hallmarks of our business, including healthy cash flow, recurring revenue streams, exceptional customer retention rates and a strong balance sheet continue to provide a durable foundation for delivering shareholder value.

我們從全球能源轉型到永續發展所發現的大趨勢與我們的能力和市場地位非常吻合。我們業務的標誌，包括健康的現金流、經常性收入流、卓越的客戶保留率和強勁的資產負債表，繼續為實現股東價值提供持久的基礎。

With that, let's open the line for questions.

現在，讓我們開始回答問題。

(Operator Instructions)

（操作員指示）

Stephanie Benjamin Moore, Jefferies

史蒂芬妮·本傑明·摩爾，傑富瑞

Maybe just continuing on the conversation around tariffs. You called out areas where you certainly would be impacted. It sounds like certainly more so on the positive front in terms of retesting. Have you seen any of your customers look to redesign products or move manufacturing locations that have resulted in incremental recertification testing or maybe any other impact from tariffs that you can call out in the quarter or even in the last month or so?

也許只是繼續討論關稅問題。您指出了肯定會受到影響的地區。從重新測試的角度來看，這聽起來肯定是更積極的。您是否發現任何客戶希望重新設計產品或轉移生產地點，從而導致增加重新認證測試，或者可能出現關稅的其他影響，而您可以在本季度甚至上個月左右公佈這些影響？

Thanks, Stephanie. And I think it's important to recall that our customers have been making decisions about tariffs for the last 6 or 8 years. And we've seen our industrial customers over the last number of years, already shifting a lot of their manufacturing locations and capital decisions. So this isn't new for them. They make smart decisions about costs across their supply chain.

謝謝，斯蒂芬妮。我認為重要的是要記住，我們的客戶在過去 6 年或 8 年裡一直在做出有關關稅的決定。過去幾年來，我們看到我們的工業客戶已經轉移了許多生產地點和資本決策。所以這對他們來說並不新鮮。他們對整個供應鏈的成本做出了明智的決策。

In the consumer space, B2C customers tend to be quicker to react to short-term macroeconomic trends. One of our customers call it the retail metabolism. And I think we'll continue to see them, make decisions, both about their overall product design as well as their manufacturing locations, as there's more clarity in their minds about where tariffs are ultimately going to land.

在消費領域，B2C 顧客往往對短期宏觀經濟趨勢反應較快。我們的一位客戶稱之為零售新陳代謝。我認為，我們將繼續看到他們做出決策，包括他們的整體產品設計以及製造地點，因為他們對關稅最終落在哪裡有了更清晰的認識。

So our goal is to be next to our customers wherever they are. And Ryan can comment a little more about anything specific, but we're not seeing a material impact today.

因此，我們的目標是無論客戶身在何處，我們都會陪伴在他們身邊。瑞安可以對任何具體的事情發表更多評論，但我們今天沒有看到實質的影響。

Great. Okay. And then maybe just switching as a follow-up from the -- in terms of your M&A strategy. Given maybe the more uncertain macro backdrop globally or certainly in the US, have you seen that change maybe the appetite for sellers or anything else that could change your M&A strategy, either accelerate or more on the negative side?

偉大的。好的。然後也許只是作為後續行動——就您的併購策略而言。鑑於全球或美國宏觀背景可能更加不確定，您是否看到了賣家興趣的變化或其他任何可能改變您的併購策略的因素，無論是加速還是更加消極？

We continue to be active in conversations all over the world across all of our segments about various opportunities of various scale. We think that, certainly, CapEx is an important accelerator of our growth, but where there are opportunities to strengthen our position, we will do so. So we are continuing those types of conversations and look forward to continuing to grow our business through acquisitions.

我們將繼續積極參與世界各地各個領域關於各種規模的各種機會的對話。我們認為，資本支出確實是我們成長的重要加速器，但如果有機會加強我們的地位，我們就會這麼做。因此，我們將繼續進行此類對話，並期待透過收購繼續發展我們的業務。

Keen Fai Tong, Goldman Sachs Group, Inc.

高盛集團有限公司 Keen Fai Tong

You've noted that you're not seeing any material impact today from tariffs. In your guide, can you talk about whether you're incorporating any anticipated impact either to the positive or negative?

您已經注意到，今天您沒有看到關稅帶來的任何實質影響。在您的指南中，您能否談談是否納入了任何預期的正面或負面影響？

George, thank you for the question. We affirmed our guidance and when we established our guidance for the beginning of the year, we appreciated there was a level -- an increased level of uncertainty but strengthen our core business, visibility to our revenue and our order book and when we were deciding what to communicate this quarter, we maintain that confidence. So based upon what we see in our business now, we were comfortable affirming that outlook.

喬治，謝謝你的提問。我們確認了我們的指導，當我們為年初制定指導時，我們意識到存在一定程度的不確定性——不確定性有所增加，但這加強了我們的核心業務、收入和訂單的可見性，當我們決定本季度要溝通甚麼時，我們保持了這種信心。因此，根據我們目前的業務情況，我們很樂意肯定這一前景。

Got it. That's helpful. And then during periods of macro uncertainty, companies will sometimes slow their pace of product innovation, which could impact demand for testing, inspection and certification. To what extent have you seen any moderation in new product launches from your customers year-to-date?

知道了。這很有幫助。在宏觀不確定時期，公司有時會放慢產品創新的步伐，這可能會影響對測試、檢驗和認證的需求。今年迄今為止，您在多大程度上看到客戶推出新產品的放緩？

No. innovation for our customers continues to be an important part of their vitality and our global and strategic accounts tends to have the long-term view with our customers about their new product development plans. So we're staying close with that. We have not seen any meaningful impact as of today. But certainly, as our customers make decisions, we will be by their side making the appropriate decisions to support them. We believe in the long-term importance of innovation, and we also believe that you can't have innovation without safety.

不，對我們的客戶來說，創新仍然是他們活力的重要組成部分，我們的全球和策略客戶傾向於與客戶一起從長遠角度看待他們的新產品開發計劃。因此我們會密切關注這一點。截至今天我們還沒有看到任何有意義的影響。但可以肯定的是，當我們的客戶做出決定時，我們會站在他們身邊，做出適當的決定來支持他們。我們相信創新的長期重要性，我們也相信沒有安全就沒有創新。

Joshua Chan, UBS Investment Bank

Joshua Chan，瑞銀投資銀行

I was wondering if you could help contextualize kind of the level of margin expansion that you experienced in Q1, especially with the industrial side, seeing the 100% drop-through. Obviously, that's not very typical. So I was just hoping to get some color on what drove that level of margin improvement.

我想知道您是否可以幫助您說明第一季利潤率擴張的水平，尤其是工業方面的利潤率下降了 100%。顯然，這並不是很典型。所以我只是希望了解一下是什麼推動了利潤率的提升。

Yes. We're pleased with the operational execution of each of the three segments. And you're right, we had strong flow-through, particularly in industrial. And maybe just focusing at an operating income level, the business experience is operating leverage with growth, particularly in the first quarter, which across you well is a slightly lower revenue quarter.

是的。我們對三個部門的營運執行感到滿意。你說得對，我們的流通量很大，特別是在工業領域。也許只關注營業收入水平，業務經驗就是營業槓桿的成長，特別是在第一季度，這是一個收入略低的季度。

So when we do have revenue growth, we see disproportional operating leverage. Within adjusted EBITDA, we do have some incremental add back of stock-based compensation compared to the first quarter of last year. We have some incremental depreciation as we invest in laboratory capacity in industrial. But putting those aside, in just core operating income, the majority of our incremental revenue flowed through to incremental operating income in Industrial in the second quarter.

因此，當我們的收入確實成長時，我們會看到不成比例的營運槓桿。在調整後的 EBITDA 中，與去年第一季相比，我們確實有一些基於股票的薪酬的增量增加。由於我們對工業實驗室能力進行了投資，因此出現了一些增量折舊。但撇開這些不談，僅在核心營業收入中，我們的增量收入大部分都流向了第二季工業的增量營業收入。

Yes, that makes sense. And then I guess you mentioned the increasing uncertain environment, yet you reiterated your guide so I guess how would you anticipate any impacts possibly flowing into your business? Because I would think that it would be fairly resilient, but I'm just trying to gauge where the cautiousness is coming from at this point?

是的，這很有道理。然後我想您提到了日益增加的不確定環境，但您重申了您的指南，所以我想您如何預測可能對您的業務產生的影響？因為我認為它會相當有彈性，但我只是想判斷此時謹慎的態度來自哪裡？

Yes. I think there's puts and takes across our services lines and new testing for new products or, as I like to say, all new and improved products, products that are being value engineered by customers. We continue to have visibility. And as Ryan mentioned, there's -- we could see some moderation in consumer in the second quarter there, but the long-term trends, as we've seen in the past in other macroeconomic concerning situations, you tend to be very resilient.

是的。我認為我們的服務系列和新產品的新測試，或者如我所說，所有新的和改進的產品，以及由客戶進行價值工程的產品，都有其優缺點。我們繼續保持可見性。正如瑞安所提到的，我們可以看到第二季的消費有所放緩，但長期趨勢是，正如我們過去在其他宏觀經濟情勢中所看到的那樣，這種趨勢往往非常有彈性。

And even as customers move manufacturing locations, it's fairly easy for us to move our ongoing certification services. These are people on the ground going to factories to inspect and certify. So as these trends play out in the long term, we're very resilient.

即使客戶轉移生產地點，我們也可以相當輕鬆地轉移我們正在進行的認證服務。這些人都是實地前往工廠進行檢查和認證的。因此，隨著這些趨勢的長期發展，我們將具有強大的韌性。

(inaudible), Wells Fargo.

（聽不清楚），富國銀行。

This is [Jenny] on for Jason Haas at Wells Fargo. I was curious, you guys talked about how ongoing certification services growth benefited from increased activity last quarter due to a pull forward from tariffs. If you continue to see that dynamic in this quarter?

我是富國銀行 Jason Haas 的 [Jenny]。我很好奇，你們談到了由於關稅的推動，上個季度認證服務的持續增長如何受益於活動的增加。如果您在本季繼續看到這種動態？

Thank you for the question. So as compared to Q4 2024, we did see some normalization within ongoing certification services, which was expected and it impacted particularly our Industrial segment growth. As a reminder, across you well in Q4, we saw $27 million or 12% year-over-year ongoing certification growth, and we said we believe this benefited from increased activity from manufacturers ahead of anticipated tariffs. In Q1, the growth of ongoing certification was $12 million or 5% so it does appear that, that did occur in Q4 2024.

謝謝你的提問。因此，與 2024 年第四季相比，我們確實看到持續認證服務有所正常化，這是意料之中的，並且尤其影響了我們工業部門的成長。提醒一下，在第四季度，我們看到持續認證金額年增 2700 萬美元或 12%，我們認為這得益於製造商在預期關稅之前增加的活動。在第一季度，持續認證的成長為 1,200 萬美元，即 5%，因此看起來，這確實發生在 2024 年第四季。

And then could I also just double click on the software piece. Can you accelerate there? What's driving that demand?

然後我也可以雙擊該軟體嗎？你能在那裡加速嗎？是什麼推動了這種需求？

Yes. Some of the biggest things that are propelling that demand is the sales transformation that has really been reinvigorating our expansion of software sales. And we saw strong bookings in the fourth quarter, and that drove Q1 revenue and looking at renewals and extending our ARR and software has been important. And we're seeing particular strength in customers really wanting the types of services that we offer in our supply chain transparency, our retail product compliance, where we've got some new supplier analytics. We've got a new PFOS module. We've got an omnichannel market AI tool.

是的。推動這項需求的最大因素之一是銷售轉型，它確實重新激發了我們軟體銷售的擴張。我們在第四季度看到了強勁的預訂量，這推動了第一季的收入，而專注於續約以及擴展我們的 ARR 和軟體非常重要。我們看到，客戶確實非常需要我們在供應鏈透明度、零售產品合規性方面提供的服務，我們在這些方面都有一些新的供應商分析。我們有一個新的 PFOS 模組。我們擁有全通路市場 AI 工具。

Those are all resonating with customers and extending our relationships and extending our footprint with them. And then we're seeing in the ESG space as well, continued strength and growth.

這些都引起了客戶的共鳴，並擴大了我們與他們的關係並擴大了我們的影響力。然後，我們也看到 ESG 領域持續的實力和成長。

Andrew Nicholas, William Blair.

安德魯尼古拉斯、威廉布萊爾。

You mentioned pretty significant growth momentum across the business. I think you said across all segments, which we've seen and also geographies. Could you spend a little bit more time talking about growth by geography? Are there any areas or regions in particular that are showing outsized growth? And any kind of drivers there that are worth calling out?

您提到整個業務的成長勢頭相當顯著。我想您說過，這涉及我們已經看到的所有領域以及各個地區。您能否花更多時間談談地理分佈的成長？是否有哪個地區或區域特別呈現超高速的成長？還有哪些類型的司機值得關注？

I think it's -- when you look at both industrial and consumer, North America and in particular, industrial in the United States continues to be strong. The increasing demand for new energy sources for data centers. That trend here in the United States is extremely important, and we're seeing that strength through our Industrial business, both in our Industrial Automation and in our Engineered Materials business, particularly as there's a shift to higher voltage and greater cable needs. On the consumer side, we're also seeing particular strength in North America and across all of Asia, including Greater China. So each region is holding its own and contributing to our growth across all segments.

我認為——當你觀察工業和消費時，北美，特別是美國的工業繼續保持強勁。資料中心對新能源的需求日益增加。在美國，這種趨勢極為重要，我們透過工業業務看到了這種優勢，包括工業自動化和工程材料業務，特別是隨著電壓和電纜需求的增加。在消費者方面，我們也看到北美和整個亞洲（包括大中華區）的特別強勁表現。因此，每個地區都保持著自己的特色，並為我們所有領域的成長做出貢獻。

Understood. And then for my follow-up, I wanted to touch on Software and Advisory again. You mentioned good growth in software specifically, I think it was 9% organic. On the Advisory side, is that a business that is going to be a little bit more lumpy? And I'm just curious if in this environment with a lot of puts and takes and complexity if, that's a business that would also potentially benefit from your services?

明白了。然後，作為我的後續行動，我想再次談談軟體和諮詢。您特別提到了軟體方面的良好成長，我認為是 9% 的有機成長。從諮詢方面來看，業務是否會變得更加不穩定？我只是好奇，在這種充滿風險和複雜性的環境中，這項業務是否也可能從您的服務中受益？

Yes. Advisory, it is lumpy, and it's lumpy. It doesn't benefit as much from the sales transformation. A lot of times in advisory, they're buying the people that are going to be serving. So it's a different sales process. But we're also seeing some headwinds around some of the sustainability regulation shifts in the US Our business focuses in our renewables focuses on financing, renewables projects.

是的。忠告，它是塊狀的，它是塊狀的。它並沒有從銷售轉型中獲得太多好處。在顧問業中，很多時候他們會購買即將提供服務的人員。所以這是一個不同的銷售流程。但我們也看到美國一些永續監管轉變方面存在一些阻力，我們的業務重點是再生能源，重點是融資和再生能源項目。

So as that demand shifts, our needs for advisory can shift in that. And then we also have a nice footprint in healthy buildings, which is really dependent on the commercial real estate market. And of course, in the United States, we're seeing some headwinds in that market as well.

因此，隨著需求的變化，我們的諮詢需求也會隨之改變。我們在健康建築領域也佔有一席之地，這實際上依賴商業房地產市場。當然，在美國，我們也看到了一些市場阻力。

So advisory is lumpier. We believe in its importance to contributing to our tech customers overall perspectives and requirements for how their products come to market, but we'll continue to focus on it.

因此諮詢更加不完善。我們相信，它對於為我們的技術客戶提供有關其產品如何進入市場的整體觀點和要求非常重要，但我們將繼續關注它。

Arthur Truslove, Citi.

花旗銀行的亞瑟‧特拉斯洛夫。

Congratulations on the results. Three from me, if I can. First question. In Q4, you talked a little bit about potentially some pull forward demand. You obviously had some in the fourth quarter you thought. Could you give us an idea of how much you think might have been for that in the first quarter?

恭喜你取得這樣的成績。如果可以的話，我會說三句。第一個問題。在第四季度，您談到了一些潛在的提前需求。你顯然在第四節取得了一些成績。您能否告訴我們，您認為第一季的數字可能是多少？

Second question, how have -- are you able to just comment on the impact of pricing within your overall organic growth. So roughly what proportion of it was pricing. And then obviously, you've been very focused at you've been expanding in China and built some new labs recently. Can you just give us an idea of how your Chinese labs are performing? Is it all sort of in line with expectation? And are you seeing any impact there from what's going on in Washington?

第二個問題，您能否評論一下定價對整體有機成長的影響。那麼其中定價比例大概是多少呢？顯然，您最近非常專注於在中國的擴張並建立了一些新的實驗室。您能否向我們介紹一下你們中國實驗室的表現如何？一切是否都符合預期？您是否看到華盛頓發生的事情對那裡產生了影響？

Thank you, Arthur. I'll take the first couple of questions in regard to pull forward of demand. And in general, we haven't seen substantial changes in the timing of revenue. We mentioned in the fourth quarter an increase in ongoing certification services through the first three quarters of last year, that service line grew about 8%. In the fourth quarter, it grew about 12%, and there are some services within that, that the markets value so much that each individual product has a certification or a labeling to reduce risk. So we did see that increase in the fourth quarter as we anticipated in the first quarter that normalized that service line was about 5% growth.

謝謝你，亞瑟。我將回答有關提前需求的幾個問題。整體而言，我們並沒有看到收入時間有實質變化。我們在第四季度提到，去年前三個季度持續認證服務有所增加，該服務線增加了約 8%。第四季度，它成長了約 12%，其中的一些服務市場非常重視，以至於每件產品都有認證或標籤以降低風險。因此，我們確實看到了第四季度的成長，正如我們預期的第一季該服務線的正常化成長率約為 5%。

Another area that we mentioned that likely has some moderate impact is we had a very strong first quarter in consumer, 7.7% organic growth. That's higher than the last several quarters. And we can see regionally, some of that was particularly in softlines and hardlines, some of it was in markets that would be affected by tariffs. So we thought it's reasonable that a small amount of that could moderate in the second quarter.

我們提到的另一個可能產生中等影響的領域是，第一季我們的消費業務表現非常強勁，有機成長率達到 7.7%。這比前幾季的水平要高。我們可以看到，從地區來看，其中一些特別集中在軟線和硬線領域，還有一些集中在受關稅影響的市場。因此我們認為，第二季出現少量放緩是合理的。

But to put it in perspective, that 7.7% organic growth compares to 5.8% organic growth in the first quarter of last year, 6% growth in the second quarter, 9% growth in the third quarter, 6.5% in the fourth quarter. So it's moderately above our trend and we can see geographically that it's logical to say that there was some effect, but these are relatively small for consumer.

但從整體來看，7.7% 的有機成長率與去年第一季的 5.8%、第二季的 6%、第三季的 9% 和第四季的 6.5% 的有機成長率相比。因此，它略高於我們的趨勢，從地理上看，說它有一定影響是合乎邏輯的，但對於消費者來說，這些影響相對較小。

And then next about pricing. We're pleased with that organic revenue growth that there was fairly even contribution from both price and volume. We continue to make progress on our pricing initiatives. That came through within the quarter and assisted the revenue growth, but it was relatively similar contributions from both price and volume. And then the final question was about China lab performance...

接下來是關於定價。我們對有機收入成長感到滿意，價格和銷售的貢獻相當均衡。我們的定價措施不斷取得進展。這在本季度內實現並促進了收入成長，但價格和銷售的貢獻相對相似。最後一個問題是關於中國實驗室的表現…

And just one more thing on pricing. We continue to have strong Net Promoter Score results. We evaluate that every quarter. And so we want to ensure that our customers are getting the value for our services, and we watch that very closely and are pleased with what a great job our team does all over the world on behalf of our customers.

關於定價還有一點。我們的淨推薦值持續保持強勁。我們每季都會對此進行評估。因此，我們希望確保我們的客戶能夠從我們的服務中獲得價值，我們密切關注這一點，並對我們的團隊在世界各地為客戶所做的出色工作感到滿意。

On China, we have announced new labs. China had outstanding performance and continues, of course, to be in a very important region for us. Some of the new lab openings, such as the 1 in Ningbo really improves our cost position for our retail services. And it's a beautiful lab and what's considered in China, a Tier 2 city of 10 million people.

在中國，我們已經宣佈建立新的實驗室。中國的表現非常出色，當然，它對我們來說仍然是一個非常重要的地區。一些新實驗室的開設，例如寧波的實驗室，確實改善了我們零售服務的成本狀況。這是一個美麗的實驗室，在中國，這是一個擁有 1000 萬人口的二線城市。

But we see excellent performance in all of our labs across China.

但我們看到，我們在中國的所有實驗室都表現優異。

(Operator Instructions).

（操作員指令）。

Brett Castelli, Morningstar.

晨星公司的布雷特·卡斯特利。

Maybe just big picture on tariffs. As your customers potentially shift their supply chains, how that potentially impact utilization across your labs, and Ryan, how does that then potentially impact incremental margins and the strong operating leverage that you've shown historically?

也許只是關稅方面的大局。當您的客戶可能轉移他們的供應鏈時，這可能會如何影響您實驗室的使用率？ Ryan，這會如何影響增量利潤和您過去表現出的強勁經營槓桿？

Yes. So a couple of things. As Jenny said, breaking it out by our different service lines. So first, about 1/3 of our revenue is ongoing certification services, and not much of that is laboratory based. That is an employee-based human service. And as trade shifts, we can adjust our workforce to meet that demand. So that's about a third of our revenue.

是的。有幾件事。正如珍妮所說，我們按照不同的服務線進行細分。首先，我們大約 1/3 的收入來自持續的認證服務，其中大部分不是基於實驗室的。那是一種以員工為基礎的人力服務。隨著貿易的變化，我們可以調整勞動力來滿足這項需求。這大約占我們收入的三分之一。

And over a long period of time, we've been adjusting our lab capacity based on global trade patterns and the needs of our customers. So we've expanded capacity in Vietnam. We've expanded capacity in Mexico in a number of different regions. And we have visibility to what the plans of our customers are in building new -- their new manufacturing capabilities, their new research and development facilities. So we have a time to react.

長期以來，我們一直根據全球貿易模式和客戶需求調整實驗室能力。因此我們擴大了越南的產能。我們已經在墨西哥多個不同地區擴大了產能。我們可以清楚了解客戶在建造新製造能力、新研發設施方面的計劃。所以我們有時間做出反應。

So we're fortunate that our laboratories, our physical assets are being well utilized and that's leading to high operating leverage and economic flow through like in the first quarter, but it's something that we'll continually monitor to serve our customers, and we've made adjustments.

因此，我們很幸運，我們的實驗室、實物資產得到了充分利用，這導致了第一季的高營運槓桿和經濟流通，但我們會持續監控以服務我們的客戶，並且我們已經做出了調整。

That's really helpful. And then for my second one, just on the free cash flow performance in the quarter was really strong, nearly 15% of revenue. Just any comments, Ryan, how you would expect that number to move going forward for the full year?

這真的很有幫助。然後，對於我的第二個問題，本季的自由現金流表現非常強勁，幾乎佔營收的 15%。瑞安，您有什麼評論嗎？您預計這個數字在全年會如何變化？

Yes. We're pleased with the performance of cash flow, and it's coming from a number of different factors. So core profitability and growth in net income, improved working capital management and days sales outstanding, better global cash management of our balances around the world allowed us to pay down debt. And some of this is a shift to being a public company, a transition from cash-based long-term incentives to more stock-based compensation. And all of those contribute.

是的。我們對現金流的表現感到滿意，這源自於許多不同的因素。因此，核心獲利能力和淨收入的成長、營運資本管理和應收帳款週轉天數的改善、以及全球現金餘額的更好的管理使我們能夠償還債務。其中一些是向上市公司的轉變，從基於現金的長期激勵轉向更多基於股票的薪酬。所有這些都有所貢獻。

We continue to invest in growth for the business and had over $50 million in CapEx. We anticipate a similar percentage on a full year basis. We had a small increase in our dividend that was an increased utilization of cash, but we're pleased with the material growth in both cash flow from operations and free cash flow.

我們繼續投資於業務成長，資本支出超過 5,000 萬美元。我們預計全年的百分比也將相似。我們的股息略有增加，這是由於現金利用率增加，但我們對經營現金流和自由現金流的大幅增長感到滿意。

This concludes our question-and-answer session. I would like to turn the conference back over to Jenny Scanlon, Chief Executive Officer, for any closing remarks.

我們的問答環節到此結束。我想將會議交還給執行長珍妮‧斯坎隆 (Jenny Scanlon)，請她做最後發言。

Thank you, everyone, for joining us today. As always, we appreciate your support, and we look forward to updating you on our progress next quarter.

感謝大家今天加入我們。像往常一樣，我們感謝您的支持，並期待下個季度向您通報我們的進展。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。