Veralto Corp (VLTO) 2025 Q3 法說會逐字稿

Good morning, everyone. My name is Beau and I will be your conference operator this morning. At this time, I would like to welcome everyone to Veralto Corporation's third quarter 2025 conference call. (Operator Instructions)

各位早安。我叫博，今天上午我將擔任你們的會議接線生。在此，我謹代表 Veralto 公司歡迎各位參加 2025 年第三季業績電話會議。（操作說明）

I will now turn the call over to Mr. Ryan Taylor, Vice President of Investor Relations. Please go ahead, sir.

現在我將把電話交給投資者關係副總裁瑞安泰勒先生。請繼續，先生。

Good morning, everyone, and thanks for joining us on the call. With me today are Jennifer Honeycutt, our President and Chief Executive Officer; and Sameer Ralhan, our Senior Vice President and Chief Financial Officer.

各位早安，感謝各位參加本次電話會議。今天陪同我的是我們的總裁兼執行長珍妮佛·霍尼卡特，以及我們的高級副總裁兼財務長薩米爾·拉爾漢。

Today's call is simultaneously being webcast. A replay of the webcast will be available on the Investors section of our website later today, under the heading Events and Presentations. A replay of this call will also be available until November 7.

今天的電話會議將同時進行網路直播。今天晚些時候，您可以在我們網站的「投資者」版塊的「活動與演示」欄位下觀看網路直播回放。本次電話會議的錄音回放將持續提供至11月7日。

Yesterday, we issued our third quarter 2025 news release earnings presentation and supplemental materials, including information required by the SEC relating to adjusted or non-GAAP financial measures. These materials are available in the Investors section of our website, www.veralto.com under the heading Quarterly Earnings.

昨天，我們發布了 2025 年第三季新聞稿、收益簡報和補充資料，其中包括美國證券交易委員會要求提供的與調整後或非 GAAP 財務指標相關的資訊。這些資料可在我們網站 www.veralto.com 的「投資者」版塊的「季度收益」標題下找到。

Reconciliations of all non-GAAP measures are also provided in the appendix of the webcast slides. Unless otherwise noted, all references to variances are on a year-over-year basis. During the call, we will make forward-looking statements within the meaning of the federal securities laws, including statements regarding events or developments that we believe or anticipate will, or may occur in the future.

所有非GAAP指標的調節表也列於網路直播投影片的附錄。除非另有說明，所有關於差異的提及均指同比差異。在本次電話會議中，我們將根據聯邦證券法做出前瞻性聲明，包括關於我們認為或預期將來可能發生的事件或發展的聲明。

These forward-looking statements are subject to a number of risks and uncertainties, including those set forth in our SEC filings. Actual results may differ materially from our forward-looking statements. These forward-looking statements speak only as of the date that they are made, and we do not assume any obligation to update any forward-looking statements, except as required by law.

這些前瞻性陳述受到許多風險和不確定因素的影響，包括我們在提交給美國證券交易委員會的文件中列出的風險和不確定因素。實際結果可能與我們的前瞻性聲明有重大差異。這些前瞻性陳述僅代表其作出之日的觀點，除法律要求外，我們不承擔更新任何前瞻性陳述的義務。

And with that, I'll turn the call over to Jennifer.

接下來，我會把電話交給珍妮佛。

Thank you, Ryan, and thank you all for joining our third quarter earnings call today. During the third quarter, we continued to drive consistent growth through strong top line performance, disciplined operational execution and rigorous deployment of the Veralto Enterprise system.

謝謝瑞恩，也謝謝各位今天參加我們的第三季財報電話會議。第三季度，我們透過強勁的營收表現、嚴謹的營運執行以及Veralto Enterprise系統的嚴格部署，持續推動持續成長。

For both the third quarter and year-to-date, our team delivered mid-single-digit core sales growth double-digit adjusted earnings per share growth and over 100% free cash flow conversion. These results understore our ability to successfully navigate a dynamic macro environment, particularly with respect to changes in global trade policies. Our steady growth and improvement this year is a testament to our durable business model and the critical role our technologies and services play in supporting the daily operations of our customers.

無論是第三季還是今年迄今為止，我們的團隊都實現了中等個位數的核心銷售額成長、兩位數的調整後每股收益成長以及超過 100% 的自由現金流轉換率。這些結果低估了我們成功應對動態宏觀環境的能力，尤其是在全球貿易政策變化方面。今年我們穩步成長和進步，證明了我們持久的商業模式，以及我們的技術和服務在支援客戶日常營運方面發揮的關鍵作用。

Given the strength of our third quarter results, we raised our full year adjusted earnings per share guidance to a range of $3.82 to $3.85 per share and we raised our full year free cash flow conversion guidance to approximately 100%. Our financial position continues to strengthen, giving us ample flexibility to evaluate opportunities to deploy capital within our proven framework. Our capital allocation bias is towards acquisitions and our pipeline of opportunities is comprised of a mosaic of attractive targets across both water quality and PQI. We continue to take a prudent approach to evaluating opportunities consistent with our disciplined market, company valuation framework.

鑑於我們第三季業績強勁，我們將全年調整後每股收益預期上調至每股 3.82 美元至 3.85 美元，並將全年自由現金流轉換率預期上調至約 100%。我們的財務狀況持續增強，使我們有充足的靈活性在成熟的框架內評估部署資本的機會。我們的資本配置偏好是收購，我們的收購機會儲備包括水質和電力品質指數 (PQI) 領域內一系列有吸引力的目標。我們將繼續採取審慎的態度來評估各種機會，並遵循我們嚴謹的市場和公司估值框架。

I also want to highlight that during the quarter, we published our annual sustainability report. We have approached our commitment to sustainability with the same rigor and discipline that we apply to operating our businesses by leveraging our VES tools for continuous improvement to drive results. We have achieved significant milestones in developing innovative and sustainable products that not only meet the needs of our customers but also support the health of our environment.

我還想強調一點，本季我們發布了年度永續發展報告。我們以對待業務營運的同樣嚴謹和自律的態度對待永續發展的承諾，利用 VES 工具不斷改進，以推動績效成長。我們在開發創新和永續產品方面取得了重大的里程碑式成就，這些產品不僅滿足了客戶的需求，也有益於環境健康。

Our commitment to excellence in product design and functionality ensures that we contribute positively to the world we share. In 2024, our products and services helped provide daily access to clean water for 3.4 billion people, treat and recycle 14 trillion gallons of water, saved 85 billion gallons of water and ensure product authenticity and safety by helping customers mark and code over 10 billion products each and every day.

我們致力於追求卓越的產​​品設計和功能，確保我們能夠為我們共同的世界做出積極貢獻。2024 年，我們的產品和服務幫助 34 億人每天獲得清潔用水，處理和回收 14 兆加侖水，節省 850 億加侖水，並透過幫助客戶每天標記和編碼超過 100 億件產品，確保產品的真實性和安全性。

Additionally, we are making progress on reducing our own carbon footprint, an important commitment from many of our stakeholders. We are proud of the steps we are taking to support our environment and help our customers progress their sustainable journeys. The work we do helps customers deliver higher-quality products accelerate time to market, minimize resource consumption and ensure compliance with relevant standards to improve overall operating efficiency.

此外，我們在減少自身碳足跡方面也取得了進展，這是我們許多利害關係人的重要承諾。我們為正在採取的保護環境和幫助客戶實現永續發展目標的措施感到自豪。我們所做的工作幫助客戶交付更高品質的產品，加快產品上市速度，最大限度地減少資源消耗，並確保符合相關標準，從而提高整體營運效率。

The essential need for our technology solutions, our durable business model and the secular growth drivers across our end markets fortified by the Veralto Enterprise System enable us to deliver long-term sustainable growth. The third quarter 2025 marked our fifth consecutive quarter of mid-single-digit core sales growth, consistent with our long-term value-creation algorithm. I am proud of our global team for the steady growth and improvement we have achieved while embracing our purpose, a reflection of our high-performance culture.

我們技術解決方案的必要性、我們持久的商業模式以及我們終端市場長期成長的驅動因素，再加上 Veralto 企業系統的強化，使我們能夠實現長期永續成長。2025 年第三季是我們連續第五個季度核心銷售額實現個位數中段成長，這符合我們的長期價值創造演算法。我為我們的全球團隊感到自豪，我們在秉持使命的同時，也取得了穩步成長和進步，這體現了我們追求卓越的企業文化。

Looking at our third quarter results in detail. We delivered 5.1% core sales growth and 11% adjusted EPS growth. Our commercial teams continue to drive outstanding execution, leveraging their applications expertise to deliver growth through new customer wins and increased market penetration, while also capitalizing on steady demand across our key markets. Our core sales growth came in at the high end of our expectations and was broad-based across geographies in both segments.

詳細分析我們第三季的業績。我們實現了5.1%的核心銷售額成長和11%的調整後每股盈餘成長。我們的商業團隊繼續保持卓越的執行力，利用其應用專業知識，透過贏得新客戶和提高市場滲透率來實現成長，同時充分利用我們在主要市場的穩定需求。我們的核心銷售成長達到了預期的高端水平，並且在兩個細分市場的各個地區都實現了廣泛成長。

Water quality delivered 5.3% core sales growth and PQI, 4.6% core sales growth. In PQI, our marking and coding business continued to see strong year-over-year core sales growth in both consumables and equipment. And in packaging and color, our Esko team continued to drive core sales growth by expanding software solutions in the mid-market CPG segment.

水質產品實現了 5.3% 的核心銷售成長，PQI 產品實現了 4.6% 的核心銷售成長。在 PQI 領域，我們的標記和編碼業務在耗材和設備方面繼續保持強勁的同比核心銷售成長。在包裝和色彩方面，我們的 Esko 團隊透過拓展面向中階市場 CPG 領域的軟體解決方案，持續推動核心銷售成長。

In Water Quality, we delivered mid-single-digit growth across both water treatment and water analytics with particularly strong growth in North America. Moving on to margin performance. Adjusted operating profit margin came in at 23.9%, in line with our underlying guidance assumption. Adjusted earnings per share grew 11% year-over-year to $0.99 a $0.04 above the high end of our guidance range.

在水質領域，我們在水處理和水分析方面均實現了中等個位數的成長，其中北美地區的成長尤為強勁。接下來分析利潤率表現。經調整後的營業利益率為 23.9%，與我們先前的預期一致。經調整後的每股盈餘年增 11% 至 0.99 美元，比我們預期範圍的上限高出 0.04 美元。

Looking at sales by geography and end market, growth was broad-based across key verticals and regions. In North America, which accounts for 50% of our business, core sales grew 6.9%, led by high single-digit growth in PQI and strong mid-single-digit growth in water quality. Core sales in high-growth markets were up 4.3% and core sales into Western Europe grew 2.5%.

從地理和終端市場來看，各主要垂直行業和地區的銷售額均實現了廣泛增長。在占我們業務 50% 的北美地區，核心銷售額成長了 6.9%，其中 PQI 實現了高個位數成長，水質實現了強勁的中個位數成長。高成長市場的核心銷售額成長了 4.3%，西歐的核心銷售額成長了 2.5%。

Taking a closer look at North America, core sales in PQI grew 9.2% over the prior year period. This growth reflects strategic pricing adjustments related to tariffs that were implemented in the second quarter along with higher volumes of marking and coding equipment related consumables and Esko software solutions. From an end market perspective, demand trends in PQI were in line with our expectations during the third quarter.

仔細觀察北美市場，PQI 的核心銷售額比去年同期成長了 9.2%。這一增長反映了與第二季度實施的關稅相關的策略性定價調整，以及標記和編碼設備相關耗材和 Esko 軟體解決方案銷售的增加。從終端市場角度來看，第三季 PQI 的需求趨勢與我們的預期一致。

PQI's volume growth through the first nine months this year has been strong relative to the market. This reflects the disciplined cross-functional execution and rigorous application of VES tools to deliver on our strategic initiatives. And overall, CPG demand was also in line with our expectations.

今年前九個月，PQI 的銷售成長相對於市場而言十分強勁。這體現了我們為實現策略目標而進行的嚴謹的跨職能執行和對 VES 工具的嚴格應用。整體而言，消費品需求也符合我們的預期。

At Water Quality, core sales in North America grew 6% year-over-year, with broad-based growth across water treatment and water analytics. In our water treatment business, we continue to capitalize on strong demand for our chemical treatment solutions where core sales grew mid-single digits year-over-year.

在水質業務方面，北美核心銷售額年增 6%，水處理和水分析業務均實現了全面成長。在我們的水處理業務中，我們繼續利用市場對我們化學處理解決方案的強勁需求，核心銷售額比去年同期成長了中等個位數。

This growth was broad-based across most of the industrial markets we serve and was most pronounced in chemical processing and technology-related industries supporting artificial intelligence, including data centers. We are well positioned to capitalize on the rapid growth of infrastructure required to support AI growth. Our application expertise in water treatment is essential to helping deliver efficient water utilization and reduced energy consumption for hyperscalers and data center operators. We are also well positioned to capitalize on adjacent industries supporting AI growth such as semiconductors and power generation.

這種成長在我們所服務的大多數工業市場中都得到了廣泛體現，在化學加工和支援人工智慧的技術相關產業（包括資料中心）中最為明顯。我們已做好充分準備，能夠充分利用支援人工智慧發展所需的基礎設施的快速成長。我們在水處理方面的應用專業知識對於幫助超大規模資料中心營運商和資料中心實現高效的水資源利用和降低能源消耗至關重要。我們也擁有得天獨厚的優勢，可以充分利用支援人工智慧發展的鄰近產業，例如半導體和發電產業。

In our Water analytics business, core sales into North America grew mid-single digits with growth across both municipal and industrial verticals. Our water analytics growth was primarily driven by demand for our laboratory instrumentation and related chemistries.

在我們的水務分析業務中，北美核心銷售額實現了中等個位數成長，市政和工業垂直領域均實現了成長。我們的水質分析業務成長主要得益於市場對我們實驗室儀器及相關化學品的需求。

In Western Europe, core sales grew 2.5% with both segments up year-over-year. PQI grew 3.7%, driven by marking and coding and water quality grew 1.3% driven by water analytics. In high-growth markets, core sales grew 4.3%, highlighted by strong growth in the Middle East, Latin America and India. Core sales into China grew low single digits in both segments. Overall, we continue to deliver consistent top and bottom line growth in the third quarter.

在西歐，核心銷售額成長了 2.5%，兩個細分市場均較去年同期成長。PQI 成長了 3.7%，主要得益於標記和編碼；水質成長了 1.3%，主要得益於水質分析。在高成長市場中，核心銷售額成長了 4.3%，其中中東、拉丁美洲和印度的成長尤為強勁。在中國市場，兩個細分市場的核心銷售額均實現了個位數低成長。總體而言，我們在第三季繼續實現了營收和利潤的持續成長。

At this time, I'll turn the call over to Sameer for a detailed review of our financial results and an update on our guidance.

此時，我將把電話轉交給 Sameer，讓他詳細回顧我們的財務表現並更新我們的業績指引。

Thanks, Jennifer, and good morning, everyone. I'll begin with our consolidated results for the third quarter. Total sales grew 6.9% on a year-over-year basis, to $1.4 billion. Currency was 150 basis points or about a $20 million tailwind year-over-year. Acquisitions that divestiture contributed 30 basis points of growth, primarily from TraceGains and Aquafides.

謝謝你，珍妮弗，大家早安。我先從我們第三季的綜合業績開始。總銷售額年增 6.9%，達到 14 億美元。匯率年增 150 個基點，相當於約 2,000 萬美元的利多。剝離資產的收購貢獻了 30 個基點的成長，主要來自 TraceGains 和 Aquafides。

Core sales grew 5.1%, with both volume and price up year-over-year in both segments. Volume grew 2.7% year-over-year and price contributed 2.4% to core sales growth in the quarter. Recurring revenue grew high single digits year-over-year and comprised 62% of our total sales. Gross profit increased 8% year-on-year to $844 million. Gross profit margin expanded 50 basis points to 60.1%, reflecting the benefit of our strategic pricing actions and strong procurement and supply chain efforts related to the tariff environment.

核心銷售額成長了 5.1%，兩個業務板塊的銷量和價格均較去年同期成長。本季銷售量年增 2.7%，價格因素對核心銷售成長的貢獻率為 2.4%。經常性收入年增接近兩位數，佔總銷售額的 62%。毛利年增 8%，達到 8.44 億美元。毛利率成長 50 個基點至 60.1%，反映了我們針對關稅環境採取的策略定價措施以及強有力的採購和供應鏈努力所帶來的效益。

Adjusted operating profit increased 6% year-over-year and adjusted operating profit margin was 23.9%, in line with our expectations. Strong year-over-year margin expansion in our Water Quality segment in the quarter was offset by acquisition dilution, strategic growth investments and tariff mitigation costs at PQI. Additionally, corporate expenses were up year-over-year, reflecting our full run rate costs.

調整後的營業利益年增 6%，經調整後的營業利益率為 23.9%，符合我們的預期。本季水質業務部門利潤率較去年同期大幅成長，但被收購稀釋、策略成長投資以及 PQI 的關稅緩解成本所抵銷。此外，公司支出較去年同期上升，反映了我們全部的營運成本。

Looking at EPS for Q3, adjusted earnings per share grew 11% year-over-year to $0.99 per share. As compared to our guidance, adjusted EPS came in $0.04 above the high end of our range. This was primarily driven by stronger volume growth in both segments, higher operating margin in our Water Quality segment, and lower net interest expense.

從第三季每股收益來看，調整後的每股盈餘年增 11% 至每股 0.99 美元。與我們的預期相比，調整後的每股盈餘比我們預期範圍的上限高出 0.04 美元。這主要得益於兩個業務部門銷售的強勁成長、水質業務部門更高的營業利潤率以及更低的淨利息支出。

Our free cash flow generation was strong in the third quarter. We generated $258 million of free cash flow at 20% or $43 million increase year-over-year. I'll come to the segment results, starting with water quality on the next page. Sales in our Water Quality segment were $856 million, up 7% on a year-over-year basis. Currency was a 140 basis point tailwind, and acquisitions contributed 30 basis points of growth driven by our Aquafides.

第三季我們的自由現金流表現強勁。我們創造了 2.58 億美元的自由現金流，年增 20%，即 4,300 萬美元。接下來我將介紹各個細分市場的結果，首先是下一頁的水質結果。我們水質業務部門的銷售額為 8.56 億美元，年增 7%。匯率帶來了 140 個基點的利好，而收購則在 Aquafides 的推動下貢獻了 30 個基點的成長。

Core sales grew 5.3% year-on-year. Higher volume drove 360 basis points of core sales growth and price contributed 170 basis points. Water quality's volume growth was driven by strong demand for water analytics and municipalities and water treatment solutions in our industrial end markets. And to a lesser extent, we also saw growth in UV treatment installations.

核心銷售額較去年同期成長5.3%。銷售成長帶動核心銷售成長 360 個基點，價格上漲貢獻了 170 個基點。水質業務量的成長得益於工業終端市場對水質分析、市政和水處理解決方案的強勁需求。此外，紫外線處理裝置的安裝量也有所成長，但增幅較小。

Water Qualities recurring sales grew high single digits year-over-year, and equipment sales were up more than 3% year-on-year. Adjusted operating profit increased 13% over the prior year period to $225 million, and adjusted operating profit margin was 26.3%, an up 150 basis points versus the prior year. Overall, it was a very strong quarter for water quality, reflecting the attractive secular growth drivers in our end markets and the ability of our water quality team to create value through VES driver execution.

水質業務的經常性銷售額較去年同期成長了接近兩位數，設備銷售額較去年同期成長超過 3%。經調整後的營業利潤比上年同期成長 13% 至 2.25 億美元，經調整後的營業利潤率為 26.3%，比上年同期成長 150 個基點。總體而言，本季水質表現非常強勁，反映了我們終端市場中具有吸引力的長期成長動力，以及我們的水質團隊透過 VES 驅動因素執行創造價值的能力。

Moving to our PQI segment on the next page. Sales in our PQI segment grew 6.9% year-over-year to $548 million in the third quarter. Currency was a 200 basis point tailwind. Contribution from acquisitions was 30 basis points year-over-year, primarily driven by trade gains. This was net of the AVT divestiture, which was completed in Q1 2025.

下一頁將進入我們的PQI部分。第三季度，我們 PQI 業務部門的銷售額年增 6.9%，達到 5.48 億美元。匯率波動帶來了200個基點的利多。收購帶來的收益年增 30 個基點，主要得益於貿易收益。這是扣除 AVT 剝離後的淨額，該剝離已於 2025 年第一季完成。

Core sales grew 4.6% with price contributing 3.3% growth, helping offset tariff-related cost increases. Volume contributed 1.3% to core sales growth. PQI core sales growth was broad-based across most of our key end market verticals and geographies. Recurring revenue grew high single digits year-over-year, led by consumables and software.

核心銷售額成長了 4.6%，其中價格成長貢獻了 3.3%，有助於抵銷關稅相關的成本增加。銷量對核心銷售成長貢獻了1.3%。PQI 核心銷售成長在我們大多數主要終端市場垂直領域和地區都實現了廣泛成長。經常性收入年增接近兩位數，主要得益於耗材和軟體的成長。

And equipment sales were up just over 3%, driven by sales of marking and coding equipment. We continue to see strong demand for Videojet's refreshed technology portfolio. Equipment sales were strong across continuous inkjet and laser technologies with particularly high customer demand for the unite marketing system that we introduced at the end of last year.

設備銷售額成長略高於 3%，主要得益於打標和編碼設備的銷售。我們持續看到市場對Videojet更新後的技術產品組合的強勁需求。連續噴墨和雷射技術的設備銷售強勁，尤其是客戶對我們去年底推出的聯合行銷系統的需求非常高。

Our UV laser marking system is an attractive alternative to thermal transfer overlay technology. Additionally, it is helping our customers transition to more sustainable, flexible, full packaging solutions. From an acquisition perspective, core sales growth for trace gains continued to exceed 20% year-over-year. We continue to invest in trade schemes to scale the business and further penetrate the CPG market to create long-term value.

我們的紫外線雷射打標系統是熱轉印技術的理想替代方案。此外，它還幫助我們的客戶過渡到更永續、更靈活、更全面的包裝解決方案。從收購角度來看，微量增益的核心銷售額年增持續超過 20%。我們將繼續投資貿易計劃，以擴大業務規模，進一步滲透消費品市場，創造長期價值。

We believe the transition to digital, connected workflows in the food and beverage industry is poised for strong growth over the next decade. The combination of Esko and TraceGains provides us a unique opportunity to deliver value to our consumer brands as they digitize workflows with connected data across product development, compliance and packaging.

我們相信，未來十年食品飲料產業向數位化、互聯工作流程的轉型將迎來強勁成長。Esko 和 TraceGains 的合併為我們提供了一個獨特的機會，讓我們能夠為我們的消費品牌創造價值，幫助他們在產品開發、合規性和包裝方面實現工作流程的數位化，並利用互聯數據。

Looking at PQI's profitability for the third quarter, we reported $139 million of adjusted operating profit, resulting in an adjusted operating profit margin of 25.4%. The year-over-year change in PQI's profitability reflects the impact from acquisitions, strategic growth investments and to a lesser extent, tariff mitigation costs.

從 PQI 第三季的獲利情況來看，我們報告了 1.39 億美元的調整後營業利潤，調整後營業利潤率為 25.4%。PQI 的獲利能力年比變化反映了收購、策略性成長投資以及（在較小程度上）關稅緩解成本的影響。

Specifically, we continue to enhance our manufacturing utility with new production lines in strategic locations to improve our ability to serve customers in every region. We are in the final stages of completing these product line ships. Overall, we are pleased with the growth of PQI and progress on our strategic investments during the quarter.

具體而言，我們將繼續在戰略要地增設生產線，以提升我們的製造能力，從而提高我們服務各地區客戶的能力。我們已進入這些產品線船舶建造的最後階段。總體而言，我們對本季 PQI 的成長以及策略投資的進展感到滿意。

Turning now to our balance sheet and cash flow. In the third quarter, we generated $270 million of cash from operations. We invested $12 million in capital expenditures. As a result, free cash flow was $258 million for the quarter or 108% conversion of net income. At the end of the third quarter, gross debt was about $2.7 billion and cash on hand was nearly $1.8 billion. Net debt was just under $900 million, resulting in net leverage of 0.7 times.

現在來看我們的資產負債表和現金流量表。第三季度，我們從經營活動中獲得了 2.7 億美元的現金。我們在資本支出方面投資了1200萬美元。因此，該季度自由現金流為 2.58 億美元，相當於淨收入的 108%。第三季末，總負債約 27 億美元，手上現金接近 18 億美元。淨債務略低於 9 億美元，淨槓桿率為 0.7 倍。

Our financial position is strong and provides us the flexibility in how we deploy capital to create long-term shareholder value. We will remain prudent and disciplined in our approach to capital allocation. Over the long term, our goal is to continue to create shareholder value with a bias towards M&A. As Jennifer mentioned, we have an attractive pipeline of opportunities in both water quality and PQI.

我們的財務狀況穩健，使我們能夠靈活運用資本，為股東創造長期價值。我們將繼續秉持審慎自律的資本配置方式。從長遠來看，我們的目標是繼續創造股東價值，並專注於併購。正如詹妮弗所提到的，我們在水質和 PQI 領域都有很有吸引力的發展機會。

Looking now at our guidance for the fourth quarter and full year. Our underlying assumptions have been updated to reflect our current fee of demand in our end markets. Our most recent assessment of trade policies and currency rates as of October 3.

現在讓我們來看看我們對第四季和全年的業績預期。我們已更新基本假設，以反映我們目前在終端市場的需求成本。我們截至10月3日對貿易政策和匯率的最新評估。

Beginning with sales. For the fourth quarter, we are targeting total sales growth in the mid-single digits year-over-year. On a sequential basis, we expect total sales to be roughly in line with the third quarter, even with fewer shipping days. This assumes a year-over-year currency benefit of approximately 3% and core sales growth in the low single digits.

從銷售開始。第四季度，我們的目標是實現年成長個位數中段的成長。從環比來看，即使出貨天數減少，我們預計總銷售額也將與第三季大致持平。這假設年比匯率收益約為 3%，核心銷售額成長在個位數低點。

Core sales growth is expected to be negatively impacted by three fewer shipping days versus the prior year period. The fewer shipping days represent a little more than 2.5% impact on Q4 core sales versus the prior year period. For the full year 2025, our assumption for core sales growth remains mid-single digits for the total company. This assumes approximately 5% core sales growth in each segment for the full year. Favorable currency rates are expected to benefit full year sales growth by a little more than 1% and the impact from acquisitions and divestitures is expected to be neutral on the top line for the full year.

核心銷售成長預計將受到出貨天數比去年同期減少三天的負面影響。與去年同期相比，出貨天數減少對第四季核心銷售額的影響略高於 2.5%。對於 2025 年全年，我們對公司整體核心銷售額成長的預期仍為個位數中段。這假設全年各細分市場的核心銷售成長約為 5%。有利的匯率預計將使全年銷售額成長略高於 1%，而收購和剝離對全年營收的影響預計將是中性的。

Looking at adjusted operating profit margin, in the fourth quarter, we expect to deliver approximately 30 basis points of margin expansion versus the prior year period. And for the full year, we expect adjusted operating profit margin in the range of flat to up 25 basis points year-over-year. But adjusted earnings per share, our fourth quarter guidance is $0.95 to $0.98 per share, and we raised our full year adjusted EPS guidance to $3.82 per share to $3.85 per share. We are now expecting adjusted EPS to grow high single digits for the full year.

從調整後的營業利潤率來看，我們預計第四季利潤率將比上年同期成長約 30 個基點。我們預計全年調整後的營業利潤率將與上年持平或成長 25 個基點。但就調整後的每股盈餘而言，我們第四季的預期為每股 0.95 美元至 0.98 美元，我們將全年調整後的每股盈餘預期上調至每股 3.82 美元至 3.85 美元。我們現在預計全年調整後每股收益將實現高個位數成長。

Finishing up our guidance update with free cash flow conversion. Based on our strong conversion through the first nine months, we raised our guidance for free cash flow conversion to approximately 100% of GAAP net income. That concludes my prepared remarks.

最後，我們以自由現金流轉換率來結束本次指導更新。基於前九個月的強勁轉換率，我們將自由現金流轉換率的預期提高到 GAAP 淨收入的約 100%。我的發言稿到此結束。

At this point, I will turn the call over to Jennifer for closing remarks.

接下來，我會把電話交給詹妮弗，請她作總結發言。

Thanks, Sameer. In summary, we continue to demonstrate Veralto's ability to successfully navigate dynamic macroeconomic environments with confidence. Our high-performance culture grounded in VES has helped to deliver mid-single-digit core sales growth and double-digit growth in adjusted earnings per share through the first 9 months of 2025. We expect to deliver another quarter of year-over-year growth in the fourth quarter given the essential need for our technology solutions, our durable business model and the secular growth drivers across our edge markets. Our financial position continued to strengthen in the third quarter, and we are prudently evaluating opportunities to create shareholder value within our disciplined capital allocation framework.

謝謝你，薩米爾。總之，我們繼續證明 Veralto 有能力自信地成功應對動態的宏觀經濟環境。我們以 VES 為基礎的高績效文化，幫助公司在 2025 年前 9 個月實現了中等個位數的核心銷售額成長和兩位數的調整後每股收益成長。鑑於市場對我們技術解決方案的迫切需求、我們穩健的商業模式以及我們邊緣市場的長期成長動力，我們預計第四季將再次實現年成長。第三季度，我們的財務狀況持續增強，我們正在審慎地評估在嚴格的資本配置框架內創造股東價值的機會。

We are excited about the bright future ahead for Veralto, its associates and the opportunities in front of us to help customers solve some of the world's biggest challenges in delivering clean water, safe food and trusted essential goods. That concludes our prepared remarks. And at this time, we are happy to take your questions.

我們對 Veralto 及其員工的美好未來感到興奮，也對擺在我們面前的機會感到激動，我們將幫助客戶解決世界上在提供清潔水、安全食品和值得信賴的必需品方面面臨的一些最大挑戰。我們的發言稿到此結束。此時，我們很樂意回答您的問題。

(Operator Instructions) Deane Dray, RBC Capital Markets.

（操作員說明）迪恩‧德雷，加拿大皇家銀行資本市場。

Thank you. Good morning, everyone. Nice job on margins and free cash flow. Really good to see that quality coming through. Just start off with a couple of kind of nuanced questions. regarding the macro. Can you clarify about tariffs? You were -- there was a bit of a mismatch on the last quarter on the timing of pricing. So do you feel like you've caught up there and then anything about the government shutdown that you may be seeing on the water quality side, any ripple effects? Thanks.

謝謝。各位早安。利潤率和自由現金流方面做得很好。很高興看到這樣的特質體現出來。先從幾個比較細緻的問題開始，關於宏觀經濟方面的問題。您能解釋一下關稅方面的問題嗎？確實如此——上個季度在定價時間上存在一些不匹配。那麼，您覺得您已經了解這方面的情況了嗎？關於政府停擺，您在水質方面是否觀察到任何連鎖反應？謝謝。

Yes, Deane, if you got to look at on the pricing side, at this point, the teams have taken really good actions from a strategic perspective, really working with the customers on the pricing front and you started seeing that flowing through the numbers, PQI a little bit more than water quality.

是的，迪恩，如果你從定價方面來看，目前團隊已經從戰略角度採取了非常好的行動，在定價方面與客戶進行了真正的合作，你開始看到這些成果體現在數字上，PQI 的提升比水質方面略好一些。

So at this point, I think on the pricing front, we feel like we're in a good place to help offset the tariff any kind of -- but again, pricing is one of the elements. As you know, we've been working on the supply chain production changes as well to help offset any of the impact on tariffs at this point in a pretty good place, but the environment is volatile and we're staying on top.

所以目前，我認為在定價方面，我們感覺我們處於一個有利位置，可以幫助抵消任何形式的關稅——但再次強調，定價是其中一個因素。如您所知，我們也一直在努力調整供應鏈生產，以幫助抵消關稅的影響。目前情況還不錯，但市場環境瞬息萬變，我們會密切關注事態發展。

Yes. And I would say relative to your second question, Dean, we watch the government environment closely. At this point, we've really not seen any material impact. So it's steady as it goes, we're running the business. continue to have critical needs for clean water, safe food and trust essential goods.

是的。至於你的第二個問題，迪恩，我想說，我們會密切關注政府環境。目前來看，我們還沒有看到任何實質的影響。所以一切都在穩定地進行，我們的業務也正常運作。對清潔用水、安全食品和值得信賴的基本物資仍然有著至關重要的需求。

Good to hear. And then just a follow-up on the regions. Any specific comments about China, the pace of demand. There's been -- some of your peers have had some softness there.

很高興聽到這個消息。然後是對各地區的後續情況進行一些跟進。關於中國市場以及需求成長速度，您有什麼具體評論嗎？確實——你們的一些同齡人在這方面有些軟弱。

Yes. I mean, China is effectively performing as we expected to. We had an easier comp here relative in Q3. But sequentially, if you look Q2, Q3, we're not really seeing any meaningful changes to our total sales in China. And I would say our team continues to do a great job of executing well in what has really become a more mature market.

是的。我的意思是，中國的表現其實符合我們的預期。第三季相較之下，我們這邊的比較基數要小。但從季度到季度來看，如果你看一下第二季和第三季度，我們並沒有看到中國市場的總銷售額發生任何實質的變化。我認為，我們的團隊在日益成熟的市場中，依然表現出色，執行力強。

Got it. Appreciate it. Thank you.

知道了。謝謝。謝謝。

Andy Kaplowitz, Citi

安迪‧卡普洛維茨，花旗集團

Hey, good morning, everyone. So Jennifer, you've had many quarters in a row, strengthen your industrial-focused water quality business. So could you talk about the durability of that strength into '26, especially given your comments regarding data center-related growth. Can you size that particular business at this point and impacts that you expect moving forward?

嘿，大家早安。所以詹妮弗，你已經連續多個季度加強了你以工業水質為重點的業務。那麼，您能否談談這種強勁勢頭能否持續到 2026 年，特別是考慮到您對資料中心相關成長的評論。您能否評估一下該業務目前的規模，以及您預計其未來會受到哪些影響？

Yes. Data centers for us continues to remain a strategic priority. We're seeing strong double-digit growth here from sales to both existing customers and new builds, mostly driven by the big five tech companies. As you know, data centers tend to consume large amounts of water and operators are looking to us to maintain uptime while reducing both water and power consumption. And so our involvement really starts as early as preconstruction with consulting services that we provide to maximize energy efficiency and water conservation, including the design of the water treatment train.

是的。資料中心對我們來說仍然是一項策略重點。我們看到，無論是現有客戶還是新客戶的銷售額，都實現了強勁的兩位數成長，這主要得益於五大科技公司的推動。如您所知，資料中心往往會消耗大量的水，營運商希望我們能夠在保持正常運作時間的同時，減少水和電力的消耗。因此，我們的參與實際上從施工前就開始了，我們提供諮詢服務，以最大限度地提高能源效率和節約用水，包括水處理系統的設計。

So great opportunity here in data centers themselves. But I would also say, if you zoom out, data centers are just part of the AI value chain. Water treatment that we provide to the market, these technologies play a critical role in chip manufacturing, power generation, mining and other critical raw materials needed to build and operate these data centers.

所以資料中心本身就蘊藏著巨大的機會。但我也想說，從更宏觀的角度來看，資料中心只是人工智慧價值鏈的一部分。我們向市場提供的水處理技術，在晶片製造、發電、採礦以及建造和運營這些資料中心所需的其他關鍵原材料領域發揮著至關重要的作用。

So we play in a broad space here in terms of the entire value chain leading up to data centers. I would say, relative to the opportunity, very big opportunity for us. We'll remain strategically focused on it. It is a smaller portion of our business, but it's got substantial runway for growth going forward.

因此，我們在這裡所處的領域非常廣泛，涵蓋了通往資料中心的整個價值鏈。我認為，就這個機會而言，這對我們來說是一個非常大的機會。我們將繼續從戰略上重點關注它。雖然它在我們業務中所佔比例較小，但未來仍有龐大的成長空間。

That's helpful. And then, Sameer, you lowered the 25% margin guidance slightly. Was that all PQI tariff-related pass-through or was it the incremental investments you're making? When you look out a bit into '26, would you expect to resume more normal incrementals, at least well into the 30s as pre-our algorithm?

那很有幫助。然後，薩米爾，你稍微下調了25%的利潤率預期。這些費用都是與PQI關稅相關的轉嫁費用，還是包括你們正在進行的增量投資？展望 2026 年，您是否預期成長速度會恢復正常，至少在 30 年代中期能恢復到我們演算法實施之前的速度？

Yes, Andy, as you kind of look at the full year margin guide, I know it does reflect the first nine months of the performance and what we expect Q4. You're absolutely right as we're going to look at Q4 at this point, the tariff stuff should be lapping, but there's a little bit of a math impact us from the price and cost side, given you're offsetting the dollar impact.

是的，安迪，當你查看全年利潤率預期時，我知道它反映了前九個月的業績以及我們對第四季度的預期。您說得完全正確，我們現在要看的是第四季度，關稅的影響應該會逐漸消失，但考慮到您要抵消美元的影響，價格和成本方面還是會受到一些影響。

And as you know, in Q4, we typically tend to make some investments as we kind of drive the efficiency set up for the next year. So some of that timing will hit us in Q4 as well. So that's really kind of driving -- but most of that, Andy, as you're absolutely right, from the PQI side than on the water side, water has had a great year with a great fall through, and we expect that to continue.

如您所知，在第四季度，我們通常會進行一些投資，以便為來年提高效率做好準備。所以，部分時間因素也會在第四季對我們造成影響。所以這確實是主要驅動因素——但安迪，正如你完全正確的那樣，從 PQI 的角度來看，而不是從水質的角度來看，水質今年表現很好，秋季水量也很大，我們預計這種情況會繼續下去。

But as you look at the margin side, right, for the full year from an EPS perspective, and as you go to look down the P&L, we feel really good. There's a little higher assumption on the sales volume, interest expense and some of the below-the-line tax rate should be benefit to us as well. So that's why we felt confident despite the margin raising the EPS guide.

但從利潤率的角度來看，從每股盈餘的角度來看，以及從損益表來看，我們感覺非常好。銷售額、利息支出和部分線下稅率的預期略高，這對我們也應該是有利的。所以，儘管利潤率上調了每股盈餘預期，我們仍然充滿信心。

Thank you guys.

謝謝大家。

Andrew Buscaglia, BNP Paribas.

安德魯·巴斯卡利亞，法國巴黎銀行。

Hey, good morning, everyone. I just wanted to check on some of your trends were really strong in the quarter, especially in North America, especially PQI within North America. I was surprised to see that. how much of this would you attribute to pull forward?

嘿，大家早安。我只是想確認一下，你們的一些趨勢在本季表現非常強勁，尤其是在北美，特別是北美的 PQI。看到這個我感到很驚訝。你認為其中有多少是拉動前進的結果？

And clearly, I mean there's a lot of noise into Q4, but what's your sense on sequential trends in PQI if you're seeing any impact one way or the other from CPG markets?

顯然，第四季度有很多幹擾因素，但如果您看到消費品市場對 PQI 產生任何影響，您對 PQI 的連續趨勢有何看法？

Yes, we really don't see any meaningful pull forward. We've had exceptionally strong commercial execution in our PQI businesses in North America, particularly from Videojet. And Videojet's performance has not only been on the back of strong commercial execution, but also on the back of the products launched in the last year. So we're seeing strong CIJ and laser sales as well as sales in the secondary packaging. So customers are needing increased case level traceability tied to the Food Safety Act, that's driving some of that strength.

是的，我們確實沒有看到任何實質的進展。我們在北美的 PQI 業務取得了非常強勁的商業執行力，尤其是 Videojet 的業務。Videojet 的出色表現不僅得益於強大的商業執行力，也得益於去年推出的產品。因此，我們看到噴墨列印和雷射列印的銷售額以及二次包裝的銷售額都很強勁。因此，客戶需要根據《食品安全法》提高個案等級的可追溯性，這在一定程度上推動了這種趨勢。

And we're just seeing higher share of wallet with existing customer base really driven by new technologies and go-to-market strategies on their part. So it's a great job by our commercial teams executing on our strategic price initiatives as well.

我們看到，現有客戶群的錢包份額不斷提高，這確實是由新技術和市場推廣策略推動的。因此，我們的商業團隊在執行策略定價計畫方面也做得非常出色。

Yes. Great. And in water quality, margins there have exceeded my expectations at least this year and it seems like past investments are paying off. I'm wondering, this kind of -- was the case last year in PQI, but I'm wondering, going forward, do we need to see more increased investments in either segment? Or is this sort of a sustainable run rate for both segments in terms of margins into 2026?

是的。偉大的。在水質方面，至少今年的收益已經超出了我的預期，看來過去的投資正在獲得回報。我想知道，去年 PQI 的情況就是這樣，但我想知道，展望未來，我們是否需要增加對這兩個領域的投資？或者，就利潤率而言，這是否是這兩個業務板塊到 2026 年可持續的運行速度？

Yes, Andrew, let's start with water quality comment first. On the water quality side, you're absolutely right, great execution by the team as we kind of think on the margins side. Really, very disciplined the ES driven execution and you're seeing the benefit of that on the fall-through side. PQI this year had a little bit of a heavy lift as you're going to think about some of the tariff-related moves we had to make, so you're seeing that.

好的，安德魯，我們先從水質問題開始吧。在水質方面，您說得完全正確，團隊執行得非常出色，因為我們考慮的重點在於細節。ES 驅動的執行確實非常嚴謹，在故障復原方面也看到了好處。今年的 PQI 面臨一些挑戰，因為考慮到我們必須採取的一些與關稅相關的措施，所以你也看到了這一點。

But as you kind of move forward, the way to think about the PQI margin is, the incremental margins as we move forward. Should be driving that 30% to 35% kind of a fall through as you have laid out in the long-term value creation algorithm, and that kind of translates into '25 to 50 bps of OMX, right? So we expect that.

但隨著我們不斷前進，看待 PQI 利潤率的方式是，隨著我們不斷前進，利潤率也會不斷提高。應該會像你在長期價值創造演算法中闡述的那樣，導致 30% 到 35% 的跌幅，這大概會轉化為 OMX 的 25 到 50 個基點，對吧？所以我們預料到了這一點。

Now there may be some one-off items that we had this year that should be offset next year. So that should benefit. But we'll take all the puts and takes and in February, talk about the '26 guidance.

今年可能會有一些一次性項目，這些項目應該會在明年得到抵消。這樣應該會有好處。但我們會權衡所有利弊，並在二月討論 2026 年的業績指引。

John McNulty, BMO Capital Markets.

John McNulty，BMO資本市場。

Good morning. Thanks for taking my question. Maybe the first one just in water. So it seems like on the pricing side, you've kind of been gradually creeping higher. I guess should we continue to see that pricing accelerate as we go into the back of -- like into 4Q and into the early part of 2026. And then also, can you give us a little bit of color as to if there's much variation between the subdivisions in water.

早安.謝謝您回答我的問題。也許第一個只是在水裡。所以看起來，在定價方面，你們的價格一直在逐步上漲。我想我們應該會看到，隨著時間推移，價格上漲的趨勢會持續下去——例如到了第四季末和 2026 年初。另外，您能否簡單介紹一下水域各細分區域之間是否有很大差異？

John, just to clarify, you're inquiring about the pricing differences in the subdivisions in water?

約翰，我確認一下，你想問的是水岸不同地塊的價格差異嗎？

That's right.

這是正確的。

Okay. Yes. We don't really delineate there at that level. But what we will say is we've had strong price execution on the back of covering or some anticipated tariff activity, but both price and volume on water has been equally balanced, which is pretty fantastic in the environment that we're in.

好的。是的。我們在那個層面上並沒有真正進行劃分。但我們可以說的是，由於一些預期中的關稅活動，我們的價格執行情況良好，但水價和銷售都保持了平衡，這在我們目前的環境下是非常了不起的。

Pricing going forward is going to look a lot like our frame that we have talked about in prior calls relative to 100 basis points to 200 basis points of contribution in the growth number coming from price. But having said that, we believe we're going to be in a strong position here to deliver price in the fourth quarter.

未來的定價將與我們先前電話會議中討論過的框架非常相似，即價格對成長數字的貢獻為 100 到 200 個基點。但即便如此，我們相信我們在第四季仍將處於有利地位，能夠實現預期的價格目標。

Okay. Fair enough. And then maybe just with regard to your cash flow. So you've you did incredibly well in 3Q, it looks like a solid outlook for 4Q. The cash is definitely starting to build on the balance sheet. Your leverage is pretty anemic at this point. I guess do you see opportunities that you think in the next six to nine months, you may be able to actually get across the finish line when it comes to M&A?

好的。很公平。然後，或許還可以談談你的現金流。所以你們第三季表現非常出色，第四季的前景看起來也很樂觀。資產負債表上的現金確實開始累積了。你目前的談判籌碼非常有限。我想問的是，您是否看到未來六到九個月內，在併購方面有可能最終完成交易的機會？

I know these are hard to time, but capital efficiency seems like it's starting to maybe drift a little bit lower just given how successful you've been with the cash you've been building up. So maybe a little bit of color on that.

我知道這些很難把握時機，但考慮到你累積的現金如此成功，資本效率似乎開始稍微下降了。所以，或許可以稍微補充一些細節。

Yes. First on the cash side and the free cash flow side, really proud of all the execution of the teams across our businesses as you kind of think about the quality of the earnings, working capital management and that kind of flowing into the free cash flow. So really great execution is really driving the cash generation and ultimately, as you said, cash is accumulating nicely on the balance sheet. Now our intention is to deploy that capital, to create long-term value. As you've heard from us in the past, look, the pipeline is pretty active. We are very actively looking at the number of opportunities, but we're going to stay disciplined.

是的。首先，就現金流和自由現金流而言，我為我們所有業務團隊的執行力感到非常自豪，因為你會考慮到獲利品質、營運資本管理以及這些因素如何轉化為自由現金流。所以，出色的執行力確實推動了現金流的產生，最終，正如你所說，資產負債表上的現金累積情況良好。現在我們的目標是運用這些資金，創造長期價值。正如我們之前向您透露的那樣，目前管道運行非常活躍。我們正在積極尋找各種機會，但我們會保持自律。

Are you going to stay true to our framework of market company valuation. So more to come. But as we kind of think about our cash, we'll look at all the opportunities to deploy it, to create value for the shareholders.

你們是否會堅持我們現有的市場公司估值框架？敬請期待更多內容。但當我們考慮如何運用現金時，我們會考慮所有可以部署現金的機會，為股東創造價值。

Got it. Thanks very much for the call.

知道了。非常感謝您的來電。

Will Grippin, Barclays.

威爾·格里平，巴克萊銀行。

Great, good morning. Thanks for the time here. Just one quick one for me, another one on M&A. I know it's still early, but I would be curious if you have any updates on your recent investment in Emerald Ventures and maybe how some of those early discussions or opportunities being presented to are working?

太好了，早安。感謝您抽出時間。我這裡就簡單問一個問題，也是關於併購的。我知道現在還為時過早，但我很想知道您最近對 Emerald Ventures 的投資是否有任何最新進展，以及之前的一些討論或機會進展如何？

Yes. We remain excited about our partnership with Emerald, and they are vetting a number of technologies in partnership with us that address treatment monitoring and emerging contaminants. It's steady as she goes here. We continue to work with them on vetting and looking at opportunities there. And we'll let you know when we have something to report.

是的。我們仍然對與 Emerald 的合作感到興奮，他們正在與我們合作審查多項技術，這些技術旨在解決處理監測和新興污染物問題。她在這裡進展得很順利。我們繼續與他們合作進行背景審查，並尋找在那裡的機會。如有消息，我們會及時通知您。

Appreciate it. Thanks, everybody.

謝謝。謝謝大家。

Nathan Jones, Stifel.

Nathan Jones，Stifel。

Good morning, everyone. I guess first question, Jennifer, six months ago, when tariffs had just been announced, you were pretty excited about the potential for Veralto to use the disruption from Paris to gain market share. I'm wondering if six months later, you can maybe talk about any opportunities that the teams have taken advantage of and how that's played out relative to expectations over the last six months?

各位早安。珍妮弗，我想問的第一個問題是，六個月前，當關稅剛剛宣佈時，你對 Veralto 利用巴黎氣候大會造成的混亂來獲取市場份額的可能性感到非常興奮。我想知道六個月後，您能否談談各隊都抓住了哪些機會，以及過去六個月裡這些機會的實現情況與預期相比如何？

Yes. I think we're fortunate enough to really get ahead of this relative to our three-pronged strategy of strategic pricing, supply chain and procurement changes and product line shifts. The product line shifts that we've made are really no regret moves, right?

是的。我認為我們很幸運，能夠憑藉戰略定價、供應鏈和採購變革以及產品線調整這三管齊下的策略，真正領先於這一趨勢。我們所做的產品線調整真的是明智之舉，對吧？

So moving product lines closer to where customers are offsetting tariff impact is something that we have been nimble in executing VES has helped support do that. Certainly, if you look at price volume balance here, it would suggest on the volume side that we're holding up well with regard to being able to continue to penetrate markets regionally where localization provides good strategic competitive advantage for us.

因此，我們將產品線轉移到更靠近客戶的地方，以抵消關稅的影響，這是我們一直靈活執行的措施，VES 也為此提供了支援。當然，如果你看這裡的價格銷售平衡，你會發現，從銷售量來看，我們在繼續滲透區域市場方面表現良好，在地化為我們提供了良好的策略競爭優勢。

So as you well know, we've got a warehouse now here in North America for our Trojan business. It's headquartered out of Canada. They continue to have great opportunities here in the US. And so all of these sort of initiatives that we've taken here have gone the way we thought them to, and we're seeing good opportunity to be closer to our customers and serve them locally.

如您所知，我們現在在北美為我們的 Trojan 業務設立了一個倉庫。其總部位於加拿大。他們在美國仍然擁有很多機會。因此，我們採取的所有這些措施都達到了我們預期的效果，我們看到了與客戶更緊密聯繫、在當地為他們提供服務的良好機會。

Thanks for that. I guess my follow-up is going to be PQI and North America. I mean it's 3.3% of price in PQI. I assume that's obviously skewed to North America, given the tariff environment. So there's a pretty heavy pricing in PQI there. Maybe you could just talk a little bit more about any opportunities there are for nonprice mitigation actions in PQI. I guess the tariff impact was a little bit higher than I expected.

謝謝。我想我接下來的工作重點應該是PQI和北美地區。我的意思是，它佔 PQI 價格的 3.3%。考慮到關稅環境，我認為這顯然對北美地區更有利。所以PQI的定價相當高。或許您可以再多談談在 PQI 中有哪些非價格緩解措施的機會。看來關稅的影響比我預期的還要大。

And then does that present an opportunity to maybe mitigate some of the tariff impacts keep some of the price and have that drop through to margins as we move into 2026 Tax?

那麼，這是否為我們提供了一個機會，或許可以減輕一些關稅影響，保持部分價格，並在我們進入 2026 年稅收時期時降低利潤率？

Yes. I would say relative to PQI in North America, we are seeing great balance between price and volume within our Marketing & Coatings segment. And that is largely on the back of Videojet products launched last year in terms of new CIJ and laser products, including secondary packaging products that actually tie to the Food Safety Act that I spoke about earlier.

是的。我認為，相對於北美地區的 PQI 而言，我們在行銷和塗料業務部門實現了價格和銷售之間的良好平衡。這主要得益於去年推出的 Videojet 產品，包括新的噴墨印刷和雷射產品，以及與我之前提到的《食品安全法》相關的二次包裝產品。

So confident in terms of the ongoing sort of demand and stability of these products. And I think what we're seeing here in North America is those products that were newly launched last year are really starting to gain traction. So great execution by our commercial teams. And we will continue to monitor the environment as we go forward.

我對這類產品的持續需求和穩定性充滿信心。我認為我們在北美看到的是，去年新推出的那些產品真的開始獲得市場認可了。我們的商業團隊執行得非常出色。我們將繼續密切關注環境狀況。

Thanks for taking the questions.

謝謝您回答問題。

Jacob Levinson, Melius Research.

Jacob Levinson，Melius Research。

Good morning, everyone. Just tacking on Andy's question earlier on the data center side of things. Is there any way you could frame for us the content intensity or the opportunity that you would have at Centre or Trojan relative to some of those other types of nonres facilities that they operate in?

各位早安。我補充一下 Andy 之前關於資料中心方面的問題。您能否為我們描述一下，相對於他們經營的其他一些非住宅設施，您在 Centre 或 Trojan 所獲得的學習內容強度或機會有何不同？

I'm just trying to get a sense of how a data center would compare to, say, a power plant or a chemical plant. I'm sure they all use a lot of water, but it's not entirely clear which ones would be more intensive for what you sell?

我只是想了解一下資料中心與發電廠或化工廠相比有何不同。我確信它們都需要大量用水，但對於你銷售的產品來說，哪些用水量更大，這一點並不完全清楚。

Yes. Thanks for the question, Jake. I think the way to think about this is, our commercial teams are really skilled at pivoting where the opportunities are in any given quarter or a year. We are seeing double-digit growth in data centers and in applications closely tied to data centers.

是的。謝謝你的提問，傑克。我認為應該這樣理解：我們的商業團隊非常擅長在任何季度或年度內抓住機遇，並靈活調整策略。我們看到資料中心以及與資料中心密切相關的應用程式都實現了兩位數的成長。

We don't publicly disclose sales by vertical market, but we can say that we feel very good about our current position and our opportunity to continue to grow double digits in these areas going forward.

我們不公開披露按垂直市場劃分的銷售額，但我們可以說，我們對目前的狀況以及未來在這些領域繼續實現兩位數增長的機會感到非常滿意。

Yes. And Jake, the other way to think about it also is, as you kind of think about the applications within the data center, there are multiple touch points where our services kind of get into. Think about the data center, some of the key issues are around reducing the water and power consumption both. So we play a part on both sides of the equation.

是的。傑克，換個角度想，當你思考資料中心內的應用程式時，你會發現我們的服務會透過多個接觸點進入其中。想想資料中心，其中一些關鍵問題在於如何降低水和電的消耗。所以我們在等式的兩邊都扮演著一定的角色。

And also the other part of the data centers is to really think about the uptime, right? Maintaining uptime is critical in the data center infrastructure, we're all going to learn based on some of the news that you've seen in the last couple of weeks.

資料中心的另一個重要方面是認真考慮正常運行時間，對吧？保持資料中心基礎設施的正常運作時間至關重要，從過去幾週大家看到的一些新聞中，我們都會明白這一點。

So as you kind of think about minimizing corrosion, scaling biological growth, there are tons of applications as you're going to think about and expertise that is needed in making sure the data centers maintain their uptime and our country team playing the phenomenal role in helping our customers achieve that.

因此，當您考慮如何最大限度地減少腐蝕、防止生物生長時，您會發現有很多應用，並且需要專業知識來確保資料中心保持正常運行時間，而我們的國家團隊在幫助客戶實現這一目標方面發揮著巨大的作用。

Okay. That's helpful. And just one quick one on TraceGains. It sounds like that has been working out nicely for you. Maybe you can just help us understand the puts and takes on the deal as we come out, I think you've had it now for almost a year now. And I think part of the thesis at least was that there was an opportunity maybe to pull in some of traditional products into that smaller mid-sized CPG segments. Any color there would be helpful.

好的。那很有幫助。最後再簡單提一下 TraceGains。聽起來這對你來說效果不錯。或許您可以幫我們了解一下這筆交易的來龍去脈，我想您已經持有這筆交易將近一年了。我認為，至少部分論點是，或許有機會將一些傳統產品引入規模較小的中型消費品市場。任何顏色都會有所幫助。

Yes. We are incredibly happy with TraceGain's performance and the integration here has gone well. They are now at their first year anniversary. And so their growth rate greater than 20%, which has been in line with expectations, will go into the core growth calculus going forward. In terms of of opportunity there. Both TraceGains and Esko have been working together to integrate the digital backbone here that will create a single source of truth for all stakeholders in both the packaging and the product development workflow.

是的。我們對 TraceGain 的效能非常滿意，而且整合過程也很順利。他們今年是結婚一周年紀念日。因此，他們超過 20% 的成長率（與預期一致）將納入未來核心成長計算。就那裡的機會而言。TraceGains 和 Esko 一直攜手合作，致力於整合這裡的數位骨幹網，這將為包裝和產品開發工作流程中的所有利益相關者創建一個單一的真實來源。

So all of that is on track. We do believe that the CPG market is early in its digitization journey but there continue to be strong regulatory and consumer safety drivers there, making an attractive place for us. So TraceGains is doing great, strong grower for us. on track. We continue to invest in building out that business, but they are growth accretive to the profile.

所以一切都在按計劃進行。我們認為消費品市場仍處於數位轉型初期，但該市場仍有強大的監管和消費者安全驅動因素，這使其成為我們極具吸引力的市場。TraceGains表現非常出色，是我們公司強勁的成長股，一切進展順利。我們持續投資發展這項業務，但它們對公司形象的提升起到了增值作用。

Appreciate the color. Thank you. I'll pass it on.

欣賞這種顏色。謝謝。我會轉達的。

Brian Lee, Goldman Sachs.

Brian Lee，高盛集團。

Hey, good morning, everyone. Thanks for taking my questions. Just one more follow-up. I know we've talked a lot about margins in PQI. But if we think about the cadence, it seems like we're two quarters into tariffs hitting margins in this segment. So do we maybe not really fully lap the tariff impact until 2Q of '26? And is that kind of the way to think about when -- from a modeling perspective, we start to see PQI margins start to expand again year-on-year.

嘿，大家早安。謝謝您回答我的問題。還有一個後續問題。我知道我們在 PQI 中討論了很多關於利潤率的問題。但從節奏來看，關稅對該行業的利潤率造成衝擊似乎已經持續了兩個季度。所以我們可能要等到 2026 年第二季才能完全消除關稅的影響嗎？從建模的角度來看，我們何時開始看到 PQI 利潤率再次逐年擴大，這就是我們應該如何思考這個問題的嗎？

And maybe just to add on to that, when you think about pricing in PQI, is that -- I mean, I would assume it's the biggest lever, but the increase is enough to get back to kind of recapture the 100 basis points to 200 basis points of margin decline you've been seeing here at the end of the year. Or do you need productivity gains, mix, other factors to help there as well just any sense on the puts and takes there?

或許還要補充一點，在考慮 PQI 的定價時，我認為——我的意思是，我認為這是最大的槓桿，但增長足以彌補年底以來看到的 100 到 200 個基點的利潤率下降。或者，您需要提高生產力、優化產品組合、考慮其他因素，以及對這方面的優點和缺點有任何想法？

Thank you.

謝謝。

Yes. Brian, a lot of questions on back there, so let's go one by one, right? First, I think your instinct is right as we're going to think about when we start lapping up the impact from the tariff side from the -- all the actions perspective you're going to start seeing in the second quarter. I think that's a good way to think about that impact.

是的。布萊恩，後面有很多問題，那我們一個一個來，好嗎？首先，我認為你的直覺是對的，因為我們將開始考慮何時才能真正感受到關稅方面的影響——從所有你將在第二季開始看到的措施來看。我認為這是思考這種影響的好方法。

But overall, if you're going to think about the margin expansion, look, price is one of the impacts when we look at price versus the raw material costs and that we call it the PPV that expansion all the time. That is one of the -- definitely one of the factors that we're going to move into next year.

但總的來說，如果你要考慮利潤率擴張，那麼價格就是影響因素之一，當我們考慮價格與原物料成本的關係時，我們稱之為購買價格差異（PPV）擴張。那絕對是我們明年要著手考慮的因素之一。

But productivity is part of it, right, I guess we're going to think about the volumes that are coming through, they should be falling through at 30% to 35% kind of a range that itself should give us 25 bps to 50 bps kind of margin expansion as you're going to start looking at things moving forward. But there are some one of things as we kind of talked about the tariffs and the actions and the costs that come but mitigating those some of those -- one of those one-off things like that should be offsetting next year as well.

但生產力也是其中的一部分，對吧？我想我們會考慮銷量，銷量應該會下降 30% 到 35%，這個範圍本身應該能為我們帶來 25 到 50 個基點的利潤率擴張，因為我們接下來要開始關注其他方面。但正如我們之前討論的，關稅、相關措施以及由此產生的成本，有些事情需要採取措施來緩解——例如，一些一次性措施應該也能在明年得到抵消。

So lots of moving parts, but we feel really good about where the business is, the new products that come in, the acceptance we're seeing from the customers and the volume gains that you've seen. So really positive as we can think about our opportunity to expand the margins. to continue to expand the margins, I should say. So are you going to see us in February, kind of talking about that in more detail.

雖然涉及的環節很多，但我們對公司目前的業務狀況、新產品的推出、客戶的接受度以及銷售的成長都感到非常滿意。所以，考慮到我們有機會擴大利潤空間，或者更確切地說，繼續擴大利潤空間，這確實是一個積極的信號。所以，你們二月會來見我們嗎？我們會更詳細地談談這件事。

Okay, I appreciate all the color. I'll pass it on. Thank you.

好的，我很喜歡這些色彩。我會轉達的。謝謝。

Saree Boroditsky, Jefferies.

Saree Boroditsky，傑弗里斯。

Good morning. his is James on for Saree. Thanks for taking questions. I wanted to look at some reason for water quality. I think high-growth markets kind of underperformed other regions over the past few quarters, but it outperformed this quarter. So what are the kind of key factors kind of driving growth in these regions? And how do you see this slight trajectory like going forward for the next several quarters?

早安.我是James，今天要為大家介紹紗麗。謝謝回答問題。我想探究一下水質問題的原因。我認為過去幾季高成長市場的表現都遜於其他地區，但本季表現優於其他地區。那麼，推動這些地區成長的關鍵因素有哪些呢？您如何看待這種小幅成長趨勢在未來幾季的發展前景？

Yes. I mean I think we've had good strong growth really contributing from our high-growth markets. Certainly, China is no longer a drag here for us. First time in several quarters that we've seen growth from both of our segments there in China, and the team is doing a great job to execute commercially. We see continued strong growth here in Latin America. And I would say there's real upside and double-digit growth that we're seeing also from India and the Middle East.

是的。我的意思是，我認為我們取得了強勁的成長，這主要得益於我們高成長市場的貢獻。當然，中國對我們來說已經不再是拖累了。這是幾個季度以來我們首次在中國的兩個業務板塊都實現了成長，團隊在商業執行方面做得非常出色。我們看到拉丁美洲市場持續強勁成長。而且我認為，我們在印度和中東也看到了真正的成長潛力，實現了兩位數的成長。

India on the back of a rapidly growing middle class, what the infrastructure development there and so on. India still is a relatively small part of our overall enterprise as a percent of sales, but rapidly growing. And we've got a team on the ground there who's driving some great execution, both for our quality and for PQI. In the Middle East, it's -- everyone knows that they have considerable challenges with water and energy utilization and so on and so forth.

印度憑藉著快速壯大的中產階級，以及基礎建設等等，取得了長足發展。印度在我們整體企業的銷售額中所佔比例仍然相對較小，但成長迅速。我們在那裡有一支團隊，他們正在推動出色的執行工作，無論是在品質方面還是在產品品質改進方面。在中東，大家都知道他們在水資源和能源利用等方面面臨相當大的挑戰。

So there's great opportunities there as they look to drive recycle reclaim water as they focus on how to make the water that they do have last longer, recycle more of it and so on. So we think the secular drivers here for our high-growth markets are going to continue to remain strong. And certainly, the focus that we've had on executing commercially in those target regions has gone well.

因此，隨著他們致力於推動水資源回收利用，並專注於如何讓現有的水資源使用更長時間、回收更多水資源等等，這其中蘊藏著巨大的機會。因此，我們認為推動我們高成長市場的長期因素將繼續保持強勁。當然，我們一直專注於在這些目標地區進行商業推廣，而且進展順利。

Got it. Great color and great to hear that. And kind of moving on to recurring revenue, it kind of grew strongly like high single-digit in the quarter. Can you kind of discuss the drivers behind this growth? And do you expect recurring revenue to continue to outpace equipment sales growth going forward?

知道了。顏色真漂亮，聽到這個消息也很高興。再來看經常性收入，本季成長強勁，達到了接近兩位數的成長率。您能否談談推動這項成長的因素？您預期未來經常性收入的成長速度是否會持續超過設備銷售的成長速度？

Yes. I mean I think you've got to look at the relationship between equipment and consumables or recurring revenue over the cycle. They're going to be modest changes in which is the faster grower. But I would say in the main, we've got strong growth from both right now as in the case of PQI on our coding and marketing business, strong printer placements, and the inks and solvents and consumables to go with them. Same thing that we see on the water side, great instrument placement as well as the consumables that go with them.

是的。我的意思是，我認為你必須從週期的角度來看待設備和耗材或經常性收入之間的關係。哪種植物生長速度較快，將會出現一些小的變化。但總的來說，目前我們在編碼和行銷業務方面都取得了強勁成長，例如 PQI 在我們的編碼和行銷業務方面取得了顯著成長，印表機投放量也很大，而且與印表機配套的油墨、溶劑和耗材也銷售良好。這與我們在水上運動方面看到的情況一樣，儀器的擺放位置以及與之配套的耗材都非常出色。

So we've got a very sticky business, as you probably know, with regard to consumables and their relationship to the hardware that they support. I would also say we're starting to see some higher contributions from our software-based businesses. So if you look at our packaging color side, where you're starting to see our SaaS and annual revenue start clocking in here with both TraceGains and Esko, those are starting to be meaningful contributors as well.

正如您可能知道的那樣，我們在耗材及其與所支援的硬體之間的關係方面，面臨著一個非常棘手的問題。我還想說，我們開始看到軟體業務的貢獻增加。所以，如果你看看我們的包裝顏色，你會發現我們的 SaaS 和年度收入開始在這裡體現出來，TraceGains 和 Esko 都開始成為重要的貢獻者。

The only one more point I would add is that you're going to think about our instrument business as well, right? I mean there's a finite life, and that is a reoccuring business as well. So as you're going to think about the growth from the growth perspective. So that's nice add on as we can continue to move forward.

我唯一要補充的一點是，你們也會考慮我們的儀器業務，對吧？我的意思是，生命是有限的，而且這也是一項需要反覆經歷的事情。所以，當你從成長的角度來思考成長時。所以這是一個很好的補充，我們可以繼續向前邁進。

Great, thanks for taking questions. Thank you.

太好了，謝謝你回答問題。謝謝。

Bobby Zolper, Raymond James.

鮑比·佐爾珀，雷蒙德·詹姆斯。

Thanks. Good morning. Were there any variances relative to your expectations in water quality pricing?

謝謝。早安.水質定價方面是否存在與您的預期不符的情況？

No. I think look, pricing in general has been along the expectations, Bobby. As you recall, when we -- the tariff environment started earlier this year, we said we're going to be very strategic with respect to pricing versus one-off items being added tied to tariffs.

不。我覺得，總的來說，價格一直都在預期之內，鮑比。您應該還記得，今年早些時候關稅環境剛開始時，我們就說過，我們將採取非常有策略的定價方式，而不是像以往那樣，一次性增加與關稅掛鉤的商品。

So we work very closely with our customers. to make sure, ultimately, the goal here is to create value through a combination of price and volume, and that's kind of reflected as you're going to think about the overall core growth, both in the water quality and side as well. So we saw a little bit higher pricing in PQI versus water, but ultimately, it's a combination of both that creates long-term value, price and volume.

因此，我們與客戶密切合作，以確保最終目標是透過價格和銷售的結合來創造價值，而這一點也體現在您考慮整體核心成長時，無論是在水質方面還是其他方面。因此，我們看到 PQI 的價格比水略高，但最終，價格和銷售的組合創造了長期的價值。

Okay. Understood. And what are your thoughts on the attractiveness of water metering as a platform?

好的。明白了。您認為以水錶計量為平台的吸引力如何？

Yes. I mean I would say -- we look at the entire value stream of where water is used, analyzed and consumed. Metering is part of that value chain. We actually are in the metering business today with mag meters in our magrometer business. smaller overall portion of our revenue profile, but we're actively in metering today.

是的。我的意思是，我們會檢視水的整個價值鏈，包括水的使用、分析和消耗。計量是價值鏈的一部分。實際上，我們目前也涉足計量業務，在我們的磁力計業務中銷售磁力計。雖然這部分收入在我們整體收入中所佔比例較小，但我們目前確實在積極開展計量業務。

Understood. Thank you.

明白了。謝謝。

Andrew Krill, Deutsche Bank.

安德魯·克里爾，德意志銀行。

Hi, thanks. Good morning, everyone. I don't think this was explicitly touched on. But for 4Q, I just was hoping you could get some segment level color on margin expectations, maybe sequentially as the best way to do that it? And also anything on core growth for the fourth quarter by segment? I know you said, I think both around 5% for the full year, but just wondering if any big differences for 4Q?

您好，謝謝。各位早安。我認為這一點沒有被明確提及。但對於第四季度，我只是希望您能提供一些關於利潤率預期的分部分析，也許按季度進行分析是最好的方法？另外，關於第四季各業務板塊的核心成長情況，有什麼消息嗎？我知道你說過，我認為全年成長率都在 5% 左右，但我只是想知道第四季會不會有太大的變化？

Thanks, Andrew. The two distinct questions over there. So let me start with the margins first. For the fourth quarter, we expect the margins in aggregate to be around 30 basis points. both segments should be driving the year-over-year expansion in the margin side. You're going to see that. Water quality is driven by continued disciplined execution.

謝謝你，安德魯。那邊有兩個截然不同的問題。那麼，就先從邊距說起吧。我們預計第四季整體利潤率約為30個基點。這兩個業務板塊都將推動利潤率年增。你很快就會看到這一點。水質的提升取決於持續嚴謹的執行。

Frankly, they've done a phenomenal job in the first nine months, and we expect that to continue in Q4. PQI should start benefiting from the reduced tariff-related costs and some of the operating efficiencies that we've been driving. So you're going to see that, but PQI should be on a year-over-year basis of as well.

坦白說，他們在前九個月的表現非常出色，我們預計第四季將繼續保持這種勢頭。PQI 應該會開始受益於關稅相關成本的降低以及我們一直在推動的一些營運效率的提高。所以你會看到這一點，但 PQI 也應該逐年變化。

In aggregate, we should be in the 30 basis points kind of a zip code on the margin side. As far as the core growth, again, as you know, we don't give guidance by segment, but both segments are lined up pretty nicely and should be contributing to the growth that we've laid out -- and Andrew, as you know, we said core growth around low single digits.

整體而言，我們的利潤率應該在 30 個基點左右。至於核心成長，正如你所知，我們不按業務板塊給出指引，但這兩個板塊的進展都相當順利，應該會為我們制定的增長目標做出貢獻——安德魯，你也知道，我們說過核心增長預計在個位數低位。

But just to highlight and reiterate what we said in the prepared remarks, we do have three less shipping days. So if you pro forma with that, the core growth across the portfolio is in the solid mid-single-digit range.

但為了強調和重申我們在準備好的演講稿中所說的內容，我們的出貨時間確實減少了三天。因此，如果按照這個標準進行預測，整個投資組合的核心成長率將保持在穩健的中個位數水準。

Very helpful. And then going back to cash conversion, again, very impressive in the quarter. Could you expand a little on like what went well? As we look forward, I think in the past, you said 1Q and 3Q often go below 100% conversion as you do your cash interest payments, just -- is there a chance maybe like you can hold the line were consistently going forward? Or should we still be expecting a more normal outcome of below 100 in 1Q and 3Q?

很有幫助。再說回現金轉換率，本季表現同樣非常出色。能否詳細說說哪些方面做得比較好？展望未來，我認為您過去曾說過，由於需要支付現金利息，第一季和第三季的轉換率通常會低於 100%，那麼——有沒有可能像您一樣，能夠持續保持這一水平？或者我們應該繼續預期第一季和第三季會出現低於 100 的更正常的結果？

Yes, Andrew. As you kind of look at the free cash flow, I think it makes sense to look at it on an annual basis because interest payments are always going to be heavy in Q1, there's always a meaningful comp in Q1 payout as well.

是的，安德魯。從自由現金流的角度來看，我認為按年來看比較合理，因為第一季的利息支出總是很高，而且第一季的股利也總是相當可觀的。

And then Q3, you're going to have a heavy interest payments as well. That's just an architecture of how our capital structure is, it's less about the business. Underlying businesses when you look at, Andrew, the cash flow generation is very consistent, very strong, high-quality earnings. So I think that's a way to look at it.

然後，第三季你還得支付一大筆利息。這只是我們資本結構的架構方式，與業務本身關係不大。安德魯，從基礎業務來看，現金流產生非常穩定、非常強勁，獲利品質很高。所以我覺得這是看待這個問題的一種方式。

Great, thank you.

太好了，謝謝。

Thanks, Andrew, and thanks for everyone that joined us on the call today. This is Ryan Taylor. This concludes the Q&A portion of our call. We appreciate everybody's engagement and joining on the call today and we look forward to talking to you next time. Thank you.

謝謝安德魯，也感謝今天所有參加電話會議的朋友。這是瑞恩·泰勒。本次電話會議的問答環節到此結束。感謝大家今天參與電話會議，期待下次與大家交流。謝謝。

Thank you, Mr. Taylor. Again, ladies and gentlemen, that will conclude Veralto Corporation's third quarter 2025 earnings conference call. Again, thanks so much for joining us, everyone, and we wish you all a great day. Goodbye.

謝謝你，泰勒先生。女士們、先生們，Veralto Corporation 2025 年第三季財報電話會議到此結束。再次感謝各位的參與，祝福大家今天過得愉快。再見。