Watsco, Inc. (WSO.B) 2026 Q1 法說會逐字稿

Good day, and welcome to the Watsco first-quarter 2026 earnings conference call. (Operator Instructions) Please note that this event is being recorded.

各位好，歡迎參加 Watsco 2026 年第一季財報電話會議。(接線員指示) 請注意，本活動將被錄音。

I would now like to turn the conference over to Mr. Albert Nahmad. Thank you, and over to you.

現在我想把會議交給 Albert Nahmad 先生。謝謝，交給您。

Welcome to our first-quarter earnings call. This is Al Nahmad, Chairman and CEO. And with me is AJ Nahmad, the President; Paul Johnston, Barry Logan and Rick Gomez. Before we start, our cautionary statement. This conference call has forward-looking statements as defined by SEC laws and regulations that are made pursuant to the safe harbor provisions of these various laws.

歡迎參加我們的第一季財報電話會議。我是 Al Nahmad，董事長兼執行長。與我一同出席的有總裁 AJ Nahmad；以及 Paul Johnston、Barry Logan 和 Rick Gomez。在開始之前，先宣讀我們的警示性聲明。本次電話會議包含依據美國證券交易委員會（SEC）法律與法規所定義的前瞻性陳述，並依據相關法律的「安全港」條款作出。

Ultimate results may differ materially from the forward-looking statements. First-quarter results point to improving stability now that the transition to A2L products has matured. We expect a more simplified business environment this year, but it is still early in our selling season, but so far, so good. We're also excited to announce our agreement to acquire Jackson Supply, a legendary market-leading Sunbelt distributor with $230 million in annual sales.

最終結果可能與前瞻性陳述存在重大差異。第一季結果顯示穩定性正在改善，因為向 A2L 產品的轉換已趨於成熟。我們預期今年的營運環境會更為簡化；不過目前仍處於銷售旺季初期，但到目前為止進展良好。我們也很高興宣布，已同意收購 Jackson Supply——一家傳奇且市場領先的 Sunbelt 地區經銷商，年銷售額約 2.30 億美元。

We are fortunate to know many great entrepreneurs in our industry. Jim Durrett, Jackson (technical difficulty) owner and his talented group of leaders, all of whom will remain with the company, certainly meet the definition of great entrepreneur. Our relationship with Jackson dates back more than 20 years, and we are grateful to Jim for entrusting us with this company's next chapter.

我們很幸運能在本產業認識許多優秀的企業家。Jim Durrett，Jackson（技術問題）所有人及其才華洋溢的領導團隊——他們都將留任公司——無疑符合「優秀企業家」的定義。我們與 Jackson 的關係可追溯至 20 多年前，我們也感謝 Jim 將公司下一個篇章託付給我們。

Jackson will expand their Sunbelt presence by 25 locations and provide diversification of brands and products, given their strong presence in parts and supplies. As I mentioned, and is our culture, Jackson team will continue to operate and grow the company with our full support. In addition, our community of leaders, along with Jackson will collaborate and learn from each other as is also our culture.

Jackson 將透過新增 25 個據點擴大其在 Sunbelt 的布局，並憑藉其在零件與耗材方面的強勢地位，帶來品牌與產品的多元化。如我所提到的，且這也是我們的文化，Jackson 團隊將在我們全力支持下持續營運並成長。此外，我們的領導者社群也將與 Jackson 共同協作、彼此學習，這同樣是我們的文化。

We expect to close the transaction sometime in the second-quarter. Within our existing business, we continue to build and expand our technology platforms, which provide us an immense long-term competitive advantage. E-commerce sales increased 16% during the quarter, well outpacing overall growth rates. OnCall Air, our digital platform that helps contractors present and sell solutions to homeowners increased customer sales by 20%, reflecting a rich sales mix of high efficiency systems.

我們預期將於第二季某個時間完成交易。在既有業務方面，我們持續建置並擴展技術平台，為我們帶來巨大的長期競爭優勢。本季電子商務銷售成長 16%，遠高於整體成長率。OnCall Air 是我們的數位平台，可協助承包商向屋主展示並銷售解決方案；其客戶銷售成長 20%，反映出高效率系統占比更高的銷售組合。

We expect the gross merchandise value for OnCall Air to exceed $2 billion this year. Let me say that again. We expect sales of OnCall Air to exceed $2 billion this year. We feel like this is a good start and expect more progress as adoption by contractors gain momentum in years ahead. Turning now to our first-quarter results. Sales increased 2% in US markets, reflecting a mature mix of A2L products as well as an improved mix of high-efficiency systems, offset by lower unit sales.

我們預期今年 OnCall Air 的商品交易總額（GMV）將超過 20 億美元。我再說一次。我們預期今年 OnCall Air 的銷售額將超過 20 億美元。我們認為這是個良好開端，並預期隨著承包商採用度在未來幾年加速提升，將取得更多進展。接著談第一季業績。美國市場銷售成長 2%，反映 A2L 產品組合已趨成熟，以及高效率系統組合改善；但部分被出貨台數下降所抵銷。

Unit volumes stabilized as the first-quarter progressed. Gross margins remain largely intact, reflecting good execution by our leadership team to sustain price and competitiveness. We continue to execute on several ongoing initiatives to enhance gross margins with a long-term goal of achieving 30%. SG&A remained flat as improved operation efficiency offset incremental technology investments and new locations.

隨著第一季進行，出貨量趨於穩定。毛利率大致維持不變，反映我們領導團隊在維持價格與競爭力方面執行良好。我們持續推動多項提升毛利率的計畫，長期目標為達到 30%。SG&A（銷售、一般及行政費用）持平，營運效率提升抵銷了額外的科技投資與新據點成本。

We expect overall operating efficiency to further improve and our technology can now show its metal in a simpler operating environment. Our balance sheet continues to be strong, and we remain debt-free. Let me repeat that. We remain debt-free. As I mentioned, we continue to invest in innovation and technology to separate us from our competitors, and we are making incremental investments to enhance our competitive position and add to our long-term growth and margin profile.

我們預期整體營運效率將進一步改善，而在更簡化的營運環境下，我們的技術如今能真正展現實力。我們的資產負債表依然強健，且我們仍然零負債。我再重申一次。我們仍然零負債。如我所提到的，我們持續投資創新與科技，以拉開與競爭對手的差距；同時也進行增量投資，以強化競爭地位並提升長期成長與利潤結構。

For example, we are developing new innovations aimed at capturing more sales to large institutional customers, which is set to launch during the second-quarter. We are accelerating the use of our pricing optimization tools to make further progress towards our long-term target. We have launched a new initiative to compete and grow sales in the highly fragmented parts and supply segment, which comprise almost 50% of the interest market share.

例如，我們正在開發新的創新方案，目標是爭取更多大型機構客戶的銷售，預計於第二季推出。我們正加速運用定價最佳化工具，以朝長期目標取得更多進展。我們已啟動一項新計畫，以在高度分散的零件與耗材領域競爭並擴大銷售；該領域約占整體市場份額的近 50%。

And we have begun to harness the power of artificial intelligence, offering the potential to further transform our customer experience, improve our operating efficiency and create new data-driven growth strategy. These investments, along with our scale, entrepreneurial culture and the capacity to invest are unmatched in our industry.

同時，我們也開始運用人工智慧的力量，具備進一步改造客戶體驗、提升營運效率並創造新的數據驅動成長策略的潛力。這些投資，加上我們的規模、企業家文化與投資能力，在本產業無人能及。

With that, let's turn to Q&A.

接下來進入問答環節。

(Operator Instructions) Ryan Merkel, William Blair.

(接線員指示) Ryan Merkel，William Blair。

Yes. Can you hear me?

是的。聽得到我嗎？

Now I can. Yes.

現在聽得到。是的。

Congrats on the deal and a good start to the year. I wanted to start high level. Al, can you just unpack your comments about improved stability as we head into the summer? And what's changing? And are you seeing April positive in terms of year-over-year growth at this point?

恭喜完成這筆交易，也恭喜今年有個不錯的開局。我想先從較高層次的問題開始。Al，你能否進一步說明你提到的、在進入夏季之際穩定性改善的看法？有哪些變化？另外，就目前來看，你們是否看到 4 月相較去年同期呈現正成長？

Well, let me turn to our expert in that sort of thing, to Barry Logan. Barry?

嗯，讓我把這類問題交給我們的專家 Barry Logan。Barry？

He just (technical difficulty) I think, he dropped off the call. Please let the operator know.

他剛剛（技術問題）我想他掉線了。請通知接線員。

Yes, we are trying to reconnect him in the meanwhile, yes.

是的，我們正在嘗試重新連線他，同時，是的。

Okay. Rick, do you want to jump in there?

好的。Rick，你要不要先補充一下？

Sure. I'll take a stab and then Barry can backfill and enhance it, Ryan. Yes. Look, I think what we -- first, if we just look at the first-quarter in isolation and then I'll turn to April, we saw what was the full maturity really of the A2L product transition. Units still weighing a little bit and -- which means that the market is not yet fully healed. There's no inflection point here, but things did get incrementally better as the quarter progressed.

當然。Ryan，我先試著回答，之後 Barry 可以再補充並加強。是的。你看，我想我們——首先，如果單看第一季，然後我再談 4 月，我們看到 A2L 產品轉換確實已完全成熟。出貨台數仍有些壓力——這表示市場尚未完全修復。目前沒有看到明顯的拐點，但隨著季度推進，情況確實逐步改善。

And we exited the quarter nicely with March up high single digits on a same-day basis. And so far, three weeks into April, I can tell you that momentum has sustained itself, and we are seeing incrementally more stability in April than we did to start the year. And so April has begun nicely. All of that said, we're still not yet in what is the thick of the selling season.

我們在季末表現不錯，以同日基礎計算，3 月成長達到高個位數。而截至 4 月的前三週，我可以告訴你，這股動能仍在延續；我們在 4 月看到的穩定性，比年初時更進一步提升。因此 4 月開局良好。不過話說回來，我們仍尚未進入銷售旺季最繁忙的階段。

And so we'll be a little bit of -- a little cautious in our tone and our optimism. But this is certainly, I think, incrementally more stable, more positive, less complex, and we'll take that in the first-quarter.

因此我們在語氣與樂觀程度上會稍微——稍微保守一些。但我認為這確實是逐步更穩定、更正向、複雜度更低；我們會把這視為第一季的成果。

Yes, I'll take that, too, if that's all right, which is if you zoom out even further, look at the history of this industry for 30, 40, 50 years. It's been a pretty mature slow growth, steady-as-we-go industry and then COVID hit. And it seems like all chaos broke loose over the last five years. We had extreme demand as people were investing in their homes.

是的，如果可以的話，我也想補充一點：如果你把視角再拉遠一些，回顧這個產業過去30、40、50年的歷史。它一直是個相當成熟、低成長、穩健前行的產業，然後COVID來了。而在過去五年裡，似乎一切都陷入混亂。人們投資自家住宅，導致需求極端強勁。

We had extreme supply chain challenges, which constrained the products that we could sell. We had multiple regulatory changes that changed the products that we sold, almost 100% of the equipment we sold twice in that period. We've had tariffs. We've had inflation. We've had different tariffs. It's -- we've had constraints or limitations on refrigerant canisters.

我們也遭遇了極端的供應鏈挑戰，限制了我們能銷售的產品。我們面臨多次法規變更，改變了我們所銷售的產品，在那段期間我們銷售的設備幾乎有100%都更換了兩次。我們遇到關稅。我們遇到通膨。我們又遇到不同的關稅。還有——我們也遇到冷媒鋼瓶的限制或配額。

It's just been kind of one thing after the other for the next five years. And it seems like most -- coming into 2026, most of that stuff was behind us. Certainly, the stuff being driven by the industry in terms of regulatory changes and so forth. So we look forward to a more normalized 2026 as we started the year. And I think we've got at least most of the way there.

接下來五年幾乎就是一件接一件。而看起來——進入2026年時，大部分事情都已經過去了。當然，尤其是那些由產業端推動的事項，例如法規變更等等。所以我們在年初時就期待2026年能更趨正常化。我認為我們至少已經大致走到那一步了。

Obviously, there's still some things changing with tariffs and some dynamics. But we're looking forward to a more normalized environment and getting back to business and hitting the streets and taking care of our customers and growing the business. And I think that's materializing.

顯然，關稅方面仍有一些變動與動態。但我們期待一個更正常化的環境，回到本業，走訪市場、照顧客戶並擴大業務。而我認為這正在逐步實現。

Go ahead, Barry.

請說，Barry。

No I was going to say I think it's interesting, too, that we see e-commerce sales kind of bloom this quarter. That tells us the contractor's daily life is kind of reset into a good place to start this year. I always mentioned contractor credit as a critical measurement of how the market looks. And again, that is in very good shape. And also, now that the product line is the product line, we saw an increase in higher efficiency systems being sold. Again, as Rick said, it's early, but those are good indicators, and it's kind of what we have been looking for as some indicators.

不，我只是想說，我也覺得很有意思的是，我們看到本季電商銷售有點開花結果。這告訴我們，承包商的日常運作似乎已重置到一個良好的狀態，足以在今年一開始就順利展開。我一直提到承包商信用是衡量市場狀況的一個關鍵指標。而同樣地，這項指標目前非常健康。另外，現在產品線也已經定型，我們看到高效率系統的銷售增加。同樣地，如Rick所說，現在還早，但這些都是很好的指標，也正是我們一直在尋找的一些訊號。

David Manthey, Baird.

David Manthey，Baird。

So my question is primarily on the Jackson Supply acquisition. Correct me if I'm wrong, this looks like a Goodman distributor primarily. And as far as I can tell, it looks like a great fit within the CE Gemaire and Baker footprint that you currently have. Is there anything else you can share with us about mix, margins, growth, what made this an attractive acquisition for Watsco?

我的問題主要是關於收購Jackson Supply。如果我沒看錯，這看起來主要是一家Goodman的經銷商。就我所知，這似乎非常契合你們目前在CE Gemaire與Baker的既有版圖。你們還能分享更多關於產品組合、毛利率、成長性，以及這筆收購對Watsco而言為何具吸引力的原因嗎？

This is a relationship we've had for a very long time, and we have seen them succeed in our markets, over years. So we know that they have the right leadership. We know they have the right strategy. And all we want to do is support it so they can continue to expand. And if they need more capital, we'll provide that. If they need more technology, we'll provide that.

這是一段我們維持了很長時間的合作關係，而且多年來我們看到他們在我們的市場中取得成功。所以我們知道他們有正確的領導團隊。我們知道他們有正確的策略。而我們想做的就是支持他們，讓他們能持續擴張。如果他們需要更多資本，我們會提供。如果他們需要更多科技，我們會提供。

They need more equity for their leadership, we will provide that. So it's just a wonderful business to become part of Watsco in every respect, Texas is where they are mostly, and that's always a very good HVAC market. So I mean, it resonates on all the points that are important.

如果他們的領導團隊需要更多股權，我們也會提供。所以無論從哪個角度看，這都是一家很棒的企業，能在各方面成為Watsco的一部分。德州是他們主要的據點，而德州一直都是非常好的HVAC市場。所以我的意思是，它在所有重要面向上都很契合。

Yes. Sounds good. And then as it relates to the stabilization or normalization theme that we're all kind of looking at right now, when we look at your numbers through the year, the volume comps get easier, the price comps get more difficult. I don't want to slice this two things. I know you guys aren't going to do that. But just when we're thinking about sort of normalization through 2026, would we expect sort of a natural handoff just based on where those year-to-year comps are if we're going to have sort of a normal stable year that equipment would be -- would go the other way, we grow, whereas price would sort of tail off toward the end of the year. Is that how you're thinking about it?

是的。聽起來不錯。另外，關於我們現在都在關注的「穩定」或「正常化」主題，當我們看你們今年的數字時，量的同比比較會變得更容易，但價格的同比比較會變得更困難。我不想把這兩件事切得太細。我知道你們也不會那樣做。但如果我們在思考2026年的正常化進程，基於這些年度同比基期的變化，是否可以預期會有一種自然的交棒：在一個正常穩定的年度裡，設備（銷量）會往另一個方向走、也就是成長，而價格則可能在年底前逐步走弱。你們是這樣思考的嗎？

Well, we certainly are hopeful that we're going to grow, and it seems like we will. But it's too difficult, too early, I should say, is a better way to say it, that we're going to have the garment market conditions that we have experienced in so many years. And so all I can say is what we've already said is that we're seeing improvements, but we're not -- and we're pretty assured that we're on the right path, but let's wait and see. Regardless of what the markets do, we're going to do well. And we have a competitive edge over other distributors that we told you about over and over again.

嗯，我們當然希望能成長，而且看起來也會。但要說——我應該說，現在還太早、也太難判斷——我們是否會回到過去多年所經歷的那種市場環境。所以我能說的就是我們已經說過的：我們看到改善，但我們還不——我們相當確信方向是對的，但還是再觀察看看。不論市場怎麼走，我們都會表現得很好。而且我們相較其他經銷商有競爭優勢，這點我們已經一再向各位說明。

Tommy Moll, Stephens.

Tommy Moll，Stephens。

To start, I wanted to expand a bit on the year-to-date comments that Rick made. If March exited the quarter in the high single-digit growth range and April has continued that momentum. Is it fair to infer that your resi equipment volumes are now flat or maybe even a little bit better than flat in those two months? And how long has it been since that was the case?

首先，我想針對Rick提到的年初至今（YTD）評論再延伸一下。如果3月在本季末的成長落在高個位數區間，而4月也延續了那個動能。我們是否可以合理推論，你們住宅（residential）設備的銷量在這兩個月現在已經持平，甚至略優於持平？而距離上一次出現這種情況，已經多久了？

All yours, Rick.

交給你了，Rick。

Yes, Tommy, we're not going to slice it that thinly for three weeks in April here. Again, we're not yet in the full selling season. I think the prior question got at it a little bit, which is we -- this time last year is when we saw volumes begin to degrade a little bit. And so just on paper, mathematically, it stands to reason that looks better. And price, obviously, we have pricing actions that took effect last year.

是的，Tommy，我們不會把4月這裡三週的數據切得那麼細。再說一次，我們還沒進入完整的銷售旺季。我想前一個問題多少也提到：去年這個時候，我們看到銷量開始有些下滑。所以就紙面上、數學上來看，這樣的比較自然會顯得更好。而價格方面，顯然我們去年有一些定價措施已經生效。

And I'll remind everyone that our mix of A2L products in the first-quarter of last year was about 25%. And so like-for-like, the new equipment is at a double-digit price point above where it was last year. But we had some of that in our fourth-quarter of last year, and it was about 60% of our mix in the second-quarter of last year.

我也提醒大家，我們去年第一季A2L產品的組合占比大約是25%。所以在同口徑比較下，新設備的價格點比去年高出雙位數百分比。但我們在去年第四季已經有一些這類產品，而去年第二季它在我們的組合中約占60%。

So the ultimate comparison here is what did it look like versus two years ago versus two years ago, and we'll be in a smarter position to answer that question after the second-quarter. So far, so good is how I would describe the start in April.

因此，最終的比較其實是：相較於兩年前是什麼樣子、相較於兩年前又是什麼樣子；而在第二季之後，我們會更有把握回答這個問題。就目前而言，我會用「到目前為止都不錯」來形容4月的開局。

Fair enough. Al, a question for you on inventory. There have been some big moves in recent quarters and years. As you enter the selling season for 2026, how would you characterize that inventory position?

有道理。Al，我想就庫存請教你一個問題。過去幾個季度與幾年庫存變動很大。當你們進入 2026 年的銷售旺季時，你會如何形容目前的庫存水位？

Well, we expect given the market conditions that we will reduce our investment in inventory, which affects our cash flow, of course, because we'll improve the inventory turn. So many changes were occurring recently that it can only get better, actually get worse. So we expect our inventory turns to increase and contribute to cash flow for the rest of the year.

嗯，考量市場狀況，我們預期會降低在庫存上的投入，這當然會影響我們的現金流，因為我們會提升庫存周轉。最近發生了太多變化，所以其實只會變得更好——也可能變得更糟。因此我們預期庫存周轉率會提高，並在今年剩餘期間對現金流做出貢獻。

Yes. Plus we've got -- our supply chain is a lot more solid than it was in the past. AJ mentioned that we had COVID, and we've had all these changes in models and products. And I think finally, our manufacturers have an opportunity to make a single line of products continuously throughout the year. And I think that's going to also help the inventory turn.

是的。另外，我們的供應鏈比過去穩健得多。AJ 提到我們經歷了 COVID，也有各種機型與產品的變更。我認為終於，我們的製造商有機會在全年持續生產單一產品線。我想這也會有助於庫存周轉。

Jeff Hammond, KeyBanc Capital Markets.

Jeff Hammond，KeyBanc Capital Markets。

Maybe just to start, the Section 232 update seemed to bring about questions about follow-on pricing. And I'm just wondering, if you've seen any pricing from your OEMs near term outside of like normal course that would suggest more pricing -- upward move in pricing?

也許先從這裡開始：第 232 條款的更新似乎引發了對後續定價的疑問。我想請問，你們是否在短期內看到 OEM（原廠）有任何不同於一般常態的定價動作，顯示價格可能會進一步上調？

Well, I do expect it because of the duties that are being paid now by some of the manufacturers. And I can't quantify it yet. But yes, the pressure is on the manufacturer, and I believe they will raise their prices.

嗯，我確實預期會，因為目前有些製造商正在支付關稅。我現在還無法量化。但沒錯，壓力在製造商那邊，我相信他們會提高價格。

We've had a number of price increases to date from several of the manufacturers, which have already become public. So they're well known. And we are going to have a price increase pretty much across the board, I believe. But we'll just have to wait until probably in the second-quarter, we'll know for sure exactly what those price increases look like.

到目前為止，我們已經收到幾家製造商多次調價，且其中一些已經公開。所以大家都很清楚。我相信我們將會幾乎全面調漲價格。但我們可能要等到第二季，才會確定這些漲價的具體幅度。

Okay. Great. And then just on that, there's been kind of increasing questions about price elasticity and the unit costs are getting up, and there was this debate last year about repair, replace. Was that this A2L transition? Or was that the consumer kind of being tight? So -- and I noticed your non-equipment or other products was up. Just wondering what you're seeing and how you're thinking about repair versus replace as we go through into the selling season.

好的。很好。接著延伸一下，市場對價格彈性（price elasticity）的疑問愈來愈多，單位成本也在上升；去年也有一場關於「修理還是更換」的討論。那是因為這次 A2L 轉換嗎？還是因為消費者變得更緊縮？另外，我注意到你們的非設備或其他產品有所成長。想請問你們目前看到的情況，以及在進入銷售旺季時，你們如何看待「修理」與「更換」的取捨？

I think, yes, we're happy with both. We're seeing a definite uptick in our compressor sales, which aren't going to offset any -- by any material stretch of the imagination, the equipment sales, but we're also seeing a rebound in equipment sales. So I think it's going to be kind of a dual market out there for a while where we're going to have an increase in parts. And at the same time, we're going to have an increase, I'm hoping, in equipment. I don't think it's either or anymore.

我想，是的，我們對兩者都感到滿意。我們看到壓縮機銷售明顯上升，當然這不可能在任何實質程度上抵消設備銷售，但我們也看到設備銷售回升。所以我認為接下來一段時間市場可能會呈現雙軌：零件需求增加。同時，我也希望設備會增加。我覺得現在已經不再是二選一了。

Yes, Jeff, just to expand on that for a second. I mean, remember that non-equipment for us means a lot of things. It's a very broad basket of goods. The parts is actually the minority of what's in non-equipment. Yes, it grew, but so did virtually everything else in non-equipment, including supplies, including our small and growing plumbing business and including commercial refrigeration, of course, which we report separately. So there's broad-based growth there, and it's not necessarily a read on repair versus replace all the time.

是的，Jeff，我再補充一下。要記得，我們所說的非設備其實包含很多東西。那是一個非常廣泛的商品組合。零件其實只占非設備中的少數。是的，它有成長，但非設備中幾乎所有其他品類也都成長，包括耗材、我們規模小但正在成長的管路（plumbing）業務，以及當然還有商用冷凍（commercial refrigeration），我們是另外單獨揭露的。所以那是廣泛性的成長，不一定每次都能用來解讀「修理 vs. 更換」。

And to say it analytically, I mean, parts, replacement parts, parts sales are less than 10% of Watsco. So when we say 30% is non-equipment, that means 20% is everything else just from analytical point of view.

從分析角度來說，零件、替換零件、零件銷售占 Watsco 的比重不到 10%。所以當我們說 30% 是非設備時，從分析角度看，代表其中有 20% 是其他所有項目。

Nigel Coe, Wolfe Research.

Nigel Coe，Wolfe Research。

I wanted to go back to your comments on inventory turns continuing to increase. The 1Q's inventory build was a little bit higher than what we expected. It looked actually quite normal. So my initial reaction was that the destocking is behind us. It doesn't sound like that's the case. So I just wanted to clarify that comment. And I'm wondering if the inventory build is getting ahead of price increases, slightly better demand. Just wondering anything more there.

我想回到你們提到庫存周轉會持續提升的評論。第一季的庫存增加幅度比我們預期稍高。看起來其實相當正常。所以我第一個反應是去庫存（destocking）已經結束了。但聽起來似乎不是這樣。所以我想釐清一下這個說法。另外我也想知道，這次庫存增加是否是為了趕在漲價前備貨，或是需求稍微變好。想請問是否還有更多細節。

Well, there's been a shift in the product innovation. So when product innovates, we have to carry the existing inventory to support what's been out there. And then we have to take inventory in for the new changes in the product. And that does inflate inventory. But that doesn't bother us. It's just part of the normal thing. And we run a very conservative balance sheet. We have no debt. So we can afford to have the swings in inventory perhaps better than our competition can.

嗯，產品創新方向出現了轉變。所以當產品更新時，我們必須保有既有庫存，以支援市場上既有的產品。同時也必須為產品的新變更導入新庫存。這確實會推高庫存。但這不會困擾我們。這只是正常的一部分。而且我們的資產負債表非常保守。我們沒有負債。因此我們或許比競爭對手更能承受庫存的波動。

Okay. Nigel, I'll take a stab at that, too. I mean I would not call our expected inventory turns and enhancement and burn through of our inventory more structural destocking. That's not what we're talking about. We're just talking -- like Paul mentioned, the supply chain and our OEMs and the whole process is more stable, more reliable than it has been.

好的。Nigel，我也試著回答一下。我的意思是，我不會把我們預期的庫存周轉改善、以及庫存消化（burn through）稱為更結構性的去庫存。我們不是在談那個。我們只是——如 Paul 提到的，供應鏈、我們的 OEM，以及整個流程都比過去更穩定、更可靠。

So now we bought inventory for the summer selling season to make sure that we have the right amount of products in the right places to support expected customer demand, and we expect to turn inventory better than we have been able to because there's less noise in the system.

所以我們現在是為了夏季銷售旺季而採購庫存，確保在正確的地點有正確數量的產品，以支援預期的客戶需求；而且我們預期庫存周轉會比過去更好，因為系統中的雜訊更少了。

Just another way to ask it would be, do you expect sell-in and sell-through to equalize now going forward? Just obviously, we've seen a big divergence in the past. And then maybe just with these price increases, which it doesn't sound like they've been formalized at this point, you had a big uptick in gross margins last year in 2Q versus 1Q on the price increases. I'm wondering if you expect that still -- did that to happen this year with the price increases coming through?

換個方式問：你們是否預期未來 sell-in 與 sell-through 會趨於一致？很明顯，我們過去看到兩者出現很大的背離。另外，關於這些漲價——聽起來目前還沒有正式定案——去年第二季相較第一季，因為漲價你們的毛利率大幅上升。我想知道，今年隨著漲價落地，你們是否仍預期會出現同樣的情況？

Yes, go ahead.

是的，你先說。

Let me refresh the conversation about that. We have a target of 30% gross profit margin. And a lot of things go into that. And we're not going to get there overnight, but we have a plan to get there. And that involves pricing technology, which we're getting really good at. I'm sure that the sophistication pricing system that we have is superior to anything else on the market. That will help gross profit margins and our ability to consolidate purchases across the whole company from vendors, manufacturers will also help improve gross profit margin, if that helps.

我來重新整理一下這個話題。我們的目標是 30% 的毛利率。而這牽涉到很多因素。我們不會一夜之間達成，但我們有計畫達成。其中包括定價科技，我們在這方面做得非常好。我相信我們的高階定價系統，其成熟度優於市場上任何其他方案。這將有助於提升毛利率；此外，我們也能在全公司範圍內向供應商、製造商整合採購，這也會有助於改善毛利率，如果這樣說有幫助的話。

I want to go back -- I'm sorry, to the inventory discussion, just to be, again, try to be educational about it because I think what Rick said is important. This is not a structural further reduction in inventory. That's not what this is. That's not the goal, the goal is to own less inventory on average throughout a given year. That's the equation of inventory turns, right? Cost of sales divided by average inventory.

我想回到——抱歉，回到庫存的討論，只是想再次以教育性的方式來說明，因為我認為 Rick 說得很重要。這並不是庫存的結構性進一步下降。這不是這件事的本質。這也不是目標；目標是在一整個年度的平均水準上持有更少的庫存。這就是庫存周轉的等式，對吧？銷貨成本除以平均庫存。

So just have less load in the branches over a period of time in order to keep our customers exactly happy every single minute of the day. And as some of the metrics with the manufacturers improve in terms of lead times and on-time delivery, things like that. As that improves, it lets us moderate the amount of inventory we carry. So it's much more subtle than the big stick we took to inventory at last year.

所以就是在一段時間內讓各分店的庫存負荷更低，同時確保我們的客戶在一天中的每一分鐘都同樣滿意。而且，隨著我們與製造商相關的一些指標改善，例如交期與準時交貨等。當這些改善時，就能讓我們適度降低我們所持有的庫存量。所以這比我們去年對庫存採取的大刀闊斧作法要細緻得多。

This is the subtlety of improving inventory turns over a period of time. And frankly, we're going back to where they should be and where they have been for many years before all these changes.

這就是在一段時間內改善庫存周轉的細緻之處。坦白說，我們只是回到它們應該有、而且在這些變化之前多年來一直維持的水準。

I'll add one more note to that, which is that with our new hydro system, which we talked about thoroughly in our Investor Day, we can also increase product assortment at each branch while still carrying less inventory because we can turn that inventory faster.

我再補充一點：透過我們新的 hydro 系統——我們在投資人日已經充分談過——我們也能在每個分店增加產品品項，同時仍然持有更少的庫存，因為我們可以更快地周轉這些庫存。

Do we move on to the next question?

我們要進到下一個問題嗎？

I think, like we disconnected -- are we disconnected?

我覺得好像我們斷線了——我們斷線了嗎？

No, sir, you're connected. Do we move to the next question.

沒有，先生，您有連線。我們要進到下一個問題嗎。

Yes, go ahead.

是的，請繼續。

Stephen Volkmann, Jefferies.

Stephen Volkmann，Jefferies。

I guess you wanted you to think about it before you took my question.

我想你們是希望在回答我的問題之前先想一想。

So we reserve the right to change our mind, Stephen.

所以我們保留改變主意的權利，Stephen。

Yes, feel free. So most of mine have been answered, but I have a kind of a bigger picture one. So back in the before times, which I'll define as pre-COVID, there was often a fairly meaningful difference between announced price increases and what was actually realized in the market. And I'm just curious how you're viewing that these days because, of course, we've seen a number of those announced year-to-date here and some whispers about more coming and yet the demand environment is still not great. And so I'm just curious how you think that plays out as the year progresses.

是的，請隨意。所以我大部分的問題都已經被回答了，但我有一個比較宏觀的問題。在以前——我把它定義為 COVID 之前——宣布的漲價幅度與市場實際落地的漲價幅度之間，往往存在相當明顯的差距。我只是好奇你們現在怎麼看待這件事，因為當然我們看到今年以來已宣布了好幾次漲價，也聽到一些傳聞說還會有更多，但需求環境仍然不太好。所以我想了解你們認為隨著今年推進，這會如何發展。

If I can make a stab at that. One thing that I think you realize is that we've got a very diverse market out there, both geographically as well as the type of customer. So obviously, the announced price increase does not always apply completely to certain segments of the market to some of the people that have longer-term contracts with pricing. And so what we end up with is we end up with an announced price increase and then we end up with a realized price increase, and it's generally less than what the announced price increase is.

如果可以的話，我先試著回答。我想你也會意識到，我們面對的是一個非常多元的市場，無論是地理分布，還是客戶類型。所以很明顯地，宣布的漲價並不一定會完整適用於市場的某些區隔，例如一些有較長期定價合約的客戶。因此最後的結果是：我們會有一個「宣布的漲價」，也會有一個「實際落地的漲價」，而後者通常會低於前者。

Yes. I would add to that, though, Paul, which is that the software that we've brought online to help our businesses not only with analytics and pricing and making sure we have the right price for the right customer, it's also about administrating those price increases. I mean if you think about every time there's a price increase in OEM.

是的。不過我想再補充一點，Paul：我們已上線的軟體不僅用於分析與定價、確保對的客戶拿到對的價格，也用於管理這些漲價的執行。我的意思是，如果你想想每次 OEM 漲價。

It's touching thousands of SKUs and we -- for thousands of customers and just the number of permutations and the administrative work associated with that, which used to be done essentially, call it, by hand was overwhelming. I mean that was a lot of work for a few hands on keyboards. But now with the tooling, one of the benefits is that we can appropriately adjust the pricing for all the customers, for all the SKUs that have new pricing.

它會牽動成千上萬個 SKU，並且——對成千上萬個客戶而言——排列組合的數量以及相關的行政作業量非常龐大；過去基本上可以說是用人工處理，令人難以負荷。我的意思是，對少數幾雙手在鍵盤上操作而言，那是非常大量的工作。但現在有了這些工具，其中一個好處是，我們可以針對所有客戶、所有有新價格的 SKU，適當地調整定價。

It's not actually instantaneously, but I'll say instantaneously so that we don't have the risk of a lag of price increase, where we otherwise did have that risk and sometimes missed making changes that needed to be made, if that make sense.

這其實不是「瞬間」完成，但我就說是瞬間，因為這樣我們就不會有漲價落地的時間差風險；否則我們確實會有那個風險，而且有時會漏掉一些需要調整的變更——如果這樣說得通的話。

Yes. Good --

是的。很好--

That's interesting. I appreciate that. And then maybe almost a segue there, AJ, is that it feels like you guys are almost talking like there's an inflection here in your e-commerce platform. I don't want to put words in your mouth, but assuming that, that growth in that platform is accelerating, does that have an impact on your gross margin target? Is that a tailwind? Or is it just more sales?

這很有意思。謝謝你，我很感激。然後也許這幾乎可以接到下一題，AJ：感覺你們好像在談你們電商平台出現一個拐點。我不想替你們下結論，但假設該平台的成長正在加速，這會影響你們的毛利率目標嗎？這是順風嗎？還是只是更多的銷售？

Yes. It's all of the above. We do realize a higher gross margin with our online sales and our offline sales. And e-commerce sales are increasing. We expect that trend to continue. And also, our cost to serve is lower with our online sales and customers are using that tooling because it helps them, too. It helps them organize their businesses and how they go to market and how they procure product.

是的。以上皆是。我們的線上銷售與線下銷售相比，確實能實現更高的毛利率。而且電商銷售正在增加。我們預期這個趨勢會持續。同時，我們在線上銷售的服務成本也更低，而客戶之所以使用這些工具，是因為它也能幫到他們。它能幫助他們整理其業務、規劃其市場策略，以及如何採購產品。

So it's really -- it's a win for all of us, including and especially the customers. So we very much expect to invest in our e-commerce technologies and our tooling for our customers, and we expect the adoption rate to continue. And just to give you a sense of what's possible, we have markets. And when I say markets, I mean the state of Florida for -- which is like an $800 million business for one of our subsidiaries, where there almost 70% of their sales go through the e-commerce tools. So that's the possible.

所以這真的是——對我們所有人都是雙贏，包含且尤其是對客戶。因此我們非常預期會持續投資於電商技術與提供給客戶的工具，也預期採用率會持續提升。再讓你感受一下可能性：我們有一些市場——我說的市場是指佛羅里達州——對我們某家子公司而言，那是一個大約 8 億美元的業務規模，而那裡幾乎 70% 的銷售是透過電商工具完成的。

If we look even more long term, this is one of the most underappreciated aspects that we write about it every quarter and tell you guys about it, but it really is meaningful inside our four walls is the future attrition benefits that we get when we have active e-commerce users. That is an incredible moat and an incredible stickiness to future revenues and those customer relationships that really, really matters when you look out three, five, seven years.

如果我們看得更長期，這是最被低估的面向之一：我們每一季都會在文件中寫到、也會跟各位說，但在我們公司內部它真的很有意義——也就是當我們擁有活躍的電商使用者時，未來在客戶流失（attrition）方面所帶來的效益。那是一道驚人的護城河，也讓未來營收與客戶關係具有驚人的黏著度；當你把視野拉到三年、五年、七年時，這點真的非常重要。

And while on the subject, we also sell more line items per invoice when we sell online versus offline. So it's a good -- it's a winning formula to sell more products online, and we're focused on it.

另外同一個主題下，我們在線上銷售相較於線下銷售，每張發票的品項數也更多。所以把更多產品放到線上銷售是一個很好的——是一個致勝公式，而我們也正專注於此。

Chris Snyder, Morgan Stanley.

Chris Snyder，Morgan Stanley。

I wanted to ask about Q1 inventory. So it was up about 25% quarter-on-quarter, which matches what we saw in the last five, six years. But the last five, six years, OEM inventory was tight, lead times were long. This year, it feels like the opposite. So I was surprised at how much your guys' inventory came up in that construct. So I guess, is this because you guys feel that demand is turning or there's well-appreciated April price increases coming even before the 232 and there was some building to get ahead of that?

我想問第一季的庫存。所以它季對季大約增加了 25%，這與我們過去五、六年看到的情況一致。但在過去五、六年，OEM 的庫存很緊，交期很長。今年感覺正好相反。所以在這樣的背景下，你們的庫存增加這麼多讓我有點意外。所以我想問，這是因為你們覺得需求正在轉強？還是因為在 232 之前就有市場普遍認知的 4 月漲價即將到來，因此你們提前備貨來因應？

Yes. Let me answer. First, remember that the composite inventory today is all A2L product. A year ago, it wasn't. It was a mixture of old and new product. So if you take the inventory increase for equipment, it's all in the mix of price. It's not units. Actually, we own less units at the end of March than we did a year ago. So that element, that sales mix of A2L is still being compared a year ago to a heavy mix of Fortune A product.

是的。我來回答。首先，請記住目前的綜合庫存全部都是 A2L 產品。一年前並不是。當時是舊產品與新產品的混合。所以如果你看設備庫存的增加，那全部反映在價格組合上。不是在數量（台數）上。其實，我們在三月底持有的台數比一年前更少。因此，那個 A2L 的銷售組合因素，仍是在拿今年與一年前 Fortune A 產品占比較高的組合做比較。

So that gets simpler and easier to identify as we get into the second-quarter. But to keep it simple in my statement, we do own less units at the end of March than we did a year ago.

所以進入第二季後，這件事會更單純、也更容易辨識。但為了讓我的說法簡單一點，我們在三月底持有的台數確實比一年前更少。

But I guess on that, like sequentially, it's kind of the same. Like sequentially, like the 25% up Q1 versus Q4 presumably is almost all volume or units. So I guess just like that kind of more like it feels like you guys were building in Q1 the same way you built the last five-years. But you guys -- the lead times are a lot shorter. So I would have just thought that you guys would build a little bit more cautiously.

但我想就這點來看，若以季比季來說，其實差不多。像是季比季，一季相較四季成長 25% 應該幾乎都是量或台數。所以我猜就是那種感覺：你們在第一季的備貨方式，跟過去五年一樣在備貨。但你們——交期短了很多。所以我原本以為你們會更保守一點地備貨。

So I guess just the question was like, is that a function of demand turning and you're more optimistic there? Or there's just very well anticipated price increases?

所以我想問的是，這是因為需求正在轉強、你們因此更樂觀？還是因為你們非常確定會有漲價？

I think, if you look at our March inventory versus our March inventory a year before, you see that the dollars are down. Also, when you sell an A2L product today, you've got to sell an indoor unit and an outdoor unit. So we had to increase our inventory of indoor units to accommodate the new A2L refrigerant. So that could be part of what you're looking at there also.

我認為，如果你看我們今年三月的庫存相較一年前三月，你會看到金額是下降的。另外，現在你賣一套 A2L 產品，必須同時賣室內機和室外機。因此，為了配合新的 A2L 冷媒，我們必須增加室內機的庫存。所以你看到的情況，也可能有一部分是這個原因。

Interesting. I appreciate that. And then just maybe following up on the inventory point. Over the last year, it seems like it was very difficult for the industry, both the distributors and the OEMs to have a sense of how much product their customer is holding. So I guess just now, it feels like there's another round of OEM price increases coming.

有意思。謝謝你的說明。接著可能再追問一下庫存的點。過去一年，看起來整個產業——不論是經銷商還是 OEM——都很難掌握他們的客戶到底持有多少產品庫存。所以我想，現在感覺又有一波 OEM 漲價要來了。

I imagine here in the early part of Q2, maybe distributors and contractors are all looking to get ahead of that. I guess just like how do you guys think about those channel dynamics? And is there anything that the company has done versus a year ago to just have better visibility or confidence in how much inventory the customers are holding?

我想在第二季初期，經銷商和承包商可能都在想要提前備貨、趕在漲價前。我想問的是，你們怎麼看這些通路動態？以及公司相較一年前，有沒有做什麼來提升能見度或信心，以掌握客戶手上到底持有多少庫存？

I mean I'll take a stab at that and you guys keep me honest, which is that we, Watsco did not buy ahead of the expected price increases coming from the 232 tariffs. That's point one. Two is that, yes, some of our customers hold some inventory. And no, we don't have visibility into what that numbers are. But maybe Paul or somebody can hold me honest. I don't think it's particularly material.

我的理解先試著回答一下，你們再幫我糾正：我們 Watsco 並沒有因為預期 232 關稅帶來的漲價而提前進貨。這是第一點。第二點是，沒錯，我們有些客戶會持有一些庫存。但我們看不到那些數字是多少。不過也許 Paul 或其他人可以幫我確認。我不認為那是特別重大的因素。

There were some customers -- I can tell you that there were some customers that bought ahead of the price increases coming now, the 232 tariff price increases. But that -- in the end, and when I mean the end, I mean the end of the quarter, the end of the season will just be noise because it will smooth out by the end of the quarter, by the end of the season. It's not substantial enough to really jolt the picture.

我可以告訴你，確實有一些客戶在這次即將到來的漲價之前先行採購，也就是 232 關稅帶來的漲價。但——最終，我說的最終是指季度末、季節末——那只會是雜訊，因為到季度末、到季節末就會被平滑掉。它的規模不足以真正大幅改變整體圖像。

I don't think most of our contractors are not carrying a lot of inventory. They don't have mega warehouses where you put inventory in. So I agree with AJ completely. Yes.

我不認為我們大多數承包商會持有很多庫存。他們沒有那種可以放大量庫存的超大型倉庫。所以我完全同意 AJ。是的。

Yes. The reason we have inventory, the reason we have all the convenient locations with as much product variety as they need is because most customers do not carry inventory because they don't know what they're going to sell that day until they go to someone's house and figure out what the problem is and what the solution is and then they come work with our team to get the right product out of our stores to go and sell it in that home or that building.

是的。我們之所以持有庫存、之所以有那麼多便利據點並提供他們需要的各種產品，是因為大多數客戶不會持有庫存；他們在去到客戶家裡之前，不知道當天會賣什麼，直到到了現場找出問題、確認解決方案，然後再與我們的團隊合作，從我們門市把正確的產品取走，去把它賣到那個住宅或那棟建築裡。

I appreciate that. And I know it's hard to pinpoint, but it did feel like last year, there was some unexpected downstream inventory. So that's why I wanted to ask.

了解，謝謝。我知道這很難精準判斷，但去年確實感覺下游有一些非預期的庫存。所以我才想問這個。

If I say it this way, it's not one size fits all for any brand that's out there. I mean our business model with our brands and our customers is to carry it for them and Florida have 100 locations to take the pressure off of them having to stock anything ever. That's our value in Florida. We have -- there are other business models, other OEM models, factory-operated models that have under 30 branches in Florida.

如果我這樣說：對任何一個品牌而言都不是一體適用。我們與我們的品牌及客戶的商業模式，是替他們備貨；在佛州我們有 100 個據點，讓他們完全不必承受必須備庫存的壓力。這就是我們在佛州的價值。另外也有其他商業模式、其他 OEM 模式、工廠直營模式，在佛州的分點不到 30 家。

And to get product into the channel, they need their customers to stock product. That's a business model decision. I'm not saying it's right or wrong. I'm saying it's a business model. So just -- and kind of evaluating the answer and listening to your question, it is -- there is a different answer if we go across brands and OEMs as well in that equation.

而為了把產品推進通路，他們需要客戶自己備貨。那是商業模式的選擇。我不是說對或錯。我是在說那是一種商業模式。所以——在評估答案並聽你的問題時——如果把品牌與 OEM 一起納入考量，這個問題的答案也會不同。

Patrick Baumann, JPMorgan.

Patrick Baumann，摩根大通。

I know it's early in the season, but wondering if you guys have a view on what you think unit sell-through will be this year?

我知道現在還在旺季初期，但想請問你們是否對今年的終端出貨（sell-through）台數有看法？

It was better than last year.

比去年好。

There wasn't anyone that was jumping to answer that question.

看起來沒有人急著回答這個問題。

Yes. No, I mean we're obviously trying to answer that question. Sorry, go ahead.

是的。不，我的意思是，我們顯然也在努力回答這個問題。抱歉，你先說。

Yes. I mean, Pat, I've said this for my career in April, I think. The question is, if I ask it back to you is, do I feel better or worse today? I feel better today, for sure. The other equations of the answer, existing home sales, new home sales, consumer spending, consumer confidence and contractor confidence ultimately is who actually sells the product in someone's home. I would say, again, it seems like a better situation, but time will tell.

是的。我的意思是，Pat，我職涯以來在四月一直都會這樣說：如果我把問題反問你，我今天感覺是更好還是更差？我今天肯定感覺更好。至於答案的其他變數，包括成屋銷售、新屋銷售、消費支出、消費者信心，以及承包商信心——最終真正把產品賣進某個人家裡的是承包商。我會再說一次，看起來情況更好，但時間會告訴我們。

Did you see any regional disparity in performance in March and April? Just asking in context of what seems to have been like a really hot start to the year from a weather perspective in certain areas.

你們在三月和四月的表現有看到任何區域性的差異嗎？我這樣問是因為從天氣角度看，某些地區今年開年似乎特別熱。

Yes. I would say in the northern market, you had some severe winter, you had a bunch of closed locations, a bunch of lost business. We really either blame or complement the weather in our discussion, but the northern markets had a bit of disruption in the quarter that resolve itself as time goes on, too. So the Sunbelt because of what I just said, the Sunbelt was outperformed the north, I think, for those reasons. But that's just the first-quarter and not something to draw an inference from over the longer term.

是的。我會說在北方市場，你們遇到了一些嚴重的冬季天候，有不少據點關閉，也流失了一些業務。我們在討論中確實不是怪罪就是歸功於天氣，但北方市場在本季確實有些干擾，不過也會隨著時間推移而逐步消化。所以就像我剛才說的，因為這些原因，陽光帶（Sunbelt）表現優於北方，我想是合理的。但那只是第一季的情況，不應該據此對長期趨勢做出推論。

It's meant to be geographically diverse so that all that just, again, is becomes normalized over time.

我們的布局本來就刻意做成地域多元化，所以這些因素終究會隨時間推移而回歸常態。

Yes, of course. And then my final question is, I was wondering if you could opine on Home Depot's acquisition of Mingledorff's and kind of how you see that impacting acquisition opportunities for you? Are you seeing valuation multiples go up in the industry at all after that deal or anything else to point out on how it might impact the competitive landscape?

是的，當然。那我最後一個問題是，我想請你們評論一下家得寶（Home Depot）收購 Mingledorff's 這件事，以及你們認為這會如何影響你們的併購機會？在那筆交易之後，你們是否看到產業的估值倍數有上升，或還有其他值得指出、可能影響競爭格局的地方？

We've competed with the business they bought for a long time, and we're not threatened by it at all. In fact, I think I'm not going to say what I really think because it wouldn't be nice. But no, it's not something that we worry about at all.

我們和他們收購的那家公司競爭很久了，我們完全不覺得受到威脅。其實，我不打算說出我真正的想法，因為那樣不太好。但總之，這完全不是我們會擔心的事情。

Yes. I mean I'll say we've known the Mingledorff family for a long time and wish them well in that business well. But it takes two to Tango, especially in our business model and our formula, which our Chairman started 50 years ago here is the family needs to want to join our family and be here and run their business and use our tools and our technology and our capital and so forth to do what they do and do more of it and continue to grow.

是的。我的意思是，我們認識 Mingledorff 家族很久了，也祝福他們在那門生意上一切順利。但在我們的商業模式與方法（我們的董事長在這裡 50 年前就建立的）之下，這需要雙方配合：家族必須願意加入我們的大家庭，願意留在這裡經營他們的事業，並使用我們的工具、技術與資本等等，去做他們原本就在做的事，並把規模做得更大、持續成長。

And if that's not in their interest, then it's not a good fit. If it is in their interest and there's mutual trust and respect, and it's a wonderful fit. So we'll keep doing what we do, and we've done it successfully for a long time, and I don't think we're short of those opportunities in the future.

如果這不符合他們的利益，那就不會是好的契合。如果符合他們的利益，且彼此有互信與尊重，那就會是非常好的契合。所以我們會繼續做我們一直在做的事；我們長期以來都做得很成功，我也不認為未來會缺少這類機會。

Jeff Hammond, KeyBanc Capital Markets.

Jeff Hammond，KeyBanc Capital Markets。

Just follow-ups. Just on gross margins, you held the line pretty well, and I know you got some price benefit in 1Q last year, so that was good to see. Just wondering how you think -- you had a particularly tough comp in 2Q. So just wondering how you think gross margins trend? And then also just separately, can you give us what commercial HVAC equipment was in the quarter? I'm not sure if I missed that.

我有幾個追問。先談毛利率，你們守得相當不錯；而且我知道去年第一季你們有一些價格帶來的利多，所以看到這點很不錯。我想問你們怎麼看——第二季的比較基期特別硬。所以想請教你們認為毛利率走勢會如何？另外，能否分開提供一下本季商用 HVAC 設備的金額？我不確定是不是我漏聽了。

That's a big question.

這是個大哉問。

Yes. I can take a stab at it, Jeff. On the commercial side, really, we didn't see a whole lot of divergence between what was residential and what was commercial -- the biggest divergence is what we mentioned in the press release about domestic versus international, but resi and commercial traveled very close together. And on margins, I think, look, if you go back 10 years in time, you can see -- and if you just take second-quarter and third-quarter as one thing.

是的。Jeff，我可以試著回答。在商用端，其實我們沒有看到住宅與商用之間有很大的分歧——最大的分歧是我們在新聞稿裡提到的國內與國際之間的差異，但住宅與商用的走勢非常接近。至於毛利率，我想，你看，如果把時間拉回 10 年前——而且如果你把第二季和第三季當作一個整體來看。

You could see that there's usually some -- in most years, there's a modest retreat in margins only because historically, first-quarters are the ones that have some price -- OEM pricing actions and the cooling season and RNC mix and all of that typically influences the second and third-quarter margin versus an off-season margin. So that's what history would tell you.

你會看到通常——在多數年份——毛利率會有些許回落，原因只是歷史上第一季通常會有一些價格因素——原廠（OEM）的調價動作、冷房旺季，以及 RNC 組合等因素，這些通常會影響第二、第三季的毛利率相對於淡季毛利率的表現。所以歷史經驗會這麼告訴你。

Last year did not follow that trajectory, of course, because of the price increases. And we'll see what this year brings. I think in the absence of any new information, and we'll see what -- again, what the OEMs begin to talk about here in the next few days. I think that's what history tells us is that there is a different profile of margin during season versus out of season.

當然，去年並沒有遵循那樣的軌跡，因為有價格上調。今年會如何，我們再看看。我想在沒有任何新資訊的情況下——而且我們也會看看原廠（OEM）在接下來幾天開始會談些什麼。我認為歷史告訴我們的是：旺季與淡季的毛利率輪廓確實不同。

Offsetting that is -- and we haven't really talked about this much today is -- we -- Supplies Inc is now launching, for example. And so we expect that to be helpful as it scales. And AJ mentioned Hydros and DCR, its companion initiative around purchasing in non-equipment. That is gaining momentum and scaling. So there are some puts and takes to it. We'll share more when we know more. But historically, that's the -- there's always a little bit of difference between seasonal and off-season margins.

用來抵銷的因素是——而且我們今天其實沒有談太多——我們例如正在推出 Supplies Inc。因此我們預期隨著規模擴大，這會帶來幫助。另外 AJ 也提到 Hydros 和 DCR，也就是其在非設備品類採購上的配套計畫。那項計畫正在累積動能並擴大規模。所以這裡面有一些利多與利空的拉鋸。等我們掌握更多資訊時會再分享。但就歷史而言，旺季與淡季毛利率之間總會有些微差異。

This concludes our question-and-answer session. I would like to turn the conference over back to Mr. Albert Nahmad for closing comments.

問答環節到此結束。我想把電話會議交回給 Albert Nahmad 先生作結語。

Well, thanks for listening, and thanks for your interest in our business. We're very excited about the future. As I said, we're uniquely capable of investing in the industry through acquisitions and post acquisitions and that sort of thing. So in for the long term, and we're happy you're with us. Bye-bye.

好的，感謝各位收聽，也感謝各位對我們業務的關注。我們對未來感到非常振奮。如我所說，我們在透過併購以及併購後整合等方面投資這個產業上，具備獨特的能力。所以我們會以長期為念，也很高興各位與我們同行。再見。

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

謝謝。本次電話會議到此結束。感謝各位參加今天的簡報。您現在可以掛線。