Cactus Inc (WHD) 2025 Q2 法說會逐字稿

Good day and thank you for standing by. Welcome to the Cactus Q2 2025 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded.

您好，感謝您的支持。歡迎參加 Cactus 2025 年第二季財報電話會議。（操作員指示）請注意，今天的會議正在錄音。

I would now like to hand the conference over to your first speaker today, Alan Boyd, Director of Corporate Development and Investor Relations. Please go ahead.

現在，我想將會議交給今天的第一位發言者，企業發展和投資者關係總監艾倫·博伊德 (Alan Boyd)。請繼續。

Thank you and good morning. We appreciate you joining us on today's call. Our speakers will be Scott Bender, our Chairman and Chief Executive Officer; and Jay Nutt, our Chief Financial Officer. Also joining us today are Joel Bender, President; Steven Bender, Chief Operating Officer; Stephen Tadlock, CEO of Flex Deal; and Will Marsh, our General Counsel.

謝謝，早安。感謝您參加今天的電話會議。我們的演講者將是我們的董事長兼執行長 Scott Bender；以及我們的財務長 Jay Nutt。今天與我們一起出席的還有總裁喬爾·本德 (Joel Bender)、首席營運官史蒂文·本德 (Steven Bender)、Flex Deal 首席執行官史蒂芬·塔德洛克 (Stephen Tadlock) 和我們的總法律顧問威爾·馬什 (Will Marsh)。

Please note that any comments we make on today's call regarding projections or expectations for future events are forward-looking statements covered by the Private Securities Litigation Reform Act. Forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond our control.

請注意，我們在今天的電話會議上就未來事件的預測或預期所做的任何評論都是《私人證券訴訟改革法案》所涵蓋的前瞻性陳述。前瞻性陳述受到許多風險和不確定性的影響，其中許多是我們無法控制的。

These risks and uncertainties can cause actual results to differ materially from our current expectations. We advise listeners to review our earnings release and the risk factors discussed in our filings with the SEC. Any forward-looking statements we make today are only as of today's date, and we undertake no obligation to publicly update or review any forward-looking statements.

這些風險和不確定性可能導致實際結果與我們目前的預期有重大差異。我們建議聽眾查看我們的收益報告以及我們向美國證券交易委員會提交的文件中討論的風險因素。我們今天所做的任何前瞻性陳述僅截至今天為止，我們不承擔公開更新或審查任何前瞻性陳述的義務。

In addition, during today's call, we will reference certain non-GAAP financial measures. Reconciliations of these non-GAAP measures to the most directly comparable GAAP measures are included in our earnings release.

此外，在今天的電話會議中，我們將參考某些非公認會計準則財務指標。我們的收益報告中包含了這些非 GAAP 指標與最直接可比較的 GAAP 指標的對帳。

With that, I'll turn the call over to Scott.

說完這些，我會把電話轉給史考特。

Thanks, Alan, and good morning to everyone. We generated substantial free cash flow during the second quarter, despite the exigencies caused by tariffs and commodity market weakness. We also announced the transformative acquisition of a controlling interest in Baker Hughes' surface pressure control business.

謝謝，艾倫，大家早安。儘管關稅和大宗商品市場疲軟造成了緊急情況，我們在第二季度仍產生了大量自由現金流。我們也宣布了對貝克休斯表面壓力控制業務的控股權進行轉型收購。

Our Spoolable Technologies business outperformed profit expectations in the quarter, and our Pressure Control product sales remained strong relative to declining activity levels. I'd like to thank our Cactus associates for another quarter in which we remain focused on safety and execution for our customers despite the challenging business climate.

我們的可捲繞技術業務在本季的利潤超過了預期，而我們的壓力控制產品銷售相對於活動水平的下降依然保持強勁。我要感謝我們的 Cactus 同事，儘管商業環境充滿挑戰，但在本季我們仍然專注於客戶的安全和執行。

Some second-quarter total company financial highlights include revenue of $274 million, adjusted EBITDA of $87 million, adjusted EBITDA margins of 31.7%. We increased our cash balance to $405 million and yesterday we announced that our Board approved an 8% increase in our quarterly dividend to $0.14 per share.

該公司第二季的財務亮點包括營收 2.74 億美元、調整後 EBITDA 為 8,700 萬美元、調整後 EBITDA 利潤率為 31.7%。我們的現金餘額增加到 4.05 億美元，昨天我們宣布董事會批准將季度股息增加 8% 至每股 0.14 美元。

I'll now turn the call over to Jay Nutt, our CFO, who will review our financial results, and following his remarks, I'll provide some thoughts on our outlook for the near term before opening the lines for Q&A. So Jay?

現在，我將把電話轉給我們的財務長傑伊·納特 (Jay Nutt)，他將審查我們的財務業績，在他發言之後，我將就我們近期的前景提供一些想法，然後再開始問答環節。那麼傑伊？

Thank you, Scott. As Scott just mentioned, total Q2 revenues were $274 million, a sequential 2.4% decline, and total adjusted EBITDA was $87 million, down 7.6% sequentially. For our Pressure Control segment, revenues of $180 million were down 5.5% sequentially, driven primarily by lower revenue in our rental business, where pricing often weakens disproportionately when overall demand softens.

謝謝你，斯科特。正如史考特剛才提到的，第二季總營收為 2.74 億美元，季減 2.4%，調整後 EBITDA 總額為 8,700 萬美元，季減 7.6%。對於我們的壓力控制部門，營收 1.8 億美元，季減 5.5%，主要原因是我們的租賃業務收入下降，當整體需求疲軟時，租賃業務的定價通常會不成比例地下降。

As we've demonstrated in the past, we will continue to selectively deploy rental equipment when returns meet our threshold. A less favorable product mix compared to the first quarter resulted in slightly lower product revenues in the period, though our product sales decreased less than the decline in the average US land rig count, a testament to our strong market position.

正如我們過去所展示的那樣，當回報達到我們的門檻時，我們將繼續有選擇地部署租賃設備。與第一季相比，產品組合較不理想，導致本季度產品收入略有下降，但我們的產品銷售額降幅小於美國陸上鑽機平均數量的降幅，證明了我們強大的市場地位。

Operating income declined $12 million or 22.1% sequentially, with operating margins compressing 510 basis points, and adjusted segment EBITDA was $11.7 million or 18% lower sequentially, with margins decreasing by 450 basis points. The operating margin decline was primarily due to the lower operating leverage, higher product costs due to tariffs, which particularly impacted our results in June and the lower revenue contribution from our higher margin rental business.

營業收入較上季下降 1,200 萬美元，降幅 22.1%，營業利潤率下降 510 個基點；調整後分部 EBITDA 環比下降 1,170 萬美元，降幅 18%，利潤率下降 450 個基點。營業利潤率下降主要是由於營業槓桿率降低、關稅導致產品成本上升（這尤其影響了我們 6 月的業績）以及利潤率較高的租賃業務的收入貢獻下降。

In addition, we recorded $5.1 million of legal expenses and reserves in connection with litigation claims, which represented an increase of approximately $2 million from the first quarter. For our Spoolable Technology segment, revenues of $96 million were up 3.9% sequentially on higher domestic customer activity in the seasonally stronger second quarter.

此外，我們還記錄了與訴訟索賠相關的 510 萬美元法律費用和儲備金，比第一季增加了約 200 萬美元。對於我們的可捲繞技術部門而言，由於季節性較強的第二季國內客戶活動增加，營收季增 3.9%，達到 9,600 萬美元。

Operating income increased $4.2 million or 17.5% sequentially, with operating margins expanding 340 basis points due to the improved operating leverage and increased manufacturing efficiencies following our investments in the same. Adjusted segment EBITDA increased $4.4 million or 13.2% sequentially while margins expanded by 320 basis points.

營業收入較上季增加 420 萬美元，即 17.5%，由於我們對該業務進行投資後，營業槓桿率提高且製造效率提高，營業利潤率擴大了 340 個基點。調整後部門 EBITDA 環比增加 440 萬美元，或 13.2%，利潤率擴大 320 個基點。

Corporate and other expenses were flat sequentially at $9.6 million in Q2, which included a $3.5 million of professional fees associated with the announced plan to acquire a majority interest in the surface pressure control business of Baker Hughes. Adjusted corporate EBITDA was flat at $4.4 million of expense compared to Q1.

第二季度公司及其他費用環比持平，為 960 萬美元，其中包括與宣布的收購貝克休斯表面壓力控制業務多數股權的計劃相關的 350 萬美元專業費用。調整後的企業 EBITDA 與第一季相比持平，為 440 萬美元。

On a total company basis, second-quarter adjusted EBITDA was $87 million, down 7.6% from $94 million in the first quarter. Adjusted EBITDA margin for the second quarter was 31.7%, compared to 33.5% for the first quarter. Adjustments to total company EBITDA during the second quarter of 2025 include non-cash charges of $6.3 million in stock-based compensation, $3.5 million for transaction-related professional fees, and $177,000 for the initial phase of severance actions taken in June to right size the organization to reflect lower activity levels.

就整個公司而言，第二季調整後的 EBITDA 為 8,700 萬美元，較第一季的 9,400 萬美元下降 7.6%。第二季調整後的 EBITDA 利潤率為 31.7%，而第一季為 33.5%。2025 年第二季公司 EBITDA 總額的調整包括 630 萬美元的股票薪酬非現金費用、350 萬美元的交易相關專業費用，以及 6 月份為調整組織規模以反映較低的活動水平而採取的遣散行動的初始階段的 177,000 美元。

A fuller picture of the actions taken to restructure the business will be evident in our results as we progress through the year. Depreciation and amortization expense for the second quarter was $16 million which includes an ongoing $4 million of amortization related to the intangible assets resulting from the FlexSteel acquisition.

隨著今年的進展，我們重組業務所採取的行動將在業績中得到更全面的體現。第二季的折舊和攤銷費用為 1,600 萬美元，其中包括與 FlexSteel 收購產生的無形資產相關的 400 萬美元的持續攤銷。

During the second quarter, the public or Class A ownership of the company averaged and ended the period at 86%. GAAP income was $49 million in the second quarter versus $54 million during the first quarter. The decrease was largely driven by lower operating income. Book tax expense during the second quarter was $14 million resulting in an effective tax rate of 23%.

第二季度，該公司的公眾或 A 類股權平均持股比例為 86%。第二季 GAAP 營收為 4,900 萬美元，而第一季為 5,400 萬美元。下降的主要原因是營業收入下降。第二季的帳面稅費為 1,400 萬美元，有效稅率為 23%。

Adjusted net income and earnings per share were $53 million and $0.66 per share, respectively, during the second quarter compared to $59 million and $0.73 per share in the first quarter. Adjusted net income for the second quarter was net of a 25% tax rate applied to our adjusted pre-tax income.

第二季調整後淨收入和每股盈餘分別為 5,300 萬美元和 0.66 美元，而第一季分別為 5,900 萬美元和 0.73 美元。第二季的調整後淨收入是扣除適用於我們調整後稅前收入的 25% 稅率後的淨收入。

During the quarter, we paid a quarterly dividend of $0.13 per share, resulting in a cash outflow of approximately $10 million including related distributions to members. Positive movements in both inventory and accounts payable combined with lower net CapEx led to a much stronger quarter of free cash flow. We ended the quarter with a cash balance of $405 million, a sequential increase of approximately $58 million. Net CapEx was approximately $11.1 million during the second quarter of 2025.

在本季度，我們支付了每股 0.13 美元的季度股息，包括向會員的相關分配在內，導致現金流出約 1,000 萬美元。庫存和應付帳款的積極變動，加上較低的淨資本支出，導致本季自由現金流大幅增強。本季末我們的現金餘額為 4.05 億美元，比上一季增加約 5,800 萬美元。2025 年第二季淨資本支出約 1,110 萬美元。

In a moment, Scott will give you our third-quarter operational outlook. Some additional financial considerations when looking ahead to the third quarter include an effective tax rate of 22% and an estimated tax rate for adjusted EPS of approximately 25%. Total depreciation and amortization expense during the third quarter is expected to be approximately $16 million with $7 million associated with our Pressure Control segment and $9 million in Spoolable Technologies. We are reducing our full-year 2025 CapEx outlook to be in a range of $40 million to $45 million, including the $6 million equity investment made in Vietnam in the first quarter.

斯科特稍後會向您介紹我們第三季的營運展望。展望第三季時，一些額外的財務考量包括 22% 的有效稅率和約 25% 的調整後每股盈餘預估稅率。第三季的總折舊和攤銷費用預計約為 1,600 萬美元，其中 700 萬美元與我們的壓力控制部門相關，900 萬美元與 Spoolable Technologies 相關。我們將 2025 年全年資本支出預期下調至 4,000 萬美元至 4,500 萬美元之間，其中包括第一季在越南進行的 600 萬美元股權投資。

We are continuing to evaluate our capital spending program, considering the trend of domestic activity while maintaining investments to support Vietnam production growth and to strengthen manufacturing efficiencies in Baytown. Additionally, we expect to pay an annual TRA payment and distributions related to 2024 taxes late in the third quarter, which will be approximately $24 million.

我們正在繼續評估我們的資本支出計劃，考慮國內活動的趨勢，同時保持投資以支持越南的生產成長並加強貝敦的製造效率。此外，我們預計將在第三季末支付與 2024 年稅收相關的年度 TRA 付款和分配，金額約為 2,400 萬美元。

Finally, the Board has approved an 8% increase in the quarterly dividend of $0.14 per share, which will be paid in September. We're pleased that the durability of cash flows in our structurally capital light business has allowed us to consistently increase our dividend over the past several years.

最後，董事會批准將季度股息提高 8%，即每股 0.14 美元，並將於 9 月支付。我們很高興看到，在結構性輕資本業務中，現金流的持久性使我們能夠在過去幾年中持續增加股利。

That covers the financial review, and I'll now turn the call back over to Scott.

財務審查到此結束，現在我將把電話轉回給斯科特。

Thanks, Jay. I'd like to take a few moments to discuss our latest understanding of the tariff impact on our business and the corresponding weaker than anticipated Pressure Control margin performance in the second quarter. On June 4, the Section 232 tariff rate on steel and certain steel derivatives was unexpectedly doubled from 25% to 50%.

謝謝，傑伊。我想花點時間討論我們對關稅對我們業務的影響的最新理解，以及相應的第二季壓力控制利潤率表現低於預期。6月4日，美國對鋼鐵及部分鋼鐵衍生性商品的第232條款關稅稅率意外翻倍，從25%提高至50%。

This result in an increase in the tariff rate applied to goods imported from our Chinese manufacturing facility from the minimum 44%, 45% incremental rate discussed on last quarter's call and reflected in our guidance affirmed on June 4 to what is now an incremental 70%.

這導致從我們的中國製造工廠進口的商品的關稅稅率從上個季度電話會議上討論的最低 44%、45% 的增量稅率（並反映在我們 6 月 4 日確認的指導中）提高到現在的增量 70%。

As a result of the general tax, tariff uncertainty, and this change, we broadened our supply chain to other higher cost jurisdictions, including the US, to ensure certainty of delivery for our customers. These higher cost materials turned through our inventory faster than we had anticipated, resulting in depressed margins as we exited the quarter.

由於一般稅收、關稅不確定性以及此變化，我們將供應鏈擴展到包括美國在內的其他成本較高的司法管轄區，以確保向客戶交付的確定性。這些成本較高的材料比我們預期的更快地消耗了我們的庫存，導致我們在本季結束時利潤率下降。

In light of recent announcements, we must now modify the statement we made last quarter regarding our expectations that sourcing from Vietnam going forward would put us back into the same tariff position we have been operating under for the past several years.

鑑於最近的公告，我們現在必須修改上個季度所做的聲明，該聲明涉及我們的預期，即未來從越南採購將使我們回到過去幾年一直處於的相同關稅地位。

Considering the recent doubling of the Section 232 tariffs, we now believe that the rate applied to most imports from Vietnam could remain at 50% despite the recently published rate of 20%, an absolute increase of 25% over the Section 301 rate that applied to our imports from China since 2018. This increased rate has not changed our planning to heavily utilize Vietnam for our US imports, given the challenges of scaling US manufacturing and the cost competitiveness of Vietnam. We continue to work with our vendors and our customers to neutralize the impact of these increased tariff base rates going forward.

考慮到最近第 232 條關稅翻倍，我們現在認為，儘管最近公佈的稅率為 20%，但對大多數從越南進口的商品適用的稅率可能仍為 50%，這比自 2018 年以來適用於我們從中國進口的第 301 條稅率絕對增加了 25%。考慮到擴大美國製造業規模的挑戰以及越南的成本競爭力，這項稅率的提高並沒有改變我們大量利用越南進口美國產品的計畫。我們將繼續與我們的供應商和客戶合作，以抵消這些提高關稅基準率的影響。

I'll now touch on our expectations for the third quarter of 2025 by reporting segment. During the third quarter, we expect Pressure Control revenue to be down mid to high single digits versus the $180 million reported in the second quarter. The decline is primarily due to the anticipated decrease in the average rig count in the third quarter. Further deterioration in our frac rental business is also contributing to the decrease, as we elect the sideline equipment rather than irresponsibly deploy into a shrinking market where we believe current frac crude counts are more than 10% below second-quarter average levels.

現在，我將按報告部分談談我們對 2025 年第三季的預期。在第三季度，我們預計壓力控制收入將比第二季度報告的 1.8 億美元下降中高出個位數。下降的主要原因是預計第三季平均鑽井數量將減少。我們的壓裂租賃業務的進一步惡化也是造成這一下降的原因，因為我們選擇使用邊線設備，而不是不負責任地部署到萎縮的市場中，我們認為目前的壓裂原油數量比第二季度的平均水平低 10% 以上。

Last Friday, the Baker Hughes' US land rig count was 526, 5% below the second-quarter average level and we anticipate that modest softening will continue into the fourth quarter. Our customers have recently suggested that the majority of the declines for 2025 are behind us, provided commodity prices remain near recent levels.

上週五，貝克休斯美國陸上鑽機數量為 526 座，比第二季平均低 5%，我們預計這種溫和疲軟態勢將持續到第四季。我們的客戶最近表示，只要大宗商品價格維持在近期水準附近，2025 年的大部分跌幅都已經過去。

Adjusted EBITDA margins in our Pressure Control segment are expected to stay relatively stable at 28% to 30% for the third quarter, despite lower operating leverage. This adjusted EBITDA guidance includes the partial benefits arising from our cost reduction and recovery efforts, offsetting increased average tariff costs, and excludes approximately $3 million of stock-based compensation expenses in the segment.

儘管經營槓桿較低，但預計第三季壓力控制部門的調整後 EBITDA 利潤率將保持相對穩定，介於 28% 至 30% 之間。該調整後的 EBITDA 指引包括我們削減和恢復成本的努力所產生的部分收益，抵消了增加的平均關稅成本，並且不包括該部門約 300 萬美元的股票薪酬費用。

Considering the increasing pace of shipments from our Vietnam facility and the support of our customer base, we believe that the second and third quarters will represent the trough of our Pressure Control segment profit margin in this cycle, barring further changes in tariff rates, or a greater than anticipated decline in industry activity levels.

考慮到我們越南工廠出貨速度的不斷加快以及我們客戶群的支持，我們認為，除非關稅稅率進一步變化，或行業活動水平出現比預期更大的下降，否則第二季度和第三季度將代表本週期壓力控制部門利潤率的低谷。

Regarding our Spoolable Technology segment, we expect third-quarter revenue to be down high single digits from the second quarter as the progression of domestic activity levels impacts customer spending. That said, we remain pleased with recent international bookings.

關於我們的可捲繞技術部門，我們預計第三季營收將比第二季下降高個位數，因為國內活動水準的進展影響了客戶支出。儘管如此，我們對最近的國際預訂仍然感到滿意。

We expect adjusted EBITDA margins to be approximately 35% to 37% for Q3, which excludes $1 million of stock-based comp in the segment moderating from the second-quarter levels on lower volume and relatively stable input costs. Adjusted corporate EBITDA is expected to be a charge of approximately $4 million in Q3, which excludes $2 million of stock-based comp.

我們預計第三季調整後的 EBITDA 利潤率約為 35% 至 37%，其中不包括該部門 100 萬美元的股票補償，由於銷量較低和投入成本相對穩定，該利潤率將低於第二季度的水平。預計第三季調整後的企業 EBITDA 費用約為 400 萬美元，其中不包括 200 萬美元的股票補償。

We remain extremely excited about our recently announced plan to acquire a majority interest in the surface pressure control business of Baker Hughes, which we believe is continuing to perform well. The recent activity trends in North American markets combined with tariff impacts to our base business further demonstrate the strategic rationale for diversifying our footprint with a business heavily focused on the [Mideast].

我們對最近宣布的收購貝克休斯表面壓力控制業務多數股權的計劃感到非常興奮，我們相信該業務將繼續表現良好。北美市場近期的活動趨勢，加上關稅對我們基礎業務的影響，進一步證明了我們多元化業務佈局的戰略意義，業務重點集中在[中東]。

Integration planning work is progressing well. We expect closing of the transaction in late 2025 or early 2026 as we work through administrative filings and select global jurisdictions. We look forward to welcoming SPC associates to Cactus in the near future. In conclusion, the second quarter was busy for our team as we announced a transformative acquisition and face supply chain and tariff uncertainty.

整合規劃工作進展順利。隨著我們完成行政備案和選擇全球司法管轄區，我們預計交易將於 2025 年底或 2026 年初完成。我們期待在不久的將來歡迎 SPC 員工加入 Cactus。總而言之，第二季對我們的團隊來說是忙碌的，因為我們宣布了一項變革性收購，並面臨供應鏈和關稅的不確定性。

Despite these distractions, we remained execution -- we maintained execution focus for our customers and generated solid free cash flow in the quarter. Our confidence in the cash flow durability of our structurally variable cost-driven and capital light business is reflected in the Board's recent approval to increase our dividend by 8%.

儘管存在這些幹擾，我們仍然堅持執行——我們保持了對客戶的執行重點，並在本季度產生了穩健的自由現金流。董事會最近批准將股利提高 8%，這反映出我們對結構性變動成本驅動和輕資本業務的現金流量持久性的信心。

We believe the sharpest domestic activity declines for 2025 are behind us and look forward to beginning 2026 with a substantially broader geographic footprint and customer base from our announced acquisition plan.

我們相信，2025 年國內活動最急劇的下滑已經過去，並期待從 2026 年開始，透過我們宣布的收購計劃，獲得更廣泛的地理覆蓋範圍和客戶群。

And with that, I'll turn it back over to the operator, and we can begin Q&A. Operator?

說完這些，我將把麥克風交還給接線員，然後我們就可以開始問答了。操作員？

(Operator Instructions) Stephen Gengaro, Stifel, Nicolaus & Company, Inc.

（操作員指示）Stephen Gengaro，Stifel，Nicolaus＆Company，Inc.

I think, two things for me. First, you mentioned that it sounds like June was kind of felt the brunt of the tariffs, but you still guided Pressure Control margins pretty flat in the second quarter. Can you just sort of maybe provide a little bit more color around how that's achieved sequentially? Because I'm just thinking June was probably worse than the average in the quarter you just reported.

我認為，對我來說有兩件事。首先，您提到，聽起來 6 月似乎受到了關稅的衝擊，但您仍然預計第二季壓力控制利潤率將相當穩定。您能否更詳細地說明一下這是如何按順序實現的？因為我只是認為六月的情況可能比您剛剛報告的季度平均情況更糟。

You would be correct. So I tell you there really were a couple of factors, Stephen. The first one was this unexpected doubling of Section 232 for which the administration gave absolutely no notice. So when we prepared our guide for June, we didn't anticipate that 232 was going to ratchet up by 25 absolute points. So that impacted both inbound goods from Vietnam and inbound goods from China. So that was clearly not anticipated.

你是對的。所以我告訴你，確實有幾個因素，史蒂芬。第一個是第 232 條意外增加一倍，而政府對此完全沒有發出任何通知。因此，當我們準備 6 月的指南時，我們並沒有預料到 232 會上升 25 點。因此，這對來自越南的進口貨物和來自中國的進口貨物都產生了影響。這顯然是沒有預料到的。

I think the second point is that we had begun to look for alternate supply chain sources, and that was primarily in the US. And the US supply chain, as you know, is higher cost than our imported supply chain, but we still believed it was below what the fully tariff amount would have been.

我認為第二點是我們已經開始尋找替代的供應鏈來源，而這主要在美國。如你所知，美國供應鏈的成本高於我們進口的供應鏈，但我們仍然認為它低於全額關稅的金額。

And I think the last was we had anticipated pushing through some cost recovery initiatives only to see all prices implode in April and May, which actually caused our customers to request price relief rather than entertain cost recovery requests. So we had to put that on pause for a bit. So those are the three contributing factors.

我認為最後一個原因是，我們原本預計會推行一些成本回收舉措，結果卻發現 4 月和 5 月所有價格都暴跌，這實際上導致我們的客戶要求降低價格，而不是接受成本回收請求。所以我們只好暫時暫停一下。這就是三個促成因素。

Okay. Thank you. And then the other question I had, it's sort of bigger picture. Like when we look at the world, I mean oil prices are relatively high. I mean, I know the strip's maybe a little lower than the spot price, but when we -- when you think about it, you talk to your customers about the next several quarters. What do you think they're looking for to lead to some confidence to ramp activity? Because I feel like the oil price backdrop is not that bad and the rig count just kind of keeps shrinking.

好的。謝謝。然後我還有另一個問題，這是一個更大的圖像。就像我們看世界一樣，我認為油價相對較高。我的意思是，我知道帶鋼的價格可能比現貨價格低一點，但是當我們——當你考慮到這一點時，你會與你的客戶談論接下來的幾個季度。您認為他們希望獲得什麼來增強信心並擴大活動範圍？因為我覺得油價背景並沒有那麼糟糕，而且鑽井數量也不斷減少。

Yeah, Stephen. I'm not really sure that our customers are as responsive today as they had -- as they were five years ago to more robust crude prices because you're entirely right. I think that that range of $65 to $70 is certainly providing very reasonable returns, but they're so focused right now on capital discipline and returning cash to shareholders that nobody wants to be the first to announce CapEx expansion.

是的，史蒂芬。我不太確定我們的客戶今天是否像五年前那樣對更強勁的原油價格做出反應，因為你完全正確。我認為 65 美元到 70 美元的範圍肯定能提供非常合理的回報，但他們現在非常注重資本紀律和向股東返還現金，所以沒有人願意成為第一個宣布擴大資本支出的公司。

Having said that, it's undeniable that the gas market is expanding. I think our gas rig count is up 50% since January, which is of course diametrically at odds with our oil rig count. So, unfortunately for us and maybe the rest of the industry, with some exceptions, gas still makes up a much lower percentage of our total rig count. So, I guess the short answer is yes, we're going to see some expansion with gas, but it's starting at a much lower base, and I don't think we're going to see a significant response to oil prices.

話雖如此，不可否認的是天然氣市場正在擴大。我認為自一月份以來我們的天然氣鑽井數量增加了 50%，這當然與我們的石油鑽井數量截然相反。因此，不幸的是，對於我們以及整個產業來說，除了一些例外，天然氣在我們鑽機總數中所佔的比例仍然很低。所以，我想簡短的回答是肯定的，我們將看到天然氣的擴張，但它的起點要低得多，而且我認為我們不會看到對油價的顯著反應。

David Anderson, Barclays.

巴克萊銀行的大衛安德森。

So your product lines in the US are leveraged across drilling, completions, and production, and it sounds like completions was the weakest for you this quarter as rental's really kind of taking a hit. I was wondering, could you just kind of walk me through your views on the second half about how those three components are trending?

因此，您在美國的產品線涵蓋鑽井、完井和生產，聽起來完井是您本季最薄弱的環節，因為租賃確實受到了打擊。我想知道，您能否簡單介紹一下您對下半部這三個組成部分的趨勢的看法？

I mean, should we expect production to hold up stronger? Do you think completions might be a little bit stronger than drilling? You're indicating maybe the drilling -- maybe the rig count declines are kind of behind us. Can you just walk me through kind of how those three things are driving the second half?

我的意思是，我們是否應該期待生產保持更強大？您認為完井可能比鑽井更強嗎？您指的是鑽井－鑽井數量下降的現象可能已經過去了。您能否簡單介紹一下這三件事將如何推動下半年的發展？

First, I would probably expand on your conclusion that it was completions or frac activity that mostly impacted our results, but I'd be remiss if I didn't mention that our production business was also beginning to soften, not as significantly as our frac-related business. So then in answer to your question about the rest of the year, I think our team believes that completion activity or frac-related activity is going to decline more significantly than drilling activity.

首先，我可能會進一步闡述你的結論，即完井或壓裂活動對我們的業績影響最大，但如果我不提我們的生產業務也開始疲軟，而且不如壓裂相關業務那麼嚴重，那我就失職了。那麼，回答您關於今年剩餘時間的問題，我認為我們的團隊認為完井活動或壓裂相關活動的下降幅度將比鑽井活動更大。

So, as I mentioned, we're already as of today 12% below in terms of frac crews. Well, I said at least 10%, but the number is actually 12% today below the frac crude count in the second quarter of this year. And I really don't see that situation improving very much. Unfortunately, as frac activity wanes, so does the subsequent production activity because if we don't [frackle] well, we can't put a production tree on there. Now I think we've got quite a few locations that may have been fracked and don't have production trees. So production activity, I don't think, will suffer to the same degree as frac-related activity.

因此，正如我所提到的，截至今天，我們的壓裂隊伍數量已經下降了 12%。嗯，我說的是至少 10%，但實際上今天的數字比今年第二季的壓裂原油數量低 12%。我確實不認為這種情況會有太大改善。不幸的是，隨著壓裂活動的減弱，後續的生產活動也會減弱，因為如果我們不好好壓裂，我們就無法在那裡放置生產樹。現在我認為我們有相當多的地點可能已經進行了水力壓裂並且沒有生產樹。因此，我認為生產活動不會像壓裂相關活動那樣受到同樣程度的影響。

All right. Let's shift to much more positive things, Middle East. Middle East acquisition, and I'm really -- would love to know a little bit about how -- now you've kind of been in here a little bit, and I'm curious how you're going to approach this. We've watched you grow the Pressure Control business in US land essentially from scratch to a dominant share position.

好的。讓我們轉向更積極的事情，中東。中東收購，我真的很想知道一點關於——現在你已經有點了解這個事情了，我很好奇你將如何處理這個問題。我們見證了您在美國本土的壓力控制業務從零開始發展到主導。

Clearly, you've done a great job whipping Spoolable into shape, but this business in the Middle East is a different story. By all accounts, it's been essentially orphaned under the prior owner. I was wondering if you could kind of walk us through about turning something like this around, like where do you start? What's the process on something like this? How are you thinking about it right now? I really appreciate it. Thank you.

顯然，您已經出色地完成了 Spoolable 的整頓工作，但中東的業務卻是另一回事。從各方面來看，它在前任主人的管理下基本上已經變成了孤兒。我想知道您是否可以向我們介紹如何扭轉這樣的局面，例如您從哪裡開始？類似這樣的事情的處理過程是怎麼樣的？您現在對此有何看法？我真的很感激。謝謝。

Wow, David. (inaudible) to maybe offer my opinion about how Baker has run the company. So let me first say that Baker has done a significant job in improving the results of their international business over the last two years. So kudos to them. They made some very, very difficult decisions in terms of closing down the less productive manufacturing facilities.

哇，大衛。 （聽不清楚）也許我可以就貝克如何經營公司提出我的看法。首先我要說的是，貝克在過去兩年中為改善國際業務表現做出了重大貢獻。所以向他們表示敬意。他們在關閉生產效率較低的製造工廠方面做出了一些非常艱難的決定。

I'm looking at my General Counsel here to make sure -- you're not kicking me, are you? So kudos to them. I think that in general, we operate with a much flatter organization. I mean, that's undeniable. You can imagine we operate with a much flatter organization than any of our large competitors, and Baker's no exception, nor is FMC or Schlumberger Cameron.

我正在向我的總法律顧問詢問，以確保——你沒有踢我，是嗎？所以向他們表示敬意。我認為總體而言，我們的組織更加扁平化。我的意思是，這是不可否認的。你可以想像，我們的組織架構比任何大型競爭對手都要扁平得多，Baker's 也不例外，FMC 和 Schlumberger Cameron 也不例外。

So I think that the culture is going to be significantly different. I think the next area of emphasis will clearly be on our supply chain philosophy, which again Baker's done a remarkable job in improving their cost structure for their products, but I still believe that we do a much better job, particularly in an environment that's not plagued with tariffs.

所以我認為文化將會發生顯著的改變。我認為下一個重點領域顯然是我們的供應鏈理念，貝克在改善其產品成本結構方面做得非常出色，但我仍然相信我們做得更好，特別是在沒有關稅困擾的環境中。

So I think you could look for supply chain. I think you can look for organization and cultural changes. Frankly, I'm excited about the opportunity to enhance that business. I also think you're going to see the same degree of focus that we brought to the US market on the international market where that has not been the case.

所以我認為你可以尋找供應鏈。我認為您可以尋找組織和文化的變化。坦白說，我很高興有機會提升這項業務。我還認為，你會看到我們對國際市場的關注程度與對美國市場的關注程度相同，但事實並非如此。

I expect nothing less. Thank you very much, Scott.

我對此抱有很高的期望。非常感謝，斯科特。

Arun Jayaram, JPMorgan Securities.

摩根大通證券的阿倫‧賈亞拉姆 (Arun Jayaram)。

So is it fair to say when you guys came out with your early June kind of update to the market on pressure control margins in that 33%, 35% range that it didn't factor in maybe two things? One is the increase in Section 232 tariffs, as well as some of the legal cost that Jay mentioned in his opening remarks. Is that fair?

那麼，當你們在 6 月初向市場發布壓力控制利潤率在 33% 至 35% 範圍內的更新時，是否可以說它沒有考慮到兩件事？一是232條款關稅的提高，還有傑伊在開場白中提到的一些法律成本。這樣公平嗎？

I mean, it is fair, but I'd say there's more than just that. There's the Section 232, which was significant, but there also is our cost recovery efforts were paused because of the implosion in crude prices.

我的意思是，這是公平的，但我想說的不僅僅是公平。第 232 條非常重要，但由於原油價格暴跌，我們的成本回收努力也暫停了。

Got it. That makes sense. And maybe just as a follow up, and I don't want to spend too much time on this, but maybe you could just talk a little bit about the legal or the legal charge that you took. It looks like something in the Q around an ongoing situation with Cameron. Maybe you could just describe -- provide an update on that and thoughts on do you expect any more cost to put in the model as we think about the back half of the year.

知道了。這很有道理。也許只是作為後續，我不想在這個問題上花太多時間，但也許您可以稍微談談您所承擔的法律或法律指控。這看起來像是 Q 中與卡梅倫正在發生的情況有關的事情。也許您可以描述一下——提供有關該問題的最新情況，並思考一下，當我們考慮下半年時，您是否預計模型還會增加成本。

Well, what can I say on that?

那麼，對此我能說什麼呢？

I think we can start by letting him know the trial was delayed. We'll have some further disclosure on that in the 10-Q. So a lot of those expenses were gearing up for trial, which was delayed at the last minute. So there will be some more expenses in the back half of the year, but it is just hard to predict how the litigation may go.

我認為我們可以先讓他知道審判被推遲了。我們將在 10-Q 中對此進行進一步揭露。因此，很多費用都是為審判做準備，但在最後一刻被推遲了。因此，下半年還會有一些開支，但很難預測訴訟會如何發展。

Okay, and just what is the nature of the dispute?

好的，那麼爭議的性質到底是什麼？

As we disclosed in the Q, it's an IP disclosure around the SafeLink -- IP dispute around the SafeLink product.

正如我們在 Q 中所揭露的那樣，這是圍繞 SafeLink 的 IP 揭露——圍繞 SafeLink 產品的 IP 爭議。

Scott Gruber, Citigroup.

花旗集團的史考特‧格魯伯。

It's good to hear, Scott, that the PC margins should be troughing. I think that means you expect, maybe some improvement into '26 even in a soft drilling market. Is that fair?

斯科特，很高興聽到 PC 利潤率正在下降。我認為這意味著，即使在疲軟的鑽井市場中，您預計 26 年也可能會有所改善。這樣公平嗎？

So that's fair.

這很公平。

Okay, and some color on --

好的，上點顏色--

We don't normally give guidance that far out. But all things being equal, that's very fair.

我們通常不會給出那麼遠的指導。但在所有條件相同的情況下，這是非常公平的。

No, I know, but you can appreciate there's a lot of moving pieces right now. And obviously, we just see the margins. But if we just assume drilling is kind of flat with the normal seasonality across 4Q,1Q, but can you just provide a little more details on what could drive [grind] higher in the margins? Is it their surcharges being passed along? Is it Vietnam ramping up? And just some more color on what could drive some improvement.

不，我知道，但你可以理解現在有很多事情在發生。顯然，我們只看到利潤。但是，如果我們只是假設鑽探量與第四季和第一季的正常季節性持平，那麼您能否提供更多細節，說明哪些因素可能推動[研磨]利潤率上升？他們的附加費是否被轉嫁了？越南正在崛起嗎？並且進一步闡述了哪些因素可以推動改進。

You're paying excellent attention. It's more expansive cost recovery benefits. It is the migration to Vietnam. So even though Vietnam currently is 50% incremental, it's still below the absolute 95% coming out of China. So that certainly is a tailwind for us.

你非常關注。這是更廣泛的成本回收效益。這是向越南的移民。因此，儘管越南目前的增量為 50%，但仍低於中國的絕對增量 95%。所以這對我們來說無疑是個順風。

I think it also has to do with -- and we haven't disclosed the impact of that, but if you followed us from the very beginning, we're pretty aggressive in terms of right sizing, and so you'll begin to see the benefits of that right sizing as they flow through our P&L. So it'll be pretty significant.

我認為這也與——我們還沒有透露其影響有關，但如果你從一開始就關注我們，你會發現我們在合理規模方面非常積極，因此，隨著合理規模流入我們的損益表，你就會開始看到它帶來的好處。所以這將非常重要。

Got you. If I could sneak one more. When do you think Vietnam is in a position to fully take on the former Chinese load?

明白了。如果我能再偷偷摸摸一次。您認為越南何時能夠完全承擔起中國的重擔？

Yeah, we believe that that will be the coming summer.

是的，我們相信那將是即將到來的夏天。

Thank you for your question. This concludes the question-and-answer session. I would now like to turn it back to Scott Bender, Chairman and CEO, for closing remarks.

感謝您的提問。問答環節到此結束。現在我想請董事長兼執行長 Scott Bender 致閉幕詞。

I thank you all first for joining us. It's been pretty active Q2, as you know, both in terms of navigating this macro environment and the tariff environment as well as of course the announcement of this Baker deal. I think if we've learned anything, and I hope you have as well, it's the importance of this international diversification.

首先感謝大家的加入我們。如您所知，第二季非常活躍，無論是在宏觀環境和關稅環境方面，當然還有貝克交易的宣布。我想如果我們學到了什麼的話，我希望你們也學到了，那就是國際多元化的重要性。

So while international won't be immune to some of these oil price swings, they're going to be -- it's going to be far more stable, and certainly long term a much more resilient market than the domestic market. Although honestly, I am pretty optimistic about the US. Our market position is strong. Anyway, thank you very much. Everybody have a good day.

因此，儘管國際市場無法免受部分油價波動的影響，但它將更加穩定，而且從長遠來看，其市場彈性將遠大於國內市場。雖然說實話，我對美國還是相當樂觀的。我們的市場地位十分穩定。無論如何，非常感謝。祝大家有個愉快的一天。

Thank you for your participation in today's conference. This does conclude the program. You may now disconnect.

感謝大家參加今天的會議。該計劃確實就此結束。您現在可以斷開連線。